Spare Backup, Inc. (OTC Pink: SPBU) (PINKSHEETS: SPBU) ("Spare Backup" and "the Company") a provider of smartphone and tablet protective solutions including lightweight protective cases, device insurance, data backup and security software, announced today a corporate update for the first half of 2014.
Beginning late in the fourth quarter of 2013, Spare Backup began focusing its development and sales efforts on its ShieldX2 product, which includes a lightweight protective casing for smartphones and tablets than can be bundled as ShieldX2 and ShieldX2Plus to include repair and replacement insurance backed by an A+ rated insurance provider. Data backup and security software is also available, and will be included in some of its offerings. Over the course of the first half of 2014, the Company completed the device designs and established manufacturing relationships to scale production. Spare Backup has also entered an agreement with a third party insurance provider for the product launch. As of June 30, 2014, the Company offers the ShieldX2 and ShieldX2Plus smartphone protection packages for the iPhone 4, 4s, 5c and 5s, Samsung Galaxy S4, S5 and Note 3, and the HTC1. ShieldX2Plus packages for tablets are also available for iPad, iPad mini, and Samsung Tab3.
The Company is in the early stages of marketing ShieldX2 and ShieldX2Plus packages through a number of channels, including wholesale, B2B, direct to consumer and retail. The Company has also launched an E-commerce marketing campaign for its website: www.shieldx2plus.com. There are currently more than fifteen large potential distribution outlets, both domestic and international; conducting evaluations of various ShieldX2Plus offerings and the Company expects to determine the results of those evaluations over the course of the second half of 2014. Should those evaluations be successful and lead to significant orders, Spare Backup expects to quickly ramp up productions with its manufacturer in the coming quarters and into 2015.
Due to its limited financial resources and in order to focus on developing the ShieldX2Plus, the Company has begun to migrate from hosting its cloud based Spare Backup services for third party distributors. In February of 2014, the Company entered into a two year license software sale with its largest distribution partner to enable that distributor to independently host data storage for their customers using Spare Backup. The agreement provided for an acceleration of revenue for the Company and resulted in a significant reduction in hosting costs. We do not anticipate receiving significant future revenue from this distributor for the duration of the term of the agreement. The Company will continue to provide hosting services for its other distribution partners for the foreseeable future. In mid-2013, the Company was able to terminate its contract with its data center and enter a new contract with another data center at considerably lower rates.
As previously reported by Spare Backup in a filing with the Securities and Exchange Commission ("SEC") in October of 2013, we engaged Kyle L. Tingle, CPA, LLC ("KLT") as our new independent registered public accounting firm to audit the Company's consolidated financial statements. At this time, the Company is delinquent in the filing of required periodic financial reports with the SEC for the second quarter, third quarter and year-end of 2013, as well as the first quarter of 2014. The Company continues to work with KLT to become current in its reporting. While no definitive timetable has been set for the completion of these filings, the Company is working diligently and believes it will be in a position to become current with its reporting requirements with the SEC on or before the end of the third quarter of 2014.
About Spare Backup, Inc.
Spare Backup, Inc. is a provider of smartphone and tablet protective solutions including lightweight protective cases, device insurance, data backup and security software. Spare Backup's flagship product is the ShieldX2, a lightweight protective casing for the most popular smartphones and tablets currently on the market that protects those devices from drops, spills and water damage. The Company bundles this product with low cost comprehensive device insurance offered through an A+ rated third party insurance provider which its markets under the name ShieldX2Plus. The Company also offers Spare Backup software that enables consumers and small to medium sized businesses to easily protect valuable mobile and computer data quickly, automatically and cost-effectively. Spare Backup software allows for the continuous cloud-based backup of device data as well as integration of content across various devices. The software also provides enhanced security features to protect valuable data on any lost or stolen devices. Spare Backup distributes its products through various channels including major retail and warranty service partners in North America and Europe.
Safe Harbor Statement
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the company's behalf. All statements, other than statements of historical facts, which address the company's expectations of sources of capital or which express the company's expectation for the future with respect to financial performance or operating strategies can be identified as forward-looking statements. Such statements made by the company are based on knowledge of the environment in which it operates, but because of the possibility of unknown factors, as well as other factors beyond the control of the company, actual results may differ materially from the expectations expressed in the forward-looking statement. An investment in our common stock involves a significant degree of risk. You should not invest in our common stock unless you can afford to lose your entire investment. You should consider carefully all risk factors and other information in our annual report and quarterly filings before deciding to invest in our common stock. If any of the following risks and uncertainties develops into actual events, our business, financial condition or results of operations could be materially adversely affected and you could lose your entire investment in our company.
Forward Looking Statements:
This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook of the Company's business and results of operations. By nature, these risks and uncertainties could cause actual results to differ materially from those indicated. Generally speaking, any statements using terms such as "will," "expect," "anticipate," or "may," or which otherwise predict or address future results or events, are likely to contain forward-looking statements. It is important to note that actual results may differ materially from what is indicated in any forward-looking statement.
Readers should consider any forward-looking statements in light of factors that could cause actual results to vary. These factors are described in Spare Backups filings with the SEC, and readers should refer to those filings, including Risk Factors described in those filings, in connection with any forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Spare Backup, Inc.
SOURCE: Spare Backup