REDWOOD CITY, CA — (Marketwire) — 07/22/11 — Signature Devices, Inc. (PINKSHEETS: SDVI) today announced its business update and progress report for 2nd Quarter of 2011.
In an effort to keep shareholders up to date, the current financials for Signature Devices, Inc. have been posted to .
Sales for the 2nd Quarter came in at the tail end of June, thereby shifting the majority of profits into the 3rd Quarter. This is due to the time it takes to manufacture the products. Typically the products are purchase order financed which pays for the cost of goods, and then when the goods are delivered to our customers we book the invoices as income. Our Q2 interim financial statements reflect this process, showing an outstanding liability to Wells Fargo of $421,752.72. This amount is 45% or less than total invoices for those shipments. Upon delivery to our customers, we invoice our customers and this amount is paid off and the invoicing amount converts to the profit column. The current outstanding receivables as of July 21, 2011 are $895,544.49.
The company is also working on shipping more product into brick and mortar stores and is in the process of pitching products to major retailers, including WalMart, Best Buy, Toys R Us and others for a back to school promotion for the August/September timeframe. If successful in placing this product the company anticipates the outstanding receivables to at least double.
Graffiti Entertainment, Inc. will be holding a proxy vote to authorize a merger with Signature Devices, Inc. and combine the two entities into one entity before filing an S1 registration statement. In turn, Signature Devices, Inc. will hold a proxy vote to authorize the merger with Graffiti Entertainment, Inc. The merged company will operate under Graffiti Entertainment, Inc. and will file the S1 registration for the U.S. market. Graffiti Entertainment Europe will then also proceed to file on the Frankfurt exchange.
There will be a video conference call today at 2:00 p.m. PDT. The video conference call can be viewed at .
The auditing process for Signature Devices, Inc. is taking a lot longer than anticipated, but is still in process. More information can be obtained from the video conference call.
Based in Redwood City, Calif., Signature Devices, Inc. creates and develops social networking systems include social networking server software, social networking games and console games. Signature Devices also works with Graffiti Entertainment, Inc. (), a publisher of interactive entertainment software for advanced entertainment consoles to publish video games for the console market.
The information in this press release includes certain “forward-looking” statements within the meaning of the Safe Harbor provisions of Federal Securities Laws. Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this release, and the Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date of this release except as required by law.
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