CARLSBAD, Calif—On Friday, SPY Inc. (OTCBB: XSPY) announced that it filed a Form 15 with the Securities and Exchange Commission (SEC) to voluntarily deregister its shares of common stock under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As a result of this filing, the company's obligations to file certain reports with the SEC, including annual, quarterly and current reports on Form 10-K, Form 10-Q and Form 8-K, respectively, was immediately suspended. Other filing requirements will terminate upon the effectiveness of the Form 15, which is expected to occur 90 days after filing.

The company's board of directors considered numerous factors before approving the voluntary deregistration, including the large costs of preparing and filing periodic reports with the SEC, increased outside accounting, audit, legal and other costs and expenses associated with being a reporting company, the burdens placed on management to comply with the Exchange Act reporting requirements, and the low trading volume in the company's common stock.

Commenting on the Form 15 filing, Seth Hamot, the company's interim CEO and chairman of the board of directors, said, "After careful consideration of the advantages and disadvantages of continuing as a reporting company, and in light of our size and market capitalization, we have concluded that deregistration of our common stock will result in substantial cost savings and allow management to better focus on SPY's core business."

As a result of the filing of the Form 15, SPY anticipates that its shares will continue to be quoted on OTC Pink Marketplace under the ticker symbol "XSPY." However, the company cannot guarantee that trading of its common stock will continue in the OTC Pink Marketplace or in any other forum, and there can be no assurances that any trading market for the company's common stock will develop after the deregistration process is complete.