Spatializer was a developer, licensor
and marketer of next generation technologies for the consumer electronics, personal computing, entertainment and cellular telephone
markets. Our technology was incorporated into products offered by our licensees and customers on various economic and business
terms. We were incorporated in the State of Delaware in February 1994 and are the successor company in a Plan of Arrangement pursuant
to which the outstanding shares of Spatializer Audio Laboratories, Inc., a publicly held Yukon, Canada corporation, were exchanged
for an equal number of shares of our common stock. Our corporate office is located at 410 Park Avenue--15th Floor, New York, New
The foregoing interim financial information
is unaudited and has been prepared from the books and records of the Company. The financial information reflects all adjustments
necessary for a fair presentation of the financial condition, results of operations and cash flows of the Company in conformity
with generally accepted accounting principles. All such adjustments were of a normal recurring nature for interim financial reporting.
Operating results for the three months ended March 31, 2012 are not necessarily indicative of the results that may be expected
for the year ending December 31, 2012. Accordingly, your attention is directed to footnote disclosures found in the December 31,
2011 Annual Report and particularly to Note 2 thereof, which includes a summary of significant accounting policies.
The foregoing financial information has
been prepared assuming that the Company will continue as a going concern. The Companys current circumstances, including
significant operating losses, raise substantial doubt about the likelihood that the Company will continue as a going concern. The
foregoing financial information does not include any adjustments that might result from the outcome of this uncertainty.
We are quoted on the OTCQB of the OTC
Marketplace under the symbol SPZR.