Led by Spike these creatures unplug a clock and then persuade Billy to feed them after midnight because he believes it is not that late. He awakes to find the creatures in cocoon like states. They later awaken as reptilian like creatures named Gremlins that wreck havock on the city during Christmas. Gizmo however remained as he always was. Billy hunts Spike to a swimming pool, but Spike quickly dives into it, and reproduces faster than one can imagine.
Gremlins later relax at a movie theator.
Billy manages to kill many of them with bright light, but has to engage in a showdown with Spike in a toy store. Gizmo drives a small car, and Spike attempts to reproduce again in a small fountain in the store. But then the store's lights are turned on and Spike quickly bakes and dies. The movie had a sequel set in a research building with genetically altered Gremlins but it was not nearly as popular as the first film. Such works are trademarks of their respective companies.