The back is where you see that it is a chain stitch, not a regular machine stitch.
It really is a pretty useless little item. The way it is made only allows you to stitch about a half inch from an edge and it's rather awkward to use. The name "Dial A Stitch" implies options that don't exist. What looks a bit like a dial, where the name is printed, is really just the screw device that holds the thread on and turning it one way or the other doesn't affect the stitch in any way!
The first sewing machine I owned was a toy that also made a chain stitch. I wish I still had it because it was such a cute little machine, but it was very frustrating to use. I didn't really learn to sew on a machine until a friend of my mother gave me her mother's old treadle machine. I still have it and have been in love with sewing machines since. I have recently gotten rid of several machines, but I still own a few. This is the silliest. But I think it was worth the $1 just for entertainment value.