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Yeah, Vanity Event Holdings. That company is also controlled by SPNGE Officers.
I do not have inside information. I'm suggesting this is one very plausible reason for GFGU to rescind the deal. If I was running a start-up I would not want to get entangled in investigations and legal issues that could cost potentially destroy my company. As an entity doing a deal with SPNGE, GFGU has done due diligence and has more insight into SPNGE and more information on potential risks of doing business with them. There must be something very concerning to GFGU to rescind a investment deal after it has been announced and 8k'd, particularly in this environment where venture capital financing is not easy to come by. When one asks why would GFGU do this, it is logical to conclude that they are afraid of what might occur if they were to proceed with SPNGE.
The largest possible reason for GFGU to rescind the deal is that SPNGE is toxic. who knows what type of liabilities, SEC scrutiny, and other legal issues they would have to deal with if they proceeded with SPNGE.
what happens if there is an SEC investigation, and if it turns out there was fraudulent accounting? would they halt trading? would this mean investors would get $0?
what does that mean?
Does anybody know...What happens if there is an SEC investigation, and if they do find fraudulent accounting issues? Would they hault trading in the security? Would that mean investors would get $0?
That's means the accounting firm doesn't want to go to jail for Spongetech's fraudulent accounting practices.
back to .009 tomorrow
yeah, and perhaps mgmt was abducted by aliens?!
Uh oh! Lol, it's me again. Glad I sold my shares at .20
So, the company does 100 to 1 reverse split, but only reduces authorized shares by a ratio of 3 to 1. Am i understanding that correctly?
Does SPNG sell sponges or are they a venture capital firm?
There was 135 million shares traded just today. How could there possibly be only 10 million O/S!!!
It will be 100 times more, but you will own 100 times less shares. And even less after they sell the other 891 million authorized shares. Duh
I agree with that statement, but you are missing my point. What do you think is going to happen with the other 891 million authorized shares? What kind of company has 9 million shares outstanding with 891 million authorized?
From their press release July 27th...
"“The Smarter Sponge™”, (OTCBB: SPNG) is pleased to announce that the Company is taking action to amend its Articles of Incorporation to reduce the number of common shares that the Company has authorized to 900,000,000 (nine hundred million) shares. In addition, the Company has also begun the process to lower its outstanding shares to approximately 500,000,000 (five hundred million) shares."
Let's do some simple math.... 1 is to 100 as 900 million is to X?
I have not intent here other than venting at the bullshit mgmt keeps pulling.
Exactly. In the same press release a while back they said their intended goal was to have 900 million AS and 500 million OS. Now after a 1-to-100 reverse split they are going to have 900 million AS post split. By their own admission in the same press release they said their goal was to 500 million OS. 500 million shares post split is the equivalent of 50 billion at today's price.
Exactly. 900 million shares currently, and 900 million after the split. Only investors will only have 1 share for every 100 they currently own.
Why would a company have 900 million AS with only 1% outstanding? Is there any other legit company in the world with only 1% of A/S outstanding?
Also, didn't the company previously state that OS would be at 500 million previously?
Have a good one
Something has already gone terrible wrong: 900 million authorized shares post 1 to 100 reverse split. That's equivalent to 90 billion shares at today's price. I was an avid long of spongetech. But come on people, WAKE UP, this company is run by a bunch of Thieves!!
Great. With 900 million shares post 1 to 100 reverse split (the equivalent of 90 billion at today's price) there should be about .00001 earnings per share.
If they plan to have 5mm OS after the split, why would they have 900 million A/S post split?
That's the equivalent of 90 billion at today's price. right?
Key note: 900 million A/S post split. that's the equivalent of 90 billion shares at today's price. is this legal?
This is ridiculous, and a huge red flag. Spongetech sends out a PR everytime they sell a sponge or put a sticker on some race car, but they cannot communicate a word about the most important filing the company has ever had! They've known about this deadline for a long time. They also know that they have questionable credibility to begin with, and they've blown a major chance to increase that credibility, regardless what the 10K says. They say they want to be on the NASDAQ, but they keep playing stupid games. This is a major red flag IMO. They don't need (or have) a machavellian masterplan as some of the conspiracy theorists seem to believe. All they need for the share price to go up is to be transparent and credible, and they've blown there chances for that a few times. Why would a company do that?? I don't know.
Full disclosure...been long 150k on SPNG since .02. sold 1/2 my position today. maybe the rest tmrw
A bird in hand is better than 2 in the bush. I sold half my position as well. Who knows what is really holding up the 10Q. We maybe lucky to have taken some profits.
It's seems to me that they are not issuing common stock for cash, but in exchange for 'consulting, advertising, etc.'. i.e. Not really paid in capital.
???Is there anybody proficient with accounting that can answer this question: Is it at all strange that SPNG added positive $9.7 million to the Cash Flow statement for giving away stock (drastically affecting the $1.29 in net cash flow from previous 10Q)? Is this standard practice? If not, is it possible that D&T would have an issue with this?
Issuance of common stock for consulting fees, loan payments, advertising, and other
9,722,405
Not bashing, but concerned about this. 100k shares long and holding, for now.
$70 million in orders doesn't necessarily translate to $70 million in revenue on the next 10k. Revenue isn't recognized until orders are shipped. Not bashing, just stating facts.
ClayTrader,
Thanks for the great analysis. It would be great if more folks posted useful information as you do. Can you elaborate on the MACD divergence that you mentioned?
Thanks!
Do NOT place stop losses. That is what caused black friday and losses for many with stop losses. And I'm sure that nobody who had a stop loss then got it filled where they placed it, but got filled much lower. In fact, out of luck I had an old buy limit order at .10 that got filled before the price then bounced back up to .18. Stop losses will only cause more losses if there is a big drop. However, a low buy limit order is a good way to get a quick profit if there is a drastic drop then bounce caused a quick wave of stop loss orders.
Hey Guys - Keep in mind a few things so you're not dissappointed with the 10Q or 10k:
1.) The 10Q will report A/S and O/S as of the end of the may quarter...May be different than the more recent 900 million a/s as of now. someone correct me if i'm wrong?
2.) Orders do not necessarily equate to revenue in the current/following quarter. GAAP accounting rules only allow for Revenue to be recognized upon delivery. i.e. an order received in a particular qtr but that does not ship in that quarter will not be recognized as revenue in that quarter.
go spng!