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That you opinion, this where I get mine:
SEC website:
When can the SEC suspend a stock from trading?
When it serves the public interest and will PROTECTS INVESTORS, the SEC may suspend trading. For instance, the SEC may act when public information about a company is NOT CURRENT, accurate, or adequate. The SEC has acted when serious questions arose about a company's assets, operations, or other financial information.
BASIC MATH
De license accounting firm + plus several short complainting to SEC concerning overseas buyers + trading patterns vs O/S share claims = SEC investigation.
SEC investigation + negative news articles + patchman + panic selling = Stock being suspended.
Lesson of the day.
Just because you can see the 5 oversea buyers, like oxygen doesn't mean they don't exist.
The half filled kool-aid version of the SEC halting of trading.
The SEC halts the trading of a stock for one reason,
TO PROTECT THE PUBLIC.
The owners of SPNG stock are the public. The SEC might have halted the sale of SPNG stock to protect the stock holder public from having their position wiped out by the panic selling caused from the investigation announcement, newspaper articlea and law suits filed.
The SEC has halted trading in the past of the entire market during panic times to allow calmer heads to prevail.
And it seem to work as the stock price has leveled off since trading resumed.
Patchman
As of today the only 10ks that might be false are 07 and 08,
500,000 and 5 million in sales respectively.
The 09 has not been accepted yet, and was done by a different accounting firm than by the 07, and 08. As of today they is no indication that any thing in the o9 10k is false.
The fact is that the only reason that the 10ks are in question for 07 and 08 is that the accounting firm that did them were in question.
Point that is missed here is that SPNG submitted the audited results to the SEC in 07 and 08. IMHO SPNG as a company planning on growth and moving to a bigger exchange they would know what they would be held accountable for especially with Moskowitz's and Metter's wallstreet background.
The other point never discuss is that it is possible 5 over sea companies might be one guy in each case out of his basement acting as a self distributor buying the sponges and redistributing them.
Happen in this country all the time. See Ebay.
Patch
The topic always goes back to the 3 customers two years ago who nobody can find. Who really cares it's past history. If they don't exist SPNG will get fined by the SEC and life goes on.
The issues that should concern the investor today are SPNG current customers, South American Walmart, CVS, Cosco, Walgreens, Price Chopper, Shop Rite, QVC ,home shopping network, direct TV informicals, Nick, radio sales, Petco, Auto supply stores, etc etc.
New products being released, Uncle Norman, sponge bob, football sponge, and bath and tile.
All the products in the pipe line. Not the mention the kitchen cleaning products yet to be released or the partnership with a major cleaning company.
This is the current and future of SPNG. this is the investor main concern, not what happen 2 years ago.
Hasher: again you failed to answer the question of providing proof of wrong doing.
You may be right, but you may also be wrong.
The point is that you don't have a clue what is going on, I omit I know I don't.
For as many red flags that hang over this small company you have blinders on the number of green flags that fly here too.
Products,growth, product awareness, products doing what they say, expansion, increase penetrating the market place, and most important Customer approval of the products.
What facts do you have. No wrong doing has been proven by anyone.
If you have proof PLEASE share with all of us.
My theory is based on the same facts as yours,
Sorry I am max out for my post today.
Have a good evening.
Again, you avoid the question. WHERE IS PROOF OF WRONG DOING?
You haven't a clue.
I thank you, and you to.
What will be will be.
The problem I have with most of the negative posters on this board is that they make statements as if they are facts.
Many try to come across as if they are in the SEC office and already know the end of this game.
They may be right I have no idea, but at this point it is still only guess work on all sides.
For the sake of argument, say the SEC finds members of SPNG management guilty of cooking the books. Even if this happens it doesn't mean the stock is dead. Those responsible may be punished new officers may be hired and the company goes on.
The problem with SPNG is that most investors thought this to be the golden egg.
My goal 1-2 dollars, it still is.
My dime my time.
I hope you do well.
My concern is not tomorrow or next week, I am holding to at least 6/10.
I am not saying SPNG is not at fault what I am saying is that you have no proof that they are.
Hey, you may be right. I glad you made money
But this has not completely unfolded yet. Until the company is forced to close it doors the potential to make money is very much still here.
But again you avoid the original question where is your PROOF.
So far you have been lucky, but you have no idea what is going on. Your only quessing like the rest of the board.
Or maybe the law firm had other motives.
Maybe the law firm has a large short position and wants to drive down the price of the stock.
Awful funny that the law suit was filed before the ink was dry on the delisting.
Heck, my theory is as good as your theory.
I have no idea.
If you don't have proof you have no idea either.
And you proof please.
It is very easy to accuse but lets see some facts to back your statement.
And you don't think that this law suit wasn't announce a little too quickly?
So as a shareholder, you have no problem, that the law firm has damage your share value, even though they announce the suit based on only speculation of wrong doing.
Yes they did.
Which is why the SEC asked for the 07 and 08 10k to be redone.
Where does it say thet they uncovered evidence.
Notice of Delisting or Failure to Satisfy a Continued Listing Rul
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On September 25, 2009, Spongetech Delivery Systems, Inc. (the "Company") received a letter from the Financial Industry Regulatory Authority ("FINRA"). The letter states that, pursuant to NASD Rule 6530, the Company is required to file with the Securities and Exchange Commission its Annual Report on Form 10-K for the year ended May 31, 2009 (the "Annual Report") by no later than October 16, 2009. The Company's shares of common stock will not be eligible for continued quotation on the OTC Bulletin Board if the Company fails to comply with this requirement. As previously disclosed, the Company is filing its Annual Report late because its former auditor, Drakeford & Drakeford, LLC, had its registration revoked by the Public Company Accounting Oversight Board.
If the Company does not request a hearing with a FINRA Hearing Officer, or file its Annual Report by October 16, 2009, it is anticipated that the Company's shares of common stock will be delisted effective October 20, 2009 as set forth in the FINRA letter. On October 2, 2009, the Company requested an appeal hearing with a FINRA Hearing Officer. In addition, the Company and its auditors are using their best efforts to complete the audit and file the Annual Report by October 16, 2009.
If the SEC gets enough complaints, they take action.
The action they took is investigate those complaints, and to make sure that the work done by the former auditors were done correctly.
Trading was stopped only because the 10k were not filed as requested. Period.
I invested here because I like the product. I see hundreds of possible uses for this product. From a cleaning sponge for fisherman, campers, and hikers, household cleaning products to several medical applications.
To me as of this date nothing has changed for the company other than a problem with redoing a few 10ks which id the former auditors did not lose their license probably wouldn't be an issue. This is going to take time.
I laugh at the law suit at this early date, for as of today date there is no PROOF of any wrong doing only speculation.
It is amazing to me how many people who don't seem to have invested a penny here is so quick and passionate to form a lynch mob.
The only logical explanation for this activity is to scare those people who are invested here to sell there holdings.
If down the road the company is PROVEN to be guilty
of illegal activity I will take action at that time.
I am thinking of starting my own class action law suit against the law firm that is suing SPNG, for misrepresenting their position as if it has been all ready PROVEN that the SPNG officers have done illegal acts.
Their action has also damage the value of my stock and the law firm should also be held accountable for their premature action.
3 things can be drawn from the 8k
1)Company has been telling the truth D and T were there accounts for 2010.
2) IMHO D and T resigned because there knew there was no way they could produce the 10Q on time.
3)The company is not going away without a fight.
Again, I will put out there.
From what I get out of this whole 10K hold up is.
The 10K for 09 is done, which shows 50 million in sales and 10 million in taxable income.
While the 10K of 07 (500,000 sales) and 08 (5 million sales) are the ones in question.
Does this sound right?
Again, I will put out there.
From what I get out of this whole 10K hold up is.
The 10K for 09 is done, which shows 50 million in sales and 10 million in taxable income.
While the 10K of 07 (500,000 sales) and 08 (5 million sales) are the ones in question.
Does this sound right?
Not sure which way this is going to go, but tell me if I got this right.
The 10K that is due now, which is suppose to show 50 million in sales and 10 million taxable income is not in question.
It is the previous two years 10Ks, with 500,000 dollars and 5 million dollars in sales is the reason for the hold up of the due 10K release.
From NY Post article:
"SpongeTech has hired Robison Hill to audit the 2009 results and Deloitte and Touche to work on the company's 2010 financials."
SpongeTech did hire Deloitte and Touche for 2010.
Why this could be bigger that anyone here can image?
Our current president is very very Green. One of his pet projects is to single handily stop global warming.
His solution, CARBON TAX.
If the CABN process works, all those companies that produces mega volume of CO2 will gladly purchase CABN process to make money from the gases than pay taxes on it.
From post article:
" Earlier this month, The Post reported that the SEC had flagged SpongeTech's financial statements for the last two years because of problems with the company's auditor."
10K had to be redone because of questions regarding the work of auditors.
"SpongeTech has hired Robison Hill to audit the 2009 results and Deloitte and Touche to work on the company's 2010 financials."
SpongeTech did hire Deloitte and Touche for 2010.
Per NY Post
In response to your private message your math is all wrong concerning SPNG.
Say that there were 2 billion shares A/S, and the company sold them all. At the time of the original A/S were thought to be that high the stock was for 2 cents a share. The company would have netted around 40 million dollars. 10 million was spent on advertising in 08 and 20 million in committed in 09. Plus 4 million to Dicon. Plus manufacturing and distribution cost. Plus cost of a sales team. Plus divided how many officers in company.
A company can only sell a share once. Unless they buy them back and resell them. There I would assume there would be a large electron trail to follow back to them.
All naysayers who claim the death since the SEC investigations, i might have agree with except please explain the following.
a)New products released.
b)Suing to protect trademark name.
c)Increasing advertising venues.
d)Pushing to get on the big board, knowing that their operations would be under heavy scrutiny by SEC and institutional investors.
e)Waste 20 million to advertise, when quarter of that would have been plenty.
f)waste the money to by Dicon, when it was needed to sell stock.
g)Waste money in GFGU,when that wasn't necessary to sell stock.
h)Sign a long term deal with Viacom
a) Company thought 10K was done, Sec asked them to redo previous 10K. (that takes time)
b) who know they might sue in time
c) Just because the Post can't find them doesn't mean they don't exist. The post has had been proven wrong in the past, some parties sued most do not.
d)Gagged T/A I'll give you
e) Steve and Michael have given you the A/S shares many time in public statements.
f) Hey that business.
g)The DID give them mone like they said they DID not they want it back so what does that have to do with any thing.
h)Stated in public and SEC documents, what's the matter you don't believe the government either.
i) The stock not trading, Excuse me you said IT WAS ON THE LIST.
j)Yea, and hopefully we will fine out the 16th, the outcome.
k) yes, the whole story.
"Yup. Thats the problem. the longs keep bringing the 10K into the suspension equation. They are two seperate issues."
If that is the case why is the suspension until the 16th. The 10k's is the equation.
Being long, no matter what the short term outcome is unless they go out of business, I like my chances here.
1 Brand named products are established.
2. The do what they say they would. Passed inspection by local news TV reporters.
3. Many products in pipeline.
4. More then one company (Dicon)
5. Endless possibilities for the technology.
I take the cherry kool-aide aide please.
Let's Review:
Company is showing go growth from prior years, and expect first quarter to surpass sales of previous year.
Company on SEC form 10NT announces sales of 50 million with taxable amount of 10 million.
Company files lawsuit to protect trademark, I guess they plan on being in business after the 16th.
Company, while the SEC is closing them down, announce the launch of two new products. Doesn't sound like they plan on having the doors closed to me.
At the same time Company is expanding it's advertising base, not canceling any contracts to line their pockets before the end.
Company hires a highly respected accounting firm to handle the books from 2010 and beyond.
Concerning the halt in trading, did any of you think the SEC might have halted trading not to punish Spongetech but to protect them and their investors until the 10K situation is cleared up.
Position long.
Lawsuit today means SPNG is planning on staying in business.
Suspension of the Stock was a gift by the SEC.
IMHO, IMHO IMHO SPNG will file by the 16th, by then the fear trading will be over and the stock will trade on it's own merit.
The 10k will show 50 in sales and 11 million as taxable as SEC doucument 10nt stated
Good news for longs. With the stock suspended the position can not be driven lower until the 10k mess is straighten out.
The only thing that has changed over the last 2 months is the late 10K.
The company is still doing business as before, developing new products and advertising in new locations.
The 10k is late because the government has ask for past 10k's to be redone, because the auditors that did them were found to be incompetent. Spongetech did not do the audits.
If any one has ever had any dealings with a government agency example IRS, they would know that, that it going to take quite awhile before this is cleared up.
The government does not move very fast except in spending money.
The only reason that SPNGE trading might me halted is because the SEC rules state that they must file a 10k within a certain time frame. The reason that the 10k is not being filed is because the SEC will not accept the current 10k until the new auditors review them and resubmit them. The new auditors will not just sign their names to them, until they go though them and make sure the incompetent auditors did it correctly.
This take TIME. Again Spongetech did not do the original audits.
Spongetech is at the mercy of the new auditors and the SEC. Nothing Spongetch did and nothing they can do can make this problem go away any faster.
The only thing they can do is business as usual.
Once the 10k are audited either accepted as currently written or errors found and adjusted, the E will be removed Spongetech will be back in good standing and normal trading patterns will return.
I believe an SEC doucument was filed 10nt, which states 50 million in sales in 09 and 10 million filed as taxable income.
Company going out of business, SEC to stop it's stock trading, a pure scam. No hope no way out for Spongetech, it's over.
Yet, the company is still acquiring NEW ad clients and coming out with new products (maybe a little lame) but are new.
It can't be to dump additional stock on the market because after the 20, the stock wouldn't be trading.
Sure not acting like a company that is on the brink of death.
March 31, 08 the company had 205,907,825 shares of o/s stock per 10q.
Today o/s is 2,500,000,000 per yahoo.
Company is only making money by selling shares.
With 7,000,000,000 A/S.
No long term play here until after the R/S.