Spongetech Delivery Systems, Inc. (fka SPNGQ)

[Carpedeim357]

Not funding from Dubai. Per past PR they have big order 4,250,000 million to ship this month to Dubai. The payment terms on delivery. In order to make the inventory for that order they would have started making it at least 60 days ago. They have to pay the manufacture cost of inventory by now and why funding was need ahead of them getting paid. If margin is say 60% on that order they make over 2.4 million profit. The total A/r coming back will be 4,250,000 of which over 2 million is profit margin. That is why Dec is good time to start RME buyback when that cash comes in.

Funding is about getting a company to a point the sales are covering all the expense and profits grow to where they no longer need funding. Seems Q2 we are there.