Spongetech Delivery Systems, Inc. (fka SPNGQ)

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As well why does SPNG use confusing verbiage in the filing>? under revenue recognition > Are revenues booked when product ships or is it "In instances where products are configured to customer requirements, revenue is recorded upon the successful completion of the Company’s final test procedures." WHAT does this mean and why NOT disclose exactly how much revenue is booked using this method? And think are not all products configured to a customers requirement? Why is this in the filing and NOT fully disclosed, a few lines of simple disclosure and everyone knows exactly when revenues are booked and how much of each segment was booked...

Also Why do they disclose Purchase Orders under revenues in the same filing? is it True these "Purchase orders" are listed as sales, revenues and A/R? Why are these POs in the filing under revenues if not? Makes no sense.... Why not disclose if the Purchase orders are or are NOT included in sales revenues and A/R totals - I would say they are and they are why the sales and A/R grew, they are booking purchase orders not yet produced and not yet shipped as sales, these must be sponges "configured to customers requirements?" Why else are they in the filing under revenues?

Results of Operations
Three and Six months Ended November 30, 2008 and 2007
Revenues

During the three and six months ended November 30, 2008 we had sales of $12,341,737 and $17,886,356, respectively, as compared to sales of $278,976 and $343,052 during the three and six months ended November 30, 2007. Management attributes this change primarily to increased sales from international customers. In addition we began making shipments to retail outlets and distributors to domestic companies and anticipate increased sales domestically. Also, we anticipate sales in connection with our Puddle Pal’s Children Sponge which was launched on November 25, 2008 and also sales of our Uncle Norman’s Pet Sponge which we launched on July 11, 2008. To date we have received purchase orders of $4.7 million for Puddle Pal’s Children’s Sponge products and $6.4 million for Uncle Norman’s Pet Sponge products.

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NOTES TO FINANCIAL STATEMENTS
November 30, 2008
NOTE A – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7. Revenue Recognition

Sales and services are recorded when products are delivered to the customers. Provision for discounts, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. In instances where products are configured to customer requirements, revenue is recorded upon the successful completion of the Company’s final test procedures. For the six months ended November 30, 2008, three customers, SA Trading Company, Dubai Export Import Company and New Century Media, accounted for 82.9 percent of sales.

http://www.sec.gov/Archives/edgar/data/1201251/000114420409002030/v137081_10q.htm