Spongetech Delivery Systems, Inc. (fka SPNGQ)

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Interesting how the PR states "3.2 million in new revenues" "The Company has received the initial orders...."

Is SPNG declaring these revenues on the books and holding it as A/R in the current period? Does not sound like This product is completely produced and ALL shipped and paid for? It is very tricky line to walk , claiming Purchase Orders as revenues.... I would like to see SPNG clarify when they in fact book revenues , is it when the product is shipped and paid for , or is it when an initial order is placed, an order that might be a years worth of product and then produced on a month my month basis and drop shipped as the distributor recceives orders... ? SPNG needs to clarify and disclose how much of the booked revenues are shipped and paid for vs how much is initial orders that can last for long periods but are booked as a complete sale upfront....?

Interesting article on Revenue Recognitions:

Improper revenue recognition: to help clients avoid SEC violations, internal auditors need to...
http://www.allbusiness.com/accounting-reporting/reports-statements/168833-1.html