Spongetech Delivery Systems, Inc. (fka SPNGQ)

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Good info , SPNG A/R is a RED FLAG imo , it appears they are booking orders taken on phone or a PO faxed over , not yet produced or shipped, as receiveable - Very confusing filings...

AND - This still bothers me BIGTIME , You cant really rely on the SPNG filings , you cant calculate the TRUE earnings being some costs are being paid by outside parties , friends family of the CEO and not counted as expenses on the books , so the true profits are unknown? They will need to clean this up to have ANY chance at an uplist to Nasdaq:


Cost of Goods Sold

Cost of goods sold was $6,547,563 or approximately 36 percent of sales, for the six months ended November 30, 2008 as compared to $48,676 or approximately 14 percent of sales, for the six months ended November 30, 2007. While the cost of goods sold increased significantly as a result of our increase in sales. In addition, during the six months ended November 30, 2008, a portion of our cost of goods sold, including costs related to warehousing, packaging, and shipping of products, were borne by (and not charged back to the Company) a privately-held company controlled by our Chief Operating Officer.

THEN AGAIN UNDER SGAE>

Selling, general, and administrative expenses for the six months ended November 30, 2008 were $733,655, an increase from $95,108 for the six months ended November 30, 2007. During the 2007 fiscal year, a portion of our selling, general and administrative expenses, including costs related to product and package design as well as certain consultants, were borne by (and not charged back to the Company) a privately-held company controlled by the family of our Chief Operating Officer. During the current fiscal year, some of these costs are still being borne by (and not charged back to the Company) a privately-held company controlled by our Chief Operating Officer.


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