Spongetech Delivery Systems Inc (fka SPNGQ)

[Taxman Bill]

Wolveryne!!

YOUR point APPEARS VALID, but is IS INVALID. The stock he ownes is stock issued for "employment" and has "restrictions on when it can be sold. Unlike other restricted stock, EMPLOYMENT stock option stock can only be sold after a certain period of time, and then sold through a broker at end of day prices, not spefic prices. and when stock is sold sincve it was issued at Discount, becomes, "wages" subject to FICA, Medicare, and federal and state Income taxes, and NOT capital Gain Taxes. I have done taxes for many clients when the dot com options were exercised. TAXES on W-2 and also issued a 1099-B from broker on sale. Hence No Capital Gain (noramlly a slight loss. for commissions since Gross sales is Income on w-2) eom