Spongetech Delivery Systems Inc (fka SPNGQ)

[P2O I'm from MO]

While it is true that most companies do not park large amounts of cash in banks,
they do require cash for payroll and monthly expenses. The ~$34K cash balance that
was reported on the last Q is not nearly enough to pay the salaries of office workers,
monthly lease, utilities, etc. No company that was ever a client of my company ever
had less than two-three months of monthly expenses in cash in the bank unless they were
under duress from short lived A/R problems. If they were, they then had to resort to
short term loans or lines of credit. Generally speaking, those are not the preferred
method of financing payroll and day-to-day office expenses and usually noted by
accountants to clients.

Regards.