Spongetech Delivery Systems Inc (fka SPNGQ)

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Take this previous filing as example , IMO this is very deceptive if not outright cooked books.... IMO

IMO it appears they completed the "final test procedures" and got "final approval" for the sponges for these 2 purchase orders below and then listed a years worth or more of orders as a done deal one time sale out the door?

Per the filing:

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.

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