Spongetech Delivery Systems, Inc. (fka SPNGQ)

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The SPNG Filings do NOT disclose the True cost of goods sold and the true SGAE costs. What are the TRUE ACTUAL costs , Why does'nt SPNG Disclose the amounts "NOT CHARGED BACK TO THE COMPANY"?

The FACTS are > SPNGs' $2 mil profit from this filing is not truly a $2million profit....

These non disclosures are one reason why SPNG cant file a registration with SEC and have it declared effective , (no wonder RME will give shares back they know they will never be registered?) these tpyes of games with the books are for pinksheet BS companies. IMO These issues are why SPNG is .15 per share, and it should be $1.50 or more , when you dig in the filing you see they are lacking extremely important disclosures , and no reason for it other then hiding something , if it is not big amount , no big deal, WHY NOT DISCLOSE IT?!

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