Spongetech Delivery Systems, Inc. (fka SPNGQ)

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spin it however u like. That is all fine by me , I will stick with the FACTS.

These filings DO NOT show the true profit (loss) of the company... Why not disclose these costs ""not charged back to the company" ? if it is such a small no big deal issue - why not disclose the costs? Or would they also have to maybe disclose the total number of shares they paid to these guys to cover these costs? not sure - but if it was not a large amount of money why NOT disclose? Does it maybe take these totals of this filing from a profit to a loss? not sure , we dont know , it is NOT properly disclosed... This is WHY SPNG trades for pennies and not dollars. IMO

Cost of Goods Sold
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>
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