Spongetech Delivery Systems, Inc. (fka SPNGQ)

[crashman]

No Here is all the information:

1. What is a Threshold Security?

Threshold securities are equity securities that have an aggregate fail to deliver position for:

* five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));15

* totaling 10,000 shares or more; and

* equal to at least 0.5% of the issuer's total shares outstanding.16

Threshold securities only include issuers registered or required to file reports with the Commission ("reporting companies").17 Therefore, securities of issuers that are not registered or required to file reports with the Commission, which includes the majority of issuers on the Pink Sheets,18 cannot be threshold securities. This is because the SROs need to look to the total outstanding shares of the issuer in order to calculate whether or not the securities meet the definition of a "threshold security." For non-reporting companies, reliable information on total outstanding shares is difficult to determine.

and when does it come off the Threshold list?
Here it is:

4. Inclusion on, and Removal from, Threshold Lists.

At the conclusion of each settlement day, NSCC provides the SROs with data on securities that have aggregate fails to deliver at NSCC of 10,000 shares or more. For the securities for which an SRO is the primary market, that SRO calculates whether the level of fails for each security is equal to, or greater than, 0.5% of the issuer's total shares outstanding of the security. If, for five consecutive settlement days, such security satisfies these criteria, then such security is a threshold security. Each SRO includes such security on its daily threshold list until the aggregate fails level for the security falls below these levels for five consecutive days. (See below for a discussion as to why a security may appear or remain on a threshold list.)


and of course they explain why a security like SPNG would be longer than 13 days on the list:


C. Reasons Why A Security May Stay on a Threshold List for Longer Than 13 Consecutive Settlement Days

Even when broker-dealers close-out delivery failures, a security may remain on an SRO's threshold securities list for longer than 13 days. Examples of why securities may remain on the threshold securities list:

* after broker-dealers close-out all delivery failures, the security stays on the threshold list for five consecutive days;

* new delivery failures resulting from long or short sales may have crossed the threshold, keeping the security on the SRO's threshold securities list; or

* the delivery failures at NSCC may have been established prior to a security's appearance on the SRO's threshold securities list, and are grandfathered from the close-out requirement of Regulation SHO.

For information about specific securities, contact the appropriate SRO or its market center listed above.

http://www.sec.gov/spotlight/keyregshoissues.htm