Spongetech Delivery Systems, Inc. (fka SPNGQ)

[harvard homeboy]

Meanwhile, the real news today with Spongetech is that they've fired Robison as their accountants and have hired Deloitte and Touche instead.

http://www.sec.gov/Archives/edgar/data/1201251/000114420409045302/v158943_8k.htm

As previously predicted (go back and take a look at my previous messages on this subject) this effectively confirms that Robison and Spongetech are at one another's throats right about now, engaged in a shouting match about:

1. Related party transactions and the auditor's insistence to increase transparency related thereto, confronting Moskowitz's insistence that everything has been disclosed that needs to be disclosed;

2. Setting up a reserve against bad receivables, which are really, really bad when it comes to those on the books from places like Russia and South America;

3. Cleaning up the cash flow statement so that it actually has some congruence with economic reality, as opposed to the clearly non-GAAP compliant nonsense on there now where cash inflows from stock sales are shown as "operating cash flows" lol;

4. Writing down the value of the inventory, since it's already in the process of being written down in the marketplace and, like most inventory sitting on the shelves is depreciating, and rapidly so;

5. Robison's insistence that they need more time to complete the 10-K past the Aug 31 deadline, versus Spongetech's insistence that the 10-K needs to be delayed forever;

6. Problems Robison is having getting back those pesky confirmation letters from places in Russia and South America, which is gumming up the works and slowing things down to a crawl;

7. Problems Robison is having with confirming balances on Dicon's books. After all, and as we all know, Dicon had shut its doors back in 2007, and the first thing to go was the debits and credits guy since if you have a failing business what do you need to keep the books in order for while you're imploding?;

Oh yeah. Three auditors in three years is what any objective observer would call a "red flag."