Spongetech Delivery Systems Inc (fka SPNGQ)

[harvard homeboy]

Want to know what happened at Dicon when the folks from Salt Lake City flew in from out of town and why the audit work at Dicon has proven to be more cumbersome and much more time consuming than anyone would otherwise have thought?

Dicon is a one-accountant operation and she's got her hands full. And remember that Dicon had closed its doors back in 2007. So when the newly-minted CPA from Robison walked in the door and asked to see the workpapers for Dicon's fixed assets, he was pointed in the direction of the attic and had to go forage for himself.

And what he found was a real shocker, too -- no workpapers had been done since March, 2006. After all, the company was in the process of imploding during that time period and the company had responded to cost pressures by laying off the folks who don't generate any revenues -- including the debits and credits guys who would have completed those workpapers.

So Dicon's accounting workpapers -- all of them -- were a mess when the Robison guy walked in. And all of a sudden instead of it being a one-week engagement, it turned into a full-time job, and one with 70-hour workweeks, too.

And I can guarantee you that there's no way that Robison is going to sign off on anything pertaining to Dicon without looking at Dicon's compliance with relevant environmental laws and the contingent liability associated therewith, among some of the other things you overlooked. Remember, environmental liability is backward-looking, and can and does go back several years.

But there's nothing to debate, really. Believe who and what you wish.