Spongetech Delivery Systems, Inc. (fka SPNGQ)

[armour1955]

Wow...i just sold my position with SPNG a week ago and now this. The longs have a right to be frustrated. Mgmt should NEVER get blindsided by something so basic as having a trustworthy and competent auditor. THis situation has been accelerated by all the claims pouring into the SEC about SPNG being a scam. IMHO i don't think it is but mgmt placed too much emphasis on being debt free and issued far too many shares to raise capital which opened the door for all this criticism and then the NSS crashed the party and then here comes the auditor meltdown. I will wait a little longer...i think it has much lower to go and then get back in but it will be while before it can regain its momentum. The NASDAQ transition will be at least a year away and the audit results i think will be good (i hope). Problem is it appears mgmt deliberately chose auditors who would "bend" the numbers. SPNG is a pretty straight forward venture. Make sponges and sell sponges. The capital structure will cause pause but other than that the remaining question is were the sales booked legitimate...SA Trading and some others. If the sales were legitimate and DT attests to it the PPS will take off and confidence will be restored. Mgmt then needs to take care of the capital structure.

I am a LONG sitting on the sidelines watching the play develop.