Spongetech Delivery Systems Inc (fka SPNGQ)

[Spinosaurus]

POST TO NO ONE: QUESTION

Assuming that their are illegal naked shorts out there floating air shares of spnge, and further assuming there is some covering of such air shares, then the question I have is this: Do the hedge funds or whomever has floated the air shares which are now covered -- do they exist for income tax purposes or not? Do the hedge funds pay federal income taxes on the profits they make from covering the air shares of spnge?

Or because the shares to not exist in reality, then poof there is no tax liability? Those are my questions with respect to spnge.

Further, I know all of us spnge S/Hs with spnge shares in our brokerage accounts, that when we eventually end up selling our shares for profits or losses, we have to pay federal income taxes on the profits and take tax losses -- regardless of how or what the shares are in our brokerage accounts -- real or air shares -- because for us they are real. And our brokerage firms account for them and give us a printout at end of year. Spino