Spongetech Delivery Systems, Inc. (fka SPNGQ)

[patchman]

fourkids,

Can you explain in detail what makes this a solid investment? Have you verified the companies SpongeTech claims to ship to? If not, why not, based on the level of controversy that is out there regarding them?

A 10Q is only as good as the accuracy of data that goes into it. In this case, all investors here are basing their investment solely on teh sales numbers and yet not one can come up with evidence that those sales are real and being shipped to a distributor identified by SpongeTech.

Furthermore, can you explain in detail the cash flow situation with SpongeTech. Where does their cash come from? Please use 2009 filings as an example of how SpongeTech makes their payments for services. From the last 10Q, the company had $31 Million revenues and nearly $7 Million profit on Revenues while at the same time they borrowed $12 Million from RME and had $34,000 in the bank. Fast forward this profit/spending profile to explain stock buy backs, accelerated advertising program, acquisitions, and investments. Tell me how they spend all this money without tapping RME based on how sales are created, invoice payments received (on a delayed basis), and ramp up in manufacturing.

If you want to tout the stock, please do so with supportive arguments that make sense. Touting a stock to keep people invested without explaining to them in detail why these red flags should not be a concern is as bad as any accusations you with to make against "bashers".

I challenge you on this because you reached out and asked me questions in private about the authenticity of my concerns and never revealed such to the board.

Dave Patch
http://investigatethesec.com/drupal-5.5/?q=node/906