The only thing that has changed over the last 2 months is the late 10K.
The company is still doing business as before, developing new products and advertising in new locations.
The 10k is late because the government has ask for past 10k's to be redone, because the auditors that did them were found to be incompetent. Spongetech did not do the audits.
If any one has ever had any dealings with a government agency example IRS, they would know that, that it going to take quite awhile before this is cleared up.
The government does not move very fast except in spending money.
The only reason that SPNGE trading might me halted is because the SEC rules state that they must file a 10k within a certain time frame. The reason that the 10k is not being filed is because the SEC will not accept the current 10k until the new auditors review them and resubmit them. The new auditors will not just sign their names to them, until they go though them and make sure the incompetent auditors did it correctly.
This take TIME. Again Spongetech did not do the original audits.
Spongetech is at the mercy of the new auditors and the SEC. Nothing Spongetch did and nothing they can do can make this problem go away any faster.
The only thing they can do is business as usual.
Once the 10k are audited either accepted as currently written or errors found and adjusted, the E will be removed Spongetech will be back in good standing and normal trading patterns will return.
I believe an SEC doucument was filed 10nt, which states 50 million in sales in 09 and 10 million filed as taxable income.
