Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

nick,
I believe it is statement b), with a change in tense. It's tough to judge intent.
b) there is no audited 10k because SPNG does not choose to release one.

Dell has been brought up for comparison purposes due to their own SEC investigation and delayed filings of several years ago. While the issues are far from apples-to-apples, I thought you might find the following chronology interesting.

From an 8K filed on 8/17/06:
"ROUND ROCK, Texas--(BUSINESS WIRE)--Aug. 17, 2006--Dell
(NASDAQ:DELL) reported revenue of $14.1 billion for the second quarter of fiscal year 2007, an increase of 5 percent year-over-year."
The filing continued on in fine detail to provide the results for the quarter. It also included the following:
"In August 2005, Dell received notice from the U.S. Securities and Exchange Commission that it was conducting an informal(emphasis mine) investigation of the company. The notice stated that the investigation is not an indication that any violations of law have occurred. The SEC has requested information relating to revenue recognition and other accounting and financial reporting matters for certain past fiscal years, and Dell has been cooperating."

Yet, while they were explicit in their reporting of their results for the quarter on 8/17, they filed the following, including the quoted narrative on 9/14.....the due date of the 10Q FOR THAT QUARTER:
FORM 12b-25
NOTIFICATION OF LATE FILING
"As announced on September 11, 2006, Dell Inc. is delaying the filing of the Form 10-Q for its fiscal second quarter ended August 4, 2006. The company is unable to file because of questions raised in connection with the previously announced informal investigation by the U.S. Securities and Exchange Commission (“SEC”) into certain accounting and financial reporting matters, and the subsequently initiated independent investigation by the Audit Committee of its board of directors."


My reading of that, and that's all it is, is that Dell CHOSE not to file of its own volition and while the decision was made based on issues brought forth by the SEC, it was not dictated by them.

It's just a story and it probably wouldn't be a good idea to draw any definitive conclusions from it. But, at the same time, I seriously doubt that we'll be seeing any stories about the SEC REFUSING TO ALLOW a company to file a filing. If there are any such stories I hope whoever finds them will post one.

Good luck.

http://sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000826083&type=&dateb=&owner=exclude&start=160&count=40

ps. Curiosity items:
The 10Q in question was eventually filed on 10/30/07. The SEC investigation was ongoing at that point as a formal investigation (converted from informal in 10/06), but the internal Dell Audit Committee investigation was complete. The current Dell 10Q, filed on 12/3/09, says "Although the Audit Committee investigation has been completed, the SEC investigation is ongoing. Dell continues to cooperate with the SEC investigation." So it's three years and counting.
Share prices by date were/are:
08/17/06 22.80
09/15/06 21.35
10/30/07 29.80 (10/15-11/15 range of 28.18-26.83)
12/22/09 14.11