Spongetech Delivery Systems, Inc. (fka SPNGQ)

[OldTymer]

stoxmagic, I finally figured it out!...

You type like George Bush Sr. used to speak. I knew that style rang a bell. lol. A couple of things:

Regarding SPNG and RME. There is what's called an "Arms Length Principle" that business dealings (and other areas) must adhere to.

You said: "In the case of SPNG and RM Enterprises we're talking financing viewable as a series of private placements. Equity-based. The involved issuances viewable as collateral. Loan collateral. Those issuances complete with a restrictive legend(s) attached. And issued at a 40% discount to market level in light of associated risk. That market level could see a significant and sustained downturn post-issuances. A matter of management putting their own money on the line in bringing value to all involved."

The law says:

http://legal-dictionary.thefreedictionary.com/Arm's+length+principle

"arm's length adj. the description of an agreement made by two parties freely and independently of each other, and without some special relationship, such as being a relative, having another deal on the side or one party having complete control of the other. It becomes important to determine if an agreement was freely entered into to show that the price, requirements, and other conditions were fair and real. Example: if a man sells property to his son the value set may not be the true value since it may not have been an "arm's length" transaction. (See: contract)"

It seems to me that the relationship between Moskowitz and Moskowitz couldn't be closer, regardless of what their (his?) intent was, i.e., to provide funding for SPNG, or the fact that it was loan collateral. Doing it this way to avoid toxic funding is admirable, but the "Arms Length Principle" also has it's own rules. Maybe the SEC decided that relationship was a no-no? I don't know-know if it was a no-no, but it could have been.

You Said:

"'We are proud to announce that our Company is now cash flow positive and can finance our immediate growth from the cash generated within. We have been in negotiation with two banking institutions that could potentially provide us with accounts receivable financing, if and when needed for the future growth of our Company. However we hope that future cash requirements for product development, marketing, production, and financing of inventories and receivables can and will be generated internally.'"

Then how did a $70,000 check bounce?

You said:

"Mr. Moskowitz having, again, made the situation entirely plain. The OTCBB first. THEN all hell breaks loose! Flatly stated via email in response to a series of very direct questions."

Mr. Moskowitz doesn't exactly have the best track record of telling the truth. I'm not talking about just missed deadlines. I'm talking about flat out lieing. Did it ever occur to you that you and your 'group' are being misled? If everything you are posting here is coming from Mr. Moskowitz, how can you be sure of anything?

p.s. As several have stated many times before, SPNG is NOT "America's Cleaning Company." That slogan belongs to Vanity. SPNG's slogan is now: "The Smarter Sponge." You did know that, right?