Spongetech Delivery Systems, Inc. (fka SPNGQ)

[loanranger]

2007?

I guess that bit of eloquence is in response to:
"Which future filings will require the inclusion of y/e 2007 or prior financial statements?"

Facts:
1. The company has been required to re-audit the year ended 5/31/08.
2. There is no requirement at this point to file a new set of statements for 2008.
3. No financial statements for 2008 will be filed unless the re-audit results in a need to adjust and restate the 2008 audited results. Hence, there would be no need to re-audit the y/e 5/31/07 financial statements.

Cher, er I mean Kaja, was clearly not accurate when she wrote "But on Friday, SpongeTech received a letter from the SEC ordering it to redo its financial statements for the last two years, including the one that just ended." For starters, "Redo" doesn't appear in any of the accounting literature, whether she intended it to mean restate or re-audit. And as far as "the one that just ended" is concerned, it doesn't need redoing...it needs doing. It's just my opinion, but it sounds more sloppy than libelous.

Finally, I'm not naive enough to think that a re-audit, should one ever surface, of 2008 wouldn't require some adjustments and a subsequent restatement. But as of this moment that is not the case.