Spongetech Delivery Systems Inc (fka SPNGQ)

[harvard homeboy]

christy,

This is a novel assertion, and one I've never heard before. I had always thought, perhaps somewhat naively, that there was a Chinese wall that separated the IRS from the SEC and that they didn't throw information over the wall to one another.

I still maintain that SPNG will never file another set of financials for the reasons I previously stated.

However, since you have an accounting background, I'm interested in getting an answer to the following: If you put SPNG's financials on a GAAP-compliant basis and reflected the cost of all the stock option grants given to RME, Moskowitz, Metter, et al, at 40% discounts to then-prevailing market prices, and had the value of those discounts flow through the income statement, what would SPNG's net income number have been for the nine months ending Feb 28, 2009?

Have you gone through this exercise yet?

The company would be awash in a sea of red ink and negative EPS, and no one would have ever taken the company seriously as a potential investment.

Just wondering if others have looked at this, really.

TIA