Spongetech Delivery Systems, Inc. (fka SPNGQ)

[harvard homeboy]

christy,

I have to say I'm surprised that in one message post you suggest that SPNG has filed fraudulent income tax forms with the IRS based on phony revenues, but say it's not a big deal since SPNG can restate their income taxes due as long as it's within the statute of limitations and get a refund.

Now you're saying that a Chapter 11 reorg is no big deal for SPNG.

There are some significant unknowns associated with this company right now. For example, we don't know what the off-balance sheet liabilities are for this company, and they could very well be big enough all on their own to wipe this company out, and I believe they are.

I guess we'll have to just wait and kick back and see how the shareholder class action litigation goes, for one thing, and take it from there.

However, with SPNG getting lawsuits now all the time, and with other sports teams likely to file as well, this company could very well be forced into involuntary bankruptcy at any time.

I don't think I'd be sanguine about the bankruptcy scenario, especially given SPNG's well-known cash flow problems.

GLTA