Spongetech Delivery Systems Inc (fka SPNGQ)

[patchman]

I was reading into the language of the filing. The 2008 operatuions were at a $900K loss on less than $7 million in sales. The filings stated that they "believed" they would be cash flow positive had it not been for Moskowitz actions as of late. That implies that they have not yet been there.

This is certainly a sticky matter as you have to take two things into consideration and theorize from there. Without Moskowitz and some of his fraudulant advertising the SPNG related revenues for Dicon (reported at $1.7) would not have existed. The $1.7 Million represents a significant percentage of the reported overall revenues ($7.7 Million). But then Moskowitz also siphoned money away from the company as well and hurt their reputation. One thing is for sure, up thru 2008 they were operating at a loss (13% of sales) and the audit does not show a significant change in their revenue stream (9%).

If you want to give them the benefit of the doubt, lets say they WOULD have come out cash flow positive this year but that extra cash would not be significant.