Spongetech Delivery Systems Inc (fka SPNGQ)

[BMK]

Okay, now seeing how this was misunderstood. In this case, authorized has two separate meaning, so it is apples-to-oranges.

In the case of the selling of unauthorized long shares, authorized refers to "allowed to." They were restricted, therefore not "authorized" to be sold onto the market without the fake opinion letters. In this respect, you are correct, and understand the confusion.

In the other case, authorized refers to total number of shares authorized by SEC, where restricted shares are also included. Below is the previous example for SRV. The math is simple, the concept more difficult when authorized is used in separate contexts:
• Authorized Shares – 100
• Unissued Shares – 20
• Restricted Shares – 10
• Float – 70 (100 – 20 – 10 = 70)
• Outstanding Shares – 80 (10 + 70 = 80)"

In this case, authorized includes restricted, so the fake opinion letters simply illegally moved restricted to float, but still a part of authorized shares. This should clear things up for you, but feel free to respond if it still does not make sense.

To be clear, also agree that SPNG insiders sold what should have been restricted shares into the market. It is only the terminology that was confusing and, in your defense, it can be confusing.