SPONGETECH DELIVERY SYSTEMS, INC.
NOTES TO FINANCIAL STATEMENTS
February 28, 2009
NOTE A –
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
7.
Revenue Recognition
Sales and services are recorded when products are delivered to the customers. Provision for discounts, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. In instances where products are configured to customer requirements, revenue is recorded upon the successful completion of the Company’s final test procedures. For the nine months ended February 28, 2009, six customers, SA Trading Company, US Asia Trading, Dubai Export Import Company, Fesco Sales Corp., New Century Media and Walgreens, accounted for 99.4 percent of sales.
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So the five bolded names are NOT actual companies and never existed. Yet Spongetech CFO Moskowitz (the source for the information in this 10-Q) claimed that over 90 percent of sales over 9 months (Walgreens invoices were trivial) were to five non-existent business entities that have never paid a cent to Spongetech, that Moskowitz had never even run a Dun & Bradstreet credit check on (which would have shown them not to exist), that Moskowitz has no documentation of ever demanding payment from, and that in his deposition Moskowitz admitted he had never met anyone associated with these fake businesses. That Moskowitz had George Speranza set up FAKE websites for these FAKE business names in order to dupe investors into believing his FAKE information. That Moskowitz personally handed Speranza the list of these FAKE business names and instructed Speranza to create the FAKE websites.
Moskowitz is the one who reported this false information on the 10-Q.
Any claim that these five phony business names and the reported phony sales are anything other than conjured from the criminal felon mind of Steven Moskowitz is simply not plausible.
