Perhaps, butt Walgreens in fact took and sold sponges from Spongetech on a consignment basis. Sold them at a loss, butt sold some.
"Regardless of Feinberg’s use of working capital to generate sales, the SEC’s exhibit dump a few weeks back provided a treasure trove of internal SpongeTech documents showing conclusively that the company’s claims to be doing substantial and profitable business with Walgreen’s were a joke.
At a time when five of their six top customers were an illusion, Walgreen’s -- the sixth -- was certainly not. However, the business they were doing (when not fraudulent) appears to have been spectacularly unprofitable. To wit: Shipping product to a retailer across the nation at a unit cost of $6 (less a 5% discount) and then preparing for it to be discounted straightaway to $4.99 from $9.99, while guaranteeing the store its margins, bearing all return costs and committing to a $15 million ad campaign is just a really hard way to earn a living.
Based on the SEC exhibits filed on PACER, all of the Walgreen’s purchase orders add up to a grand total of $206,622. Moreover, the majority of the orders -- just under $181,000 -- were entered on Feb. 13 last year as part of the national Walgreen’s rollout. More importantly for SpongeTech, though, was the fact that these orders were included in the quarter ended Feb. 28, just in time for the last available financial filing."
News 
Market Data 
Discover 
AI
