Replies to post #200135 on Spongetech Delivery Systems, Inc. (fka SPNGQ)

[harvard homeboy]

overachiever,

Thanks for injecting a little sanity into this discussion.

I don't think the delay is being caused by Robison having to go back and restate prior year's financials. It's being delayed because Robison wants to incorporate a "going concern" statement into the opinion letter. Robison has seen through the shenanigans associated with the company's A/R balances and is insisting on: (1) a significant writeoff of those balances, which is appropriate, since they can't be verified; (2) a provision for uncollectible receivables, which is appropriate and which also is a direct hit to the bottom line; and (3) a restatement of the current FY's sales and net income numbers for the three prior quarters, since many of the sales have been booked as revenues while the product has been sold on a contingency basis and shouldn't have been booked at all.

Just fwiw, I'm up 42% on my short position in SPNG during the last 12 trading days.

Good luck to all.

[z4lover]

what was the effective date of the 2.75 billion AS?

the 300 million AS is effective on the 22nd...

as known by the 8k

you say the AS is 2.75 billion... I call BS... please let me know when the effective date of that is...

[phrantic]

OA, I've got to ask, are you one of Dougie Boy's team players?

[harvard homeboy]

overachiever,

<< The company will probably never file because they will have to restate earnings for the past two or three years if they do. >>

Great call with respect to the prior period restatements. Moreover, since SPNG has already fired Robison, they (Robison) have absolutely nothing to lose by taking a prudent, cautious, and super-conservative approach to the prior period restatements as well as the current statements for the FY ending May 31, 2009 since they know this is going to be a one-engagement relationship.

That means SPNG has no leverage with Robison whatsoever since the bright guys at SPNG have already burned those bridges.

Just fwiw, I'm up 49% on my short position in SPNG for the last 13 trading days.