Replies to post #271653 on Spongetech Delivery Systems Inc (fka SPNGQ)

[OldTymer]

Carp, the Franchise Tax Fee is based on the Authorized Shares, not Revenue. Here's my chat with the Delaware Franchise Tax Operator (live operator):

Below is a copy of your recent chat with a Delaware Division of Corporations representative. Thank you for visiting Corp.Delaware.gov.
General Info
Chat start time Dec 24, 2009 10:03:34 AM EST
Chat end time Dec 24, 2009 10:07:15 AM EST
Duration (actual chatting time) 00:03:40
Operator Latecia



Chat Transcript
info: Routing your chat request to a Corporations Franchise Tax Specialist. You are person 1 of 1 waiting to be served. Important: Please do not provide sensitive information (such as social security numbers, etc.) while chatting.
info: You are now chatting with 'Latecia' with the Delaware Division of Corporations Franchise Tax Section.
Latecia: Hello, Please hold as I review your question.
Kirk: Thanks, Latecia
Latecia: Our franchise tax is based on authorized shares
Kirk: Aurhorized, not Revenue, correct? I read through your sitee and that's what I thought it said. Just wanted to confirm
Latecia: The site gives all the information.
Kirk: Okay, that was my only question. Thanks and have a great holidy season, Leticia!
info: Your chat transcript will be sent to [e-mail] at the end of your chat.

ttattletell has it all wrong. He's basing that payment on revenues. According to Delaware, it's based on Authorised shares:
You have to use this section because SPNG has a par value of .001 for both their common and preferred shares. If you use this section, the franchise tax fee is based on authorized shares and assets:

"Assumed Par Value Capital Method

To use this method, you must give figures for all issued shares (including treasury shares) and total gross assets in the spaces provided in your Annual Franchise Tax Report"

Here's the definition of "Assets":

"In financial accounting, assets are economic resources owned by business or company. Anything tangible or intangible that one possesses, usually considered as applicable to the payment of one's debts is considered an asset. Simplistically stated, assets are things of value that can be readily converted into cash (although cash itself is also considered an asset).[1] The balance sheet of a firm records the monetary[2] value of the assets owned by the firm. It is money and other valuables belonging to an individual or business. [3] Two major asset classes are tangible assets and intangible assets. Tangible assets contain various subclasses, including current assets and fixed assets.[4] Current assets include inventory, while fixed assets include such items as buildings and equipment.[5] Intangible assets are nonphysical resources and rights that have a value to the firm because they give the firm some kind of advantage in the market place. Examples of intangible assets are goodwill, copyrights, trademarks, patents and computer programs,[5] and financial assets, including such items as accounts receivable, bonds and stocks"