Replies to post #314348 on Spongetech Delivery Systems Inc (fka SPNGQ)

[overachiever]

No Harvard, I think the sales are real. Always believed this.

So you, as a professional accountant, believe that SPNG sold 13.16 million dollars worth of auto, pet and pet bowl sponges in the 3rd quarter of 2009 ending Feb of 2009 broken down as follows:

3.712 million dollars in the US and Canada (would have included the beginnings of the Walgreens stock...Some Walgreens stores did not become stocked until mid summer of 2009)

2.975 million in Europe (No footprint whatsoever in European retail stores)

2.46 million in Russia (in the dead of the same kind of brutal winter that helped defeat Napoleon and the German War Machine, Russians everywhere were washing their cars with a soap filled sponge with only English instructions printed on the box, lol)

1.97 million in South America (No footprint at all in South America for the above listed items)

1.57 million in Dubai (No footprint)

329 thousand in Korea (No footprint)

131 thousand in Australia

Remember this?

Revenues

During the three and nine months ended February 28, 2009 we had sales of $13,164,277 and $31,050,633, respectively, as compared to sales of $1,281,704 and $1,560,680 during the three and nine months ended February 28, 2008. Management attributes this change primarily to increased sales from international customers. In addition we began making shipments to retail outlets and distributors to domestic companies and anticipate increased sales domestically. Our sales for the period ending February 28, 2009 were broken down as follows:

Location Percentage
North America 28.2
Europe 22.6
Russia 18.7
South America 15
Middle East 12
Korea 2.5
Australia 1

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=6548765

And you believe that the following customers made up 99.4% of SPNG sales for the first nine months of 2009 even though outside of Walgreens no one can find any trace of these customers anywhere?:

We no longer depend on a few customers for almost all of our sales. For the nine months ended February 28, 2009, six (6) customers, SA Trading Company, Dubai Export Import Company, Fresco Sales Corp, US Asia Trading, New Century Media and Walgreens accounted for 99.4% percent of our sales.

and after all of this, you believe that SPNG had 14 million in uncollected accounts receivable but had set aside no provision for bad debts because all of the above listed and mostly invisible customers were of sterling credit risk?

[OldTymer]

CFC, regarding this statement...

"If sales are fake, an amended 2009 return would be filed, to get the taxes back".

I would think a more likely outcome would be that if the SEC and/or the IRS could prove that the sales figure reported were due to cooked books, i.e., SPNG knew those sales figures were incorrect, wouldn't M&M more likely be arrested and charged with income tax fraud? I'm not sure they would actually get a refund.