good morning all. a friend of mine asked me to review the documents with an open mind as i do not follow the company or this board at all. I am a corporate officer of a similar company to spongetech so as a courtesy i have not only read and reviewed the legal documents filed with the court but other public information, such as D & B reports, industry publications and, most entertaining, the postings here and on Yahoo. a quick analysis follows:
1. Management here is contemptable.
2. The NY Post has not done all of their homework.
3. I will state with almost 100% certainty, due to my own DD, that the sales referred to in the legal filings relate only to the Dicon division. I have spoken with associates at many of the retail channels referenced and all have positive things to sale about the products being sold. Perhaps, or actually most likely, it is the commissioned, independent sales representatives doing a find job of marketing the product. A quick mental audit would suggest that with the number of doors spng's current customers are selling, the initial distribution of product would esceed 2-3 million dollars alone.
4. The forensic audit was only performed at Dicon. the Spng sales were simply a redirection of produt through Dicon that would be shown on their books rather then SPNG. R + H has done a separate audit but for some reason only the Dicon portion was released. A continuation of the contempt the company shows for its employees and investors.
5. I know nothing about criminal law but something more than most about the financial, civil allegations by the SEC. The mis-reporting of information as well as its tardiness will only subject them to civil penalties but, once released, and perhaps just what was given to the courts, should be enough to allow the company to stay out of becoming frozen. What remains to be seen is whether or not the SEC files an answer to spng, whether they withdraw their complaint and leave something to the DOJ, and if they themselves visited the manufacturing and office sites.
Thats it for a sunday morning. will continue to review and hopefully get some more info this week.
all is just my opinion. good luck whatever you think.
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