I ran across a post on the Yahoo Board from a poster going by the name of AngusDoctor.
Very keen eye this person has as this particular piece of evidence escaped my notice.
It would seem our very own Michael Metter and Steven Moskowitz need to read the company's Code of Business Conduct and Ethics again. (see earlier post)
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In a Press Release issued on April 15, 2009, Spongetech states ,
NEW YORK, April 15 /PRNewswire-FirstCall/ -- SpongeTech® Delivery Systems, Inc. America's Cleaning Company(TM), (OTC Bulletin Board: SPNG - News), today reported record sales of over $13,000,000 for the third quarter ending February 28, 2009. Revenues for the period increased by $11,859,353 over revenues reported for the same quarter last year. Net income for the third quarter of 2009 was over $2,250,000, compared to a net loss of $188,482 for the comparative 2008 quarter; reflecting exponential growth over the same period last year.
Unfortunately,,,,,, in the 10Q released 5 days later on April 20, 2009 it states on page F-4 in the section "Statements of Operations - Unaudited"
STATEMENTS OF OPERATIONS
Unaudited
For the three months ended | ||||||||
February 28, 2009 | February 29, 2008 | |||||||
Revenue | $ | 13,164,277 | $ | 1,281,704 | ||||
Cost of goods sold | 6,809,354 | 174,022 | ||||||
Gross profit | 6,354,923 | 1,107,682 | ||||||
Operating Expenses | ||||||||
Advertising and promotion | 3,694,677 | 738,760 | ||||||
Selling, general and administrative | 330,801 | 176,104 | ||||||
Research and development | 3,125 | 0 | ||||||
Depreciation and amortization | 33,257 | 4,336 | ||||||
Total operating expenses | 4,061,860 | 919,200 | ||||||
Income from operations and before provision for income taxes | 2,293,063 | 188,482 | ||||||
Provision for income taxes | 779,641 | 0 | ||||||
Net income | $ | 1,513,422 | $ | 188,482 | ||||
Net income per share from continuing operations: | ||||||||
Basic and diluted | $ | .00 | $ | .00 | ||||
Weighted average number of shares outstanding: | ||||||||
Basic and diluted | 1,096,245,460 | 115,056,086 | ||||||
The accompanying notes are an integral part of these statements
F-4
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I do not know about you people but I can detect the faint scent of deception regarding this Press Release and the 10Q.
It seems extremely obvious to me that in no way shape or form can you confuse the two figures that I have texted in blue.
One says - Income from Operations,,, and one says NET INCOME
Income from Operations is over $2,250,000.
NET INCOME is only $1,513,422
The Press Release stated NET INCOME WAS OVER $2,250,000
You see how it works is like this,,,,
first you have your Income from Operations,,,, then you pay income taxes on your Income from Operations,,,,,,,AND THEN YOU CALCULATE YOUR NET INCOME.
I don't know, maybe it is just me, maybe I am nitpicking???????
Or maybe I expect the Officers of a Public Company to be Honest and Straightforward with shareholders.
But what do I know????? I'm just Moe
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Special Thanks goes out to AngusDoctor for the orignal post which can be found in the links below.
