More Spongetech Deception

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)

________________________________________________________________

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.

That is HUGE news for shareholders if I must say so myself.

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

__________________________________________________________________________________________

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.

http://finance.yahoo.com/news/SpongeTechR-Delivery-Systems-prnews-14931119.html?x=1&.v=1

http://www.sec.gov/Archives/edgar/data/1201251/000114420409021409/v146656_10q.htm

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_S/threadview?m=tm&bn=63817&tid=143881&mid=143881&tof=8&frt=2

I found this information to be very funny

I found these statements on the Spongetech Website in their Code of Business Conduct and Ethics section . They gave me a good laugh.

• This Code is intended to focus the Board and each director and executive officer on areas of ethical risk, provide guidance to directors and executive officer to help them recognize and deal with ethical issues, provide mechanisms to report unethical conduct, and help foster a culture of honesty and accountability. Each director and executive officer must comply with the letter and spirit of this Code.
  
• Directors and executive officers must be loyal to the Company and must act at all times in the best interest of the Company and its shareholders and subordinate self-interest to the corporate and shareholder good. Directors and executive officers should never use their position to make a personal profit. 
• Directors and executive officers must protect the Company’s assets and ensure their efficient use. Theft, loss, misuse, carelessness and waste of assets have a direct impact on the Company’s profitability. 
• Directors and executive officers should promote ethical behavior ( hahahahahha that's a good one)

Moskowitz must of been out sick the day this was discussed and instituted as policy.

Read them all over and have a good laugh like I did.

http://www.spongetechs.com/v/vspfiles/code.asp

Let us not forget our DD people

learn from the past so as not to suffer in the future -

http://www.youtube.com/watch?v=bzOZn3DEz2c

http://www.youtube.com/watch?v=mVmjHv4JIdY

and a golden oldie

http://www.youtube.com/watch?v=qqu_oyYTR80

72% of SALES ARE TO OVERSEAS COMPANIES

I wish I had the contact information to confirm these 72% of sales.
Do any of my readers have the contact information to our 72% of sales companies?
Anyone?

A PICTURE IS WORTH A THOUSAND WORDS!

Spongetech and The SEC

I was not going to release this information but I feel it is only fair for the people to know that Spongetech is in fact being investigated by the SEC,,,

as you can see from the phrases contained in the emails below - "regarding this investigation" - "aspects of this investigation"

The SEC is collecting evidence. I was asked to burn to disc emails I had from several people and send it to the SEC. 

If you have any evidence you wish to share with the SEC concerning Spongetech I advise you to email it to this woman. She is a lawyer for the SEC and the person who called me. 

As you can see from the below emails she will not release any information about the investigation so make sure you include your phone number in your emails and maybe she will call you to discuss your evidence. 

______________________________

From:	Cain, Margaret A. (CAINM@SEC.GOV)
Sent:	Mon 6/01/09 12:48 PM
To:	?????????????@hotmail.com)

Mr. ???????:

 

Thank you for sending these emails and for speaking with us today. Regarding the additional emails, you may mail them to me at the following address: Margaret Cain, SEC, 100 F Street, N.E., Mail Stop 5546, Washington, D.C. 20549. You may burn them to a CD or you may print them out, whichever is easier for you.

 

Please feel free to contact me again with information regarding this investigation.

 

Sincerely,

Margaret Cain

____________________________

From:	Cain, Margaret A. (CAINM@SEC.GOV)
Sent:	Thu 6/04/09 9:22 AM
To:	???????????@hotmail.com)

Mr. ????????:

 

Thank you for your message.

 

As we discussed earlier this week, unfortunately I cannot discuss the aspects of this investigation (including who we communicate with) as the investigation is non-public. I appreciate your interest, but I am not at liberty to confirm or deny any information at this time. I do, however, appreciate the information you have provided and continue to provide the staff. It is very helpful.

 

Sincerely,

Margaret Cain

___________________________

You people can try and bash these emails as fakes all you want.

They are real.

I have chosen not to post M. Cain's work phone number. Once again I would advise you to include your phone number with your evidence and if the powers that be deem it so, maybe they will contact you. 

Any emails from management or from Doug Furth I am sure they would like to see. 

(and yeah Doug, we sent them the email exchange between you and Moskowitz concerning IRG,,,, the one that included the phrases  "You need to be honest with the shareholders" - "You need to stop lying to people" - "it is not legal")

You do remember that email exchange??? right Dougy????

To M. Cain,,,, sorry,,,, but this is War. 

Metter and Moskowitz are dirty and they need to be exposed.

They are getting rich at the expense of honest American citizens. 

And in cases like this,,, it is never the management that gets hurt,, it is the average American who ends up broke.

Maybe the Government can help us for once, instead of only helping the wealthy.

Thank You - Moe Speeks

Something That Made Me Say Hummmmmm...

According to Spongetech's chart used in their Noble Financial Equity Conference presentation, Spongetech claims that in a 9 month period ending 2/28/2009 they had -

• $31,000,000 in Revenue


• a 20 times increase in Revenue over the same YTD period


• 20% EBITDA


• Soaring Revenue and Profitability

Lets see what the Shareholders got -

• May 28, 2008 PPS closed @0.044 ---(peaked on June 9, 2008 @o.o56) - A/S = 420,000,000


• February 28, 2009 PPS closed @0.0126 ---(bottomed on March 16, 2009 @ 0.006) - A/S = 1,250,000,000 --- March  10, 2009 A/S = 1,555,000,000


• Over 190% Increase in Authorized Shares


• Over 70% Decrease in PPS

I really should make a new chart but why bother, this one is a real SPNG chart ending on March 16, 2009 @0.006 and it contains real A/S counts,,, The Facts are the Facts People, you can't deny them. During the above mentioned 9 month time period, the A/S rose and the PPS sank.

So let me get this straight -

Spongetech gets ---

• Increased Revenue 20% YOY for 9 month time period to $31,000,000


• A 20% EBITDA

Shareholders get ---

• Over 190% Increase in Authorized Shares


• Over 70% Decrease in PPS

Yeah, that sounds about right for Spongetech Delivery Systems, Inc.

Now all we need to do is to wait for the Reverse Spilt and we are Game, Set, Match!!!!!!