That means product & development and manufacturing vendors are GETTING PAID!
Courtesy of "dpickel":
"I interpret this to mean that when the Wells Notice was received, mgmt decided to not pay for advertising in their budget.
Concentration on keeping the operations afloat was higher priority.
Since advertising is a "soft" cost compared to "hard or fixed" costs related to salaries and operations, maybe deals can be struck spread out over time to cover the costs? Or free product from inventory? Seems there is more flexibility in the ability to strike a reasonable deal. If the goal for advertising was $20M for FY2010, then maybe it was starting to get scaled back drastically even before the Wells Notice at the end of December.
If we truly had $21M in cash and A/R at the end of Feb09 and it grew through the summer, then we had enough cash reserves to budget the massive blitz that never materialized. The contracts were never fulfilled. I still believe on 7/23 that the schedules will shows some significant $$ (cash and assets) that were frozen by the SEC, and the treasury should show a ton of cancelled shares.
pilond: I interpret this as FIDUCIAIRY DUTY to the EXTREME by our FOUNDER. Keep up the EXTREME good job.
I especially enjoy seeing "Vanity Events" on the list of top-20 creditors to which Spongetech owes money:
Until just the other day, this was their CEO [from Google's cached copy of Investors Hub]
STEVEN MOSKOWITZ – CHIEF EXECUTIVE OFFICER
Mr. Moskowitz has played a major role in Vanity since acquiring it in 2006. He currently serves as Vanity’s CEO, directing the company’s approach and serving as the final say on all major decisions of the company. He also serves as COO of Spongetech Delivery Systems, Inc., a position he has held since 1999; as Director of RM Enterprises International, Ltd. since 2001; and as CEO of International Brand Management Group. Prior to that, he served as Vice President, Marketing and Business Development for H. W. Carter & Sons, a distributor of children's clothing, from 1987 to 2002. He graduated with a B.S. in Management from Touro College in 1986.
Another dumber than a doorknob conclusion. Like the conclusion this novelty sponge / complete fraud company stock was "going to the moon" (as I recall a conclusion supported by because it hadn't been proven fraudulent or failed yet so it wasn't).
Not a conclusion supported by the facts used. ALL THE STATEMENT SAYS AND MEANS at most ARE THE TOP 20 CREDITORS ARE SPORTS RELATED (no - not all are even sports teams, some are advertising agencies, promotional Cos, and some I simply don't recognize). The NEXT 50 could be any type of company for anything - and they have months to file a claim - until the "bar date", which hasn't even been set. And the tax juridicitions (IRS, NYS, etc)...they have even longer.
I would think most of those top 20, as things incurred some time back, (and in fact benefit already received from), should have more correctly been budgeted for and paid already - not AFTER the fact, if there was any intent to do so.....come on, at least SOME of them. No the intent was to not pay any of them and lose the service, as you suggest, because M&M could and keep thosse $ for themselves...their pay/bonus/enjoyment being a much higher priority budget item. Thats just what you should invest in. Thats the ideals of the company and execs you so vocally proclaim as great. OH, THEY DON'T HAVE TO LET ANY PROFITS FLOW THROUGH TO SHAREHOLDERS AND DIDN'T EITHER YOU KNOW, AND DIDN'T - same reason - BECAUSE THEY COULD.
One conclusion, inevitable, better supported than any of yours, and being proven true everyday - your a complete moron and idiot.