If you look at the Kobalt website:
http://www.kobaltbooks.com/main.htm
There are some red flags in their FAQs, e.g.:
"at" is not the same as "in" (in fact, it's the kind of wording PA uses). Usually, a book is available at a bookstore because someone's put in an order - that suggests to me that it's POD. In fact, the kicker is later on down the page here:
That's really not a selling point. All books should have a professionally-designed customised cover. The fact that they have to stress this is worrying.
Net receipts doesn't sound like a good deal to me - how do you know what's been taken off to calculate your royalty? I've always thought that royalties were calculated by jacket price but someone else should jump in and let me know if I'm wrong. I'm particularly disturbed by this:
They shouldn't be charging anyone for that.
I don't think I've ever come across a publisher who wants single spaced manuscripts - all of the ones I know insist on double spacing so they can make notes.
Reading all that, I don't know why any agent worth his/her salt would want to submit a book there - particularly as there's no mention of any advance being paid, which means the agent won't have made any commission on the sale.
MM