EFuel EFN Corp (EFLN)

[Mondragon]

Well, the problem with that from an accounting perspective is that according to GAAP, all assets are recorded at cost. This is the same with any other company. So, the attorney letter did validate the cost to purchase the assets, but it's not required to validate their value.

The way that companies account for the difference they pay for an asset verses the fair value is depreciation. Their depreciation expense nor their accumulated depreciation are listed as items on the balance sheet or the income statement. It would be on the cash flow statement too, but they aren't required to file that so they don't.

I'm not sure how much of their assets listed as "property", valued at $13 million, are just empty land but land does not deprecate... so there's that.

I would be interested to know the depreciation their assets have experienced, too.