GeckoSystems Intl. Corp. (GOSY)

[BizGuru]

Why is GOSY undervalued? Part 3:

European Unon (EU) accounting standards, if applied to GOSY's financials, would portray the true economic condition and performance of the company much more realistically.

This is due to the requirement to expense only 50% (not 100%) of all R&D in the year incurred. Hence since not a 100% writeoff, 50% is carried as assets on the balance sheet. This fairly reflects the net worth of a Development Stage company from the EU perspective. The EU requires only a 50% writeoff of all R&D expenditures. This simple accounting change would dramatically flip GOSY's net worth and stockholder equity deep into positive territory.

This required compliance with GAAP forces GOSY as a Development Stage company to place no assets on their Balance Sheet on the proprietary Intellectual Properties (IP) regardless of the level of probability of future revenues from their R&D activities.

Just My Opinion! We all have one!

BizGuru