Everything Blockchain Inc (EBZT)

[lesgetrich]

I'm not a CPA but it appears to me that when an invoice is produced, a sale is recorded and entered into accounts receivable as it normally would. When the recievable is paid in Crypto, they would have to record it as cash received, then it would be credited to Acquisition of Crypto Currencies (i.e. a subtraction) and debited to Current Cryptocurrency, Net (i.e. an addition). Keep in mind that something can be invoiced in one quarter and not paid until the following quarter.

Profit or Loss from the appreciation/depreciation of the crypto isn't realized or recorded in the financials until the crypto is sold. From the last 10-Q..

Other revenue also includes the sale of crypto assets. The Company records the total value of the sale in other revenue and the cost of the crypto assets in other operating expenses within the consolidated statements of operations.

However, the fair market value of their crypto assets is re-evaluated on the last day of each quarter and recorded as an intangible asset...

Note 14. Cryptocurrency Assets


The Company records cryptocurrency assets as an Intangible Asset with Infinite Life. We classify cryptocurrency that have a market value and substantial liquidity as Current Intangible Assets, which we value at fair market value in accordance with Statement No. 157. Cryptocurrencies that do not trade on a market or have limited liquidity as classified as Non-current Intangible Assets and are recorded on a cost basis. The following chart shows our cryptocurrency assets held for the quarter ended April 30, 2021 and for the year ended January 31, 2021: