Everything Blockchain Inc (EBZT)

[lesgetrich]

Current accounts mean they are fairly easily converted to cash and is not considered an intangible asset.

It’s right there on the balance sheet clear as day . Don’t be mislead by the quote and original post that is misconstruing simple accounting

You are making assumptions that are clearly contradicted in the 10-Q and contrary to accepted accounting principles. Companies don't count appreciation of assets as revenue. The 10-Q clearly states on page 14...

1FQ21 10-Q

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:

The accounting treatment of indifinite life intangible assets was described in my post #475.

Reversal of Impairment Loss

When an intangible asset’s impairment reverses and value is regained, the increase in value is recorded as a gain on the income statement and reduction to accumulated impairment loss on the balance sheet, up to the amount of impairment loss recorded in prior periods. Increases in value in excess of prior impairment loss is debited directly to the asset and credited to a revaluation reserve account in the equity section of the balance sheet.

The 10-Q Balance Sheet shows Current cryptocurrencies, net of $2,076,000 which is offset by a decrease in Accumulated Deficit in the Equity Section, probably using a sub account which isn't displayed. Had there been a loss, it would have increased the Accumulated deficit.

The Consolidated Statement of Operations clearly shows "Revenue From Services" of $1,081,000 with a net profit of $767,000 including "Other Income" of $325,000 which incorporates the actual sale of Crypto assets and $233,359 in assets received from Render Payment for settlement of debt.