XpresSpa Group Inc (XSPA)

[gershfinance]

I think you are all a little off....my understanding is that the intangible asset value booked would be anything over the cost of the acquisition. Since we didnt actually "pay" for the patents, assigning them a value is somewhat arbitrary, so my guess is it will be an intangible asset on the balance sheet, but that value is probably close to zero. And whatever the asset is valued at will show up on the income statement as revenue.

Much like the software Lang is allegedly developing, that "asset" has no verifiable value, and has not been carried on the balance sheet (while the expenses associated with that development have hit the income statement as expenses.

In short, with no real way to assign a value to these patents, my assumption is that there is little if any revenue and little if any adjustment to the balance sheet.

note: that DOESNT mean the patents have no value....just that they so far as we know, the "cost" of the patents is close to zero, and accounting books assets as the lower of cost or market value.