Replies to post #504 on Everything Blockchain Inc (EBZT)

[lesgetrich]

Minor correction to post #504...

The gain from the sale of cryptocurrencies is included in "Other Revenue" of $72,000 not "Other Income" on the Consolidated Statemet of Operations"

[Perfectson]

The poster still cannot show me where the increase in the CURRENT CRYPTOCURRENCY NET account is coming from.

He posts all these financial statements but not the Balance Sheet because it does not support anything he states.


1) He mentions accumulated deficit account. The post does not understand simple accounting. Accumulated deficit is the same as retained earnings. The movement in this account is literally the Net Income on the P&L.

To prove this point take

Accumulated deficit 
  
 April 2021 (52,641	)	 
   
 Jan 2021 (53,408	)	 
  

the difference the above amount is 767, which is the same as the Net Income on the P&L




So the whole statement about the accumulated deficit is 100% false.


2. The increase in the Current Crypto (NET) account is 100% on the P&L and it's still in the revenue account. There is a $1.8m movement in the crypto account some of this is related to the appreciation in HEX , I think my estimate was about 700-800k.

3. How they decide to "account" or "classify" for this is not the issue. If they are using FMV based on 157 (which isn't speicfic to intangibles and includes derivatives and other items), that means that the market value is listed of those currencies. The fact that they Net them in the current accounts, means all adjustments are already included in those accounts and technically they should show those costs basis and the fm valuation as well. Current accounts are typically posted through revenue due to the current/liquid nature of the account. I will give credit for identifying this is noted as a "current intangible" although I have never heard of anything classified like this, crypto is fairly new and theory of classifications is not necessary the point. The point is where are they putting the appreciation of owned current assets and it's clear it's in the revenue.