Changes in accounting treatment related to IP projects
The management of AS Baltic Technology Ventures (‘BTV’) informs that there are changes in the accounting treatment of two IP projects, previously reported in as intangible assets in the balance sheet in the unaudited interim financial statements for 6M 2020. The IP projects are (1) a haptic navigation bracelet for vision impaired persons, subsequently branded iWrist and (2) a programmable keyboard and related liabilities - these assets are now classified as an off balance sheet item.
The valuations of the assets were based on the results from SIA Smart Continent, registration No 40103070504, who are the certified valuators for handling IP assets valuation, and the management was advised by BTV accountants at the time to reflect that as an asset with offsetting liabilities. In hindsight, this was an error and it would have been more prudent to classify these assets as an off balance sheet item. Especially taking into account the pandemic of 2020 and its effect on developing such projects it proved challenging to attract investments and to initiate the execution of the business plan.
Following the most recent review and during audit procedures, BTV management took the decision to reclassify these assets as an off balance sheet item. These projects have been registered on crowdfunding platforms and an active investor search is underway. BTV management continues to consider these IP assets as valuable but the current market situation makes it difficult to realize any tangible value in the coming accounting period.
Member of the Management Board G.Zolotarev
Address: 1-5 Rupniecibas Street, Riga, LV-1010
Phone: +371 67783611
Member of the Management Board
Phone: +371 67783601
"Law Office Spridzans" Ltd.
Phone: +371 26712718