Citadel EFT

February 12, 2013 14:01 ET

Citadel EFT, Inc. (CDFT) CEO Gary DeRoos Announces Doty Scott Enterprises Completes Evaluation Report of the Inventory Acquired From Art to Go, Inc.

OCEANSIDE, CA--(Marketwire - Feb 12, 2013) - Citadel EFT, Inc's. (OTCQB: CDFT) CEO Gary DeRoos announces that Doty Scott Enterprises has completed its evaluation of the assets that Citadel EFT acquired from "Art to Go, Inc.," on October 24, 2012. The entire evaluation will be available when the US SEC FORM 10-Q is released February14, 2013. In the meanwhile, the Company has provided, in this release, a summary of the valuation report from Mr. Scott, Doty Scott Enterprises.

Mr. Scott found that the Company's "Fair Value," on a minority basis, to be $1,266,000 prior to the acquisition of the "Art to Go, Inc." inventory. His report estimated the fair market value of the Inventory assets acquired from 'Art to Go,' as of October 24, 2012, were $4,344,419. These assumptions and limiting conditions were based upon the quality, authenticity, and volatility of market conditions of what was believed to be slow moving inventory. Nonetheless, Citadel EFT's "Fair Value" would increase by the assets acquired, to a total of $5.61M. This, however, does not take into consideration the conversion of the Preferred 'C' Shares, which will be discounted in Citadel EFT 's next quarter due out February 14, 2013. The final discounted value will show up in CDFT's FORM 10-Q when Malone & Bailey completes the audit, and the entire report from Doty Scott will be available on US SEC EDGAR system, as well. Please be advised that the $5.61M figure will be discounted in this upcoming FORM 10-Q as a function of the fair market value of the Convertible Preferred C Shares.

The Company, naturally, is very happy with the quality of this evaluation and its findings, as it now can pursue the American Stock Exchange (AMEX) listing and validate its market capitalization unabatedly after the audit. 

Gary DeRoos, CEO of Citadel EFT, states, "We are extremely pleased with the unbiased work that Doty Scott Enterprises performed on behalf of Citadel EFT and its stockholders. This was a learning curve for me, as I realize how important it is to attach value to the shares we issue. We will need to lower the issued capital to help enhance the value we have already built, which benefits all shareholders. The asset purchase and evaluation catapults the company to a new level as it looks to meet the AMEX requirements and the final discounted value will be available when the FORM 10-Q goes out on the February 14, 2013."

Gary DeRoos also said, "Our objective when we acquired these assets was to book as much of the value as we could while still meeting the US SEC standard. The $10,000,000 appraised value was not in dispute. However, because of the relative illiquidity of the assets at present, they could not be valued meeting the US SEC standard for their liquidation value, unless there was a previous track record of inventory sales. The original owners had never intended to sell any of the original inventories as these assets were likely to appreciate over time. We are extremely pleased however that the value of those assets could go up, provided we show liquid sales over time of the inventory, and/or, if we make the changes to our capital structure that we indicated in our last press release."

The Company believes that it should meet the $4,000,000 net stockholders' equity AMEX requirement. The Inventory assets acquired from "Art to Go" provides for a stronger balance sheet, which in turn helps generate higher net equity figures. The forthcoming FORM 10-Q will finally verify the value of these recently obtained inventory assets.

CDFT's management wishes to thank all of its shareholders who have been supportive of this purchase, and feels that the published FORM 10-Q will validate management's decision on this acquisition. This is a small victory, but a huge milestone for the Company, as management continues with future income generating acquisitions.

Shareholders are urged to contact the Company, so that management can answer any and all question regarding information to be found in the forthcoming FORM 10-Q filing.

About Citadel EFT, Inc:

Based in Oceanside, CA, Citadel EFT, Inc. provides credit card merchant account services to retailers, mail order companies and online service providers. The Company provides a free terminal to the business owner and charges no yearly fees, monthly minimums, statement, or address verification fees. Citadel markets its services directly and also through resellers,


CDFT cautions that the statements made in this press release constitute forward-looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements.

Contact Information

  • Contact:
    Gary DeRoos