Citadel EFT

January 22, 2013 09:22 ET

Citadel EFT, Inc. (CDFT) Issues Clarification on Asset Purchase From Art to Go

OCEANSIDE, CA--(Marketwire - Jan 22, 2013) -  Citadel EFT, Inc's. (OTCQB: CDFT) CEO Gary DeRoos is pleased to announce that Doty Scott Enterprises will have the assets evaluated and audited on the 15th of February so that Malone & Bailey, the company's auditors, can put out the Q for the first quarter of 2013. Doty Scott Enterprises is doing an independent evaluation on the assets to meet SEC standards to ensure that Malone & Bailey can properly book the value. The original evaluation by the independent appraiser was more than enough for Citadel EFT to purchase the asset from Art to Go, but more is required to book it, to meet US GAAP requirements.

Gary DeRoos, CEO of Citadel EFT, further states, "We bought the assets from Art to Go Inc. based on the independent appraisal that Art to Go's officers had paid for, and this was required for insurance purposes. Our due diligence beyond the appraisal was the comparables we've seen selling on Ebay for similar collectibles. The prices were dramatically discounted by the appraiser, and after speaking with the appraiser we were comfortable with the value of the purchase. We also received collectibles ourselves as evidence of their existence, and since the acquisition we have taken over the monthly lease and utility obligations of where they are being stored. Unfortunately, we were unable to book the assets in the last K, because the appraisal was not the assessment that our auditors required in order to include it in the financial statements. Doty Scott Enterprises will complete the evaluation to the SEC standard, so that we know what it can be booked at, and Malone & Bailey will audit the assessment. We felt that it was necessary to clarify our previous release on the matter because of the amount of inquiries from shareholders. We paid for the asset in Convertible Preferred C shares, and while the independent appraisal certainly gives us a snapshot of the value, the confirmation of that value, or any change up or down in the value of the assets will be assessed by Doty Scott Enterprises and Malone & Bailey. We are hopeful that the values will be higher than originally appraised, but do not want to speculate on the value that the auditors will place on the transaction until their work is complete."

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. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made.

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