Topic: [AMC]-The Official Active Mining Cooperative Discussion - page 3. (Read 223334 times)

It is not the Klondike boards, it is the Avalon clone boards for our 20,000 chips.

Ken, I need to correct some possible misinformation given.  I linked a post in the speculation thread, the first post, back to where you said previously that the assembly was paid for the Klondike boards.  Why is there now a second expense for this, and why is it being accounted for now?

We have just launched our Fast-Hash-One machines yesterday and already have sales of $62,799.00 so it is not going to take more than a week at this rate to have the NRE.  I have also talked to the Director of Sales and those 30 days were just our original estimate to them to get the funds. There is no fixed deadline, but of course we want to start producing chips asap.

So on August 2nd the deal with Easic goes out the window?






Good thing I sold out earlier.... I really do not see how AMC will be able to raise 500,000 in 2 weeks.

the deadline for the NRE is 30 days from july 2nd, correct?  That means if you don't have the 1 million raised by august 1st, you will rely only on other manufacturers chips from that point, rather than your own...
yes it's icing on the cake, but a lot of people are betting on that icing.. for you to have rights to a superior chip that nobody else does would mean you would have an upper hand on the market

No, indeed not.  We do need the ~1 million for the NRE; however, that is not required to keep the business running.  We have ~306 GH/s going live in about 3 weeks with our Klondike boards.  After that we have ~5,640 GH/s going live in about 6 weeks for a total of 6,346 GH/s.  Use a bitcoin profit calculator to see our cash flow after the next 6 weeks.  Getting the NRE will be icing on the cake.

The coming expense is for production of our Avalon clone boards for our 20,000 chips coming in.  Also, we will need a place to house these machines when we get them built.  That expense has already been covered and is not in the above estimate. 

$500,000 wouldn't even be made if 2 million more shares were bought at .0025, is AMC in a cash crunch?

As a business owner myself I can promise you that the bookkeeping costs almost nothing. Not only that, but for  the amounts involved it shouldn't even be something anyone has to mention. It's an integral part of any business, let alone one raising this amount of money.

Again, I'm not dissing Ken here as I expect it is because he is too busy (I've been there myself, tho I wasn't fundraising) but there is no counter argument other than "crap, I've not had time, I know it's a bad excuse and it will be sorted as a matter of urgency". As for a certified accountant - well you need one at the appropriate time but they too don't need to cost much. We're talking 3-4 figures (at least in the UK) over a year unless you have some crazy complex stuff going on; a lot should be automated but I could believe a mining business may have some complexities if tax breaks are being explored (in the UK I'd be gunning for R & D tax credits).

The only reason anyone in the Bitcoin mining world is getting away with things like this is because it's a crazy gold rush with a lot of crazy people. There is very little that is professional going on in pure business terms, which is not to say that a lot of money won't be made.

It's all very high risk, very unbusiness like, and yet it's going to make some people very rich indeed. Already has in one case.

Those asking for things like accounts and forecasts are completely correct, it's just that at the moment there are enough people around who will invest and be damned anyway. They don't deserve to be pilloried for asking sensible questions, but they themselves should back off and stop the constant trolling. That doesn't make their questions less valid.

ActiveMining has a long way to go and a lot to prove before becoming a market leader. I'm amazed at the fanboys of any of these mining companies. If you're investing more than a couple of Bitcoins, it's a business decision and fanboyism shouldn't come into it.

Some decisions are not helping at all. Even the name is very dubious in my mind and that alone nearly put me off getting involved as it feels purposefully designed to be misleading (whether it was or not isn't the point, it clearly is and was a bad decision if you want to be trusted).

Some people on here need to realise this is a new company operating in a new market. Ken is clearly an experienced and talented individual but he is not a miracle worker. You can't expect him to do full running accounts when he is trying to get this company to go stratospheric. And you can't expect him to pay vital development money on an accountant at this stage in the business. Sure if btc was at 200USD or higher this would all be a bit easier but every mining company will be dealing with similar funding constraints right now. The difference between the rest and AM is this company is going to be a, if not the, market leader. Invest at this price while you can, this company is going only one way.

Ken, you told me today on the phone that you need to raise about 1 million dollars and so far you have made half of that.  You need to make the rest within a couple weeks, which will be pushing it.

I realized after I talked with you that I had one more question.  You had posted earlier about getting pushed around by recent expenses, and that a lot of expenses were unfortunately paid for when BTC was at $68, and so you lost some money there.  We would like to know how expenses will affect your ability to cover the NRE with 1 million.  How much are these expenses.

I don't think he was asking for any advanced accounting.  You don't even have to use special manufacturing software..  just open up Excel and start typing in current numbers.  Update those numbers on a regular basis and post the worksheet.  Correct me I'm wrong, but I think this is all they're asking for.

Didnt he state that he is invested into the company also though?

Good to hear on all fronts Ken.

Active Mining will have accounting, we are setting up our manufacturing software as we speak, this is different than AMC which only had basic accounting due to the fact that all it did was mine bitcoins and pay out dividends.  AMC in its description did not have provisions for any kind of advanced accounting.  FYI I made straight A's in accounting.  I also was hired and became the lead programmer on an accounting project.

Active Mining need good accounting just like it needs a decent website; these are basic business essentials, and if Ken doesn't have the skillset to do it (and it's not a big deal if he doesn't), then he needs to hire folk to do it for AM. Just because Bitcoin Mining is a relatively new venture doesn't mean that business fundamentals should be thrown out of the window.

Actually, "understanding of bitcoin" is not really needed at all. BTC can be handled as an investment (like a foreign currency for example) for accounting. They converts BTC to fiat and back so basically this is buying and selling BTC.

Everything else can be in fiat because no matter what I or you like to see, real world still uses fiat.
I had to test out few different approaches and because *coin is practically never used to acquire equipment or materials, it is easier to use fiat as base currency.

Cheers.

It will improve over time, no need to force the issue. I'd rather the next 2-3 weeks were spent by Ken and his team bedding down and minimal attention spent on financial reports that Eskimo will vomit all over in any case.

 

OK, let's ask Ken to improve accounting. Find someone who understands accounting and Bitcoin.

LOL... Why do you project your impotent rage on me? I am actually calm and mildly amused how you guys manage to talk yourself in to believing all sorts of stupid ideas like "we do not need accounting" etc.

I am a big fan what ActiveMining team is doing and I support it via investing my coin but this will not change my views about proper reports.
Writing down your numbers every day takes about 10 min. for a small operations like those Co's.
3 man operation? Good, it takes you less than 5 min on average per day to do the accounting. If you let it slide, you spend few hours at the end of the month. Big fkn deal indeed and tiny price to pay for something as important as knowing where your Co is financially.

Lolstate and other idiots a like are willing to spend hours on pulling speculations out of their arse and wasting time on guessing games, counting imaginary profits and making up wild estimates and what not. This is a total waste everyone's time. Look at ASICMINER thread. 500+ pages of "I believe they have made blaa blaa blaa..."  LOL!