Topic: [GLBSE] BDK -- LIQUIDATING UNDER NEGATIVE EQUITY PROVISION -- - page 3. (Read 21174 times)

July 16 UPDATE
Dividend/share paid: 0BTC/share
Total dividend paid: 0BTC (-2.48BTC, but I will eat this as I've done in the past)
Running total dividends paid in July: .96BTC

July 2012 Net Income Expectations
Optimistic estimate: 150BTC
Reasonable estimate: 25BTC
Pessimistic estimate: -150BTC
(Guesstimated weekly dividend payouts -- July 2nd: 0.0BTC/share Actual: 0.000106688BTC/share, July 9th - 0BTC/shareActual: 0BTC/share, July 16th - .00045BTC/share, July 23rd - .000135BTC/share, July 30th - .000225/share)

Spreadsheets updated (still needs work), profit guesstimates made, responded to PMs/emails (if I missed you - sorry - please re-send).

May be going to San Francisco mid-September for a week or two on BDK-related business. Details in due time.

If you have a deposit with me, you may wish to check the deposit sheet on the public spreadsheet to be sure I have you in there. I'm pretty sure everyone's in there, but better safe than sorry.


Apologies for being slow and a bit scattered in the past week. We accepted an offer on our house in Erie, are making an offer on a house, and was thinking/working on the reason for going to SF. It's likely I will be fairly busy until some time in October, but BDK/IOU operations will continue normally -- profits should not be affected. One place I always keep up on is the Skype lending room to see what opportunities are out there. When we move, I'll give myself business hours so I can give my full focus toward lending operations for at least a couple hours per day while everything else's going on. IOU-BLoC development is continuing, though has been paused the past couple days, waiting on me to review some options.

Cheers!

July 2 UPDATE
Dividend/share paid: 0.000106688BTC/share
Total dividend paid: .96BTC
Running total dividends paid in July: .96BTC

July 2012 Net Income Expectations
Optimistic estimate: 150BTC
Reasonable estimate: 25BTC
Pessimistic estimate: -150BTC
(Guesstimated weekly dividend payouts -- July 2nd: 0.0BTC/share Actual: 0.000106688BTC/share, July 9th - 0BTC/share, July 16th - .00045BTC/share, July 23rd - .000135BTC/share, July 30th - .000225/share)

ETA: On "official" break from 7/5 to 7/6. Will be back on 7/7. ETA2: Back.

ETA3: Posted Guesstimates. Keep in mind I need to count a 100BTC or so loss from a default last month.

BDK-BLoC is expected to launch publicly some time in mid to late August (+-1month). BDK-BLoC will be issuing credit ratings for free within a few days so I can tweak my formulas more. There is a fine balance between being acknowledging that Bitcoin-centric businesses will be too new for a great score, and exposing myself to unjustified risk because too few businesses have a high-enough credit rating to take out a loan in an amount which could significantly impact a startup. Those who submit their financials during this free trial period will be welcomed to participate in BDK-BLoC closed beta. I expect closed beta to start some time late this month, possibly early next month.


BDK unit-holders who currently hold 1k or more BDK units: I am accepting applications for seats on the "Board." You will have no voting powers, but I'll listen to what you say very carefully and you'll be placed in a Skype room with me and the other Members. There is currently a limit of three Members. Unit-holders with a background in finance or web development are strongly preferred. You should have ideas to bring to the table to help BDK operate more effectively, both in increasing revenues and minimizing expenses, and communicating with investors. You'll need to use Skype and confirm your holdings with me by transferring shares to me on GLBSE, which I'll then transfer back (GLBSE currently does not allow Issuers to see who holds their security).

All BDK unit-holders are invited to sign up for the new mailing list which will regularly publish on the second and fourth Monday of each month if they wish to receive notification outside of this forum. It will include the critical stuff I post in this thread (monthly reports, what was going on when there was GLBSE drama, contract changes, BDK-BLoC being ready to be launched, etc), without some of the less-important stuff (weekly reports, ramblings about satellite funds, "biannual vs semiannual," etc). You can sign up @ http://eepurl.com/nfxz1 -- I may not send any of these out for a month or two.


Cheers!

Heh. Sorry.

TL;DR - https://bitcointalksearch.org/topic/m.999596 read new contract only, make sure it seems reasonable to you. https://bitcointalksearch.org/topic/m.1001183 read only for summary of operations in June.

Summary of important changes in contract - BDK is being renamed IOU. Dividends will be paid monthly (first day of month) instead of weekly. Most other changes were either removing largely-irrelevant wastes of words, making things more clear, or cleaning up for post-August when buyback price changes.

Do I need to read all of that? Damn it's long and I'm not interested to do anything more today (because it's the end of the weekend and burbon is not stopping me checking speelling) - is there a short version?

2012 SA1 Report (January-June)

Semi-Annual Net Profit (BTC, non-adj) - ฿1,190.88
     Semi-Annual Net Income (BTC, non-adj) - ฿1799.49
     Semi-Annual Net Outgo (BTC, non-adj) - ฿608.59
Semi-Annual Net Profit (USD, with equity adjusted for exchange rate change over last two quarters) - $17,786.63


Semi-Annual %RoE (in BTC, non-adj) - 26.96%
Semi-Annual %RoE (in USD, adjusted for exchange rate change over last two quarters) - 67.89%

     Q1 %RoE (BTC, non-adj) - 3.19%
     Q1 Net Profits (BTC, non-adj) - ฿77.34

     Q2 %RoE (BTC, non-adj) - 23.77%
     Q2 Net Profits (BTC, non-adj) - ฿1,113.54




(fwiw, these numbers are not perfect representations of the truth. Equity amount changes over the quarter, and I use the "last" equity amount to adjust USD profits when determining USD gains. The adjusted calculations assume I had exactly the same amount of equity in January as April. It also assumes I bought or accumulated BTC at the last quarter's end (at the previous quarter's "EoQ BTC price"), which isn't true as I was rapidly acquiring BTC for BDK when it was entirely "my own" - from Q1 beginning to early Q2. So... adjusted profit numbers [this is a guess out of my ass] are probably artificially inflated by something like 10-30%.)

Additional information can be found on the spreadsheet @ https://docs.google.com/spreadsheet/pub?key=0Ao892S4MOoDZdGZSbjJVd1ZTbFVLZE5aRE95bE91NVE&output=html

ETA: Made a change to the September 4th contract to make my pay explicitly clear.

ETA2: Just to be clear -- The adjusted net profit # in USD is NOT realized. It's on-paper only, and not really a meaningful figure for anyone but myself in keeping track of how much my original investment is worth.

ETA3: No, I haven't started work on transferring everything to Excel, yet, and still have some work to do on BDK-BLoC mockup, formulas, and other stuff necessary for the dev to complete work. I should have Excel book completed within 20 days. I'd really like to make it nice and collect some information automatically instead of requiring I change a certain values around every day or so.

{ADJ info is now correct, I believe. Formula is (((%ChangeInBTCExchangeRate+1)*EoQEquity)+(Net Profits * EoQBTCexchangerate)) -- tell me if that's incorrect, please.}


2012 Q2 Report (April-June)

Quarterly Net Profit (BTC, non-adj) - ฿1,113.54
     Quarterly Net Income (BTC, non-adj) - ฿1706.55
     Quarterly Net Outgo (BTC, non-adj) - ฿593.02
Quarterly Net Profit (USD, with equity adjusted for exchange rate change over quarter) - $14,776.16


Quarterly %RoE (in BTC, non-adj) - 23.77%
Quarterly %RoE (in USD, adjusted for exchange rate change over quarter) - 60.23%

     April %RoE (non-adj) - 4.6%
     April Net Profits (non-adj) - ฿155.54

     May %RoE (non-adj) - 17.7%
     May Net Profits (non-adj) - ฿878.65

     June %RoE (non-adj) - 1.48%
     May Net Profits (non-adj) - ฿79.35

June Summary

Monthly Net Profit - ฿79.35
Income - ฿405.30

• Loan interest - ฿56.98
• Gratuities - ฿0
• Securities dividends - ฿257.82
• Securities sold at a gain - ฿86.41
• Misc - ฿4.1

Outgo - ฿325.96

• CD/BDK.BND dividends - ฿310.37
• Misc - ฿0
• Securities sold at a loss - ฿15.59

Other Info
Assets - ฿10,572.06 ($70,832.80)

• Loans (excl. default)   - ฿1,606.63
• Securities - ฿8,748.19
• Cash-on-Hand - ฿105

Liabilities - ฿5,218.36 ($34,962.99)

• BTC100 Pledge   - ฿10.85
• IBB Pledge - ฿1.24
• BTC Deposits - ฿3,783.2
• USD Deposits - ฿311.94
• Shareholder Div. - ฿1.84
• BDK.BND - ฿1,087.30

• Operator Pay Reserved in BDK - ฿22

Equity - ฿5,353.7 ($35,5869.81)
Operator Monthly Performance Pay (40% of net profits after shareholder dividends) - ฿25.544
Operator Monthly Performance Pay After Modifiers (Performance pay - IBB&BTC100 donations - Personal Expenditure) - ฿22
BDK Growth for Month of March (profit - shareholder dividends - operator performance pay) - ฿40.31

I will also state that BDK will be reverting direction. While there was an effort I announced two or three months ago to shift BDK's direction from primarily being a lender to dabbling heavy in securities -- this will no longer be the case.

All coins in securities will be slowly extracted and placed in BDK coffers to buy back current debt and "refinance" at lower rates, and to go toward making loans, both to individuals, and with BDK-BLoC - businesses. Businesses will be the primary focus within a few months, and efforts will be made, once BDK-BLoC launches, to keep an adequate reserve to fund all reasonable loan requests. BDK will be re-opening the doors for bonds and CDs once BDK-BLoC launches publicly.


Cheers!
-Ben

Current ("old") Contract:
Ben Malec (referred to within this contract as "me," "myself," "I," and "operator") will issue 100,000 shares of "BDK Hybrid Instrument." Each share not controlled by the operator represents .0009% of BDK's monthly profit.  Dividends will be paid every Monday, starting May 7th, 2012. Dividends will not be paid on the first of the month unless that happens to be on a Monday. 100,000 shares will be issued. Up to 5,000 shares are to be sold on the second day of each month for four months, starting on the month of May, 2012. After that time, shares may be issued at will of the operator.

Additional provisions
"Operator Equity" - The operator holds all equity of BDK. Shares are not tied to equity, and represent only .0009% of BDK monthly profits.

"Shareholder Votes, Non-binding Motions" - While motions may be introduced, they are non-binding. They exist only so the operator may gauge opinion of those invested in BDK's success.

"Change of Contract" - The operator is fully permitted to change the contract at will, without consent of shareholders. However, the modified contract is not permitted to go into effect until sixty days after the changes are made public. When the contract is changed, the operator will honor the ability for shareholders to sell shares back to him at a price of .125 Bitcoins per share between the time a change is made and the time 60 days have elapsed since the change was made public.

"Buyback" - At any time, the operator is permitted to buy back shares issued. The operator will pay .64 Bitcoins per share if the operator buys back BDK shares prior to August 3rd, 2012. If August 3rd, 2012 or later, the operator will pay ((.32 Bitcoins + GLBSE 5 day weighted average of trade transaction amount per share of BDK shares)/2)

"Share Value Protection" - If shares trade for less than ฿.01 on GLBSE for at least 168 hours continuously, the operator MUST issue a bid order of ฿.05 in an amount which equals 50% of shares issued not controlled by the operator. The "168-hour timer" does not again reset for 26 weeks after the "Share Value Protection" provision was last called to action.

"Negative Equity and Operator Liability" - BDK is permitted to operate while having negative equity so long as BDK has not had negative equity for 90 consecutive days. On the 90th day of having negative equity, the operator will be held personally liable to pay shareholders $.10/share (or ฿.02/share, whichever value is lesser). In cases where BDK is unable to achieve due to reasons unrelated to BDK experiencing prolonged negative equity (operator experiencing imprisonment, debilitating illness, GLBSE being hacked and made unusable, EMP strikes, police raid, or death, for example), the operator is not liable.

"IPO Value Preservation, Operator Trading" - The operator is not permitted to ever sell shares for less than he previously sold them for. However, he may sell shares for an amount equal to or greater than the amount he previously sold them for at will.


New (will be effective on September 4th, 2012) Contract:
"Ben Malec (referred to within this contract as "Operator") will issue 100,000 shares of "IOU Hybrid Instrument" (each representation of which referred to within this contract as "unit"). Each unit not controlled by the operator represents .0009% of IOU's monthly profit.  Dividends will be paid on the first of each month in an amount equaling .0009% of IOU's monthly profit to each outstanding share the Operator does not control. 100,000 shares will be issued. Shares can be bought and sold at will of the Operator, though he must abide by any and all rules set forth in additional provisions of this contract. IOU is not a bank, but a personal lending operation on the part of the Operator.

Additional provisions
"Operator Equity" - The Operator holds all equity of IOU. IOU units are not tied to equity in any manner, and represent only .0009% of IOU monthly profits. IOU unit-holders are not allowed to issue binding motions, and no motion issued by the Operator to unit-holders is to be considered binding unless the Operator specifically declares a particular vote binding.

"Change of Contract" - The operator is fully permitted to change the contract at will, without consent of shareholders. However, the modified contract is not permitted to go into effect until sixty days after the changes are made public. When the contract is changed, the operator will honor the ability for shareholders to sell shares back to him at a price of .125 Bitcoins per share between the time a change is made and the time 60 days have elapsed since the change was made public.

"IOU Growth, Operator Performance Pay" - All profits accumulated representative of non-Operator units (.0009% monthly net IOU profits per unit) are paid out as dividends. Profits due to Operator units (all units not outstanding) are the Operator's. The Operator will pay 60% of his units' net profits back to IOU, and keep 40% of his units' net profits as a "performance pay." The Operator may choose to have BDK "withhold" his earnings in the form of an interest-free loan, though the Operator is permitted to recall that loan at any time he deems fit. Changes made to this provision require the standard 60 days and other restrictions outlined in the "Change of Contract" provision to take be put into effect.

"Buyback" - At any time, the operator is permitted to initiate a forced buyback of IOU units on the listing platform(s) it is currently utilizing. The Operator will pay ((.32 Bitcoins + GLBSE 5 day weighted average of trade transaction amount per unit of IOU)/2). The Operator may buy back  IOU units on the open market of the utilized listing platform(s) on behalf of IOU at any time and at any price he wills.

"Negative Equity and Operator Liability" - IOU is permitted to operate while having negative equity so long as IOU has not had negative equity for 90 consecutive days. On the 90th day of having negative equity, the operator will be held personally liable to pay unit-holders $.10/share (or ฿.02/share, whichever value is lesser). In cases where IOU is unable to operate as specified in the contract or has negative equity for over 90 days due to reasons unrelated to IOU experiencing prolonged negative equity (operator experiencing imprisonment, debilitating illness, IOU's current listing platform(s) being hacked and made unusable, EMP strikes, police raid, or death, for example), the operator is not liable.

"IPO Value Preservation, Operator Trading" - The operator is not permitted to ever sell units of IOU for less than he previously sold them for. However, he may sell units for an amount equal to or greater than the amount he previously sold them for at will.

Then I will be clear. (looked at thread -- I did indeed modify the contract to change time between dividend payments, so 60 days will be required before the changes can go into effect. I may as well prune the contract of largely-irrelevant provisions, and take the opportunity to better-word the contract so it can all be done on one day. Before and After contracts will be posted in reply below.)

Changes which will be made to the BDK contract, effective September 4th, 2012:

• BDK will officially be renamed "IOU" -- On September 4th, 2012, "BDK" will become "IOU" on GLBSE. "BDK.BND" will become "IOU.BND" if there are any remaining BDK.BND units outstanding.
• The first contract paragraph will be modified to read as follows:

"Ben Malec (referred to within this contract as "Operator") will issue 100,000 shares of "IOU Hybrid Instrument" (each representation of which referred to within this contract as "unit"). Each unit not controlled by the operator represents .0009% of IOU's monthly profit.  Dividends will be paid on the first of each month in an amount equaling .0009% of IOU's monthly profit to each outstanding share the Operator does not control. 100,000 shares will be issued. Shares can be bought and sold at will of the Operator, though he must abide by any and all rules set forth in additional provisions of this contract. IOU is not a bank, but a personal lending operation on the part of the Operator.

• The "Operator Equity" provision will be modified to read as follows:

"Operator Equity" - The Operator holds all equity of IOU. IOU units are not tied to equity in any manner, and represent only .0009% of IOU monthly profits. IOU unit-holders are not allowed to issue binding motions, and no motion issued by the Operator to unit-holders is to be considered binding unless the Operator specifically declares a particular vote binding.

• The "Buyback" provision will be modified to read as follows:

"Buyback" - At any time, the operator is permitted to initiate a forced buyback of IOU units on the listing platform(s) it is currently utilizing. The Operator will pay ((.32 Bitcoins + GLBSE 5 day weighted average of trade transaction amount per unit of IOU)/2). The Operator may buy back  IOU units on the open market of the utilized listing platform(s) on behalf of IOU at any time and at any price he wills.

• The "Share Value Protection" provision will be removed, and its contractual bindings no longer valid unless reintroduced into the contract.
• The "Shareholder Votes, Non-binding Motions" provision will be removed, and its contractual bindings no longer valid unless reintroduced into the contract.
• Any reference to BDK not already mentioned which was made in the contract will be changed to instead reference IOU.

I had a suspicion as I wrote that about whether is was the right term but was too tired to look it up. Frequency must differ by countries, because none of my share holdings pay quarterly, other than some hybrid debt securities.


As an investor focussed on long-term profits, I prefer my money managers to have a similar focus. Investors of other people's money with short-term goals will tend to focus on opportunities that deliver short term profits at the neglect of generating longer term value. It may also mean they will miss out on great investment opportunities that will not deliver profits, or will even show unrealised losses, in the short term, but that more than make up for it in the long term.

So I guess you need to decide on your timeframe and communicate that to your investors so that they either have the same focus or sell to those that do.

It physically hurts to have to report 0BTC dividend weeks - doing it weekly definitely creates a lot of pressure, and creates anxious thinking which could otherwise be put into something productive. It causes hasty decisions. There's some burn-out being caused by frequent dividends, too. I agree that patience in investing is preferable, but I was doubting investors would feel the same way and not demand extremely frequent dividend payments. I'll consider going to monthly dividend payments as was originally intended and review what I've written to see if I allowed myself to switch instantly or if I boxed myself into requiring 60 days before changing that. (I don't believe it was added to the contract that payments will be made weekly -- that was a last-minute pre-IPO change, which I imagine I assumed and wrote as temporary, but need to check). Since it's pretty close to August, and I don't intend to sell "too much" of BDK's profits, I guess I shouldn't care too much if share price were to drop to lessening the frequency of dividend payments, assuming investors are insistent on weekly dividends. There's really no need for BDK to fundraise by selling profit splits right now. When share price nears or surpasses the point where a buyback would be favorable to me, I can start comfortably selling more monthly profits. Fwiw, I don't intend to switch to quarterly or 2x-annual dividend payments, though I may switch to quarterly payments a year or two down the road if I end up sticking with this for years.

With BDK-BLoC (soon-to-be IOU-BLoC), BDK's becoming much more of a "fixture" than I originally intended. I was planning on leaving within a year and a half or so of starting, which would be around this time next year. I'll try to keep everyone up-to-date on my intentions. If anyone wants, they can get a hold of me on Skype as bdk_kluge (name Ben Malec) and ask me directly if they have any questions/suggestions/comments. I've been on Skype every day consistently for months.

I've been hesitant to disclose this publicly, but I'm only 21 years old. I do not have experience in this sector outside of the seven months with BDK, now. My work experience is comprised almost solely of filing paperwork, creating forms for employees, and doing payroll for a family LLC. I have no formal post-secondary education outside of a couple textbooks, and largely "skipped" high school. It's hard for me to justify my existence in my current capacity, and is why I'm pretty averse to taking on liabilities. If I get more comfortable with this, and have years of experience under me, that will change - but not before I fully trust myself to handle others' money in an amount greater than the amount I've put in. I am pleased to have people question everything I do and make suggestions. The Bitcoiniverse is a great place to experiment and learn, but it's not as though I have a board of 5-10 experienced people to bounce most of my ideas off of. I tell other lenders sometimes about my intentions, looking for input, but occasionally get no feedback. I can't guarantee I won't get defensive and angry if someone attacks my ideas publicly, but I'll appreciate it when I'm in a reflective mood. 

I think you meant semi-annually (twice a year).  And really most dividends are quarterly (4x a year).



+1 to this.  Keep the train on the tracks and moving forward, Kluge, and you'll get us all there.

I appreciate your frankness in reporting, Kluge. I think the up and down are to be expected in a start up operation of this type and the weekly dividend cycle in the bitcoin world exaggerates this. Meatspace companies usually pay dividends biannually, so these up and downs can be smoothed out and not affected so much by the timing of transactions (which is not to say that window dressing does not occur).

Value investing is the flow of capital from impatient to patient hands, and I believe long term investors in BDK will benefit from patience in seeing the value realised.

It's very likely we will be starting July with a first week's dividend (July 2nd) of 0BTC, with another zero-week likely on July 11th. The 18th & 25th should show modest to respectable dividends. Depending on just how large the losses of the first two weeks are, I may eat whatever BDK-holders would otherwise be "liable" for ("liable" meaning losses would rollover and negate future dividends).

In the larger scope, it's likely earnings will be very low (potentially negative) for July, and possibly August, though things may pick up by then. Not to apologize for poor performance, but just to point out exactly why BDK's earnings are so bad lately - take a look at the Securities sheet. You'll notice both Hermes and GPUMoney. Combined, they make up almost the entirety of BDK equity. GPUMoney investment will likely be mostly refunded within the next couple weeks -- the objective of the project was to put out a miner which interfaced with a website, where individuals (gamers, likely) would run the miner, and accumulate points toward purchasing Steam items and games. Development for the project seems to have stalled, and has otherwise been fairly slow. With ASICs fast approaching, I do not believe the project has a profitable outlook long-term, and it seems like it will be scrapped, pending agreement by all investors. Hermes, as many are already familiar with, was a project intended to become the premier BTC listing platform, with emphasis on Kickstarter-like features, and giving Issuers a strong voice. This project has been put on hold for at least a couple months due to a dispute with GLBSE. There have been many changes and a restructuring of Icehill, the soon-to-be publicly-registered Icelandic company, which will implement developed projects (Kronos, REBATE, PawnCoin, and many others). While Icehill projects are still being developed, Hermes is currently not, and as such, the money invested will be refunded in full, but this relies on Icehill acquiring funds to do so. BDK has been gifted 5% of Icehill equity, which will be realized in the future, along with a valuation of what that's worth. However, while funds have been stuck in "Hermes," they have accumulated no revenues -- it was strictly an equity deal.

So, what that last paragraph effectively means is that BDK's earnings this month are effectively the reflection of BDK operating as if it had no equity for the whole of June. As investment money is refunded, it can be used to generate revenues for BDK, which is when revenues will pick back up. I do not know exactly when that will be... I was hoping about two or three weeks ago, but it may be a couple weeks in the future, still. I've been experimenting a lot, trying to figure out what works and what doesn't. Moving BDK from loans to securities was a high-risk move which did not pan out exactly as I would have liked. This is certainly not limited to Hermes (in fact, the 5% equity gift from Icehill, I believe will be worth >$40k within a year, and will be the largest, most ambitious, and long-term-minded service provider in the whole of the community, with a great many services to fall back on if they have both studs and duds). Rest assured, BDK will never again be majorly involved in equity, but hold very little other than debt. Though, that isn't to say BDK will not take on additional tasks such as purchasing and repackaging/reselling securities from project managers.

Future spreadsheets will need to start accounting for depreciation of mining bonds, which will cut hard into profits, because it should have been accounted for in the past, but I neglected to do, assuming the market would not react nearly as harshly as it has to recent events. Combine these loss-creators with amortization of BDK-BLoC capital expense starting next month, I would guesstimate it's almost certain July will be a negative-profits month if I am unable to quickly secure repayment of investment money into no-longer-developed ventures. Once investment money is repaid, however, %RoE should be around 4-8% monthly (if BDK had funds to repay almost all deposits and bonds, June %RoE would have been around 6% -- May's 17.7%RoE was definitely a fluke).

I do have some positive news, though... BDK-BLoC is currently in development, and the dev's doing great work. He's very communicative, accepts pay by milestones completed, and walks me through what I don't fully understand. BDK will likely be renamed to IOU. This is a wholly a legal precaution, to prevent BDK from being confused with a bank. Simply saying "BDK" stands for nothing is inadequate when it's been put out in the past that BDK represents "Banco de Kluge." It does not. "BDK" is not a bank. Possibly, the project will be renamed "IOU," after the tabled "purchasing/reselling" venture, which may also pop up again in some form by the end of this year.


Any comments/questions - I'm all-ears.

20.01BTC paid for multiple VPS services, billed quarterly, so BTC6.67/mo will be counted as "Misc" starting next month. Expenses are one-off, so not really an operational expense, but a capital expense. My intent is to call hosting an operational expense, while the 150-200BTC for dev-work will be called a capital expense, amortizing over twelve months.

Thus, BDK-BLoC will effectively cost something like 21.25BTC/month for twelve months, only VPS hosting costs thereafter.

Dividends ended up below target. To pay dividends for BDK.BND & BDK, I had to sell some YABMC, resulting in realizing the loss of ~9BTC. Bad month as far as profits go. Will be pleased for it to end.

June 25 UPDATE
Dividend/share paid: 0.00023112BTC/share
Total dividend paid: 2.08BTC
Running total dividends paid in June: 15.57BTC

June 2012 Net Income Expectations
Optimistic estimate: 85BTC
Reasonable estimate: 50BTC
Pessimistic estimate: 25BTC
(Guesstimated weekly dividend payouts -- June 4th: 0.0BTC/share Actual: 0.0BTC/share, June 11th - .00063BTC/share Actual: 0.00121358BTC/share, June 18th - .00014BTC/share Actual: 0.000406688BTC/share, June 25th - .00036BTC/shareActual: 0.00023112BTC/share)

1. I still plan on moving, hopefully within a month, and it won't be somewhere terribly far away. The moving process should take less time than the Realtor process. I'll probably not take a regular day job - at least not for a year or so. Likely, wherever we move will require a lot of work to bring up to a habitable standard, and I'll probably take a day's break three times a week or so to do that. If I neglect BDK too much where operations are affected and it's noticeable, I'll spend more time on it.

2. BDK-BLoC is a part of BDK. Every loan and CD transaction relating to BDK-BLoC is counted as a part of BDK. What BDK-BLoC allows is the automation of many of my current tasks (among some other stuff), which are definitely "BDK tasks."

3. It's been tabled for the time being. AFAIK, that GLBSE account is still restricted. I'll probably get into doing something with a similar goal to IOU, but alone, and with less ambitious goals. IOUcoin.com may end up being repurposed as the site for BDK-BLoC. Dunno if that's too tacky, though, heh. Eventually, the name "BDK" needs to be scrubbed, and the lending operation renamed, as I originally tied the acronym to "banco," when BDK is not a bank in any manner of speaking. Being in the US, that poor word-choice could result in extreme legal consequences (depending partially on what the gov't determines a "Bitcoin" is) if I don't make absolutely sure nobody associates BDK with "bank."

4. I gave a monthly report for May @ https://bitcointalksearch.org/topic/m.933687 -- Same will be done for June. If there's anything in particular you want to see, I can include it. I'll look through some examples and try to better-standardize my books. I do need some education on GAAP, so I'll see what I can find. Then, when I completely overhaul my spreadsheets around the end of this week, there'll hopefully be something detailed, easy-to-follow, and perhaps even enjoyable to read (Graffs!).


Cheers!

ETA: Pleased to announce it's very likely BDK-BLoC will be released open-source. ETA2: I should also note all the important information which gets lost in this forum thread will be posted on the website. Can have it on an old, general-purpose host when I finish with the spreadsheet overhaul.