Topic: Re: [LTC-GLOBAL] - ART - building a open art studio [week 32] - page 5. (Read 15463 times)

Kiln has arrived. My goal now is to get it set up as fast as possible. First, I have to get the room ready. Waiting for the landlord to get her ass in gear etc. and then it's electricians turn.
Do not worry, I am not sitting around and picking my nose I am constantly looking for potential clients, etc.

Just a quick update:

We are in week 07 now and all the ordered equipment is still in transit.
We are on schedule.

Why don't you two delete your unrelated posts. Move those to another thread, if you have to.

Thank you.

As I recall I didn't ask for your opinion, but I did thank you for it. Yes, it's true that EskimoBob participated in an organized campaign to defame me. But that is water under the bridge now. EskimoBob is receiving regular scheduled distributions on his investment along with all my other former shareholders. Further, I own some shares of ART. In short, EskimoBob works for me now, Augustocroppo, and in my books that's the way it should be. I have no qualms about what EskimoBob did so long as he pays for it, one way or another. And a 10% return in a little over a month is fine with me. I've evaluated his business plan and I rather like the little setup he has going. It works like this. Either he makes me rich, or he turns out to be a scammer and I get the last laugh. I could care less either way.

I'm sorry you feel I am an idiot Augustocroppo, but if I failed to take advantage of the opportunity EskimoBob presented, I would be a piss-poor investor. As a result I would cordially propose that in the end I turned out to be the better man, and leave it at that.

Sorry to hear about KmyMoney. But it's certainly nice to know you are on top of things. It seems most investors agree, last I checked ART was up over 10%.

Calling it "serious problem" is rather hysterical but you are correct, this is a bad account name for small expendable stuff, used around the work shop (washing liquids, scraping/cleaning tools etc). I'll rename it to something more appropriate.


I had LTC set as base currency for the report. I am actually using EUR as base currency. Some accounts are in LTC or BTC.

Exchange rate for the report is is calculated form the closing price of BTC:EUR and LTC:BTC as of 01.31.  I'll add those too.

Here is the same stuff, without converting it to LTC:


As you can see, it can not calculate a total, if multiple currencies are used.


Bank balances will start showing more activity when we are staring to receive money for cervices.


Gratuity (not dividends) was paid our from my own pocket as a donation I made to ART. It was in the last statement. I will not call those payments dividends because divs are paid out from profit.

I am also in the middle of ordering more equipment. Orders are hopefully confirmed by Tuesday and then I'll publish this stuff here too.

The end of the February is going to be lots of fun. By the week 8,  I need have the shop all set up and ready to go because the equipment will arrive and it's time to start generating income.

I am sure, soon I have to give up on KmyMoney. For now, its really simple stuff so no problems.

There's a couple of serious problems with your statement. For one, you list "office supplies" as 458 and petty cash at zero. Anyone who has been in an office for any length of time can tell you this sounds off. Can you provide a breakdown of the office equipment please? I'm basically looking for the coffee cups.

Second, you appear to be denominating BTC holdings in litecoins, while also denominating your kiln in litecoins as well, yet you have not stabilized the value of these assets by providing an exchange rate. This makes it impossible to value your security. Please peg an exchange rate for this sheet for bitcoins, litecoins, and the currencies you used to buy the kiln.

Thirdly I am worried about your bank balances being stated at zero. How on earth did you pay for a kiln, and why do you even bother listing a bank account, if you have no money in it? This doesn't make any sense to me. I would have thought, that if you've paid for insurance, and bought office supplies, you would have had to had petty cash or cash in a bank account. I don't think you walked into the equivalent of home depot and swiped your litecoin wallet into the credit card reader ;-) I'm just saying these statements look, well, ok I'll say it, they don't look real.

You said, and I quote the OP, "Our conservative estimates show that in average, 5% ROI per month is achievable. This is at conservative 55% utilisation on average. We like to take the utilisation up to 75% in 3 months or less. At this rate, equipment is paid for before 70% of the manufacturers warranty is up."

Can you please tell us if you're on track for this, and the consequences of your apparent failure? It seems to me, if you are unable to live up to your promises and the manufacturer's warranty expires before the equipment is paid for, this will be a very expensive mistake for the people who trusted you with their money. Hmm. Actually I have a suggestion for you. I've hired an accountant to go over my company's books to make sure we don't publish any misleading or inaccurate information. Would you be open to having your books audited by someone impartial (smickles immediately springs to mind)? You said you would "follow typical bookkeeping rules" and this is a somewhat serious divergence from your contractual obligation.

Fifth. You paid dividends on litecoinglobal.com. Twice. And these figures do not appear in your statement. It almost appears as if the dividends were paid out of the capital you raised. Please confirm this. Will next dividends be the same per-share or half as much? Thanks.

Time to publish January reports

Updated January rapports are here: http://tinyurl.com/art-stats  

(Next time I'll use PDF)
 

Good news.
50K shares are all sold, before the open bidding even got started. 

Thank you to all of you who participated.

If you apply that line of reasoning then there's also no point in restricting the new offering to existing shareholders - if more people can bid then you'll get more (and higher) offers.  Either make it a public offering or make it rights-restricted (where its a per-share offer).  Allowing anyone who pays 1 LTC for a share to bid offers neither the best price (public offering) or rewards early investors.

You have all the data, please dazzle us with all your brilliance

It should be up even if he did nothing except convert initial funds to fiat; LTC was around 7.5 cents/coin when the IPO was going on, now it's only around 6.4 cents/coin.

So how much is the book value of this thing under par by now?

Thank you for your input but I must say, I have hard time agreeing with you on this Maybe it's too early in the morning ...or is it still too late at night?

I really do not see, how limiting bidding to a number of shares you currently hold (or multiplies of) will help ART in placing the secondary offer - bring additional coin to the project. Sure, we can use that to decide who gets what if this offer gets oversubscribed.
If this limitation causes sudden price increase, it only helps short term speculators and ART gains almost nothing from that.
When shares change hands, investors "right" to bid chances too and coin that can be invested directly to ART, goes actually back to current short term shareholders. Liquidity is good but in this particular case, it will not help ART. 
Sure, we can hope that short term investors take the coin and place new bids in secondary placement... but they have just decreased the "right" or more like "chance" for biding by selling their existing shares.
Looking at this placement from ART's point of view, coin from IPO is already invested to hardware - turned to a tangible asset. So, in context of secondary offer, it's not that important what you bought form fist offer. Size of your bid and price, for the secondary offer, matters and it helps directly ART and you, as a long term shareholder.

Cheers.

Limiting it to current share-holders is pointless - as anyone can spend 1 LTC and become a share-holder.  If you want to give first shot to current investors then you need to restrict what they can bid on based on their current holdings - otherwise it's entirely pointless.

So first you'd fill orders up to the number of shares they currently hold, then up to 2* shares they currently hold etc.

There is a need for additional equipment so I like to propose a secondary offering.
Lets make it short and sweet and only available for current shareholders.

Here is an idea, how to make it happen:

this is a preliminary draft


Comments are welcome. I like to get started with this ASAP because heavy equipment deliveries take forever. 

As you recall, the idea of how to finance the project has evolved and gone trough two (2) major stages, with several intermediate steps.  
1) First, I was going for a crowd funding it and if this works out, we list the stuff acquire and participants in CF will receive a number of virtual shares or tokens. This did not work out as expected because I did not want to wait for unknown amount of time when the CF site was up and running.
Who bought the mug, got it delivered + promised shares issued in version 2. Thank you, and let me say this again, your trust was important to me!

2) Second stage started, when I realized that OT and CF are out for the now, because those ideas/technologies are way too experimental for now.
Litecoinglobal opened and I decided to go for virtual shares in LTC land. I like LTC for multiple reasons and I have supported it from day one.
Now, the BTC paid for the mug was converted to LTC and shares sent to participants in stage one.


Publishing the end of 2012 and weeks 01-03 of 2013 statements, there was no tangible assets. All we had was a "pile" of LTC (see line "LTC received") and that's it.


If you have done any book keeping or owned a business in the real world, you must know that all the equipment is added to the books at purchase price. There is nothing humorous about it. BTW, actually EVERYTHING a company buys, will be added to the books at purchase price and not some arbitrary "value" that looks good. Depreciation usually kicks in when equipment arrives and is used.
Depreciation will be calculated annually. For equipment like this, 5 years or 20% a year sounds about right.
I am going to use straight line method without residual value. So, by the end of the 2013, this kiln has "lost" 1/12 less than 1/5 of it's purchase price and is valued in the books at lower price.
If we take good care of it, we can use it for way more than 5 years and I am not surprised, if it's resale value is 35-45% of it's purchase price.


Yes, equipment will be insured separately unless it's covered by the studio insurance. I'll find that out in following weeks. I need to get some quotes for this anyways.

It was me, and I changed my vote to yes because you published the financial statement. I am also a shareholder.

But there are a few things I don't understand. You've ordered a Kiln and to my knowledge you've sold several mugs (and maybe other things). I don't see any of those listed on your financial statement. My main problem with this is you have stated clearly you will "...be publishing our monthly statements in forum and follow typical bookkeeping rules." Well, thank you for publishing a financial statement, but I don't understand why you haven't followed typical bookkeeping rules. You haven't listed any of the company's assets in your financial report. In fact it appears as if the only assets of the company are litecoins, and the only operation of your company is to trade it's own security.

I'm not saying you didn't order a kiln or that you didn't sell any mugs. I'm just asking when you will prepare a proper financial report as you've said you will, which includes all the company's assets including sales and the kiln. I need this in order to calculate a value for your company. Also, I admit it, I have a certain morbid fascination with how you plan to value your company now that you have purchased hardware which is already worth less than what you paid for it (a kiln). It would be humorous to see it listed at purchase price, even though that is what I'd expect anyone to do in any normal situation.

Also, I'm just curious, you said "Equipment will be insured against theft or destruction by fire or similar incident." Have you insured the studio against fire and/or theft yet? Again, I am asking because I don't see the insurance cost in the financial statements.

Another update.
I received a confirmation that our order is processed and the kiln will arrive on week 08 (18-22. Feb. 2013)

I have no idea how this can take so damn long but I guess donkeys, horses and boats must be involved.

Someone asked for financial report for the past months.
All numbers are and will be published here http://tinyurl.com/art-stats . If I find a better way to do it, you will be informed.
January numbers will be ready around week 06. I need to figure out, can I use kMyMoney to generate meaningful reports and if not, I'll have to try my luck with gnucash in virtualized environment (to keep all that Gnome blahh off my system)