Pizarro February Statement
Prepared by ben_vulpes. This statement has been amended, you may view the previous version here here.
Pizarro February 2018 Statement
BTC incoming and outgoing
| incoming | outgoing | ||
|---|---|---|---|
| sale of equity | 11.00000000 | datacenter | -0.29050099 |
| bunk | -0.05940594 | ||
| tax | -0.01980198 | ||
| office | -0.03079208 | ||
| per diem | -0.05940594 | ||
| advance | -0.00881188 | ||
| WU fee | -0.00356436 | ||
| buyout | -0.80000000 | ||
| box #1 | -0.25553424 | ||
| rails | -0.00335165 | ||
| FG sales | 0.07838890 | ||
| FG sales | 0.02777778 | ||
| Loan from S.NSA | 0.50000000 | ||
| Purchase of FUCKGOATS | -0.50000000 | ||
| total | 11.60616668 | total | -2.03116906 |
USD incoming and outgoing
| incoming | outgoing | ||
|---|---|---|---|
| per diem | -$560 | ||
| chassis search | -$11 | ||
| bank fees | -$33 | ||
| rack studs | -$13 | ||
| dentistry | -$83 | ||
| local tax (jan) | -$138 | ||
| office (march) | -$311 | ||
| funds for march expenses | $1800 | ||
| total | $1800 | -$1149 |
Fiat Assets
| account | 2/01/2018 | net change | 2/28/2018 |
|---|---|---|---|
| USD | $2073 | $651 |
$2724 |
Fiat Liabilities
| account | 2/01/2018 | net change | 2/28/2018 |
|---|---|---|---|
| advance | 0 | -$89 | -$89 |
Tangibles
| item | qty. | book value | monthly depreciation | last depreciation period |
|---|---|---|---|---|
| UY1 | 1 | .25553424 | 0.02129452 | March 2019 |
| rails (pair) | 1 | .00335165 | 0.00027930 | March 2019 |
| FUCKGOATS | 29 | .40277781 | n/a | n/a |
| USD | 2724 | .26178564 | n/a | n/a |
| total | 0.92344934 |
Pizarro assets
| account | 2/01/2018 | net change | 2/28/2018 |
|---|---|---|---|
| cash | .20123128 | 9.57499762 | 9.77622890 |
| tangibles | .21552917 | 0.70792017 | 0.92344934 |
| intangibles and goodwill | 1.49420165 | 0.46347129 | 1.95767294 |
| total | 12.65735118 |
Notes:
- tangibles: 1 server, rails, 2724 USD @ 10405.46, 29 FG
- intangibles: DC, bunk, tax, office, per diem, fiat remittance fee
Pizarro liabilities
| account | 2/01/2018 | net change | 2/28/2018 |
|---|---|---|---|
| Mircea Popescu | 1.88202778 | -1.88202778 | 0 |
| S.NSA | 0 | 0.50000000 | 0.50000000 |
| BingoBoingo Parachute | 0 | 0.25000000 | 0.25000000 |
| shareholder equity | 0 | 11.90760962 | |
| totals | 1.88202778 | -0.11673175 | 12.65760962 |
Notes:
- Mircea Popescu suggested that the correct tally for shareholder equity should be 11 BTC and not 11.9ceteras. I calculated this value for shareholder equity by taking the difference between Pizarro's liabilities and assets ex the shareholder equity line. I'm working to understand his point and will update as soon as I do. Until then, I'm following AN0 for this line.
mod6 and asciilifeform stepped in to capitalize a new ISP under my management, after mod6 and I made a bridge loan out of The Bitcoin Foundation's coffers to keep the lights on at the Republic's sole hope for internet services. We burnt a fair pile of capital buying Mircea Popescu's equity, which was terrible for cashflow.
The bleeding shall continue through March; I'm not promising machines online before the 15th, and so naturally won't be booking any revenue until they're under customer control. That said, we're subscribed to the tune of 4U, with S.MG's management wisely paying for a year of hardware rental in advance, toting up to some 12% of our fixed costs. Not dead yet!
I left one machine behind before takeoff, and delivered the hardware for another in unleasable condition. See my personal missive for details. The bleeding will continue, heavily.
Pizarro has 1,100,000 shares outstanding. Par value for all accounts is .00001151 BTC/share, and .00000973 BTC/share for cash and tangibles.
The above was calculated incorrectly, did not account for liabilities.
Pizarro has 1,100,000 shares outstanding Par value for all accounts is 0.00001083 BTC/share for all accounts, and 0.00000905 BTC/share for cash and intangibles.
Pizarro Stock Warrants
Pizarro has the following warrants outstanding:
| # | holder | shares | BTC | |---+-------------+---------+-----| | 1 | ben_vulpes | 100,000 | 1.0 | | 2 | BingoBoingo | 10,000 | 0.1 | -----BEGIN PGP SIGNED MESSAGE----- Hash: SHA512 Stock Warrant #1 Pursuant to Pizarro ISP's Articles of Incorporation, this Stock Warrant (#1) is hereby issued to ben_vulpes (4F79 0794 2CA8 B89B 01E2 5A76 2AFA 1A9F D2D0 31DA), stipulating that he shall be issued 100,000 new shares in Pizarro ISP upon payment of 1 BTC to Pizarro after February 22nd, 2019. -----BEGIN PGP SIGNATURE----- iQIcBAEBCgAGBQJalmiUAAoJEPAbzAMu8lJHAQAP/3mCyHoba9cPk3S4aDb69Y/L E2p6qD38qJQM9vvR0ahvsi+iEIFyOfe3XPmazRcYX3Zk22hpRTELw6zLfAncIlkC lBw/1q9CzoAsGtK2UG/5SQoVvPEWJMGlY3elYxGlRwj1iAo3aokJTq0Y++Fu/oQv vNajhx22CtuqXIiD3yEQv1Ra0mYKlmwLpzh3snXN+oECtv5k9GG6G6yROgWcT5Wh cbF+V0y2Zv88UX3Y8ce+j2OWTgGIrJESWVuUv7sL6voxPkxgNd+/JTQ5pE5UzerA nJUlJF8GXkBiTw2VbaAyY5PW0X8JadvYtEhfh1gXy9K15Eo2/VP8h7q6sPFKi+CR ZciJb9LdW8cXn3jxY2brUyN3NSXEJAfkdFIgwMl88GMTAOmTXJjQh/qHYcTBYOkm Nqqt2JQboKwMwyCtv0jBHbiCvM80k0HyLCXahuctE9wpKCeGyDqYlbjexK1diGOu TbeWN/YpcDf2ps80XQOadre0i8EUafTHSCCv72X+M5FqFxsTr3W2rF/9NcvwzRCL 42/gMn3ZzrFlHXJdPoKKMj1AbFMmTjIZ43SJgwmF5JJASAGZYhHKQb8zA6XJumiD 6Oy67oPre7Nk+qn6sDFHFG9hLjgoTG4vTYluYWNxRODl2s3HJJj1XlRuFJugRNTq YBU1Z/MgsqHrCqUGQAL5 =1F8U -----END PGP SIGNATURE----- -----BEGIN PGP SIGNED MESSAGE----- Hash: SHA512 Stock Warrant #2 Pursuant to Pizarro ISP's Articles of Incorporation, this Stock Warrant (#2) is hereby issued to BingoBoingo (ADD7 A9A2 8F85 E5EF 1F51 904F 309B B8D7 F325 1143), stipulating that he shall be issued 10,000 shares upon payment of 0.1 BTC to Pizarro after February 22nd, 2019. -----BEGIN PGP SIGNATURE----- iQIcBAEBCgAGBQJalmigAAoJEPAbzAMu8lJHySwP/3yN+covFddMZ1FPaIbI2qDJ vHaCa9BVqMXKKvajj862gjCFWOlHGRz+wv01vwiFJacAcuiWWnJmJvuLu3iT8jHZ dJcwI2QUx7uSVJpfkEnQtteTCgTol6iIoiB88mphTshPjou2O2p5RYKs3x+OX4RO Ple6w7Ded3v+Y4QyXNwx/agKkaeruGxa75Mu5jLxwHx8a+mEH/H5MBZ15EnL4cFg F/OsuC0b3QmA73Oj+zrsHx0zszz4MFPiJr8CxlaRX/owppTxCAWk6d1Ca86FCfb5 TEbTJOjIzk+m4oRx06uV6ZIqF+g0svkZVPRaA3XlclAW6oliWIjp9q0dNRWklVWt J/XLf1jQkURIn6DDiCqzh+mQ+Wdt/4gUUoBVQmdbdKwe2xjHIk4wrug/ArjX5RQ/ EP4rvFceMqo31KEVeUtE4+xVWImIAGOw0vPldlf5fXWVc7rjrSeS+jADK454NbxK TwLLKFtJJ0kUHKWrK0tN7rwyvjn9f9ww+kSiaqV+e1hiNPHq1l20lrpPjdomfmX0 i309nCOOQyix5hWqIiuOQQfdCsj7BNxZWCUmXh1JVfKqJV185VC76mFLT9D9IYW7 EhjIvizFifIO09H6iBjWHIIoX5hW6GtYzllL0tI6WtSTU32gkgMVR0OPqxZT7UQB 2kpEa8lYTMUIs19tjH7X =dCzP -----END PGP SIGNATURE-----
- Error spotted by Diana Coman [↩]
I don't get :
1. why does pizarro owe 1 to tbf ? I thought the idea was it buys equity with the other two, which is how it even got a seat on the board. Does it no longer have a seat ?
2. why did tangibles go up .18 when various purchases are 0.255+0.003 ?
3. why are you owed credit, i thought you were taking warrants ?
4. How was the .1882 value arrived at ?
5. why did you consolidate overhead (such as office space rental) into payroll ?
6. why aren't the fgs in the tangibles set ? Just like the box/rails, they're items you bought. Basically you created an imaginary type of (apparently unreflectable) transaction to cover what was 0.5 income, 0.5 debt and 0.5 capital goods purchase. Break them up or else your accounting will fly out of sanity.
7. Am i reading this correctly, are you implying shareholders realised ~.8 of paper revenue through pizarro operation during its first month ?
Prolly more, but should be enough to get the ball rolling.
BTC Holdings stand the same at .20123128
Fiat activity For the Period of February is as follows:
End January Current Balance = 2073 USD
Per Diem 2-1-18 2-28-18 -560 USD
Two car rides During Chassis Search -11 USD
Bank Fees -33 USD
Rack Studs -13 USD
Dentistry -83 USD
Local tax liability incurred & -138 USD
January Due February 23rd
Tentative End February Balance =
12681235*This summary does not include expenses made for use in March including Cowork and Hostel rent which are covered in the new "payroll" line item in the Pizarro statement as accounted in the statement initially published.
*Balance exists as a mix of USD and Pesos
BingoBoingo:
1. I get 1235 when I sum those expenses.
2. Is the meaning of "January Due February 23rd" that is tax for the month of January that is due on February 23rd?
ben_vulpes
1. ty
2. Yes. It was tax incurred January and paid in February.
It would be nice to have a "prepared by" line at the top.
Why is "shareholder equity" included in the list of liabilities, but not included in the total? And shouldn't it have a "before" and "change" columns listed?
I agree with Mircea, the FG inventory should be part of tangibles. You could subdivide Tangibles into two categories of "capital equipment" and "inventory", and then report those along with the "total tangibles".
Mircea Popescu,
I've updated the statement with your notes in mind, breaking out overhead, and adding fiat accounting tables.
Responses to your questions follow:
> 1.
Well, per http://btcbase.org/log/2018-02-20#1785220 it was to get a board seat in exchange for the loan, but it is cleaner to simply make the Foundation an equity-holder and so I've proposed it be so.
> 2.
Because I subtracted the previous month's balance from this month's instead of adding them. Thanks for the catch.
> 3.
I've yet to reimburse myself for a few items, but I'll strike the line since it's accounted for in the cost of box #1 and rails and just needs to happen before statement finalization.
> 4.
Do you mean 1.882? If so, per Liabilities from http://www.thedrinkingrecord.com/2018/02/01/the-boingo-isp-january-2018-monthly-statement/
> 5.
I can readily see the value in breaking these apart and will amend. Since the company doesn't need a bed in the absence of BingoBoingo, do you figure it's reasonable to roll his cot into payroll or should that show up as a line item on the corporate expense sheet as well?
> 6.
They do belong in tangibles, will amend. What do you mean by "unreflectable"?
> 7.
After the updates, it is a 0.00894445 BTC increase in shareholder equity due to revenue and a .89866517 BTC increase in shareholder equity due to the discounted purchase of intangibles and goodwill. I don't quite know how to account for this properly, but it looks like a one-time return on equity of ~8% due to purchase and capitalization of distressed assets. I can't make "traded 1.882 in debt for 0.8 in cash, and then lost a little bit of money" pass muster with myself.
PeterL,
> prepared by
Done, thanks.
> shareholder equity
Fixed.
> FG
I've added an "Tangibles" table that clears this up.
Re 5, I very much agree bioallotments, such as a cot or some daily pocket money very much belong in payroll -- they're a sort of communist-style according-to-needs salary substitute. The "office" such as it is though, that should be overhead rather than payroll. I much sympathize with the view that this is splitting hairs, which it is, but the idea is that hairs well split early on pays off down the road.
Re 6, the fundamental view of "what is accounting after all ?" is that accounting exists to reflect reality in numeric terms, very much Perseus' mirror to watch Medusa in. "Unreflectable" would mean "something that can't be accounted for", such a nook of reality as accounting can't reflect.
The solution to 7 is very much actually found in the original AN0 document, which says "What is the quality of the intangibles account ? Does it mostly consist of judicious expenditures or is it principally made up of blown deals such as investments gone bad ?" Basically trading 1 in cash for 3 in tangibles at .3 discount is an even trade. I wouldn't worry about the accounting side of it as it is.
Now on to further observations :
B.1. You still don't reflect the NSA loan in your incoming. This is incorrect. The substance of that transaction is : a. NSA gave you 0.5 BTC, which was your income ; b. on the condition you spend it to buy fgs, which you did, and it was your expenditure and c. on the futher condition it gets a 0.5 convertible bond in pizarro, which puts it in the equity line as well. This is what I meant by 6 earlier, rechristened A.6 for the needs of this complexity.
B.2. Rather a nitpick, but the .8 was a buyout not a "debt payment". You bought the company from the previous set of shareholders, it's exactly a buyout like the mergers & acquisitions concept.
B.3. Is your cost basis for FG printed "per item" ? This is irregular, usually you print "whole line".
B.4. Your reported tangibles don't actually sum up to the value you print in the "tangibles" line. You can't have these not match.
B.5. How did you come to the warrants settlement ? Was there some discussion who gets how much and why ? Is this going to be recurring, anually, monthly, etc ?
B.6. The situation where shareholder equity dropped a dime from a little under 2 to a little over 12 is indeed interesting. The correct statement would be
| shareholder equity 0 11 11
rather than the current
| shareholder equity 0 11.90760962
but that still doesn't fully resolve the mismatch.
Mircea Popescu,
> B.1
Fixed, i'm just going to account for this entire class of expense in plain sight.
> B.2
Fixed, marked as buyout.
> B.3
Cost basis changed to "whole line".
> B.4
Fixed, checked and double checked.
> B.5
In such an ad-hoc fashion that I cannot find the relevant log line. Revisiting this is on the agenda.
> B.6
I still do not understand how you calculate shareholder equity at 11 BTC. Per AN0, the number reported is the difference between company assets and company liabilities, not including the shareholder equity line itself.
Thank you for taking the time to look closely.
I'm having some trouble following this: the fiat account lists $2073 at start of month, "net change" $962 and then value at end of month $2724. Isn't that a net change of -$651?
Diana,
Thank you for the close read. It looks as though I added the office cost to the net change amount twice. The $651 number is correct, and is the difference between incoming and outgoing for the month.
Yours,
Ben