Pizarro Statement, February 2018

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 $9621 $2724

Fiat Liabilities

account 2/01/2018 net change 2/28/2018
advance 0 -$89 -$89


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


  • 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


  • 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 |

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.



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.

  1. Error spotted by Diana Coman []

11 Responses to “Pizarro Statement, February 2018”

  1. 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.

  2. BingoBoingo says:

    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 = 1268 1235*

    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

  3. ben_vulpes says:


    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?

  4. BingoBoingo says:


    1. ty

    2. Yes. It was tax incurred January and paid in February.

  5. PeterL says:

    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".

  6. ben_vulpes says:

    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.

  7. ben_vulpes says:


    > prepared by

    Done, thanks.

    > shareholder equity


    > FG

    I've added an "Tangibles" table that clears this up.

  8. 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.

  9. ben_vulpes says:

    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.

  10. Diana Coman says:

    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?

  11. ben_vulpes says:


    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.


Leave a Reply