Author Topic: Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 2015-10]  (Read 35898 times)

Offline EskimoBob

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Few days ago I listed The ART in LTC-Global. (waiting for approval) Trading is open.
https://www.litecoinglobal.com/security/ART
https://litecoininvest.com/security/ART

Executive Summary
After about 6+ months of research and following the trends on the local ceramics art seen, we have come to the conclusion that the local artist (hobby and freelance) community is in serious need for a flexible access to shop equipment.
Especially the more expensive equipment that is way out of reach for most hobby and freelance artist.
Our research has shown, that this service is more than welcome and our proposed price range is considered very attractive.

Business Description
Our plan is to raise the funds, purchase the required equipment and make it available to anyone who needs it on hourly, daily or a space/volume based pricing plans. Some equipment, like smaller electric pottery wheels etc. can be moved to different locations on demand, under daily/weekly rent contracts. Stationary equipments, like large high fire kilns are stationary and are rented out under "volume" based pricing (artist pays for volume of kiln space used).
Our business is to help artist to produce their unique works of art and not compete with them as an artist to artist.

Products and Services
At current prices on the market and huge time delays, we see a lot of opportunities to be a very successful. There is strong growth potential. We are planning to carefully grow by constantly analysing the market needs while responding to it's needs accordingly.

For example, some of the stoneware firing styles are almost disappeared form the scene. Not because they are inferior, but because the lack of equipment (old equipment is broken down and never replaced).

We are planning to bring some of techniques back by adding the required equipment to our workshop and making it available to a larger community. This will help to keep it profitable and same time open new doors for the local art community.


Financial Management

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.

We will be publishing our monthly statements in forum and follow typical bookkeeping rules.

EDIT: (20.01 11.21 GMT) 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.

Stockholder Agreement

The total issue will be up 250 000 virtual shares @ 1 LTC per share.

* Proceeds from the issue will be used to acquire ceramics art studio equipment, materials, parts and cover regular maintenance if required, and cover other similar equipment related expenses
* Equipment will be insured against theft or destruction by fire or similar incident.
* Any profit (after the expenses) will be shared among the holders of virtual ART shares
* Profits realized in fiat currencies are converted to LTC and divided by number of outstanding virtual shares
* If the purchased equipment is sold, proceeds (after any expenses) will be divided up between the virtual share holders.
* Virtual shares can (but do not have to) be bought back by the issuer.
* We will do our best to keep the project profitable but we can not give any guarantees.
* This is a start-up project, please be aware that there are risks involved.   
* If the project fails, ART virtual share issuer nor project manager (persons or legal entity(s) can not be held liable.
* Issuer can not be held liable for any of your actions or decisions like selling, trading, destroying or anything else you plan or can imagine doing with your virtual shares.
* All sales of ART virtual shares are considered final.
* All unsold virtual stock is considered as a "treasury stock", that has no rights for voting nor dividends.
* Dividends are paid monthly.
« Last Edit: March 03, 2015, 12:49:22 PM by EskimoBob »

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - help artist to produce their unique works of art
« Reply #1 on: December 14, 2012, 09:31:26 PM »
* - fixed few really stupid spelling errors. Thank You ;)
« Last Edit: December 15, 2012, 10:09:00 AM by EskimoBob »

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - help artist to produce their unique works of art
« Reply #2 on: December 15, 2012, 12:00:00 PM »
Just got the last positive vote and we are open for trading!
 

Offline rTech

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Re: [LTC-GLOBAL] - ART - help artist to produce their unique works of art
« Reply #3 on: December 16, 2012, 12:55:51 PM »
* Virtual shares can (but do not have to) be bought back by the issuer.
* This is a start-up project, please be aware that there are risks involved.
* If the project fails, ART virtual share issuer nor project manager (persons or legal entity(s) can not be held liable.
* Dividends are paid monthly.

those arguments = YAIIIIIIIIKS..

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - help artist to produce their unique works of art
« Reply #4 on: December 16, 2012, 02:14:01 PM »
* Virtual shares can (but do not have to) be bought back by the issuer.
* This is a start-up project, please be aware that there are risks involved.
* If the project fails, ART virtual share issuer nor project manager (persons or legal entity(s) can not be held liable.
* Dividends are paid monthly.

those arguments = YAIIIIIIIIKS..

Thank you for your concern and yes, you are correct, this is a bit ambiguous.
Hopefully it makes it easier to understand the meaning of it, if you read it together with:
*If the purchased equipment is sold, proceeds (after any expenses) will be divided up between the virtual share holders.

We sell the equipment and can retire the issue by paying out last dividend. At the end, it actually makes no difference to share holders and as of now, we do not know what the tx laws etc will be in X years down the road. Will it be better to pay out div and drop the share to zero (capital loss) or buy back the shares at Y and so on.

Telling you, that this not a virtual issue, it's not a start up and there are no risks involved - this will be a flat out lie.
I prefer not to go down that road and stay as open and straight as possible. By "as possible" I mean, do not expect me to blabber out every trade secret :)

* Dividends are paid monthly.
Yes. At this point in time and the age of the ART project, I see no reason to send back the coin we have collected. This will only delay the most important task at hand -  buy the equipment an put it to work. This is the only way we make profit and not shifting coins from left pocket to right pocket an vice versa.

Cheers.

Offline rTech

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Re: [LTC-GLOBAL] - ART - help artist to produce their unique works of art
« Reply #5 on: December 16, 2012, 02:17:54 PM »
How about some infor about artists who use these equipments, some pics of their current artworks with name tag on them.. etc i do not want to sound harsh but its quite risky to buy shares if we dont know what kind artist or artists are using our money :D

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - help artist to produce their unique works of art
« Reply #6 on: December 16, 2012, 07:07:15 PM »
How about some infor about artists who use these equipments, some pics of their current artworks with name tag on them.. etc i do not want to sound harsh but its quite risky to buy shares if we dont know what kind artist or artists are using our money :D
The answer to your questions is actually in bitcointalk forum post.

Here is a copy:

Quote
..... I really like to keep it under the radar until the equipment is on it's way.  Pictures of the shop, equipment etc  will be all published when time is right. I am not trying to be "mysterious" here. Hopefully you understand. 

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio, renting "hardware"
« Reply #7 on: December 18, 2012, 10:11:03 AM »
We are going to add a flat rate dividend, and pay it out weekly.
I can not make changes to contract in litecoinglobal, so this announcement will have to do.  :)
Details will follow.

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio, renting "hardware"
« Reply #8 on: December 19, 2012, 12:15:18 PM »
Here are some questions from bitcointalk.
I removed all the irrelevant blaa blaa. Let that nonsense stay over there :)

[quote date=1355842087]

Quote
"could the "investor" ascertain whether this project has failed"

Sure they can. Regular income statements will show, what is going on.
At at current stage, only point of failure is the IPO itself. If we do not raise any meaningful sum of coin, there is no point to continue. I have to look for other means to finance this project. Coin will be returned and I will move on, no matter what and complete the workshop and get on with this business. I am sure, that this is not the outcome and you all can be part of something truly different and wonderful. So, lets make it happen! 
This is a completely unique project for LTC/BTC community to participate in. It has nothing to do with mining, computers, networks etc. This is a perfect project to actually show, that LTC (or BTC) has serious real life use in areas, that have nothing to do with "digital/virtual/pc/cpu/gpu..." related goods and services. When the equipment is ordered, we are going to open up a shop and LTC/BTC will be advertised and payment methods. As you see, the target group is something completely different. And this is really good news for any coin involved.

Quote
you don't seem to know whether you're a natural or legal person, what's to stop you from simply saying "sorry, it has failed"
.... Answer to your question is actually here: https://bitcointalk.org/index.php?topic=129844.msg1393420#msg1393420
You have to understand that this is not a project where coin is channeled to some real life scam, promising huge returns.
This is a long term project that needs the support of the community. I have other plans too and piss that all away, over few thousand EUR, is beyond retarded.
« Last Edit: December 19, 2012, 12:17:28 PM by EskimoBob »

Offline EskimoBob

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The one huge trade picked up 42915 shares so we only have 6026 shares left from the fist patch of 50K shares.

Time to start ordering the equipment.

YESS! We are moving on!

Offline EskimoBob

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We are moving forward.
Customer is currently rebuilding his workshop and hopefully I know soon (days), what model I have to order (it's up to ventilation and wiring spec).
After that, I'll have the numbers ready  - rented what and for how much.
Equipment will arrive in about 4 weeks from the day of ordering. I'll try to speed this up unless it will cost us extra.

Offline EskimoBob

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Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #12 on: January 14, 2013, 08:21:28 PM »
Now, to more exiting news....
I received the offers for the equipment and we are going to make a decision tomorrow 15.01.2013.

First order is for a mid size high-fire electric kiln.
This 5kW puppy runs on 400V and 10A and has a top temperature 1320°C (2408 of of those °F thingies). BTW, liquid lava is only 700-1200°C. We will be working mostly at 1285-1295°C and sometimes above (top temp. for the firing session)
This is a German built kiln with a fancy controller - this is exactly what is needed Smiley
I have several offers. When we have selected the final model/seller, I'll post some kiln pr0n for your pleasure.

See you at https://www.litecoinglobal.com/security/ART

Offline rustyh17

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #13 on: January 17, 2013, 04:35:54 PM »
EskimoBob, I am very excited by your news of progress! I am a shareholder and was curious as to whether you
intended to continue the small dividends until the equipment was received and started producing income. I do
realize that there may be insufficient funds to both purchase the kiln and provide divvies, but I wanted to ask
since it had been several weeks since the last distribution. Thanks and I look forward to your continued success!
Regards, Rustyh17

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #14 on: January 18, 2013, 10:08:04 AM »
First, let me post some of that kiln pr0n I promised. :)
The first one is a is a mid size (60 L or 2.118 cubic foot) kiln, that gets us moving forward and start offering custom ceramics firing service to local hobby artists. Good news is, I have some potential clients lined up already so all we need now is this kiln to arrive.   
Sorry, this is just a catalog image.


and if you open a lid...


When it arrives and is all set up and ready to go, I'll post some "real" images.

EskimoBob, I am very excited by your news of progress! I am a shareholder and was curious as to whether you
intended to continue the small dividends until the equipment was received

Thank you for your support.
The whole idea of dividends has somehow got warped in BTC/LTC community.  :)
Dividend is not something that gets paid directly from revenue (In business, revenue or turnover is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. )
Yes, there are trust issues in btc/ltc community and this is probably the main cause, why revenue gets distributed to share holders ASAP. I can see how this works in mining Co's  where "produced product" (LTC or BTC) is distributed on weekly bases and some is kept as reserve.
There are Co's that raised coin for project X and before this project has earned a single penny, they start paying divs from coin raised in IPO. I am talking about equity (shares) and not about debt (bond, loan).
Sure, I love to receive something back ASAP but will this actually increase the value of the Co and it's shares I hold? The short answer is: "No, no at all"

Let me me attempt to clarify what is happening with a simple example. NB! We are talking about equity (stock) and not about debt (bond etc)!
Lets say that You and I have decided to start a project and we need 100 coins to buy equipment and hire some experts to do something. As a result of this, we have a product we sell and finally we make some profit (total income minus total expenses). 
Now, when the coin is raised, we have 100 coins and we can say, that this is the equity we have to work with to achieve our goal.  For simplicity, lets forget all the other mumbo-jumbo, that can be used to increase the value of this Co on paper.

Right. What happens, if you and I pay ourselves a 2 coin dividend BEFORE we have invested the coin to equipment  and into all the other stuff, we need to produce a final product, sell it and hopefully make profit? 
We had 100 to work with, now we have 100-2=98 
As you can see, we have decreased our Co value before we have even really started. Our starting capital is lower of what we needed in the first place. 

What has happened in BTC/LTC community, is that people have mixed up how debt and equity investments work and this keeps causing confusion.
If ART was a bond (basically a loan with a huge payment at the end), then monthly payment to bond holders, no matter what really happened, is expected and fixed for the duration of that loan.
This is why a typical bonds are categorized as a "fixed income" investments -  you are guaranteed a fixed size payment in regular intervals.

Every time we take money from ART, and send it back to us, ART has lost a tiny part of it's value buy giving up a portion of it's start up capital that was raised for acquiring equipment to build a business.

... realize that there may be insufficient funds to both purchase the kiln and provide divvies, but I wanted to ask
since it had been several weeks since the last distribution. Thanks and I look forward to your continued success!
Regards, Rustyh17
Sorry, my answer got a bit longer than I expected but I hope this answers your question.
« Last Edit: January 18, 2013, 12:35:49 PM by EskimoBob »