Author Topic: Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 2015-10]  (Read 36727 times)

Offline rustyh17

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #15 on: January 18, 2013, 03:39:03 PM »
Eskimobob, I appreciate the explanation. I do understand the difference in debt v equity instruments. :)
I only asked because of your previous div distributions. So, your short answer is "no, it reduces the
company value..." I hope that the LTC GLOBAL community provides enough liquidity and participants
to allow for the natural growth of a successful company trading on equity instruments. If not, then I
would hope to recover some of my investment through dividend distribution on a portion of net
earnings. That being said, I don't want you to hobble your growth model early on. The balance of all
these variables is where a great company shines. I hope for great things from this ART project!

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #16 on: January 18, 2013, 08:51:38 PM »
Eskimobob, I appreciate the explanation. I do understand the difference in debt v equity instruments. :)
Let me explain the differences. Obviously this is simplified but hopefully you get the idea.
A company (later Co) can raise coin by loan (debt) or by selling a share of ownership (equity) in the Co.

Debt is a loan, issued bond is a loan. (the meaning of 'bond' has gotten really fraked up in BTC community, thanks to some absurd ideas that only work for government backed issues and not for btc mining. Lets not go there now. ).
Bond (loan from bond holders to Co) is an obligation for the Co to pay back all the coin raised by selling bonds and interest on top of that.
Bond do not give investors any share of the Co. If business goes south and Co gets liquidated, bondholders will get their coin before anything gets distributed to shareholders.

In this context, equity in a share of a Co. If you own 100 shares of Co X and this represents Y% of the co, you own Y % of the Co. As simple as that. Equity owners get a share from the profits and will make money if Co is doing well - share price usually reflects the health of the Co.

I recommend you read the following links:
Equity
Bond
Balance sheet

This is actually a fascinating stuff and not that hard to understand, if you start from the basics.

I only asked because of your previous div distributions. So, your short answer is "no, it reduces the
company value..." I hope that the LTC GLOBAL community provides enough liquidity and participants
to allow for the natural growth of a successful company trading on equity instruments. If not, then I
would hope to recover some of my investment through dividend distribution on a portion of net
earnings. That being said, I don't want you to hobble your growth model early on. The balance of all
these variables is where a great company shines. I hope for great things from this ART project!

I made a donation from me own pocket and used that for first 2 dividends as a "Thank You" to all who participated.
But it is pointless to keep this up, until we have some real income to share. :)
In short,  there will be no dividends unless there is profit to share.

For your information, ART has/had about 56 021 LTC and this is equal to roughly 2500 EUR.
We are fine and can pay for the firs kiln.
« Last Edit: January 18, 2013, 09:13:35 PM by EskimoBob »

Offline Deprived

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #17 on: January 18, 2013, 10:57:16 PM »
Let me explain the differences. Obviously this is simplified but hopefully you get the idea.
A company (later Co) can raise coin by loan (debt) or by selling a share of ownership (equity) in the Co.

Debt is a loan, issued bond is a loan. (the meaning of 'bond' has gotten really fraked up in BTC community, thanks to some absurd ideas that only work for government backed issues and not for btc mining. Lets not go there now. ).
Bond (loan from bond holders to Co) is an obligation for the Co to pay back all the coin raised by selling bonds and interest on top of that.
Bond do not give investors any share of the Co. If business goes south and Co gets liquidated, bondholders will get their coin before anything gets distributed to shareholders.

In this context, equity in a share of a Co. If you own 100 shares of Co X and this represents Y% of the co, you own Y % of the Co. As simple as that. Equity owners get a share from the profits and will make money if Co is doing well - share price usually reflects the health of the Co.

I recommend you read the following links:
Equity
Bond
Balance sheet

This is actually a fascinating stuff and not that hard to understand, if you start from the basics.

Think you mis-read his post.  He understands all of that perfectly well.

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #18 on: January 19, 2013, 09:15:39 AM »
LOL, you are correct. Sorry ustyh17. 
Hopefully it was useful for someone else. :)

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #19 on: January 20, 2013, 11:26:08 AM »
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)

Updated OP with new link

Offline rustyh17

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #20 on: January 21, 2013, 06:06:12 PM »
No offense taken EskimoBob.  :)

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #21 on: January 22, 2013, 02:55:47 PM »
I received a confirmation from local reseller - our kiln will arrive on week 08 (18-22 Feb 2013)
:)


Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 04/05]
« Reply #22 on: January 27, 2013, 09:43:53 PM »
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

Quote
I like to invite you to submit bids for the second stage in our project.
As you know, first kiln is on it's way and will be here on 8th week. There is a strong demand for additional equipment and we will like to release additional shares, up to 50K, to the market so the equipment can be purchased ASAP.
This is a secondary offering and no new shares will be created.

Minimum accepted bid will be X.XX?, maximum bid for the current shareholders will be Y.YY <-- or we can do it without max bid
All bids below X.XX will be discarded

 1) All bids, over 200? shares @ Y.YY LTC per share, will be filled first.

If this secondary offering is oversubscribed (total bids received are over 50K shares):
 - Highest priced bids are filled first at bidders proposed price
 - Larger order, at the same price, will be filled first
 - Orders below Y.YY will be reduced (proportionally) until orders at higher price will be filled
 - Orders @ Y.YY will be reduced (proportionally) until all orders are filled <--- not really sure about that one
 
Reducing orders will require rounding off the number of shares to the closest whole number.


Send me your bid in following format:
your e-mail; number of shares; price per share

NB! You have to be on shareholders list to make a valid bid and remain as shareholder until the end of bidding (02.02.2013 12.10 UTC).
If you cancel your bid, you have to pay 15% fee from the bids value. (I think this is fair)
 

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

Offline rustyh17

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #23 on: January 28, 2013, 08:54:21 PM »
EskimoBob,

You have 250,000 potential shares for issue on this ART equity. Will this 2nd offering fall within
this same equity fund? If so, will you continue to release new shares for 3rd and 4th offering
under the same premise (i.e. offering only to current shareholders)?

Do you reasonably expect to start generating revenues prior to releasing 3rd and 4th offering?
When DO you reasonably expect to start generating revenues?



Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 03]
« Reply #24 on: January 29, 2013, 02:42:48 PM »
EskimoBob,

You have 250,000 potential shares for issue on this ART equity. Will this 2nd offering fall within
this same equity fund?
Yes, this new 50K is from that same 250K I have registered in ltcglobal 

If so, will you continue to release new shares for 3rd and 4th offering
under the same premise (i.e. offering only to current shareholders)?
Not really but I like to come up with something simple, that allows shareholders to participate in third etc offerings with some discount or lets say advantage to non shareholders.
I am not sure, how is this going to work :)

Do you reasonably expect to start generating revenues prior to releasing 3rd and 4th offering?
When DO you reasonably expect to start generating revenues?
I am actually planning to generate revenue in about 3-4 weeks.
When we get the kiln delivered, we can fire it up and put it to work. I was promised week 8. Lets hope they do not pull a "BFL" on us.
Because of this uncertainty, I have booked only one paid firing to February. If we get the kiln as expected and set to up promptly, we can pull off more rounds. 

I  am also going to release a extremely uneventful status rapport in matter of days. :)
Available coin was invested to first kiln, firs kiln in transit and all I can do, is search for a good place to set it up, test-fire and go from there.
Meanwhile, I have searched for potential clients and it's not going bad at all. :) I rather not brag before we have the pots in the kiln and coin on the table.

I have also wasted invested some time to gnucash. I like to figure out how can I make it useful for our project.

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 05]
« Reply #25 on: January 29, 2013, 10:47:15 PM »
Good news. 50K shares are all sold, before the open bidding even got started.  :)

Thank you to all of you who participated.


Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 05]
« Reply #26 on: February 02, 2013, 06:31:50 PM »
Time to publish January reports

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

(Next time I'll use PDF)
 

Offline rustyh17

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 05]
« Reply #27 on: February 15, 2013, 06:52:05 PM »
Any new news Eskimobob? Any new equipment on order?

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 08]
« Reply #28 on: February 19, 2013, 05:32:21 PM »
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 Smiley I am constantly looking for potential clients, etc.

Offline EskimoBob

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Re: [LTC-GLOBAL] - ART - building a open art studio [news for week 08]
« Reply #29 on: March 02, 2013, 10:04:47 PM »
If this statement has becomes unreadable in your e-mail client, please see https://bitcointalk.org/index.php?topic=130947.0
or
http://forum.litecoin.net/index.php/topic,980.0.html



February statement.

One of the most expensive piece of equipment arrived and on time.
Room for the kiln was not ready as expected so there is no income generated for the February.

While waiting for the workshop rental agreement etc, I decided to go to local business incubator and test out my business model and the idea. I had to apply for the admission by presenting my open art studio idea. Guess what, I passed and I in. This is going to open some really interesting doors for the ART project.

Bad news is, our kiln has to spend few more dais in the warehouse before I can move it to our new studio.

Here are the financial reports:
(see comments at the end of the report)
Code: [Select]
Account Balances by Type (Y to M)
01.01.2013 through 28.02.2013
All currencies converted to Litecoins
Account                  Amount (comments)
Asset
  Current Assets           0.00
  Depr. Kiln 01            0.00 (1)
  Fixed_Assets             0.00
  Kiln 01 60S          41487.14
  Wheel RK3E#1         21551.76 (2)
  Total Asset          63038.90

  Cash
  BankAccount - EUR        0.00
  Bitcoins             41981.82
  Litecoins             2795.61
  Petty Cash               0.00
  Total Cash           44777.43

  Checking
  ART-LTC (Brokerage)    665.14
  Total Checking         665.14 (3)

  Stock
  ART                      0.00
  Total Stock              0.00
  Grand Total         108481.47



Net Worth By Month (Y to M)
01.01.2013 through 28.02.2013
 
All currencies converted to Litecoin
 
Account                      Jan        Feb
Asset
  ART-LTC                 479.05       0.00
  ART-LTC (Brokerage)       0.00     665.14 (3)
  Current Assets        54620.11   44777.43
  Fixed_Assets          43493.84   63038.90
  Total Asset           98593.00  108481.47

  Liability
  Total Liability           0.00       0.00
   
  Grand Total           98593.00  108481.47

(1) There is no depreciation for unused equipment
(2) Pottery wheel
(3) Income generated from buying back ART share below IPO price. This will be distributed as dividends for February.