Bitcoin Forum

Lately I have been pretty absent from the forums due to some new business ventures outside of crypto currencies. Because of these new ventures and the amount of time and dedication it is taking to bring them to fruition I have decided to sell my 23.5% share in Silver Wallets. www.silverwallets.com (http://www.silverwallets.com) or https://bitcointalk.org/index.php?topic=525756.0
This project has been a great passion of mine. Many of you know that from my early days on the forums I was always reselling Casascius coins, brokering deals or trades to resell others coins and eventually started Silver Wallets creating my own coin for physical storage. Realizing the amount of money, time, and energy needed to get this project off the ground I enlisted the help of Alex Dearth a licensed precious metals dealer and close friend based in Washington DC and Blazedout419 a trusted member of the forums, avid miner, and moderator of several IRC chat rooms. The three of us brought this project to life and have continued to grow it through the forums, our booths at Bitcoin conferences and partnerships with independent affiliates.
Silver Wallets still has so much potential with instituting an affiliate sales program, partnering with Crypto businesses to utilize our coins in promotional giveaways to their clients and staff, partnering with charitable organizations such as Sean's Outpost to raise money, etc. All of these avenues have been discussed and great interest had been established however I just did not have the time or energy to make these things happen.
I would like to see a partner come on board who has enthusiasm, drive, and a desire to continue the growth of Silver Wallets. The winning bidder will receive my full share of Silver Wallets and will be expected to put forth an effort to sell coins, build profitable relationships with new clients both individuals and businesses, and aide in building an affiliate program.
Auction Details;
This auction is for 23.5% ownership of Silver Wallets
Silver Wallets is completely debt free
Silver Wallets has over 350 customers
Silver Wallets has the names, and contact information for all customers
Silver Wallets has a reputable, established, reputation within the bitcoin community.
The remaining partners have a desire to diversify into bars, gold coins, base metal wallets, and accessories.
Assets;
Silver Wallets currently has in stock $25,000 retail value worth of product.
Silver Wallets owns the website www.silverwallets.com
Silver Wallets owns 4,000 custom holograms
Silver Wallets owns the die for the custom holograms ($2500 value)
Silver Wallets owns three dies for the coins ($3100 value)

Assets total retail value $34,600
23.5% $8,131
This does not take into account client base and customer acquisition value, reputable established brand, name, and sweat equity to build Silver Wallets to what it is today.

Bidding starts at $7,000 USD
Bid in increments of $100
Bidding ends Monday January 19, 2015 at 10:00PM to avoid snipping any valid bid will extend the auction by 5 minutes. Any bids made after 5 minute extension period will be not be valid and not extend the auction thus determining a winner of this auction.
Winning Bidder will be required to place a deposit down within 24 hours of winning auction, deposit will be equivalent to 20% of winning bid.
If deposit is not made within 24 hours a second chance offer will be made on this thread.
Balance of winning bid due once contract has been signed by both parties.
Winner will be expected to join a conference call by voice or video with all partners prior to signing contract.
As stated above winning bidder is expected to actively sell and market Silver Wallets, coins, and develop new business relationships and clients.
Deposit and Balance can be placed in escrow if you feel my trust level is insufficient for this arrangement.
Escrow holder to be agreed upon by both parties and all escrow fees to be paid by winning bidder.

In full disclosure I have made a previous deal to sell this share of Silver Wallets to a partner of KGB2Mining in the amount of $20,000 50% of which to be paid as a down payment and the balance to be paid over the course of 2015 in increment payments. A stipulation in this agreement was that any partnership disbursement made would be paid to me reducing the balance however not changing the monthly payment only changing the amount of time for payoff. Unfortunately that partner had a death in the family and asked me to hold off until after the holidays to give him time to wrap up his personal affairs. At this time he still has been unreachable so I am moving forward with this auction. Should he contact me and move forward with the original deal prior to the auction ending this auction will be canceled, and I will ask him to personally cancel the auction by posting from the kgb2mining user name.

Buy it now price $20,000 which can include the same arrangements I previously made with kgb2mining partner.

Please keep in mind I love this project, I love these coins, and it is very difficult to walk away from this. Thank you for looking and happy bidding.

http://i183.photobucket.com/albums/x36/fukphotobucket0029/eca65e55-e0db-446c-967f-f982fd58104a_zps8794dd03.jpg [IMG]

Not even any questions or comments? That has to be a first.

Is selling to the other partners an option?

Two day auction is crazy for something this big.

I might have been interested but there's no way that I can make an informed decision on this short of time.

 If it's a true partnership, any buyer is going to want to read the partnership agreement and speak to the other partners.  If the other partners want to diversify into bars, gold coins, base metal wallets, and accessories then it sounds like additional capital may be needed.  Certainly not something to get into on a whim.

That said, I love the Silver Wallets....and will be a customer as they expand.

GAAP reporting requirements state that inventory should be valued at either it's market level or it's cost (whichever is less). (source (http://www.investopedia.com/ask/answers/05/070105.asp)). Would you mind providing the cost of the Silver Wallet inventory?

Another metric that would likely give potential bidders information as to how much your share might be worth would be how profitable your company is.

Market price in regards to GAAP is the middle price between replacement cost, Product minus selling expenses (such as commission, NOT cost of production), and product minus selling expenses minus expected $ profit.

Example:
$110 sales price - $5 commission = $105
$100 replacement cost = $100
$110 sales price - $5 commission - 20% profit = $83

Market price is $100. You take the lower of market price and whatever it actually cost you to buy your inventory.

i have no problem answering any of these questions.

Costs are significantly lower now as all of the start up costs like dies and holograms etc have been purchased. All of these questions would have to be answered to the winning party. I don't think any winning bidder would want all of the costs/profit margins etc discussed here openly on the forum for permanent review.

I will repost auction for seven days. Any seriously interested parties can ask me whatever questions they would like to make an informed decision via private communication.

I wondered where you had got to !

Is location of the partner important ?

ie All 3 of you are US based. Is it 'expected' that the next partner will also be US based, or would an alternate geography for a new partner be seen as an opportunity for new markets ?

Actually an abroad based partner probably would be a great idea. We could drop ship you product and you can ship direct which would help cut time and cost.

Are you still planning this? Just curious..

The issues of GAAP are not the problem here... firstly BTC demands IFRS reporting if any but the issue in my opinion is the complete lack of P&L. There is no info. on revenue/expenses which are key for a project like this.

Potentially interested, but like other posters said, way too short of a time frame. Even 7 days is pretty rushed.

A few starter questions to get the ball rolling:

Is the business incorporated, and if so, in which country/region?

How many other shareholders are there, and what portion of shares do they currently own?

I'd also want to see all of the finances going back to the very beginning before placing a bid.

Yes. Sorry been traveling like crazy.

It will be posted for seven days. If you're interested please prepare your questions and send them in a PM (this goes for all bidders). I am not going to post all of the financials on here for everyone to see. That would be suicide for the business going forward. Everyone knowing cost of entry, cost of product etc.
We operate as a DBA under an LLC I already own. This is registered in the State of Ohio. A filing fee of $125 to repurpose an LLC can be deducted from sale price to remove me ad separate the two.
Blazedout419- 25%
Alex Dearth- 51.5% (willing to sell % points at same rate of this auction so as not to have a controlling interest. Winning bid will be divided by 23.5 giving a final cost of each % point and buyer will have option to buy 2.5% from Alex to reduce controlling interest)