Does Romania have very different accounting reporting standards? (Do you have accountants/finance people?)
Nah, it's really two coconut halves and we're banging them together.
In Revenue and Expense in the MPOE section, when you list Contracts Sold/Bought/Exercised, is that BTC amount revenue made on the trading fees?
MPOE is the options trader. As a result, the BTC amount is revenue/expenditure on the actual contracts bought or sold. If someone sells the bot 100 CALLs at 1 BTC each then the bot has just expended 100 BTC. If someone buys 100 PUTs at 2 BTC each then the bot has 200 extra revenue. These are added up and reported.
Options trading done by MPEX themselves as if they were just an investor?
This is the confusing part, I bet. MPOE is the options trader, just that. MPEx is the exchange itself, just that. These two were independent entities, and were conglomerated in April, by means of MPOE buying MPEx, and creating a single entity which trades under the S.MPOE symbol and reports revenue/expense separately but at the same time.
I can't figure out what the final -1,961 loss actually means in context.
MPOE made some money selling options and exercising options sold to it by customers. MPOE also spent some money, buying options, paying exercises against its sold contracts by customers, and paying for the capital to back all this trade up. So to revisit November numbers:
Revenue : 25`553.98115344 BTC, of which :
(this means overall MPOE received a total of 25`553.98115344 BTC)
contracts sold : 23`577.52108954 BTC
(of which by means of selling contracts 23`577.52108954 BTC)
contracts exercised : 1`976.4600639 BTC
(and by means of exercising against customers 1`976.4600639 BTC)
Expenditure : 27`515.29937379 BTC, of which :
(this means overall MPOE paid a total of 27`515.29937379 BTC)
contracts bought : 21`642.46998797 BTC
(of which by means of buying contracts 21`642.46998797 BTC)
contracts exercised : 1`788.83386582 BTC
(and by means of customers exercising against it 1`788.83386582 BTC)
capital expenses : 4`083.99552 BTC (41`252.48 x 9.9%)
(and to pay the bondholders 4`083.99552 BTC, which is 9.9% for the month over a 41`252.48 BTC capital base)
This all comes to : -1,961.31822035 BTC, overall. On the strength of its trade, MPOE made 2,122.67729965 BTC in the month of November. This was fully paid to bondholders. 1,961.31822035 BTC extra, which were also needed to pay the bondholders was actually taken out of their bonds (which is how those bonds work, any shortfall is met by the bond capital). So therefore people who deposited 41,252.48 BTC received 4,083.99552 BTC in cash as interest payment and were left with 39,291.1617796 BTC in capital, for a net gain of 2,122.67729965 BTC.
Had the cost of capital not exceeded MPOEs actual results from trade, there would have been a profit there. For instance in September revenue was 17,307.84070878 BTC, expenditure 13,022.03561971 BTC (including capital expenses of 506.18979000 BTC), leaving a profit of 4,285.80508907 BTC which was distributed to shareholders.
The Capital expenses number doesn't really specify what it's for or from, and I can't tie the 41`252.48 number to anything.
From the contract:
(i)MPOE will calculate, retrospectively, at the end of each Reporting Month for that Reporting Month, a capital requirement in the following manner : at every moment a momentary capital reserve requirement is calculated, equal to the total amount paid for bought contracts minus the total amount received for sold contracts plus the largest sum that can be necessary to cover all the contracts sold. The capital reserves requirement for the Reporting Month will be equal to the largest of all momentary reserve requirement calculated during that interval.
That 41,252.48 means that in the worst case scenario, if BTC would have gone either to zero or to infinity, the most that MPOE might have owed would have been 41,252.48. For this reason this sum was retained, to be able to repay customers trading options in any event.
The bondholders table mentions total capital. I'm assuming that is capital held by your company, which was raised through bond sales? (Usually it's lumped together with cash in the assets section, and listed in this section as a liability).
MPOE bonds work a little different from "normal" bonds. Someone interested in participating has to notify (such as via email) the sum they intend to deposit, the address they want payments made to and the interest rate they seek. Once the sum is sent it will figure starting with the next full month (so, sending on the 5th or 19th does the same thing basically). At the end of each month, MPOE calculates how much BTC it would have needed (retrospectively), sorts the bonds ascending by interest rate asked and strikes a line through the one that fills the need. Everyone above the line gets the same interest rate as the last bond accepted. Everyone under the line (including the portion of the struck through bond not needed) gets nothing.
So, armed with that: total capital is always going to be = to the needed sum, as calculated. This list is itemized by receiving address, so people can see themselves on the list. Any shortfall that has to be made up (such as the 1,961.31822035 BTC) is applied proportionally to all bonds listed, and the new list is published (so everyone can keep track of their bonds' value).
the Enterprise Value of the company is just share value * # of shares, or BTC0.000527 * 1,000,000,000 = BTC527,000. That does seem ridiculously unrealistic.
The first part is judiciously correct: MPOE/MPEx retains 0 capital etc. The second part is certainly debatable. On one hand, the open market is the open market. On the other hand, a lot of money is a lot of money. The matter is discussed a little more for instance in the "
Why S.MPOE is worth more than MtGox" article but in the end the truth is we just don't know.
Historically, MPOE existed as a public company and had shares out before MPEx was created. The shares were allocated in batches, using a double blind auction model (the batch size and a cutoff date were announced, then anyone interested would deposit as much BTC as they wanted - very similar to how bonds work, just a 999 ending - and then on the cutoff date the share block was divided proportionally by sums contributed).
There were two such issues (
March and
April. The first batch was 1,000,000 shares, the 2nd 4,000,000 shares. The first went for ~9k satoshi each, the 2nd for ~2.x k each (so in between 20% and 4% of current prices). MPOE.ETF, a GLBSE traded etf and also the highest gain GLBSE asset of all time made ~1200% over its (four month) lifetime by subscribing investor funds and then selling the resulted MPEx shares. The price has been more or less on a growth curve since then, not without its ups and downs.
So, to get back to the original question...I dunno. It is what it is.
On the other hand, if we use the most recent dividend payout of BTC433.9709647
On the yet another hand, September dividends were close to 5k, which in the same model would make it be worth over 800k. The fact of the matter is dividends fluctuate wildly, and possibly investors are attracted by perspectives more than just dividends alone. Still...your guess is as good as mine/ours.
Hope that wasn't too long a read.