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[countduckula]

Sorry, but no, im not patient anymore. Waited 6 weeks and you come up with this when this was our month to launch.

As part of what your Defense of your work, you thought moving a Million dollars would be easy? you thought starting this up was going to be plug and rest?

You were naive as hell if you thought that, it was your task we paid for it, nothing was free, you put up the terms and we agreed, it wasnt backwards, we didnt force you to anything, it was all your math and offering, you dont get an award for sticking up, it was your commitment with us, and you did as best, poorly in the comunication field, as far as the rest, ive no idea, i just know i lost 90% of my invested bitcoins.

[1714466704]

1714466704

[1714466704]

1714466704

[Ashitank]

First of all, to get that, he should have reached us when this "legal" problems came, that way, we can work out a solution, as he claims he's been on this for weeks and we just got the "screw them" solution.

I've different definitions of his management in general, let alone a huge dissapointment on the "solution" he never tried to discuss, he just posted it.

Your average company isn't as vocal or caring as I've been for the last 8 months.  They give the "screw you" solution whereas I have stuck by my contract-holders through countless hurdles including delayed hardware, bitfunder closing, and countless other issues that have occurred behind the scenes and publicly.  I have bit the bullet on many issues that have negatively effected me.  Please try to be patient as more information is released over the next week or two.

Lab_Rat when there is a situation like you are dealing with that you were aware of few weeks/months back , you should have kept all investors informed right from the very beginning at the same time when you were sharing the promise of future growth plans for LRM & future hashrate prospects.

I hope you are able to understand how empty & fake you & your future hashrate promises appear now knowing what you knew few weeks back.  I still don't understand why are you so afraid & appear to be in fear when comes to sharing bad news with investors , if you were open about this you would have had much better response than what you have now. I hope you have learned some thing from this {Dont live in fear} .

Unless you are in here to cheat us all.

[||bit]

There are issues with a percentage being considered shares and a contract being considered a sale.  I will attempt to clarify more over the course of next week when I have more legal documentation to explain.

Also, I've done the math and liquidating the company's assets will turn out worse for the contract-holders as well as myself (rather than paying out "dividends").
Hardware just doesn't sell for what it did in may 2013......

Thanks for addressing this, even if it was minimal. Because even that little kinda makes sense already, but I will wait for you to clarify. By the way, one other way this can be configured is to revamp and call yourself a hosting service. That way, ALL problems of dealing with contracts, bonds or shares are solved.

So, I think the most important thing going on here isn't what is a share or bond or a contract. Because something can be figured out to keep the dividends fair as expected.
The tripling of "bonds" or if you want to call them "contracts" resolves it, for now.

But what really seems the most important issue, is what is up with the 156TH you had planned to put online this month. You haven't said that that is any different, so, I expect it will go live sometime this month...That is what really seems to matters right now, and also the potential in view for new hardware purchases.

And then, when the 156TH goes live, what will you do with the payout schema? Send out 7 bonds/contracts for each of the 3 bonds/contracts that were given for original single bond/contracts?

Also, is the 1PH by year end still an easy target?

[VinceSamios]

There are issues with a percentage being considered shares and a contract being considered a sale.  I will attempt to clarify more over the course of next week when I have more legal documentation to explain.

Also, I've done the math and liquidating the company's assets will turn out worse for the contract-holders as well as myself (rather than paying out "dividends").
Hardware just doesn't sell for what it did in may 2013......

I've sent you a PM about this -

You can buy a web hosting contract with 10gb disk space, and the web hosting contract can increase your disk space to 100gb in order to stay competitive and provide a valuable product for what you've paid. This is the route LRM should go down.

[sparky999]

There are issues with a percentage being considered shares and a contract being considered a sale.  I will attempt to clarify more over the course of next week when I have more legal documentation to explain.

Also, I've done the math and liquidating the company's assets will turn out worse for the contract-holders as well as myself (rather than paying out "dividends").
Hardware just doesn't sell for what it did in may 2013......

There is no  issue with a contract being called a sale in virtually any jurisdiction in the world Zach. Cell phones anyone?

The only way this is going to end is with a lot of lawsuits for breach of contract.

[a2offrb]

LabRat:
Is there any new hardware delivered?

Based upon recent developments in US and local laws, Lab Rat Data Processing, and their legal representatives, have determined a potential current or future problem with its current rate structure, which was originally intended as a variable rate payout. Therefore, Lab Rat Data Processing is amending its variable rate payout with a set rate payout of 100 MH/s per contract. This rate payout shall be for all current contract-holders and all future contract-holders.  Contemporaneous with the change from a varying rate payout to a set rate payout Lab_Rat will triple the amount of contracts held by all contract holders as of the date of March 8, 2014.

LabRat, u have 1 week to solve this shit until next dividends.
Also answer about new hardware. Or u have put it already on LAB RAT HOSTING SERVICES, L.L.C.?

Because every time u order something from BF its late with delivery. So i think that u have already received new hardware. Waiting "week or two" is not the option.

[fractal02]

 Please try to be patient as more information is released over the next week or two.

You think we haven't be enough patient with you huh

I invested more than 24 BTC for 72gh/s....are you kidding...after all the Time the bondholders wait with your false promise, your lack of communication....

And now new hardware is coming and you'll issue new bonds? How easy....

Yes, you are a liar because you Know about That situation month ago and you promise new TH/s, you bought new hardware, you premined the f**k out for more than 2 week at the 1000 $/BTC rate.

If this just à bond definition, split with futur hashrate, no problem.
But if you want to f**k us, this is the good move, but be prepared to be sued and blacklisted in the bitcoin community.

[karusloom]

I dont have any words to say anymore... first i got goxed w lil over 30k euros and am waiting a solution from them and now i'll be waitin a solution from LRM. Guess i wont be making money this year.

[xuyongpku]

Labrat, your bond's price is so low after the BitFounder closed, because it lack of liquidity. I suggest you put the bonds on the exchange such as havelockInvestment. So that you can sell more bonds to purchase hardwares like before, win-win of us.

[VinceSamios]

Before: Highest Bid: 0.062
After: Highest Bid: 0.0005

Adjusted for 3 x increase in bonds = 0.004

Each bond is suddenly worth 15.5 times less.

Fuck that - I'm not standing for it. This is going to raise hell.

[Flashman]

There are issues with a percentage being considered shares

Issues for you maybe, understand that this is how we will get the courts to take everything from you if you cannot come up with a better solution.

[Komodorpudel]

As everybody should have realized after reading the last few pages:

LabRat; you will get sued (not by me or many others wo invested, but by investors who paid large amounts of BTC for a lot of SHARES); so fixing the "shares" at 300MH/s has to be out of option.
Also you would probably lose that lawsuit, because everything at this 173 page long thread indicates: "You are buying a share/stock or lets call it a "mining contract" in this company(LabRat), which intends to increase its value."
and not "You are buying a product which gives you xxx mh/s"

------------------------------------------------------------------------------------------
The Offiicial Announcement for LabRat:
"It is intended installments in the operation will continue to occur which will provide more value to the company as well as more value to each individual bond as the company matures.
These expansions, if they occur, will likely grow the company and our mining capacity in size which will provide further expanded payouts in the form of dividends (or increased dividends to investors).
It is currently intended a portion of the money the company receives in revenue from bond sales and mining will be used to expand the operation which will further increase dividends per bond.
It is currently intended the company will be adding to the bondholders hashrate on a regular basis as the company expands so one should expect to receive greater dividends than those explained above."

There is also written this sentence: " it is intended these bonds will increase in hashrate per bond over time as an additional added bonus to the purchasers (although this is not guaranteed)."--->
this basically gives you the right to fix the hashrate per share, but everything you wrote after the ipo gives the expression that you will continually increase the hashrate( e.g. keeping 25% for increasing the hashrate)
------------------------------------------------------------------------------------------

But honestly; nobody wants to get involved in a lawsuit, so we need to find another option and at the moment i see only two options:

1. LabRat continues business with another legal structure, where every bond holder now gets a shareholder from the former Lab Rat Data Processing, LLC.
    But this requires that LabRat really wants to continue this business;
   
    I personally believe that this is the best option; when all shareholder pull together, this can really be a profitable business.

2. LabRat steps aside and someone else continues this business, maybe in another jurisdiction, while Lab_Rat still keeps his shares in the new company.



Either way, as already said: Fixing the hashrate per share is not an option, because nobody will get lucky this way; not the shareholders because they will never get their money back and not LabRat because he will get sued, this is guaranteed.

[Flashman]

Also, I've done the math and liquidating the company's assets will turn out worse for the contract-holders as well as myself (rather than paying out "dividends").
Hardware just doesn't sell for what it did in may 2013......

It also doesn't earn what it would have in May 2013... 6 month projections at 20% difficulty rise have 300Mh earning about 0.002 BTC total. Faced with this practically certain knowledge, bondholders would be highly delighted to cut out the risk of your further non-performance and attempt to get "in hand" prices on current hardware, which have been known to exceed 6 month earning projections.

[VinceSamios]

Lab Rat is paying around $4/GH for the 150TH of bitfury hardware....

Which makes bonds worth $0.40 each...

[Frankthechicken]

Also, I've done the math and liquidating the company's assets will turn out worse for the contract-holders as well as myself (rather than paying out "dividends").
Hardware just doesn't sell for what it did in may 2013......

It also doesn't earn what it would have in May 2013... 6 month projections at 20% difficulty rise have 300Mh earning about 0.002 BTC total. Faced with this practically certain knowledge, bondholders would be highly delighted to cut out the risk of your further non-performance and attempt to get "in hand" prices on current hardware, which have been known to exceed 6 month earning projections.

I would not agree with liquidating in hand hardware to pay off bondholders when there is a pile of BFL equipment coming and presumably a pile of BF equipment coming that bondholders SHOULD benefit from.

No one wins in that situation.  There would be heaps of drama with that situation and I think we can all work on a solution that doesn't involve drama.

I'm hoping LR is still looking for a way for the inbound equipment to benefit bondholders.

[contactmike1]

If things are not easily resolved, then the solution is to operate the company with the cap, and use the bitcoin earned to start buying out bonds at some "fair" rate.  In this model, the number of bonds outstanding will always shrink which will help against shrinking divs, and the folks who are more patient will get these extra dividends as less patient people exit. LRM should be able to keep adding hardware with the 25%, so after extended time, everyone would be bought out.  This could be done by posting low asks in the trade forum, and keep raising it as more bitcoin is available.  The longer people are willing to wait, the more btc they can get for their bonds.  It's not perfect, but it means at least some people can get out.  Those willing to take the most risk and wait longer are rewarded with higher exit payouts, if LRM survives that long.

[||bit]

Lab Rat is paying around $4/GH for the 150TH of bitfury hardware....

Which makes bonds worth $0.40 each...

I'm not sure how you did the math. But the basis of how much Labrat bought GH for is not as important as how much it can be sold for.
Current examples:

CEX.IO market shows 1 GH selling for ~BTC0.02
https://cex.io

Dave is leasing 1 GH for BTC0.04
https://megabigpower.com/shop/index.php?route=product/product&product_id=68

[||bit]

Labrat.

See this post and reply please.

https://bitcointalk.org/index.php?topic=251423.msg5600207#msg5600207

[fractal02]

CEX.IO market shows 1 GH selling for ~BTC0.02
https://cex.io

Dave is leasing 1 GH for BTC0.04
https://megabigpower.com/shop/index.php?route=product/product&product_id=68

Price for Dave on PicoStock is lower... see here : https://picostocks.com/stocks/view/19

Price drop a lot because he announced lately than they don't add anymore Hashrate...

[Flashman]

Found an almost exact analogy...

http://en.wikipedia.org/wiki/Community_Shared_Agriculture

The way those work here is you buy a "share" in the commodities produced by the farm and each week you get your share of production. The people who buy shares don't own the farm, just it's output.

Find legal basis for those, structure LRM accordingly.