-

[grnbrg]

LR has let me know he is at the lawyer's office. 

<grnbrg>If the Q&A doesn't start exactly at the top of the hour, it will be Real Soon Now.</grnbrg>



grnbrg.

[Lab_Rat]

I am at my lawyer's office set up and ready to go.  We will begin answering questions in the next few minutes.  There was an emergency out of town this week that resulted in my not being able to post the contract.  It is going out at the beginning of this AMA.

Contract: https://drive.google.com/folderview?id=0BwZCh0jtSZkwMUMxUURqdGNGT0k&usp=sharing

No legal advice will be given during this AMA.  We are not creating any attorney client relationships.
Please try to keep your questions specific to allow for short yet precise answers.

Any questions asked after this point will be answered in order of post.  Keep your language clean or I reserve the right to skip over it.

-----------------------------------------------------------------------------------------------------------------------------------------------------------

[daemonfox]

1.) Why haven't you been able to tell us anything?
2.) What law restricted you from telling us?
3.) Why has it taken so long for your lawyer to give you any information if this issue has been known about for 4+ months?
4.) What happen to the ASIC Project? How much was spent, and from what pot of money?
5.) Will you be firing your lawyer once this legal issue is resolved? If not, why?
6.) Which ASIC manufacturers have you spoken to/signed deals with and are moving forward with? What are your plans for future hardware purchases?
7.) What have you been doing with the new hardware you've had for months? When can we expect to receive those dividends?
8.) What's going to happen with the old/new bonds (or shares, or contracts, or whatever they are called now?)
9.) How much work have you put into the trading platform which was your number one priority? How far are you done, and when can we expect it to be finished?
10.)Can you please provide a full list of bitcoin mining address'
11.)What percentage of the 25% is allotted as a management fee? Since it's all the same for LR's pocket, can we replace the management fee with an issuance of "bonds" to LR that equate to the avg fee% instead - say 5-7% of total bonds - this would provide transparency of your FIXED % fee's and give you an increased incentive to produce
12.) Can you please provide photographic evidence of all equipment currently in service for LRM bondholders.
13.) Why has the contract not been provided in a timely manner?

This and,

14. Is there an agreement in place or under negotiation with a State or Federal authority which defines the financial instrument that was originally issued by LRM? If so, what is the legal basis of the financial instrument issued? And, kindly disclose the agreement or a point form summary of the negotiations if an agreement has not been reached
15. Will you voluntarily disclose the financials of LRM and the related companies you have incorporated if there have been any disbursements from LRM to said companies?
16. Would you be prepared to have a private conference call(s) with a group of larger bondholders? Identities would be verified via signed BTC message or RL details if available

Also, as a general note, this place is a shit show for this kind of conversation. LRM requires some method which permits disclosure of confidential information to bond holders. kryptokit provides for secure messaging via bitcoin address - there may be others that provide for this function via a defined group - not sure. In any case, I suggest all communications regarding LRM and its confidential business dealings be removed from this forum and set up somewhere else where the participants are vetted bondholders.
 

1a.) Why can't you even provide a weekly breakdown of dividends anymore???

These^^

[grnbrg]

While people are digesting that, there are these:

1.) Why haven't you been able to tell us anything?
2.) What law restricted you from telling us?
3.) Why has it taken so long for your lawyer to give you any information if this issue has been known about for 4+ months?
4.) What happen to the ASIC Project? How much was spent, and from what pot of money?
5.) Will you be firing your lawyer once this legal issue is resolved? If not, why?
6.) Which ASIC manufacturers have you spoken to/signed deals with and are moving forward with? What are your plans for future hardware purchases?
7.) What have you been doing with the new hardware you've had for months? When can we expect to receive those dividends?
8.) What's going to happen with the old/new bonds (or shares, or contracts, or whatever they are called now?)
9.) How much work have you put into the trading platform which was your number one priority? How far are you done, and when can we expect it to be finished?
10.)Can you please provide a full list of bitcoin mining address'
11.)What percentage of the 25% is allotted as a management fee? Since it's all the same for LR's pocket, can we replace the management fee with an issuance of "bonds" to LR that equate to the avg fee% instead - say 5-7% of total bonds - this would provide transparency of your FIXED % fee's and give you an increased incentive to produce
12.) Can you please provide photographic evidence of all equipment currently in service for LRM bondholders.
13.) Why has the contract not been provided in a timely manner?

This and,

14. Is there an agreement in place or under negotiation with a State or Federal authority which defines the financial instrument that was originally issued by LRM? If so, what is the legal basis of the financial instrument issued? And, kindly disclose the agreement or a point form summary of the negotiations if an agreement has not been reached
15. Will you voluntarily disclose the financials of LRM and the related companies you have incorporated if there have been any disbursements from LRM to said companies?
16. Would you be prepared to have a private conference call(s) with a group of larger bondholders? Identities would be verified via signed BTC message or RL details if available

Also, as a general note, this place is a shit show for this kind of conversation. LRM requires some method which permits disclosure of confidential information to bond holders. kryptokit provides for secure messaging via bitcoin address - there may be others that provide for this function via a defined group - not sure. In any case, I suggest all communications regarding LRM and its confidential business dealings be removed from this forum and set up somewhere else where the participants are vetted bondholders.
 

6, 7 and 9 would be of most interest to me...



grnbrg.

[smracer]

How many Monarchs do you have on order?  

How much electricity do you have at your warehouse?  How many AMP service?

[mmmerlin]

Regarding the contract, please state what is the case if we do not agree with the terms given.

[dooferorg]

Regarding the contract, please state what is the case if we do not agree with the terms given.

Since LRM already took our BTC, it seems we are forced to accept. The 'All purchases are final' bit.

Well, I didn't know I was 'purchasing' a crappy amount of hashing power for 4BTC

I am not sure how people can legally be forced into accepting these 'new terms and conditions'.

I, for one, want my BTC back. I don't care that the dollar amount has changed. 1 BTC then is 1 BTC now.

[Flashman]

IF YOU DO NOT AGREE WITH THESE

TERMS, DO NOT ORDER/KEEP YOUR PRODUCT. THE FINAL PLACEMENT

AND COMPLETION OF BUYER'S ORDER IS CONTINGENT ON BUYER'S FULL

ACCEPTANCE OF THE TERMS AND CONDITIONS IN THIS AGREEMENT.

Okay then, I'll regard my order as not complete, please return BTC purchase price of my shares.

[daemonfox]

Any bonus hashrate declared by the company will be SOLELY at the company's discretion.

That is not the spirit of the original agreement... it is not SOLELY at LRMs discretion... original bonds were sold as GUARANTEED growth as hashrate was added. I fail to see how you can legally change this on a whim... if it was not legal for you to sell those types of bonds... then full refunds for not accepting these new "terms" are in order.

Please elaborate on how you expect us to accept "SOLELY at the company's discretion."

[Flashman]

Also prior ad-hoc withholding of dividends for hardware has created "owed" dividends or hashrate, not discretionary bonus.

[smracer]

Slowest AMA ever.  Hurry up I have to be at the gym in 26 minutes.

[karusloom]

lol, they're trying to find loopholes for the questions in they're own contract. LRM let keep it civil and please return my BTC

[mmmerlin]

Regarding the contract, please state what is the case if we do not agree with the terms given.

Since LRM already took our BTC, it seems we are forced to accept. The 'All purchases are final' bit.

Well, I didn't know I was 'purchasing' a crappy amount of hashing power for 4BTC

I am not sure how people can legally be forced into accepting these 'new terms and conditions'.

I, for one, want my BTC back. I don't care that the dollar amount has changed. 1 BTC then is 1 BTC now.

To avoid spamming the thread and also defeating the purpose of the ama, please don't answer questions for him.

You saying that all purchases are final is meaningless, as this is a change of the terms, and this cannot be done without agreement. It is of critical importance for him to state what happens if people reject the new terms.

[dooferorg]

Regarding the contract, please state what is the case if we do not agree with the terms given.

Since LRM already took our BTC, it seems we are forced to accept. The 'All purchases are final' bit.

Well, I didn't know I was 'purchasing' a crappy amount of hashing power for 4BTC

I am not sure how people can legally be forced into accepting these 'new terms and conditions'.

I, for one, want my BTC back. I don't care that the dollar amount has changed. 1 BTC then is 1 BTC now.

To avoid spamming the thread and also defeating the purpose of the ama, please don't answer questions for him.

You saying that all purchases are final is meaningless, as this is a change of the terms, and this cannot be done without agreement. It is of critical importance for him to state what happens if people reject the new terms.

I agree. Read the entirety of my posting.

[rustyh17]

LRM,

This contract appears only to address the 100MH/s contracts being issued from here forward.

Please tell us how you intend to migrate existing contracts into this contract version. This is a
very clear change in your companies' growth and dividend philosophy. There must be some sort
of grand plan in place to migrate existing contracts to keep your investors as whole as possible
given their initial investments.

Please explain.

Thanks,

Rustyh17

[DemocraticRepublicOfDave]

Hi LabRat,

Ok have just printed off and skim read the contract...

Two initial questions come to mind:

All investments are at the customer’s sole risk. You should not purchase contracts if
you do not understand the terms and conditions. By purchasing a contract you are
acknowledging that you understand the investment, accept the risks inherent in any
investments, and specifically the risks of this investment.

Q1) Given that I am already a contract holder prior to these terms and conditions.  How could I have understood and accepted the terms and conditions prior to purchase.

Basically if I refuse to accept these terms and conditions what options are you offering me?

Q2) Given that we have just received the contract, I would really like to digest it for 24 hours as I may come up with follow up questions.  Would you consider scheduling another Q&A session with lawyer present later next week?

Cheers

Dave

[Lab_Rat]

1.) Why haven't you been able to tell us anything?
2.) What law restricted you from telling us?
3.) Why has it taken so long for your lawyer to give you any information if this issue has been known about for 4+ months?
4.) What happen to the ASIC Project? How much was spent, and from what pot of money?
5.) Will you be firing your lawyer once this legal issue is resolved? If not, why?
6.) Which ASIC manufacturers have you spoken to/signed deals with and are moving forward with? What are your plans for future hardware purchases?
7.)a What have you been doing with the new hardware you've had for months?b When can we expect to receive those dividends?
8.) What's going to happen with the old/new bonds (or shares, or contracts, or whatever they are called now?)
9.) How much work have you put into the trading platform which was your number one priority? How far are you done, and when can we expect it to be finished?
10.)Can you please provide a full list of bitcoin mining address'
11.)What percentage of the 25% is allotted as a management fee? Since it's all the same for LR's pocket, can we replace the management fee with an issuance of "bonds" to LR that equate to the avg fee% instead - say 5-7% of total bonds - this would provide transparency of your FIXED % fee's and give you an increased incentive to produce
12.) Can you please provide photographic evidence of all equipment currently in service for LRM bondholders.
13.) Why has the contract not been provided in a timely manner?

This and,

14. Is there an agreement in place or under negotiation with a State or Federal authority which defines the financial instrument that was originally issued by LRM? If so, what is the legal basis of the financial instrument issued? And, kindly disclose the agreement or a point form summary of the negotiations if an agreement has not been reached
15. Will you voluntarily disclose the financials of LRM and the related companies you have incorporated if there have been any disbursements from LRM to said companies?
16. Would you be prepared to have a private conference call(s) with a group of larger bondholders? Identities would be verified via signed BTC message or RL details if available

Also, as a general note, this place is a shit show for this kind of conversation. LRM requires some method which permits disclosure of confidential information to bond holders. kryptokit provides for secure messaging via bitcoin address - there may be others that provide for this function via a defined group - not sure. In any case, I suggest all communications regarding LRM and its confidential business dealings be removed from this forum and set up somewhere else where the participants are vetted bondholders.
 

1a.) Why can't you even provide a weekly breakdown of dividends anymore???

These^^

1. Highly unspecific
1a. 100% of the hashrate under the Current Hashrate heading via the website is being paid out.  Therefore the coins mined and coins paid out are the same.
2. No legal advice is being given.  The consults with our attorney are private.
3. It hasn't been known for 4+ months, and legal work does take time.
4. The ASIC project that you're referring to had great promise, but was purchased by a different company before LRM could or would've become involved.  $0 spent.
5. It is LRM's intention to gain additional legal representation for cases where the present legal representation is overextended.
6. Spoken to: All, but Avalon. Signed deals with: Bitfury and (unfortunately) BFL.  There are a couple others that seem promising when funds become available.
7a. The BitFury hardware I believe you're referring to has been in just over A month, not months.  The hardware is still in the process of being put online as there have been multiple delays.  These delays include but are not limited to, AC failure, transformer explosions, fiber cuts, etc.
7b. We expect the distributions payable on the equipment to the current contract-holders in approximately two weeks from tomorrow.
8. People who chose to stay under the original contract will continue under the original contract or switch to the new contract as they chose. Nothing is going to "happen" to the original contract.
9. LRM has determined that running our own trading platform within the US has legal issues we are not willing to undertake.  There is a trading platform being developed by a third party that LRM has knowledge of which we find may be beneficial to everyone.
10. Due to security issues involved with providing addresses, this is not something we are willing to do AT THIS TIME.
11. This is something that we will look into, but please be advised that LR has been taking far less than your suggested amount.
12. This can be done, and I will advise when the pictures are being posted.  This will likely not happen today.
13. Explained in the AMA starting post.
14. We're not providing any legal advice.
15. I will not disclose the financials of LRM, but will confirm that LRM has not funded any other companies.  
16. I have already had calls with most of the large contract-holders.  This should not be an issue.

[Lab_Rat]

How many Monarchs do you have on order?  

How much electricity do you have at your warehouse?  How many AMP service?

I can't answer about the Monarch's due to contractual obligations until that order has been fulfilled.

Combined between hosting locations there is a total of 2400A 3phase.

[Lab_Rat]

Regarding the contract, please state what is the case if we do not agree with the terms given.

Answered in the bulk questions between daemonfox, BKM, and sparky999.

[Lab_Rat]

Regarding the contract, please state what is the case if we do not agree with the terms given.

Since LRM already took our BTC, it seems we are forced to accept. The 'All purchases are final' bit.

Well, I didn't know I was 'purchasing' a crappy amount of hashing power for 4BTC

I am not sure how people can legally be forced into accepting these 'new terms and conditions'.

I, for one, want my BTC back. I don't care that the dollar amount has changed. 1 BTC then is 1 BTC now.

Please do not answer questions with false information.

You are not forced to accept.

Your personal opinion.

You are not forced to accept.

Your personal opinion.