Latest SEC financial filings for BTCS:
https://www.sec.gov/Archives/edgar/data/1436229/000149315215005382/form10-q.htmSome interesting points, although these are my interpretations and could be entirely wrong:
1) Now $1.2M in stockholders deficit (Item 1)
2) Mined just $169k in Q3, which is very roughly 1PH
3) At the same time, managed to accrue another $4.1m in "administrative expenses". That's $7.8m in the first 9 months of 2015.
4) And where does most of that go? $6.38m on "Stock based compensation". So at least some of them are doing okay (more in 14)).
5) They held just $61k in digital currencies.
6) Cash flow was -$2.7m, which was cancelled out by "the issuance of Private Placement Units".
7) There was a working capital deficiency of $3.4m
8 ) Seems the Israeli side is also holding things up: "In addition to standard closing conditions, the closing of the Transactions will not occur until the Selling Shareholders receive rulings from the Israeli Tax Authority confirming, among other things, that the Selling Shareholders may defer the payment of applicable Israeli taxes....".
9) They need money:
Significant uncertainties include, among others, whether the Company will be able to raise the capital it needs to finance its longer term operations and whether such operations, if launched, will enable the Company to sustain operations as a profitable enterprise." ... "The Company will require significant additional capital to sustain its short-term operations and make the investments it needs to execute its longer term business plan. The Company’s existing liquidity is not sufficient to fund its operations and anticipated capital expenditures for the foreseeable future. If the Company attempts to obtain additional debt or equity financing, it cannot provide assurance that such financing will be available to the Company on favorable terms, if at all.
Because of recurring operating losses, net operating cash flow deficits, and an accumulated deficit, there is substantial doubt about the Company’s ability to continue as a going concern. The condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has not made adjustments to the accompanying condensed consolidated financial statements to reflect the potential effects on the recoverability and classification of assets or liabilities should the Company be unable to continue as a going concern."
10) We're not making money
"The Company expects to incur losses into the foreseeable future as it undertakes its efforts to execute its business plans."
11)
The Company continues to incur ongoing administrative and other expenses, including public company expenses, in excess of corresponding (non-financing related) revenue. While the Company continues to implement its business strategy, it intends to finance its activities through:" ***my cheeky addition**** "not paying its debts
11)
On January 23, 2015, the Company purchased 100 Spondoolies S35 digital currency mining servers from Spondoolies Tech Ltd. (“Spondoolies”) for $223,500 (the “Purchase Price”) pursuant to a purchase order agreement (the “Purchase Agreement”).
12) Something looks weird with the Coin Outlet transaction (note 8 ). On March 26th 2015 they purchased an additional 2% equity of Coin Outlet Inc. 5 days later, on March 41st 2015 they decided that the investment is not recoverable due to uncertainties in the BTC price. The price (according to coindesk's index
actually rose over that period from $245.01 to $246.99. To me, that doesn't make any sense.
13) Spondoolies received $1.5m of cash on May 12th 2015, yet still won't pay.
14) At least we can line our own pockets with $1m+ a month:
Stock-based compensation expense was $3,629,804 ... for the three months ended September 30, 2015... . Stock-based compensation expense was $6,383,772 ... for the nine months ended September 30... .
15) Yeah, sure you are.
"We are dependent on our ability to retain short term financing and ultimately to generate sufficient cash flow to meet our obligations on a timely basis in order to attain profitability".
16) A statement showing that my debt is being declared as within the balance sheets:
We are not a party to any off balance sheet transactions. We have no guarantees or obligations other than those which arise out of normal business operations.
17) Hmm
ITEM 1 Legal Proceedings
None.
