FinancialsAs shareholders or potential shareholders you deserve to know exactly what is happening with company funds. Thus, RSM has committed itself to being a better about our financials. This post is designed to inform shareholders of our financial plan and allow them to see where and what we plan to do with our funds.
To help demonstrate the basics of the system we have created a diagram which over time will get more and more complicated as we expand into a bigger business. But the basics of the system are in the diagram.
So following the diagram you can see Revenues box with the Revenues input/output. Basically our revenues are going to be any and all mining income we receive from our active hardware. With that money we will pay for our operational costs which include hosting fees, electric costs and all the little things that go into running a business except labour.
From whatever is left of this 5% will be taken to pay for labour. By doing this we ensure a fixed labour cost that rises and falls with the companies fortune. We do not have to commit to expensive salaries and remain able to offer top talent equity in our company. While giving them the incentive to be profit motivated as extra revenue will equate to extra compensation. Any unused labour funds will go into our re-investment fund. Currently we are paying 60% of the salary fund into the share buy back fund. Share buy back of course helps current shareholders by raising prices of the remaining shares on the market.
Diagram of Financial PlanAlso in the revenues column is Pyramining. RSM has made an investment into Pyramining. They are a company with her own custom ASIC (unfortunately not for sale) who has a history of bringing bitcoin mining hardware online. Pyramining's operations are used to pay investors back with bonus which can be increased by investors using our referral links. Previously RSM had made an investment into Pyramining and we plan to re-invest the payouts back. This will increase our holdings. As holdings are essentially stable, it provides us with a reliable income stream for the future that will persist even if our mining operations end up going "belly up." Additionally it gives us an avenue for future recapitalization. If you decided to invest in Pyramining head over to our Investor's Page and utilize our referral links. We've currently got 6 active referrals.
So after we have paid our costs from the revenue what we have left is profit. RSM will take 90% of this profit and place in in our re-investment fund which will go towards things like increased mining hardware and other potentially profitable ventures.
The last 10% will go into the Dividend Fund and be distributed out to our shareholders via Burnside's exchange.
We plan to create a financial summary every month that will come out with dividends and a full financial statement every quarter (in lieu of that months financial summary) so that you can view in more detail how we are doing.
Just like in a football game half time adjustments are sometimes necessary, RSM is committed to making the best adjustments that we can. But we could use your help. Leave us a comment below or on our Bitcointalk thread and it will get read and considered. We thank you in advance for your input.
See
diagram.
