Hi guys,

My name is Eric and I'm the guy who prepared the financial statements that Will posted a few days ago. I've taken a bit of time to read through some of the questions that have come up because of the statements and I am providing some answers below.

If anyone has any other questions, post them in the thread and I will answer the next round when I am able to.

Quote from: Blazedout419 on March 02, 2014, 05:10:17 AM

wow you guys must travel first class... 15k for travel and accommodation...

It's worth noting that the financial statements cover the period from the IPO in August until February 3rd, so the amount is not unreasonable. I've taken a look at the various receipts and there is nothing unscrupulous related to travel and accommodation expenses. A large percentage of the expenses are flights to Montreal in order to manage operations and lodging in Montreal for said visits.

---

Quote from: discobean on March 02, 2014, 05:18:04 AM

285k in DC costs? For 8 active Sierras? Each one is 4U, so 32U. How much of this is lining your pockets. What a joke.

Perhaps I should clarify as to what is included in the DC costs line item.

IceDrill has an agreement with the DC that requires a minimum monthly commitment even if there are no units being hosted - this means that the minimum commitment was being paid since October. Now that there are active units, the monthly DC costs will increase slightly. So a portion of the $285K is made up of all the monthly minimum payments that were made even though no equipment was hosted.

In addition to monthly payments to the DC, there were a significant amount of one-time setup costs ($100K+) to have everything setup and prepared for the units.

The combination of set-up costs + monthly DC payments add up to this amount and match up with invoices.

---

Quote from: a2offrb on March 02, 2014, 12:27:24 PM

I dont understand what is "Invest in Cointerra", but i think that after this message someone will tell me about it. Didnt found any info of it.

Investment in Cointerra are shares in the Cointerra company that IceDrill owns.

---

Quote from: Entropy-uc on March 02, 2014, 05:11:03 PM

It seems odd to me that the note on the cash flow statement for payment on the Sierras says:

"As per sales contract"

Cash flow is always done from actual payments. Why did the accountant need to refer to the contract rather than either Bitcoin transactions or dollar payment receipts?

You are correct - cash flow statements are always prepared based on actual cash (or BTC in this case) that has been disbursed or received.

I referred to the contract in order to determine the $USD amount that needed to be included in the cash flow statement - the payment itself was verified with the Bitcoin transaction ID that Ludvig has already posted. The contract did not serve as a proof of payment or anything like that - simply as a means of verifying:

a) the USD/BTC rate that was quoted for the sale
b) that the Bitcoin transaction in questions was indeed to HashFast for the equipment

---

Quote from: Entropy-uc on March 03, 2014, 04:56:27 PM

Was the Hashfast contract actually paid, or is there still outstanding amounts? As you note BTC/USD has changed a lot since the IPO. If BTC were held, they represent a significant gain for INVESTORS, not for a back room deal where Icedrill backdates a sale to themselves.

There are no outstanding amounts owed to HashFast, and the BTC were paid out immediately to buy the equipment - they were not held and the gains were not realized by IceDrill because of this fact.

---

Quote from: jimmothy on March 04, 2014, 08:48:45 AM

Seems a bit deceptive to use a rate of $20/gh. Considering bitmain is shipping devices now for $4/gh.

And how many units are hashing now? The statement says feb 3 so it has been a month now.

Another thing, why is icedrill trading btc on bitstamp? I thought this was a mining operation, not a gambling on bitcoin exchanges fund.

I don't disagree that the CEX.io prices may not be the most accurate, however using a market-based price like that is consistent with what I've been doing for the exchange rate from USD/BTC and is still a relevant price for selling GHs. It was not chosen to deceive anyone, which is why I have been transparent with the rates that I've used.

As for trading on Bitstamp, there were times that Bitcoins needed to be sold for USD and at this point, IceDrill often recognized gains on these trades because the price of Bitcoin appreciated significantly since the IPO. All that the trading revenue means is that once Bitcoins were sold on Bitstamp, the operation recognized some gains because of the price increases. Trading ≠ gambling in this case.