I have decided not to pursue this IPO any further on SL CapEx for several reasons that I will explain here. Note, that I have been thinking about these items for a while which is why I positioned the IPO process with both exchanges. Every platform does not fit every business model so I kept my options open with that in mind.
1. Investor Base
Of course with WSE being the first major stock exchange, not the first but the first major, the investor base is larger and with the inception of Ginko customers, it is more likely that more investors have the ability to invest through WSE than SL CapEx. SL CapEx is a little stifled over the Investor Allen issue and is not as viable as it can be if this was not a factor. While this is a fine setting for an established company, an IPO may not be as successful. I want the product to reach the maximum amount of people at once to make the database more fluid as early on as possible.
2. Equal Opportunity
My prospectus has been in the system for a few weeks now and waiting for deployment. I was told that there were other IPOs ahead of mine that were ready to launch before mine, when I knew that they weren't due to other issues. The most recent IPO was not in the system at all before mine was and was placed before mine because it is a JTF product. I have noticed that the only IPOs that get pushed are the ones with direct gain for Arbitrage Wise. We have seen this in the past failed IPOs and other failed attempts such as the Fantasy Football leagues and such. I do know that the purchase of AVIX was to find investors for JTF businesses and those that Arbitrage have stake in so everyone else pretty much is not the priority. This is his exchange and he has every right to do as he pleases, but I would rather have the LLCA IPO be in an unbiased realm.
3. Usability
WSE has deployed some awesome features that will make running LLCA close to easy. Starting from the beginning with these features will set the standard and not make me have to come back and play clean up later. Investor voting deployed from the portal allows the CEO to get the opinion of all its investors without having to hold meetings in everyone's times zones and worry about missing someone. Integrated financial analysis and financial reporting forms takes me about 15 minutes to gather those numbers rather than 1-2 days to fill out the GAPP compliant form so my paperwork time is cut dramatically allowing the focus to be on the product itself.
These factors have been on my list of considerations from day one of trying to deploy the product separate of LLBT. I have come to a conclusion about the share breakdown with regard to LLBT investors incompassing the changes made to the prospectus for the WSE model. The prospectus is the same minus a change in the share breakdown.
Total Shares = 5,000,000 Shares to IPO = 1,000,000 at $1.00/share
25% to IPO
25% to LNLBT Miles (representing LLBT shareholders and this alt will hold a spot on the board of directors acting as the voting proxy for LLBT shareholders in LLCA)
15% to Chairman of the Board (Lindsay Druart)
10% to CEO (Lindsay Druart acting CEO then to Mateo Infinity)
5% to CCO (Luke Birdbrain)
5% to CTO (Unoti Quonset)
5% to CFO (Undetermined)
5% to COO (Undetermined)
5% to LLCA Alt (Undetermined, that can be used to sell back to the public should the need arise)
Pay to C-level executive above and beyond special projects (i.e. system build by the CTO) will be made via dividends that will be paid monthly at 25% of that month's profit as long as it is above the $.01/share threshold. Dividends paid to LNLBT Miles will be distributed as a special recurring dividend to LLBT shareholders that is not subject to the LLBT dividend policy with regard to the current buyback. Undetermined positions granted shares will be held by the Chairman until those positions have been filled. Mateo Infinity will assume the CEO position at completion of IPO and system deployment and the President position will be retired.
This is what I have come up with so far. Please let me know what you think and I will make tweaks as needed. Thank you for all of your continued support in the L&L Brand.
Monday, October 8, 2007
Thursday, October 4, 2007
SL and the IRS
I am sitting here at my RL job on my scheduled goof off time and I got to thinking about a few things. A few US dwellers in SL boast about making SL their full-time jobs and I wondered how do they report this RL.
By law, any income above $7,000 per year (I think) has to be reported to the IRS and taxes paid on it. Considering I always itemize my taxes and ALWAYS get a refund for my deductions, I can't say that I have studied this part of the spectrum. How does the SL income play into RL income if the linden is not an official currency?
Ok, granted you convert to USD but is that still considered income? It could probably be considered as a gift, which should be reported as income just like eBay but I don't think there has been any solidified information from the IRS relating to metaverses as of yet.
This was just a thought that I figured I would put on pixels but I will update this as I study the tax code a little more relating to non-taxed income and 1099 statuses...
By law, any income above $7,000 per year (I think) has to be reported to the IRS and taxes paid on it. Considering I always itemize my taxes and ALWAYS get a refund for my deductions, I can't say that I have studied this part of the spectrum. How does the SL income play into RL income if the linden is not an official currency?
Ok, granted you convert to USD but is that still considered income? It could probably be considered as a gift, which should be reported as income just like eBay but I don't think there has been any solidified information from the IRS relating to metaverses as of yet.
This was just a thought that I figured I would put on pixels but I will update this as I study the tax code a little more relating to non-taxed income and 1099 statuses...
Wednesday, October 3, 2007
When the game becomes real...
This has been a long standing debate about the purpose of Second Life. I was told some TV show last night did a spoof on metaverses resulting in a kidnapping which was far fetched and few from my knowledge but, hey, I could be wrong. This is personal experience here and even opinion so walk with me for a moment.
So....when does this platform become real...the minute you log on. This is a mere platform of operation. NOT a game. A game is where you play a character and try to get to some common goal. Even through we do not have our real names in Second Life, our second lives are what we make of them and in MOST cases are a reflection of who we are.
For instance, I am Goth/Punk/Demon in SL. I could NEVER pull that off RL. I am always in two piece suits and pumps in RL while I may be in a mini skirt and hooker pumps in SL. It's my release I guess. Who I am in SL is pretty close to me in RL personality wise but I think I am much nicer in SL. And I will be the first to admit that if I get upset in SL, I am cussing and fussing RL or something worse depending on what it is. I have thrown a few items before. So...let's look at that.....games do spark emotion....but at that point, is it still a game?
Keep walking and let me know if I need to slow down. Money - I spent my rent money in SL to start L&L Rentals and Sales and with personal investments, I made that back and have a residual of a little more than $500 USD a month above and beyond business assets. That is pennies compared to the time I spend in SL on business. I would say I spend 70 hours a week either in world or doing SL related business so that means I make a wopping $1.78/hour. WOOT!! Retirement here I come. However, this extra income pays bills....is this still a game?
You're dragging behind me a little...grab my hand to keep up. Friendship - I was sick last week and the IMs and emails I got checking up on me were enormous and heartfelt. I swear I never knew that many people actually gave a hoot. I cried on a shoulder or two. I whined and sighed on voice. I have even taken a few of my SL friends into my RL via telephone, yahoo, MSN, Google Talk, or AOL. Just to name a few of my list that I may talk to more in RL than SL (not necessarily about RL):
Luke Birdbrain **
Severus Seversky **
Pieter Seelowe *
Janvier Redgrave *
Orillion Writer*
SelesteMxx Maxsted
Winter Mendes
Skitzo Rolls
LukeConnell Vandeverre
Bogart Beck
Rob Anatine
Two stars means I care about them tons, one star is really good friends, and no stars are aquaintances or business. I can honestly say that I would not still be in SL if it had not been for the other L in L&L, Luke Birdbrain. So we ended the marriage....I got a great friend and business partner out of the deal and I am sure he feels the same way. There are a few people in SL that have make me giddy and there are a few that have made me hurt and cry......is this still a game?
Last stop, I promise. I know your feet are tired. Education - I came into SL knowing a good bit about business and personal stocks but oh my what I have learned about running a public company. I am not quite the idiot but if you had asked me what GAAP compliant meant a few months ago, I would have just said "what?" over and over until you stopped asking me (and I still might do that now). I had to Google NAV and still have problems calculating it from time to time. I ask a ton of questions and listen to a lot of people talk to learn things. I have probably learned more mySQL from having to crash course to run the bank than I would in class......really, is this still a game?
There is a thin line between fantasy and reality and SL crosses it, spanks it, and buries it under ground. How you cross that line is your business but realize that this is NOT a game, not matter how you "play" it.
So....when does this platform become real...the minute you log on. This is a mere platform of operation. NOT a game. A game is where you play a character and try to get to some common goal. Even through we do not have our real names in Second Life, our second lives are what we make of them and in MOST cases are a reflection of who we are.
For instance, I am Goth/Punk/Demon in SL. I could NEVER pull that off RL. I am always in two piece suits and pumps in RL while I may be in a mini skirt and hooker pumps in SL. It's my release I guess. Who I am in SL is pretty close to me in RL personality wise but I think I am much nicer in SL. And I will be the first to admit that if I get upset in SL, I am cussing and fussing RL or something worse depending on what it is. I have thrown a few items before. So...let's look at that.....games do spark emotion....but at that point, is it still a game?
Keep walking and let me know if I need to slow down. Money - I spent my rent money in SL to start L&L Rentals and Sales and with personal investments, I made that back and have a residual of a little more than $500 USD a month above and beyond business assets. That is pennies compared to the time I spend in SL on business. I would say I spend 70 hours a week either in world or doing SL related business so that means I make a wopping $1.78/hour. WOOT!! Retirement here I come. However, this extra income pays bills....is this still a game?
You're dragging behind me a little...grab my hand to keep up. Friendship - I was sick last week and the IMs and emails I got checking up on me were enormous and heartfelt. I swear I never knew that many people actually gave a hoot. I cried on a shoulder or two. I whined and sighed on voice. I have even taken a few of my SL friends into my RL via telephone, yahoo, MSN, Google Talk, or AOL. Just to name a few of my list that I may talk to more in RL than SL (not necessarily about RL):
Luke Birdbrain **
Severus Seversky **
Pieter Seelowe *
Janvier Redgrave *
Orillion Writer*
SelesteMxx Maxsted
Winter Mendes
Skitzo Rolls
LukeConnell Vandeverre
Bogart Beck
Rob Anatine
Two stars means I care about them tons, one star is really good friends, and no stars are aquaintances or business. I can honestly say that I would not still be in SL if it had not been for the other L in L&L, Luke Birdbrain. So we ended the marriage....I got a great friend and business partner out of the deal and I am sure he feels the same way. There are a few people in SL that have make me giddy and there are a few that have made me hurt and cry......is this still a game?
Last stop, I promise. I know your feet are tired. Education - I came into SL knowing a good bit about business and personal stocks but oh my what I have learned about running a public company. I am not quite the idiot but if you had asked me what GAAP compliant meant a few months ago, I would have just said "what?" over and over until you stopped asking me (and I still might do that now). I had to Google NAV and still have problems calculating it from time to time. I ask a ton of questions and listen to a lot of people talk to learn things. I have probably learned more mySQL from having to crash course to run the bank than I would in class......really, is this still a game?
There is a thin line between fantasy and reality and SL crosses it, spanks it, and buries it under ground. How you cross that line is your business but realize that this is NOT a game, not matter how you "play" it.
Tuesday, October 2, 2007
Next time I warn you, LISTEN....
Ok, people...SLMS should not be a surprise to CapEx nor even AVIX and let me tell you why.
About a month before JTF bought AVIX, I noticed a tremendous flux in SLMS and I believe that was the day AVIX halted them but I noticed this standing trend of high dollar activity but never saw the company do much. I IMed Maelstrom and expressed my concern and of course was brushed off as coincedence. I knew then...which I believe that was in July, that this was going to be an issue.
Soooo further more, as my FIRST order of business as President of CapEx, I scanned the transaction history of Fresh and noticed something that isn't illegal but ethically wrong, CEO daytrading of personal holdings. Buys and Sells all over the place. And of course I went to the management team and was again brushed off.
Now, here we are a month later, no Fresh....Hate to say I told you so but I did.
Every fraud from WSE, to AVIX, to ISE, Vstex, to CapEx that I have called has been true. I called XAN, WED, SEX, TSF, CGI, IBM, and a few others MONTHS ago. And beyond my "sight" (I will tell you guys about that another day), I notice and watch everything and the slightest change could mean the biggest scam.
Here are a few things to look for to spot these scam IPOs and when a company is going awry.
1. Company name - Is it too catchy? I mean for instance...SEX. Too eye catching. Most would think this is a dumb assumption but the average con artist is looking to grab your attention the fastest way possible.
2. Price flux - Did a large investor dump and why? Who is the investor? Do they have insider information that the rest of the market does not know about?
3. Communication - Well this is a gimme. Are they always free to answer questions or do you have to offline them a lot? Do they talk a lot in IMs but rarely post openly? Failure to communicate openly but with tremendous IM activity says fear.
4. Other SL activity - This one has a huge grey area but still has a lot of validity. What else does this person do in SL besides business? Their sim holdings are nothing but what about friends, family, personal interests? Believe it or not, personal interests in SL show a more valid CEO than one that is strictly business. Why? If the business fails, they can easily leave. It's just a game to them....
5. Tenure - So...you have been in SL for how long and you already know this? Smells like an alt to me. Nuff said there.
This is just some regular people stuff to look at for the moment.....this is above and beyond simple due diligence. This is recognizing the patterns. Classic psychology with an emphasis on con artists.
P.S. As far as SLMS, this one was not CapEx's fault. There is no way management could have known this was the issue as this started long before JTF was even slated to buy AVIX. Yet another failure of Investor Allen that someone else takes the fall for....
About a month before JTF bought AVIX, I noticed a tremendous flux in SLMS and I believe that was the day AVIX halted them but I noticed this standing trend of high dollar activity but never saw the company do much. I IMed Maelstrom and expressed my concern and of course was brushed off as coincedence. I knew then...which I believe that was in July, that this was going to be an issue.
Soooo further more, as my FIRST order of business as President of CapEx, I scanned the transaction history of Fresh and noticed something that isn't illegal but ethically wrong, CEO daytrading of personal holdings. Buys and Sells all over the place. And of course I went to the management team and was again brushed off.
Now, here we are a month later, no Fresh....Hate to say I told you so but I did.
Every fraud from WSE, to AVIX, to ISE, Vstex, to CapEx that I have called has been true. I called XAN, WED, SEX, TSF, CGI, IBM, and a few others MONTHS ago. And beyond my "sight" (I will tell you guys about that another day), I notice and watch everything and the slightest change could mean the biggest scam.
Here are a few things to look for to spot these scam IPOs and when a company is going awry.
1. Company name - Is it too catchy? I mean for instance...SEX. Too eye catching. Most would think this is a dumb assumption but the average con artist is looking to grab your attention the fastest way possible.
2. Price flux - Did a large investor dump and why? Who is the investor? Do they have insider information that the rest of the market does not know about?
3. Communication - Well this is a gimme. Are they always free to answer questions or do you have to offline them a lot? Do they talk a lot in IMs but rarely post openly? Failure to communicate openly but with tremendous IM activity says fear.
4. Other SL activity - This one has a huge grey area but still has a lot of validity. What else does this person do in SL besides business? Their sim holdings are nothing but what about friends, family, personal interests? Believe it or not, personal interests in SL show a more valid CEO than one that is strictly business. Why? If the business fails, they can easily leave. It's just a game to them....
5. Tenure - So...you have been in SL for how long and you already know this? Smells like an alt to me. Nuff said there.
This is just some regular people stuff to look at for the moment.....this is above and beyond simple due diligence. This is recognizing the patterns. Classic psychology with an emphasis on con artists.
P.S. As far as SLMS, this one was not CapEx's fault. There is no way management could have known this was the issue as this started long before JTF was even slated to buy AVIX. Yet another failure of Investor Allen that someone else takes the fall for....
World Stock Exchange - The Silent Killer
I called it and by golly I called it right. If WSE, was to survive the MDS scandal, it would outlast most in the financial sector. While the hooplah over WSE seems to have diminished and it seeming to be a ghost town, this is not the case. This silent killer is still going....not as strong as before but still going nonetheless. And don't misconstrue what I mean by killer. I mean that in a good way. Having my first SL company listed on WSE got me to thinking and I did a little research and came up with a few differences that sets WSE apart from every other exchange ever created in Second Life. First, let's talk platform, then we will talk managment.
Platform...
1. WSE operates like a RL stock exchange. No bells and whistles with extra promises. No fraud funds and investor whining (don't shoot me). It's just business. Straight forward business.
There is an extreme importance here. Some exchanges have focused so hard on playing the "honest" card (even when it's just a front), they have forgotten about the core business and have suffered for it. True enough, WSE may delist like mad eventually but, bottom line, THIS is how a real stock exchange runs. The NYSE doesn't compensate shareholders. It's an at risk business but most don't understand or want to understand that. Of course the NYSE works with the SEC to validate in an attempt to diminish risk but that is a subject for another blog.
2. Extremely user friendly and pretty web interface with just about everything automated.
I waited for the graphs and YAY I got it. I admit, for me its more aesthetics but for statiticians, it is awesome. The applications are streamlined with a built in portal for financial reporting that automatically calculates for you. SL Account integration is available as well to make reporting that much easier. I would say the communication avenues are a bit substandard but that is secondary stuff. And you can even have your coffee in a WSE branded mug. How cool!
3. Investor base.
First one in. Pretty much, it's like all the other auctions sites going up against eBay. eBay is crud in my opinion but they have the customer base that no one else does. WSE has not only the first large group of investors but the addition of Ginko customers in its base. Granted someone is so jaded by Ginko that they may not actually invest but at least the potential is there.
Okay so lets move along to management....
While there seems to be others, from my view, it's a one man show. LukeConnell Vandeverre. People say what they must and fall out with him, myself included, but I have to respect his position here. Yeah, he can be quite pompous but at the same time, he has every reason to be. He presented a successful business and started a trend that wasn't existant for the most part. Kudos for the introduction of the publicly owned corporate simulation in Second Life. And for obvious reasons it is called a simulation.
The man throws his weight around and keeps the most influential people in his grasps. Smart man. Don't make enemies with the choir when you need them to preach your sermon. And he gets rid of the opposers....not too sure I agree with that one but everyone has a right to their opinion and everyone also has a right not to listen to it. It's his company. Let him run it.
I have my issues and may do a few things differently but at the same time, don't stop something that is obviously working. Is WSE falling behind the scenes and we don't know about it? Quite possibly but I highly doubt it. I think this is solid. At least for the time being. All the BS is gone and WSE runs business as usual. Of course the market volume is low for VARIOUS reasons but we are all suffering from the market crunch. It's survival of the fittest right now and we will see who will be around come December.
Good luck WSE and LukeConnell.....
Platform...
1. WSE operates like a RL stock exchange. No bells and whistles with extra promises. No fraud funds and investor whining (don't shoot me). It's just business. Straight forward business.
There is an extreme importance here. Some exchanges have focused so hard on playing the "honest" card (even when it's just a front), they have forgotten about the core business and have suffered for it. True enough, WSE may delist like mad eventually but, bottom line, THIS is how a real stock exchange runs. The NYSE doesn't compensate shareholders. It's an at risk business but most don't understand or want to understand that. Of course the NYSE works with the SEC to validate in an attempt to diminish risk but that is a subject for another blog.
2. Extremely user friendly and pretty web interface with just about everything automated.
I waited for the graphs and YAY I got it. I admit, for me its more aesthetics but for statiticians, it is awesome. The applications are streamlined with a built in portal for financial reporting that automatically calculates for you. SL Account integration is available as well to make reporting that much easier. I would say the communication avenues are a bit substandard but that is secondary stuff. And you can even have your coffee in a WSE branded mug. How cool!
3. Investor base.
First one in. Pretty much, it's like all the other auctions sites going up against eBay. eBay is crud in my opinion but they have the customer base that no one else does. WSE has not only the first large group of investors but the addition of Ginko customers in its base. Granted someone is so jaded by Ginko that they may not actually invest but at least the potential is there.
Okay so lets move along to management....
While there seems to be others, from my view, it's a one man show. LukeConnell Vandeverre. People say what they must and fall out with him, myself included, but I have to respect his position here. Yeah, he can be quite pompous but at the same time, he has every reason to be. He presented a successful business and started a trend that wasn't existant for the most part. Kudos for the introduction of the publicly owned corporate simulation in Second Life. And for obvious reasons it is called a simulation.
The man throws his weight around and keeps the most influential people in his grasps. Smart man. Don't make enemies with the choir when you need them to preach your sermon. And he gets rid of the opposers....not too sure I agree with that one but everyone has a right to their opinion and everyone also has a right not to listen to it. It's his company. Let him run it.
I have my issues and may do a few things differently but at the same time, don't stop something that is obviously working. Is WSE falling behind the scenes and we don't know about it? Quite possibly but I highly doubt it. I think this is solid. At least for the time being. All the BS is gone and WSE runs business as usual. Of course the market volume is low for VARIOUS reasons but we are all suffering from the market crunch. It's survival of the fittest right now and we will see who will be around come December.
Good luck WSE and LukeConnell.....
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