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Lord Arbalest
Amarr
Zero Profits
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Posted - 2010.03.06 23:50:00 -
[1]
Edited by: Lord Arbalest on 06/03/2010 23:53:47
Audit Report by Lord Arbalest on Free Market Blue Team and all linked parties.
Flags
Green Flag: Audit was sought and access to all accounts provided.
Green Flag: Auditee provided a business plan on the AuditorÆs request.
Green Flag: Auditee allowed for several hours of conversation and questioning to which the auditee showed a helpful and positive attitude towards.
Green Flag: Two previously ran and closed bonds.
Green Flag: Evidence found to prove past trading activities.
Green Flag: Auditee has allowed all material to be made public, including conversations.
Green Flag: Auditee has provided api access to an accountant for the duration of the bond.
Yellow Flag: Isk flow to re-sub 4 accounts û auditee has provided a reply in the risk part of this audit.
Yellow Flag: New business model.
Red Flag: No collateral.
Red Flag: Concerns over burn out due to the operations of 9 characters û the auditee has provided a reply to in the risks part of the audit.
Red Flag: Business based around judgement calls û to which the auditee has replied to in the risk part of the audit.
Characters
-Liberty Eternal
Born August 09Æ, the character has 5.6m SP.
Character has 2.7m SP invested into trade related skills û with the ability to manage a large amount of orders in an extremely efficient and cost effective manner.
Character has the ability to fly up to Battleships for one specific race.
Character has demonstrated an active posting presence within the MD forums dating from the auditeeÆs first bond offering on October 09Æ
Character has received a few industrial losses in high-sec in the auditeeÆs early days û but, has not suffered any transport losses since.
Character has recently lost a transport in low-sec. Auditor has discussed transportation with auditee and information on this will be disclosed further in the later stages of the audit.
Character has a 5.15 standing with Federal Intelligence Office.
Contract history active with courier contracts.
-Liberty Stirner
Born February 10Æ, the character has 1.9m SP.
Character has 1.3m SP invested into trade related skills aimed at increasing the amount of orders that the character can handle.
No posting history other than on the recent bond offering.
-Capitalist Marine, Blitzkrieg Raider, China Mountain, Hannah Caldari, Commander Kitten, SkyNet2030 & Liberty Child
Alts created under the same time effective skill plan aimed at maximising learning, basic skills and trading for the auditee to place at different locations for the purpose of the auditeeÆs trading.
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Lord Arbalest
Amarr
Zero Profits
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Posted - 2010.03.06 23:50:00 -
[2]
Edited by: Lord Arbalest on 06/03/2010 23:55:09
Business & Financial Information
Transactions are active on all characters û some more than others.
Evidence of active trading using a trade portfolio consisting of fast moving items.
Profits from these items can range from cost plus 10% to 100+%.
Evidence of very recent trading from a number of different locations making use of strategically placed alts; however Jita has been the auditeeÆs main trading location. Auditee has stated that a new infrastructure has been designed and implemented within the last few days allowing such access to a wide variety of market but intends to keep 50% activity of the new business structure in Jita.
Evidence of courier contracts which have recently been used within the last few days as the main transportation means for the auditeeÆs business model.
Evidence of Plex purchases used to keep accounts running. Auditee aims to be able to pay for all four accounts (only three created at the point of audit) using Isk, resulting in an expenditure of roughly 1bil a month to keep all accounts running. Auditor has expressed concerns over auditeeÆs ability to generate enough profit to pay creditors as well as running expenses û to which the auditee has outlined a contingency plan addressed later in the audit.
Evidence of a small amount of active buy and sell orders. Auditee has stated this is due to winding operations down in order to start afresh with the new bond and switching orders over to the corporation for accounting purposes.
Evidence of a large amount of completed orders.
Evidence of currently held stock in relation to the trade items in the auditeeÆs portfolio.
Assets and Balance
*An estimate of the AuditeeÆs NAV.
*Auditee wishes to make public that a considerable amount of isk invested in stock is currently tied up in couriers which has not been included.
*Figures have been changing hourly due to auditee restructuring for the start of the bond and fast turnover based trading the auditee carries out.
Balance
Wallet balance: 161m
Market escrow: 0.2m
Sell Orders: 722m
Investments: 0m
Total: 833.2m
Assets
Blueprints: 0m
POS: 0m
Ships: 45m
Ship Modules: 122m
Minerals, Ice, Trade Goods, Salvage etc.: 13m
Trade Stock: 790m
Total: 970m
Estimated Complete Total: *1.803 Billion ISK
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Lord Arbalest
Amarr
Zero Profits
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Posted - 2010.03.06 23:50:00 -
[3]
Reserved
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Lord Arbalest
Amarr
Zero Profits
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Posted - 2010.03.07 02:15:00 -
[4]
Edited by: Lord Arbalest on 07/03/2010 02:21:27
 Originally by: Varo Jan
Did you value the assets at max buy, min sell or some other measure?
Trade Stock was valued by a mix of highest buy order or npc sell price when highest buy order was not applicable.
Min-sell via eve-central was also used on certain assets on the basis that Liberty as a station trader being able to unload the selected items within a period of 48hours. Majority of ships are T1 and so less prone to major price fluctuations and have very high volumes traded via Jita.
Originally by: Varo Jan
I take it Ships and Ship Modules are those reserved for personal use?
No line was drawn between personal assets and business assets as Liberty has every single character in the business corporation. The company is 100% owned by liberty and has no equity owned by another party - therefore Liberty is the company.
Originally by: Varo Jan
Seems a lot when goods will be couriered.
A large portion of value is tied up in a mission running ship Liberty owns. Another smaller module amount valued are Libertys industrial's rigs and any modules in the cargo of any owned ships were also counted as possible variations to fittings for Libery's fits. They can be liquidised if Liberty faces cash flow problems, couriering was decided to be the safer method of transportation.
Originally by: Varo Jan
You¦re concerned about burnout, yet you¦re suggesting grinding missions for x characters. Are projected profit margins so thin that standings would make a material difference?
This specific conversation was treated as an area Liberty would look into in the future. The majority of Liberty's characters are without any standing and as a station trader every % cost cut is extra profit, with standings playing a sizeable role in those transaction costs with the market. It was agreed that it was something that would be of benefit in the long run when Liberty felt like he had the time or the isk to invest into such an improvement. Liberty would also be able to make use of the missioning ship currently in possession and a future mission skilled alt that Liberty outlined wanting to develop. Mission running would offer a variation to Liberty's trading schedule possibly resulting in the prevention of boredom/burn out by offering Liberty the opportunity to do something else other than update orders and study the market. I will once again stress that this is not something Liberty will be doing asap but pencilled in after he has settled in, something for the near future in a casual manor.
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