@dannotestein in the Profit and Loss Statement, could you please classify the income / current assets by sources? For example how much income is from directly trading on the website / in-wallet bridge service, how much from revenue share by tech support, how much from software development? Thanks!
Currently essentially all the income I've reported is from purchases from the web site, none from service contracts or revenue sharing arrangement with OpenLedger.
Revenue from service contracts performed by BlockTrades has been relatively small to date, and we have fully expensed them as payments to SynaptiCAD, which has performed the actual coding work (BlockTrades doesn't directly employ any programmers), leaving BlockTrades with zero net income from those contracts. This was done to avoid having to compute Subpart F income on our US tax returns for what were relatively small profits.
We have not yet computed profit associated with the sharing arrangement with OpenLedger, but I believe that it is a relatively small amount currently, although it has the potential to grow significantly with increased utilization of the BitShares exchange.
As a side note, we haven't published actual revenue for BlockTrades (i.e. total funds sent to BlockTrades to purchase cryptocurrency), nor do we currently have a readily available calculation for it, although we could do it by writing some code to query our transaction database. Instead, we decided to using a mark-to-market account method for accounting for profit from the web site, which dramatically simplifies our accounting procedure. Essentially with a mark-to-market method, we only need to compute the current and past value of the assets in our inventory to calculate profit over a period of time. We automatically track this value on a daily basis (converted to a US dollar equivalent, as that's the "functional currency" we selected), so this makes it easy for us to determine our profit over any given period of time. Here's more information on mark-to-market accounting, for those interested:
https://en.wikipedia.org/wiki/Mark-to-market_accountingFor other future profit centers, such as service contracts and software sales, we'll need to use the more familiar method of accounting using revenue - expenses = profit, of course. For that, we have trusty, reliable, and annoying QuickBooks.