Red Star Mining Q1 2014 Financial Statement

Table of Contents

Table of Contents

Executive Summary

Balance Sheet

Assets

Cash Assets

Equipment

Accounts Receivable

Liabilities

Shareholder Equity

Quarter 1 2014 Performance

Costs

Future Projections

Revenue

Equipment Sales & Their Associated Effects

Appendix

Costs

Revenue

Bitcoin Assets

Executive Summary

Red Star Mining's (RSM) financial position is strong. This document contains the financial position and history of The Company for the first quarter of 2014. Recent moves have generated Bitcoin profits; and existing orders have primed The Company to pick up more devices. RSM’s growth has provided the ability to wait for the most favorable moment to invest in  hardware. Since the founding of Red Star Mining three years ago, this is the most potent financial position the Company has been in.

Balance Sheet

Red Star Mining’s balance sheet is positive. In total The Company has approximately 0.9 mbtc of assets per share. Do keep in mind that this is not an evaluation of share price. Potential investors should analyze the entirety of RSM before making an investment decision. Below is a breakdown of The Company’s balance sheet.

Assets

Cash Assets

RSM has approximately 0.49 btc of alt coin assets. Some of the alt coins are in wallets that the company controls. The remainder are “off chain” in some form or another. See the table below for RSM’s alt coin position.

Additionally, Red Star Mining owns 129 btc at various addresses. Approximately .007 btc is still on Bitparking’s pool. See the table below for The Company’s Bitcoin position. Further detail is linked in the Appendix.

Equipment

RSM currently has one piece of equipment in it’s hands. The equipment is a Peer to Peer Pool Server which is being prepared to replace a conventional pool.  The Company plans on this server providing merged mining capabilities for Bitcoin Mining and, if resources allow, Litecoin Mining. See below table for details.

RSM also owns it’s domain name (redstarmining.com) and a Nasty Seat.

Accounts Receivable

Red Star Mining expects to receive 39 btc from it’s various commitments. Most of which it expects to receive in mining hardware. The table below details our accounts receivable.

Liabilities

The Litecoin-Mining, Alpha Vipers are RSM’s only outstanding liability. At current Bitcoin prices The Company would need to pay 49 btc to take delivery of it’s full order. This will add to the amount of Litecoin the Vipers need to mine in order to make a Bitcoin profit on the purchase. See table below.

Shareholder Equity

Shareholder Equity was calculated by taking the total assets The Company has minus the total liabilities and dividing by the number of shares. This figures to a per share total of 0.9 mbtc.

Quarter 1 2014 Performance

As difficulty increased and mining hardware sold off, the dividend per month decreased. You can get these numbers by looking at RSM’s monthly financial summaries. For convenience they are aggregated below.

This chart and the one below it show the decrease in dividends per month as difficulty rose and The Company’s mining hardware was sold off. It should be noted that the second one is Dividends per Share per Month and because of RSM’s buyback policy the decline was less steep.

Costs

RSM’s costs this month have been varied. There is a full breakdown of the quarter’s costs in the Appendix but a summary chart is below. RSM spent approximately 3.18 btc on the Peer to Peer Pool Server, 29 btc on miners, 3.04 btc were spent on operational costs. This quarter a full 8.64 btc either placed into dividends or buybacks. Red Star Mining’s other cost is in relation to it’s seed funding of the “BTC in Space” project.

One oddity should be noted. This transaction^[1] utilized two separate inputs from two different addresses in the wallet. It returned the change to one of those addresses and the change was larger than that addresses original input. Leading to the reinvestment fund having a cost transaction with more Bitcoin going into an address than out.

Future Projections

Revenue

RSM has 4 Alpha Vipers and one Bitmine.ch miner due. The Company projects that they’ll mine more than was paid for them in Bitcoin. Red Star Mining is considering purchasing hardware with it’s KNC refund but does not have any concrete plans as of yet. RSM is always open to increasing revenue but believes that the best strategy for the moment is to wait for Bitcoin prices to rise and take advantage of it’s position.

Exchange

RSM is interested in Colored Coins and other Distributed Stock Exchange systems. However, The Company is satisfied with the performance of 796.com. This satisfaction was significantly bolstered by 796’s implementation of proof of cold storage. RSM still recieves regular reports from 796.com making a move at any time possible. Red Star Mining believes that Distributed Stock Exchange schemes are the future but desires to wait for the technology to develop before moving themselves to any particular platform or implementation.

Equipment

As mentioned The Compnay expects to take delivery on the Bitmine.ch miner in Q2 and the Alpha Vipers in Q3 of this year. The Peer to Peer Server is in hand.

Equipment Sales & Their Associated Effects

RSM has claimed a refund on it’s KNC miners. The plan is to take 10% of the Bitcoin profit and place it towards dividends in a similarly released fashion as the Jupiter Sales. Additionally The Company plans to take 5% for the salaries fund and the buyback fund. Red Star Mining plan to use the additional funds to purchase more mining equipment. As the refund generated more Bitcoin than the miners were expected to mine in their lifetime, The Company is satisfied with it’s refund. RSM plans to wait for price rises in Bitcoin to purchase more mining gear in a similar fashion to how it used the funds from the BFL Sale last quarter. This will allow The Company to maximize it’s buying power.

The refund allows the company to fund a stable dividend for approximately 12 months at 0.5 btc per dividend.

Appendix

Costs

This linked document contains a read only public GDoc with the costs for the quarter.

Revenue

This linked document contains a read only public GDoc with the revenues for the quarter.

Bitcoin Assets

This linked document contains a read only public GDoc with the Bitcoin assets for the quarter.