Bots Inc (BTZI)

[lesgetrich]

First Bitcoin transferred the patent to Bots as part of the price they paid for Bots stock. Technically, First Bitcoin is still listed with the patent office as the patent owner but BITCF's ownership of and agreement with Bots takes precedence. Bots will claim all of the revenue. However, assuming BITCF owns more than 20% but less than 50% of Bots, as they do now, First Bitcoin will also claim a percentage of the earnings on their financials that's equal to the percentage of Bots that they own. If/when First Bitcoin inc increases their ownership of Bots above 50%, they then will be able to produce a consolidated statement which includes all of Bots' financials within the BITCF financials. The following link explains how the accounting works...

Consolidation vs. Equity Method of Accounting

How the Accounting Works

Suppose you buy 30 percent of the stock in a $1 million company – a $300,000 expense. Under equity accounting, you report the $300,000 acquisition as an asset on the balance sheet. When the second company announces earnings, you report 30 percent of the earnings as your own income.

If it reports $240,000 of net income for the year, you report $72,000 of that – 30 percent – as earnings on your income statement. The value of the asset on your balance sheet increases by $72,000. If, instead, the company reports losses, you adjust the asset's value down.

If you control the other company, you have to draw up consolidated financial statements. These add the subsidiary's income, expenses and assets to your own. If, say, your company generates $250,000 in revenue and the subsidiary brings in $160,000, you report income of $410,000.

However, if you do any business with the subsidiary – contracting with it for services or supplies, for example – you have to eliminate those deals from your income statement. Consolidated accounting doesn't count the sale as income, because you're really selling to yourself.

...See my post # 106827 for an analysis of how much revenue the patent may be worth.

Bots Post # 106827