Replies to post #106921 on Bots Inc (BTZI)

[MD-420]

The way I see it, they Erik find a way to screw legacy mcig investors. They will want them holding as little equity as possible.

[MD-420]

I smell a reverse split coming.

[lesgetrich]

BTZI would still be a separate public company with its own bookkeeping and it's own set of financials. Nothing would change. The changes would all be on First Bitcoin's financials which would include BTZI's financials.

First Bitcoin can't dissolve BTZI without buying out all of the public shareholders. We all own a percentage of Bots. As Bots grows, our ownership piece of the company (as represented by our shares) increases in value. This does not change.

Why do you think that BTZI would never surpass $.25/share??

Regarding how BITCF doesn't reap all of the benefits, since Bot's is a public company, if BITCF owns a majority interest (i.e. >50%) they can do a consolidated statement on their financials. They still end up claiming the value of only the portion of BTZI that they own as an asset. Here's how it works...

The Method of Reporting a Minority Interest in Consolidated Financial Statements

Minority Or Noncontrolling Interests

When one entity or person possesses the requisite majority control, all other business investors or owners make up the minority, or non-controlling, interest. For example, suppose you hold 70 percent of the outstanding voting shares in a corporation. Controlling more than 70 percent of shareholder votes requires you to prepare consolidated financial statements that include 100 percent of the corporation's income, losses and assets, as well as all other items that are disclosed on financial statements. But since you don't own 100 percent of the corporation, GAAP also requires you to report the amounts attributed to the 30-percent ownership of minority interest holders.


Consolidated Balance Sheet Reporting

Your consolidated balance sheet will already include all of the subsidiary's assets and liabilities, so it isn't necessary, nor is it correct, to report your investment in the subsidiary on the consolidated balance sheet. A consolidated balance sheet must disclose the minority interest holders' total share of the subsidiary's net assets. To illustrate, suppose the subsidiary has $100,000 in net assets -- which is reflected on your consolidated balance sheet. Thirty percent, or $30,000, of those net assets technically belongs to minority interest holders and must be disclosed on the consolidated balance sheet. This is done by reporting $30,000 on a line, such as “Minority interest in net assets,” before the equity section of the consolidated balance sheet.

Consolidated Income Statement Reporting

Like the balance sheet, your consolidated income statement also includes 100 percent of the subsidiary's revenue and expenses. To compute consolidated net income, however, GAAP requires that you subtract the income or loss attributed to minority interest holders and disclose that amount on a line such as, “Net income attributable to the non-controlling interest.” In other words, if the subsidiary reports net income of $100,000, the full amount is included in the consolidated income statement but you'll disclose that $30,000 of it is attributed to minority shareholders.