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DCG Q3 2022 Financial Statements

bfoster

bfoster

Member
Dash Core Group
Attached is the DCG Q3 Balance Sheet and Income Statement. A couple of points to note:

1. There was an incorrect accounting entry in Q2 that overstated our marketing expenses; that was reversed/corrected in Q3 thus resulting in the negative marketing expenses.

2. The P/L is showing an unrealized gain for Dash because of the losses that were realized during the quarter (it reflects the change in unrealized G/L, not the actual losses that are still unrealized). This is standard accounting but I wanted to point it out since it looks weird seeing a positive number for this given the depreciation in price over the period.


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bfoster said:
Attached is the DCG Q3 Balance Sheet and Income Statement. A couple of points to note:

1. There was an incorrect accounting entry in Q2 that overstated our marketing expenses; that was reversed/corrected in Q3 thus resulting in the negative marketing expenses.

2. The P/L is showing an unrealized gain for Dash because of the losses that were realized during the quarter (it reflects the change in unrealized G/L, not the actual losses that are still unrealized). This is standard accounting but I wanted to point it out since it looks weird seeing a positive number for this given the depreciation in price over the period.


View attachment 11526
View attachment 11527
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Can you post this in Discord?
 
I was asked to solicit some feedback prior to floating a decision proposal on this, I did so in Discord MNO polls, is the voter sentiment clear enough for DCG to get the message here on handling DCG Reserves, or shall I proceed with a proposal? The legacy market has rebounded over the last few weeks, can DCG just get back into cash or cash equivalents now while there is still an opening?
 

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@AgnewPickens
I find this kind of decision-making process extremely ineffective for any company.
First of all - who from the voters has real CFO-level experience and knowledge to make good long-term decision, instead of reactive, emotional "click"?
Who will be personally responsible if, hypothetically, this (or any other that will come in the future) will be a bad decision?
 
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kot said:
@AgnewPickens
I find this kind of decision-making process extremely ineffective for any company.
First of all - who from the voters has real CFO-level experience and knowledge to make good long-term decision, instead of reactive, emotional "click"?
Who will be personally responsible if, hypothetically, this (or any other that will come in the future) will be a bad decision?
Click to expand...

First of all, the former CFO did not let the network know he was going to invest in markets that are antithetical to the principles of crypto
until later, second of all, the impairment losses posted speak for themselves. DCG as a development company is funded by the network
and as such, needs to honor that commitment. I was not happy back in Q1 when I first heard about this foray into the fiat markets, and
have been asking for this for a long time, and the voter sentiment supports my posiiton. I would have floated a proposal sooner, but QE
asked me to solicit feedback, which I did. So I guess a proposal is in the offing.
 
DCG Management has been liquidating all fiat and Dash holdings as slowly and methodically as possible to avoid realizing more losses than necessary. Liquidating everything now would be purely an emotional decision which is very bad investment practice. I'm not sure what the suggested decision proposal would look like but IMO, not allowing DCG to have certain levels of flexibility on how to manage the reserves seems like overkill and would probably only cause further confusion (dealing with the current holdings, effective inflation protection, price thresholds, etc). As previously noted, we will be working with the current investment team to get their opinion on any suggested rebalancing; until such time that a rebalance is recommended, we are only raising USD cash as required on a monthly basis.
 
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bfoster said:
DCG Management has been liquidating all fiat and Dash holdings as slowly and methodically as possible to avoid realizing more losses than necessary. Liquidating everything now would be purely an emotional decision which is very bad investment practice. I'm not sure what the suggested decision proposal would look like but IMO, not allowing DCG to have certain levels of flexibility on how to manage the reserves seems like overkill and would probably only cause further confusion (dealing with the current holdings, effective inflation protection, price thresholds, etc). As previously noted, we will be working with the current investment team to get their opinion on any suggested rebalancing; until such time that a rebalance is recommended, we are only raising USD cash as required on a monthly basis.
Click to expand...

Don't confuse emotional with ideological principle, DCG should have never been in the legacy markets to begin with, and trying to
claw back losses hoping for a market rebound is the same tactic a degenerate gambler uses. I realize this was not done under your
watch, but I am fairly confident from the feedback I have gotten, that most voters are unhappy with DCG's foray into the legacy markets.
 
Is it really that hard for DCG's investment firm to move assets into Short Term Treasuries (cash equivalent) or Money markets?
Both yield-bearing cash equivalents?
 
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My initial guidance to the investment firm was to raise the specific cash that we need in a manner that reduces the amount of losses being realized. I just spoke with the Investment firm today to get their opinion of our current position and to explain that we want to reduce our risk-level in a way that raises the cash that we need AND keeps our portfolio balanced in a way that will help offset inflation. He agrees with this and noted that we will realize some more losses in the short term but in a way that lowers our exposure to the higher risk holdings.

Regarding the emotional vs ideological references; I understand that there are members of the community who fundamentally oppose involvement in the legacy markets but the reality is that we do still live in and rely on these rails. I do not disagree with having a heavier weight of the portfolio in cash equivalents and I will continue to work with the investment team to achieve this but this alone will not be very effective at offsetting inflation. To this end, I will continue to only raise cash from the fiat investment reserves as required to avoid realizing losses unnecessarily; this will hopefully prove more possible if the price of Dash continues to improve to levels where we can sell more of our Dash reserves to sustain the cash flows that we need.
 
Almost midway thru the fiscal year for DCG, and you took on unexpected duties, others did, I am not going to press hard on the issue,
but I will be discussing these matters with other voters.
 
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Are we gonna get a report next quarterly statement showing the Tax Refund DCG is getting, or is the filing still delayed?
 
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