At Blockstack PBC, we have a duty to ensure that our investors and community have access to accurate information about the company. It recently came to our attention that there are materially inaccurate and misleading representations by third parties available on the internet regarding our H1 2019 unaudited financial statements, including misrepresentation of our implied burn rate.
Blockstack PBC has approximately $30 million in cash and crypto, and we currently estimate a runway at least until the end of 2021 at projected burn rates.
Providing accurate information to our investors and community is extremely important to us. In this post we list key facts about our financials and the H1 2019 financial statement:
- Our H1 2019 income statement shows $10.2 million in operating expenses including (a) $3.3 million of non-cash expenses, and (b) one-time expenses. The $10.2 million number should not be confused with our burn for H1 2019 or for future semi-annual periods.
- $3.3 million of non-cash expenses: Non-cash expenses are expenses not related to cash, such as depreciation, amortization, stock compensation expense, etc. We do not consider non-cash expenses when calculating burn rate because they do not (and will not) entail cash being spent.
- One-time expenses: Of the remaining $6.9 million in operating expenses from H1 2019, there is a significant amount of expenses we consider unlikely to continue into the future, such as those related to the Reg A and Reg S offerings, which we do not count towards calculating our recurring burn. A significant portion of the $2.8 million total expected expense on Reg A offering is an example of such one-time expense included in the H1 2019 financial statement.
We advise our investors and community to be mindful of incorrect sources of information and to refer to our SEC filings as the source of truth. If you have any questions concerning Blockstack’s finances or need help understanding them, please refer to our audited financial statements publicly available at www.sec.gov/edgar or reach out to [email protected].