Signing Financial Audit Agreement with Estonian Certified Auditor, Blockhive Updates Community on Financials
Dear blockhive community,
We would like to update you about the financials of blockhive OÜ for 2017 and 2018.
The company was established in May 2017, meaning that our first financial year was 8 months long, ending on December 31, 2017. As expected, during these first months the company did not earn any operating revenue, whereas all of its projects were still under development.
At the same time, the cryptocurrency market spike in the end of 2017 resulted in unrealized non-operating gains for the company as of year-end. This means that the market value of cryptocurrency assets raised during the private round of our ILP reached a level where a statutory audit of the financial report for 2017 is required in accordance with the Estonian Audit Law.
The requirement of undergoing a financial audit has forced us to delay disclosing the financial report for 2017 until it has been approved by an Estonian Certified Auditor.
Unfortunately, companies operating with cryptocurrency assets are yet not widely accepted by the majority of audit firms, due to uncertainty on regulatory level with correct accounting and tax treatment of such assets. This situation makes it complicated for a blockchain startup to find an auditor who is willing to express an opinion on its financial statements.
Estonian companies are allowed to submit their financial reports by June 30 of the year following the year being reported and blockhive was nearly close to meeting that deadline, when we realized the requirement of undergoing a financial audit. After several months of thorough search and negotiations with several audit companies, we are glad to announce that this month blockhive OÜ has signed an audit agreement with an Estonian Certified Auditor Audit & Consult, who will audit our financial statements for 2017.
We are now working full speed with the auditor to be able to finally release the financial reports of 2017, aiming to finish the audit process by end of March this year.
At the same time, our accountants are already preparing the financial statements of 2018 to submit them to the auditor immediately after receipt of an auditor report for financial statements of 2017. We are expecting to disclose financial results for 2018 in June 2019.
We believe that the challenge of undergoing a statutory financial audit, which has caused temporary delays in disclosing financial information to our partners and supporters in the first years of our journey, will bring more transparency and trust in the long run for our company, as well as for the blockchain community as a whole.
We would like to thank all our creditors who have trusted and supported us, and we are working hard to deliver a successful result in bridging the gap between the present and the future. While our financial team will be working on the financial reports together with the auditor, in our next blog posts, we will give an update on the development of our projects and roadmap for 2019/2020.
