I commend to you the fantastic and detailed analysis of PledgeMusic’s open source financials created by Eilonwy’s emu (@myemuisemo) that is a real eye opener. Read her post “Plunging into PledgeMusic’s Financial Statements” on her site Myemuisemo.
Her extensive analysis suggests that the circle of interesting persons may be expandable to include the PledgeMusic accountants who could be interesting witnesses.
Here’s an excerpt:
My horrified fascination at the ways in which “the PledgeMusic fiasco is weirder than you think” (Part 1, Part 2) — the investor being investigated by the SEC! the mysterious Panamanian seed investor! the loan that makes no sense and the share allotments that never show up in official filings! — left me wondering what I would have done if I’d read their financial statements back when I participated as a fan in a pledge campaign, back in 2015.
The artist’s label was using PledgeMusic for pre-orders, and it was important to me to show up and be counted as a loyal fan — so I can’t believe I would have revealed anything that would have undermined him. But I definitely would have found some things that left me running in circles going “wtf, wtf, wtf?” like a pissed-off chicken, in the privacy of my own home. Now that the chicken shit is all over the barn yard, let’s check out a few mysteries and terrors of PledgeMusic’s financial statements.
Because PledgeMusic was a private company in the UK, its filing requirements were sparse. Early versions of their annual accounts are one step above a scribble on a napkin. However, we can ask questions and make educated guesses. To get here, I spent a lot of time with the Trichordist and Artists Rights Watch articles that you’ll see linked extensively below, as well as with PledgeMusic’s regulatory filings.
- PledgeMusic never turned a profit
- PM’s inner workings are mysterious and expensive
- What are these accounts receivable and payable?
- Who is making the major investments?
- The “going concern” warnings