The Litecoin Foundation (LF) barely has any money left, down from more than one million in income last year to $70,000 in minus this year.
That one million income was mainly due to a donation of $830,000, but they also made about $200,000 on merchandise sales.
What is meant by that is not clear, but presumably it’s t-shirts with hodl on it and the Litecoin Summit, their conference.
For this year they puzzlingly made an $80,000 loss from merchandize which costed $280,000, but brought in only $200,000.
How you can lose money from selling t-shirts is not clear, but it might be more to do with the conference which is to begin in just a few days with Ron Paul speaking.
Charlie Lee, Litecoin’s founder, said “we just did a quick estimate and our current runway is between 1 to 2 years depending on how the finances for the Litecoin Summit goes.”
He further clarified “we have about $200k today, which is about 2 years of runway.”
The actual figures show they spending $137,000 on staff, $36,000 on marketing, $24,500 on legal fees, and $4,500 on advertising, making it unclear how this $200,000 is to last for two years.
In addition they have some non-public deal with WEG Bank and TokenPay which seems to have cost them $2.8 million.
They bought 10% of WEG Bank last year with an option to acquire another 80%. So this $2.8 million might be the cost of that option.
The foundation is apparently spending just $1,500 on software and cloud services, which might be just their website, with no cost stated for development.