Financial Results for 2016
Posted September 4, 2017 by Werner
Having prepared the annual accounts for g10code GmbH, the legal entity employing some of the GnuPG hackers, I can now share a financial report. Please read on if you are interested in how we earned and spent the money from donations and paid projects.
Balance Sheet as of 2016-12-31
Let us start by looking at the balance sheet, which describes our financial status. The following table shows the actual balance sheet with a few accounts pooled up. Note that for display purposes all values have been rounded to a full Euro, and thus there are minor mismatches in the Sums row.
| Asset | (2015) | Liability | (2015) | |
|---|---|---|---|---|
| Tangible assets | 4722 | (3880) | ||
| Stock of goods | 0 | (0) | ||
| Cash balance | 154 | (360) | ||
| Bank balance KSD | 282163 | (207453) | ||
| PayPal and others balance | 7001 | (3842) | ||
| Accounts receivable | 10702 | (4774) | ||
| Accounts receivable other | 150 | (497) | ||
| Common capital stock | 25000 | (25000) | ||
| Loss carried forward | 0 | (0) | ||
| Profit carried forward | 126688 | (11338) | ||
| Net profit | 98958 | (115350) | ||
| Shareholder loans | 0 | (0) | ||
| Accounts payable | 323 | (0) | ||
| Accounts payable other | 53850 | (27974) | ||
| GnuPG development fund | 72 | (72) | ||
| Provision for taxes | 0 | (41070) | ||
| Sums | 304891 | (220804) | 304891 | (220804) |
The Bank balance KSD is the money that we had at the end of the year in our accounts at the local savings bank. The PayPal row gives the amount of money in the PayPal account and as several prepaid accounts.
From the Common capital stock of 25000 Euro 50% are held by Walter Koch and 50% by Werner Koch, the owners of g10code. The Net profit gained in 2015 is added to Profit carried forward.
The Accounts payable other is my profit sharing bonus of 24739 and VAT payable for the last quarter. The GnuPG development fund is the rest of a campaign which collected prize money for the GnuPG logo.
Profit and Loss from 2016-01-01 to 2016-12-31
Now let us see how much money we earned and how we spent it. The following table shows the actual profit and loss sheet with a few accounts pooled up. As above, the values have again been rounded to the nearest Euro.
| Debit | (2015) | Credit | (2015) | |
|---|---|---|---|---|
| Revenues | 351689 | (57251) | ||
| Revenues from donations | 9342 | (283538) | ||
| Revenues other | 3607 | (218) | ||
| Salaries | 133776 | (108719) | ||
| Social insurance | 29756 | (18060) | ||
| Contractors | 44700 | (33165) | ||
| Write-offs | 1571 | (1532) | ||
| Connectivity and hosting | 2259 | (2012) | ||
| Rents | 2769 | (2681) | ||
| Interest expenses | 1 | (550) | ||
| Travel expenses | 2359 | (3499) | ||
| Other expenses | 6064 | (5169) | ||
| Donations | 1873 | (5100) | ||
| Taxes | 40551 | (45171) | ||
| Net profit | 98958 | (115350) | ||
| Sums | 364639 | (341007) | 364639 | (341007) |
The major Revenues items are grants from the Linux Foundation (54,219 €), Facebook (44,715 €), Stripe (47,824 €), and from these paid projects: Gpg4VS-NfD (79,800 €), Gpg4All (48,000 €), and EasyGPG (65,000 €).
The Rents are for the room used as an office in my house. Other expenses sums up money spent for magazines, power, office supplies, advertising, conference fees, legal costs, etc. Donations have been given to Netzpolitik.org, Freundeskreis für Flüchtlinge in Erkrath, Wikimedia, and the Freie Software Freunde.
As with almost all software development companies, the majority of expenses are staff costs. Not counting taxes, which depend on the annual profit, we had total costs of 225,000 € with 207,000 € spent on Salaries, Social insurance, and Contractors. My share of this were 47,400 € regular salary (of which I need to pay social insurances fully myself) plus a profit sharing bonus of 24,700 €. We made quite some profit last years due to the good revenue situation and because one of our employees substantially reduced his working hours to finish his PhD.
