Hi everyone
A quick update for Kickstarter and Indiegogo Dwarf backers.
We have published the survey to assess the amount of people that will opt-in for the 150€ solution.
Check out your e-mail inbox. New updates are now online in both platforms and contain the link to the survey.
Let us know your choice!
Best
Gianfranco
It is my understanding that legally speaking, the crowdfunding pledge was a donation.
Would this 150€ payment be a donation, too, or a purchase?
I’ve just reply to the survey. I’ll agree for the 150 euro but please (!!) make a complete test of the device, expecially for the supply noise (already reported on the forum) in my case I’ve already paid 305 euro on Kickstarter.com, now 150 is a total of 455 euro (!) more than the online shop. I won’t spend more money for another power supply!
Thanks and Happy return
Yours is an excellent question, @regentbower.
Without resorting to legalese, crowdfunding is a full-risk investment in which you can actually lose the entire amount invested and there is no legal way to enforce responsibility or liability. You trust a company and give them money, they can succeed or fail.
Now this current offer, unless backed by a binding contract of some kind, is just a gentleman’s agreement between you and MOD. Does the survey offer any hint as to a guarantee for backers? I would think that, to make it a sound and attractive offer, there would be some kind of assurance on their side for your new payment.
I’d wait to see MOD’s response to that.
@gianfranco before i fill out the survey, i have one question:
which option is more beneficial for the health and longevity of MOD Audio UG? if a backer chooses to wait for fulfillment, does that have the effect of allowing another unit to be prepared for commercial sale, ultimately helping the company?
…that question is, for me, more important than getting my Dwarf sooner.
I just dropped by to ask exactly the same question. Thanks!
Happy weekend everyone!
Legally it is a purchase of a coupon, like buying a gift card or Google Play credits.
We will not collect pre-payments. We will only collect payments when the units are ready to ship, so we do not offer more risk for backers.
Hi @plutek
The most beneficial for us is that people go for the 150€.
When going for the 150€ option, the company’s cashflow impact is contained and we get the following upsides:
There is a consideration with the production contractor, as it has a maximum capacity. But, in the way we planned sales, there is space to produce enough crowdfunding units in these first six months and the enclosures are already here in Germany.
So, if you have the means for the 150€, I’d highly advise to go for it
Hi gianfranco,
Are you calling us butts ? 
That’s the only translation of “asses” I got from Google.
More seriously, I have several questions :
I’ve read that the delivery of the units for those who will pay the extra 150€ will start around November. Will the process be quick enough so that the last unit won’t be shipped several months after the 1st one ?
If we don’t know what to choose at the moment, will we be able to choose later ?
This sounds very confident that things will go this way. I was considering paying the extra 150€ as it seemed the most cautious way to make sure I receive the Dwarf. Don’t we take a risk by waiting ?
Although I’m not a wealthy person and it hurts my ass to pay extra 150€, knowing that it helps you could make me push the button. I’m still not sure at the moment so I don’t know what to choose in the survey.
Would it be possible for it, instead, to be purchase of the Dwarf itself?
I picture myself explaining the situation to my friends: “Yes, I gave 360€ to this company. No, I didn’t receive anything, because the company folded. Yes, they asked me for 150€ more, so the device is more expensive than the store-bought price (Thomann has the Dwarf at 427€ here). No, the money is only for store coupons that are useless without the device.”
My rule of thumb is that if my friend would make fun of me, then surely it is a bad financial decision. If what I’m effectively purchasing is the Dwarf, and you only have the best of intentions, then why would you not have the legal situation reflect the actual situation? I generally do want to trust MOD, and were I in person with the device on the counter, I would hand over the money. But, online, I would like some more guarantees, if possible. Let us dream: how about I sign a promise to pay, but only send the cash when I get the package and check its contents?
I really don’t want to come off as aggressive, because it is not my intention. But MOD’s vague and over-promising communication on the “Dwarf production updates” thread and the crowdfunding updates set a really bad precedent over any trust regarding “ready to ship” status. For reference, I am an unlucky tier 2 backer who didn’t get a device but was repeatedly told it was just around the corner until it turned out the company was bankrupt.
@gianfranco I am on board with the additional 150€ to get the unit (now) sooner rather then never, however I have to ask - what happened with the voucher that was promised foe the tier three backers? You will honor that as well, right?
And will there be any additional VAT or taxes for delivery tho Germany?
Just fixed it
We can give more precise information soon, when we place the order that we are quantifying now, but the rough idea is to place one big order with the contractor that will serve, between November and December, all forecasted sales and all crowdfunding units for these next three months.
Once the units are ready to ship, we will notify everyone that opted in for the payment and serve on a first-come, first-served basis.
Sure. The option to pay for the 150€ remains open, but you might need to wait for a new production batch.
You do. As we explained in the Reboot planning, we will have a further fundraise in 6 months and it is a risk. Going for it now is the safest way to secure a unit although it has the burden of the extra payment.
No. We are not making a new sale to avoid triple taxation. These Dwarf units, although crowdfunded and not technically a sale, are considered sales by the tax authorities. So, due to this tax perspective, the former company has already collected VAT for all the “sales” of the campaign. Once users make use of their 150€ coupons, we will again collect taxes on the sales of the plugins. So these 150€ are also going to be taxed. If we “sell” again these Dwarf units, we will be taxed for a third time and the 150€ will not be enough to make this a cash-flow neutral operation
I understand the skeptcism but I am not sure how we can overcome this apart from delivering what we promise. I think it is clear at this point that there are no bad intentions here and we are purposedly not collecting prepayments.
The best I think we can do it to have the units ready to ship and then collect the payments for immediate shipment.
Sure. This 150€ go on top of Tier 2 and Tier 3 coupons.
Nope. The 150€ are VAT free.
150€ it is then. Filled the survey and looking forward to the next steps!
I think the thing to worry about is the second option. Reason being is that you’re in essence agreeing to wait forever, ‘until the situation allows’.
Select your option regarding the additional payment to receive the MOD Dwarf
*[ ] I want to make an additional 150€ payment to receive my Dwarf in 2022 and receive 150€ of credits for plugin purchases.
[ ] I do not want to make an aditional payment and I will wait to receive my MOD Dwarf when the situation allows.
As for me, I don’t like either option …
Easy enough in which case, b/c I don’t have to agree to either.
Hi @lunardigs
Sorry if the second option is too vague, but I am not willing to make promises I cannot keep.
At the current stage, the only three things we can affirm are:
we can send a unit if there is a 150€ cashflow injection
if the finances improve we can send units against a smaller payment. When and how much? I don´t know. If plans go as expected, we shall decrease payment to 100€ in 6 months.
we will keep this option of 150€ indefinitely, so people opting to wait are not giving up their Dwarf and can, at any time, enter the 150€ solution.
Hi @gianfranco,
Thanks for your detailed answer. This one brings me another questioning. I understand that the production process can be quite quick. How about the testing and shipping that takes place on your side, knowing that the team is reduced ?
Thanks, it helped me make a decision. It wasn’t easy but I remember my frustration when I thought I would never receive the Dwarf and I prefer making sure that it won’t happen again.
What is the fundraising in 6 months for? I wouldn’t like to pay 150 to get a dwarf and then still see the company be in trouble…