And then our snapshot, or our balance sheet at the end of 2007, will have on its assets a patent that's now worth 3,000.

...I'm printing the money so that I can buy particular assets,

And amortizing really just means spreading out the cost of this asset, just like depreciation was spreading out the cost of a physical asset.

A patent right is an important property.

So its assets.

That assets, A for assets, is equal to

Malibu Equity and Investments.

So this is a really cool feature of Reddit, and it's actually not that hard to compute.

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

And we said it has these assets.

But they're unsecured.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

The company, Gilead, that holds the patents, has licensed the intellectual property to the Medicines Patent Pool.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

liabilities plus equity.

So the balance sheet is really trying to capture what your asset is worth at that point in time.

And what I wrote here is, it has 4 billion of liabilities.

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.

So the total assets were 5 billion in assets.

You'd have to give up 93 of your net worth.

The Medicines Patent Pool then license those out to whoever needs access to those patents.

In a world without leverage so if I didn't have all this

So this is just another visual representation that

It doesn't sound like we borrowed money or anything.

Patented to whom?

Remember liabilities plus equities are equal to assets.

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

But let's say its assets are worth 1 million.

All of the assets needed to start the firm, the pizzeria.

Or they just have a super flush bank account.

Remember, every time it'd issue a loan, like for right here, it issued a 100 gold piece equivalent loan to D and instead of giving D 100 gold pieces from, say, right here, it just created a checking account for D, which later D paid to A and that's why it's labeled A right here. Let me relabel another thing because the gold is a different color just so you see the gold.

But let's just kind of think about a generic balance sheet for a bank.

So 225,000

I guess you could say non cash assets, right?

Are you a man of means?

And this is how it works

These are my assets, and these are my liabilities.

And if you look at the species level, you saw about fish.

You need also state ownership, especially of land assets, in order to build and roll out infrastructures very quickly.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.