Positive equity and new capital can coexist with an operating loss. (A) The formal EP-01 worked ledger has separate issuer, Pool and Treasury owners. Step-9 snapshots reconcile assets = liabilities + equity: issuer 1,100 = 1,100 + 0; Pool 345 = 55 + 290; Treasury 52 = 0 + 52, including 50 restricted development capital. The numbered journal legs are separate transactions, not simultaneous balances. Solid open arrows transfer cash; dashed arrows transfer or return VVAL. Minting 100 creates matching issuer backing and liability. Returning and burning 40 VVAL at step 12 accompanies 40 cash redemption and reduces both. Paying 60 VVAL for care changes the holder, not the issuer liability. A TIF advance of 20 becomes a receivable; recovery of 15 principal is not income. (B) The proportional waterfall is 120−115−10−5=−10 fictional USD. New capital of 50 is financing outside that earned result. The ledger is separate from reserve simulation and does not establish solvency, distribution entitlement or legal priority.
