Biokey International Inc (BKYI)

[SeanBoy]

There are 2 important things to consider with NOL deductions being carried forward.

1. The NOL deduction has a 20 year life.

2. Section 382 places limitations on any NOL deduction that an acquiring firm may take during any year. The calculation of this is very complicated, and while BKYI may have lost $80 (your figure), my BEST GUSESS (and it is more guess than calculation) is that the new owners would be able to use no more than 25% of that $80m.

Aside from the NOL deduction thing, your buyout premise has other major flaws. In the way of full disclosure, I would not be terribly unhappy with a $3.60 buyout.