EZEN: Accounting experts could you tell me if I'm on the right track here?
It seams to me (as an accounting and income tax challenged individual) that although EZEN was only subject to the alternative minimum tax, they should have released "valuation allowance" for the fully taxable income they recorded for 2005?:
Management has determined at this time that it is more likely than not that the Company will recognize a portion of the benefits of its federal and state deferred tax assets. Accordingly, in 2005 a provision for current income tax of approximately $47 thousand relating primarily to federal alternative minimum taxes was recorded, which was offset by the release of a valuation allowance of approximately $138 thousand in the fourth quarter. As a result, a valuation allowance of approximately $31.9 million has been established at December 31, 2005, resulting in a net deferred tax asset of approximately $138 thousand. The amount of the deferred tax asset considered realizable could be reduced or increased in the near term if estimates of future taxable income during the carryforward period change.
With any luck, they'll file their ammended 10k to clear-up this issue soon.
"Our houses are such unwieldy property that we are often imprisoned rather than housed in them." - Henry David Thoreau, Walden: Economy, 1854
AI
