Value Microcaps Motherboard

[abh3vt]

Michael, doesn't it strain credulity for EZEN and their accountants to claim that they won't recognize a decent chunk of this valuation allowance in the future?

This is a company that has been solidly profitable for the past two years, and given their restaint on R&D and marketing, should be profitable for the forseeable future.

They don't have to bring the full valuation allowance on to the BS, but what about 25%? 50%?

The delay in doing this is because there is serious doubt as to whether they will be profitable enough to recognize the full allowance as an asset. I don't know whether its more conservative to recognize the allowance as an asset or not. However, those who focus in the income statement are led to believe that net income is a lot higher than it might be.....