no, not impairment charge. Because impairment is a 100% negative, but the non-cash charges this time is a 100% positive.
Why?
The answer Is:
the non-cash charges this time is because our BAA share price increased. That means, if our BAA price were the same as Q4 of 2015 we would have no non-cash charges; but if our BAA price were lower than Q4 of 2015 we would have non-cash gain which would make the earning beautiful.
Now, do you like the non-cash charges or non-cash gains?
I need give more detailed explanation here for the non-cash charges or non-cash gains related to stock price.
Fore example, we have 50M warrants outstanding at the end of 2015 Q4 when BAA price was $0.15 and now BAA price is $0.35 at the end of Q1 of 2016, then we will have a $10M non-cash charges. Why? due to the warrant excise price is the same, so, no matter when the warrant is excised the company will get the same cash amount. However, the 50M BAA shares would have $10M more value now than the end of 2015 (50M x ($0.35-$0.15)).
OK, go to the opposite now, if BAA price were $0.05 at the end of Q1 of 2016 then we would have a $5M non-cash gain.
Now you know it, so you want a bigger non-cash charge next time if that is stock price related. Best we have $100M non-cash charge next time, that means BAA will be $2.35, a $2 increase.
