Intellipharmaceutics International Inc. (IPCI)

[InTheTrenches]

The Company has provided a full valuation allowance on the Company’s loss carry-forwards as it is more likely than not that its loss carry-forwards will not be realized.

I think you need to be a CPA to understand this, lol. I don't really understand it, but this document might be useful:

http://accounting-financial-tax.com/2009/08/deferred-tax-asset-and-its-valuation-allowance-with-case-examples/

It appears that for carry-forward tax losses, a company has to assess likelihood of realizing this carry-forward (more likely than not or less likely than not), in order to determine how to handle this carry-forward in this tax year and future tax years.

To assess the likelihood of realizing, CFO needs to look at recent few years of performance (profit or loss?) and the near-term projection of profitability (this year & next year). If we (IPCI) had a signed contract with a pharmaceutical OR we had an FDA approval, my best guess is this statement would be changed to "more likely than not that its loss carry-forwards WILL be realized. But, I'm not a CPA.