Hweb2...DAIO
There is another poster on iHub that wrote DAIO's CFO about this back in 2Q. The CFO was vague in his response. I'm aware of this because this person and I privately communicate since we connected up on SCKT awhile back. He's the one who pointed out the similar situation between the two companies on their deferred tax loss carry forwards. If DAIO's auditor concludes that they are more than likely to use up those carry forwards, then they need to be moved from the negative side of the balance sheet to the positive, which means they aren't deducted anymore in quarterly numbers.
From SCKT's 10K this year:
Effective December 31, 2016, we released our valuation allowance for deferred taxes and set up deferred taxes on our balance sheet. With the consideration of available evidence, including three consecutive years of increasing net income and expectations for continued sustainable profitable operations, we believed that as of December 31, 2016, and in accordance with the guidance provided by ASC 740, that realization of deferred tax assets as of December 31, 2016 is more likely than not.
