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Re: TRUSTUNITS1000000 post# 36190

Sunday, 07/28/2019 9:58:05 AM

Sunday, July 28, 2019 9:58:05 AM

Post# of 37346
No the NOLs are not cancelled if the commons are cancelled. They are a net operating loss so they can be used to reduce taxable income in the future. So there is $5B in NOLs here. At the top tax rate of 30% they could save $1.5B on taxes. ie: Say they earned in profit $5B next year, instead of paying $1.5B in tax they would pay $0 because the $5B NOLs would be subtracted from the $5B in profit leaving $0 reportable profit.

However, the NOLs appear to have gone to Transform Holdco in the APA, there is a transaction in there with a few thousand private shares of Transform given as consideration which meets an IRS rule. Others can explain this in more detail.

Secondly, SHLDQ is not a going concern. They have no assets that generate revenue anymore and no way to get any. There can't be any profits if there is no revenue generated or assets sold that have gains. Therefore even if the NOLs are with SHLDQ they are useless to SHLDQ as they can't be used against any profits. Even if the lawsuit for $2B is won, that would reduce the NOLs (if they had them) but the $2B from the lawsuit would go directly to creditors, the commons see nothing of that at all. So it would benefit the creditors not the commons.

There is no possible way for SHLDQ to get $6B of cash to pay the creditors which has to happen (legally) before the commons would see anything. Therefore the commons on that basis alone are worthless which is why they are getting cancelled because there is no point of them continuing to exist. They can't possibye have any intrinsic value in the future.

Will there be pops in the share price based on unfounded exuberance? Possibly but that seems unlikely, there really are not any surprises that are likely as most if not all relevant information is publicly available now.

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