Reverse Mergers

[HokieHead]

Any RM NOL pros here?

I was doing a little research looking at the last 10Q for CLHI back in 2010. Look at the use of the NOL's and the date, November 30th, 2020. To me it sounds like the "ownership change" has occurred here and The Data Source Ltd will have access to almost $130 million in the NOL's here?

That would be almost $5 a share in NOL's if the SS is around 24 million. Insane if accurate. I remember being involved in the PNNX NOL which was around $35 million but this NOL is huge.

Does anyone have more knowledge on NOL's and maybe can dissect this better?

During 2008, we performed a detailed review and analysis of the Company’s historical tax net operating loss carryforwards (the “ NOLs ”). We believe in many circumstances the NOLs, which amounted to approximately $127.6 million as of August 31, 2010, and begin to expire after November 30, 2020, are available to offset future income. However, issuances of our stock, sales or other dispositions of our stock by certain significant stockholders, certain acquisitions of our stock and issuances, sales or other dispositions or acquisitions of interests in certain significant stockholders prior to the filing of our certificate of dissolution could have triggered an “ownership change,” and we may have no knowledge of and/or little or no control over any such events. If such an “ownership change” were to occur, we would be severely limited with respect to our use of NOLs and certain other tax attributes to offset our taxable income, which could result in a significant increase in our future tax liability and could negatively affect our financial condition, results of operation and the amount of any liquidating distributions. As of August 31, 2010, approximately 30% - 34% of the change in control had occurred historically. If an additional approximate 16% - 20% change in control occurs in the future, as determined pursuant to Internal Revenue Service regulations, the Company could lose substantially all of the potential value of the NOLs. These percentages are based on information obtained through public filings and notices received by the Company directly from certain stockholders and may not necessarily reflect all transactions that would be included in determining the status of the Company’s change of control.