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Tuesday, September 07, 2021 9:18:38 AM
LQMT’s cumulative losses are in the neighborhood of $280 million +/- and are carried on the balance sheet.
The IRS allows companies to use previous losses to offset current taxable income…the previous losses do not expire.
When companies combine, the balance sheets are merged and the line items are netted out and become the balance sheet for the combined company. In the case of accumulated losses the total moves to new balance sheet. It has value as a tax offset for the new company.
So…how much is it worth as an offset…that depends upon the incremental tax rate for the combined company.
If the incremental tax rate is 40%….it’s offset value is 40% of $280 million or something like $112 million.
If the incremental tax rate is 20%….the benefit drops to $56 million.
Either case, it’s a big number….the largest on the balance sheet and it’s tracked religiously on each and every 10Q. If it wasn’t important, I would stop reporting it or bury it in a footnote on page 78.
If there are any tax professionals out there, I welcome any input that may be relevant.
Recent LQMT News
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/20/2024 08:11:00 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 05/15/2024 08:49:57 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 09:05:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 11/21/2023 10:15:45 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/21/2023 10:26:27 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/10/2023 08:37:18 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/28/2023 08:41:42 PM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM