Value Microcaps Motherboard

[stanu78]

I agree with your post abh3vt about the NOL...
I don't remember what GAAP rules about the ways in recognizing the NOL carryforward.

But at least we know and be careful not to miscalculate the valuation of a particular company...

I'd love to know/learn what are the different ways a company can use the NOL benefit. and whether each ways is triggered by a specific situation or a company can choose it themselves.

I know some company get 1 time tax credit for all the past NOL that they had. Some other just let nature takes it course (use it each quarter by not paying any tax but not getting any credit). while some other try to smoothen things out by start paying low (in their IS), but in their balance sheet the tax cost is deferred for the future (amortized). e.g. effective rate 6%, then 10%, then 15%.. gradually... this might be good from shareholder perspective.. less volatility in net income... but I think might not be preferred by GAAP...

Stan