Carlton Companies, Inc. (fka CTNO)

[Billiam_2]

The purpose of a "Parent Holding Company" would be:

1. Protect and hide assets from the IRS. E.g. Say Leaddog profits $1MM from a deal. The only company having to report the profit would be the parent. They also could report a $1MM loss from Audio Street for business development, real or otherwise.

2. Raise funding for business deals. Leaddog is doing some huge deals (Blue Castle & potentially SSC). Currently they are using Angel Funding from private investors. Leaddogs rate of return would go up exponentially if they used their own money. Parent holding companies can secure loans easier based on the assets of all. They could also capitalize projects by selling stock in the parent holding company.

3. Subsidaries can come and go, while not affecting the parent. Moreover, a failing subsidiary can shelter a healthy one from tax burden.


Evidenced by what we know of current deals, it is time to bring forth and operate the parent holding company," The Carlton Companies."