Protagenic Therapeutics Inc. (PTIX)

[StockBang]

It's actually a nice thing that they can use. It is not a cash factor at all. It will be booked as a loss. Better yet, it creates a tax loss which can be carried over to future years to reduce tax liability when they start churning a profit.

This write off was a great piece of news that came out of the termination of the agreement. It looks bad on income for books in 2011, but will be gone forever now. And we will be left with a 1.2 million deferred tax benefit. I like it.