NanoTech Entertainment Inc (NTEK)

[makeithappen]

Nope, accumulated deficit can be used to offset retained earnings over time. So if the have an accumulated deficit of 5 mil and for 2013 they have earnings of 5 mil their taxable income will be 0, or if they only have 3 mil in retained earnings (profits) the accumulated deficit carried to the following year will be 2 mil still showing a loss on the balance sheet. This accumulated deficit can carry over to offset retained earnings for tax purposes.
This will reduce their tax burden as the company becomes profitable and until the accumulated deficit is gone.

From Wikipedia:

"In accounting, retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings." (Wikipedia)