Replies to post #116940 on Protagenic Therapeutics Inc. (PTIX)

[eddy2]

Once the preliminaries are done with we will be moving forward. Warrants will be exercised adding much needed revenue as well the selling of tax debt ie: converting of the tax debt too equity.

The process does one of two things. The first of course is the tax credit from depreciated assets creates a share holders deficit or credit. The other is the releaving of the tax debt too the new equity holders allowing the tax debt to be transferred goes right to the bottom line of your revenue.

Now yes this does increase the future tax bill but the company has the option of paying the tax’s or opting for another round of financing in selling the newly created tax debt “ treasury stock “

Now we all know it’s not legit revenue in the sense that a product is being sold. What is happening is capital is being built. The company can piggy back by purchasing stock in another company that is creating legit revenue.

This will often show up in your recievable assets as well by taking your gross revenue and subtracting the retained earnings that is your capital surplus minus the tax debt paid. The capital surplus is made up of borrowed capital as well options and warrants that are exercised.

Because capital borrowed is not taxed of yet a tax debt is then applied that can again be sold to the public under an equity offering to raise additional capital. The tax from capital debt can be withheld until the proceeds are used. It is very important to take into account the companies cash position and the future tax debt that can be brought forward ie: treasury stock

There is plenty of simpler ways to express what I said above. The bottom line is there is a huge capital requirement to move the company forward and I hope as a person buying an equity stake understands the importance of supporting those very capital requirements that will be needed to see the company create legit revenue by its own created synergies or by the purchasing of other legit revenue generating avenues.

Don’t let recievables scare you off. Under many private placement situations using various different financial instruments they can hedge them selfs from the liability risk the recievables may hold.