Replies to post #2577 on Vystar Corp (VYST)

[Cvanhoof]

MUST READ! Awesome post!

[OCMillionaire]

these are all the insider ownerships in the form 4's?!

[solmer]

Do we know what the float is?

[War Shark]

Directors are on BOD's of Billion $ Companies

[Stock Logics]

MORE MONSTER DD ! WOW, THANK YOU SIR !

$VYST

[ximon]

Just Huge DD! Thanks stervc! xi

[OCMillionaire]

to add more to your point, I found further Joseph Allegra owns Zurich Inv, the hedge fund that has 25+ billion Aseets Under Management. (AUM) Check out the easy insider buys he has done over the years and how much he has added to his core position. https://www.marketwatch.com/investing/stock/vyst/insiders?pid=64155660

[stervc]

Key Point #5**Significant VYST $31,319,398 Tax NOL Benefit

VYST has $31,319,398 listed on their Balance Sheet as an Accumulated Deficit within their last Quarterly filing below:
https://www.otcmarkets.com/filing/html?id=13070644&guid=kjy8UWUD04sjm3h

To first understand what this is and the importance of what it means, I think it is important for one to understand that "Liabilities" and "Expenses" are two different things. "Liabilities" apply to the Balance Sheet and "Expenses" apply to the Income Statement. The $31,319,398 listed on their Balance Sheet as an Accumulated Deficit is nowhere near as bad as I believe it is being perceived by some. An Accumulated Deficit is used as a Tax Shelter for tax write-offs. It's a non-issue and basically a psychological paper entry because it will only affect the Balance Sheet and not the Income Statement for valuation purposes to derive an Earning Per Share (EPS). This will have no negative effect on the outcome for what the company's EPS will be now or in the future, but instead, on the contrary.

An Accumulated Deficit greatly enhances the company’s position as a huge acquisition/merger candidate. This is very attractive for a huge positive Revenue generating company with a significant amount of Gross & Net Income to merge into VYST. Therefore Rotmans Furniture, with its over $35 Million in Revenues and while having 48% to 52% Gross Profit Margin and a 19% Net Profit Margin is a great candidate for VYST.

This is huge because the $31,319,398 is available to be used as a 2 year carry back and 20 year carry forward Tax Net Operating Loss (NOL) to reduce the taxable income for the company’s future tax years. That’s an average of $1,565,970 in the reduction of its taxable income per year over a 20 year time frame that’s derived by dividing such below considering VYST has an Outstanding Shares (OS) amount of 500,000,000 shares. If this number or any other variable changes in the future, then use the Substitution Property accordingly:

$31,319,398 ÷ 20 Years Max Tax NOL = $1,565,970 Per Year Reduction

For the purpose of what I believe is more logical and since getting to the NASDAQ is a primary goal, I believe VYST after acquiring/merging into Rotmans Furniture, will use the $31,319,398 Tax NOL to be carry forward to strengthen their Income Statement over the next four years since they are very profitable. This means that an average of $7,829,850 per year would exist for the reduction of its taxable income per year over a 4 year time frame derived by the logic below:

$31,319,398 ÷ 4 Years Logical Tax NOL = $7,829,850 Per Year Reduction

For what I am going to explain next, I will refer to the $7,829,850 that I explained above as Derivative Net Income for the purpose of deriving an understanding of what this $7,829,850 tax benefit would be worth over the next 4 years considering if VYST was to acquire/merge into a company generating significant Revenues and Net Income such as Rotmans Furniture which was indicated within their 10-Q filed with the SEC.

This is basically like adding $7,829,850 back into a merging company’s Net Income that will be derived for any substantial amount of Net Income that would be generated. Merging into VYST would be better versus registering as a new entity or IPO-ing because you won’t have such huge ”tax shelter” otherwise as a huge tax benefit already existing here with VYST. Please, let me further explain.

Considering the Outstanding Shares (OS) of 500,000,000 shares for VYST, we can derive what I will call a Derivative Earnings Per Share (EPS) to determine what the value of this tax benefit is worth to a company coming into VYST generating significant Net Income considering the formula below:

Net Income ÷ Outstanding Shares (OS) = EPS

$7,829,850 ÷ 500,000,000 shares = .0157 Derivative EPS

The current Price to Earnings (PE) Ratio for the Furniture Industry within the link below is 17.41, but since the trailing PE Ratio is 36.53, I will use 20 which I believe is conservative:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

So, conservatively speaking, this makes the Accumulated Deficit of $31,319,398 from being approximately worth $7,829,850 per year over the next 4 years to be worth .314 per share as derived below:

.0157 Derivative EPS x 20 P/E Ratio = .314 Per Share of Added Value

I am simply saying that if Rotmans Furniture merges into or is acquired by VYST, which was indicated to be doing such within their 10-Q filed with the SEC, since it is profitable with having Net Income, then the amount of value ”to be added” for worth from the NOL will be .314 per share as ”added valuation” over the next 4 years to a the VYST EPS. This alone is absolutely huge! This means that the .67+ and the .26+ per share VYST valuations within the post below can be made to be .98+and the .57+ per share VYST valuations;
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146050256

So, in closing, the $31,319,398 that you see on the Balance Sheet is actually an Accumulated Deficit during the development stages and is listed under the Liabilities and is strategically placed to not hurt the company as such is not in the form of any kind of notes to bring about any dilution. It was created Accumulated Deficits from the old management since the inception of the public entity and is being used by the new management as a Net Operating Loss carry forward for federal income tax purposes.

Below are some good videos to listen and understand the logic regarding Net Operating Losses (NOL):

http://www.investopedia.com/video/play/net-operating-loss-nol/?ad=dirN&qo=serpSearchTopBox&qsrc=1&o=40186

http://www.investopedia.com/terms/l/losscarryforward.asp

http://www.investopedia.com/terms/n/netoperatingloss.asp

Net Operating Losses (NOLs) on the 3 Financial Statements
https://www.youtube.com/watch?v=p_53cPDNxCQ

v/r
Sterling

[StocksGoneWild]

This post belongs in the Museum of Modern Art. Thank you! VYST

[mymonies]

LOOK AT THE PEOPLE WHO OWN SHARES IN VYST AND NEVER SOLD A SINGLE SHARE

[mymonies]

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146094320

[doogdilinger]

HUUUUUUUUUUUUUUUGE DUE Sterling!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[doogdilinger]

Everyone needs to read and absorb this VERY significant/relevant post of Sterlings that I'm replying to!!! It should remove any and all doubt that anyone on the sidelines had in regards to the pending buyback program initiating and the massive Rotmans acquisition both quickly approaching!!!

[doogdilinger]

Scroll back and read Sterling's Key Point #4 folks>>>

[StocksGoneWild]

Billionaire Vystar Shareholder, Joseph Allegra...peeps would be smart to do a little research on this bonafide billionaire...I'd bet you 1 billions of his dollars that he's Dollar Cost Averaging(DCA) himself to some more VYST. Form4's show him buying a bunch of shares at $3.15 I think back in the day...still holding all. Check the form4's...yeah, i'd bet he's been DCA'n a little.

" rel="nofollow" target="_blank">https://www.youtube.com/watch?v=

[steph1971]

Wow.. this is information everyone should read and digest. Thank you.

Most definitely long and strong!! VYST!!

[DISTATRADE]

Wow, thank you much for the big share Stervc!

This is DD everyone should definitely see!

Cheers $$$ VYST $$$$

GLTYA !