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Replies to post #50800 on Vystar Corp (VYST)
armour1955, in essence, what I did...
In essence, I reflected that the Net Income would have been greater because of the money that would have been used to pay the taxes that would have come out of the Gross Income.
Actually, I'm not adding it to the NOL. Really, I'm just never taking it out. I explained it as I did for those to have an easier understanding where it came from within the VYST post.
v/r
Sterling
Churak, respectfully, with this NOL thought...
Respectfully, it's not incorrect. An Accumulated Deficit is synonymous to be an accumulation of losses since inception. Yes, Net Operating Losses (NOLs) are available for tax purposes, but those loses are derived from Accounting Losses. Heck, everything evolves around the Accounting.
The only thing that I will give you is that the total amount for the Tax NOL might not be the entire $31,319,398 as that would be the best-case scenario. This is because Congress enacted a code through Section 382 within the IRS Code where it was modified to limit the losses of a corporation ability to carry forward and set off NOLs if an ownership change has occurred. Still, it's predicated on a certain percentage of ownership that changed.
I'm fairly confident that VYST will have a substantial amount to be applied for a Tax NOL. I'm not an Accountant so this is just based on my little research as a shareholder.
v/r
Sterling
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=147056739
VYST Tax NOL = $18.6 Million Per its 10-K...
Just to make it very clear. I did not buy VYST because of any Tax Net Operating Loss (NOL). I bought VYST because of the acquisition/merger of Rotmans Furniture that's coming into VYST that is going to help propel the company to the NASDAQ.
My point for mentioning the Accumulated Deficit was to show how it can benefit VYST by positioning the company to have some Tax NOLs since some were trying to twist it to be something of the contrary.
Well, per what's indicated within their last 10-K filed with the SEC, the Tax NOL is currently $18.6 Million which was reduced down to that amount because of the change of ownership with Steve Rotman coming on board to takeover the company per the IRS Code within Section 382 as I had explained in the post below:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=147056154
https://www.sec.gov/Archives/edgar/data/1308027/000138713118001267/vyst-10k_123117.htm
The utilization of our tax losses could be substantially limited if we experience an ownership change as defined in the Internal Revenue Code.
Because of net operating losses we have experienced for federal income tax purposes at December 31, 2017, we had federal net operating loss (“NOL”) carry-forwards of approximately $18.6 million ($17.8 million for 2016) pretax available to offset future taxable income. Our ability to utilize NOL carry-forwards to reduce future taxable income may be limited under Section 382 of the Internal Revenue Code if certain ownership changes in our Company occur during a rolling three-year period. These ownership changes include purchases of common stock under share repurchase programs, the offering of stock by us, the purchase or sale of our stock by 5% shareholders, as defined in the Treasury regulations, or the issuance or exercise of rights to acquire our stock. If such ownership changes by 5% shareholders result in aggregate increases that exceed 50 percentage points during the three-year period, then Section 382 imposes an annual limitation on the amount of our taxable income that may be offset by our NOL carry-forwards or tax credit carry-forwards at the time of ownership change. The limitation may affect the amount of our deferred income tax asset and, depending on the limitation, a significant portion of our NOL carry-forwards or tax credit carry-forwards could expire before we are able to use them. In such an event, our business, financial condition, results of operations or cash flows could be adversely affected.
TonyJoe1957, with this Tax NOL thought...
I agree with you as it's really not as much as a big deal as some were trying to negatively slant.
I do stand corrected that the Tax NOL is not $31,319,398.
However, instead, it's $18.6 Million and growing.
I will take a Tax NOL of $18.6 Million any day.
Regardless, I think we will be fine here with VYST.
v/r
Sterling
Churak, with your Tax NOL thought...
I guess what I'm trying to say, especially after seeing what they stated in their 10-K... is that an Accumulated Deficit is not necessarily equal to the Tax NOL, but the Tax NOL is derived from the Accumulated Deficit.
VYST has a Tax NOL of $18.6 Million of which is derived from the $31,319,398 Accumulated Deficit.
v/r
Sterling
Churak, but this is what I'm saying now...
True, but this is what I'm saying now here with VYST (thanks for the education on the matter):
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=147056836
TonyJoe1957, with this Tax NOL thought...
I agree with you as it's really not as much as a big deal as some were trying to negatively slant.
I do stand corrected that the Tax NOL is not $31,319,398.
However, instead, it's $18.6 Million and growing.
I will take a Tax NOL of $18.6 Million any day.
Regardless, I think we will be fine here with VYST.
v/r
Sterling
This is huge because the $18.6 Million 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.
03/12/19 1:03 PM
AI
