Replies to post #92676 on Vystar Corp (VYST)

[BeamMeUpScotty]

Well here’s how I see it - Rotmans will have already taken legal advice from a suitably qualified SEC securities law attorney as to whether their business model reversing into the VYST shell would be able to use those net operating losses or not.

So either they can or they can’t but I’ll bet they’re completing this deal knowing which of the two it is. So they’re going into this reverse merger with their eyes wide open.


Frankly with the kind of profits that they’re expecting to make the possible available net operating losses are a small amount and considering recent tax cuts in the USA those tax cuts will more than make up for not being able to use those NOL’s - If they can’t that is.

[uglypug]

From the 10K:

At December 31, 2018, the Company had approximately $20 million in Federal tax loss carryforwards that can be utilized in future periods to reduce taxable income and begin to expire in 2038. Pursuant to Internal Revenue Code Section 382, the future utilization of our net operating loss carryforwards to offset future taxable income may be subject to an annual limitation as a result of ownership changes that may have occurred previously or that could occur in the future.

There are also limitations if insider ownership changes above a certain amount as well, this next filing should give us some idea of where they're at.