Replies to post #330 on United Energy Corp (UNRG)

[HDOGTX]

NOL = Example of a Net Operating Loss Carryforward

Imagine a company had an NOL of $5 million one year and had taxable income of $6 million the next. The carryover limit of 80% of $6 million is $4.8 million. The full loss from the first year can be carried forward on the balance sheet to the second year as a deferred tax asset. The loss, limited to 80% of income in the second year, can then be used in the second year as an expense on the income statement. It lowers net income, and therefore the taxable income, for the second year to $1.2 million ($6 million - $4.8 million). A $200,000 deferred tax asset will remain on the balance sheet to be carried into the third year.

[Milo1]

For people who don't understand the the importance of a 23M NOL. It is a 23 million dollar Net Operatng Loss from the previous company that can be carried forward for 20 years. Pretty cool for the company that merges in to be able to use this, and immediately adds significant value to the shell.