Replies to post #2959 on Viaspace, Inc. (VSPC)

[tommy 9 fingers]

Hmmm.... good point about the military stuff that might be a reason not to combine both companies at some point. But my gut is telling this might be in the future for VSPC and VGE and the neat thing is they don't have to do it unless the want to.

I think my main reason for looking at all the angle is to see how it could affect my investment and I am seeing is all good and no negatives.

[tommy 9 fingers]

Just some thoughts to add to this,

Samsung is a Korean company and I think Toshiba is as well. Samsung is the one with the military battery contract. So it is possible to for the US government to contract with companies of at least NATO allied foreign countries.

I have also read stories of some of the biggest military suppliers such as GE having USA military and national security contracts while using China suppliers in supplying components to a product sold to the military that could be considered sensitive.

This is not to say that your concern is not valid as those articles were directly pointing out the national security concern of foreign countries that are not considered allies being so deeply involved in our military or national security supply chain. Certain elements in congress have actually tried to pass laws that eliminate this from happening, unsuccessfully. I think that with big companies like GE, Boeing, etc lobbying congress not to pass a law like this, then it will never happen.

Also I think VSPC is a US listed company and VGE will be a US listed company based out of the Virgin Islands. I do not think VGE will be a Chinese company. It will be a USA company doing business in China.

But your point is still very valid and it may be an advantage to keep the companies separate for the reasons you point out. Or for tax reasons.

From what I understand the Virgin Island incorporation is more of a tax loophole strategy than anything else and also I think helps protect them from lawsuits to some degree. I think some in Congress are talking about closing this tax loophole of incorporating in these tax haven Island states. But lobbying will likely make this a fruitless effort. It became public knowledge that some of the biggest companies like GE have used this strategy of incorporating their subsidiaries in these Island tax have states. Also B of A and Citi Group made big news about their use of this strategy to avoiding paying billions of dollars in US taxes while at the same time taking TARP money.

Funny don’t you think, that the only ones left in the US actually paying their taxes is us poor slobs and all we get is Cash for Clunkers, just what I need to keep my small business afloat another car payment.