TWO "Nuggets" of good news in the INFR 10-k...
a.) It would appear that Morgan has liquidated at least 330,000 and as many as 655,000 of the 1,190,332 class B shares that they held a year ago...(and they had options to purchase some more which expired today...at $5 and $5.25...so my guess is they exercised them.)
This is based on the following information in the 10-k: That as of 4/16 there were 535,332 shares of class B outstanding and previously reported data that Morgan owned 1,190,332 class B shares. Morgan was deemed a "regulated" holder and, as such, they could convert shares of Class B common into Class A ONLY to the extent that it would not give them more than 5% of the then outstanding Class A common stock (so they could not own more than about 325,000 shares of class A)...Thus they have between 0 and 325,000 shares of Class A at 4/16 and the 535,000 of Class B at 4/16 and therefore the conclusion that they have liquidated between 330,000 and 655,000 shares...This is GOOD news as this stock represents an "overhang" of shares to be sold as Morgan is probably not acting as a fundamental long-term investor...but may have an imperative to sell based on the terms of their various investment groups and partnerships independent of the prospects of the company.
b.) Also...buried in the notes of the financial statements are the details of their tax asset...which until they begin to show continuous earnings will have a full valuation reserve to zero it out on the balance sheet...but represents a HUGE hidden asset. They have about $22,000,000 of NOLs for Federal Tax purposes and about $6,300,000 for state tax as well as about $1,100,000 of various CREDITS...thus net, net , net this would be worth about $11,000,000 in real CASH over the coming years if all of this can be realized with the company being profitable....This is OVER $1.50/share of real cash value for the company (in ADDITION to the great balance sheet...) IF they operate with profitability in the future. The value would not be as much for a prospective acquirer, as the NOLs would be limited on a "change of control" but would still have substantial value. The other potential value is if they acquire a property that is profitable...the present-value cash flow from it will be enhanced as they can utilized some of these NOLs and credits more rapidly.
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