Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Cadus Pharmaceutical Corp. (KDUS) -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (240)	9/9/2000 6:15:19 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 1833

I'll punt and wait for Bob or Peter to arrive. I did find this, but I can't find a web-based translator for it. I stuck it into this translator, but the language wasn't recognized...... world.altavista.com Deferred tax assets of approximately $19,582,000 and $7,204,000 at December 31, 1998 and 1997, respectively, relate principally to tax net operating loss carryforwards of $21,459,000 and $13,933,000 and research credit carryforwards of $2,111,000 and $1,212,000 at December 31, 1998 and 1997, respectively and also to the current litigation reserve pending of $18.5 million. An offsetting valuation allowance has been established for the full amount of the deferred tax assets to reduce such assets to zero, as a result of the significant uncertainty regarding their ultimate realization. The aggregate valuation allowance increased $12,378,000 and $3,417,000 during the periods ended December 31, 1998 and 1997, respectively.

To: peter michaelson who wrote (240)	9/9/2000 6:34:06 PM
From: Mike McFarland	Read Replies (1) \| Respond to of 1833

I'd rather see a large dividend paid than see the money pissed away--I hold my share of Cadus in an IRA. Of course a payout isn't exactly the best bang for the buck here is it--and I think Rick has covered that a dozen times... With an average cost down around 60 cents, I'm guessing I can get out of a third of my shares for 3x in a few weeks or months and then I can walk away from this "free speculation" and shoot for 10X on a time scale of several years. Ran a stupid test and sacrificed a few percent of my shares on Friday, ha! I won't do that again, theives! I suppose if a person has to have their money right now, they are really going to have to pay up--it must take a little while for the story to become obvious to everybody. And there is Icahn to wonder about--does the fellow have a knack for building something out of nothing, or does he generally have bad luck with everything he touches? I know the name, but don't know a thing about him--maybe I'll check Amazon.com and see if anybody has written a book about the guy. Yes--King Icahn : The Biography of a Renegade Capitalist by Mark Stevens. Well I will just have to add that to my shopping cart. Interesting, already something in my cart From Alchemy to IPO The Business of Biotechnology , heh!

To: peter michaelson who wrote (240)	9/10/2000 1:24:32 PM
From: RCMac	Read Replies (1) \| Respond to of 1833

>> Did KDUS previously deduct the $18.5 escrow when the liability was established? If so, $18 of the $30 loss carryforward would be eliminated on reversing the liability, leaving a $12 million carryforward. << I'm no expert on corporate tax issues, but there’s also this in the 10-K: “The Company has incurred operating losses in each year since its inception, including net losses of approximately $8.5 million during the year ended December 31, 1999. At December 31, 1999, the Company had an accumulated deficit of approximately $52.1 million, which includes a $19.1 million reserve (including interest earned on the escrowed cash) for litigation damages with respect to the patent infringement litigation with SIBIA.“ The net operating loss carryforward (NOLCF) should roughly equal accumulated operating losses – “roughly” because financial accounting rules and tax accounting rules have different requirements, with some major and some trivial differences. I translate all this to mean that the NOLCF of $30.7 million that Peter asked about does not include the amount of the litigation reserve. The reversal of the SIBI v. KDUS judgment therefore leaves that $30.7 million number unchanged, and available to net out any future net profits.