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Politics : RAMTRONIAN's Cache Inn -- Ignore unavailable to you. Want to Upgrade?

To: NightOwl who wrote (13862)	2/28/2008 4:56:49 AM
From: NightOwl	Read Replies (2) \| Respond to of 14464

Oooooooooo! First the "good" news from NOTE 10, p.F-27 of the 10K: "During 2007 the Company expects to utilize net operating loss carryovers of approximately $5.7 million. During 2007, 2006 and 2005, net operating loss carryovers of approximately $5 million, $12 million, and $15.6 million, respectively, expired. In addition, during 2006, capital losses of approximately $11.3 million expired. These items decreased the recorded valuation allowance in each respective year. And the "bad" news... I don't know whether that "2007" reference in the first sentence is a typo and should be "2008." ...Or whether it suggests that their "2007" tax period doesn't close until some future date. In either case we seem to be expiring our NOL carryforwards faster than we can generate tax liabilities to offset them against. But I suppose the important point is that the $7.3M tax benefit recorded in Q4 will likely be used up... and replaced by another one... by April 2009. Other than the tax benefit information the only other item of significance in the 10K I noticed is the updated info on outstanding warrants at NOTE 5, p. F-15. About 177,000 of the old warrants priced at $3.04 were converted to stock in January of 2008, leaving about 523,000 outstanding. That should increase Q1 "Other Income" by over $0.5M which could offset most if not all the Chinese New Year delays. If there were additional conversions in February the it might also account for some of the recent selling pressure, albeit with additional increases to "Other Income." 0\|0