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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (4719)	4/24/1999 11:23:00 AM
From: Logain Ablar	Respond to of 15132

Kirk "The losses are tax credits (Pete would know better, but I think they are called "carry forwards") and show up as bottom line net income in profitable years. One has to be careful to not use this income when looking at earnings growth...." Under FAS 109 deferred assets and the deferred tax benefit of recognizing a NOL carryforward would show up in earnings in the year generated IF its reasonable the company would be profitable in near future and can prove this to auditors (insurers are able to do this with their investment portfolio by indicating transfers from tax exempt to taxable securities). In UTEK's case (and I haven't looked at thier balance sheet) I doubt if they are recognizing the benefit currently. It would be stated separately in the footnotes of the annual report. This is only a partial answer but I hope it helps. Tim