OTCPK:TNGZF - Post by User
Comment by
nkbourbakion Mar 22, 2018 9:01am
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Post# 27759541
RE:RE:RE:RE:Whitewash article in FP today about the merger
RE:RE:RE:RE:Whitewash article in FP today about the mergerpennydredful wrote: That is equal to shareholders equity which implies the equity is zero assuming the deffered tax asset is pie in the sky.
Not so fast. Shareholders equity was 22.1 mm at end of Q4. Knock out 8.7mm of DTA and you have 13.4mm. But you can't really take any of these numbers seriously, because they have been consistently writing down the value of their royalty agreements and promissory notes.
Interesting to look at DTAs at year end:
2014 - $0.2 mm
2015 - $1.0 mm
2016 - $5.1 mm
2017 - $8.7 mm
So they're writing down their investments at an alarming rate, but are simultaneously shielding the full extent of those losses by recording significant DTAs. You can only do this if there's a reasonable expectation that you'll make enough profit to eventually realize them. Based on their short and poor track record, I don't see how it's reasonable to have $8.7mm sitting on the books. I'm no expert and am not claiming it's a scam; just seems sketchy to me.