Maritime Resources Corp V.MAE

Income Tax Assets That Came With Point Rousse Acquisition

[nozzpack]

MAE already has just over $17 million in foreword non capital  tax loss pools which can be used to offset future income tax on operating profits.
The offset is dollar for dollar , so these can negate paying future income taxes of $17 m .
Clearly, very valuable to any profitable business.

Now, accounting states that if an entire business is acquired, the relevant tax assets will also come with the acquired business.

As of Dec 31 2022, Signal reported $28.6 million in forward non capital tax loss pools.
As signal had no other operating business  than the Point Rousse mill and Port, it's my posit that MAE acquired  those $28.6 million in forward non capital tax loss pools .

That is, MAE has over $45 million in forward tax loss pools to offset over $45 m in future income tax .

These are very valuable assets to have and HD is very likely to be profitable as would Queensway ....which NFG would acquire in its acquisition of MAE

But it gets better .

Point Rousse had nearly $15 million in deferred income tax assets as well.

These can be cashed in if MAE is confident of future operating profits .

So, these are very valuable  assets to have for any potential suitor, over and above the tangible assets.

[Macpoor]

nozzpack , you are too good to be true! What a great post as always! Thank you for doing our homeworks! Please keep feeding us with your great post! Stay storng!

[DoumDiDoum]

Right on! "Too good to be true!"

[tdsb]

Hi NP, thanks for sharing it is really appreciated to have someone who understands the financial aspects of a company, clearly very few investors delve that deeply or have that ability. I am MacGreatful! Cheers!