Reitmans Ord Shs V.RET

From the M D & A

[savyinvestor333]

Income Taxes

As a result of the uncertainties related to the Company’s ability to generate future profitable operations and management’s assessment that it is not probable that future taxable profits will be available, the income tax expense for the first quarter of 2023 was impacted by not recognizing deferred tax assets on operating losses carried forward. The tax expense is comprised of the estimated tax amount related to a foreign subsidiary.

I don't like this or am I reading this wrong

[Mephistopheles3]

Reading wrong.  This is standard language from an income tax note.  This means that they are not recording an income tax receivable for the value of the losses carryforward.  E.g.  if you have taxable losses to carry forward of $50 million and tax rate = 20%, that's a total of $10 million of potential benefit or "deferred tax asset".   However, in

[savyinvestor333]

Thanks for the explanation. I thought it was probavly something like that but it still reads very pessimistic.