>> Is the main thing you're trying to get clarification on the issue of unrealized losses and whether to actually count them in estimating loss carryforward?
Basically, yes.
If you look at the table on pg 40 of the Q3-11 10Q .. you'll see the tax asset for the realized losses .. I get that is in the past.
Then you have 3 more lines .. and all of them seem to be the maximum potential benefit IF .. big IF .. all those sources of the tax-benefit were actually realized.
So, in the unrealized ordinary loss line, I think that might be the what the tax asset WOULD BE .. IF ALL of the sources of ordinary losses were realized at the current valuations.
The next line . difference in basis .. does with the prior ..
The next line is if all the outstanding options were exercised ..
The question I have is what happens if none of that stuff is realized, but they run out the ordinary losses line?
Or are they going to strategically realize losses to keep this going .. basically strategically moving items from lines 2-5 up into line 1.
NMB