Ann: Trading Update, page-37

Often times when a company produces a loss it is eligible for a tax loss benifit, which normally gets allocated to a tax receivable on the balance sheet. But if for whatever reason the auditing accountant decides there is not substantial evidence those most recent tax losses can be utilised in the near future they are not recorded as a tax asset. That does not mean, however, they aren't available to be utilised, and the credits simply remain off balance sheet but if a public company almost always noted in the notes of the financial accounts. Hypothetical example - a company once written off for dead rises from the ashes may have in its most recent accounts losses that otherwise should be recorded as tax losses that aren't (and perhaps the same in previous year) but as it gravitates toward a tax paying position is able to draw on all its tax losses, whether off balance sheet or not. When that happens will require a few funky P&L accounting entries but they are non operational. The point is the company has about NZ$27m of tax losses - split across NZ and AU. Losses are only able to be utilised in their respective tax paying jurisdiction - IE NZ tax losses can't be used to offset AU tax payables. Then ontop of that you have in NZ shareholder continuity tests and in AU same business tests - none of which look to be breached unless a major new shareholders comes on board and voids NZ tax continuity. In either event, $26m of tax losses a great asset to have, and used to offset taxes for many years