As some have already mentioned DTA is effectively a tax asset that is generated when you have a loss. This will be offset by any DTLs that are generated in the future. Nearmap have taken a somewhat conservative stance where they are not offsetting the income tax expense generated on their Australian entity with the tax benefit generated in the US. Fairly common practice actually ( I work in Insurance and this practice is typically done not to inflate P&L results in the short term and only recognise it when future profits are generated). Companies sometimes also cap DTA recognition if they don't expect an offset in the short term but the practice varies company to company. Basically they have a 10.8m off balance sheet asset to use if / when the US enters profit making territory.
NEA Price at posting:
68.0¢ Sentiment: Buy Disclosure: Held
