Being able to claim tax deductions of previous losses only helps...

  1. 7 Posts.
    lightbulb Created with Sketch. 8
    Being able to claim tax deductions of previous losses only helps if the company manages to turn a profit before they go out of business. NET's cash flow statement shows their only positive cash flows are coming from financing investments. Once investors turn off that tap, they're toast. That's not to suggest it's all doom and gloom, but it's still a material uncertainty.

    The auditing standards (ASA 570) require auditors to draw attention to a material uncertainty relating to going concern status. While BDO didn't issue a modified opinion (because these concerns were adequately covered in the notes of the financial statement), a material uncertainty about going concern is still nothing to sneeze at.
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.