I’m no accountant, however those a little confused over Fooca’s...

I’m no accountant, however those a little confused over Fooca’s post - I’ll add this

The figures pulled from the P&L + Balance Sheet are not taxable profits, but internal accounting entries to account for the demerger.

As you can see the carried forward losses didn’t change 2022 to 2023.

From the attachment below you can see the negative $428.7m (dividend distribution) offsets what appears to be profit from the demerger.

FFX issued a tax ruling from the ATO in August 2022 which explains the treatment of the cost base for those that received the LLL shares in the demerger.

The bottom line is as at Jan 1st 2024 we had $303m in issued capital (they can pay return of capital from) and carried forward losses of $198m.

The Leo tranche 1 received by FFX was about $36m, tranche 2 payment if they still hold the leo shares and IF Leo doesn’t spend it on another asset would be ~ $47m. Those dividends easily covered by the carried forward losses (which will be even higher if they write off the loans).