This is a reply to a few posts made earlier in the thread.See:

OPC - posted on Nov 05, 12 09:40PM

BobW - posted on Nov 05, 12 09:50PM

I believe that IRC section 382 limits the net operating loss (NOL) carryforward when an owner that owns more than 5% of the company increases his stake by more than 50%.I think it is an increase of 50% over the lowest holdings an owner had over the last 3 years, so if an owners has 10% and increases his holdings to more than 15%, limitations apply.

If the recent share offerings were purchased by a small number of individuals such that their individual ownership exceeds 5%, or if they already own at least 5%, then there is a risk that they will increase their holding by more than 50% of their lowest % holding that they had over the last 3 years.If this occurs, then we could run afoul of IRC section 382.However, if Al Mann also increases his holding, as was the case in the recent share offerings, then the chance of IRC section 382 limiting the NOL carryforward is reduced.

Al Mann alluded to this in the Q3 2012 conference call:

"As Matt described in parallel with the offering, I am purchasing an equal number of units without issue. Because of NASDAQ rules, I'm even paying a premium of 34.7% more than the other purchasers. That amounts to my paying a premium of $27.75 million. My participation is especially important, because it helps to preserve our valuable $2 billion, that's $2 billion NOL. A portion of my credit line is also being restored and could be available as needed going forward."

http://seekingalpha.com/article/971551-mannkind-management-discusses-q3-2012-results-earnings-call-transcript

I am not an expert on this, so I might not have it 100% correct.Any comments would be appreciated.Also, does anyone know if any 5% owners increased their ownership, either by purchasing shares from the offering or the open market?