Could the early divy activity be tied to tax loss carryforwards?
This is from the last 10K, at which time the company had only reported revenue from AMD (~$2.9MM).
``At May 31, 2005, the Company has federal net operating loss carryforwards of approximately $36,000,000 that expire through 2025 and whose annual usage is subject to certain limitations imposed under the Internal Revenue Code of 1986, as amended. As such, certain federal net operating loss carryforwards may expire unused. Additionally, at May 31, 2005, the Company has state net operating loss carryforwards of approximately $22,000,000 that expire through 2015.``
Could the divys paid to shareholders enabled the company to address some aspect of the ``certain limitations`` issue, thus avoiding loss expiration? Any CPAs here that can explain what the typical limitations are that they were referring to?
Thanks.
