The actual tax asset you mentioned is that 4.6 Million but that is offset by another 2.4 million in tax liability,,,,so in essence its the net of the two ...I think...that is our tax plus to us
From the Q
The deferred tax asset is a result of purchase accounting. The deferred tax asset results from Crossflo’s net operating loss carryforwards that can be used to offset consolidated taxable income in future periods, offset by the deferred tax liability which is the result of future amortization expenses attributable to the acquired intangible assets which will not be deductible for income tax purposes.
The deferred tax asset was calculated as follows:
The deferred tax asset was calculated as follows:
|
|
|
Net Operating
Loss Carryforward
|
|
|
Tax
Rate
|
|
|
Deferred
Tax Asset
|
|
|
Federal
|
|
$
|
11,995,697
|
|
|
|
35%
|
|
|
$
|
4,198,494
|
|
|
California
|
|
|
7,810,697
|
|
|
|
5.746%
|
|
|
|
448,802
|
|
|
|
|
$
|
19,806,394
|
|
|
|
|
|
|
$
|
4,647,296
|
|
The deferred tax liability was calculated as follows:
|
Identifiable intangible assets acquired
|
|
$
|
6,071,400
|
|
|
Tax rate
|
|
|
40.746
|
%
|
|
|
|
$
|
2,473,853
|
|
