Hi Peter,

My apologies, but I am trying to understand the tax side of this type of a "typical" lease arrangement.  I say "typical" because I do understand that the structure of any deal is as widely varied as there are grains of sand on the beach... but I would really appreciate any thoughts you are able to share.

Sincerely, Tim in Vancouver

You wrote:  "Now what is a leasing option?  It is a lending option where a separate company will pay Pyro in full for the torch and take payments over time from the client.  So, Pyro gets paid as it would. This is not unlike you going to a bank and getting a mortgage and paying the seller in full. But you pay the bank over time.  The only difference is that we bring the bank to the table who is willing to lend against our torch sales because they have done all the necessary due diligence and understand the risk."

Q:  If PYR gets paid in full up front... and the Client is making payments... Who owns the torch through the term of the lease and can take advantage of write downs?  PYR? The Client? The Leasing company?  Does PYR hand over ownership of the torch to the Leasing company and then there is a slow transfer of ownership through the lease term from the Leasing company to the Client?