Originally Posted by
Aero1900
We lost 37 Million in Q4.
Interesting part I don't fully understand: (we made pretax money but reported a loss?)
Net loss for the fourth quarter of 2023 was $37 million, including the recognition of a $37 million non-cash valuation allowance against deferred tax assets. This allowance does not affect the Company's ability to utilize cumulative net operating losses against potential future income tax liabilities. Excluding special items, adjusted net income, a non-GAAP measure, was $1 million. Refer to “Reconciliations of Non-GAAP Financial Information” in the appendix of this release.
Companies can use their losses against taxable income. Also, the company can roll these losses forward as needed, and the potential offset is counted as an asset.
A valuation allowance occurs when the company doesn't think (50% or more probability) they'll see that benefit.
Put another way, F9 isn't seeing sufficient future income to warrant a $37M reduction in taxable income.
Put negative $30+M against our 4Q and you have a loss.