Originally Posted by monkeyboy511

"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."

As far as "fun accounting", F9's CFO simply kicked the tax can down the road. The cold hard reality is F9 will pay a hefty price within two (2) years when F9 will be required to pay 35% tax. Keep in mind, a valuation allowance account is established to recognize the reduction in a deferred tax asset. The temporary difference will reverse evenly over the next two years at an enacted tax rate of 35%.

F9 is showing a "loss" to avoid taxes, but will be paying the piper in 24 months. Not the best strategy considering: (A). F9 really has no idea what the next 24 months will bring with consideration to the war in Europe and Isreal. (B) Most airlines keep some tax deferred assets in reserve (carry forward) for the future profitable quarters in order to reduce future tax burdens id profits are achieved. Which brings us to (C). If Biden is re-elected, there is a very distinct possibility existing corporate tax benefits may no longer be available so that our Gov't is able to generate more cash to pay it's debts (and illegals coming in through Texas - had to say that). Especially during an election cycle, astute businesses plan accordingly to hedge risk associated with a change in party on Capitol Hill.

End of the day, BB is throwing a hail-Mary pass.