The Meet Group, Inc. (NASDAQ: MEET), a provider of interactive livestreaming solutions, has announced that its board of directors has approved the adoption of a tax benefits preservation plan (or “the plan”) in the form of a Section 382 Rights Agreement designed to protect and preserve The Meet Group´s substantial tax assets primarily associated with net operating loss carryforwards or NOLs that could potentially be utilized in certain circumstances to offset The Meet Group´s future taxable income and reduce its federal income tax liability, the company said.
As of December 31, 2018, The Meet Group had approximately USD 63.1 million of (pre-tax) US federal net operating loss carryforwards or NOLs that could potentially be utilized in certain circumstances to offset The Meet Group´s future taxable income and reduce its federal income tax liability. Additional information with respect to these NOLs is contained in The Meet Group´s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 which The Meet Group filed with the Securities and Exchange Commission on March 8, 2019.
Section 382 of the Internal Revenue Code imposes limitations on the future use of a company´s NOLs if it undergoes an “ownership change.” The Meet Group´s ability to benefit from its tax assets would be substantially limited by Section 382 if an “ownership change” occurred. A company experiences an “ownership change” for tax purposes if the percentage of stock owned by one or a group of its 5% stockholders (as defined for tax purposes) increases by more than 50 percentage points over a rolling three-year period over the lowest percentage of stock of such corporation owned by such stockholders at any time during that period.
The Meet Group is a provider of interactive livestreaming solutions designed to meet the universal need for human connection. For more information, visit themeetgroup.com.