ST. PAUL, Minn., Feb. 13, 2014 (GLOBE NEWSWIRE) -- Aetrium Incorporated (Nasdaq:ATRM) today announced that its Board of Directors has adopted a Tax Benefit Preservation Plan (the "Plan") designed to preserve the value of its significant net operating loss carryforwards ("NOLs") in relation to the potential limitations under Section 382 of the Internal Revenue Code. Aetrium intends to seek stockholder approval of the Plan at its 2014 annual meeting of stockholders.
Aetrium had federal NOLs totaling approximately $76 million as of December 31, 2012. Pursuant to U.S. federal income tax rules, Aetrium's use of those tax assets could be substantially limited if the Company experiences an "ownership change" (as defined in Section 382 of the Internal Revenue Code). In general, an ownership change occurs if there is a cumulative change in Aetrium's ownership by "5 percent shareholders" that increases by more than 50 percent over the lowest percentage owned by such shareholders at any time during the prior three years on a rolling basis. The Company noted that the Plan is designed to serve the interests of all stockholders by helping to protect the Company's ability to use its net operating losses to offset future tax liabilities and is similar to plans adopted by many other public companies with significant tax attributes.
Jeff Eberwein, Chairman of the Board of Directors, stated, "The Company has a significant asset in its NOLs and the Board took this prudent step to protect this asset. We hope to generate net income in the future and we want to be able to utilize this valuable NOL-related tax asset to offset the tax liabilities that will be created from that net income. The Plan is the latest in a series of strategic initiatives that are designed to maximize value to all our stockholders."