kingthrillgore@lemmy.ml to Technology@lemmy.worldEnglish · 4 months agoReddit: Return Of The Junk Stock IPOwww.forbes.comexternal-linkmessage-square149fedilinkarrow-up1695arrow-down115
arrow-up1680arrow-down1external-linkReddit: Return Of The Junk Stock IPOwww.forbes.comkingthrillgore@lemmy.ml to Technology@lemmy.worldEnglish · 4 months agomessage-square149fedilink
minus-squareblargerer@kbin.sociallinkfedilinkarrow-up35arrow-down1·4 months agoSo, they are likely very poorly managed but, R&D is a common slushfund to keep your profit negative so you don’t have to pay taxes.
minus-squareFiskFisk33linkfedilinkEnglisharrow-up17·4 months agowhich makes sense if the r&d gives return on investment. otherwise you’d be better off paying tax and taking the profits anyway.
minus-squarekbin_space_program@kbin.runlinkfedilinkarrow-up2·4 months agoR&D is also a fairly big tax break companies can use.
So, they are likely very poorly managed but, R&D is a common slushfund to keep your profit negative so you don’t have to pay taxes.
which makes sense if the r&d gives return on investment.
otherwise you’d be better off paying tax and taking the profits anyway.
R&D is also a fairly big tax break companies can use.