Rye, New York – January 19, 2018 – LICT Corporation (“LICT” or the “Company”, OTC Pink ®: LICT) is announcing today that it currently estimates its net deferred tax liabilities at December 31, 2017 will, as a result of recently enacted Federal tax legislation, be reduced from previous expectations by approximately $6 million, or $290 per share, based on the 20,509 shares outstanding at that date.
On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. This law reduced the highest corporate Federal income tax rate from 35% to 21%, and will result in a reduction of the Company’s net deferred tax liabilities. Under United States generally accepted accounting principles, this reduction will lower the Company’s income tax expense, in its Consolidated Statements of Income, for the Fourth Quarter and Full Year Ended December 31, 2017, therefore increase the Company’s earnings to be reported for those respected periods.
This reduction in net deferred tax liabilities is based on reasonable estimates made by the Company. The Company is currently in the process of completing its 2017 year ending accounting procedures. The estimate may be subject to further revision or adjustments as additional guidance from the U.S. Department of the Treasury is provided, the Company completes its year end closing process, the Company’s independent auditors complete the audit of the Company 2017 financial results, and as further information and interpretations become available.
This release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. It should be recognized that such information is based upon assumptions, projections and forecasts which may not prove to be correct or may develop differently from the manner originally expected. Such forward-looking information must be read and interpreted in light of the cautionary statements set forth in documents filed by LICT on its website,www.lictcorp.com.
LICT is a holding company with subsidiaries in telecommunications and multimedia, and actively seeks acquisitions, principally in its existing business areas.
LICT is listed on OTC Pink ® under the symbol “LICT”. Its web address is set forth above.
Contact: Robert E. Dolan
Executive Vice President and Chief Financial Officer