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reasonable hope and expectation that the
assets will exceed the liabilities of the
corporation in the future, its stock, while
having no liquidating value, has a potential
value and can not be said to be worthless.
The loss of potential value, if it exists,
can be established ordinarily with
satisfaction only by some “identifiable
event” in the corporation's life which puts
an end to such hope and expectation. [Id.]
Petitioner claims that by December 31, 1994, the $100,000
TMC promissory note had become worthless.
The financial statements filed by TMC with the Bankruptcy
Court on August 17, 1994, indicated that as of August 17, 1994,
TMC’s assets exceeded its liabilities. As of September 30, 1995,
TMC’s financial statements indicated that TMC would have had
sufficient revenues to pay some of its liabilities as they became
due.
Petitioner has not provided any credible evidence to
establish that the value of TMC’s stated assets was less than
what was reported on TMC’s financial statements or that TMC would
not be able to pay any part of TMC’s liabilities, specifically
the $100,000 promissory note held by petitioner.
The OTM common stock, the convertible preferred stock, and
the stock warrants that petitioner received had a par value of
approximately $9,000 in February of 1996, indicating some
continuing value as of early 1996 to the $100,000 TMC promissory
note.
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