During the recent US presidential debate, Clinton pointed out that the NY Times had obtained Trump's unpublished tax records from several years ago indicating that he had a net operating loss of ~900MM and as a result he could carry forward that loss and offset taxable income for 18 years. Trump declared that he was a tax genius.

RVX also has a potential NOL tax advantage:

In Note 21 of the April 30 RVX financials, the company lists unrecognized deferred tax assets of $51MM(USD). These assets were computed utilizing an expected tax recovery rate of 26.7%. "Deferred tax assets are recognized to the extent that it is probable that taxable income will be available, against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilized." US tax law allows these deferred tax laws to be acquired and utilized by by the acquiring company in limited situations, ie., these losses can offset future taxable income to mitigate the tax on said income.

This is an unrecognized asset, meaning it is not yet recorded in the financials. Again, in most cases, NOLs or tax credits can be utilized by the acquirer in a merger or acquisition, or can be carried forward to offset future RVX taxable income.

Using 26.7%, I compute an NOL carryforward of ~$191,000,000(USD) - this does check out since the sharesholders deficit at 4-30-16 is ~274MM(USD) and there are other components to this computation.

This equates to an increase of RVXCF share value of $.48(USD) and an increase of RVX share value of $.64(CAD) based on todays outsdanding shares, a nice premium for all shareholders when this drug is approved and marketable and an attractive financial asset to BP.

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