Koo

It is termed a 'net operating loss' and can be used to offset net operating income. It is my recollection that US tax laws were revised by Trump with the tax cuts and jobs act to limit the use of the loss against operating profits in business combinations. To use the loss, the surviving Corp must be in the same industry and presumably if a US BP purchases RVX it could use the loss to offset pharma profits. There may be some restrictions against the use of Canadian losses against US profits. So the $$ value of the nol carry forward is $400MM X the  effective current corporate tax rate.

To put it in another light if RVX was to begin generating earnings and profits the first 400MM would be non taxable

chicagoest