Myrexis, Inc. (MYRX)

[PSDFinancier]

Have a slug of MYRX stock as well. Tax reform, if passed, could actually be beneficial to MYRX. On the one hand, reducing the corporate tax rate for all businesses would make the NOL less valuable (since you would only be shielding a 20% or 25% tax rate rather than a 35% tax rate). The mitigant here is that MYRX's gross NOL value is so large that it still has value even if the tax rate is lowered.

But on the other hand, there is an additional point that would make the MYRX NOL more valuable if passed. There is discussion in the GOP blueprint about eliminating the time limitation on NOLs, which would mean that businesses would have unlimited time to make use of the NOL. You can see that here:

https://www.bna.com/corporate-closeup-federal-b73014462490/

Elimination of Net Interest Expense Deduction and NOL Carryforward Limitation

Currently, businesses can deduct net interest expenses from federal taxable income as it is incurred. The GOP blueprint allows for deductions only against net interest expenses for future loans while Trump’s proposal permits taxpayers to choose between the aforementioned full expensing of capital assets and the net interest expense deduction.

Specifically, the GOP blueprint allows for net interest expenses to be carried forward indefinitely and allowed as a deduction against net interest income in future years. Notably, the blueprint also allows for “net operating losses to be carried forward indefinitely and… increased by an interest factor that compensates for inflation and… return on capital." Currently, the federal tax code allows 20 years for an NOL carryforward.