I am constantly amazed that anyone considers the NOL (tax loss) of the company to be worth anything to an acquiring company.
First, the rules were tightened for this YEARS ago.
Second, what can be taken is based on the buy-out price of the company, not the NOL built up by the company over its lifetime.
Third, the IRS applies a percentage rate to this value which is currently around 3.5%
If the company is purchased for $0.50/share that makes the buy-out price $30m.
3.5% * $30m = about $1m per year for 20 years.
Total amount of NOL that can be used = about $20m.
That means if Wave has a NOL of $300m currently, $280m is worthless over a 20 year span.
Being "wrong" has been extremely profitable.
