Avid Bioservices Inc (CDMO)

[r622102675]

Also a consideration as to a fair "valuation" of an eventual B/O offer...from annual report... At April 30, 2020, we had federal net operating loss carry forwards of approximately $427 million. The federal net operating
loss carry forwards generated prior to January 1, 2018 expire in fiscal years 2021 through 2038. The federal net operating
loss generated after January 1, 2018 of $19.8 million can be carried forward indefinitely. Net operating losses generated after
2017 through 2020 may offset future taxable income without limitation. Utilization of net operating losses generated
subsequent to 2020 are limited to 80% of future taxable income. We also have California state net operating loss carry
forwards of approximately $277 million at April 30, 2020, which begin to expire in fiscal year 2029...r