Avid Bioservices Inc (CDMO)

[EndoTarget]

NOL carryforwards are recorded as assets on the company's balance sheet. They offer a benefit to the company in the form of future tax liability savings. A deferred tax asset is created for the NOL carryforward, which is offset against net income in future years. The deferred tax asset account is drawn down each year, not to exceed 80% of net income in any one of the subsequent years, until the balance is exhausted.1

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