Capital losses can be carried forward five years to offset future capital gains and back three years to offset prior capital gains for all corporations, Again, in order to determine the amount of the deferred tax asset, you must multiply your capital loss carry-forward
by the effective tax rate and then compute how much of the asset may be admitted.
Using the Company's $146 million of net operating loss carry-forwards
(NOLs), most of which do not expire until after 2020, to shelter income from taxes.
The Company also presently expects that it will be able to utilize its 2004 tax attributes (capital loss carry-forwards
and net operating loss carry-forwards
) and anticipated 2005 losses to offset any federal or state tax gain that would be recognized on the sale of PeterStar.
The acquisition of, or merger with, an operating business will allow the company to preserve the use of it's approximately $45 million in net operating loss carry-forwards
to offset otherwise taxable earnings.
With the sale complete, the Company will re-evaluate its valuation allowance against its deferred tax asset and its expected ability to utilize those net operating loss carry-forwards
specifically related to past operation of the Oak Ridge facility.
Marvel anticipates cash levels at December 31, 2004 to approximate $200 million, reflecting anticipated Federal income tax payments resulting from the recent exhaustion of Federal net operating loss (NOL) carry-forwards
At December 31, 2003, The Company had net operating loss carry-forwards
of $247,775 that may be offset against future taxable income through 2023.
Subsequent to the Rights Offering, the Company determined that the use of certain of its tax attributes, including its net operating loss carry-forwards
(which, as of December 31, 2002, were approximately $44,000,000), may have been substantially restricted as a result of the consummation of certain transactions in the Rights Offering.
Further, given the tax loss carry-forwards
, the income of the depository institution would be sheltered from taxes for an extended period of time.
The tax on the gain is expected to be minimal due to the use by Metromedia of loss carry-forwards
Starting with initial revenue, loss carry-forwards
, and cash balances, the model uses the initial growth rate of the company and the expected long-term growth rate of the company to find a current valuation of the company.