Since I brought this up earlier as a valued "asset" when discussing what Insmed could be worth, thought I would connect some dots of where we stand according to the 10-K: $148M carried forward loss as of 12/31/13 which was deemed as a deferred tax asset.
Definition of 'Deferred Tax Asset'
An asset on a company's balance sheet that may be used to reduce any subsequent period's income tax expense. Deferred tax assets can arise due to net loss carryovers, which are only recorded as assets if it is deemed more likely than not that the asset will be used in future fiscal periods.
It must be determined that there is more than a 50% probability that the company will have positive accounting income in the next fiscal period before the deferred tax asset can be applied.
If, for example, a company has a deferred tax asset of $148M on its balance sheet, and then the company earns $200M in before-tax accounting income, accounting tax expense will be applied to $52M ($200M-$148M), instead of the $200M.
On a per share basis, take the $148M / 40M shares would equate to $3.70/shr.
I believe that is true so the actual taxes owed would be whatever the tax rate would be for any earnings above $0. So, I believe this is true, if we were to make $150M. we could offset our tax liability by $148M and only pay taxes on the $2M. I should have made that clearer. So, ultimately, our tax "benefit" is about $1/shr assuming $39M tax on the $150M. If you look at the revenue taxability, then it has the $3+/shr value.