It's a non-adjusting event warranting disclosure under AASB110 which means we only know it happened after June 30th and before the auditors signed the audit certificate. We'll only know the latter once the full report is out but even then it doesn't help narrow it down further.
Regarding carried forward loss the answer is quite complex. Alexium Ltd is still an Australian entity and therefore subject to Australian accounting, reporting and disclosure rules. Nothing will change, only that additional reporting will occur to meet US requirements. So the carried forward loss will still be there and reduce retained earnings until it is used up. From a tax point of view, Alexium Ltd will remain an Australian tax resident. Therefore any carried forward tax losses (not accounting losses) will be available to offset taxable income. Please note though that tax losses carried forward don't equal accounting losses carried forward. In fact the taxpayer has a few DTLs on their books indicating that the carried forward loss for tax purposes is marginally smaller than the carried forward accounting losses. Some of the accounting losses still date back to the old Evans and Tate days prior to the backdoor listing.
AJX Price at posting:
88.0¢ Sentiment: Buy Disclosure: Held
