Intangible Assets Not Worth Costs
$12M R&D had become $2M
The Situation
- Investors injected $15M into start-up. $12M spent on R&D, which was capitalized on the balance sheet or expensed.
The Client
Shareholders – Software Company
Outcome
- The company failed, leading to a transaction to rescue company, which had major implications for note holders, shareholders and the IRD.
- EverEdge conducted a complex valuation involving code, patent, brands and other intangible assets.
- Deal completed by third party at recommended price.
Result
$12M R&D had become $2M