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


  • 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.


$12M R&D had become $2M

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