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American Energy Partners Announces Patent Valuation
American Energy Partners Announces Patent Valuation.
About this update from American Energy Partners, Inc.
[{"type":"text","content":"\n ALLENTOWN, Pennsylvania, Sept. 14, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- American Energy Partners, Inc. (“American Energy”) (PINK: AEPT), a diversified energy company, is pleased to announce that Grossman Yanak & Ford LLP (“Grossman Yanak”), has completed a valuation of the patent issued August 4, 2020, U.S. Pat. No. 10,730,760. Grossman Yanak’s valuation yielded a Fair Market Value of $4,423,000 as of August 31, 2020. Most common methods used by valuation experts can be classified into three broad conceptual categories. These include income-based methods, market-based methods and cost/asset-based methods. Though these methods do not constitute AICPA or GAAP accounting, each of the three valuation approaches (income, market and cost/asset) can be used to value intangible assets. While each method was considered, the income approach was used to determine the Fair Market Value of the subject patent as it is expected to generate cash flow from the future use of the patented technology. This is consistent with the Mocanaqua Tunnel Mine Project, which is expected to generate future cash flows. Speaking on the future uses of the technology, Brad Domitrovitsch, CEO, states, “The valuation of the patent speaks to the commercial viability of the technology. We intend to not only scale these commercial operations through our vast network inside the Northeast, but license them as well.” He went on to say, “It is truly an exciting time at American Energy as we transition into the next phase of growth.” As American Energy generates cash flows from the use of the subject intellectual property, we intend to capitalize the expense on our Balance Sheet, allowing the company to amortize the costs over the life-span of the subject patent. American Energy engaged Grossman Yanak to perform the evaluation pursuant to an IP Valuation Engagement Agreement between American Energy and Grossman Yanak. Grossman Yanak does not purport to be a guarantor of value. Valuation of all assets, including intangible assets is an imprecise science, with value being a question of fact and judgment, and reasonable persons can differ in their estimates of value. Grossman Yanak has, however, performed conceptually sound and commonly-accepted methods of valuation in determining estimates of value of ...