BioNitrogen Holdings Corp. (BIONQ)

[Longgg]

IP on its own is worth nothing, what the IP can generate in free cash flow is where value is derived. The value of a company is traditionally a function of its EBITDA multiple, a high IP dependent, capital intensive company (like BION) is typically valued on a horizon value predicated on free cash flow or EBITDA in the 7X - 9X range. IF BION business model can be trusted and each plant produces $50M EBITDA annually, then that means the companies fair market value is in $400M range or for ease of this post lets just call it $1/share for each producing plant. Again IF the business plan can be trusted with a five year plan of (5) plants and ten year plan of (10) plants then you take into account buyer sentiment where the market views the company value greater than current fair market value in anticipation of future value e.g. with (3) producing plants of $50M EBITDA the company is worth $3PPS, but if (2) more plants are being produced and they break ground for another (2) then buyer sentiment may be willing to take that into account and pay more for the shares today predicated on greater future anticipated cash flow.

Before you get excited remember until they are actually generating cash flow OR buyer sentiment is strong enough to anticipate future value then we got what we got which is a great idea that happens to be patented, in our case that translates to a little over $.01PPS... So to answer your questions directly what is the value of the patents, today its about $400k.