NeoMedia Technologies, Inc (NEOM)

[ASTOCKCOLLAPSE N0W]

Depends on your definition of value.

Considering the IP has never generated a positive economic return, one might argue the IP is currently worthless. What's the point of IP if it cannot be leveraged to generate a profit? But since the IP is positioned around emerging markets, this assumption is patently (haha!) unfair.

NEOM reports the carrying value of the IP at $2.7 million. Obviously this is also a inaccurate number as I believe it only reflects filing costs, purchase costs and/or development costs minus depreciation.

We can only ascertain a value based on the information we currently have available to us. That information indicates that the IP is currently less than "worthless" - that is to say it actually operates at a NEGATIVE gross margin. The pending legal issue with Scanbuy and the EFF's attempt to debunk the IP casts further doubts on the value of the patents.

If we were to speculate based on imperfect information, which is mostly what NEOM longs have been doing, we'd need projected industry volume and sales numbers, current competitors, emerging competitors, how the revenue will be shared within vertical markets, et al. This information is available but it does not come cheaply.

Net-net, and I think you'd agree, the IP is currently without value as it has yet to generate positive economic value, that is value defined as net income after all expenses.