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 identified intangible assets included in this evaluation.
The fair market value estimate included in this evaluation are based upon the going-concern premise of value, meaning that the Company will continue to operate as an ongoing enterprise, and Management will maintain its character and integrity at the Valuation Date.
Patent Abstract
A method of supplying water using a natural water pipeline includes withdrawing impaired water from an impaired water body connected to a waterway and treating the impaired water from the impaired water body to produce treated water. The method also includes discharging the treated water into the waterway and conveying the treated water via the waterway to one or more locations proximate to one or more remote operational facilities that withdraws water from the waterway at the one or more locations. The method further includes receiving a monetary value from one or more operational entities operating the one or more remote operational facilities and providing at least a portion of one or more water access rights to the one or more operational entities in exchange for the monetary value. USPTO Patent No. 10,730,760
American Energy Partners, Inc. (AEPT)
AEPT and its group of companies focus on providing solutions in markets where energy production and water meet technology. Collectively, the subsidiaries are engaged in the energy sector as well as the design, construction and operation of regional water treatment facilities that serve the industrial, energy and government sectors.
For additional information, visit: American Energy Partners, Inc.
Safe Harbor
This press release contains forward-looking statements, particularly as related to, among other things, the business plans of AEPT, statements relating to goals, plans and projections regarding AEPT’s financial position and business strategy. The words or phrases “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “think”, “considers” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. AEPT cautions readers not to place undue reliance on such statements. AEPT does not undertake, and AEPT specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from AEPT’s expectations and estimates.
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