I scratched my head for a reason that Harry would have the...

I scratched my head for a reason that Harry would have the Patent Portfolio valued. That costs money and we know how tight Harry is.Valuations are normally done for funding reasons. The board would have no reason to value it for accounting purposes.

Earlier today I sent an email as follows to Mr Maurice Garbutt, POH's company secretary:

Dear Mr Garbutt,

I am writing with a question about your latest financial statements. In particular in reference to note 7 of the accounts, the commentary on Provision for impairment. It states that:

An Independent valuer was engaged by the Company to calculate asset recoverable amounts,

Was there a specific reason to engage the independent valuer or was it part of a normal annual review process?

regards

This is the reply I received:

Mr xxxx,

Thank you for your enquiry about the Company's Preliminary Final Results for the year ended 31 December 2010 as released to the ASX last week.

Under the accounting standards (A-IFRS) companies are required to annually assess the carrying value of their assets. In the case of Phosphagenics Limited this relates predominantly to the carrying value of its portfolio of patents.

As such in the review/ valuation process the engagement of an independent valuer is a normal part of the process.

Kind Regards,

Mourice Garbutt


No need to scratch the head POS, just ask the company.