For 2011, they have enough cash and expected royalties and a $1...

For 2011, they have enough cash and expected royalties and a $1 million loan facility to support the business. So on the cash front , they are all good.

To date they have drawn down $350K of that $1M loan.

So on the debt front they ain't good.

Have a look at it's operational expenses. They seem to have 5 times the amount of expenses to royalty income so on the cash front they ain't good. Even if they have no more operational expenses then look at the directors fees, it equals the royalty income. There is no provision to repay outstanding loans.

The company has in excess of $21 million in tax losses on the books. Very attractive to any project they back into the shell, as it bring significant tax advantages and tax-free income for some time.

You can not use those tax losses unless it is significantly the same company undertaking the same activities. Damn hard if not impossible to "transfer" to any other income making activities.

The $21M tax loss has virtually no value.

What you have here is a shell company spending 4-5 times the amount of it's 'royalty' income digging itself deeper into debt with little or no prospect of using what you would refer to as it's biggest asset, it's $21M tax loss.

If the tax loss was such a great thing and accessible to other companies in the same industry doing the same activities then a company like TPG, IINET, ENG or MNF would pay double, triple or even 7-9 times it's current market value to take this advantage.....But they ain't queuing up are they?

At best, today it is worth about $500K-$800K as a public listed shell company with some goodwill thrown in, if it stops trading now it will not incur continued 'operational expenses' and after it pays it's $350K loan plus sale broker fees it will be worth about $50k-$350k.

In terms of 'ramp' value of course it's SP could rise and fall quickly if you can get enough ignorant idiots excited.

This is of course assuming that you can do this before the friendly creditor wants it's $350K back.

Best of luck.