whats not so good about mhm

This question was posed to me:

If I'm reading the balance sheet in the 2010 Annual Report correctly, the company's net assets seem to be well below the $146m the market is valuing the company at. In fact, I can only make the balance sheet make sense if one assumes a company valuation based on the (much lower) share price of about a year ago. Perhaps I'm misunderstanding something. By way of contrast, I can see clearly in another company I've been following (Saferoads) that it's net tangible assets seem to be well in excess of the share price times the number of shares on issue. And that gets me interested. I can't see that same situation clearly with MHM (although it might just be because I'm not very good at reading balance sheets)....

I couldnt answer it....perhaps someone else could?