The Company commissioned an independent assessment of the carrying value of its intellectual property by Censere Singapore Pte Ltd at the end of June 2005. The valuer concluded that there was no impairment in the carrying value of the intellectual property at that date. The directors have updated the valuation to refl ect the timing delays experienced on the roll out of the CanDia5 project and have established an impairment loss of $3,906,686 which has been charged to the Income Statement. The assessment was based on a discounted cashfl ow methodology based on the following assumptions:
- the ability of the Company and the consolidated entity to secure further funds through equity issues or debt funding;
- securing a pan - European licensing agreement for CanDia5 with a global pharmaceutical or biotechnology company.;
- the ability to successfully and profi tably market its products through existing and new markets.
The Directors believe the Company will be successful in achieving the matters set out above and accordingly are satisfied that the carrying value is recoverable.
