Railway Metrics and Dynamics Sweden: RMD Announces Valuation of Patent Portfolio
RMD, through leading firm AWA Patent, has had its extensive patent portfolio valued at nearly 240 million SEK (20.71 million euros) for all published patents owned by the company. This valuation is based on a licensing model developed by AWA Patent.
The model takes into account what the Company would need to pay to license these assets if they were owned by someone else, starting as a small fraction of the Company's revenue projections. The model gradually grows to reflect the industry's overall growth rate. To ensure a robust valuation, AWA Patent has also developed three different variations of the licensing model.
After careful consideration and in consultation with tax and accounting experts, the company's board has decided to revalue its intangible assets to 65% of the established patent value. This also includes the intangible assets that are already accounted for.
The revaluation is based on the company's expected revenue from the patents and the value they are expected to generate. Therefore, this should be seen as a significant asset in the company's financial statements. The revaluation amount has been determined conservatively and thus constitutes only a part of the total valuation.
The process of valuing the patents began in the last quarter of 2023. However, RMD has waited to disclose this information until ongoing accounting, auditing, and tax advice was completed. At the advisors' recommendation, the aforementioned revaluation will be recorded in the books for Q1 2024.