Biggest threats to PRT, page-5

Hi Silvia

Not quite sure what you mean. PRTs broadcasting licences have been purchased so as to enable the company to conduct its business ie TV broadcasting. The purchase of the licences is no different to a supermarket making a building purchase to conduct their business of selling products. The building, as is the broadcasting licence, an asset that is a requirement to conduct their business. If PRT decided to shut up shop the licence will be required by another broadcaster that may wish to carry on where PRT left of, exactly the same as a Coles may shut down but the property sold to Woolworths.

As per last years end of year financials they have conducted an audit and decided that the 'selling' cost of the license is not what it was worth in the past, thus the license impairment. Again the same as any other fixed asset.

Also, the licences are subject to renewal by the Australian Communications and Media Authority at no significant cost to the Company. The directors have also stated that 'there is no reason to believe that the licences will not be renewed at the end of their legal terms and have not identified any factor that would affect their useful life'.