To me this part was key:

In managements’ opinion, the value of the IP is material and exceeds the Company’s present obligations.

Statmon could sell the software technology to a large company and more than pay off their debt. And as Geoff, the CEO, pointed out in the release, most of their debt relates to the convertible debentures which will more than likely be converted to common shares as the stock price rises. So in the end, they may never have to pay off the debt on their balance sheet. And as warrants are exercised, that means more cash will flow in the door for operationg capital.