You can't really factor company-held shares of an IPO as having a value of anything other than their physical assets.  I could start a company with no money, issue 100K public shares for $10 each and 900K company-held shares.  The total value of my company would be $1M, not $10M, because those 900K shares don't represent anything real.  Until I offer them for sale to the public, they only hold a true value of what the company itself is directly worth and don't affect market cap.  If I were to decide to sell off my 900K shares tot he public all at once, the per-share price would fall to around $1 each because at that point it is wholly publicly-owned and the totality of the shares represents the $1M from the investors and what was in the company before, which was nothing.  The share price might rise back up on speculation and as the company shows promise and development, but its day-to-day market cap is only what money people have put into + its physical assets + whatever profit the company has earned.

~10M shares at around $.50 each gives the public portion a cap of around $5M, while the other 25 million shares are valued at (whatever propertie belong to the company / 25M) until they are released to the public, at which point we decide what they're worth by purchasing them and increasing the market cap.

tl;dr: ActM is worth ~$5M plus product that has been purchased plus any liquid Ken has to work with.