Annual report pursuant to Section 13 and 15(d)

Note 4 - Asset Purchases

v3.5.0.1
Note 4 - Asset Purchases
12 Months Ended
Mar. 31, 2016
Notes  
Note 4 - Asset Purchases

NOTE 4 – ASSET PURCHASES

 

VIM Injection Management Inc.

 

On November 14, 2014, the Company, entered into an agreement to purchase the assets of VIM Injection Management Inc.  Pursuant to the asset purchase agreement, the purchase price of the assets consisted of a one-time payment of $750,000 in cash and 265,958 shares of the Company’s common stock, which was valued at $1,000,000 ($3.76 per share). The value of the stock was based on the trading price on the date of issuance.  Acquisition-related costs during the year ended March 31, 2015, which are included in the selling, general, and administrative expense in the accompanying consolidated statements of income, were not material.  The results of operations related to this acquisition have been included in our Canadian segment since the acquisition date.

 

The total purchase price was allocated as follows:

 

Consideration paid:

 

 

 

  Cash paid

 

 

 $    750,000

  Common stock issued

 

 

     1,000,000

Total purchase price

 

 

    1,750,000

 

 

 

 

Consideration received:

 

 

 

  Inventory

 

 

 $      54,577

  Intangible assets

 

 

 

    Tundra Distribution Agreement

 

          46,722

    Patent 

 

 

        650,000

    Other Intellectual Property

 

 

            1,000

  Total Intangible Assets

 

 

       697,722

 

 

 

 

 

  

 

 

 

  $    752,299

 

 

 

 

 

Goodwill was recognized as a result of the acquisition as follows:

  Total consideration paid

 

 $  1,750,000

  Total consideration received

 

      (752,299)

 

 

 

 

$    997,701

 

With respect to the intangible assets of VIM, the Company intends to amortize each as follows, as this is the length of time the Company currently estimates that it will generate cash flow from the assets:

 

    Tundra Distribution Agreement

9 months

    Patent

 

 

 

20 years

    Other Intellectual Property

 

20 years

 

The total weighted-average amortization period for these acquired intangible assets is 20 years.