Note 4 - Asset Purchase Agreement |
9 Months Ended | ||||||||||||||||||||
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May 31, 2016 | |||||||||||||||||||||
| Business Combinations [Abstract] | |||||||||||||||||||||
| Business Combination Disclosure [Text Block] |
Note 4 – Asset Purchase Agreement
On May 18, 2016 the Company entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with Sharp Innovations, LLC (“Seller”) to acquire certain assets consisting of (a) tangible assets of Seller consisting of approximately 450 containers of that performance drink currently marketed under the name “sports leg and lung”; (b) all intangible assets of Seller, including goodwill, licenses, patents, trade secrets, trademarks, copyrights, marketing rights, etc., specifically relating to and including certain intellectual property described as: that certain website URL www.sportslegandlung.com, the product formula for that performance drink currently marketed under the name “sports leg and lung”, all proprietary data owned and collected by the Seller with respect to the Product, and all rights of any description related to two future product formulations (one for weight loss and one for anti-aging, both of which the Seller has agreed to develop to completion and timely deliver to the Purchaser at no further charge). The purchase price consisted of Two Hundred Fifty Thousand ($250,000) Dollars in cash. The acquisition of the assets has been accounted for as a purchase in accordance with ASC Topic 805 Business Combinations and the assets have been included in the Company’s financial statements since May 18, 2016. The Company obtained a third-party independent valuation of the assets acquired.
The acquisition date estimated fair value prior to impairment of assets acquired consisted of following:
The Company had a third party valuation of the assets acquired and recorded impairment charges of $167,251 for the three and nine months ended May 31, 2016.
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