Annual report pursuant to Section 13 and 15(d)

7. GOODWILL AND INTANGIBLE ASSETS (Tables)

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7. GOODWILL AND INTANGIBLE ASSETS (Tables)
12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill
Balance - December 31, 2014   $ 1,855,512  
Additions due to CanX acquisition     2,788,300  
Balance - December 31, 2015     4,643,812  
Impairment of PhytoSPHERE goodwill     (1,855,512 )
Balance - December 31, 2016   $ 2,788,300  
Schedule of intangible activity

 

    Vendor Relationships     In-Process Research and Development     Trade Names     Non-compete Agreements     Total  
Balance - December 31, 2014   $ 1,170,000     $     $ 230,000     $ 2,710,000     $ 4,110,000  
Additions due to CanX acquisition           3,730,000       100,000       77,000       3,907,000  
Balance - December 31, 2015     1,170,000       3,730,000       330,000       2,787,000       8,017,000  
Impairment of PhytoSPHERE intangible assets     (1,170,000 )           (230,000 )     (2,710,000 )     (4,110,000 )
Balance - December 31, 2016   $     $ 3,730,000     $ 100,000     $ 77,000     $ 3,907,000  
Schedule of intangible assets

 

    Original Fair Market Value     Accumulated Amortization     Net     Useful Life (Years)  
Balance - December 31, 2016:                                
In-process research and development   $ 3,730,000     $     $ 3,730,000        
Trade names     100,000       20,000       80,000       5  
Non-compete agreements     77,000       15,400       61,600       5  
    $ 3,907,000     $ 35,400     $ 3,871,600          
                                 
Balance - December 31, 2015:                                
Vendor relationships   $ 1,170,000     $ 682,500     $ 487,500       5  
In-process research and development     3,730,000             3,730,000        
Trade names     330,000       134,167       195,833       5  
Non-compete agreements     2,787,000       1,580,333       1,206,667       5  
    $ 8,017,000     $ 2,397,000     $ 5,620,000          

 

Schedule of future amortization expense
  2017     $ 35,400  
  2018       35,400  
  2019       35,400  
  2020       35,400  
        $ 141,600