Annual report pursuant to Section 13 and 15(d)

5. ACQUISITION OF ASSETS OF PHYTOSPHERE SYSTEMS, LLC (Tables)

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5. ACQUISITION OF ASSETS OF PHYTOSPHERE SYSTEMS, LLC (Tables)
 12 Months Ended
Dec. 31, 2013
Business Combinations [Abstract]  
Schedule of allocation of purchase price
Assets acquired      
Tangible assets        
Cash   $ 50,775  
Accounts receivable     396,438  
Inventory     345,477  
Prepaid inventory     1,260,510  
Fixed assets     1,288  
Total tangible assets     2,054,488  
         
Identifiable intangible assets        
Vendor relationships     1,170,000  
Trade name     230,000  
Noncompete agreement – PhytoSPHERE Team     2,710,000  
Total identifiable intangible assets     4,110,000  
         
Unidentifiable intangible assets        
Goodwill residual estimate     1,855,512  
Total assets acquired from PhytoSPHERE   $ 8,020,000  

 
Schedule of intangible assets
Description   Original Fair Market Value     Accumulated Amortization     Net  
Vendor relationships   $ 1,170,000     $ 214,500     $ 955,500  
Trade name     230,000       42,167       187,833  
Noncompete agreement     2,710,000       496,833       2,213,167  
    $ 4,110,000     $ 753,500     $ 3,356,500