| 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 |
|
| Property and equipment |
|
|
1,288 |
|
| Total tangible assets |
|
|
2,054,488 |
|
| |
|
|
|
|
| Identifiable intangible assets |
|
|
|
|
| Vendor relationships |
|
|
1,170,000 |
|
| Trade name |
|
|
230,000 |
|
| Noncompete agreement - PhytoSPHERE |
|
|
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 |
| |
|
Original
Fair Market Value |
|
|
Accumulated
Amortization |
|
|
Net |
|
| |
|
|
|
|
|
|
|
|
|
| Balance - December 31, 2013: |
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Balance - December 31, 2014: |
|
|
|
|
|
|
|
|
|
|
|
|
| Vendor relationships |
|
$ |
1,170,000 |
|
|
$ |
448,000 |
|
|
$ |
722,000 |
|
| Trade name |
|
|
230,000 |
|
|
|
88,167 |
|
|
|
141,833 |
|
| Noncompete agreement |
|
|
2,710,000 |
|
|
|
1,038,833 |
|
|
|
1,671,167 |
|
| |
|
$ |
4,110,000 |
|
|
$ |
1,575,000 |
|
|
$ |
2,535,000 |
|
|