Quarterly report pursuant to Section 13 or 15(d)

SHARE EXCHANGE

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SHARE EXCHANGE
6 Months Ended
Jun. 30, 2014
Notes to Financial Statements  
Note 4. SHARE EXCHANGE

On April 24, 2013, the shareholders of the Company entered into a definitive agreement pursuant to which its shareholders exchanged common stock of Edible Garden Corp. for common stock of the Company. Under the agreement the Company acquired the customer list. Under the terms of this agreement the Company paid 1,250,000 shares of common stock valued at $212,500.

 

The transaction was accounted for as a business acquisition. In accordance with generally accepted accounting principles, intangible assets are recorded at fair values as of the date of the transaction. The Company has preliminarily allocated the $212,500 consideration paid to the acquired assets as follows:

 

Cash     100  
Intangible assets, customer list     212,400  
Fair value acquired   $ 212,500  

 

Intangible assets with estimated useful lives are amortized over a 5 year period. Amortization expense was $21,240 for the six months ended June 30, 2014.