Quarterly report pursuant to Section 13 or 15(d)

SHARE EXCHANGE

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SHARE EXCHANGE
6 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
Note 4. SHARE EXCHANGE

On March 23, 2013, we entered into the Share Exchange Agreement pursuant to which Edible Garden’s stockholders exchanged common stock of Edible Garden for common stock of the Company. Pursuant to the Share Exchange Agreement, we offered and sold 1,250,000 shares of our common stock, valued at $212,500, in consideration for all the issued and outstanding shares in Edible Garden. We also acquired Edible Garden’s customer list. 

 

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. We preliminarily allocated the $212,500 consideration paid for 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 five-year period. Amortization expense was $21,240 for the six months ended June 30, 2015.