v3.2.0.727
Acquisitions
 6 Months Ended
Jun. 30, 2015
Business Combinations [Abstract]  
Acquisitions

NOTE 5 – ACQUISITIONS

 

On February 26, 2015, Lexi Luu entered into and closed under a securities purchase agreement to acquire 100% of all outstanding shares of Skipjack Dive and Dancewear, Inc., in exchange for a 2% subordinate secured term note in the aggregate principal amount of $100,000. The note has a maturity date of September 30, 2015, and is convertible at the rate of $0.10 per share into 1,000,000 shares of common stock of the Company.

 

On March 3, 2015, Lexi Luu entered into and closed under a securities purchase agreement to acquire 100% of all outstanding shares of Punkz Gear, Inc., in exchange for a 2% subordinate secured term note in the aggregate principal amount of $200,000. The note has a maturity date of September 30, 2015, and is convertible at the rate of $0.10 per share into 2,000,000 shares of common stock of the Company.

 

For Skipjack Dive and Dancewear, Inc. and Punkz Gear, Inc. acquisitions the accounting for the business combination is based on provisional amounts and the allocation of the excess purchase price is not final, the amounts allocated to intangibles, are subject to change pending the completion of final valuations of certain assets and liabilities. The statements of operations reflect the results of Skipjack Dive and Dancewear, Inc. and Punkz Gear, Inc., since the date of acquisition.

 

The total purchase price for the Skipjack acquisition was allocated as follows:

 

Assets        
Cash     1,502  
Other assets     10,494  
Intangible assets-Customer relationships     84,751  
Property and equipment     25,000  
Liabilities        
Accounts payable and accrued liabilities     (7,445 )
Due to shareholder     (14,302 )
Net assets acquired   $ 100,000  

 

The total purchase price for the Punkz Gear acquisition was allocated as follows:

 

Assets        
Cash     16,526  
Other assets     8,276  
Intangible assets-Customer relationships     175,938  
Liabilities        
Accounts payable and accrued liabilities     (740 )
Net assets acquired   $ 200,000  

 

The customer relationships will be amortized over their estimated useful lives of 2 years.