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Asset Purchase

6 Months Ended

Jun. 30, 2017

Note 17 – Asset Purchase

On June 21, 2017, the Company entered into and simultaneously closed on an Asset Purchase Agreement with Perfekt Beauty Holdings LLC and CDG Holdings, LLC, which owns 92.3% of the issued and outstanding equity interests of Perfekt Beauty. Perfekt Beauty is engaged in the business of developing and selling skincare and cosmetics products under the brand Per-fekt.

The Company has accounted for this transaction under the acquisition method of accounting. Under the acquisition method of accounting, the total acquisition consideration price is allocated to the assets acquired and liabilities assumed based on their estimated fair values. The Company has allocated the purchase price to the assets acquired and liabilities assumed as follows:

Accounts Receivable	$	52,439
Inventory		290,174
Intellectual Property		10,000
Accounts Payable		(111,217)
Consideration paid in 473,326 shares of common stock	$	241,396

As additional consideration, the Company will pay quarterly royalties equal to 5% of net sales for 10 years following the closing date. The purchase price is subject to adjustment as provided in the Purchase Agreement, based on the final amounts of accounts payable, accounts receivable and new and unsold inventory.