Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS

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DISCONTINUED OPERATIONS
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
NOTE 4. DISCONTINUED OPERATIONS

Memcine

 

On June 2, 2015, the Company acquired 82.25% of the ownership in Memcine for $30,000.

 

The following table summarizes the allocation of the purchase price to the net assets acquired:

 

Fair value at June 2, 2015      
Cash   $ 27,071  
Property, plant and equipment     18,071  
IPR&D     212,541  
Total assets     257,683  
         
Accounts payable and accrued liabilities     (854 )
Deferred liabilities     (220,465 )
Total liabilities     (221,319 )
Net assets acquired   $ 36,364  

 

The Company recorded the 17.75% non-controlling interest in Memcine at a fair value of $6,364.

 

On October 12, 2016, the Company terminated its interests in Memcine pursuant to a Termination Agreement with Memcine, the University of Iowa Research Foundation, and Dr. Tony Vanden Bush. The Company has reclassified the results from operations of Memcine to discontinued operations.

 

The following table summarizes the results of the Memcine business included in the consolidated statement of income as discontinued operations:

 

   

Six Months

Ended

June 30,

2016

 
Sales   $ -  
General and administrative expenses     109,550  
Depreciation     874  
Loss before taxes     (110,424 )
Income taxes     -  
Net loss from discontinued operations   $ (110,424 )

 

Non-transferable balance sheet positions, such as intercompany payables of $299,574 as of October 12, 2016 were considered forgiven and netted against the gain on the disposal.