Acquisition of Pharmacies

6 Months Ended

Jan. 31, 2018

Notes to Financial Statements

Acquisition of Pharmacies

Note 9 - Acquisition of Pharmacies

On December 28, 2017, the Company completed the acquisition of the assets and 100% of the membership interests of two pre-operational pharmacies, Empire State Pharmacy Holdings, LLC and Grainland Pharmacy Holdings, LLC, pursuant to the bills of sale for a consideration of $320,000 Promissory Note due and payable in full on June 28, 2018 bearing an annual interest rate of 3%.

The purchase price has been allocated as of the acquisition date based on management’s preliminary estimates as follows:

Intangible assets	$	276,380
Property and Equipment		19,879
Leasehold Improvements		17,761
Computer Software		5,980
Total Assets Acquired	$	320,000

The intangible assets represent the licenses obtained to operate a pharmacy in the respective state of each of the acquired pharmacies. Intangible assets are generally amortized on a straight-line basis over the useful lives of the assets. The Company is currently not amortizing the pharmacy license until the pharmacies becomes commercially viable and operations begin in the acquired pharmacies. At the time, when the intangible assets are placed in service, the Company will determine a useful life.

The Company has determined that the acquisition of the two pharmacies was a non-material business combination.  As such, pro forma disclosures are not required and are not presented within this filing.