Acquisition of Pharmacies

12 Months Ended

Jul. 31, 2018

Notes to Financial Statements

Acquisition of Pharmacies

 Note 15 - Acquisition of Pharmacies and New Formation:

On December 28, 2017, the Company through its wholly owned subsidiary NuGenerex, 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 note was extended by six months and set to mature with the same terms on December 28, 2018.

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.  

On June 25, 2018, there was a new entity formed called NuGenerex Medical Marketing. Since inception, there has been no material activity.