Intangible Assets |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Note 8 – Intangible Assets
Intangible assets at August 31, 2024 and 2023 consisted of the following:
Amortization expense for the years ended August 31, 2024 and 2023 was $2,002,009 and $2,010,713, respectively.
Expected amortization expense of intangible assets over the next 5 years and thereafter is as follows:
On January 7, 2019, 2478659 Ontario Ltd. (“247”) and Kainai Cooperative (“Kainai”) entered into a Joint Venture Agreement (the “Joint Venture Agreement”) for the purpose of developing, managing and arranging for financing of greenhouse and farming projects involving hemp and cannabis cash crops on Kainai related lands, and developing additional infrastructure projects creating jobs and food supply to local communities. On January 8, 2019, we and 247 entered into an Agreement of Transfer and Assignment, pursuant to which 247 agreed to sell, assign and transfer to the Company all rights, contracts, contacts and any and all other assets related in any way to the Joint Venture Agreement. Pursuant to the terms of the Joint Venture Agreement, as assigned to us, the parties will work in a joint venture relationship (“JV”) with the Company providing the finance, development and operation of the project, including sales, and Kainai providing the land and approvals for the development of the projects. Pursuant to the terms of the Joint Venture Agreement, (i) the Company has an 80% controlling interest and Kainai has a 20% interest in the JV; and (ii) the Company has sole discretion to identify the name and entity under which the JV will operate. The legal entity in which the JV will operate has not yet been identified or formed. The JV operations will primarily involve the production – including processing, packaging and sales of natural supplements derived from hemp derived cannabis oils. The joint venture will distribute to the Company and Kainai all net proceeds after debt and principal servicing and repayment allocation, as well as operating capital allotment, on a ratio equal to 80% to the Company and 20% to Kainai. The Joint Venture Agreement has an initial term of 50 years and Kainai may renew the Joint Venture Agreement within five years of the expiry of the initial term upon mutual agreement. On January 30, 2019, pursuant to the terms of the Joint Venture Agreement, the Company issued restricted common shares to 247 with a value of $21,600,000. As at August 31, 2024, the land use rights were determined to be impaired by $604,388 (2023 - $10,026,679).
On December 17, 2019, the Company entered into that certain Intellectual Property Asset Purchase Agreement (the “APA”) by and between the Company and 2731861 Ontario Corp. (the “Seller”), pursuant to which the Company agreed to purchase, and Seller agreed to sell (the “Acquisition”), proprietary designs for an innovative cannabis dosing device, in addition to designs, plans, procedures, and all other material pertaining to the application, construction, operation, and marketing of a cannabis business under the regulations of Health Canada (the “Intellectual Property”). Pursuant to the terms of the APA, the purchase price of the Intellectual Property is 5,248,000. As at August 31, 2024, the acquired intellectual property was determined to be impaired by $53,206 (2023 - $1,858,179). shares of restricted common stock of the Company valued at $
In connection with the acquisition of PRO-DIP (see Note 16), the Company acquired intellectual property valued at $455,752. As at August 31, 2024, the acquired intellectual property was determined to be impaired by $103,476 (2023 - $52,752).
In connection with the acquisition of Acenzia (See Note 16), the Company acquired the following intangible assets: intellectual property valued at $2,875,000; customer relationships valued at $806,000 and brand names valued at $2,115,000.
In connection with the acquisition of Terragenx (see Note 16), the Company acquired intellectual property valued at $1,179,361. As at August 31, 2024, the acquired intellectual property was determined to be fully impaired.
In connection with the acquisition of 1285 Canada (see Note 16), the Company acquired customer relationships valued at $31,101.
In connection with the acquisition of Poling Taddeo Hovius Physiotherapy Professional Corp. (see Note 16), the Company acquired customer relationships valued at $151,686.
In connection with the acquisition of Clinical Consultants International LLC (see Note 16), the Company acquired customer relationships valued at $1,701,814. As at August 31, 2024, the acquired customer relationships were determined to be impaired by $ (2023 - $317,314).
|