Acquisitions

12 Months Ended

Aug. 31, 2013

Notes

Acquisitions

Note 5  Acquisitions

On January 13, 2011, we completed an acquisition of all of the outstanding shares of Axiom Mexico whereby through our wholly owned Mexican subsidiary, Axiom Acquisition Corp, acquired all of the issued and outstanding shares of Axiom Mexico, by the issuance of eighty thousand (80,000) of our common shares.

The operating results of Axiom Mexico from January 13, 2011 to May 31, 2012 are included in the accompanying Consolidated Statements of Operations (see Note 4). The acquisition date fair value of the total consideration transferred was $500,000, which consisted of 80,000 shares of Company common stock valued at $6.25 per share.

The following table summarizes the estimated fair values of assets acquired and liabilities assumed of Axiom Mexico at the acquisition date:

Cash	$ 3,435
Net VAT receivable	9,667
Other current assets	1,169
Security deposit	990
Furniture and equipment	7,476
Total identifiable assets	22,737
Related party loans payable	(47,589)
Other current liabilities	(625)
Total liabilities assumed	(48,214)
Net identifiable liabilities acquired	(25,477)
Goodwill	525,477
Net assets acquired	$ 500,000

The Company tested for impairment at the time of the acquisition and determined that the goodwill was impaired and recorded a charge of $525,477.  None of the goodwill is expected to be deductible for income tax purposes.