Intangible Assets

3 Months Ended

Apr. 30, 2019

Notes to Financial Statements

Note 6. Intangible Assets

Cost	BiPhasix License $		Thrudermic Non-Patented Technology $		RTIC Patents $		Total $
	(Note 6(a))		(Note 4(a))		(Note 4(b))
Balance, January 31, 2019		319,174		830,000		8,137,277		9,286,451
Effect of foreign exchange rate changes		–		–		172,725		172,725
Balance, April 30, 2019		319,174		830,000		8,310,002		9,459,176

Accumulated Amortization
Balance, January 31, 2019	110,618	74,325	751,686	936,629
Amortization	19,456	20,238	201,088	240,782
Effect of foreign exchange rate changes	–	–	17,487	17,487
Balance, April 30, 2019	130,074	94,563	970,261	1,194,898
Net book value, April 30, 2019	189,100	735,437	7,339,741	8,264,278
Net book value, January 31, 2019	208,556	755,675	7,385,591	8,349,822

Weighted average life remaining on intangible assets is 8.71 years. Future amortization for the next five years is:

Expiry Date	$
2020		751,471
2021		993,794
2022		962,969
2023		914,000
2024		914,000

(a)	BiPhasix License
	On September 12, 2017, the Company entered into a licensing agreement with Altum Pharmaceuticals Inc. (“Altum”), a party related by way of common officer, whereby the Company acquired worldwide rights to the BiPhasix™ transdermal drug delivery technology for the development and commercialization of Cannabinoids, Cannabidiol and Tetrahydrocannabinol products. Consideration included:

1)	Issuance of 2,500,000 shares of common stock on September 12, 2017 valued at $319,174, which was recorded as an intangible asset with a corresponding credit to common stock;
2)	Issuance of 2,500,000 shares of common stock of Pivot upon Health Canada Natural Product Number approval (not yet issued as of the date of this report);
3)	Royalties on annual gross sales; and
4)	For pharmaceutical products, milestone payments payable upon first Investigative New Drug Approval, upon positive outcome of Phase II trial in first indication, and upon New Drug Application approval. As of April 30, 2019 and the date of this report, no milestones have been achieved.

(b)

Solumer Oral Drug Delivery Technology

On August 7, 2018, the Company entered into a licensing agreement with Formulex Pharma Innovations (formerly Solubest Ltd.) (“Formulex”) whereby the Company will acquire worldwide rights for the use, development and commercialization of Formulex’s Solumer Oral Drug Technology solely for the improved bio-availability, delivery and commercialization of Cannabinoid and Tetrahydrocannabinol-based products for human and animal use. Financial considerations include: 1) Monthly license fee until commercialization date (US$10,000); and 2) Milestone payments upon commercialization (US$150,000) and upon net sales of US$5,000,000 (US$250,000). Other consideration includes royalties on aggregate net sales. In addition, the Company entered into a master formulations services agreement whereby the Company would be Formulex a monthly development fee of US$20,000. During the three months ended April 30, 2019, this master formulations services agreement was terminated.