LICENSE PURCHASED and INTANGIBLE ASSETS

12 Months Ended

Jul. 31, 2022

License Purchased And Intangible Assets

LICENSE PURCHASED and INTANGIBLE ASSETS

Note 7 LICENSE PURCHASED and INTANGIBLE ASSETS

On April 11, 2022, the Company, through its wholly owned subsidiary DSI, acquired an exclusive license to distribute in the USA, Canada and Mexico, certain intellectual property in animal nutrition and animal supplements from Cedoga Consulting, LLC. The Company receives 10% of all licensing fees due to Cedoga in exchange for 300,000 post reverse split shares of common stock of the Company. Under the terms of the agreement, the Company will pay royalties from sub-licensing on the following basis:

● 90% of net royalties for sale and initial payments up to $100,000,000 per calendar year.

● 95% of net royalties received for continuing sales above $100,000,000 per calendar year.

● 90% of any lump up-front payment sub-licensing fees.

● Option to purchase 200,000 shares of the Company’s common stock when net sales exceed $100,000,000.

 The license value has been based on the expected discounted cash flows the license will generate to the Company over its estimated 10 year life. The Company’s common shares are very lightly traded and management determined that their market value are not reliable as a determinant of value for this transaction.

	As of July 31
	2022		2021
License	$	125,000	$	-
Accumulated amortization		1,534		-
Balance, end of year	$	123,466	$	-