LICENSE AGREEMENT AND INVESTMENT

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

LICENSE AGREEMENT AND INVESTMENT

On March 31, 2015, BVAP and TAUG entered into a non-exclusive license agreement, whereby TAUG will provide CBD oil cartridges to be used in the BVAP e-cigarette.  In accordance with the agreement, TAUG will receive a royalty of 50% of the net revenues associated with the sale of specified list of products listed in the agreement.  In addition, there was a share swap between TAUG and BVAP to equate to $100,000.  BVAP issued 2,666,667 shares at $0.0375 for the commercialization of the products.  TAUG issues 10,869,565 shares of its stock to acquire the license agreement (investment). 

Description	Amount
License Agreement / Commercialization Fees - 2 years dated 3/31/15
Stock issued	$	100,000
Total	$	100,000
Less: Management impairment valuation		100,000
Net December 31, 2015	$	-
Issued 2,666,667 shares of Company common stock		2,666,667
at $0.01 per share.	$	0.0375
Share value	$	100,000
Less: Management impairment valuation	$	100,000
Net December 31, 2015	$	-

At December 31, 2015 it was determined by management of both companies that the value of the investment based on stock value and no business venture will be pursued was valueless. Therefore, the entire investment and commercialization fees recorded were written off completely.