NOTE 13 – IMPAIRMENT

During the year ended July 31, 2016 and the period ended July 31, 2015, the Company recognized impairment loss of $0 and $224,723, respectively.

Loan receivable

	July 31, 2015

Loans receivable	$	40,603
Allowance for impairment		(40,603	)
Balance - July 31, 2015	$	-

The Company’s receivables are comprised of loans assigned by the Ventus Investment Holding Limited to the Company (Note 9). These receivables were fully impaired during the period ended July 31, 2015.

Intangible asset

	July 31, 2015

Cost	$	176,215
Impairment		(176,215	)
Balance - July 31, 2015	$	-

On November 25, 2014, the Company acquired certain intangible assets from Ventus Investment Holding Limited (“Ventus’) against an issue of shares (Note 9). Additionally, the Company assumed Ventus’ obligation to remit a 10% royalty to a third party based on the net revenue generated from the use of the intangible assets purchased. The intangible assets represented game assets including software codes, software and license, digital images, drawings and marketing and customer information, intellectual property, trademarks and copyrights and all rights thereto and promotion material related to the game assets. During the period, the Company further developed the game and gaming assets.

As at the reporting date, management has decided to discontinue developing the intangible assets since it was not deemed to be economically and commercially feasible any longer. Accordingly, the intangible asset was fully impaired for $184,120 based on average rate, during the period ended July 31, 2015.