Note 6 - Intangible Asset

12 Months Ended

Dec. 31, 2016

Intangible Assets Disclosure [Text Block]

NOTE

– INTANGIBLE

ASSET

Intangible asset as of

December

31,

2016

and

2015,

consisted of the following:

Description	2016		2015
Lighting patent	$	2,364,133	$	-
Amortization		44,281		-

Net light patent	$	2,319,852	$	-

September

12,

2016,

the Company completed the transaction to acquire assets, including patented Cold LED Lighting Technology, from Tesla Digital, Inc. (A Canadian Corporation) and Stevan (Steve) Pokrajac.

The material consideration given by Company includes:

●

3,125,000

shares of Cen Biotech stock. The issuance is to be completed, at the Company discretion, within no more than

180

days from the closing date.

●

The transfer of real properties located at

135

North Rear Road having a book value of

$2,161,467

USD and

1517

1525

Ridge Road having a purchase cost (including other related disbursements) to the Company of approximately

$182,488.

Description	2016		2015

Lighting patent	$	2,364,133	$	-
Amortization		44,281		-

Net light patent	$	2,319,852	$	-

●

Non-material consideration includes employment by the principal of the acquiree with an operating company to be formed to realize the potential of the acquired technology.

The Company plans to explore manufacturing operations and licensing opportunities across multiple industries such as horticultural, automotive, industrial and commercial lighting. The assets acquired other than the patent included old machinery and raw materials. The company has assigned no value to these since their value was not relevant to or calculated in the company’s offer for acquisition. Therefore, no impairment will be necessary if these assets are disposed of.

We have performed an impairment assessment on this patent and have concluded that there was no need to impair the value of this asset as of

December

31,

2016.