Note 9 - Patent Acquisition

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Business Combination Disclosure [Text Block]

NOTE

9

– PATENT ACQUISITION

On

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 was:

(a) Cen Biotech common stock that will equal $5 million on the date of issuance.

(b) The transfer of real properties located at 135 North Rear Road, Lakeshore, Ontario, Canada 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.

In addition, the Company will employ Stevan Pokrajak in connection with the development of the acquired technology with compensation equal to

$200,000

per year.

The Company

intends

to explore

using the

Cold LED Lighting Technology across 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.