Note 6 - Intangible Assets

6 Months Ended

Oct. 31, 2016

Notes

Note 6 - Intangible Assets

NOTE 6 - INTANGIBLE ASSETS

On August 8, 2012 the Company entered into an Exchange Agreement with WILD Flavors pursuant to which it purchased its 45% membership interest in Sunwin USA for an aggregate consideration of approximately $1,625,874, which includes the issuance of 7,666,666 shares of our common stock valued at approximately $1,533,333 and a cash payment of $92,541. In connection with the Exchange Agreement, WILD Flavor granted, transferred and assigned to Sunwin USA all of its rights, title and interest, and the trade name Only Sweet, including any trademarks, trademark registrations and applications, service marks, service mark registrations and applications, copyrights, copyright registrations and applications, trade address, trade names (whether or not registered or by whatever name or designation), owned, applied for, or registered in the name of, the WILD Flavor (the "Only Sweet Name Rights"). Additionally, we entered into a new Distributorship Agreement with WILD Procurement which is an affiliate of WILD Flavors, as discussed in Note 1. The transaction closed on August 20, 2012. The tangible assets of Sunwin USA were reduced from $1,825,804 to $1,625,874 as a result of the application of U.S. GAAP which requires elimination of the difference between the purchase price of the 45% membership interest in Sunwin USA and cost basis of the intangible assets recorded by Sunwin USA. Intangible assets have a useful life of five years and consist of the cost of Only Sweet Name Rights and related technologies as well as the fair value of the Wild Flavors distribution Agreement. For the three and six months ended October 31, 2016 and 2015, amortization expense amounted to $81,293 and $162,586, respectively.  

Intangible assets consisted of the following:

(Estimated Life)	October 31, 2016 (unaudited)	April 30, 2016
Only Sweet name rights and related technologies (5 Years)	$        587,183	$        587,183
Distribution agreement and related distribution channels (5 Years)	1,038,691	1,038,691
Intangible assets, gross	1,625,874	1,625,874
Less: accumulated amortization	(1,354,895)	(1,192,309)
Intangible assets, net	$        270,979	$        433,565