Note 4. Investments

12 Months Ended

Dec. 31, 2015

Investments Schedule [Abstract]

Investment [Text Block]

Note 4. Investments

On November 3, 2014, we closed the acquisition of Mother Parker’s Soil, LLC, a California limited liability company (“Mother Parker”) for $125,000. The purchase price was to be paid $25,000 upon signing the purchase agreement on September 5, 2014, $25,000 ten days after signing the agreement, $25,000 30 days after the second payment, and five monthly payments of $10,000. Mother Parker is a cultivator of organic soils. During the years ended December 31, 2015 and 2014, we paid $0 and $60,000, respectively, toward this acquisition. The seller of Mother Parker has verbally agreed to accept the remaining payment as funds become available to the Company.

Mother Parker did not have any tangible assets or liabilities on the date of acquisition. The intangible asset that it has is a soil recipe to be used for the cultivation of medical cannabis. The Company has valued the intangible asset at $0 for accounting purposes. In order to realize the value from the soil recipe, the Company would have to have access to the capital needed to manufacture, market and distribute the soil. As a result, we have recorded a loss on acquisition of Mather Parker in the amount of $125,000 for the year ended December 31, 2014.

On December 15, 2014, we signed in a profit participation agreement with Elevated Industries Inc. (“Elevated”), a Canadian corporation. The agreement calls for the Company to contribute up to US$75,000, at its sole discretion. During the years ended December 31, 2015 and 2014, we contributed $20,000 and $25,000, respectively, toward this joint venture. We recorded these contributions as impairment expense due to the lack of current revenue and no indications of future revenue.

During the years ended December 31, 2015 and 2014, we recognized impairment of intangible assets of $20,000 and $150,000, respectively.