Quarterly report pursuant to Section 13 or 15(d)

ACQUISITION (Tables)

v3.7.0.1
ACQUISITION (Tables)
3 Months Ended
Jun. 30, 2017
Business Combinations [Abstract]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following sets forth the purchase price allocation based on management’s best estimates of fair value, including a summary of major classes of consideration transferred and the recognized amounts of assets acquired and liabilities assumed at the acquisition date.
 
 
 
As at
 
 
 
April 21, 2016
 
 
 
$
 
Fair value of 23,650,000 shares of common stock (a)
 
 
23,177,000
 
Fair value of vested stock options (b)
 
 
2,582,890
 
Allocation of purchase price:
 
 
25,759,890
 
Cash and cash equivalents
 
 
266,635
 
Accounts receivable
 
 
6,490
 
Inventories
 
 
188,879
 
Prepaid expenses and other current assets
 
 
16,839
 
Equipment
 
 
59,749
 
Liabilities assumed:
 
 
 
 
Accounts payable
 
 
(241,299)
 
Accrued liabilities
 
 
(361,029)
 
Customer deposits
 
 
(86,487)
 
Demand notes payable
 
 
(324,894)
 
Promissory notes payable
 
 
(217,808)
 
Bionik advance (c)
 
 
(1,436,164)
 
Net assets acquired
 
 
(2,129,089)
 
Patents and exclusive License Agreement
 
 
1,306,031
 
Trademark
 
 
2,505,907
 
Customer relationships
 
 
1,431,680
 
Non compete agreement
 
 
61,366
 
Assembled Workforce
 
 
275,720
 
Goodwill
 
 
22,308,275
 
 
 
 
25,759,890
 
 
(a)
The fair value of common stock was based on $0.98, which was the closing market price of the Company’s common stock on April 21, 2016.
 
(b)
The fair value of the vested stock options was determined using the Black Scholes option pricing model with the following key assumptions: a risk free rate of 1.59%, dividend and forfeiture rates of 0% and expected volatility of 114% which is consistent with the Company’s assumptions (Note 10).
 
(c)
Included in the net assets acquired was a loan issued to IMT in the amount of $300,000 under normal commercial terms. The loan carried an interest rate of 6% and were secured by all the assets of IMT subject to a $200,000 subordination to a third party financial services company, which was released in April 2016.
Business Acquisition, Pro Forma Information [Table Text Block]
The schedule below reflects the intangible assets acquired in the IMT acquisition and the assets amortization period and expense for the three month period ended June 30, 2017 and the year ended March 31, 2017:
     
Intangible 
 
Amortization
 
 
 
Expense March
 
Value at March
 
Expense June
 
Value at June
 
assets acquired
 
period (years)
 
Value acquired
 
31, 2017
 
31, 2017
 
30, 2017
 
30, 2017
 
 
 
 
 
$
 
$
 
$
 
$
 
$
 
Patents and exclusive License Agreement
 
9.74
 
 
1,306,031
 
 
126,375
 
 
1,179,656
 
 
33,559
 
 
1,146,097
 
Trademark
 
Indefinite
 
 
2,505,907
 
 
-
 
 
2,505,907
 
 
-
 
 
2,505,907
 
Customer relationships
 
10
 
 
1,431,680
 
 
134,931
 
 
1,296,749
 
 
35,830
 
 
1,260,919
 
Non compete agreement
 
2
 
 
61,366
 
 
28,918
 
 
32,448
 
 
7,696
 
 
24,752
 
Assembled Workforce
 
1
 
 
275,720
 
 
259,856
 
 
15,864
 
 
15,864
 
 
-
 
 
 
 
 
 
5,580,704
 
 
550,080
 
 
5,030,624
 
 
92,949
 
 
4,937,675