Most Important Part Of The Financials to me Anyways !! CALYX VENTURES INC. (formerly CALYX BIO-VENTURES INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in Canadian Dollars)
For the years ended December 31, 2017 and 2016
6. EQUIPMENT
Computer Equipment
Balance December 31, 2015
$
16,025
Depreciation for the period
(3,589)
Balance December 31, 2016
12,436
Additions
781,568
Depreciation for the period
(17,000)
Balance December 31, 2017
$
777,004
7. INTANGIBLE ASSETS
As of December 31, 2017, the Company’s intangible assets consist entirely of software. The Company’s intangible assets are as follows:
Software
Balance December 31, 2015
$
291,502
Addition
452,433
Depreciation
(134,696)
Balance December 31, 2016
609,239
Addition
431,300
Depreciation
(126,806)
Balance December 31, 2017
$
913,733
On November 10, 2016, the Company acquired the rights to software. In consideration for the acquisition, the Company issued 2,500,000 common shares valued at $0.105 per share, paid $50,000 cash, and issued a promissory note payable (the “Note”) having a principal balance of $150,000 payable on November 10, 2017. The Note does not bear any stated terms of interest and accordingly, the Company recorded its fair value to $139,933 at inception. The resulting debt discount of $10,067 was accreted by way of a charge to the Company’s statement of loss and comprehensive loss over the term of the Note using an effective interest rate of 7%. During the year ended December 31, 2017, upon determining to repay the Note in its entirety, the Company recorded accretion of the remaining debt discount in the amount of $8,698 (2016: $1,369)
On May 2, 2017, the Company issued 4,540,000 common shares valued at $0.095 per share for a total of $431,300 to complete the acquisition of the remaining rights to the software which it did not already own.
8. ACQUISITION OF CANADA BLOCKCHAIN HOSTING CORP.
On November 14, 2017, the Company acquired 100% of the outstanding common shares and preferred shares (the “Transaction”) of Canada Blockchain Hosting Corp. (“CBH”), for consideration of $400,000 cash. CBH held certain equipment and software.
The transaction has been accounted for as an asset acquisition with the value of the computer equipment and software acquired in the transaction expenses as development expenses during the year ended December 31, 2017.