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Ceapro Inc V.CZO

Ceapro Inc. is a Canada-based biotechnology company. The Company is involved in the development of extraction technology and the application of this technology to the production of extracts and active ingredients from oats and other renewable plant resources. Its primary business activities relate to the development and commercialization of natural products for personal care, cosmetic, human, and animal health industries using technology, natural, renewable resources, and developing products, technologies, and delivery systems. The Company's products include a commercial line of natural active ingredients, including beta glucan, avenanthramides (colloidal oat extract), oat powder, oat oil, oat peptides, and lupin peptides, a commercial line of natural anti-aging skincare products, utilizing active ingredients, including beta glucan and avenanthramides and veterinary therapeutic products, including an oat shampoo, an ear cleanser, and a dermal complex/conditioner.


TSXV:CZO - Post by User

Bullboard Posts
Comment by EbbFlow88on Apr 11, 2019 12:40pm
69 Views
Post# 29613551

RE:Why 0 intangibles?

RE:Why 0 intangibles?The reason it is 0 is because they had impairment charges that took the previous years intangible amount to zero. $218,000 was related to the impairment charge of Juvente.

"Goodwill of $218,606 arose from the acquisition of JuventeDC Inc. and has been allocated to that cash generating unit (see note 5).

The Company performed its annual impairment test as at December 31, 2018. The recoverable amount of the CGU was estimated using value in use calculations. These calculations used pretax cash flows covering a five-year period based on estimated growth rates for revenue and financial budgets and financial forecasts approved by management. The present value of the expected cash flows was determined using a risk adjusted discount rate of 22.5%. The revenue growth rates and discount rate are the key assumptions in the calculation of value in use.

Management’s key assumptions to cash flow forecasting include average annual increases in revenue of 159% from anticipated marketing campaigns and high gross margins based on the 17 industry segment that the segment operates in, however the CGU is in the start-up phase and there are a number of market conditions that impact the pace of development.

The carrying amount of the CGU exceeded the recoverable amount resulting in an impairment charge to goodwill in the amount of $218,606 and to intangible assets in the amount of $430,533 (see note 9). Given that there are no longer any carrying amounts for intangible assets or goodwill, no further impairment will be taken."
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