"The Company recognized $113,342 in revenue related to the sale
of the PATSCAN platform during the year ended July 31, 2021"
COST SIDE
"The Company’s interest in Sotech was recorded in the consolidated financial statements at its expected fair value of $4,021,200 ($USD 3 million) as at July 31, 2020. During the year ended July 31, 2021, management considered several factors including recent developments and concluded that the Company is unlikely to recoup its investment in Sotech. Accordingly, the Company has written the investment balance in Sotech down to $nil as at July 31, 2021. Despite the write-down, management will continue to take every financially prudent measure to recover the Company’s investment in Sotech." IE $4million DOWN THE TOILET
Goodwill STILL LISTED AS OVER $25million SO THEY WRITE THIS:
Impairment of Goodwill The Company's evaluation of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. The Company used the discounted cash flow model to estimate fair value, which requires management to make significant estimates and assumptions related to forecasts of future revenues and operating margins, and discount rates. Changes in these assumptions could have a significant impact on either the fair value, the amount of any goodwill impairment charge, or both. As disclosed in Note 12, the Company carries out impairment tests on goodwill, annually or when events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill amounts to $25,582,433 as of July 31, 2021. Due to the significant balance of goodwill for the Company’s financial statements, and since the calculations are based on estimations and susceptible to potential manipulation, we consider this to be a key audit matter. To address this key audit matter, we performed the following procedures: We obtained an understanding of the controls and control activities in place related to the determination and management’s review of significant assumptions used in the calculation; We performed sensitivity testing to consider the impact of changes in certain assumptions on the estimate of recoverable amount; With the assistance of our internal valuation specialist we evaluated whether the valuation techniques used in estimating the recoverable amounts were appropriate; We compared the discount rate used to the weighted average cost of capital and to a range developed using publicly available information for comparable companies; and We compared growth rates used by management to historical information, approved budgets, as well as industry standards.