Looks like nothing based on the filing...Did that guy in St. George make off like a bandit on this deal?
Impairment of Trade Secrets
As of June 30, 2020, the Company identified indicators of impairment related to the assets acquired with Regenerative Medical Technologies, Inc. (see Note 2). Specifically, development of the assets acquired has proceeded significantly more slowly than originally planned due to the departure of key personnel and related difficulties in obtaining patient consent required to use the acquired assets in the Company's research activities. The Company determined the fair value of the assets acquired to be $334,000 using the cost to recreate method, which resulted in an impairment charge of $10,041,556. This valuation approach uses inputs that qualify as Level 3 in the fair value hierarchy. The impairment charge is included in loss on impairment in the consolidated statement of operations. The impaired assets and the related impairment charge is included in the Diagnostics and Therapeutics segment.
NOTE 2 BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS
Regenerative Medical Technologies, Inc.
On December 19, 2018, the Company completed an asset acquisition via a merger with the stockholders of Regenerative Medical Technologies, Inc. ("RMT"), a Utah corporation. The Company acquired RMT for 10,000,000 shares of common stock. RMT holds various assets including (i) models, methods and protocols for collection of birthing tissue and DNA samples, (ii) patient registry models, methods and protocols to collect clinical outcomes and electronic medical records, and (iii) designs and methodologies relating to many initiatives that are complementary to anticipated product offerings and ongoing research, and (iv) other assets.
The fair value of consideration paid was determined based on our stock price of $0.92 on the date of acquisition. In addition, the Company recognized a deferred tax liability of $3,066,667 related to the differences between book and tax basis arising from the acquisition, resulting in a total purchase price of $12,266,667. The Company determined that the assets acquired qualify for treatment as trade secrets within industry. The trade secrets will be amortized over an estimated useful life of 10 years.
Intangible Assets and Other Long-Lived Assets
As of June 30, 2020, the Company had identified indicators of impairment for certain of its long-lived assets for certain of its long-lived assets and performed an impairment test related to those long-lived assets. An impairment charge of $10,041,556 was recorded related to assets acquired with Regenerative Medical Technologies, Inc. (see Note 5). There were no impairments for the year ended June 30, 2019.
Impairment of Trade Secrets
As of June 30, 2020, the Company identified indicators of impairment related to the assets acquired with Regenerative Medical Technologies, Inc. (see Note 2). Specifically, development of the assets acquired has proceeded significantly more slowly than originally planned due to the departure of key personnel and related difficulties in obtaining patient consent required to use the acquired assets in the Company's research activities. The Company determined the fair value of the assets acquired to be $334,000 using the cost to recreate method, which resulted in an impairment charge of $10,041,556. This valuation approach uses inputs that qualify as Level 3 in the fair value hierarchy. The impairment charge is included in loss on impairment in the consolidated statement of operations. The impaired assets and the related impairment charge is included in the Diagnostics and Therapeutics segment.
