On February 28, 2014, the Company closed the acquisition of all the issued and outstanding shares of DML, a private limited company organized under the laws of Ireland. DML is engaged in the sales and distribution of E-cigarettes in Ireland. The following summarizes the fair value of the assets acquired, liabilities assumed and the consideration transferred at the acquisition date: Assets acquired: Cash $ 8,828 Receivables 112,460 Inventory 60,777 Loan receivable 84,936 Fixed, assets 3,826 Goodwill 167,538 Total assets acquired $ 438,365 Liabilities assumed: - Accounts payable $ 253,247 Loans payable 130,118 Total liabilities assumed $ 383,365 Consideration - 500,000 Common Shares $ 55,000 In consideration for the acquisition, the Company issued 500,000 Common Shares at $0.11 per share and 1,000,000 warrants (?Warrants?), each to acquire one Common Share of the Company. The Warrants will vest upon DML achieving cumulative E-cigarette sales revenues of over $1,500,000 beginning on the closing date. The Warrants are to be exercisable over 3 years with an exercise price of $0.25 per Common Share. On October 6, 2014, the Company?s wholly owned subsidiary DML held a meeting of DML?s creditors, whereby DML, with the approval of the Company as its sole shareholder, agreed that DML, by reason of its liabilities, be wound up by way of a voluntary liquidation and that Mr. Aengus Burns of the accounting firm of Grant Thorton and Mr. Patric Black of the accounting firm of CB Accounting Services be appointed as joint liquidators for the purposes of the winding up of DML. During the three month period ended September 30, 2014, as a result of DML?s expected voluntary liquidation by reason of its liabilities, the Company reflected a non cash charge of $167,538 as impairment of goodwill related to its investment in DML to reduce the carrying value of DML. Further, the Company wrote off $19,523 of uncollectible DML receivables and recorded a bad debt expense of $19,523 for the three month period ended September 30, 2014.