Impairment Testing and Amortization Expense

(i) Impairment Testing

The Company acquired machinery and equipment and placed in service in October 2015 and is in the process of developing its acquired intellectual property for commercial operations.

No events or changes in circumstances have occurred through November 30, 2015 to indicate that its carrying amount may not be recoverable.

(ii) Depreciation Expense

Depreciation expense was $4,215 for the reporting period ended November 30, 2015.