Quarterly report pursuant to Section 13 or 15(d)

SALE OF RUB

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SALE OF RUB
9 Months Ended
May 31, 2019
Sale Of Rub [Abstract]  
SALE OF RUB

NOTE 6 - SALE OF RUB

 

On September 21, 2018, Smoke Cartel, Inc. (“Smoke Cartel”) and the Company entered into an agreement to sell a web domain and inventory related to the Company’s Roll-uh-Bowl (“RUB”) product line. The Company received 1,410 shares of Smoke Cartel common stock as part of the consideration for this transaction. The fair value of its equity investment as of September 21, 2018 was based upon the closing stock price of Smoke Cartel.

   

The following sets forth the calculation of the gain on disposition of assets upon completion of the sale:

 

Fair value of Smoke Cartel as of September 21, 2018   $ 1,790  
RUB web domain and inventory sold     (536 )
Gain on disposition of assets   $ 1,254  

 

The sale of the RUB assets did not qualify as a discontinued operation as the sale is not a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. 

 

As of May 31, 2019, the 1,410 shares of Smoke Cartel were valued at $1,128 and is recorded in Other assets on the Company’s unaudited condensed consolidated balance sheet.