NOTE 5 – INTANGIBLE ASSETS

Trademarks

The trademarks “Reign” and “Reign Opulence” (collectively “Trademarks”) were purchased on June 30, 2015 from a third party in exchange for 1,000,000 shares of the Company’s restricted stock, valued at $250,000 (based on the estimated fair value of the stock on the date of grant) plus $10,000 cash for the purchase of two trademarks. The Company has recorded a total of $260,000 as intangible assets in the accompanying Balance Sheet at June 30, 2016. Trademarks are amortized over their estimated useful life. There was no amortization expense for the three and six months ended June 30, 2016 and 2015 as amortization of the Trademarks will begin when the Company launches its website and begins to market the trademarked names, which is planned for in late third calendar quarter of 2016.

Website Development Costs

The Company evaluated the cost incurred and pursuant to ASC 350-50 capitalized $8,000 as website development under intangible assets in the accompanying Balance Sheet at June 30, 2016. Website development costs are expected to have an estimated life of three years. There was no amortization expense for the three and six months ended June 30, 2016 and 2015 as amortization of the Website will begin when the Company launches the website and begins to market the trademarked names, which is expected to occur in late third calendar quarter of 2016.

Intangible assets consisted of the following: