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 Sheets at September 30, 2016 and December 31, 2015. Trademarks are amortized over their estimated useful life. There was no amortization expense for the three and nine months ended September 30, 2016 and 2015 as amortization of the Trademarks will begin in the fourth quarter 2016 as the Company launched its website and has begun to market the trademarked names.

Website Development Costs

The Company evaluated the cost incurred and pursuant to ASC 350-50 and capitalized $8,000 as website development under intangible assets in the accompanying Balance Sheet at September 30, 2016. Website development costs are expected to have an estimated life of three years. There was no amortization expense for the three and nine months ended September 30, 2016 and 2015 as amortization of the Website will begin in the fourth quarter 2016 as the Company has begun to market the trademarked names.

Intangible assets consisted of the following: