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Income Taxes

12 Months Ended

Jun. 30, 2014

No provision for federal and state income taxes has been recognized for the years ended June 30, 2014 and 2013, as the Company incurred a net operating loss for income tax purposes in each period and has no carryback potential.

The Company had net operating loss carry-forwards for income tax reporting purposes of approximately $2,290,000 as of June 30, 2014, which may be offset against future taxable income. These net operating loss carry-forwards may be carried forward in varying amounts until the time when they expire in 2034. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs or a change in the nature of the business, both of which occurred on February 7, 2014. Therefore, the amount available to offset future taxable income has been limited.

No provision for federal and state income taxes has been recognized for year ended June 30, 2013, as the consolidated financial statements for these periods are those of MV Patents as the predecessor business to VRE. MV Patents incurred a net operating loss for income tax purposes in each period and has no carryback potential. From July 26, 2013 through February 6, 2014, the time during which the financial information of MV Patents is presented in these consolidated financial statements, MVP Portfolio (now VRE, see Note 1) was a single-member LLC and disregarded entity for federal and state income tax purposes. Accordingly, federal and state income taxes are not payable by, or provided for VRE.

Deferred tax assets consisted of the following as of June 30, 2014 and 2013:

	June 30,
	2014			2013
Net operating loss carry-forwards	$	801,000		$	-
Valuation allowance		(801,000	)		-
Net deferred tax asset	$	-		$	-

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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