Income Taxes

12 Months Ended

Feb. 28, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Blocker, a wholly-owned subsidiary, has elected to be taxed as a corporation. Accordingly, equity in the flow-through earnings of Eldorado and Mesquite is taxed to Blocker. NGA incurs certain other costs, primarily associated with being a public company, including professional and other fees, which, for tax purposes, flow through to its members.

A reconciliation between the Company’s effective tax rate and the statutory tax rate for the years ended February 28, 2014 and 2013 follows:

	2014					2013
	Total			Percent		Total			Percent
Statutory federal rate	$	1,406,202		35.00	%	$	(919,189	)	35.00	%
Amount not subject to corporate income taxes	(84,696		)	(2.11	)%	116,304			(4.43	)%
Permanent items	—			—	%	(108,022		)	4.11	%
Provision to tax return adjustments	—			—	%	25,628			(0.97	)%
Tax credit	(46,254		)	(1.15	)%	—			—	%
Change in valuation allowance	(1,112,489		)	(27.69	)%	940,205			(35.80	)%
Deferred True-up	478			0.01	%	(54,926		)	2.09	%
Tax at effective rate	$	163,241		4.06	%	$	—		—	%

The Company has recorded a valuation allowance of 100% of its net deferred tax assets as of February 28, 2014 and 2013, as realization of the deferred tax asset is not considered more likely than not. In assessing the realizability of the deferred tax assets management considered whether future taxable income will be sufficient during the periods in which those temporary differences are deductible or before NOLs expire. Management considers the scheduled reversal of deferred tax liabilities, projected taxable income and tax planning strategies in making this assessment.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used to determine taxable income for income tax reporting purposes. The following table presents the significant components of the non-current deferred tax assets (liabilities) of the Company and its consolidated subsidiaries related to its investments in Eldorado and Mesquite as of February 28, 2014 and 2013.

	2014			2013
Net operating loss carryforward	$	—		$	743,289
Tax credit carryforward	—			356,615
Basis difference for investments in investees	5,362,468			5,241,886
Acquisition costs	157,079			157,079
Contributions limitation and carryforward	85,000			218,168
Subtotal	5,604,547			6,717,037
Less: valuation allowance	(5,604,547		)	(6,717,037		)
Net deferred tax asset	$	—		$	—