NOTE 18 – INCOME TAXES

Certain activities of the Company are conducted through a TRS, FOAC, and FOAC therefore is subject to tax as a corporation. Pursuant to ASC 740, deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50%) that some portion or all of the deferred tax assets will not be realized. The tax loss for December 31, 2014 was ($4,006,540) and the book gain through June 30, 2015 was 617,493. Due to the start-up nature of the FOAC business, future income or loss is difficult to project. This is negative evidence that supports the need for a valuation allowance against the Company’s net deferred tax assets.

As of June 30, 2015, Management is not aware of any uncertain tax positions.

The following table summarized the Company’s deferred tax assets and valuation allowance as of June 30, 2015 and December 31, 2014:

	As of June 30, 2015		As of December 31, 2014
Non-current Deferred Tax Asset (Liability)
Unrealized Gain (Security)		(955,419)		(1,393,014)
Net Operating Losses		1,310,854		1,545,254
AMT Credit		4,350		-
		359,785		152,240
Valuation Allowance		(359,785)		(152,240)
Net Non-current Deferred Tax Asset (Liability)		-		-