Investment in Pacific Northwest Capital Corporation

6 Months Ended

Jun. 30, 2015

Investment in Pacific Northwest Capital Corporation [Abstract]

Investment in Pacific Northwest Capital Corporation

Note 10. Investment in Pacific Northwest Capital Corporation

During the first quarter of 2014, we purchased additional shares of Pacific Northwest Capital Corporation (Pacific Northwest). The purchase increased our total investment in Pacific Northwest to 850,000 shares. Our aggregate ownership percentage increased to approximately 22.4%.

As a result of the increased ownership of Pacific Northwest, the Company changed its method of carrying the investment from cost to equity as required by generally accepted accounting principles. Under the equity method, the Company records its proportionate share of the earnings of Pacific Northwest. The effect of the change in accounting method for the three months ended June 30, 2014, was to increase loss before provision for incomes taxes and net loss by $18,226. The effect of the change in accounting method for the six months ended June 30, 2014, was to increase loss before provision for income taxes and net loss by $73,306. The change for the period ending December 31, 2014 decreased the investment in Pacific Northwest to zero.