Operating losses for the years ended June 30, 2015 and 2014 were $822,876 and $2,829,163 relating to domestic operations and $0 and $669,448 relating to foreign operations, respectively.

We had $6,467,305 and $7,240,785 of net operating loss carry forwards as of June 30, 2015 and June 30, 2014, respectively, which are comprised of $2,540,382 and $1,945,797 of U.S. federal and $3,926,923 and $3,425,640 state net operating losses, respectively, which expire in varying amounts beginning 2032, if unused. The Company also has net operating losses related to its Ghana operations of $0 and $1,869,348 as of June 30, 2015 and 2014, which begin to expire in 2018; however, there is a tax holiday for our agriculture operations in Ghana and therefore there is no future tax benefit for the losses. The Company ceased operations in Ghana so this portion of the net operating losses will expire unused and was reduced to zero as of June 30, 2015.

A change in our ownership of more than 50% occurred during the year ended June 30 2015. The annual utilization of the net operating carry forwards is subject to certain limitations under Section 382 of the Internal Revenue Code of 1986, as amended, and other limitations under state tax laws. As a result, the provisions of Section 382 caused net operating losses $0 U.S. federal and $1,274,626 state to become permanently restricted.

The temporary differences and carry forwards which give rise to the deferred income tax assets are as follows:

	For the Years Ended June 30,
	2015	2014
Accrued compensation	$22,380	$43,189
Debt discount & benefical conversion feature	-	(4,075)
Other	-	6,516
Net operating loss carry forwards	993,318	774,617
Valuation allowance	(1,015,698)	(820,247)
Net long-term deferred tax asset	$-	$-

A reconciliation of income taxes at the federal statutory rate to actual income tax expense is as follows:

	For the Years Ended June 30,
	2015	2014
Income tax benefit at the statutory rate	$(191,029)	$(1,189,528)
State income taxes, net of federal benefit	(18,641)	(93,462)
Foreign rate differential	-	227,613
Change in valuation allowance	195,451	381,991
Change in net operating loss carry forwards	12,489	(2,057)
Cancelation of stock options	-	643,059
Loss on sale of subsidiary	-	32,384
Other	1,730	-
Income tax expense (benefit)	$-	$-