NOTE 4 — EQUITY INVESTMENT

Investment in Gosling-Castle Partners Inc.

As referenced in Note 11, GCP does not file consolidated tax returns with the Company. For the year ended March 31, 2015, GCP recognized $(288,178) of deferred tax expense on GCP’s estimated stand-alone taxable income. The Company allocated 40% of this expense, or ($115,271), to minority interest for the year ended March 31, 2015.

Discontinuation of Investment in DP Castle Partners, LLC

In August 2010, CB-USA formed DP Castle Partners, LLC (“DPCP”) with Drink Pie, LLC to manage the manufacturing and marketing of Travis Hasse’s Original Apple Pie Liqueur, Cherry Pie Liqueur and any future line extensions of the brand. In December 2013, CB-USA determined to cease marketing and selling these brands and returned the remaining inventory to Drink Pie, LLC. For the year ended March 31, 2014, CB-USA purchased $170,880 in finished goods from DPCP under a distribution agreement. At March 31, 2014, CB-USA owned 20% of now inactive DPCP. CB-USA also earned a defined rate of interest on its capital contribution to DPCP, based on its ownership in DPCP. For the year ended March 31, 2014, CB-USA earned $4,200 in interest income on its capital contribution to DPCP. The Company accounted for this investment under the equity method of accounting. In connection with the discontinuation of marketing and sales efforts, the Company recognized a loss of $502,518 from its investment in DPCP for the year ended March 31, 2014, including a $120,900 loss on investment and write-offs of $399,618 on the remaining receivable balances due from DPCP.