NOTE 4 — EQUITY INVESTMENT

Investment in Gosling-Castle Partners Inc.

As referenced in Note 1.I, GCP does not file consolidated tax returns with the Company. For the three months ended June 30, 2015 and 2014, GCP recognized ($523,962) and ($162,962) of income tax expense, net on GCP’s estimated stand-alone taxable income, respectively. The Company allocated 40% of this expense, or ($209,585) and ($65,185), to non-controlling interest for the three months ended June 30, 2015 and 2014, respectively.

Investment in Copperhead Distillery Company

In June 2015, CB-USA purchased 20% of Copperhead Distillery Company (“Copperhead”) for $500,000. Copperhead owns and operates the Kentucky Artisan Distillery. The investment is part of an agreement to build a new warehouse to store Jefferson’s bourbons, provide distilling capabilities using special mash-bills made from locally grown grains and create a visitor center and store to enhance the consumer experience for the Jefferson’s brand. The investment will be used for the construction of a new warehouse in Crestwood, Kentucky dedicated exclusively to the storage of Jefferson’s whiskies. The Company has accounted for this investment under the equity method of accounting. This investment balance was $500,000 at June 30, 2015.