NOTE 4 — EQUITY INVESTMENT

Investment in Gosling-Castle Partners Inc.

For the three months ended September 30, 2015 and 2014, GCP had pretax net income on a stand-alone basis of $1,440,035 and $974,623, respectively. For the six months ended September 30, 2015 and 2014, GCP had pretax net income on a stand-alone basis of $2,684,831 and $1,737,964, respectively. The Company allocated 40% of this net income, or $576,014 and $305,336, to non-controlling interest for the three months ended September 30, 2015 and 2014, respectively, and $1,073,932 and $695,186, to non-controlling interest for the six months ended September 30, 2015 and 2014, respectively. Combined with the effects of income tax expense, net, allocated to noncontrolling interests as described in Note 1.1 Income Taxes, the cumulative balance allocated to noncontrolling interests in GCP was $3,146,259 and $2,543,529 at September 30 and March 31, 2015, respectively, as shown on the accompanying condensed consolidated balance sheets.

In September 2015, GCP declared and paid a $1,500,000 cash dividend to its shareholders. The Company recorded 60% of this dividend, or $900,000, as a return of capital and a reduction of its investment in GCP, and allocated 40% of this dividend, or $600,000, to noncontrolling interests and a reduction in the additional paid-in capital of GCP.

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. For the three and six-month periods ended September 30, 2015, the Company recognized $4,513 of income from this investment. The investment balance was $504,513 at September 30, 2015.