The Company and its subsidiary file separate tax returns as
they are unable to file consolidated tax returns. The Company and its subsidiary have not filed income tax returns for the years
ended June 30, 2012, 2011, 2010 and 2009 and anticipate no significant income tax expenses as a result of these filings.
On July 1, 2010, as amended, the Company and RBL entered into
an agreement to sell 100% of the common stock of Gaming to Catskills Gaming and Development, LLC (Catskill). As a result,
the Company has recorded the deconsolidation of Gaming and recorded a loss of $6,843,246.
As of March 31, 2012, management has evaluated and concluded
that there are no significant uncertain tax positions requiring recognition in the Companys financial statements.