Note 10 – Income Taxes

The income tax provision reconciled to the tax computed at the statutory Federal rate follows:

	2014			2013

Tax Expense at Statutory Rate	$	(211,318	)	$	(225,640	)
Valuation Allowance		182,154			222,093
Non-Deductible Expenses and Other		29,164			3,547
State Taxes, Net of Federal Benefit		65,416			57,168
Income tax expense	$	65,416		$	57,168

Current	$	65,416		$	57,168
Deferred		-			-
Total	$	65,416		$	57,168

Deferred income taxes are comprised of the following at December 31, 2014 and 2013:

	2014			2013
Deferred tax assets (liabilities):
Inventories	$	82,274		$	160,145
Stock options and other		96,009			56,351
Alternative Minimum Tax credit carryforward		24,674			24,674
Contingencies and accruals		90,829			513,219
Property and equipment		(340,099	)		(489,389	)
Capital loss carryover		25,420			25,420
Net operating loss carryforward		10,499,884			9,279,196
Intangibles		179			(19,748	)
Total deferred tax assets, net		10,479,170			9,549,868

Valuation allowance	$	(10,479,170	)	$	(9,549,868	)

As of December 31, 2014, the Company had approximately $2,085,618 of net operating loss carry-forwards, related to the Superior Galleries acquisition which may be available to reduce taxable income in future years, subject to the applicable Internal Revenue Code Section 382 limitations. As of December 31, 2014, the Company had approximately $33,648,584 of net operating loss carry-forwards related to Superior Galleries' post acquisition operating losses and other operating losses incurred by the Company's other operations. These carry-forwards will expire, starting in 2024 if not utilized. As of December 31, 2014 and 2013, the Company determined based on consideration of all available evidence, including but not limited to historical, current and future anticipated financial results as well as applicable IRS limitation and expiration dates related to the Company's net operating losses a full valuation allowance should be recorded for its net deferred tax assets.