The following is a reconciliation of the statutory federal and state tax rates to our projected annual effective rate at June 30, 2014 and 2013.

Reconciliation of Statutory Tax Rate to Effective Tax Rate


	June 30, 2014		June 30, 2013
Federal statutory rate		34.0 %		34.0 %
State statutory rate, net of Federal tax effect		7.2 %		7.2 %
Differences in taxable (loss) income from GAAP income		(2.5) %		(8.3) %
Change in valuation allowance		1.2 %		(12.2) %
Dividends paid deduction		(45.5) %		(10.7) %

Effective Tax Rate		(5.6) %		10.0 %