Firma Holdings Corp. (FRMA)

[Sam Dan]

Quite a ``paper`` loss by decoupling TRGD
As of December 31, 2014, the Company was deconsolidated from Tara Gold who also divested its interested in its Mexican subsidiary Corporacion Amermin S.A. de C.V. (“Amermin”). Due to the change in organizational relationship the Company recognized items at December 31, 2014 which had previously been eliminated under the concepts of consolidation under generally accepted accounting principles. Transactions relating to this deconsolidation are not usual and not anticipated to reoccur. Additionally, the intercompany loan balances between Tara Gold and Amermin were converted to a note for $10,315,020 with an interest rate of 3.22%.

Interest income for the year ended December 31, 2014, increased due to the Company extending a note receivable for $530,500 and Tara Gold recognizing interest income on the note with Amermin referred to above. Interest income relating to related party notes receivable at AMM encompasses the entire year ended December 31, 2013 balance and is flat in comparison between the years ended December 31, 2014 and 2013.

Subsequent to year end but contemporaneous with preparing this annual report, the Company determined that the note receivable between Tara Gold and Amermin was likely not fully collectible as the Company no longer has any influence or insight over the operations of Amermin. As such the note was impaired as of December 31, 2014. Impairment of assets other than this note for the year ended December 31, 2014 relate to either adjusting the fair value of the Dixie Mining District to the amount the Company sold it for in February 2015 or the impairment of the Pirita mining concession in Mexico. The impairment of other mining concession in Mexico was $28,001 for the year ended December 31, 2013.

Lastly, upon Tara Gold ceasing to be the parent of the Company, a total loss on deconsolidation consisting of the write off approximately $415,000 in an intercompany payable to the Company and the fair value of its investment in the Company’