From: Brad Wechsler <aNa> To: Richard Joslin <a.a>, Jeffrey Epstein <[email protected]> Subject: Fw: BILLIONAIRE ITALIAN COUTURE - MIAMI AND LAS VEGAS - 2014 ACCTG RECORDS Date: Fri, 27 Mar 2015 23:10:15 +0000 See below: ??? Sent from my Verizon Wireless BlackBerry Original Message From: Thomas Turrin Date: Fri, 27 Mar 2015 22:28:14 To: Alberto Ballabi ; Joe Hanel- Cc: Mike Meilak ; Brad Wechsler Subject: RE: BILLIONAIRE ITALIAN COUTURE - MIAMI AND LAS VEGAS - 2014 ACCTG RECORDS Alberto and Joe, One of the questions we are required to ask in order to comply with US GAAP accounting concerns your future expectations of profitability. This question affects the recognition of US tax benefits for net operating losses. If there is little expectation of future profitability, your financial statements must provide for a valuation allowance to reduce the value of US tax benefits arising from operating losses. If management expects there to be a turn-around from losses to profits in the near future (one - three years), the corporation can recognize all or part of the US tax benefit from the losses. The questions are .... 1. What is management's expectation of future profitability of its US operations? What time frame does management expect a turnaround? 2. Will the owners of Billionaire Italian Couture (US) continue to finance the operating losses of the US operation? If so, for how long? We are available to discuss any questions you may have. Thank you for your assistance. Best regards, Tom THOMAS TURRIN, CPA Partner Raich Ende Malter & Co. LLP 1375 Broadway EFTA00861216