Subsequent Events-Eldorado Transaction

6 Months Ended

Aug. 31, 2014

Subsequent Events [Abstract]

Subsequent Events-Eldorado Transaction

Subsequent Events - Eldorado Transaction

Effective September 19, 2014, as a result of the transaction described and designated above as the Eldorado Merger, which was accounted for by ERI as a “reverse merger,” the Company’s previous Eldorado Interest was converted into 3,978,573 shares of common stock, $0.00001 par value, thus being reduced to approximately an 8.6% ownership interest in the larger, merged entity. Under GAAP, the Company’s investment in Eldorado will no longer qualify for use of the equity method of accounting and, since its Eldorado Interest was converted to the form of marketable equity securities, it must be carried prospectively at fair market value based on current trading activity. Consistent with management’s intent, the investment will be classified as available-for-sale securities. Accordingly, since the fair market value at the effective date of the equity conversion of the shares received was less than the previous carrying value of the investment, the conversion resulted in a reduction in the asset carrying value offset by a charge to other comprehensive loss and members’ equity for an unrealized holding loss of approximately $8.2 million in the third quarter.