[X] | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for quarter period ended |
[ ] | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________. |
Colorado | 84-1116515 |
(State of incorporation) | (IRS Employer Identification No.) |
C.
|
Cash and Marketable Securities
|
June 30, 2012
|
December 31, 2011
|
|||||||
Cash and cash equivalents
|
$ | 39,132 | $ | 118,835 | ||||
Marketable securities*
|
363,756 | 458,825 | ||||||
Prepaid expenses
|
1,100 | 1,100 | ||||||
Accounts receivable
|
725 | 6,744 | ||||||
Current Assets (Total)
|
404,713 | 585,504 | ||||||
Current Liabilities
|
(7,405 | ) | (129,978 | ) | ||||
Working Capital
|
$ | 397,308 | $ | 455,526 |
|
* We held 1,567,500 YNG shares (valued at $0.242 per share) at December 31, 2011, and 1,112,405 YNG shares (valued at $0.327 per share) at June 30, 2012.
|
|
On June 5, 2012, we issued 407,950 shares of our restricted common stock to Tracy A. Madsen our Chief Financial Officer as bonus valued at $14,686. The issuance was completed at a price of $0.036 per share which of the previous 10 day average market closing price for our shares. We relied on the exemptions from registration provided in Sections 3(a)(9), 4(2) and 4(5) of the Securities Act for this issuance because the issuance was an exchange with an existing security holder, did not involve a public offering and was made without general solicitation or advertising. The investor previously represented to us that he is an “accredited investor”, and that he acquired the restricted common stock for investment purposes only and not with a view to, or for resale in connection with, any distribution thereof.
|
GOLDEN EAGLE INTERNATIONAL, INC. | |
(Golden Eagle) | |
July 31, 2012 | /s/ Tracy A. Madsen |
Tracy A. Madsen | |
President, Principal Executive Officer and Principal Accounting Officer
|
|
Golden Eagle International, Inc.
|
||||||||
Consolidated Balance Sheets
|
|
|||||||
(Unaudited)
|
||||||||
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
|
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash & cash equivalents
|
$ | 39,132 | $ | 118,835 | ||||
Marketable securities
|
363,756 | 458,825 | ||||||
Prepaid expenses
|
1,100 | 1,100 | ||||||
Accounts receivable
|
725 | 6,744 | ||||||
Total current assets
|
404,713 | 585,504 | ||||||
PROPERTY AND EQUIPMENT
|
||||||||
Plant and mill - idle
|
3,980,000 | 3,980,000 | ||||||
Office equipment, net
|
- | 51 | ||||||
Total property and equipment
|
3,980,000 | 3,980,051 | ||||||
Total Assets
|
$ | 4,384,713 | $ | 4,565,555 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable and accrued expenses
|
$ | 2,341 | $ | 43,244 | ||||
Notes payable
|
- | 15,000 | ||||||
Debentures (net)
|
- | 50,000 | ||||||
Accrued interest payable
|
5,063 | 21,734 | ||||||
Total current liabilities
|
7,405 | 129,978 | ||||||
Total Liabilities
|
7,405 | 129,978 | ||||||
Commitments and contingencies
|
- | - | ||||||
STOCKHOLDERS' EQUITY
|
||||||||
Preferred stock, par value $.01 per share; 10,000,000 shares authorized,
|
||||||||
80,000 and 80,000 issued and outstanding
|
800 | 800 | ||||||
Common stock, par value $.0001 per share; 2,000,000,000 authorized shares;
|
||||||||
23,366,328 and 14,625,044 issued and outstanding shares, respectively
|
2,336 | 1,462 | ||||||
Additional paid-in capital
|
64,596,082 | 64,337,063 | ||||||
Accumulated (deficit)
|
(59,944,921 | ) | (59,459,693 | ) | ||||
Accumulated other comprehensive income (loss)
|
(276,989 | ) | (444,055 | ) | ||||
Total stockholders' equity
|
4,377,308 | 4,435,577 | ||||||
Total Liabilities and Stockholder's Equity
|
$ | 4,384,713 | $ | 4,565,555 |
Golden Eagle International, Inc.
|
|||||||||||||||||
Consolidated Statements of Operations and Other Comprehensive Income (Unaudited)
|
|||||||||||||||||
For the Three and Six Months Ended
|
|
|
|||||||||||||||
Three months ended |
Six months ended
|
||||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||||
2012
|
2011
|
2012
|
2011
|
||||||||||||||
REVENUES
|
$ | - | $ | - | $ | - | $ | - | |||||||||
OPERATING EXPENSES
|
|||||||||||||||||
Exploration and development
|
- | 5,906 | - | 9,544 | |||||||||||||
General and administration
|
152,824 | 209,679 | 325,792 | 439,253 | |||||||||||||
Depreciation and depletion
|
- | 51 | 51 | 102 | |||||||||||||
Total operating expenses
|
152,824 | 215,636 | 325,843 | 448,899 | |||||||||||||
OPERATING (LOSS)
|
(152,824 | ) | (215,636 | ) | (325,843 | ) | (448,899 | ) | |||||||||
OTHER INCOME (EXPENSE)
|
|||||||||||||||||
Interest expense
|
(869 | ) | (10,139 | ) | (2,165 | ) | (48,253 | ) | |||||||||
Accretion of note discount
|
- | - | - | (6,458 | ) | ||||||||||||
Loss on debt extinguishment
|
(65,207 | ) | - | (65,207 | ) | - | |||||||||||
Gain (Loss) on sale of securities
|
(36,933 | ) | (12,016 | ) | (92,012 | ) | (12,016 | ) | |||||||||
Total other (expense)
|
(103,009 | ) | (22,155 | ) | (159,384 | ) | (66,727 | ) | |||||||||
Loss before income taxes
|
(255,833 | ) | (237,791 | ) | (485,228 | ) | (515,626 | ) | |||||||||
Income taxes
|
- | - | - | - | |||||||||||||
Net Loss
|
(255,833 | ) | (237,791 | ) | (485,228 | ) | (515,626 | ) | |||||||||
Basic and diluted gain (loss) per share on continuing operations
|
$ | (0.02 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.05 | ) | |||||
Weighted average shares outstanding - basic and diluted
|
17,026,496 | 9,723,979 | 15,185,986 | 10,456,464 | |||||||||||||
OTHER COMPREHENSIVE INCOME
|
|||||||||||||||||
Unrealized gain (loss) on securities
|
35,366 | (479,560 | ) | 167,066 | (857,560 | ) | |||||||||||
NET COMPREHENSIVE INCOME (LOSS)
|
$ | (220,467 | ) | $ | (717,351 | ) | $ | (318,162 | ) | $ | (1,373,186 | ) |
Golden Eagle International, Inc.
|
||||||||
Consolidated Statements of Cash Flows (Unaudited)
|
||||||||
For the Six Months Ended
|
||||||||
June 30,
|
June 30,
|
|||||||
2012
|
2011
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income (loss)
|
$ | (485,228 | ) | $ | (515,626 | ) | ||
Adjustments to reconcile net income (loss)
|
||||||||
to net cash (used) by operating activities:
|
||||||||
Officer compensation contributed
|
30,000 | 30,000 | ||||||
Stock issued for services
|
25,000 | 4,200 | ||||||
Loss on debt extinguishment
|
65,207 | - | ||||||
Depreciation
|
51 | 102 | ||||||
Accretion of note discount
|
- | 6,458 | ||||||
Loss on sale of marketable securities
|
92,012 | 12,016 | ||||||
Changes in operating assets and liabilities
|
||||||||
Decrease (increase) in accounts receivable
|
6,019 | (9,514 | ) | |||||
Increase (decrease) in deferred wages
|
- | (51,782 | ) | |||||
Increase (decrease) in accounts payable
|
(11,873 | ) | (11,189 | ) | ||||
Increase (decrease) in accrued interest
|
2,166 | (434,523 | ) | |||||
Net cash flows (used by) operating activities
|
(276,646 | ) | (969,858 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Proceeds from sale of marketable securities
|
130,780 | 68,685 | ||||||
Net cash flows provided by investing activities
|
130,780 | 68,685 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Stock issued for cash
|
66,163 | |||||||
Repayments of notes payable
|
- | (386,410 | ) | |||||
Net cash flows (used in) provided by financing activities
|
66,163 | (386,410 | ) | |||||
NET CHANGE IN CASH
|
(79,703 | ) | (1,287,583 | ) | ||||
CASH - BEGINNING OF PERIOD
|
118,835 | 1,670,949 | ||||||
CASH - END OF PERIOD
|
$ | 39,132 | $ | 383,366 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
||||||||
Preferred and common stock issued for debt
|
83,837 | 80,368 | ||||||
Cash paid for
|
||||||||
Interest
|
$ | - | $ | 464,733 | ||||
Income taxes
|
- | - |
Date: July 31, 2012
|
/s/ Tracy A. Madsen
Tracy A. Madsen
Principal Executive Officer and Principal Financial Officer
|
Recent Accounting Pronouncements
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Notes to Financial Statements | |
Recent Accounting Pronouncements |
Note D Recent Accounting Pronouncements
There are no recently issued accounting pronouncements that are expected to have a material impact on our financial position, results of operations, or cash flows. |
Notes Payable
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Notes to Financial Statements | |
Notes Payable |
Note C Notes Payable
On May 1, 2012 we were notified by Gulf Coast Capital, LLC that they had purchased and caused to be assigned a $50,000 convertible debenture from The John Saunders Trust that originally purchased the same from us on July 7, 2008, plus $15,572 in interest. Additionally, we were notified that Gulf Coast had purchased and caused to be assigned a note payable to John Saunders in the amount $15,000 plus accrued interest in the amount of $3,265. On May 21, 2012 we received a demand letter requiring full payment by May 31, 2012 of the $50,000 debenture and the $15,000 note, plus accrued interest, now owned by Gulf Coast.
By means of a subscription agreement between Gulf Coast and us dated May 31, 2012, we have agreed to retire the last remaining debt of the company by exchanging this debt for 4,657,626 shares of our restricted common stock at a negotiated a price of $.018 per share, or 50% of the average closing price for the last 10-day period. Following the conversion of this debt into our restricted common stock we have no other debt outstanding with the exception of $5,063 in accrued interest.
Since we converted the note at an approximate 50% discount to the market price on the date of conversion, we recognized a loss on debt extinguishment totaling $65,207 which represents the difference between the reacquisition price as determined by the estimated fair value of the common stock and the net carrying amount of the notes and accrued interest.
During the three and six months ended June 30, 2012 we recognized $869 and $2,165 respectively of interest expense. |
Basis of Presentation
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Notes to Financial Statements | |
Basis of Presentation |
Note A Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of the Company are presented in accordance with the requirements for Form 10-Q and Article 8-03 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) have been condensed or omitted pursuant to such SEC rules and regulations. The accompanying financial statements are unaudited. However, in our opinion, the accompanying financial statements reflect all adjustments, consisting of only normal recurring adjustments, necessary for fair presentation. These financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2011.
The preparation of financial statements in accordance with accounting principles generally accepted in the United States (US GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying footnotes. Our actual results could differ materially from these estimates. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Report and any documents incorporated herein by reference, as well as the Annual Report on Form 10-K for the year ended December 31, 2011. |
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Organization and Nature of Business
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Notes to Financial Statements | |
Organization and Nature of Business |
Note B - Organization and Nature of Business
The Gold Bar Mill (Mill), our only remaining significant non-current asset, is currently idle and has been since we acquired it in 2004. We continue to monitor the Mill for impairment on a periodic basis or whenever circumstances arise that indicate the carrying amount of the Mill may not be recoverable. An impairment loss is recognized when the carrying value of the Mill exceeds the estimated undiscounted future cash flows. As of and through June 30, 2012 we have not recognized any impairment on the Mill. |
Consolidated Balance Sheets (Parenthetical) (USD $)
|
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, Authorized | 10,000,000 | 10,000,000 |
Preferred stock, Issued | 80,000 | 80,000 |
Preferred stock, outstanding | 80,000 | 80,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, Authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, Issued | 23,366,328 | 14,625,044 |
Common stock, outstanding | 23,366,328 | 14,625,044 |
Document and Entity Information
|
6 Months Ended | |
---|---|---|
Jun. 30, 2012
|
Jul. 18, 2012
|
|
Document And Entity Information | ||
Entity Registrant Name | GOLDEN EAGLE INTERNATIONAL INC | |
Entity Central Index Key | 0000869531 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2012 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 23,366,328 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2012 |
Consolidated Statements of Operations (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Consolidated Statements Of Operations | ||||
REVENUES | $ 0 | $ 0 | $ 0 | $ 0 |
OPERATING EXPENSES | ||||
Exploration and development | 0 | 5,906 | 0 | 9,544 |
General and administration | 152,824 | 209,679 | 325,792 | 439,253 |
Depreciation and depletion | 0 | 51 | 51 | 102 |
Total operating expenses | 152,824 | 215,636 | 325,843 | 448,899 |
OPERATING (LOSS) | (152,824) | (215,636) | (325,843) | (448,899) |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (869) | (10,139) | (2,165) | (48,253) |
Accretion of note discount | 0 | 0 | 0 | (6,458) |
Loss on debt extinguishment | (65,207) | 0 | (65,207) | 0 |
Gain (loss) on sale of securities | (36,933) | (12,016) | (92,012) | (12,016) |
Total other (expense) | (103,009) | (22,155) | (159,384) | (66,727) |
Loss before income taxes | (255,833) | (237,791) | (485,228) | (515,626) |
Income taxes | 0 | 0 | 0 | 0 |
Net Loss | (255,833) | (237,791) | (485,228) | (515,626) |
Basic and diluted gain (loss) per share on continuing operations | $ (0.02) | $ (0.02) | $ (0.03) | $ (0.05) |
Weighted average shares outstanding - basic and diluted | 17,026,496 | 9,723,979 | 15,185,986 | 10,456,464 |
OTHER COMPREHENSIVE INCOME | ||||
Unrealized gain (loss) on securities | 35,366 | (479,560) | 167,066 | (857,560) |
NET COMPREHENSIVE INCOME (LOSS) | $ (220,467) | $ (717,351) | $ (318,162) | $ (1,373,186) |
Notes Payable (Details Narrative) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Notes Payable Details Narrative | ||||
Interest expense | $ 869 | $ 10,139 | $ 2,165 | $ 48,253 |
Subsequent Events
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Notes to Financial Statements | |
Subsequent Events |
Note F Subsequent Events
On July 27, 2012, our Board of Directors terminated Terry C. Turner, without cause, and appointed Tracy A. Madsen as the Companys President and Chief Executive Officer. Mr. Turner will remain as Chairman of the Board of Directors. Mr. Madsen has served as the Companys Chief Financial Officer, Secretary and Treasurer since February 13, 2003 and as the Vice President US Administration since November 12, 2003. Mr. Madsen will remain in those positions as well as act as the Companys President and CEO.
On July 27, 2012, in accordance with the termination of Terry C. Turner as the Companys President and Chief Executive Officer, the Company executed a Promissory Note and Security Agreement in the amount of $350,000 in favor of Mr. Turner. Mr. Turner agreed to accept the Promissory Note in lieu of payment of severance due to him within 60 days after his termination. The Promissory Note matures on July 27, 2013 and is subject to acceleration upon the occurrence of certain events listed therein. The Promissory Note is secured by the Companys Gold Bar Mill property located in Eureka, Nevada.
On July 27, 2012, upon appointment of Tracy A. Madsen, the Board and Mr. Madsen entered into an amendment to Mr. Madsens Executive Employment Agreement, dated October 7, 2009, revising the positions held by Mr. Madsen, increasing his salary and extending the term.
On July 27, 2012, our Board of Directors accepted the resignations of Harlan M. DeLozier II and Alvero Riveros Tejada as directors of the Company. In their resignations, neither Mr. DeLozier or Riveros expressed any disagreement with management or disclosure issues.
On July 27, 2012, our Board of Directors appointed Mr. Madsen and Mark A. Bogani as directors of the Company. Mr. Bogani is the Manager of Gulf Coast Capital, LLC. Gulf Coast has recently increased its shareholdings of the Company to 42.75% of the outstanding stock of the Company. |
Marketable Securities (Details Narrative) (USD $)
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Marketable Securities Details Narrative | |
Restricted Common shares received from settlement, Shares | 2,000,000 |
Restricted Common shares received from settlement, Value | $ 1,152,000 |
Restricted common shares received as settlement's sale price quoted on the Toronto Stock Exchange | $ 0.576 |
Restricted Common shares received from settlement sold, Shares | 455,095 |
Proceeds from restricted Common shares received from settlement sold | $ 130,780 |
Restricted Common shares received from settlement available for sale, Shares | 1,112,405 |
Restricted Common shares received from settlement available for sale market price | $ 0.327 |
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Marketable Securities
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Notes to Financial Statements | |
Marketable Securities |
Note E Marketable Securities
As part of our settlement with YNG, we received 2,000,000 restricted common shares of YNG with an initial fair value of $1,152,000 (utilizing the sale price quoted on the Toronto Stock Exchange of $.576 a Level 1 input). We have classified the shares as available for sale.
Through the six months ended June 30, 2012 we sold a total of 455,095 YNG shares for total proceeds of $130,780 respectively. Additionally, we distributed 43,400 shares of YNG stock during the three months ended June 30, 2012 to Blane Wilson, a former officer of the Company, for final payment of commissions payable to him related to our Jerritt Canyon operations. Additionally, we transferred 37,100 shares of YNG stock to Tracy A. Madsen, our Chief Financial Officer as part of his annual bonus. These shares were valued at $10,314.
As of June 30, 2012, we had 1,112,405 shares available for sale. Subsequent adjustments to the fair value of the shares are reflected in the carrying amount as of the balance sheet date, and fluctuations in the fair value affect other comprehensive income. As of June 30, 2012, the market price for YNG shares was $.327. |