| Segment Reporting |
14. Segment Reporting Our management organizes the Company into two operating segments, mining and hospitality. Our mining segment consists of exploration and developmental drilling, mine planning, permitting, mineral claims, plus all other activities and expenditures associated with bringing the mine into production. Our hospitality segment consists of hotel rooms, cottages, restaurant, bar and other services provided by Gold Hill Hotel Inc. We evaluate the performance of our operating segments based on operating income (loss). All intercompany transactions have been eliminated, and intersegment revenues are not significant. Financial information relating to our reportable operating segments and reconciliation to the consolidated totals is as follows: | | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | | | | 2012 | | | 2011 | | | 2012 | | | 2011 | | | Revenue | | | | | | | | | | | | | | Revenue - Hospitality | | $ | 182,792 | | | $ | 179,071 | | | $ | 477,037 | | | $ | 299,246 | | | | | | | | | | | | | | | | | | | | | Costs and Expenses | | | | | | | | | | | | | | | | | | Mining | | | (7,788,213 | ) | | | (3,592,720 | ) | | | (24,453,725 | ) | | | (12,064,252 | ) | | Hospitality | | | (200,457 | ) | | | (219,159 | ) | | | (543,227 | ) | | | (319,154 | ) | | Total costs and expenses | | | (7,988,670 | ) | | | (3,811,879 | ) | | | (24,996,952 | ) | | | (12,383,406 | ) | | | | | | | | | | | | | | | | | | | | Operating Income (Loss) | | | | | | | | | | | | | | | | | | Mining | | | (7,788,213 | ) | | | (3,573,491 | ) | | | (24,453,725 | ) | | | (12,045,023 | ) | | Hospitality | | | (17,665 | ) | | | (59,317 | ) | | | (66,190 | ) | | | (39,137 | ) | | Total loss from operations | | | (7,805,878 | ) | | | (3,632,808 | ) | | | (24,519,915 | ) | | | (12,084,160 | ) | | | | | | | | | | | | | | | | | | | | Other income (expense), net | | | (1,188,301 | ) | | | 1,658,394 | | | | (787,207 | ) | | | 2,904,577 | | | Income tax benefit | | | - | | | | - | | | | - | | | | 76,081 | | | Net loss | | $ | (8,994,179 | ) | | $ | (1,974,414 | ) | | $ | (25,307,122 | ) | | $ | (9,103,502 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Capital Expenditures | | | | | | | | | | | | | | | | | | Mining | | $ | 2,098,117 | | | $ | 1,003,418 | | | $ | 15,014,131 | | | $ | 1,167,439 | | | Hospitality | | | 200,000 | | | | 1,175 | | | | 301,000 | | | | 1,087,622 | | | Total capital expenditures | | $ | 2,298,117 | | | $ | 1,004,593 | | | $ | 15,315,131 | | | $ | 2,255,061 | | | | | | | | | | | | | | As of September 30, | | | | As of December 31, | | | | | | | | | | | | | | 2012 | | | | 2011 | | | Assets | | | | | | | | | | | | | | | | | | Mining | | | | | | | | | | $ | 40,827,908 | | | $ | 25,824,143 | | | Hospitality | | | | | | | | | | | 1,324,801 | | | | 1,150,009 | | | | | | | | | | | | | $ | 42,152,709 | | | $ | 26,974,152 | | |