| Assets and Liabilities Measured at Fair Value on Recurring Basis |
The following table presents our assets and liabilities at September 30, 2012, measured at fair value on a recurring basis: | | | | | | Fair Value Measurements at September 30, 2012 | | | | | | | | Quoted | | | Significant | | | | | | | | | | | Prices | | | Other | | | Significant | | | | | | | | in Active | | | Observable | | | Unobservable | | | | | | | | Markets | | | Inputs | | | Inputs | | | | | Total | | | (Level 1) | | | (Level 2) | | | (Level 3) | | | Assets: | | | | | | | | | | | | | | Certificates of deposit | | $ | 740,939 | | | $ | - | | | $ | 740,939 | | | $ | - | | | Gold put derivative | | | 10,571 | | | | - | | | | 10,571 | | | | - | | | Total Assets | | $ | 751,510 | | | $ | - | | | $ | 751,510 | | | $ | - | | | Liabilities: | | | | | | | | | | | | | | | | | | Gold call derivative | | $ | 227,282 | | | $ | - | | | $ | 227,282 | | | $ | - | | | Gold forward derivative | | | 715,536 | | | | - | | | | 715,536 | | | | - | | | Derivative liability - contingent dividend | | | 444,800 | | | | - | | | | - | | | | 444,800 | | | Total Liabilities | | $ | 1,387,618 | | | $ | - | | | $ | 942,818 | | | $ | 444,800 | | The following table presents our assets and liabilities at December 31, 2011, measured at fair value on a recurring basis: | | | | | | Fair Value Measurements at December 31, 2011 | | | | | | | | Quoted | | | Significant | | | | | | | | | | | Prices | | | Other | | | Significant | | | | | | | | in Active | | | Observable | | | Unobservable | | | | | | | | Markets | | | Inputs | | | Inputs | | | | | Total | | | (Level 1) | | | (Level 2) | | | (Level 3) | | | Assets: | | | | | | | | | | | | | | Certificates of deposit | | $ | 2,211,287 | | | $ | - | | | $ | 2,211,287 | | | $ | - | | | Total Assets | | $ | 2,211,287 | | | $ | - | | | $ | 2,211,287 | | | $ | - | | | Liabilities: | | | | | | | | | | | | | | | | | | Derivative liability - contingent dividend | | $ | 1,025,000 | | | $ | - | | | $ | - | | | $ | 1,025,000 | | | Total Liabilities | | $ | 1,025,000 | | | $ | - | | | $ | - | | | $ | 1,025,000 | | |
| Schedule of Changes in Level 3 Financial Instruments |
The following table indicates the changes in the level 3 financial instruments for the three months ended September 30, 2012 and 2011: | | | Contingent Dividend | | | | | Payment On | | | | | Convertible | | | | | Preferred Stock | | | Balance at July 1, 2012 | | $ | 540,300 | | | Change in fair value | | | (95,500 | ) | | Balance at September 30, 2012 | | $ | 444,800 | | | | | | | | | Balance at July 1, 2011 | | $ | 3,656,684 | | | Change in fair value | | | (1,661,584 | ) | | Balance at September 30, 2011 | | $ | 1,995,100 | | The following table indicates the changes in the level 3 financial instruments for the nine months ended September 30, 2012 and 2011: | | | Contingent Dividend | | | | | Payment On | | | | | Convertible | | | | | Preferred Stock | | | Balance at January 1, 2012 | | $ | 1,025,000 | | | Change in fair value | | | (580,200 | ) | | Balance at September 30, 2012 | | $ | 444,800 | | | | | | | | | Balance at January 1, 2011 | | $ | 4,873,192 | | | Change in fair value | | | (2,878,092 | ) | | Balance at September 30, 2011 | | $ | 1,995,100 | | |