| Segment Reporting |
Segment Reporting As of June 30, 2015 the Company operates two segments, mining, and hospitality and lease. The mining segment consists of all activities and expenditures associated with mining. The hospitality and lease segment consists of hotel rooms, cottages, restaurant, bar and other services provided by Gold Hill Hotel. We evaluate the performance of our operating segments based on operating income (loss). All intercompany transactions have been eliminated, and inter-segment revenues are not significant. Financial information relating to our reportable operating segments and reconciliation to the consolidated totals is as follows:
| | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2015 | | 2014 | | 2015 | | 2014 | Revenue | | | | | | | | Mining | $ | 5,442,027 |
| | $ | 5,978,983 |
| | $ | 11,369,201 |
| | $ | 11,585,047 |
| Hospitality and lease | 46,264 |
| | 236,932 |
| | 156,507 |
| | 394,329 |
| Total revenue | 5,488,291 |
| | 6,215,915 |
| | 11,525,708 |
| | 11,979,376 |
| | | | | | | | | Cost and Expenses | | | | | | | | Mining | (6,606,019 | ) | | (9,011,838 | ) | | (14,117,248 | ) | | (17,892,665 | ) | Hospitality and lease | (61,267 | ) | | (304,846 | ) | | (261,294 | ) | | (591,145 | ) | Total cost and expenses | (6,667,286 | ) | | (9,316,684 | ) | | (14,378,542 | ) | | (18,483,810 | ) | | | | | | | | | Operating Loss | | | | | | | | Mining | (1,163,992 | ) | | (3,032,855 | ) | | (2,748,047 | ) | | (6,307,618 | ) | Hospitality and lease | (15,003 | ) | | (67,914 | ) | | (104,787 | ) | | (196,816 | ) | Total loss from operations | (1,178,995 | ) | | (3,100,769 | ) | | (2,852,834 | ) | | (6,504,434 | ) | | | | | | | | | Other income (expense), net | (330,451 | ) | | (287,817 | ) | | 2,632,502 |
| | (709,132 | ) | Net loss | $ | (1,509,446 | ) | | $ | (3,388,586 | ) | | $ | (220,332 | ) | | $ | (7,213,566 | ) | | | | | | | | | Depreciation, Depletion and Amortization | | | | | | | | Mining | $ | 1,890,467 |
| | $ | 1,629,530 |
| | $ | 3,780,575 |
| | $ | 3,234,179 |
| Hospitality and lease | 32,120 |
| | 29,293 |
| | 55,517 |
| | 64,954 |
| Total depreciation, amortization and depletion | $ | 1,922,587 |
| | $ | 1,658,823 |
| | $ | 3,836,092 |
| | $ | 3,299,133 |
| | | | | | | | | Capital Expenditures | | | | | | | | Mining | $ | 143,272 |
| | $ | 231,285 |
| | $ | 3,651,623 |
| | $ | 2,091,127 |
| Hospitality and lease | — |
| | — |
| | 14,663 |
| | 83,477 |
| Total capital expenditures | $ | 143,272 |
| | $ | 231,285 |
| | $ | 3,666,286 |
| | $ | 2,174,604 |
|
| | | | | | | | | | As of June 30, | | As of December 31, | | 2015 | | 2014 | Assets | | | | Mining | $ | 47,494,875 |
| | $ | 45,029,258 |
| Hospitality and lease | 1,367,225 |
| | 1,426,614 |
| Total assets | $ | 48,862,100 |
| | $ | 46,455,872 |
|
On March 20, 2015, the Company entered into an agreement to lease the Gold Hill Hotel to independent operators. The lease is effective April 1, 2015. The Company retains ownership to the land and Gold Hill Hotel properties while leasing the facilities to independent operators. The initial term of the lease agreement begins on April 1, 2015, and ends in March 2020. The tenant may renew the lease for two extended terms of five years each. Lease payments are due in monthly installments. |