Quarterly report pursuant to sections 13 or 15(d)

MARKETABLE SECURITIES

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MARKETABLE SECURITIES
9 Months Ended
Sep. 30, 2013
Investments, Debt and Equity Securities [Abstract]  
MARKETABLE SECURITIES

NOTE 8 – MARKETABLE SECURITIES

 

Marketable securities at September 30, 2013 consisted of the following:

 

    Cost    

Gross

Unrealized

Gains/(losses) (Comprehensive Income)

   

Gross

Realized

Gains/(losses) (Statement of Operations)

 

 

 

Fair

Value

 
                         
        Publicly traded equity securities – available for sale   $ 12,500       (6,250)       (38,819   $ 6,250  
                                 

 

Available for sale securities are carried at fair value. Unrealized gains or losses on marketable securities - available for sale are recognized on a periodic basis as an element of comprehensive income based on changes in the fair value of the security. Once liquidated, realized gains or losses on the sale of marketable securities available for sale will be reflected in the Company’s net loss for the period in which the security are liquidated. At the end of each period, the Company evaluates the carrying value of the marketable securities for a decrease in value. The Company evaluates the company underlying these marketable securities to determine whether a decline in fair value below the amortized cost basis is other than temporary. If the decline in fair value is judged to be “other- than- temporary”, the cost basis of the individual security shall be written down to fair value as a new cost basis and the amount of the write-down is charged to earnings.

 

The Company has recorded unrealized loss of $6,250 as an element of comprehensive income during the nine months ended September 30, 2013.

 

In July 2013, the Company assigned its rights and interest in a mining lease agreement to an unrelated company. In consideration for the assignment of lease agreement, the unrelated company issued 1,293,967 of its shares (the “Unrelated Company Shares”) to the Company. At the time of issuance, the Company valued the Unrelated Company Shares and recorded the cost of investment at the fair market value (based on the sale of its shares in a private placement) of the shares at $0.13 per share or $168,216 and was recorded as a gain from sale of assets of discontinued operations (see Note 4) during the nine months ended September 30, 2013. In September 2013, the Company sold the Unrelated Company Shares and generated proceeds of $129,397. The decrease in fair value of $38,819 has been recorded as realized loss in the statement of operations for the nine months ended September 30, 2013.