60 / 111
59
Changes in our asset retirement obligations are summarized in the following table:
Year ended December 31,
2015
2014
Balance, beginning of period
$ 366
$ 415
Additions
16
19
Releases
(25)
(66)
Revisions to cost estimates
-
(2)
Balance, end of period
$ 357
$ 366
Derivative instruments
From time to time, the Company may use derivative financial instruments to manage its foreign currency
risks. All derivative financial instruments are classified as current liabilities and are accounted for at trade date.
Embedded derivatives are separated from the host contract and accounted for separately if the economic
characteristics and risks of the host contract and the embedded derivative are not closely related. The Company re-
measures all derivative financial instruments as of the date of the balance sheet based on fair values derived from
option pricing models. Gains or losses arising from changes in fair value of derivatives are recognized in the
Consolidated Statements of Loss, except for derivatives that are highly effective and qualify for cash flow or net
investment hedge accounting. The Company does not have any derivatives that are highly effective and qualify for
cash flow or net investment hedging. There were no derivatives outstanding as of December 31, 2015.
Common shares
Common shares issued for non-monetary consideration are recorded at fair market value based upon the
trading price of our shares on the share issuance date. Common shares issued for monetary consideration are
recorded at the amount received, less issuance costs.
Foreign currency translation
Our functional currency is the U.S. dollar. All of our foreign subsidiaries are direct and integral
components of the Company and are dependent upon the economic environment of our functional currency.
Therefore, the functional currency of our foreign entities is considered to be the U.S. dollar in accordance with ASC
Topic 830, “Foreign Currency Matters,” and accordingly, translation gains and losses are reported in the loss for that
period. Assets and liabilities of these foreign operations are translated using period-end exchange rates and revenues
and expenses are translated using average exchange rates during each period.
Depreciation
Depreciation is based on the straight-line method. We depreciate computer equipment, furniture and
fixtures and geological equipment over a period of three years. We depreciate vehicles over a period of five years.
Stock-based compensation
The fair value of share-based compensation awards issued to employees and directors of the Company is
measured at the date of grant and amortized over the requisite service period, which is generally the vesting period.
The Company uses the Black-Scholes option valuation model to calculate the fair value of awards granted.
The fair value of share-based compensation awards issued to non-employees is determined on the
measurement date of such awards. The measurement date is typically the vesting date. Upon vesting, the fair value
of share-based compensation awards issued to non-employees is calculated using the Black-Scholes option valuation
model, and the amount is recorded as an expense with a corresponding increase in additional paid-in-capital.