The Company recorded its investment at the historical cost of the assets contributed to the Joint Venture Company which was approximately $1.4 million. During the nine months ended March 31, 2016, Royal Gold contributed $3.4 million to the Joint Venture Company and earned an interest of 6.8%. Therefore, as of March 31, 2016, the Company holds a 93.2% economic interest in the Joint Venture Company.

The following table is a roll-forward of our investment in the Joint Venture Company from January 8, 2015 (Inception) to March 31, 2016:



	Inception to
	March 31, 2016
Investment in Peak Gold, LLC at formation	$	1,433,886
Loss from equity investment in Peak Gold, LLC	(1,433,886		)
Investment balance	$	—

The following table presents the condensed balance sheet for Peak Gold, LLC as of March 31, 2016:



	March 31, 2016
ASSETS
Cash and cash equivalents	$	1,784,888
Mineral properties	1,433,886
TOTAL ASSETS	$	3,218,774

LIABILITIES AND MEMBERS' EQUITY
Accounts payable and other liabilities	$	2,129,546
TOTAL LIABILITIES	$	2,129,546
MEMBERS' EQUITY	1,089,228
TOTAL LIABILITIES AND MEMBERS' EQUITY	$	3,218,774

The Joint Venture Company's results of operations for the three and nine months ended March 31, 2016 was a loss of $1.9 million and $6.4 million, respectively. The Peak Gold, LLC loss does not include any provisions related to income taxes as Peak Gold, LLC is treated as a partnership for income tax purposes. As of March 31, 2016, the Joint Venture Company's inception-to-date cumulative loss of $8.7 million, exceeds the historical cost of our investment in Peak Gold, LLC, of $1.4 million. Therefore the investment in Peak Gold, LLC has a balance of zero as of March 31, 2016. The Company is not obligated to make additional capital contributions to the Joint Venture Company and therefore only records losses up to the point of the initial investment which was $1.4 million. The portion of the cumulative loss that exceeds the Company's investment will be suspended and recognized against earnings, if any, from the investment in the Joint Venture Company in future periods.

The suspended losses for the period from inception to March 31, 2016 are $7.1 million. The following table presents the condensed results of operations for Peak Gold, LLC for the three and nine month periods ended March 31, 2016:



	Three Months Ended		Nine Months Ended		Inception to Date
	March 31, 2016		March 31, 2016		March 31, 2016
EXPENSES:
Exploration expense	$	1,667,889	$	5,612,119	$	7,519,550
General and administrative	274,454		829,257		1,225,108
Total expenses	1,942,343		6,441,376		8,744,658
NET LOSS	$	1,942,343	$	6,441,376	$	8,744,658