Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

The five-year lease requires annual lease payments of $50,000 payable annually on each anniversary date from the date of the lease agreement. Pursuant to FASB ASC 840 – 20 Operating Leases, the lease meets the criteria to be treated as an operating lease. Future minimum lease payments are as follows:

November 6, 2013	$	50,000
November 6, 2014	$	50,000

Total	$	100,000

Lease payments

The initial payment is due within 30 days of the option exercise. Installment payments are as follows:

No. 1 - Initial payment	$	687,500
No. 2 - 1st anniversary of exercise	$	687,500
No. 3 - 2nd anniversary of exercise	$	687,500
No. 4 - 3rd anniversary of exercise	$	687,500

Future minimum lease payments

Future minimum lease payments, based on an amended agreement executed on May 22, 2012, are as follows:

January 15, 2013 - $15,000 annually	$	15,000
January 15, 2014 - $15,000 annually	$	15,000
January 15, 2015 - $15,000 annually	$	15,000
Each January 15th - $20,000 annually - Years 2016 – 2020	$	100,000
Each January 15th - $25,000 annually - Years 2021 – 2030	$	250,000
Each January 15th - $50,000 annually - Years 2031 – 2060	$	1,500,000
Each January 15th - $75,000 annually - Years 2061 – 2062	$	150,000

Total	$	2,045,000

Initial lease payment

The initial lease payment of $20,000 was paid on April 23, 2012.

April 23, 2013 - $25,000 annually - Year 2013	$	25,000
Each April 23rd - $25,000 annually - Years 2014– 2024	$	250,000
Each April 23rd - $25,000 annually - Years 2015 – 2112, as adjusted by US Producer Price Index	$	2,175,000
Total	$	2,450,000

Property, Plant and Equipment

At December 31, 2012, property, plant and equipment is comprised of the following:

Land	$	103,388
Leasehold Improvements		26,812
Equipment		5,399
Furniture and Fixtures		3,502
Computer Equipment		2,429
	$	141,530
Accumulated Depreciation		(6,240	)
	$	135,290

- Definition

Tabular disclosure of the useful life and salvage value of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

+ References+ Details

INTERNATIONAL SILVER INC 10-K/A