0000074925-22-000004.txt : 20220825 0000074925-22-000004.hdr.sgml : 20220825 20220825151928 ACCESSION NUMBER: 0000074925-22-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20220630 FILED AS OF DATE: 20220825 DATE AS OF CHANGE: 20220825 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ORIGINAL SIXTEEN TO ONE MINE INC /CA/ CENTRAL INDEX KEY: 0000074925 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 940735390 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10156 FILM NUMBER: 221197008 BUSINESS ADDRESS: STREET 1: P O BOX 1621 CITY: ALLEGHENY STATE: CA ZIP: 95910 BUSINESS PHONE: 9162873223 MAIL ADDRESS: STREET 1: PO BOX 1621 STREET 2: PO BOX 1621 CITY: ALLEGHANY STATE: CA ZIP: 95910 10-Q 1 2Q202210Q.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended June 30, 2022 Commission File No. 001-10156 ORIGINAL SIXTEEN TO ONE MINE, INC. (Exact name of registrant as specified in its charter) CALIFORNIA 94-0735390 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporated or organization) Post Office Box 909, Alleghany, CA 95910 (Address of principal executive offices) (530) 287-3223 (Registrant's telephone number) (including area code) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days. N/A Voluntary Filer Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] (do not check if smaller reporting company) Smaller reporting company [X] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-d of the Exchange Act). Yes [ ] N0 [X] As of June 30, 2022, 14,870,631 shares of Common Stock, par value $.033 per share, were issued and outstanding. Item 1. PART I Original Sixteen to One Mine, Inc. Condensed Balance Sheet June 30, 2022 & December 31, 2021 ASSETS 2022 2021 Current Assets Cash $ 1,113 $ 4,802 Accounts receivable 131,561 127,564 Inventory 130,438 130,438 Capitalized Expenses 899,195 604,044 ------- ------- Total current assets 1,162,307 866,848 ------- ------- Mining Property Real estate and property rights net of depletion of $524,145 230,401 230,401 Mineral property 47,976 47,976 ------- ------- Total Mining Property 278,377 278,377 ------- ------- Fixed Assets at Cost Equipment 605,646 597,602 Buildings 209,487 209,487 Vehicles 168,925 168,925 --------- --------- Total fixed assets at cost 984,058 976,014 --------- --------- Less accumulated depreciation (964,838) (963,606) ----------- ----------- Net fixed assets 19,220 12,408 ----------- ----------- Other Assets Bonds and misc. deposits 4,091 4,091 --------- ------- Total Assets $ 1,463,995 $ 1,161,724 ========== ========== Original sixteen to One Mine, Inc. Condensed Balance Sheet Continued LIABILITIES & STOCKHOLDERS' EQUITY 2022 2021 Current Liabilities Accounts payable & accrued expenses $ 561,014 1,417,728 Due to related party 265,681 515,993 Notes payable Short-term 2,080,578 543,558 -------- ------- Total Current Liabilities 2,907,273 2,477,279 -------- ------- Long Term Liabilities Notes payable due after one year 97,236 97,236 -------- ------- Total Liabilities 3,004,509 2,574,515 ---------- --------- Stockholders' Equity Capital stock, par value $.033: 30,000,000 shares authorized: 14,870,631 issued and outstanding as of Dec. 31, 2021 and 14,870,631 as of June 30, 2022 490,731 490,731 Additional paid-in capital 2,446,044 2,446,044 (Accumulated deficit) Retained earnings (4,477,289) (4,349,566) ------------ ----------- Total Stockholders' Equity (1,540,514) (1,412,791) ------------ ----------- Total Liabilities and Stockholders' Equity $ 1,463,995 $ 1,161,724 =========== ============ See Accompanying Notes ? Original Sixteen to One Mine, Inc. Statement of Operations Three Months Ending June 30, Six Months Ending June 30, 2022 2021 2022 2021 ------ ------ ------ ------ Revenues: Gold Sales - 2,815 - 8,278 Other Revenue 2,010 53,602 3,997 53,602 --------- --------- --------- -------- Total revenues $ 2,010 $ 56,417 $ 3,997 61,880 --------- --------- ---------- -------- Operating expenses: Salaries and wages 15,000 15,000 30,000 30,000 Contract Labor 38,534 8,911 46,552 14,448 Utilities 4,648 6,725 9,896 13,901 Taxes 2,787 4,841 5,968 5,252 Supplies 271 (373) (115) 789 Insurance 2,383 2,871 5,436 5,844 Small equip.& repairs 1,724 1,407 3,667 3,717 Drayage 4,723 3,279 12,413 4,849 Corporate expenses 1,067 2,250 2,112 2,483 Legal & Compliance 6,731 6,260 12,081 6,440 Mine Maintenance 161 (506) 304 510 Depreciation & amort. 616 596 1,231 1,192 Other expenses 444 9,015 1,081 11,736 ------- ------- --------- ---------- Total operating expenses 79,089 60,276 130,626 101,161 -------- -------- --------- ---------- Profit (Loss) from Operations (77,079) (3,859) (126,629) (39,281) Other Income: 1,200 1,200 2,500 2,400 Other Expense: - - - - --------- -------- --------- ---------- Total Other income 1,200 1,200 2,500 2,400 -------- -------- --------- ---------- Profit (Loss) before taxes (75,879) (2,659) (124,129) (36,881) ---------- --------- --------- --------- Income tax benefit (expense) (3,594) (1,600) (3,594) (1,600) ---------- --------- --------- --------- Net profit (loss) $ (79,473) $ (4,259) (127,723) (38,481) =========== ========== ========= ========= Basic and diluted (loss) earnings per share $ (.005) $ (.0003) $ (.008) $ (.003) ========== ========== ========= =========== Shares used in the calculation of net (loss) income per share 14,870,631 14,870,631 14,870,631 14,870,631 ============ =========== ========== ========== See Accompanying Notes Original Sixteen to One Mine, Inc. Statement of Cash Flows Six Months Ended June 30, 2022 and June 30, 2021 Six Months Ended June 30, 2022 2021 -------------- ------------ Net profit (loss) $ (127,723) $ (38,481) Cash Flows From Operating Activities: Depreciation and amortization 1,231 1,192 (Increase)Decrease in accounts receivable (3,997) (55,839) Decrease(Increase) in inventory - 70,028 (Increase)Decrease in other current assets (295,151) (166,023) (Decrease) increase in accounts payable and accrued expenses (856,713) (47,041) (Decrease)increase in related party loans (250,311) 149,423 Decrease) increase in short term notes 1,537,019 (152,594) ------------ ------- Net cash (used) provided by operating activities 4,355 (239,335) ------------ --------- Cash Flows From Investing Activities: Fixed Asset Purchases (8,044) - Proceed from sale real estate - - Other assets bonds misc. deposits - - ----------- ---------- Net cash (used) provided by investing activities (8,044) - ----------- ----------- Cash Flows From Financing Activities Increase (decrease) notes payable - - Proceeds from sale of common stock - 15,840 Additional paid-in capital - 224,160 ----------- ----------- Net cash provided (used) by financing activities - 240,000 ------------ ------------ (Decrease) increase in cash (3,689) 665 Cash, beginning of period 4,802 21,137 ------------ ---------- Cash, end of period $ 1,113 $ 21,802 ============ ============ Supplemental schedule of other cash flows: Cash paid during the period for: Interest expense $ - $ - ============ =========== Income taxes $ - $ - ============ =========== NOTES TO THE FINANCIAL STATEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business: Original Sixteen to One Mine, Inc. (the Company) incorporated in 1911, actively operates the Sixteen to One mine in Alleghany, California. Fixed Assets: Fixed assets are stated at historical cost. Depreciation is calculated using straight-line and accelerated methods over the following useful lives: Vehicles 3 to 5 years, Equipment 5 to 7 years, Buildings 18 to 31.5 years. Depletion Policy: Because of the geological formation in the Alleghany Mining District, estimates of proven reserves cannot be calculated, and accordingly, a cost per unit depletion factor cannot be determined. No depletion deduction is recorded. Revenue Recognition: New production of gold is recorded as an asset at the current spot price (.999 fine purity). For income tax purposes revenues are not recognized until the gold is sold. GENERAL NOTES 1. In accordance with directive from the Securities and Exchange Commission (SEC)and Industry Guide 7, reference for all intent and purposes to the Company's employees as miners, its properties as mines or its operation as mining does not diminish the fact that the Company has no proven reserves for the period. The "exploration state" as defined in Guide 7(a)(4)(iii) may apply. 2. Financial statements contain adjustments necessary to present fairly the Company's financial position at June 30, 2022 and December 31, 2021. The results of operations and cash flows for the second quarter of 2022 and 2021 are reported. Financial statements are prepared in accordance with Generally Accepted Accounting Principles for interim financial information and with instructions to Form 10-Q and Item 310(b) of Regulation S-B. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION The Sixteen to One mine requires an unfamiliar operation, which is recognized by its owners, miners, geologists, engineers, and some public agencies. The Company celebrated its 100th year anniversary on Oct. 9, 2011. becoming the oldest gold mining corporation in the United States. Production is approximately 1,500,000 ounces of gold. Thirty miles of horizontal workings and millions of cubic feet of vertical excavations called stopes exist. Once an area is targeted, travel ways and escape routes are brought into safety compliance. Production miners set up a heading and begin a drill-blast-muck sequence into the quartz. Gold is hosted in the quartz vein. Metal detectors are regularly used underground as a tool for guiding the direction of the work and to classify the ore underground, thereby reducing costs. Production is termed as "feast or famine". When operations detect the presence of gold, the Company evaluates the environment and changes from exploration to development into production. FINANCIAL REPORT NOTES: No value is recorded on the balance sheet for standing timber. No value is recorded on the balance sheet for water- rights. Reduced value is recorded on the balance sheet for buildings, equipment and land. No value is recorded on the balance sheet for goodwill. For the six-month period ended June 30,2022, compared to December 31, 2021, there were no significant changes to the balance sheet. For the six-month period ended June 30, 2022, compared to the same period in 2021, total operating expenses increased by $29,465 (23%) due to expanding pumping programs. For the six-month period ended June 30, 2022, compared to the same period in 2021, the company showed a loss of $127,723 compared to a loss of $38,481. The $89,242 (70%) difference is due to expanded pumping programs. Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The Company may make written and oral forward-looking statements about matters that involve risks and uncertainties that may cause actual results to differ from projected results. Important factors that may cause actual results to differ include, among others: - Fluctuations in the market prices of gold - General domestic and international economic and political conditions - Unexpected geological conditions or rock stability conditions. - Environmental risks - Changes in laws and government regulations, especially those relating to taxes. - The availability and timing of permits and approval relating to operations, expansion of operations, and financing of operations - Fluctuations in interest rates and other adverse financial conditions - Force majeure events. ITEM 4: CONTROLS AND PROCEDURES During gold production, security procedures include multiple levels of gold custody, from the mine to sales. Inventory control procedures were established by a SEC certified auditing firm. PART II Item 1 LEGAL PROCEEDINGS None Item 1a RISK FACTORS (a) Price of Gold The daily spot price of gold has modest financial effect on gross revenue if it's between $1,700 and $1,800 an ounce. A drop below $1,700 may have an adverse effect on the Company's revenue. Closing spot price on June 30, 2022, was $1,817.00. (b) Lack of Proven Reserves A sense of uncertainty is perceived by some. Caution is recommended in using reserves as an economic tool for valuing a mining company. The Company has no ability to measure reserves using the mathematical tools recognized in the mining industry. (c) Governmental Regulation The attached financial statements are unaudited. Therefore, the Company is not in full compliance with the SEC regulation for companies listed on an exchange. The Company is in compliance with all known safety and environmental standards and regulations. (d) Liquidity A buy market for gold is global and a spot price per ounce is always available. (e) Price of Stock Bids and offers are publicly recorded on the stock page of the Company's web site. Exposure is negligible. A per share price offer exists for shareholders listed on the October 2021, shareholder list at $1.00 per share which expires on March 31, 2023. Item 2 UNREGISTERED SALES OF EQUITY None Item 3. DEFAULTS ON SECURITIES None Item 4. MINE SAFETY DISCLOSURES For the six-month ended June 30, 2022, the Mine Safety and Health Administration (MSHA) issued no citations or orders to report. Item 5. OTHER INFORMATION The financial statements are prepared by management in accordance with generally accepted accounting practices. Such rules allow the omission of certain information and footnote disclosures included in financial statements prepared in accordance with generally accepted audited accounting principles as long as the statements are not misleading. All adjustments necessary for a fair presentation of the interim statements are included. These adjustments are of a normal recurring nature. Management evaluates its estimates and assumptions; actual amounts may differ. No independent accounting firm or auditors have any responsibility for the accounting and written statements of the Form 10-Q. The Company and its president assume responsibility for the accuracy of this filing and certify the financial statements present fairly in all material respects, the financial position of Original Sixteen to One Mine, Inc at June 30, 2022. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ORIGINAL SIXTEEN TO ONE MINE, INC. (Registrant) Michael M. Miller President and Director Dated: August 24, 2022