-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WWEbSbyk+iAV7mGIUEZZ3bsJrN9FSX3FrwzM311fb7ypqCvZnVMdtI29dCLODzff 1i2u6z4btVJO9oCs1kaj0w== 0000074925-04-000008.txt : 20040607 0000074925-04-000008.hdr.sgml : 20040607 20040607145833 ACCESSION NUMBER: 0000074925-04-000008 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040607 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: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-10156 FILM NUMBER: 04851766 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 10QSB 1 tenqmarchofour.txt QUARTERLY FINANCIAL STATEMENT MARCH 2004 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended March 31, 2004 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. Yes: No: x As of March 31, 2004, 12,867,250 shares of Common Stock, par value $.03 per share, were issued and outstanding. PART I 1. FINANCIAL INFORMATION Original Sixteen to One Mine, Inc. Condensed Balance Sheet March 31, 2004 and December 31, 2003 March 31, 2004 December 31, 2003 ASSETS Current Assets Cash $ 40,795 $ 40 Accounts receivable 14,664 3,204 Inventory 609,725 620,778 Other current assets 4,650 5,775 ---------- ---------- Total current assets 669,834 629,797 ---------- ---------- Mining Property Real estate and property rights net of depletion of $524,145 181,091 181,091 Real estate and mineral property 473,403 473,403 ---------- ---------- 654,494 654,494 ---------- ---------- Fixed Assets at Cost Equipment 947,648 909,983 Buildings 159,487 159,487 Vehicles 252,128 252,128 ---------- ---------- 1,359,263 1,321,598 Less accumulated depreciation (1,219,464) (1,211,496) ---------- ---------- Net fixed assets 139,799 110,102 ---------- ---------- Other Assets Bonds and misc. deposits 16,185 16,185 ---------- ---------- Total Assets $1,480,312 $1,410,578 ========== ========== LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities Accounts payable & accrued expenses $ 378,017 352,797 Due to related party 72,163 101,397 Notes payable due within one year 433,746 434,013 ---------- ---------- Total Current Liabilities 883,926 888,207 ---------- ---------- Long Term Liabilities Notes payable due after one year 19,695 27,597 ---------- ---------- Total Liabilities 903,621 915,804 ---------- ---------- Stockholders' Equity Capital stock, par value $.03: 30,000,000 shares authorized: 12,867,250 shares issued and outstanding as of March 31, 2004 and December 31, 2003 428,869 428,869 Additional paid-in capital 1,875,888 1,875,888 (Accumulated deficit) retained earnings (1,728,066) (1,809,983) ---------- ---------- Total Stockholders' Equity 576,691 494,774 ---------- ---------- Total Liabilities and Stockholders' Equity $1,480,312 $1,410,578 ========== ========== See Accompanying Notes Original Sixteen to One Mine, Inc. Statement of Operations and Retained Earnings Three Months Ending March 31, 2004 2003 ------ ------ Revenues: Gold & jewelry sales $ 246,285 $ 140,187 Inventory valuation adjustment for the price of gold (1,107) (18,173) ----------- ----------- Total revenues 245,178 122,014 ----------- ----------- Operating expenses: Salaries and wages 32,197 17,342 Contract Labor 28,227 34,414 Telephone & utilities 31,601 31,216 Taxes - property & payroll 8,650 8,256 Insurance 1,925 1,655 Supplies 10,766 6,707 Small equipment & repairs 3,658 1,633 Drayage 3,581 978 Corporate expenses 2,600 4,102 Legal and accounting 10,378 3,059 Depreciation & amortization 7,968 5,956 Other expenses 17,278 3,239 ---------- ---------- Total operating expenses 158,829 118,557 ---------- ---------- Profit (Loss) from operations 86,349 3,457 Other Income & (Expense): Other income (expense) (4,432) (16,754) ---------- ----------- Loss before taxes 81,917 (13,297) ---------- ----------- Net loss $ 81,917 $ (13,297) ============ =========== Basic and diluted (loss) gain per share $ .006 $ (.001) ============ ============ Shares used in the calculation of net loss income per share 12,867,250 12,744,046 ============ =========== See Accompanying Notes Original Sixteen to One Mine, Inc. Statement of Cash Flows Three Months Ended March 31, 2004 and March 31, 2003 Three Months Ended March 31, 2003 2002 -------------- -------------- Cash Flows From Operating Activities: Net profit (loss) $ 81,917 $ (13,297) operating activities: Depreciation and amortization 7,968 5,956 (Increase)Decrease in accounts receivable (11,460) (5,014) Decrease(Increase) in inventory 11,053 25,692 (Increase)Decrease in other current assets 1,125 728 (Decrease) increase in accounts payable and accrued expenses 25,220 2,867 (Decrease) increase in short term notes (29,501) (2,438) ------------ ---------- Net cash (used) provided by operating activities 86,322 14,494 ------------ ----------- Cash Flows From Investing Activities: Purchase of fixed assets (37,665) - Other assets bonds misc. deposits - ------------- ----------- Net cash (used) provided by investing activities (37,665) - ------------- ----------- Cash Flows From Financing Activities Increase (decrease) Bank overdraft - (81) Increase (decrease) notes payable (7,902) (6,981) Proceeds from sale of common stock - - Additional paid-in capital - ------------ ------------ Net cash provided (used) by financing activities (7,902) (7,062) ------------ ------------ Decrease (increase) in cash 40,755 7,432 Cash, beginning of period 40 - ------------ ---------- Cash, end of period $ 40,795 $ 7,432 ============ ============ Supplemental schedule of other cash flows: Cash paid during the period for: Interest expense $ 14,922 $ 14,990 ============ ============ See Accompanying Notes NOTES TO THE FINANCIAL STATEMENTS I. 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 and is in the "exploration state" as defined in Guide 7(a)(4)(iii). 2. In the opinion of management, the financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company's financial position at March 31, 2004 and December 31, 2003,the results of operations and cash flows for the three-month periods ended March 31, 2004 and 2003. The unaudited financial statements have been prepared in accordance with Generally Accepted Accounting Principles for interim financial information and with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B. II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION Since the Sixteen to One Mine is well known for over one hundred years as a unique gold deposit, predicting gold production is more speculative than provable. Independent crews have access to company maps and records which allow them to select and explore for gold in areas favorable for short term goals. Liberating the flooded levels of the mine remains a goal. Difficulties continue due primarily to a lack of investment capital adequate to improve the efficiency of pumping. An improved system has significantly reduced dewatering costs. Due to the very nature of deep vein mining no estimates are offered regarding the date of accessing the 2400 foot level. The Company has announced its plans to construct a new shaft in the central area of its property. Construction is dependent on available capital for the expansion. New mine production was disappointing. Gold inventory at December 31, 2003 ($620,778) decreased $11,053 to $609,725 on March 31, 2004. Demand for the Company's primary product, gold laced quartz, remains higher than available supply. While the daily price of gold bullion impacts revenue, gold laced quartz is sold for many times its crush or spot bullion price. BALANCE SHEET COMPARISONS Assets increased by $69,734 during the three month period which primarily represents the increase in cash of $40,755 in addition to equipment purchased. Liabilities decreased by $12,183 as the Company continued to pay down its loans. STATEMENT OF OPERATIONS Revenues for the three-month period increased by $123,164 (101%) compared with the same period for 2003 mainly as a result of mill sulfides which were processed to extract the gold. Gross revenue from the sulfides was $102,714. These sulfides were never booked as gold inventory due to the difficulty in determining their exact gold content. Changes in the Company's operating expenses are reflected as follows: 1. Salaries and wages increased by $14,855 (85%) primarily due to wages of $5,000 per month being booked to wage expense and wage liability for Michael Miller as approved by the Board of Directors. Miller waved his salary for 2003. 2. Drayage increased by $2,603 (266%) for the three-month period ended March 31, 2004, compared with the same period for 2003, due primarily to vehicle repairs that were required. 3. Legal and accounting reflects an increase of $7,319 (42%) for the three-month period ended March 31, 2004, compared with the same period ended March 31 2003. This increase is mainly the result of a Petition filed in United States Court of appeals for the Ninth Circuit, March 23, 2004 contesting MSHA's interpretation of its standard. Docket Number 04-71301, as well as Complaint for Damages (Malicious Prosecution, Intentional Infliction of Emotional Distress, Intentional Interference with Perspective Advantage) filed in Superior Court of the State of California, County of Sierra against private lawyers and their employer. Case filed February 13, 2004. Case No. 6293. Both cases are ongoing. 4. Other expenses increased by $14,039 (89%) primarily due to an increase in advertising and promotion as the company stepped up its effort to find investors. 5. For the three-month period ended March 31, 2004, the Company recorded a profit of $81,917 (before taxes) compared to a loss of $13,298 (before taxes) for the same period in 2003. The $95,211 (716%) difference is attributed primarily to revenue from mill concentrates as noted above. LIQUIDITY AND CAPITAL RESOURCES The Company's liquidity is substantially dependent upon the results of its operations. While the Company does maintain a gold inventory which it can liquidate to satisfy working capital needs, there can be no assurance that such inventory will be adequate to sustain operations if the Company's gold mining activities are not successful. Because of the unpredictable nature of the gold mining business, the Company cannot provide any assurance with respect to long-term liquidity. In addition, if the Company's operation does not produce meaningful additions to inventory, the Company may determine it is necessary to satisfy its working capital needs by selling gold in bullion form. The Company is dependent on continued recovery of gold and sales of gold from inventory to meet its cash needs. Although the Company has historically located an annual average of $848,000 of gold over a five year period, there can be no assurance that the Company's efforts in any particular period will provide sufficient funding for the Company to continue operations. If the Company's cash resources are inadequate and its gold inventory is depleted, the Company may seek debt or equity financing on the most reasonable terms available. PART II LEGAL PROCEEDINGS 1.Petition in United States Court of appeals for the Ninth Circuit, filed March 23, 2004 contesting MSHA's interpretation of its standard. Docket Number 04-71301. 2. Plaintiff in Superior Court of the State of California, County of Sierra against private lawyers and their employer. Case filed February 13, 2004. Case No. 6293, Complaint for Damages (Malicious Prosecution, Intentional Infliction of Emotional Distress, Intentional Interference with Perspective Advantage) OTHER INFORMATION The unaudited interim consolidated financial statements of Original Sixteen to One Mine, Inc. (the Company) have been prepared by management in accordance with generally accepted accounting practices. Such rules allow the omission of certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted audited accounting principles as long as the statements are not misleading. In the opinion of management, verified by signature below, all adjustments necessary for a fair presentation of these interim statements have been included. These adjustments are of a normal recurring nature. The preparation of the Company's financial statements in conformity with accounting principles accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, as well as the reported amount of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and assumptions; however, actual amounts could differ from those based on such estimates and assumptions. No accounting principle upon which the Company's financial status depends, requires estimates of proven and probable reserves and/or assumptions of future gold prices. Commodity prices may significantly affect the company's profitability and cash flow. No independent accounting firm or auditors have any responsibility for the accounting and written statements of the Form 10-QSB. 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 March 31, 2004. 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) /s/Michael M. Miller President and Director Dated: June 3, 2004 -----END PRIVACY-ENHANCED MESSAGE-----