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 September 30, 2017March 31, 2020 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 "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 [
] NoN0 [X]
As of September 30, 2017, 14,338,855March 31, 2020, 14,342,097 shares of Common Stock, par
value $.03$.033 per share, were issued and outstanding.
Item 1. PART I
ITEM 1. FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Original Sixteen to One Mine, Inc.
Condensed Balance Sheet
September 30, 2017March 31, 2020 & December 31, 20162019
ASSETS
2020
2019
Current Assets
Cash $ 16,42024,830
$ 6,9564,433
Accounts receivable 43,923 105,41756,775
56,525
Inventory 749,675 1,010,213(see Note 1) 270,194
305,691
Other current assets -
-
-------
-------
Total current assets 810,018 1,122,586351,799
366,649
-------
-------
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 (see Note 2) 278,377
278,377
-------
-------
Fixed Assets at Cost
Equipment 885,307 885,307597,602
597,602
Buildings 209,487
209,487
Vehicles 171,522 171,522168,925
168,925
---------
---------
Total fixed assets at cost 1,266,316 1,266,316976,014
976,014
---------
---------
Less accumulated depreciation (1,167,922) (1,151,296)(930,402)
(927,961)
----------- ------------
----------
Net fixed assets 98,394 115,02045,612
48,053
----------- ------------
----------
Other Assets
Bonds and misc. deposits 21,460 21,46014,869
14,869
---------
-------
Total Assets $1,208,249 $1,537,443$ 690,657
$ 707,948
==========
==========
?
Original sixteen to One Mine, Inc.
Condensed Balance Sheet Continued
LIABILITIES & STOCKHOLDERS' EQUITY
September 30, 2017 & December 31, 20162020
2019
Current Liabilities
Accounts payable & accrued expenses $1,191,248 1,187,920(see Note 3)$ 1,237,392
1,342,718
Due to related party 198,382 175,533(see Note 4) 209,511
247,911
Notes payable Short-term 536,698 534,691(see Note 6) 538,558
538,558
--------
-------
Total Current Liabilities 1,926,328 1,898,1441,985,461
2,129,187
--------
-------
Long Term Liabilities
Notes payable due after one year 131,819 144,449(see Note 7) 98,736
101,092
--------
-------
Total Liabilities 2,058,147 2,042,593
-------- -------2,084,197
2,230,279
----------
---------
Stockholders' Equity
Capital stock, par value $.03:$.033:
30,000,000 shares authorized: 14,338,85514,342,097
issued and outstanding as of Sept. 30,2017Dec. 31, 2018
and as of DecemberMarch 31, 2016 468,836 468,8362019
(see Note 8) 474,891
474,891
Additional paid-in capital 2,222,892
2,222,8922,221,290
(Accumulated deficit)
Retained earnings (3,541,626) (3,196,878)(4,091,323)
(4,218,512)
------------ ------------
----------
Total Stockholders' Equity (849,898) (505,150)(1,393,540)
(1,522,331)
------------ ------------
----------
Total Liabilities and Stockholders' Equity $1,208,249 $1,537,443$ 690,657 $
707,948
============
============
See Accompanying Notes
?
Original Sixteen to One Mine, Inc.
Statement of Operations and Retained Earnings
Three Months Ending Sept. 30, NineEnded March 31, 2020 and March 31, 2019
Three Months Ending Sept. 30,
2017 2016 2017 2016March 31,
2020 2019
------ ------ ------ -----
Revenues:
Gold & Jewelry Sales 29,853 64,974 131,024 562,797jewelry sales $ 50,130 $ 116,451
Other Revenue 24,000 24,000 72,000 72,000
--------- --------- -------- --------- --
----------- -----------
Total revenues $ 53,853 $ 88,974 $ 203,024 $ 634,797
--------- --------- -------- --------50,130 116,451
----------- -----------
Operating expenses:
Salaries and wages 15,000 15,000
45,000 45,000
Contract Labor 71,540 63,535 213,470 278,084
Utilities 19,183 24,543 61,121 59,18434,517 55,287
Telephone & utilities 18,661 19,316
Taxes - property & payroll 7,837 10,331 15,921 21,3594,762 4,379
Supplies 3,820 11,253 23,930 47,813448 3,727
Insurance 1,091 967 3,218 2,5561,127 1,875
Small equipment & repairs 1,387 1,267 22,853 26,2912,600 2,511
Drayage 3,967 2,512
Corporate expenses 1,221 365
Legal fees and penalties 4,201 880
Mine Maintenance 45,250 17,316 87,953 57,176
Drayage 4,067 4,007 11,592 10,701
Corporate expenses 1,192 1,272 10,374 10,790
Legal and& Compliance 5,276 28,833 12,598 53,2791,271 3,411
Depreciation & amortization 5,542 5,542 16,626 16,6262,442 4,520
Other operating expenses 1,275 1,353 4,095 6,060846 1,468
---------- ---------- ------- -------
Total operating expenses 182,660 185,219 528,751 634,91991,063 115,251
---------- ---------- -------- --------
Profit (Loss) from operations(128,807) (96,245) (325,727) (122)operations (40,933) 1,200
Other Income: 1,979 800 5,208 3,400Income & Expenses:
Other Expense: 7,582 6,578 20,912 30,320Income 1,200 1,519
Other Expenses - 5,284
------- -------- --------- --------- ---------
Total Other income(expense) (5,603) (5,778) (15,704) (26,920)
--------Income (Expense) 1,200 (3,765)
---------- ------- -------------------
Profit (Loss) before taxes (134,410) (102,023) (341,431) (27,042)
--------(39,733) (2,565)
---------- --------- --------------------
Income tax benefit (expense) 2,517 (3,317) (800)
-------- ---------- --------- --------Tax Benefit - -
Net profit (loss)Profit (Loss) $ (136,927)(39,733) $ (102,023) $ (344,748) $ (27,842)(2,565)
============ =========== ========== ==========
Basic and diluted (loss)
earningsGain
(Loss) per share $ (.01)(0.0002) $ (.008) $ (.024) $ (.002)(0.0002)
============ ============ ========= ===================
Shares used in the
calculation of net
(loss)loss income per share 14,338,855 13,399,505 14,338,855 13,399,50514,342,097 14,342,097
============ =========== ========== ===========
See Accompanying Notes
Original Sixteen to One Mine, Inc.
Statement of Cash Flows
NineThree Months Ended Sept. 30, 2017March 31, 2020 and Sept. 30, 2016
NineMarch 31, 2019
Three Months
Ended Sept. 30,
2017 2016March 31,
2020
2019
--------------
------------
Net profit (loss) $ (344,748) $ (27,842)--------------
Cash Flows From Operating Activities:
Net profit (loss) $ (39,733)
$ (2,564)
operating activities:
Depreciation and amortization 16,626 16,6262,442
4,520
(Increase)Decrease in
accounts receivable 61,494 (2,086)(250)
(750)
Decrease(Increase) in inventory 260,538 297,70035,496
5,453
(Increase)Decrease in other
current assets -
-
(Decrease) increase in accounts payable
and accrued expenses 3,328 81,222(52,064)
(4,857)
(Decrease) increase in related partyrelated-party loans 22,819 (378,323)12,464
6,397
(Decrease) increase in short term notes 2,007 (495,346)_
-
------------
----------
Net cash (used) provided by
operating activities 22,094 (508,049)(41,645)
8,199
------------
---------------------
Cash Flows From Investing Activities:
(Increase) Decrease Fixed Asset Purchases _ _
Proceed from sale real estateAssets -
-
Other assets bonds misc. deposits - (16,000)
----------- -----------(3,450)
-------------
----------
Net cash (used) provided by
investing activities -
(16,000)
-----------(3,450)
------------
-----------
Cash Flows From Financing Activities
Increase (decrease) notes payable (12,630) (12,171)(50,864)
(1,523)
(Increase) decrease in notes receivable -
-
Proceeds from sale of common stock -
-
Additional paid-in capital -
-
----------- -----------------------
------------
Net cash provided (used) by
financing activities (12,630) (12,717)112,906
(1,523)
------------
------------
(Decrease) increase in cash 9,464 (536,662)20,397
3,226
Cash, beginning of period 4,442 540,6624,433
3,296
------------
----------
Cash, end of period $ 16,42024,830 $
4,4426,522
============
============
Supplemental schedule of other cash flows:
Cash paid during the period for:
Interest expense $ 20,483-
$ 30,0064,611
Income Taxes $ -
$ -
============
===========
Income taxes $ 3,317 $ 800
============ ===========
See Accompanying Notes
NOTES TO THE FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business: Original Sixteen to One Mine, Inc. (the
Company) was
incorporated in 1911, and is actively involved in operating gold minesoperates the
Sixteen to One mine in Alleghany, California; currently, in exploration and production status.California.
Inventory: Inventory consists of gold bullion, specimens and
jewelry. Gold bullion is quoted at the market price. Jewelry
and specimens are quoted at the market price for gold bullion.
Jewelry is quoted at the market price for the gold content
plus labor cost. Inventory is accounted for using the Average Cost method due to the limitations
of the Company's accounting software. Valuation adjustments to account for
changes in the price of gold are made quarterly.average
cost method.
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.
Company does not capitalize underground expenses or
exploration.
Depletion Policy: Because of the geological formation in the
Alleghany Mining District, estimates of ore reserves cannot be
calculated, and accordingly, a cost per unit depletion factor
cannot be determined. Should estimates of ore
reserves become available, the units of production method of depletion will be
used. Until such time, noNo depletion deduction will beis recorded.
Revenue Recognition: As they are mined, gold specimens are recorded in
inventory and revenueRevenue is recognized using quoted
market prices for gold.gold when mined. For income tax purposes
revenues are not recognized until the gold is sold.
Use of Estimates: The preparationPreparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions.
These estimatesEstimates and assumptions affect the reported amounts of assets
and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the
reporting period. Actual results couldmay differ from these
estimates.
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 infor
the period. The "exploration state" as defined in Guide
7(a)(4)(iii). may apply.
2. In the opinion of management, the financialFinancial statements contain all adjustments (consisting only
of normal recurring accruals) necessary to present fairly the
Company's financial position at Sept. 30, 2017March 31, 2020 and December
31, 2016,2019, the results of operations and cash flows for the
three-month and
nine-month periods ended Sept. 30, 2016March 31, 2020 and 2017. The unaudited2019. Unaudited
financial statements have beenare prepared in accordance with Generally
Accepted Accounting Principles for interim financial
information and with the instructions to Form 10-Q and Item 310(b)
of Regulation S-B.
ITEMItem 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF
OPERATION
The Sixteen to One mine in the Alleghany Mining District is a
unique minegold deposit and requires a uniquean unfamiliar operation,
which has beenis recognized by its owners, its miners, geologists,
engineers, and some public agencies during the last decade
of the twentieth century and to the present.for 125 years. It is a
traditionalrare California high-grade, hard rock, underground gold mine.
The same company owns and operates
(maintains)Company celebrated its 100th year anniversary on Oct. 9,
2011. It became the mine. Original Sixteen to One Mine Inc. (owner) was incorporatedoldest gold mining corporation in California in 1911.the
United States. Experts estimate that less than twentysixty percent of the oreof
the deposit has been mined.remain. Production is approximately 1,500,000
ounces of gold.
There are over twenty-eightOver thirty miles of horizontal workings and millions of cubic
feet of vertical excavations called stopes.stopes exist. The entire
grounds are not maintained for mining. Once an area is
targeted for mining, travel ways and escape routes are brought
into safety compliance. Production miners set up a heading
(face) and begin a drill-blast-muck sequence into the quartz.
Gold is hosted in the quartz vein inas exceedingly rich
concentrations called "pockets". Metal detectors are regularly
used underground as a tool for guiding the direction of the
work. Metal detectors are also used as a tool to classify the
ore underground. This has theA positive affect of reducingeffect reduces the volume of rock
taken from the mine, thereby reducing costs. Maps and reports comprise a valuable
tool for evaluating present and future mining operations.
In 1992, the company initiated a gold marketing plan of
selling gold in quartz as a gemstone. This produces revenue
significantly greater than selling gold into the spot market.
Demand for the Sixteen to One gold-in-quartz gemstone exceeds
supply.
Production has been termed a "feast or famine" situation for
over 100 years. Reserves in athis high-grade gold mine cannot
be termed as "proven". By industry
wide definition of phases of a mine operation, the operation during this
quarter is exploration. Exploration aims at locating the presence of economic
deposits and establishing their nature, shape and grade. The investigation may
be divided into (1) initial and (2) final. At the Sixteen to oneOne the search for
gold or ore embraces: (1) geological surveys;historical maps; (2) geophysical
prospecting; (3)
boreholes; (4) surface or underground headings, drifts or tunnels. When
operations detect the presence of gold, the Company evaluates
the indicatorsenvironment and if warranted, moves its operationchanges from exploration to development. When the
presence of gold is evaluated, the Company moves its operation into production.development to
production rapidly. The company hoards gold and sells it
according to short-term cash needs. This
fact requires an operator to manage itsThese facts create
headaches for the Company managing cash flow to operate between pockets.
ItBalance Sheet notes:
Gold inventory is difficult to undertake major expansion plans with an uncertain supplyrecorded at spot price despite proven
additional value for specimen and gem-stone material which is
substantially greater than spot price. Jewelry inventory is
recorded at labor plus gold cost.
No value is recorded on the balance sheet for timber reserves.
The company owns 470 acres of capital.
Our crew began a tough but significant project last December: reestablishprime forested timberland. No
value is recorded on the 49 WINZEbalance sheet for mining. (WINZEthe Company owned
water-rights. Reduced value is a vertical opening driven downward connecting
two or more levels in a mine). Crumpled stairsrecorded on the balance sheet
for buildings, equipment and ground support, failed
electrical switches, transformersland. No value is recorded on
the balance sheet for marketable aggregate and wire, dilapidated compressed air and
water lines faceddecorative
stone currently stockpiled. No value is recorded on the
miners. The 49 WINZE, access tobalance sheet for goodwill. Fixed assets are recorded at
historic cost less depreciation which cloud the southern levels (of
the underground), is a vital componenttrue value of
mining. It became a victim of
depreciated gold prices over a decade ago. The task seemed an overwhelming
head ache to even think about its rejuvenation; but we did think about it and
decided to risk last year's profit here. Why is our future tied with the 49
WINZE project?
The Company has two new gold detectors with proven successes of identifying
gold in quartz previously undetected with older models. Our miners stopped
working in the deep levels due to uncontrollable economic changes. It was not
the absence of gold. Multiple areas with visible gold targets were left that
are now below the water. Our current inventory provides the capital to open
those levels for mining. The 49 WINZE also satisfies federal requirements for
a second exit for miners.
The crew worked every quarter this year to reestablish safe access (ground
support) in the winze, Utilities are in place (compressed air, water,
communications) from the 800 foot level to the 1700 foot level. Stairs or
ladders are also in place. Simultaneously, the water level is continuously
lowering. It is between the 1700 and 1900 level. Predictions are difficult
with this type of work; however it is likely the crew will reach the 1900 foot
level this year.
Last year besides mining gold and maintaining or repairing infrastructure,
regulatory drama was a factor. It has lessened. A more common sense approach
regarding federal MSHA inspectors is noticed. Tools of reason and common sense
played a part. MSHA took notice that the requirements for an inspector have
been ignored and determined as "unlawful". California's misguided water public
servants may soon recognize similar facts regarding the overreach by its
Prosecution Team of lawyers. Regulating government agencies have cost us
dearly in time and money.
California is nationally known for its environmental hostilities towards
business. The mineral and timber extraction business became easy targets. Our
operation does zero environmental/public harm, zero. Sixteen to One water has
minerals naturally because the entire watershed and Kanaka Creek are
mineralized. Water passing through our property has no adverse effect on any
beneficial use downstream. Outright reckless enforcement by some Californian
public servants may be shifting towards reason. Top water consultants are
working with regulators to fix some problems.assets.
BALANCE SHEET COMPARISONS
For the nine-monththree-month period from Decemberended March 31, 20162020 there were no
significant changes to Sept. 30, 2017 total
assets decreased by 21% primarily due to a 58% decrease in Accounts Receivable
and a 26% decrease in inventory. The corresponding revenue from these
decreases was used to fund operations.
For the same nine-month period related party payables decreased by 13%.balance sheet.
STATEMENT OF OPERATIONS
Revenues
Gold revenues for the three-month period ended Sept. 30, 2017 were 39% lower thanending March 31,
2020, decreased by $116,607 (58%) compared with the same
period in 2016 primarily2019 due to no gold production in 2017.
Revenues formanagement?s decision to dewater the
nine-monthmine.
Expenses
For the three-month period ended Sept. 30, 2017March 31, 2020 compared to
the same period in 2016 were 68% lower2019 total operating expenses decreased by
$31,813 (26%) primarily due to the lack of gold productiona
smaller crew in 2017
and lower sales of existing inventory in 20172020 compared to 2016.
Operating expenses for2019.
For the three-month period ended Sept 30,2017 were similar
to the same period in 2016.
Operating expenses for the nine-month period ended Sept 30,2017 decreased by
17%March 31, 2020 compared to
the same period in
2016 due to a smaller work-force in 2017.
For the three-month period ended Sept. 30, 20172019 the company showed a loss of $136,927$39,733 compared to a loss
of $102,023 for the same period in 2016.$5,225. The 34%$34,508 (87%) difference is due to lower gold
sales in 2017. For the nine-month
period ended Sept. 30, 2017 the company showed a loss of $344,748 compared to a
loss of $27,842 for the same period in 2016. The 1,138% difference is
primarily due to the sale of less inventory in 2017 compared to 2016.
ITEM 3production.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
From time to time the Original Sixteen to One Mine, Inc. (the Company), will
makeCompany makes written and oral forward-lookingforward-
looking statements about matters that involve risks and
uncertainties that could cause actual results to differ
materially from projected results. Important factors that
could cause actual results to differ materially include, among
others:
- Fluctuations in the market prices of gold
- General domestic and international economic, political and
politicalgovernmental
conditions
- Unexpected geological conditions or rock stability
conditions
resulting in cave-ins, flooding, rock-bursts or rock slides
- Difficulties associated with managing complex operations in remote areas
- Unanticipated milling and other processing problems
- The speculative nature of mineral exploration
- Environmental risks
- Changes in laws and government regulations, including those
relating to taxes
and the environment
- The availability and timing of receipt of necessary governmental
permits and approval relating to operations, expansion of operations,
and financing of operations
- Fluctuations in interest rates and other adverse financial
market conditions
- Other unanticipated difficulties in obtaining necessary financing with
specifications or expectations
- Labor relations
- Accidents
- Unusual weather or operating conditions
- Force majeure events
- Other risk factors described from time to time in the Original Sixteen to One
Mine, Inc., filings with the Securities and Exchange Commission
Many of theseThese factors are beyond the Company's ability to control or
predict. Investors are cautioned not to place undue reliance
on forward-looking statements. The Company disclaims any intent or obligation towill update its
forward-looking statements, whether as a result of receiving
new information, the occurrence of future events or otherwise.otherwise
if significant.
ITEM 44: CONTROLS AND PROCEDURES
See notesSecurity procedures include multiple levels of gold custody,
from the mine to financial statements.sales. Inventory control procedures were set
up by an SEC certified auditing firm and continue to be
followed.
PART II
ITEMItem 1 LEGAL PROCEEDINGS
None
Item 1a RISK FACTORS
(a) Price of Gold
The daily spot price of gold has a modest effect on gross
revenue if it's between $1,000 and $1,300 an ounce. A
significant drop below $1,000 may have an adverse effect on
the Company's operation. The Company's realized gold values
usually exceed the bullion price due to the jewelry and
specimen markets which are not affected by the spot price of
gold.
?
(b) Lack of Proven Reserves
Because proven reserves are not utilized as a component for
evaluating future earnings or ore values, a sense of
uncertainty of existence is perceived by some. Caution is
always recommended in using the doctrines of reserves as an
economic tool for valuing a mining company. While (i) the
Company filed a petition for review withhas recovered over one million ounces of gold and (ii)
management knows that substantial additional virgin veins
exist in the United States court of Appeals
for the Ninth Circuit, accepted July 12, 2016. File number is: No. 16-72349.
Original Sixteen to One Mine, Inc. (operator)mine, the Company has no ability
to measure potential gold production using the mathematical
tools generally recognized in the mining industry; however,
the company can prove that approximately seventy percent (70%)
of its vein systems have not been developed.
(c) Governmental Regulation
The attached financial statements have not been audited by a
Securities Exchange Commission (SEC) accounting firm.
Therefore, the Company is not in full compliance with this SEC
regulation for companies listed on an exchange.
State and federal statutes regulate environmental quality,
safety, exploration procedures, reclamation, employee?s health
and safety, use of explosives, air quality standards,
pollution of stream and fresh water sources, noxious odors,
noise, dust, and other environmental protection controls as
well as the rights of adjoining property owners. Laws may
change preventing or delaying the commencement or continuance
of given operations.
The Company is substantially in compliance with all known
safety and environmental standards and regulations, however;
it faces reoccurring unreasonable and illegal demands from the
Central Valley Regional Water Quality Control Board (CVRWCB)
or its miners (WE)staff. The Company is forced to expend working capital
and time defending this excessive and punitive behavior.
There can be no assurance that future changes in the laws,
regulations or reckless interpretations thereof will not have
been
adversely affecteda material adverse effect. CVRWCB staff accepted invitations
to visit the mine property. A definitive plan is under mutual
development to re-write the mine's discharge permit.
(d) Liquidity
Gold inventory at March 31, 2020, was $270,194 primarily as
specimens or gold held as jewelry. While history of actual
cash sales supports an inventory value exceeding the spot
price, no such increases are used to compute the inventory.
All inventory of raw material is recorded at spot price per
troy ounce. In addition, contract manufacturing costs of
jewelry are included in the finished jewelry inventory.
Periodic shortfalls in liquidity occur which are not likely to
be bridged by an orderinstitutional debt financing. Management
addresses these issues as they arise.
(e) Price of Stock
Bids and offers are publicly recorded on the stock page of the
Federal Mine SafetyCompany's web site and Health Review
Commission (FMSHRC) under the Federal Mine Safety and Health Acta gray market. Exposure is limited.
The price of 1977,
Public Law 91-173 (ACT). WE ask for a review of such order in your court in
our district, the Ninth Circuit. WE pray that the order be modified or set
aside as allowed in Sec.106. (a)(1)stock may not accurately reflect its fair market
value because of the ACT.
Citations were written outsidelimited marketplace and the existence of
a wild and free gray market. The company deferred programs to
support or promote its stock.
There are conflicting bids, offers and trades between the
law specified in SEC 4 underCompany's website and the heading,
MINES SUBJECT TO ACT: Each coal or other mine,unregulated Pink Sheet Gray Market,
ticker symbol OSTO. Because of these discrepancies the products of which enter
commerce, ormarket
price is unreliable.
Item 2 UNREGISTERED SALES OF EQUITY
None
Item 3. DEFAULTS ON SECURITIES
None
Item 4. MINE SAFETY DISCLOSURES
For the operations or products of which affect commerce, and each
operator of such mine, and every miner in such mine shall be subject tothree-months ended March 31, 2020, the
provisions of the ACT.
The Secretary of Labor is designated to carry out the intents by Congress of
ACT, SEC. 2. Congress declares the importance of our most precious resource
the miner. The Mine Safety and
Health Administration (MSHA) was established
to carryout CFR 30 Mineral Resources and issue citations. During the public
hearing forissued no citations MSHA placed no supportive testimony to refute its
position that Plumbago meets the requirement for regulations under ACT. No
case rulings to support the Administrative Law Judge (ALJ) or FMSHRC decisions
are entered into the record.
While there are instances where SEC. 4. language was challenged by
an operator and the challenge fails, there are no cases or situations that
resemble Plumbago. WE entered over eighty pages of testimony supporting our
position, including the recent decision by the United States Supreme Court
regarding the Affordable Care Act and its effect on interstate commerce.The
argument that at one time, Plumbago was a mine and affected commerce, has
merit.
The argument that the operation at Plumbago meets the requirement of SEC. 4.
during recent times has no standing. MSHA actions followed by the ALJ and
FMSHRC, violates the intent of Congress as written in ACT.
This important law must be honestly enforced in its entirety, not through a
selective interpretational process. This behavior must be severed, not the law
but its abuse. Only the Judicial Branch remains to protect the American miner
from extinction by overreaching power. The Legislative Branch held numerous
public meeting in the 1970s on the subject of mining health and safety in the
industry. Congress passed a law for the Executive Branch to implement. Over a
span of 39 years regulators have drifted away from its stated purposes. WE
pray for relief and support from the Judicial Branch to return the course of
health and safety to the most endangered species in America, the underground
gold miner.
ITEM 1A RISK FACTORS
The Company's liquidity is substantially dependent upon the results of
operations. The Company maintains a gold inventory which it liquidates to
satisfy working capital needs. There is no assurance that inventory is
adequate to sustain the Company.
ITEM 2 UNREGISTERED SALES OF EQUITY
None
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4 MINE SAFETY DISCLOSURES
For the three-month period ended September 30, 2016 NO citations under Section
104(a) S&S, 104(b) Orders or 104 (d) S&S Citations Section 110 (b)(2)
Violations or Section 107 (a) Orders were issued.
A total of two citations were issued during the three-month period ended Sept
30, 2017. The total proposed penalties on these four citations is $984
These citations are being contested.
ITEM 5orders.
Item 5. OTHER INFORMATION
The unaudited interim consolidated financial statements of Original Sixteen to
One Mine, Inc. (the Company) have beenthe
Company are 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 amountamounts 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.may differ.
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-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 Sept.
30, 2017.
ITEM 6March 31,
2020.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrantRegistrant 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: November 14, 2017April 15, 2020
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