Some assets are not on balance sheet due to accounting
regulations, such as, timber rights, water rights, federal
and 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, 20212022
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 September 30, 2021,2022, 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
September 30, 20212022 & December 31, 20202021
ASSETS
2022 2021 2020
Current Assets
Cash $ 22,8801,783 $ 22,1264,802
Accounts receivable 114,132 55,775181,593 127,564
Inventory 128,036 309,576
Other current assets - -130,438 130,438
Capitalized Expenses 906,229 604,044
------- -------
Total current assets 265,048 387,4771,220,043 866,848
------- -------
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 632,602605,646 597,602
Buildings 209,487 209,487
Vehicles 168,925 168,925
--------- ---------
Total fixed assets at cost 1,011,014984,058 976,014
--------- ---------
Less accumulated depreciation (971,174) (969,054)(964,896) (963,606)
----------- -----------
Net fixed assets 39,840 6,96019,162 12,408
----------- -----------
Other Assets
Bonds and misc. deposits 14,869 14,869- 4,091
--------- -------
Total Assets $ 598,1341,517,582 $ 687,6831,161,724
========== ==========
Original sixteen to One Mine, Inc.
Condensed Balance Sheet Continued
LIABILITIES & STOCKHOLDERS' EQUITY
2022 2021 2020
Current Liabilities
Accounts payable & accrued expenses $ 1,356,601 1,327,532614,051 1,417,728
Due to related party 252,686 279,237295,833 515,993
Notes payable Short-term 538,558 538,5582,080,578 543,558
-------- -------
Total Current Liabilities 2,147,845 2,145,3272,990,462 2,477,279
-------- -------
Long Term Liabilities
Notes payable due after one year 126,836 126,83697,236 97,236
-------- -------
Total Liabilities 2,274,682 2,272,1633,087,698 2,574,515
---------- ---------
Stockholders' Equity
Capital stock, par value $.033:
30,000,000 shares authorized: 14,390,63114,870,631
issued and outstanding as of Dec. 31, 20202021
and 14,870,631 as of SeptSeptember 30, 20212022
490,731 474,891490,731
Additional paid-in capital 2,446,044 2,221,8842,446,044
(Accumulated deficit)
Retained earnings (4,613,323) (4,281,255)(4,506,891) (4,349,566)
------------ -----------
Total Stockholders' Equity (1,676,548) (1,584,480)(1,570,116) (1,412,791)
------------ -----------
Total Liabilities and
Stockholders' Equity $ 598,1341,517,582 $ 687,6831,161,724
=========== ============
See Accompanying Notes
?
Original Sixteen to One Mine, Inc.
Statement of Operations
and Retained Earnings
Three Months Ending Sept 30, SixNine Months Ending Sept 30,
2022 2021 20202022 2021 2020
------ ------ ------ ------
Revenues:
Gold & Jewelry
Sales (59,837) 17,130 (28,411) 88,4552,321 22,353 2,321 30,632
Other Revenue 50,032 2,032 54,029 55,63
--------- --------- ---------
--------
Total revenues $ (59,837)52,353 $ 17,130 $(28,411) 88,45524,385 $ 56,350 86,266
--------- --------- ---------- --------
Operating expenses:
Salaries and wages 60,000 15,000 15,00090,000 45,000 43,024
Contract Labor 32,453 5,715 41,625 46,2375,412 11,326 51,962 25,774
Utilities 21,674 18,830 66,455 55,369875 6,755 10,733 20,656
Taxes 411 4,294(808) 412 5,160 5,664
13,948
Supplies 2,731 202 4,433 2,903800 2,448 685 3,237
Insurance 1,046 6002,249 1,047 7,635 6,891 2,860
Small equip.&
repairs 3,674 1,662 7,260 5,2832,001 2,649 5,668 6,366
Drayage (1,134) 782 5,764 5,717710 (10,304) 13,124 (5,455)
Corporate expenses 7,972 7,752 27,509 11,975
Legal/9,945 7,971 12,057 10,455
Legal & Compliance 34,039 25 34,854 12,104345 2,188 12,195 8,628
Mine Maintenance - 793 1,052 3,902 2,415304 1,302
Depreciation & amort. 707 2,442 2,120 7,32558 596 1,290 1,788
Other expenses 208 251 5,686 1,536
-57 84,460 1,138 96,196
------- ------- --------- ----------
Total operating
expenses 119,574 58,607 257,163 210,69681,644 125,341 211,951 226,503
-------- -------- --------- ----------
Profit (Loss) from
Operations (179,411) (41,477) (285,574) (122,241)(29,291) (100,956) (155,601) (140,237)
Other Income: 1,200 1,200 3,6003,700 3,600
Other Expense: 1,600 - - 4,2581,600 -
--------- -------- --------- ----------
Total Other income (400) 1,200 1,200 (658)2,100 3,600
-------- -------- --------- ----------
Profit (Loss)
before taxes (178,211) (40,277) (286,232) (118,641)(29,691) (99,756) (153,501) (136,637)
---------- --------- --------- ---------
Income tax benefit
(expense) - - (3,825) (1,600) (800)
---------- --------- --------- ---------
Net profit
(loss) $(178,211) $ (40,277) (287,832) (119,441)(29,691) $ (99,756) (157,326) (138,237)
=========== ========== ========= =========
Basic and diluted (loss)
earnings per share $ (.002) $ (.003)(.006) $ (.007)(.01) $ (.006)(.009)
========== ========== ========= ===========
Shares used in the
calculation of net (loss)
income per share
14,870,631 14,390,631 14,870,631 14,390,63114,870,631 14,870,631
============ =========== ========== ==========
See Accompanying Notes
Original Sixteen to One Mine, Inc.
Statement of Cash Flows
SixNine Months Ended Sept 30, 20212022 and Sept 30, 20202021
Nine Monthsmonths Ended September 30,
2022 2021 2020
-------------- ------------
Net profit (loss) $ (287,833)(157,325) $ (137,201)(138,237)
Cash Flows From Operating Activities:
Depreciation and amortization 2,120 7,3251,290 1,788
(Increase)Decrease in
accounts receivable (55,357) 750(54,029) (58,357)
Decrease(Increase) in inventory - 181,747 (2,033)
(Increase)Decrease in other
current assets - -(302,185) (390,822)
(Decrease) increase in accounts payable
and accrued expenses 29,089 5,481(803,677) 28,125
(Decrease)increase in related party loans
(26,677) 734(220,160) 290,063
Decrease) increase in short term notes
- -1,537,019 (152,594)
------------ -------
Net cash (used) provided by
operating activities (159,911) (124,944)933 (238,287)
------------ -------------------
Cash Flows From Investing Activities:
Fixed Asset Purchases (35,000)(8,044) -
Proceed from sale real estate - -
Other assets bonds misc. deposits -4,091 -
----------- - ----------
Net cash (used) provided by
investing activities (35,000)(3,953) -
----------- -----------
Cash Flows From Financing Activities
Increase (decrease) notes payable (43,355) 141,006- -
Proceeds from sale of common stock - 15,840 -
Additional paid-in capital - 224,160 -
----------- -----------
Net cash provided (used) by
financing activities 196,645 141,006- 240,000
------------ ------------
(Decrease) increase in cash 1,734 16,062(3,020) 1,713
Cash, beginning of period 21,145 3,4544,802 21,137
------------ ----------
Cash, end of period $ 22,8791,782 $ 19,51622,850
============ ============
Supplemental schedule of other cash flows:
Cash paid during the period for:
Interest expense $ - $ -
============ ===========
Income taxes $ 1,600- $ 800-
============ ===========
NOTES TO THE FINANCIAL STATEMENTS
Item 1 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.
Inventory: Inventory consists of gold bullion and gold ore.
Gold is quoted at the current market price.
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 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.
UseTwo IRS audits for 2018 and 2019 were centered around Net Loss
Carryover and COGS (Cost of Estimates: Preparation ofGoods Sold. The Income Tax
Examination Changes Letter reported financial statements in
conformity with generally accepted accounting principles
requires management to make estimateswere
incorrect and assumptions.
Estimates and assumptions affect reported amounts of assets
and liabilities atdid not reflect the datetrue financial conditions of
the corporation. Losses were over-stated, thereby compounding
the Retained Earnings (losses) every year. Assets were
understated. IRS states: ?Available Net Operating Loss will be
entirely disallowed. Net Operating Loss as of 1/1/2022 is $0.
There is also $0 of carryforward Net Operating Loss Deduction
for tax years under examination.? The 2021 financial statementsreports
required that these changes of overstated losses going back 20
years affecting Retained Earnings and the reported amounts of revenues and expenses during the
reporting period. Actual results may 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 for
the period. The "exploration state" as defined in Guide
7(a)(4)(iii) may apply.
2.Stockholder?s Equity..
Financial statements contain adjustments (consisting only
of normal recurring accruals) necessary to present
fairly the Company's financial position at September 30, 20212022
and December 31, 2020.2021. The results of operations and cash
flows for the third quarter of 2022 and 2021 and 2020 and showing the nine-
month year-to-date ending September 30, 2021 and 2020.
Unaudited financialare 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 in the Alleghany Mining District is a
unique gold deposit and requires an unfamiliar operation,unusual approach to its
operations, which is recognizedhas been understood by its owners, its miners,
geologists, engineers, and some public agencies for 125many
years.
It isIn 2012, Quartzview Corporation, a rare California high-grade, hard rock, underground gold mine.
The Company celebrated its 100th year anniversary on Oct. 9,
2011. becomingstartup shell by a Silicon
Valley group, claimed it had the oldest gold mining corporation inexpertise and technology -
similar to the United States. Experts estimate that sixty percent or moredevelopment of the gold deposit remains. Production is approximately
1,500,000 ounces of gold.
Over thirty miles of horizontal workings and millions of
cubic feet of vertical excavations called 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 as exceedingly
rich concentrations called "pockets". Metalmetal 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. A positive effect
reduces the volume of rock taken fromassist the
mine thereby
reducing costs.
In 1992,in finding gold. It?s efforts failed. Instead of
separately peacefully, as many other parties have done over
the company initiatedyears, Quartzview began to interfere with the Company?s
operation, creating 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 forhostile takeover to order to own the
Sixteen to One gold-in-quartz gemstone exceeds
supply.
Production has been termedMine, though not the Corporation.
In 2022, Quartzview, signed a "feast or famine" situationwritten agreement that all
willing shareholders would receive $1.00 per share. However,
once it claimed to have over 50% of the shares, it
subsequently refused to purchase any more shares that were
offered for over 100 years. Reservessale. As a condition of the initial agreement in
this high-grade gold mine cannot
be termed as "proven". At2012, Quartzview also agreed to the preparation of a three-
dimensional map of the Sixteen to One Mine, which it has
failed to do.
Why was this map so important? Truth can become a
manipulative concept with variables that can be represented,
or not represented to fit a narrative. The geology and
operational history of the search forSixteen to One mine is like no
other. For truth to hold the bottom line, accuracy is
necessary. What determines accuracy in evaluating the Sixteen
to One mine? Accurate maps, records and models which indicate
the conditions where gold embraces: (1) historical maps; (2) geophysical
prospecting; (3) underground headings, drifts or tunnels.
When operations detect the presence of gold,is most likely to be found.
In addition, the Company evaluateshas reported ?Tender Offer Fraud? -
as defined below - to the environmentSecurities and changes from explorationExchange Commission
(SEC) in regards to developmentQuartzview?s actions.
?It shall be unlawful for any person to production rapidly. The company hoards gold
and sells it accordingmake any untrue
statement of a material fact or omit to short-term cash needs. These facts
create headachesstate any material
fact necessary in order to make the statements made, in the
light of the circumstances under which they are made, not
misleading, or to engage in any fraudulent, deceptive, or
manipulative acts or practices, in connection with any tender
offer or request or invitations for the Company managing cash flow between
pockets.
Balance Sheet notes:tenders, or any
solicitation of security holders in opposition to or in favor
of any such offer, request, or invitation.?
FINANCIAL REPORT NOTES:
No value is recorded on the balance sheet for timber
reserves. The company owns 470 acres of prime forested
timberland.standing
timber. No value is recorded on the balance sheet for the Company owned water-rights. Reducedwater-
rights. No value is recorded on the balance sheet for buildings, equipmentrequired federal
and land.California operating permits. No value is recorded on the
balance sheet for marketable
aggregate and decorative stone currently stockpiled.land zoning. No value is recorded on the
balance sheet for goodwill.
Fixed
assets are recorded at historic cost less depreciation which
cloud the true value of Company assets.
BALANCE SHEET COMPARISONS
For the three-month period ended September 30, 2021 there was no
significant changesDue to the balance sheet.
STATEMENT OF OPERATIONS
Revenues
Gold revenues forIRS audit report the six-month period ending September 30,
2021, decreased by $39,695 (56%) compared with the same
periodannual and quarterly filings
changed in 2020 due to supporting COVID-19 Californiareporting income and federal restrictions, decrease in sales,expenses and the emphasis on
maintenance insteada comparison of
producing gold.
Expenses
For the nine-month period ended September 30, 2021, compared
to the same period in 2020 total operating expenses decreased
by $33,230 (15%) to supportpast and comply with COVID-19
California and federal restrictions.
For the nine-month period ended September 30, 2021, compared to
the same period in 2020, the company showedcurrent quarter reports is not a loss of $287,932
compared to a loss of $137,201. The $150,632 (109%) difference
is due booking legal fees from 2019 that were overlooked,
bringing Directors fees up to date and adjusting inventory that
hasn?t been done for yearssignificant
exercise.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
From time to time theThe Company makesmay make written and oral forward-
lookingforward-looking
statements about matters that involve risks and uncertainties
that couldmay cause actual results to differ
materially from projected
results. Important factors that couldmay cause actual results to
differ materially include, among others:
- Fluctuations in the market prices of gold
- General domestic andDomestic, international, economic, political and governmentalpolitical conditions
- Unexpected geological conditions or rock stability conditions
resulting in cave-ins, flooding, rock-bursts or rock slides
- The speculative nature of mineral explorationconditions.
- Environmental risksrisks.
- Changes in laws and government regulations
including those
relating to taxes- Expansion of operations, and the environmentfinancing of operations.
- Fluctuations in interest rates and otherOther adverse financial
market conditions
- Labor relations
- Accidents
- Unusual weather or operating conditions
- Force majeure events
These 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 will update its
forward-looking statements, whether as a result of receiving
new information, the occurrence of future events or otherwise
if significant.events.
ITEM 4: CONTROLS AND PROCEDURES
SecurityDuring gold production, security procedures include multiple
levels of gold custody, from the mine to sales. Inventory
control procedures were set
upestablished by ana SEC certified auditing
firmfirm. For the past two years, the Company ceased production work
and continueemphasized rehabilitation the underground workings to be
followed.the
lowest levels of the mine.
PART II
Item 1 LEGAL PROCEEDINGS
Company defended criminal allegations initiated byFile No. is 588 with the California District Attorney Association. On July 12, 2021
Sierra County District Attorney dismissed all criminal
charges.Occupational Safety and Health
Standards Board regarding HDPE pipe used for compressed air
over twenty year is under appeal. The decisionpipe is marked 200 psi
for water and not for air. The hearing process continues. The
obsolete regulation was approved inchalleng4ed and received favorable
attention. It is not known how the California Superior
Court, Sierra County on July 13, 2021. Civil charges tocitation will be discussed with Sierra County officials at a later date.treated.
Item 1a1 (a) RISK FACTORS
(a) Price of Gold The current spot price of gold between $1,700 and $1,800 an
ounce has limited financial effect on gross revenue. Closing
spot price on December 31, 2020, was $1,803.28 and on
September 30, 2021, it was $1,742.80 an ounce.currently is not a significant factor.
(b) Lack of Proven Reserves
Because proven reserves are not utilized as a component for
evaluating future earnings or ore values, aA sense of uncertainty of existence is perceivedassociated 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 has recovered over one million ounces of gold and
(ii) management knows that substantial additional virgin
veins exist in the Sixteen to One mine, theThe Company has no ability to measure
potential gold productionreserves using the mathematical tools generally recognized in the
mining industry; however,industry. It never has nor never should make the
company can prove that approximately
seventy percent (70%) of its vein systems have not been
developed.attempt.
(c) Governmental Regulation
The attached financial statements have not been audited by a
Securities Exchange Commission (SEC) accounting firm.are unaudited. Therefore,
the Company is not in full compliance with thisthe 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.
The
California Central Valley Regional Water Quality Control
Board permit was approved an additional five years in June
2021. The NPDES permit program, created in 1972 by the Clean
Water Act (C WA), helps address water pollution by regulating
point sources that discharge pollutants to waters(d) Liquidity
Gold is global. Spot price per ounce is always available.
(e) Price of the
United States. The federal EPA Administration Order became
effective August 16, 2021. The Company expends working
capital and time defending excessive and punitive behavior.Stock. There is no assurance that future changes inactive trading market for the
laws or
regulations.
(d) Liquidity
Gold inventory at September 30, 2021, was $128,036. Raw
materialstock. Exposure is recorded at spotnegligible. A per share price per troy ounce.
(e) Price of Stock
Bids and offers are publicly recordedby
Quartzview Corporation for shareholders on the stock page of
the Company's web site and a gray market. There were no
trades listed for the past three years. Exposure is limited.
The price of stock may not accurately reflect its fair market
value because of the limited marketplace and the existence of
a wild and free gray market. The company deferred programs
to support or promote its stock.October 2021,
shareholder list at $1.00 per share 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 nine-month ended September 30, 2021,2022, the Mine Safety
and Health Administration (MSHA) issued no citations or
orders to report.
Item 5. OTHER INFORMATION
The unaudited interim consolidated financial statements of
the 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,
allAll adjustments necessary for a fair presentation of thesethe
interim statements have beenare 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 reported amounts of
assets and liabilities and disclosure of contingent
liabilities at the date of financial statements, as well as
reported amounts of revenues and expenses during the
reporting period. On an ongoing basis, managementManagement evaluates its estimates and assumptions; however, actual
amounts 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 September
30, 2021.2022.
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: December 21, 2021October 31, 2022