Shoshone Silver/Gold Mining 10QSB 2005 Q1 Quarterly report (small business)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-QSB

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDEDMarch 31, 2005

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM __________________________ TO __________________________.

Commission File Number000-21623

SHOSHONE SILVER MINING COMPANY
(Exact name of registrant as specified in its charter)

Idaho	82-0304993
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1176 Big Creek Road, Ste E-106, Kellogg, ID 83837
(Address of principal executive offices) (Zip Code)

(208) 752-1070
(Registrant’s telephone number, including area code)

Check whether the issuer: (1) filed all reports required to be filed by section 13 or 15(d) of the Exchange Act 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 requirements for the past 90 days. Yes [ ] No [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [ ] No [X]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the
Exchange Act after the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ]

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable
date:

Class	Outstanding as of March 31, 2005
Common Stock ($0.10 par value)	17,393,797

Transitional Small Business Disclosure Format (check one): Yes [X] No [ ]

SHOSHONE SILVER MINING COMPANY

FORM 10-QSB
For the Quarter Ended March 31, 2005

TABLE OF CONTENTS

PART I - Financial Information

Item 1 - Financial Statements

We have provided the following information to our certifying independent accountants. We are filing this information prior to the completion of the accountant’s services under Regulation S-X Article 2. We expect to file amended filings after theses services are completed to correct this departure from the requirements of Regulation S-X Article 2.

Shoshone Silver Mining Company
Balance Sheets

		March 31,			December 31,
		2005			2004
		(unaudited)
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	79,094		$	251,683
Deposits and prepaid expenses		20,072			19,483
Supplies inventory		5,293			5,303
Other current assets		15,100			5,100
Total Current Assets		119,559			281,569

PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment		1,636,815			1,636,815
Accumulated depreciation		(1,095,816	)		(1,087,958	)
Total Property, Plant and Equipment		540,999			548,857

MINERAL AND MINING PROPERTIES		357,745			311,218

OTHER ASSETS
Notes receivable		93,214			93,214
Accrued interest		7,381			4,923
Investments		636,465			1,020,236
Total Other Assets		737,060			1,118,373

TOTAL ASSETS	$	1,755,363		$	2,260,017

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable	$	--		$	43,379
Accrued expenses and other liabilities		227,500			227,500
Short-term loan		--			--
Total Current Liabilities		227,500			270,879

COMMITMENTS AND CONTINGENT LIABILITIES

STOCKHOLDERS’ EQUITY
Common stock, $0.10 par value; 20,000,000 shares authorized; 17,393,797
shares issued and outstanding		1,739,380			1,739,380
Additional paid-in capital		2,966,756			2,966,756
Treasury stock		(26,834	)		(26,834	)
Stock options		12,221			12,221
Subscriptions receivable		(20,225	)		(20,225	)
Accumulated deficit		(3,524,106	)		(3,416,017	)
Accumulated other comprehensive income		380,671			733,857

Total Stockholders’ Equity		1,527,863			1,989,138

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,755,363		$	2,260,017

See accompanying condensed notes to interim financial statements.

Shoshone Silver Mining Company
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)

		Three Months Ended
		March 31,
		2005			2004


REVENUES
Sales	$	18		$	638
Total Revenues		18			638

COST OF REVENUES		11			--

GROSS PROFIT		7			638

OPERATING EXPENSES
General and administrative		44,664			70,059
Professional fees		12,251			12,010
Depreciation		7,858			7,858
Mining expenses		26,838			21,945
Total Operating Expenses		91,611			111,872


LOSS FROM OPERATIONS		(91,604	)		(111,234	)

OTHER INCOME (EXPENSES)
Net gain (loss) on sale of investments		(19,380	)		13,934
Lease income		--			5,100
Dividend and interest income		2,892			21
Gain on trading securities		--			--

Total Other Income (Expenses)		(16,488	)		19,055

NET LOSS		(108,092	)		(92,179	)

OTHER COMPREHENSIVE INCOME

Unrealized holding gain on investments		(353,186	)		597,176

NET COMPREHENSIVE INCOME (LOSS)	$	(461,278	)	$	504,997

INCOME (LOSS) PER COMMON SHARE – BASIC AND DILUTED	$	(0,027	)	$	0.033

WEIGHTED AVERAGE NUMBER OF COMMON STOCK SHARES
OUTSTANDING, BASIC AND DILUTED		17,393,797			15,293,209

See accompanying condensed notes to interim financial statements.

Shoshone Silver Mining CompanyConsolidated Statements of Cash Flows(Unaudited)

		Three Months Ended
		March 31,
		2005			2004

Cash flows from operating activities:
Net loss	$	(108,092	)	$	(92,179	)
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization		7,858			7,858
Net (gain) loss on sale of investments		19,380			(13,934	)
Net (gain) loss on sale of marketable securities		--			--
Common stock issued for services		--			12,250
Common stock issued on contract for mining properties		--			(542,500	)

Change in assets and liabilities:
Prepaid expenses		(586	)		(13,113	)
Inventories		10			--
Other current assets		(10,000	)		(49,822	)
Accrued interest		(2,458	)		(49,822	)
Accounts payable		(43,379	)		(5,542	)
Accrued expenses and other liabilities		--			561,524

Net cash provided to (used by) operating activities		(137,267	)		(135,458	)

Cash flows from investing activities:
Purchases of investments		(29,036	)		(146,749	)
Proceeds from sales of investments		40,241			20,383
Purchases of mining properties		(46,527	)		(25,014	)
		--			--

Net cash provided (used) by investing activities		(35,322	)		(151,380	)

Cash flows from financing activities:
Common stock issued for cash	$	--		$	636,775
Advances on short-term loan		--			1,200
Commissions paid on private placement offering		--			(63,677	)
Repayment of short-term loan		--			(17,100	)
Net cash provided (used) by financing activities		--			557,198

Net increase (decrease) in cash		(172,589	)		270,360
Cash, beginning of period		251,683			17,403

Cash, end of period	$	79,094		$	287,763

Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	--		$	--
Income taxes	$	30		$	50

Noncash investing and financing activities:
Common stock issued for mining properties		--			157,500
Treasury Stock issued for note receivable		--			20,225

See accompanying condensed notes to interim financial statements.

Shoshone Silver Mining Company
Condensed Notes to the Consolidated Financial Statements

1.	Basis of Presentation:
	The foregoing unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-QSB and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, these consolidated financial statements do not include all of the disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2004. In the opinion of management, the unaudited interim consolidated financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim periods presented.

	The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of Shoshone Silver Mining Company’s (“Shoshone’s”) financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of Shoshone’s financial position and results of operations.

2.	Summary of Significant Accounting Policies:
	This summary of significant accounting policies is presented to assist in understanding Shoshone’s financial statements. The financial statements and notes rely on the integrity and objectivity of the Company’s management. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

	Estimates:
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

	Going Concern

	As shown in the accompanying financial statements, the Company has had limited revenues and incurred an accumulated deficit of $3,524,106 through March 31, 2005. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management has established plans designed to increase the sales of the Company’s products. Management intends to seed additional capital from new equity securities offerings that will provide funds needed to increase liquidity, fund internal growth and fully implement its business plan. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

	An estimated $150,000 is believed necessary to continue operations and increase development through the next fiscal year. The timing and amount of capital requirements will depend on a number of factors, including demand for products and services.

3.	Investments
	Shoshone’s securities investments are classified as trading securities and are recorded at fair value as of the balance sheet date, with the change in fair value during the period included in earnings. The fair value of any investments in restricted stock as discounted 35%.

	The investments are summarized as follows:

				December 31,
		March 31, 2005		2004

Fair value of investments	$	636,465	$	1,020,236
Gross unrealized gain		380,671		733,857

Cost	$	255,794	$	286,379

4.	Commitments and Contingencies
	Shoshone is engaged in mineral mining and may become subject to certain liabilities as they relate to environmental cleanup of mining sites or other environmental restoration procedures as they relate to mineral mining and the operation thereof.

	Although the mineral exploration and mining industries are inherently speculative and subject to complex environmental regulations, Shoshone is unaware of any pending litigation or of any specific past or prospective matters which could impair the value of its mining claims.

Item 2 - Management’s Discussion and Analysis or Plan of Operation

SHOSHONE SILVER MINING COMPANY
Comparison of the Three Months Ended March 31, 2005 and 2004

This report contains forward-looking statements. For a discussion about such statements, including the risks and uncertainties inherent therein, see “Forward-Looking Statements.” Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Consolidated Financial Statements and Notes presented elsewhere in this report.

General

Shoshone Silver Mining Company (“Shoshone”) was incorporated under the laws of the State of Idaho on August 4, 1969, under the name of Sunrise Mining Company and is engaged in the business of mining. On January 22, 1970, the Company’s name was changed to Shoshone Silver Mining Company. The Company’s year end is December 31

Results of Operations

Overview. Shoshone recorded a net loss of $108,000, or $0.006 per diluted share, for the three months ended March 31, 2005, compared with a net loss of $92,000, or $0.006 per diluted share, for the three months ended March 31, 2004. The increase in net loss for the three months ended March 31, 2005, compared with the three months ended March 31, 2004 was primarily due to a decrease in other income partially offset by a decrease in operating expenses.

Other Income.Other income was a loss of $16,000 for the three months ended March 31, 2005 and an income of $19 thousand for the three months ended March 31, 2004. The decrease for the three months ended March 31, 2005, compared with the three months ended March 31, 2004 was primarily due to a decrease in net gain realized on sale of investments.

Operating Expenses. Operating expenses were $92,000 and $112,000 for the three months ended March 31, 2005 and 2004, respectively. The decrease in operating expenses was primarily a result of decreased general and administrative expenses partially offset by increased mining expenses.

Financial Position

Assets. At March 31, 2005, Shoshone’s assets were $1.8 million, up $0.5 million from $2.3 million at December 31, 2004.

Investments. Shoshone’s investment portfolio at March 31, 2005 was $636,000, a decrease of $400,000 from the December 31, 2004 balance of $1.0 million. The decrease was primarily due to decreases in fair values.

Mineral and Mining Properties. At March 31, 2005, mineral and mining properties were $358,000, up $47,000 from $311,000 at December 31, 2004. The increase was primarily due to the acquisition of two additional mining properties during the current quarter.

Accrued Expenses and Other Liabilities. Accrued Expenses and Other Liabilities remained at $228,000 at March 31, 2005 and at December 31, 2004.

Liquidity and Sources of Funds

During the three months ended March 31, 2005, cash used in investing activities consisted primarily of the purchase of mining properties and available-for-sale securities in the investment portfolio partially offset by proceeds from sales of available-for-sale securities. During the same period, there was no cash provided by financing activities.

Capital Resources

Shoshone’s total stockholders’ equity was $1.5 million at March 31, 2005 compared with $2.0 million at December 31, 2004. The decrease in total stockholders’ equity was primarily due to decreased accumulated other comprehensive income. Stockholders’ equity was 87.2% of total assets at March 31, 2005 compared with 88.0% at December 31, 2004.

At March 31, 2005, Shoshone had an unrealized gain of $381,000, net of related income taxes, on investments classified as available for sale. At December 31, 2004, Shoshone had an unrealized gain of $734,000, net of related income taxes, on investments classified as available for sale. Fluctuations in prevailing market values continue to cause volatility in this component of accumulated comprehensive income or loss in stockholders’ equity and may continue to do so in future periods.

Forward-Looking Statements

From time to time, Shoshone and its senior managers have made and will make forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are contained in this report and may be contained in other documents that Shoshone files with the Securities and Exchange Commission. Such statements may also be made by Shoshone and its senior managers in oral or written presentations to analysts, investors, the media and others. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Also, forward-looking statements can generally be identified by words such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “seek,” “expect,” “intend,” “plan” and similar expressions.

Forward-looking statements provide our expectations or predictions of future conditions, events or results. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. These statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made. There are a number of factors, many of which are beyond our control, which could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements.

Item 3 – Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Shoshone’s principal executive officer and principal financial officer are responsible for establishing and maintaining disclosure controls and procedures for Shoshone. Such disclosure controls and procedures are designed to ensure that material information relating to Shoshone are made known to the officers who must certify that they have evaluated the effectiveness of the disclosure controls and procedures within ninety days prior to the filing of the quarterly report. Shoshone’s certifying officers have concluded that as of March 31, 2005, the material information they use in evaluating Shoshone’s performance and operations has been effectively provided by Shoshone’s disclosure controls and procedures.

Changes in Internal Controls

There have not been any significant changes in Shoshone’s internal controls or in other factors that could significantly affect these controls subsequent to the date of the certifying officers’ evaluation. The certifying officers are not aware of any significant deficiencies or material weaknesses, therefore no corrective actions were taken.

PART II – Other Information

Item 4 - Legal Proceedings

None

Item 5 - Changes in Securities and Use of Proceeds

Not applicable.

Item 6 - Defaults Upon Senior Securities

Not applicable.

Item 7 - Submission of Matters to a Vote of Security Holders

Not applicable.

Item 8 - Other Information

Not applicable.

Item 9 - Exhibits and Reports on Form 8-K

(a)	Exhibit No.	Exhibit

3.1		Articles of Incorporation of Shoshone. (*)

3.2		Bylaws of Shoshone. (*)

4.1		Reference is made to Exhibits 3.1 and 3.2.

4.2		The Registrant has no outstanding long-term debt.

31.1		Certification of Principal Executive Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Principal Financial Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of Principal Executive Officer as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of Principal Financial Officer as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

(b)	Reports on Form 8-K. During the quarter ended March 31, 2005, there were no reports filed on Form 8-K.

*	Incorporated by reference to the Company’s Registration Statement on Form 10-SB, filed with the Commission on February 15, 2001, File No. 000-31965.

Signatures

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.

	SHOSHONE SILVER MINING COMPANY
	(Registrant)

November 27, 2006	By:	/s/ Lex Smith
Date		Lex Smith
		President
		and Chief Executive Officer


November 27, 2006	By:	/s/ Melanie Farrand
Date		Melanie Farrand
		Treasurer
		Financial Officer

Shoshone Silver/Gold Mining (SHSH) Inactive 10QSB2005 Q1 Quarterly report (small business)