SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (x)ANNAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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 ID#) incorporation 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 if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [] No [x] Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the act. Yes [] No [x] 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 preceding 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 has submitted electronically on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes[] No[x] Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K. Yes[x] No[] 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 [ ] Smaller reporting company [X] Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-d of the act). Yes [] No[x] As of December 31, 2021, 14,870,631 shares of Common Stock, par value $.033 per share, were issued and outstanding. PART I GENERAL NOTE In accordance with directive from the Securities and Exchange Commission(SEC) and Industry Guide 7, reference for all intent and purposes stating 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; however, the Company continues to produce gold over its 110 years of operating its mines in the Alleghany Mining district. During 2021, no time was spent detecting for and mining gold., Management placed rehabilitation/maintenance ahead of mining for gold. Operating capital came from a shareholder?s advances. Relations with federal and California regulators improved significantly during 2021. California is known for active environmental perspectives and advocates. Its reputation is global. Significant progress continues towards achieving lawful and reasonable interpretation of the Porter Cologne Act, the basis of water administration. In 2020, the five-year renewal for the permit was approved by the Central Valley Regional Water Control Board. The permit is binding to 2025 The Board of Directors reaffirmed its debt reduction plan to encourage private financial participation by a shareholder and present an improved balance sheet for others. SUBSEQUENT EVENTS Last summer and thru the fall the Company had the pleasure of going through an IRS audit for the years 2018 and 2019. This entailed giving them access to all bank accounts, submitting numerous documents and along with many written explanations. There were numerous emails, phone conversations and even a personal visit to the mine and mine office by the IRS Agent and her Supervisor. Most of the focus centered around the Net Loss Carryover being carried over year to year on the tax returns and how the COGS (Cost of Goods Sold) had been determined. COGS is simple for producers and retailers buy wholesale and sell at a markup. For us, this is perplexing with no way to calculate or predict future gold production. Farmers have it easier when figuring COGS: plant X acres with Y seeds producing Z amount of crop. A miner doesn?t know what he has until it is found. His COGS are the expenses of finding gold. All but the administration/ overhead costs are the mine?s operating expenses. We had a long and detailed discussion with the IRS Agent and her supervisor. Capitalizing mine expenses seemed the appropriate accounting methodology. To capitalize entails recording a cost or expense on the balance sheet, thus, delaying full recognition of the expense until production. Mine expenses are considered as ?work in progress? and put as an asset on the Balance Sheet The IRS agents thought the accounting method could be ?double- dipping? by using COGS and not capitalizing expenses. They asked for financial reports going back to the 1990?s. We gave them accurate reports for the last 10 years and that sufficed. Since the accounting was unfavorable, it is not viewed as intentional but a mistake. The $1,900 adjustment made to the 2019 return was immediately mailed to the IRS. There were no penalties assessed for the unwanted mistake. The IRS report titled ?Income Tax Examination Changes Letter ?arrived in May. The financial statements were incorrect for years and did not reflect the financial conditions of the corporation. The losses were over-stated and compounding in the Retained Earnings every year, not a true or good-looking asset value picture. The form also 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.? We adjusted our 2021 financial reports to reflect the changes. Financials before the year 2000 showed a capitalization of some mine expenses. In 2001 they were removed from the Balance Sheet and shown as an $800,000 loss. Ouch! Our financial reports have been overstating losses for the past 20 years making the Retained Earnings and Stockholder?s Equity all wrong. JUDICIAL EVENT Attempts to introduce the mine to established gold mining companies were not possible due to civil and criminal charges levied against the Company and president. In 2021, criminal charges were dismissed by Sierra County District Attorney, which took the prosecution from the California District Attorneys Association, a non-government corporation. Company accepted a forced settlement due to its lack of defense funds. ITEM 1: BUSINESS Description of Business Original Sixteen to One Mine, Inc. (the Company) was incorporated in 1911, in California. It mines gold on properties it owns under fee simple grant deeds. The Alleghany Mining District is about 65 miles northeast of the intersection of I-80 and California State Route 49. More than 1,113,280 troy ounces of gold were produced. It is a traditional, hard rock, underground mine. Miners create horizontal levels at various elevations and raises into favorable areas. Geology of the mineral deposit is well documented. Gold is not distributed evenly within the quartz veins. Concentrations of gold deposits are found scattered within the veins called ore shoots. The Company has never declared reserves according to industry definitions. The Company from time to time focuses substantially all of its resources on infrastructure development or maintenance. During these periods little gold is mined. At other times, miners primarily work for gold. Business is subjected to cycles. The operation resembles the classical "boom or bust" cycles regardless of outside influences. For accounting purposes gold recovered 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. Supplies and equipment used for mining are commonly available. Labor requirements are available but are a concern throughout the mining industry. Company is in compliance with all applicable federal, state and local laws and regulations relating to the environment. ITEM 1A RISK FACTORS (a) Price of Gold The daily spot price of gold has modest financial effect on gross revenue if it's between $1,700 and $1,800 an ounce. A significant drop below $1,700 may have an adverse effect on the Company's revenue. Closing spot price on December 31, 2021, was $1,820.10. (b) Lack of Proven Reserves Because proven reserves are not utilized as a component for evaluating future earnings or assets, a sense of uncertainty is perceived. Caution is recommended when using the doctrines of reserves as an economic tool for evaluations. While (i) the Company has recovered over one million ounces of gold and (ii) substantial additional virgin veins exist, it has no ability to measure potential gold production using the mathematical tools generally recognized in the mining industry. (c) Governmental Regulation The attached financial statements are unaudited. Therefore, the Company is not in full compliance with the SEC regulation for companies listed on an exchange. The Company is in compliance with all known safety and environmental standards and regulations. (d) Liquidity A buy market for gold is global and a spot price per ounce is always available. (e) Price of Stock Bids and offers are publicly recorded on the stock page of the Company's web site. Exposure is negligible. The Company maintains no program to support or promote its stock. A per share price document exists for shareholders listed on the October 2021, shareholder list at $1.00 per share until March 31, 2023. ITEM 2: PROPERTIES Properties Sixteen to One Mine was located in 1896, incorporated into Original Sixteen to One Mine, Inc. in 1911. Properties acquired prior to 1925 are carried on the Company's books at the purchase price and are fully amortized. No corporate funds were spent on unpatented mining claims during 2021. On September 1, 2020, the company hand delivered check number 15699 for $2,610.00 to the Bureau of Land Management (BLM) for unpatented claims fees. BLM misplaced the check which created a loss of all unpatented claims. The Company?s fight to mitigate this was unsuccessful. The Alleghany properties consist of 25 patented claims. PATENTED MINING CLAIMS OWNED 100% BY THE COMPANY NAME OF CLAIM NAME OF CLAIM Belmont				Rainbow Fraction Number Three 	Twenty-One Eclipse Quartz Eclipse Extension Tightner Extension Contract Alene 		Valentine Red Star 		Bartlett Farnham Gold Quartz Mine Belmont #2 Contract Extension Hanley Quartz Mine Noble 		Sixteen to One Groves Gold Quartz Mine Denver Happy Jack Extension Ophir Rainbow Extension 	Happy Jack Sphoon ITEM 3: LEGAL PROCEEDINGS As of December 31, 2021 there are no legal proceedings. ITEM 4 MINE SAFETY DISCLOSURES For the twelve-month period ended December 31, 2021, no citations were issued by the Mine Health and Safety Administration (MSHA). PART II ITEM 5: MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS Market Information There is limited public marketplace for common stock. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter High Low High Low High Low High Low ------ ----- ------ ----- ------ ----- ------ ----- 2021 NO TRADES ON XMART FOR 2021 2020 NO TRADES ON XMART FOR 2020 2019 NO TRADES ON XMART FOR 2019 * No trades took place on the Company website in these quarters. An unrelated company solicited the purchase of shares from specific shareholders at a price of $1.00 per share. The names of shareholders and number of shares purchased are unknown. ITEM 6: SELECTED FINANCIAL DATA Year	 2021	 2020 2019	 2018 2017 ---- ---- ---- ---- ---- Sales 91,853 90,225 228,286 204,570 287,212 Income(loss)(63,591) (173,578) (230,933) (359,736) (429,965) Income(loss) per share (.004) (.012) (.016) (.025) (.03) Total Assets1,161,724 718,555 707,948 862,814 1,127,813 TotalLiab 2,574,515 2,245,939 2,230,279 2,152,912 2,062,927 S.H.Equity(1,412,791)(1,527,384)(1,522,331)(1,290,098) (935,114) ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION The 2021-year financial analysis has no value due to the mandate by the Federal Internal Revenue Service (IRS) to change the Company?s internal accounting methods. See SUBSEQUENT EVENTS for details. Mining and developmental operations and expenses changed for management during the third and fourth quarters of the year. By years end directors and officers realized that control would be passing to a different entity. Original Sixteen to One Mine, Inc. is a distinct company. It is the only known operating company of its kind remaining in the United States. The assets of the Company are understated due to the age of acquisition. Exploration and development expenses are now capitalized instead of expensed. The Company celebrated its 110-year anniversary on Oct. 9, 2021. No value is recorded on the balance sheet for timber. No value is recorded on the balance sheet for water-rights. Reduced value is recorded on the balance sheet for buildings, equipment and land. No value is recorded on the balance sheet for marketable aggregates. No value is recorded on the balance sheet for goodwill. The operation over the past four years was focused on rehabilitation of the underground working in order to access the lower levels of the mine which are under water. Balance Sheet Comparisons Assets: For the one-year period ended December 31, 2021, compared to the one-year period ended December 31, 2020, cash decreased by $17,020 (78%) due to cash flow variations. Accounts receivable increased by $71,789 (57%). For the one-year period ended December 31, 2021, compared to the one-year period ended December 31, 2020 Total Assets increased by $443,169 (39%) due to capitalizing mine expenses as directed by the IRS auditors. Liabilities: For the one-year period ended December 31, 2021, compared to the one-year period ended December 31, 2020, accounts payable increased by $93,891 (7%) as the company relied on loans to finance the operation. For the one-year period ended December 31, 2021, compared to the one-year period ended December 31, 2020, short-term and related party notes increased by $234,745 (23%) due to a combination of additional loans from related party and payment of one short- term loan. Statement of Operations Income: Total revenues increased by $1,628 due to finance charges being accrued on an Accounts Receivable account. Operating Expenses: For the one-year period ended December 31, 2021, compared to the one-year period ended December 31, 2020, operating expenses decreased overall by $79,559 (30%) due to reduced operations in 2021, and capitalizing mine contract labor, mine supplies, and mine maintenance. The company showed a loss of $63,591 in 2021 compared to a loss of $173,578 in 2020. The $109,987 (64%) difference is primarily due to capitalizing mine expenses. Operations increased in 2021 compared to 2020. The basic and diluted loss per share was (.04) in 2021 compared to (.012) in 2020. The number of shares used for the 2021 calculation was 14,870,631 and the number of shares for the 2020 calculation was 14,390,631. Other Income and Expense: For the one-year period ended December 31, 2021, compared to the one-year period ended December 31, 2020, other income increased by $29,600 (87%) due to Covid PPP loan being forgiven. ITEM 7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The Company may make written and oral forward-looking statements about matters that involve risks and uncertainties that 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 and political conditions - Unexpected geological conditions or rock stability conditions resulting in cave-ins, flooding, rock-bursts or rock slides - - - Environmental risks - Changes in laws and government regulations, especially those relating to taxes and the environment - The availability and timing 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- Force majeure events. The above factors are beyond the Company's ability to control or predict. ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The unaudited financial statements of the Company are attached at the end of this document. ITEM 9: CONTROLS AND PROCEDURES When mining for gold production, security procedures include multiple levels of gold custody, from the mine to sales. Inventory control procedures established by SEC certified auditing firm. PART III ITEM 10: DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT Officers and Directors The following table sets forth the Officers and Directors of the Company. The directors listed below will serve until the next annual shareholders meeting to be held at a later date still to be determined. All of the officers of the Company serve at the pleasure of the Board of Directors. Name Age Position Officer Since Director Since Michael M. Miller 79 President 1983 1977 & Director Hugh Daniel O'Neill 79 Secretary 2016 Robert Besso 69 Treasurer 2016 2016 & Director Scott K. Robertson Director 2021 Mr. Miller is responsible for the day-to-day operations of the Company. In 1975, Mr. Miller became the sole proprietor of Morning Glory Gold Mines. Prior to that, he was self-employed in Santa Barbara County, California from 1965 to 1974. Mr. Miller served as a trustee and President of the Sierra County Board of Education (1979 to 1983 trustee) (President in 1983). In 1991 he was appointed a member of the Sierra County Planning Commission: Chairman in 1992, 1993, 1999 and 2000. He is licensed as a California Class A general engineering contractor. He was a member of the American Institute of Mining Engineers. In 1965, he received a B.A. from the University of California at Santa Barbara in combined Social Sciences-Economics. He was born in Sacramento, California. Hugh Daniel O'Neill III ~ Secretary Mr. O'Neill was born in 1942. He attended the University of San Francisco, where he created Odd Bodkins in 1961. The San Francisco Chronicle syndicated Odd Bodkins in 1963 making him the youngest cartoonist ever hired by a national syndicate. He is an historian, an accomplished journalist and a former War Correspondent. Robert Besso ~ Director, Treasurer Robert John Besso was born in Sacramento. Just out of high school, he drew draft # 32 and joined the US Army. Once in Vietnam he was promoted to Sargent at age 19. He took POINT for nine months in the Vietnam battlefields. In 1971 he was decorated with two bronze stars: oak leaf cluster and V for valor. He declined the offer to continue his military career at West Point. Robert cuts hair and serves our country working with Alcoholics Anonymous, Jail and Prison inmates, Boys Ranch and Teen Substance addiction groups. Scott K. Robertson. Director Scott has been active in the Company since 1984 as an outside accountant. He served years as a director and treasurer and was reelected a director in 2021. He received his bachelor?s degree in Business Economics in 1981 from the UC Santa Barbara campus and his CPA certificate in 1986. ITEM 11: EXECUTIVE COMPENSATION Name/ Principal Annual Position Year Salary Bonus Compensation Securities --------- ------ ------ ----- ------------ ---------- Michael Miller/ 2021 $ 60,000 0 0 	 0 President & CEO 2020 $ 60,000 0 0 	 0 ITEM 12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT Security Ownership of Certain Beneficial Owners and Management Title of Name and Address Amount and Nature Percent Class of Beneficial Owner of Beneficial Owner of Class ------- ------------------- ------------------- -------- Common Michael M. Miller 2,123,597 15% Officer and Director P.O. Box 941 Alleghany, CA 95910 Common M. Blair Hull 1,962,822 14% Hull Trading Co. 401 So. LaSalle, Ste. 505 Chicago, IL 60605 Common Kathy N. Hull 1,490,250 10% 11 Sierra Ave. Piedmont, CA 94611 Common Charles I. Brown Family Partnership LTD 833,668 6% 29922 N 133rd Lane Peoria, CO 85383 Common Hugh Daniel O'Neill 183,077 2% Secretary 227 Prospect St. Nevada City, CA 95959 Scott K. Robertson 153,442 1% Common 12391 Deer Park Drive Nevada City, CA 95959 Common Robert Besso 47,700 1% .1% Director - Treasurer PO Box 909 Alleghany, CA 95910 Common All Officers & Directors 2,2507,816 17% (As a group) ITEM 13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS Directors Meeting July 23, 2021 Motion from Robert Besso Seconded by Hugh Dan O?Neill Whereas Director and President, Michael Meister Miller, committed years at an industry low salary, served our Company, mine and shareholders with countless sacrifices, provided notices to shareholders and the public, we move and approve his transfer of ownership of the inactive Plumbago mine to himself. This decision is in appreciation of his contributions and services to Original Sixteen to One Mine, Inc. It is a grateful gift to a man who deserves it. Robert Besso: aye Hugh Dan O?Neill: aye Michael Miller: abstain. Respectfully submitted, Hugh Daniel O?Neill, Secretary ITEM 14: PRINCIPLE ACCOUNTING FEES AND SERVICES The Company has not hired a SEC certified CPA firm for years. Most accounting functions are performed by the Company in-house with the exception of the depreciation schedule and tax returns which are handled by outside CPA firms. PART IV ITEM 15: UNAUDITED FINANCIAL STATEMENTS 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 December 31, 2021, and December 31, 2020, the results of operations and cash flows for the twelve-month periods ended December 30, 2019, 2020 and 2021. The unaudited financial statements have been prepared in accordance with Generally Accepted Accounting Principles. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized. ORIGINAL SIXTEEN TO ONE MINE, INC. Registrant By: Michael M. Miller President and Director Date July 12, 2022 Original Sixteen to One Mine, Inc. Condensed Balance Sheet December 31, 2021 & December 31, 2020 ASSETS Current Assets Cash $ 4,802 $21,822 Accounts receivable 127,564 55,775 Inventory 130,438 309,425 Capitalized Expense 604,044 - ------- ------- Total current assets (see Note 1) 866,848 387,022 ------- ------- Mining Property Real estate and property rights net of depletion of $524,145 230,401 Mineral property 47,976 47,976 ------- ------- Total Mining Property (see Note 2) 278,377 278,377 ------- ------- Fixed Assets at Cost Equipment 597,602 597,602 Buildings 209,487 209,487 Vehicles 168,925 168,925 --------- --------- Total fixed assets at cost 976,014 976,014 --------- --------- Less accumulated depreciation (963,606) (937,727) ----------- ----------- Net fixed assets 12,408 38,287 ----------- ----------- Other Assets Bonds and misc. deposits 4,091 14,869 --------- ------- Total Assets $1,161,724 $ 718,555 ========== ========== ? Original sixteen to One Mine, Inc. Condensed Balance Sheet Continued LIABILITIES & STOCKHOLDERS' EQUITY 2021 2020 Current Liabilities Accounts payable & accrued expenses (see Note 3) $ 1,417,728 1,323,897 Due to related party (see Note 4) 515,993 286,248 Notes payable Short-term (see Note 6) 543,558 538,558 --------- ------- Total Current Liabilities 2,477,279 2,148,703 -------- ------- Long Term Liabilities Notes payable due after one year (see Note 7) 97,236 97,236 ---------- -------- Total Liabilities 2,574,515 2,245,939 ---------- --------- Stockholders' Equity Capital stock, par value $.033: 30,000,000 shares authorized: 14,870,631 issued and outstanding as of Dec. 31, 2021 & 14,390,631 as of Dec. 31, 2020(see Note 8) 490,731 474,891 Additional paid-in capital 2,446,044 2,222,892 (Accumulated deficit) Retained earnings (4,349,566) (4,225,167) ------------ ----------- Total Stockholders' Equity (1,412,791) (1,527,384) ------------ ----------- Total Liabilities and Stockholders' Equity $1,161,724 $718,555 ============ ============ ? Original Sixteen to One Mine, Inc. Statement of Operations 2021 2020 2019 Revenues: Gold & jewelry sales 34,188 90,225 228,286 Other Income 57,665 - - --------- -------- -------- Total Revenues 91,853 90,225 228,286 Operating expenses: Salaries and wages 60,000 58,024 60,000 Contract Labor 35,828 51,234 163,855 Utilities 23,388 72,502 85,829 Taxes - property 11,720 19,754 18,028 Insurance 8,736 3,363 5,275 Supplies 4,429 4,259 17,560 Small equipment & repairs 7,719 7,288 9,981 Drayage (249) 6,451 15,993 Corporate expense 11,625 12,975 11,767 Legal and compliance 11,894 17,586 15,652 Mine Maintenance 1,315 2,434 14,111 Depreciation & amortization 2,384 9,767 18,573 Other expenses 9,455 2,166 7,811 -------- -------- -------- Total operating expenses 188,244 267,803 444,435 Profit (Loss) from operations (96,391) (177,578) (216,149) Other Income & (Expense): Other Income 34,400 4,800 2,800 Interest Expense - - (15,277) Other expense - - (1,507) --------- -------- --------- Total Other Income (Expense) 34,400 4,800 (13,984) Profit (Loss) before taxes (61,991) (172,778) (230,133) Provision for income taxes 1,600 800 800 Net (loss) income $ (63,591) (173,578) (230,933) ========== ========== ========= Basic and diluted gain (loss) per share $(.004) $(.012) $(.016) Shares used in the calculation of net(loss) income per share 14,870,631 14,390,631 14,390,631 ========== ========= ========= ? Original Sixteen to One Mine, Inc. Statement of Cash Flow For the Years Ended December 31, 2021 2020 2019 Cash Flows From Operating Activities: Net profit (loss) $ (63,591) (173,578) (230,933) Operating activities: Depreciation and amortization 2,384 9,767 18,573 Decrease (Increase) in accounts receivable (71,789) 750 29,501 Decrease (Increase) in inventory 179,344 (3,734) 123,638 (Decrease) Increase in accounts payable accrued expenses (522,397) 34,442 66,859 (Decrease) Increase in related party loans 237,850 38,336 (411) (Decrease) Increase in short-term notes - - - -------- ------- --------- Net cash (used) provided by operating activities (237,514) (94,017) 7,227 Cash Flows From Investing Activities: Sale (Purchase) of Real Estate - - - Write-off (Purchase) of fixed assets - - (3,450) Decrease (Increase) Bonds Misc. deposits 10,779 - 6,591 --------- -------- -------- Net cash (used) provided by investing activities 10,779 - 3,141 Cash Flows From Financing Activities Increase (Decrease) notes payable (29,600) 111,406 (9,231) Proceeds from sale of common stock 15,840 - - Paid in Capital from Shareholders 224,160 - - -------- -------- -------- Net cash provided (used) by financing activities 210,400 111,406 (9,231) (Decrease) increase in cash (17,020) 17,389 1,137 Cash, beginning of period 21,822 4,433 3,296 ------ ------- -------- Cash, end of period $ 4,802 21,822 4,433 ========= ========= ======== ? NOTES TO THE FINANCIAL STATEMENTS 1. 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 a gold mine in Alleghany, California. 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). Fixed Assets: Fixed assets are stated at historical cost. Depreciation is calculated using straight-line and accelerated methods over the following useful lives: Vehicles 3 to 5 years, Equipment 5 to 7 years, Buildings 18 to 31.5 years. Depletion Policy: Because of the geological formation in the Alleghany Mining District, estimates of ore reserves cannot be calculated. 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, no depletion deduction will be recorded. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates 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 could differ from these estimates. ? 2. PROPERTY The company's original property is carried at the 1924 value of $628,662 and has been fully amortized through depletion charges of $524,145. Other properties included in the "real estate and property rights" category are a lot purchased in 1984 for $1,000, Surface rights purchased at the townsite auction in 1996 for $76,574 and $48,310 for the Sphoon Mine which is patented 3. ACCOUNTS PAYABLE & ACCRUED EXPENSES Accounts payable and accrued expenses was $1,417,728 at December 31, 2021. This balance includes $931,091 in accrued wages owed to Michael Miller 4. NOTES PAYABLE RELATED PARTIES Notes payable related parties at December 31, 2021, of $515,993 consists of a $11,400 customer deposit for gold/quartz slab material when it becomes available. Michael Miller?s note payable is $504,593. 5. RELATED PARTY TRANSACTIONS See Item 13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS 6. NOTES PAYABLE SHORT-TERM Notes payable short-term of $543,558 at December 31, 2021 consists of a $500,000 interest-free line of credit as well as accrued interest on a previous loan. There is no specific due date on these loans which are convertible to stock at $1.00 per share. 7. NOTES PAYABLE Notes payable due after one-year totaling $97,236 consists of the balance remaining on the mortgage for the Gold Crown Mine of $97,236. 8. STOCK Capital authorized: 30,000,000 non-assessable shares of common stock, par value $.033. Issued and outstanding: 14,870,631 shares of common stock. With approx. 3 million of the total restricted. Restricted common stock cannot be sold within two years of the issuance date. After the required holding period, the shareholder can take steps to remove the indicated restriction. 19