SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A10-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, 20172020
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.)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 defintivedefinitive 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 "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, 2017, 14,338,8552019, 14,390,631 shares of Common Stock, par
value $.03$.033 per share, were issued and outstanding.
PART I
GENERAL NOTE
In accordance with directive from the Securities and Exchange
Commission
(SEC)Commission(SEC) and Industry Guide 7, reference for all intent
and purposes tostating 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
isreserves; however, the
Company continues to produce gold over its 110 years of
operating its mines in the "exploration state"Alleghany Mining district. Proceeds
from the annual production for 2015 and 2016 realized profitable
years. Gold production in 2018 2019 and 2020 was minimal as
definedmanagement directed the crew to begin a tough but significant
project December 2017: reestablish the 49 WINZE for mining. Work
continued through 2020, as planned. The 49 WINZE, access to the
deep levels of the Sixteen was abandoned in Guide 7(a)(4)(iii).2005. The winze is
the vital component for resuming profitable gold production on
established gold headings.
?
In addition, safe travel was secured and approve by the federal
regulatory agency known as MSHA in the winze to the 1700 foot
level. Another primary goal included lowering the water. As of
December 31, 2020, the water is 10 feet below the 1900 level.
During 2020, very little time was spent detecting for and mining
gold. With the prior profitable year, management decided to
place rehabilitation/maintenance ahead of mining for gold.
Operating capital came from inventory and recent production,
which were sold to preexisting markets.
In addition to significant underground improvements, relations
with federal and California regulators improved significantly
during 2020. 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.
SUBSEQUENT EVENTS
In 2021, the five year renewal of the Company was approved by
the Central Valley Regional Water Control Board.
The Board of Directors established a debt reduction plan to
reduce its liabilities to Company shares in 2020. The results
will be confirmed in the 2021 2nd Quarter 10Q.
JUDICIAL EVENT
In 2020, the Company and President were cited for four criminal
pollution violations. Neither authorized the placement of toxic
material in a pit prepared for a small amount of worthless
metal. The Company and President are currently defending the
allegations.
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 inunder fee simple or on which it
has claims in thegrant deeds. The Alleghany Mining
District is about 65 miles northeast of the intersection of I-80
and California State Route 49.
The primary operation is the Sixteen to One mine from which moreMore than 1,113,1651,113,280 troy ounces of gold have been retrieved since the mine commenced operation in
1896.were produced. It is a
traditional, hard rock, underground mine where minersmine. Miners create
horizontal levels at various elevations and raise into favorable
areas. The
geologyGeology of the mineral deposit is well documented. Gold
is not distributed evenly within the quartz veins; however, concentrationsveins.
Concentrations of gold deposits are found scattered within these quartz veins. Because the
gold appears
intermittently, theveins called ore shoots. The Company has never declared reserves
according to contemporary industry standards. Most mining is exploration.
Operations are characterized by significant amounts of preparation, tunneling,
underground property maintenance and upgrading, all of which are necessary to
permit access to and extraction of gold.definitions.
The Company from time to time focuses substantially all of its
resources on infrastructure development and
maintenance, and duringor maintenance. During
these periods little gold is mined. At other times, miners
are primarily exploringwork for gold. Accordingly, businessBusiness is subjected to two very different cycles, one dependent on whether the Company is directing
its resources towards infrastructure or underground development and the other
as a function of gold production.cycles. The
operation resembles the classical "boom or bust" cycles
regardless of outside influences.
Metal detection technology enables exploration to detect gold from zero to 48
inches from quartz faces in the wall rock. (The size of the concentration is a
factor). The Company works with others interested in developing new
technologies for deeper penetration. These arrangements allow the Company to
benefit from research activities without incurring the full costs associated
with research and development.
Advancement in metal detection technology has steadily progressed over the past
twenty years. Greater sensitivity in metal detection has historically
increased gold production throughout the mine. Since the Company lacks the
funds to carry forth scientific research, it is impossible to predict when a
new device will be developed; however, the hardware used in advanced gold
detection has continued to improve. In September 2012, the company completed
negotiating a service agreement with a technology start-up company based in
Silicon Valley, California. To-date it has failed todeliver on its
representations to the Company.
For accounting purposes gold revenues are accrued when the metal
has beenis recovered. For tax purposes revenues are not recognized until
the gold is sold. Rare highgradehigh-grade gold and quartz is sold at a
premium to museums, collectors and jewelry manufacturers. This
market has becomecreates a significant financial factor since its beginning in 1993.event with revenues
significantly greater than prevailing spot price. Demand for the
Sixteen to One gold quartz gemstone is currently greater than the amount mined.
The Company lacks sufficient funds to implement long-term construction projects
to increase mining efficiency. Sinking a new shaft in the center of the
property is one project. Other mining related projects are: joining a public
stock exchange, building and testing a gold detector specifically designed for
the Sixteen to One vein and dewatering the levels that were left to flood.current supply.
Supplies and equipment used for underground explorationmining are commonly available.
Labor requirements are available. The Company believes that withinavailable, and are a concern throughout
the Sixteen
to One mine substantial exploration opportunities exist.mining industry.
No particular seasonality exists for the marketing of gold.
Business is not
seasonal except for the adverse effectAdverse effects of winter storms onsometimes limit the ability of
the crew to access the mine. Management believes itCompany is in substantial compliance with all
applicable federal, state and local laws and regulations
relating to the environment.
The Company does not presently anticipate any material
capital expenditures for environmental control facilities, either for the
remainder of its current fiscal year or for the succeeding fiscal year.
The Company's executive office is located at 527 Miners Street,
Alleghany, California 95910. It maintains a website: origsix.com.two websites:
origsix.com and original16to1.com.
ITEM 1A RISK FACTORS
(a) Price of Gold
The daily spot price of gold has a modestno financial effect on gross
revenue if it's between $1,000$1,700 and $1,300$1,800 an ounce. A
significant drop below $1,000$1,700 may have an adverse effect on the
Company's operation. Orerevenue. Closing spot price on December 31, 2020, was
$1,803.28. The Company's realized gold inventory usually exceeds
the bullion price due
to its value in the jewelry and specimen markets which are not significantly
affected by the spot price of gold.price.
(b) Lack of Proven Reserves
Because proven reserves are not utilized as a component for
evaluating future earnings or ore values,assets, a sense of uncertainty of existence is
perceived by
some.perceived. Caution is recommended inwhen using the doctrines of
reserves as an economic tool for valuing the Sixteen to One mine.evaluating. While (i) the
Company has recovered over one million ounces of gold and (ii)
management knows that substantial additional virgin veins
exists, in the Sixteen to One mine, the Companyit has no ability to measure potential gold production
using the mathematical tools generally recognized in the mining
industry; however,industry. The Company knows visible gold shows in three
locations on the company can prove
that approximately seventy percent (70%) of its vein system has not been
developed.2400 foot level.
(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.
Mining is generally subjected to regulation by state and federal authorities.
State and federal statutes regulate environmental quality, safety, exploration
procedures, reclamation, employees 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 reoccuring
unreasonable and unlawful demands from the Central Valley Regional Water
Quality Control Board or its 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 a material adverse effect.regulations.
(d) Liquidity
Gold inventory at December 31, 2017, was $652,228 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 institutional debt financing. Management
addresses these issues as they arise.highly liquid.
(e) Price of Stock
Bids and offers are publicly recorded on the stock page of the
Company's web site. 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 companyCompany
currently maintains no program to support or promote its stock and is unlikely to conduct a program until a public
marketplace is secured.
There are conflicting bids, offers and trades between the Company's website
and the unregulated Pink Sheet Gray Market, ticker symbol OSTO. Because of
these discrepancies the market price is unpredictable.stock.
ITEM 2: PROPERTIES
Properties
The 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 their
original purchase price and are fully amortized through
depletion.
In 1999, the Company acquired the Plumbago mine in the Alleghany
Mining District, which is located approximately two miles southeast of the
Sixteen to One mine. The property includes a twenty-acre patented claim, mineral rights to
eight patented claims and sixteen unpatented claims. The property has a history of rich gold
production. The Company will pursue the potential within this
property when funding becomes available for exploration and development.
On June 22, 2005, the Company acquired the mineral rights to fourteen claims,
the patent rights to one claim and the mill of the Gold Crown mine, adjacent to
the Sixteen to One Mine.mine. The
Board of Directors decided that it is a long-term investment and
important to the long-term welfare of the Company.
No depletion has been applied to the Gold Crown or Plumbago properties.
The Alleghany properties consist of 26 patented claims (470
acres), 160 acres of mineral rights on patented claims and
approximately 320 acres of unpatented claims. The following
table sets forth further information with respect to the
Company's mining 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
Marion Lode Sphoon
MINERAL RIGHTS - PATENTED CLAIMS
NAME OF CLAIM NAME OF CLAIM
Standard Lode Standard Lode Extension
Gold Beater Lode Clute Lode
Hope Extension Lode Crafts Lode
Plumbago Mine Mill Site Enterprise Quartz
UNPATENTED CLAIMS
NAME OF CLAIM NAME OF CLAIM
Alice Alice Annex
General Sherman N. Ext.N.Ext. Jumbo
No Better No Better Ext.
Right Place Wonder #1
Wonder #2 Wonder Goldmines MS
Tightner #2 Lode Tightner #3 Lode
Tightner #4 Lode Tightner #5 Lode
Tightner #6 Lode Alene Ext. Quartz
Bartlett Ext. Quartz Illocano Quartz
East Bartlett Lode Bal Quartz
Standard Lode Standard Lode Extension
Gold Beater Lode Clute Lode
Hope Extension Lode Crafts Lode
Plumbago Mine Mill Site Enterprise Quartz
ITEM 3: LEGAL PROCEEDINGS
Both 104(b) orders issued in 2016 included in the Mine Safety Discosures for
the 2016 10-K were dismissedSee subsequent events on November 22, 2017; MSHA Docket # West
2017-0173. This docket also included ten citations which were also dismissed on
the same date.
Formal notification was sent to the State Water Resources Control Board on
January 8, 2018, as required to conduct a public hearing with the State Water
Resources Control Board. "OPERATOR requests a hearing with you to present new
evidence, seek answers to our questions of staff and challenge misinformation
in a hearing held by the Central Valley Regional Water Control Board (CVRWQCB)
on December 8, 2017. We are also confident that evidence presented by staff to
the board members is inconsistent with California laws regarding relevant water
issues. We received a copy of the result of the hearing by mail dated 14
December 2017, attached to this letter. We challenge this decision."
The full request is publically recorded at www.origsix.com on the FORUM
(topic Water and Arsenic: which came first on 01/26/2018)page 3
ITEM 4 MINE SAFETY DISCLOSURES
For the twelve monthtwelve-month period ended December 31, 2017, a total of 102020, no
citations
with a total assessed value of $3,184 were issued toby the mine operator. All
except for one have been contested.
During the same 12 month period there was one 104(a) S&S citationMine Health and no 104(b)
orders.Safety
Administration (MSHA).
PART II
ITEM 5: MARKET FOR THE REGISTRANT'S COMMON EQUITY
AND RELATED STOCKHOLDER MATTERS
Market Information
Currently there is no public marketplace for the Company's
common stock. Data from 2013 through 20172020 is based upon activity
on the X-Mart posted on the Company's web-site.
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
High Low High Low High Low High Low
------ ----- ------ ----- ------ ----- ------ -----
2020 NO TRADES ON XMART FOR 2020
2019 NO TRADES ON XMART FOR 2019
2018 NO TRADES ON XMART FOR 2018
2017 $ .52 $ .52 $ * $ * $ .49 $ .49 $ .49 $ .49
2016 * * * * * * .52 .52
2015 * * .44 .44 .56 .56 * *
2014 * * .46 .54 * * .42 .42
2013 .89 .89 .86 .65 * * * *
2012 .49 .49 .49 .49 * * * *
2011 * * .55 .55 * * * *
2010 * * .89 .45 * * .55 .50
2009 .60 .45 * * .40 .40 .45 .60
2008 .89 .75 .89 .75 * * * *
* No trades took place on the Company website in these quarters.
ITEM 6: SELECTED FINANCIAL DATA
Year 2020 2019 2018 2017 2016 2015 2014 2013
---- ---- ---- ---- ----
Sales 90,225 228,286 204,570 287,212 1,452,169
1,037,972 230,899 300,923
Income(loss)(173,578) (230,933) (359,736) (429,965) 610,160 76,443 (495,063) (227,097)
Income(loss)
per share (.012) (.016) (.025) (.03) .04
.01 (.04) (.02)
Total Assets 718,555 707,948 862,814 1,127,813 1,537,443
1,757,262 752,221 742,034
Total DebtLiab.2,245,939 2,230,279 2,152,912 2,062,927 2,042,593
3,060,443 2,131,844 1,626,594
SH Equity (1,527,384) (1,522,331)(1,290,098) (935,114) (505,150) (1,303,181) (1,379,623) (884,560)
ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
Balance Sheet
Original Sixteen to One Mine, Inc. is a distinct company in that itcompany. It is
the only operating company of its kind remaining in the United
States. Management knows that the assets of the Company are
understated due to the age of acquisition. Exploration and
development expenses are not capitalized. The Company celebrated
its 100 year100-year anniversary on Oct. 9, 2011. It is the oldest gold
mining corporation in the United States. Gold inventory is
recorded 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.value.
No value is recorded on the balance sheet for timber. The
company owns 470 acres of prime forested timberland. No value is
recorded on the balance sheet for the Company owned water-rights.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 aggregate and decorative stone
currently stockpiled. No value is recorded on the balance sheet
for goodwill. Fixed assets are recorded at historic cost less
depreciation.
(A) Comparisons of 20172020 with 2016.2019.
Balance Sheet Comparisons
Assets:
For the one-year period ended December 31, 2017,2020, compared to the
one-year period ended December 31, 2016, Accounts Receivable decreased2019, cash increased by
$25,500 (24%$17,389 (392%)
primarily due to customer payments in 2017.cash flow variations. Accounts receivable
increased by $250 (.5%).
For the one-year period ended December 31, 2017,2020, compared to the
one-year period ended December 31, 20162019 inventory decreasedincreased by
$357,985 (35%$3,734 (1.2%) due to maintenance work onlychanges in 2017 (no gold production) combined withmining objectives in 2020 and
sales of inventory to fund the operation.operations.
Liabilities:
For the one-year period ended December 31, 2017,2020, compared to the
one-year period ended December 31, 2016 notes2019, accounts payable
related parties increaseddecreased by $25,350 (14%) mainly due$18,821 as the company relied on loans to finance
the return of some gold-quartz material that had
been applied against the shareholders loan in 2016. (See note 4 at the end of
these financial statements)operation.
For the one-year period ended December 31, 2017,2020, compared to the
one-year period ended December 31, 20162019, notes due related
parties increased by $89,200 (200%) due to a combination of
additional loans and interest expense.
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, long-term notes
decreased by $16,706 (12%$50,864 (25%) as a result of scheduled payments.
Statement of Operations
Income:
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, revenue decreased by
$138,061 (60%) primarily due to a reduction in mining and
increase in maintenance.
Operating Expenses:
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, operating expenses
decreased overall by $176,629 (40%) due to reduced operations in
2020.
Other Income and Expense:
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, other income increased
by $2,000 (71%) due to more rent collected on a company house.
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, other expenses
decreased by $16,784 (100%)primarily due to a reconciliation of
the stock account that was needed due to a discrepancy
accumulated by years of rounding.(par value $0.033)
The company showed a loss of $173,578 in 2020 compared to a loss
of $230,933 in 2019. The $57,355 (25%) difference is primarily
due to lower operating costs and reduced operations in 2020
compared to 2019. The basic and diluted loss per share was
(.012) in 2020 compared to (.016) in 2019. The number of shares
used for the 2020 calculation was 14,390,631 and the number of
shares for the 2019 calculation was 14,342,097.
(A) Comparisons of 2019 with 2018.
Balance Sheet Comparisons
Assets:
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, cash increased by
$1,137 (34%) due to cash flow variations. Accounts receivable
decreased by $10,651 (16%).
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, inventory decreased by
$123,638 (29%) due to changes in mining objectives in 2019 and
sales of inventory to fund operations.
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, equipment increased by
$3,450 due to the purchase of a pump.
Liabilities:
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, accounts payable
increased by $68,159 as the company relied on credit to finance
the operation.
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, notes due related
parties increased by $18,439 (7%) due to a combination of
additional loans and interest expense.
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, long-term notes
decreased by $9,231 (8%) as a result of scheduled payments with
no new loans taken out.
Statement of Operations
Income:
For the one-year period ended December 31, 20172019, compared to the
one-year period ended December 31, 2016,2018, revenue decreasedincreased by
$1,164,956 (86%$23,716 (11%) primarily due to noincreased gold productionsales in 2017 compared to 2016 which had production.2019.
Operating Expenses:
For the one-year period ended December 31, 2017,2019, compared to the
one-year period ended December 31, 2016,2018, operating expenses
decreased overall by $119,196 (15%$90,608 (17%) due to decreased activity and a smaller crewreduced operations in
2017.2019.
Other Income and Expense:
For the one-year period ended December 31, 2017,2019, compared to the
one-year period ended December 31, 20162018, other income increaseddecreased
by $1,311 (29%$1,795 (39%) and other
expenses did not change significantly.due to less rent collected on a company house.
For the one-year period ended December 31, 2017,2019, compared to the
one-year period ended December 31, 2016, interest expense2018, other expenses
decreased by $12,285 (31%$16,274 (50%)primarily due to lower loan balances in mosta reconciliation of
2017.the stock account that was needed due to a discrepancy
accumulated by years of rounding.(par value $0.033)
The company showed a loss of $429,965$230,933 in 20172019 compared to a profitloss
of $610,160$359,736 in 2016.2018. The $1,040,125 (170%$128,803 (36%) difference wasis primarily
due to maintenance work onlylower operating costs in 2017 (no gold production)2019 as the result of reduced
operations compared to 2016 which did have gold production.2018. The basic and diluted loss per
share was .03(.016) in 20172019 compared to a gain of .04(.025) in 2016. The number of shares used for both calculations was 14,338,855.
(B) Comparisons of 2016 with 2015.
Balance Sheet Comparisons
Assets:
For the one-year period ended December 31, 2016, compared to the one-year
period ended December 31, 2015, cash decreased by $533,706 (99%) primarily
due the use of cash to pay down the Company's debt in 2016.
For the one-year period ended December 31, 2016, compared to the one-year
period ended December 31, 2015 Accounts Receivable increased by $33,892 (47%)
due to increased sales on account in Dec. 2016 compared to 2015.
For the one-year period ended December 31, 2016, compared to the one-year
period ended December 31, 2015 inventory increased by $286,163 (40%) due to
gold production in 2016.
Liabilities:
For the one-year period ended December 31, 2016, compared to the one-year period
ended December 31, 2015 notes payable related parties decreased by $549,116
(76%) due to loan payments made to a shareholder as well as a conversion of
debt to stock for Michael Miller and directors.
For the one-year period ended December 31, 2016, compared to the one-year period
ended December 31, 2015 short-term notes decreased by $495,339 (48%) due to the
payment of a loan.
Statement of Operations
Income:
For the one-year period ended December 31, 2016 compared to the one-year period
ended December 31, 2015,revenue increased by $414,197 (40%) primarily due to
gold production in 2016.
Operating Expenses:
For the one-year period ended December 31, 2016, compared to the one-year
period ended December 31, 2015, operating expenses decreased overall by
$105,938 (12%). Most categories increased due to increased activity, but this
was offset by a decrease in Mine Maintenance and Compliance of $177,101 (74%)
in 2016 compared to 2015.
Other Income and Expense:
For the one-year period ended December 31, 2016, compared to the one-year period
ended December 31, 2015 other expenses and income did not change significantly.
For the one-year period ended December 31, 2016, compared to the one-year
period ended December 31, 2015, interest expense decreased by $20,560 (34%) due
to the pay-down of loans in 2016.
The company showed a profit of $610,160 in 2016 compared to a profit of $76,443
in 2015. The $533,717 (691%) difference was due to increased production in 2016.
The basic and diluted gain per share was .04 in 2016 compared to .006 in 2015.2018. The number
of shares used for the 20162019 calculation was 14,338,85514,390,631 and for 2015 the
number of shares outsandingfor the 2018 calculation was 13,399,505.14,342,097.
ITEM 7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
From time to time the Original Sixteen to One Mine, Inc. (the Company), willCompany may make 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 and political
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 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
Security procedures include multiple levels of gold custody,
from the mine to sales. Inventory control procedures were set up
by an SEC certified auditing firm and continue to be followed.
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 on June 16, 2018.August 31, 2019. 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 7578 President 1983 1977
& Director 1983 1977
Hugh Daniel
O'Neill 7578 Secretary 2016 2002
& Director
2016 2002
Robert Beso 6669 Treasurer 2016 2016
& Director 2016 2016
Michael M. Miller-Director, President and CEO
As President and Chief Executive Officer, 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) until 2001. Mr. Miller
is licensed as a California Class A general engineering
contractor. He was a member of the American Institute of Mining
Engineers. In 1965, Mr. Miller 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 ~ Director, Secretary
Mr. O'Neill was born April 21, 1942 at a naval base in Virginia.
He was raised in seventeen states over a fourteen-year period,
settling in Nevada City, California. He attended the University
of San Francisco, where he created Odd Bodkins in 1961. The San
Francisco Chronicle syndicated Odd Bodkins in 1963 making Mr.
O'Neill the youngest cartoonist ever hired by a national
syndicate. It was published in 350 newspapers. At its peak
readership was 50 million daily. Dan is an historian, an
accomplished journalist and a former War Correspondent.
Robert Beso ~ Director, Treasurer
Robert John Besso was born in Sacramento. Just out of high
school, he drew draft # 32 but joined the US Army 101st Airborne
Division where he was assigned to tanks. Once in Vietnam he was
promoted to Sargent at age 19 and took POINT for nine months. In
1971 he was decorated with two bronze stars (combat infantry
badges): oak leaf cluster and V for valor. He earned Soldier of
the Month and was the personal body guard for Officer Coast. He
declined the offer to continue his military career at West Point
and almost died from malaria. He returned to California
attending American River College and El Camino College.
Robert decided to cut hair which he has done for thirty-eight
years. He has continued to serve our country with 25 years
working with Alcoholics Anonymous, Jail and Prison inmates, Boys
Ranch and Teen Substance addiction groups. He has and continues
to take "point" to protect the things that he values. "Like
farmers and ranchers, the miners have value. The Sixteen to One
is a reality and will work to reduce the ignorance about
mining."
ITEM 11: EXECUTIVE COMPENSATION
Name/
Principal Annual
Position Year Salary Bonus Compensation Securities
--------- ------ ------ ----- ------------ ----------
Michael Miller/ 20172020 $ 60,000 0 0 0
President & CEO 20162019 $ 60,000 0 0 0
20152018 $ 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%
P.O. Box 1835
Edwards,29922 N 133rd Lane
Peoria, CO 8163285383
Common Hugh Daniel O'Neill 143,077 1%
Director - Secretary
227 Prospect St.
Nevada City, CA 95959
Common Robert Beso 7,500 .1%
Director - Treasurer
PO Box 909
Alleghany, CA 95910
Common All Officers & Directors 2,274,174 16%
(as a group)
ITEM 13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
See notes to financial statements.
ITEM 14: PRINCIPLE ACCOUNTING FEES AND SERVICES
Due to monetary constraints, the Company has not hired a SEC
certified CPA firm for several 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, 20172020, and December 31, 2016,2019, the results of
operations and cash flows for the twelve-month periods ended
December 30, 2015, 20162018, 2019 and 2017.2020. 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:
/s/Michael M. Miller
Michael M. Miller
President and Director
Date May 2, 2018
June 10, 2021
?
Original Sixteen to One Mine, Inc.
Condensed Balance Sheet
December 31, 20172020 & December 31, 20162019
ASSETS
2017 20162020 2019
Current Assets
Cash $ 6,98621,822 $ 6,9564,433
Accounts receivable 79,917 105,41755,775 56,525
Inventory (see Note 1) 652,228 1,010,213309,425 305,691
Other current assets - -
------- -------
Total current assets 739,131 1,122,586387,022 366,649
------- -------
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 (1,177,471) (1,151,296)(937,727) (927,961)
----------- -----------
Net fixed assets 88,845 115,02038,287 48,053
----------- -----------
Other Assets
Bonds and misc. deposits 21,460 21,46014,869 14,869
--------- -------
Total Assets $ 1,127,813 $1,537,443718,555 $ 707,948
========== ==========
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Original sixteen to One Mine, Inc.
Condensed Balance Sheet Continued
LIABILITIES & STOCKHOLDERS' EQUITY
2017 20162020 2019
Current Liabilities
Accounts payable
& accrued expenses (see Note 3)$ 1,197,026 1,187,9201,323,897 1,342,718
Due to related party (see Note 4) 200,882 175,533286,248 247,911
Notes payable Short-term (see Note 6) 537,276 534,691
--------538,558 538,558
--------- -------
Total Current Liabilities 1,935,184 1,898,1442,148,703 2,129,187
-------- -------
Long Term Liabilities
Notes payable due
after one year (see Note 7) 127,743 144,44997,236 101,092
---------- -------- -------
Total Liabilities 2,062,927 2,042,5932,245,939 2,230,279
---------- ---------
Stockholders' Equity
Capital stock, par value $.03:$.033:
30,000,000 shares authorized:
14,338,85514,390,631 issued and outstanding
as of Dec. 31, 2017
and December2019 & 14,342,097
as of Dec. 31, 2016 (see2018(see Note 8) 468,836 468,836474,891 474,891
Additional paid-in capital 2,222,892 2,222,8922,221,290
(Accumulated deficit) Retained earnings (3,626,842) (3,196,878)(4,225,167) (4,218,512)
------------ -----------
Total Stockholders' Equity (935,114) (505,150)(1,527,384) (1,522,331)
------------ -----------
Total Liabilities and
Stockholders' Equity $1,127,813 $1,537,443$ 718,555 $707,948
============ ============
?
Original Sixteen to One Mine, Inc.
Statement of Operations
2017 2016 20152020 2019 2018
Revenues:
Gold & jewelry sales 191,212 1,356,169 941,97290,225 228,286 156,570
Other Income 96,000 96,000 96,000
------- - 48,000
--------- -------- -------
--------
Total Revenues 287,212 1,452,169 1,037,97290,225 228,286 204,570
Operating expenses:
Salaries and wages 60,00058,024 60,000 60,000
Contract Labor 272,095 358,749 274,33351,234 163,855 239,601
Utilities 82,855 78,594 59,83672,502 85,829 87,178
Taxes - property & payroll 18,093 19,122 19,12319,754 18,028 17,584
Insurance 5,541 4,795 14,5623,363 5,275 4,755
Supplies 29,335 59,370 57,7144,259 17,560 20,608
Small equipment & repairs 26,404 33,445 8,8557,288 9,981 9,240
Drayage 14,750 13,753 17,6856,451 15,993 20,610
Corporate expense 11,419 14,790 10,89712,975 11,767 9,317
Legal and compliance 17,908 63,233 240,33417,586 15,652 13,577
Mine Maintenance 115,135 66,323 104,8982,434 14,111 22,024
Depreciation & amortization 26,175 22,166 33,1489,767 18,573 25,371
Other expenses 5,848 10,856 9,749
------- ------ ------2,166 7,811 5,178
-------- -------- --------
Total operating expenses 685,558 805,196 911,134267,803 444,435 535,043
Profit (Loss) from operations (398,346) 646,973 126,838(177,578) (216,149) (330,473)
Other Income & (Expense):
Other Income 5,861 4,550 12,9684,800 2,800 4,595
Interest Expense (27,609) (39,894) (60,454)- (15,277) (27,594)
Other expense (740) (669) (2,109)- (1,507) (5,464)
--------- -------- ---------
Total Other Income (Expense) (22,488) (36,013) (49,595)4,800 (13,984) (28,463)
Profit (Loss) before taxes (420,834) 610,960 77,243(172,778) (230,133) (358,936)
Provision for income taxes 9,131800 800 800
Net (loss) income $ (429,965) $ 610,160 $ 76,443(173,578) (230,933) (359,736)
========== ========== =========
Basic and diluted gain (loss) per
share $ (.03) $ .04 $ .01$(.012) $(.016) $(.025)
Shares used in the calculation of
net
(loss)net(loss) income per share 14,338,855 14,338,855 13,399,505
========14,390,631 14,390,631 14,342,097
========== ========= ========
=========
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Original Sixteen to One Mine, Inc.
Statement of Cash Flow
For the Years Ended December 31,
2017 2016 20152020 2019 2018
Cash Flows From Operating Activities:
Net profit (loss) $ (429,965) $ 610,160 $ 76,443(173,578) (230,933)(359,736)
Operating activities:
Depreciation and amortization 26,175 22,166 33,1489,767 18,573 25,371
Decrease(Increase)
in accounts receivable 25,501 (33,892) 679750 29,501 12,742
Decrease(Increase) in inventory 357,985 (286,163) (476,981)(3,734) 123,638 222,899
(Decrease) Increase in
accounts payable accrued expenses 9,106 41,431 202,57834,442 66,859 77,533
(Decrease) Increase in
related party loans 25,349 (549,116) 553,16038,336 (411) 28,590
(Decrease) Increase in
short-term notes 2,585 (495,339) 186,936- - 1,282
-------- ------- ---------
Net cash (used) provided by
operating activities 16,736 (690,753) 575,963(94,017) 7,227 8,681
Cash Flows From Investing Activities:
Sale (Purchase) of Real Estate - - -
saleWrite-off (Purchase) of fixed assets - - (21,225)(3,450) 596
Decrease (Increase)
Bonds Misc. deposits - (16,000)6,591 -
--------- -------- --------
Net cash (used) provided by
investing activities - (16,000) (21,225)3,141 596
Cash Flows From Financing Activities
Increase (Decrease) notes payable (16,706) (14,823) (14,076)111,406 (9,231) (17,420)
Proceeds from sale of common stock - 28,180 - 4,453
Paid in Capital from Shareholders - 159,690- -
-------- -------- --------
Net cash provided (used) by
financing activities (16,706) 173,047 (14,076)111,406 (9,231) (12,967)
(Decrease)increase in cash 30 (533,706) 540,66217,389 1,137 (3,690)
Cash, beginning of period 6,956 540,662 -4,433 3,296 6,986
------ ------- --------
Cash, end of period $ 6,986 $ 6,956 $ 540,66221,822 4,433 3,296
========= ========= ========
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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; currently in exploration mode.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).
Inventory: Inventory consists of gold bullion, specimens and
jewelry. Gold bullion 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.
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 currently cannot be
calculated, and
accordingly,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.
Revenue Recognition: As it is mined, gold is recorded in
inventory and revenue is recognized using quoted market prices
for gold. For income tax purposes revenues are not recognized
until the gold is sold.
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
property included with the purchase of the Gold Crown Mine in
2005. The category "mineral property" includes the Plumbago Mine
which was exchanged for 50,000 shares of restricted stock in
1999.
3. ACCOUNTS PAYABLE & ACCRUED EXPENSES
Accounts payable and accrued expenses was $1,197,026$1,323,897 at December
31, 2017.2020. This balance includes $753,783$867,823 in accrued wages owed
to Michael Miller. Mr. Miller's salary has been mostly accrued
(not paid) for over ten years and is secured with real estate.
4. NOTES PAYABLE RELATED PARTIES
Notes payable related parties at December 31, 20172020, of $200,883 is$286,248
consists of a loan from a shareholder in the amount of $152,594
secured by gold.gold and $133,654 owed to Michael Miller.
5. RELATED PARTY TRANSACTIONS
None
6. NOTES PAYABLE SHORT-TERM
NoteSNotes payable short-term of $537,276$538,558 at December 31, 20172020
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 convertableconvertible to stock at $1.00 per
share.
7. NOTES PAYABLE
Notes payable due after one-year totaling $127,743$97,236 consists of
the balance remaining on the mortgage for the Gold Crown Mine of
$97,236 as well as $7,563
remaining on a loan to purchase a piece of equipment in 2013 and $22,994
remaining on a note secured in 2014 for the purchase of a vehicle.$97,236.
8. STOCK
Capital authorized: 30,000,000 non-assessable shares of common
stock, par value $.03.$.033. Issued and outstanding: 14,338,85514,390,631
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.
7