SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended September 30, 2017March 31, 2019 Commission File No. 001-10156
ORIGINAL SIXTEEN TO ONE MINE, INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA 94-0735390
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporated or organization)
Post Office Box 909, Alleghany, CA 95910
(Address of principal executive offices)
(530) 287-3223
(Registrant's telephone number)
(including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the past 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirement for the past 90 days.
N/A Voluntary Filer
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer,""accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [ ] (do not check if smaller reporting company)
Smaller reporting company [X]
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-d of the Exchange Act). Yes [ ] NoN0 [X]
As of September 30, 2017, 14,338,855March 31, 2019, 14,342,097 shares of Common Stock, par value $.03$.033 per
share, were issued and outstanding.
Item 1. PART I
ITEM 1. FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Original Sixteen to One Mine, Inc.
Condensed Balance Sheet
September 30, 2017December 31, 2019 & December 31, 20162018
ASSETS
2019 2018
Current Assets
Cash $ 16,4206,522 $ 6,9563,296
Accounts receivable 43,923 105,41767,925 67,175
Inventory 749,675 1,010,213(see Note 1) 423,874 429,329
Other current assets - -
------- -------
Total current assets 810,018 1,122,586498,321 499,800
------- -------
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 885,307 885,307597,602 594,152
Buildings 209,487 209,487
Vehicles 171,522 171,522168,925 168,925
--------- ---------
Total fixed assets at cost 1,266,316 1,266,316976,014 972,564
--------- ---------
Less accumulated depreciation (1,167,922) (1,151,296)(913,907) (909,387)
----------- -----------
Net fixed assets 98,394 115,02062,107 63,177
----------- -----------
Other Assets
Bonds and misc. deposits 21,460 21,460
--------- -------
Total Assets $1,208,249 $1,537,443$ 860,265 $ 862,814
========== ==========
Original sixteen to One Mine, Inc.
Condensed Balance Sheet Continued
LIABILITIES & STOCKHOLDERS' EQUITY
September 30, 2017 & December 31, 20162019 2018
Current Liabilities
Accounts payable & accrued expenses $1,191,248 1,187,920(see Note 3)$ 1,270,002 1,274,559
Due to related party 198,382 175,533(see Note 4) 235,869 229,472
Notes payable Short-term 536,698 534,691(see Note 6) 538,558 538,558
-------- -------
Total Current Liabilities 1,926,328 1,898,1442,044,429 2,042,589
-------- -------
Long Term Liabilities
Notes payable due after one year 131,819 144,449(see Note 7) 108,799 110,323
-------- -------
Total Liabilities 2,058,147 2,042,593
-------- -------2,153,228 2,152,912
---------- ---------
Stockholders' Equity
Capital stock, par value $.03:$.033:
30,000,000 shares authorized: 14,338,85514,342,097
issued and outstanding as of Sept. 30,2017Dec. 31, 2018
and as of DecemberMarch 31, 2016 468,836 468,8362019
(see Note 8) 473,289 473,289
Additional paid-in capital 2,222,892 2,222,892
(Accumulated deficit)
Retained earnings (3,541,626) (3,196,878)(3,989,143) (3,986,279)
------------ -----------
Total Stockholders' Equity (849,898) (505,150)(1,292,962) (1,290,098)
------------ -----------
Total Liabilities and Stockholders' Equity $1,208,249 $1,537,443$ 860,265 $ 862,814
============ ============
See Accompanying Notes
Original Sixteen to One Mine, Inc.
Statement of Operations and Retained Earnings
Three Months Ending Sept. 30, NineEnded March 31, 2019 and March 31, 2018
Three Months Ending Sept. 30,
2017 2016 2017 2016March 31,
2019 2018
------ ------ ------ -----
Revenues:
Gold & Jewelry Sales 29,853 64,974 131,024 562,797jewelry sales $ 116,451 $ 77,288
Other Revenue - 24,000
24,000 72,000 72,000
--------- --------- -------- ------------------- -----------
Total revenues $ 53,853 $ 88,974 $ 203,024 $ 634,797
--------- --------- -------- --------116,451 101,288
----------- -----------
Operating expenses:
Salaries and wages 15,000 15,000
45,000 45,000
Contract Labor 71,540 63,535 213,470 278,084
Utilities 19,183 24,543 61,121 59,18455,287 67,665
Telephone & utilities 19,316 18,293
Taxes - property & payroll 7,837 10,331 15,921 21,3594,379 4,512
Supplies 3,820 11,253 23,930 47,8133,727 4,977
Insurance 1,091 967 3,218 2,5561,875 1,902
Small equipment & repairs 1,387 1,267 22,853 26,2912,511 4,020
Drayage 2,512 1,660
Corporate expenses 365 2,359
Legal fees and penalties 880 634
Mine Maintenance 45,250 17,316 87,953 57,176
Drayage 4,067 4,007 11,592 10,701
Corporate expenses 1,192 1,272 10,374 10,790
Legal and& Compliance 5,276 28,833 12,598 53,2793,411 4,387
Depreciation & amortization 5,542 5,542 16,626 16,6264,520 6,343
Other operating expenses 1,275 1,353 4,095 6,0601,468 888
---------- ---------- ------- -------
Total operating expenses 182,660 185,219 528,751 634,919115,251 132,640
---------- ---------- -------- --------
Profit (Loss) from operations(128,807) (96,245) (325,727) (122)operations 1,200 (31,352)
Other Income: 1,979 800 5,208 3,400Income & Expenses:
Other Expense: 7,582 6,578 20,912 30,320Income 1,519 870
Other Expenses 5,284 6,433
------- -------- --------- --------- ---------
Total Other income(expense) (5,603) (5,778) (15,704) (26,920)
--------Income (Expense) (3,765) (5,563)
---------- ------- -------------------
Profit (Loss) before taxes (134,410) (102,023) (341,431) (27,042)
--------(2,565) (36,915)
---------- --------- --------------------
Income tax benefit (expense) 2,517 (3,317) (800)
-------- ---------- --------- --------Tax Benefit - -
Net profit (loss)Profit (Loss) $ (136,927)(2,565) $ (102,023) $ (344,748) $ (27,842)(36,915)
============ =========== ========== ==========
Basic and diluted (loss)
earningsGain
(Loss) per share $ (.01)(0.0002) $ (.008) $ (.024) $ (.002)(0.003)
============ ============ ========= ===================
Shares used in the
calculation of net
(loss)loss income per share 14,342,097 14,338,855
13,399,505 14,338,855 13,399,505
============ =========== ========== ===========
See Accompanying Notes
Original Sixteen to One Mine, Inc.
Statement of Cash Flows
NineThree Months Ended Sept. 30, 2017March 31, 2019 and Sept. 30, 2016
NineMarch 31, 2018
Three Months Ended Sept. 30,
2017 2016March 31,
2019 2018
-------------- ------------
Net profit (loss) $ (344,748) $ (27,842)--------------
Cash Flows From Operating Activities:
Net profit (loss) $ (2,564) $ (36,915)
operating activities:
Depreciation and amortization 16,626 16,6264,520 6,343
(Increase)Decrease in
accounts receivable 61,494 (2,086)(750) 12,852
Decrease(Increase) in inventory 260,538 297,7005,453 9,802
(Increase)Decrease in other
current assets - -
(Decrease) increase in accounts payable
and accrued expenses 3,328 81,222(4,857) 29,847
(Decrease) increase in related partyrelated-party loans 22,819 (378,323)6,397 10,150
(Decrease) increase in short term notes 2,007 (495,346)_ 236
------------ ----------
Net cash (used) provided by
operating activities 22,094 (508,049)8,199 32,315
------------ ---------------------
Cash Flows From Investing Activities:
(Increase) Decrease Fixed Asset Purchases _ _
Proceed from sale real estateAssets (3,450) -
-
Other assets bonds misc. deposits - (16,000)
----------- ------------------------ ----------
Net cash (used) provided by
investing activities (3,450) -
(16,000)
----------------------- -----------
Cash Flows From Financing Activities
Increase (decrease) notes payable (12,630) (12,171)(1,523) (4,858)
(Increase) decrease in notes receivable - -
Proceeds from sale of common stock - -
Additional paid-in capital - -
----------- ----------------------- ------------
Net cash provided (used) by
financing activities (12,630) (12,717)(1,523) (4,858)
------------ ------------
(Decrease) increase in cash 9,464 (536,662)3,226 27,457
Cash, beginning of period 4,442 540,6623,296 6,986
------------ ----------
Cash, end of period $ 16,4206,522 $ 4,44234,443
============ ============
Supplemental schedule of other cash flows:
Cash paid during the period for:
Interest expense $ 20,4834,611 $ 30,0066,327
Income Taxes $ - $ -
============ ===========
Income taxes $ 3,317 $ 800
============ ===========
See Accompanying Notes
NOTES TO THE FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business: Original Sixteen to One Mine, Inc. (the Company) was
incorporated in 1911, and is actively involved in operating gold minesoperates the Sixteen to One mine in
Alleghany, California; currently, in exploration and production status.California.
Inventory: Inventory consists of gold bullion, specimens and jewelry. Gold
bullion and specimens are quoted at the market price for gold bullion.
Jewelry is quoted at the market price for the gold content plus labor cost.
Inventory is accounted for using the Average Cost method due to the limitations
of the Company's accounting software. Valuation adjustments to account for
changes in the price of gold are made quarterly.average cost method.
Fixed Assets: Fixed assets are stated at historical cost. Depreciation is
calculated using straight-line and accelerated methods over the following
useful lives: Vehicles 3 to 5 years, Equipment 5 to 7 years, Buildings 18 to
31.5 years. Company does not capitalize underground expenses or exploration.
Depletion Policy: Because of the geological formation in the Alleghany Mining
District, estimates of ore reserves cannot be calculated, and accordingly, a
cost per unit depletion factor cannot be determined. Should estimates of ore
reserves become available, the units of production method of depletion will be
used. Until such time, noNo depletion deduction
will beis recorded.
Revenue Recognition: As they are mined, gold specimens are recorded in
inventory and revenueRevenue is recognized using quoted market prices for gold.gold
when mined. For income tax purposes revenues are not recognized until the gold
is sold.
Use of Estimates: The preparationPreparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions. These estimatesEstimates and assumptions affect the reported amounts
of assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual
results couldmay differ from these estimates.
GENERAL NOTES
1. In accordance with directive from the Securities and Exchange Commission
(SEC)and Industry Guide 7, reference for all intent and purposes to the
Company's employees as miners, its properties as mines or its operation as
mining does not diminish the fact that the Company has no proven reserves and
is in the "exploration state" as defined in Guide 7(a)(4)(iii).
2. In the opinion of management, the financialFinancial statements contain all adjustments (consisting only of normal
recurring accruals) necessary to present fairly the Company's financial
position at Sept. 30, 2017March 31, 2019 and December 31, 2016,2018, the results of operations
and cash flows for the three-month and
nine-month periods ended Sept. 30, 2016March 31, 2019 and 2017. The unaudited2018.
Unaudited financial statements have beenare prepared in accordance with Generally
Accepted Accounting Principles for interim financial information and with
the instructions to Form 10-Q and Item 310(b) of Regulation S-B.
ITEMItem 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION
The Sixteen to One mine in the Alleghany Mining District is a unique mine and
requires a unique operation, which has been recognized by its owners, its
miners, geologists, engineers, and some public agencies during the last decade
of the twentieth century and to the present. It is a traditional California
high-grade, hard rock, underground gold mine. The Company celebrated its 100
year anniversary on Oct. 9, 2011. It is the oldest gold mining corporation in
the United States. The same company owns and operates (maintains) the mine.
Original Sixteen to One Mine Inc. (owner) was incorporated
in California in 1911. Experts estimate that less than twenty percent of the
ore deposit has been mined.
Production is approximately 1,500,000 ounces of gold.
There are over twenty-eightOver thirty miles of horizontal workings and millions of cubic
feet of vertical excavations called stopes.stopes exist. The entire grounds are not
maintained for mining. Once an area is targeted for mining, travel ways and
escape routes are brought into safety compliance. Production miners set up a
heading (face) and begin a drill-blast-muck sequence into the quartz. Gold is
hosted in the quartz vein in exceedingly rich concentrations called "pockets".
Metal detectors are regularly used underground as a tool for guiding the
direction of the work. Metal detectors are also used as a tool to classify the
ore underground. This has thea positive affect of reducing the volume of rock
taken from the mine, thereby reducing costs. Maps and reports comprise a valuable
tool for evaluating present and future mining operations.
In 1992, the company initiated a gold marketing plan of selling gold in quartz
as a gemstone. This produces revenue significantly greater than selling gold
into the spot market. Demand for the Sixteen to One gold-in-quartz gemstone
exceeds supply.
Production has been termed a "feast or famine" situation for over 100 years.
Reserves in a high-grade gold mine cannot be termed as "proven". By industry
wide definition of phases of a mine operation, the operation during this
quarter is exploration. Exploration aims at locating the presence of economic
deposits and establishing their nature, shape and grade. The investigation may
be divided into (1) initial and (2) final. At the
Sixteen to oneOne the search for gold or ore embraces: (1) geological surveys;historical maps;
(2) geophysical prospecting; (3)
boreholes; (4) surface or underground headings, drifts or tunnels. When
operations detect the presence of gold, the Company evaluates the indicators
and if warranted, moves itsindicators.
Its operation changes from exploration to development.development to production rapidly.
When the presence of gold is evaluated, the Company moves its operation into
production. The company hoards gold and sells it according to short-term cash
needs. This fact requires an operator to manage its cash flow to operate
between pockets. It is difficult to undertake major expansion plans with an
uncertain supply of capital.
Our crew began a tough but significant project last December: reestablishBalance Sheet notes:
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.
No value is recorded on the 49 WINZEbalance sheet for mining. (WINZEtimber reserves. The company
owns 470 acres of prime forested timberland. No value is a vertical opening driven downward connecting
two or more levels in a mine). Crumpled stairsrecorded on the
balance sheet for the Company owned water-rights. Reduced value is recorded
on the balance sheet for buildings, equipment and ground support, failed
electrical switches, transformersland. No value is recorded
on the balance sheet for marketable aggregate and wire, dilapidated compressed air and
water lines faceddecorative stone currently
stockpiled. No value is recorded on the miners. The 49 WINZE, access to the southern levels (of
the underground), is a vital component of mining. It became a victim of
depreciated gold prices over a decade ago. The task seemed an overwhelming
head ache to even think about its rejuvenation; but we did think about it and
decided to risk last year's profit here. Why is our future tied with the 49
WINZE project?
The Company has two new gold detectors with proven successes of identifying
gold in quartz previously undetected with older models. Our miners stopped
working in the deep levels due to uncontrollable economic changes. It was not
the absence of gold. Multiple areas with visible gold targets were left thatbalance sheet for goodwill. Fixed
assets are now below the water. Our current inventory provides the capital to open
those levels for mining. The 49 WINZE also satisfies federal requirements for
a second exit for miners.
The crew worked every quarter this year to reestablish safe access (ground
support) in the winze, Utilities are in place (compressed air, water,
communications) from the 800 foot level to the 1700 foot level. Stairs or
ladders are also in place. Simultaneously, the water level is continuously
lowering. It is between the 1700 and 1900 level. Predictions are difficult
with this type of work; however it is likely the crew will reach the 1900 foot
level this year.
Last year besides mining gold and maintaining or repairing infrastructure,
regulatory drama was a factor. It has lessened. A more common sense approach
regarding federal MSHA inspectors is noticed. Tools of reason and common sense
played a part. MSHA took notice that the requirements for an inspector have
been ignored and determined as "unlawful". California's misguided water public
servants may soon recognize similar facts regarding the overreach by its
Prosecution Team of lawyers. Regulating government agencies haverecorded at historic cost us
dearly in time and money.
California is nationally known for its environmental hostilities towards
business. The mineral and timber extraction business became easy targets. Our
operation does zero environmental/public harm, zero. Sixteen to One water has
minerals naturally because the entire watershed and Kanaka Creek are
mineralized. Water passing through our property has no adverse effect on any
beneficial use downstream. Outright reckless enforcement by some Californian
public servants may be shifting towards reason. Top water consultants are
working with regulators to fix some problems.less depreciation.
BALANCE SHEET COMPARISONS
For the nine-monththree-month period from Decemberended March 31, 20162019 there were no significant
changes to Sept. 30, 2017 total
assets decreased by 21% primarily due to a 58% decrease in Accounts Receivable
and a 26% decrease in inventory. The corresponding revenue from these
decreases was used to fund operations.
For the same nine-month period related party payables decreased by 13%.balance sheet.
STATEMENT OF OPERATIONS
Revenues
Gold revenues for the three-month period ended Sept. 30, 2017 were 39% lower thanending March 31, 2019 increased by
$39,163 (51%) compared with the same period in 2016 primarily2018 due to no gold production in
2017.
Revenues for2019.
Expenses
For the nine-monththree-month period ended Sept. 30, 2017March 31, 2019 compared to the same period in
2016 were 68% lower2018 total operating expenses decreased by $17,389 (13%) primarily due to the lack of gold productiona
smaller crew in 2017
and lower sales of existing inventory in 20172019 compared to 2016.
Operating expenses for2018.
For the three-month period ended Sept 30,2017 were similar
to the same period in 2016.
Operating expenses for the nine-month period ended Sept 30,2017 decreased by
17%March 31, 2019 compared to the same period in
2016 due to a smaller work-force in 2017.
For the three-month period ended Sept. 30, 20172018 the company showed a loss of $136,927$2,565 compared to a loss of $102,023 for the same period in 2016.$36,915.
The 34%$34,350 (93%) difference is due to lower gold salesexpenses and increased revenue in
2017. For the nine-month
period ended Sept. 30, 2017 the company showed a loss of $344,748 compared to a
loss of $27,842 for the same period in 2016. The 1,138% difference is
primarily due to the sale of less inventory in 2017 compared to 2016.
ITEM 32019.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
From time to time the Original Sixteen to One Mine, Inc. (the Company), will
makemakes
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, political and politicalgovernmental
conditions
- Unexpected geological conditions or rock stability conditions
resulting in cave-ins, flooding, rock-bursts or rock slides
- Difficulties associated with managing complex operations in remote areas
- Unanticipated milling and other processing problems
- The speculative nature of mineral exploration
- Environmental risks
- Changes in laws and government regulations, including those relating to taxes
and the environment
- The availability and timing of receipt of necessary governmental
permits and approval relating to operations, expansion of operations,
and financing of operations
- Fluctuations in interest rates and other adverse financial market conditions
- Other unanticipated difficulties in obtaining necessary financing with
specifications or expectations
- Labor relations
- Accidents
- Unusual weather or operating conditions
- Force majeure events
- Other risk factors described from time to time in the Original Sixteen to One
Mine, Inc., filings with the Securities and Exchange Commission
Many of theseThese factors are beyond the Company's ability to control or predict.
Investors are cautioned not to place undue reliance on forward-looking
statements. The Company disclaims any intent or obligationwill to update its forward-looking statements,
whether as a result of receiving new information, the occurrence of future
events or otherwise.otherwise if significant.
ITEM 44: CONTROLS AND PROCEDURES
See notesSecurity procedures include multiple levels of gold custody, from the mine
to financial statements.sales. Inventory control procedures were set up by an SEC certified
auditing firm and continue to be followed.
PART II
ITEMItem 1 LEGAL PROCEEDINGS
None
Item 1a RISK FACTORS
(a) Price of Gold
The daily spot price of gold has a modest effect on gross revenue if it's
between $1,000 and $1,300 an ounce. A significant drop below $1,000 may have
an adverse effect on the Company's operation. The Company's realized gold
values usually exceed the bullion price due to the jewelry and specimen markets
which are not affected by the spot price of gold.
(b) Lack of Proven Reserves
Because proven reserves are not utilized as a component for evaluating future
earnings or ore values, a sense of uncertainty of existence is perceived by
some. Caution is always recommended in using the doctrines of reserves as an
economic tool for valuing a mining company. While (i) the Company filed a petition for review withhas
recovered over one million ounces of gold and (ii) management knows that
substantial additional virgin veins exists in the United States court of Appeals
for the Ninth Circuit, accepted July 12, 2016. File number is: No. 16-72349.
Original Sixteen to One Mine, Inc. (operator)mine, the
Company has no ability to measure potential gold production using the
mathematical tools generally recognized in the mining industry; however, the
company can prove that approximately seventy percent (70%) of its vein systems
have not been developed.
(c) Governmental Regulation
The attached financial statements have not been audited by a Securities
Exchange Commission (SEC) accounting firm. Therefore, the Company is not in
full compliance with this SEC regulation for companies listed on an exchange.
State and federal statutes regulate environmental quality, safety, exploration
procedures, reclamation, 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 illegal demands from the Central Valley Regional Water
Quality Control Board (CVRWCB) or its miners (WE)staff. The Company is forced to expend
working capital and time defending this excessive and punitive behavior. There
can be no assurance that future changes in the laws, regulations or reckless
interpretations thereof will not have been
adversely affecteda material adverse effect; however during
2018, CVRWCB staff was invited and accepted invitations to visit the mine
property. A definitive plan is under mutual development to re-write the
mine's discharge permit during 2019.
(d) Liquidity
Gold inventory at March 31, 2019, was $423,874 primarily as specimens or
gold held as jewelry. While history of actual cash sales supports an
inventory value exceeding the spot price, no such increases are used to compute
the inventory. All inventory of raw material is recorded at spot price per
troy ounce. In addition, contract manufacturing costs of jewelry are included
in the finished jewelry inventory. Periodic shortfalls in liquidity occur
which are not likely to be bridged by an orderinstitutional debt financing. Management
addresses these issues as they arise.
(e) Price of Stock
Bids and offers are publicly recorded on the stock page of the Federal Mine SafetyCompany's web
site and Health Review
Commission (FMSHRC) under the Federal Mine Safety and Health Acta gray market. Exposure is limited. The price of 1977,
Public Law 91-173 (ACT). WE ask for a review of such order in your court in
our district, the Ninth Circuit. WE pray that the order be modified or set
aside as allowed in Sec.106. (a)(1)stock may not
accurately reflect its fair market value because of the ACT.
Citations were written outsidelimited marketplace
and the existence of a wild and free gray market. The company deferred
programs to support or promote its stock and is currently seeking a suitable
public marketplace.
There are conflicting bids, offers and trades between the law specified in SEC 4 underCompany's website
and the heading,
MINES SUBJECT TO ACT: Each coal or other mine,unregulated Pink Sheet Gray Market, ticker symbol OSTO. Because of
these discrepancies the products of which enter
commerce, ormarket price is unreliable.
Item 2 UNREGISTERED SALES OF EQUITY
None
Item 3. DEFAULTS ON SECURITIES
None
Item 4. MINE SAFETY DISCLOSURES
For the operations or products of which affect commerce, and each
operator of such mine, and every miner in such mine shall be subject tothree-months ended March 31, 2019, the
provisions of the ACT.
The Secretary of Labor is designated to carry out the intents by Congress of
ACT, SEC. 2. Congress declares the importance of our most precious resource
the miner. The Mine Safety and Health
Administration (MSHA) was established
to carryout CFR 30 Mineral Resources and issue citations. During the public
hearing for citations, MSHA placedissued no supportive testimony to refute its
position that Plumbago meets the requirement for regulations under ACT. No
case rulings to support the Administrative Law Judge (ALJ) or FMSHRC decisions
are entered into the record.
While there are instances where SEC. 4. language was challenged by
an operator and the challenge fails, there are no cases or situations that
resemble Plumbago. WE entered over eighty pages of testimony supporting our
position, including the recent decision by the United States Supreme Court
regarding the Affordable Care Act and its effect on interstate commerce.The
argument that at one time, Plumbago was a mine and affected commerce, has
merit.
The argument that the operation at Plumbago meets the requirement of SEC. 4.
during recent times has no standing. MSHA actions followed by the ALJ and
FMSHRC, violates the intent of Congress as written in ACT.
This important law must be honestly enforced in its entirety, not through a
selective interpretational process. This behavior must be severed, not the law
but its abuse. Only the Judicial Branch remains to protect the American miner
from extinction by overreaching power. The Legislative Branch held numerous
public meeting in the 1970s on the subject of mining health and safety in the
industry. Congress passed a law for the Executive Branch to implement. Over a
span of 39 years regulators have drifted away from its stated purposes. WE
pray for relief and support from the Judicial Branch to return the course of
health and safety to the most endangered species in America, the underground
gold miner.
ITEM 1A RISK FACTORS
The Company's liquidity is substantially dependent upon the results of
operations. The Company maintains a gold inventory which it liquidates to
satisfy working capital needs. There is no assurance that inventory is
adequate to sustain the Company.
ITEM 2 UNREGISTERED SALES OF EQUITY
None
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4 MINE SAFETY DISCLOSURES
For the three-month period ended September 30, 2016 NO citations under Section
104(a)104 (a) S&S 104(b) Orders or 104 (d)(b) orders.
One paperwork citation was issued with a penalty of $121 which was paid.
Additionally, ALL eight S&S Citations Section 110 (b)(2)
Violations or Section 107 (a) Ordersissued in calendar year 2018 were
issued.
A total of two citations were issueddown-graded to non- S&S violations during the three-month period ended Sept
30, 2017. The total proposed penalties on these four citations is $984
These citations are being contested.
ITEM 5informal hearing procedures in 2019.
Item 5. OTHER INFORMATION
The unaudited interim consolidated financial statements of Original Sixteen to
One Mine, Inc. (the Company) have beenthe Company are
prepared by management in accordance with generally accepted accounting
practices. Such rules allow the omission of certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted audited accounting principles as long as the statements
are not misleading.
In the opinion of management, verified by signature below, all adjustments
necessary for a fair presentation of these interim statements have been
included. These adjustments are of a normal recurring nature.
The preparation of the Company's financial statements in conformity with
accounting principles accepted in the United States requires management to make
estimates and assumptions. These estimates and assumptions affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities at
the date of the financial statements, as well as the reported amountamounts of
revenues and expenses during the reporting period. On an ongoing basis,
management evaluates its estimates and assumptions; however, actual amounts
could differ from those based on such estimates and assumptions.may differ. No accounting
principle upon which the Company's financial status depends, requires estimates
of proven and probable reserves and/or assumptions of future gold prices.
Commodity prices may significantly affect the company's profitability and cash
flow. No independent accounting firm or auditors have any responsibility for
the accounting and written statements of the Form 10-Q.
The Company and its president assume responsibility for the accuracy of this
filing and certify the financial statements present fairly in all material
respects, the financial position of Original Sixteen to One Mine, Inc at Sept.
30, 2017.
ITEM 6March
31, 2019.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrantRegistrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ORIGINAL SIXTEEN TO ONE MINE, INC.
(Registrant)
/s/Michael M. Miller
President and Director
Dated: November 14, 2017May 15, 2019