SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report under Section 13 and 15 (d)
of the Securities Exchange Act of 1934
For Quarter ended March 31, 1995
Commission File No. 0-1519
Leadville Corporation
(Exact Name or Registrant as Specified in its Charter)
COLORADO 84-0388216
(State of Incorporation) (I.R.S. Employer Identification No.)
2851 S. Parker Road, Suite 610, Aurora, Colorado 80014
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number including area code:(303) 671-9792
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 report) and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
8,953,571
(Number of Shares of the Registrant's $1.00 Par Value
Capital Stock Outstanding as of March 31, 1995)
LEADVILLE CORPORATION
INDEX TO FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
Page
FINANCIAL STATEMENTS
Balance sheets 3 - 4
Statements of operations 5
Statements of stockholders' equity 6
Statements of cash flows 7
Notes to financial statements 8 - 14
SUPPLEMENTARY INFORMATION
Management discussion and analysis
of financial condition and results of
operations 15 - 17
-2-
Part I
LEADVILLE CORPORATION
Balance Sheets
March 31, 1995
(Unaudited)
March 31,
December 31,
1995
1994
ASSETS
CURRENT ASSETS
Cash $ 2,027
$ -
Prepaid expenses and other 4,795
7,318
Total current assets 6,822
7,318
PROPERTY AND EQUIPMENT, at cost
(Notes 2 and 3)
Mining properties, including assets
acquired under capital leases 7,356,979
7,356,979
Buildings and equipment:
Mine, including assets acquired
under capital leases 1,219,564
1,219,564
Mill 829,032
829,032
Other 108,143
108,143
Land 22,429
22,429
9,536,147
9,536,147
Less accumulated depreciation and
depletion including amortization
applicable to assets acquired under
capital leases (2,670,467)
(2,670,255)
6,865,680
6,865,892
OTHER ASSETS:
Investments - certificates of deposit 133,000
133,000
Inventories 453,889
453,889
Other 240
240
587,129
587,129
$ 7,459,631
$ 7,460,339
-3-
Part I
March 31,
December 31,
1995
1994
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Related parties: (Note 6)
Convertible debentures (Note 4) $ 531,000
$ 531,000
Notes payable, stockholders (Note 4) 357,000
326,500
Accrued interest payable 2,601,056
2,519,026
Due to officers and directors 65,753
52,040
Notes payable-other 95,000
95,000
Accounts payable 310,478
308,629
Accrued expenses 183,275
169,741
Capital lease obligations (Note 5) 701,151
687,611
Total current liabilities 4,844,713
4,689,547
SETTLEMENT OF LITIGATION (Note 5) 92,000
92,000
LONG-TERM DEBT:
Related parties -
-
Other -
-
COMMITMENTS AND CONTINGENCIES (Note 5)
STOCKHOLDERS' EQUITY (Notes 5)
Capital stock, par value $1 per share;
authorized 15,000,000 shares; issued and
outstanding March 31, 1995 and
December 31, 1994, 8,953,571
shares 8,953,571
8,953,571
Additional paid-in capital 8,457,949
8,457,949
17,411,520
17,411,520
Accumulated deficit (14,888,602)
(14,732,728)
Total stockholders' equity 2,522,918
2,678,792
$ 7,459,631
$ 7,460,339
See Notes to Financial Statements.
-4-
Part I
LEADVILLE CORPORATION
STATEMENTS OF OPERATIONS
Three Months ended March 31, 1995 and 1994
(Unaudited)
Three Months
ended March 31,
1995 1994
Operating revenue $ - $ -
Operating costs and expenses:
General and administrative 53,678 87,118
Depreciation 212 212
Total operating expenses 53,890 87,330
Operating loss ( 53,890) ( 87,330)
Financial income and expense:
Interest income 884 1,026
Interest expense (102,868) (
77,272)
Total financial income
(expense) (101,984) (
76,246)
Net loss $ (155,874) $
(163,576)
Net loss per capital
share $ (.02) $
(.02)
Weighted average number of
capital shares outstanding
(total shares) 8,953,571 8,892,621
See Notes to Financial Statements.
-5-
Part I
LEADVILLE CORPORATION
STATEMENTS OF STOCKHOLDERS' EQUITY
Three Months ended March 31, 1995
(Unaudited)
March 31, 1995
December 31, 1994
Shares Amount Shares
Amount
Capital Stock 8,953,571 $ 8,953,571 8,953,571
$ 8,953,571
Additional
Paid-In Capital 8,457,949
8,457,949
Accumulated deficit,
December 31, 1994 (14,732,728)
(14,732,728)
2,678,792
$ 2,678,792
Net Loss,
March 31, 1995 (155,874)
$ 2,522,918
See Notes to Financial Statements.
-6-
Part I
LEADVILLE CORPORATION
STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 1995 and 1994
1995
1994
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (155,874) $
(163,576)
Adjustments to reconcile net loss
to net cash provided by (used) in
operating activities:
Depreciation 212
212
Change in assets and liabilities:
(Increase) decrease in:
Prepaid expenses 2,523
3,078
Increase (decrease) in:
Accounts payable 1,849
21,735
Accrued expenses 13,534
10,284
Officer payables 13,713
15,746
Accrued interest 82,030
76,911
Capital lease obligations 13,540
-
Net cash provided by (used
in) operating activities (28,473)
(35,610)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowing, related parties 30,500
20,000
Net cash provided by financing
activities 30,500
20,000
Increase (decrease) in cash and
cash equivalents 2,027
(15,610)
Cash and cash equivalents:
Beginning -
24,803
Ending $ 2,027 $
9,193
See Notes to Financial Statements.
-7-
LEADVILLE CORPORATION
NOTES TO FINANCIAL STATEMENTS
March 31, 1995
1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Nature of Business - Leadville Corporation (the Company) is
engaged in the development
and mining of hard rock mineral properties.
Inventories - Inventories are stated at the lower cost (average
method) or market
value. Inventories consist of operating and maintenance
supplies.
Property and Equipment - Mining properties consist primarily of
patented and unpatented
mining claims. Unpatented mining claims require annual
assessment work and fees to
maintain possessory titles. Mining properties include the cost
of acquisition and
accumulated exploration and development expenditures incurred in
the pre-production
stage.
In the event such mining properties are developed into producing
properties, depletion
of these related costs will be computed on the unit-of-production
method, based on
estimated tons of recoverable ore reserves. If the properties
are determined to be
incapable of producing commercial quantities of ore, the costs
will be charged to
operations in the period in which the determination is made.
The Company provides for depreciation of buildings and equipment
on the straight-line
method, to apportion costs over the estimated useful lives of the
assets which range
principally from five to twenty years.
Net Loss Per Capital Share - The net loss per capital share is
based upon the total
weighted average number of shares outstanding during the quarter.
Capitalization of Interest - The Company capitalizes interest
expense as part of the
historical cost of acquiring certain assets which require an
extended period of time
to prepare them for their intended use (See Note 3). During 1994
and the first quarter
of 1995 interest was expensed due to the suspension of
development activities.
Going Concern - At March 31, 1995 the Company has a significant
investment in non-
producing mining properties, recovery of which is dependent upon
the production of ore
reserves in commercial quantities or sale of these properties at
an amount equal to
or in excess of costs. In addition, the Company has suffered
recurring losses from
operations and at March 31, 1995 has a working capital deficiency
of approximately
$4,838,000 which includes approximately $3,555,000 due to related
parties. The Company
has significant materials and supplies inventories, which the
Company is attempting to
sell. Since the ultimate realization of these inventories
depends on circumstances
which cannot be evaluated currently, it is not possible to
determine at this time
whether any loss from disposition of the inventories will be
realized. All real
properties are collateral for convertible debentures.
-8-
LEADVILLE CORPORATION
NOTES TO FINANCIAL STATEMENTS
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
(continued):
Certain mining equipment may be collateral for the settlement of
a lease obligation
judgment (See Note 5). The Company has no property or liability
insurance coverage at
March 31, 1995, and as of the date of this report. The
litigation concerning the
environmental matters has made it difficult for the Company to
obtain working capital
through additional equity or debt financing. (See Note 5).
Annual assessment fees are
required to maintain possessory titles to unpatented mining
claims. The Company has
waived its control of certain unpatented claims at the
Sherman-Hilltop property and is
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