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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 001-01428
METALINE MINING & LEASING COMPANY
(Exact name of registrant as specified in its charter)
State of Washington 91-06843860
______________________________________ ___________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
601 West Main Avenue, Suite 714
Spokane, Washington 99201-0677
__________________________________________ _______________
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) 509-455-9077
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for at least the past 90
days. Yes (X) No ( )
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date. 14,555,668
Transitional Small Business Disclosure Format (check one): Yes ( ) No (X)
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METALINE MINING AND LEASING COMPANY
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
PART I. - FINANCIAL INFORMATION
Item 1 Financial Information
METALINE MINING & LEASING COMPANY
BALANCE SHEET
SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
ASSETS
CURRENT ASSETS:
<S> <C>
Cash and cash equivalents:
Cash in bank $ 404,317
Temporary cash investments 645,466
--------------
Total current assets 1,049,783
INVESTMENTS 13,718
PARTNERSHIP PROPERTIES 3,911
--------------
$ 1,067,412
==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Federal income tax payable $ 1,487
STOCKHOLDERS' EQUITY:
Common stock--15,000 shares,
no par value, authorized;
14,555,668 shares issued
and outstanding 954,282
Accumulated other comprehensive income:
Unrealized loss, marketable securities (5,773)
Retained earnings 117,416
--------------
Total stockholders' equity 1,065,925
--------------
$ 1,067,412
==============
</TABLE>
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METALINE MINING AND LEASING COMPANY
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
METALINE MINING & LEASING COMPANY
STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
Nine Months Ended Year to date ended
September 30, September 30,
-------------------------- --------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCOME:
Dividend and interest income $ 9,864 $ 5,827 $ 32,529 $ 7,629
------------ ------------ ------------ ------------
EXPENSES:
Directors' fees - - - 300
Professional fees 234 300 9,182 19,404
Office expense 46 - 611 350
Taxes, licenses, and fees 370 34 1,443 561
------------ ------------ ------------ ------------
650 334 11,236 20,615
------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE
OTHER INCOME (EXPENSE)
AND INCOME TAX 9,214 5,493 21,293 (12,986)
OTHER INCOME (EXPENSE):
Gain on sale of investments - - - 711,377
------------ ------------ ------------ ------------
INCOME BEFORE PROVISION
FOR FEDERAL INCOME TAXES 9,214 5,493 21,293 698,391
PROVISION FOR FEDERAL
INCOME TAXES - - - 158,000
------------ ------------ ------------ ------------
NET INCOME $ 9,214 $ 5,493 $ 21,293 $ 540,391
============ ============ ============ ============
BASIC INCOME PER SHARE
(based upon weighted
average shares outstanding) $ NIL $ NIL $ NIL $ .07
============ ============ ============= ============
</TABLE>
<PAGE>
METALINE MINING AND LEASING COMPANY
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
METALINE MINING & LEASING COMPANY
STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
Nine Months Ended
September 30,
---------------------------
1999 1998
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 21,293 $ 540,391
Adjustments to reconcile net income to net cash
provided by operations:
Decrease in:
Accounts payable (306) (21,665)
Federal income tax payable (11,013) -
------------ ------------
Net cash provided by operating activities 9,974 518,726
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Deposit received - (9,784)
Purchase of Krugerrands and silver rounds - (13,718)
------------ ------------
Net cash provided by investing activities - (23,502)
------------ ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 9,974 495,224
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,039,809 10,103
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,049,783 $ 505,327
============ ============
<PAGE>
METALINE MINING AND LEASING COMPANY
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
METALINE MINING & LEASING COMPANY
NOTE TO FINANCIAL STATEMENTS
NOTE - BASIS OF PRESENTATION:
The financial statements included herein have been prepared by Metaline Mining &
Leasing Company (the Company), without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission (the SEC). Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
omitted pursuant to such SEC rules and regulations. In the opinion of
management of the Company, the foregoing statements contain all adjustments
necessary to present fairly the financial position of the Company as of
September 30, 1999, and its results of operations for the three month period
ended September 30, 1999 and 1998, and its cash flows for the three month period
ended September 30, 1999 and 1998. The interim results reflected in the
foregoing financial statements are not considered indicative of the results
expected for the full fiscal year.
<PAGE>
METALINE MINING AND LEASING COMPANY
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
Item 2. Management's Discussion and Analysis or Plan of Operation
The Registrant has no revenues from operations. It's only income has been
derived from interest.
The Registrant's plan of operation for the next twelve months will consist of
attempting to acquire an interest in a business opportunity. Due to the
Registrant's limited assets and its inability to raise additional financing due
to the lack of a market for its Common Stock, it is anticipated that any such
acquisition would be a "reverse take-over" accomplished through a merger or
share exchange. In such event, the Registrant's existing shareholders would
likely become minority shareholders in the surviving entity. The Registrant is
not currently evaluating any specific acquisition opportunities.
The Company does not currently have any employees and anticipates utilizing the
services of consultants to accomplish its plan of operation. The Company
currently has sufficient resources to meet its financial obligations for the
next twelve months.
PART II OTHER INFORMATION
Item 5 Other Information
YEAR 2000 ISSUES
Throughout the information technology industry, the use of two-digit fields was
common practice in the design of hardware, systems software, proprietary
applications and system interfaces. The Year 2000 problem is pervasive and
complex. The issue is whether computer systems will properly recognize date
sensitive information when the year changes to 2000. Systems that do not
properly recognize such information could generate erroneous data or cause a
system to fail.
The Company recognizes the need to ensure its operations will not be adversely
impacted by Year 2000 software failures and has assessed Year 2000 risks. This
assessment includes the identification of necessary changes to computer hardware
and software applications that will attempt to ensure availability and integrity
of the Company's information systems and the reliability of its financial and
operational systems.
The Company has reviewed its financial, information and operational systems in
order to identify those products, services or systems that are not Year 2000
compliant. As a result of this review, the Company has modified or replaced
certain information and operational systems so they will be Year 2000 compliant.
These modifications and replacements are being, and will continue to be, made in
conjunction with the Company's overall systems initiatives. The total cost of
these Year 2000 compliance activities is not anticipated to be material to the
Company's financial position or its results of operations.
<PAGE>
METALINE MINING AND LEASING COMPANY
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
Based on available information, the Company does not believe any material
exposure to significant business interruption exists as a result of Year 2000
compliance issues. These costs and the timing in which the Company plans to
complete its Year 2000 modifications are based on management's best estimates.
However, there can be no assurance that the Company will timely identify and
remediate all significant Year 2000 problems, that remedial efforts will not
involve significant time and expense, or that such problems will not have a
material adverse effect on the Company's business, results of operations or
financial position.
The Company also faces risk to the extent that its borrowers, vendors, service
providers and others with whom the Company transacts business may not comply
with Year 2000 requirements. The Company has not, to date, made any assessment
of the Year 2000 risks associated with these third party associations to
determine the extent to which the Company is vulnerable to these third parties
failure to remediate their own Year 2000 issues. In the event any such third
parties are not Year 2000 compliant, the Company's results of operations could
be materially adversely affected.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
METALINE MINING AND LEASING COMPANY
BY: /s/ Gregory B. Lipsker DATE: November 10, 1999
GREGORY B. LIPSKER, President
BY: /s/ Eunice R. Campbell DATE: November 10, 1999
EUNICE R. CAMPBELL, Secretary
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheets for Metaline Mining & Leasing Company at September 30, 1999, the
Statements of Income for the year ended September 30, 1999, and is qualified in
its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1998
<CASH> 1,049,783
<SECURITIES> 13,718
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,067,412
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,067,412
<CURRENT-LIABILITIES> 1,487
<BONDS> 0
0
0
<COMMON> 954,292
<OTHER-SE> 111,643
<TOTAL-LIABILITY-AND-EQUITY> 1,067,412
<SALES> 0
<TOTAL-REVENUES> 32,529
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 11,236
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 21,293
<INCOME-TAX> 0
<INCOME-CONTINUING> 21,293
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,293
<EPS-BASIC> 0.00
<EPS-DILUTED> 0.00
</TABLE>
