SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
AMENDMENT #1
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1996 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
incorporated or organization) Identification No.)
Post Office Box 1621, Alleghany, CA 94910
(Address of principal executive offices)
(916) 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.
Yes: X No:
As of March 31, 1996, 3,509,060 shares of Common Stock, par value
$.10 per share, were issued and outstanding
<PAGE>
PART I: FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Condensed Balance Sheet
ASSETS
March 31, 1996 December 31, 1995
Current Assets:
Cash & Cash Equivalents $ 94,141 $ 180,618
Accounts Receivable 11,226 13,370
Inventory 2,189,374 2,228,192
Other Current Assets 15,463 9,552
----------- -----------
Total Current Assets 2,310,204 2,431,732
----------- -----------
Mining Property:
Real Estate & Property Rights
(at March 1, 1913, cost plus
subsequent additions, net of
depletion of $524,145) 105,517 105,517
Mineral Property 415,263 415,263
Development 800,570 714,037
------------ ----------
Total Mining Property 1,321,350 1,234,817
------------ ----------
Fixed Assets:
Building & Mill 144,462 143,250
Vehicles 166,998 118,011
Equipment 751,893 693,703
------------ ----------
1,063,353 954,964
Accumulated Depreciation (596,466) (568,689)
------------ ----------
Net Fixed Assets 466,887 386,275
Other Assets
(Net of Amortization) 37,806 34,244
------------ ----------
TOTAL ASSETS $ 4,136,247 $ 4,087,068
============ ============
See Accompanying Notes
2
<PAGE>
PART I: FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Condensed Balance Sheet
LIABILITIES & STOCKHOLDERS' EQUITY
March 31, 1996 December 31, 1995
Current Liabilities:
Accounts Payable $ 136,523 $ 56,038
Income Taxes Payable 0 84,000
Deferred Income Taxes 633,000 632,000
Accrued Expenses 16,043 0
Line of Credit 260,921 260,921
Current Maturities of
Long-Term Debt 3,619 3,531
------------ -----------
Total Current Liabilities 1,050,106 1,036,490
------------ -----------
Long-Term Liabilities:
Note Payable-GMAC 18,504 19,354
Less Current Maturities (3,619) (3,531)
------------ -----------
Total Long-Term Liabilities 14,885 15,823
------------ -----------
Stockholders' Equity:
Capital Stock, par value $.10
10,000 shares authorized; 3,509,062
and 3,513,062 shares issued &
outstanding as of March 31, 1996 &
December 31, 1995, respectively 350,906 351,306
Paid-In-Capital 1,353,976 1,369,318
Notes Receivable-Employees (52,000) (52,000)
Retained Earnings 1,418,374 1,366,131
------------ ------------
Total Stockholders' Equity 3,071,256 3,034,755
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 4,136,247 $ 4,087,068
============ ============
See Accompanying Notes
3
<PAGE>
PART I: FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Statement of Income and Retained Earnings
Three Months Ended March 31,
1996 1995
----------- ------------
Revenue $ 665,597 $ 72,511
Expenses:
Administration 8,221 0
Directors' Fees 4,796 0
Salaries, Officers 53,476 36,977
Wages & Related 266,214 182,043
Contract Labor 24,062 17,212
Insurance 17,922 14,309
Professional Fees 38,680 25,779
Supplies 88,262 52,604
Taxes 11,115 13,218
Utilities 31,367 26,579
Drayage 14,822 8,140
Office 11,557 2,624
Shareholders' Expense 405 0
Advertising & Marketing 11,197 9,300
Depreciation & Amortization 29,215 28,585
------------ ---------
Total Expenses 611,311 417,370
------------ ---------
Profit (Loss) from Operations 54,286 (344,859)
Other Income & (Expense):
Other Income 7,034 29,743
Other Expenses 8,077 (23,876)
------------ ---------
Total Other Income (Expense) (1,043) 5,867
------------ ---------
Income (Loss) Before Taxes 53,243 (338,992)
Provision for Income Tax (1,000) 0
------------ ---------
Net Income (Loss) 52,243 $(338,992)
==========
Retained Earnings (December 31, 1995) 1,366,131
------------
Retained Earnings (March 31, 1996) $ 1,418,374
============
Income (Loss) Per Share $ 0.01 $ (0.10)
----------- ---------
See Accompanying Notes
4
<PAGE>
PART I: FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Statement of Cash Flows
Three Months Ended
March 31, 1996 March 31, 1995
Cash Flows From Operating Activities:
Cash Received From Customers $ 667,741 $ 71,714
Cash Received From Other Sources 6,921 29,743
Cash Paid to Suppliers & Employees (453,550) (157,448)
Interest Received 112 4,573
Interest Paid (7,187) 0
Taxes Paid in Cash (84,000) (28,200)
----------- ----------
Cash Provided by Operations 130,037 (79,618)
----------- ----------
Cash Flows From Investing Activities:
Payments Made on Brown Bear Property 0 (50,000)
Bond Deposit (5,000) 0
Proceeds From Borrowing 0 121,000
Purchase of Equipment (108,389) (8,015)
Payments Made for Development (86,533) (82,805)
----------- -----------
Cash Used in Investing Activities (199,922) (19,820)
Cash Flows From Financing Activities:
Payments Made On Notes Payable (850) 0
Repurchase and Retirement of
Common Stock (15,742) (38,111)
---------- ----------
Cash Used in Financing Activities (16,592) (38,111)
---------- ----------
Net Increase (Decrease) in Cash (86,477) (137,549)
Cash, Beginning 180,618 146,713
---------- ----------
Cash, Ending $ 94,141 $ 9,164
========== ==========
Reconciliation of Net Income to Cash
Provided by Operating Activities:
Net Income (Loss) 52,243 (338,992)
Changes in Operating Assets & Liabilities:
Decrease in Accounts Receivable 2,144 (798)
(Increase) Decrease in Inventory 38,818 149,560
Decrease in Other Current Assets (5,911) 584
Increase in Accounts Payable 80,485 89,212
Increase (Decrease) in Accrued Expenses 16,043 20,431
Decrease in Income Tax Payable (84,000) (28,200)
Increase in Deferred Income Taxes 1,000 0
Depreciation 27,777 27,147
Amortization 1,438 1,438
----------- ----------
Cash Provided by Operations $ 130,037 $ (79,618)
=========== ==========
See Accompanying Notes
5
<PAGE>
PART I: FINANCIAL INFORMATION
Original Sixteen to One Mine, Inc.
Notes to Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF BUSINESS
Original Sixteen to One Mine, Inc., was incorporated October 9,
1911, as a California corporation. It owns and operates mining
claims in both Sierra and Trinity Counties located in Northern
California.
REVENUE
Revenue consists of gold and silver mined during the reporting
period, either sold during the period or held in inventory. It
is recorded at the spot price per ounce on the statement date.
Revenue does not include unprocessed high-grade ore mined during
the reporting period. Gold and silver held in inventory is
recorded at the spot price per ounce on the balance sheet date.
INVENTORY
Inventory consists of gold bullion, dore, specimens and jewelry.
Inventory is recorded at the spot price per ounce on the balance
sheet date.
FIXED ASSETS
Fixed assets are stated at historical cost. Depreciation is
being calculated using straight-line and accelerated methods over
the following estimated useful lives:
Vehicles 3 to 5 years
Equipment 5 to 7 years
Buildings 18 to 31.5 years
DEPLETION POLICY
The Company has established a depletion policy for its mineral
and mining properties. Because of the geological formation in
the Alleghany Mining District, estimates of ore reserves cannot
be calculated: therefore, a cost per unit depletion factor cannot
be determined. Management has determined that a straight-line
method of depletion over a 25 year period would most accurately
match the estimated production of the mining properties (see Note
2). If estimates of ore reserves become available, the units of
production method of depletion will be used.
DEVELOPMENT
In February 1994, the Company began development of the 2483 winze
into unexplored ground. Costs associated with the development
have been capitalized.
INCOME TAXES
Differences exist between the amount of income or loss reported
for financial statements and income tax reporting purposes.
These differences are attributable to the use of the cash basis
reporting of more revenues and accelerated depreciation and
depletion methods for income tax purposes. No provision for
income taxes has been made in the current year because of the
uncertainty of revenues for the remainder of the year.
NET GAIN OR LOSS PER SHARE
Net gain or loss per share has been computed using the common
shares outstanding at end of reporting period. The Company's
stock equivalents have been excluded from the calculation of
shares outstanding.
NOTE 2 - MINING PROPERTY
The original mining property is carried on the books at its March
1, 1913, value of $379,000 as determined for depletion purposes
in connection with Federal income taxes. This value together
with the cost of mining properties acquired in 1920 and 1924 for
the aggregated sum of $145,145 has been fully amortized through
depletion charges. During 1994, the Company purchased mining
properties at a cost of $300,000, and capitalized $86,633 in
legal costs. These legal costs were incurred in defense of
certain mining claims which is currently under appeal.
NOTE 3 - INCOME TAXES
For Federal income tax purposes, the Company has operating loss
carryforwards which may provide future tax benefits, expiring as
follows:
Year of Expiration
2006 $345,753
2007 48,562
--------
$394,315
========
For California State income taxes, the Company has no operating
loss carryforwards.
NOTE 4 - NOTES PAYABLE
At March 31, 1996, the Company has an $18,504 secured 9.95% note
payable in connection with the acquisition of a Chevrolet Astro
Van. The note is payable in 60 monthly installment of $442.
At March 31, 1996, the Company has revolving lines of credit.
The credit lines expire June 30, 1996. The borrowing under these
lines of credit at March 31, 1996, are $67,847 and $193,074.
