Quarterly Report (10-q)

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 June 30, 2022
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
[ ] N0 [X]

As of June 30, 2022, 14,870,631 shares of Common Stock, par value $.033 per share, were issued and outstanding.

Item 1. PART I

Original Sixteen to One Mine, Inc.
Condensed Balance Sheet
June 30, 2022 & December 31, 2021

ASSETS

                                             2022        2021
Current Assets
  Cash                                 $  1,113      $  4,802
   Accounts receivable                  131,561       127,564
   Inventory                            130,438       130,438
   Capitalized Expenses                 899,195       604,044
                                        -------       -------
    Total current assets              1,162,307       866,848
                                        -------       -------

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                 278,377      278,377
                                         -------      -------

Fixed Assets at Cost
   Equipment                             605,646      597,602
   Buildings                             209,487      209,487
   Vehicles                              168,925      168,925
                                       ---------    ---------
  Total fixed assets at cost             984,058      976,014
                                       ---------    ---------
Less accumulated depreciation          (964,838)    (963,606)
                                     -----------  -----------
   Net fixed assets                      19,220       12,408
                                     -----------  -----------

Other Assets
   Bonds and misc. deposits               4,091        4,091
                                       ---------      -------

   Total Assets                     $ 1,463,995   $ 1,161,724
                                     ==========    ==========


Original sixteen to One Mine, Inc.
Condensed Balance Sheet Continued

LIABILITIES & STOCKHOLDERS' EQUITY
                                              2022       2021
Current Liabilities
   Accounts payable & accrued expenses $   561,014  1,417,728
   Due to related party                    265,681    515,993
   Notes payable Short-term              2,080,578    543,558
                                           --------   -------
   Total Current Liabilities             2,907,273  2,477,279
                                           --------   -------

Long Term Liabilities
   Notes payable due after one year         97,236     97,236
                                           --------   -------
Total Liabilities                        3,004,509  2,574,515
                                        ----------  ---------

Stockholders' Equity

Capital stock, par value $.033:
30,000,000 shares authorized: 14,870,631 issued and outstanding as of Dec. 31, 2021 and 14,870,631 as of June 30, 2022

                                        490,731       490,731
   Additional paid-in capital         2,446,044     2,446,044
   (Accumulated deficit)
   Retained earnings                (4,477,289)   (4,349,566)
                                   ------------   -----------
   Total Stockholders' Equity       (1,540,514)   (1,412,791)
                                   ------------   -----------

Total Liabilities and
Stockholders' Equity               $ 1,463,995   $ 1,161,724
                                    ===========  ============

See Accompanying Notes

?
Original Sixteen to One Mine, Inc.
Statement of Operations

Three Months Ending June 30, Six Months Ending June 30,

                     2022          2021       2022       2021
                   ------        ------     ------     ------
Revenues:
Gold Sales           -           2,815         -        8,278
 Other Revenue       2,010       53,602      3,997      53,602
                ---------    ---------   ---------   --------
Total revenues   $  2,010     $ 56,417   $  3,997      61,880
                ---------    ---------  ----------   --------
Operating expenses:
Salaries and wages 15,000       15,000     30,000      30,000
Contract Labor     38,534        8,911     46,552      14,448
Utilities           4,648        6,725      9,896      13,901
Taxes               2,787        4,841      5,968       5,252
Supplies              271         (373)      (115)        789
Insurance           2,383        2,871      5,436       5,844
Small equip.&
repairs             1,724        1,407      3,667       3,717
Drayage             4,723        3,279     12,413       4,849
Corporate expenses  1,067        2,250      2,112       2,483
Legal & Compliance  6,731        6,260     12,081       6,440
Mine Maintenance      161         (506)       304         510
Depreciation & amort. 616          596      1,231       1,192
Other expenses        444        9,015      1,081      11,736
                  -------      -------   --------- ----------
Total operating
expenses           79,089       60,276    130,626     101,161
                  --------    --------   --------- ----------
Profit (Loss) from
Operations        (77,079)      (3,859)  (126,629)   (39,281)

Other Income:        1,200       1,200     2,500       2,400
Other Expense:         -          -          -           -
                  ---------     -------- --------- ----------
Total Other income   1,200       1,200     2,500       2,400
                   --------     -------- --------- ----------
Profit (Loss)
before taxes       (75,879)     (2,659)  (124,129)   (36,881)
                   ----------   --------- --------- ---------
Income tax benefit
(expense)            (3,594)    (1,600)    (3,594)    (1,600)
                   ----------   --------- --------- ---------
Net profit
(loss)           $ (79,473)  $  (4,259)  (127,723)   (38,481)
                  ===========  ========== ========= =========

Basic and diluted (loss)
earnings per share $ (.005) $ (.0003) $ (.008) $ (.003)

Shares used in the
calculation of net (loss)
income per share
14,870,631 14,870,631 14,870,631 14,870,631

See Accompanying Notes

Original Sixteen to One Mine, Inc.
Statement of Cash Flows
Six Months Ended June 30, 2022 and June 30, 2021

                                Six Months Ended June 30,
                                       2022            2021
                             --------------      ------------
Net profit (loss)             $    (127,723)    $    (38,481)
Cash Flows From Operating Activities:
Depreciation and amortization         1,231            1,192
(Increase)Decrease in
 accounts receivable                 (3,997)         (55,839)
Decrease(Increase) in inventory         -             70,028
(Increase)Decrease in other
current assets                      (295,151)        (166,023)
(Decrease) increase in accounts payable
and accrued expenses                (856,713)         (47,041)
(Decrease)increase in related party loans
                                    (250,311)         149,423
Decrease) increase in short term notes
                                   1,537,019         (152,594)
                               ------------           -------
Net cash (used) provided by

operating activities 4,355 (239,335)

Cash Flows From Investing Activities:

Fixed Asset Purchases              (8,044)              -
Proceed from sale real estate          -                -
 Other assets bonds misc. deposits     -                -
                             -----------          ----------
  Net cash (used) provided by
    investing activities           (8,044)              -
                              -----------         -----------

Cash Flows From Financing Activities

Increase (decrease) notes payable    -                  -
Proceeds from sale of common stock   -               15,840
Additional paid-in capital           -              224,160
                              -----------         -----------
Net cash provided (used) by
financing activities                 -              240,000
                             ------------        ------------

(Decrease) increase in cash      (3,689)                665

Cash, beginning of period         4,802               21,137
------------         ----------
Cash, end of period             $ 1,113     $         21,802
                             ============        ============

Supplemental schedule of other cash flows:

Cash paid during the period for:

Interest expense              $       -            $     -
                            ============         ===========
Income taxes                 $        -            $     -
                             ============        ===========

NOTES TO THE FINANCIAL STATEMENTS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business: Original Sixteen to One Mine, Inc. (the Company) incorporated in 1911, actively operates the Sixteen to One mine in Alleghany, California.

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 proven reserves cannot be calculated, and accordingly, a cost per unit depletion factor cannot be determined. No depletion deduction is recorded.

Revenue Recognition: New production of gold is recorded as an asset at the current spot price (.999 fine purity). For income tax purposes revenues are not recognized until the gold is sold.

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 for the period. The "exploration state" as defined in Guide 7(a)(4)(iii) may apply.

2. Financial statements contain adjustments necessary to present fairly the Company's financial position at June 30, 2022 and December 31, 2021. The results of operations and cash flows for the second quarter of 2022 and 2021 are reported. Financial statements are prepared in accordance with Generally Accepted Accounting Principles for interim financial information and with instructions to Form 10-Q and Item 310(b) of Regulation S-B.

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION

The Sixteen to One mine requires an unfamiliar operation, which is recognized by its owners, miners, geologists, engineers, and some public agencies. The Company celebrated its 100th year anniversary on Oct. 9, 2011. becoming the oldest gold mining corporation in the United States. Production is approximately 1,500,000 ounces of gold.

Thirty miles of horizontal workings and millions of cubic feet of vertical excavations called stopes exist. Once an area is targeted, travel ways and escape routes are brought into safety compliance. Production miners set up a heading and begin a drill-blast-muck sequence into the quartz. Gold is hosted in the quartz vein. Metal detectors are regularly used underground as a tool for guiding the direction of the work and to classify the ore underground, thereby reducing costs.

Production is termed as "feast or famine". When operations detect the presence of gold, the Company evaluates the environment and changes from exploration to development into production.

FINANCIAL REPORT NOTES:

No value is recorded on the balance sheet for standing timber. No value is recorded on the balance sheet for water- rights. Reduced value is recorded on the balance sheet for buildings, equipment and land. No value is recorded on the balance sheet for goodwill.

For the six-month period ended June 30,2022, compared to December 31, 2021, there were no significant changes to the balance sheet.

For the six-month period ended June 30, 2022, compared to the same period in 2021, total operating expenses increased by $29,465 (23%) due to expanding pumping programs.

For the six-month period ended June 30, 2022, compared to the same period in 2021, the company showed a loss of $127,723 compared to a loss of $38,481. The $89,242 (70%) difference is due to expanded pumping programs.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company may make written and oral forward-looking statements about matters that involve risks and uncertainties that may cause actual results to differ from projected results. Important factors that may cause actual results to differ 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.
- Environmental risks
- Changes in laws and government regulations, especially those relating to taxes.
- The availability and timing of permits and approval relating to operations, expansion of operations, and financing of operations
- Fluctuations in interest rates and other adverse financial conditions
- Force majeure events.

ITEM 4: CONTROLS AND PROCEDURES

During gold production, security procedures include multiple levels of gold custody, from the mine to sales. Inventory control procedures were established by a SEC certified auditing firm.

PART II

Item 1 LEGAL PROCEEDINGS

None

Item 1a RISK FACTORS

(a) Price of Gold

The daily spot price of gold has modest financial effect on gross revenue if it's between $1,700 and $1,800 an ounce. A drop below $1,700 may have an adverse effect on the Company's revenue. Closing spot price on June 30, 2022, was $1,817.00.

(b) Lack of Proven Reserves

A sense of uncertainty is perceived by some. Caution is recommended in using reserves as an economic tool for valuing a mining company. The Company has no ability to measure reserves using the mathematical tools recognized in the mining industry.

(c) Governmental Regulation

The attached financial statements are unaudited. Therefore, the Company is not in full compliance with the SEC regulation for companies listed on an exchange. The Company is in compliance with all known safety and environmental standards and regulations.

(d) Liquidity

A buy market for gold is global and a spot price per ounce is always available.

(e) Price of Stock

Bids and offers are publicly recorded on the stock page of the Company's web site. Exposure is negligible. A per share price offer exists for shareholders listed on the October 2021, shareholder list at $1.00 per share which expires on March 31, 2023.

Item 2 UNREGISTERED SALES OF EQUITY

None

Item 3. DEFAULTS ON SECURITIES

None

Item 4. MINE SAFETY DISCLOSURES

For the six-month ended June 30, 2022, the Mine Safety and Health Administration (MSHA) issued no citations or orders to report.

Item 5. OTHER INFORMATION

The financial statements are prepared by management in accordance with generally accepted accounting practices. Such rules allow the omission of certain information and footnote disclosures included in financial statements prepared in accordance with generally accepted audited accounting principles as long as the statements are not misleading.

All adjustments necessary for a fair presentation of the interim statements are included. These adjustments are of a normal recurring nature.

Management evaluates its estimates and assumptions; actual amounts may differ. 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 June 30, 2022.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ORIGINAL SIXTEEN TO ONE MINE, INC.
(Registrant)

Michael M. Miller
President and Director
Dated: August 24, 2022

Original Sixteen to One (CE) (USOTC:OSTO)
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