ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
Balance Sheet
Original Sixteen to One Mine, Inc. is a distinct company. It is
the only operating company of its kind remaining in the United
States. Management knows the assets of the Company are
understated due to the age of acquisition. Exploration and
development expenses are not capitalized. The Company celebrated
its 100-year anniversary on Oct. 9, 2011. It is the oldest gold
mining corporation in the United States. Gold inventory is
recorded at spot price despite proven additional value.
No value is recorded on the balance sheet for timber. The
company owns 470 acres of prime forested timberland. No value is
recorded on the balance sheet for the Company owned water-
rights. Reduced value is recorded on the balance sheet for
buildings, equipment and land. No value is recorded on the
balance sheet for marketable aggregate and decorative stone
currently stockpiled. No value is recorded on the balance sheet
for goodwill. Fixed assets are recorded at historic cost less
depreciation.
(A) Comparisons of 2020 with 2019.
Balance Sheet Comparisons
Assets:
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, cash increased by
$17,389 (392%) due to cash flow variations. Accounts receivable
increased by $250 (.5%).
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019 inventory increased by
$3,734 (1.2%) due to changes in mining objectives in 2020 and
sales of inventory to fund operations.
Liabilities:
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, accounts payable
decreased by $18,821 as the company relied on loans to finance
the operation.
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, notes due related
parties increased by $89,200 (200%) due to a combination of
additional loans and interest expense.
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, long-term notes
decreased by $50,864 (25%) as a result of scheduled payments.
Statement of Operations
Income:
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, revenue decreased by
$138,061 (60%) primarily due to a reduction in mining and
increase in maintenance.
Operating Expenses:
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, operating expenses
decreased overall by $176,629 (40%) due to reduced operations in
2020.
Other Income and Expense:
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, other income increased
by $2,000 (71%) due to more rent collected on a company house.
For the one-year period ended December 31, 2020, compared to the
one-year period ended December 31, 2019, other expenses
decreased by $16,784 (100%)primarily due to a reconciliation of
the stock account that was needed due to a discrepancy
accumulated by years of rounding.(par value $0.033)
The company showed a loss of $173,578 in 2020 compared to a loss
of $230,933 in 2019. The $57,355 (25%) difference is primarily
due to lower operating costs and reduced operations in 2020
compared to 2019. The basic and diluted loss per share was
(.012) in 2020 compared to (.016) in 2019. The number of shares
used for the 2020 calculation was 14,390,631 and the number of
shares for the 2019 calculation was 14,342,097.
(A) Comparisons of 2019 with 2018.
Balance Sheet Comparisons
Assets:
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, cash increased by
$1,137 (34%) due to cash flow variations. Accounts receivable
decreased by $10,651 (16%).
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, inventory decreased by
$123,638 (29%) due to changes in mining objectives in 2019 and
sales of inventory to fund operations.
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, equipment increased by
$3,450 due to the purchase of a pump.
Liabilities:
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, accounts payable
increased by $68,159 as the company relied on credit to finance
the operation.
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, notes due related
parties increased by $18,439 (7%) due to a combination of
additional loans and interest expense.
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, long-term notes
decreased by $9,231 (8%) as a result of scheduled payments with
no new loans taken out.
Statement of Operations
Income:
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, revenue increased by
$23,716 (11%) primarily due to increased gold sales in 2019.
Operating Expenses:
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, operating expenses
decreased overall by $90,608 (17%) due to reduced operations in
2019.
Other Income and Expense:
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, other income decreased
by $1,795 (39%) due to less rent collected on a company house.
For the one-year period ended December 31, 2019, compared to the
one-year period ended December 31, 2018, other expenses
decreased by $16,274 (50%)primarily due to a reconciliation of
the stock account that was needed due to a discrepancy
accumulated by years of rounding.(par value $0.033)
The company showed a loss of $230,933 in 2019 compared to a loss
of $359,736 in 2018. The $128,803 (36%) difference is primarily
due to lower operating costs in 2019 as the result of reduced
operations compared to 2018. The basic and diluted loss per
share was (.016) in 2019 compared to (.025) in 2018. The number
of shares used for the 2019 calculation was 14,390,631 and the
number of shares for the 2018 calculation was 14,342,097.