SECURITIES AND EXCHANGE COMMISSION
                                 WASHINGTON, D.C.  20549


                                     FORM 10-Q



                      QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                        OF THE SECURITIES EXCHANGE ACT OF 1934



   For the Quarter Ended March 31, 2010       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.

                        Yes:                        No:   X



As of March 31, 2010, 13,373,505 shares of Common Stock, par value $.03 per
share, were issued and outstanding.


PART I 1. FINANCIAL INFORMATION Original Sixteen to One Mine, Inc. Condensed Balance Sheet March 31, 2010 and December 31, 2009 March 31, 2010 December 31, 2009 ASSETS Current Assets Cash $ 7,742 $ 7,321 Accounts receivable 5,051 3,711 Inventory 416,681 414,331 ---------- ---------- Total current assets 429,474 425,363 ---------- ---------- Mining Property Real estate and property rights net of depletion of $524,145 230,401 230,401 Real estate and mineral property 47,976 345,330 ---------- ---------- 278,377 575,731 ---------- ---------- Fixed Assets at Cost Equipment 925,243 925,243 Buildings 209,487 209,487 Vehicles 255,128 255,128 ---------- ---------- 1,389,858 1,389,858 Less accumulated depreciation (1,308,220) (1,303,866) ---------- ---------- Net fixed assets 81,638 85,992 ---------- ---------- Other Assets Bonds and misc. deposits 7,962 5,460 ---------- ---------- Total Assets $ 797,451 $1,092,546 ========== ========== LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities Accounts payable & accrued expenses 598,217 648,434 Due to related party 217,217 647,555 Notes payable due within one year 58,700 58,700 ---------- ---------- Total Current Liabilities 874,134 1,354,689 ---------- ---------- Long Term Liabilities Notes payable due after one year 97,236 97,236 ---------- ---------- Total Liabilities 971,370 1,451,925 ---------- ---------- Stockholders' Equity Capital stock, par value $.03: 30,000,000 shares authorized: 13,373,505 shares issued and outstanding as of March 31, 2010 and as of December 31, 2009 439,876 439,876 Additional paid-in capital 2,005,282 2,005,274 (Accumulated deficit) retained earnings (2,619,077) (2,804,537) ---------- ---------- Total Stockholders' Equity (173,919) (359,379) ---------- ---------- Total Liabilities and Stockholders' Equity $ 797,451 $1,092,546 ========== ========== See Accompanying Notes
Original Sixteen to One Mine, Inc. Statement of Operations and Retained Earnings Three Months Ended March 31, 2009 and March 31, 2009 Three Months Ending March 31, 2010 2009 ------ ------ Revenues: Gold & jewelry sales $ 11,067 $ 47,333 ----------- ----------- Total revenues 11,067 47,333 ----------- ----------- Operating expenses: Salaries and wages 11,170 17,282 Contract Labor 8,792 6,765 Telephone & utilities 11,645 8,266 Taxes - property & payroll 10,297 9,075 Insurance 277 190 Supplies 23,441 4,571 Small equipment & repairs 1,451 5,054 Drayage 7,612 1,524 Corporate expenses 1,150 2,775 Compliance/safety 1,138 73 Legal and accounting 2,460 245 Depreciation & amortization 4,354 4,898 Other expenses 19,400 2,208 ---------- ---------- Total operating expenses 103,187 62,926 ---------- ---------- Profit (Loss) from operations (92,120) (15,593) Other Income & Expenses: Other Income 282,071 3,258 Other Expenses (3691) (26,433) ------- -------- Total Other Income (Expense) 278,380 (23,175) ---------- ----------- Profit (Loss) before taxes 186,260 (38,768) ---------- ----------- Income Tax Benefit 800 - Net Profit (Loss) $ 185,460 $ (38,768) ============ =========== Basic and diluted Gain (Loss) per share $ .013 $ (.002) ============ ============ Shares used in the calculation of net loss income per share 13,373,505 13,373,505 ============ =========== See Accompanying Notes
Original Sixteen to One Mine, Inc. Statement of Cash Flows Three Months Ended March 31, 2010 and March 31, 2009 Three Months Ended March 31, 2010 2009 -------------- -------------- Cash Flows From Operating Activities: Net profit (loss) $ 185,460 $ (38,768) operating activities: Depreciation and amortization 4,354 4,898 (Increase)Decrease in accounts receivable (1,340) (639) Decrease(Increase) in inventory (2,350) (9,964) (Increase)Decrease in other current assets - - (Decrease) increase in accounts payable and accrued expenses 50,217) 309,876 (Decrease) increase in short term notes (430,338) (261,383) ------------ ---------- Net cash (used) provided by operating activities (294,431) 4,020 ------------ ----------- Cash Flows From Investing Activities: Sale of Real Estate 300,000 - Mining Claim fees, capitalized (2,646) - (Increase) Bonds, Misc Deposits (2,502) - ------------- ----------- Net cash (used) provided by investing activities 294,852 - ------------- ----------- Cash Flows From Financing Activities Increase (decrease) notes payable - - (Increase) decrease in notes receivable - - Proceeds from sale of common stock - - Additional paid-in capital - - ------------ ------------ Net cash provided (used) by financing activities - - ------------ ------------ (Decrease) increase in cash 421 4,020 Cash, beginning of period 7,321 - ------------ ---------- Cash, end of period $ 7,742 $ 4,020 ============ ============ Supplemental schedule of other cash flows: Cash paid during the period for: Interest expense $ 3,408 $ 26,208 Income Taxes $ - $ - Gain on Sale of Asset $ 280,000 ============ ============ See Accompanying Notes
NOTES TO THE FINANCIAL STATEMENTS I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business: Original Sixteen to One Mine, Inc. (the Company) was incorporated in 1911 and is actively involved in operating gold mines in Alleghany, California; currently, in maintenance status. Inventory: Inventory consists of gold bullion, specimens and jewelry. Gold bullion and specimens are quoted at the market price for gold bullion. Jewelry is quoted at the market price for the gold content plus labor cost. Gold bullion is accounted for using the FIFO method. All other inventory is Accounted for using the specific identification method. 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 ore reserves currently cannot be calculated, and accordingly, a cost per unit depletion factor cannot be determined. Should estimates of ore reserves become available, the units of production method of depletion will be used. Until such time, no depletion deduction will be recorded. Revenue Recognition: As they are mined, gold specimens are recorded in inventory and revenue is recognized using quoted market prices for gold. For income tax purposes revenues are not recognized until the gold is sold. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. 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 and is in the "exploration state" as defined in Guide 7(a)(4)(iii). 2. In the opinion of management, the financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company's financial position at March 31, 2010 and December 31, 2009, the results of operations and cash flows for the three-month periods ended March 31, 2010 and 2009. The unaudited financial statements have been prepared in accordance with Generally Accepted Accounting Principles for interim financial information and with the instructions to Form 10-Q and Item 310(b) of Regulation S-B. II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION The Sixteen to One mine in the Alleghany Mining District is a unique mine and requires a unique operation, which has been recognized by its owners, its miners, geologists, engineers, and some public agencies during the last decade of the twentieth century and to the present. It is a traditional high-grade, hard rock, underground gold mine. The same company owns and operates (maintains) the mine. Original Sixteen to One Mine Inc, (owner) was incorporated in California in 1911. Experts estimate that less than twenty percent of the proven and probable ore deposit has been mined. Production is approximately 1,500,000 ounces of gold. There are over twenty-eight miles of horizontal workings and millions of cubic feet of vertical excavations called stopes. The entire grounds are not maintained for mining. Once an area is targeted for mining, travel ways and escape routes are brought into safety compliance. Production miners set up a heading (face) and begin a drill-blast-muck sequence into the quartz. Gold is hosted in the quartz vein in exceedingly rich concentrations called "pockets". Metal detectors are regularly used underground as a tool for guiding the direction of the work. Metal detectors are also used as a tool to separate the ore underground. This has the positive affect of reducing the volume of shot rock from the mine, thereby reducing costs. In 1992, the company initiated a gold marketing plan of selling gold in quartz as a gemstone. This produces revenue significantly greater than selling gold into the spot market. Demand for the Sixteen to One gold-in-quartz gemstone exceeds supply. Production has been termed a "feast or famine" situation for over 100 years. Reserves in a high-grade gold mine cannot be termed as "proven". The company hoards gold and sells it according to short-term cash needs. This fact requires an operator to manage its cash flow to operate between pockets. It is difficult to undertake major expansion plans with an uncertain supply of capital. The Company has announced general plans to build a new shaft in the northern section of its Alleghany patented claims. BALANCE SHEET COMPARISONS For the three-month period ending March 31, 2010 Real estate and mineral property decreased by $297,354 (86%) due to the sale of the Brown Bear Mine in Trinity County. See 2009 10-K notes for more information. Bonds and Miscellaneous deposits increased by $2,502 (46%) due to the posting of a bond with State Fund Insurance Company for Worker's Compensation Insurance. Noted due related parties decreased by $430,338 (66%) due to the application of an advance on the sale of the Brown Bear Mine against the purchase. See 2009 10-K notes for more information. STATEMENT OF OPERATIONS Revenues for the three-month period ending March 31, 2010 decreased by $36,266 (77%) compared with the same period for 2009 due to lower sales of inventory combined with no gold production. For the three-month period ended March 31, 2010 compared to the same period in 2009 operating expenses increased overall by $30,112 (48%) due to increased maintenance activity in 2010. For the three-month period ended March 31, 2010 compared to the same period in 2009 other income increased by $278,813 (86%) due to the gain of $280,000 on the sale of Brown Bear Mine. Other expenses decreased by $22,742 (98%) due to an adjustment to interest expense in 2009 that did not occur in 2010 as well as less interest expense in 2010. For the three-month period ended March 31, 2010 compared to the same period in 2009 the company showed a profit of $185,460 compared to a loss of $38,768. The increase of $224,228 (578%) is attributable to the closing of escrow on the sale of the Brown Bear Mine in January. For details see the 2009 10-K notes. LIQUIDITY AND CAPITAL RESOURCES The Company's liquidity is substantially dependent upon the results of operations. The Company maintains a gold inventory which it liquidates to satisfy working capital needs. There is no assurance that inventory is adequate to sustain the Company. PART II LEGAL PROCEEDINGS In July 2009 the Company and its president were served a complaint for damages in Superior Court of the State of California, County of Sierra by the California Regional Water Quality Control Board, Central Valley Region. Discovery is ongoing. The case number is: No. 7019. On January 6, 2010, the California Department of Conservation, formally the Division of Mines and Geology filed a complaint for statutory reporting and mining fees and penalties alleging failures by the Company. Various Public Resources Code Sections were cited substantially related to surface mining. On March 24, 2010, the Company filed verified answers denying any wrongdoing. Discovery is ongoing. On September 3, 2009 the Company filed a complaint against Sierra County for damages suffered due to a gasoline and diesel leak onto its property. Both Sides seek settlement. Case number 7068. SUBSEQUENT EVENTS none OTHER INFORMATION The unaudited interim consolidated financial statements of Original Sixteen to One Mine, Inc. (the Company) have been prepared by management in accordance with generally accepted accounting practices. Such rules allow the omission of certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted audited accounting principles as long as the statements are not misleading. In the opinion of management, verified by signature below, all adjustments necessary for a fair presentation of these interim statements have been included. These adjustments are of a normal recurring nature. The preparation of the Company's financial statements in conformity with accounting principles accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, as well as the reported amount of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and assumptions; however, actual amounts could differ from those based on such estimates and assumptions. No accounting principle upon which the Company's financial status depends, requires estimates of proven and probable reserves and/or assumptions of future gold prices. Commodity prices may significantly affect the company's profitability and cash flow. No independent accounting firm or auditors have any responsibility for the accounting and written statements of the Form 10-QSB. 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 March 31, 2009. CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 From time to time the Original Sixteen to One Mine, Inc. (the Company), will make written and oral forward-looking statements about matters that involve risks and uncertainties that could cause actual results to differ materially from projected results. Important factors that could cause actual results to differ materially 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 resulting in cave-ins, flooding, rock-bursts or rock slides - Difficulties associated with managing complex operations in remote areas - Unanticipated milling and other processing problems - The speculative nature of mineral exploration - Environmental risks - Changes in laws and government regulations, including those relating to taxes and the environment - The availability and timing of receipt of necessary governmental permits and approval relating to operations, expansion of operations, and financing of operations - Fluctuations in interest rates and other adverse financial market conditions - Other unanticipated difficulties in obtaining necessary financing with specifications or expectations - Labor relations - Accidents - Unusual weather or operating conditions - Force majeure events - Other risk factors described from time to time in the Original Sixteen to One Mine, Inc., filings with the Securities and Exchange Commission Many of these factors are beyond the Company's ability to control or predict. Investors are cautioned not to place undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update its forward-looking statements, whether as a result of receiving new information, the occurrence of future events or otherwise. 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) /s/Michael M. Miller President and Director Dated: June 15, 2010