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 September 30, 2018       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 [ ] No [X]


As of September 30, 2019, 14,338,855 shares of Common Stock, par value $.03 per
share, were issued and outstanding.



PART I ITEM 1. FINANCIAL INFORMATION Original Sixteen to One Mine, Inc. Condensed Balance Sheet Sept. 30, 2019 & December 31, 2018 ASSETS Current Assets Cash $ 7,720 $ 3,296 Accounts receivable 55,524 67,175 Inventory 250,082 429,329 Other current assets 1,000 - ------- ------- Total current assets 314,326 499,800 ------- ------- 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 597,602 594,152 Buildings 209,487 209,487 Vehicles 168,925 168,925 --------- --------- Total fixed assets at cost 976,014 972,564 --------- --------- Less accumulated depreciation (923,441) (909,387) ----------- ----------- Net fixed assets 52,573 63,177 ----------- ----------- Other Assets Bonds and misc. deposits 14,869 21,460 --------- ------- Total Assets $ 660,145 $862,814 =========== ==========
Original sixteen to One Mine, Inc. Condensed Balance Sheet Continued LIABILITIES & STOCKHOLDERS' EQUITY September 30, 2019 & December 31, 2018 Current Liabilities Accounts payable & accrued expenses $1,316,540 1,274,559 Due to related party 244,475 229,472 Notes payable Short-term 538,558 538,558 -------- ------- Total Current Liabilities 2,099,573 2,042,589 -------- ------- Long Term Liabilities Notes payable due after one year 103,418 110,323 -------- ------- Total Liabilities 2,202,991 2,152,912 -------- ------- Stockholders' Equity Capital stock, par value $.03: 30,000,000 shares authorized: 14,338,855 issued and outstanding as of Sept. 30, 2018 and as of December 31, 2017 473,289 473,289 Additional paid-in capital 2,222,892 2,222,892 (Accumulated deficit) Retained earnings (4,239,026) (3,986,279) ------------ ----------- Total Stockholders' Equity (1,542,845) (1,290,098) ------------ ----------- Total Liabilities and Stockholders' Equity $ 660,146 $ 862,814 ============ ============ See Accompanying Notes
Original Sixteen to One Mine, Inc. Statement of Operations and Retained Earnings Three Months Ending Sept. 30, Nine Months Ending Sept. 30, 2019 2018 2019 2018 ------ ------ ------ ----- Revenues: Gold & Jewelry Sales (14,935) (12,470) 137,614 77,627 Other Revenue - - - 48,000 --------- --------- -------- -------- Total revenues $ (14,935) $ (12,470) $ 137,614 $ 125,627 --------- --------- -------- -------- Operating expenses: Salaries and wages 15,000 15,000 45,000 45,000 Contract Labor 41,323 53,011 153,247 183,188 Utilities 24,573 24,066 66,844 65,258 Taxes - property & payroll 8,786 8,962 17,657 17,987 Supplies 5,599 4,297 15,694 16,016 Insurance 1,592 895 4,531 3,413 Small equipment & repairs 1,468 678 7,943 8,321 Mine Maintenance 4,800 7,427 14,911 14,343 Drayage 3,743 3,579 11,948 8,646 Corporate expenses 7,249 1,472 10,759 3,382 Legal and Compliance 914 1,500 7,670 11,931 Depreciation & amortization 4,520 6,343 14,053 19,028 Other expenses 2,656 1,692 6,640 3,765 ---------- ---------- ------- ------- Total operating expenses 122,223 128,922 376,897 400,278 ---------- ---------- -------- -------- Profit (Loss) from operations(107,288) (141,392) (239,283) (274,651) Other Income: (16) 838 2,678 2,808 Other Expense: 3,883 3,006 14,042 16,523 -------- --------- --------- --------- Total Other income(expense) (3,899) (2,168) (11,364) (13,715) -------- ---------- ------- -------- Profit (Loss) before taxes (111,187) (143,560) (250,647) (288,366) -------- ---------- --------- --------- Income tax benefit (expense) - - 800 1,600 -------- ---------- --------- -------- Net profit (loss) $ (111,187) $ (143,560) $ (251,447) $ (289,966) ============ =========== ========== ========== Basic and diluted (loss) earnings per share $ (.01) $ (.01) $ (.02) $ (.02) ============ ============ ========= ========= Shares used in the calculation of net (loss) income per share 14,338,855 14,338,855 14,338,855 14,338,855 ============ =========== ========== =========== See Accompanying Notes
Original Sixteen to One Mine, Inc. Statement of Cash Flows Nine Months Ended Sept. 30, 2019 and Sept. 30, 2018 Nine Months Ended Sept. 30, 2019 2018 -------------- ------------ Net profit (loss) $ (251,447) $ (289,966) Cash Flows From Operating Activities: Depreciation and amortization 14,053 19,028 (Increase)Decrease in accounts receivable 10,650 6,934 Decrease(Increase) in inventory 179,247 206,528 (Increase)Decrease in other current assets - (Decrease) increase in accounts payable and accrued expenses 40,681 47,164 (Decrease) increase in related party loans 15,004 19,328 (Decrease) increase in short term notes - 1,282 ------------ ---------- Net cash (used) provided by operating activities 8,188 10,298 ------------ ---------- Cash Flows From Investing Activities: Fixed Asset Purchases (3,450) _ Proceed from sale real estate - - Other assets bonds misc. deposits 6,591 - ----------- ----------- Net cash (used) provided by investing activities - - ----------- ----------- Cash Flows From Financing Activities Increase (decrease) notes payable (6,905) (13,735) Proceeds from sale of common stock - - Additional paid-in capital - - ----------- ----------- Net cash provided (used) by financing activities (6,905) (13,735) ------------ ------------ (Decrease) increase in cash 4,424 (3,437) Cash, beginning of period 3,296 6,986 Cash, end of period $ 7,720 $ 3,549 ============ ============ Supplemental schedule of other cash flows: Cash paid during the period for: Interest expense $ 12,633 $ 6,959 ============ =========== Income taxes $ 800 $ 1,600 ============ =========== 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 The Sixteen to One mine in Alleghany, California. 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 gold content plus labor cost. Due to limitations of the Company's accounting software all inventory is accounted for using average cost. 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 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 Sept. 30, 2019 and December 31, 2018, the results of operations and cash flows for the three-month reporting quarter and nine-month periods ending Sept. 30, 2019 and 2018. 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, 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) incorporated in California in 1911. Experts estimate that less than thirty percent of the deposit has been mined. Production is approximately 1,500,000 ounces of gold. The Company began a new exploration program last quarter led by a California registered geologist. The basis is strictly geology: identifying hydrothermal solution pathways, evaluating the ore potential and mining environment. There are over thirty 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 classify the ore underground. This has the positive affect of reducing the volume of rock taken 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". By industry wide definition of phases of a mine operation, the operation during this quarter is rehabilitation. Due to the extensive workings and small size of the crew, maintenance and rehabilitation must periodically be prioritized over exploration, development and production. Exploration aims at locating the presence of economic deposits and establishing their nature, shape and grade. The investigation may be divided into (1) initial and (2) final. At the Sixteen to One the search for gold or ore embraces: (1) geological surveys; (2) geophysical prospecting; (3) boreholes; (4) surface or underground headings, drifts or tunnels. When miners detect the presence of gold, the Company evaluates the indicators and if warranted, moves its operation from exploration to development. When the presence of gold is evaluated, the Company moves its operation into production. 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. BALANCE SHEET COMPARISONS For the nine-month period from December 31, 2018 to Sept. 30, 2019 total assets decreased by 23% primarily due to a 42% decrease in inventory and 17% in Accounts Receivable. The corresponding revenue decrease was from a planned shift from production towards development and maintainence. For the same nine-month period long-term liabilities decreased by 6%. STATEMENT OF OPERATIONS Revenues for the three-month period ended Sept. 30, 2019 show a negative amount due to the fact that the gold that was sold this quarter was mined and transferred into inventory at a higher price than the current gold market. This results in "cost of goods sold" which is included in the "gross income" figure to exceed total income. The fact that the company's software program uses the average cost method for cost of goods sold further complicates this problem. The company cannot afford to purchase a more robust software program at this time. Revenues for the nine-month period ended Sept. 30, 2019 compared to the same period in 2018 were 9% higher due to a higher percentage of sales being generated by bullion (raw gold) rather than gemstone sales. Operating expenses for the three-month period ended Sept 30, 2019 were 5% lower than in 2018 due to the shift of priorities to new maintainence and development of lower levels of underground workings. Operating expenses for the nine-month period ended Sept 30,2019 decreased by 6% compared to the same period in 2018 for the same reason. For the three-month period ended Sept. 30, 2019 the company showed a loss of $111,187 compared to a loss of $143,560 for the same period in 2018. For the nine-month period ended Sept. 30, 2019 the company showed a loss of $251,447 compared to a loss of $289,966 for the same period in 2018. ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 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. ITEM 4 CONTROLS AND PROCEDURES See notes to financial statements. PART II ITEM 1 LEGAL PROCEEDINGS Roger Haas, a shareholder and President and main figure in the operation of Quartzview, a Silicon Valley start-up financed by Carl Berg, filed a petition for Writ of Mandate onSeptember 6, 2018 for access to the Company's shareholder list. The Company refused the demand, filing the answer on October 17, 2018. The action is in the Superior Court of the State of California, County of Sierra. The State Water Resources Control Board issued Adminstrative Civil Liability Order R5-2017-0115 on Dec. 8, 2017. The Company filed a timely Petition for Review. No decision has been issued in this matter. ITEM 1A RISK FACTORS 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. ITEM 2 UNREGISTERED SALES OF EQUITY None ITEM 3 DEFAULTS UPON SENIOR SECURITIES None ITEM 4 MINE SAFETY DISCLOSURES For the three-month period ended September 30, 2019 no S&S citations under Section 104(a) were issued. No 104(b) Orders or 104(d) S&S Citations Section 110 (b)(2) Violations or Section 107 (a) Orders were issued. ITEM 5 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-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 Sept. 30, 2019. ITEM 6 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: November 15, 2019