SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (x)ANNAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 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 ID#) incorporation 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 if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [] No [x] Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the act. Yes [] No [x] 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 preceding 12 months (or for such shorter period that the registrant was required to file such reports, and (2) has been subject to such filing requirements for the past 90 days. Yes [] No [x] Indicate by check mark whether the registrant has submitted electronically on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes[] No[x] ? Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K. Yes[x] No[] 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 [ ] Smaller reporting company [X] Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-d of the act). Yes [] No[x] As of December 31, 2019, 14,390,631 shares of Common Stock, par value $.033 per share, were issued and outstanding. PART I GENERAL NOTE In accordance with directive from the Securities and Exchange Commission(SEC) and Industry Guide 7, reference for all intent and purposes stating 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; however, the Company continues to produce gold over its 110 years of operating its mines in the Alleghany Mining district. Proceeds from the annual production for 2015 and 2016 realized profitable years. Gold production in 2018 2019 and 2020 was minimal as management directed the crew to begin a tough but significant project December 2017: reestablish the 49 WINZE for mining. Work continued through 2020, as planned. The 49 WINZE, access to the deep levels of the Sixteen was abandoned in 2005. The winze is the vital component for resuming profitable gold production on established gold headings. ? In addition, safe travel was secured and approve by the federal regulatory agency known as MSHA in the winze to the 1700 foot level. Another primary goal included lowering the water. As of December 31, 2020, the water is 10 feet below the 1900 level. During 2020, very little time was spent detecting for and mining gold. With the prior profitable year, management decided to place rehabilitation/maintenance ahead of mining for gold. Operating capital came from inventory and recent production, which were sold to preexisting markets. In addition to significant underground improvements, relations with federal and California regulators improved significantly during 2020. California is known for active environmental perspectives and advocates. Its reputation is global. Significant progress continues towards achieving lawful and reasonable interpretation of the Porter Cologne Act, the basis of water administration. SUBSEQUENT EVENTS In 2021, the five year renewal of the Company was approved by the Central Valley Regional Water Control Board. The Board of Directors established a debt reduction plan to reduce its liabilities to Company shares in 2020. The results will be confirmed in the 2021 2nd Quarter 10Q. JUDICIAL EVENT In 2020, the Company and President were cited for four criminal pollution violations. Neither authorized the placement of toxic material in a pit prepared for a small amount of worthless metal. The Company and President are currently defending the allegations. ITEM 1: BUSINESS Description of Business Original Sixteen to One Mine, Inc. (the Company) was incorporated in 1911, in California. It mines gold on properties it owns under fee simple grant deeds. The Alleghany Mining District is about 65 miles northeast of the intersection of I-80 and California State Route 49. More than 1,113,280 troy ounces of gold were produced. It is a traditional, hard rock, underground mine. Miners create horizontal levels at various elevations and raise into favorable areas. Geology of the mineral deposit is well documented. Gold is not distributed evenly within the quartz veins. Concentrations of gold deposits are found scattered within the veins called ore shoots. The Company has never declared reserves according to industry definitions. The Company from time to time focuses substantially all of its resources on infrastructure development or maintenance. During these periods little gold is mined. At other times, miners primarily work for gold. Business is subjected to cycles. The operation resembles the classical "boom or bust" cycles regardless of outside influences. For accounting purposes gold revenues are accrued when the metal is recovered. For tax purposes revenues are not recognized until gold is sold. Rare high-grade gold and quartz is sold at a premium to museums, collectors and jewelry manufacturers. This market creates a significant financial event with revenues significantly greater than prevailing spot price. Demand for the Sixteen to One gold quartz is greater than the current supply. Supplies and equipment used for mining are commonly available. Labor requirements are available, and are a concern throughout the mining industry. No particular seasonality exists for the marketing of gold. Adverse effects of winter storms sometimes limit the ability of the crew to access the mine. Company is in compliance with all applicable federal, state and local laws and regulations relating to the environment. The Company's executive office is located at 527 Miners Street, Alleghany, California 95910. It maintains two websites: origsix.com and original16to1.com. ITEM 1A RISK FACTORS (a) Price of Gold The daily spot price of gold has no financial effect on gross revenue if it's between $1,700 and $1,800 an ounce. A significant drop below $1,700 may have an adverse effect on the Company's revenue. Closing spot price on December 31, 2020, was $1,803.28. The Company's realized gold inventory usually exceeds the bullion price. (b) Lack of Proven Reserves Because proven reserves are not utilized as a component for evaluating future earnings or assets, a sense of uncertainty is perceived. Caution is recommended when using the doctrines of reserves as an economic tool for evaluating. While (i) the Company has recovered over one million ounces of gold and (ii) management knows that substantial additional virgin veins exists, it has no ability to measure potential gold production using the mathematical tools generally recognized in the mining industry. The Company knows visible gold shows in three locations on the 2400 foot level. (c) Governmental Regulation The attached financial statements have not been audited by a Securities Exchange Commission (SEC) accounting firm. Therefore, the Company is not in full compliance with this SEC regulation for companies listed on an exchange. The Company is in compliance with all known safety and environmental standards and regulations. (d) Liquidity Gold inventory is highly liquid. (e) Price of Stock Bids and offers are publicly recorded on the stock page of the Company's web site. Exposure is limited. The price of stock may not accurately reflect fair market value because of the limited marketplace and the existence of a wild Gray Market. The Company currently maintains no program to support or promote its stock. ITEM 2: PROPERTIES Properties Sixteen to One Mine was located in 1896, incorporated into Original Sixteen to One Mine, Inc. in 1911. Properties acquired prior to 1925 are carried on the Company's books at their original purchase price and are fully amortized through depletion. In 1999, the Company acquired the Plumbago mine in the Alleghany Mining District, which is located two miles southeast of the Sixteen to One mine. The property has a history of rich gold production. The Company will pursue the potential within this property when funding becomes available for development. On June 22, 2005, the Company acquired the Gold Crown mine. The Board of Directors decided that it is a long-term investment and important to the long-term welfare of the Company. The Alleghany properties consist of 26 patented claims (470 acres), 160 acres of mineral rights on patented claims and approximately 320 acres of unpatented claims. The following table sets forth further information with respect to the Company's mining claims. PATENTED MINING CLAIMS OWNED 100% BY THE COMPANY NAME OF CLAIM NAME OF CLAIM Belmont Rainbow Fraction Number Three Twenty-One Eclipse Quartz Eclipse Extension Tightner Extension Contract Alene Valentine Red Star Bartlett Farnham Gold Quartz Mine Belmont #2 Contract Extension Hanley Quartz Mine Noble Sixteen to One Groves Gold Quartz Mine Denver Happy Jack Extension Ophir Rainbow Extension Happy Jack Marion Lode Sphoon UNPATENTED CLAIMS NAME OF CLAIM NAME OF CLAIM Alice Alice Annex General Sherman N.Ext. Jumbo No Better No Better Ext. Right Place Wonder #1 Wonder #2 Wonder Goldmines MS Tightner #2 Lode Tightner #3 Lode Tightner #4 Lode Tightner #5 Lode Tightner #6 Lode Alene Ext. Quartz Bartlett Ext. Quartz Illocano Quartz East Bartlett Lode Bal Quartz Standard Lode Standard Lode Extension Gold Beater Lode Clute Lode Hope Extension Lode Crafts Lode Plumbago Mine Mill Site Enterprise Quartz ITEM 3: LEGAL PROCEEDINGS See subsequent events on page 3 ITEM 4 MINE SAFETY DISCLOSURES For the twelve-month period ended December 31, 2020, no citations were issued by the Mine Health and Safety Administration (MSHA). PART II ITEM 5: MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS Market Information Currently there is no public marketplace for the Company's common stock. Data from 2013 through 2020 is based upon activity on the X-Mart posted on the Company's web-site. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter High Low High Low High Low High Low ------ ----- ------ ----- ------ ----- ------ ----- 2020 NO TRADES ON XMART FOR 2020 2019 NO TRADES ON XMART FOR 2019 2018 NO TRADES ON XMART FOR 2018 2017 $ .52 $ .52 $ * $ * $ .49 $ .49 $ .49 $ .49 2016 * * * * * * .52 .52 2015 * * .44 .44 .56 .56 * * 2014 * * .46 .54 * * .42 .42 2013 .89 .89 .86 .65 * * * * * No trades took place on the Company website in these quarters. ITEM 6: SELECTED FINANCIAL DATA Year 2020 2019 2018 2017 2016 ---- ---- ---- ---- ---- Sales 90,225 228,286 204,570 287,212 1,452,169 Income(loss)(173,578) (230,933) (359,736) (429,965) 610,160 Income(loss) per share (.012) (.016) (.025) (.03) .04 Total Assets 718,555 707,948 862,814 1,127,813 1,537,443 Total Liab.2,245,939 2,230,279 2,152,912 2,062,927 2,042,593 SH Equity (1,527,384) (1,522,331)(1,290,098) (935,114) (505,150) 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. ITEM 7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK From time to time the Company may 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 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 - Labor relations - Accidents - Unusual weather or operating conditions - Force majeure events 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 will update its forward-looking statements, whether as a result of receiving new information, the occurrence of future events or otherwise if significant. ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The unaudited financial statements of the Company are attached at the end of this document. ITEM 9: CONTROLS AND PROCEDURES Security procedures include multiple levels of gold custody, from the mine to sales. Inventory control procedures were set up by an SEC certified auditing firm and continue to be followed. PART III ITEM 10: DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT Officers and Directors The following table sets forth the Officers and Directors of the Company. The directors listed below will serve until the next annual shareholders meeting to be held on August 31, 2019. All of the officers of the Company serve at the pleasure of the Board of Directors. Name Age Position Officer Since Director Since Michael M. Miller 78 President 1983 1977 & Director Hugh Daniel O'Neill 78 Secretary 2016 2002 & Director Robert Beso 69 Treasurer 2016 2016 & Director Michael M. Miller-Director, President and CEO As President and Chief Executive Officer, Mr. Miller is responsible for the day-to-day operations of the Company. In 1975, Mr. Miller became the sole proprietor of Morning Glory Gold Mines. Prior to that, he was self-employed in Santa Barbara County, California from 1965 to 1974. Mr. Miller served as a trustee and President of the Sierra County Board of Education (1979 to 1983 trustee) (President in 1983). In 1991 he was appointed a member of the Sierra County Planning Commission (Chairman in 1992, 1993, 1999 and 2000) until 2001. Mr. Miller is licensed as a California Class A general engineering contractor. He was a member of the American Institute of Mining Engineers. In 1965, Mr. Miller received a B.A. from the University of California at Santa Barbara in combined Social Sciences-Economics. He was born in Sacramento, California. Hugh Daniel O'Neill III ~ Director, Secretary Mr. O'Neill was born April 21, 1942 at a naval base in Virginia. He was raised in seventeen states over a fourteen-year period, settling in Nevada City, California. He attended the University of San Francisco, where he created Odd Bodkins in 1961. The San Francisco Chronicle syndicated Odd Bodkins in 1963 making Mr. O'Neill the youngest cartoonist ever hired by a national syndicate. It was published in 350 newspapers. At its peak readership was 50 million daily. Dan is an historian, an accomplished journalist and a former War Correspondent. Robert Beso ~ Director, Treasurer Robert John Besso was born in Sacramento. Just out of high school, he drew draft # 32 but joined the US Army 101st Airborne Division where he was assigned to tanks. Once in Vietnam he was promoted to Sargent at age 19 and took POINT for nine months. In 1971 he was decorated with two bronze stars (combat infantry badges): oak leaf cluster and V for valor. He earned Soldier of the Month and was the personal body guard for Officer Coast. He declined the offer to continue his military career at West Point and almost died from malaria. He returned to California attending American River College and El Camino College. Robert decided to cut hair which he has done for thirty-eight years. He has continued to serve our country with 25 years working with Alcoholics Anonymous, Jail and Prison inmates, Boys Ranch and Teen Substance addiction groups. He has and continues to take "point" to protect the things that he values. "Like farmers and ranchers, the miners have value. The Sixteen to One is a reality and will work to reduce the ignorance about mining." ITEM 11: EXECUTIVE COMPENSATION Name/ Principal Annual Position Year Salary Bonus Compensation Securities --------- ------ ------ ----- ------------ ---------- Michael Miller/ 2020 $ 60,000 0 0 0 President & CEO 2019 $ 60,000 0 0 0 2018 $ 60,000 0 0 0 ITEM 12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT Security Ownership of Certain Beneficial Owners and Management Title of Name and Address Amount and Nature Percent Class of Beneficial Owner of Beneficial Owner of Class ------- ------------------- ------------------- -------- Common Michael M. Miller 2,123,597 15% Officer and Director P.O. Box 941 Alleghany, CA 95910 Common M. Blair Hull 1,962,822 14% Hull Trading Co. 401 So. LaSalle, Ste. 505 Chicago, IL 60605 Common Kathy N. Hull 1,490,250 10% 11 Sierra Ave. Piedmont, CA 94611 Common Charles I. Brown Family Partnership LTD 833,668 6% 29922 N 133rd Lane Peoria, CO 85383 Common Hugh Daniel O'Neill 143,077 1% Director - Secretary 227 Prospect St. Nevada City, CA 95959 Common Robert Beso 7,500 .1% Director - Treasurer PO Box 909 Alleghany, CA 95910 Common All Officers & Directors 2,274,174 16% (as a group) ITEM 13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS See notes to financial statements. ITEM 14: PRINCIPLE ACCOUNTING FEES AND SERVICES Due to monetary constraints, the Company has not hired a SEC certified CPA firm for several years. Most accounting functions are performed by the Company in-house with the exception of the depreciation schedule and tax returns which are handled by outside CPA firms. PART IV ITEM 15: UNAUDITED FINANCIAL STATEMENTS 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 December 31, 2020, and December 31, 2019, the results of operations and cash flows for the twelve-month periods ended December 30, 2018, 2019 and 2020. The unaudited financial statements have been prepared in accordance with Generally Accepted Accounting Principles. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized. ORIGINAL SIXTEEN TO ONE MINE, INC. Registrant By: Michael M. Miller President and Director Date June 10, 2021 ? Original Sixteen to One Mine, Inc. Condensed Balance Sheet December 31, 2020 & December 31, 2019 ASSETS 2020 2019 Current Assets Cash $ 21,822 $ 4,433 Accounts receivable 55,775 56,525 Inventory (see Note 1) 309,425 305,691 Other current assets - - ------- ------- Total current assets 387,022 366,649 ------- ------- 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 (see Note 2) 278,377 278,377 ------- ------- Fixed Assets at Cost Equipment 597,602 597,602 Buildings 209,487 209,487 Vehicles 168,925 168,925 --------- --------- Total fixed assets at cost 976,014 976,014 --------- --------- Less accumulated depreciation (937,727) (927,961) ----------- ----------- Net fixed assets 38,287 48,053 ----------- ----------- Other Assets Bonds and misc. deposits 14,869 14,869 --------- ------- Total Assets $ 718,555 $ 707,948 ========== ========== ? Original sixteen to One Mine, Inc. Condensed Balance Sheet Continued LIABILITIES & STOCKHOLDERS' EQUITY 2020 2019 Current Liabilities Accounts payable & accrued expenses (see Note 3) $ 1,323,897 1,342,718 Due to related party (see Note 4) 286,248 247,911 Notes payable Short-term (see Note 6) 538,558 538,558 --------- ------- Total Current Liabilities 2,148,703 2,129,187 -------- ------- Long Term Liabilities Notes payable due after one year (see Note 7) 97,236 101,092 ---------- -------- Total Liabilities 2,245,939 2,230,279 ---------- --------- Stockholders' Equity Capital stock, par value $.033: 30,000,000 shares authorized: 14,390,631 issued and outstanding as of Dec. 31, 2019 & 14,342,097 as of Dec. 31, 2018(see Note 8) 474,891 474,891 Additional paid-in capital 2,222,892 2,221,290 (Accumulated deficit) Retained earnings (4,225,167) (4,218,512) ------------ ----------- Total Stockholders' Equity (1,527,384) (1,522,331) ------------ ----------- Total Liabilities and Stockholders' Equity $ 718,555 $707,948 ============ ============ ? Original Sixteen to One Mine, Inc. Statement of Operations 2020 2019 2018 Revenues: Gold & jewelry sales 90,225 228,286 156,570 Other Income - - 48,000 --------- -------- ------- - Total Revenues 90,225 228,286 204,570 Operating expenses: Salaries and wages 58,024 60,000 60,000 Contract Labor 51,234 163,855 239,601 Utilities 72,502 85,829 87,178 Taxes - property & payroll 19,754 18,028 17,584 Insurance 3,363 5,275 4,755 Supplies 4,259 17,560 20,608 Small equipment & repairs 7,288 9,981 9,240 Drayage 6,451 15,993 20,610 Corporate expense 12,975 11,767 9,317 Legal and compliance 17,586 15,652 13,577 Mine Maintenance 2,434 14,111 22,024 Depreciation & amortization 9,767 18,573 25,371 Other expenses 2,166 7,811 5,178 -------- -------- -------- Total operating expenses 267,803 444,435 535,043 Profit (Loss) from operations (177,578) (216,149) (330,473) Other Income & (Expense): Other Income 4,800 2,800 4,595 Interest Expense - (15,277) (27,594) Other expense - (1,507) (5,464) --------- -------- --------- Total Other Income (Expense) 4,800 (13,984) (28,463) Profit (Loss) before taxes (172,778) (230,133) (358,936) Provision for income taxes 800 800 800 Net (loss) income $ (173,578) (230,933) (359,736) ========== ========== ========= Basic and diluted gain (loss) per share $(.012) $(.016) $(.025) Shares used in the calculation of net(loss) income per share 14,390,631 14,390,631 14,342,097 ========== ========= ========= ? Original Sixteen to One Mine, Inc. Statement of Cash Flow For the Years Ended December 31, 2020 2019 2018 Cash Flows From Operating Activities: Net profit (loss) $ (173,578) (230,933)(359,736) Operating activities: Depreciation and amortization 9,767 18,573 25,371 Decrease(Increase) in accounts receivable 750 29,501 12,742 Decrease(Increase) in inventory (3,734) 123,638 222,899 (Decrease) Increase in accounts payable accrued expenses 34,442 66,859 77,533 (Decrease) Increase in related party loans 38,336 (411) 28,590 (Decrease) Increase in short-term notes - - 1,282 -------- ------- --------- Net cash (used) provided by operating activities (94,017) 7,227 8,681 Cash Flows From Investing Activities: Sale (Purchase) of Real Estate - - - Write-off (Purchase) of fixed assets - (3,450) 596 Decrease (Increase) Bonds Misc. deposits - 6,591 - --------- -------- -------- Net cash (used) provided by investing activities - 3,141 596 Cash Flows From Financing Activities Increase (Decrease) notes payable 111,406 (9,231) (17,420) Proceeds from sale of common stock - - 4,453 Paid in Capital from Shareholders - - - -------- -------- -------- Net cash provided (used) by financing activities 111,406 (9,231) (12,967) (Decrease)increase in cash 17,389 1,137 (3,690) Cash, beginning of period 4,433 3,296 6,986 ------ ------- -------- Cash, end of period $ 21,822 4,433 3,296 ========= ========= ======== ? NOTES TO THE FINANCIAL STATEMENTS 1. 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 a gold mine in Alleghany, California. 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). 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. Inventory is accounted for using the Average Cost method due to the limitations of the Company's accounting software. Valuation adjustments to account for changes in the price of gold are made quarterly. 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. 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 it is mined, gold is 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. ? 2. PROPERTY The company's original property is carried at the 1924 value of $628,662 and has been fully amortized through depletion charges of $524,145. Other properties included in the "real estate and property rights" category are a lot purchased in 1984 for $1,000, Surface rights purchased at the townsite auction in 1996 for $76,574 and $48,310 for the Sphoon Mine which is patented property included with the purchase of the Gold Crown Mine in 2005. The category "mineral property" includes the Plumbago Mine which was exchanged for 50,000 shares of restricted stock in 1999. 3. ACCOUNTS PAYABLE & ACCRUED EXPENSES Accounts payable and accrued expenses was $1,323,897 at December 31, 2020. This balance includes $867,823 in accrued wages owed to Michael Miller. Mr. Miller's salary has been mostly accrued (not paid) for over ten years and is secured with real estate. 4. NOTES PAYABLE RELATED PARTIES Notes payable related parties at December 31, 2020, of $286,248 consists of a loan from a shareholder in the amount of $152,594 secured by gold and $133,654 owed to Michael Miller. 5. RELATED PARTY TRANSACTIONS None 6. NOTES PAYABLE SHORT-TERM Notes payable short-term of $538,558 at December 31, 2020 consists of a $500,000 interest-free line of credit as well as accrued interest on a previous loan. There is no specific due date on these loans which are convertible to stock at $1.00 per share. 7. NOTES PAYABLE Notes payable due after one-year totaling $97,236 consists of the balance remaining on the mortgage for the Gold Crown Mine of $97,236. 8. STOCK Capital authorized: 30,000,000 non-assessable shares of common stock, par value $.033. Issued and outstanding: 14,390,631 shares of common stock. With approx. 3 Million of the total restricted. Restricted common stock cannot be sold within two years of the issuance date. After the required holding period, the shareholder can take steps to remove the indicated restriction. 7