ECURITIES 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, 2016       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, 2015, 13,399,505 shares of Common Stock, par value $.03 per
share, were issued and outstanding.


PART I Original Sixteen to One Mine, Inc. Condensed Balance Sheet June 30, 2016 & December 31, 2015 ASSETS Current Assets Cash $ 10,310 $ 540,662 Accounts receivable 71,509 71,525 Inventory 502,219 724,050 Other current assets - - ------- ------- Total current assets 584,038 1,336,237 ------- ------- 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 885,307 885,307 Buildings 209,487 209,487 Vehicles 171,522 171,522 --------- --------- Total fixed assets at cost 1,266,316 1,266,316 --------- --------- Less accumulated depreciation (1,140,212) (1,129,128) ----------- ----------- Net fixed assets 126,104 137,188 ----------- ----------- Other Assets Bonds and misc. deposits 5,000 5,460 --------- ------- Total Assets $ 993,519 $1,757,262 ========== ==========
Original sixteen to One Mine, Inc. Condensed Balance Sheet Continued LIABILITIES & STOCKHOLDERS' EQUITY June 30, 2016 & December 31, 2015 Current Liabilities Accounts payable & accrued expenses $1,166,686 1,146,492 Due to related party 370,376 724,649 Notes payable Short-term 533,387 1,030,030 -------- ------- Total Current Liabilities 2,070,449 2,901,171 -------- ------- Long Term Liabilities Notes payable due after one year 152,069 159,272 -------- ------- Total Liabilities 2,222,518 3,060,443 -------- ------- Stockholders' Equity Capital stock, par value $.03: 30,000,000 shares authorized: 13,399,505 issued and outstanding as of June 30,2016 and as of December 31, 2015 440,656 440,656 Additional paid-in capital 2,063,202 2,063,202 (Accumulated deficit) Retained earnings (3,732,857) (3,807,039) ------------ ----------- Total Stockholders' Equity (1,228,999) (1,303,181) ------------ ----------- Total Liabilities and Stockholders' Equity $993,519 $1,757,262 ============ ============ See Accompanying Notes
Original Sixteen to One Mine, Inc. Statement of Operations and Retained Earnings Three Months Ending June 30, Six Months Ending June 30, 2016 2015 2016 2015 ------ ------ ------ ----- Revenues: Gold & jewelry sales $ 183,657 $ 150,515 $ 497,824 $ 154,415 Other Revenue 24,000 17,000 48,000 48,000 --------- ----------- -------- ------- Total revenues 207,657 167,515 545,824 202,415 ----------- ---------- -------- ------ Operating expenses: Salaries and wages 15,000 15,000 30,000 30,000 Contract Labor 122,291 64,028 214,549 127,121 Telephone & utilities 14,510 15,654 34,642 28,139 Taxes - property & payroll 5,348 5,274 11,028 10,596 Supplies 9,079 19,480 36,560 28,560 Insurance 1,007 7,887 1,589 9,178 Small equipment & repairs 3,697 2,056 25,024 3,790 Drayage 3,757 4,698 6,694 8,181 Corporate expenses 5,617 5,777 9,517 6,777 Legal and compliance 21,993 940 24,446 227,459 Mine Maintenance 14,700 27,360 39,861 48,985 Depreciation & amortization 5,542 5,638 11,084 21,872 Other expenses 1,191 2,355 4,706 3,331 ---------- ---------- ------- ------- Total operating expenses 223,732 176,147 449,700 553,989 ---------- ---------- -------- -------- Profit (Loss) from operations (16,075) (8,632) $ 96,124 $ (351,574) Other Income : 1,155 6,900 1,955 7,176 Other expense 8,573 15,601 23,098 31,429 ---------- ----------- ------- -------- Net Other income (exp) (7,418) (8,701) (21,143) (24,253) Profit (Loss) before taxes (23,493) (17,333) 74,981 (375,827) ---------- ----------- --------- ---------- Income tax benefit (expense) (800) (800) (800) ---------- ----------- --------- ---------- Net profit (loss) $ (23,493) $ (18,133) $ 74,181 $ (376,627) ============ =========== ========== ========== Basic and diluted (loss) Gain per share $ (.001) $ (.001) $ .006 $ (.03) ============ ============ ========= ========= Shares used in the calculation of net loss income per share 13,399,505 13,399,505 13,399,505 13,399,505 ============ =========== ========== =========== See Accompanying Notes
Original Sixteen to One Mine, Inc. Statement of Cash Flows Six Months Ended June 30,2016 and June 30,2015 Six Months Ended June 30, 2016 2015 -------------- -------------- Cash Flows From Operating Activities: Net (loss) profit $ 74,182 $ (376,627) operating activities: Depreciation and amortization 11,084 21,872 (Increase)Decrease in accounts receivable 16 (1,682) Decrease(Increase) in inventory 221,831 (16,973) (Increase)Decrease in other current assets - - (Decrease) increase in accounts payable and accrued expenses 20,194 285,710 (Decrease) increase related-party loans (354,273) (53,596) (Decrease) increase short-term notes (496,643) 168,608 ------------ ---------- Net cash (used) provided by operating activities (523,609) 27,312 ---------- ----------- Cash Flows From Investing Activities: Purchase of fixed assets (Increase) decrease Bonds Misc. deposits 460 - ----------- ----------- Net cash used by investing activities 460 - ----------- ----------- Cash Flows From Financing Activities Increase (decrease) notes payable (7,203) (6,294) Proceeds from sale of common stock - - Additional paid-in capital - - ------------ ------------ Net cash provided (used) by financing activities (7,203) (6,294) ------------ ------------ (Decrease) increase in cash (530,352) 21,018 Cash, beginning of period 540,662 - ------------ ---------- Cash, end of period $ 10,310 $ 21,018 ============ ============ Supplemental schedule of other cash flows: Cash paid during the period for: Interest expense $ 22,301 $ 30,085 ============ ============ Income taxes $ 800 $ 800 ============ ============ 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 and jewelry are 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 June 30, 2016 and December 31, 2015, the results of operations for the three-month and six-month periods ended June 30, 2016 and 2015 and cash flows for the six-month periods ended June 30, 2016 and 2015. 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 vcbhRegulation 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 deposit has been mined. Production is approximately 1,500,000 ounces of gold. 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". The methods of mining the Alleghany deposit reflect its historical background. By industry wide definitions our miners conducted exploration. 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 operations 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. The Company has announced general plans to build a new shaft in the northern section of its Alleghany patented claims when funds are available. The art and science of underground gold mining are broadened with technology. Usually technology comes from improved mining equipment. While the methods and machinery used at the Sixteen to One mirror much of its operational history, for the past two decades our needs are in gold detection innovations. Other than the off-the-shelf personal detectors (which are improving), no one has successfully taken twenty-first radar technology into the mine and identified gold hidden two or more meters into the quartz. Development of radar to work in our underground environment is a significant factor in future earnings. Due to our decreasing inventory over the past quarter, a quarter without gold production, the operation was reduced in manpower. This has an adverse effect by decreasing the number of faces in exploration or development. It lowers the potential of producing a pocket of gold. Historically, the Company has mined 2,500 ounces in one shift, 5,000 ounces in ten days and no ounces in eighteen months. BALANCE SHEET COMPARISONS Assets: For the six-month period ended June 30,2016 compared to December 31, 2015, cash decreased by $530,352 (98%) as the company used funds to pay-down debt. Inventory decreased by $221,831 as inventory sales were utilized to pay down debt and cover operating expenses. Liabilities: For the six-month period ended June 30,2016 compared to December 31, 2015, related party loans decreased by $354,273 (49%) and notes payable short-term decreased by $496,643 (48%) as the company paid down these debts. STATEMENT OF OPERATIONS Revenues for the three-month and six-month periods ended June 30, 2016 compared to the same periods in 2015 increased by $40,142 (24%) and $343,409 (170%) respectively, primarily due to increased gold sales in 2016 compared to 2015. Operating expenses for the three-month period ended June 30, 2016 compared to the same period in 2015 increased overall by $47,585 (27%). The following significant decreases of $10,401 for supplies, $6,880 for insurance and $12,660 for mine maintenace were offst by the following increases: legal & compliance $21,053 and contract labor of $58,263. Operating expenses for the six-month period ended June 30, 2016 compared to the same period in 2015 increased by $104,289 (19%) primarily due to a legal settlement with the California Regional Water Quality Control board for $237,083 in 2015. For the three-month period ended June 30, 2016 the company showed a loss of $23,493 compared to a loss of $18,133 for the same period in 2015. The difference of $5,360 (30%) is primarily due to increased labor in 2016. For the six-month period ended June 30, 2016 the company showed a profit of $74,181 compared to a loss of $376,627 for the same period in 2015. The $450,808 (120%) difference is primarily due to the legal settlement with the California Regional Water Quality Control Board in 2015 combined with increased gold sales in 2016. SUBSEQUENT EVENTS None 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 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-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, 2016. 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: August 15, 201