UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT
OF 1934
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the fiscal year ended March 31, 2002
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from __________ to ___________
Commission File No. 001-03317
MINERAL MOUNTAIN MINING & MILLING COMPANY
(Exact name of Registrant as specified in its charter)
IDAHO 82-0144710
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
421 Coeur d'Alene Ave - Suite 3, Coeur d' Alene, Idaho 83814-2862
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (208) 664-3544
Registrant's fax number, including area code: (208) 664-3543
Securities registered pursuant to Section 12(b) of the Act
Name of each exchange
Title of each class on which registered
---------------------- ---------------------
Common capital stock,
5 cent par value None
Securities registered pursuant to Section 12(g) of the Act: NONE
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 if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K 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 or any amendment to this
Form 10-K (X)
The aggregate market value based on the bid price of the shares of Common Stock
held by non-affiliates of the Registrant at April 30, 2002 was approximately
$45,451. For purposes of this computation, all officers, directors and 10%
shareholders of the Registrant are deemed to be affiliates. Such determination
should not be deemed an admission that such officers, directors, and 10%
shareholders are affiliates.
Indicate the number of shares outstanding of the Registrant's classes of Common
Stock, as of the latest practicable date.
Title of Each Class of Common Stock Number of Shares Outstanding
----------------------------------------- -----------------------------
Common Stock five cent par value 3,117,531
MINERAL MOUNTAIN MINING & MILLING COMPANY
FORM 10-K March 31, 2002
TABLE OF CONTENTS
PAGE
----
PART I
------
Item 1. Business 3
Item 2. Properties 3
Item 3. Legal Proceedings 3
Item 4. Submission of Matters to a Vote of Security Members 4
PART II
-------
Item 5. Market for Registrant's Common Equity and Related
Stockholder Matters 4
Item 6. Selected Financial Data 5
Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operations 5
Item 8. Financial Statements and Supplementary Data 6
Item 9. Changes in and Disagreements with accountants on
Accounting and Financial Disclosure 6
PART III
--------
Item 10. Directors and Executive Officers of the Registrant 7
Item 11. Executive Compensation 7
Item 12. Security Ownership of Certain Beneficial Owners and Management 8
Item 13. Certain Relationships and Related Transactions 9
PART IV
-------
Item 14. Exhibits, Financial Statement Schedules,
and Reports on Form 8-K 9 - 17
Signature Page 18
MINERAL MOUNTAIN MINING & MILLING COMPANY
FORM 10-K - PARTS I, II, III & IV
March 31, 2002
PART I
ITEM 1 - BUSINESS
(a) General Developments of Business:
The Registrant was incorporated under the laws of the state of Idaho on August
4, 1932 and is a mining company in the exploration stage. It is engaged in
exploring for non-ferrous and precious metals, principally silver, lead and
copper. The mining properties of the Registrant are located in Shoshone County,
Idaho. For further description of the Registrant's properties see ITEM 2 of
this report. If any ores should be developed and produced, these would be
milled and the concentrates sold to metal smelters at prices determined by the
metals on the open market.
ITEM 2 - PROPERTIES
(a) The Registrant has the following properties:
The Registrant is the owner of an undivided one-third interest in the "Mineral
Mountain Area" situated near Osburn, Idaho consisting of the four original
Mineral Mountain patented lode mining claims together with those portions of six
Chester and three Polaris claims which lie northerly from a warped plane lying
parallel and 300 feet northerly from the center of the Chester Vein.
The property of the Registrant lies between the main workings of the Sunshine
Mine on the west, and the Consolidated Silver property on the east. Both of
these properties are owned by Sunshine Mining Company.
Sunshine Mining Company discontinued all mining operations in Idaho during the
first quarter of 2002.
ITEM 3 - LEGAL PROCEEDINGS
The Registrant has no legal actions pending against it and it is not a party to
any suits in any court of law, nor are the directors aware of any claims which
could give rise to litigation. No director, officer, or affiliate of the
Registrant or owner of 5% or more of the Registrant's securities, or any
associate is an adverse party to the Registrant.
There are no letters of inquiry, or proceedings by the Federal Government, or
any State agency directed toward the Registrant.
The Registrant is not involved in any civil rights negotiations or proceedings.
MINERAL MOUNTAIN MINING & MILLING COMPANY
FORM 10-K - PARTS I, II, III & IV
March 31, 2002
PART II
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of the security holders in 2001 or the first
quarter of 2002.
ITEM 5 - MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDERS
MATTERS
(a) Market information:
The Registrant's stock was formerly traded on the Spokane Stock Exchange,
Spokane, Washington which closed on May 24, 1991. Quotation for the
Registrant's shares are now reported by the Spokane Quotation Bureau.
The bid prices for the Registrant's stock for the period ending March 31, 2002
are as follows:
High Low
------------- -------------
2000
First Quarter .02 .02
Second Quarter .02 .02
Third Quarter .02 .02
Fourth Quarter .03 .02
2001
First Quarter .05 .02
Second Quarter .02 .02
Third Quarter .02 .02
Fourth Quarter .02 .02
2002
First Quarter .02 .02
(b) Approximate Number of Equity Security Holders:
Title of Class Number of Record Holders
------------------------------ ----------------------------------------
Common Non-Assessable Capital Approximately 1,439 as of March 31, 2002
Stock, par value five cents
(.05) per share
MINERAL MOUNTAIN MINING & MILLING COMPANY
FORM 10-K - PARTS I, II, III & IV
March 31, 2002
PART II
ITEM 6 - SELECTED FINANCIAL DATA
The following data should be read in conjunction with the Registrant's financial
statements and the notes thereto:
Year Ended Year Ended Year Ended Year Ended Year Ended
3-31-2002 3-31-2001 3-31-2000 3-31-99 3-31-98
---------- ---------- ---------- ---------- ----------
Operating Revenue $ 620 $ 748 $ 901 $ 928 $ 1,192
Net Income (Loss) $ (2,466) $ (2,171) $ (1,578) $ (3,823) $ (4,891)
Net Income (Loss)
Per Share (0.0008) $ (0.0007) $ (0.0005) $ (0.0012) $ (0.0015)
Total Assets $ 64,175 $ 66,441 $ 67,972 $ 69,652 $ 72,496
Working Capital $ 7,967 $ 10,433 $ 12,604 $ 14,182 $ 18,005
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
(a) Full fiscal year:
The Registrant is an exploration stage mining company and does not at present
have any operating income. The Registrant does not anticipate any material
changes in its financial position in the immediate future.
(1) Liquidity:
As the Registrant has limited operations, the only funds required at this time
are for corporate administrative costs. The annual net cash needs of the
Registrant are approximately $3,000. These funds can be made available in the
future by the Registrant issuing stock on a private-placement basis or borrowing
from the officers and directors after present cash resources are depleted.
(2) Capital Resources:
At the present time the Registrant does not have any commitments for capital
expenditures. Any capital expenditures would be very small, and would probably
be financed by loans from the officers and directors.
(3) Results of Operations:
The patented claims are being maintained and the financial records are updated
quarterly.
MINERAL MOUNTAIN MINING & MILLING COMPANY
FORM 10-K - PARTS I, II, III & IV
March 31, 2002
PART II
ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
See Item 14 Index
ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
There were no disputes or disagreements with or changes of accountants.
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
(a) Identification of Directors:
Name Age
-------------------- ---
Earl T. Siler 87
Donald L. Hess 73
Forrest Godde 85
Richard L. Schwary 74
Josef Suveg 74
The Directors serve until the next meeting of the shareholders or until their
successors are elected and qualified.
Earl Siler served as a director since 1993
Donald L. Hess has served as a director since 1993
Forrest Godde has served as a director since 1993
Richard L. Schwary has served as a director since 1985
Josef Suveg has served as a director since 1993
There are no arrangements or understandings between any of the directors and any
other persons pursuant to which any director is to be selected as a director or
nominee.
MINERAL MOUNTAIN MINING & MILLING COMPANY
FORM 10-K - PARTS I, II, III & IV
March 31, 2002
PART III
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)
(b) Identification of Executive Officers:
Name Age Title
------------------- --- ---------------------------------------------
Earl T. Siler 87 President and Chief Executive Officer
Donald L. Hess 73 Secretary/Treasurer and Principal Financial Officer
The officers serve in the positions indicated after their names for a period of
one year or until a successor is elected and qualified.
(I) Background.
Earl T. Siler, 87, is the President of the Registrant and is a
Director. He is a retired Mining Equipment Dealer and has served on the Board
of Directors for several mining companies over the past 25 years.
Donald L. Hess, 73, is the Secretary-Treasurer of the Registrant and
is a Director. He is a Certified Public Accountant with over 40 years of
experience in public accounting, and also is the principal owner of the Columbia
Stock Transfer Company which is the Registrant's transfer agent.
(II) Directorships.
Earl T. Siler is the President and Director of the Registrant. He is a retired
Mining Equipment Dealer and has served on the Board of Directors for several
mining companies over the past 25 years.
Donald L. Hess is the Secretary-Treasurer and Director of the Registrant. He
was a Certified Public Accountant with over 40 years of experience in public
accounting.
Forrest Godde is a businessman and Director of Mineral Mountain Mining & Milling
Company.
Josef Suveg is a retired mining engineer and Director of Mineral Mountain Mining
& Milling Company.
Richard L. Schwary is a Director of Mineral Mountain Mining and Milling Company.
ITEM 11 - EXECUTIVE COMPENSATION
(a) (1) All executive officers
Total annual compensation received by all executive officers is $600 per year.
MINERAL MOUNTAIN MINING & MILLING COMPANY
FORM 10-K - PARTS I, II, III & IV
March 31, 2002
PART III
ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(a) Security ownership of certain beneficial owners.
Amount &
Nature of
Title of Name of Beneficial Percent of
Class Beneficial Owner Ownership Class
--------- ---------------------- ----------------------- ----------
Common Borjessan Family Direct 10.01%
Shares Trust 312,046 shares
Common Cede & Co On Deposit 10.28%
Shares for brokers
320,542 shares
(b) Security ownership of management.
Amount &
Nature of
Title of Name of Beneficial Percent of
Class Beneficial Owner Ownership Class
--------- ---------------------- ----------------------- ----------
Common Earl T. Siler 91,000 2.92%
Shares Direct
Common Donald L. Hess 326,713 10.48%
Shares Direct
Common Forrest Godde 40,000 1.28%
Shares Direct
Common Josef Suveg 31,000 .99%
Shares Direct
Common Richard Schwary 44,200 1.42%
Shares Direct
Total of all Officers and Directors: 532,913
Shares of Record
& Beneficially 17.09%
MINERAL MOUNTAIN MINING & MILLING COMPANY
FORM 10-K - PARTS I, II, III & IV
March 31, 2002
PART III
ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
(a) Transactions with Management and Others.
There have been no transactions of the type set forth in Item 404(a) of
Regulation S-X.
(b) Certain Business Relationships.
Donald L. Hess, Secretary of the Registrant, maintains the financial records of
the Registrant. He is also the owner of the Columbia Stock Transfer Company
which acts as transfer agent and registrar of the Registrant's outstanding
stock.
PART IV
ITEM 14 - EXHIBITS, FINANCIAL STATEMENTS SCHEDULES AND REPORTS ON FORM 8-K
(a) Financial Statements.
Statements of Financial Position,
March 31, 2002, 2001, and 2000 10
Statements of Operations for the years ended
March 31, 2002, 2001, and 2000 and cumulative from
August 4, 1932 to March 31, 2002 11
Statements of Stockholders' Equity from
August 4, 1932 to March 31, 1994 and for
the years ended March 31, 1995 through March 31, 2002 12
Statements of Cash Flows for the years ended
March 31, 2002, 2001, and 2000 13
Notes to Financial Statements,
March 31, 2002, 2001, and 2000 14-17
The Registrant's financial statements are unaudited in reliance upon Section
210.3-11 of Regulations S-X adopted by the Securities and Exchange Commission.
(b) Reports on Form 8-K.
No reports were filed by the Registrant on Form 8-K during the last quarter of
2001 or the first quarter of 2002.
MINERAL MOUNTAIN MINING & MILLING COMPANY
(An Exploratory Stage Mining Company)
Statements of Financial Position, March 31, 2002, 2001, and 2000
(UNAUDITED)
Notes 2002 2001 2000
---------- ------------ ------------ ------------
ASSETS
CURRENT ASSETS
Cash in bank $ 1,867 $ 1,574 $ 672
Certificate of deposit 8,500 10,000 13,000
Receivables and prepaids - 1,059 492
------------ ------------ ------------
TOTAL CURRENT ASSETS 10,367 12,633 14,164
------------ ------------ ------------
PROPERTY
Mining Property (Notes 2&3) 53,808 53,808 53,808
------------ ------------ ------------
TOTAL ASSETS $ 64,175 $ 66,441 $ 67,972
============ ============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable to Officers and
Directors $ 2,400 $ 2,200 $ 1,560
------------ ------------ ------------
TOTAL CURRENT LIABILITIES 2,400 2,200 1,560
------------ ------------ ------------
SHAREHOLDERS' EQUITY
Capital Stock, non-assessable,
par value five cents per
share, authorized
10,000,000 shares, issued
3,078,049 shares in 2000 (Note 4) - - 153,902
3,117,531 shares in 2002 and 2001 155,877 155,877 -
Paid-in surplus 338,003 338,003 339,978
(Deficit) accumulated during
the exploration stage (432,105) (429,639) (427,468)
------------ ------------ ------------
TOTAL SHAREHOLDERS' EQUITY 61,775 64,241 66,412
------------ ------------ ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 64,175 $ 66,441 $ 67,972
============ ============ ============
PREPARED FROM THE RECORDS WITHOUT AUDIT.
The accompanying notes to financial statements are an integral part of this
financial statement.
MINERAL MOUNTAIN MINING & MILLING COMPANY
(An Exploratory Stage Mining Company)
Statements of Operations for the years ended March 31, 2002, 2001, and 2000 and
cumulative from August 4, 1932 to March 31, 2002
(UNAUDITED)
08/04/1932
to
Notes 2002 2001 2000 03/31/2002
------------ ------------ ------------ ------------
INCOME
Sale of timber - - - $ 22,155
Interest income $ 620 $ 748 $ 901 6,232
------------ ------------ ------------ ------------
TOTAL INCOME 620 748 901 28,387
------------ ------------ ------------ ------------
EXPENSES
Officers and Directors fees
and expenses (Notes 4 and 6) 600 600 600 120,472
Professional fees (Note 6) 1,723 1,415 913 33,686
SEC & stock exchange fees - - 166 6,398
Office supplies & expenses 37 178 38 11,330
Property & other taxes 26 26 36 1,494
Transfer Agency fees (Note 6) 400 400 426 3,401
Spokane Quotation Bureau 300 300 300 2,250
Engineering & property costs - - - 9,426
Net general & administrative
expenses August 4, 1932
through March 31, 1962 - - - 92,402
------------ ------------ ------------ ------------
TOTAL EXPENSES 3,086 2,919 2,479 280,859
------------ ------------ ------------ ------------
(LOSS) BEFORE OTHER
INCOME AND EXPENSES (2,466) (2,171) (1,578) (252,472)
Total capitalized exploration
costs Written-off - - - (196,997)
Prior year debt adjustment - - - 17,364
------------ ------------ ------------ ------------
NET (LOSS) BEFORE TAXES (2,466) (2,171) (1,578) (432,105)
INCOME TAXES (Note 5) 0 0 0 0
------------ ------------ ------------ ------------
NET (LOSS) $ (2,466) $ (2,171) $ (1,578) $ (432,105)
============ ============ ============ ============
NET (LOSS) PER SHARE $ (0.0008) $ (0.0007) $ (0.0005) $ (0.1386)
============ ============ ============ ============
PREPARED FROM THE RECORDS WITHOUT AUDIT.
The accompanying notes to financial statements are an integral part of this
financial statement.
MINERAL MOUNTAIN MINING & MILLING COMPANY
(An Exploratory Stage Mining Company)
Statements of Stockholders' Equity from August 4, 1932 to March 31, 1994,
And for the years ended March 31, 1995 through March 31, 2002
(UNAUDITED)
Number Accumu- Cost of
of Shares Par Paid-In lated Treasury
Issued Value Surplus (Deficit) Stock Total
---------- ---------- ---------- ---------- ---------- ----------
From 08-04-32
to 3-31-94 2,711,649 135,582 341,967 (425,056) (2,355) 50,138
March 31, 1995
Net Income - - - 12,791 - 12,791
Stock Issuances 175,820 8,791 - - - 8,791
Treasury Stock
Issued - - (1,989) - 2,355 366
---------- ---------- ---------- ---------- ---------- ----------
BALANCES 03-31-95 2,887,469 144,373 339,978 (412,265) 0 72,086
March 31, 1996
Net Loss - - - (2,269) - (2,269)
---------- ---------- ---------- ---------- ---------- ----------
BALANCES 03-31-96 2,887,469 144,373 339,978 (414,534) 0 69,817
March 31, 1997
Net Loss - - - (2,642) - (2,642)
---------- ---------- ---------- ---------- ---------- ----------
BALANCES 03-31-97 2,887,469 144,373 339,978 (417,176) 0 67,175
March 31, 1998
Stock Issuances
for services 190,580 9,529 - - - 9,529
Net Loss - - - (4,891) - (4,891)
---------- ---------- ---------- ---------- ---------- ----------
BALANCES 03-31-98 3,078,049 153,902 339,978 (422,067) 0 71,813
March 31, 1999
Net Loss - - - (3,823) - (3,823)
---------- ---------- ---------- ---------- ---------- ----------
BALANCES 03-31-99 3,078,049 153,902 339,978 (425,890) 0 67,990
March 31, 2000
Net Loss - - - (1,578) - (1,578)
---------- ---------- ---------- ---------- ---------- ----------
BALANCES 3-31-2000 3,078,049 153,902 339,978 (427,468) 0 66,412
March 31, 2001
Net Loss - - - (2,171) - (2,171)
Correction to
adjust records
to Number of
outstanding
Shares per
stockledger 39,482 1,975 (1,975) 0 0 0
---------- ---------- ---------- ---------- ---------- ----------
BALANCES 3-31-2001 3,117,531 155,877 338,003 (429,639) 0 64,241
March 31, 2002
Net Loss - - - (2,466) - (2,466)
---------- ---------- ---------- ---------- ---------- ----------
BALANCES 3-31-2002 3,117,531 $ 155,877 $ 338,003 $(432,105) 0 $ 61,775
========== ========== ========== ========== ========== ==========
PREPARED FROM THE RECORDS WITHOUT AUDIT.
The accompanying notes to financial statements are an integral part of this
financial statement.
MINERAL MOUNTAIN MINING & MILLING COMPANY
(An Exploratory Stage Mining Company)
Statements of Cash Flows for the years ended March 31, 2002, 2001, and 2000
(UNAUDITED)
2002 2001 2000
------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (Loss) $ (2,466) $ (2,171) $ (1,578)
Adjustments to reconcile to net
cash provided or (used):
Increase(decrease) receivables
& prepaids 1,059 (567) (492)
Increase (decrease) to payables 200 640 (102)
------------ ------------ ------------
NET CASH USED IN OPERATING ACTIVITIES (1,207) (2,098) (2,172)
NET INCREASE (DECREASE) TO CASH (1,207) (2,098) (2,172)
CASH BEGINNING OF PERIOD 11,574 13,672 15,844
------------ ------------ ------------
CASH END OF PERIOD $ 10,367 $ 11,574 $ 13,672
============ ============ ============
NON-CASH TRANSACTIONS NONE NONE NONE
============ ============ ============
INTEREST AND INCOME TAXES PAID NONE NONE NONE
============ ============ ============
PREPARED FROM THE RECORDS WITHOUT AUDIT.
The accompanying notes to financial statements are an integral part of this
financial statement.
MINERAL MOUNTAIN MINING & MILLING COMPANY
(An Exploratory Stage Mining Company)
Notes to Financial Statements, March 31, 2002, 2001, and 2000
(UNAUDITED)
NOTE 1 - COMPANY BUSINESS
Mineral Mountain Mining & Milling Company ("The Company") was incorporated under
the laws of the state of Idaho on August 4, 1932, and has been in the
exploratory stage since its inception. It is engaged in the business of mining
and is exploring for non-ferrous and precious metals, primarily silver, lead and
copper. The property of the Company is situated in the Coeur d'Alene Mining
District of Shoshone County, Idaho. The Company has no commercial production
operations.
NOTE 2 - ACCOUNTING POLICIES
Use of Estimates in the Preparation of Financial Statements:
This summary of significant accounting policies is presented to assist in
understanding the Company's financial statements. The financial statements and
notes are representations of the Company's management, which is responsible for
their integrity and objectivity. These accounting policies conform to generally
accepted accounting principles of the United States of America and have been
consistently applied in the preparation of the financial statements.
The significant accounting principles and practices of the Company are as
follows:
a. The financial statements are prepared on the accrual basis of accounting.
b. The process of preparing financial statements in conformity with
generally accepted accounting principles requires the use of estimates and
assumptions regarding certain types of assets, liabilities, revenues, and
expenses. Such estimates primarily relate to unsettled transactions and events
as of the date of the financial statements. Accordingly, upon settlement,
actual results may differ from estimated amounts.
c. In accord with Statement No. 7 of the Financial Accounting Standards
Board ("SFAS 7") for development stage companies (which classification includes
exploratory stage mining companies), the Company charges costs related to
exploration to operations with the exception of those which in the opinion of
management have a continuing value. Statement No. 7 provides that financial
statements issued by a development enterprise shall present the same financial
information that is required of established operating enterprises.
d. The Company is unable to present cumulative statements of income,
shareholders' equity and cash flows from inception of exploration stage
activities due to incomplete prior year accounting records. Presentation of
cumulative statements is required by SFAS 7.
e. The Company considers cash equivalents to be highly liquid investments
with an original maturity of three months or less.
f. The Company reports comprehensive income (loss) in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting
Comprehensive Income." Accordingly, accumulated other comprehensive income or
loss is included in the Stockholders' Equity section of the Balance Sheet.
Amounts are reported net of tax and include gains or losses on available for
sale securities.
MINERAL MOUNTAIN MINING & MILLING COMPANY
(An Exploratory Stage Mining Company)
Notes to Financial Statements, March 31, 2002, 2001, and 2000
(UNAUDITED)
NOTE 2 ACCOUNTING POLICIES (continued)
g. The Company capitalizes costs incurred to purchase mineral property and
to purchase or lease mineral rights. Exploration and development costs
associated with mineral properties and claims not yet in production are expensed
as incurred.
h. Earnings per share are computed using the weighted average of shares
outstanding.
i. Income tax provisions are calculated using an asset and liability method.
j. Long-lived assets are reviewed for impairment when circumstances indicate
that their carrying value may not be recoverable. In assessing recoverability,
estimates of future cash flows expected to result from the use of the asset
and/or its disposition is used. If the sum of expected future cash flows
(undiscounted and without interest charges) is less than the carrying amount of
the asset, an impairment loss should be recognized based on the fair value of
the asset.
k. The Financial Accounting Standards Board issued SFAS No. 133, "Accounting
for Derivative Instruments and Hedging Activities," in June 1998 and SFAS No.
138, "Accounting for Derivative Instruments and Certain Hedging Activities", in
June 2000. These standards establish accounting and reporting standards for
derivative instruments, including certain derivative instruments embedded in
other contracts, and for hedging activities. It requires that an entity
recognize all derivatives as either assets or liabilities on the balance sheet
and measure those instruments at fair value, at the appropriate date. At March
31, 2000, 2001, and 2002, the Company has not engaged in any transactions that
would be considered derivative instruments or hedging activities.
l. As of March 31, 2002, the Company has a recorded cost of $53,808 in
exploratory stage mining properties which represents 83.85% of total assets. The
ultimate realization of the Company's carrying costs in these assets is
dependent upon the discovery and the ability of the Company to finance
successful exploration and development of commercial ore deposits, if any, in
the mining properties in sufficient quantity for the Company to recover its
recorded cost or to sell such assets for greater than their recorded values.
The likelihood of such discovery and development of ore in the exploratory
mining properties, or sale thereof at March 31, 2002 cannot presently be
determined. Therefore the recoverability of the recorded amounts of mining
properties is uncertain. No provision for any ultimate decline in the
realizable value of these assets has been made in the financial statements.
MINERAL MOUNTAIN MINING & MILLING COMPANY
(An Exploratory Stage Mining Company)
Notes to Financial Statements, March 31, 2002, 2001, and 2000
(UNAUDITED)
NOTE 3 - MINING PROPERTY AND AGREEMENTS
The Company's mining property consists of four patented mining
claims which were acquired by the issuance of 1,100,000 shares of common capital
stock. Prior to 1946, the Company performed a limited amount of exploration
work on its claims over a number of years. An agreement was entered into on
October 16, 1946 between Polaris Mining Company (now Hecla Mining Company) and
Chester Mining Company providing for exploration and development work on a
unitized area consisting of the four Mineral Mountain claims plus specifically
defined portions of six Chester and three Polaris claims. Polaris was to
perform the exploration work which was to be paid by Mineral Mountain. If the
venture was successful, ores mined from the Mineral Mountain Area were to be
divided on a basis of one-third each after 2/3 of all exploratory costs advanced
by the Company had been reimbursed from net smelter returns. The costs paid out
by the Company were included in the capitalized exploratory costs previously
shown on the balance sheet. All capitalized exploration costs were written off
on March 31, 1994. Work under the 1946 agreement was completed in the year 1948
without discovery of commercial ore.
Another agreement on the "Mineral Mountain Area" was entered into
on July 24, 1957. The 1957 agreement refers to termination of the 1946
agreement and that Polaris (Hecla Mining Company), Chester Mining Company and
the Company each owned an undivided one third interest in any commercial ore,
which may be found in the area. The 1957 agreement also provided that the
Company would not be reimbursed for 2/3 of the exploration costs it had
expended on the unitized property under the 1946 agreement.
The 1957 agreement further provided that Polaris (Hecla) was to
perform exploratory work on the unitized area. Polaris (Hecla) reported that it
had expended $102,067 under the 1957 agreement and that work was suspended in
July 1958. The percentage interests set out in the 1957 agreement were Polaris,
50%, and the Company and Chester, 25% each. Hecla Mining Company deeded all
their interest in the Mineral Mountain Area to Sunshine Mining Company on June
26, 1984.
Sunshine Mining Company discontinued all operations in the state
of Idaho during the first quarter of 2002.
MINERAL MOUNTAIN MINING & MILLING COMPANY
(An Exploratory Stage Mining Company)
Notes to Financial Statements, March 31, 2002, 2001, and 2000
(UNAUDITED)
NOTE 4 - CAPITALIZATION
The Company was originally incorporated on August 4, 1932, with
an authorized capital of 2,000,000 shares of common capital stock with a par
value of 5 cents per share. On March 31, 1952, the shareholders amended the
authorized capital to 3,000,000 shares of 5 cents par value capital stock. On
August 21, 1984, the shareholders amended the authorized capital to 10,000,000
shares of 5 cent par value capital stock.
A summary of the Company shares issued since inception to March
31, 2002 is as follows (Note: the respective Boards of Directors determined the
basis of each consideration of capital stock issuance in non-cash transactions):
August 4, 1932
(inception) to
March 31, 2002
------------------
Cash 1,077,700
Services 597,729
Property 1,100,000
Payment of liabilities 302,620
Adjustment to reconcile with
stock transfer records 39,482
------------
TOTAL OUTSTANDING 3,117,531
============
A summary of items making up the paid-in surplus account at March
31, 2002 is as follows:
Premium on shares $ 452,662
Discount on shares (39,472)
Reacquired shares - discount (15,423)
Commission & other (57,789)
Adjustment to reconcile with
stock transfer records (1,975)
------------
TOTAL $ 338,003
============
During the year ended March 31, 1998, a total of 190,580 shares were issued
for services rendered or in the payment of accounts payable for services
rendered in prior years.
During the year ended March 31, 2001 an adjustment of 39,482 shares ($1,975) was
made to reconcile the accounting records with the capital stock transfer
records. A corresponding adjustment of $1,975 was made to paid-in surplus.
MINERAL MOUNTAIN MINING & MILLING COMPANY
(An Exploratory Stage Mining Company)
Notes to Financial Statements, March 31, 2002, 2001, and 2000
(UNAUDITED)
NOTE 5 - INCOME TAXES
The Company has a net operating loss carryover for income tax
purposes of $208,647 which expires as follows:
03-31-09 $ 188,807
03-31-11 2,269
03-31-12 2,642
03-31-13 4,891
03-31-19 3,823
03-31-20 1,578
03-31-21 2,171
03-31-22 2,466
At March 31, 2002, 2001, and 2000, deferred tax differences primarily relate to
capitalization of exploration costs for income tax purposes. The Company's
deferred tax liabilities are completely offset by its net operating loss
carryovers. As there is no certainty as to the utilization of these items, the
benefit attributable thereto is fully offset by a valuation allowance.
The deficit accumulated during the exploratory stage in the amount of $196,997
had been capitalized for income tax purposes to March 31, 1993. As no known ore
bodies or productive vein systems had been discovered, these costs were written
off for income tax purposes on March 31, 1994
NOTE 6-RELATED PARTY TRANSACTIONS
Amounts were paid or accrued to officers of the Company in the fiscal years
ended March 31, 2002, 2001, and 2000 as follows:
Fiscal Year ended March 31
-------------------------------------
2002 2001 2000
---------- ---------- -----------
Accounting and stock transfer expense $ 1,723 $ 1,415 $ 913
Officer Compensation 600 600 600
Stock Transfer services 400 400 426
SIGNATURES
----------
Pursuant to the requirements of Section 13, 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.
MINERAL MOUNTAIN MINING & MILLING COMPANY
(REGISTRANT)
/S/ Donald L. Hess /S/ Earl T. Siler
--------------------- --------------------
Donald L. Hess Earl T. Siler
Secretary - Treasurer and President, Chief Administrative
Principal Financial Officer Officer and Director
Date: June 28, 2002 Date: June 28, 2002
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and as of the date indicated.
Date: June 28, 2002 /S/ Earl T. Siler
--------------------
Earl T. Siler
President, Director and
Principal Executive Officer
Date: June 28, 2002 /S/ Donald L. Hess
---------------------
Donald L. Hess
Secretary - Treasurer, Director and
Principal Financial Officer
Date: June 28, 2002 /S/ Forrest Godde
-------------------
Forrest Godde
Director
Date: June 28, 2002 /S/ Josef Suveg
-----------------
Josef Suveg
Director
Date: June 28, 2002 /S/ Richard Schwary
---------------------
Richard L. Schwary
Director