T
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QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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o
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TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Washington
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001-01428
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68-0612191
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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1611
N. Molter Road, Ste. 201
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Liberty
Lake, Washington
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99019
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(Address
of principal executive offices)
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(Zip
Code)
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Large
accelerated filer £
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Accelerated
filer £
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Non-accelerated
filer £ (Do not
check if a smaller reporting company)
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Smaller
reporting Company S
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HuntMountain
Resources Ltd. and Subsidiaries
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(An
Exploration Stage Enterprise)
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Consolidated
Balance Sheet
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March
31, 2007 (Unaudited)
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|||||||
Assets
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||||||||
CURRENT
ASSETS:
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||||||||
Cash
and Cash Equivalent:
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||||||||
Cash
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$ | 251,856 | ||||||
Prepaid
Expenses
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14,030 | |||||||
Total
Current Assets
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265,886 | |||||||
EQUIPMENT:
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||||||||
Office
Equipment
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$ | 11,216 | ||||||
Less
Accumulated Depreciation
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4,209 | |||||||
Total
Office Equipment
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7,007 | |||||||
OTHER
ASSETS:
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||||||||
Investments
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7,331 | |||||||
Bonds
for Argentina Property Bid
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251,613 | |||||||
Property
Purchase Option
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70,000 | |||||||
Total
Other Assets
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328,944 | |||||||
TOTAL
ASSETS
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$ | 601,837 | ||||||
Liabilities
and Stockholders’ Equity (Deficit)
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||||||||
CURRENT
LIABILITIES:
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||||||||
Trade
Accounts Payable
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$ | 36,566 | ||||||
Accrued
Wages and Related Taxes
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23,666 | |||||||
Short-term
Note Payable - Related Party, net of debt discount
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253,107 | |||||||
Accrued
Interest Payable - Related Party
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14,140 | |||||||
Total
Current Liabilities
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327,479 | |||||||
STOCKHOLDERS’
EQUITY (DEFICIT):
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||||||||
Common
Stock – 300,000,000 Shares, $0.001 Par Value, Authorized;32,266,285 Shares
Issued and Outstanding
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$ | 32,266 | ||||||
Preferred
Stock – 10,000,000 Shares, $0.001 Par Value, Authorized;-0- Shares Issued
and Outstanding
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- | |||||||
Additional
Paid-In Capital
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3,286,308 | |||||||
Retained
Earnings
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90,527 | |||||||
Deficit
Accumulated During the Development Stage
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(3,128,972 | ) | ||||||
Accumulated
Other Comprehensive Loss
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(5,772 | ) | ||||||
Total
Stockholders’ Equity (Deficit)
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274,358 | |||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ | 601,837 |
See
accompanying condensed notes to consolidated interim financial
statements.
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HuntMountain
Resources Ltd. and Subsidiaries
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|
(An
Exploration Stage Enterprise)
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|
Consolidated
Statements of Income
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Three
Months Ended March 31,
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From
Inception of Development Stage July 1, 2005 through
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|||||||||||
2007
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2006
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March 31, 2007
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||||||||||
(Unaudited)
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(Unaudited)
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(Unaudited)
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||||||||||
INCOME:
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||||||||||||
Dividend
and Interest Income
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$ | 265 | $ | 6,227 | $ | 65,500 | ||||||
EXPENSES:
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||||||||||||
Professional
Fees
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36,446 | 15,985 | 133,711 | |||||||||
Marketing
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9,300 | 2,265 | 116,267 | |||||||||
Exploration
Expenses
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399,013 | 71,786 | 1,514,475 | |||||||||
Travel
Expenses
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17,617 | 12,998 | 113,159 | |||||||||
Administrative
and Office Expenses
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17,643 | 23,400 | 176,538 | |||||||||
Payroll
Expenses
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124,763 | 63,430 | 523,799 | |||||||||
Stock
Option Compensation Expense
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- | - | 71,000 | |||||||||
Stock
Options Issued for Services
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9,000 | 132,000 | 230,750 | |||||||||
Interest
Expense
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14,140 | - | 14,140 | |||||||||
Depreciation
Expense
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935 | 351 | 4,210 | |||||||||
Financing
charge
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39,176 | - | 39,176 | |||||||||
Amortization
of debt discount
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259,670 | - | 259,670 | |||||||||
Total
Expenses
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927,703 | 322,215 | 3,196,895 | |||||||||
LOSS
BEFORE OTHER INCOME
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(927,438 | ) | (315,988 | ) | (3,131,395 | ) | ||||||
OTHER
INCOME:
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||||||||||||
Income
from Partnership Interest
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- | - | 2,423 | |||||||||
NET
LOSS
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$ | (927,438 | ) | $ | (315,988 | ) | $ | (3,128,972 | ) | |||
BASIC
LOSS PER SHARE, Based on Weighted-Average Shares
Outstanding
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$ | (0.03 | ) | $ | (0.02 | ) | ||||||
WEIGHTED-AVERAGE
COMMON SHARES OUTSTANDING
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32,266,285 | 16,500,000 |
See
accompanying condensed notes to consolidated interim financial
statements.
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HuntMountain
Resources Ltd. and Subsidiaries
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(An
Exploration Stage Enterprise)
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Consolidated
Statements of Cash Flows
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Three
Months Ended March 31,
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From
Inception of Development Stage July 1, 2005 through
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|||||||||||
2007
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2006
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March 31, 2007
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||||||||||
(Unaudited)
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(Unaudited)
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(Unaudited)
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||||||||||
Increase
(Decrease) in Cash and Cash Equivalents
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||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
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||||||||||||
Net
Loss
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$ | (927,438 | ) | $ | (315,988 | ) | $ | (3,128,972 | ) | |||
Adjustments
to Reconcile Net Loss to Net Cash
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||||||||||||
Used
in Operating Activities
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||||||||||||
Depreciation
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935 | 351 | 4,209 | |||||||||
Stock
Option Compensation Expense
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- | - | 71,000 | |||||||||
Common
Stock Issued for Services
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9,000 | 132,000 | 230,750 | |||||||||
Financing
charge
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39,176 | - | 39,176 | |||||||||
Amortization
of debt discount
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259,670 | - | 259,670 | |||||||||
Gain
on sale of precious metal investments
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- | - | (15,194 | ) | ||||||||
(Increase)
Decrease in Prepaid Assets
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4,595 | 3,656 | (14,030 | ) | ||||||||
Increase
in Accrued Liabilities
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13,340 | 15,802 | 61,372 | |||||||||
Net
Cash Used in Operating Activities
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(600,722 | ) | (164,178 | ) | (2,492,018 | ) | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
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||||||||||||
Acquisition
of Equipment
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- | - | (11,216 | ) | ||||||||
Sale
of Precious Metal Investments
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- | - | 28,913 | |||||||||
Bonds
for Argentina Property Bid
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(251,613 | ) | - | (251,613 | ) | |||||||
Property
Purchase Option
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- | - | (70,000 | ) | ||||||||
Net
Cash Used in Investing Activities
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(251,613 | ) | - | (303,916 | ) | |||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
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||||||||||||
Proceeds
from Sales of Common Stock
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- | - | 1,132,870 | |||||||||
Proceeds
from Note Payable - Related Party
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807,000 | - | 807,000 | |||||||||
Net
Cash Provided by Financing
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- | - | - | |||||||||
Activities
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807,000 | - | 1,939,870 | |||||||||
NET
DECREASE IN CASH AND CASH EQUIVALENTS
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(45,335 | ) | (164,178 | ) | (856,065 | ) | ||||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
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297,191 | 901,162 | 1,107,921 | |||||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
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$ | 251,856 | $ | 736,984 | $ | 251,856 |
See
accompanying condensed notes to consolidated interim financial
statements.
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Number
of
Options
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Weighted
Average Exercise
Price
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Weighted
Average
Remaining
Contractual
Life
(Years)
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Number
of
Exercisable
Options
at
March 31,
2007
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|||||||||||||
90,000 | $ | 0.20 | 4.71 | 40,000 | ||||||||||||
700,000 | $ | 0.25 | 4.19 | 600,000 | ||||||||||||
100,000 | $ | 0.30 | 4.59 | 100,000 | ||||||||||||
10,000 | $ | 0.34 | 3.34 | 10,000 | ||||||||||||
10,000 | $ | 0.37 | 3.02 | 10,000 | ||||||||||||
50,000 | $ | 0.38 | 5.00 | 0 | ||||||||||||
150,000 | $ | 0.45 | 4.51 | 150,000 | ||||||||||||
10,000 | $ | 0.55 | 4.26 | 10,000 | ||||||||||||
25,000 | $ | 0.58 | 4.24 | 25,000 | ||||||||||||
55,000 | $ | 0.60 | 4.97 | 5,000 | ||||||||||||
200,000 | $ | 0.63 | 4.70 | 150,000 | ||||||||||||
TOTALS
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1,400,000 | $ | 0.354 | 4.40 | 1,100,000 |
As
Originally Reported
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As
Restated
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Impact
of the error Increase (Decrease)
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||||||||||
Income
Statement for the three month period ended March 31,
2007
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||||||||||||
Financing
Charge
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$ | - | $ | 39,176 | $ | 39,176 | ||||||
Amortization
of debt discount
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- | 259,670 | 259,670 | |||||||||
Net
loss
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(628,592 | ) | (927,438 | ) | (298,846 | ) | ||||||
Basic
and fully diluted loss per share
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$ | (0.02 | ) | $ | (0.03 | ) | $ | (0.01 | ) | |||
Balance
Sheet at March 31, 2007
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||||||||||||
Short-term
Note Payable - Related Party, net of debt discount
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$ | 807,000 | $ | 253,107 | $ | (553,893 | ) | |||||
Total
current liabilities
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881,372 | 327,479 | (553,893 | ) | ||||||||
Additional
paid-in capital
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2,433,570 | 3,286,308 | 852,738 | |||||||||
Deficit
Accumulated During the Development Stage
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(2,830,126 | ) | (3,128,972 | ) | (298,846 | ) | ||||||
Total
Stockholders’ Equity (Deficit)
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(279,535 | ) | 274,358 | 553,893 |