SECURITIES AND EXHANGE COMMISSION
Washington, DC 20549
Form 10-KSB
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended: December 31, 2001
Commission File #001-08429
THUNDER MOUNTAIN GOLD, INC.
(Exact name of Registrant as specified in its charter)
State of Idaho 91-1031075
(State or other jurisdiction of (IRS identification NO.)
incorporation or organization)
3605 E. 16th Avenue
Spokane, Washington 99223
(Address of Principal Executive Officers) (Zip Code)
(509) 535-6092
(Telephone Number of Registrant)
Securities registered pursuant to Section 12(b) of the Act:
Title of each Class Name of Exchange
on which Registered
------------------------- ------------------------
$0.05 par Value Common None
Non-Assessable Stock
Securities registered under Section 12(b) of the Exchange Act: None
Check whether the issuer (1) filed all reports required by Section 13 or 15(d)
of the Exchange Act 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 requirements for the past 90 days. Yes [X] No[ ]
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulations S-B is met contained in this form, and no disclosure will be
contained, to the best of the registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of the Form 10-KSB
or any amendment to this Form 10-KSB. [ ] Not Applicable [X]
The aggregate market value of the voting stock held by non-affiliates of the
Registrant as of December 31, 2001 was $289,325. This figure is based on
estimated bid price of $0.04.
Issued and outstanding common capital stock as of December 31, 2001.
9,727,852 shares of common $0.05 par value stock non -assessable.
No documents are Incorporated by reference.
Transitional small business disclosure format: Yes [ ] No [X]
PART 1
ITEM 1. DESCRIPTION OF BUSINESS
(a) GENERAL DEVELOPMENT OF BUSINESS.
The Company was originally incorporated under the laws of the State of Idaho on
November 9, 1935 under the name of Montgomery Mines, Inc. In August 1985, the
Company's shareholders approved an increase in the authorized common stock,
$0.05 par value, from 7,500,000 shares to 12,000,000 shares. Quotations of the
bid and ask prices for the stock are published by the Spokane Quotations Service
of Spokane, Washington.
The Company was originally incorporated with the goal to consolidate, explore
and to develop (or seek a larger mining company to develop under an arrangement
favorable to the Company) its primary property located in the Thunder Mountain
Mining District in central Idaho. A number of exploration companies had
conducted exploration activities on the Company's claims prior to and subsequent
to incorporation, including Homestake Mining, Nevex Ltd., Placer Amex, Superior
Mining, Phillips Petroleum and Coeur 'd Alene Mines.
The Company's precious metal property at Thunder Mountain ultimately was placed
into operation in 1986 by Coeur 'd Alene Mines with production from the
Sunnyside Deposit reported at 85,000 ounces of gold and 116,000 ounces of
silver. Coeur 'd Alene ceased production in 1990 and relinquished their lease
on the claims. Subsequently the area was leased to and explored by several
other exploration/mining companies, including Kennecott and USMX/Dakota Mining.
A joint venture between the Company and Dewey Mining unified the mining district
during this period, and USMX/Dakota Mining expended approximately $5 million to
explore the district and define a measured mineral resource1 of 5,390,000 tons
averaging 0.047 ounces per ton gold (using a then-current gold price of $400 per
ounce) hosted in a volcanic caldera sequence on the Dewey property. Bankruptcy
by Dakota Mines provided an opportunity for the Company and Dewey Mining to
acquire the consolidated district for future development. USMX/Dakota Mining
had initiated an Environmental Impact Statement and other permitting
requirements to develop the measured mineral resource, and the Company and Dewey
Mining continued these efforts for a period of time.
During 2000, the Company and Dewey Mining entered into an Option Agreement with
Trust for Public Lands to purchase the consolidated mining district. The Trust
for Public Lands is a nonprofit organization dedicated to the preservation of
nature for human enjoyment and well being. The Thunder Mountain Mining District
is located on a "cherry-stem" within the Frank Church River of No Return
Wilderness that was specifically outlined to allow continued development of the
historic mining area. Due to its location, the Company's land position is a
candidate for purchase by the United States Forest Service through the Land and
Water Conservation Funds. The Option recognizes a minimum acceptable value for
the measured mineral resource and real property, and if this is not met, the
Company maintains the ability to continue development of the property. All
permitting efforts have been, for the time being, placed on hold pending the
completion of the initial appraisal. The Option Agreement has been extended
beyond the original specified timeframe due to delays in securing an appraiser.
It is anticipated that the initial appraisal review will be completed by
mid-2002.
The Company also conducted minimal exploration for precious minerals outside of
the Thunder Mountain Mining District in the western states during 2001. A
platinum group metals exploration level property in Nevada was maintained during
the year.
1A measured mineral resource is that part of a mineral resource for which
quantity, grade or quality, densities, shape, physical characteristics are so
well established that they can be estimated with confidence sufficient to allow
the appropriate application of technical and economic parameters to support
production planning and evaluation of the economic viability of the deposit.
PRECIOUS MINERALS PROPERTIES
------------------------------
THUNDER MOUNTAIN AND DEWEY MINING COMPANY JOINT VENTURE LAND POSITION:
1. The Registrant and Dewey Mining Company, through their joint venture
agreement, own outright a total of 50-patented lode-mining claims (735.5 acres
total) and 272 unpatented lode claims (5,245 acres total). With the exception
of one small claim block within the Frank Church River of No Return Wilderness
(their location pre-dated the wilderness designation), all of the claims are
within the "cherry-stem" that forms a corridor into the wilderness. Mineral
development within this cherry-stem is subject to the same regulatory
stipulations as the United States Forest Service managed land surrounding the
wilderness. Some of the Registrants claims within the cherry stem are partially
within the wilderness area, but these were, for the most part, located as
protection of the land position more central to the cherry-stem that either has
mineral resources or exploration potential.
2. The Registrant has lease with an option to purchase on 4 patented and 40
unpatented lode claims in the Goodsprings Mining District in Clark County,
Nevada. Platinum, palladium and gold have historically been produced in the
area, and the land position was secured because of its exploration potential.
Efforts are ongoing to interest a larger platinum group metals exploration
company in the holdings.
THUNDER MOUNTAIN AND DEWEY MINING COMPANY JOINT VENTURE LAND POSITION:
-------------------------------------------------------------------------------
(b) FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS.
The Registrant has no other industry segments.
(c) NARRATIVE DESCRIPTION OF BUSINESS.
Refer to ITEM: 1 Description of Business (supra) Subparagraph (i) through (xii)
are not applicable to the Registrant.
(d) FINANCIAL INFORMATION ABOUT FOREIGN AND DOMESTIC OPERATIONS AND EXPORT
SALES.
This paragraph is not applicable to the Registrant.
ITEM 2: PROPERTIES
For continuity and clarity, this information was included in the
information set in Item 1.
ITEM 3: LEGAL PROCEEDINGS.
The Company, along with other impacted entities, including companies,
municipalities and various irrigation districts, has been involved in a legal
protest against the Federal Government's claims for certain reserved water
rights for Wild and Scenic Rivers Act purposes. The matter is in the Idaho
State District Court assigned to handle the Snake River Basin water rights
adjudication. A settlement has been tentatively reached that is favorable to
the Company, and will be a settlement that would maintain sufficient vested and
future water rights appropriation for any mining and processing operation.
These water rights would also be a valuable part of the ongoing appraisal
process by Trust for Public Lands.
The Registrant is involved in no civil rights negotiations or proceedings.
ITEM 4: SUBMISSION OF MATTERS TO VOTE ON SECURITY HOLDERS.
No matters were submitted to vote of the Registrant's security holders
during 2001.
PART 11
ITEM 5: MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
(a) MARKET INFORMATION.
The common stock of the Registrant is traded over-the-counter in Spokane,
Washington and its bid and asked prices are quoted on a daily basis by the
Spokane Quotation Service, Spokane, Washington.
The bid prices for the Registrant's stock for the years 2001 and 2000 were as
follows:
2000 HIGH LOW
-------- ---------
First Quarter $ 0.10 $ 0.04
Second Quarter $ 0.10 $ 0.10
Third Quarter $ 0.10 $ 0.10
Fourth Quarter $ 0.10 $ 0.10
2001 HIGH LOW
-------- ---------
First Quarter $ 0.10 $ 0.03
Second Quarter $ 0.08 $ 0.04
Third Quarter $ 0.08 $ 0.05
Fourth Quarter $ 0.05 $ 0.03
(b) APPROXIMATE NUMBER OF EQUITY SECURITY HOLDERS:
Title of Class No. of Record Holders
---------------------------- ------------------------------------
$0.05 Par Value 2,250 as of December 31, 2001
Common Stock Non-Assessable
(c) DIVIDEND HISTORY AND RESTRICTIONS
The Registrant has not paid any dividends, and does not plan to do so in the
foreseeable future as it plans to use its capital to finance the search
for additional mineral properties of potential commercial value.
ITEM 6: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION.
(a) FULL FISCAL YEAR.
Liquidity: The Company has a positive cash-position and has invested funds in a
cash management mutual fund. The Company's cash and liquid assets are
considered adequate to meet its current and foreseeable obligations. The market
value of some of the stock mutual funds decreased substantially during 2001,
representing a significant loss.
Expenses for the ensuing year will be incurred for continued search and
exploration for additional properties, and for management fees and
administrative costs. The Company's required claim maintenance will be paid for
its unpatented claims by the Company. It is anticipated that Directors and
managerial fees will be minimal during the upcoming year due to the low cash
position of the Company. Please refer to the financial statements for
additional costs and expenditures and other financial information.
Capital Resources: The Company presently does not intend to make any capital
expenditures from its funds. The Company also does not presently have any
plans to raise capital through debt or equity financing.
Results of Operations: The Company had no production from operations for 2001.
Although additional production units are likely, it is impossible to predict
with any certainty when and where the next production unit will be developed.
For that reason, it is impossible to predict the future production units.
The Company entered into a purchase option agreement with Trust for Public Lands
(TPL) in 2000. Appraisal work commenced late in 2001 and a preliminary
appraisal should be completed by mid-2002. The agreement with TPL provides them
with an option to acquire both the Company's and Dewey Mining Company's land and
mineral position in the Thunder Mountain Mining District, subject to an
appraised amount that is acceptable to both entities. The appraisal will value
both the private land, unpatented mining claims, mineral value of the defined
resource, mineral potential of the Company's holdings, timber, and water rights.
The purchaser of the properties would be the United State Forest Service,
brokered through TPL. In the event that the appraised amount is acceptable, the
Company may determine that it would be in the best interests of the shareholders
to move ahead with the sale. The appropriate shareholder approvals would be
solicited. If the properties are sold, it is possible that some of the proceeds
could be forthcoming late in 2002.
There were no revenues generated by the Company in 2001.
ITEM 7: FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
FINANCIAL STATEMENT
AND
REPORT OF INDEPENDENT AUDITORS
DECEMBER 31, 2001
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
INDEX TO THE FINANCIAL STATEMENTS
CONTENTS
Report of Independent Auditors 1
Balance Sheet at December 31, 2001 and 2000 2
Statement of Operations for the Years Ended
December 31, 2001, 2000, and 1999 3
Statement of Cash Flows for the Years Ended
December 31, 2001, 2000, and 1999 4
Statement of Changes in Stockholders' Equity for the
Years Ended December 31, 2001, 2000, and 1999 5
Notes to Financial Statements 6-9
Report of Independent Auditors on Supplemental Schedules 11
Supplemental Schedules 12-16
REPORT OF INDEPENDENT AUDITORS
------------------------------
Board of Directors
Thunder Mountain Gold, Inc.
Spokane, Washington
We have audited the accompanying Balance Sheets of Thunder Mountain
Gold, Inc., (An Exploration Stage Company) as of December 31, 2001 and 2000, and
the related Statements of Operations, Cash Flows and Changes in Stockholders'
Equity for each of the three years ended December 31, 2001, 2000, and 1999.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audit.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Thunder Mountain
Gold, Inc., (An Exploration Stage Company) as of December 31, 2001 and 2000, and
the results of its operations, cash flows and changes in stockholders' equity
for each of the three years ended December 31, 2001, 2000 and 1999,in conformity
with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 6 to the
financial statements, the Company has suffered recurring losses from operations
that raise substantial doubt about its ability to continue as a going concern.
Management's plans in regard to these matters are also described in Note 5. The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.
As discussed in Note 3 to the financial statements, the financial statements
for the years ended December 31, 2000, 1999, and 1998, have been restated to
reflect the expensing of mining claims.
/s/ MOE O'SHAUGHNESSY & ASSOCIATES, P.S.
April 24, 2001
Spokane, Washington
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
Balance Sheet
December 31, 2001 and 2000
ASSETS
2001 2000
------------ ------------
(Restated -
See NOTE 3)
CURRENT ASSETS:
Cash and Cash Equivalents $ 5,275 $ 7,599
Prepaid Expenses 300 300
Investments 84,142 231,923
------------ ------------
Total Current Assets 89,717 239,822
------------ ------------
INVESTMENTS - Non-Current 170 170
------------ ------------
PROPERTY AND EQUIPMENT:
Office Equipment 7,141 7,141
Mining Claims - -
------------ ------------
Total Property and Equipment 7,141 7,141
Less: Accumulated Depreciation 6,970 6,856
------------ ------------
Net Property and Equipment 171 285
------------ ------------
TOTAL ASSETS $ 90,058 $ 240,277
============ ============
The accompanying notes are an integral part of these financial statements.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
Balance Sheet
December 31, 2001 and 2000
LIABILITIES AND STOCKHOLDERS' EQUITY
2001 2000
------------ ------------
(Restated -
See NOTE 3)
CURRENT LIABILITIES:
Accounts payable $ 9,860 $ -
Accrued Directors and Management Fees - 16,000
------------ ------------
Total Current Liabilities 9,860 16,000
------------ ------------
STOCKHOLDERS' EQUITY:
Common Stock, $0.05 Par Value;
12,000,000 Shares Authorized;
9,727,852 and 9,727,852
Shares Issued Respectively 486,392 486,392
Additional Paid-in Capital 254,222 254,222
Less: 11,700 Shares of Treasury
Stock, At Cost (24,200) (24,200)
Accumulated Other Comprehensive
Income (Loss) (69,562) (47,265)
Retained Earnings/ (Deficit) (566,654) (444,872)
------------ ------------
Total Stockholders' Equity 80,198 224,277
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 90,058 $ 240,277
============ ============
The accompanying notes are an integral part of these financial statements.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
Statement of Operations
For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999
------------ ------------ ------------
(Restated - (Restated -
See NOTE 3) See NOTE
INCOME:
Royalties $ - $ - $ -
------------ ------------ ------------
EXPENSES:
Exploration and Development 74,614 134,572 24,781
Depreciation and Depletion 114 1,830 4,145
Directors' Fees and
Professional Services 6,000 18,000 25,000
Legal and Accounting 14,703 6,635 12,340
Management and
Administrative 5,200 9,388 23,501
------------ ------------ ------------
Total Expenses 100,631 170,425 89,767
------------ ------------ ------------
(LOSS) FROM OPERATIONS (100,631) (170,425) (89,767)
------------ ------------ ------------
OTHER INCOME:
Interest and Dividend
Income 439 16,198 7,654
Gain (Loss) on Sale of
Securities and Assets (21,589) 51,625 119,163
------------ ------------ ------------
(21,150) 67,823 126,817
------------ ------------ ------------
INCOME (LOSS) BEFORE FEDERAL
INCOME TAXES (121,781) (102,602) 37,050
PROVISION FOR INCOME TAXES:
Tax At Statutory Rates - - -
Tax Benefit - - -
------------ ------------ ------------
NET INCOME (LOSS) (121,781) (102,602) 37,050
OTHER COMPREHENSIVE INCOME
Net of Income Tax:
Unrealized Holding Gain (loss) (22,297) (196,873) (24,030)
------------ ------------ ------------
COMPREHENSIVE INCOME (LOSS) $ (144,078) $ (299,475) $ 13,020
============ ============ ============
EARNINGS (LOSS) PER SHARE:
Basic $ (0.01) $ (0.01) $ -
============ ============ ============
Diluted $ (0.01) $ (0.01) $ -
============ ============ ============
The accompanying notes are an integral part of these financial statements.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
Statement of Cash Flows
For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999
------------ ------------ ------------
(Restated - (Restated -
See NOTE 3) See NOTE
CASH FLOWS PROVIDED (USED) BY
OPERATING ACTIVITIES:
Net Income (Loss) $ (121,781) $ (102,602) $ 37,050
Non-Cash Expenses, Revenues,
Losses And Gains Included
in Income:
Depreciation and Amortization 114 1,830 4,145
Gain on sale of securities
and assets - (51,625) (119,163)
Loss on sale of securities
and assets 21,589 - -
Net (Decrease) in payables (6,140) (11,706) (2,993)
------------ ------------ ------------
Net Cash Flows Provided (Used)
By Operating Activities (106,218) (164,103) (80,961)
------------ ------------ ------------
CASH FLOWS PROVIDED (USED) BY
INVESTING ACTIVITIES:
Purchase Of Investments (18,622) (14,019) (204,886)
Purchase Of Property
and Equipment - - (594)
Proceeds from Disposition
of Investments 122,516 142,481 244,950
Proceeds from Disposition
of Assets - 7,000 -
------------ ------------ ------------
Net Cash Flows Provided (Used)
By Investing Activities 103,894 135,462 39,470
------------ ------------ ------------
CASH FLOWS (USED) BY FINANCING
ACTIVITIES
Net cash flows (used) by
financing activities - - -
------------ ------------ ------------
NET INCREASE (DECREASE) IN CASH (2,324) (28,641) (41,489)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 7,599 36,240 77,729
------------ ------------ ------------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 5,275 $ 7,599 $ 36,240
============ ============ ============
(Continued)
The accompanying notes are an integral part of these financial statements.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
Statement of Cash Flows
For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999
------------ ------------ ------------
(Restated - (Restated -
See NOTE 3) See NOTE
SUPPLEMENTAL SCHEDULE OF
NONCASHINVESTING ACTIVITIES
Exchange of automobile for
Accrued directors fee payable $ - $ 7,000 $ 10,000
============ ============ ============
Marketable security written
off as worthless $ - $ - $ 7,296
============ ============ ============
Disclosure of Accounting Policy:
For purposes of the Statement of Cash Flows, the Company considers all
highly liquid debt instruments purchased with an initial maturity
of three month sor less to be cash equivalents.
(Concluded)
The accompanying notes are an integral part of these financial statements.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
Statement Of Changes In Stockholders' Equity
For the Years Ended December 31, 2001, 2000, and 1999
Accumulated
Common Stock Additional Other Retained
--------------------- Paid-In Comprehensive Treasury Earnings/
Shares Amount Capital Income Stock (Deficit) Total
---------- --------- ---------- ------------- ---------- ---------- -----------
Balances at
Jan. 1, 1999
(Restated -
See NOTE 3) 9,727,852 $486,392 $ 254,222 $ 173,638 $(24,200) $(379,320) $ 510,732
Unrealized
lossin
Marketable
securities - - - (24,030) - - (24,030)
Net loss - 1999
(Restated -
See NOTE 3) - - - - - 37,050 37,050
----------
Comprehensive
Income 13,020
---------- --------- ---------- ------------- ---------- ---------- -----------
Balances at
Dec. 31, 1999
(Restated -
See NOTE 3) 9,727,852 486,392 254,222 149,608 (24,200) (342,270) 523,752
---------- --------- ---------- ------------- ---------- ---------- -----------
Unrealized
loss in
Marketable
securities - - - (196,873) - - (196,873)
Net loss - 2000
(Restated -
See NOTE 3) - - - - - (102,602) (102,602)
----------
Comprehensive
(Loss) (299,475)
---------- --------- ---------- ------------- ---------- ---------- -----------
Balances at
Dec. 31, 2000
(Restated -
See NOTE 3) 9,727,852 486,392 254,222 (47,265) (24,200) (444,872) 224,277
---------- --------- ---------- ------------- ---------- ---------- -----------
Unrealized
loss in
Marketable
securities - - - (22,297) - - (22,297)
Net loss -
2001 - - - - - (121,782) (121,782)
----------
Comprehensive
(Loss) - - - - - - (144,079)
---------- --------- ---------- ------------- ---------- ---------- -----------
Balances at
Dec. 31,
2001 9,727,852 $ 486,392 $ 254,222 $ (69,562) $(24,200) $(566,654) $ 80,198
========== ========= ========== ============= ========== ========== ===========
The accompanying notes are an integral part of these financial statements.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
Notes To Financial Statements
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Business Operations
Thunder Mountain Gold, Inc., takes its name from the Thunder Mountain
Mining District in Valley County, Idaho, where its principal lode mining claims
are located.
Accounting Policies
Marketable securities are stated at market value. The market value is
based on quoted market prices or other fair value estimates provided by third
party portfolio managers.
Exploration Costs
Exploration costs are charged to operations when incurred.
Property and Equipment
Property and equipment are carried at cost. Depreciation is computed using
accelerated depreciation methods with useful lives of three to seven years.
Major additions and improvements are capitalized. Costs of maintenance and
repairs, which do not improve or extend the life of the associated assets are
expensed currently. When there is a disposition of property and equipment, the
cost and related accumulated depreciation are removed from the accounts and any
gain or loss is reflected in net income.
Accounting Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent 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 those estimates.
Comprehensive Income
In 1998, the Company adopted Statement of Financial Accounting Standards
(FAS) 130, "Reporting Comprehensive Income," issued by the Financial Accounting
Standards Board (FASB). The Company reports accumulated other comprehensive
income as a separate component of shareowners' equity. There were no adjustments
required for the deferred tax effects of the unrealized gain or loss on
securities.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
Notes To Financial Statements
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (continued)
Earnings Per Share
The Company computes basic earnings per common share by dividing the net
income by the weighted average number of common shares outstanding during the
period. Diluted earnings per share are calculated by including all dilutive
potential common shares such as stock options. Dilutive potential common shares
were 9,727,852 in 2001, 2000, and 1999. No adjustment to reported net income is
required when computing diluted earnings per share.
NOTE 2 - INVESTMENTS
Investments consist of the following:
Carrying Market
Value Cost Value
------------ ------------ ------------
December 31, 2001:
Current Investments $ 84,142 $ 152,794 $ 84,142
Other Investments 170 1,080 170
------------ ------------ ------------
Total $ 84,312 $ 153,874 $ 84,312
============ ============ ============
December 31, 2000:
Current Investments $ 231,923 $ 278,277 $ 231,923
Other Investments 170 1,080 170
------------ ------------ ------------
Total $ 232,093 $ 279,357 $ 232,093
============ ============ ============
December 31, 1999:
Current Investments $ 510,158 $ 359,639 $ 510,158
Other Investments 170 1,080 170
------------ ------------ ------------
Total $ 510,328 $ 360,719 $ 510,328
============ ============ ============
Other investments consist of small stock holdings in several local mining
companies.
NOTE 3 - MINING CLAIMS AND RESTATED FINANCIAL STATEMENTS
Substantially all of the Company's patented and unpatented claims in the
Thunder Mountain Mining district were obtained from major stockholders for cash
or newly issued stock. The purchase price and capitalized costs of the mining
claims have been written off and the financial statements for 2000, 1999, and
1998 have been restated to reflect this adjustment. The net accumulated
capitalized costs charged to the income statement as an impairment loss for 1998
was $233,705 and 2000 was $5,000. No impairment loss was charged to the income
statement for 1999. For additional information regarding the mining claims see
Note 5.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
Notes To Financial Statements
NOTE 4 - INCOME TAXES
The Company has losses for income tax purposes and accordingly has no
income tax provision.
At December 31, 2001, the Company has $719,083 in net operating loss carry
forward which may be used to offset taxable income generated by operations,
which will begin expiring in 2004. The Company also has a general business tax
credit carryover in the amount of $1,283, which may be used to offset future
federal income tax liabilities. This credit will expire in 2004. The Company
also has a foreign tax credit in the amount of $343, which may be used to offset
future federal income tax liabilities.
The net operating loss and other credits carry forward would normally
result in a recorded income tax benefit. As a result of the uncertainty to
continue as a going concern as described in Note 5, the income tax benefit is
fully reserved and is not reflected herein.
NOTE 5 - UNCERTAINTY - GOING CONCERN
The Company's continued existence is dependent upon its ability to resolve is
liquidity problems, principally by obtaining equity or debt funding, sale of the
mining claims or production from the mining claims. While pursing additional
funding or sale of its mining claims, the Company must continue to operate on
limited cash flow generated from the sale of investments. The Company has no
revenue from operations and has experienced recurring losses. Management
believes that geological, geophysical, and engineering data have identified
mineralized material in place on the mining claims in commercial quantities to
be of value. The Company is negotiating with the United States Forest Service
through the Land and Water Conservation Funds for sale of its' position
regarding the mining claims.
NOTE 6 - LITIGATION
The Company, along with other similarly situated parties, is a protestant
against the Federal Government's claims for certain reserved water rights for
Wild and Scenic Rivers Act purposes. The matter is in the Idaho State District
Court assigned to handle the Snake River Basin water rights adjudication. A
settlement has been tentatively reached and legal counsel anticipates the
settlement will be favorable to Thunder Mountain Gold, Inc.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
SUPPLEMENTAL SCHEDULES
REPORT OF INDEPENDENT AUDITORS ON SUPPLEMENTAL SCHEDULES
--------------------------------------------------------
The Board of Directors
Thunder Mountain Gold, Inc.
Spokane, Washington
Our report on the financial statements of Thunder Mountain Gold, Inc., (An
Exploration Stage Company) is included in the Form 10-KSB and covers the balance
sheets as of December 31, 2001 and 2000 and the related statements of
operations, cash flows and changes in stockholders' equity for each of the three
years ended December 31, 2001, 2000, and 1999. In connection with our audit of
such financial statements, we have also audited the related supplemental
schedules, as follows:
Schedule I - Marketable Securities - Other Investments
Schedule V - Property, Plant, and Equipment
Schedule VI - Amortization of Property, Plant, and Equipment
In our opinion, the supplemental schedules referred to above, when considered in
relation to the basic financial statements taken as a whole, present fairly the
information required to be included therein.
/s/ MOE O'SHAUGHNESSY & ASSOCIATES, P.S.
April 24, 2002
Spokane, Washington
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
SCHEDULE I - MARKETABLE SECURITIES - OTHER INVESTMENTS
For the Years Ended December 31, 2001 and 2000
December 31, 2001
Column A Column B Column C Column D Column E
Amount at
Market Which Issue
Number of Cost of Value is Carried on
Issuer Shares Shares Shares Balance Sheet
----------------- ------------- ------------ ------------ ------------ ------------
Munder Future
Technology Mutual Fund 799 $ 18,622 $ 17,757 $ 17,757
Fund Class B
Pioneer Growth
Shares Mutual Fund 2,169 42,151 28,356 28,356
Class B
Mass Investors
Growth
Stock Fund Mutual Fund 2,496 46,917 30,051 30,051
Class B
Midas Gold Common Shares 8,396 45,104 7,978 7,978
----------------- ------------- ------------ ------------ ------------ ------------
Totals 13,860 $ 152,794 $ 84,142 $ 84,142
============ ============ ============ ============
Other stock
ownership in
inactive
companies Common Shares 164,500 $ 1,080 $ 170 $ 170
----------------- ------------- ------------ ------------ ------------ ------------
Totals 164,500 $ 1,080 $ 170 $ 170
============ ============ ============ ============
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
SCHEDULE I - MARKETABLE SECURITIES - OTHER INVESTMENTS (continued)
For the Years Ended December 31, 2001 and 2000
December 31, 2000
Column A Column B Column C Column D Column E
Amount at
Market Which Issue
Number of Cost of Value is Carried on
Issuer Shares Shares Shares Balance Sheet
----------------- ------------- ------------ ------------ ------------ ------------
ML Global Growth
Class B Mutual Fund 2,794 $ 44,266 $ 35,405 $ 35,405
Munder Future
Technology Mutual Fund 3,361 40,005 29,311 29,311
Fund Class B
Pioneer Growth
Shares Mutual Fund 2,169 42,151 35,387 35,387
Class B
AIM Value Fund Mutual Fund 2,968 43,502 35,439 35,439
Class B
Mass Investors
Growth
Stock Fund Mutual Fund 2,496 46,917 40,187 40,187
Class B
Barrick Gold
Corporaiton Common Shares 3,000 16,332 49,140 49,140
Midas Gold Common Shares 8,396 45,104 7,054 7,054
----------------- ------------- ------------ ------------ ------------ ------------
Total 25,184 $ 278,277 $ 231,923 $ 231,923
============ ============ ============ ============
Other stock
ownership
in inactive
companies Common Shares 164,500 $ 1,080 $ 170 $ 170
----------------- ------------- ------------ ------------ ------------ ------------
Totals 164,500 $ 1,080 $ 170 $ 170
============ ============ ============ ============
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT
For the Years Ended December 31, 2001, 2000, and 1999
Column A Column B Column C Column D Column E Column F
------------------ ------------ ------------ ------------ ------------ ------------
Balance at Other Balance at
Beginning Additions Changes End Of
Description Of Period At Cost Retirements Add (Deduct) Period
------------------ ------------ ------------ ------------ ------------ ------------
Year ended
December 31, 2001:
Office equipment 7,141 - - - 7,141
------------------ ------------ ------------ ------------ ------------ ------------
Totals $ 7,141 $ - $ - $ - $ 7,141
============ ============ ============ ============ ============
Year ended
December 31, 2000:
Office equipment 7,141 - - - 7,141
Automotive 21,893 (21,893)(3) - -
------------------ ------------ ------------ ------------ ------------ ------------
Totals $ 29,034 $ - $ (21,893) $ - $ 7,141
============ ============ ============ ============ ============
Year ended
December 31, 1999:
Office equipment 6,547 594(1) - - 7,141
Automotive 47,436 - (25,543)(2) 21,893
------------------ ------------ ------------ ------------ ------------ ------------
Totals $ 53,983 $ 594 $ (25,543) $ - $ 29,034
============ ============ ============ ============ ============
(1) Purchase of copier.
(2) Exchange of 1996 Subaru to Jim Collord Sr. in lieu of director fees.
(3) Exchange of 1992 Suburban to E. James Collord in lieu of director fees.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
SCHEDULE V1 - ACCUMULATED DEPRECIATION, DEPLETION AND
AMORTIZATION OF PROPERTY AND EQUIPMENT
For the Years Ended December 31, 2001, 2000, and 1999
Column A Column B Column C Column D Column E Column F
------------------ ------------ ------------ ------------ ------------ ------------
Balance at Other Balance at
Beginning Additions Changes End Of
Description Of Period At Cost Retirements Add (Deduct) Period
------------------ ------------ ------------ ------------ ------------ ------------
Year ended
December 31, 2001:
Office equipment 6,856 $ 114 - - $ 6,970
------------------ ------------ ------------ ------------ ------------ ------------
Totals $ 6,856 $ 114 $ - $ - $ 6,970
============ ============ ============ ============ ============
Year ended
December 31, 2000:
Office equipment 6,601 $ 255 - - 6,856
Automotive 17,842 1,575 (19,417) - -
------------------ ------------ ------------ ------------ ------------ ------------
Totals $ 24,443 $ 1,830 $ (19,417) $ - $ 6,856
============ ============ ============ ============ ============
Year ended
December 31, 1999:
Office equipment 5,806 $ 795 - - 6,601
Automotive 26,671 3,350 (12,179) - 17,842
------------------ ------------ ------------ ------------ ------------ ------------
Totals $ 32,477 $ 4,145 $ (12,179) $ - $ 24,443
============ ============ ============ ============ ============
(1) Depreciation is calculated using the accelerated depreciation
methods with useful lives of three to seven years.
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
SELECTED FINANCIAL DATA
The following is a summary of selected financial data which indicates trends in
registrants financial condition and results of operations.
Selected Balance Sheet Data 2001 Year Ended December 31,
-----------------------
2001 2000 1999 1998 1997
---------- ---------- ---------- ---------- ----------
Restated
Current Assets $ 89,717 $ 239,822 $ 546,491 $ 530,307 $ 659,329
Property and Equipment 171 285 4,591 21,506 260,018
Non-Current Investments 170 170 170 170 170
Total Assets 90,058 240,277 551,252 551,983 919,517
Current Liabilities 9,860 16,000 27,500 41,250 22,500
Stockholders' Equity 80,198 224,277 523,752 510,733 897,017
Selected Operational Data
Royalty Revenue - - - - 62,500
Other Revenue and
Gains (Losses) (21,150) 67,823 126,817 (216,845) 24,589
Net Income (Loss) (121,781) (102,602) 37,050 (359,389) 17,250
Net Income (Loss)
per share $ (0.01) $ (0.01) $ NIL $ (0.04) $ NIL
No dividends have been paid by the Company.
ITEM 8: DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
During the year ended December 31, 2001 there were no disagreements between
the Company and its independent certified public accountants concerning
accounting and financial disclosure.
PART III
ITEM 9: DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
(a) Identification of Directors:
E. James Collord, Age 55 - President, General Manager and Director - Mr. Collord
has been an officer and Director of the Registrant since 1978.
Robin S. McRae, Age 61 - Secretary/Treasurer and Director - Dr. McRae has been
an officer and Director of the Registrant since 1978.
Pete Parsley, Age 39 - Director and Thunder Mountain Project Manager. Mr.
Parsley has been a director since 1999.
Ronald Yanke, Age 63, - Director
(b) IDENTIFICATION OF EXECUTIVE OFFICERS
This information is contained in paragraph (a) above.
(c) FAMILY RELATIONSHIPS
Dr. Robin S. McRae is the cousin of E. James Collord, the President of the
Registrant.
(d) BUSINESS EXPERIENCE
E. James Collord has a Masters of Science degree in exploration geology from the
Mackay School of Mines, University of Nevada. He has been a mining professional
since 1973, employed as a mill construction superintendent, exploration
geologist, mine construction and reclamation manager, and in environmental and
lands management. He is currently employed as Environmental and Land
Superintendent at a large gold mine near Elko, Nevada.
Robin S. McRae is a graduate of the Pacific College of Optometry and is a
practicing optometrist. He is the grandson of Daniel C. McRae, and original
locator of many of the gold prospects in the Thunder Mountain Gold Mining
District, and is the son of Robert J. McRae, author of numerous geological
reports concerning the Thunder Mountain Mining District. His knowledge of
mining and related exploratory activities is derived from three generations of
ownership of the Sunnyside Group of Claims which the Registrant now owns.
Pete Parsley has a Masters in Science degree in geology from the University of
Idaho. He has been a mining professional since 1985 with experience in gold
exploration, mine development, construction, reclamation, and environmental
compliance and permitting. He has been associated with the Thunder Mountain
project since 1985.
Ron Yanke is a successful Boise-based businessman, including owner of the
57-year old Yanke Machine Shop. He also is an owner of Yanke Energy
(cogeneration plants), has timber interests and is part owner of the Dewey
Mining Company.
(e) DIRECTORSHIPS
None of the directors of the Registrant is a director of any other
corporation subject to the requirements of Section 12 or Section 15(d) of the
Exchange Act of 1934.
(f) INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS
None of the Officers and Directors of the Registrant has been involved in any
bankruptcy, insolvency, or receivership proceedings as an individual or member
of any partnership or corporation; none has ever been convicted in a criminal
proceeding or is the subject of a criminal proceeding presently pending. None
has been involved in proceedings concerning his ability to act as an investment
advisor, underwriter, broker, or dealer in securities, or to act in a
responsible capacity for investment company, bank savings and loan association,
or insurance company or limiting his activity in connection with the purchase
and sale of any security or engaging in any type business practice. None has
been enjoined from engaging in any activity in connection with any violation of
federal or state securities laws nor been involved in a civil action regarding
the violation of such laws.
(g) PROMOTERS AND CONTROL PERSONS
Not applicable
ITEM 10: EXECUTIVE COMPENSATION
(a) CASH COMPENSATION
None of the executive officers or Directors received $50,000 or more during
2001.
All officers and Directors at various times during 2001, received the sum
of $21,000 distributed as follows:
E. James Collord Vice President/Director $7,000
Robin S. McRae Secretary/Treasury $7,000
Ron Yanke Director No compensation
Pete Parsley Director/Project Manager $7,000
(b) BONUSES AND DEFERRED COMPENSATION:
Budgeted Arrangements (in 2002):
E. James Collord: None budgeted. If any are paid, they will be set by Board
resolution, and would depend upon financial status of the Company at such time.
Dr. Robin S. McRae: Same
Pete Parsley: Same
Ron Yanke: Same
(c) OTHER COMPENSATION
There are no remuneration payments to any officer or Director other than
those set forth in (a) above.
(d) COMPENSATION OF DIRECTORS
Other arrangements: There are no arrangements for remuneration for services
as a Director in addition to the standard arrangements.
(e) TERMINATION OF EMPLOYMENT AND CHANGE OF CONTROL ARRANGEMENT
There are no compensatory plans or arrangements for compensation of any
Director in the event of his termination of employment and resignation,
retirement, etc.
ITEM 11: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
(a) SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
The following are known to the Registrant to be the beneficial owners of more
than five percent (5%) of the Registrant's voting securities:
Common Stock Ronald C. Yankee 1,883,525 shares of 19.36%
P.O. Box 5405, record and beneficially
Boise, ID 83715
Common Stock E. James Collord 519,250 shares of 5.34%
record and beneficially
(b) THE SECURITY HOLDINGS OF MANAGEMENT ARE AS FOLLOWS
Common Stock E. James Collord 519,250 shares of 5.34%
record and beneficially
Common Stock Dr. Robin S. McRae 91,955 shares of .95%
record and beneficially
Total of all Officers
and Directors: 2,494,730 shares of 25.65%
record and beneficially
ITEM 12: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
(a) TRANSACTIONS WITH MANAGEMENT AND OTHERS
Other than payments of compensation to the Directors of the company, there have
been no other transactions with:
Any Director or executive officer
Any Nominee for election as a director
Any immediate family member of any of the forgoing, other than
E. James Collord received 280,000 shares of common stock in 2001
as a gift from his mother.
Any security holder known to the issuer to own beneficially or
of record more than
5% of the Registrant's voting securities other than
transactions disclosed in ITEM 12.
(b) CERTAIN BUSINESS RELATIONSHIPS
There have been no unusual business relationships during the last fiscal year
of the Registrant between the Registrant or affiliates as described in Item 404
(b) (1-6) of the Regulation S-K.
(c) INDEBTEDNESS OF MANAGEMENT
No Director or executive officer or nominee for Director, or any member of the
immediate family of such has been indebted to the Company during the past year.
(d) TRANSACTIONS WITH PROMOTERS
Not Applicable
PART IV
ITEM 13: EXHIBIT, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) FINANCIAL STATEMENTS
Included in Part II of this report.
(b) REPORTS ON FORM 8-K
No reports on Form 8-K were filed during the last calendar year 2001.
SIGNATURES
Pursuant to the requirements of Section 143 of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
the undersigned, thereunto duly authorized.
THUNDER MOUNTAIN GOLD, INC.
/s/ E. James Collord
By __________________________________ Date: 04-29-2002
E. James Collord
President and Director
Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1934 this report signed
below by the following person on behalf of the Registrant and in the
capacities on the date indicated.
/s/ Robin S. McRae
____________________________________ Date: 04-29-2002
Robin S. McRae
Secretary/Treasurer
Director and Chief Financial Accounting Officer