CLIFTON MINING COMPANY CLIFTON MINING COMPANY
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2021 AND 2020
Clifton Mining Company | |
Index to the Consolidated Financial Statements | |
December 31, 2021 and 2020 | |
Page | |
Report of Independent Registered Public Accounting Firm | 2 |
Consolidated Financial Statements | |
Consolidated Balance Sheets | 4 |
Consolidated Statements of Operations | 5 |
Consolidated Statements of Cash Flows | 6 |
Consolidated Statements of Changes in Stockholders' Equity | 7 |
Notes to the Consolidated Financial Statements | 8 |
MAC
MAC ACCOUNTING GROUP, LLP CERTIFIED PUBLIC ACCOUNTANTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
BOARD OF DIRECTORS AND SHAREHOLDERS
CLIFTON MINING COMPANY
OPINION ON THE FINANCIAL STATEMENTS
WE HAVE AUDITED THE ACCOMPANYING CONSOLIDATED BALANCE SHEETS OF CLIFTON MINING COMPANY AS OF DECEMBER 31, 2021 AND 2020, AND THE RELATED CONSOLIDATED STATEMENTS OF OPERATIONS, STOCKHOLDERS' EQUITY AND CASH FLOWS FOR THE YEARS THEN ENDED, AND THE RELATED NOTES (COLLECTIVELY REFERRED TO AS THE "FINANCIAL STATEMENTS"). IN OUR OPINION, THE FINANCIAL STATEMENTS PRESENT FAIRLY, IN ALL MATERIAL RESPECTS, THE FINANCIAL POSITION OF CLIFTON MINING COMPANY AS OF DECEMBER 31, 2021 AND 2020, AND THE RESULTS OF ITS OPERATIONS AND ITS CASH FLOWS FOR EACH OF THE YEARS THEN ENDED, IN CONFORMITY WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA.
BASIS FOR OPINION
THESE FINANCIAL STATEMENTS ARE THE RESPONSIBILITY OF THE ENTITY'S MANAGEMENT. OUR RESPONSIBILITY IS TO EXPRESS AN OPINION ON THESE FINANCIAL STATEMENTS BASED ON OUR AUDITS. WE ARE A PUBLIC ACCOUNTING FIRM REGISTERED WITH THE PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD (UNITED STATES) ("PCAOB") AND ARE REQUIRED TO BE INDEPENDENT WITH RESPECT TO CLIFTON MINING COMPANY IN ACCORDANCE WITH THE U.S. FEDERAL SECURITIES LAWS AND THE APPLICABLE RULES AND REGULATIONS OF THE SECURITIES AND EXCHANGE COMMISSION AND THE PCAOB.
WE CONDUCTED OUR AUDITS IN ACCORDANCE WITH THE STANDARDS OF THE PCAOB AND 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 MISSTATEMENT, WHETHER DUE TO ERROR OR FRAUD. CLIFTON MINING COMPANY IS NOT REQUIRED TO HAVE, NOR WERE WE ENGAGED TO PERFORM, AN AUDIT OF ITS INTERNAL CONTROL OVER FINANCIAL REPORTING. AS PART OF OUR AUDITS WE ARE REQUIRED TO OBTAIN AN UNDERSTANDING OF INTERNAL CONTROL OVER FINANCIAL REPORTING BUT NOT FOR THE PURPOSE OF EXPRESSING AN OPINION ON THE EFFECTIVENESS OF THE ENTITY'S INTERNAL CONTROL OVER FINANCIAL REPORTING. ACCORDINGLY, WE EXPRESS NO SUCH OPINION.
OUR AUDITS INCLUDED PERFORMING PROCEDURES TO ASSESS THE RISKS OF MATERIAL MISSTATEMENT OF THE FINANCIAL STATEMENTS, WHETHER DUE TO ERROR OR FRAUD, AND PERFORMING PROCEDURES THAT RESPOND TO THOSE RISKS. SUCH PROCEDURES INCLUDED EXAMINING, ON A TEST BASIS, EVIDENCE REGARDING THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL STATEMENTS. OUR AUDITS ALSO INCLUDED EVALUATING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES MADE BY MANAGEMENT, AS WELL AS EVALUATING THE OVERALL PRESENTATION OF THE FINANCIAL STATEMENTS. WE BELIEVE THAT OUR AUDITS PROVIDE A REASONABLE BASIS FOR OUR OPINION.
WWW.MACACCOUNTINGGROUP.COM 1070 MECHAM LANE, MIDVALE, UTAH 84047 801.414.3664
CRITICAL AUDIT MATTERS
CRITICAL AUDIT MATTERS ARE MATTERS ARISING FROM THE CURRENT PERIOD AUDIT OF THE FINANCIAL STATEMENTS THAT WERE COMMUNICATED OR REQUIRED TO BE COMMUNICATED TO THE AUDIT COMMITTEE AND THAT: (1) RELATE TO ACCOUNTS OR DISCLOSURES THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS AND (2) INVOLVED OUR ESPECIALLY CHALLENGING, SUBJECTIVE, OR COMPLEX JUDGMENTS. THE COMMUNICATION OF CRITICAL AUDIT MATTERS DOES NOT ALTER IN ANY WAY OUR OPINION ON THE FINANCIAL STATEMENTS, TAKEN AS A WHOLE, AND WE ARE NOT, BY COMMUNICATING THE CRITICAL AUDIT MATTERS BELOW, PROVIDING SEPARATE OPINIONS ON THE CRITICAL AUDIT MATTERS OR ON THE ACCOUNTS OR DISCLOSURES TO WHICH THEY RELATE.
DESERT HAWK GOLD CORP. INVESTMENT IN EQUITY SECURITIES
AS DISCUSSED IN NOTE 1 OF THE CONSOLIDATED FINANCIAL STATEMENTS, AS OF DECEMBER 31, 2021 AND 2020, THE COMPANY OWNED 5,810,824 SHARES OF DESERT HAWK GOLD CORP. THIS INVESTMENT IS ACCOUNTED FOR AS AN INVESTMENT IN EQUITY SECURITIES. DUE TO THE EQUITY SECURITIES NOT HAVING A READILY DETERMINABLE FAIR VALUE, THE COMPANY ELECTED TO MEASURE THE SECURITIES AT COST MINUS IMPAIRMENT, IF ANY, PLUS OR MINUS CHANGES RESULTING FROM OBSERVABLE PRICE CHANGES IN ORDERLY TRANSACTIONS FOR IDENTICAL OR SIMILAR INVESTMENTS OF THE SAME ISSUER. AS OF DECEMBER 31, 2021 AND 2020, THE INVESTMENT WAS VALUED AT $1.00 PER SHARE OR $5,810,824 BASED ON A PRIVATE EQUITY OFFERING DESERT HAWK GOLD CORP. COMPLETED DURING THE THIRD QUARTER OF CALENDAR YEAR 2020 WHERE THEY SOLD 200,000 SHARES OF COMMON STOCK FOR $1.00 PER SHARE.
DURING THE YEARS ENDED DECEMBER 31, 2021 AND 2020, NO IMPAIRMENT EXPENSE WAS RECOGNIZED RELATED THIS THIS INVESTMENT.
AUDITING THE COMPANY'S INVESTMENT IN DESERT HAWK GOLD CORP. WAS CHALLENGING DUE TO THE AUDITOR JUDGEMENT REQUIRED. TO FORM OUR OVERALL OPINION IN LIGHT OF THESE DIFFICULTIES, WE HAD TO EVALUATE DESERT HAWK'S QUARTERLY AND ANNUAL REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND DETERMINE IF THERE WERE SIGNIFICANT CHANGES IN DESERT HAWK GOLD CORP.'S FAIR VALUE SINCE THE PRIVATE EQUITY OFFERING WAS COMPLETED DURING THE THIRD QUARTER OF CALENDAR YEAR 2020. WE CONCLUDED THE COMPANY'S ACCOUNTING FOR AND LACK OF IMPAIRMENT FOR THIS INVESTMENT WAS REASONABLE.
MAC ACCOUNTING GROUP, LLP
WE HAVE SERVED AS CLIFTON MINING COMPANY'S AUDITOR SINCE 2016.
MIDVALE, UTAH
APRIL 1, 2022
CLIFTON MINING COMPANY
Consolidated Balance Sheets
ASSETS | As of December 31, | |||
2021 | 2020 | |||
CURRENT ASSETS Cash Equity securities (Note 1, 10) Receivables Prepaid expenses | $ | 2,458,595 1 133 18,343 | $ | 2,966,221 96 18,095 14,253 |
Total Current Assets | 2,477,072 | 2,998,665 | ||
PROPERTY AND EQUIPMENT - IDLE PROPERTY Mineral properties (Note 3) Buildings, net (Note 6) Milling equipment, net (Note 6) | 1,092,815 136,676 342,456 | 1,105,115 146,149 381,141 | ||
Total Property and Equipment, Net | 1,571,947 | 1,632,405 | ||
OTHER ASSETS Equity investment in affiliate (Notes 1, 2) Equity securities in affiliate (Notes 1, 3, 10) Restricted cash-reclamation bonds (Note 4) Patent filings (Note 6) Deposit | 1,449,490 5,810,824 258,574 9,813 350 | 1,306,590 5,810,824 262,335 11,612 350 | ||
Total Other Assets | 7,529,051 | 7,391,711 | ||
Total Assets | $ | 11,578,070 | $ | 12,022,781 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT LIABILITIES Accounts payable and accrued liabilities | $ | 7,547 | $ | 1,887 |
Total Current Liabilities LONG-TERM LIABILITIES Reclamation and remediation liabilities (Note 4) | 7,547 55,901 | 1,887 52,669 | ||
Total Liabilities | 63,448 | 54,556 | ||
STOCKHOLDERS' EQUITY Preferred stock, $0.001 par value, 10,000,000 shares authorized; 154,584 and 154,584 shares issued and outstanding, respectively (Note 7) Common stock, $0.001 par value, 70,000,000 shares authorized; 58,770,791 and 58,770,791 shares issued, respectively, 55,212,261 and 56,166,484 shares outstanding, respectively (Note 7) Additional paid-in capital Retained deficit Less: Treasury stock, at cost, 3,558,530 and 2,604,307 shares as of December 31, 2021 and 2020, respectively (Note 7) | 155 58,771 16,960,931 (4,859,640) (676,561) | 155 58,771 16,858,976 (4,542,304) (438,636) | ||
Total Clifton Mining Stockholders' Equity Noncontrolling interest | 11,483,656 30,966 | 11,936,962 31,263 | ||
Total Stockholders' Equity | 11,514,622 | 11,968,225 | ||
Total Liabilities and Stockholders' Equity | $ | 11,578,070 | $ | 12,022,781 |
(4,542,304)
See accompanying notes to consolidated financial statements.
4
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Clifton Mining Co. published this content on 01 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 April 2022 22:19:18 UTC.
