Clifton Mining : 2nd Quarter Report

Page

Consolidated Financial Statements

Consolidated Balance Sheets

2

Consolidated Statements of Operations

3

Consolidated Statements of Cash Flows

4

Consolidated Statements of Changes in Stockholders' Equity

5

Notes to the Consolidated Financial Statements

6

ASSETS

As of

June 30,

December 31,

2022

2021

CURRENT ASSETS

Cash

$

2,338,893

$

2,458,595

Equity securities (Note 1, 10)

1

1

Receivables

-

133

Prepaid expenses

31,910

18,343

Total Current Assets

2,370,804

2,477,072

PROPERTY AND EQUIPMENT - IDLE PROPERTY

Mineral properties (Note 3)

1,086,665

1,092,815

Buildings, net (Note 6)

131,977

136,676

Milling equipment, net (Note 6)

323,272

342,456

Total Property and Equipment, Net

1,541,914

1,571,947

OTHER ASSETS

Equity investment in affiliate (Notes 1, 2)

1,513,642

1,449,490

Equity securities in affiliate (Notes 1, 3, 10)

5,810,824

5,810,824

Restricted cash-reclamation bonds (Note 4)

258,619

258,574

Patent filings (Note 6)

8,920

9,813

Deposit

350

350

Total Other Assets

7,592,355

7,529,051

Total Assets

$

11,505,073

$

11,578,070

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable and accrued liabilities

$

4,590

$

7,547

Total Current Liabilities

4,590

7,547

LONG-TERM LIABILITIES

Reclamation and remediation liabilities (Note 4)

57,591

55,901

Total Liabilities

62,181

63,448

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)

155

155

Common stock, $0.001 par value, 70,000,000 shares authorized; 58,770,791

and 58,770,791 shares issued, respectively, 54,867,216 and 55,212,261

shares outstanding, respectively (Note 7)

58,771

58,771

Additional paid-in capital

17,019,319

16,960,931

Retained deficit

(4,923,827)

(4,859,640)

Less: Treasury stock, at cost, 3,903,575 and 3,558,530 shares as of June

30, 2022 and December 31, 2021, respectively (Note 7)

(742,163)

(676,561)

Total Clifton Mining Stockholders' Equity

11,412,255

11,483,656

Noncontrolling interest

30,637

30,966

Total Stockholders' Equity

11,442,892

11,514,622

Total Liabilities and Stockholders' Equity

$

11,505,073

$

11,578,070

See accompanying notes to consolidated financial statements.

2

Six Months

Year Ended

Ended June 30,

December 31,

2022

2021

REVENUE

$

-

$

-

EXPENSES

Exploration costs

6,750

22,300

General and administrative

12,921

53,394

Professional fees

26,801

41,345

Accretion expense

1,690

3,232

Depreciation and amortization

24,776

49,957

Salaries and employee benefits

123,277

353,832

Stock based compensation

58,388

101,955

Property and claim taxes, filing fees and insurance

26,761

124,568

Total Expenses

281,364

750,583

Loss From Operations

(281,364)

(750,583)

OTHER INCOME (EXPENSE)

Interest income

197

395

Gain from equity investment

232,720

367,887

Gain (loss) on equity securities - net

-

(95)

(Loss) gain from affiliate stock transactions

(16,069)

64,763

Other Income (Expense)

216,848

432,950

Income (Loss) Before Income Taxes

(64,516)

(317,633)

Income Taxes

-

-

Net Income (Loss)

(64,516)

(317,633)

Less: Net Loss Attributable to Noncontrolling Interest

329

297

Net Income (Loss) Attributable to Clifton Mining

$

(64,187)

$

(317,336)

Net income (loss) per share - basic

$

(0.00)

$

(0.01)

Net income (loss) per share - fully diluted

$

(0.00)

$

(0.01)

Weighted average number of common shares outstanding

during the year:

Basic

54,962,425

55,482,679

Diluted

54,962,425

55,482,679

See accompanying notes to consolidated financial statements.

3

Six Months

Year Ended

Ended June 30,

December 31,

2022

2021

Cash Flows From Operating Activities:

Net income (loss)

$

(64,516)

$

(317,633)

Adjustments to reconcile net loss to net cash used by operating activities:

Depreciation and amortization expense

24,776

49,957

Depletion expense

6,150

12,300

Accretion expense

1,690

3,232

Gain from equity investment

(232,720)

(367,887)

Loss (gain) from equity securities - net

-

95

Loss (gain) from affiliate stock transactions

16,068

(64,763)

Valuation for stock-based compensation expense related to options

58,388

101,955

Changes in operating assets and liabilities:

Decrease (increase) in receivables, prepaid expenses, and other assets

(13,479)

17,633

Increase (decrease) in accounts payable and accrued liabilities

(2,957)

5,660

Net Cash Used in Operating Activities

(206,600)

(559,451)

Cash Flows From Investing Activities:

Purchase of treasury stock

(65,602)

(237,925)

Distributions from equity investment

152,500

289,750

Net Cash Provided by Investing Activities

86,898

51,825

Cash Flows From Financing Activities:

Net Cash Provided by Financing Activities

-

-

Net (decrease) increase in cash

(119,702)

(507,626)

Cash, beginning of year

2,458,595

2,966,221

Cash, end of year

$

2,338,893

$

2,458,595

SUPPLEMENTAL CASH FLOW DISCLOSURES:

Interest paid

$

-

$

-

Taxes paid

$

-

$

-

NON CASH INVESTING & FINANCING ACTIVITIES:

Noncontrolling interest income allocation

$

329

$

297

See accompanying notes to consolidated financial statements.

4