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SECURITIES AND EXHANGE COMMISSION
Washington, DC 20549
Form 10-KSB/A
Amendment No. 2
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 Number: 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)
Telephone Number of Registrant: (509) 535-6092
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 March 21, 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]
<page> 1
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
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 April, 1978 the Montgomery Mines corporation was obtained by a group of the Thunder Mountain property holders and changed its name to Thunder Mountain Gold, Inc. with the primary goal to further explore and develop their holdings in the Thunder Mountain Mining District, Valley County, Idaho. 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 primary property at Thunder Mountain was placed into operation in the mid-1980s by Coeur 'd Alene Mines under a net profits arrangement. Substantial gold and silver production was done by Coeur ‘d Alene from the Sunnyside Deposit by open pit mining and heap leaching.Coeur 'd Alene ceased production in the early 1990s and relinquished the claims back to the Company. Subsequently the property 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 significant measured mineral resource 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 (EIS), additional baseline studies and other permitting requirements to place the Dewey deposit into production. The Company continued these activities to a limited extend.
During 2000, the Company and their joint venture partner, Dewey Mining Company, 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. Due to delays in the initiation of the appraisal process, including negotiations with the U.S. Forest Service, the original timeframe of the base agreement were not met. The agreement was extended and continued in full force by mutual written agreement between The Trust for Public Land and both the Company and Dewey Mining Company.
<page> 2
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
The Company also conducted limited exploration for valuable minerals outside of the Thunder Mountain Mining District in the western states during 2000, including the acquisition of an interest in a platinum group metals property in Nevada. The Company also evaluated and conducted due diligence for a business opportunity to facilitate the development of an Linux-based software company. The Company continues to evaluate both natural resource and technology ventures to enhance Stockholder equity.
The Company is an exploration stage company and there is no assurance that a commercially viable mineral deposit exists on any of its properties. Further exploration efforts will likely be required by the Company or lessor before a final evaluation as to the economic and legal feasibility of conducting further operations is determined.
In addition to the patented claims, the Company also owns unpatented mining claims. The validity of unpatented mining claims is dependent upon inherent uncertainties and conditions. These uncertainties related to such non-record facts as the sufficiency of the discovery of minerals, proper posting and marking of boundaries, whether the minerals discovered were properly locatable as a lode claims or a placer claim as appropriate, whether sufficient annual assessment work has been performed since location as required by law, and possible conflicts with other claims not determinable from descriptions of record. In the absence of a discovery of valuable minerals, a mining claim is open to location by others unless the owner is in actual possession of and diligently working the claim. No assurance can be given with respect to unpatented mining claims in the exploratory stage that the requisite discovery of a valuable mineral deposit can be made thereon.
PRECIOUS AND OTHER MINERAL PROPERTIES
1. THUNDER MOUNTAIN MINING DISTRICT, VALLEY COUNTY, IDAHO
The Company and their joint venture partner, Dewey Mining Company, holds 272 unpatented and 50 patented lode claims and fractional claims in the historic Thunder Mountain District of Valley County, Idaho. Company Exploration efforts are targeted at gold and silver, with further definition of the mineralized resource.
The Company’s claims are located in the Thunder Mountain Mining District, approximately 55 miles east of McCall, Idaho. The approximate location of the property is illustrated by the following maps.
<page> 3
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
![[tmg10ksba122001apr182003s002.jpg]](tmg10ksba122001apr182003s002.jpg)
<page> 4
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
![[tmg10ksba122001apr182003s004.jpg]](tmg10ksba122001apr182003s004.jpg)
<page> 5
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
The Registrant and Dewey Mining Company, an Idaho Corporation, entered into a joint venture agreement in February 1992 . The joint venture owns 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 Company’s 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.
Under the terms of the Joint Venture, both Dewey Mining Company and Thunder Mountain Gold joined all resources including patented and unpatented mining claims, mineralized material, water rights and any other right, title and interest on the properties. All costs connected with the effort of marketing the joint properties to environmental interests, mining companies, or other interested parties are shared on a 50-50 basis. All properties and expenditures as of the date of the joint venture agreement are considered equal. All net proceeds generated by, or from the joint properties will be shared on a 50-50 basis. The joint venture agreement does not create a partnership, and each Party will hold the other harmless from any pre-existing obligation and liabilities. Dewey Mining Company retained ownership of the existing 500 ton-per-day gravity mill, although this facility could be utilized for processing gold-silver mineralization mined from any deposit defined on the joint property.
Mineralization and Current Activity
Mineralization within the Thunder Mountain District is hosted in the volcanic rock sequence of the Thunder Mountain Caldera and lies within the northeast-trending Trans-Challis Mineral Belt of central Idaho. The Dewey Deposit is hosted in rhyolitic ash fall tuffs and tuffaceous sediment of the Dewey Sequence, part of the extensive Eocene Challis Volcanic Group. Three gold-silver mineralized zones are defined within the Dewey Deposit: 1) an upper tuffaceous sediment unit; 2) a middle ash fall tuff unit, and; 3) a lower mudflow agglomerate unit. Gold and silver mineralization is both structurally and stratiform controlled, with the better grades occurring along structural zones where hydrothermal fluids concentrated mineralization. Other areas of past production and future potential mineralization within the district are within similar geologic and host rock settings.
Exploration of the Dewey Deposit has been extensive, with work completed by several exploration and mining companies since the 1970s. A mineralized resource has been defined using after the completion of 256 drill holes on 100-foot centers with some areas of 50-foot fill in drilling that resulted in 12,275 assay intervals. Extensive geologic mapping and sampling, with some exploratory drilling, has been done on several other geologic targets within the district. The current mineralized resource defined at the Dewey Deposit is the result of approximately $5 million dollars of expenditures by USMX and
<page> 6
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
Dakota Mining, this not counting previous exploration drill data compiled by Placer Amex, Copper Lakes and other companies. As a result of this work, a mineralized material of 5,390,000 tons averaging 0.047 ounces per ton gold (using a gold price of $400 per ounce) has been outlined at the Dewey Deposit.
A mineralized material is generally defined as a mineralized body, which has been delineated by appropriately spaced drilling and/or underground sampling to support a sufficient tonnage and average grade of metals.
Current infrastructure that supports exploration activities and potential future development of the Thunder Mountain Property consists of improvements associated with past mining operations. This includes access road improvements, a potential tailings disposal area, and a Dewey Mining Company-owned small (approximate 500 ton-per-day) gravity milling facility that was operational in the late 1970s and early 1980s, along with support facilities including fuel storage tanks, shop, assay laboratory, electrical equipment, base camp housing, etc.
Costs incurred by the Company include property maintenance activities (claim fees, taxes, etc.), site security, monitoring and maintenance of reclamation and sediment control features. All exploration, development and mining activities in the past have been borne by previous operators that had the Thunder Mountain Property under lease arrangement.
All past and future operations would require generation of power on site by the use of diesel-powered generators.
The Thunder Mountain Property is without known and defined reserves pursuant to SEC Industry Guide 7. Significant mineralized material has been “drill defined” as discussed above. The Property is still in an exploration stage, although sufficient information has been developed to potentially initiate further development activities.
Maintenance of the mining claims consists of payment of the annual claim maintenance fees on unpatented mining claims. Property taxes are paid on all patented and unpatented mining claims.
2. IRONSIDE PLATINUM GROUP METALS (PGM) PROSPECT, GOODSPRINGS MINING
DISTRICT, CLARK COUNTY, NEVADA
The Company has an 50% interest in a lease with an option to purchase on the 4 Oro Amigo patented claims and the 40 BOA unpatented lode claim group in the Goodsprings Mining District in Clark County, Nevada. The claims are located approximately 25 miles southwest of Las Vegas, Nevada. Platinum, palladium, silver and gold were produced in this area of the Goodsprings District during the period 1914 –1920. Reported production was approximately 400 ounces of platinum, 900 ounces of palladium, 1,800 ounces of gold, 7,000 ounces of silver and 570,000 pounds of copper. The land position was secured because of its exploration potential. The Ironside PGM Prospect claims cover a northeast-bearing trend of PGM ,prescious and base metal occurrences that extends for about three miles along a structural trend. During the war effort, minor production of platinum group metals and gold was done on the Registrant's claims. Geologic mapping and sampling of the property was completed during
<page> 7
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
![[tmg10ksba122001apr182003s006.jpg]](tmg10ksba122001apr182003s006.jpg)
2000, and potential exploration targets have been defined. Several companies that produce platinum group metals have expressed an interest in the claims. Efforts are ongoing to interest a larger platinum group metals exploration company in the target potential of the holdings.
<page> 8
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
Mineralization and Current Activity
Mineralization and anomalous geochemistry occurs along the high-angle Ironside Thrust Fault zone associated with the Ironside and nearby regional Keystone Thrusts. Moderately large intrusive bodies are located nearby. Mineralization is thought to be distal to the intrusive contact along the structural zones. The potential targets consist of defining additional sulfide replacements within the carbonates along the structural zones, particularly near the contact with the intrusives in the area. Additionally, the style of mineralization indicates that there may be a deep intrusive-hosted PGM target.
Mineralization occurs in secondary silica (jasperoid) associated with sulfide gossans in a carbonate sequence of Devonian and Lower Mississippian age. Work on the property during the year consisted of mapping and sampling, and showing it to PGM-based exploration companies. Other than access roads, there is no infrastructure on the holdings. Maintenance of the mining claims consists of payment of the annual claim maintenance fees on unpatented mining claims and lease payments to the owner of the four patented lode claims. Property taxes are paid on all patented and unpatented mining claims.
(A) FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS.
The Registrant has no other industry segments.
(B) NARRATIVE DESCRIPTION OF BUSINESS.
Refer to ITEM: 1 Description of Business (supra) Subparagraph (i) through (xii) are not applicable to the Registrant.
(C) 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 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 or investigations pending by the Securities and Exchange Commission or any other governmental agency. 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 States Federal Court for the District Court of Idaho (SRBA Case No. 39576, District Court of the Fifth Judicial District of the State of Idaho, in and for the County of Twin Falls) assigned to handle the Snake River Basin water rights adjudication.
<page> 9
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
The Company 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 2000.
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, 2000 and 1999 were as follows:
2001 HIGH LOW
----------- -----------
First Quarter $ 0.10 $ 0.03
Second Quarter $ 0.10 $ 0.04
Third Quarter $ 0.10 $ 0.05
Fourth Quarter $ 0.10 $ 0.03
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
BID PRICES
-----------
1999 HIGH LOW
----------- -----------
First Quarter $ 0.04 $ 0.04
Second Quarter $ 0.04 $ 0.04
Third Quarter $ 0.04 $ 0.04
Fourth Quarter $ 0.10 $ 0.06
(b) APPROXIMATE NUMBER OF EQUITY SECURITY HOLDERS:
Title of Class No. of Record Holders
---------------------------------- ------------------------------
$0.05 Par Value 2,241 as of December 31, 2000
Common Stock Non -Assessable
<page> 10
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
(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.
<r>
Liquidity: The Company has a positive cash position with and has invested in a cash management mutual fund. The Company’s cash and liquid assets are considered adequate to meet its current corporate obligations. The market value of the stock mutual funds continued to decrease in 2001 as in the previous few years. This decrease in value is due to the general decline in the main stock markets in which the Company’s mutual funds were invested. The decrease in value may be temporary, as the value of the mutual funds will reflect the overall trends of the markets in which the funds are invested. Corporate expenses, which are drawn from the invested funds, will impact the net value of the liquid assets.
The Company has positive cash position and maintained its liquid assets in cash and mutual funds during 2001. The Company’s cash and liquid assets are considered adequate to meet its current corporate obligations. The Company does not foresee any necessity to raise additional funds during the next twelve-month period. Management believes that its funds are sufficient to meet corporate expenses incurred during the next twelve months. The Company has made a financial arrangement with its Joint Venture partner, Dewey Mining, to carry a majority of the expenses related to the appraisal and other costs associated with the potential sale of the Thunder Mountain property. These expenditures will be reimbursed out of funds that may be received from the future sale, or as otherwise arranged between the Company and Dewey Mining.
</r>
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 performed 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. The Company did not engage in any research and development activities during fiscal 2001.
Directors and management fees were $17,000 annually. Please refer to the financial statements for additional costs and expenditures and other financial information.
Capital Resources: The Company presently did not acquire any equipment during 2001. The Company does not intend to make any capital expenditures from its funds for property or equipment during the next 12 months . The Company also does not presently have any plans to raise capital through debt or equity financing.
<page> 11
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.
For 2001, gross revenues were $-0-.
The Company does not currently have any employees, and does not anticipate any for the upcoming calendar year(s).
ITEM 7: FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
FINANCIAL STATEMENT
AND
INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 2001
<page> 12
TABLE OF CONTENTS
Page
Independent Auditors' Report 14
Balance Sheet at December 31, 2001 and 2000 15-16
Statement of Operations for the Years Ended
December 31, 2001, 2000, and 1999 17
Statement of Cash Flows for the Years Ended
December 31, 2001, 2000, and 1999 18-19
Statement of Changes in Stockholders' Equity for the
Years Ended December 31, 2001, 2000, and 1999 20-22
Notes to Financial Statements 23-27
Report of Independent Auditors' on Supplemental
Schedules 28
Supplemental Schedules 29-33
<page> 13
<r>
INDEPENDENT AUDITORS' REPORT
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, 1999, and during the exploration stage (1991 through 2001).
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, 1999, and during the exploration stage (1991
through 2001), 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 5
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. The December
31, 1997, Financial Statements have been restated to reflect the write-
down of the Midas Gold investment.
/s/ Moe, O'Shaughnessy, and Associates
April 24, 2002
<page> 14
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
------------ ------------
$ 90,058 $ 240,277
============ ============
See Notes to Financial Statements.
<page> 15
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) (42,173) (19,876)
Retained earnings (deficit) (212,793) (212,793)
Deficit accumulated during the
exploration stage (1991
through 2001) (381,250) (259,468)
------------ ------------
80,198 224,277
------------ ------------
$ 90,058 $ 240,277
============ ============
See Notes to Financial Statements.
<page> 16
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
STATEMENT OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000, 1999 AND DURING
THE EXPLORATION STAGE (1991 THROUGH 2001) During Exploration
Stage
2001 2000 1999 (1991 through 2001)
(Restated-See Note 3) (Restated-See Note 3)
INCOME
---------------------------------------------------------------------------------------------------------------------------------------------
Royalties $ - $ - $ - $ 328,500
EXPENSES
Exploration 74,614 134,572 24,781 350,161
Depreciation and depletion 114 1,830 4,145 36,099
Directors' fees and professional services 6,000 18,000 25,000 364,500
Legal and accounting 14,703 6,635 12,340 105,257
Management and administrative 5,200 9,388 23,501 217,822
---------------------------------------------------------------------------------------------------------------------------------------------
Total Expenses 100,631 170,425 89,767 1,073,839
---------------------------------------------------------------------------------------------------------------------------------------------
(LOSS) FROM OPERATIONS (100,631) (170,425) (89,767) (745,339)
---------------------------------------------------------------------------------------------------------------------------------------------
OTHER INCOME
Interest and dividend income 438 16,198 7,654 195,351
Gain (loss) on sale of securities and assets (21,589) 51,625 119,163 168,738
---------------------------------------------------------------------------------------------------------------------------------------------
(21,151) 67,823 126,817 364,089
---------------------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) BEFORE FEDERAL
INCOME TAXES (121,782) (102,602) 37,050 (381,250)
---------------------------------------------------------------------------------------------------------------------------------------------
PROVISION FOR INCOME TAXES
Tax at statutory rates - - - -
Tax benefit - - - -
---------------------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) (121,782) (102,602) 37,050 (381,250)
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Unrealized holding gain (loss) arising during the period (17,108) (60,186) 82,383 (42,173)
Reclassification adjustment for (gains)
losses included in net income 21,589 (47,100) (106,413) (178,852)
Reclassification adjustment for difference between cost and
carrying value of securities sold during the period
previously included in other comprehensive income (26,778) (89,587) - 178,852
---------------------------------------------------------------------------------------------------------------------------------------------
Other comprehensive income (loss), net of tax (22,297) (196,873) (24,030) (42,173)
---------------------------------------------------------------------------------------------------------------------------------------------
COMPREHENSIVE INCOME (LOSS) $(144,078) $(299,475) $ 13,020 $ (423,423)
============================================================================================================================================
EARNINGS (LOSS) PER SHARE
Basic $ (0.01) $ (0.01) $ - $ (0.04)
Diluted $ (0.01) $ (0.01) $ - $ (0.04)
See Notes to Financial Statements.
<page> 17
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000, 1999 AND DURING
THE EXPLORATION STAGE (1991 THROUGH 2001)
During Exploration
Stage
2001 2000 1999 (1991 through 2001)
(Restated-See Note 3) (Restated-See Note 3)
---------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES
Net income (loss) $(121,782) $(102,602) $ 37,050 $ (381,250)
Non-cash expenses, revenues,
losses and gains included
in income:
Depreciation and
amortization 114 1,830 4,145 36,099
Gain on sale of securities
and assets - (51,625) (119,163) (212,081)
Loss on sale of securities
and assets 21,589 - - 49,018
Net decrease in receivables - - - 124,655
Net (decrease) in payables (6,139) (11,706) (2,993) (33,958)
---------------------------------------------------------------------------------------------------------------------------------------
Net Cash Flows Used By Operating Activities (106,218) (164,103) (80,961)
(417,517)
---------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS PROVIDED (USED) BY
INVESTING ACTIVITIES
Purchase of investments (18,622) (14,019) (204,884) (354,530)
Purchase of property and
equipment - - (594) (68,854)
Proceeds from disposition of
investments 122,516 142,481 244,950 570,917
Proceeds from disposition of
assets - 7,000 - 49,510
---------------------------------------------------------------------------------------------------------------------------------------
Net Cash Flows Provided
By Investing Activities 103,894 135,462 39,472 197,043
---------------------------------------------------------------------------------------------------------------------------------------
(Continued)
See Notes to Financial Statements.
<page> 18
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000, 1999 AND DURING
THE EXPLORATION STAGE (1991 THROUGH 2001)
During Exploration
Stage
2001 2000 1999 (1991 through 2001)
(Restated-See Note 3) (Restated-See Note 3)
---------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS PROVIDED (USED)
BY FINANCING ACTIVITIES
Proceeds from sale of
common stock - - - 60,000
Reacquisition of common stock - - - (50)
---------------------------------------------------------------------------------------------------------------------------------------
Net Cash Flows Provided
By Financing Activities - - - 59,950
---------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN CASH (2,324) (28,641) (41,489) (160,524)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 7,599 36,240 77,729 165,799
---------------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, END
OF PERIOD $ 5,275 $ 7,599 $ 36,240 $ 5,275
========================================================================================================================================
SUPPLEMENTAL SCHEDULE OF
NONCASH INVESTING 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 months or less to be cash equivalents.
(Concluded)
See Notes to Financial Statements.
<page> 19
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1991, THROUGH DECEMBER 31, 2001
Deficit
Accumulated
Accumulated During
Additional Other Retained Exploration
Common Stock Paid-In Comprehensive Treasury Earnings Stage (1991
Shares Amount Capital Income (Loss) Stock (Deficit) through 2002) Total
----------------------------------------------------------------------------------------------------------------------------------------------------Balances at January 1, 1991 7,776,587 $388,829 $254,285 $ $(24,150) $ 20,002 $ $638,966
Stock previously issued but not recorded
by transfer agent 1,265 63 (63)
Stock cancelled (50,000) (2,500) (10,000) (12,500)
Net loss - 1991 (82,358) (82,358)
-------------------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1991 7,727,852 386,392 244,222 (24,150) 20,002 (82,358) 544,108
Stock issued for mining contract 1,000,000 50,000 50,000
Net loss - 1992 (14,718) (14,718)
-------------------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1992 8,727,852 436,392 244,222 (24,150) 20,002 (97,076) 579,390
Stock issued for options exercised 1,000,000 50,000 10,000 60,000
Net loss - 1993 (42,942) (42,942)
-------------------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1993 9,727,852 486,392 254,222 (24,150) 20,002 (140,018) 596,448
Unrealized gain in marketable securities 215,803 215,803
Cumulative effect of change in accounting
principle (910) 910
Net loss - 1994 (27,471) (27,471)
-------------------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1994 9,727,852 486,392 254,222 214,893 (24,150) 20,912 (167,489) 784,780
Unrealized gain in marketable securities 141,801 141,801
Net income - 1995 26,367 26,367
-------------------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1995 9,727,852 486,392 254,222 356,694 (24,150) 20,912 (141,122) 952,948
Unrealized gain in marketable securities 12,360 12,360
Net income - 1996 83,029 83,029
-------------------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1996 9,727,852 486,392 254,222 369,054 (24,150) 20,912 (58,093) 1,048,337
Reacquisition of stock (50) (50)
Unrealized loss in marketable securities (141,132) (168,521)
Net loss - 1997 (10,139) 17,250
-------------------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1997 9,727,852 486,392 254,222 227,922 (24,200) 20,912 (68,232) 897,016
(Continued)
See Notes to Financial Statements.
<page> 20
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1991, THROUGH DECEMBER 31, 2001
Deficit
Accumulated
Accumulated During
Additional Other Retained Exploration
Common Stock Paid-In Comprehensive Treasury Earnings Stage (1991
Shares Amount Capital Income (Loss) Stock (Deficit) through 2002) Total
----------------------------------------------------------------------------------------------------------------------------------------------------Unrealized loss in marketable securities (26,895) (26,895)
Impairment loss - mining claims (233,705) (233,705)
Net loss - 1998 (125,684) (125,684)
Comprehensive (loss) (386,284)
-------------------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1998 9,727,852 486,392 254,222 201,027 (24,200) (212,793) (193,916) 510,732
Unrealized loss in marketable securities (24,030) (24,030)
Net income - 1999 37,050 37,050
Comprehensive income 13,020
-------------------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 1999 $9,727,852 $486,392 $254,222 $176,997 $(24,200) $(212,793) $(156,866) $523,752
=================================================================================================================================================
See Notes to Financial Statements.
<page> 21
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1991, THROUGH DECEMBER 31, 2001
Deficit
Accumulated
Accumulated During
Additional Other Retained Exploration
Common Stock Paid-In Comprehensive Treasury Earnings Stage (1991
Shares Amount Capital Income (Loss) Stock (Deficit) through 2002) Total
----------------------------------------------------------------------------------------------------------------------------------------------------Balances at December 31, 1999 (Restated - See Note 3) 9,727,852 $486,392 $254,222 $176,997 $(24,200) $(212,793)
$(156,866) $523,752
Unrealized Holding Loss in Marketable
Securities (60,186) (60,186)
Reclassification Adjustment for Gains
Included in Net Income (47,100) (47,100)
Reclassification Adjustment for Securities
Sold With Gains Previously Included in
Other Comprehensive Income (89,587) (89,587)
Net Loss - 2000 (Restated - See Note 3) (102,602) (102,602)
Comprehensive (Loss) (299,475)
----------------------------------------------------------------------------------------------------------------------------------------------------
Balance at December 31, 2000 (Restated -
See Note 3) 9,727,852 486,392 254,222 (19,876) (24,200) (212,793) (259,468) 224,277
Unrealized Holding Loss in Marketable
Securities (17,108) (17,108)
Reclassification Adjustment for Losses
Included in Net Income 21,589 21,589
Reclassification Adjustment for Securities
Sold With Gains Previously Included in
Other Comprehensive Income (26,778) (26,778)
Net Loss - 2001 (121,782) (121,782)
Comprehensive (Loss) (144,079)
----------------------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 2001 9,727,852 486,392 254,222 (42,173) (24,200) (212,793) (381,250) 80,198
====================================================================================================================================================
See Notes to Financial Statements.
<page> 22
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
1. Summary of 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.
<page> 23
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
1. Summary of 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.
2. Investments
The Company has adopted Statement of Financial Accounting
Standards (SFAS) No. 115, Accounting for Certain Investments in
Debt and Equity Securities. SFAS No. 115 establishes generally
accepted accounting principles for the financial accounting and
measurement and disclosure principles for (1) investments in
equity securities that have readily determinable fair market value
and (2) all investments in debt securities. All of the marketable
securities held by Thunder Mountain Gold, Inc., consist of
securities "available-for-sale", as defined by SFAS No. 115. The
method used in computing realized gains and losses is the specific
identification method.
The Company has been liquidating investments to provide cash flow.
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. Investments
in small local mining companies are stated at estimated fair value
and classified as non-current investments.
The following information is as of December 31, 2001, 2000 and
1999:
2001 2000 1999
-----------------------------------------------------------
Aggregate fair value of
marketable securities $ 84,142 $231,923 $510,158
Gross unrealized holding
gains - (32,808) (184,798)
Gross unrealized holding
losses 41,263 51,773 6,890
-----------------------------------------------------------
Cost basis $125,405 $250,888 $332,250
===========================================================
<page> 24
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
2. Investments - (Continued)
Changes in current marketable securities for the twelve months
ended December 31, 2001, 2000, and 1999, are as follows:
2001 2000 1999
-----------------------------------------------------------
Cost, as of January 1 $250,888 $332,250 $249,789
Purchase of shares - - 70,680
Sales of shares (125,483) (94,951) -
Dividends and capital
gains reinvested - 13,589 11,781
Unrealized gain (loss),
As of December 31 (41,263) (18,965) 177,908
-----------------------------------------------------------
Fair market value as of
December 31 $ 84,142 $231,923 $510,158
===========================================================
Investments consist of the following:
Carrying Market
Value Cost Value
-----------------------------------------------------------
December 31, 2001:
Current investments $ 84,142 $125,405 $ 84,142
Other investments 170 1,080 170
-----------------------------------------------------------
Total $ 84,312 $126,485 $ 84,312
===========================================================
December 31, 2000:
Current investments $231,923 $250,888 $231,923
Other investments 170 1,080 $ 170
-----------------------------------------------------------
Total $232,093 $251,968 $232,093
===========================================================
December 31, 1999:
Current investments $510,158 $332,250 $510,158
Other investments 170 1,080 170
-----------------------------------------------------------
Total $510,328 $333,330 $510,328
===========================================================
Other investments consist of small stock holdings in several local
mining companies.
<page> 25
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
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.
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.
5. Uncertainty - Going Concern
The Company's continued existence is dependent upon its ability to
resolve its 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.
<page> 26
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
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.
7. Exploration Stage Company
Management reviewed the status of the company and determined that
the company has been an exploration stage company from 1991
through 2001. Accordingly, the financial statements and
disclosures report the company as an exploration stage enterprise.
For information on the prior period adjustments regarding the
status of the company, see the following note.
8. Prior Period Adjustment
As of December 31, 1998, the company had recorded as an asset
accumulated capitalized costs pertaining to its mining claims of
$461,934 and accumulated depletion of $228,229. This resulted in
a net book value for the mining claims at December 31, 1998, of
$233,705. Management reviewed the status of the company and
determined that since the company was not able to report reserves
it had no basis for projecting future cash flows and was therefore
unable to support the carrying value of the costs previously
capitalized. Accordingly, the company restated its financial
statements for 1998, 1999 and 2000, and recorded an impairment
loss of $233,705 for 1998 and $5,000 for 2000. No adjustment was
required for 1999. The adjustment for 1998 increased the loss per
share by $.02 and the effect for 2000 was nil.
As of December 31, 1997, the Company restated its financial
statements for a write-down of the Midas Gold Investment of
$27,389 as a decline in fair value that was other than temporary.
Long - lived assets are reviewed whenever indicators of
impairment are present and the undiscounted cash flows are not
sufficient to recover the related asset carrying value. If
impairment exists, the carrying amount of the long-lived assets
will be reduced to its estimated fair value, less any costs
associated with the final settlement. As of December 31, 2001,
there was no impairment of the companies long-lived assets.
<page> 27
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
SUPPLEMENTAL SCHEDULES
<page> 28
INDEPENDENT AUDITORS' REPORT 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.
April 24, 2002
<page> 29
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 Which
Number of Cost of Market Value Issue is Carried
Issuer Shares Shares Shares on 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 17,715 7,978 7,978
-------------------------------------------------------------------------------------------------------------------------------------------
Totals 13,860 $125,405 $ 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
===========================================================================================================================================
December 31, 2000
----------------------------------------------------------------------------------------------------------------------------------------
Column A Column B Column C Column D Column E
Amount at Which
Number of Cost of Market Value Issue is Carried
Issuer Shares Shares Shares on Balance Sheet
----------------------------------------------------------------------------------------------------------------------------------------
ML Global Growth Mutual Fund 2,794 $ 44,266 $ 35,405 $ 35,405
Class B
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 Mutual Fund 2,496 46,917 40,187 40,187
Stock Fund
Class B
Barrick Gold Corporation Common Shares 3,000 16,332 49,140 49,140
Midas Gold Common Shares 8,396 17,715 7,054 7,054
----------------------------------------------------------------------------------------------------------------------------------------
Totals 25,184 $250,888 $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
===========================================================================================================================================
See Notes to Financial Statements.
<page> 30
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000, AND 1999
Column A Column B Column CColumn 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) 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.
See Notes to Financial Statements.
<page> 31
THUNDER MOUNTAIN GOLD, INC.
(An Exploration Stage Company)
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND
AMORTIZATION OF PROPERTY AND EQUIPMENT
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000, AND 1999
Column A Column B Column CColumn 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
=============================================================================================================================================
Depreciation is calculated using the accelerated depreciation methods with useful lives of three to seven years.
See Notes to Financial Statements.
<page> 32
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.
Year Ended December 31,
----------------------------------------------------------------------------------------------------------------------------
Selected Balance Sheet Data 2001 2000 1999 1998 1997
(Restated - (Restated - (Restated -
See Note 3) See Note 3) See Note 3)
----------------------------------------------------------------------------------------------------------------------------
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) (21,151) 67,823 126,817 (216,845) (2,800)
----------------------------------------------------------------------------------------------------------------------------
Net Income (Loss) (121,782) (102,602) 37,050 (359,389) (10,139)
----------------------------------------------------------------------------------------------------------------------------
Net Income (Loss) Per Share $ (0.01) $ (0.01) $ NIL $ (0.04) $ NIL
----------------------------------------------------------------------------------------------------------------------------
No dividends have been paid by the Company.
See Notes to Financial Statements.
</r>
<page> 33
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
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 53 - President and Director - Mr. Collord has been an officer and Director of the Registrant since 1978.
Robin S. McRae, Age 59 - Secretary/Treasurer and Director - Dr. McRae has been an officer and Director of the Registrant since 1978.
Pete Parsley, Age 38 - Director and Thunder Mountain Project Manager. Mr. Parsley has been a director since 1999.
Ronald Yanke, Age 62, - 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 actively 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 form 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.
<page> 34
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
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 2000.
All officers and Directors, of which there were five* at various times during 2000, received the sum of $40,000 distributed as follows:
E. James Collord Vice President/Director $12,000*
Robin S. McRae Secretary/Treasury $10,000
Ron Yanke Director No compensation
Pete Parsley Director/Project Manager $ 5,000
Note: Includes $7,000 value of company owned vehicle transferred to Mr. Collord in lieu of second half director's fee payment.
<page> 35
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
(b) BONUSES AND DEFERRED COMPENSATION:
Budgeted Arrangements (in 2001):
E. James Collord $10,000
Robin S. McRae $10,000
Ron Yanke None
Pete Parsley $10,000
(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
(b) THE SECURITY HOLDINGS OF MANAGEMENT ARE AS FOLLOWS
Common Stock Ellis J. Collord 239,250 shares of 2.46%
record and beneficially
Common Stock Dr. Robin S. McRae 91,955 shares of .95%
record and beneficially
Total of all Officers and Directors: 61,205 shares of 6.29%
record and beneficially
<page> 36
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
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, or
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 2000.
<page> 37
THUNDER MOUNTAIN GOLD, INC.
FORM 10KSB/A
FOR THE YEAR ENDED DECEMBER 31, 2001
ITEM 14. CONTROLS AND PROCEDURES
Based on their most recent evaluation, which was completed within 90 days of the filing of this Form 10-QSB, the Company's treasurer and president believe the Company's disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) are effective to ensure that information required to be disclosed by the Company in this report is accumulated and communicated to the Company's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. There were no significant changes in the Company's internal controls or other factors that could significantly affect these controls subsequent to the date of their evaluation and there were no corrective actions with regard to significant deficiencies and material weaknesses.
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/ James Collord
By __________________________________
E. James Collord
President and Director
Chief Executive Officer
Date: April 18, 2003
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
By ____________________________________
Robin S. McRae
Secretary/Treasurer and
Director and Chief Financial Officer
Date: April 18, 2003
Page 38
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
I, E. James Collord, certify that:
1. I have reviewed this revised annual report on Form 10-KSB/A of Thunder Mountain Gold, Inc;
2. Based on my knowledge, this revised annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this revised annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this revised annual report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this revised annual report;
4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a)
designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this revised annual report is being prepared;
b)
evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this revised annual report (the “Evaluation Date”); and
c)
presented in this revised annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. I have disclosed, based on my most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
a)
all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and
6. I have indicated in this revised annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
/s/ James Collord
-----------------------------------------
E. James Collord, President, Director and CEO
Date: April 18, 2003
CERTIFICATION OF CHIEF FINANCIAL OFFICER
I, Robin S. McRae, certify that:
1. I have reviewed this revised annual report on Form 10-KSB/A of Thunder Mountain Gold, Inc;
2. Based on my knowledge, this revised annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this revised annual report;
3. Based on my knowledge, the financial statements, and other financial information included in this revised annual report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this revised annual report;
4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Securities Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a)
designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this revised annual report is being prepared;
b)
evaluated the effectiveness of the registrant’s disclosure controls and procedures as of a date within 90 days prior to the filing date of this revised annual report (the “Evaluation Date”); and
c)
presented in this revised annual report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
5. I have disclosed, based on my most recent evaluation, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
a)
all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
b)
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and
6. I have indicated in this revised annual report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
/s/ Robin S. McRae
-----------------------------------------
Robin S. McRae
Secretary/Treasurer and Director and Chief Financial Officer
Date: April 18, 2003