MINES MANAGEMENT INC

CIK:0000066649|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
OPERATING EXPENSES:
General and administrative	$ 365,047	$ 509,478	$ 815,304	$ 1,061,380
Technical services	211,998	418,416	514,408	841,374
Depreciation	12,460	15,565	45,764	43,402
Legal, accounting, and consulting	609,196	291,865	822,936	757,489
Fees, filing, and licenses	12,453	2,560	26,321	50,360
Total operating expenses	1,211,154	1,237,884	2,224,733	2,754,005
LOSS FROM OPERATIONS	(1,211,154)	(1,237,884)	(2,224,733)	(2,754,005)
OTHER INCOME:
Interest, net	(7,492)	1,553	(6,918)	3,661
NET LOSS	(1,218,646)	(1,236,331)	(2,231,651)	(2,750,344)
CUMULATIVE PREFERRED STOCK DIVIDENDS	(25,226)	(52,890)	(75,357)	(105,780)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (1,243,872)	$ (1,289,221)	$ (2,307,008)	$ (2,856,124)
NET LOSS PER SHARE (basic and diluted) (in dollars per share)	$ (0.04)	$ (0.04)	$ (0.07)	$ (0.09)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (basic and diluted)	32,842,905	29,814,040	31,673,559	29,814,040

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,218,646)	$ (1,236,331)	$ (2,231,651)	$ (2,750,344)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation			75,945	165,176
Depreciation	12,460	15,565	45,764	43,402
Accretion of asset retirement obligation			12,911	12,232
Changes in assets and liabilities:
Interest receivable			3,633	2,279
Prepaid expenses and deposits			6,473	(48,885)
Accounts payable			229,088	(67,705)
Payroll and payroll taxes payable			26,989	(667)
Net cash used in operating activities			(1,830,848)	(2,644,512)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment				(760)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from term loan			1,355,000
Proceeds from sales of common stock			183,507
Cumulative preferred stock dividends			(126,948)	(105,780)
Net cash provided by (used in) financing activities			1,411,559	(105,780)
NET DECREASE IN CASH AND CASH EQUIVALENTS			(419,289)	(2,751,052)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			1,203,048	3,862,462
CASH AND CASH EQUIVALENTS, END OF PERIOD	783,759	1,111,410	783,759	1,111,410
SUPPLEMENTAL INFORMATION:
Interest paid			474
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES:
Accrual of cumulative preferred stock dividends	$ 1,299	$ 52,890	1,299	$ 52,890
Preferred shares converted to common shares			$ 3,526,000

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 783,759	$ 1,203,048
Interest receivable	826	4,459
Prepaid expenses and deposits	328,728	335,201
Total current assets	1,113,313	1,542,708
PROPERTY AND EQUIPMENT:
Buildings and leasehold improvements	836,454	836,454
Equipment	1,922,038	1,922,038
Office equipment	344,657	344,657
Total property and equipment, gross	3,103,149	3,103,149
Less accumulated depreciation	2,673,628	2,627,864
Total property and equipment, net	429,521	475,285
OTHER ASSETS:
Available-for-sale securities	5,911	975
Reclamation deposits	1,184,966	1,184,966
Total other assets	1,190,877	1,185,941
Total assets	2,733,711	3,203,934
CURRENT LIABILITIES:
Accounts payable	619,061	389,973
Payroll and payroll taxes payable	40,745	13,756
Dividends payable	1,299	52,890
Term loan payable	1,355,000
Total current liabilities	2,016,105	456,619
LONG-TERM LIABILITIES:
Asset retirement obligation	541,161	528,250
Total liabilities	2,557,266	984,869
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred shares — no par value, 10,000,000 shares authorized; Series B 6% convertible preferred shares — $1,000 stated value, 3,093 and 3,526 shares issued and outstanding, respectively		3,526,000
Common shares — $0.001 par value, 100,000,000 shares authorized; 30,893,704 and 29,814,040 shares issued and outstanding, respectively	35,857	29,814
Additional paid-in capital	91,728,505	87,949,096
Accumulated deficit	(91,582,663)	(89,275,655)
Accumulated other comprehensive losses	(5,254)	(10,190)
Total stockholders' equity	176,445	2,219,065
Total liabilities and stockholders' equity	$ 2,733,711	$ 3,203,934