Fourth Third Second First 2012 Quarter Quarter Quarter Quarter Total Sales of products $ 81,100 $ 81,871 $ 67,019 $ 91,153 $ 321,143 Gross profit $ 34,037 $ 37,309 $ 23,968 $ 48,202 $ 143,516 Net income (loss)  (1) $ 743 $ (885) $ 2,524 $ 12,572 $ 14,954 Preferred stock dividends $ (138) $ (138) $ (138) $ (138) $ (552) Income (loss) applicable to common shareholders $  605  $  (1,023)  $  2,386  $  12,434  $  14,402  Basic income per common share $ — $ — $ 0.01 $ 0.04 $ 0.05 Diluted income per common share $ — $ — $ 0.01 $ 0.04 $ 0.05 2011  Sales of products $ 102,867 $ 120,543 $ 117,860 $ 136,364 $ 477,634 Gross profit $ 49,826 $ 67,805 $ 67,791 $ 79,573 $ 264,995 Net income (loss)  $ 18,569 $ 55,921 $ 33,317 $ 43,357 $ 151,164 Preferred stock dividends $ (138) $ (138) $ (138) $ (138) $ (552) Income (loss) applicable to common shareholders  $ 18,431 $ 55,783 $ 33,179 $ 43,219 $ 150,612 Basic income (loss) per common share $ 0.07 $ 0.20 $ 0.12 $ 0.16 $ 0.54 Diluted income (loss) per common share $ 0.06 $ 0.19 $ 0.11 $ 0.15 $ 0.51 (1) During 2012, we experienced a temporary suspension of production at our Lucky Friday unit, which resulted in reduced revenue and net income in 2012 compared to 2011. For additional information,  see Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – The Lucky Friday Segment. ITEM 9. ChANgES IN AND DISAgrEEMENTS wITh ACCouNTANTS oN ACCouNTINg AND FINANCIAl DISCloSurES ITEM 9A. CoNTrolS AND proCEDurES Disclosure Controls and Procedures Management’s Annual Report on Internal Control over Financial Reporting  None. An evaluation was performed under the supervision and with the participation of our management, including the Chief Executive Officer (“CEO”)  and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on that  evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of December 31, 2012, in ensuring them in a  timely manner that material information required to be disclosed in this report has been properly recorded, processed, summarized and reported. Management is responsible for establishing and maintaining adequate internal control over our financial reporting, which is designed to provide  reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance  with generally accepted accounting principles in the United States of America. Because of its inherent limitations, any system of internal control over financial reporting, no matter how well designed, may not prevent or detect  misstatements due to the possibility that a control can be circumvented or overridden or that misstatements due to error or fraud may occur that are  not detected. Also, because of changes in conditions, internal control effectiveness may vary over time. Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2012, using criteria established in Internal  Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and concluded that we  have maintained effective internal control over financial reporting as of December 31, 2012, based on these criteria. An evaluation was performed under the supervision and with the participation of management, including the CEO and CFO, of the effectiveness of  the design and operation of our disclosure controls and procedures as required by Exchange Act Rules 13a-15(e) and 15(d)-15(e) as of the end of the  reporting period covered by this report. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures, including  controls and procedures designed to ensure that information required to be disclosed by us is accumulated and communicated to our management  (including our CEO and CFO), were effective as of December 31, 2012, in ensuring them in a timely manner that material information required to be  disclosed in this report has been properly recorded, processed, summarized and reported. Our internal control over financial reporting as of December 31, 2012 has been audited by BDO USA, LLP, an independent registered public  accounting firm, as stated in the attestation report which is included herein. There have been no changes in our internal controls over financial reporting during the quarter ended December 31, 2012, that have materially  affected, or are reasonably likely to materially affect, our internal controls over financial reporting. Changes in Internal Control over Financial Reporting 34 [ HL:10-K ] 