First Quarter Report 10QSB
March 31, 2001
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U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the quarterly period ended March 31, 2001
/ / TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from __________ to __________
Commission file 02-69494
GLOBAL GOLD CORPORATION
(Name of small business issuer in its charter)
DELAWARE 13-3025550
-------- ----------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
734 FRANKLIN AVENUE, SUITE 383, GARDEN CITY, NEW YORK 11530-4525
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (516) 627-2388
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such sorter
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 whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court. Yes / / No / /. Not applicable.
As of March 31, 2001 there were 4,368,114 shares of the registrant's Common
Stock outstanding.
Transitional Small Business Disclosure Format (check one): Yes / / No /X/.
TABLE OF CONTENTS
PART I FINANACIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Balance Sheet - as of March 31, 2001 1
Statements of Income and Loss for the periods January 1, 2001 through
March 31, 2001 and January 1, 2000 through
March 31, 2000 and for the development stage period from
January 1, 1995 through March 31, 2001 2
Statements of Cash Flow - for the periods January 1, 2001
through March 31, 2001 and January 1, 2000 through
March 31, 2000 and the development stage period from
January 1, 1995 through March 31, 2001 3
Notes to Financial Statements 4-5
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operation 5-7
PART II OTHER INFORMATION
Item 1. Legal Proceedings 7
Item 2. Changes in Securities and Use of Proceeds 7
Item 3 Default Upon Senior Securities 7
Item 4 Submission of Matters to a Vote of Security Holders 7
Item 5 Other Information 7
Item 6. Exhibits and Reports on Form 8-K 7-8
SIGNATURE 9
GLOBAL GOLD CORPORATION
(A Development Stage Company)
Balance Sheet
March 31, 2001
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $ 380
------------
OTHER ASSETS
Investment in First Dynasty Mines, Ltd. (Common Shares)
135,000
------------
$ 135,380
============
LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 86,327
------------
STOCKHOLDERS' EQUITY
Common stock $0.001 par, 100,000,000 shares authorized 4,368,114 shares
issued and outstanding 4,368
Paid-in capital - dormant period 4,834,955
Deficit - development stage (4,729,270)
Unrealized gains/(loss) on securities (61,000)
------------
Total 49,053
------------
$ 135,380
============
See notes to financial statements.
1
GLOBAL GOLD CORPORATION
(A Development Stage Company)
Statements of Income and Loss
JANUARY 1, 1995
JANUARY 1, 2001 JANUARY 1, 2000 (DEVELOPMENT STAGE)
THROUGH THROUGH THROUGH
March 31, 2001 March 31, 2000 March 31, 2001
------------------ ------------------ ------------------
REVENUE $ -0- $ -0- $ -0-
----------- ----------- -----------
EXPENSES
Officers' compensation -0- -0- 550,834
Legal 3,655 3,584 627,348
Selling General & Administrativ 5,075 7,002 757,964
----------- ----------- ----------
Total Expemses 8,730 10,586 1,936,146
OPERATING (LOSS) ( 8,730) (10,586) (1,936,146)
OTHER INCOME (EXPENSES)
Write-off investment in Georgia mining interest -0- -0- (135,723)
Gain on sale of interest in Global Gold Armenia -0- -0- 268,874
Miscellaneous -0- 538 (18,627)
------------ ---------- ------------
Net Loss ( 8,730) (10,048) (1,821,622)
New Loss Per Share $(.00) $(.00) $(.55)
Weighted Average Number of Shares Used In Computation 4,368,114 4,368,114 3,303,401
Net Loss $( 8,730) $(10,048) $(1,821,622)
Other Comprehensive Gain / (Loss), net of Tax
Unrealized gain/(loss) on available for Sale Securities 45,000 44,000 (61,000)
------------ ---------- ------------
Comprehensive Gain / (Loss) $36,270 $33,952 $(1,882,622)
============ ========== ============
See notes to financial statements.
2
GLOBAL GOLD CORPORATION
(A Development Stage Company)
Statements of Cash Flow
January 1, 1995
January 1, 2001 January 1, 2000 (development stage
through through through
March 31, 2001 March 31, 2000 March 31, 2001
------------------ ------------------ ------------------
CASH FLOW FROM DEVELOPMENT STAGE ACTIVITIES:
Net Loss $(8,730) $(10,048) $(1,821,622)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Provision for bad debts included in net loss -0- -0- 325,000
Write-off of mining investment in Georgia -0- -0- 135,723
Gain on sale of Armenia mining interests -0- -0- (268,874)
Changes in assets and liabilities:
Organization costs -0- -0- (9,601)
Accounts receivable and deposits -0- -0- (154)
Accounts payable, accrued expenses and
Miscellaneous 4,750 9,471 347,430
-------- -------- ---------
NET CASH USED IN DEVELOPMENT STAGE
ACTIVITIES ( 3,980) ( 577) (1,292,098)
--------- --------- ----------
CASH FLOW FROM INVESTING ACTIVITIES:
Proceeds from sale of Armenia mining interest
(net of Note Receivable)
-0- -0- 1,891,155
Investment in certain mining interests- net of
Financing -0- -0- (153,494)
Deferred costs - mining interest -0- -0- (878,858)
--------- --------- ---------
NET CASH PROVIDED BY INVESTING ACTIVITIES -0- -0- 858,803
--------- --------- -------
CASH FLOW FROM FINANCING ACTIVITIES:
Net proceeds from private placement offering -0- -0- 421,573
Sale of Warrants -0- -0- 650
Warrants exercised -0- -0- 100
--------- --------- ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES -0- -0- 422,323
--------- --------- -------
NET DECREASE IN CASH (3,980) (577) (10,972)
CASH - beginning 4,360 1,432 11,352
CASH - end $ 380 $ 855 $ 380
============ ========== =========
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid $ -0- $ (200) $ 2,683
========= ========== =======
Interest paid $ -0- $ -0- $15,422
========= ========== =======
Non Cash Financing
Accrued Salary Settlement $ -0- $ 162,500 $162,500
--------- ------------ ---------
Issuance of Stock Commission $ -0- $ 2,000 $ 2,000
See notes to financial statements.
3
GLOBAL GOLD CORPORATION
(A Development Stage Company)
Notes to Financial Statements
March 31, 2001
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERIM FINANCIAL STATEMENTS:
The accompanying financial statements are unaudited. In the
opinion of management, all necessary adjustments (which include
only normal recurring adjustments) have been made to present
fairly the financial position, results of operations and cash
flows for the periods presented. Certain information and note
disclosure normally included in financial statements prepared in
accordance with generally accepted accounting principles have
been condensed or omitted. It is suggested that these
consolidated financial statements be read in conjunction with the
financial statements and notes thereto included in the December
31, 2000 annual report on Form 10-KSB. The results of operations
for the three month period ended March 31, 2001 are not
necessarily indicative of the operating results to be expected
for the full year.
INVESTMENTS:
At March 31, 2001 investment in securities consisted of common
stock of First Dynasty Mines, Ltd. classified as available for
sale and stated at a quoted fair value of $135,000. The cost of
the securities was $196,000. The unrealized loss as of March 31,
2001 was $61,000 which is shown as a separate component of
stockholders' deficit.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
When used in this discussion, the words "expect(s)", "feel(s)",
"believe(s)", "will", "may", "anticipate(s)" and similar
expressions are intended to identify forward-looking statements.
Such statements are subject to certain risks and uncertainties,
which could cause actual results to differ materially from those
projected. Readers are cautioned not to place undue reliance on
these forward-looking statements, and are urged to carefully
review and consider the various disclosures elsewhere in this
Form 10-QSB.
THREE MONTHS ENDED MARCH 31, 2001
AND THREE MONTHS ENDED MARCH 31, 2000
RESULTS OF OPERATIONS
During the three-month period January 1, 2001 through March 31,
2001, the Company's administrative and other expenses were $8,730
which represented a decrease from the amount paid or accrued of
$10,586 in the same period last year. The expense decrease was
attributable to lower office expenses of $1,856.
Thus, the Company had a loss of $8,730 for the three month period
ended March 31, 2001 representing a decrease from the loss of
$10,048 for the three month
6
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2001, the Company's total assets were $135,380,
of which $380 consisted of cash or cash equivalents.
The Company's plan of operation for calendar year 2001 is:
(a) to investigate opportunities, and possibly implement
operations, in the mineral development and
production area; and
(b) to investigate other investment opportunities in
the mineral development and production areas
The Company needs financing to meet its anticipated monthly
administrative expenses of $3,000 (exclusive of accrued officers'
compensation), plus additional amounts for legal and accounting
costs. The Company anticipates that it might obtain additional
financing in 2001 from the holders of its Warrants to purchase
330,000 shares of Common Stock of the Company at an exercise
price of $0.25 per share, which expire on October 31, 2003. If
the Warrants were exercised in full, the Company would receive
$82,500 in gross proceeds. However, the Company does not believe
that the Warrants will be exercised under existing circumstances,
and thus it does not anticipate that any amount thereof will be
exercised, although there can be no assurance of such result.
In the event that no contemplated financing is obtained through
the exercise of the warrants (which the Company considers highly
remote), the Company does not have sufficient financial resources
to meet its obligations
The Company does not intend to engage in any research and
development during 2001 and does not expect to purchase or sell
any plant or significant equipment.
The Company does not expect to hire any additional full-time
employees in 2001.
7
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities and Use of Proceeds
None
Item 3 Default Upon Senior Securities
None
Item 4 Submission of Matters to a Vote of Security Holders
None
Item 5 Other Information
None
Item 6. Reports on Form 8-K Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed by the registrant during
the quarterly period covered by this report.
8
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities and
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
GLOBAL GOLD CORPORATION
By:_________________________
Drury J. Gallagher, Chairman,
Chief Executive Officer and Treasurer
9