Second Quarter Report 10QSB
June 30, 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 June 30, 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 June 30, 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 June 30, 2001 1
Statements of Operation for the three months ended
June 30, 2001 and June 30, 2000 2a
Statements of Operation for the six months ended
June 30, 2001 and June 30, 2000, and for development stage
period from January 1, 1995 through June 30, 2001 2b
Statements of Cash Flows - for the periods three months
ended June 30, 2001 and June 30, 2000 and the development
stage period from January 1, 1995 through June 30, 2001 3
Notes to Financial Statements 4
Item 2. Management's Discussion and Analysis or Plan of operation 5-6
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
SIGNATURE 8
GLOBAL GOLD CORPORATION
(A Development Stage Company)
Balance Sheet
June 30, 2001
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $ 305
Investment in First Dynasty Mines, Ltd 105,000
------------
$ 105,305
============
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 73,137
Due to related parties 22,218
------------
95,355
------------
STOCKHOLDERS' DEFICIT
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 (4,738,373)
Other comprehensive loss (91,000)
------------
TOTAL STOCKHOLDERS DEFICIT 9,950
------------
$ 105,305
============
See notes to financial statements.
1
GLOBAL GOLD CORPORATION
(A Development Stage Company)
Statements of Operation and Comprehensive Loss
Three Months Ended June 30,
-------------------------------------
2001 2000
------------ -----------
REVENUE $ -0- $ -0-
----------- -----------
EXPENSES
Selling General and Administrative 7,185 6,627
Legal 1,918 6,119
Officers' compensation -0- -0-
----------- -----------
Total Expemses 9,103 12,746
----------- -----------
OPERATING (LOSS)
OTHER INCOME (EXPENSES)
Write-off investment in Georgia mining interest -0- -0-
Gain on sale of interest in Global Gold Armenia -0- -0-
Miscellaneous -0- -0-
------------ ----------
Net Loss $ ( 9,103) $ (12,746)
------------ ----------
Net Loss Per Share $ (.00) $ (.00)
------------ ----------
Weighted Average Number of Shares Used In Computation 4,368,114 4,365,257
============ ==========
Net Loss $ ( 9,103) $ (12,746)
Other Comprehensive Loss, net of Tax
Unrealized loss on available for Sale Securities (30,000) (104,000)
------------ ----------
Comprehensive Loss $ ( 39,103) $ ( 116,746)
============ ==========
See notes to financial statements.
2a
GLOBAL GOLD CORPORATION
(A Development Stage Company)
Statements of Operation and Comprehensive Loss
Six Months Ended June 30, JANUARY 1, 1995
-------------------------------------- THROUGH
2001 2000 June 30, 2001
------------ ---------------- ------------------
REVENUE $ -0- $ -0- $ -0-
----------- ----------- -----------
EXPENSES
Selling General and Administrative 12,260 13,061 764,149
Legal 5,573 9,703 629,266
Officers' compensation -0- -0- 550,834
----------- ----------- ----------
Total Expenses (17,833) (22,794) (1,945,249)
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- -0- (18,627)
------------ ---------- ------------
Net Loss (17,833) (22,794) (1,830,725)
------------ ---------- ------------
Net Loss Per Share $ (.00) $ $(.01)
------------ ----------
Weighted Average Number of Shares Used In Computation 4,368,114 4,356,733
------------ ----------
Net Loss $ (17,833) $ (22,794) $(1,830,725)
Other Comprehensive Loss, net of Tax
Unrealized loss on available for Sale Securities 15,000 (60,000) (91,000)
------------ ---------- ------------
Comprehensive Loss $ (2,833) $ (82,794) $(1,921,725)
============ ========== ============
See notes to financial statements.
2b
GLOBAL GOLD CORPORATION
(A Development Stage Company)
Statements of Cash Flow
January 1, 1995
(Development stage)
Six Months Ended June 30, through
2001 2000 June 30, 2001
------------------ ------------------ ------------------
CASH FLOW FROM DEVELOPMENT STAGE ACTIVITIES:
Net Loss $(17,833) $(22,794) $(1,830,725)
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 13,778 21,676 356,458
-------- -------- ---------
NET CASH USED IN DEVELOPMENT STAGE
ACTIVITIES (4,055) (1,118) (1,292,173)
--------- --------- ----------
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 (4,055) (1,118) (11,047)
CASH - beginning of peroid 4,360 1,432 11,352
--------- --------- ---------
CASH - end of peroid $ 305 $ 314 $ 305
========= ========= =========
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid $ -0- $ (105) $ 2,683
========= ========== =========
Interest paid $ -0- $ -0- $ 15,422
========= ========== =========
Non Cash Financing
Accrued Salary Settlement $ -0- $ -0- $162,500
--------- ------------ ---------
Issuance of Stock Commission $ -0- $ -0- $ 2,000
========= ========== =========
See notes to financial statements.
3
GLOBAL GOLD CORPORATION
(A Development Stage Company)
Notes to Financial Statements
June 30, 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 six month period ended June 30, 2001 are not
necessarily indicative of the operating results to be expected
for the full year.
Note 2: INVESTMENTS:
At June 30, 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 $105,000. The cost of
the securities was $196,000. The unrealized loss as of June 30,
2001 was $91,000 which is shown as a separate component of
stockholders' deficit.
4
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION
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 JUNE 30, 2001
AND THREE MONTHS ENDED JUNE 30, 2000
RESULTS OF OPERATIONS
During the three-month period ended June 30, 2001, the Company's
administrative and other expenses were $9,103 which represented a
decrease from the amount paid or accrued of $12,746 in the same
period last year. The expense decrease was attributable to lower
legal expenses of $4,201.
Thus, the Company had a loss of $9,103 for the three month period
ended June 30, 2001 representing a decrease from the loss of
$12,746 for the three month period ended June 30, 2000.
SIX MONTHS ENDED JUNE 30, 2001 AND
SIX MONTHS ENDED JUNE 30, 2000
During the six-month period ended June 30, 2001, the Company's administrative
and ther expenses were $17,833, which represented a decrease from the amount
paid or accrued of $22,794 in the same period last year. The expense decrease
was attributable to lower legal expenses of $4,130.
Thus, the Company had a loss of $17,833 for the six month period ended June 30,
2001 representing a decrease from the lows of $22,794for the six month period
ended June 30, 2000.
5
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2001, the Company's total assets were $105,305, of which $305
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.
6
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. Exhibits and Reports on Form 8-K
(a) The following documents are filed as part of this report: Financial
Statements of the Company (unaudited), including Balance Sheet, Statements
of Income and Loss, Statements of Cash Flow and Notes to Financial
Statements as at and for the three months and six months ended June 30,
2001 and June 30, 2000 and exhibits which are listed on the Exhibit Index
attached hereto: None
(b) The following reports on Form 8-K were filed by the Registrant during the
quarter ended June 30, 2001: None
7
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
8