Delaware
|
13-03025550
|
(State
or other jurisdiction of
|
(IRS
Employer
|
incorporation
or organization)
|
Identification
No.)
|
o
|
the
Company's history of losses and expectation of further
losses;
|
o
|
the
effect of poor operating results on the
Company;
|
o
|
the
Company's ability to expand its operations in both new and existing
locations and the Company's ability to develop and mine its current and
new sites;
|
o
|
the
Company's ability to raise capital;
|
o
|
the
Company's ability to fully utilize and retain new
executives;
|
o
|
the
impact of litigation, including international
arbitrations;
|
o
|
the
impact of federal, state, local or foreign government
regulations;
|
o
|
the
effect of competition in the mining industry;
and
|
o
|
economic
and political conditions generally.
|
2007
|
2008
|
|||||||||||||||
Quarter
|
High*
|
Low*
|
High*
|
Low*
|
||||||||||||
1st
|
$1.10
|
$0.65 |
$0.70
|
$0.35
|
||||||||||||
2nd
|
$1.05
|
$0.69
|
$0.48
|
$0.20
|
||||||||||||
3rd
|
$1.15
|
$0.51
|
$0.51
|
$0.03
|
||||||||||||
4th
|
$1.01
|
$0.34
|
$0.47
|
$0.06
|
Remaining
available for
|
||||||
Number
of Securities to
|
Weighted
average exercise
|
issuance
under equity
|
||||
be
issues up exercise
|
price
of outstanding
|
compensation
plans
|
||||
of
oustanding options,
|
options,
warrants and
|
(excluding
securities
|
||||
warrants
and right
|
rights
|
reflected
in column (a))
|
||||
Plan
Category
|
(a) (#)
|
(b) ($)
|
(c
) (#)
|
|||
Equity
compensation plans (1)
|
||||||
approved
by security holders
|
1,677,500
|
$0.90
|
1,322,500
|
|||
Equity
compensation plans not
|
||||||
approved
by security holders
|
0
|
0
|
0
|
|||
Total:
|
1,677,500
|
1,322,500
|
Year
Ending December 31,
|
||||||||
2008
|
2007
|
|||||||
Net
loss
|
$ | (8,953,113 | ) | $ | (9,716,880 | ) | ||
Unrealized
gain arising
|
||||||||
during
year
|
$ | 56,704 | $ | 2,194,161 | ||||
Comprehensive
loss
|
$ | (8,896,409 | ) | $ | (7,522,719 | ) |
Exhibit
3.1
|
Amended
and Restated Certificate of Incorporation of the Company, effective
November 20, 2003. (1)
|
Exhibit
3.2
|
Amended
and Restated Bylaws of the Company, effective November 20, 2003.
(2)
|
Exhibit
10.1
|
Employment
Agreement, dated as of January 1, 2007, by and between Global Gold
Corporation and Hrayr
Agnerian.
(3)
|
Exhibit
10.2
|
Labrador
Uranium Claims Agreement, dated January 18, 2007.
(4)
|
Exhibit
10.3
|
Agreement
to Acquire Option on Cochrane Pond Property dated April 12, 2007.
(5)
|
Exhibit
10.4
|
First
Amendment of the January 23, 2006 Share Purchase Agreement (Athelea
Investments), dated as of
May
30, 2007. (6)
|
Exhibit
10.5
|
Employment
Agreement, dated as of June 15, 2007, by and between Global Gold
Corporation and Jan
Dulman.
(7)
|
Exhibit
10.6
|
Employment
Agreement, dated as of June 15, 2007, by and between Global Gold
Corporation and Lester
Caesar.
(8)
|
Exhibit
10.7
|
Amended
Employment Agreement, dated as of June 15, 2007, by
and between Global Gold Corporation
and
Hrayr Agnerian. (9)
|
Exhibit
10.8
|
Nominating
and Governance Charter dated June 15, 2007.
(10)
|
Exhibit
10.9
|
Madre
De Dios Mining Property Joint Venture Agreement and Options for Chiloe and
Ipun Island
properties
dated as of August 9, 2007. (11)
|
Exhibit
10.10
|
Commitment
to Contribute Mining Concession to a Contractual Mining Company
(Unofficial English
Translation)
dated as of August 19, 2007. (12)
|
Exhibit
10.11
|
Contractual
Mining Company Agreement (Unofficial English Translation) dated as
of
October
29, 2007. (13)
|
Exhibit
10.12
|
Amended
Terms for Options on Chiloe and Ipun Island Properties dated March 31,
2008
and
confirmed April 8, 2008. (14)
|
Exhibit
10.13
|
Chiloe
and Ipun Island Properties Sale Agreement dated as of October 3, 2008.
(15)
|
Exhibit
10.14
|
Royalty
Agreement on Cochrane Pond Property, Newfoundland dated as of October 17,
2008. (16)
|
Exhibit
10.15
|
Private
Placement Agreement, dated December 8,
2008.
|
Exhibit
21
|
List
of Subsidiaries.
|
Exhibit
31.1
|
Certification
of Chief Executive Officer Pursuant to Rule 13a-14 (a) of
the
Sarbanes-Oxley
Act of 2002.
|
Exhibit
31.2
|
Certification
of Chief Financial Officer Pursuant to Rule 13a-14 (a) of
the
Sarbanes-Oxley
Act of 2002.
|
Exhibit
32.1
|
Certification
of the Chief Executive Officer and Chief Financial Officer Pursuant to
18
U.S.C. Section 1350, as Adopted Pursuant to
Section
906 of the Sarbanes-Oxley Act of
2002.
|
GLOBAL
GOLD CORPORATION
(Registrant)
|
|||
|
By:
|
/s/ Van Z. Krikorian | |
Van
Z. Krikorian, Chairman, Chief Executive Officer
and
Director
|
|||
April
14, 2009
Date
|
/s/
Jan Dulman
|
4/14/09
|
/s/
Van Z. Krikorian
|
4/14/09
|
|
Jan
Dulman
Chief Financial Officer
|
Van
Z. Krikorian, Chairman, Chief Executive Officer and
Director
|
|||
/s/
Drury J. Gallagher
|
4/14/09
|
/s/
Nicholas J. Aynilian
|
4/14/09
|
|
Drury
J. Gallagher
|
Nicholas
J. Aynilian
|
|||
Chairman
Emeritus,
|
Director
|
|||
Treasurer
and Director
|
||||
|
||||
/s/
Lester S. Caesar
|
4/14/09
|
/s/
Harry Gilmore
|
4/14/09
|
|
Lester
S. Caesar
|
Harry
Gilmore
|
|||
Controller
|
Director
|
|||
/s/
Ian C. Hague
|
4/14/09
|
|||
Ian
C. Hague
|
||||
Director
|
Page
|
|
Report
of Independent Registered Public Accounting
|
|
Firm
- for the years ended December 31, 2008 and 2007
|
F-1
|
Consolidated
Balance Sheets - as of December 31, 2008 and 2007
|
F-2
|
Consolidated
Statements of Operations and Comprehensive Loss -
|
|
for
the years ended December 31, 2008 and 2007 and the
development
|
|
stage
period from January 1, 1995 through December 31, 2008
|
F-3
|
Consolidated
Statements of Changes in Stockholders' Equity (Deficit)
|
|
-
for the development stage period from January 1, 1995
|
|
through
December 31, 2008
|
F-4
to F-6
|
Consolidated
Statements of Cash Flows - for the years ended
|
|
December
31, 2008 and 2007 and the development stage
|
|
period
from January 1, 1995 through December 31, 2008
|
F-7
|
Notes
to Consolidated Financial Statements
|
F-8
to
F-22
|
The
accompanying notes are an integral part of these audited financial
statements
|
GLOBAL
GOLD CORPORATION AND SUBSIDIARIES
|
||||||||||
(A
Development Stage Company)
|
||||||||||
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
Cumulative
amount
|
||||||||||||
from
|
||||||||||||
Year
ended
|
January
1, 1995
|
|||||||||||
December
31,
|
through
|
|||||||||||
2008
|
2007
|
December
31, 2008
|
||||||||||
REVENUES
|
$ | 14,211 | $ | 35,848 | $ | 56,044 | ||||||
EXPENSES:
|
||||||||||||
General
and administrative
|
3,546,952 | 4,946,328 | 17,518,787 | |||||||||
Mine
exploration costs
|
3,127,266 | 6,497,722 | 13,208,713 | |||||||||
Amortization
and depreciation
|
1,221,491 | 895,304 | 2,905,676 | |||||||||
Write-off
on investment
|
- | - | 135,723 | |||||||||
Gain
on sale of investment
|
- | (2,460,137 | ) | (2,779,778 | ) | |||||||
Loss/(Gain)
from investment in joint ventures
|
765,264 | - | (2,373,701 | ) | ||||||||
Interest
expense
|
187,008 | - | 461,008 | |||||||||
Bad
debt expense
|
151,250 | - | 151,250 | |||||||||
Loss/(Gain)
on foreign exchange
|
- | - | 70,971 | |||||||||
Gain
on extinguishment of debt
|
(29,343 | ) | - | (29,343 | ) | |||||||
Interest
income
|
(2,564 | ) | (126,490 | ) | (357,238 | ) | ||||||
TOTAL
EXPENSES
|
8,967,324 | 9,752,727 | 28,912,069 | |||||||||
Loss
from Continuing Operations
|
(8,953,113 | ) | (9,716,880 | ) | (28,856,025 | ) | ||||||
Discontinued
Operations:
|
||||||||||||
Loss
from discontinued operations
|
- | - | 386,413 | |||||||||
Loss
on disposal of discontinued operations
|
- | - | 237,808 | |||||||||
Net
Loss Applicable to Common Shareholders
|
(8,953,113 | ) | (9,716,880 | ) | (29,480,246 | ) | ||||||
Foreign
currency translation adjustment
|
56,704 | 2,194,161 | 2,701,610 | |||||||||
Unrealized
gain on investments
|
- | - | 353,475 | |||||||||
Comprehensive
Net Loss
|
$ | (8,896,409 | ) | $ | (7,522,719 | ) | $ | (26,425,161 | ) | |||
NET
LOSS PER SHARE-BASIC
|
||||||||||||
AND
DILUTED
|
$ | (0.26 | ) | $ | (0.29 | ) | ||||||
WEIGHTED
AVERAGE SHARES
|
||||||||||||
OUTSTANDING
- BASIC AND DILUTED
|
34,251,122 | 33,855,425 |
The
accompanying notes are an integral part of these audited financial
statements
|
GLOBAL
GOLD CORPORATION AND SUBSIDIARIES
|
||
( A
development Stage Enterprise )
|
||
CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(DEFICIT)
|
Deficit
|
||||||||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||||||
Prior
to and
|
Other
|
|||||||||||||||||||||||||||
Additional
|
During
the
|
|
Comprehensive
|
Total
|
||||||||||||||||||||||||
Common
Stock
|
Paid-in
|
Development
|
Treasury
|
Income
|
Stockholders'
|
|||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Stage
|
Stock
|
(Loss)
|
Equity
|
||||||||||||||||||||||
Balance
from February 21, 1980 to December 31, 1994
|
||||||||||||||||||||||||||||
(Note
1)
|
898,074 | $ | 89,807 | $ | 3,147,693 | $ | (2,907,648 | ) | $ | - | $ | - | $ | 329,852 | ||||||||||||||
Adjustment
for the restatement of par value
|
- | (88,909 | ) | 88,909 | - | - | - | - | ||||||||||||||||||||
Issuance
of stock for acquisition of Eyre
|
||||||||||||||||||||||||||||
Recources,
N.L.
|
1,000,000 | 1,000 | 849,000 | - | - | - | 850,000 | |||||||||||||||||||||
Proceeds
received from private placement
|
200,000 | 200 | 421,373 | - | - | - | 421,573 | |||||||||||||||||||||
Net
loss
|
- | - | - | (361,345 | ) | - | - | (361,345 | ) | |||||||||||||||||||
Balance
as December 31, 1995
|
2,098,074 | 2,098 | 4,506,975 | (3,268,993 | ) | - | - | 1,240,080 | ||||||||||||||||||||
Warrants
exercised
|
40 | - | 100 | - | - | - | 100 | |||||||||||||||||||||
Net
loss
|
- | - | - | (668,577 | ) | - | - | (668,577 | ) | |||||||||||||||||||
Balance
as of December 31, 1996
|
2,098,114 | 2,098 | 4,507,075 | (3,937,570 | ) | - | - | 571,603 | ||||||||||||||||||||
Issuance
of common stock
|
2,250,000 | 2,250 | 222,750 | - | - | - | 225,000 | |||||||||||||||||||||
Net
loss
|
- | - | - | (690,747 | ) | - | - | (690,747 | ) | |||||||||||||||||||
Balance
as of December 31, 1997
|
4,348,114 | 4,348 | 4,729,825 | (4,628,317 | ) | - | - | 105,856 | ||||||||||||||||||||
Net
income
|
- | - | - | 34,944 | - | - | 34,944 | |||||||||||||||||||||
Balance
as of December 31, 1998
|
4,348,114 | 4,348 | 4,729,825 | (4,593,373 | ) | - | - | 140,800 | ||||||||||||||||||||
Purchase
of treasury stock
|
- | - | - | - | (60,000 | ) | - | (60,000 | ) | |||||||||||||||||||
Unrealized
loss on investment
|
- | - | - | - | - | (16,000 | ) | (16,000 | ) | |||||||||||||||||||
Net
loss
|
- | - | - | (93,826 | ) | - | - | (93,826 | ) | |||||||||||||||||||
Balance
as of December 31, 1999
|
4,348,114 | 4,348 | 4,729,825 | (4,687,199 | ) | (60,000 | ) | (16,000 | ) | (29,026 | ) | |||||||||||||||||
Issuance
of common stock in connection
|
||||||||||||||||||||||||||||
with
settlement
|
20,000 | 20 | 1,980 | - | - | - | 2,000 | |||||||||||||||||||||
Cancellation
of treasury stock
|
(1,000,000 | ) | (1,000 | ) | (59,000 | ) | - | 60,000 | - | - | ||||||||||||||||||
Settlement
of accrued salary
|
1,000,000 | 1,000 | 161,500 | - | - | - | 162,500 | |||||||||||||||||||||
Sale
of warrants
|
- | - | 650 | - | - | - | 650 | |||||||||||||||||||||
Unrealized
loss on investment
|
- | - | - | - | - | (90,000 | ) | (90,000 | ) | |||||||||||||||||||
Net
loss
|
- | - | - | (33,341 | ) | - | - | (33,341 | ) |
Balance
as December 31, 2000
|
4,368,114 | 4,368 | 4,834,955 | (4,720,540 | ) | - | (106,000 | ) | 12,783 | |||||||||||||||||||
Net
loss
|
- | - | - | (26,832 | ) | - | - | (26,832 | ) | |||||||||||||||||||
Unrealized
loan on investment
|
- | - | - | - | - | (15,000 | ) | (15,000 | ) | |||||||||||||||||||
Balance
as of December 31, 2001
|
4,368,114 | 4,368 | 4,834,955 | (4,747,372 | ) | - | (121,000 | ) | (29,049 | ) | ||||||||||||||||||
Issuance
of common stock for compensation
|
200,000 | 200 | 9,800 | - | - | - | 10,000 | |||||||||||||||||||||
Net
loss
|
- | - | - | (60,113 | ) | - | - | (60,113 | ) | |||||||||||||||||||
Unrealized
gain on investment
|
- | - | - | - | - | 247,406 | 247,406 | |||||||||||||||||||||
Balance
as of December 31, 2002
|
4,568,114 | 4,568 | 4,844,755 | (4,807,485 | ) | - | 126,406 | 168,244 | ||||||||||||||||||||
Issuance
of common stock for cash:
|
||||||||||||||||||||||||||||
at
$0.25 per share, January
|
350,000 | 350 | 87,150 | - | - | - | 87,500 | |||||||||||||||||||||
at
$0.25 per share, July
|
1,000,000 | 1,000 | 231,500 | - | - | - | 232,500 | |||||||||||||||||||||
at
$0.50 per share, October
|
100,000 | 100 | 46,400 | - | - | - | 46,500 | |||||||||||||||||||||
at
$0.50 per share, October
|
400,000 | 400 | 185,600 | - | - | - | 186,000 | |||||||||||||||||||||
Issuance
of common stock for compensation:
|
||||||||||||||||||||||||||||
at
$0.25 per share, February
|
1,800,000 | 1,800 | (1,800 | ) | - | - | - | - | ||||||||||||||||||||
at
$0.25 per share, June
|
900,000 | 900 | (900 | ) | - | - | - | - | ||||||||||||||||||||
at
$0.25 per share, December
|
90,000 | 90 | (90 | ) | - | - | - | - | ||||||||||||||||||||
Amortization
of deferred compensation
|
- | - | 165,802 | - | - | - | 165,802 | |||||||||||||||||||||
Issuance
of common stock for services:
|
||||||||||||||||||||||||||||
at
$0.25 per share, January
|
500,000 | 500 | 24,500 | - | - | - | 25,000 | |||||||||||||||||||||
at
$0.25 per share, April
|
250,000 | 250 | 62,250 | - | - | - | 62,500 | |||||||||||||||||||||
Shares
cancelled in September, which were
|
||||||||||||||||||||||||||||
issued
in January
|
(500,000 | ) | (500 | ) | (24,500 | ) | - | - | - | (25,000 | ) | |||||||||||||||||
Shares
issued at $0.25 per share for
|
||||||||||||||||||||||||||||
accounts
payable in April
|
100,000 | 100 | 24,900 | - | - | - | 25,000 | |||||||||||||||||||||
Fractional
share adjustment
|
20 | - | - | - | - | - | - | |||||||||||||||||||||
Unrealized
gain on investment
|
- | - | - | - | - | (95,278 | ) | (95,278 | ) | |||||||||||||||||||
Net
loss
|
- | - | - | (616,820 | ) | - | - | (616,820 | ) | |||||||||||||||||||
Balance
as of December 31, 2003
|
9,558,134 | 9,558 | 5,645,567 | (5,424,305 | ) | - | 31,128 | 261,948 | ||||||||||||||||||||
Issuance
of common stock for compensation
|
250,000 | 250 | (250 | ) | - | |||||||||||||||||||||||
Forfeiture
of common stock for compensation
|
(526,833 | ) | (527 | ) | 527 | (0 | ) | |||||||||||||||||||||
Sale
of common stock
|
3,000,000 | 3,000 | 1,482,000 | - | - | - | 1,485,000 | |||||||||||||||||||||
Issuance
of common stock for services
|
90,000 | 90 | (90 | ) | - | |||||||||||||||||||||||
Issuance
of common stock for payable
|
240,000 | 240 | 113,260 | 113,500 | ||||||||||||||||||||||||
Amortization
of unearned compensation
|
316,756 | 316,756 | ||||||||||||||||||||||||||
Net
loss
|
(688,039 | ) | - | (688,039 | ) | |||||||||||||||||||||||
Unrealized
gain on investment
|
- | - | - | - | - | (31,128 | ) | (31,128 | ) | |||||||||||||||||||
Balance
as of December 31, 2004
|
12,611,301 | 12,611 | 7,557,770 | (6,112,344 | ) | - | - | 1,458,037 | ||||||||||||||||||||
Issuance
of common stock for compensation:
|
||||||||||||||||||||||||||||
at
$0.50 per share, January
|
850,000 | 850 | (850 | ) | - | - | - | - | ||||||||||||||||||||
at
$1.00 per share, June
|
170,000 | 170 | (170 | ) | - | - | - | - | ||||||||||||||||||||
at
$1.50 per share, December
|
45,000 | 45 | (45 | ) | - | - | - | - | ||||||||||||||||||||
Sale
of common stock
|
4,000,000 | 4,000 | 2,996,000 | - | - | - | 3,000,000 | |||||||||||||||||||||
Less:
Selling expense for sale of common stock
|
- | (39,000 | ) | (39,000 | ) | |||||||||||||||||||||||
Exercise
of warrants
|
220,000 | 220 | 54,780 | 55,000 | ||||||||||||||||||||||||
Amortization
of unearned compensation
|
292,994 | 292,994 | ||||||||||||||||||||||||||
Net
loss
|
(2,309,187 | ) | (2,309,187 | ) | ||||||||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | - | - | (38,511 | ) | (38,511 | ) |
Balance
as of December 31, 2005
|
17,896,301 | 17,896 | 10,861,479 | (8,421,531 | ) | - | (38,511 | ) | 2,419,333 | |||||||||||||||||||
Issuance
of common stock for compensation:
|
||||||||||||||||||||||||||||
at
$1.50 per share, February
|
274,000 | 274 | 35,726 | - | - | - | 36,000 | |||||||||||||||||||||
at
$1.70 per share, June
|
925,000 | 925 | (925 | ) | - | - | - | - | ||||||||||||||||||||
at
$1.25 per share, September
|
200,000 | 200 | (200 | ) | - | - | - | - | ||||||||||||||||||||
Forfeiture
of common stock for compensation
|
(40,000 | ) | (40 | ) | 40 | - | ||||||||||||||||||||||
Issuance
of common stock for payable:
|
||||||||||||||||||||||||||||
at
$1.15 per share, January
|
100,000 | 100 | 114,900 | 115,000 | ||||||||||||||||||||||||
Sale
of common stock
|
10,400,000 | 10,400 | 12,989,588 | - | - | - | 12,999,988 | |||||||||||||||||||||
Less:
Selling expense for sale of common stock
|
- | (764,957 | ) | (764,957 | ) | |||||||||||||||||||||||
Issuance
of options for compensation
|
225,894 | 225,894 | ||||||||||||||||||||||||||
Exercise
of warrants
|
3,000,000 | 3,000 | 2,247,000 | 2,250,000 | ||||||||||||||||||||||||
Accrual
of stock bonuses issued in 2007
|
(27,950 | ) | (27,950 | ) | ||||||||||||||||||||||||
Amortization
of unearned compensation
|
1,017,742 | 1,017,742 | ||||||||||||||||||||||||||
Net
loss
|
(5,296,370 | ) | (5,296,370 | ) | ||||||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | - | 842,731 | 842,731 | |||||||||||||||||||||
Balance
as of December 31, 2006
|
32,755,301 | 32,755 | 26,698,337 | (13,717,901 | ) | - | 804,220 | 13,817,411 | ||||||||||||||||||||
Issuance
of common stock for compensation:
|
||||||||||||||||||||||||||||
at
$0.88 per share, January 1
|
83,334 | 83 | (83 | ) | - | - | - | (0 | ) | |||||||||||||||||||
at
$0.86 per share, January 11
|
50,000 | 50 | (50 | ) | - | - | - | - | ||||||||||||||||||||
at
$0.83 per share, June
|
286,666 | 287 | (287 | ) | - | - | - | (0 | ) | |||||||||||||||||||
Forfeiture
of common stock for compensation
|
(172,500 | ) | (173 | ) | (3,786 | ) | (3,958 | ) | ||||||||||||||||||||
Issuance
of common stock for payable:
|
||||||||||||||||||||||||||||
at
$2.00 per share, September (2006)
|
500,000 | 500 | 999,500 | 1,000,000 | ||||||||||||||||||||||||
at
$0.86 per share, January
|
63,250 | 63 | 54,332 | 54,395 | ||||||||||||||||||||||||
at
$0.85 per share, April
|
150,000 | 150 | 127,350 | 127,500 | ||||||||||||||||||||||||
Issuance
of options for compensation
|
481,446 | 481,446 | ||||||||||||||||||||||||||
Exercise
of warrants
|
150,000 | 150 | 16,350 | 16,500 | ||||||||||||||||||||||||
Accrual
of stock bonuses issued in 2008
|
(14,850 | ) | (14,850 | ) | ||||||||||||||||||||||||
Accrual
of interest on note
|
(26,612 | ) | (26,612 | ) | ||||||||||||||||||||||||
Amortization
of unearned compensation
|
986,500 | 986,500 | ||||||||||||||||||||||||||
Net
loss
|
(9,716,880 | ) | (9,716,880 | ) | ||||||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | - | 1,307,480 | 1,307,480 | |||||||||||||||||||||
Balance
as of December 31, 2007
|
33,866,051 | 33,866 | 29,318,147 | (23,434,781 | ) | - | 2,111,700 | 8,028,932 | ||||||||||||||||||||
Issuance
of common stock for compensation:
|
||||||||||||||||||||||||||||
at
$0.17 per share, November 11
|
200,000 | 200 | 33,800 | - | - | - | 34,000 | |||||||||||||||||||||
at
$0.10 per share, December 10
|
20,000 | 20 | (20 | ) | - | - | - | - | ||||||||||||||||||||
Issuance
of common stock for payable:
|
||||||||||||||||||||||||||||
at
$0.55 per share, February 11
|
153,750 | 154 | 84,409 | 84,563 | ||||||||||||||||||||||||
at
$0.17 per share, November 11
|
100,000 | 100 | 16,900 | 17,000 | ||||||||||||||||||||||||
Issuance
of options for compensation
|
279,925 | 279,925 | ||||||||||||||||||||||||||
Conversion
of note receivable into shares
|
(152,778 | ) | (153 | ) | (48,750 | ) | (48,903 | ) | ||||||||||||||||||||
Issuance
of common stock for acquistion:
|
||||||||||||||||||||||||||||
at
$0.45 per share, April 8
|
250,000 | 250 | 112,250 | 112,500 | ||||||||||||||||||||||||
Accrual
of interest on note
|
(2,555 | ) | (2,555 | ) | ||||||||||||||||||||||||
Sale
of common stock for cash
|
4,750,000 | 4,750 | 470,250 | - | - | - | 475,000 | |||||||||||||||||||||
Amortization
of unearned compensation
|
717,994 | 717,994 | ||||||||||||||||||||||||||
Net
loss
|
(8,953,113 | ) | (8,953,113 | ) | ||||||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | - | 1,195,490 | 1,195,490 | |||||||||||||||||||||
Balance
as of December 31, 2008
|
39,187,023 | $ | 39,187 | $ | 30,982,350 | $ | (32,387,894 | ) | $ | - | $ | 3,307,190 | $ | 1,940,833 |
GLOBAL
GOLD CORPORATION AND SUBSIDIARIES
|
|
(A
Development Stage Enterprise)
|
|
CONSOLIDATED
STATEMENTS OF CASH
FLOWS
|
The
accompanying notes are an integral part of these audited financial
statements
|
Year
Ending December 31,
|
||||||||
2008
|
2007
|
|||||||
Net
loss
|
$ | (8,953,113 | ) | $ | (9,716,880 | ) | ||
Unrealized
gain arising
|
||||||||
during
year
|
$ | 56,704 | $ | 2,194,161 | ||||
Comprehensive
loss
|
$ | (8,896,409 | ) | $ | (7,522,719 | ) |
Year
|
Amount
|
|||
2009
|
$ | 464,632 | ||
2010
|
$ | 464,632 | ||
2011
|
$ | 464,632 | ||
2012
|
$ | 464,632 | ||
2013
|
$ | 464,632 | ||
thereafter
|
$ | 1,137,610 |
2008
|
2007
|
|||||||
Property,
plant and equipment
|
$ | 4,393,622 | $ | 3,690,571 | ||||
Less
accumulated depreciation
|
(1,591,207 | ) | (854,453 | ) | ||||
$ | 2,802,415 | $ | 2,836,118 |
2008
|
2007
|
|||||||
Drilling
work payable
|
$ | 292,417 | $ | 1,070,459 | ||||
Accounts
payable
|
1,501,178 | 285,468 | ||||||
Accrued
expenses
|
60,039 | 231,286 | ||||||
$ | 1,853,634 | $ | 1,587,213 |
Year
Ending December 31,
|
||||||||
2008
|
2007
|
|||||||
Armenia
|
$ | 5,896,980 | $ | 6,703,566 | ||||
Chile
|
1,991,088 | 2,205,715 | ||||||
Canada
|
40,882 | 368,382 | ||||||
United
States
|
287,449 | 338,482 | ||||||
$ | 8,216,399 | $ | 9,616,145 |
Year
Ending December 31,
|
||||||||
2008
|
2007
|
|||||||
Armenia
|
$ | 5,118,742 | $ | 4,862,395 | ||||
Chile
|
865,482 | 142,058 | ||||||
Canada
|
405,085 | 702,426 | ||||||
United
States
|
2,563,804 | 4,010,001 | ||||||
$ | 8,953,113 | $ | 9,716,880 |
Year
|
Amount
|
|||
2009
|
$ | 570,388 | ||
Thereafter
|
- |
Deferred
tax assets:
|
||||
Net
operating loss carryforward
|
$ | 10,481,000 | ||
Stock
option expense
|
395,000 | |||
Net
deferred tax asset
|
10,876,000 | |||
Valuation
allowance
|
(10,876,000 | ) | ||
$ | - |
2008
|
2007
|
|||||||
Income
tax benefit computed at statutory rate
|
$ | 3,133,000 | $ | 3,401,000 | ||||
State
tax benefit (net of federal)
|
448,000 | 486,000 | ||||||
Permanent
differences (book stock comp versus
|
||||||||
tax
stock comp)
|
(7,000 | ) | (50,000 | ) | ||||
Increase
in valuation allowance
|
(3,574,000 | ) | (3,837,000 | ) | ||||
Provision
for income taxes
|
$ | - | $ | - |
WARRANTS
|
OPTIONS
|
STOCK
AWARDS
|
||||||||||||||||||||||
Shares
|
Weighted
|
Shares
|
Weighted
|
Restricted
|
Weighted
|
|||||||||||||||||||
Underlying
|
Average
|
Underlying
|
Average
|
Stock
|
Average
|
|||||||||||||||||||
Warrants
|
Exercise
Price
|
Warrants
|
Exercise
Price
|
Awards
|
Market
Price
|
|||||||||||||||||||
Outstanding
at December 31, 2006
|
6,466,666 | $ | 1.82 | 662,500 | $ | 0.95 | 5,137,168 | $ | 0.70 | |||||||||||||||
Granted
|
- | - | 865,000 | 0.85 | 420,000 | 0.84 | ||||||||||||||||||
Canceled
|
(3,000,000 | ) | 1.42 | (100,000 | ) | 1.25 | (172,500 | ) | 1.22 | |||||||||||||||
Exercised
|
- | - | (150,000 | ) | 0.11 | - | - | |||||||||||||||||
Sold
in units
|
- | - | - | - | - | - | ||||||||||||||||||
Outstanding
at December 31, 2007
|
3,466,666 | $ | 2.00 | 1,277,500 | $ | 0.93 | 5,384,668 | $ | 0.69 | |||||||||||||||
Granted
|
4,750,000 | 0.15 | 500,000 | 0.45 | 220,000 | 0.16 | ||||||||||||||||||
Canceled
|
(3,466,666 | ) | 2.00 | (100,000 | ) | 1.25 | - | - | ||||||||||||||||
Exercised
|
- | - | - | - | - | - | ||||||||||||||||||
Sold
in units
|
- | - | - | - | - | - | ||||||||||||||||||
Outstanding
at December 31, 2008
|
4,750,000 | $ | 0.15 | 1,677,500 | $ | 0.90 | 5,604,668 | $ | 0.67 | |||||||||||||||
Vested
shares and fair value
|
4,750,000 | $ | 0.15 | 1,602,500 | $ | 0.90 | 5,282,668 | $ | 0.63 | |||||||||||||||
Total
intrinsic value
|
- | - | - | - | - | - |
CAPTION
|
PAGE
|
Terms
of the Offering
|
6
|
Form
10-KSB filed by the Company for the year ended December 31,
2007
|
Exhibit
A
|
Form
10-Q filed by the Company for the quarter ended September 30,
2008
|
Exhibit
B
|
Subscription
Agreements
|
Appendix
A
|
Accredited
Investor Suitability Questionnaire
|
Appendix
B
|
Registration
Rights Agreement
|
Appendix
C
|
Form
of Warrant
|
Appendix
D
|
Business
|
The
Company is presently engaged in developing and acquiring interests in gold
and other mineral-bearing properties in Chile, Armenia, and
Canada. The Company is currently in the development stage and
has only received minor revenues from mining activity. Although, in
December 2006, the Company restructured the Aigedzor Mining Company Joint
Venture in Armenia in exchange for: one million dollars; a 2.5% Net
Smelter Return royalty payable on all products produced from the Lichkvaz
and Terterasar mines as well as from any mining properties acquired in a
20 kilometer radius of the town of Aigedzor in southern Armenia; and five
million shares of Iberian Resources Limited's common stock. In 2007,
Iberian Resources Limited merged into Tamaya Resources Limited and the
five million Iberian shares were converted into twenty million shares of
Tamaya Resources Limited. The Company previously engaged in
developing a gold mining project in Armenia under a joint venture with the
Armenian state gold enterprise and in 1997 sold its interest in the joint
venture to a third party, which was later acquired by Vedanta Resources
Ltd.
|
Securities
Offered
|
(a)
The
Company is offering to sell a minimum of 500,000 and a maximum of
10,000,000 shares of its common stock at a purchase price of $.10 per
share, with a minimum purchase of 500,000 shares, for the purchase price
of $50,000 payable in cash upon subscription. Each share
purchased shall also entitle the purchaser to a warrant for the purchase
of an additional one share at the price per share of $.15 exercisable on
or before December 9, 2013, unless mutually agreed
otherwise.
|
(b)
|
The
Company reserves the right to sell less than a minimum of 500,000 shares
to any investor.
|
Prior
to Offering
|
34,417,023
shares as of December 1, 2008
1
|
After
Offering
|
Up
to 44,417,023 shares as of the close of the Offering and up to 54,417,023
if all of the warrants and options are exercised
1
|
Use
of Proceeds
|
For
partial payment of necessary expenses related to mining development and
property acquisition purposes in Chile, Canada, and Armenia, including
primarily the development and production from the gold and
silver bearing properties in Armenia including Tukhmanuk,
Marjan, and Getik, development, plant acquisition and
operations for an approximately 20,000 hectare gold mineral
bearing property in Chile, and closing costs for the Company’s
Global Gold Uranium, LLC subsidiary’s operations in Canada, as well as
general corporate and working capital
purposes.
|
Who
May Invest
|
The
shares of common stock of the Company are being offered pursuant to this
Memorandum solely to persons (i) who are “accredited investors” (as
defined in Regulation D promulgated under the Act) in reliance on
Regulation D or (ii) who are non U.S. persons (as defined in Regulation S
promulgated under the Act) in an offshore transaction (as defined in
Regulation S) in reliance on Regulation S. See the Subscription
Agreement attached hereto as Appendix A and the Accredited Investor
Suitability Questionnaire attached hereto as Appendix
B.
|
Risk
Factors
|
The
shares of common stock of the Company offered hereby involve a high degree
of risk, including, without limitation, the
following:
|
(i)
|
the
Company is a development stage company and has not generated sustained,
significant mining revenues to date but has developed and sold interests
in Armenian gold mining joint
ventures;
|
(ii)
|
the
Company requires significant amounts of additional funding to continue its
planned development at its current properties as described in the
Company’s last 10-KSB and other public
filings;
|
(iii)
|
the
Company may not be able to obtain adequate insurance protection for its
potential investments in the mining
projects;
|
(iv)
|
the
prices of gold and other minerals historically fluctuate and are affected
by numerous factors beyond the Company’s control and no assurance can be
given that any reserves proved or estimated will actually be
produced;
|
(v)
|
the
Company’s proposed mining operations will be subject to a variety of
potential engineering, seismic and other risks, some of which cannot be
predicted and which may not be covered by
insurance;
|
(vi)
|
the
Company will be subject to intense competition in its proposed mining
activity and many mining companies have substantially greater resources
than those possessed by the
Company;
|
(vii)
|
the
shares of common stock are subject to restrictions on
transfer;
|
(viii)
|
the
SEC in any future review of the Company’s filings of any kind with it may
question the classification of the Company for federal securities law
purposes (although it has not done to date), which could adversely affect
the future operations of the Company or the public trading of its shares
of common stock;
|
(ix)
|
an
investor may lose his entire investment in the shares of common
stock;
|
(x)
|
the
Company’s senior management, and one of its directors own approximately
19% of the shares of the Company’s common stock and, if they act jointly
with the shareholders associated with Firebird Management, LLC which own
approximately 28.1% of the shares of the Company’s common stock, will be
able to effectively determine the vote on any matter being voted on by the
Company’s stockholders; and
|
(xi)
|
the
value of the Company’s assets may be adversely affected by political,
economic, regulatory, and other factors in Armenia, Canada, and
Chile;
|
(xii)
|
the
Company was subject in Armenia to corrupt practices which have been
reported to the authorities, made the subject of international
arbitrations, and while the Company has amicably and favorably settled its
disputes with the Armenian Government, as described in the Company’s
public filings, it has unresolved claims against certain individuals and
entities which may require further arbitration or litigation, there can be
no assurances that the Company will be able to resolve these
problems.
|
Registration
Rights
|
The
investors who purchase any shares of common stock pursuant to the Offering
will be restricted from selling, transferring, pledging or otherwise
disposing of any shares due to restrictions under applicable Federal and
state securities law. The Company has agreed to give each
investor on demand (commencing 90 days after the closing of this
Offering), piggyback, and certain other registration rights (provided
investors with not less than 51% of the shares sold in the Offering so
request) with respect to the shares of common stock sold in the
Offering. See the Subscription Agreement attached hereto as
Appendix A and the Registration Rights Agreement attached hereto as
Appendix C.
|
Listing
|
The
Company’s shares of common stock are currently not listed for trading on
any stock exchange. The Company’s shares are publicly trading
on the OTCBB, over-the-counter market in the United States (the
application for such trading was approved by the National Association of
Securities Dealers, Inc. and the Company’s common stock became eligible
for trading on the OTCBB on March 31,
2004).
|
How
to Invest
|
Each
investor must:
|
(a)
|
execute and deliver
the Subscription
Agreement
attached hereto as Appendix A, and pay the subscription price for the
shares of common stock as provided
therein;
|
(b)
|
execute and deliver
the Accredited Investor
Suitability
Questionnaire attached hereto as Appendix B (for U.S. investors
only);
|
(c)
|
execute
and deliver the Registration Rights Agreement attached hereto as Appendix
C; and
|
(d)
|
deliver
all of the signed documents
to
the Company.
|
|
(iii)
|
an
executed copy of the Accredited Investor Suitability Questionnaire;
and
|
|
(iv)
|
an
executed copy of the Registration Rights
Agreement.
|
ENTITY
SUBSCRIBERS SIGN HERE:
|
INDIVIDUAL
SUBSCRIBERS SIGN HERE:
|
____________________________________ | _____________________________________ |
Print Name of Subscriber | Print Name of Subscriber |
By:_________________________________ | _____________________________________ |
Signature | |
____________________________________ | _____________________________________ |
Print Name and Title of Person Signing | Signature of Joint Subscriber, if any |
Mailing Address: | Mailing Address: |
____________________________________ | _____________________________________ |
Street Address | Street Address |
____________________________________ | _____________________________________ |
City, State and Zip Code | City, State and Zip Code |
____________________________________ | _____________________________________ |
Taxpayer Identification Number | Social Security Number of Subscriber |
____________________________________ | _____________________________________ |
Country of incorporation | Social Security Number of Joint Subscriber |
_____________________________________ | |
Passport number |
__________
|
Individual
|
__________
|
Tenants-in-common
|
__________
|
Joint
tenants with right of survivorship (each must
sign)
|
__________
|
Community
property.
1
|
__________
|
Partnership
|
__________
|
Corporation
|
__________
|
Limited
Liability Company
|
__________
|
As
custodian, trustee or agent for
___________________________________
|
|
3.
|
MISCELLANEOUS
.
|
|
IN
WITNESS WHEREOF, the undersigned have executed this Agreement on the date
first above written.
|
|
GLOBAL
GOLD CORPORATION
|
|
By:
__________________________________
|
|
Van
Z. Krikorian, Chairman
|
and
Chief Executive
Officer
|
|
No.
of Shares
|
|
Purchased | SHAREHOLDER |
_____________________________________ | |
_____________________________________ | |
By: __________________________________ |
No. ________ | Right to Purchase Shares of |
Common Stock of Global Gold Corporation |
|
(a)
|
The
term "Company" shall include Global Gold Corporation and any corporation
which shall succeed or assume the obligations of the Company
hereunder.
|
|
(b)
|
The
term "Common Stock" includes the Company's Common Stock, $.001 par value
per share, as authorized on the date hereof and any other securities into
which or for which any of such Common Stock may be converted or exchanged
pursuant to a plan of recapitalization, reorganization, merger, sale of
assets or otherwise.
|
|
(a)
|
other
or additional stock or other securities or property (other than cash) by
way of dividend, or
|
|
(b)
|
any
cash (excluding cash dividends payable solely out of earnings or earned
surplus of the Company), or
|
|
(c)
|
other
or additional stock or other securities or property (including cash) by
way of spin-off, split-up, reclassification, recapitalization, combination
of shares or similar corporate
rearrangement,
|
4.
|
Adjustment for
Reorganization, Consolidation, Merger,
etc
.
|
To:
|
Global
Gold Corporation
|
State
or Other
|
Date
of
|
|||||
Jurisdiction
of
|
Incorporation,
|
Ownership
|
||||
Incorporation
|
Organization
|
(Direct
or
|
||||
Subsidiary
|
or
Organization
|
or
Acquisition
|
Indirect)
|
|||
1.Global
Oro LLC
|
Delaware
|
2003
|
100%
|
|||
2.Global
Plata LLC
|
Delaware
|
2003
|
100%
|
|||
3.Global
Gold Mining LLC
|
Delaware
|
2003
|
100%
|
|||
4.Global
Gold Hankavan LLC
|
Armenia
|
2003
|
100%
|
|||
5.Mego-Gold
LLC
|
Armenia
|
2005
|
100%
|
|||
6.Getik
Mining Company LLC
|
Armenia
|
2006
|
100%
|
|||
7.Global
Gold Uranium LLC
|
Delaware
|
2007
|
100%
|
|||
8.Global
Gold Armenia, LLC
|
Delaware
|
2003
|
100%
|
|||
9.Minera
Global Chile Limitada
|
Chile
|
2004
|
100%
|
|||
10.Compania
Minera Global Gold Valdivia S.C.M.
|
Chile
|
2007
|
51%
|
Date:
April 14, 2009
|
/s/
Jan E. Dulman
Jan
E. Dulman
Chief
Financial Officer
|
Date:
April 14, 2009
|
/s/
Van Z. Krikorian
Van
Z. Krikorian
Chairman
and Chief Executive
Officer
|
Date:
April 14, 2009
|
/s/
Jan E. Dulman
Jan
E. Dulman
Chief
Financial Officer
|