UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(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, 2010

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ______to ______

Commission file number 02-69494

GLOBAL GOLD CORPORATION

(Exact name of small business issuer in its charter)

DELAWARE / 13-3025550
(State or other jurisdiction of / (IRS Employer
incorporation or organization) / Identification No.)

45 East Putnam Avenue, Greenwich, CT 06830

(Address of principal executive offices)

(203) 422-2300

(Issuer's telephone number)

Not applicable

(Former name, former address and former fiscal year, if changed

since last report)

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter 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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer / o / Accelerated filer / o
Non-accelerated filer / o (Do not check if smaller reporting company) / Smaller reporting company / x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes o No o . Not applicable.

As of August 20, 2010 there were 41,272,856 shares of the issuer's Common Stock outstanding.

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION

Item 1. / Consolidated Financial Statements (Unaudited)
Consolidated Balance Sheets as of June 30, 2010 and
as of December 31, 2009 (Audited) / 3
Consolidated Statements of Operations for the three months and six months ended
June 30, 2010 and June 30, 2009 and for the exploration stage
period from January 1, 1995 (inception) through June 20, 2010 / 4
Consolidated Statements of Cash Flows for the three months and six months ended
June 30, 2010 and June 30, 2009 and for the exploration stage
period from January 1, 1995 (inception) through June 30, 2010 / 5
Notes to Consolidated Financial Statements (Unaudited) / 6
Item 2. / Management's Discussion and Analysis or Plan of Operation / 22
Item 3. / Quantitative and Qualitative Disclosures About Market Risk / 24
Item 4. / Controls and Procedures / 24

PART II OTHER INFORMATION

Item 1. / Legal Proceedings / 25
Item 2. / Unregistered Sale of Equity Securities and Use of Proceeds / 25
Item 3. / Defaults Upon Senior Securities / 25
Item 4. / Submission of Matters to a Vote of Security Holders / 25
Item 5. / Other Information / 25
Item 6. / Exhibits / 26
SIGNATURES / 28
CERTIFICATIONS

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

GLOBAL GOLD CORPORATION AND SUBSIDIARIES
(An Exploration Stage Company)
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, / December 31,
2010 / 2009
(Unaudited) / (Audited)
CURRENT ASSETS:
Cash / $ / 38,011 / $ / 29,551
Restricted cash / 2,466,724 / -
Inventories / 913,188 / 946,369
Tax refunds receivable / 146,820 / 147,919
Prepaid expenses / 2,996 / 2,986
Other current assets / 128,445 / 10,173
TOTAL CURRENT ASSETS / 3,696,184 / 1,136,998
LICENSES, net of accumulated amortization of $2,109,278 and $1,876,971, respectively / 2,763,823 / 2,996,130
DEPOSITS ON CONTRACTS AND EQUIPMENT / 351,168 / 369,425
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $2,350,809 and $1,982,761, respectively / 1,490,647 / 1,753,840
$ / 8,301,822 / $ / 6,256,393
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses / $ / 2,447,266 / $ / 2,085,172
Wages payable / 1,326,170 / 1,174,547
Advance from customer / 432,246 / -
Secured line of credit - short term portion / 578,118 / 486,800
Current portion of note payable to Directors / 5,093,990 / 4,183,239
TOTAL CURRENT LIABILITIES / 9,877,789 / 7,929,758
SECURED LINE OF CREDIT - LONG TERM PORTION / 2,291,667 / 57,111
NOTE PAYABLE TO DIRECTORS / - / 729,167
TOTAL LIABILITIES / 12,169,456 / 8,716,036
STOCKHOLDERS' DEFICIT
Common stock $0.001 par, 100,000,000 shares authorized; 41,152,856
at June 30, 2010 and December 31, 2009, shares issued and outstanding / 41,153 / 41,153
Additional paid-in-capital / 31,434,828 / 31,399,576
Accumulated deficit prior to development stage / (2,907,648 / ) / (2,907,648 / )
Deficit accumulated during the development stage / (35,417,163 / ) / (33,800,807 / )
Accumulated other comprehensive income / 2,981,196 / 2,808,083
TOTAL STOCKHOLDERS' DEFICIT / (3,867,634 / ) / (2,459,643 / )
$ / 8,301,822 / $ / 6,256,393

The accompanying notes are an integral part of these unaudited consolidated financial statements

3

GLOBAL GOLD CORPORATION AND SUBSIDIARIES
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Cumulative amount
from
Three Months Ended / Six Months Ended / January 1, 1995
June 30, / June 30, / through
2010 / 2009 / 2010 / 2009 / June 30, 2010
(Unaudited) / (Unaudited) / (Unaudited) / (Unaudited) / (Unaudited)
REVENUES / $ / - / $ / 62,289 / $ / 94,943 / $ / 62,289 / $ / 287,628
COST OF GOODS SOLD / - / 31,834 / 32,855 / 31,834 / 96,667
GROSS PROFIT / - / 30,455 / 62,088 / 30,455 / 190,961
EXPENSES:
General and administrative / 420,766 / 638,250 / 823,070 / 1,198,290 / 20,493,549
Mine exploration costs / 129,282 / 458,291 / 215,713 / 718,413 / 14,089,879
Amortization and depreciation / 274,337 / 268,973 / 544,861 / 559,451 / 4,614,190
Write-off on investment / - / - / - / - / 176,605
Gain on sale of investment / - / - / - / - / (2,779,778 / )
Loss/(Gain) from investment in joint ventures / (192,977 / ) / - / (192,977 / ) / - / (2,616,678 / )
Interest expense / 156,044 / 96,503 / 289,609 / 216,132 / 1,310,024
Bad debt expense / - / - / - / - / 151,250
Loss on foreign exchange / - / - / - / - / 193,852
Gain on extinguishment of debt / - / - / - / - / (289,766 / )
Interest income / (1,751 / ) / - / (1,833 / ) / (155 / ) / (359,226 / )
TOTAL EXPENSES / 785,702 / 1,462,016 / 1,678,444 / 2,692,130 / 34,983,903
Loss from Continuing Operations / (785,702 / ) / (1,431,561 / ) / (1,616,356 / ) / (2,661,675 / ) / (34,792,942 / )
`
Discontinued Operations:
Loss from discontinued operations / - / - / - / - / 386,413
Loss on disposal of discontinued operations / - / - / - / - / 237,808
Net Loss Applicable to Common Shareholders / (785,702 / ) / (1,431,561 / ) / (1,616,356 / ) / (2,661,675 / ) / (35,417,163 / )
Foreign currency translation adjustment / 34,994 / 453 / 178,590 / (5,462 / ) / 2,633,198
Unrealized gain/(loss) on investments / (5,477 / ) / - / (5,477 / ) / - / 347,998
Comprehensive Net Loss / $ / (756,184 / ) / $ / (1,431,108 / ) / $ / (1,443,243 / ) / $ / (2,667,137 / ) / $ / (32,435,967 / )
NET LOSS PER SHARE-BASIC
AND DILUTED / $ / (0.02 / ) / $ / (0.04 / ) / $ / (0.04 / ) / $ / (0.07 / )
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC AND DILUTED / 41,152,856 / 39,344,532 / 41,152,856 / 39,266,213

The accompanying notes are an integral part of these unaudited consolidated financial statements

4

GLOBAL GOLD CORPORATION AND SUBSIDIARIES

(An Exploration Stage Enterprise)

CONSOLIDATED STATEMENTS OF CASH FLOWS

Cumulative amount
from
January 1, 2010 / January 1, 2009 / January 1, 1995
through / through / through
June 30, 2010 / June 30, 2009 / June 30, 2010
(Unaudited) / (Unaudited) / (Unaudited)
OPERATING ACTIVITIES:
Net loss / $ / (1,616,356 / ) / $ / (2,661,675 / ) / $ / (35,417,164 / )
Adjustments to reconcile net loss
to net cash used in operating activities:
Amortization of unearned compensation / 30,526 / 210,116 / 3,817,233
Stock option expense / 4,726 / 52,058 / 1,122,264
Amortization expense / 232,307 / 242,849 / 2,334,962
Depreciation expense / 312,554 / 316,602 / 2,505,136
Accrual of stock bonuses / - / - / 56,613
Write-off of investment / - / - / 176,605
Loss on disposal of discontinued operations / - / - / 237,808
Loss/(Gain) from investment in joint ventures / (192,977 / ) / - / (2,566,678 / )
Gain on extinguishment of debt / - / - / (289,766 / )
Gain on sale of investments / - / - / (2,779,778 / )
Bad debt expense / - / - / 151,250
Other non-cash expenses / - / - / 155,567
Changes in assets and liabilities:
Other current and non current assets / 16,582 / - / (1,790,605 / )
Accounts payable and accrued expenses / 344,340 / - / 2,937,130
Accrued interest / 247,314 / 51,463 / 933,623
Wages payable / 151,623 / 661,038 / 1,326,170
NET CASH FLOWS USED IN OPERATING ACTIVITIES / (469,361 / ) / (1,127,549 / ) / (27,089,630 / )
INVESTING ACTIVITIES:
Purchase of property, plant and equipment / (104,855 / ) / (2,861 / ) / (4,240,774 / )
Proceeds from sale of Armenia mining interest / - / - / 2,891,155
Proceeds from sale of Tamaya Common Stock / - / - / 4,957,737
Proceeds from sale of investment in common stock of Sterlite Gold / - / - / 246,767
Investment in joint ventures / - / - / (260,000 / )
Investment in mining licenses / - / - / (5,756,101 / )
NET CASH USED IN INVESTING ACTIVITIES / (104,855 / ) / (2,861 / ) / (2,161,216 / )
FINANCING ACTIVITIES:
Net proceeds from private placement offering / - / - / 18,155,104
Repurchase of common stock / - / - / (25,000 / )
Advance from customer / 432,246 / - / 432,246
Secured line of credit / 2,500,000 / (74,062 / ) / 2,982,865
Note payable to Directors / 32,500 / 788,740 / 4,297,425
Warrants exercised / - / - / 2,322,250
NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES / 2,964,746 / 714,678 / 28,164,890
EFFECT OF EXCHANGE RATE ON CASH / 84,654 / 274,706 / 3,579,339
NET (DECREASE)INCREASE IN CASH / 2,475,184 / (141,026 / ) / 2,493,383
CASH AND CASH EQUIVALENTS - beginning of period / 29,551 / 228,371 / 11,352
CASH AND CASH EQUIVALENTS - end of period / $ / 2,504,735 / $ / 87,345 / $ / 2,504,735
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid / $ / - / $ / - / $ / 2,683
Interest paid / $ / 6,237 / $ / 32,898 / $ / 81,766
Noncash Transactions:
Stock issued for deferred compensation / $ / - / $ / 66,667 / $ / 3,869,217
Stock forfeited for deferred compensation / $ / - / $ / - / $ / 742,500
Stock issued for mine acquisition / $ / - / $ / - / $ / 1,227,500
Stock issued for accounts payable / $ / - / $ / - / $ / 25,000
Shares cancelled for receivable settlement / $ / - / $ / - / $ / 77,917
Mine acquisition costs in accounts payables / $ / - / $ / - / $ / 50,697

The accompanying notes are an integral part of these unaudited consolidated financial statements

5

GLOBAL GOLD CORPORATION

(An Exploration Stage Company)

Notes to Unaudited Consolidated Financial Statements

June 30, 2010

1. ORGANIZATION, DESCRIPTION OF BUSINESS, AND BASIS FOR PRESENTATION

The accompanying consolidated financial statements present the available exploration stage activities information of the Company from January 1, 1995, the period commencing the Company's operations as Global Gold Corporation (the "Company" or "Global Gold") and Subsidiaries, through June 30, 2010.

The accompanying consolidated 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 footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the December 31, 2009 annual report on Form 10-K. The results of operations for the six month period ended June 30, 2010 are not necessarily indicative of the operating results to be expected for the full year ended December 31, 2010. The Company operates in a single segment of activity, namely the acquisition of certain mineral property, mining rights, and their subsequent development.