UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

or

o  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to __________

Commission file number 000-54213

NORTH BAY RESOURCES INC.

(Exact name of registrant as specified in its charter)

Delaware	83-0402389
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

2120 Bethel Road

Lansdale, Pennsylvania 19446

 (Address of principal executive offices)

 (215) 661-1100

 (Issuer’s telephone number, including area code)

_______________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has 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 x 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 the 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                                                        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

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 217,118,103 shares of Common Stock as of August 12, 2014. 

NORTH BAY RESOURCES INC.

(AN EXPLORATION STAGE COMPANY)

TABLE OF CONTENTS

PART I.  FINANCIAL INFORMATION		Page
Item 1.	Financial Statements.	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	42
Item 3.	Quantitative and Qualitative Disclosures about Market Risk.	52
Item 4.	Controls and Procedures.	52
PART II.  OTHER INFORMATION.
Item 1.	Legal Proceedings.	53
Item 1A.	Risk Factors.	53
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	53
Item 3.	Defaults upon Senior Securities.	54
Item 4.	Mine Safety Disclosures.	54
Item 5.	Other Information.	54
Item 6.	Exhibits.	54
SIGNATURES		55
EXHIBIT INDEX		56

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

NORTH BAY RESOURCES INC.

(AN EXPLORATION STAGE COMPANY)

UNAUDITED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2014 AND DECEMBER 31, 2013

	Jun 30, 2014			Dec 31, 2013
ASSETS
Current Assets
Cash	$	123,474		$	133,873
Total Current Assets		123,474			133,873
Other Assets
Certificates of Deposit		173,043			172,880
Prepaid Expenses		57,373			57,373
Deferred Financing Costs, net		54,777			22,966
Mining Claims – Unproved		1,795,780			1,797,488
Property, Plant & Equipment, net of accumulated depreciation		553,142			608,038
Available For Sale Securities		10,000			22,500
Reclamation Bond – Fraser River		5,000			5,000
Total Other Assets		2,649,115			2,686,245
TOTAL ASSETS	$	2,772,589		$	2,820,118
LIABILITIES & STOCKHOLDERS’ EQUITY (DEFICIT)
Liabilities
Current Liabilities
Accounts Payable	$	45,299		$	41,611
Accrued Expenses - Related Party		881,474			820,474
Accrued Interest		153,815			101,366
Convertible notes payable (net of discounts of $517,169 and $264,389, respectively)		1,041,361			836,858
Advance Gold Sales (net of discounts of $0 and $4,289, respectively)		5,000			195,711
Derivative Liabilities – Convertible Debt		644,163			696,648
Derivative Liabilities – Advances on Gold		5,556			22,223
Note Payable – Ruby Mine Mortgage		633,104			627,101
Note Payable - Equipment		9,272			41,687
Total Current Liabilities		3,419,044			3,383,679
Long-Term Liabilities
Note Payable – Ruby Mine Mortgage, net of current portion		1,093,082			1,205,537
Note Payable – Equipment, net of current portion		23,641			-
Asset Retirement Obligation		4,716			6,158
Total Long-Term Liabilities		1,121,439			1,211,695
Total Liabilities	$	4,540,483		$	4,595,374
Commitment & Contingencies
Common shares subject to redemption, stated at estimated redemption value, 10,217,468 and 10,217,468 shares outstanding at June 30, 2014 and December 31, 2013, respectively		697,046			667,758
Total Commitment & Contingencies	$	697,046		$	667,758
Stockholders’ Equity (Deficit)
Preferred stock, Series I, $0.001 par value, 100 shares authorized, 100 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively		-			-
Convertible Preferred stock, Series A, $0.001 par value, 8,000,000 shares authorized, 4,000,000 and 4,000,000 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively		4,000			4,000
Common stock, $0.001 par value, 500,000,000 shares authorized, 187,087,567 and 127,897,079 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively		187,087			127,898
Additional Paid-In Capital		13,935,779			12,962,791
Accumulated Other Comprehensive Income		(15,050	)		(2,550	)
Stock Payable		18,392			-
Deficit Accumulated During Exploration Stage		(16,595,148	)		(15,535,153	)
Total Stockholders’ Equity (Deficit)		(2,464,940	)		(2,443,014	)
TOTAL LIABILITIES, COMMITMENTS & CONTINGENCIES, & STOCKHOLDERS’ EQUITY (DEFICIT)	$	2,772,589		$	2,820,118

The accompanying notes are an integral part of these financial statements.

3

NORTH BAY RESOURCES INC.

(AN EXPLORATION STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND SIX MONTH PERIODS ENDING

JUNE 30, 2014 AND 2013 AND THE PERIOD FROM

JUNE 18, 2004 (INCEPTION) THROUGH JUNE 30, 2014

	3 months ended June 30, 2014			3 months ended June 30, 2013			6 months ended June 30, 2014			6 months ended June 30, 2013			Since inception (June 18, 2004 - June 30, 2014)
Revenues
Revenue	$	-		$	-		$	-		$	-		$	-
Cost of Revenue		-			-			-			-			-
Gross Profit		-			-			-			-			-
Operating Expenses
Commissions & Consulting Fees		-			4,800			-			4,800			316,800
General & Administrative Costs		86,289			80,732			181,171			161,728			9,684,587
Mining Property Costs		401,360			179,639			686,105			226,540			3,205,952
Depreciation Expense		25,110			24,060			53,896			48,120			312,289
Impairment Expense		-			-			-			-			145,995
Accretion Expense		114			76			266			163			1,596
Professional Services		34,064			36,368			90,728			66,270			458,872
Total Operating Expenses		546,937			325,675			1,012,166			507,621			14,126,091
Net Operating Loss		(546,937	)		(325,675	)		(1,012,166	)		(507,621	)		(14,126,091	)
Other Income (Expenses)
Gain on Mineral Claim Sales		-			-			-			113,499			471,243
Other Income from Mineral Claims		-			-			-			-			309,649
Interest Income		538			120			4,872			244			6,887
Interest Expense		(381,985	)		(98,321	)		(625,003	)		(405,900	)		(2,286,212	)
Gain/Loss on Derivative Liability		313,211			(359,114	)		552,578			(576,640)			113,164
Loss on Conversion of Debt		-			-			-			-			(137,000	)
Loss on Equity Modification		-			-			-			-			(85,399	)
Bad Debt Expense		-			-			-			-			(47,185	)
Loss on Settlement		(32,479	)		-			(32,479)			-			(94,574	)
Other Expense		-			(1,913	)		-			-			(2,222	)
Other Income		-			-			52,203			1,094			53,297
Realized Gain (Loss) on Investment		-			-			-			-			(97,109	)
Net Other Income (Expenses)		(100,715	)		(459,228	)		(47,829	)		(867,703	)		(1,795,461	)
Loss From Continuing Operations		(647,652	)		(784,903	)		(1,059,995	)		(1,375,324)			(15,921,552	)
Loss From Discontinued Operations		-			-			-			-			(673,596	)
Net Loss		(647,652	)		(784,903	)		(1,059,995	)		(1,375,324	)		(16,595,148	)
Accretion of Discount on Redeemable Common Stock		-			(489	)		-			(14,701	)		(81,862	)
Excess Cash Received Compared to Redeemable Amount of Stock		-			-			-			-			974
Interest on Redeemable Common Stock		(14,644	)		(12,337	)		(29,288	)		(21,298	)		(103,158	)
Net Loss Attributable to Common Shareholders		(662,296	)		(797,729	)		(1,089,283	)		(1,411,323	)		(16,779,194	)
Unrealized (Loss)/Gain on Available For Sale Securities		(12,500	)		(7,500	)		(12,500	)		2,450			(15,050	)
Total Comprehensive Loss		(674,796	)		(805,229	)		(1,101,783	)		(1,408,873	)		(16,794,244	)
WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (Basic)		172,223,752			112,522,912			159,851,777			108,542,908
Basic Net Loss per Share	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (Diluted)		172,223,752			112,522,912			159,851,777			108,542,908
Diluted Net Loss per Share	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.01	)

The accompanying notes are an integral part of these financial statements

4

NORTH BAY RESOURCES INC.

(AN EXPLORATION STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE PERIOD

JUNE 18, 2004 (INCEPTION) THROUGH JUNE 30, 2014 (Unaudited)

	Preferred Stock												Common Stock
	Series A Shares		Series G Shares		Series I Shares		Series A Amount		Series G Amount		Series I Amount		Shares		Amount		Additional  Paid-In Capital			Stock Payable		Accumulated Deficit			Accumulated OCI		Total Stockholders’ Deficit
Inception 6/18/2004		-		-		-	$	-	$	-	$	-		-	$	-	$	-		$	-	$	-		$	-	$	-
Founder's Shares issued		1,200,000		-		-		1,200		-		-		320,000		320		(1,520	)		-		-			-		-
Shares issued for merger		1,200,000		-		-		1,200		-		-		320,000		320		(1,520	)		-		-			-		-
Common Stock issued for cash		-		-		-		-		-		-		200,000		200		4,800			-		-			-		5,000
Net loss for year		-		-		-		-		-		-		-		-		-			-		(95,587	)		-		(95,587	)
Balance at 12/31/2004		2,400,000		-		-	$	2,400	$	-	$	-		840,000	$	840	$	1,760		$	-	$	(95,587	)	$	-	$	(90,587	)
Common Stock issued to convert debt		-		-		-		-		-		-		12,127		12		180,213			-		-			-		180,225
Common Stock issued for services		-		-		-		-		-		-		121,491		121		2,586,046			-		-			-		2,586,167
Common Stock issued for cash		-		-		-		-		-		-		102,643		103		517,597			-		-			-		517,700
Net loss for year		-		-		-		-		-		-		-		-		-			-		(1,816,896	)		-		(1,816,896	)
Balance at 12/31/2005		2,400,000		-		-	$	2,400	$	-	$	-		1,076,261	$	1,076	$	3,285,616		$	-	$	(1,912,483	)	$	-	$	1,376,609

5

NORTH BAY RESOURCES INC.

(AN EXPLORATION STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE PERIOD

JUNE 18, 2004 (INCEPTION) THROUGH JUNE 30, 2014 (Unaudited)

(Continued)

	Preferred Stock												Common Stock
	Series A Shares		Series G Shares		Series I Shares		Series A Amount		Series G Amount		Series I Amount		Shares		Amount		Additional  Paid-In Capital		Stock Payable		Accumulated Deficit			Accumulated OCI		Total Stockholders’ Deficit
Common Stock issued to convert debt		-		-		-		-		-		-		1,202,000		1,202		2,206,398		-		-			-		2,207,600
Common Stock issued for services		-		-		-		-		-		-		1,309,000		1,309		1,543,191		-		-			-		1,544,500
Expenses paid by shareholder		-		-		-		-		-		-		-		-		164,371		-		-			-		164,371
Net loss for year		-		-		-		-		-		-		-		-		-		-		(5,504,237	)		-		(5,504,237	)
Balance at 12/31/2006		2,400,000		-		-	$	2,400	$	-	$	-		3,587,261	$	3,587	$	7,199,576	$	-	$	(7,416,720	)	$	-	$	(211,157	)

6

NORTH BAY RESOURCES INC.

(AN EXPLORATION STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE PERIOD

JUNE 18, 2004 (INCEPTION) THROUGH JUNE 30, 2014 (Unaudited)

(Continued)

	Preferred Stock														Common Stock
	Series A Shares			Series G Shares		Series I Shares		Series A Amount			Series G Amount		Series I  Amount		Shares			Amount			Additional  Paid-In Capital			Stock Payable		Accumulated Deficit			Accumulated OCI		Total Stockholders’ Deficit
Beneficial Conversion Features on notes payable		-			-		-		-			-		-		-			-			62,000			-		-			-		62,000
Common Stock issued to convert debt		-			-		-		-			-		-		1,350,000			1,350			120,150			-		-			-		121,500
Common Stock issued for services		-			-		-		-			-		-		10,575,000			10,575			959,425			-		-			-		970,000
Common Stock issued as interest on loan		-			-		-		-			-		-		10,000			10			1,490			-		-			-		1,500
Preferred Shares issued for services		-			-		100		-			-		-		-			-			101,000			-		-			-		101,000
Common Stock issued for conversion of preferred shares		(2,400,000	)		-		-		(2,400	)		-		-		1,200,000			1,200			1,200			-		-			-		-
Shares bought back and retired		-			-		-		-			-		-		(200,000	)		(200	)		(1,800	)		-		-			-		(2,000	)
Expenses paid by shareholder		-			-		-		-			-		-		-			-			70,623			-		-			-		70,623
Net loss for year		-			-		-		-			-		-		-			-			-			-		(1,490,871	)		-		(1,490,871	)
Balance at 12/31/2007		-			-		100	$	2,400		$	-	$	-		16,522,261		$	16,522		$	8,513,664		$	-	$	(8,907,591	)	$	-	$	(377,405	)

7

NORTH BAY RESOURCES INC.

(AN EXPLORATION STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE PERIOD

JUNE 18, 2004 (INCEPTION) THROUGH JUNE 30, 2014 (Unaudited)

(Continued)

	Preferred Stock												Common Stock
	Series A Shares		Series G Shares		Series I Shares		Series A Amount		Series G Amount		Series I Amount		Shares		Amount		Additional  Paid-In Capital		Stock Payable		Accumulated Deficit			Accumulated OCI		Total Stockholders’ Deficit
Rounding of shares due to stock split		-		-		-		-		-		-		26		-		-		-		-			-		-
Common Stock issued for services		-		-		-		-		-		-		5,500,000		5,500		224,500		-		-			-		230,000
Common Stock issued for cash		-		-		-		-		-		-		2,275,000		2,275		7,725		-		-			-		10,000
Contribution from investor		-		-		-		-		-		-		-		-		10,000		-		-			-		10,000
Mark to market AFS securities		-		-		-		-		-		-		-		-		-		-		-			22,780		22,780
Net loss for year		-		-		-		-		-		-		-		-		-		-		(328,478	)		-		(328,478	)
Balance at 12/31/2008		-		-		100	$	-	$	-	$	-		24,297,287	$	24,297	$	8,755,889	$	-	$	(9,236,069	)	$	22,780	$	(433,103	)

8

NORTH BAY RESOURCES INC.

(AN EXPLORATION STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE PERIOD

JUNE 18, 2004 (INCEPTION) THROUGH JUNE 30, 2014 (Unaudited)

(Continued)

	Preferred Stock												Common Stock
	Series A Shares		Series G Shares		Series I Shares		Series A Amount		Series G Amount		Series I Amount		Shares		Amount		Additional  Paid-In Capital			Stock Payable		Accumulated Deficit			Accumulated OCI			Total Stockholders’ Deficit
Common Stock issued for services		-		-		-		-		-		-		2,500,000		2,500		27,250			-		-			-			29,750
Preferred Stock issued for services		4,000,000		100,000		-		4,000		100		-		-		-		249,685			-		-			-			253,785
Common Stock issued for cash		-		-		-		-		-		-		21,800,000		21,800		151,200			-		-			-			173,000
Common Stock issued for deferred compensation		-		-		-		-		-		-		10,000,000		10,000		177,500			-		-			-			187,500
Loss realized on AFS securities		-		-		-		-		-		-		-		-		-			-		-			(22,780	)		(22,780	)
Stock payable for commitment fee on equity offering		-		-		-		-		-		-		-		-		(115,310	)		115,310		-			-			-
Net loss for year		-		-		-		-		-		-		-		-		-			-		(786,979	)		-			(786,979	)
Balance at 12/31/2009		4,000,000		100,000		100	$	4,000	$	100	$	-		58,597,287	$	58,597	$	9,246,214		$	115,310	$	(10,023,048	)	$	22,780		$	(598,827	)

9

NORTH BAY RESOURCES INC.

(AN EXPLORATION STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE PERIOD

JUNE 18, 2004 (INCEPTION) THROUGH JUNE 30, 2014 (Unaudited)

(Continued)

	Preferred Stock												Common Stock
	Series A Shares		Series G Shares		Series I Shares		Series A Amount		Series G Amount		Series I Amount		Shares		Amount		Additional  Paid-In Capital		Stock Payable			Accumulated Deficit			Accumulated OCI		Total Stockholders’ Deficit
Common Stock issued for commitment fee on equity offering		-		-		-		-		-		-		6,589,147		6,589		108,721		(115,310	)		-			-		-
Common Stock issued for cash		-		-		-		-		-		-		5,000,000		5,000		45,000		-			-			-		50,000
Discount on convertible notes from beneficial conversion features and attached warrants		-		-		-		-		-		-		-		-		107,406		-			-			-		107,406
Common Stock issued for Ruby Mine Purchase Option		-		-		-		-		-		-		10,000,000		10,000		140,000		-			-			-		150,000
Warrants issued for Purchase Option – Ruby Mine		-		-		-		-		-		-		-		-		149,896		-			-			-		149,896
Net loss for year		-		-		-		-		-		-		-		-		-		-			(287,345	)		-		(287,345	)
Balance at 12/31/2010		4,000,000		100,000		100	$	4,000	$	100	$	-		80,186,434	$	80,186	$	9,797,237	$	-		$	(10,310,393	)	$	-	$	(428,870	)

10

NORTH BAY RESOURCES INC.

(AN EXPLORATION STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE PERIOD

JUNE 18, 2004 (INCEPTION) THROUGH JUNE 30, 2014 (Unaudited)

(Continued)

	Preferred Stock												Common Stock
	Series A Shares		Series G Shares		Series I Shares		Series A Amount		Series G Amount		Series I Amount		Shares		Amount		Additional  Paid-In Capital		Stock Payable		Accumulated Deficit		Accumulated OCI		Total Stockholders’ Deficit
Common Stock issued for cash		-		-		-		-		-		-		9,433,985		9,434		758,566		-		-		-		768,000
Common Stock issued for convertible debt conversion		-		-		-		-		-		-		4,459,092		4,459		169,393		-		-		-		173,852
Common Stock issued for services		-		-		-		-		-		-		42,857		43		2,957		-		-		-		3,000
Common Stock issued for settlement of services		-		-		-		-		-		-		550,000		550		61,545		-		-		-		62,095
Common Stock issued for deferred compensation		-		-		-		-		-		-		2,000,000		2,000		178,000		-		-		-		180,000
Common Stock issued for directors compensation		-		-		-		-		-		-		111,112		111		9,889		-		-		-		10,000
Discount on convertible notes from beneficial conversion feature		-		-		-		-		-		-		-		-		70,568		-		-		-		70,568
Term Extension of Ruby warrants		-		-		-		-		-		-		-		-		2,519		-		-		-		2,519
Warrants issued for Purchase Option – Ruby Mine		-		-		-		-