SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cash and Cash Equivalents - Cash and cash equivalents consist of all cash balances and highly liquid investments with a remaining maturity of

three

months or less when purchased and are carried at fair

value.

Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of asset

s and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates are assumptions about useful life of property and equipment, inventory valuation, stock based compensation and deferred income tax asset valuation allowances.

Fair Value of Financial Instruments - The Company adopted FASB ASC

820

-Fair Value Measurements and Disclosures, for assets and liabilities m

easured at fair value on a recurring basis. ASC

820

establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements establishes a framework for measuring fair value and expands disclosure about such fair value measurements. The adoption of ASC

820

did

not

have an impact on the Company’s financial position or operating results, but did expand certain disclosures.

ASC

820

defines fair value as the price that wo

uld be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC

820

requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below:

	Level 1:	Observable inputs such as quoted market prices in active markets for identical assets or liabilities

	Level 2:	Observable market-based inputs or unobservable inputs that are corroborated by market data

	Level 3:	Unobservable inputs for which there is little or no market data, which require the use of the reporting entity ’s own assumptions.

The Company did

not

have any Level

or Level

assets or liabilities as of

June 30, 2017

and

December 31, 2016.

The Company discloses the estimated fair values for all financial instruments for which it is practicable to estimate fair value. As of

June 30, 2017

and

December 31, 2016,

the fair value short-term financial instruments including cash, receivables, and accounts payable and accrued expenses, approximates book value due to their short-term duration.

Cash and cash equivalents include money

mar

ket securities and commercial paper that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level

within the fair value hierarchy.

In addition, the Financial Accounting Standards Board (“

FASB”) issued, “The Fair Value Option for Financial Assets and Financial Liabilities,” effective for

January 1, 2008.

This guidance expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did

not

elect the fair value option for any of its qualifying financial instruments.

Inventories - Invento

ries consists of the following at

June 30, 2017

and

December 31, 2016:

	June 30 ,		December 31,
	2017		2016

Ore	$	451,569	$	451,569
Concentrate		11,342		11,342
Materials, supplies and other		117,868		114,775
Total Inventories	$	580,779	$	577,686

Ore inventory consists of unprocessed ore at the Toukhmanuk

mining site in Armenia. The concentrate and unprocessed ore are stated at the lower of cost or market. The Company is currently reporting its inventory at cost which is still less than the current market value so recent fluctuations in gold prices have

effect on our carrying value of inventory. The Ore inventory is pledged as collateral for the mine owner’s debt facility and secured line of credit.

Deposits on Contracts and Equipment - The Company made several deposits for purchases, the majority of which is for the potential acquisition of new properties, and the remainder for the purchase of mining equipment. The Company carried Deposits on contra

cts and equipment as of

June 30, 2017

and

December 31, 2016

was

$483,712,

and

$446,525,

respectively.

Tax Refunds Receivable - The Company is subject to Value Added Tax ("VAT tax") on all expenditures in Armenia at the rate of

20%.

The Company is entitled

to a credit against this tax towards any sales on which it collects VAT tax. The Company is carrying a tax refund receivable based on the value of its in-process inventory which it intends on selling in the next

twelve

months, at which time they will collect

20%

VAT tax from the purchaser which the Company will be entitled to keep and apply against its credit.

Net Loss Per Share - Basic net loss per share is based on the weighted average number of common and common equivalent shares outstanding. Potent

ial common shares includable in the computation of fully diluted per share results are

not

presented in the unaudited condensed consolidated financial statements as their effect would be anti-dilutive. There were

options that were exercisable at

June 30, 2017

and

2016.

There were

warrants outstanding at

June 30, 2017

and

2016.

Stock Based Compensation - The Company periodically issues shares of common stock for services rendered or for financing costs. Such shares are valued based on the market pri

ce on the transaction date. The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs.

The Company accounts for the grant of stock and warrants awar

ds in accordance with ASC Topic

718,

Compensation – Stock Compensation (ASC

718

). ASC

718

requires companies to recognize in the statement of operations the grant-date fair value of warrants and stock options and other equity based compensation.

The Bla

ck-Scholes option valuation model was developed for use in estimating the fair value of traded options that have

vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility.

For the

six

months ended

June 30, 2017

and

2016,

net loss and loss per share include the actual deduction for stock-based compensation expense. The total stock-based compensation expense for the

six

months ended

June 30, 2017

and

2016

was

$12,882

and

$30,787,

respectively and for the

three

months ended

June 30, 2017

and

2016

was

$11,476

and

$28,756,

respectively. The expense for stock-based compensation is a non-cash expense item.

Comprehensive Income

- The Company has adopted ASC Topic

220,

“Comprehensive Income.” Comprehensive income is comprised of net income (loss) and all changes to stockholders' equity (deficit), except those related to investments by stockholders, changes in paid-in capital and distribution to owners.

The following table summarizes the computations reconciling net loss applicable to Global Gold Corporation Common Shareholders to comprehensive loss for the

six

months ended

June 30, 2017

and

2016.

	Six Months Ending June 30,
	2017			2016

Net loss applicable to Global Gold Corporation Shareholders	$	(769,631	)	$	(691,489	)
Foreign currency translation adjustment	$	28,521		$	31,692
Comprehensive loss	$	(741,110	)	$	(659,797	)

Income Taxes - Income taxes are accounted for in accordance with the provisions of FASB ASC

740,

Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financ

ial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized.

Acquisition, Exploration and Development Costs - Mineral property acquisition costs are capitalized. Additionally, mine development costs incurred either to develop new ore deposits and constructing new facilities are capitalized until operations commence.

All such capitalized costs are amortized using a straight-line basis on a range from

years, based on the minimum original license term at acquisition, but do

not

exceed the useful life of the capitalized costs. Upon commercial development of an ore body, the applicable capitalized costs would then be amortized using the units-of-production method. Exploration costs, costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations. Costs of abandoned projects are charged to operations upon abandonment. The Company evaluates, at least quarterly, the carrying value of capitalized mining costs and related property, plant and equipment costs, if any, to determine if these costs are in excess of their net realizable value and if a permanent impairment needs to be recorded. The periodic evaluation of carrying value of capitalized costs and any related property, plant and equipment costs are based upon expected cash flows and/or estimated salvage value in accordance with ASC Topic

360,

"Accounting for the Impairment or Disposal of Long-Lived Assets."

Foreign Currency Translation - The Company

’s reporting currency is the U.S. Dollar. All transactions initiated in foreign currencies are translated into U.S. dollars in accordance with ASC Topic

830

“Foreign Currency Matters” and the related rate fluctuation on transactions is included the unaudited condensed consolidated statements of operations.

The functional currency of the Company's Armenian subsidiaries

is the local currency. For foreign operations with the local currency as the functional currency, assets and liabilities are translated from the local currencies into U.S. dollars at the exchange rate prevailing at the balance sheet date and equity is translated at historical rates. Revenues and expenses are translated at the average exchange rate for the period to approximate translation at the exchange rate prevailing at the dates those elements are recognized in the unaudited condensed consolidated financial statements. Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included in determining comprehensive loss. As of

June 30, 2017

and

2016,

the exchange rate for the Armenian Dram (AMD) was

462

AMD and

476

AMD for

$1.00

U.S.

Principles of Consolidation - Our unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, and in

clude the accounts of the Company and more-than-

50%

-owned subsidiaries that it controls. Inter-company balances and transactions have been eliminated in consolidation.

Depreciation, Depletion and Amortization - Capitalized costs are

depreciated or depleted using the straight-line method over the shorter of estimated productive lives of such facilities or the useful life of the individual assets. Productive lives range from

years, but do

not

exceed the useful life of the individual asset. Determination of expected useful lives for amortization calculations are made on a property-by-property or asset-by-asset basis at least annually.

Impairment of Long-Lived Assets - Management reviews and evaluates the net carrying value of al

l facilities, including idle facilities, for impairment at least annually, or upon the occurrence of other events or changes in circumstances that indicate that the related carrying amounts

may

not

be recoverable. We estimate the net realizable value of each property based on the estimated undiscounted future cash flows that will be generated from operations at each property, the estimated salvage value of the surface plant and equipment and the value associated with property interests. All assets at an operating segment are evaluated together for purposes of estimating future cash flows.

Reclamation and Remediation Costs (Asset Retirement Obligations) - Costs of future expenditures for environmental remediation are

not

discounted to their present value

unless subject to a contractually obligated fixed payment schedule. Such costs are based on management's current estimate of amounts to be incurred when the remediation work is performed within current laws and regulations. The Company has paid towards it environmental costs and has

amounts owed as of

June 30, 2017

and

December 31, 2016.

It is possible that, due to uncertainties associated with defining the nature and extent of environmental contamination and the application of laws and regulations by

regulatory authorities and changes in reclamation or remediation technology, the ultimate cost of reclamation and remediation could change in the future.

Noncontrolling Interests - Noncontrolling interests in our subsidiaries are recorded in accordance w

ith the provisions of ASC

810,

“Consolidation” and are reported as a component of equity, separate from the parent company’s equity. Purchase or sale of equity interests that do

not

result in a change of control are accounted for as equity transactions. Results of operations attributable to the non-controlling interests are included in our consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings.

Revenue Recognition - Sales will be recognized and revenues will be recorded when title transfers and the rights and obligations of ownership pass to the customer. The majority of the company's metal concentrates will be sold

under pricing arrangements where final prices will be determined by quoted market prices in a period subsequent to the date of sale. In these circumstances, revenues will be recorded at the times of sale based on forward prices for the expected date of the final settlement.

New Accounting Standards:

May 2017,

the FASB issued Accounting Standards Update

2017

(“

ASU

2017

09”

) that provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting. This update is effective for all entities for fiscal years beginning after

December 15, 2017,

and interim periods within those years. Early adoption is permitted. The Company does

not

anticipate the adoption of ASU

2017

will have a material impact on its consolidated financial statements.

February 2017,

the FASB has issued Accounting Standards Update (ASU)

No.

2017

06,

“

'Plan Accounting: Defined Benefit Pension Plans (Topic

960

); Defined Contribution Pension Plans (Topic

962

); Health and Welfare Benefit Plans (Topic

965

): Employee Benefit Plan Master Trust Reporting.” Among other things, the amendments require a plan’s interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments also remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments. The amendments require all plans to disclose: (a) their master trust’s other asset and liability balances; and (b) the dollar amount of the plan’s interest in each of those balances. Lastly, the amendments eliminate redundant investment disclosures (e.g., those required by Topics

815

and

820

) relating to

401

(h) account assets. Effective for fiscal years beginning after

December 15, 2018.

Early adoption is permitted. The amendments should be applied retrospectively to each period for which financial statements are presented. The Company does

not

anticipate the adoption of ASU

2017

will have a material impact on its consolidated financial statements.

February 2017,

the FASB has issued Accounting Standards Update (ASU)

No.

2017

05,

“

Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic

610

): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.” The amendments clarify that a financial asset is within the scope of Subtopic

610

if it meets the definition of an in substance nonfinancial asset. The amendments also define the term in substance nonfinancial asset. The amendments clarify that nonfinancial assets within the scope of Subtopic

610

may

include nonfinancial assets transferred within a legal entity to a counterparty. For example, a parent

may

transfer control of nonfinancial assets by transferring ownership interests in a consolidated subsidiary. A contract that includes the transfer of ownership interests in

one

or more consolidated subsidiaries is within the scope of Subtopic

610

if substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets. The amendments clarify that an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counterparty and derecognize each asset when a counterparty obtains control of it. Effective at the same time as the amendments in Update

2014

09,

Revenue from Contracts with Customers (Topic

606

). Therefore, public business entities, certain

not

-for-profit entities, and certain employee benefit plans should apply the amendments in this Update to annual reporting periods beginning after

December 15, 2017,

including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after

December 15, 2016,

including interim reporting periods within that reporting period. All other entities should apply the amendments in this Update to annual reporting periods beginning after

December 15, 2018,

and interim periods within annual periods beginning after

December 15, 2019.

All other entities

may

apply the guidance earlier as of annual reporting periods beginning after

December 15, 2016,

including interim reporting periods within that reporting period. All other entities also

may

apply the guidance earlier as of annual reporting periods beginning after

December 15, 2016,

and interim reporting periods within annual reporting periods beginning

one

year after the annual reporting period in which the entity

first

applies the guidance. An entity is required to apply the amendments in this Update at the same time that it applies the amendments in Update

2014

09.

The Company is currently evaluating the potential impact this standard

may

have on its financial position and results of operations.

January 2017,

the FASB has issued Accounting Standards Update (ASU)

No.

2017

04,

“

Intangibles - Goodwill and Other (Topic

350

): Simplifying the Test for Goodwill Impairment.” These amendments eliminate Step

from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should

not

exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a

zero

or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step

of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Effective for public business entities that are a SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after

December 15, 2019.

Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after

January 1, 2017.

ASU

2017

should be adopted on a prospective basis. The Company does

not

anticipate the adoption of ASU

2017

will have a material impact on its consolidated financial statements.

January 2017,

the FASB issued ASU

No.

2017

01,

Business Combinations (Topic

805

): Clarifying the Definition of a

Business. This new standard clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is

not

a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is

not

a business. This new standard will be effective for the Company on

January 1, 2018,

however, early adoption is permitted with prospective application to any business development transaction.

Management does

not

believe that any other recently issued, but

not

yet effective, accounting standards could have a material effect on the accompanying unaudited condensed consolidated fi

nancial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

A variety of proposed or otherwise potential accounting standards are currently under study by standard setting org

anizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards, management has

not

determined whether implementation of such proposed standards would be material to our unaudited condensed consolidated financial statements.