Replies to post #93237 on North Bay Resources Inc (NBRI)

[1manband]

That is correct. And the derivative valuation in no way reduces the amounts due to the noteholders. It is simply a valuation difference under GAAP as the Company may (and is almost certainly guaranteed) to issue discounted shares to pay off the note prior to maturity. Therefore, they are allowed to carry the toxic convertible notes at a discount on the balance sheet even though it in no way changes the actual dollar amounts due to the noteholders.

[Spanky227]

Thanks for clearing up that the convertible debt is NOT $1.8M.