ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
GENERAL
Globe
Net Wireless Corp. was incorporated under the laws of the State of Nevada, U.S. on September 4, 2009. Our registration statement
on Form S-1 was filed with the Securities and Exchange Commission was declared effective on May 15, 2013.
On
December 9, 2016, Globe Net issued a press release announcing that it had launched BizPro Mobile Apps, a suite of mobile app development
services for the small to medium sized business mobile app market. For more information, please refer to Exhibit 99.1 filed of the form
8-K filed on December 13, 2016 for more details.
We
intend to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to us by persons
or firms which desire to seek the advantages of an issuer who has complied with the Securities Act of 1934 (the “1934 Act”).
We will not restrict our search to any specific business, industry or geographical location, and we may participate in business ventures
of virtually any nature. This discussion of our proposed business is purposefully general and is not meant to be restrictive of our unlimited
discretion to search for and enter into potential business opportunities. We anticipate that we may be able to participate in only one
potential business venture because of our lack of financial resources.
RESULTS
OF OPERATIONS
Our
financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments
relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable
to continue in operation. We expect we will require additional capital to meet our long term operating requirements. We expect to raise
additional capital through, among other things, the sale of equity or debt securities.
Nine-month
Period Ended May 31, 2021 Compared to the Nine-month Period Ended May 31, 2020.
Our
net loss for the nine-month period ended May 31, 2021 was $73,323 (2020: $21,619), which consisted of general and administration
expenses and interest on notes payable. We did not generate any revenue during either nine-month period in fiscal 2021 or 2020. The increase
in expenses in the current fiscal year relate to an increase in amortized interest expenses.
The
weighted average number of shares outstanding was 10,800,000 for the nine-month period ended May 31, 2021 and 10,800,000 for the nine-month
period ended May 31, 2020.
LIQUIDITY
AND CAPITAL RESOURCES
As
at May 31, 2021, our current assets were $115,602 compared to $46,438 in current assets at August 31, 2020. As at May 31, 2021,
our current liabilities were $363,529 compared to $272,218 at August 31, 2020. Current liabilities at May 31, 2021 were comprised
of $307,770 in convertible notes and interest payable, $52,209 in notes and accrued interest payable and $3,550
in accounts payable and accrued liabilities.
Stockholders’
deficit increased from $225,780 as of August 31, 2020 to $247,927 as of May 31, 2021.
Cash
Flows from Operating Activities
We
have not generated positive cash flows from operating activities. For the nine-month period ended May 31, 2021, net cash flows used in
operating activities were $86,731 consisting of a net loss of $73,323, $10,711 interest on notes and convertible
notes payable and $52,376 on debt accretion. Adjustments for changes in operating assets and liabilities were due to an increase
in prepaid expenses of $70,895, an increase in accounts payable of $800 and a decrease in accrued liabilities of $6,400. For the
nine-month period ended May 31, 2020, net cash flows used in operating activities were $48,245.
Cash
Flows from Financing Activities
We
have financed our operations primarily from either the issuance of our shares of common stock or notes payable. For the nine-month period
ended May 31, 2021, we generated $85,000 cash from financing activities from the issuance of convertible promissory notes.
We generated $50,000 cash in the comparative period in fiscal 2020.
PLAN
OF OPERATION AND FUNDING
We
expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances
of securities. Our working capital requirements are expected to increase in line with the growth of our business.
Existing
working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations
over the next three months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to
date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates
additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses
associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities
and director loans. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating
requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further,
such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon
acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take
advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.
We will have to raise additional funds in the next twelve months in order to sustain and expand our operations. We currently do not have
a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing
from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future
arrangement for additional loans has been made. We do not have any agreements with our directors concerning these loans. We do not have
any arrangements in place for any future equity financing.
OFF-BALANCE
SHEET ARRANGEMENTS
As
of the date of this report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or
future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that are material to investors.
GOING
CONCERN
The
independent auditors’ report accompanying our August 31, 2020 financial statements contained an explanatory paragraph expressing
substantial doubt about our ability to continue as a going concern. The financial statements have been prepared “assuming that
we will continue as a going concern,” which contemplates that we will realize our assets and satisfy our liabilities and commitments
in the ordinary course of business.
CHANGE
IN ACCOUNTING POLICY
The
Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued,
which may be in advance of their effective date.