GLOBAL BIOTECH CORP.
|
(A DEVELOPMENT STAGE COMPANY)
|
BALANCE SHEETS
|
|
|
|
May 31,2013
|
|
November 30, 2012
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
7
|
|
|
$
|
7
|
|
Prepaid Expenses
|
|
|
70,642
|
|
|
|
95,581
|
|
Short Term Investments
|
|
|
196,084
|
|
|
|
198,160
|
|
Total current assets
|
|
|
266,733
|
|
|
|
293,748
|
|
|
|
|
|
|
|
|
|
|
Property & Equipment (Net)
|
|
|
86,430
|
|
|
|
86,430
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
353,163
|
|
|
$
|
380,178
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
Bank overdraft
|
|
$
|
—
|
|
|
$
|
—
|
|
Accounts payables and accrued liabilities
|
|
|
1,080,604
|
|
|
|
972,551
|
|
Notes Payable related party
|
|
|
45,613
|
|
|
|
46,352
|
|
Note Payable
|
|
|
1,261,453
|
|
|
|
1,248,156
|
|
Total current liabilities
|
|
|
2,387,670
|
|
|
|
2,267,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value authorized 80,000,00 shares 0 shares issued and outstanding May 31, 2013 and November 30, 2012
|
|
|
—
|
|
|
|
—
|
|
Common stock, $0.0001 par value authorized 260,000,000 shares: issued and outstanding 82,073,890 May 31, 2013 and 82,073,890 November 30, 2012
|
|
|
8,207
|
|
|
|
8,207
|
|
Paid in capital
|
|
|
1,667,790
|
|
|
|
1,667,790
|
|
Deficit accumulated during the development stage
|
|
|
(3,710,504
|
)
|
|
|
(3,562,878
|
)
|
Total Stockholders' Equity
|
|
|
(2,034,507
|
)
|
|
|
(1,886,881
|
)
|
|
|
|
|
|
|
|
|
|
Total liabilities and Stockholders' Equity
|
|
$
|
353,163
|
|
|
$
|
380,178
|
|
|
|
|
|
|
|
|
|
|
See the accompanying notes to financial statements.
|
GLOBAL BIOTECH CORP.
|
(A DEVELOPMENT STAGE COMPANY)
|
STATEMENTS OF OPERATIONS
|
(UNAUDITED)
|
|
|
|
Three Months Ended May 31, 2013
|
|
Three Months Ended May 31, 2012
|
|
Six Months Ended May 31, 2013
|
|
Six Months Ended May 31, 2012
|
|
Inception to May 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
944,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues:
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
603,063
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
341,748
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bad Debt Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
120,844
|
|
Licensing rights
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
700,000
|
|
Depreciation Expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
73,274
|
|
Marketing
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
236,266
|
|
Professional Fees
|
|
|
2,000
|
|
|
|
2,000
|
|
|
|
4,000
|
|
|
|
4,000
|
|
|
|
229,295
|
|
Selling, general and administrative
|
|
|
118,467
|
|
|
|
12,449
|
|
|
|
132,698
|
|
|
|
24,911
|
|
|
|
1,864,429
|
|
Total Operating Expenses
|
|
|
120,467
|
|
|
|
14,449
|
|
|
|
136,698
|
|
|
|
28,911
|
|
|
|
3,224,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) before other income (expense)
|
|
|
(120,467
|
)
|
|
|
(14,449
|
)
|
|
|
(136,698
|
)
|
|
|
(28,911
|
)
|
|
|
(2,882,360
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
85,005
|
|
Foreign exchange gain (loss)
|
|
|
—
|
|
|
|
14,137
|
|
|
|
19,262
|
|
|
|
(1,731
|
)
|
|
|
(29,934
|
)
|
Interest income
|
|
|
2,402
|
|
|
|
2,287
|
|
|
|
4,804
|
|
|
|
4,574
|
|
|
|
141,993
|
|
Interest Expense
|
|
|
(17,590
|
)
|
|
|
(16,864
|
)
|
|
|
(34,994
|
)
|
|
|
(33,762
|
)
|
|
|
(543,732
|
)
|
Gain on Sale of Investment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
359,583
|
|
Impairment Loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(849,831
|
)
|
Write down - leasehold improvements
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,663
|
)
|
Write down - Notes receivable
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (Expense)
|
|
|
(15,188
|
)
|
|
|
(440
|
)
|
|
|
(10,928
|
)
|
|
|
(30,919
|
)
|
|
|
(828,144
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss)
|
|
$
|
(135,655
|
)
|
|
$
|
(14,889
|
)
|
|
$
|
(147,626
|
)
|
|
$
|
(59,830
|
)
|
|
$
|
(3,710,504
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common shares outstanding
|
|
|
82,073,890
|
|
|
|
82,073,890
|
|
|
|
82,073,890
|
|
|
|
82,073,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (Loss) per common share
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the accompanying notes to financial statements.
|
GLOBAL BIOTECH CORP.
|
(A DEVELOPMENT STAGE COMPANY)
|
Statement of Cash Flows (Unaudited)
|
|
|
|
|
|
|
From Inception
|
|
|
Six months ended
|
|
(November 2, 1998)
|
|
|
May 31, 2013
|
|
May 31,2012
|
|
to May 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
(147,626
|
)
|
|
|
(59,830
|
)
|
|
$
|
(3,710,504
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash used in operating activities
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
73,274
|
|
Common stock issued for services
|
|
|
|
|
|
|
|
|
|
|
436,143
|
|
Gain on sale of Investment
|
|
|
|
|
|
|
|
|
|
|
(359,583
|
)
|
Impairment Loss
|
|
|
—
|
|
|
|
—
|
|
|
|
849,831
|
|
Write down of leasehold improvements
|
|
|
—
|
|
|
|
—
|
|
|
|
2,663
|
|
Write down of notes receivable
|
|
|
—
|
|
|
|
—
|
|
|
|
(11,435
|
)
|
Accrued interest expense - note payable
|
|
|
34,994
|
|
|
|
33,762
|
|
|
|
434,244
|
|
Accrued interest income - note receivable
|
|
|
(4,804
|
)
|
|
|
(4,574
|
)
|
|
|
(136,467
|
)
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) Decrease - acc. rec/Prepaids
|
|
|
24,939
|
|
|
|
24,934
|
|
|
|
(70,642
|
)
|
(Increase) Decrease in notes receivable
|
|
|
6,880
|
|
|
|
—
|
|
|
|
(459,308
|
)
|
Increase (decrease) - accounts payable
|
|
|
108,053
|
|
|
|
5,713
|
|
|
|
1,080,604
|
|
Net Cash Provided by (used in) Operating Activities
|
|
|
22,436
|
|
|
|
5
|
|
|
|
(1,871,180
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sale (purchase of fixed assets
|
|
|
—
|
|
|
|
—
|
|
|
|
(60,937
|
)
|
Purchase of short term investments
|
|
|
—
|
|
|
|
—
|
|
|
|
(168,560
|
)
|
Proceeds from sale of investment shares
|
|
|
—
|
|
|
|
—
|
|
|
|
489,061
|
|
Net Cash Provided by (used in) Investing Activities
|
|
|
—
|
|
|
|
—
|
|
|
|
259,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank Advances
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Issue of Common stock
|
|
|
—
|
|
|
|
—
|
|
|
|
156,262
|
|
Payment of common stock subscription receivable
|
|
|
—
|
|
|
|
—
|
|
|
|
206,239
|
|
Proceeds from notes payable & related party
|
|
|
(22,436
|
)
|
|
|
—
|
|
|
|
1,249,122
|
|
Net Cash provided by (used in) Financing Activities
|
|
|
(22,436
|
)
|
|
|
—
|
|
|
|
1,611,623
|
|
Net Increase (Decrease) in Cash
|
|
|
—
|
|
|
|
5
|
|
|
|
7
|
|
Cash at Beginning of Period
|
|
|
7
|
|
|
|
9
|
|
|
|
—
|
|
Cash at End of Period
|
|
$
|
7
|
|
|
$
|
14
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Cash Flow Disclosures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during period for interest
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during period for taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to Financial Statements
|
GLOBAL BIOTECH CORP.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
MAY 31, 2013
(UNAUDITED)
NOTE 1 – BASIS OF PRESENTATION
The accompanying unaudited financial statements
of GLOBAL BIOTECH CORP. have been prepared in accordance with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements reflect all adjustments consisting
of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for the
periods shown. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting
principles for complete financial statements.
These financial statements should be read in
conjunction with the audited financial statements and footnotes thereto included for the year ended November 30, 2012 for GLOBAL
BIOTECH CORP. on form 10 K as filed with the Securities and Exchange Commission.
The preparation of financial statements in
conformity with generally accepted accounting principles of United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and that effect the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Earnings (Loss) Per Share
The Company computes net income (loss) per share in accordance with ASC 260,
Earnings
per Share.
ASC 260 specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities
with publicly held common stock.
Basic earnings (loss) per Common share ("EPS")
calculations are determined by dividing net income (loss) by the weighted average number of shares of common stock outstanding
during the period. Diluted earning per common share calculations are determined by dividing net income (loss) by the weighted
average number of common shares and dilutive common share equivalents outstanding. During the periods presented common stock equivalents
were not considered, as their effect would be anti-dilutive.
Recent Accounting Pronouncements
The Company has implemented all new accounting
pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new
accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
NOTE 3 – GOING CONCERN
The accompanying financial statements
have been prepared assuming the Company will continue as a going concern. The company reported net losses of $135,655 and $147,626
for the three months and six months ended May 31, 2013 as well as reporting net losses of $3,710,504 from inception (November 2,
1998) to May 31, 2013. At May 31, 2013 the Company had negative working capital of $2,120,937 and stockholders’ deficit of
$2,034,507. This condition raises substantial doubt about the Company's ability to continue as a going concern. The Company's continuation
as a going concern is dependent on its ability to meet its obligations, to obtain additional financing as may be required and ultimately
to attain profitability. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
The officers and directors are committed to
help in raising funds to fill any operating cash flow shortages during the next fiscal year until the organization can generate
sufficient funds from operations to meet current operating expenses and overhead, although there are no guarantees that this commitment
will be met.
GLOBAL BIOTECH CORP.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
MAY 31, 2013
(UNAUDITED)
NOTE 4. SHORT TERM INVESTMENT
As of May 31, 2013, the Company had purchased a term deposit in
the amount of CAD172,000 (USD 166,840), bearing interest rate of 5%, maturing on November 6, 2013. As of May 31, 2013, the Company
accrued 29,244 USD of interest income. No withdrawals allowed for first 90 days and 90 days early withdrawal notice needed. Early
withdrawal interest rate - 1 ½%.
NOTE 5. PROPERTY & EQUIPMENT
On August 15, 2007 the Company acquired Oxygenation
Equipment with a cost of $605,000 in exchange for common shares.
|
|
May 31,
|
|
November 30,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
Oxygenation equipment
|
|
$
|
605,000
|
|
|
$
|
605,000
|
|
Less: Impairment Loss
|
|
|
518,570
|
|
|
|
518,570
|
|
Net Property and Equipment
|
|
$
|
86,430
|
|
|
$
|
86,430
|
|
NOTE 6. NOTE PAYABLE TO RELATED PARTY
Note payable to related party as of May 31,
2013 and November 30, 2012 consist of the following:
|
|
May 31, 2013
|
|
November 30,
2012
|
|
|
|
|
|
|
|
|
|
Due to an officer, unsecured, non-interest bearing
|
|
$
|
45,613
|
|
|
$
|
46,352
|
|
NOTE 7. NOTES PAYABLE
Note payable as of May 31, 2013 and November
30, 2012 consist of the following:
|
|
May 31, 2013
|
|
November 30,
2012
|
|
|
|
|
|
|
|
|
|
Note payable to: Millenia Hope Inc. unsecured, with annual interest rate 7%.
|
|
$
|
629,872
|
|
|
$
|
608,392
|
|
Third parties, unsecured with annual interest of 4%, commencing July 1, 2009
|
|
|
105,119
|
|
|
|
107,063
|
|
Convertible note payable to third parties with annual interest of 2%,commencing March 1, 2011 Loan is convertible to common shares of Global Biotech at par to the lowest daily trading price of the shares on the conversion request date
|
|
|
207,423
|
|
|
|
213,612
|
|
Convertible note payable to third parties with annual interest of 8%,commencing April 30,2009 Loan is convertible to common shares of Global Biotech at the lesser of $1.00 per share or the average closing price of the shares for the 5 business days prior to conversion
|
|
|
319,039
|
|
|
|
319,089
|
|
|
|
$
|
1,261,453
|
|
|
$
|
1,248,156
|
|
There are no beneficial conversion features
because the Company has conversion right.
GLOBAL BIOTECH CORP.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE INTERIM FINANCIAL STATEMENTS
MAY 31, 2013
(UNAUDITED)
NOTE 8. STOCKHOLDERS' EQUITY
The stockholders' equity section of the Company
contains the following classes of capital stock as of May 31, 2013 and November 30, 2012:
Common stock, $ 0.0001 par value; 260,000,000 shares and 260,000,000 shares authorized
May 31, 2013 and November 30, 2012: 82,073,890 shares issued and outstanding as of May 31, 2013 and November 30, 2012.
Preferred Stock, $0.0001 par value; 80,000,000
shares authorized May 31, 2013 and November 30, 2012. Zero (0) shares issued and outstanding as of May 31, 2013 and November 30,
2012.
NOTE 9 - SUBSEQUENT EVENTS
In accordance with ASC 855,
Subsequent Events
, the Company has evaluated subsequent
events through the date of issuance of the unaudited interim financial statements. During this period, the Company did not have
any material recognizable subsequent events.
ITEM 6 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Special Note Regarding Forward-Looking Statements
Some of the statements under "Plan of Operations," "Business" and
elsewhere in this registration statement are forward-looking statements that involve risks and uncertainties. These forward-looking
statements include statements about our plans, objectives, expectations, intentions and assumptions and other statements contained
herein that are not statements of historical fact. You can identify these statements by words such as "may," "will,"
"should," "estimates," "plans," "expects," "believes," "intends" and
similar expressions. We cannot guarantee future results, levels of activity, performance or achievements. Our actual results and
the timing of certain events may differ significantly from the results discussed in the forward-looking statements. You are cautioned
not to place undue reliance on any forward-looking statements.
Plan of Operation.
The following discussion should be read in conjunction with the financial statements
and related notes which are included elsewhere in this
prospectus
. Statements made below which
are not historical facts are forward-looking statements. Forward-looking statements involve a number of risks and uncertainties
including, but not limited to, general economic conditions and our ability to market our product.
The business objective of GLOBAL is to position AquaBoost™,
our initial product being offered, as a top quality oxygenated water in the specialty waters market. Our oxygenation level (up
to 100 ppm and greater), the ability of our bottled water to retain this level of oxygenation, even over lengthy periods of time
and the purity of our product, we believe, should give us the ability to become a staple in this specialty waters niche.
We have set a conservative sales objective of 4-6% of the European
and American markets, or $12.5 million U.S. to $20 million U.S., by the year 2017. The fact that AquaBoost™ was seen by hundreds
of distributors at the SIAL in Montreal, Canada in 2001 and that there is already a market in Mexico for the product, gives us
confidence in our product. However, no assurances can be given that the Company will meet these goals.
The Company has held discussions with several large beverage companies
about oxygenating fruit juices. Should these discussions prove successful, the Company would have another major revenue generating
area. Currently, it is too premature to hazard an estimate about the likelihood of finalizing any deals with said corporations.
The Company will also attempt to engage in partnering with other
beverage distributors or leasing its technology for royalties in those regions and for those products where it will not negatively
impact on potential AquaBoost™ sales.
GLOBAL BIOTECH CORP. ("GLOBAL"), formerly (SWORD COMP-SOFT
CORP.) was organized on November 2, 1998. Its goal was to bring interactive healthcare information services utilizing the Internet
to the consumer, the end user, to access what they, as individuals, need.
As of March 5, 2003 this business was sold along with the assumption
of a note payable in the amount of $700,000 to Millenia Hope Inc., its former parent corporation. In exchange, GLOBAL received
30.7 million shares of its outstanding common shares held by Millenia Hope Inc. Subsequently, GLOBAL acquired the exclusive 10
year North American licensing rights to a vehicle tracking system in exchange for 30.7 million of its common shares.
GLOBAL’s vehicle tracking system was supposed to seamlessly
tie together wireless communications and the Internet with global positioning technology to link vehicles to a world of unlimited
wireless services. As of February 24, 2005,GLOBAL’s Board of Directors concluded that its attempt to enter the vehicle tracking
business was unsuccessful and entered into a provisional agreement, with Advanced Fluid Technologies Inc. a Delaware corporation,
to acquire assets from the latter corporation pursuant to entering the bottled water, more specifically the oxygenated bottled
water, market. This Agreement was finalized on August 15, 2007.
GLOBAL’s goal is to position AquaBoost(TM), the bottled oxygenated
water product it acquired, as an energizing alternative to soft drinks and as a beverage with more health benefits than ordinary
water. To date, the aforementioned product has had minimal sales and the Company will endeavor, but can offer no guarantees, to
raise its sales level significantly. Officers and director of the firm have committed to fund the operations of the Company until
sufficient funds have been generated from ongoing business.
In an effort to expand its product line, the Company is working
on developing a new product that we currently refer to as “Aquaboost-VitA: Orange Antioxidant”. This experimental
product
contains water oxygenated using the Aquaboost
™
technology,
vitamin C, vitamin E and apple skin extract. The Company is in the research and testing phase of the product’s
development, and is conducting research into the product’s antioxidant effects and palatability.
The Company’s short-term and medium-term objectives are as
follows:
To attach our oxygenation unit in Quebec to the bottling line of a recognized North American bottler via a joint venture, said objective having been done.
To create a revenue stream through sales from strategic merchandising relationships and highly targeted markets - to this end, the Company is working on forming business relationships with pharmacy chains to place its nutraceutical beverage products in the next 6 to 12 months;
To strengthen its investor relations program, to increase shareholder value and increase public investors’ interest in the Company; and
To complete development of additional oxygenated and non-oxygenated drinks with nutraceutical values, which can be added to the Company’s product offering, distributed by others, or licensed to others.
The Company entered, on October
31, 2010, into an agreement to purchase the rights to a nutraceutical product, specifically a topical cream for women, for a period
of 4 years. The total cost of said agreement was $199,467. The Company is working on marketing this product towards the end of
2013.
GLOBAL’s registration statement, with the Security and Exchange
Commission, was accepted on July 16, 2001 and it was cleared by FINRA on June 16, 2009 to trade its shares on the OTC: BB.
On July 3, 2013 Mr. Leonard
Stella joined the Company as its CEO and a Director.
On July 3, 2013 Mr. Yehuda
Kops joined the Company as its CFO and a Director.
Three months ended May 31, 2012 compared to May 31, 2013.
Professional, selling, general and administrative in 2013
was $120,467 and $14,449 in 2012, a difference of $106,018. This was due to $100,000 of administrative- fees and $6,000 of car
allowances in 2013.
We had net interest expense, on our loans, of $15,188 in 2013
and $14,577 in 2012 and $14,137 of foreign exchange gain in 2012 vs. no gain in 2013.
As a result of the above, we had a net loss of $135,655 in 2013
and$14,.889 in 2012.
Six months ended May 31, 2012 compared to May 31, 2013.
Professional, selling, general and administrative in 2013
was $136,698 and $28,911 in 2012, a difference of $107,787 This was due to $100,000 of administrative - fees and $6,000 of car
allowances in 2013 and higher other SG&A expenses.
We had net interest expense, on our loans, of $30,190 in 2013
and $29,188 in 2012 and a foreign exchange loss of 1,731 in 2012 vs. $19,262 in 2013.
As a result of the above, we had a net loss of $147,626 in 2013
and $59,830 in 2012.
Liquidity and cash flow needs of the company
From March 1, 2013 to May 31, 2013 the company realized $22,436
from operating activities while recording no revenues. From June 1, 2013 to November 30, 2013, the fiscal year- end, the company’s
net cash flow needs will be $200,000.
Item 4T. CONTROLS AND PROCEDURES
QUARTERLY EVALUATION OF THE COMPANY’S
DISCLOSURE CONTROLS AND INTERNAL CONTROLS.
As of August 28, 2013, the date of the report,
our Principal Executive Officer, (CEO) and Chief Financial Officer (CFO) evaluated the effectiveness of the design and operation
of the Company’s disclosure controls and procedures as defined in Rule 13a -15(e) under the Securities Exchange act of 1934,
as amended. Based upon that evaluation, the Principal Executive and Financial Officer concluded that, as of May 31, 2013, the Company’s
disclosure controls and procedures are effective.
Further, there was no change during the last quarter in the Company’s internal
control over financial reporting that has materially affected or is likely to materially affect, the Company’s internal
control over financial reporting.
Part II other information