NOTES
TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
May
31, 2018
1.
|
Organization
and nature of operations
|
Globe
Net Wireless Corp. (“the Company”) was incorporated in the State of Nevada, USA on September 4, 2009. The Company
is in its early development stage since its formation and has realized limited revenues from its planned operations. At the outset,
the Company has been engaged in the development of a telecommunication business to provide internet and related services to both
consumers and businesses currently in under serviced or unserviced areas at real broadband speeds through the proprietary wireless
technology it acquired. During fiscal 2017, the Company entered the software mobile application industry through the development
of the TextPro Connect app and the BizPro app. These are utility services app specifically designed for the mobile business market.
The
Company has chosen an August 31 year end.
2.
|
Basis
of Presentation - Going Concern Uncertainties
|
These
financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America,
which contemplate continuation of the Company as a going concern. However, the Company has limited operations and has sustained
operating losses resulting in a deficit.
The
Company has accumulated a deficit of $249,741 since inception of September 4, 2009, has yet to achieve profitable operations and
further losses are anticipated in the development of its business. The Company’s ability to continue as a going concern
is in substantial doubt and is dependent upon obtaining additional financing and/or achieving a sustainable profitable level of
operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The
Company may seek additional equity as necessary and it expects to raise funds through private or public equity investment in order
to support existing operations and expand the range of its business. There is no assurance that such additional funds will be
available for the Company on acceptable terms, if at all.
3.
|
Interim
reporting and significant accounting policies
|
The
interim condensed financial statements are prepared under the accrual basis of accounting in accordance with accounting principles
generally accepted in the United States of America. While the information presented is unaudited, it includes all adjustments,
which are, in the opinion of management, necessary to present fairly the financial position, result of operation and cash flows
for the interim periods presented in accordance with accounting principles generally accepted in the United States of America.
All adjustments are of a normal recurring nature. It is suggested that the interim condensed financial statements be read in conjunction
with the Company’s August 31, 2017 annual financial statements. Operating results for the nine months period ended May 31,
2018 are not necessarily indicative of the results that can be expected for the year ended August 31, 2018.
There
have been no changes in the accounting policies from those disclosed in the notes to the audited financial statements for the
year ended August 31, 2017.
Recently
issued accounting pronouncements
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. Management does not believe that any pronouncement not yet effective but recently
issued would, if adopted, have a material effect on the accompanying financial statements.
GLOBE
NET WIRELESS CORP.
NOTES
TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
May
31, 2018
The
Company contracted out the development of utility software applications (“apps”). The assets are amortized over 3
years on a straight-line basis.
May
31, 2018
|
|
August
31, 2017
|
|
Item
|
|
Cost
|
|
|
Accumulated
Amortization
|
|
|
Net
|
|
|
Costs
|
|
|
Accumulated
Amortization
|
|
|
Net
|
|
Text
Pro App
|
|
$
|
8,333
|
|
|
$
|
4,167
|
|
|
$
|
4,166
|
|
|
$
|
8,333
|
|
|
$
|
2,083
|
|
|
$
|
6,250
|
|
Biz
Pro App
|
|
|
1,913
|
|
|
|
903
|
|
|
|
1,010
|
|
|
|
1,913
|
|
|
|
425
|
|
|
|
1,488
|
|
Total
|
|
$
|
10,246
|
|
|
$
|
5,070
|
|
|
$
|
5,176
|
|
|
$
|
10,246
|
|
|
$
|
2,508
|
|
|
$
|
7,738
|
|
The
company has four notes payable that are unsecured, bear interest at 8% per annum and are due on demand. Interest has not been
paid and is classified with accrued liabilities for financial statement purposes. The principal and interest owing as of May 31,
2018 is as follows:
|
|
May
31, 2018
|
|
|
August
31, 2017
|
|
Date
of Issue
|
|
Principal
|
|
|
Interest
|
|
|
Principal
|
|
|
Interest
|
|
September
16, 2011
|
|
$
|
5,000
|
|
|
$
|
2,684
|
|
|
$
|
5,000
|
|
|
$
|
2,385
|
|
October 4,
2011
|
|
|
5,000
|
|
|
|
2,664
|
|
|
|
5,000
|
|
|
|
2,385
|
|
November 4,
2011
|
|
|
10,000
|
|
|
|
5,260
|
|
|
|
5,000
|
|
|
|
4,662
|
|
December
3, 2012
|
|
|
10,000
|
|
|
|
4,394
|
|
|
|
10,000
|
|
|
|
3,7966
|
|
|
|
$
|
30,000
|
|
|
$
|
15,002
|
|
|
$
|
30,000
|
|
|
$
|
13,208
|
|
6.
|
Convertible
Note Payable
|
There
are five convertible notes payable that are unsecured, bearing interest at 8% per annum, due on demand, and convertible into shares
at the lenders’ option at a conversion price of $0.005 per share. Interest has not been paid and is classified with accrued
liabilities for financial statement purposes.
There
was no value assigned to the conversion feature of these notes as the shares that would have been issued on conversion would not
have been readily convertible into cash. The principal and interest owing as at May 31, 2018 is as follows:
|
|
May
31, 2018
|
|
|
August
31, 2017
|
|
Date
of Issue
|
|
Principal
|
|
|
Interest
|
|
|
Principal
|
|
|
Interest
|
|
May
17, 2013
|
|
$
|
10,000
|
|
|
$
|
4,033
|
|
|
$
|
10,000
|
|
|
$
|
3,434
|
|
September
11, 2015
|
|
|
10,000
|
|
|
|
2,176
|
|
|
|
10,000
|
|
|
|
1,578
|
|
November 12,
2015
|
|
|
5,000
|
|
|
|
1,020
|
|
|
|
5,000
|
|
|
|
721
|
|
November 13,
2015
|
|
|
5,000
|
|
|
|
1,019
|
|
|
|
5,000
|
|
|
|
720
|
|
April
11, 2016
|
|
|
500
|
|
|
|
85
|
|
|
|
500
|
|
|
|
56
|
|
|
|
$
|
30,500
|
|
|
$
|
8,333
|
|
|
$
|
30,500
|
|
|
$
|
6,509
|
|
GLOBE
NET WIRELESS CORP.
NOTES
TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
May
31, 2018
There
are two convertible notes payable that bear interest at 8% per annum, due on demand and convertible into shares at the lenders’
option at a conversion price of $0.5625 per share. Interest has not been paid and is classified with accrued liabilities for financial
statement purposes.
One
note for $20,000 was issued for which no value was assigned to the conversion feature as the shares that would have been issued
on conversion would not have been readily convertible into cash.
|
|
May
31, 2018
|
|
|
August
31, 2017
|
|
Date
of Issue
|
|
Principal
|
|
|
Interest
|
|
|
Principal
|
|
|
Interest
|
|
July
11, 2016
|
|
$
|
20,000
|
|
|
$
|
3,020
|
|
|
$
|
20,000
|
|
|
$
|
1,823
|
|
Another
note for $20,000 was issued on October 31, 2016, when the market price per share was $1.48. The conversion feature was valued
at $20,000. $1,200 was accreted and charged to interest during the nine months ended May 31, 2018 ($1,333 for the year ended August
31, 2017). At May 31, 2018, the unamortized discount was $17,467.
|
|
(1)
May 31, 2018
|
|
|
August
31, 2017
|
|
|
|
Principal
|
|
|
Interest
|
|
|
Principal
|
|
|
Interest
|
|
Proceeds
on issue
|
|
$
|
20,000
|
|
|
|
-
|
|
|
$
|
20,000
|
|
|
|
-
|
|
Value
assigned to conversion feature
|
|
|
20,000
|
|
|
|
-
|
|
|
|
20,000
|
|
|
|
-
|
|
Value
of convertible note payable at issuance
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Accretion
charges
|
|
$
|
2,533
|
|
|
|
-
|
|
|
$
|
1,333
|
|
|
|
-
|
|
Interest
|
|
|
-
|
|
|
$
|
2,529
|
|
|
|
-
|
|
|
$
|
1,333
|
|
Balance,
convertible note payable, end of period
|
|
$
|
2,533
|
|
|
$
|
2,529
|
|
|
$
|
1,333
|
|
|
$
|
1,333
|
|
There
is one convertible note payable that bear interest at 10% per annum, due on demand and convertible at a conversion price of $0.10
per share at the lender’s option. The interest is classified as accrued liabilities for financial statement purposes.
There
was no beneficial conversion feature at the time of issuance and, accordingly, no value has been assigned to the conversion feature.
|
|
May
31, 2018
|
|
|
August
31, 2017
|
|
Date
of Issue
|
|
Principal
|
|
|
Interest
|
|
|
Principal
|
|
|
Interest
|
|
April
17, 2017
|
|
$
|
20,000
|
|
|
$
|
2,241
|
|
|
$
|
20,000
|
|
|
$
|
745
|
|
GLOBE
NET WIRELESS CORP.
NOTES
TO THE INTERIM CONDENSED FINANCIAL STATEMENTS
May
31, 2018
There
is one convertible note payable that bears interest at 8% per annum, due on demand and convertible at a conversion price of $0.02
per share at the lender’s option. There was no beneficial conversion feature at the time of issuance and, accordingly, no
value has been assigned to the conversion feature.
|
|
May
31, 2018
|
|
|
August
31, 2017
|
|
Date
of Issue
|
|
Principal
|
|
|
Interest
|
|
|
Principal
|
|
|
Interest
|
|
April
04, 2018
|
|
$
|
25,000
|
|
|
$
|
309
|
|
|
$
|
-
|
|
|
$
|
-
|
|
A
summary of the value assigned to the convertible debt and accrued interest thereon is as follows:
|
|
May
31, 2018
|
|
|
August
31, 2017
|
|
Conversion
price of notes into shares
|
|
Convertible
debt
|
|
|
Interest
|
|
|
Convertible
debt
|
|
|
Interest
|
|
$0.005
|
|
$
|
30,500
|
|
|
$
|
8,333
|
|
|
$
|
30,500
|
|
|
$
|
6,509
|
|
$0.5625
|
|
|
22,533
|
|
|
|
5,550
|
|
|
|
21,333
|
|
|
|
3,156
|
|
$0.10
|
|
|
20,000
|
|
|
|
2,241
|
|
|
|
20,000
|
|
|
|
745
|
|
$0.02
|
|
|
25,000
|
|
|
|
309
|
|
|
|
|
|
|
|
|
|
|
|
$
|
98,033
|
|
|
$
|
16,433
|
|
|
$
|
71,833
|
|
|
$
|
10,410
|
|
There
were no warrants or stock options outstanding as of May 31, 2018.
There
were no significant non-cash transactions during the period ended May 31, 2018.
FORWARD
LOOKING STATEMENTS
Statements
made in this Form 10-Q that are not historical or current facts are “forward-looking statements” made pursuant to
the safe harbor provisions of Section 27A of the Securities Act of 1933 (the “Act”) and Section 21E of the Securities
Exchange Act of 1934. These statements often can be identified by the use of terms such as “may,” “will,”
“expect,” “believe,” “anticipate,” “estimate,” “approximate” or “continue,”
or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We
wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.
Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking
statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events
to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim
any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such
statement or to reflect the occurrence of anticipated or unanticipated events.