Globetech Ventures Corp.
(An exploration stage company)
Financial Statements
(Unaudited)
For the nine months ended June 30, 2009
in Canadian dollars
The accompanying notes form an integral part of these financial statements
Globetech Ventures Corp.
(the "Company")
(An exploration stage company)
Financial Statements
For the nine months ended June 30, 2009
NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS
In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company discloses that its auditors have not reviewed the accompanying unaudited financial statements.
The accompanying unaudited financial statements of the Company have been prepared by and are the responsibility of the management of the Company.
"Casey Forward" | "Ping Shen" |
Chief Executive Officer | Chief Financial Officer |
The accompanying notes form an integral part of these financial statements
Globetech Ventures Corp. | ||||||
(An exploration stage company) | ||||||
Balance Sheets | ||||||
(in Canadian dollars) | ||||||
(unaudited) | ||||||
September | ||||||
June 30, 2009 | 30, 2008 | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash | $ | 561 | $ | 15,259 | ||
GST refundable | 437 | 1,083 | ||||
Prepaid expenses | - | - | ||||
998 | 16,342 | |||||
Equipment (note 2) | 1,518 | 2,316 | ||||
Mineral properties (note 3) | - | 109,231 | ||||
Website costs (note 4) | 725,000 | 725,000 | ||||
$ | 727,516 | $ | 852,889 |
LIABILITIES | ||||||
Current Liabilities | ||||||
Accounts payable and accrued liabilities (note 5) | $ | 172,289 | $ | 41,772 | ||
Amount payable pursuant to license agreement (note 4) | 84,584 | 84,584 | ||||
256,873 | 126,356 | |||||
SHAREHOLDERS' EQUITY | ||||||
Capital stock | ||||||
Authorized | ||||||
Unlimited common shares with no par value | ||||||
Issued and outstanding - (note 6) | 36,459,728 | 36,321,603 | ||||
Contributed surplus | 2,925,087 | 2,925,087 | ||||
Deficit accumulated during the exploration stage | (38,914,172 | ) | (38,520,157 | ) | ||
470,643 | 726,533 | |||||
$ | 727,516 | $ | 852,889 |
The accompanying notes form an integral part of these financial statements
Globetech Ventures Corp. | ||||||||||||
(An exploration stage company) | ||||||||||||
Statements of Operations and Deficit | ||||||||||||
(in Canadian dollars) | ||||||||||||
(unaudited) | ||||||||||||
For the three months ended | For the nine months ended | |||||||||||
June 30 | June 30 | |||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||
Administrative expenses | ||||||||||||
Accounting and legal | $ | 4,500 | $ | 3,497 | $ | 29,633 | $ | 55,779 | ||||
Amortization | 265 | 76 | 797 | 227 | ||||||||
Consulting fees | - | 71,465 | 121,571 | 81,465 | ||||||||
Interest and bank charges | 275 | 182 | 550 | 530 | ||||||||
Management fees | - | 18,000 | 36,000 | 54,000 | ||||||||
Office and miscellaneous | 7,577 | 4,458 | 43,822 | 13,873 | ||||||||
Regulatory and transfer agent fees | 658 | 7,263 | 5,906 | 10,505 | ||||||||
Stock-based compensation | - | - | - | 129,946 | ||||||||
Travel and promotion | - | - | - | 19 | ||||||||
Development costs | 12,505 | - | 46,505 | - | ||||||||
Written-off of mineral properties | - | - | 109,231 | - | ||||||||
Net loss for the period | 25,780 | 104,941 | 394,015 | 346,344 | ||||||||
Deficit, beginning of period | (38,888,392 | ) | (38,242,704 | ) | (38,520,157 | ) | (38,001,301 | ) | ||||
Deficit, end of period | $ | (38,914,172 | ) | $ | (38,347,645 | ) | $ | (38,914,172 | ) | $ | (38,347,645 | ) |
Loss per share | $ | 0.00 | $ | 0.01 | $ | 0.01 | $ | 0.02 | ||||
Weighted average number of shares | ||||||||||||
Basic and diluted | 32,039,914 | 20,935,683 | 32,035,059 | 20,766,714 |
The accompanying notes form an integral part of these financial statements
Globetech Ventures Corp. | |||||||||||||||
(An exploration stage company) | |||||||||||||||
Statements of Shareholders' Equity (Deficiency) | |||||||||||||||
(in Canadian dollars) | |||||||||||||||
(unaudited) | |||||||||||||||
Contributed | Deficit | ||||||||||||||
Surplus and | accumulated | ||||||||||||||
Common | Equity portion | during the | |||||||||||||
Number of | Shares issued | of convertible | exploration | ||||||||||||
shares | and fully paid | debentures | stage | Total | |||||||||||
Balance December, 1991 | - | $ | - | $ | - | $ | - | $ | - | ||||||
Issuance of shares for cash | |||||||||||||||
Private placements | 1,280,001 | 159,500 | - | - | 159,500 | ||||||||||
Loss for the period | - | - | - | (32,080 | ) | (32,080 | ) | ||||||||
Balance September 30, 1992 | 1,280,001 | 159,500 | - | (32,080 | ) | 127,420 | |||||||||
Issuance of shares for cash | |||||||||||||||
By way of prospectus | 600,000 | 360,000 | - | - | 360,000 | ||||||||||
Exercise of options | 112,000 | 67,200 | - | - | 67,200 | ||||||||||
Exercise of warrants | 100,000 | 60,000 | - | - | 60,000 | ||||||||||
Issuance of shares for property | 150,000 | 90,000 | - | - | 90,000 | ||||||||||
Share issue costs | - | (83,205 | ) | - | - | (83,205 | ) | ||||||||
Loss for the year | - | - | - | (105,902 | ) | (105,902 | ) | ||||||||
Balance September 30, 1993 | 2,242,001 | 653,495 | - | (137,982 | ) | 515,513 | |||||||||
Issuance of shares for cash | |||||||||||||||
Private placements | 400,000 | 576,000 | - | - | 576,000 | ||||||||||
Share issue costs | - | (60,622 | ) | - | - | (60,622 | ) | ||||||||
Loss for the year | - | - | - | (403,571 | ) | (403,571 | ) | ||||||||
Balance September 30, 1994 | 2,642,001 | 1,168,873 | - | (541,553 | ) | 627,320 | |||||||||
Issuance of shares for cash | |||||||||||||||
Private placements | 418,000 | 1,121,400 | - | - | 1,121,400 | ||||||||||
Exercise of options | 204,000 | 347,440 | - | - | 347,440 | ||||||||||
Issuance of shares for finders fees | 35,069 | 99,570 | - | - | 99,570 | ||||||||||
Share issue costs | - | (108,570 | ) | - | - | (108,570 | ) | ||||||||
Loss for the year | - | - | - | (343,044 | ) | (343,044 | ) | ||||||||
Balance September 30, 1995 | 3,299,070 | 2,628,713 | - | (884,597 | ) | 1,744,116 | |||||||||
Issuance of shares for cash | |||||||||||||||
Private placements | 1,488,000 | 6,178,000 | - | - | 6,178,000 | ||||||||||
Exercise of options | 1,128,584 | 4,161,930 | - | - | 4,161,930 | ||||||||||
Issuance of shares for finders fees | 75,624 | 197,379 | - | - | 197,379 | ||||||||||
Share issue costs | - | (365,874 | ) | - | - | (365,874 | ) | ||||||||
Loss for the year | - | - | - | (1,533,474 | ) | (1,533,474 | ) | ||||||||
Balance September 30, 1996 | 5,991,278 | $ | 12,800,148 | $ | - | $ | (2,418,071 | ) | $ | 10,382,077 |
The accompanying notes form an integral part of these financial statements
Globetech Ventures Corp. | |||||||||||||||
(An exploration stage company) | |||||||||||||||
Statements of Shareholders' Equity (Deficiency) (continued) | |||||||||||||||
(in Canadian dollars) | |||||||||||||||
(unaudited) | |||||||||||||||
Contributed | Deficit | ||||||||||||||
Surplus and | accumulated | ||||||||||||||
Common | Equity portion | during the | |||||||||||||
Number of | Shares issued | of convertible | exploration | ||||||||||||
shares | and fully paid | debentures | stage | Total | |||||||||||
Balance forward | 5,991,278 | $ | 12,800,148 | $ | - | $ | (2,418,071 | ) | $ | 10,382,077 | |||||
Issuance of shares for cash | |||||||||||||||
Exercise of options | 243,000 | 639,730 | - | - | 639,730 | ||||||||||
Exercise of warrants | 845,447 | 3,696,723 | - | - | 3,696,723 | ||||||||||
Issued on conversion of debt | 2,464,950 | 4,821,079 | - | - | 4,821,079 | ||||||||||
Issuance of common shares for | |||||||||||||||
acquisition of subsidiary | 171,282 | 1,124,745 | - | - | 1,124,745 | ||||||||||
Issuance of shares for finders fees | 65,298 | 457,086 | - | - | 457,086 | ||||||||||
Share issue costs | - | (472,562 | ) | - | - | (472,562 | ) | ||||||||
Equity portion of convertible debentures | - | - | 169,760 | - | 169,760 | ||||||||||
Loss for the period | - | - | - | (2,822,786 | ) | (2,822,786 | ) | ||||||||
Balance September 30, 1997 | 9,781,255 | 23,066,949 | 169,760 | (5,240,857 | ) | 17,995,852 | |||||||||
Contingent consideration on acquisition of subsidiary | - | (1,086,901 | ) | - | - | (1,086,901 | ) | ||||||||
Issued on conversion of debt | 277,776 | 261,679 | (59,219 | ) | - | 202,460 | |||||||||
10,059,031 | 22,241,727 | 110,541 | (5,240,857 | ) | 17,111,411 | ||||||||||
Capital stock consolidation (7.5:1) | (8,717,827 | ) | - | - | - | - | |||||||||
Issued on conversion of debt | 221,234 | 519,691 | (110,541 | ) | - | 409,150 | |||||||||
Issued on settlement of debt | 550,000 | 111,152 | - | - | 111,152 | ||||||||||
Loss for year | - | - | - | (20,236,904 | ) | (20,236,904 | ) | ||||||||
Balance September 30, 1998 | 2,112,438 | 22,872,570 | (110,541 | ) | (25,477,761 | ) | (2,605,191 | ) | |||||||
Issued on settlement of debt | 1,433,364 | 1,604,029 | - | - | 1,604,029 | ||||||||||
Loss for the year | - | - | - | (706,147 | ) | (706,147 | ) | ||||||||
Balance September 30, 1999 | 3,545,802 | 24,476,599 | - | (26,183,908 | ) | (1,707,309 | ) | ||||||||
Issuance of shares for cash | |||||||||||||||
Exercise of options | 24,100 | 56,321 | - | - | 56,321 | ||||||||||
Exercise of warrants | 227,273 | 370,612 | - | - | 370,612 | ||||||||||
Issued on conversion of debt | 1,830,073 | 1,078,550 | - | - | 1,078,550 | ||||||||||
Issued on settlement of debt | 220,748 | 489,660 | - | - | 489,660 | ||||||||||
Subscriptions received in advance | - | 369,875 | - | - | 369,875 | ||||||||||
Share issue costs | - | (74,141 | ) | - | - | (74,141 | ) | ||||||||
Loss for the year | - | - | - | (438,663 | ) | (438,663 | ) | ||||||||
Balance September 30, 2000 | 5,847,996 | 26,767,476 | - | (26,622,571 | ) | 144,905 | |||||||||
Issuance of shares for cash | |||||||||||||||
Private placement | 2,000,000 | 456,840 | - | - | 456,840 | ||||||||||
Issued for subscriptions received in advance | 227,273 | 369,875 | - | - | 369,875 | ||||||||||
Subscriptions received in advance | - | (369,875 | ) | - | - | (369,875 | ) | ||||||||
Issued on acquisition of equity investment | 500,000 | 192,075 | - | - | 192,075 | ||||||||||
Issued on settlement of debt | 914,670 | 502,784 | - | - | 502,784 | ||||||||||
Share issue costs | - | (45,492 | ) | - | - | (45,492 | ) | ||||||||
Loss for the year | - | - | - | (1,822,692 | ) | (1,822,692 | ) | ||||||||
Balance September 30, 2001 | 9,489,939 | $ | 27,873,683 | $ | - | $ | (28,445,263 | ) | $ | (571,580 | ) |
The accompanying notes form an integral part of these financial statements
Globetech Ventures Corp. | |||||||||||||||
(An exploration stage company) | |||||||||||||||
Statements of Shareholders' Equity (Deficiency) (continued) | |||||||||||||||
(in Canadian dollars) | |||||||||||||||
(unaudited) | |||||||||||||||
Contributed | Deficit | ||||||||||||||
Surplus and | accumulated | ||||||||||||||
Common | Equity portion | during the | |||||||||||||
Number of | Shares issued | of convertible | exploration | ||||||||||||
shares | and fully paid | debentures | stage - | Total | |||||||||||
Balance forward | 9,489,939 | $ | 27,873,683 | $ | - | $ | (28,445,263 | ) | $ | (571,580 | ) | ||||
Loss for the year | - | - | - | (319,713 | ) | (319,713 | ) | ||||||||
Balance September 30, 2002 | 9,489,939 | 27,873,683 | - | (28,764,976 | ) | (891,293 | ) | ||||||||
Loss for the year | - | - | - | (47,171 | ) | (47,171 | ) | ||||||||
Balance September 30, 2003 | 9,489,939 | 27,873,683 | - | (28,812,147 | ) | (938,464 | ) | ||||||||
Issuance of shares for cash | |||||||||||||||
Private placements | 1,797,674 | 1,299,990 | - | - | 1,299,990 | ||||||||||
Issued on conversion of debt | 652,000 | 432,000 | - | - | 432,000 | ||||||||||
Acquisition of Brazil Gold Ltda. | 2,000,000 | 4,050,000 | - | - | 4,050,000 | ||||||||||
Share issue costs | - | (135,690 | ) | - | - | (135,690 | ) | ||||||||
Contributed surplus | - | - | 2,429,100 | - | 2,429,100 | ||||||||||
Loss for the year | - | - | - | (7,302,024 | ) | (7,302,024 | ) | ||||||||
Balance September 30, 2004 | 13,939,613 | 33,519,983 | 2,429,100 | (36,114,171 | ) | (165,088 | ) | ||||||||
Issuance of shares for cash | |||||||||||||||
Private placement - August 4, 2004 - shares | |||||||||||||||
issued due to repricing clause | 302,326 | - | - | - | - | ||||||||||
Acquisition of Gladys Lake option | 50,000 | 18,504 | - | - | 18,504 | ||||||||||
Issued on conversion of debt | 180,000 | 76,704 | - | - | 76,704 | ||||||||||
Contributed surplus | - | - | 579,654 | - | 579,654 | ||||||||||
Loss for the year | - | - | - | (778,853 | ) | (778,853 | ) | ||||||||
Balance September 30, 2005 | 14,471,939 | 33,615,191 | 3,008,754 | (36,893,024 | ) | (269,079 | ) | ||||||||
Warrant shares issued | 257,812 | - | - | - | - | ||||||||||
Acquisition of Gladys Lake option | 50,000 | 10,500 | - | - | 10,500 | ||||||||||
Issued on conversion of debt | 861,000 | 199,270 | - | - | 199,270 | ||||||||||
Loss for the year | - | - | - | (507,426 | ) | (507,426 | ) | ||||||||
Balance September 30, 2006 | 15,640,751 | 33,824,961 | 3,008,754 | (37,400,450 | ) | (566,735 | ) | ||||||||
Issuance of shares for cash | |||||||||||||||
Exercise of options | 900,000 | 603,876 | (306,876 | ) | 297,000 | ||||||||||
Acquisition of Gladys Lake option | 50,000 | 16,500 | - | - | 16,500 | ||||||||||
Issued on conversion of debt | 3,731,128 | 780,330 | - | - | 780,330 | ||||||||||
Loss for the year | - | - | - | (600,851 | ) | (600,851 | ) | ||||||||
Balance September 30, 2007 | 20,321,879 | 35,225,667 | 2,701,878 | (38,001,301 | ) | (73,756 | ) | ||||||||
Issuance of shares for cash | |||||||||||||||
Private placements | 3,000,000 | 150,000 | - | - | 150,000 | ||||||||||
Acquisition of Gladys Lake option | 100,000 | 15,000 | - | - | 15,000 | ||||||||||
Issued on conversion of debt | 2,608,484 | 330,936 | - | - | 330,936 | ||||||||||
Acquisition of technology | 6,000,000 | 600,000 | - | - | 600,000 | ||||||||||
Contributed surplus | - | - | 223,209 | - | 223,209 | ||||||||||
Loss for the year | - | - | - | (518,856 | ) | (518,856 | ) | ||||||||
Balance September 30, 2008 | 32,030,363 | 36,321,603 | 2,925,087 | (38,520,157 | ) | 726,533 | |||||||||
Issued on conversion of debt | 850,000 | 138,125 | - | - | 138,125 | ||||||||||
Loss for the period | - | - | - | (394,015 | ) | (394,015 | ) | ||||||||
Balance June 30, 2009 | 32,880,363 | $ | 36,459,728 | $ | 2,925,087 | $ | (38,914,172 | ) | $ | 470,643 |
The accompanying notes form an integral part of these financial statements
Globetech Ventures Corp. | ||||||||||||
(An exploration stage company) | ||||||||||||
Statements of Cash Flows | ||||||||||||
(in Canadian dollars) | ||||||||||||
(unaudited) | ||||||||||||
For the three months ended | For the nine months ended | |||||||||||
June 30 | June 30 | |||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||
Operating Activities | ||||||||||||
Net loss for the period | $ | (25,780 | ) | $ | (104,941 | ) | $ | (394,015 | ) | $ | (346,344 | ) |
Items not involving cash | ||||||||||||
Amortization | 265 | 76 | 797 | 227 | ||||||||
Write-down of mineral properties | - | - | 109,231 | - | ||||||||
Shares issued for debt | - | 113,406 | - | 113,406 | ||||||||
Stock-based compensation | - | - | - | 129,946 | ||||||||
Change in non-cash working capital | ||||||||||||
GST refundable and other receivables | 1,692 | 3,641 | 646 | 11,596 | ||||||||
Prepaids | 12,505 | - | - | - | ||||||||
Accounts payable and accrued liabilities | 10,849 | (89,275 | ) | 268,643 | 18,190 | |||||||
Net cash provided used in operating activities | (469 | ) | (77,093 | ) | (14,698 | ) | (72,979 | ) | ||||
Financing Activities | ||||||||||||
Funds received from private placement | - | 150,000 | - | 150,000 | ||||||||
Net cash provided from financing activities | - | 150,000 | - | 150,000 | ||||||||
Investing Activities | ||||||||||||
Investment in shares | - | (8,216 | ) | - | (8,216 | ) | ||||||
Net cash used in investing activities | - | (8,216 | ) | - | (8,216 | ) | ||||||
Change in cash and cash equivalents | (469 | ) | 64,691 | (14,698 | ) | 68,805 | ||||||
Cash and cash equivalents at beginning of period | 1,030 | 4,242 | 15,259 | 128 | ||||||||
Cash and cash equivalents at end of period | $ | 561 | $ | 68,933 | $ | 561 | $ | 68,933 |
The accompanying notes form an integral part of these financial statements
Globetech Ventures Corp. |
Notes to Financial Statements |
June 30, 2009 |
(in Canadian dollars) |
(unaudited) |
1. | Nature of Operations and Significant Accounting Policies |
Globetech Ventures Corp. ("the Company") is incorporated under the laws of British Columbia, Canada. Its operating activities include a website service business and the retention of an interest in a mineral property. | |
These interim financial statements should be read in conjunction with the audited September 30, 2008 annual financial statements. | |
These interim financial statements follow the same accounting policies and methods of their application as in the September 30, 2008 annual financial statements. These interim financial statements do not conform in all respects to the requirements of Canadian generally accepted accounting principles for annual financial statements in that they do not include all note disclosures. | |
The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and expenses for the periods reported. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements | |
The following accounting pronouncements are applicable to future reporting periods. The Company is currently evaluating the effects of adopting these standards: | |
On January 8, 2008, the CICA issued Section 3064, Goodwill and Intangible Assets. Section 3064, establishes standards for the recognition measurement and disclosure of goodwill and intangible assets. Section 3064 is effective for annual and interim financial statements for fiscal years beginning on or after October 1, 2008 and will be adopted on October 1, 2008. | |
The Canadian Accountability Standards Board (“AcSB”) amended CICA Handbook Section 1400, to include requirements for management to assess and disclose an entity's ability to continue as a going concern. This section applies to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2008 and will be adopted by the Company on October 1, 2008. | |
In 2006, Canada's Accounting Standards Board (AcSB) ratified a strategic plan that will result in the convergence of Canadian GAAP, as used by public companies, with International Financial Reporting Standards over a transitional period. The AcSB has developed and published a detailed implementation plan, with a changeover date for fiscal years beginning on or after January 1, 2011. This initiative is in its early stages as of the date of these annual financial statements. Accordingly, it would be premature to assess the impact of the initiative on the Company at this time. | |
2. | Equipment |
June 30, 2009 | ||||||||||
Accumulated | Net book | |||||||||
Cost | amortization | value | ||||||||
Office equipment | $ | 5,222 | $ | 5,081 | $ | 141 | ||||
Computer equipment | 28,439 | 27,062 | 1,377 | |||||||
$ | 33,661 | $ | 32,143 | $ | 1,518 | |||||
September 30, 2008 | ||||||||||
Accumulated | Net book | |||||||||
Cost | amortization | value | ||||||||
Office equipment | $ | 5,222 | $ | 5,056 | $ | 166 | ||||
Computer equipment | 28,439 | 26,289 | 2,150 | |||||||
$ | 33,661 | $ | 31,345 | $ | 2,316 |
Globetech Ventures Corp. |
Notes to Financial Statements |
June 30, 2009 |
(in Canadian dollars) |
(unaudited) |
3. | Mineral Properties and Deferred Mineral Property Expenditures |
On February 28, 2005, Globetech announced that it had entered into an option agreement whereby the Company can earn a 100% interest in the Gladys Lake porphyry molybdenum property from Mr. John Peter Ross of Whitehorse, Yukon. | |
In order to earn a 100% interest, the Company is required to pay a total of $95,000, in ascending payments over a period of four years. The agreement also calls for the issuing of 400,000 shares of Globetech over this same period. Since April 12, 2005, the Company has issued 250,000 shares from treasury. After the four-year period, the Company agrees to pay an annual advance royalty of $25,000 commencing February 28, 2010. On completion of a bankable feasibility, the Company will issue to the vendor a further 400,000 shares of Globetech. The vendor will retain a 3% Net Smelter Return Royalty, 2% of which can be purchased by the Company on a pro-rata basis for the sum of $2,000,000 at any time within five years of commencement of commercial production. An initial down payment of $10,000 was made. | |
On November 13, 2007, the Company announced that it had entered into an option agreement with Forbes and Manhattan B.C. Ltd. ("Manhattan"). Under this agreement Manhattan may earn a 65% interest in the Gladys Lake molybdenum property by incurring $1.0 million in exploration and development expense and making cash payments to the vendor. Globetech will continue to issue shares to the vendor as previously agreed. |
During 2008, the Company paid $NIL (2007 - $NIL) and issued an additional 100,000 (2007 - 50,000) shares. Under the option agreement with Manhattan, the Company no longer needed to make cash payments to the vendor.
The schedule of share issuances is as follows: | Date | Shares | Status | |
March 21, 2005/06/07 | 150,000 | Issued | ||
March 21, 2008 | 100,000 | Issued | ||
March 21, 2009 | 150,000 | not issued |
For the year | ||||||||||
For the nine | ended | |||||||||
months ended | September 30, | Cumulative to | ||||||||
The Company has incurred the following costs on the Gladys Lake property: | June 30, 2008 | 2008 | June 30, 2009 | |||||||
Balance forward | $ | 109,231 | $ | 109,231 | $ | - | ||||
Acquisition costs | - | 15,000 | 85,504 | |||||||
Exploration costs | ||||||||||
Report | - | - | 13,199 | |||||||
Assessment work | - | - | 1,789 | |||||||
Geologist | - | - | 4,000 | |||||||
Transportation | - | - | 4,739 | |||||||
109,231 | 124,231 | 109,231 | ||||||||
Written-off | (109,231 | ) | (15,000 | ) | (109,231 | ) | ||||
Balance, end of period | $ | - | $ | 109,231 | $ | - |
The project has been abandoned and all costs incurred have been written-off to operations.
Globetech Ventures Corp. |
Notes to Financial Statements |
June 30, 2009 |
(in Canadian dollars) |
(unaudited) |
4. | Website Costs |
The Company has entered into an agreement to license proprietary website software. The Company has agreed to pay an initial fee of $125,000 and issue six million shares (issued at a price of $0.10 per share as agreed to between the parties) in consideration of the license and the basic system. The Company has paid $40,418 towards the initial fee with the balance payable on or before December 31, 2009. The Company also agreed to pay a maintenance fee of $6,000 per month which provides ongoing services. The initial term is for one year where after the Company has the right to renew on an annual basis unless terminated by the Company by giving three month's notice. The licensor provides a basic host of services, and will provide or write additional program services at cost plus 20% plus royalties. |
Intangible Assets can be summarized as follows: | ||||
Balance, September 30, 2007 | $ | - | ||
License fee | 125,000 | |||
Website development costs | 600,000 | |||
Balance, September 30, 2008 | $ | 725,000 | ||
Website development costs | - | |||
Balance, June 30, 2009 | $ | 725,000 |
5. | Related Parties |
The Company has entered into the following transactions with related parties which are in the normal course of operations and have been valued in these financial statements at the exchange amount which is the amount of consideration established and agreed to by the related parties. |
For the nine | For the nine | ||||||
months ended | months ended | ||||||
June 30, 2009 | June 30, 2008 | ||||||
Management fees to officers of the Company | $ | 36,000 | $ | 54,000 | |||
Consulting fees | - | 10,000 | |||||
Accounting fees to an officer | 13,500 | 6,000 | |||||
$ | 49,500 | $ | 70,000 |
Included in accounts payable and accrued liabilities was $18,000 (September 30,2008 - $3,865) due to a director, and $91,878 (September 30, 2008 - $7,000) due to officers of the Company.
Amounts due to related parties do not bear interest, are unsecured, and have no fixed payment terms. Accordingly the fair value cannot be readily determined.
6. | Share Capital | |
a) | Common Shares | |
The authorized share capital of the Company is unlimited without par value. |
b) | Issued | Number of Shares | Share Capital | ||||||||
Balance, September 30, 2007 | 20,321,879 | $ | 35,225,667 | ||||||||
Shares issued for debt | 2,608,484 | $ | 0.13 | 330,936 | |||||||
Private placement | 3,000,000 | $ | 0.05 | 150,000 | |||||||
Acquisition of technology (note 4) | 6,000,000 | $ | 0.10 | 600,000 | |||||||
Acquisition of Gladys Lake option (note 3) | 100,000 | $ | 0.15 | 15,000 | |||||||
Balance, September 30, 2008 | 32,030,363 | $ | 36,321,603 | ||||||||
Shares issued for services | 850,000 | $ | 0.16 | 138,125 | |||||||
Balance, June 30, 2009 | 32,880,363 | $ | 36,459,728 |
Globetech Ventures Corp. |
Notes to Financial Statements |
June 30, 2009 |
(in Canadian dollars) |
(unaudited) |
6. | Share Capital continued |
During the period ended June 30, 2009: | |
The Company issued shares for services by issuing 850,000 shares at an average price of $0.16 for amounts of $138,125. | |
During the year ended September 30, 2008: | |
The Company completed a private placement of 3,000,000 units at $0.05 per unit. Each unit consists of one common share one non-transferable share purchase warrant enabling the holder to purchase one common share for $0.10 exercisable June 10, 2009. | |
The Company entered into debt settlement agreements to retire debt of $330,938 by issuing 2,608,484 shares at an price of $0.13. Included in this amount is the issuance of 241,667 shares for interest on loans of $36,250 and the issuance 1,155,000 for amounts owing to related parties of $115,500. |
c) | Stock Options | |
The Company has adopted an incentive stock option plan (the "Plan"). The essential elements of the Plan provide that the aggregate number of shares of the Company's capital stock issuable pursuant to options granted under the Plan may not exceed 5,800,630 shares. Options granted under the Plan may have a maximum term of five (5) years. The exercise price of the options granted under the Plan will not be less than the fair market value of the common stock at the date of grant. The Plan Administrator shall specify the vesting schedule for each stock option granted. | ||
The Company is authorized to grant options to directors, employees and consultants. Stock option transactions and the number of stock options outstanding are summarized as follows: |
Number of | Weighted average | |||||||
Options | exercise price | |||||||
Outstanding and exercisable at September 30, 2007 | 1,200,000 | US$ | 0.78 | |||||
Options granted | 1,800,000 | 0.16 | ||||||
Options cancelled / expired | (1,200,000 | ) | US$ | 0.78 | ||||
Options exercised | - | - | ||||||
Outstanding and exercisable at September 30, 2008 | 1,800,000 | 0.16 | ||||||
Options granted | - | - | ||||||
Options cancelled / expired | - | |||||||
Options exercised | - | - | ||||||
Outstanding and exercisable at June 30, 2009 | 1,800,000 | $ | 0.16 |
The Company has 1,800,000 stock options of which 1,600,000, exercisable at a price of $0.15, were granted on December 20, 2007 that expire on December 20, 2010 and 200,000, exercisable at a price of $0.20, were granted on July 31, 2008, expiring on July 31, 2010.
The following table summarizes information about stock options outstanding at June 30, 2009:
Options Outstanding | Options Exercisable | |||||||||||||||
Weighted | ||||||||||||||||
average | Weighted | Weighted | ||||||||||||||
Number | remaining | average | Number | average | ||||||||||||
outstanding at | contractual life | exercise | exercisable at | exercise | ||||||||||||
Range of exercise prices | June 30, 2009 | (years) | price | June 30, 2009 | price | |||||||||||
$ 0.15 - $0.20 | 1,800,000 | 1.4 $ | 0.16 | 1,800,000 $ | 0.16 |
d) | Warrants | |
Pursuant to a private placement of 3,000,000 units, there are 3,000,000 warrants exercisable at $0.10 to purchase one common share until June 10, 2009. At June 30, 2009 no warrants are outstanding. |
Globetech Ventures Corp. |
Notes to Financial Statements |
June 30, 2009 |
(in Canadian dollars) |
(unaudited) |
7. | Capital disclosures |
The Company considers its capital to consist of its debt and equity and its objectives when managing capital are to the entity's ability to continue as a going concern and to identify, acquire and explore mineral properties. The Board of does not establish quantitative return on capital criteria for management but rather relies on the expertise of the management to sustain future development of the business. There were no changes in the Company's approach to management during fiscal 2009. Neither the Company nor its subsidiary are subject to externally imposed capital requirements | |
8. | Financial instruments |
At June 30, 2009 the Company has designated its cash and cash equivalents as held-for-trading; accounts receivable as loans and receivables; and accounts payable and accrued liabilities as liabilities. | ||
i) | Interest rate risk | |
The Company is not exposed to significant interest rate risk due to the short-term maturity of its monetary assets and liabilities. | ||
ii) | Credit risk | |
The Company is not exposed to significant credit risk on its financial assets due to cash being placed with major financial institutions and GST recoverable is due from government agencies. | ||
iii) | Currency risk | |
The Company is not exposed to foreign currencies. | ||
iv) | Liquidity risk | |
The Company's approach to managing liquidity risk is to provide reasonable assurance that it can provide sufficient capital to meet liabilities when due. Management does not feel that the Company is exposed to significant liquidity risk. The Company's ability to settle long term liabilities is dependent on future liquidity from capital sources. | ||
v) | Other price and market risk | |
The Company's financial instruments have short-term liabilities of $NIL and it is exposed to other price and market risks should the fair value of future cash flows from financial instruments fluctuate. | ||
Management does not feel that the Company is exposed to significant risk as its financial instruments are not expected to significantly fluctuate over the short term. |