SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒  Quarterly Report Pursuant to Section 13 or 15(d) Securities Exchange Act of 1934 for Quarterly Period Ended March 31, 2016

-OR-

☐  Transition Report Pursuant to Section 13 or 15(d) of the Securities And Exchange Act of 1934 for the transaction period from _________ to________

Commission File Number 333-133961

Globalink, Ltd.

(Exact name of registrant as specified in its charter)

Nevada	06-1812762
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

365 Boundary Road Vancouver, BC	V5K 4S1
(Address of principal executive offices)	(Zip Code)

(604) 828-8822

(Registrant's telephone number, including area code)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☐  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerate filer, or a small reporting company as defined by Rule 12b-2 of the Exchange Act):

Large accelerated filer  ☐	Non-accelerated filer  ☐
Accelerated filer  ☐	Smaller reporting company  ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

The number of outstanding shares of the registrant's common stock, May 15, 2016: Common Stock - 45,585,000

As used herein, the terms “Globalink”, “Company,” “we,” “our,” “us,” “it,” and “its” refer to Globalink, Ltd., a Nevada corporation and its wholly owned subsidiaries, unless otherwise indicated.

In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly the Company’s financial position as of March 31, 2016 and the results of its operations for the three month periods ended March 31, 2016 and 2015 and its cash flows for the three month periods ended March 31, 2016 and 2015.

The quarterly financial statements are presented in accordance with the requirements of Form 10-Q and do not include all of the disclosures required by accounting principles generally accepted in the United States of America. For additional information, reference is made to the Company’s audited financial statements filed with Form 10-K for the years ended December 31, 2015. The results of operations for the three month periods ended March 31, 2016 and 2015 are not necessarily indicative of operating results for the full year.

1 

GLOBALINK, INC.

FORM 10-Q

For the quarterly period ended March 31, 2016

INDEX

	Page
PART 1 - FINANCIAL INFORMATION
Item 1.  Financial Statements (Unaudited)	3
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3. Quantitative and Qualitative Disclosure About Market Risk	26
Item 4.  Controls and Procedures	27
PART II – OTHER INFORMATION
Item 1.  Legal Proceedings	28
Item 1A.  Risk Factors	28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.  Defaults upon Senior Securities	28
Item 4.  Mine Safety Disclosure	28
Item 5.  Other Information	28
Item 6.  Exhibits	28
SIGNATURES	29

2 

GLOBALINK, LTD.

Condensed Consolidated Balance Sheets

(Expressed in U.S. Dollars)

(Unaudited)

	March 31, 2016			December 31, 2015
	$			$
Assets
Current assets
Cash and cash equivalents (note 3)		677,221			758,355
Accounts receivable (note 6)		157,926			92,464
Other current assets (note 4)		223,547			79,206
Total current assets		1,058,694			930,025
Inventories (note 5)		1,352			25,213
Construction in progress (note 8)		86,159			12,884
Growing crops (note 9)		257,579			132,168
Fixed assets (note 7)		73,919			54,402
Goodwill		274,449			274,449
Total assets		1,752,152			1,429,141
Liabilities
Current liabilities
Accounts payable and accrued liabilities (note 10)		466,220			338,073
Amounts due to related parties (note 12)		5,000			—
Loan payable to related party (note 12)		232,530			—
Other current liabilities (note 11)		19,310			9,305
Total current liabilities		723,060			347,378
Shareholders’ equity
Common shares, $0.0002 par value; Authorized - 500,000,000 common shares; shares issued and outstanding – 45,585,000 (December 31, 2015 – 43,585,000) (note 13)		9,117			8,717
Additional paid-in-capital (note 13)		1,791,888			1,660,415
Accumulated other comprehensive loss		(18,725	)		(20,013	)
Deficit		(753,188	)		(567,356	)
Total shareholders’ equity		1,029,092			1,081,763
Total liabilities and shareholders’ equity		1,752,152			1,429,141

The notes are an integral part of these condensed consolidated interim financial statements.

3 

GLOBALINK, LTD.

Condensed Consolidated Statements of Comprehensive Loss

(Expressed in U.S. Dollars)

(Unaudited)

	2016			2015
	$			$
Revenue (note 14)		33,096			71,921
General and administrative expenses
Accounting and legal		800			574
Amortization (note 7)		734			—
Director and management fees (note 12)		15,000			15,000
Foreign exchange gain		(7,136	)		(594	)
Investor relations (note 13)		12,000			—
Research and development		8,796			—
Rent		9,093			5,209
Salaries and benefits		87,026			52,342
Stock-based compensation (notes 12 and 13)		51,873			—
Telephone		2,043			1,870
Travel		10,747			7,140
Transfer agent and filing fees		14,732			15,885
Other general and administrative expenses		13,220			2,328
Total general and administrative expenses		(218,928	)		(99,754	)
Net loss for the period		(185,832	)		(27,833	)
Other comprehensive income (loss)
Exchange difference on translating foreign operations		1,288			1,696
Comprehensive loss		(184,544	)		(26,137	)
Basic and diluted weighted average number of common shares outstanding		44,482,512			42,485,000
Basic and diluted loss per common share		(0.00	)		(0.00	)

The notes are an integral part of these condensed consolidated interim financial statements.

4 

GLOBALINK, LTD.

Condensed Consolidated Statements of Changes in Equity

(Expressed in U.S. Dollars)

(Unaudited)

	Common shares			Additional paid-in-capital		Accumulated other comprehensive income (loss)			Deficit			Total
		#	$		$		$			$			$
December 31, 2014		42,485,000	8,497		1,459,703		(7,691	)		(289,066	)		1,171,443
Private placements		1,100,000	220		109,780		—			—			110,000
Stock-based compensation		—	—		90,932		—			—			90,932
Net loss for the year		—	—		—		—			(278,290	)		(278,290	)
Foreign currency translation difference		—	—		—		(12,322	)		—			(12,322	)
December 31, 2015		43,585,000	8,717		1,660,415		(20,013	)		(567,356	)		1,081,763
Shares issued for investor relations fee		2,000,000	400		79,600		—			—			80,000
Stock-based compensation		—	—		51,873		—			—			51,873
Net loss for the period		—	—		—		—			(185,832	)		(185,832	)
Foreign currency translation difference		—	—		—		1,288			—			1,288
March 31, 2016		45,585,000	9,117		1,791,888		(18,725	)		(753,188	)		1,029,092

The notes are an integral part of these condensed consolidated interim financial statements.

5 

GLOBALINK, LTD.

Condensed Consolidated Statements of Cash Flows

(Expressed in U.S. Dollars)

(Unaudited)

For the three months ended March 31,

	2016			2015
	$			$
Cash provided by (used in):
Operating activities
Net loss for the period		(185,832	)		(27,833	)
Non-cash items:
Amortization		734			—
Stock-based compensation		51,873			—
Shares issued for investor relations fee		12,000			—
Changes in non-cash working capital:
Increase in accounts receivable		(55,790	)		(193,595	)
(Increase) Decrease in other current assets		(74,006	)		4,003
Increase in accounts payable and accrued liabilities		108,015			81,555
Increase in amounts due to related parties		5,000			—
Increase in other current liabilities		8,845			8,328
Total cash used in operating activities		(129,161	)		(127,542	)
Investing activities
Acquisition of fixed assets		(2,691	)		—
Inventories		(996	)		—
Construction in progress		(69,495	)		—
Growing crops		(125,411	)		—
Total cash used in investing activities		(198,593	)		—
Financing activities
Loan proceeds from related party		232,530			—
Total cash provided by financing activities		232,530			—
Decrease in cash		(95,224	)		(127,542	)
Effect of exchange rate changes on balance of cash held in foreign currencies		14,090			(13,389	)
Cash and cash equivalents, beginning of the period		758,355			1,236,137
Cash and cash equivalents, end of the period		677,221			1,095,206
Supplemental information on cash flows
Income taxes paid		—			—
Interest paid		—			—

Supplemental disclosure with respect to cash flows (note 16)

The notes are an integral part of these condensed consolidated interim financial statements.

6 

GLOBALINK LTD.

Notes to Condensed Consolidated Financial Statements

For the three months ended March 31, 2016

(Expressed in U.S. Dollars)

(Unaudited)

1. NATURE OF OPERATIONS

Globalink, Ltd. (the “Company”) was incorporated in the State of Nevada on February 3, 2006. The Company has focused its efforts on internet hotel booking services and has developed a proprietary online hotel booking program for connecting users with available rooms in hotels across the world. In order to gain the access to hotels, the Company acquired OneWorld Hotel Destination Service Inc. (“OneWorld”) in Vancouver, British Columbia, Canada on October 31, 2008. OneWorld is a hotel booking company which has established relationships with major hotel chains. As a result of the acquisition, OneWorld became a wholly-owned subsidiary of the Company and goodwill of $274,449 was recognized on completion of the acquisition.

On May 4, 2014, the Company entered into a joint venture agreement (the “Agreement”) with Shizhen Bio-Technology Co., Ltd. (“Shizhen Biotech”) in Jiangsu Province, China. On May 22, 2014, Globalink (Xuzhou) Bio-Technology Co., Ltd. (“Globalink Xuzhou”) was incorporated in Pizhou City, Jiangsu Province, China pursuant to the Agreement. Globalink Xuzhou will have total registered capital of $10,000,000, $8,000,000 of which will be invested by the Company to earn an 80% interest, with the remaining $2,000,000 being invested by Shizhen Biotech to earn the remaining 20%. Globalink Xuzhou will be involved in the business of biological sciences and technology research, biological technology popularization services, and fruit and vegetable distribution. Currently, Globalink Xuzhou will continue to focus on gingko cultivation and extraction. In August 2015, the Company transferred $500,000 to Globalink Xuzhou to start developing a gingko plantation in Pizhou City, Jiangsu Province. The Company transferred an additional $300,000 in October 2015. As at March 31, 2016 and December 31, 2015, the Company owns 100% of Globalink Xuzhou.

On October 13, 2015, the Company incorporated a wholly-owned subsidiary, Globalink (Zhejiang) Bio-Technology Co. Ltd. (“Globalink Zhejiang”) in Ningbo City, Jiangsu Province, China. Globalink Zhejiang will be involved in the research and development, cultivation, extraction, and application of gingko trees and other economic plants. Globalink Xuzhou transferred RMB800,000 ($123,200) to Globalink Zhejiang in October 2015 to start its operations and additional RMB800,000 ($124,016) in March 2016.

7 

2. SIGNIFICANT ACCOUNTING POLICIES

Statement of presentation

These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-Q and Regulation S-K. Certain information and footnote disclosures normally present in annual financial statements have been omitted pursuant to such rules and regulations. The Company believes that the disclosures provided are adequate to make the information presented not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and explanatory notes for the year ended December 31, 2015 as disclosed in the Company’s Form 10-K as filed with the Securities and Exchange Commission on April 4, 2016. Operating results for the three month period ended March 31, 2016 may not necessarily be indicate of the results for the year ending December 31, 2016.

Continuance of operation

These consolidated financial statements prepared in conformity with US GAAP contemplate continuation of the Company as a going concern. As of March 31, 2016, the Company has an accumulated deficit of $753,188 since inception. Its ability to continue as a going concern depends upon whether it develops profitable operations and continues to raise adequate financing. However, management believes that the Company has sufficient working capital to meet its projected minimum financial obligations for the next fiscal year. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

Consolidation

The consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries. Subsidiaries are the entities controlled by the Company. All inter-company transactions and balances between the Company and its subsidiaries have been eliminated upon consolidation.

The subsidiaries are consolidated from the date on which control is transferred to the Company and will cease to be consolidated from the date on which control is transferred out of the Company.

8 

Details of the Company’s subsidiaries are as follows:

Name	Date of incorporation or acquisition	Location	Ownership			Principal activities
OneWorld Hotel Destination Service Inc. (“OneWorld”)	October 31, 2008	Vancouver, Canada		100	%	Hotel booking
Globalink (Xuzhou) Bio-Technology Co., Ltd. (“Globalink Xuzhou”)	May 22, 2014	Pizhou City, Jiangsu Province, China		100	%	Gingko cultivation
Globalink (Zhejiang) Bio-Technology Co. Ltd. (“Globalink Zhejiang”)	October 13, 2015	Ningbo City, Jiangsu Province, China		100	%	Bio-technology research and development

Use of estimates

The preparation of consolidated financial statements in conformity with US GAAP requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities and provisions, income and expenses and the disclosure of contingent assets and liabilities at the date of these financial statements. Estimates are used for, but not limited to, the selection of the useful lives of fixed assets, allowance for doubtful debt associated with accounts receivable, fair values, revenue recognition, and taxes. Management believes that the estimates utilized in preparing its consolidated financial statements are reasonable and prudent. Actual results may differ from these estimates.

Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each of the Company’s subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates (“the functional currency”), which is the Chinese Renminbi (“RMB”) for Globalink Xuzhou and Globalink Zhejiang, and the Canadian dollar (“CAD”) for Oneworld. The consolidated financial statements are presented in United States dollar (“USD”), which is the functional currency of the parent company. The operating subsidiaries’ financial statements are prepared in its respective functional currencies before translating to the presentation currency which is the USD. The Company translates items in the statement of operations and comprehensive income (loss) using the average exchange rate for the year. Assets and liabilities are translated at the year-end rate. All resulting exchange differences are reported as a separate component of other comprehensive income (loss).

9 

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuations where items are re-measured. Foreign exchange gains and losses resulting from settlement of such transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss as a “foreign exchange (gain) loss”.

Growing crops

Gingko trees are valued at historical cost, which include all cultivation costs incurred for planting, growing and maintaining the gingko trees during a year other than the harvest season that lasts about 2 months. The cultivation costs include costs of land lease, equipment lease, equipment amortization, labour, consulting, fertilizer, materials and supplies, and other direct growing costs.

At the end of each reporting period, the Company reviews the carrying amounts of the growing crops to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). A reliable market price is usually available for mature gingko trees in China. Under certain circumstances, when a reliable market price is not available, the fair value of the growing crops is measured using the discounted expected future cash flow method. Under this method, expected future revenues less costs to complete and harvest is discounted to present value.

The growing crops will be amortized using the straight-line method over an estimated useful life of 5 years. The Company intends to sell all of the gingko trees after 5 years and replant seedlings in order to optimize the effective ingredients in leaves harvested from younger trees.

Inventories

Inventories are valued at the lower of cost (determined on a weighted average basis) and market value. Inventories as of March 31, 2016 consist of fertilizers. Inventories as of December 31, 2015 mainly consisted of gingko seeds which were planted in field in March 2016. The Company reviews its inventories regularly for possible obsolete goods and establishes reserves when determined necessary.

10 

Accounts receivable

Trade receivables are carried at original invoice amount. Accounts receivable are written off to bad debt expense using the direct write-off method. Receivables past due for more than 120 days are considered delinquent. Management determines uncollectible accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions and by using historical experience applied to an aging of accounts. Recoveries of trade receivables previously written off are recorded when received.

Fixed assets

Fixed assets are recorded at cost less accumulated amortization. Amortization of fixed assets is calculated using the straight-line method over the estimated useful lives of the assets as follows:

Computer equipment	3 years
Lab equipment	3 years
Office furniture and fixtures	5 years
Storage	5 years
Agricultural machinery	4 years
Infrastructure	10 years

Fair value

The Company measures fair value in accordance with accounting guidance that defines fair value, provides guidance for measuring fair value and requires certain disclosures. The guidance also discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

– Level 1: Observable inputs such as quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

– Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

– Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

11 

The inputs used in the fair value measurement should be from the highest level available. In instances where the measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level input that is significant to the fair value measurement in its entirety.

As at March 31, 2016, the Company’s financial instruments are comprised of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, amounts due to related parties, loan payable to related party and other current liabilities. Cash and cash equivalents are measured at fair value using Level 1 inputs. With the exception of cash and cash equivalents, all financial instruments held by the Company are measured at amortized cost. The fair values of these financial instruments approximate their carrying value due to their short-term maturities.

Goodwill

The Company recognizes goodwill in accordance with ASC 805 “Business Combinations”. Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed, if any. The goodwill impairment test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit would be considered impaired. To measure the amount of the impairment loss, the implied fair value of a reporting unit's goodwill is compared to the carrying amount of that goodwill. If the carrying amount of a reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is indicated. The Company concluded that there were no indicators of impairment with respect to the Company's goodwill as of March 31, 2016.

Impairment reviews for long-lived assets

Long-lived assets such as property, equipment and goodwill are reviewed for impairment whenever facts and circumstances indicate that the carrying value may not be recoverable. When required impairment losses on assets to be held and used are recognized based on the fair value of the asset. The fair value is determined based on estimates of future cash flows, market value of similar assets, if available, or independent appraisals, if required. If the carrying amount of the long-lived asset is not recoverable from its undiscounted cash flows, an impairment loss is recognized for the difference between the carrying amount and fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risk associated with the recovery of the assets. The Company did not recognize any impairment losses for any periods presented.

12 

Revenue recognition

The Company recognizes revenue from its hotel booking services once the service is rendered and all the significant risks and rewards of the service have been transferred to the customer. As a result, revenue from hotel booking services are recognized when customers check in to the hotels. Amounts received from customers for services not yet rendered are included in other current liabilities as unearned revenue.

In accordance with the ASC 605 “Revenue Recognition”, the Company reports its revenue as an agent, on the net amount retained, which is the amount billed to a customer less the amount paid to a hotel.

During the three months ended March 31, 2016 and 2015, all revenue was derived from hotel booking services.

Research and development

Research and development costs are expensed as incurred. The costs primarily consist of consulting fees paid to the technical team for development and improvement of gingko cultivation methods. Research and development costs for the three months ended March 31, 2016 and 2015 were $8,796 and $Nil, respectively, and are included in general and administrative expenses.

Income taxes

The Company accounts for income taxes following the asset and liability method in accordance with ASC 740 “Income Taxes.” Under such method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company applies the accounting guidance issued to address the accounting for uncertain tax positions. This guidance clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements as well as provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years that the asset is expected to be recovered or the liability settled.

13 

Earnings (loss) per common share

Basic earnings (loss) per common share is determined by dividing earnings (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share is determined by dividing earnings (loss) by the diluted weighted average number of shares outstanding. Diluted weighted average number of shares reflects the dilutive equity instruments, if any, of potentially dilutive common shares, such as stock options and warrants calculated using the treasury stock method. In periods with reported net operating losses, all common stock options and warrants are deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal. The 6,000,000 stock options outstanding as of March 31, 2016 were excluded from the calculation of diluted loss per common share for the three months ended March 31, 2016.

Stock-based compensation

The Company accounts for stock compensation with employees in accordance with ASC 718 “Compensation – Stock Compensation”, which recognizes awards at fair value on the date of grant and recognition of compensation over the service period for awards expected to vest. The fair value of stock options is determined using the Black-Scholes Option Pricing Model.

The Company accounts for stock compensation arrangements with non-employees in accordance with ASC 505-50 “Stock-Based Transactions with Nonemployees””, which requires that such equity instruments are recorded at their fair value on the measurement date. The measurement of share-based compensation is subject to periodic adjustment as the underlying instruments vest. The fair value of stock options is estimated using the Black-Scholes Option Pricing Model and the compensation charges are amortized over the vesting period.

Segment reporting

ASC 280 “Segment Reporting” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

As of March 31, 2016, the Company is organized into three main business segments: hotel booking services, gingko plantation cultivation and bio-technology research and development.

14 

Recent accounting pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard for contracts with customers that will supersede most current revenue recognition guidance, including industry-specific guidance. The core principle of this standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the standard provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. This guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is prohibited. The standard permits the use of either the retrospective or cumulative effect transition method. This guidance will be applicable to the Company at the beginning of its first quarter of fiscal year 2017. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued Accounting Standards Update 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how reporting entities must disclose going-concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessment of an entity’s ability to continue as a going concern within one year of the date of issuance of the entity’s financial statements (or within one year after the date on which the financial statements are available to be issued, when applicable). Further, an entity must provide certain disclosures if there is substantial doubt about the entity’s ability to continue as a going concern. The requirement is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

3. CASH AND CASH EQUIVALENTS

Cash of $366,204 (December 31, 2015 - $442,542) is held in China and is subject to local exchange control regulations. Chinese exchange control regulations provide for restrictions on exporting capital from China, other than through normal dividends. As at March 31, 2016, $15,502 (December 31, 2015 - $Nil) was held in a low-risk bank investment that can be withdrawn at any time.

15 

4. OTHER CURRENT ASSETS

The items comprising the Company’s other current assets are summarized below:

	March 31, 2016		December 31, 2015
	$		$
Deposits to hotels		23,338		22,564
Prepaid investor relations fees		68,000		—
Deposits for lab equipment		26,121		25,949
Deposits for construction work		43,109		—
Other deposits and receivables		62,979		30,693
Total other current assets		223,547		79,206

5. INVENTORIES

The items comprising the Company’s inventories are summarized below:

	March 31, 2016		December 31, 2015
	$		$
Gingko seeds		—		24,658
Fertilizer		1,352		555
Total inventories		1,352		25,213

6. ACCOUNTS RECEIVABLE

Accounts receivable consist of trade receivables from travel agents. There are no allowances for doubtful accounts recorded as at March 31, 2016 and December 31, 2015.

7. FIXED ASSETS

The item comprising the Company’s fixed assets are summarized below:

	March 31, 2016			December 31, 2015
	$			$
Computer equipment		7,230			26,903
Office furniture and fixtures		1,663			16,080
Agricultural machinery		47,569			44,879
Infrastructure		20,582			—
Lab equipment		1,109			1,109
Storage		1,102			1,102
		79,255			90,073
Less: accumulated amortization		(5,336	)		(35,671	)
		73,919			54,402

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8. CONSTRUCTION IN PROGRESS

Construction in progress consists of direct costs of infrastructure construction at the Company’s gingko plantation including roads, fencing, security, electricity and an irrigation system. Capitalization of these costs will cease and the construction in progress will be transferred to fixed assets when all the activities necessary to prepare the assets for their intended use are substantially completed. No amortization will be recorded until construction is completed and the facilities are put into use.

9. GROWING CROPS

Growing crops consist of direct cultivation costs incurred for planting, growing and maintaining the gingko trees.

	Gingko trees		Grape vines		Total
	$		$		$
Balance, December 31, 2014		—		—		—
Acquisition of seeds or seedlings		—		1,078		1,078
Amortization of agricultural machinery		1,040		—		1,040
Land lease		113,931		—		113,931
Labour		804		—		804
Materials		2,945		—		2,945
Machine operation		3,879		—		3,879
Miscellaneous		3,178		—		3,178
Technical consultants		5,313		—		5,313
Balance, December 31, 2015		131,090		1,078		132,168
Acquisition of seeds or seedlings		24,857		—		24,857
Amortization of agricultural machinery		3,022		—		3,022
Fertilizer		69,899		—		69,899
Labour		3,645		324		3,969
Materials		2,600		185		2,785
Machine operation		9,128		—		9,128
Miscellaneous		2,487		—		2,487
Technical consultants		9,111		153		9,264
Balance, March 31, 2016		255,839		1,740		257,579

10. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities mainly consist of trade payables to hotels and travel service suppliers.

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11. OTHER CURRENT LIABILITIES

The items comprising the Company’s other current liabilities are summarized below:

	March 31, 2016		December 31, 2015
	$		$
Unearned revenue		19,310		7,650
Taxes payable		—		1,655
Total other current liabilities		19,310		9,305

12. TRANSACTIONS WITH RELATED PARTIES

During the three months ended March 31, 2016, the Company paid or accrued management fees of $9,000 (2015 - $9,000) to a company controlled by a director and Corporate Secretary and $6,000 (2015 - $6,000) to a company controlled by a director and Chief Financial Officer. As of March 31, 2016, $5,000 of accrued management fees was owing to them.

In January 2016, the Chief Executive Officer of the Company loaned an amount of $232,530 to Globalink Xuzhou. The loan is non-interest bearing, unsecured, and has no fixed terms of repayment.

On September 16, 2015, 5,250,000 stock options were granted to directors and officers with a total fair value of $260,439 at the date of grant, $45,389 of which was amortized and recorded in the statement of loss and comprehensive loss during the three months ended March 31, 2016 (2015 -$Nil).

13. SHAREHOLDERS’ EQUITY

Share capital

Authorized

- 500,000,000 common voting shares with a par value of $0.0002 per share.

Issued and outstanding

As of March 31, 2016, the Company has 45,585,000 shares (December 31, 2015 – 43,585,000) issued and outstanding.

During the three months ended March 31, 2016:

In February 2016, the Company issued 2,000,000 common shares (valued at $80,000) pursuant to an investor relations contract with a defined term to December 31, 2016.

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During the year ended December 31, 2015:

In September 2015, the Company issued 1,100,000 common shares to an arm’s length party for total proceeds of $110,000 ($0.10 per share).

Stock options

The Company adopted a Stock Awards Plan under which it is authorized to grant options to directors, employees and consultants, to acquire up to 6,000,000 common shares. The exercise price of each option is based on the market price of the Company's stock for a period preceding the date of grant. The options can be granted for a maximum term of 5 years and the vesting terms of the options are determined by the board of directors at the time of grant.

On September 16, 2015, 6,000,000 stock options were granted to directors, officers and consultants with an exercise price of $0.075 expiring on September 16, 2020, 10% of the options vest as of the grant date, with the remaining 90% vesting at a rate of 15% every six months thereafter. The Company uses the Black-Scholes Option Pricing Model to determine the fair value of options granted. The fair value of the stock options granted was $297,645 ($0.0496 per option), of which $51,873 was amortized and recorded and expensed during the three months ended March 31, 2016.

The fair value of the stock options granted was determined using the following assumptions:

	Year ended December 31, 2015
Risk free interest rate		1.44	%
Volatility		242.72	%
Expected life of options		5 years
Dividend rate		0	%
Expected forfeiture rate		0	%

Stock option transactions are summarized as follows:

	Number of Options		Weighted Average Exercise Price		Aggregate Intrinsic Values
Balance, December 31, 2014		—	$	—	$	—
Granted		6,000,000		0.075
Balance, at December 31, 2015 and March 31, 2016		6,000,000	$	0.075	$	—
Exercisable, at December 31, 2015 and March 31, 2016		600,000	$	0.075	$	—

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As at March 31, 2016, the following incentive stock options are outstanding:

Number of Options		Exercise Price	Expiry Date
6,000,000	$	0.075	September 16, 2020

14. REVENUE

The Company reports its revenue as an agent on a net basis. The following table shows the gross amount the Company received from customers and the booking costs during the three months ended March 31, 2016 and 2015:

For the period ended	March 31, 2016			March 31, 2015
	$			$
Gross amount received		348,621			515,874
Costs		(315,525	)		(443,953	)
Revenue		33,096			71,921

15. COMMITMENT

Research and development agreement

The Company entered into a Technology Development Service Agreement (the “Technology Agreement”) in January 2016 with Zhejiang Pharmaceutical College (the “College”) with a term of 3 years. Pursuant to the Technology Agreement, the College will conduct research and development on induction of callus of gingko leaves and extraction, and identification of flavone and lactone therefrom on the Company’s behalf. As consideration, the Company shall pay the College an annual research fee of RMB100,000 ($15,400) (RMB100,000 paid in March 2016) and monthly consulting fees to professors and staff.

Farmland lease agreements

The Company leased about 100 acres of farmland in Pizhou City, Jiangsu Province, China from local individual farmers for a period from October 2015 to August 2027. The lease fees may be renegotiated.

Year		2016		2017		2018		2019		2020-2027
	Amount		114,000		114,000		114,000		114,000		912,000

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16. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

During the three months ended March 31, 2016, the Company had the following non-cash transactions:

a) transferred $20,582 of completed work from construction in progress to fixed assets;

b) transferred $24,857 of gingko seeds from inventories to growing crops after completing seeding in March 2016;

c) included $3,022 of amortization of agricultural machinery into growing crops;

d) issued 2,000,000 common shares (valued at $80,000) pursuant to an investor relations contract; and

e) included $24,029 of construction in progress in accounts payable and accrued liabilities at March 31, 2016.

There were no significant non-cash transactions during the three months ended March 31, 2015.

17. SEGMENTED INFORMATION

The Company formerly operated in one business segment: hotel booking services. Accordingly, the Company did not have separately reportable segments in previous periods. In September 2015, the Company started to develop a gingko plantation cultivation business in China. In October 2015, the Company incorporated Globalink Zhejiang, whose business is to research and develop technologies in relation to gingko trees and other economic plants.

As of March 31, 2016, management of the Company has determined that the Company is organized into three main business segments: hotel booking services, gingko plantation cultivation and bio-technology research and development.

The table below provides information regarding the Company’s identified segments for the three months ended March 31, 2016:

	Hotel booking			Gingko plantation			Research and development			Totals
Revenue	$	33,096		$	—		$	—		$	33,096
Operating loss	$	(14,353	)	$	(144,574	)	$	(26,905	)	$	(185,832	)
Fixed assets	$	—		$	72,037		$	1,882		$	73,919
Construction in progress	$	—		$	86,159		$	—		$	86,159
Growing crops	$	—		$	257,579		$	—		$	257,579

18. SUBSEQUENT EVENTS

On May 13, 2016, the Company filed Form S-1 with the Securities and Exchange Committee (“SEC”), pursuant to which the Company intends to offer a maximum of 20,000,000 common shares at a price of $0.25 per share for a maximum gross proceeds of $5,000,000 on a best efforts basis.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Certain information included in this discussion may constitute forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements. These statements relate to future events or the Company’s future performance, business prospects or opportunities. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to agricultural and travel business industries. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, that the Company can access financing, appropriate equipment and sufficient labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements.

Business Overview

Hotel booking

During 2008, we started generating revenue upon completion of the acquisition of OneWorld Hotel Destination Services, Inc. We acquired all of the common shares of OneWorld for 2,000,000 common shares and a promissory note in the amount of $150,000. In addition, we are seeking to expand our revenue base by adding new customers and increasing our marketing and advertising.

One World currently generates sufficient cash flow to maintain its own daily operations. However, in order to realize effective marketing and promotion, the registrant will need to raise additional capital through the sale of capital stock in the future. The use of funds would be rationed for marketing and promotion purposes, expansion of the OneWorld operation and working capital needs.

There are several known trends that are reasonably likely to have a material effect on our net sales or revenues alongside our income from continuing operations and profitability.

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We expect to experience significant fluctuations in our future operating results due to a variety of factors, many of which are outside our control. Factors that may adversely affect our operating results include but are not limited to:

– Our ability to develop and complete the hotel booking website;

– Our ability to attract customers to use our website and maintain user satisfaction;

– Our ability to attract hotel suppliers to provide their hotel rooms in our website;

– Our ability to hire and train qualified personnel;

– Our ability to resolve any technical difficulties and system downtime or internet disconnection;

– Governmental regulations on use of Internet as a tool to conduct business transaction; and

– Change of customer’s acceptance to use Internet to book hotel rooms.

We may also incur losses for the foreseeable future due to costs and expenses related to:

– The implementation of our hotel booking website business model;

– Marketing and other promotional activities;

– Competition;

– The continued development of our website;

– High costs to maintain the hotel booking website; and

– Hiring and training new staff for customer services.

We cannot be sure that we will be successful in addressing these risks and uncertainties and our failure to do so could have a materially adverse effect on our financial condition. In addition, our operating results are dependent to a large degree upon factors outside of our control. There are no assurances that we will be successful in addressing these risks, and failure to do so may adversely affect our business.

Gingko plantation, and related research and development

Ginkgo is a fundamental ingredient in traditional Chinese medicine, or TCM, and is administered both as a tea and by way of tablets comprised of the active chemical constituents that have been extracted from dried leaves and concentrated. TCM posits that Ginkgo is imbued with healing qualities and is prescribed by TCM healers to address a wide range of ailments. Over the last several decades, tablets or pills manufactured from the extract of ginkgo leaves have proliferated across Europe and North America where ginkgo is becoming widely accepted as an herbal remedy for a variety of health conditions, principally memory loss and dementia. Ginkgo leaf extract is used in medicine due to its therapeutic actions in regulating cerebral blood flow, protection against free radicals, and delaying the progress of dementia and diabetes.

Our ginkgo tree plantation will deploy the latest scientific and technical practices available to us throughout the growth and processing cycle to maximize output of high- quality dried ginkgo leaves. We will incorporate European-style good agricultural practices, or GAP, throughout all phases of the growing, processing and distribution

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process and will seek to integrate our customer’s good agricultural practices into our processes and procedures so that buyers will have confidence that the product they purchase from us satisfies their standards. For example, we will provide to our clients reference data that we gather from the soil in which we grow the trees and the leaves we harvest, including information relating to the content of the active ingredients in ginkgo and the indicators of heavy metal, pesticide residues, moisture and microbes on the leaves in that batch, among other information. We believe that we will be among the only independent ginkgo growers in China to employ these practices in our operations and that customers will value our transparency as they seek to satisfy stringent requirements with respect to the quality of the products they sell.

We currently lease approximately 100 acres of land from the local government at which we are establishing a study plot to implement GAP and the other technical agricultural and administrative practices we intend to implement on our plantation. We will engage local farmers who will plant, maintain and harvest leaves at our plantation. We will use the study plot to demonstrate the effectiveness of our growing practices and the uniform quality of our products to our clients.

We have commenced seed planting in March 2016 and expect to generate revenue from sales of dried gingko leaves in this fall.

Over the next five years, we will acquire control over additional lands by entering into land use agreements with the local government and third-party farmers and cooperatives. We will train our work force and the independent farmers from whom we lease land to farm under GAP and to integrate the other practices we implement. We believe that this model will provide us with significant flexibility to procure significant additional available parcels of quality acreage as our tree plantation grows.

On October 13, 2015, we incorporated a wholly-owned subsidiary, Globalink Zhejiang, in Ningbo city, Jiangsu Province, China. Globalink Zhejiang will be involved in research and development of cultivation, extracting, application of gingko and other economic plants.

In January 2016, Globalink Zhejiang entered into a research and development agreement with Zhejiang Pharmaceutical College. As per the agreement, Zhejiang Pharmaceutical College will do research on (1) developing culture medium that is fit for the formation of callus tissue of gingko leaves; (2) developing growth culture medium that is fit for subculture of callus tissue of gingko leaves, and at the same time, synthesizes the object product – gingko flavone and gingkolide; (3) optimizing the processes of extracting gingko flavone and gingkolide, in order to enhance yield.

We expect a summary of the research project by the end of fiscal year 2016 which may lead to a conclusion on whether we can apply the technology into a commercial production of gingko leaves in controlled lab environment.

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Capital and Sources of Liquidity

Prior to the acquisition of OneWorld, all of Globalink’s operating capital had either been advanced by current shareholders or from proceeds for the issuance of common shares.

For the three months ended March 31, 2016, we incurred a net loss of $185,832. We had an increase in amortization of $734, an increase in stock-based compensation of $51,873, and an increase in shares issued for investor relations fees of $12,000. We had the following changes in non-cash working capital items: we had an increase in accounts receivable of $55,790, an increase in other current assets of $74,006, an increase in accounts payable and accrued liabilities of $108,015 and amounts due to related parties of $5,000, and an increase in other current liabilities of $8,845. As a result, we had total cash used in operating activities of $129,161 for the three months ended March 31, 2016.

For the three months ended March 31, 2015, we incurred a net loss of $27,833. We had the following changes in non-cash working capital items: we had a decrease in accounts receivable of $193,595, a decrease in other current assets of $4,003, an increase in accounts payable and accrued liabilities of $81,555, and an increase in other current liabilities of $8,328. As a result, we had total cash used in operating activities of $127,542 for the three months ended March 31, 2015.

For the three months ended March 31, 2016, we spent $2,691 for the acquisition of fixed assets, $996 for inventories, $69,495 for the construction in progress, and $125,411 for growing crops. As a result, we had total cash used in investing activities of $198,593 for the three months ended March 31, 2016. We did not pursue any investing activities during the three months ended March 31, 2015.

For the three months ended March 31, 2016, we received $232,530 as loan proceeds from a related party. As a result, we had total cash provided by financing activities of $232,530 for the period. We did not pursue any financing activities during the three months ended March 31, 2015.

Results of Operations

For the three months ended March 31, 2016, we recorded revenues of $33,096. We paid or accrued accounting and legal fees of $800, amortization expenses of $734, and director and management fees of $15,000. We had a foreign exchange gain of $7,136, recognized investor relations expenses of $12,000, and paid research and development expenses of $8,796. We paid or accrued rent expenses of $9,093, salaries and benefits of $87,026, and stock-based compensation of $51,873. We paid or accrued telephone expenses of $2,043, travel expenses of $10,747, transfer agent and filing fees of $14,732, and other general and administrative expenses of $13,220. As a result, we had a net loss of $185,832 for the three months ended March 31, 2016. We had a gain of $1,288 due to the exchange difference on translating foreign operations, resulting in a comprehensive loss of $184,544 for the three months ended March 31, 2016 Comparatively, for the three months ended March 31, 2015, we recorded revenues of $71,921. We paid or accrued accounting and legal expenses of $574, director and management fees of $15,000, and had a gain on foreign exchange of $594. We paid or accrued rent expenses of $5,209, salaries and benefits of $52,342, and telephone expenses of $1,870. We paid or accrued travel expenses of $7,140, transfer agent and filing fees of $15,885, and other general and administrative expenses of $2,328. As a result, we had a net loss of $27,833 for the three months ended March 31, 2015. We had a gain of $1,696 due to the exchange difference on translating foreign operations, resulting in a comprehensive loss of $26,137 for the three months ended March 31, 2015.

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The $157,999 increase in net loss between the three months ended March 31, 2016 compared to the three months ended March 31, 2015 is due to increases in investor relations expenses, research and development costs, salaries and benefits, stock-based compensation and other general and administrative expenses. We recorded $38,825, or 53.9%, fewer revenues during the three months ended March 31, 2016 and paid or accrued $119,174, or 119.5%, more total general and administrative expenses during the three months ended March 31, 2016.

Off-Balance Sheet Arrangements

The Company had no material off-balance sheet arrangements as of March 31, 2016.

Contractual Obligations

Research and development agreement

The Company entered into a Technology Development Service Agreement (the “Technology Agreement”) in January 2016 with Zhejiang Pharmaceutical College (the “College”) with a term of 3 years. Pursuant to the Technology Agreement, the College will conduct research and development on induction of callus of gingko leaves and extraction, and identification of flavone and lactone therefrom on the Company’s behalf. As consideration, the Company shall pay the College an annual research fee of RMB100,000 ($15,400) (RMB100,000 paid in March 2016) and monthly consulting fees to professors and staff.

Farmland lease agreements

The Company leased about 100 acres of farmland in Pizhou City, Jiangsu Province, China from local individual farmers for a period from October 2015 to August 2027. The lease fees may be renegotiated.

Year		2016		2017		2018		2019		2020-2027
	Amount		114,000		114,000		114,000		114,000		912,000

New Accounting Pronouncements

The Company has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements did not have a material effect on the financial position or results of operations of the Company.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable for smaller reporting companies.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures:

We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act that are designed to insure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, or the persons performing similar functions, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our CEO and CFO, or the persons performing similar functions, our management has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this quarterly report. Based on that evaluation, our CEO and CFO, or the persons performing similar functions, concluded that our disclosure controls and procedures were not effective as of March 31, 2016.

Evaluation of Changes in Internal Control over Financial Reporting:

Under the supervision and with the participation of our CEO and CFO, or those persons performing similar functions, our management has evaluated changes in our internal controls over financial reporting that occurred during the three months ended March 31, 2016. Based on that evaluation, our CEO and CFO, or those persons performing similar functions, did not identify any change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

27 

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

None

Item 1A. Risk Factors

Not applicable for smaller reporting companies

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

In February 2016, the Company issued 2,000,000 common shares (valued at $80,000) pursuant to an investor relations contract with a defined term to December 31, 2016. These shares are exempt from registration under Section 4(a)(2) of the Securities Act.

Item 3. Defaults Upon Senior Securities.

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

None

Item 6. Exhibits

Exhibit 31*	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32*	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document
*Filed herewith
**XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

28 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

GLOBALINK, LTD.
By:	/s/ Hin Kwok Sheung	Dated: May 16, 2016
Hin Kwok Sheung
Chief Executive Officer
By:	/s/ Ke Feng (Andrea) Yuan	Dated: May 16, 2016
Ke Feng (Andrea) Yuan
Chief Financial Officer

29