EX-99.1 2 exhibit99-1.txt INTERIM CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2007 Globetech Ventures Corp. (An exploration stage company) Consolidated Balance Sheets (Unaudited - Canadian Dollars) March 31, 2007 September 30,2006 ------------------------------------------------------------------------------- ASSETS Current Assets Cash and cash equivalents $3,770 $283 GST refundable 3,735 3,968 ------------------------------------------------------------------------------- 7,505 4,251 Equipment (Note 2) 1,288 1,500 MINERAL PROPERTIES (Note 3) 77,731 77,731 ------------------------------------------------------------------------------- $86,524 $83,482 LIABILITIES Current Liabilities Accounts payable and accrued liabilities (Note 4) $461,438 $307,119 Loans payable (Note 5) 365,755 343,096 ------------------------------------------------------------------------------- 827,193 650,217 SHAREHOLDERS' EQUITY Capital stock Authorized unlimited common shares of no par value Issued and outstanding (Note 6) 33,824,961 33,824,961 Contributed surplus 3,008,754 3,008,754 Deficit accumulated during exploration stage (37,574,384) (37,400,450) ------------------------------------------------------------------------------- (740,669) (566,450) ------------------------------------------------------------------------------- $86,524 $83,482 ------------------------------------------------------------------------------- Globetech Ventures Corp. (An exploration stage company) Consolidated Statements of Operation and Deficit (Unaudited - Canadian Dollars) For the three months For the six months ended ended March 31 ended March 31 2007 2006 2007 2006 ------------------------------------------------------------------------------- Administrative expenses Accounting and lega 2,226 9,612 7,941 11,792 Amortization 106 149 212 298 Consulting fees 40,583 134,350 75,545 170,350 Financing costs - 165,000 - 165,000 Interest and bank charges 14,103 82,506 22,718 88,928 Management fees 15,000 22,500 30,000 30,000 Office and miscellaneous 18,012 6,970 24,012 12,970 PUblic relations - 2,826 - 2,826 Reuglatory and transfer agent 2,178 6,341 2,362 7,378 Telephone 439 384 689 624 Travel 2,243 - 10,455 - ------------------------------------------------------------------------------- Net loss for the period (94,890) (430,638) (173,934) (490,166) Deficit, beginning of period (37,479,494) (36,952,552)(37,400,450)(36,893,024) Deficit, end of period $(37,574,384) $(37,383,190) $(37,574,384) $(37,383,190) ------------------------------------------------------------------------------- loss per share $(0.01) $(0.03) $(0.01) $(0.03) Weighted average number of shares Basic and diluted 15,640,751 14,471,939 15,640,751 14,471,939 ------------------------------------------------------------------------------- Globetech Ventures Corp. (An exploration stage company) Consolidated Statement of Shareholders' Equity (Deficiency) (Unaudited - Canadian Dollars) Number of Common Shares Contributed Deficit Total shares issued and surplus accumulated fully paid and equity during the portion of exploration convertibel stage debentures ------------------------------------------------------------------------------- Balance, December 1991 - $- $- $- $- Issuance of shares for cash Private placement 1,280,001 159,500 - - 159,500 Loss for the period (32,080) (32,080) ------------------------------------------------------------------------------- Balance, September30, 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 placement 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 placement 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, September30,1995 3,299,070 2,628,713 - (884,597) 1,744,116 ------------------------------------------------------------------------------- Issuance of shares for cash Private placement 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, September30,1996 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 Issuance on conversion of debt 2,464,950 4,821,079 - - 4,821,079 Issuance of common shares for acqusition of subsidiary 171,282 1,124,745 - - 1,124,745 Issuance of shares for finders fee 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 year - - - (2,822,786) (2,822,786) ------------------------------------------------------------------------------- Balance, September30,1997 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 Captial 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, September30,1998 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, September30,1999 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, September30,2000 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 subscription received in advance 227,273 369,875 - - 369,875 Subscription received in advance - (369,875) - - (369,875) Issued on acqusition 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, September30,2001 9,489,939 27,873,683 - (28,445,263) (571,580) ------------------------------------------------------------------------------- Loss for the year - - - (319,713) (319,713) ------------------------------------------------------------------------------- Balance, September30,2002 9,489,939 27,873,683 - (28,764,976) (891,293) ------------------------------------------------------------------------------- Loss for the year - - - (47,171) (47,171) ------------------------------------------------------------------------------- Balance, September30,2003 9,489,939 27,873,683 - (28,812,147) (938,464) ------------------------------------------------------------------------------- Issuance of shares for cash Private placement 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, September30,2004 13,939,613 33,519,983 2,429,100 (36,114,171) (165,088) ------------------------------------------------------------------------------- Issuance of shares for cash Private placement - shares issued due to repricing 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, September30,2005 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 861,000 174,620 - - 174,620 Loss for the year - - - (507,426) (507,426) ------------------------------------------------------------------------------ Balance, September30,2006 15,640,751 33,824,961 3,008,754 (37,400,450) (566,735) ------------------------------------------------------------------------------- Loss for the period - - - (173,934) (173,934) ------------------------------------------------------------------------------ Balance, March 31,2007 15,640,751$33,824,961$3,008,751 $(37,574,384) $(740,669) ------------------------------------------------------------------------------- Globetech Ventures Corp. (An exploration stage company) Consolidated Statements of Cash Flows (Unaudited - Canadian Dollars) For the three months For the six months ended ended March 31 ended March 31 2007 2006 2007 2006 ------------------------------------------------------------------------------- OPERATING ACTIVITIES Net loss fro the period $(94,890) $(430,638) $(173,934) $(490,166) Items not involving cash: Amortization 106 149 212 298 Exercise of cashless warrants - 165,000 - 165,000 Change in non-cash working capital GST refundable and other receivables 643 2,369 233 20,358 Prepaid and deposits - - - 1,503 Accounts payable and accrued liabilities 83,586 (17,463) 154,319 (4,935) ------------------------------------------------------------------------------- Net cash used in operating activities (10,555) (280,583) (19,170) (307,942) ------------------------------------------------------------------------------- FINANCING ACTIVITIES Convertible loans - 537,748 - 537,748 Loans payable 14,080 (260,619) 22,657 (254,211) ------------------------------------------------------------------------------- Net cash provided from (used in) financing activities 14,080 277,129 22,657 283,537 ------------------------------------------------------------------------------- INVESTING ACTIVITIES Expenditures on mineral properties - (16,789) - (16,827) ------------------------------------------------------------------------------- Net cash used in investing activities - (16,789) - (16,827) Change in cash and cash equivalents 3,525 (20,243) 3,487 (41,232) Cash and cash equivalents at beginning of period 245 30,096 283 51,085 ------------------------------------------------------------------------------- Cash and cash equivalents at end of period $3,770 $9,853 $3,770 $9,853 ------------------------------------------------------------------------------- Globetech Ventures Corp. Notes to Consolidated Financial Statements March 31, 2007 (in Canadian dollars) (unaudited) 1. Nature of Operations and Significant Accounting Policies The Company is incorporated under the laws of British Columbia, Canada, and its principal business activities included the acquiring and developing of mineral properties and the processing of related mineral resources. During the year ended September 30, 1998, the Company determined that it was not feasible to continue its mineral property operations. The Company is currently pursuing and evaluating potential business ventures in the mineral field. These interim consolidated financial statements should be read in conjunction with the audited September 30, 2006 annual financial statements. These interim financial statements follow the same accounting policies and methods of their application as in the September 30, 2006 annual financial statements. These interim consolidated 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. 2. Equipment For the six months ended March 31, 2007 September 30, 2006 Cost Accumulated Net book Net book amortization value value ----------------------------------------------------------------------------- Office equipment $5,222 $4,989 $233 $259 Computer equipment 26,313 25,258 1,055 1,241 ----------------------------------------------------------------------------- $31,535 $30,247 $1,288 $1,500 ----------------------------------------------------------------------------- 3. Mineral Properties and Deferred Resource Property Expenditures On February 28, 2005, Globetech announced that it 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. The Gladys Lake property is situated in northwestern British Columbia approximately 50 km northeast of Atlin and 15 km north of the Adanac molybdenum deposit presently undergoing final engineering studies and permitting. 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. The Company has issued a total of 100,000 shares to the vendor. 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 also paid. During 2006, the Company paid $15,000 and issued an additional 50,000 shares. This agreement was in arrears with regard to it's March 21, 2007 payment due, the Company having had 60 days to remedy the default from April 1, 2007. See subsequent events. The balance of payments and schedule of share issuances is as follows: Date Amount Shares -------------------------------------------------------------------- March 21, 2007 $20,000 50,000 March 21, 2008 25,000 100,000 March 21, 2009 25,000 150,000 The Company has incurred the following costs on the Gladys Lake property: March 31, 2007 September 30, 2006 ------------------------------------------------------------------------ Acquisition costs $54,004 $54,004 Exploration costs Report 13,199 13,199 Assessment work 1,789 1,789 Geologist 4,000 4,000 Transportation 4,739 4,739 ------------------------------------------------------------------------ Total $77,731 $77,731 4. Related Parties The Company has entered into the following transactions with related parties: For the three months ended For the three months ended March 31, 2007 March 31, 2006 ----------------------------------------------------------------------------- Management fees to officers of the Company $30,000 $30,000 Included in accounts payable is $370,121 due to a director. 5. Loans payable March 31, 2007 September 30, 2006 ----------------------------------------------------------------------------- Loans payable which are unsecured, due on demand and bear interest at 10% per annum $365,755 $343,098 On January 31, 2007 the Company entered into debt settlement agreements to retire all of the above debt indebtedness plus additional interest of $31,678 for a total of $374,776 by the issuance of 1,873,880 shares at a price of$0.20 per shaer. The fair value of the Company's shares at January 31, 2007 was US$0.26 per share. 6. Share Capital a) Common Shares The authorized share capital of the Company is unlimited without par value. The Company has issued 15,640,751 common shares of which 25,000 shares are held in escrow as at March 31, 2007. b) Stock Options The Company has adopted an incentive stock option plan (the "Plan"). The essential elements of the Plan provide that the aggregate number of shares of the Company's capital stock issuable pursuant to options granted under the Plan may not exceed 5,800,630 shares. Options granted under the Plan may have a maximum term of five (5) years. The exercise price of the options granted under the Plan will not be less than the fair market value of the common stock at the date of grant. The Plan Administrator shall specify the vesting schedule for each stock option granted. The Company is authorized to grant options to directors, employees and consultants. Stock option transactions and the number of stock options outstanding are summarized as follows: Options Outstanding Options Exercisable ------------------------------------------------------------------------- Weighted Weighted Weighted Number average average Number average Range of Outstanding remaining exercise exercisable exercise exercise March 31, contractual price March 31, price prices (USD$) 2007 life (years) (USD$) 2007 (USD$) -------------------------------------------------------------------------- $0.60 2,100,000 0.9 $0.60 2,100,000 $0.54 The Company had 2,100,000 stock options of which 1,700,000 were granted on February 3,2005 that expire on February 3,2008 and 400,000 were granted on March 12, 2004, expiring on March 12, 2008. c) Warrants At March 31, 2007, the Company had 1,100,000 (2006 - 2,100,000) common share purchase warrants outstanding to purchase 1,100,000 common share of the Company. Issue date Warrants outstanding Purchase price Expiry date ---------------------------------------------------------------------- June 30, 2004 300,000 USD$1.00 June 30, 2007 April 23, 2004 300,000 USD$1.00 April 23,2007 7. Contingencies The Company has made a demand for the return of 2,000,000 shares issued in connection with the Amapa property due to breach of the contract. The Company is of the opinion that the breaches incurred by the defendants occurred before any non-performance of the contract on its part and that it should able to exercise its rights under the contract to repurchase the 2,000,000 shares issued for $100.00. The outcome is not determinable. 8. Subsequent Events The Company has made an agreement with an arm's length third party to pay the Gladys Lake arrears, see note 3. On May 4, 2007 the Company issued 50,000 shares of common stock to the vendor of the Gladys Lake property. A third party has agreed to make all future payments to the vendor and complete one million dollars of exploration work to earn a 65% interest. The Company will continue to issue shares as required under the agreement. On May 4, 2007, the Company issued 2.7 million shares to retire debt of $671,776.