Company Quick10K Filing
Globe Net Wireless
Price0.25 EPS-0
Shares11 P/E-84
MCap3 P/FCF-235
Net Debt0 EBIT-0
TEV3 TEV/EBIT-134
TTM 2019-05-31, in MM, except price, ratios
10-Q 2020-05-31 Filed 2020-07-13
10-Q 2020-02-29 Filed 2020-04-15
10-Q 2019-11-30 Filed 2020-01-14
10-K 2019-08-31 Filed 2019-12-13
10-Q 2019-05-31 Filed 2019-07-17
10-Q 2019-02-28 Filed 2019-04-17
10-Q 2018-11-30 Filed 2019-01-14
10-K 2018-08-31 Filed 2018-12-14
10-Q 2018-05-31 Filed 2018-07-16
10-Q 2018-02-28 Filed 2018-04-16
10-Q 2017-11-30 Filed 2018-01-16
10-K 2017-08-31 Filed 2017-12-14
10-Q 2017-05-31 Filed 2017-07-17
10-Q 2017-02-28 Filed 2017-04-14
10-Q 2016-11-30 Filed 2017-01-13
10-K 2016-08-31 Filed 2016-12-08
10-Q 2016-05-31 Filed 2016-07-15
10-Q 2016-02-29 Filed 2016-04-14
10-Q 2015-11-30 Filed 2016-01-14
10-K 2015-08-31 Filed 2015-11-30
10-Q 2015-05-31 Filed 2015-07-13
10-Q 2015-02-28 Filed 2015-04-15
10-Q 2014-11-30 Filed 2015-01-14
10-K 2014-08-31 Filed 2014-12-03
10-Q 2014-05-31 Filed 2014-07-15
10-Q 2013-11-30 Filed 2014-01-14
10-K 2013-08-31 Filed 2013-12-16

GNTW 10Q Quarterly Report

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 ex31-1.htm
EX-32.1 ex32-1.htm

Globe Net Wireless Earnings 2020-05-31

Balance SheetIncome StatementCash Flow

10-Q 1 form10-q.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended May 31, 2020

 

or

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

 

Commission file number: 333-172172

 

GLOBE NET WIRELESS CORP.

(Exact name of registrant as specified in its charter)

 

Nevada   N/A

State or other jurisdiction of

incorporation or organization

 

(I.R.S. Employer

Identification No.)

 

2302-3 Pacific Plaza

410 Des Voeux Road West

Hong Kong, China

(Address of principal executive offices) (Zip Code)

 

(253)252-8637

Registrant’s telephone number, including area code

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has 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 [X]

 

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 (§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 [X] No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer [  ] Accelerated filer [  ]
       
Non-accelerated filer [  ] Smaller reporting company [X]
(Do not check if a 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 [X] No [  ]

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

10,800,000 shares of common stock, $0.001 par value, issued and outstanding as of June 14, 2020.

 

 

 

 

 

 

GLOBE NET WIRELESS CORP.

 

Interim Condensed Financial Statements

 

May 31, 2020

 

Stated in US Dollars

 

  PAGES
INTERIM CONDENSED BALANCE SHEETS 3
   
INTERIM CONDENSED STATEMENT OF OPERATIONS 4
 
INTERIM CONDENSED STATEMENT OF STOCKHOLDERS’ DEFICIT 5
 
INTERIM CONDENSED STATEMENT OF CASH FLOWS 6
   
NOTES TO INTERIM CONDENSED FINANCIAL STATEMENTS 7 - 11

 

2

 

 

GLOBE NET WIRELESS CORP.

 

INTERIM CONDENSED BALANCE SHEETS

 

   May 31,   August 31, 
   2020   2019 
   (Unaudited)   (Audited) 
ASSETS          
CURRENT ASSETS          
Cash  $2,469   $714 
Prepaid expenses   30,050    1,287 
    32,519    2,001 
           
Intangible Assets, Net – Note 4   -    907 
           
Total Assets  $32,519   $2,908 
           
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
           
CURRENT LIABILITIES          
Accounts Payable  $2,575   $6,725 
Accrued Liabilities   58,228    54,048 
Notes Payable – Note 5   30,000    30,000 
Convertible Note Payable – Note 6   154,733    103,533 
           
Total Liabilities   245,536    194,306 
           
STOCKHOLDERS’ DEFICIT          
Common Stock - Note 7          
Par Value:$0.001          
Authorized 200,000,000 shares          
Issued 10,800,000 shares   10,800    10,800 
Additional Paid in Capital   92,106    92,106 
Deficit Accumulated   (315,923)   (294,304)
           
Total Stockholders’ Deficit   (213,017)   (191,398)
           
Total Liabilities and Stockholders’ Deficit  $32,519   $2,908 

 

Going concern – Note 2

 

The accompanying notes are an integral part of the financial statements

 

3

 

 

GLOBE NET WIRELESS CORP.

 

INTERIM CONDENSED STATEMENT OF OPERATIONS

 

For the three and nine months period ended May 31, 2020 and May 31, 2019

 

(Unaudited)

 

   For the three   For the three   For the nine   For the nine 
   months ended   months ended   months ended   months ended 
   May 31,   May 31,   May 31,   May 31, 
   2020   2019   2020   2019 
                 
EXPENSES                    
                     
General and administrative expenses  $2,962   $3,554   $10,141   $11,308 
                     
Operating loss before interest   (2,962)   (3,554)   (10,141)   (11,308)
Interest   (3,609)   (3,035)   (10,278)   (9,005)
Amortized interest   (400)   (400)   (1,200)   (1,200)
                     
Net loss and comprehensive loss  $(6,971)  $(6,989)  $(21,619)  $(21,513)
                     
Loss per share of common stock                    
-Basic and diluted  $(0.001)  $(0.001)  $(0.002)  $(0.002)
                     
Weighted average shares of common stock                    
-Basic and diluted   10,800,000    10,800,000    10,800,000    10,800,000 

 

The accompanying notes are an integral part of the financial statements

 

4

 

 

GLOBE NET WIRELESS CORP.

 

INTERIM CONDENSED STATEMENT OF SHAREHOLDERS’ DEFICIT

 

(Unaudited)

 

  

Common stock

Shares

   Amount  

Additional

Paid-in

Capital

  

Deficit

Accumulated

   Total 
Balance, August 31, 2019   10,800,000   $10,800   $92,106   $(294,304)  $(191,398)
                          
Net loss and comprehensive loss   -    -    -    (21,619)   (21,619)
                          
Balance, May 31, 2020   10,800,000   $10,800   $92,106   $(315,923)  $(213,017)

 

  

Common stock

Shares

   Amount  

Additional

Paid-in

Capital

  

Deficit

Accumulated

   Total 
Balance, August 31, 2018   10,800,000   $10,800   $92,106   $(260,477)  $(157,571)
                          
Net loss and comprehensive loss   -    -    -    (21,513)   (21,513)
                          
Balance, May 31, 2019   10,800,000   $10,800   $92,106   $(281,990)  $(179,084)

 

The accompanying notes are an integral part of the financial statements

 

5

 

 

GLOBE NET WIRELESS CORP.

 

INTERIM CONDENSED STATEMENTS OF CASH FLOWS

 

For the nine months ended May 31, 2020 and May 31, 2019

 

   For the nine   For the nine 
   months ended   months ended 
   May 31,   May 31, 
   2020   2019 
         
Cash Flows from (used in) Operating Activities          
Net Loss  $(21,619)  $(21,513)
Adjustments to reconcile net income to net cash provided by (used in) operating activities          
Amortization   907    2,562 
Interest on notes and convertible notes payable   10,278    9,005 
Accretion on convertible notes payable   1,200    1,200 
Increase (Decrease) in operating assets and liabilities          
Prepaid expense   (28,762)   1,093 
Accounts payable   (4,150)   6,769 
Accrued liabilities   (6,099)   (6,900)
           
Net Cash used in Operating Activities   (48,245)   (7,784)
           
Cash Flows from (used in) Financing Activities          
           
Convertible note payables   50,000    - 
Net Cash provided by Financing Activities   50,000    - 
           
           
Cash Flows used in Investment Activities          
Intangible assets   -    - 
           
Net Cash used in Investment Activities   -    - 
           
Increase (Decrease) in Cash   1,755    (7,784)
           
Cash at Beginning of Year   714    8,248 
           
Cash at End of Year  $2,469   $464 
           
Supplemental cash flow information          
Interest paid  $-   $- 
Taxes paid  $-   $- 

 

The accompanying notes are an integral part of the financial statements

 

6

 

 

GLOBE NET WIRELESS CORP.

NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

May 31, 2020

 

 

 

1. Organization and nature of operations
   
  Globe Net Wireless Corp. (“the Company”) was incorporated in the State of Nevada, USA on September 4, 2009. The Company is in its early development stage since its formation and has realized limited revenues from its planned operations. The Company is engaged in the development of a telecommunication business to provide internet and related services to both consumers and businesses currently in under serviced or unserviced areas at real broadband speeds through the proprietary wireless technology it acquired. The Company is also engaged in the development of the TextPro Connect app and the BizPro app. These are utility services apps specifically designed for the mobile business market.
   
  The Company has chosen an August 31 year-end.
   
2. Basis of Presentation - Going Concern Uncertainties
   
  These interim financial statements have been prepared in conformity with generally accepted accounting principles in the United States, which contemplate continuation of the Company as a going concern. However, the Company has limited operations and has sustained operating losses resulting in a deficit.
   
  The Company has accumulated a deficit of $315,923 since inception September 4, 2009, has yet to achieve profitable operations and further losses are anticipated in the development of its business. The Company’s ability to continue as a going concern is in substantial doubt and is dependent upon obtaining additional financing and/or achieving a sustainable profitable level of operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company may seek additional equity as necessary and it expects to raise funds through private or public equity investment in order to support existing operations and expand the range of its business. There is no assurance that such additional funds will be available for the Company on acceptable terms, if at all.
   
3. Interim reporting and significant accounting policies
   
  The interim condensed financial statements are prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. While the information presented is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, result of operation and cash flows for the interim periods presented in accordance with accounting principles generally accepted in the United States of America. All adjustments are of a normal recurring nature. It is suggested that the interim condensed financial statements be read in conjunction with the Company’s August 31, 2019 annual financial statements. Operating results for the nine months period ended May 31, 2020 are not necessarily indicative of the results that can be expected for the year ended August 31, 2020.
   
  There have been no changes in the accounting policies from those disclosed in the notes to the audited financial statements for the year ended August 31, 2019.

 

7

 

 

GLOBE NET WIRELESS CORP.

NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

May 31, 2020

 

 

 

Recently issued accounting pronouncements

 

The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date. Management does not believe that any pronouncement not yet effective but recently issued would, if adopted, have a material effect on the accompanying financial statements.

 

4. Intangibles Assets
   
  Intangible assets represent costs paid to third parties for the development of utility software applications (“apps”). The assets are amortized over 3 years on a straight-line basis.

 

May 31, 2020  August 31, 2019 
Item  Cost   Accumulated Amortization   Net   Costs  

Accumulated

Amortization

   Net 
Text Pro App  $8,333   $8,333   $-   $8,333   $7,638   $694 
Biz Pro App   1,913    1,913    -    1,913    1,701    213 
Total  $10,246   $10,246   $-   $10,246   $9,339   $907 

 

5. Notes Payable
   
  There are four notes payable that are unsecured, bear interest at 8% per annum and are due on demand. Interest has not been paid and is classified with accrued liabilities for financial statement purposes. The principal and interest owing as of May 31, 2020 is as follows:

 

    May 31, 2020   August 31, 2019 
Date of Issue   Principal   Interest   Principal   Interest 
September 16, 2011   $5,000   $3,485   $5,000   $3,185 
October 4, 2011    5,000    3,465    5,000    3,165 
November 4, 2011    10,000    6,862    10,000    6,262 
December 3, 2012    10,000    5,997    10,000    5,396 
    $30,000   $19,809   $30,000   $18,008 

 

6. Convertible Note Payable
   
  Five convertible notes payable are unsecured, bearing interest at 8% per annum, due on demand, and convertible into shares at the lenders’ option at a conversion price of $0.005 per share.
   
  There was no value assigned to the conversion feature of these notes as the shares that would have been issued on conversion would not have been readily convertible into cash. The principal and interest owing as at May 31, 2020 is as follows:

 

    May 31, 2020   August 31, 2019 
Date of Issue   Principal   Interest   Principal   Interest 
May 17, 2013   $10,000   $5,635   $10,000   $5,034 
September 11, 2015    10,000    3,779    10,000    3,178 
November 12, 2015    5,000    1,821    5,000    1,521 
November 13, 2015    5,000    1,820    5,000    1,520 
April 11, 2016    500    166    500    136 
    $30,500   $13,221   $30,500   $11,389 

 

8

 

 

GLOBE NET WIRELESS CORP.

NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

May 31, 2020

 

 

 

Two convertible notes payable bear interest at 8% per annum, are due on demand, and convertible at a conversion price of $0.5625 per share at the lender’s option.

 

One note for $20,000 was issued for which no value was assigned to the conversion feature as the shares that would have been issued on conversion would not have been readily convertible into cash.

 

    May 31, 2020   August 31, 2019 
Date of Issue   Principal   Interest   Principal   Interest 
July 11, 2016   $20,000   $6,225   $20,000   $5,024 

 

The other note for $20,000 was issued on October 31, 2016, when the market price per share was $1.48. The conversion feature was valued at $20,000. $1,200 was accreted and charged to interest during the nine months ended May 31, 2020 ($1,200 for the nine months ended May 31, 2019). At May 31, 2020, the unamortized discount was $14,268 (August 31, 2019 - $15,467).

 

   May 31, 2020   August 31, 2019 
   Principal   Interest   Principal   Interest 
Proceeds on issue  $20,000    -   $20,000    - 
Value assigned to conversion feature   20,000    -    20,000    - 
Value of convertible note payable at issuance   -    -    -    - 
Accretion charges  $5,733    -   $4,533    - 
Interest   -   $5,733    -   $4,533 
Balance, convertible note payable, end of period  $5,333   $5,733   $4,533   $4,533 

 

One convertible note payable bears interest at 10% per annum, is due on demand and convertible at a conversion price of $0.10 per share at the lender’s option.

 

There was no beneficial conversion feature at the time of issuance and, accordingly, no value has been assigned to the conversion feature.

 

    May 31, 2020   August 31, 2019 
Date of Issue   Principal   Interest   Principal   Interest 
April 17, 2017   $20,000   $6,247   $20,000   $4,745 

 

One convertible note payable bear interest at 8% per annum, is due on demand and convertible at a conversion price of $0.02 per share at the lender’s option. There was no beneficial conversion feature at the time of issuance and, accordingly, no value has been assigned to the conversion feature.

 

    May 31, 2020   August 31, 2019 
Date of Issue   Principal   Interest   Principal   Interest 
April 04, 2018   $25,000   $4,315   $25,000   $2,813 

 

One convertible note payable bear interest at 8% per annum, is due on demand and convertible at a conversion price of $0.035 per share at the lender’s option. There was no beneficial conversion feature at the time of issuance and, accordingly, no value has been assigned to the conversion feature.

 

9

 

 

GLOBE NET WIRELESS CORP.

NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

May 31, 2020

 

 

 

    May 31, 2020   August 31, 2019 
Date of Issue   Principal   Interest   Principal   Interest 
July 29, 2019   $3,500   $247   $3,500   $37 

 

One convertible note payable bear interest at 8% per annum, is due on demand and convertible at a conversion price of $0.024 per share at the lender’s option. There was no beneficial conversion feature at the time of issuance, and accordingly, no value has been assigned to the conversion feature.

 

   May 31, 2020 
Date of Issue  Principal   Interest 
November 26, 2019  $25,000   $1,030 

 

One convertible note payable bear interest at 0% per annum, is due on demand and convertible at a conversion price of $0.02 per share at the lender’s option. There was no beneficial conversion feature at the time of issuance, and accordingly, no value has been assigned to the conversion feature.

 

   May 31, 2020 
Date of Issue  Principal   Interest 
May 04, 2020  $25,000   $       - 

 

A summary of the value assigned to the convertible debt and accrued interest thereon is as noted below. All accrued interest is disclosed as accrued liabilities for financial statement purposes.

 

    May 31, 2020   August 31, 2019 
Conversion price of notes into shares  

Convertible

debt

  

 

Interest

  

Convertible

debt

  

 

Interest

 
$0.005   $30,500   $13,221   $30,500   $11,389 
$0.5625    25,733    11,958    24,533    9,556 
$0.10    20,000    6,247    20,000    4,745 
$0.02    25,000    4,315    25,000    2,813 
$0.035    3,500    247    3,500    37 
$0.024    25,000    1,030    -    - 
$0.02    25,000    -    -    - 
     $129,933   $37,018   $103,533   $28,540 

 

10

 

 

GLOBE NET WIRELESS CORP.

NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

May 31, 2020

 

 

 

7. Common stock

 

On September 14, 2009, the Company issued 2,000,000 shares of common stock at $0.001 per share for cash proceeds of $2,000.

 

On January 26, 2010, the Company issued 7,200,000 shares of common stock at $.002 per share for cash proceeds of $15,000.

 

On September 7, 2013, the Company issued 700,000 shares of common stock at $.05 per share for cash proceeds of $35,000.

 

On November 8, 2013, the Company issued 600,000 shares of common stock at $.05 per share for cash proceeds of $30,000.

 

There were no warrants or stock options outstanding as of May 31, 2020 or August 31, 2019.

 

11

 

 

FORWARD LOOKING STATEMENTS

 

Statements made in this Form 10-Q that are not historical or current facts are “forward-looking statements” made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the “Act”) and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “approximate” or “continue,” or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management’s best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

 

GENERAL

 

Globe Net Wireless Corp. was incorporated under the laws of the State of Nevada, U.S. on September 4, 2009. Our registration statement on Form S-1 was filed with the Securities and Exchange Commission was declared effective on May 15, 2013.

 

On December 9, 2016, Globe Net issued a press release announcing that it had launched BizPro Mobile Apps, a suite of mobile app development services for the small to medium sized business mobile app market. For more information, please refer to Exhibit 99.1 filed of the form 8-K filed on December 13, 2016 for more details.

 

Description of Business

 

Rural Internet Service Provider (RISP)

 

Globe Net is in the business of providing rural communities with high-speed internet connectivity at speeds equal or better than existing competing services. With its Internet and wireless connectivity systems, Globe Net’s plan was to provide internet and related services to both consumers and businesses in currently under serviced or unserviceable areas at real broadband speeds. Globe Net planned to offer for sale its GNW Systems to residents and businesses located in under-serviced or non-serviced rural areas worldwide with the initial focus on North America and China. Although Globe Net continues to attempt to achieve its goal of becoming a rural internet provider, management intends to focus on Globe Net’s mobile app business.

 

App Incubator

 

In August of 2016, Globe Net began a second business concept to capitalize on the proliferation of open source application programming interface (API) ecosystems. Management ascertained one of the key success metrics today is service velocity or the speed with which services can be developed and introduced to the market to generate revenue.

 

Digital services in the API economy are increasingly being developed using a new design pattern known as microservices. Wikipedia defines microservices as “a software architecture style in which complex applications are composed of small, independent processes communicating with each other using language-agnostic APIs.

 

In order to take advantage of the API ecosystem economy, Globe Net wants to become an agile business, able to participate in on-demand, context driven API economy value chains and to bring new services to market faster. The network as a digital platform will enable them to design and deploy customer-facing digital services by “mashing up” network and IT service components that run in the platform with each other, and potentially with services exposed by third-party platforms.

 

12

 

 

RESULTS OF OPERATIONS

 

Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation. We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

 

Nine-month Period Ended May 31, 2020 Compared to the Nine-month Period Ended May 31, 2019.

 

Our net loss for the nine-month period ended May 31, 2020 was $21,619 (2019: $21,513), which consisted of general and administration expenses and interest on notes payable. We did not generate any revenue during either nine-month period in fiscal 2020 or 2019. The increase in expenses in the current fiscal year relate to an increase in interest expenses.

 

The weighted average number of shares outstanding was 10,800,000 for the nine-month period ended May 31, 2020 and 10,800,000 for the nine-month period ended May 31, 2019.

 

LIQUIDITY AND CAPITAL RESOURCES

 

As at May 31, 2020, our current assets were $32,519 compared to $2,001 in current assets at August 31, 2019. As at May 31, 2020, our current liabilities were $245,536 compared to $194,306 at August 31, 2019. Current liabilities at May 31, 2020 were comprised of $184,733 in notes payable and $2,575 in accounts payable and $58,228 in accrued liabilities.

 

Stockholders’ deficit increased from $191,304 as of August 31, 2019 to $245,536 as of May 31, 2020.

 

Cash Flows from Operating Activities

 

We have not generated positive cash flows from operating activities. For the nine-month period ended May 31, 2020, net cash flows used in operating activities were $48,245 consisting of an adjusted net loss of $21,619 less adjustments for non-cash expenses of amortization of $907, accrued interest of $10,278 and accretion expenses of $1,200. Changes in operating assets and liabilities were $4,150 in accounts payable, and $6,099 in accrued liabilities and $28,762 in prepaid expenses. For the nine-month period ended May 31, 2019, net cash flows used in operating activities were $7,784 consisting of a net loss of $21,513 less adjustments for non-cash expenses of amortization of $2,562, accrued interest of $9,005 and accretion expenses of $1,200. Changes in operating assets and liabilities were $6,769 in accounts payable, and $6,900 in accrued liabilities and $1,093 in prepaid expenses.

 

Cash Flows from Financing Activities

 

We have financed our operations primarily from either the issuance of our shares of common stock or notes payable. For the nine-month period ended May 31, 2020, we generated $50,000 cash from financing activities from the issuance of a convertible promissory note. We generated $nil cash in the comparative period in fiscal 2019.

 

PLAN OF OPERATION AND FUNDING

 

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

 

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Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next three months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities and director loans. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations. We will have to raise additional funds in the next twelve months in order to sustain and expand our operations. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future arrangement for additional loans has been made. We do not have any agreements with our directors concerning these loans. We do not have any arrangements in place for any future equity financing.

 

OFF-BALANCE SHEET ARRANGEMENTS

 

As of the date of this report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

 

GOING CONCERN

 

The independent auditors’ report accompanying our August 31, 2019 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared “assuming that we will continue as a going concern,” which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

 

CHANGE IN ACCOUNTING POLICY

 

The Company adopts new pronouncements relating to generally accepted accounting principles applicable to the Company as they are issued, which may be in advance of their effective date.

 

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

No report required.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of May 31, 2020. Based on that evaluation, our management concluded that our disclosure controls and procedures were effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the nine-month period ended May 31, 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

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PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

None.

 

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ITEM 6. EXHIBITS

 

 

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SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  GLOBE NET WIRELESS CORP.
     
Dated: June 13, 2020 By: /s/ Gustavo Americo Folcarelli
    Gustavo Americo Folcarelli, President and Chief Executive Officer and Chief Financial Officer

 

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