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.

Globe Net is a startup company engaged in the development of proprietary wireless broadband technology for the purpose of becoming a rural internet service provider (RISP). Globe Net is a "shell" company as defined by the SEC as a result of only having nominal operations and nominal assets. Globe Net is an "emerging growth company" under the federal securities laws and will be subject to reduced public company reporting requirements. Globe Net's mission is to provide rural communities with high-speed internet connectivity at speeds equal or better than existing competing services. Through the use of its Internet and wireless connectivity systems, Globe Net will try to provide internet and related services to both consumers and businesses in currently under serviced or unserviceable areas at real broadband speeds. Globe Net plans 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.





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.

Three-month Period Ended November 30, 2019 Compared to the Three-month Period Ended November 30, 2018.

Our net loss for the three-month period ended November 30, 2019 was $6,578 (2018: $6,396), which consisted of general and administration expenses and interest on notes payable. We did not generate any revenue during either three-month period in fiscal 2019 or 2018. The increase in general and administrative expenses in the current fiscal year relate to interest cost of promissory notes compared to 2018.

The weighted average number of shares outstanding was 10,800,000 for the three-month period ended November 30, 2019 and 10,800,000 for the three-month period ended November 30, 2018.

LIQUIDITY AND CAPITAL RESOURCES

As at November 30, 2019, our current assets were $19,848 compared to $2,001 in current assets at August 31, 2019. As at November 30, 2019, our current liabilities were $217,877 compared to $194,306 at August 31, 2019. Current liabilities at November 30, 2019 were comprised of $158,392 in notes payable, $1,150 in accounts payable and $57,795 in accrued liabilities.

Stockholders' deficit increased from $191,398 as of August 31, 2019 to $197,796 as of November 30, 2019.





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Cash Flows from Operating Activities

We have not generated positive cash flows from operating activities. For the three-month period ended November 30, 2019, net cash used in operating activities was $6,591, consisting of an adjusted net loss of $6,578, less adjustments for non-cash items of $3,099 interest on notes payable, $854 in amortization and $400 on debt accretion. Adjustments for changes in operating assets and liabilities was a cash outflow of $4,366. For the three-month period ended November 30, 2018, net cash flows used in operating activities were $1,581.

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 three-month period ended November 30, 2019, we had $25,000 cash from issuing notes. We generated nil cash from financing activities for the comparative period in fiscal 2018.

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.

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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