WEB NEWS Comments & Business Outlook
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
)
Deal Flow
CALCULATION OF REGISTRATION FEE
Title of Each Amount to be Proposed Maximum Proposed Maximum Amount of
Common Stock, par value $0.0002 20,000,000 $ 0.25 $ 5,000,000 $ 503.50
Comments & Business Outlook
GLOBALINK, LTD. And Subsidiaries
Consolidated Statements of Operations
For the year ended December 31, 2015 and 2014
(Expressed in U.S. Dollars)
2015
2014
$
$
Revenue (note 14)
305,651
346,784
General and administrative expenses
Accounting and legal
51,442
55,467
Amortization (note 7)
4,072
1,398
Director and management fees (note 12)
60,000
43,974
Foreign exchange loss (gain)
(9,357
)
17,226
Research and development
2,885
—
Rent
26,106
19,340
Salaries and benefits
249,384
243,299
Stock-based compensation (notes 12 and 13)
90,932
—
Telephone
6,292
5,805
Travel
33,346
10,671
Transfer agent and filing fees
18,688
21,610
Other general and administrative expenses
50,151
42,236
Total general and administrative expenses
(583,941
)
(461,026
)
Loss before income taxes
(278,290
)
(114,242
)
Income taxes (note 16)
—
—
Net loss for the year
(278,290
)
(114,242
)
Other comprehensive income (loss)
Exchange difference on translating foreign operations
(12,322
)
1,612
Comprehensive loss
(290,612
)
(112,630
)
Basic and diluted weighted average number of common shares outstanding
42,870,753
32,285,274
Basic and diluted loss per common share
(0.00
)
(0.00
)
Management Discussion and Analysis
Comparatively, for the year ended December 31, 2014, we recognized revenues of $346,784. We paid or accrued accounting and legal expenses of $55,467 and incurred amortization expense of $1,398. We paid or accrued director and management fees of $43,974, recognized a foreign exchange loss of $17,226, and paid rent expenses of $19,340. We paid salaries and benefits of $243,299, telephone expenses of $5,805, and travel expenses of $10,671. We paid transfer agent and filing fees of $21,610 and other general and administrative expenses of $42,236. Accordingly, the Company recorded a net loss of $114,242 for the 2014. We had an exchange difference on translating foreign operations of $1,612, resulting in a comprehensive loss of $112,630 for the year ended December 31, 2014.
For the year ended December 31, 2015, we had an increase in our net loss of $164,048, or 143.60%. Our revenues decreased by $41,133, or 11.86%. Our general and administrative expenses increased by $122,915, or 26.66%. Although there are signs of gradual stability, management believes that the effects of the recent economic crisis are a long way from being over. However, our OneWorld operations have been well-established over the past ten years that we are capable of continuously sustaining our existence during the current crisis.
Deal Flow
Item 3.02 – Unregistered Sales of Equity Securities.
Comments & Business Outlook
GLOBALINK, LTD .
Condensed Consolidated Statements of Comprehensive Loss
(Expressed in U.S. Dollars)
(Unaudited)
Three months ended June 30,
2015
Three months ended June 30,
2014
Six months ended June 30,
2015
Six months ended June 30,
2014
$
$
$
$
Revenue (note 9)
84,823
107,627
156,744
172,538
General and administrative expenses
Accounting and legal
2,034
29,348
2,608
32,118
Director and management fees (note 7)
15,000
-
30,000
-
Foreign exchange (gain) loss
(8,982)
4,755
(9,576)
6,511
Rent
5,929
4,694
11,138
8,591
Salaries and benefits
58,240
67,460
110,582
115,617
Telephone
1,545
1,734
3,415
3,185
Transfer agent and filing fees
965
3,467
16,850
18,448
Travel
836
1,103
7,976
2,215
Other general and administrative expenses
10,237
6,922
12,565
15,084
Total general and administrative expenses
(85,804)
(119,483)
(185,558)
(201,769)
Net loss for the period
(981)
(11,856)
(28,814)
(29,231)
Other comprehensive income (loss)
Exchange difference on translating foreign operations
84
294
1,780
496
Comprehensive loss
(897)
(11,562)
(27,034)
(28,735)
Basic and diluted weighted average number of common shares outstanding
42,485,000
26,661,923
42,485,000
25,728,646
Basic and diluted loss per common share
(0.00)
(0.00)
(0.00)
(0.00)
Management Discussion and Analysis
For the three months ended June 30, 2015, we earned revenues of $84,823. We paid accounting and legal expenses of $2,034 and director and management fees of $15,000. We had a foreign exchange gain of $8,982 and paid rent expenses of $5,929. We paid salaries and benefits of $58,240 and telephone expenses of $1,545. We paid transfer agent and filing fees of $965, travel expenses of $836, and other general and administrative expenses of $10,237. We had a net loss of $981 for the period. We had an exchange difference on translating foreign operations of $84. As a result, we had a comprehensive loss of $897 for the three months ended June 30, 2015.
Comparatively, for the three months ended June 30, 2014, we earned revenues of $107,627. We paid accounting and legal expenses of $29,348 and had a foreign exchange loss of $4,755. We paid rent expenses of $4,694 and salaries and benefits of $67,460. We paid telephone expenses of $1,734 and transfer agent and filing fees of $3,467. We paid travel expenses of $1,103 and other general and administrative expenses of $6,922. We had a net loss of $11,856. We had an exchange difference on translating foreign operations of $294. As a result, we had a comprehensive loss of $11,562 for the three months ended June 30, 2014.
The $10,875, or 91.7%, decrease in net loss between the three months ended June 30, 2015 compared to the three months ended June 30, 2014 is due to a decrease in accounting and legal fees during the three months ended June 30, 2015. We earned 21.2% less in revenues, paid 13.7% less in salaries and benefits, and paid 93.1% less in accounting and legal expenses during the three months ended June 30, 2015.
Comments & Business Outlook
GLOBALINK, LTD.
Condensed Consolidated Statements of Loss and Comprehensive Loss
(Expressed in U.S. Dollars)
(Unaudited)
Three Months Ended March 31, 2015
Three Months Ended March 31, 2014
$
$
Revenue (note 9)
71,921
64,911
General and administrative expenses
Accounting and legal
574
2,770
Director and management fees (note 7)
15,000
-
Foreign exchange (gain) loss
(594)
1,756
Rent
5,209
3,897
Salaries and benefits
52,342
48,157
Telephone
1,870
1,451
Travel
7,140
1,112
Transfer agent and filing fees
15,885
14,981
Other general and administrative expenses
2,328
8,162
Total general and administrative expenses
(99,754)
(82,286)
Net loss for the period
(27,833)
(17,375)
Other comprehensive income (loss)
Exchange difference on translating foreign operations
1,696
202
Comprehensive loss
(26,137)
(17,173)
Basic and diluted weighted average number of common shares outstanding
42,485,000
24,785,000
Basic and diluted loss per common share
(0.00)
(0.00)
Management Discussion and Analysis
For the three months ended March 31, 2015, we recorded revenues of $71,921. We paid accounting and legal expenses of $574, director and management fees of $15,000 and rent expenses of $5,209. We had a foreign exchange gain of $594. We paid salaries and benefits of $52,342, telephone expenses of $1,870, and travel expenses of $7,140. We paid transfer agent and filing fees of $15,885 and other general and administrative expenses of $2,328. As a result, we paid total general and administrative expenses of $99,754. We had a net loss of $27,833 for the period. We had an exchange difference on translating foreign operations of $1,696, resulting in a comprehensive loss on $26,137 for the three months ended March 31, 2015.
Comparatively, for the three months ended March 31, 2014, we recorded revenues of $64,911. We paid accounting and legal expenses of $2,770, a foreign exchange loss of $1,756, and rent expenses of $48,157. We paid salaries and benefits of $48,157, telephone expenses of $1,451, and travel expenses of $1,112. We paid transfer agent and filing fees of $14,981 and other general and administrative expenses of $8,142. We had total general and administrative expenses of $82,286. Our net loss for the period was $17,375. We had an exchange difference of $202, resulting in a comprehensive loss of $17,173 for the three months ended March 31, 2014.
The $10,458, or 60.2% increase in the net loss between the three months ended March 31, 2015 compared to the three months ended March 31, 2014 is due to increased director and management fees during the three months ended March 31, 2015. We earned 10.8% more in revenues, paid 8.7% more salaries and benefits, and paid 6.0% more in transfer agent and filing fees during the three months ended March 31, 2015.
Comments & Business Outlook
GLOBALINK, LTD. And Subsidiary
Consolidated Statements of Operations
For the year ended December 31, 2014 and 2013
(Expressed in U.S. Dollars)
2014
2013
$
$
Revenue (note 9)
346,784
292,332
General and administrative expenses
Accounting and legal
55,467
38,566
Amortization
1,398
1,247
Director and management fees (note 7)
43,974
-
Foreign exchange loss (gain)
17,226
(20,085)
Rent
19,340
20,660
Salaries and benefits
243,299
252,652
Telephone
5,805
11,270
Travel
10,671
13,094
Transfer agent and filing fees
21,610
4,590
Other general and administrative expenses
42,236
40,086
Total general and administrative expenses
(461,026)
(362,080)
Loss before income taxes
(114,242)
(69,748)
Income taxes (note 11)
-
(21,364)
Net loss for the year
(114,242)
(91,112)
Other comprehensive income (loss)
Exchange difference on translating foreign operations
1,612
(7,528)
Comprehensive loss
(112,630)
(98,640)
Basic and diluted weighted average number of common shares outstanding
32,285,274
24,785,000
Basic and diluted loss per common share
(0.00)
(0.00)
Management Discussion and Analysis
Results of Operations
For the year ended December 31, 2014, we recognized revenues of $346,784. We paid accounting and legal expenses of $55,467 and incurred amortization expenses of $1,398. We paid director and management fees of $43,974, incurred a foreign exchange loss of $17,226, and paid rent expense of $19,340. We paid salaries and benefits of $243,299, telephone expenses of $5,805, and travel expenses of $10,671. We paid transfer agent and filing fees of $21,610 and other general and administrative expenses of $42,236. We had a net loss of $114,242 for the year. We had an exchange difference on translating foreign operations of $1,612, resulting in a comprehensive loss of $112,630 for the year ended December 31, 2014.
CFO Trail
Item 5.02 - Election of Directors and Appointment of Certain Officers
new chief financial officer . There are no family relationships between Ms. Yuan and any director or executive officer of the registrant. There are no arrangements or understandings between Ms. Yuan and any other person pursuant to which she was selected as a director. She is not currently expected to be named to any committees. There have been no transactions between Ms. Yuan and any related party.
Ms. Yuan, age 42 obtained her Bachelor of Economics from Shanghai University of Finance and Economics in 1994. Ms. Yuan became a Certified General Accountant in British Columbia in 2005 and a Certified Public Accountant in New Hampshire in 2007.
Ms. Andrea Yuan is a Chartered Professional Accountant (CPA)/Certified General Accountant (CGA) in British Columbia and a Certified Public Accountant in New Hampshire. Ms. Yuan started her career as an internal auditor and then as team head of the internal audit department at the Bank of China's Shanghai Pudong branch in China from 1994 through to 1999. After arriving in Canada in spring of 1999, Ms. Yuan worked as an accountant at a small accounting firm while she worked towards her CGA designation.
Ms. Yuan moved to Davidson and Company LLP, Chartered Accountants, in 2004 where she worked in the firm’s audit group. From November 2006 until 2009, Ms. Yuan was employed as an audit manager at Davidson. From 2009 until October 2011, Ms. Yuan was employed as an audit principal at Davidson. In addition to overseeing a variety of Canadian public company audits, she was also responsible for conducting the audits of various foreign public companies including Chinese and Korean companies.
Ms. Yuan started her own financial and management consulting company Black Dragon Financial Consulting Services Inc. in November 2011. Ms. Yuan acts as financial consultant for several public companies listed on the TSX Venture Exchange and currently is a Director and Chief Financial Officer of Globalink Ltd.
Mr. Young, age 70, has been the principal of Young Engineering Corporation, an engineering consulting firm for the building industry since 1975. He has also been the president of Landtek Properties Ltd., a development company since 1994 and Coreng Construction Corporation, a company providing project and construction management as well as general contracting from 1976 to 1990. Mr. Young has been a director of the registrant since March, 2006. Mr. Young received a bachelor of applied science degree in civil engineering from the University of British Columbia in 1963. He conducted his post-graduate studies both at McGill University and at Concordia University and received his master’s degree in civil and structural engineering in 1970 from Concordia University.
On February 9, 2015, the registrant elected Chao Hui Wu as a director. There are no arrangements between Mr. Wu and any other person pursuant to which he was selected as a director. He has not been named to any committees on the board of directors. There are no transactions between Mr. Wu and any related party.
On February 9, 2015, the registrant elected Yun Fei Liu as a director. There are no arrangements between Mr. Liu and any other person pursuant to which he was selected as a director. He will be overseeing market development, effective as of February 9, 2015. There are no transactions between Mr. Liu and any related party.
Deal Flow
Item 3.02 – Unregistered Sales of Equity Securities
On December 3, 2014, the registrant issued 4,000,000 restricted common shares to Yun Fei Liu, a non-affiliate, at a cost of $200,000. These shares were issued under the private placement exemption granted by Section 4(a)(2) of the Securities Act. The investor has enough knowledge and experience in business matters to be considered a sophisticated investor, has access to the type of information normally provided in a prospectus for a registered securities offering, and has agreed not to resell or distribute the securities to the public.
Comments & Business Outlook
GLOBALINK, LTD.
Condensed Consolidated Statements of Loss and Comprehensive Loss
(Expressed in U.S. Dollars)
(Unaudited)
Three months ended September 30, 2014
Three months ended September 30, 2013
Nine months ended September 30, 2014
Nine months ended September 30, 2013
$
$
$
$
Revenue (note 8)
97,008
165,032
269,546
292,482
General and administrative expenses
Salaries and benefits
66,596
71,337
182,213
164,537
Other general and administrative expenses
22,052
33,693
108,204
99,448
Total general and administrative expenses
(88,648)
(105,030)
(290,417)
(263,985)
Net income (loss) for the period
8,360
60,002
(20,871)
28,497
Other comprehensive income (loss)
Exchange difference on translating foreign operations
(571)
6,336
(75)
10,670
Comprehensive income (loss)
7,789
66,338
(20,946)
39,167
Basic and diluted weighted average number of common shares outstanding
37,767,609
24,851,667
29,785,733
24,851,667
Basic and diluted earnings (loss) per common share
0.00
0.00
(0.00)
0.00
Management Discussion and Analysis
Results of Operations
For the three months ended September 30, 2014, we earned revenues of $97,008. We paid salaries and benefits of $66,596 and other general and administrative expenses of $22,052. As a result, we had a net income of $8,360 for the period. There was a loss of $571 due to the exchange difference on translating foreign operations. As a result, we had a comprehensive income of $7,789 for the nine months ended September 30, 2014.
In comparison, for the three months ended September 30, 2013, we earned revenues of $165,032. We paid salaries and benefits of $71,337 and other general and administrative expenses of $33,693. As a result, we had a net income of $60,002 for the period. We had other comprehensive income of $6,336 due to the exchange difference on translating foreign operations. As a result, we had comprehensive income of $66,338 for the three months ended September 30, 2013.
The $51,642 decrease in net income between the three months ended September 30, 2014 and 2013 is due to decreased revenues received during the three months ended September 30, 2014. We earned 41.2% fewer revenues. We paid 6.6% less in salaries and benefits and 34.5% less in other general and administrative expenses during the three months ended September 30, 2014. Even with this decrease in general and administrative expenses, our decrease in revenues resulted in us earning less in total during 2014. However, our comprehensive loss decreased by 88.3% due to the greatly reduced exchange difference on translating foreign operations for the three months ended September 30, 2014.
Deal Flow
Item 3.02 Unregistered Sales of Equity Securities
On August 13, 2014, the registrant issued 1,500,000 restricted common shares to Zhao Cui Liu, a non-affiliate. Zhao Cui Liu purchased the common shares for cash of $.10 per common share or $150 ,000.
These shares were issued under the private placement exemption granted by Section 4(a)(2) of the Securities Act. The investor has enough knowledge and experience in business matters to be considered a “sophisticated investor”, have access to the type of information normally provided in a prospectus for a registered securities offering, and have agreed not to resell or distribute the securities to the public.
Comments & Business Outlook
GLOBALINK, LTD.
Condensed Consolidated Statements of Loss and Comprehensive Loss
(Expressed in U.S. Dollars)
(Unaudited)
Three months ended June 30,
2014
Three months ended June 30,
2013
Six months ended June 30,
2014
Six months ended June 30,
2013
$
$
$
$
Revenue (note 8)
107,627
47,750
172,538
127,450
General and administrative expenses
Salaries and benefits
67,460
46,288
115,617
93,200
Other general and administrative expenses
52,023
36,472
86,152
65,755
Total general and administrative expenses
(119,483)
(82,760)
(201,769)
(158,955)
Net loss for the period
(11,856)
(35,010)
(29,231)
(31,505)
Other comprehensive income (loss)
Exchange difference on translating foreign operations
294
23,078
496
4,334
Comprehensive loss
(11,562)
(11,932)
(28,735)
(27,171)
Basic and diluted weighted average number of common shares outstanding
26,661,923
24,785,000
25,728,646
24,785,000
Basic and diluted earnings (loss) per common share
(0.00)
(0.00)
(0.00)
(0.00)
Management Discussion and Analysis
For the three months ended June 30, 2014, we recorded revenues of $107,627. We paid or accrued $67,460 on salaries and benefits and $52,023 on other general and administrative expenses. As a result, we had a net loss of $11,856 for the three months ended June 30, 2014. In addition, we recognized $294 from the exchange difference on translating foreign operations, resulting in a comprehensive loss of $11,562 for the period.
Comparatively, for the three months ended June 30, 2013, we recorded revenues of $47,750. We paid or accrued salaries and benefits of $46,288 and $36,472 on other general and administrative expenses. As a result, we had a net loss of $35,010 for the three months ended June 30, 2013. In addition, we recognized $23,078 from the exchange difference on translating foreign operations, resulting in a comprehensive loss of $11,932 for the period.
The $23,154 decrease in net loss between the three months ended June 30, 2014 and 2013 is due to increased revenues received during the three months ended June 30, 2014. We earned 55.6% more revenues. We paid 31.4% more in salaries and benefits and 30% more in other general and administrative expenses during the three months ended June 30, 2014. Even with this increase in general and administrative expenses, our increase in revenues results in us earning more in total during 2014. However, our comprehensive loss decreased by 3.1% due to the greatly reduced exchange difference on translating foreign operations for the three months ended June 30, 2014.
Reverse Merger Activity
On
April 15, 2014 , the registrant
entered into a joint venture agreement with China Xuzhou Shizhen Biotech Co. Ltd. to set up a joint venture enterprise named Globalink (Jiangsu) Biotech LLC in Pizhou City in the Jiangsu Province in the People’s Republic of China. This joint venture will be producing products using ginkgo leaves, such as ginkgo biloba extracts, health food, and medicine, and will be studying and developing new products based on ginkgo leaves. Xuzhou Shizhen will invest 20% with technology, management, and scientific research, and the registrant will pay 60 million Chinese yuan (CNY), which will account for 80% of the joint venture.
Deal Flow
Financing transaction in conjunction with reverse merger transaction that took place on April 15, 2014.
On June 16, 2014, Hin Kwok Sheung, the lender of the registrant’s debt financing of $500,000 (as disclosed in the press release dated May 1, 2014) has been converted into 10,000,000 common shares. Any accumulated interest has been waived by the lenders of the demand loans. These shares were issued under the private placement exemption granted by Section 4(a)(2) of the Securities Act. The lender has enough knowledge and experience in business matters to be considered a “sophisticated investor”, have access to the type of information normally provided in a prospectus for a registered securities offering, and have agreed not to resell or distribute the securities to the public.
