UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.   20549



FORM 10-KSB





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|[ X ] | ANNUAL REPORT UNDER SECTION 13 0R 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|      | For the fiscal year ended December 31, 2006                                   





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|[    ] | TRANSITION REPORT UNDER SECTION 13 0R 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|       | For the transition period from  to                                                
|       | Commission file number                                                            





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|----------------------------------------------
|GLOBETRAC INC.                                
|(Name of Small Business Issuer in its charter)





|                                                                                                              |                                                
|------------------------------------------------------------------------------------------------------------- | -----------------------------------------------
|Incorporated in the State of Delaware
(State or other jurisdiction of incorporation or organization)          | 33-0953557
(I.R.S. Employer Identification No.)
|1100 Melville Street, Suite 600, Vancouver, British Columbia, Canada
(Address of principal executive offices) | V6E 4A6
(Zip Code)                             



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|----------------------------------------------------------- |  | -----------------------------------------
|Issuers telephone number:  1-800-648-4287                 
|Securities registered pursuant to Section 12(b) of the Act:
|                                                            |  |                                          
|Title of each class                                         |  | Name of each exchange on which registered
|                                                            |  |                                          
|None                                                        |  | N/A                                      
|                                                            |  |                                          
|Securities registered pursuant to Section 12(g) of the Act:







|                               
|-------------------------------
|Common Stock - $0.001 par value
|(Title of Class)               



Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the last 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.     [ x ] Yes         [   ]  No





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Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB.  [   ]



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[   ] Yes         [ X ]  No



State issuers revenues for its most recent fiscal year.

$134,674



State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days: $157,262.50, as of March 29, 2007 ($0.0115 average X 13,675,000)



State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date.



|                                |                              
|------------------------------- | -----------------------------
|Class                           | Outstanding at March 30, 2007
|Common Stock - $0.001 par value | 22,190,000                   



Documents incorporated by reference:  Exhibit 2.1 (Articles of Incorporation) and Exhibit 2.2 (By-laws) both filed as exhibits to GlobeTracs registration statement on Form SB-2 filed on August 2, 2001; Exhibit 10.1 (Master Distributorship Agreement) filed as an exhibit to GlobeTracs Form 8-K (Current Report) filed on September 11, 2002; Exhibit 10.5 (Letter Agreement) filed as an exhibit to GlobeTracs Form 8-K (Current Report) filed on December 22, 2004; and Exhibit 10.6 (Termination and Transfer Agreement) filed as an exhibit to GlobeTracs Form 8-K (Current Report) filed on November 14, 2005.



Transitional Small Business Disclosure Format (Check one):Yes   [   ]     No   [ x ]





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|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 2





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PART I



Item 1.

Description of Business.



(a)

Business Development



GlobeTrac was incorporated under the laws of the State of Delaware on March 2, 2000 under the original name 411 Place.com Inc.  On February 28, 2001, GlobeTrac changed its name to Artescope, Inc.



On May 6, 2002 all of the directors and officers of GlobeTrac resigned and a new director and officer was appointed.



On July 29, 2002, the Company changed its name to GlobeTrac Inc.  GlobeTrac has an authorized capital of 205,000,000 shares with a par value of $0.001, consisting of 200,000,000 shares of Common Stock and 5,000,000 shares of Preferred Stock with 22,190,000 shares of Common Stock currently issued and outstanding.



GlobeTrac, Inc. provided digital graphics design and production services for commercial and corporate enterprises until August 27, 2002 when GlobeTrac changed its business direction and began selling, marketing, distributing, and installing global wireless tracking and telematics equipment in Europe.



On August 27, 2002 the president of GlobeTrac resigned, but remained on as director and the chief financial officer, and a new president and chief executive officer was appointed.



Also, on August 27, 2002, GlobeTrac acquired all of the outstanding shares of Global Axxess Corporation Limited for $1 and two of the directors of Global Axxess resigned and two new directors were appointed.  Global Axxess is a private Irish company that was incorporated on December 31, 1997, as Advance High Tech Development Enterprises Limited.  On April 26, 2002, the company changed its name to Global Axxess Corporation Limited and obtained the exclusive rights to distribute global wireless tracking and telematics products in Europe.  See Exhibit 10.1  Master Distributorship Agreement for more information.



Also, on August 27, 2002, Global Axxess acquired the beneficial ownership of all the outstanding shares of Globetrac Limited for one British pound and all the directors of Globetrac Limited resigned and two new directors were appointed.  Globetrac Limited was incorporated in the United Kingdom on March 28, 2002 as a private limited company under the name Global Axxess Tracking Limited.  On July 19, 2002 the company changed its name to Globetrac Limited.  Globetrac Limited was in the business of selling, marketing, distributing and installing global wireless tracking and telematics equipment.  On March 20, 2007, Globetrac Limited was formally dissolved and all of Globetrac Limiteds assets and liabilities have been assumed by GlobeTrac Inc. Globetrac Limiteds losses from operations for the years ended December 31, 2006 and 2005 were recorded in loss from discontinued operations on the Statement of Operations in the attached consolidated financial statements.



Effective November 1, 2004, GlobeTrac decided to wind down its operations due to cash flow limitations.  Additionally, GlobeTrac reached an agreement with WebTech Wireless to cancel the master distributorship agreement and to restructure its ongoing business relationship with WebTech Wireless.  See Exhibit 10.5  Letter Agreement and Exhibit 10.6 - Termination and Transfer Agreement for more information.  Pursuant to the terms of the Letter Agreement and the Termination and Transfer Agreement WebTech acquired specific assets and liabilities of GlobeTrac.  WebTech has agreed to pay a 6% commission/royalty on gross sales from qualified potential customers and resellers, which will be included for commission purposes if such business commences within 12 months of the signed agreement.  There is no cap on the royalty payable to GlobeTrac and royalties are to be paid by WebTech for 11 years beginning November 1, 2004.



Since November 1, 2004, GlobeTracs current principal business activity has been to seek a viable business opportunity through acquisition, merger or other suitable business combination method.



Neither GlobeTrac nor any of its subsidiaries have been involved in any bankruptcy, receivership or similar proceedings.  There have been no material reclassifications, mergers, consolidations or purchases or sales of a significant amount of assets not in the ordinary course of GlobeTracs business, with the exception of Globetrac Limited being formally dissolved on March 20, 2007 and the sale of certain assets to WebTech in accordance with the terms set out in the Termination and Transfer Agreement.  See Exhibit 10.6 for more information.







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|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 3





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(b)

Business of GlobeTrac



On November 26, 2004, GlobeTrac entered into an agreement with WebTech Wireless whereby GlobeTrac decided to wind down its operations effective November 1, 2004 and WebTech Wireless agreed to acquire all of GlobeTracs existing customers and resellers and portals in exchange for the 6% commission/royalty.  See Exhibit 10.5  Letter Agreement and Exhibit 10.6 - Termination and Transfer Agreement for more information.



Since November 1, 2004, GlobeTracs only source of income is the royalty income they receive from WebTech.  GlobeTracs present business objective is to locate and consummate a merger or acquisition of a viable business.



GlobeTrac will attempt to locate and negotiate with a target business for the merger of a target business into GlobeTrac.  In certain instances, a target business may want to become a subsidiary of GlobeTrac or may want to contribute assets to GlobeTrac rather than merge.  It is anticipated that management will contact broker-dealers and other persons with whom they are acquainted who are involved with corporate finance matters to advise them of GlobeTracs existence and to determine if any companies or businesses that they represent have a general interest in considering a merger or acquisition with GlobeTrac.  No assurance can be given that GlobeTrac will be successful in finding or acquiring a viable target business.  Furthermore, no assurance can be given that any business opportunity, which does occur, will be on terms that are favorable to GlobeTrac or its current stockholders.



A target business, if any, which may be interested in a business combination with GlobeTrac may include (1) a company for which a primary purpose of becoming public is the use of its securities for the acquisition of assets or businesses; (2) a company that is unable to find an underwriter of its securities or is unable to find an underwriter of securities on terms acceptable to it; (3) a company that wants to become public with less dilution of its common stock than would occur normally upon an underwriting; (4) a company that believes that it will be able to obtain investment capital on more favorable terms after it has become public; (5) a foreign company that wants to gain an initial entry into the United States securities market; (6) a special situation company, such as a company seeking a public market to satisfy redemption requirements under a qualified Employee Stock Option Plan; or (7) a company seeking one or more of the other perceived benefits of becoming a public company.



Management believes that there are perceived benefits to being a reporting company with a class of publicly-registered securities.  These are commonly thought to include (1) the ability to use registered securities to make acquisition of assets or businesses; (2) increased visibility in the financial community; (3) the facilitation of borrowing from financial institutions; (4) improved trading efficiency; (5) stockholder liquidity; (6) greater ease in subsequently raising capital; (7) compensation of key employees through stock options; (8) enhanced corporate image; and (9) a presence in the United States capital market.



GlobeTrac anticipates that the target businesses or business opportunities presented to it will (1) either be in the  process of formation, or be recently organized with limited operating history or a history of losses attributable to under-capitalization or other factors; (2) experiencing financial or operating difficulties; (3) be in need of funds to develop new products or services or to expand into a new market, or have plans for rapid expansion through acquisition of competing businesses; (4) or other similar characteristics.  GlobeTrac intends to concentrate its acquisition efforts on properties or businesses that management believes to be undervalued or that management believes may realize a substantial benefit from being publicly owned.  Given the above factors, investors should expect that any target business or business opportunity may have little or no operating history, or a history of losses or low profitability.



GlobeTrac does not propose to restrict its search for business opportunities to any particular geographical area or industry, and may, therefore, engage in essentially any business, to the extent of its limited resources.  This includes industries such as service, finance, natural resources, manufacturing, high technology, product development, medical, communications and others.  GlobeTracs discretion in the selection of business opportunities is unrestricted, subject to the availability of such opportunities, economic conditions, and other factors.  However, management believes that any potential business opportunity must provide audited financial statements for review, for the protection of all parties to the business combination.  One or more attractive business opportunities may choose to forego the possibility of a business combination with us, rather than incur the expenses associated with preparing audited financial statements.



Management, which in all likelihood will not be experienced in matters relating to the business of a target business, will rely upon its own efforts in accomplishing GlobeTracs business purposes.  Outside consultants or advisors may be utilized by GlobeTrac to assist in the search for qualified target companies.  If GlobeTrac does retain such an outside consultant or advisor, any cash fee earned by such person will need to be assumed by the target business, as GlobeTrac has no cash assets with which to pay such obligation.





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|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 4





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Management does not have the capacity to conduct as extensive an investigation of a target business as might be undertaken by a venture capital fund or similar institution.  The analysis of new business opportunities will be undertaken by, or under the supervision of GlobeTracs officers and directors, who are not professional business analysts.  In analyzing prospective business opportunities, management may consider such matters as:





 the available technical, financial and managerial resources;

 working capital and other financial requirements; history of operations, if any;

 prospects for the future;

 nature of present and expected competition;

 the quality and experience of management services which may be available and the depth of that management

 the potential for further research, development, or exploration

 specific risk factors not now foreseeable but which then may be anticipated to impact our proposed activities;

 the potential for growth or expansion;

 the potential for profit; and

 the perceived public recognition or acceptance of products, services, or trades; name identification.



A target business may have an agreement with a consultant or advisor, providing that services of the consultant or advisor be continued after any business combination.  Additionally, a target business may be presented to GlobeTrac only on the condition that the services of a consultant or advisor be continued after a merger or acquisition.  Such preexisting agreements of target businesses for the continuation of the services of attorneys, accountants, advisors or consultants could be a factor in the selection of a target business.



In implementing a structure for a particular target business acquisition, GlobeTrac may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another corporation or entity.  GlobeTrac may also acquire stock or assets of an existing business.  Depending upon the nature of the transaction, the current officers and directors of GlobeTrac may resign their management and board positions with GlobeTrac in connection with a change of control or acquisition of a business opportunity and be replaced by one or more new officers and directors.



It is anticipated that any securities issued in any reorganization would be issued in reliance upon exemption from registration under applicable federal and state securities laws.  In some circumstances however, as a negotiated element of its transaction, GlobeTrac may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter.  If such registration occurs, of which there can be no assurance, it will be undertaken by the surviving entity after GlobeTrac has entered into an agreement for a business combination or has consummated a business combination.  The issuance of additional securities and their potential sale into GlobeTracs trading market may depress the market value of GlobeTracs securities in the future.



With respect to any merger or acquisition negotiations with a target business, management expects to focus on the percentage of GlobeTrac that the target business stockholder would acquire in exchange for their shareholdings in the target business.  Depending upon, among other things, the target businesss assets and liabilities, GlobeTracs shareholders will in all likelihood hold a substantially lesser percentage ownership interest in GlobeTrac following any merger or acquisition.  Any merger or acquisition effected by GlobeTrac can be expected to have a significant dilutive effect on the percentage of shares held by GlobeTracs shareholders at that time.



At the present time, management has not identified any target business or business opportunity that it plans to pursue, nor has GlobeTrac reached any agreement or definitive understanding with any person concerning an acquisition or a business combination.  When any such agreement is reached or other material fact occurs, GlobeTrac will file notice of such agreement or fact with the Securities and Exchange Commission on Form 8-K.  Persons reading this Form 10-KSB are advised to determine if GlobeTrac has subsequently filed a Form 8-K.



Management anticipates that the selection of a business opportunity in which to participate will be complex and without certainty of success.  Management believes (but has not conducted any research to confirm) that there are numerous firms seeking the perceived benefits of a publicly registered corporation.  Such perceived benefits may include facilitating or improving the terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to key employees, increasing the opportunity to use securities for acquisitions, and providing liquidity for stockholders investments.  Business opportunities may be available in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.





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|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 5





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Competition



GlobeTrac will remain an insignificant participant among the firms that engage in the acquisition of business opportunities. There are many established venture capital and financial concerns which have significantly greater financial and personnel resources and technical expertise than GlobeTrac. In view of GlobeTracs combined extremely limited financial resources and limited management availability, GlobeTrac will continue to be at a significant competitive disadvantage compared to its competitors.



GlobeTrac expects to encounter substantial competition in its efforts to locate attractive business combination opportunities.  The competition may in part come from business development companies, venture capital partnerships and corporations, small investment companies, and brokerage firms.  Some of these types of organizations are likely to be in a better position than GlobeTrac to obtain access to attractive business acquisition candidates either because they have greater experience, resources and managerial capabilities than GlobeTrac, because they are able to offer immediate access to limited amounts of cash, or for a variety of other reasons.  GlobeTrac also will experience competition from other public companies with similar business purposes, some of which may also have funds available for use by an acquisition candidate.



Patents/Trade Marks/Licences/Franchises/Concessions/Royalty Agreements or Labour Contracts



Neither GlobeTrac nor its subsidiaries currently own any patents or trade marks.  Also, they are not party to any license or franchise agreements, concessions, royalty agreements or labor contracts arising from any patents or trade marks, with the exception of the terms set out in the Letter Agreement among Global Axxess, WebTech Wireless International and WebTech Wireless Inc.  See Exhibit 10.5  Letter Agreement and Exhibit 10.6 - Termination and Transfer Agreement for more information.



Expenditures on Research and Development During the Last Two Fiscal Years



GlobeTrac has not spent any funds on research and development activities in the last two fiscal years except for funds spent for the development of its website.



GlobeTrac is not currently conducting any research and development activities.



Number of Total Employees and Number of Full Time Employees



GlobeTrac currently has no employees.  Management expects to use consultants, attorneys and accountants as necessary, and does not anticipate a need to engage any full-time employees so long as it is seeking and evaluating business opportunities.  The need for employees and their availability will be addressed in connection with the decision whether or not to acquire or participate in specific business opportunities.



RISK FACTORS



You should consider each of the following risk factors and the other information in this Annual Report, including GlobeTracs consolidated financial statements and the related notes, in evaluating GlobeTracs business and prospects.  The risks and uncertainties described below are not the only ones that impact on GlobeTracs business.  Additional risks and uncertainties not presently known to GlobeTrac or that GlobeTrac currently considers immaterial may also impair its business operations.  If any of the following risks actually occur, GlobeTracs business and financial results could be harmed.  In that case, the trading price of GlobeTracs Common Stock could decline.







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|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 6





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Risks associated with GlobeTracs business:



1.

GlobeTrac lacks an operating history and has losses that it expects will continue into the future.  If the losses continue GlobeTrac will have to suspend operations or cease operations.



GlobeTrac has no operating history upon which an evaluation of its future success or failure can be made.  GlobeTrac has incurred significant operating losses since inception and has limited financial resources to support it until such time that it is able to generate positive cash flow from operations.  GlobeTracs accumulated net losses since inception are $4,310,003.  For the 12 months ended December 31, 2006, operating expenses increased by $39,587 from $86,467 for the year ended December 31, 2005 to $126,054 for the year ended December 31, 2006.  See Management Discussion and Analysis on page 11 for more details.



GlobeTrac currently has few assets and limited financial resources.  Even without a viable business, GlobeTrac will, in all likelihood, continue to incur operating expenses, at least until the consummation of a business combination.  This will most likely result in GlobeTrac incurring net operating losses until GlobeTrac can consummate a business combination with a target business.  There is no assurance that GlobeTrac can identify such a target business and consummate such a business combination.



2.

GlobeTrac has no agreement for a business combination and there are no minimum requirements for a business combination.



GlobeTrac has no current arrangement, agreement or understanding with respect to engaging in a business combination with a specific entity.  There can be no assurance that GlobeTrac will be successful in identifying and evaluating suitable target businesses or business opportunities or in concluding a business combination.  No particular industry or specific business within an industry has been selected for a target business.  GlobeTrac has not established a specific length of operating history or a specified level of earnings, assets, net worth or other criteria that it will require a target business to have achieved, or without which GlobeTrac would not consider a business combination with such target business.  Accordingly, GlobeTrac may enter into a business combination with a target business that has limited or no significant operating history, losses, limited or no potential for immediate earnings, limited assets, negative net worth or other negative characteristics.  There is no assurance that GlobeTrac will be able to negotiate a business combination on terms favorable to GlobeTrac.



3.

GlobeTrac does not have sufficient funds to acquire or operate a target business.



GlobeTrac has very limited funds, and such funds may not be adequate to take advantage of any available business opportunities.  Even if GlobeTracs currently available funds prove to be sufficient to pay for its operations until it is able to acquire an interest in or complete a transaction with a target business, such funds may not be sufficient to enable it to exploit the business opportunity.  Thus, the ultimate success of GlobeTrac will depend, in part, upon its availability to raise additional capital.  If GlobeTrac requires modest amounts of additional capital to fund its operations until it is able to complete a business acquisition or transaction, such funds are expected to be provided by private loans or the private placement of the Companys commons stock.  However, GlobeTrac has not investigated the availability, source, or terms that might govern the acquisition of the additional capital that is expected to be required in order to exploit a business opportunity, and will not do so until it has determined the level of need for such additional financing.  There is no assurance that additional capital will be available from any source or, if available, that it can be obtained on terms acceptable to GlobeTrac.  If not available, GlobeTrac operations will be limited to those that can be financed with its modest capital.



Risks associated with GlobeTracs industry:



4.

GlobeTrac faces significant competition for business opportunities and combinations and there may be a scarcity of available business opportunities.



GlobeTrac is and will continue to be an insignificant participant in the business of seeking mergers with and acquisitions of business opportunities.  A large number of established and well-financed entities, including venture capital firms, are active in mergers and acquisitions of target businesses that may be merger or acquisition target candidates for GlobeTrac.  Nearly all such entities have significantly greater financial resources, technical expertise and managerial capabilities than



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|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 7





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GlobeTrac and, consequently, GlobeTrac will be at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination.  Moreover, GlobeTrac will also compete in seeking merger or acquisition candidates with other small public companies, some of which may also have funds available for use by an acquisition candidate.  See Business of GlobeTrac  Competition for more details.



5.

GlobeTracs business and operating results may be harmed by inflation and deflation.



Inflation has had and may continue to have adverse effects on the economies and securities markets of certain countries and could have adverse effects on GlobeTracs clients in those countries, including their ability to obtain financing and repay debts.  Significant inflation or deflation could have a material adverse effect on GlobeTracs business, operating results, liquidity and financial position.



6.

Reporting requirements may delay or preclude any merger or acquisition, which may adversely affect GlobeTracs business.



GlobeTrac is required to provide certain information about significant acquisitions including audited financial statements of the target business.  Obtaining audited financial statements are the economic responsibility of the target business.  The additional time and costs that may be incurred by some potential target businesses to prepare such financial statements may significantly delay or essentially preclude consummation of an otherwise desirable acquisition by GlobeTrac.  Acquisition prospects that do not have or are unable to obtain the required audited statements may not be appropriate for acquisition so long as the reporting requirements of the Exchange Act are applicable.  Notwithstanding a target businesss agreement to obtain audited financial statements within the required time frame, such audited financials may not be available to GlobeTrac at the time of effecting a business combination.  In cases where audited financials are unavailable, GlobeTrac will have to rely upon unaudited information that has not been verified by outside auditors in making its decision to engage in a transaction with the business entity.  This risk increases the prospect that a business combination with such a target business might prove to be an unfavorable one for GlobeTrac.



7.

Regulation under the Investment Act of 1940 may adversely affect GlobeTracs business.



If GlobeTrac engages in business combinations that would result in GlobeTrac holding passive investment interests in a number of entities, GlobeTrac could be subject to regulation under the Investment Company Act of 1940.  In such event, GlobeTrac would be required to register as an investment company and could be expected to incur significant registration and compliance costs.  GlobeTrac has obtained no formal determination from the Securities and Exchange Commission as to the status of GlobeTrac under the Investment Company Act of 1940 and, consequently, any violation of such Act could subject GlobeTrac to material adverse consequences.



Risks associated with GlobeTrac and its subsidiaries:



8.

GlobeTracs stock price is volatile.



The stock market in general, and the stock prices of GlobeTracs Common Stock in particular, have experienced extreme volatility that often has been unrelated to the operating performance of any specific public company.  The market price of GlobeTracs Common Stock has fluctuated in the past and is likely to fluctuate in the future as well, especially if GlobeTracs Common Stock continues to be thinly traded.  Factors that may have a significant impact on the market price of GlobeTracs Common Stock include:



a.

announcements concerning GlobeTrac or its competitors, including the negotiation for or acquisition of a target business;

b.

announcements regarding financial developments;

c.

government regulations, including stock option accounting and tax regulations;

d.

acts of terrorism and war; or

e.

rumors or allegations regarding GlobeTracs financial disclosures or practices.







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|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 8





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9.

A small number of GlobeTracs stockholders own a substantial amount of GlobeTracs Common Stock, and if such stockholders were to sell those shares in the public market within a short period of time, the price of GlobeTracs Common Stock could drop significantly.



Because some stockholders own substantial amounts of shares of GlobeTracs Common Stock, sales of a large number of shares of GlobeTracs Common Stock or even the availability of a substantial number of shares for sale could have the effect of reducing the price per share of GlobeTracs Common Stock, especially if the Common Stock continues to be thinly traded.



10.

GlobeTrac may not be able to attract and retain qualified personnel necessary for the implementation of its business strategy.



GlobeTracs future success depends largely upon the continued service of its Board members, executive officers and other key personnel.  GlobeTracs success also depends on its ability to attract, retain and motivate qualified personnel.  GlobeTrac may have particular difficulty attracting and retaining key personnel as a Company with no or minimal assets and financial sources.  GlobeTrac does not maintain key person life insurance on any of its personnel.  The loss of one or more of its key employees or its inability to attract, retain and motivate qualified personnel could negatively impact GlobeTracs ability to locate and acquire a target business.



11.

Current management of GlobeTrac may change and there may be a change in control of GlobeTrac as a result of the acquisition of a target business.



In conjunction with completion of a business acquisition, it is anticipated that GlobeTrac will issue an amount of GlobeTracs authorized but unissued Common Stock that represents the greater majority of the voting power and equity of GlobeTrac, which will, in all likelihood, result in shareholders of a target business obtaining a controlling interest in GlobeTrac.  As a condition of a potential business combination agreement, the current shareholders of GlobeTrac may agree to sell or transfer all or a portion of GlobeTracs Common Stock they own so to provide the target business with all or majority control. The resulting change in control of GlobeTrac will likely result in removal of the current officers and directors of GlobeTrac and a corresponding reduction in or elimination of their participation in the future affairs of the Company.



12.

GlobeTrac does not expect to pay dividends in the foreseeable future.



GlobeTrac has never paid cash dividends on its Common Stock and has no plans to do so in the foreseeable future. GlobeTrac intends to retain earnings, if any, to develop and expand its business.



13.

Dilution.



A business combination normally will involve the issuance of a significant number of additional shares.  Depending upon the value of the assets acquired in such business combination, the per share value of GlobeTracs Common Stock may increase or decrease, perhaps significantly.



14.

Penny Stock rules may make buying or selling GlobeTracs Common Stock difficult, and severely limit their

market and liquidity.



Trading in GlobeTracs securities is subject to certain regulations adopted by the SEC commonly known as the penny stock rules.  These rules govern how broker-dealers can deal with their clients and penny stocks.  The additional burdens imposed upon broker-dealers by the penny stock rules may discourage broker-dealers from effecting transactions in GlobeTracs securities, which could severely limit their market price and liquidity of its Common Stock.  See Penny Stock rules on page 11 for more details.



Item 2.

Description of Property.



GlobeTrac currently does not have a principal executive office.  GlobeTracs mailing address is 1100 Melville Street, Suite 600, Vancouver, British Columbia, V6E 4A6, Canada.  Other than this mailing address, GlobeTrac does not currently maintain any other office facilities, and does not anticipate the need for maintaining office facilities at any time in the foreseeable future.  GlobeTrac pays no rent or other fees for the use of the mailing address as these offices are used virtually full-time by other businesses of GlobeTracs CEO.





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|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 9





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It is likely that GlobeTrac will not establish an office until it has completed a business acquisition transaction, but it is not possible to predict what arrangements will actually be made with respect to future office facilities.



Item 3.

Legal Proceedings.



GlobeTrac is not a party to any pending legal proceedings and, to the best of GlobeTracs knowledge, none of GlobeTracs property or assets are the subject of any pending legal proceedings



Item 4.

Submission of Matters to a Vote of Security Holders.



No matter was submitted to a vote of security holders, through the solicitation of proxies or otherwise, during the fourth quarter of the fiscal year covered by this report.



PART II



Item 5.

Market for Common Equity and Related Stockholder Matters.



(a)

Market Information



GlobeTracs Common Stock has been quoted on the NASD OTC Bulletin Board since March 2002 under the symbol GBTR (formerly ARTE).  However, from March 2002 to June 2002, GlobeTracs Common Stock did not trade.  The first trade occurred on June 28, 2002.  The table below gives the high and low bid information for each fiscal quarter for the last two fiscal years and for the interim period ended March 29, 2007.  The bid information was obtained from Pink Sheets LLC and reflects inter-dealer prices, without retail mark-up, mark-down or commission, and may not represent actual transactions.





|                  |         |        |                
|----------------- | ------- | ------ | ---------------
|High & Low Bids  
|Period ended      | High    | Low    | Source         
|29 March 2007     | $0.0127 | $0.006 | Pink Sheets LLC
|31 December 2006  | $0.012  | $0.006 | Pink Sheets LLC
|30 September 2006 | $0.0155 | $0.011 | Pink Sheets LLC
|30 June 2006      | $0.0155 | $0.011 | Pink Sheets LLC
|31 March 2006     | $0.017  | $0.012 | Pink Sheets LLC
|31 December 2005  | $0.045  | $0.011 | Pink Sheets LLC
|30 September 2005 | $0.03   | $0.011 | Pink Sheets LLC
|30 June 2005      | $0.036  | $0.025 | Pink Sheets LLC
|31 March 2005     | $0.04   | $0.025 | Pink Sheets LLC



(b)

Holders of Record



There are approximately 37 holders of record of GlobeTracs Common Stock.



(c)

Dividends



GlobeTrac has declared no dividends on its Common Stock, with the exception of the following, and is not subject to any restrictions that limit its ability to pay dividends on its shares of Common Stock.  Dividends are declared at the sole discretion of GlobeTracs Board of Directors.



On May 17, 2002, the Board of Directors declared a stock dividend of three shares for every one share of Common Stock issued.  The stock dividend was paid out on May 28, 2002.









|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 10





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(d)

Recent Sales of Unregistered Securities



There have been no sales of unregistered securities within the last three years that would be required to be disclosed pursuant to Item 701 of Regulation S-B.



There are no outstanding options or warrants to purchase, or securities convertible into, shares of GlobeTracs Common Stock, except for the following convertible debt:



At December 31, 2006 and 2005, GlobeTrac had a note payable in the amount of $162,149 plus accrued interest of $38,934 and $25,962 which is convertible into GlobeTrac common shares at $0.50 per share, at GlobeTracs option.



At December 31, 2006 and 2005, GlobeTrac had notes payable totaling $511,660 plus accrued interest of $122,798 and $81,804 that are convertible into GlobeTrac common shares at $0.50 per share, at GlobeTracs option.



At December 31, 2006 and 2005, GlobeTrac had notes payable totaling $835,940 plus accrued interest of $209,246 and $125,652 that are convertible into GlobeTrac common shares at the option of either the GlobeTrac or the lender at market price less 20%, with a minimum conversion price of $0.15 per share.



(e)

Penny Stock Rules



Trading in GlobeTracs Common Stock is subject to the penny stock rules.  The SEC has adopted regulations that generally define a penny stock to be any equity security that has a market price of less than $5.00 per share, subject to certain exceptions.  These rules require that any broker-dealer who recommends GlobeTracs Common Stock to persons other than prior customers and accredited investors, must, prior to the sale, make a special written suitability determination for the purchaser and receive the purchasers written agreement to execute the transaction.  Unless an exception is available, the regulations require the delivery, prior to any transaction involving a penny stock, of a disclosure schedule explaining the penny stock market and the risks associated with trading in the penny stock market.  In addition, broker-dealers must disclose commissions payable to both the broker-dealer and the registered representative and current quotations for the securities they offer.  The additional burdens imposed upon broker-dealers by such requirements may discourage broker-dealers from effecting transactions in GlobeTracs securities, which could severely limit their market price and liquidity of GlobeTracs securities.



Item 6.

Managements Discussion and Analysis or Plan of Operation.



Overview



THE FOLLOWING MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A) IS INTENDED TO HELP THE READER UNDERSTAND GLOBETRAC INC., OUR OPERATIONS AND OUR PRESENT BUSINESS ENVIRONMENT.  THE MD&A IS PROVIDED AS A SUPPLEMENT TO AND SHOULD BE READ IN CONJUNCTION WITH OUR CONSOLIDATED FINANCIAL STATEMENTS AND THE ACCOMPANYING NOTES THERETO APPEARING ELSEWHERE HEREIN.



Our Business



At December 31, 2006, our only source of income is a six percent commission/royalty that  we receive from WebTech Wireless Inc. (WebTech), based on all qualified sales of any product or service offered by WebTech.  A qualified sale means all of WebTechs invoiced sales of products or services to a customer that has ordered at least one product or service before November 26, 2005, whether sold by WebTech or by a licensee, affiliate or agent of WebTech. A customer is a list of customers that was provided to WebTech by GlobeTrac. There is no cap on the royalty receivable and royalties are to be paid by WebTech for 11 years, beginning November 1, 2004 and ending October 31, 2015.



Due to limited operations, we are presently seeking new business opportunities.



We have accumulated a deficit of approximately $4.3 million to date and will require additional financing to continue operations and to seek out new business opportunities.  We plan to mitigate our losses in future years through receipt of royalty payments from Webtech and locating a viable business.





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 11





---

There is no assurance that we will be able to obtain additional financing, be successful in seeking new business opportunities, receive any royalties from WebTech or that we will be able to reduce operating expenses. Our consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.



On March 20, 2007, Globetrac Limited was dissolved.  Subsequent to December 31, 2006, Globetrac Limiteds assets and liabilities were assumed by GlobeTrac Inc.



Critical Accounting Policies and Estimates



An appreciation of our critical accounting policies is necessary to understand our financial results.  These policies may require management to make difficult and subjective judgments regarding uncertainties, and as a result, such estimates may significantly impact our consolidated financial results.  The precision of these estimates and the likelihood of future changes depend on a number of underlying variables and a range of possible outcomes.  Other than our accounting for our royalty revenue and allowance for doubtful accounts, our critical accounting policies do not involve the choice between alternative methods of accounting.  We have applied our critical accounting policies and estimation methods consistently.



Accounts Receivable



Receivables represent valid claims against debtors for royalties arising on or before the balance sheet date and are reduced to their estimated net realizable value.  An allowance for doubtful accounts is based on an assessment of the collectibility of all past due accounts.



At December 31, 2006, accounts receivable consists of estimated royalty revenue for the months of November and December 2006.  Our estimate was based on a verbal estimate we received from WebTech which amount is consistent with the amounts we received from WebTech in the prior months of 2006.  As of the date of filing we had not received payment of the accrued royalty revenue and thus the actual amount received could vary materially from the amount that we may receive.





Revenue Recognition



We recognize our royalty revenue when pervasive evidence of an agreement exists, when it was received and accrue for royalty revenues that we believe to be reasonably collectable.



Operations Review



During the year ended December 31, 2006, we had a net loss of $185,754.  As of December 31, 2006, we had a cash balance of $44,175 and accounts receivable of $45,676.  When these current assets are offset against our current obligations of $159,383 in accounts payable and accrued liabilities, $1,880,727 in convertible notes payable on demand, $16,385 in advances payable, $634,961 in amounts due to related parties and a $500,000 note payable to a related party, we are left with a working capital deficit of $3,101,605.



We believe that our cash as of the date of this filing is not sufficient to satisfy our working capital needs for the next year.



Over the next twelve months we plan to seek new business opportunities and collect royalty payments from WebTech.



We anticipate funding our working capital needs for the next twelve months through the royalty payments from WebTech, the equity capital markets, private advances, and loans. Although the foregoing actions are expected to cover our anticipated cash needs for working capital and capital expenditures for at least the next twelve months, no assurance can be given that we will be able to collect any royalty payments or raise sufficient cash to meet our cash requirements.



We plan to cover operating costs until such time as a new business opportunity is located, by receiving royalty payments from WebTech, raising additional capital through the private placement of shares, private advances and loans.



We are not currently conducting any research and development activities. We do not anticipate conducting such activities in the near future. If we enter into a new business opportunity, we may be required to hire additional employees, independent contractors as well as purchase or lease additional equipment.





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 12





---

We anticipate continuing to rely on equity sales of common shares or the issuance of convertible debt to fund our operations and to seek out or enter into new business opportunities.  The issuance of any additional shares will result in dilution to existing shareholders of the Company.



Related-Party Transactions



Included in the $634,961 that is due to related parties at December 31, 2006, is $395,886 in professional, consulting, administrative and management fees that were accrued during 2005 and 2004, $34,280 in advances and $204,795 in accrued interest on the $500,000 note payable to a related party.  The $500,000 note payable to a related party bears interest at 10%, is unsecured and was payable November 27, 2004.  Even though time for payment has passed, no demand has been made for payment of the $500,000 note.  We do not anticipate paying the $500,000 note unless we achieve profitable operations, raise sufficient working capital, or issue shares for debt to cover this obligation.  None of the other amounts due to related parties bear interest, have any fixed terms of repayment, or are secured.



COMPARISON OF THE YEARS ENDED DECEMBER 31, 2006 AND 2005



Overall Results of Operations



For the year ended December 31, 2006, we had a net loss of $185,754 or a $(0.01) net loss per share, which was an increase of $24,729 in net loss from our net loss of $161,025 or a $(0.01) net loss per share for the year ended December 31, 2005.  The increase in net loss for the year ended December 31, 2006 as compared to the year ended December 31, 2005 was primarily due to an increase in our professional fees.  If we are not successful in acquiring a viable business during 2007, we expect our net loss to remain much the same as in 2006 or at approximately $200,000.



Revenues



Our revenue increased by $10,541 or 9% from $124,133 for the year ended December 31, 2005 to $134,674 for the year ended December 31, 2006. All of the revenue was the result of a 6% royalty which relates to the Termination and Transfer Agreement that was signed on October 18, 2005.  Revenue increased in 2006 due to higher sales to GlobeTrac customers by WebTech .  We expect our royalty income to remain the same at approximately $125,000 during 2007.  We do not expect revenue to increase, unless we locate a new revenue generating business opportunity.



Operating Expenses



Our operating expenses increased by $39,587 or 46% from $86,467 for the year ended December 31, 2005 to $126,054 for the year ended December 31, 2006. The increase in operating expenses for the year ended December 31, 2006 as compared to the year ended December 31, 2005 was primarily due to an increase in professional fees of approximately $59,000.  Our professional fees increased due to increases in regulatory compliance costs in the areas of accounting and audit fees, legal fees and administrative fees.  During the year our marketing expenses decreased by approximately $11,000 because we do not have any products to market.   We expect our operating costs to remain the same or at approximately $130,000, unless we locate a new viable business.



Interest Expense



Our interest expense decreased by $358 or 0% from $148,102 at December 31, 2005 to $147,744 at December 31, 2006.  We expect interest expense to remain the same during 2007 unless some of the convertible notes are converted into common shares of the Company.



Loss from Discontinued Operations



On March 20, 2007, Globetrac Limited (Limited) was officially discontinued and wound up.  At December 31, 2006 and 2005, in connection with the wind up, the Company recorded net losses from discontinued operations of $45,830 and $49,789 respectively.  The net losses in 2006 were primarily due to interest on the notes payable of approximately $40,000 and office expenses of $6,500 and the net losses in 2005 were primarily due to interest on the notes payable of approximately $42,000 and professional fees of $6,500.  As a result of the discontinuance the Company assumed all of Limiteds assets and liabilities.  Limited was inactive at the date of dissolution.





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 13





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Liquidity, Capital Resources and Financial Position



As of December 31, 2006, we had a cash balance of $44,175 and positive cash flows from operations of $675 for the year then ended.  During the year ended December 31, 2006, we funded our operations through royalty revenue we received from WebTech of $112,394.



The notes to our consolidated financial statements as of December 31, 2006, contain footnote disclosure regarding our uncertain ability to continue as a going concern.  We have not generated sufficient revenues to cover our expenses, and we have an accumulated deficit of $4,310,003.  As of December 31, 2006, we had $3,191,456 in current liabilities, when this is offset against our current assets of $89,851 we are left with a working capital deficit of $3,101,605 and as such we cannot assure that we will succeed in locating a viable business opportunity or achieving a profitable level of operations sufficient to meet our ongoing cash needs.  We have, however, successfully generated sufficient working capital and liquidity through royalty revenues and advances of cash until the date of this filing, and believe that we can continue to do so for the next twelve months.



Below is a discussion of our sources and uses of funds for the year ended December 31, 2006.



Net Cash Used In Operating Activities



Net cash provided by operating activities during the year ended December 31, 2006 was $675, this cash was primarily provided by an increase in accounts payable and accrued liabilities of $24,134, and an increase in accrued interest of $187,560 offset by a net loss of $185,754, an increase in accounts receivable of $16,851 and a decrease in advances from a related party of $8,414.



Net Cash Provided By Financing Activities



We did not have any financing activities during the year ended December 31, 2006.



Net Cash Used In Investing Activities



We did not have any investing activities during the year ended December 31, 2006.



Off-Balance-Sheet Arrangements



We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our consolidated financial condition, changes in consolidated financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.  We do not have any non-consolidated, special-purpose entities.



Contingencies and Commitments



We had no contingencies or long-term commitments at December 31, 2006.



Contractual Obligations



The following table provides a summary of our debt obligation as of December 31, 2006.  We have not included repayment of our convertible notes payable because these notes are repayable on demand and we do not know when or if payment will be demanded.



|                                                  |                                  
|------------------------------------------------- | ---------------------------------
|                                                  | Contractual Payment Due by Period
|                                                  | 2007                             
|                                                  |                                  
|Note Payable to Related Party                     | $ 500,000                        
|Accrued Interest on Note Payable to Related Party | 204,795                          
|                                                  |                                  
|Total Contractual Obligations                     | $704,795                         
|                                                  |                                  





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 14





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Internal and External Sources of Liquidity



We have funded our operations principally from royalty revenue and advances from related and other parties.



Inflation



We do not believe that inflation will have a material impact on our future operations.



Uncertainties relating to Forward Looking Statements



This Form 10-KSB Annual Report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by their use of words like plan, expect, aim, believe, project, anticipate, intend, estimate, will, should, could and other expressions that indicate future events and trends. All statements that address expectations or projections about the future, including statements about our royalty revenue, about locating a viable business, about expenditures and about financial results are forward-looking statements.



All forward-looking statements are made as of the date of filing of this Form 10-KSB and we disclaim any duty to update such statements.



Certain parts of this Form 10-KSB may contain forward-looking statements within the meaning of the Securities Exchange Act of 1934 based on current managements expectations. Actual results could differ materially from those in the forward looking statements due to a number of uncertainties including, but not limited to, those discussed in this section. Factors that could cause future results to differ from these expectations include general economic conditions, particularly related to our royalty revenue; changes in business direction including locating or acquiring a viable business.  As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives requires the exercise of judgment. To the extent that the assumed events do not occur, our outcome may vary substantially from our anticipated or projected results, and accordingly, we express no opinion on the achievability of those forward-looking statements and give no assurance that any of the assumptions relating to the forward-looking statements are accurate.



We may, from time to time, make oral forward-looking statements. We strongly advise you to read the foregoing paragraphs and the risk factors described in this annual report and in our other documents filed with the United States Securities and Exchange Commission for a description of certain factors that could cause our actual results to differ materially from those in the oral forward-looking statements. We disclaim any intention or obligation to update or revise any oral or written forward-looking statements whether as a result of new information, future events or otherwise.



Item 7.

Financial Statements



See audited financial statements for the period ended December 31, 2006 and 2005 attached as Exhibit A to this Form 10-KSB.



Item 8.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.



There are no changes in and disagreements with GlobeTracs accountants on accounting and financial disclosure.  GlobeTracs principal independent registered public accounting firm since February 21, 2006 to the current date is Mendoza Berger & Company, L.L.P., 9838 Research Drive, Irvine California, 92618.



Effective February 21, 2006, GlobeTracs board of directors approved a change in GlobeTracs independent auditors.  None of the reports of Hall & Company, Certified Public Accountants Inc. on the financial statements of GlobeTracs for the fiscal years ended December 31,  2004 and 2003 contained any adverse opinion or disclaimer of opinion, but did contain an uncertainty as to the Companys ability to continue as a going concern.  Although audited statements prepared by Hall & Company, Certified Public Accountants Inc. contained a going concern qualification, such financial statements did not contain any adjustments for uncertainties stated therein, nor have there been at any time, disagreements between GlobeTrac and Hall & Company, Certified Public Accountants Inc. on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure.





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 15





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GlobeTrac retained the accounting firm of Mendoza Berger & Company, L.L.P., to serve as its independent registered public accounting firm to audit its financial statements beginning with the year ended December 31, 2005.  This engagement became effective February 21, 2006.  Prior to its engagement as GlobeTracs independent auditors, Mendoza Berger & Company, L.L.P., had not been consulted by GlobeTrac either with respect to the application of accounting principles to a specific transaction or the type of audit opinion that might be rendered on GlobeTracs financial statements or on any other matter that was the subject of any prior disagreement between GlobeTrac and its previous certifying accountants.



GlobeTrac elected to remain with its current audit engagement partner, who changed independent registered public accounting firms.  Management is pleased with the audit engagement partners past services and thinks the audit engagement partners familiarity with GlobeTracs activities from inception merited the transition to the new firm.



Item 8A.    Controls and Procedures.



Disclosure Controls and Procedures



John daCosta, GlobeTracs Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of GlobeTracs disclosure controls and procedures (as such term is defined in Rules 13a-15 and 15d-15 under the Securities Exchange Act of 1934 (the Exchange Act)) as of the end of the period covered by this annual report (the Evaluation Date).  Based on such evaluation, Mr. daCosta has concluded that, as of the Evaluation Date, GlobeTracs disclosure controls and procedures are effective in alerting GlobeTrac on a timely basis to material information required to be included in its reports filed or submitted under the Exchange Act.



Changes in Internal Controls



During the quarter of the fiscal year covered by this report, there were no changes in GlobeTracs internal controls or, to GlobeTracs knowledge, in other factors that have materially affected, or are reasonably likely to materially affect, these controls and procedures subsequent to the date GlobeTrac carried out this evaluation.



Item 8B.  Other Information



During the fourth quarter of the fiscal year covered by this Form 10-KSB, GlobeTrac reported all information that was required to be disclosed in a report on Form 8-K.



PART III



Item 9.

Directors, Executive Officers, Promoters, Control Persons and Corporate Governance; Compliance with Section 16(a) of the Exchange Act.



(a)

Identify Directors and Executive Officers



Each director of GlobeTrac or its subsidiaries holds office until (i) the next annual meeting of the stockholders, (ii) his successor has been elected and qualified, or (iii) the director resigns.





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 16





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GlobeTracs and its subsidiaries management teams are listed below.



|                 |                                                                                             |                               |                                                                   | 
|---------------- | ------------------------------------------------------------------------------------------- | ----------------------------- | ----------------------------------------------------------------- | 
|Management Teams |                                                                                            
|                 | Companies                                                                                  
|Officers Name   | GlobeTrac Inc.                                                                              | Global Axxess (1)             | Globetrac Limited                                                
|David Patriquin  | Director                                                                                    | n/a                           | n/a                                                              
|                 |                                                                                             |                               |                                                                  
|John daCosta     | Chief Executive Officer, President, Chief Financial Officer,
Treasurer, Corporate Secretary | Director                      | Director, Chief Financial Officer,
Treasurer, Corporate Secretary
|                 |                                                                                             |                               |                                                                  
|Jim Pratt        | N/A                                                                                         | Director, Corporate Secretary | Director, Chief Executive Officer, President                     

(1)The corporate laws governing this company do not require the appointment of officers, with the exception of a corporate secretary.  The residency requirement of the corporate law of  Ireland requires that a resident of Ireland be appointed the corporate secretary. Since the resignation of Mr. Duncan in 2005 Global Axxess does not have a resident of Ireland on its board. Directors perform all management duties of this company.



David Patriquin ●  Mr. Patriquin (64)has been a director of GlobeTrac since November 2002.  Mr. Patriquin is a businessman who operates several private businesses, including a private mortgage business, a restaurant and lounge for the past 24 years and a real estate investment company for the past 29 years.



John daCosta ●  Mr. daCosta (42)has been the CFO and Corporate Secretary of GlobeTrac since May 2002 and the CEO and President of GlobeTrac since February 2006.  Mr. daCosta has been a director of Global Axxess since August 2002.  Mr. daCosta has been a director of Globetrac Limited since August 27, 2002 and the corporate secretary since February 25, 2003.  In the past five years, Mr. daCosta has worked with numerous public and private companies in providing accounting and management services.



Jim Pratt● Mr. Pratt (58)Mr. Pratt has been a director of Global Axxess since August 2002. Mr. Pratt has been a director, President/CEO of Globetrac Limited since August 27, 2002 and President/CEO of Globetrac Inc from August 27, 2002 to February 1, 2006. Mr. Pratt is the former Chairman of the globally renowned, GSM Association, former CEO of Peoples Phone in Hong Kong and a Managing Director with Telstra. Mr. Pratt has more than thirty years international management experience in the Asia-Pacific telecommunications industry.  Former Board positions Chairman GSM Association  London, Chairman Mobitel  Sri Lanka (Telstra J V), Director Brek Energy Corporation, Director Telstra Holdings (Bermuda) No. 2 Ltd. Current board positions: Director eServ Global  Sydney (ASX/AIM).



(b)

Identify Significant Employees



GlobeTrac does not have any significant employees.



(c)

Family Relationships



There are no family relationships among the directors, executive officers or persons nominated or chosen by GlobeTrac to become directors or executive officers.



(d)

Involvement in Certain Legal Proceedings



(1)

No bankruptcy petition has been filed by or against any business of which any director was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.



(2)

No director has been convicted in a criminal proceeding and is not subject to a pending criminal proceeding (excluding traffic violations and other minor offences).





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|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 17





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(3)

No director has been subject to any order, judgement, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities.



(4)

No director has been found by a court of competent jurisdiction (in a civil action), the Securities Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, that has not been reversed, suspended, or vacated.



(e)

Compliance with Section 16(a) of the Exchange Act.



All reports were filed with the SEC on a timely basis and GlobeTrac is not aware of any failures to file a required report during the period covered by this annual report, with the exception of the following.  Gregory Pek failed to file a Form 5 (Annual Statement of Beneficial Ownership).  The other affiliates, in lieu of filing a Form 5, provided GlobeTrac with a written representation that a Form 5 was not required.



(f)

Nomination Procedure for Directors



GlobeTrac does not have a standing nominating committee; recommendations for candidates to stand for election as directors are made by the board of directors.  GlobeTrac has not adopted a policy that permits share holders to recommend nominees for election as directors or a process for shareholders to send communications to the board of directors.  However, pursuant to Section 3 of Article III of GlobeTracs By-laws, shareholders are able to provide GlobeTrac with information for nominees for directors subject to the conditions provided in Section 3 of Article III of GlobeTracs By-laws.



(g)

Audit Committee Financial Expert



GlobeTrac has no financial expert.  Management believes the cost related to retaining a financial expert at this time is prohibitive.



(h)

Identification of Audit Committee



GlobeTrac does not have a separately-designated standing audit committee.  Rather, GlobeTracs entire board of directors perform the required functions of an audit committee.  Currently, David Patriquin is the only member of GlobeTracs audit committee.  Mr. Patriquin meets GlobeTracs independent requirements for an audit committee member.  See Item 12. (c)  Director independence below for more information on independence.



GlobeTracs audit committee is responsible for: (1) selection and oversight of GlobeTracs independent accountant; (2) establishing procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls and auditing matters; (3) establishing procedures for the confidential, anonymous submission by GlobeTracs employees of concerns regarding accounting and auditing matters; (4) engaging outside advisors; and, (5) funding for the outside auditory and any outside advisors engagement by the audit committee.



As of December 31, 2006, GlobeTrac did not have a written audit committee charter or similar document.



(i)

Code of Ethics



GlobeTrac has adopted a code of ethics that applies to all its executive officers and employees, including its CEO and CFO.  A copy of GlobeTracs adopted code of ethics is attached to this annual report.  See Exhibit 14  Code of Ethics for more information.  GlobeTrac undertakes to provide any person with a copy of its code of ethics free of charge.  Please contact Rene Daignault at 604-648-0527 to request a copy of GlobeTracs code of ethics.  Management believes GlobeTracs code of ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of code violations; and provide accountability for adherence to the code.





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|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 18





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Item 10.  Executive Compensation.



GlobeTrac has paid $69,250 in compensation to its named executive officers during its 2006 fiscal year.



SUMMARY COMPENSATION TABLE



|                                                             |                |                    |                  |                         |                          |                                     |                                                            |                                   |                      
|------------------------------------------------------------ | -------------- | ------------------ | ---------------- | ----------------------- | ------------------------ | ----------------------------------- | ---------------------------------------------------------- | --------------------------------- | ---------------------
|Name and principal position




(a)                          | Year




(b)   | Salary


($)

(c)  | Bonus


($)

(d) | Stock Awards


($)

(e) | Option Awards


($)

(f) | Non-Equity Incentive Plan

($)

(g) | Non-
qualified 
Deferred 
Compensation 
Earnings 
($)

(h) | All other 
compensation

($)

(i) | Total


($)

(j)     
|John daCosta
CEO (1)
Feb 2006 - present
CFO
May 2002Present | 2004
2005
2006 | 30,000
nil
nil     | nil
nil
nil      | nil
nil
nil             | nil
nil
nil              | nil
nil
nil                         | nil
nil
nil                                                | 200,000 (2)
16,050 (2)
69,250(2)  | 230,000
16,050
69,250
|Jim Pratt
CEO
Sept 02 Feb 06                              | 2004
2005
2006 | 208,330(3)
nil
nil | nil
nil
nil      | nil
nil
nil             | nil
nil
nil              | nil
nil
nil                         | nil
nil
nil                                                | 20,693 (4)
nil
nil                | 229,023
nil
nil      
|Colin Albert
COO
June 03  Oct 04                          | 2004
2005
2006 | 136,717
nil
nil    | nil
nil
nil      | nil
nil
nil             | nil
nil
nil              | nil
nil
nil                         | nil
nil
nil                                                | 24,560 (5)
nil
nil                | 161,277
nil
nil      
|Lloyd Crook
CTO
July 03  Oct 04                           | 2004
2005
2006 | nil
nil
nil        | nil
nil
nil      | nil
nil
nil             | nil
nil
nil              | nil
nil
nil                         | nil
nil
nil                                                | 110,715(6)
nil
nil                | 110,715
nil
nil      



(1)  John daCosta was also the CEO of GlobeTrac from May 2002 to September 2002.

(2)  Paid or accrued to DaCosta Management Corp., which John daCosta is the sole director and shareholder, for professional, administrative and accounting services.

(3)  Jim Pratt is owed $239,023 in back salary

(4)  Paid or accrued to Jim Pratt for house rent and car allowance.

(5)  Paid or accrued to Colin Albert for termination payments and in national insurance benefits.

(6)  Paid or accrued to FormFin, a company wholly owned by Lloyd Crook, for consulting fees, car allowance and national insurance benefits.



Since GlobeTracs inception, no stock options, stock appreciation rights, or long-term incentive plans have been granted, exercised or repriced.



Currently, there are no arrangements between GlobeTrac and any of its directors or between any of the subsidiaries and any of its directors whereby such directors are compensated for any services provided as directors.



There are no other employment agreements between GlobeTrac or the Subsidiary and any named executive officer, and there are no employment agreements or other compensating plans or arrangements with regard to any named executive officer which provide for specific compensation in the event of resignation, retirement, other termination of employment or from a change of control of GlobeTrac or from a change in a named executive officers responsibilities following a change in control.





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 19





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Item 11.  Security Ownership of Certain Beneficial Holders and Management.



(a)

Security Ownership of Certain Beneficial Owners (more than 5%)



|                   |                                                                       |                                              |                        
|------------------ | --------------------------------------------------------------------- | -------------------------------------------- | -----------------------
|(1)
Title of Class | (2)
Name and Address of Beneficial Owner                              | (3)
Amount and Nature of
Beneficial Owner[1] | (4)
Percent
of Class[2]
|Common Stock       | Jim Pratt
32 Greenwich Road, Greenwich
Sydney, NSW   2065   Australia | 3,500,000                                    | 15.8%                  
|Common Stock       | Gregory M. Pek
19/F, 80 Gloucester Road
Wanchai, Hong Kong            | 4,000,000                                    | 18.1%                  

[1]The listed beneficial owner has no right to acquire any shares within 60 days of the date of this Form 10-KSB from options, warrants, rights, conversion privileges or similar obligations excepted as otherwise noted.

[2]Based on 22,190,000 shares of Common Stock issued and outstanding as of April 2, 2007.

(b)

Security Ownership of Management



|                   |                                                                       |                                           |                        
|------------------ | --------------------------------------------------------------------- | ----------------------------------------- | -----------------------
|(1)
Title of Class | (2)
Name and Address of Beneficial Owner                              | (3)
Amount and Nature of Beneficial Owner | (4)
Percent
of Class[1]
|Common Stock       | David Patriquin
3438 Shuswap Road
Kamloops, BC   V2H 1T2              | 1,015,000 [2]                             | 4.6%                   
|Common Stock       | John daCosta
600 - 1100 Melville Street
Vancouver, BC   V6E 4A6       | 0                                         | 0%                     
|Common Stock       | Jim Pratt
32 Greenwich Road, Greenwich
Sydney, NSW   2065   Australia | 3,500,000                                 | 15.8%                  
|Common Stock       | Directors and Executive Officers (as a group)                         | 4,515,000                                 | 20.4%                  

[1]Based on 22,190,000 shares of Common Stock issued and outstanding as of April 2, 2007.

[2]This number includes 320,000 shares that are beneficially owned indirectly and 500,000 shares that may be acquired as part of a call option.



(c)

Changes in Control



GlobeTrac is not aware of any arrangement that may result in a change in control of GlobeTrac.



Item 12.  Certain Relationships and Related Transactions, and Director Independence.



(a)

Transactions with Related Persons



Since the beginning of GlobeTracs last fiscal year, no director, executive officer, security holder, or any immediate family of such director, executive officer, or security holder has had any direct or indirect material interest in any transaction or currently proposed transaction, which GlobeTrac was or is to be a participant, that exceeded the lesser of (1) $120,000 or (2) one percent of the average of GlobeTracs total assets at year-end for the last three completed fiscal years, except for the following:



-

DaCosta Management Corp. a company controlled by the sole officer of GlobeTrac billed $69,250 in professional fees.  At December 31, 2006, the Company owed DaCosta Management $156,796.

-

$50,000 in interest was accrued during the year on the $500,000 note payable to David Patriquin.  All of this interest remained payable to David Patriquin at December 31, 2006.





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 20





---

(b)

Promoters and control persons



During the past five fiscal years, John daCosta and Jim Pratt have been promoters of GlobeTracs business, but neither of these promoters have received anything of value from GlobeTrac or its subsidiaries nor is any person entitled to receive anything of value from GlobeTrac or its subsidiaries for services provided as a promoter of the business of GlobeTrac and its subsidiaries.



(c)

Director independence



GlobaTracs sole director currently is David Patriquin.  Pursuant to Item 407(a)(1)(ii) of Regulation S-B of the Securities Act, GlobeTracs board of directors has adopted the definition of independent director as set forth in Rule 4200(a)(15) of the NASDAQ Manual.  In summary, an independent director means a person other than an executive officer or employee of GlobeTrac or its subsidiaries or any other individual having a relationship which, in the opinion of GlobeTracs board of directors, would interfere with the exercise of independent judgement in carrying out the responsibilities of a director, and includes any director who accepted any compensation from GlobeTrac in excess of $200,000 during any period of 12 consecutive months with the three past fiscal years.  Also, the ownership of GlobeTracs stock will not preclude a director from being independent.



In applying this definition, GlobeTracs board of directors has determined that Mr. Patriquin does qualify as an independent director pursuant to Rule 4200(a)(15) of the NASDAQ Manual



As of the date of the report, GlobeTrac did not maintain a separately designated compensation or nominating committee.

GlobeTrac has also adopted this definition for the independence of the members of its audit committee.  David Patriquin serves on GlobeTracs audit committee.  GlobeTracs board of directors has determined that Mr. Patriquin is independent for purposes of Rule 4200(a)(15) of the NASDAQ Manual, applicable to audit, compensation and nominating committee members, and is independent for purposes of Section 10A(m)(3) of the Securities Exchange Act.



Item 13.  Exhibits.



(a)

Index to and Description of Exhibits.



|          |                                                                                                                                                                                                                                                                                                 |         
|--------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------
|Exhibit   | Description                                                                                                                                                                                                                                                                                     | Status  
|Exhibit A | Audited Consolidated Financial Statements for the period ended December 31, 2006.                                                                                                                                                                                                               | Included
|3.1       | Articles of Incorporation filed as an Exhibit to GlobeTracs registration statement on Form SB-2 filed on August 2, 2001, and incorporated herein by reference.                                                                                                                                 | Filed   
|3.2       | Bylaws filed as an Exhibit to GlobeTracs registration statement on Form SB-2 filed on August 2, 2001, and incorporated herein by reference.                                                                                                                                                    | Filed   
|3.3       | Certificate of Amendment to Articles of Incorporation changing the Issuers name to GlobeTrac Inc. filed as an exhibit to GlobeTracs Form 10-KSB filed on April 15, 2003, and incorporated herein by reference.                                                                                | Filed   
|3.4       | Notification of Dissolution for Globetrac Limited dated March 14, 2007                                                                                                                                                                                                                          | Included
|10.1      | Master Distributorship Agreement dated June 19, 2002 among WebTech Wireless International, WebTech Wireless Inc. and Global Axxess Corporation Limited filed as an attached exhibit to GlobeTracs Form 8-K (Current Report) filed on September 11, 2002, and incorporated herein by reference. | Filed   
|10.2      | Loan Agreement dated November 27, 2002 between GlobeTrac Inc. and David Patriquin with attached promissory note dated November 27, 2002, filed as an exhibit to GlobeTracs Form 10-KSB filed on April 15, 2003, and incorporated herein by reference.                                          | Filed   



|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 21





---



|        |                                                                                                                                                                                                                                                                                                         |         
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------
|Exhibit | Description                                                                                                                                                                                                                                                                                             | Status  
|10.3    | Amendment Letter Agreement dated June 4, 2003, between WebTech Wireless International Inc. and Globetrac Limited for the purpose of amending terms of the Master Distributorship Agreement filed as an exhibit to GlobeTracs Form 10-KSB filed on April 7, 2004, and incorporated herein by reference. | Filed   
|10.4    | Amendment Letter Agreement dated March 8, 2004 between WebTech Wireless International Inc. and Globetrac Limited for the purpose of amending terms of the Master Distributorship Agreement filed as an exhibit to GlobeTracs Form 10-KSB filed on April 7, 2004, and incorporated herein by reference. | Filed   
|10.5    | Letter Agreement dated November 26, 2004, among Global Axxess Corporation Limited, WebTech Wireless International and WebTech Wireless Inc. filed as an exhibit to GlobeTracs Form 8-K filed on December 22, 2004, and incorporated herein by reference.                                               | Filed   
|10.6    | Termination and Transfer Agreement dated for reference November 1, 2004, among Global Axxess Corporation Limited, WebTech Wireless International and WebTech Wireless Inc. filed as an exhibit to GlobeTracs Form 8-K filed on November 14, 2005, and incorporated herein by reference.                | Filed   
|14      | Code of Ethics filed as an exhibit to GlobeTracs Form 10-KSB filed on April 15, 2003, and incorporated herein by reference.                                                                                                                                                                            | Filed   
|31      | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                               | Included
|32      | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                 | Included





Item 14.   Principal Accounting Fees and Services

(1)   Audit Fees

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for GlobeTracs audit of consolidated annual financial statements and for review of financial statements included in GlobeTracs Form 10-QSBs or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years was:



2006 - $32,126  Mendoza Berger & Company, L.L.P

2005 - $8,000  Mendoza Berger & Company, L.L.P



2006 - $1,461  Hall & Company, Certified Public Accountants Inc.

2005 - $14,896 Hall & Company, Certified Public Accountants Inc.



(2)   Audit-Related Fees



The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountants that are reasonably related to the performance of the audit or review of GlobeTracs consolidated financial statements and are not reported in the preceding paragraph:



2006 - $0  Mendoza Berger & Company, L.L.P

2005 - $0  Mendoza Berger & Company, L.L.P



2006 - $0  Hall & Company, Certified Public Accountants Inc.

2005 - $0  Hall & Company, Certified Public Accountants Inc.



|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 22





---

(3)   Tax Fees



The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning was:



2006 - $2,300  Mendoza Berger & Company, L.L.P

2005 - $2,000  Mendoza Berger & Company, L.L.P



2006 - $0  Hall & Company, Certified Public Accountants Inc.

2005 - $0  Hall & Company, Certified Public Accountants Inc.

(4)   All Other Fees



The aggregate fees billed in each of the last two fiscal years for the products and services provided by the principal accountant, other than the services reported in paragraphs (1), (2), and (3) was:



2006 - $0  Mendoza Berger & Company, L.L.P

2005 - $0  Mendoza Berger & Company, L.L.P



2006 - $0  Hall & Company, Certified Public Accountants Inc.

2005 - $0  Hall & Company, Certified Public Accountants Inc.

(6)   The percentage of hours expended on the principal accountants engagement to audit GlobeTracs consolidated financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountants full time, permanent employees was nil %.



|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 23





---





SIGNATURES



In accordance with the requirements of the Securities Exchange Act of 1934, GlobeTrac Inc. has caused this report to be signed on its behalf by the undersigned duly authorized person.



GLOBETRAC INC.





By:

Name:

John daCosta

Title:

CEO and CFO

Dated:

April, 2007







Pursuant to the requirements of the Securities Exchange Act of 1934, the following persons on behalf of GlobeTrac Inc. and in the capacities and on the dates indicated have signed this report below.



|                    |                                                                                             |             
|------------------- | ------------------------------------------------------------------------------------------- | ------------
|Signature           | Title                                                                                       | Date        
|/s/ David Patriquin | Member of the Board of Directors                                                            | April , 2007
|/s/ John daCosta    | President, Chief Executive Officer,
Chief Financial Officer,
Corporate Secretary, Treasurer | April , 2007





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 24





---



|          
|----------
|          
|Exhibit 31
|          







|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 25





---

GLOBETRAC INC. 
CERTIFICATIONS PURSUANT TO 
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, John daCosta, certify that:

1.   I have reviewed this annual report on Form 10-KSB of GlobeTrac Inc.;

2.  Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the consolidated financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4.  The small business issuers other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the small business issuers disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the small business issuers internal control over financial reporting that occurred during the small business issuers most recent fiscal quarter (the small business issuers fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuers internal control over financial reporting; and

5.  The small business issuers other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuers auditors and the audit committee of the small business issuers board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuers ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuers internal control over financial reporting.

Date:  April  , 2007

John daCosta 
Chief Executive Officer





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 26





---

GLOBETRAC INC. 
CERTIFICATIONS PURSUANT TO 
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

CERTIFICATION

I, John daCosta, certify that:

1.   I have reviewed this annual report on Form 10-KSB of GlobeTrac Inc.;

2.  Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4.  The small business issuers other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the small business issuers disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the small business issuers internal control over financial reporting that occurred during the small business issuers most recent fiscal quarter (the small business issuers fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuers internal control over financial reporting; and

5.  The small business issuers other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuers auditors and the audit committee of the small business issuers board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuers ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuers internal control over financial reporting.

Date:  April , 2007

John daCosta 
Chief Financial Officer





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 27





---



|          
|----------
|          
|Exhibit 32
|          





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 28





---

CERTIFICATION PURSUANT TO 
18 U.S.C. SECTION 1350, 
AS ADOPTED PURSUANT TO 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In connection with the Annual Report of GlobeTrac Inc. (the Company) on Form 10-KSB for the period ending December 31, 2006 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, John daCosta, President and Chief Executive Officer of the Company, certify, pursuant to s.906 of the Sarbanes-Oxley Act of 2002, that:

(1)   The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)   The information contained in the Report fairly represents, the consolidated financial condition and result of operations of the Company.





John daCosta 
Chief Executive Officer 
April , 2007



|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 29





---

CERTIFICATION PURSUANT TO 
18 U.S.C. SECTION 1350, 
AS ADOPTED PURSUANT TO 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In connection with the Annual Report of GlobeTrac Inc. (the Company) on Form 10-KSB for the period ending December 31, 2006 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, John daCosta, Secretary, Treasurer, and Chief Financial Officer of the Company and a member of the Board of Directors, certify, pursuant to s.906 of the Sarbanes-Oxley Act of 2002, that:

(1)   The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)   The information contained in the Report fairly represents, the financial condition and result of operations of the Company.





John daCosta 
Chief Financial Officer 
April , 2007



|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 30





---



|         
|---------
|         
|Exhibit A
|         







|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 31





---

GLOBETRAC INC.



CONSOLIDATED FINANCIAL STATEMENTS



AS AT DECEMBER 31, 2006 and 2005

AND FOR THE YEARS ENDED DECEMBER 31, 2006 and 2005

















REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



CONSOLIDATED BALANCE SHEETS



CONSOLIDATED STATEMENTS OF OPERATIONS



CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS DEFICIT AND COMPREHENSIVE LOSS



CONSOLIDATED STATEMENTS OF CASH FLOWS



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS







|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 32





---





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Board of Directors and Stockholders

GlobeTrac Inc.



We have audited the accompanying consolidated balance sheets of GlobeTrac Inc., as of December 31, 2006 and 2005 and the related consolidated statements of operations, changes in stockholders deficit and comprehensive loss and cash flows for the years then ended. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits.



We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.



In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of GlobeTrac Inc. as of December 31, 2006 and 2005 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.



The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the consolidated financial statements, the Company has suffered recurring losses from operations and a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 3. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.



Mendoza Berger & Company, LLP



/s/ Mendoza Berger & Company, LLP



Irvine, California

March 23, 2007





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 33





---



| |                                       |                                                                                        |                       |                      
| | ------------------------------------- | -------------------------------------------------------------------------------------- | --------------------- | ---------------------
| | GLOBETRAC INC.                       
| | CONSOLIDATED BALANCE SHEETS          
| | DECEMBER 31, 2006 AND 2005           
| |                                       |                                                                                        |                       |                      
| |                                       |                                                                                        | 2006                  | 2005                 
| |                                       |                                                                                        |                       |                      
| | ASSETS                               
| |                                       |                                                                                        |                       |                      
| | Current assets                        |                                                                                        |                      
| |                                       |                                                                                        |                       |                      
| |                                       | Cash                                                                                   | $             44,175  | $             51,756 
| |                                       | Accounts receivable                                                                    |                       |                      
| |                                       | Net of allowance for doubtful accounts of $7,327 and $999                              | 45,676                | 28,825               
| |                                       |                                                                                        |                       |                      
| |                                       |                                                                                        |                       |                      
| |                                       | Total current assets                                                                   | $             89,851  | $             80,581 
| |                                       |                                                                                        |                       |                      
| | LIABILITIES AND STOCKHOLDERS' DEFICIT
| |                                       |                                                                                        |                       |                      
| | Current liabilities                   |                                                                                        |                      
| |                                       |                                                                                        |                       |                      
| |                                       | Accounts payable and accrued liabilities                                               | $            159,383  | $           115,616  
| |                                       | Convertible notes payable, including accrued interest                                  | 1,880,727             | 1,743,167            
| |                                       | Advances payable                                                                       | 16,385                | 16,385               
| |                                       | Due to related parties                                                                 | 634,961               | 613,008              
| |                                       | Note payable to related party                                                          | 500,000               | 500,000              
| |                                       |                                                                                        |                       |                      
| |                                       | Total current liabilities                                                              | 3,191,456             | 2,988,176            
| |                                       |                                                                                        |                       |                      
| | Commitments and contingencies         |                                                                                        |                      
| |                                       |                                                                                        |                       |                      
| | Stockholders deficit                  |                                                                                        |                      
| |                                       | Preferred stock $0.001 par value, 5,000,000 authorized, none issued and                |                       |                      
| |                                       | outstanding at December 31, 2006 and 2005                                              |                       |                      
| |                                       | Common stock $0.001 par value, 200,000,000 common shares authorized,                   |                      
| |                                       | 22,190,000 issued and outstanding at December 31, 2006 and 2005                        | 22,190                | 22,190               
| |                                       | Additional paid in capital                                                             | 1,167,085             | 1,167,085            
| |                                       | Accumulated deficit                                                                    | (4,310,003)           | (4,124,249)          
| |                                       | Accumulated other comprehensive income                                                 | 19,123                | 27,379               
| |                                       |                                                                                        |                       |                      
| |                                       | Total stockholders' deficit                                                            | (3,101,605)           | (2,907,595)          
| |                                       |                                                                                        |                       |                      
| |                                       | Total liabilities and stockholders' deficit                                            | $              89,851 | $              80,581
| |                                       |                                                                                        |                       |                      
| |                                       |                                                                                        |                       |                      
| |                                       | The accompanying notes are an integral part of these consolidated financial statements





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 34





---



|                                                                                       |                 |                 
|-------------------------------------------------------------------------------------- | --------------- | ----------------
|GLOBETRAC INC.                                                                        
|CONSOLIDATED STATEMENTS OF OPERATIONS                                                 
|FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005                                        
|                                                                                       |                 |                 
|                                                                                       |                 |                 
|                                                                                       | 2006            | 2005            
|                                                                                       |                 |                 
|Royalty income                                                                         | $    134,674    | $     124,133   
|                                                                                       |                 |                 
|Operating expenses:                                                                    |                 |                 
|General and administrative                                                             | 126,054         | 86,467          
|                                                                                       |                 |                 
|                                                                                       |                 |                 
|Income from operations                                                                 | 8,620           | 37,666          
|                                                                                       |                 |                 
|Other expenses:                                                                        |                 |                 
|Franchise tax                                                                          | 800             | 800             
|Interest expense                                                                       | 147,744         | 148,102         
|                                                                                       |                 |                 
|                                                                                       |                 |                 
|Total other expenses                                                                   | 148,544         | 148,902         
|                                                                                       |                 |                 
|                                                                                       |                 |                 
|Net loss from continuing operations before discontinued operations                     | (139,924)       | (111,236)       
|                                                                                       |                 |                 
|Loss from discontinued operations                                                      | (45,830)        | (49,789)        
|                                                                                       |                 |                 
|                                                                                       |                 |                 
|Net loss                                                                               | $   (185,754)   | $    (161,025)  
|                                                                                       |                 |                 
|                                                                                       |                 |                 
|                                                                                       |                 |                 
|Net loss per share - basic and diluted                                                 |                 |                 
|Continuing operations                                                                  | $        (0.01) | $         (0.01)
|Discontinued operations                                                                | $        (0.00) | $         (0.00)
|                                                                                       |                 |                 
|                                                                                       |                 |                 
|Weighted average number of shares outstanding - basic and diluted                      | 22,190,000      | 22,190,000      
|                                                                                       |                 |                 
|                                                                                       |                 |                 
|                                                                                       |                 |                 
|The accompanying notes are an integral part of these consolidated financial statements





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 35





---



|                                                                                       |                     |                |                 |                    |                     |                   |                    | 
|-------------------------------------------------------------------------------------- | ------------------- | -------------- | --------------- | ------------------ | ------------------- | ----------------- | ------------------ | 
|GLOBETRAC INC.                                                                        
|CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT AND COMPREHENSIVE LOSS     
|FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005                                        
|                                                                                       |                     |                |                 |                    |                     |                  
|                                                                                      
|                                                                                       | Common Stock Issued |                |                 |                   
|                                                                                       |                     |                |                 |                    | Accumulated         |                  
|                                                                                       |                     |                | Additional      |                    | Other               |                  
|                                                                                       | Number of           |                | Paid-in         | Accumulated        | Comprehensive       |                  
|                                                                                       | Shares              | Amount         | Capital         | Deficit            | Income              | Total            
|                                                                                       |                     |                |                 |                    |                     |                  
|Balance at January 1, 2005                                                             | 22,190,000          | $       22,190 | $     1,167,085 | $      (3,963,224) | $            19,830 |                   | $      (2,754,119)
|                                                                                       |                     |                |                 |                    |                     |                  
|Net loss                                                                               | -                   | -              | -               | (161,025)          | -                   | (161,025)        
|                                                                                       |                     |                |                 |                    |                     |                  
|Foreign currency exchange gain                                                         | -                   | -              | -               | -                  | 7,549               |                   | 7,549             
|                                                                                       |                     |                |                 |                    |                     |                  
|Comprehensive loss                                                                     | -                   | -              | -               | -                  | -                   | (153,476)        
|                                                                                       |                     |                |                 |                    |                     |                  
|Balance at December 31, 2005                                                           | 22,190,000          | 22,190         | 1,167,085       | (4,124,249)        | 27,379              |                   | (2,907,595)       
|                                                                                       |                     |                |                 |                    |                     |                  
|Net loss                                                                               | -                   | -              | -               | (185,754)          | -                   | (185,754)        
|                                                                                       |                     |                |                 |                    |                     |                  
|Foreign currency exchange (loss)                                                       | -                   | -              | -               | -                  | (8,256)             |                   | (8,256)           
|                                                                                       |                     |                |                 |                    |                     |                  
|Comprehensive loss                                                                     | -                   | -              | -               | -                  | -                   | (194,010)        
|                                                                                       |                     |                |                 |                    |                     |                  
|Balance at December 31, 2006                                                           | 22,190,000          | $       22,190 | $     1,167,085 | $      (4,310,003) | $            19,123 | $     (3,101,605)
|                                                                                       |                     |                |                 |                    |                     |                  
|                                                                                       |                     |                |                 |                    |                     |                  
|                                                                                       |                     |                |                 |                    |                     |                  
|The accompanying notes are an integral part of these consolidated financial statements





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 36





---



|                                                                                       |                           |                           
|-------------------------------------------------------------------------------------- | ------------------------- | --------------------------
|GLOBETRAC INC.                                                                        
|CONSOLIDATED STATEMENTS OF CASH FLOWS                                                 
|FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005                                        
|                                                                                       |                           |                           
|                                                                                       |                          
|                                                                                       | 2006                      | 2005                      
|                                                                                       |                           |                           
|Cash flows from operating activities:                                                  |                           |                           
|                                                                                       |                           |                           
|Net loss                                                                               | $         (185,754)       | $         (161,025)       
|                                                                                       |                           |                           
|Changes in operating assets and liabilities:                                           |                           |                           
|Accounts receivable                                                                    | (16,851)                  | 35,041                    
|Accounts payable and accrued liabilities                                               | 24,134                    | (26,706)                  
|Accrued interest payable to related party                                              | 50,000                    | 50,000                    
|Due to related parties                                                                 | (8,414)                   | (8,267)                   
|Accrued interest payable on convertible notes                                          | 137,560                   | 137,437                   
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|Net cash provided by operating activities                                              | 675                       | 26,480                    
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|Cash flows from financing activities:                                                  |                           |                           
|                                                                                       |                           |                           
|Advances payable                                                                       | -                         | 16,385                    
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|Net cash provided by financing acivities                                               | -                         | 16,385                    
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|Effects of foreign currency exchange                                                   | (8,256)                   | 7,549                     
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|Net (decrease) increase in cash                                                        | (7,581)                   | 50,414                    
|                                                                                       |                           |                           
|Cash, beginning of year                                                                | 51,756                    | 1,342                     
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|Cash, end of year                                                                      | $              44,175     | $               51,756    
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|Supplemental disclosure of non-cash investing and financing activities:                |                           |                           
|Cash paid during the period:                                                           |                           |                           
|                                                                                       |                           |                           
|Income taxes                                                                           | $                  800    | $                    800  
|                                                                                       |                           |                           
|Interest                                                                               | $                       - | $                        -
|                                                                                       |                           |                           
|Non-cash changes in operating assets and liabilities:                                  |                           |                           
|Amount due to former related party reclassified to accounts payable                    | $              19,633     | $                        -
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|                                                                                       |                           |                           
|The accompanying notes are an integral part of these consolidated financial statements







|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 37





---

GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005









NOTE 1  ORGANIZATION AND NATURE OF OPERATIONS



Nature of Operations



GlobeTrac Inc. (GlobeTrac or the Company) was incorporated in the state of Delaware on March 2, 2000 as 411 Place.com Inc.  On February 28, 2001, the Company changed its name to Artescope, Inc. and on July 29, 2002 changed its name to GlobeTrac Inc.  The Companys principal executive offices are headquartered in Canada.  On August 27, 2002 the Company acquired 100% of the shares of Global Axxess Corporation Limited (Global Axxess), a company incorporated in Ireland.  Global Axxess owns 100% of the issued and outstanding shares of Globetrac Limited (Limited), a company incorporated in the United Kingdom.



On May 6, 2002, all of the directors and officers of the Company resigned and a new director and officer was appointed. On August 27, 2002, all of the directors of Global Axxess, and its wholly owned subsidiary Globetrac Limited, resigned and two new directors were appointed.



The Company was in the business of selling, marketing, distributing and installing global wireless tracking and telematics equipment in Europe until November 1, 2004 when they exchanged certain of their assets and certain liabilities in Globetrac Limited and their rights to the global wireless tracking and telematics business in Europe for a six percent royalty on gross sales of all existing and qualified potential customers that the Company has in Europe.  As a result of terminating its operations in Europe, the Company is seeking new business opportunities. (Note 8)



NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Principles of Consolidation



The consolidated financial statements include the accounts of the Company and the consolidated accounts of its subsidiaries.  All significant intercompany balances and transactions have been eliminated.



Reclassifications



Certain prior year amounts in the accompanying consolidated financial statements have been reclassified to conform to the current years presentation.  These reclassifications had no effect on the consolidated results of operations or financial position for any period presented.



Accounting Estimates



The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.



Cash Equivalents



For purposes of the consolidated balance sheets and statements of cash flows, the Company considers all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents.  At December 31, 2006 and 2005, the Company had no cash equivalents.





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 38





---

GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005









NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)



Accounts Receivable



Receivables represent valid claims against debtors for royalties arising on or before the balance sheet date and are reduced to their estimated net realizable value.  An allowance for doubtful accounts is based on an assessment of the collectibility of all past due accounts.



Revenue Recognition



Royalty revenue is recognized when pervasive evidence of an agreement exists, when it is received or when the royalty income is determinable and collectability is reasonably assured.



Financial Instruments



Foreign Exchange Risk



The Company is subject to foreign exchange risk for sales and purchases denominated in foreign currencies.  Foreign currency risk arises from the fluctuation of foreign exchange rates and the degree of volatility of these rates relative to the United States dollar.  The Company does not believe that it has any material risk to its foreign currency exchange.



Fair Value of Financial Instruments



The Companys financial instruments, include cash, accounts receivable, accounts payable and accrued liabilities, advances payable and convertible notes payable and related accrued interest due on demand.  The fair value of these financial instruments approximate their carrying values due to their short maturities.



Concentration of Credit Risk



Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable.



The Company places its cash with various high quality financial institutions and, by policy, limits the amount of credit exposure with any one financial institution.  As part of its cash management process, the Company performs periodic evaluations of the relative credit standing of these financial institutions.



Accounts receivable consists of royalty income from one source and is not collateralized.  Management continually monitors the financial condition of its customers to reduce the risk of loss.  The Company routinely assesses the financial strength of its source of revenue income and as a consequence, concentration of credit risk is limited. At December 31, 2006 and 2005, the Company had $45,676 and $28,825 in royalties receivable from this source.







|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 39





---

GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005









NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)



Comprehensive Income (Loss)



Comprehensive income reflects changes in equity that results from transactions and economic events from non-owner sources.  The Company had $19,123 and $27,379 in other accumulated comprehensive income for the years ended December 31, 2006 and 2005, respectively, from its foreign currency translation.  As a result, total comprehensive loss for the years ended December 31, 2006 and 2005 were ($194,010) and ($153,476), respectively.



Income Taxes



Income tax expense is based on pre-tax consolidated financial accounting income.  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. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.  Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current, based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.



Stock-Based Compensation



In December 2004, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 123(R), Share-Based Payment (SFAS 123(R)), which is a revision of SFAS No. 123, Accounting for Stock-Based Compensation.  SFAS 123(R) is effective for small business issuers for the first fiscal year beginning after December 15, 2005, supersedes Accounting Principles Board Opinion No. 25 (APB 25), Accounting for Stock Issued to Employees, and amends SFAS 95, Statement of Cash Flows.  SFAS 123(R) eliminates the option to use APB 25s intrinsic value method of accounting and requires recording expense for stock compensation based on a fair value based method.



On July 1, 2005, the Company adopted the modified prospective method which required the Company to recognize compensation costs, for all share-based payments granted, modified or settled, in consolidated financial statements issued subsequent to July 1, 2005, as well as for any awards that were granted prior to the adoption date for which the required service has not yet been performed.  The adoption of SFAS 123(R) did not have a material effect on the Companys consolidated financial condition or results of operations subsequent to July 1, 2005, because the Company did not have any awards that were granted prior to the adoption date for which the required service have not yet been performed and the Company did not enter into any share-based transactions between July 1, 2005 and December 31, 2005.



Prior to July 1, 2005, the Company accounted for its stock-based compensation using APB 25 and related interpretations. Under APB 25, compensation expense was recognized for stock options with an exercise price that was less than the market price on the grant date of the option. For stock options with exercise prices at or above the market value of the stock on the grant date, the Company adopted the disclosure-only provisions of SFAS 123 for the stock options granted to the employees and directors of the Company. Accordingly, no compensation cost was recognized for these options prior to June 30, 2005.



|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 40





---

GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005









NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)



Basic and Diluted Net Loss Per Common Share



Basic loss per share includes no dilution and is computed by dividing net income available to common shareholders by the weighted average number of outstanding common shares during the year.  Diluted earnings per share reflect the potential dilution of securities that could occur if securities or other contracts (such as convertible debt, stock options and warrants) to issue common stock were exercised or converted into common stock.  The Company had no outstanding options or warrants at December 31, 2006.  The convertible debt has no specific date for conversion and the Company is not sure if or when it will be converted.  The Companys common stock equivalents had no effect on diluted loss per share because potential common shares are excluded from the diluted loss per share computation in net loss periods as their effect would be anti-dilutive.



Segment Reporting



The Company is centrally managed, has limited operations and operates in one business segment.



Recent Accounting Pronouncements



As previously discussed, the Company adopted SFAS No. 123(R) related to share based payments.



In May 2005, the FASB issued SFAS No. 154 (SFAS 154), Accounting Changes and Error Corrections.  This statement, which replaces APB Opinion No. 20, Accounting Changes, and FASB Statement No. 3, Reporting Accounting Changes in Interim Financial Statements, requires that a voluntary change in accounting principle be applied retrospectively to all prior period financial statements presented, unless it is impracticable to do so.  SFAS 154 also provides that a change in method of depreciating or amortizing a long-lived non-financial asset be accounted for as a change in estimate effected by a change in accounting principle, and also provides that correction of errors in previously issued financial statements should be termed a restatement.  SFAS 154 is effective for fiscal years beginning after December 15, 2005.  The adoption of SFAS 154 did not have a material impact on the Companys consolidated financial statements.



In July 2006, the FASB issued FASB Interpretation No. 48 ("Interpretation No. 48"), "Accounting for Uncertainty in Income Taxes". Interpretation No. 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with SFAS No. 109, "Accounting for Income Taxes. Interpretation No. 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Interpretation No. 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Interpretation No. 48 is effective beginning January 1, 2007. The adoption of Interpretation No. 48 is not expected to have a material impact on the Companys consolidated financial statements.



In February 2006, the FASB issued SFAS No. 155 (SFAS 155), Accounting for Certain Hybrid Financial Instruments - an amendment of FASB Statements No. 133 and 140.  This Statement amends FASB Statements No. 133, Accounting for Derivative Instruments and Hedging Activities, and No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.  This Statement resolves issues addressed in Statement 133 Implementation Issue No. D1, Application of Statement 133 to Beneficial Interests in Securitized Financial Assets.  This statement is effective for all financial instruments acquired or issued after the beginning of an entitys first fiscal year that begins after September 15, 2006.  Adoption of SFAS 155 is not expected to have a material impact on the Companys consolidated financial statements.



|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 41





---

GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005









NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)



Recent Accounting Pronouncements (Continued)



In March 2006, the FASB issued SFAS No. 156 (SFAS 156), Accounting for Servicing of Financial Assets  an amendment of FASB Statement No. 140.  SFAS 156 amends SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities, with respect to accounting for separately recognized servicing assets and servicing liabilities.  SFAS 156 is effective for fiscal years that begin after September 15, 2006, with early adoption permitted as of the beginning of an entitys fiscal year.  The Company does not have any servicing assets or servicing liabilities and, accordingly, the adoption of SFAS 156 is not expected to have a material impact on the Companys consolidated financial statements.



In September 2006, the FASB issued SFAS No. 157 (SFAS 157), "Fair Value Measurements. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosure requirements about fair value measurements. SFAS 157 will be effective for the Company on January 1, 2008. Adoption of SFAS 157 is not expected to have a material impact on the Companys consolidated financial statements.

In September 2006, the Securities and Exchange Commission staff published Staff Accounting Bulletin SAB No. 108 (SAB 108), "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements." SAB 108 addresses quantifying the financial statement effects of misstatements, specifically, how the effects of prior year uncorrected errors must be considered in quantifying misstatements in the current year financial statements. SAB 108 is effective for fiscal years ending after November 15, 2006. The Company adopted SAB 108 in the fourth quarter of 2006; adoption did not have a material impact on Companys consolidated financial statements.

In September 2006, the FASB issued SFAS 158 (SFAS 158), Employers Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R). This statement requires an employer to recognize the over funded or under funded status of a defined benefit postretirement plan as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income of a business entity. This statement also requires an employer to measure the funded status of a plan as of the date of its year end statement of financial position, with limited exceptions. The Company will be required to initially recognize the funded status of a defined benefit postretirement plan and to provide the required disclosures as of the end of the fiscal year ending after December 15, 2006.  The requirement to measure plan assets and benefit obligations as of the date of the employers fiscal year end statement of financial position is effective for fiscal years ending after December 15, 2008, or fiscal 2009 for the Company. Adoption of SFAS 158 is not expected to have a material impact on the Companys consolidated financial statements.

In February 2007, the FASB issued SFAS No. 159 (SFAS 159), "The Fair Value Option for Financial Assets and Financial LiabilitiesIncluding an amendment of FASB Statement No. 115. SFAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value. Unrealized gains and losses on items for which the fair value option has been elected will be recognized in earnings at each subsequent reporting date. SFAS 159 will be effective for the Company on January 1, 2008. Adoption of SFAS 159 is not expected to have a material impact on the Companys consolidated financial statements.





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 42





---

GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005









NOTE 3  GOING CONCERN



The Company was in the business of selling, marketing, distributing and installing global wireless tracking and telematics equipment in Europe until November 1, 2004 when they exchanged their rights to sell, market, distribute and install global wireless tracking and telematics equipment in Europe as well as specific assets and liabilities, for a royalty of 6% on future gross sales to current customers and qualified potential customers in Europe. There is no cap on the royalties and royalties are to be paid for the duration of 11 years, ending October 31, 2015.  The Company has accumulated a deficit of $4,310,003 since inception and additional financing will be required by the Company to fund and support its operations.  Management plans to mitigate its losses in future years by significantly reducing its operating expenses and seeking out new business opportunities.   However, there is no assurance that the Company will be able to obtain additional financing, reduce their operating expenses or be successful in locating or acquiring a viable business.  The consolidated financial statements do not include any adjustments that might result from the outcome of those uncertainties.



NOTE 4  CONVERTIBLE NOTES PAYABLE AND RELATED ACCRUED INTEREST DUE ON DEMAND



|                                                                                                                                                                                                                                                 |                                   |                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------- | ---------------------------
|                                                                                                                                                                                                                                                 | December 31,                     
|                                                                                                                                                                                                                                                 | 2006                              | 2005                       
|Notes payable due on demand, unsecured, bearing interest at 8% per annum, convertible into common shares of the Company at $0.50 per share at the option of the Company                                                                          | $    673,809                      | $   673,809                
|                                                                                                                                                                                                                                                 |                                   |                            
|Notes payable due on demand, unsecured, bearing interest at 10% per annum, convertible into common shares of the Company at the option of the Company or the lender at market price less 20%, with a minimum conversion price of $0.15 per share | 835,940                           | 835,940                    
|                                                                                                                                                                                                                                                 |                                   |                            
|Accrued interest due on demand                                                                                                                                                                                                                   | 370,978                           | 233,418                    
|                                                                                                                                                                                                                                                 | --------------------------------- | ---------------------------
|Total convertible notes payable and related accrued interest                  due on demand                                                                                                                                                      | $1,880,727                        | $1,743,167                 
|                                                                                                                                                                                                                                                 | ===================               | ===============            





NOTE 5  ADVANCES PAYABLE



At December 31, 2006 and 2005, the Company had advances payable of $16,385.  These advances are unsecured, are non-interest bearing and have no fixed terms of repayment.













|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 43





---

GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005









NOTE 6  DUE TO RELATED PARTIES



|                                                                                  |                                   |                            
|--------------------------------------------------------------------------------- | --------------------------------- | ---------------------------
|                                                                                  | December 31,                     
|                                                                                  | 2006                              | 2005                       
|Due to companies sharing a common officer or director or controlled by an officer | $ 177,310                         | $ 188,131                  
|Due to a director                                                                 | 13,766                            | 13,766                     
|Interest on note payable to a director (Note 7)                                   | 204,795                           | 154,795                    
|Due to a director                                                                 | 239,090                           | 239,090                    
|Due to a company controlled by a former officer (a)                               | -                                 | 17,226                     
|                                                                                  |                                   |                            
|                                                                                  | --------------------------------- | ---------------------------
|Due to related parties                                                            | $  634,961                        | $  613,008                 
|                                                                                  | ===================               | ===============            



The above debt due to related parties is unsecured, non-interest bearing and has no fixed terms of repayment.



(a)  The debt due to a company controlled by a former officer was reclassified to accounts payable and accrued liabilities at December 31, 2006.



NOTE 7  NOTE PAYABLE TO RELATED PARTY



|                                                                                         |                                   |                            
|---------------------------------------------------------------------------------------- | --------------------------------- | ---------------------------
|                                                                                         | December 31,                     
|                                                                                         | 2006                              | 2005                       
|Note payable, unsecured, bears interest at 10% per annum, due November 27, 2004 (Note 6) | $ 500,000                         | $ 500,000                  
|                                                                                         | --------------------------------- | ---------------------------
|                                                                                         | $ 500,000                         | $ 500,000                  
|                                                                                         | ===================               | ===============            



NOTE 8  DISCONTINUED OPERATIONS



On March 20, 2007, Limited was officially discontinued and wound up.  At December 31, 2006 and 2005, in connection with the wind up, the Company recorded net losses from discontinued operations of $45,830 and $49,789 respectively.  The net losses in 2006 were primarily due to interest on the notes payable of $40,000 and office expenses of $6,500 and the net losses in 2005 were primarily due to interest on the notes payable of $42,000 and professional fees of $6,500.  As a result of the discontinuance the Company assumed all of Limiteds assets and liabilities.  Limited was inactive at the date of dissolution.



NOTE 9  COMMON STOCK AND WARRANTS



During the years ended December 31, 2006 and 2005, no shares were issued.  During the year ended December 31, 2005 1,150,000 share purchase warrants expired.





|               |                    |        
|-------------- | ------------------ | -------
|               |                    |        
|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 44





---

GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005









NOTE 10  ROYALTY AGREEMENT



Effective November 1, 2004 the Company agreed, pursuant to a termination and transfer agreement, to discontinue, marketing, distributing and installing global wireless tracking and telematics equipment in Europe, which was carried on through its wholly-owned subsidiary, GlobeTrac Limited, in exchange for certain assets and liabilities and a six percent royalty to be paid to GlobeTrac Inc. on gross sales of all existing and qualified potential customers that the Company had in Europe.



NOTE 11  INCOME TAXES



As of December 31, 2006 and 2005, deferred tax assets consist of the following:



|                           |   |            |   |   |            |   |  | 
|-------------------------- | - | ---------- | - | - | ---------- | - |  | 
|                           |   | 2006       |   |   | 2005       |  
|                           |  
|                           |  
|Federal loss carryforwards | $ | 694,192    |   | $ | 647,162    |   | 
|State loss carryforwards   |   | 73,442     |   |   | 61,408     |   | 
|Foreign loss carryforwards |   | 421,148    |   |   | 411,822    |   | 
|                           |  
|                           |  
|Less: Valuation allowance  |   | (1,188,782 | ) |   | (1,120,392 | ) | 
|                           |  
|                           |  
|                           | $ | -          |   | $ | -          |   | 
|                           |  
|                           |  



At December 31, 2006 and 2005, the Company had a net operating loss carryforward (NOL) of approximately      $4.3 million and $4.1 million for federal, state and foreign tax purposes.



At December 31, 2006 and 2005 the Company had deferred tax assets of approximately $ 1.2 million and $1.1 million that primarily relates to net operating losses.  A 100% valuation allowance has been established, as management believes it is more likely than not that the deferred tax assets will not be realized.



The federal and state NOLs expire through December 31, 2026 and December 31, 2016.



The Companys valuation allowance increased during 2006 and 2005 by $68,390 and $44,414.



NOLs incurred prior to May 6, 2002 are subject to an annual limitation due to the ownership change (as defined under Section 382 of the Internal Revenue Code of 1986) which resulted in a change in business direction.  Unused annual limitations may be carried over to future years until the net operating losses expire.  Utilization of net operating losses may also be limited in any one year by alternative minimum tax rules.



NOTE 12  SUBSEQUENT EVENT



On March 20, 2007, Limited was formally dissolved.  Subsequent to December 31, 2006, Limiteds assets and liabilities were assumed by GlobeTrac Inc.



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|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 45





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|Exhibit 3.4
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|GlobeTrac Inc. | Form 10-KSB - 2006 | Page 46





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