<PAGE>

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                    FORM 10-Q

   Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
                                  Act of 1934

                        For Quarter Ended: JUNE 30, 2006

                        Commission File Number: 000-28027


                         GLOBAL BEVERAGE SOLUTIONS, INC.
             (Exact name of registrant as specified in its charter)


            NEVADA                                               90-0093439
            ------                                               ----------
   (State or Jurisdiction of                                (IRS Employer ID No)
Incorporation or Organization)

                7633 EAST 63RD PLACE, SUITE 220, TULSA, OK 74133
               (Address of principal executive office) (zip code)


                                 (918) 459-8469
                           (Issuer's telephone number)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter periods as the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ].

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
one):

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X].

The number of shares outstanding of registrant's common stock, par value $.001
per share, as of June 30, 2006 was 44,475,065 shares.



<PAGE>


                         GLOBAL BEVERAGE SOLUTIONS, INC.

                                      INDEX

                                                                            Page
                                                                             No.
                                                                            ----

Part I Financial Information

     Item 1: Condensed Financial Statements

          Statements of Net Assets as of June 30, 2006 and December 31, 2005   3

          Statements of Operations - For the Three Months Ended
          June 30, 2006 and 2005                                               4

          Statements of Operations - For the Six Months Ended
          June 30, 2006 and 2005                                               5

          Statements of Cash Flows - For the Six Months Ended
          June 30, 2006 and 2005                                               6

          Statements of Changes in Net Assets - For the Six Months
          Ended June 30, 2006 and 2005                                         7

          Financial Highlights for the Six Months Ended
          June 30, 2006 and 2005                                               8

          Schedule of Investments as of June 30, 2006 and
          December 31, 2005                                                 9-10

          Notes to Financial Statements                                    11-18

     Item 2: Managements Discussion and Analysis of Financial
          Condition and Results of Operations                              19-21

     Item 3: Quantitative and Qualitative Disclosure about Market Risk        22

     Item 4: Controls and Procedures                                          23

Part II   Other Information                                                24-29

Item 1: Legal Proceedings
Item 1A: Risk Factors
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds
Item 3: Defaults Upon Senior Securities
Item 4: Submission of Matters to a Vote of Security Holders
Item 5: Other Information
Item 6: Exhibits
Signatures
Exhibits

                                       2
<PAGE>

PART 1: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
<TABLE>

                                  GLOBAL BEVERAGE SOLUTIONS, INC.
                                Condensed Statements of Net Assets
                                June 30, 2006 and December 31, 2005

                                                                        2006             2005
                                                                    ------------     ------------
                                                                     (Unaudited)
<S>                                                                 <C>
ASSETS
Investments in controlled portfolio companies (cost $6,755,411
   at June 30, 2006 and $5,715,000 at December 31, 2005)            $  6,755,411     $  5,715,000
Investments in non-afilliated portfolio companies (cost $200,000
   at June 30, 2006 and December 31, 2005)                                    --               --
Cash and cash equivalents                                                115,305          245,370
Interest and fees receivable from controlled portfolio companies          61,855           13,889
Deposits and prepaid expenses                                              5,400           13,072
                                                                    ------------     ------------
  TOTAL ASSETS                                                         6,937,971        5,987,331
                                                                    ------------     ------------

LIABILITIES
  Accounts payable                                                       102,992           25,857
  Accrued expenses                                                        15,925          134,350
                                                                    ------------     ------------
  TOTAL LIABILITIES                                                      118,917          160,207
                                                                    ------------     ------------
NET ASSETS                                                          $  6,819,054     $  5,827,124
                                                                    ============     ============

Commitments and contingencies (Note 4)

Composition of net assets:
  Preferred stock, $.001 par value; 50,000,000 shares
     authorized; no shares issued and outstanding                   $         --     $         --
  Common stock, $.0001 par value, authorized 950,000,000 shares;
    44,475,065 and 41,312,391 shares issued and outstanding at
     June 30, 2006 and December 31, 2005, respectively                    44,475           41,312
  Additional paid in capital                                          16,751,050       15,443,102
  Accumulated deficit:
    Accumulated net operating loss                                    (7,898,056)      (7,578,875)
    Net realized loss on investments                                  (1,878,415)      (1,878,415)
    Net unrealized depreciation of investments                          (200,000)        (200,000)
                                                                    ------------     ------------
Net assets                                                          $  6,819,054     $  5,827,124
                                                                    ============     ============
Net asset value per share                                           $     0.1533     $     0.1411
                                                                    ============     ============


See accompanying notes to condensed financial statements.


                                                3

<PAGE>


                                GLOBAL BEVERAGE SOLUTIONS, INC.
                               Condensed Statements of Operations
                           Three Months Ended June 30, 2006 and 2005
                                          (Unaudited)


                                                                     2006             2005
                                                                 ------------     ------------
Income from operations:
  Interest income from portfolio companies                       $     32,530     $         --
  Management income from portfolio companies                            6,000               --
                                                                 ------------     ------------
                                                                       38,530               --
Expenses:
  Officer and employee compensation                                    37,500           75,222
  Director fees                                                            --              900
  Professional fees                                                   120,857          236,634
  Shareholder service costs                                             1,920            2,812
  Lawsuit settlement                                                   78,000               --
  Other selling, general and administrative expense                    13,222           39,150
                                                                 ------------     ------------
                                                                      251,499          354,718
                                                                 ------------     ------------
Loss before income taxes                                             (212,969)        (354,718)
Income taxes                                                               --               --
                                                                 ------------     ------------
Net loss from operations                                             (212,969)        (354,718)
                                                                 ------------     ------------

Net realized losses:
  Net realized loss on investments, net of income tax benefit
  of $0                                                                    --               --
                                                                 ------------     ------------
     Net realized losses                                                   --               --
                                                                 ------------     ------------
Net decrease in net assets from operations                       $   (212,969)    $   (354,718)
                                                                 ============     ============

Net decrease in net assets from operations per share,
  basic and diluted                                              $    (0.0049)    $    (0.0494)
                                                                 ============     ============
Weighted average shares outstanding                                43,656,804        7,174,618
                                                                 ============     ============



See accompanying notes to condensed financial statements.



                                               4


<PAGE>


                                GLOBAL BEVERAGE SOLUTIONS, INC.
                               Condensed Statements of Operations
                            Six Months Ended June 30, 2006 and 2005
                                          (Unaudited)


                                                                    2006              2005
                                                                 ------------     ------------
Income from operations:
  Interest income from portfolio companies                       $     35,966     $         --
  Management income from portfolio companies                           12,000               --
                                                                 ------------     ------------
                                                                       47,966               --
Expenses:
  Officer and employee compensation                                    75,000          120,715
  Director fees                                                         1,500            9,300
  Professional fees                                                   187,700          302,485
  Shareholder service costs                                             5,240            3,563
  Lawsuit settlement                                                   78,000               --
  Other selling, general and administrative expense                    19,707           61,784
  Interest expense                                                         --          306,500
                                                                 ------------     ------------
                                                                      367,147          804,347
                                                                 ------------     ------------
Loss before income taxes                                             (319,181)        (804,347)
Income taxes                                                               --               --
                                                                 ------------     ------------
Net loss from operations                                             (319,181)        (804,347)
                                                                 ------------     ------------

Net realized losses:
  Net realized loss on investments, net of income tax benefit
  of $0 for 2005                                                           --          (69,826)
                                                                 ------------     ------------
     Net realized losses                                                   --          (69,826)
                                                                 ------------     ------------
Net decrease in net assets from operations                       $   (319,181)    $   (874,173)
                                                                 ============     ============

Net decrease in net assets from operations per share,
  basic and diluted                                              $    (0.0075)    $    (0.2361)
                                                                 ============     ============
Weighted average shares outstanding                                42,494,615        3,702,633
                                                                 ============     ============


See accompanying notes to condensed financial statements.


                                               5

<PAGE>

                                  GLOBAL BEVERAGE SOLUTIONS, INC.
                                Condensed Statements of Cash Flows
                              Six Months Ended June 30, 2006 and 2005
                                            (Unaudited)


                                                                         2006            2005
                                                                      -----------     -----------
Cash flows from operating activities:
 Net decrease in net assets from operations                           $  (319,181)    $  (874,173)
 Adjustments to reconcile net decrease in net assets from
    operations to net cash used in operating activities:
      Depreciation                                                             --           8,364
      Amortization of deferred financing costs                                 --          28,125
      Amortization of beneficial conversion feature on convertible
        debentures                                                             --         234,926
      Changes in operating assets and liabilities:
        Interest and fees receivable from portfolio companies             (47,966)             --
        Deposits and prepaid expenses                                       7,672          29,189
        Accounts payable and accrued expenses                             220,710         308,930
                                                                      -----------     -----------
          Net cash used in operating activities                          (138,765)       (264,639)
                                                                      -----------     -----------
Cash flows from investing activities:
  Investments in and advances to portfolio investment companies        (1,112,300)       (217,699)
                                                                      -----------     -----------
          Net cash used in investing activities                        (1,112,300)       (217,699)
                                                                      -----------     -----------
Cash flows from financing activities:
  Common stock issued for cash                                          1,121,000         275,000
  Proceeds from convertible debenture                                          --          50,000
  Advance from related party                                                   --          25,000
  Proceeds from sale of common stock                                           --          91,019
                                                                      -----------     -----------
          Net cash provided by financing activities                     1,121,000         441,019
                                                                      -----------     -----------
Net decrease in cash and cash equivalents                                (130,065)        (41,319)
Cash and cash equivalents, beginning of period                            245,370          43,466
                                                                      -----------     -----------
Cash and cash equivalents, end of period                              $   115,305     $     2,147
                                                                      ===========     ===========

Supplemental Cash Flow Information:
  Non-cash investing and financing activities:

     Conversion of preferred series B to common stock                 $        --     $        57
     Common stock issued upon conversion of convertible debentures             --         293,750
     Common stock issued for notes and other debts of the Company         190,111




See accompanying notes to condensed financial statements.


                                                6



<PAGE>

                              GLOBAL BEVERAGE SOLUTIONS, INC.
                       Condensed Statements of Changes in Net Assets
                          Six Months Ended June 30, 2006 and 2005
                                        (Unaudited)


                                                                  2006             2005
                                                               -----------     -----------
Changes in net assets from operations:
  Net loss from operations                                     $  (319,181)    $  (804,347)
  Net realized loss on sale of investments, net                         --         (69,826)
  Change in net unrealized depreciation of investments, net             --              --
                                                               -----------     -----------
    Net decrease in net assets from operations                    (319,181)       (874,173)
                                                               -----------     -----------

Capital stock transactions:
  Common stock issued for cash                                   1,121,000         275,000
  Common stock issued for liabilities                              190,111
  Conversion of convertible debentures                                  --         293,750
  Proceeds from sale of common stock                                    --          91,019
                                                               -----------     -----------
    Net increase in net assets from stock transactions           1,311,111         659,769
                                                               -----------     -----------
Net increase in net assets                                         991,930        (214,404)
Net assets, beginning of period                                  5,827,124         396,001
                                                               -----------     -----------
Net assets, end of period                                      $ 6,819,054     $   181,597
                                                               ===========     ===========


See accompanying notes to condensed financial statements.


                                             7


<PAGE>


                                  GLOBAL BEVERAGE SOLUTIONS, INC.
                                       Financial Highlights
                              Six Months Ended June 30, 2006 and 2005
                                            (Unaudited)

                                                                2006                   2005
                                                           ----------------      ----------------

PER SHARE INFORMATION
 Net asset value, beginning of period                      $         0.1411      $         2.1300
 Net decrease from operations                                       (0.0075)              (0.2172)
 Net change in realized losses and unrealized
  depreciation of investments, net                                       --               (0.0189)
 Net increase from stock transactions                                0.0197               (1.8834)
                                                           ----------------      ----------------
     Net asset value, end of period                        $         0.1533      $         0.0105
                                                           ================      ================

RATIOS/SUPPLEMENTAL DATA
 Net assets, end of period                                 $      6,819,054      $        181,465
 Average net assets                                               6,239,783               318,107
 Ratio of expenses to average net assets                                5.9%               252.9%
 Ratio of net decrease in net assets from operations to
     average net assets                                                 5.1%               274.8%
 Shares outstanding at end of period                             44,475,065            17,275,969
 Weighted average shares outstanding during period               42,494,615             3,702,633



See accompanying notes to condensed financial statements.




                                                8




<PAGE>

                                            GLOBAL BEVERAGE SOLUTIONS, INC.
                                                Schedule of Investments
                                                     June 30, 2006
                                                      (Unaudited)

             Date of                                                            Original           Fair         % Net
  Shares   Acquisition                                                            Cost            Value        Assets
                       COMMON STOCK IN PORTFOLIO COMPANIES

                                            CONTROLLED
        9%   Jul-05    EON Beverage Group, Inc., privately held;
                       manufactures structured water pursuant to
                       proprietary process                                        $ 734,000        $ 734,000       11%
       80%   Nov-05    Rudy Beverage, Inc., privately held; manufactures
                       and sells beverages higher in nutritional value
                       and lower in sugar than existing brands                    6,021,411        6,021,411       87%
                                                                             ---------------  ---------------  --------
                                                                                  6,755,411        6,755,411       98%
                                                                             ---------------  ---------------  --------

                                          NON-AFFILIATED
                       Investments with $0 value - see schedule below               200,000                -
                                                                             ---------------  ---------------  --------
                       Total investments at June 30, 2006                       $ 6,955,411        6,755,411       98%
                                                                             ===============
                       Cash and other assets, less liabilities                                       148,643        2%
                                                                                              ---------------  --------
                       Net assets at June 30, 2006                                               $ 6,904,054      100%
                                                                                              ===============  ========

                       SCHEDULE OF INVESTMENTS WITH $0 VALUE

        8%   Jun-05    Titanium Design Studio, Inc., privately held;
                       a titanium jewelry manufacturer                            $ 200,000              $ -
                                                                             ---------------  ---------------
                                                                                  $ 200,000              $ -
                                                                             ===============  ===============

See accompanying notes to condensed financial statements


                                                9





<PAGE>

                                           GLOBAL BEVERAGE SOLUTIONS, INC.
                                               Schedule of Investments
                                                 December 31, 2005

                 Date of                                                           Historical            Fair
    Shares     Acquisition                                                            Cost              Value
                           COMMON STOCK IN PORTFOLIO COMPANIES

                                                CONTROLLED
            9%   Jul-05    EON Beverage Group, Inc., privately held;
                           10% of net assets; manufactures structured water
                           pursuant to proprietary process                             $ 585,000          $ 585,000
           80%   Nov-05    Rudy Beverage, Inc., privately held; 85% of net
                           assets; manufactures and sells beverages higher in
                           nutritional value and lower in sugar than existing
                           brands                                                      5,130,000          5,130,000
                                                                                 ----------------  -----------------
                                                                                       5,715,000          5,715,000
                                                                                 ----------------  -----------------

                                              NON-AFFILIATED
                           Investments with $0 value - see schedule below                200,000                  -
                                                                                 ----------------  -----------------
                           Total investments at December 31, 2005                    $ 5,915,000          5,715,000
                                                                                 ================
                           Cash and other assets, less liabilities                                          112,124
                                                                                                   -----------------
                           Net assets at December 31, 2005                                              $ 5,827,124
                                                                                                   =================

                           SCHEDULE OF INVESTMENTS WITH $0 VALUE

            8%   Jun-05    Titanium Design Studio, Inc., privately held;
                           a titanium jewelry manufacturer                             $ 200,000                $ -
           51%   Aug-04    Island Tribe, Inc., privately held; 0% of net assets;
                           distributor of extreme sports apparel                         396,777                  -
          100%             Costs associated with previously discontinued                       -                  -
                           businesses, Unboxed Distribution, Inc. and Total
                           Sports Distribution, Inc.                                      69,826                  -
                           Discontinued investments                                     (466,603)
                                                                                 ----------------  -----------------
                                                                                       $ 200,000                $ -
                                                                                 ================  =================



See accompanying notes to condensed financial statements.


                                       10
</TABLE>


<PAGE>


                         GLOBAL BEVERAGE SOLUTIONS, INC.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)


(1) DESCRIPTION OF BUSINESS

(A) ORGANIZATION AND BUSINESS
-----------------------------

The condensed financial statements include the accounts of Global Beverage
Solutions, Inc. ("Global" or the "Company"). Pursuant to Regulation S-X Rule 6,
the Company will operate on a non-consolidated basis. Operations of the
portfolio companies will be reported at the subsidiary level and only the
appreciation or impairment of these investments in portfolio companies will be
included in the Company's financial statements.

On June 19, 2003, the Company became a business development company" ("BDC")
pursuant to applicable provisions of the Investment Company Act of 1940. Until
June 19, 2003 the Company was a development stage enterprise under the
provisions of Statement of Financial Accounting Standards ("SFAS") No. 7,
"Accounting and Reporting by Development Stage Enterprises." Upon commencing
their operations as a BDC, the Company no longer qualified under the guidelines
of SFAS No. 7.

Mercury Software, a Nevada corporation, was incorporated on January 29, 1997 and
its name was changed to MedEx Corp. on June 24, 2002. Aussie Apparel Group, Ltd.
("Aussie Apparel" or the "Company"), a Nevada corporation, was incorporated on
August 26, 2002. In October 2002, MedEx Corp. issued an aggregate of 2,600
shares of its common stock to the shareholders of the Company in connection with
the merger of the Company with MedEx Corp., whose name was then changed to
"Aussie Apparel Group, Ltd" on October 21, 2002. Since the shareholders of the
Company became the controlling shareholders of MedEx after the exchange, the
Company was treated as the acquirer for accounting purposes. Accordingly, the
financial statements, as presented here, are the historical financial statements
of the Company and include the transactions of MedEx only from the date of
acquisition, using reverse merger accounting.

The Company's name was changed to Bluetorch Inc. ("Bluetorch") effective
November 3, 2003. On April 25, 2005, the Company changed its name to Pacific
Crest Investments and as a result of a conflict in name with an existing company
changed its name to Pacific Peak Investments on May 5, 2005. On October 10,
2005, the Company changed its name to Global Beverage Solutions, Inc. and began
trading on the OTC Bulletin Board under the symbol GBVS.OB.

On April 18, 2005, the Company completed a 2,500-to-1 reverse stock split. The
accompanying financial statements have been restated to reflect this stock split
for all periods presented.




<PAGE>


(B) CONDENSED FINANCIAL STATEMENTS
----------------------------------

The accompanying condensed financial statements have been prepared by the
Company without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position as of June 30, 2006, and the results of operations and cash
flows for all periods presented have been made.

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with accounting principles generally accepted
in the United States of America have been condensed or omitted. It is suggested
that these condensed financial statements be read in conjunction with the
financial statements and notes thereto included in the Company's December 31,
2005 audited financial statements on Form 10-K. The results of operations for
the interim periods presented are not necessarily indicative of the operating
results for the full years.

(C) RECLASSIFICATIONS
---------------------

Certain reclassifications have been made to the prior period financial
statements to conform to the current period presentation.

(D) GOING CONCERN
-----------------

The accompanying financial statements have been prepared assuming the Company
will continue as a going concern, which contemplates, among other things, the
realization of assets and satisfaction of liabilities in the normal course of
business. As of June 30, 2006, the Company has an accumulated deficit of
$9,976,471 and had net losses totaling $319,181 for the six months ended June
30, 2006. Additionally, as of June 30, 2006, the Company had limited working
capital. These factors, among others, raise substantial doubt about the
Company's ability to continue as a going concern. The Company intends to fund
operations through debt and equity financing arrangements which management
believes should be sufficient to fund its capital expenditures, working capital
and other cash requirements for the next twelve months. The successful outcome
of future activities cannot be determined at this time and there is no assurance
that, if achieved, the Company will have sufficient funds to execute its
intended business plan or generate positive operating results.

As of June 30, 2006, the Company estimates it will require approximately
$300,000 to meet its operating cash flow requirements and approximately $700,000
to meet its currently committed follow-on investments for the balance of 2006.
The Company has cash of $115,000 at June 30, 2006, and has raised $285,000 from
the sale of its common stock as of August 8, 2006. Management expects to
continue to raise funds as needed to meet its requirements.

Management plans to take the following steps in response to these issues:

     It has been determined that, as an investment company, the Company will
     only invest in/acquire businesses which are cash flow positive and
     profitable or businesses which projections indicate can become cash flow
     positive and profitable within a reasonable period. These entities will
     have good growth potential as a result of access to additional capital
     and/or additional management acumen.

                                       12
<PAGE>

     As part of this strategic process, the Company has decided to concentrate
     its efforts in the beverage industry. It is believed that this new
     direction will both reduce the risk for the Company and its shareholders as
     well as provide the best opportunity for long-term shareholder value.

     On March 14, 2006, the Company filed a new Offering Circular that
     authorized the Company to raise up to $1,500,000 via sale of its common
     stock with a minimum share price of $.90. As of June 30, 2006, the Company
     had sold 1,081,000 shares and raised $1,099,000 against this limit
     (includes 60,000 shares issued for notes and other debts of the Company in
     the amount of $78,000).

Whereas the Company believes it will be successful with its plans, due to market
factors and economic conditions, no assurance can be given that financing will
be available on favorable terms or at all.

The financial statements do not include any adjustments related to
recoverability and classification of assets carrying amounts or the amount and
classification of liabilities that might result should the Company be unable to
continue as a going concern.


(2) INVESTMENTS

RUDY BEVERAGE, INC.
-------------------

On November 17, 2005, the Company executed a Stock Purchase Agreement with the
shareholders ("Sellers") of Rudy Beverage, Inc. ("Rudy"), a Nevada corporation,
whereby the Company exchanged 6,000,000 shares of its common stock for 80% of
the issued and outstanding common stock of Rudy. The Company's investment was
valued at $4,860,000 based upon the trading price of the Company's common stock
on the date of the transaction. The Sellers can receive up to 10,000,000
additional shares of the Company's common stock if Rudy achieves certain sales
and net revenue goals by the twelve month periods ended June 30, 2007 and 2008.
Rudy was founded by Rudy Ruettiger and Drew Carver to create a unique line of
beverages higher in nutritional value but lower in sugar than existing brands.
Rudy currently has developed two distinct products: Rudy Flying Colors, catering
to children K1 through 8; and Rudy Revolution, a sport drink aimed at athletes
across the board. The goal of the Rudy line of beverages is to create flavorful
juice blends, some of which will incorporate the hydration capabilities of EON
Structured Water. Rudy began sales during the quarter ended June 30, 2006, of
its 55oz size drink and is currently expanding its production capability to
include an 8oz size, a 16oz size, a 20oz size and a 32oz size. The Company has
made follow-on investments in the form of loans in the total amount of
$1,161,411 as of June 30, 2006, to Rudy.


                                       13
<PAGE>


EON BEVERAGE GROUP, INC.
------------------------

On July 8, 2005, the Company consummated the transactions contemplated by the
Share Purchase Agreement (dated June 28, 2005) with EON Beverage Group, Inc.
("EON") and, as a result, the Company invested $400,000 in exchange for 9% of
the issued and outstanding common stock of EON. EON manufactures structured
water through a proprietary process (patent pending) which alters the molecular
structure of purified water. Structured water is a relatively new concept which
is generally defined as water molecules organized through hydrogen bonding into
distinct molecular structures. This allows the users of EON water to achieve
enhanced intra-cellular hydration through significant absorption capability that
is crucial for maximum biological activity and improved athletic performance,
based on the representations of EON. The Company has made follow-on investments
in the form of loans in the total amount of $334,000 as of June 30, 2006, to
EON. In addition, at June 30, 2006, Rudy had advanced $142,000 to EON.

On January 23, 2006, the Company executed a letter of intent with certain
shareholders of EON which could increase the Company's ownership of EON to 53%,
subject to due diligence and a definitive contract. The agreement has been
delayed pending completion of additional due diligence.

TITANIUM DESIGN STUDIO, INC.
----------------------------

On June 6, 2005, the Company signed a Share Purchase Agreement with Titanium
Design Studio, Inc. ("TDS"), a Nevada corporation, whereby the Company invested
$200,000 in cash in exchange for 8% of the issued and outstanding common stock
of TDS. TDS has a proprietary manufacturing process which allows it to cast
precision titanium jewelry resulting in a level of detail not obtainable by
milling titanium. TDS can economically produce and supply jewelry in shapes and
patterns which were previously considered to be impossible or uneconomical to
manufacture. TDS believes its technology has applications in other industries,
including aerospace, dentistry, sporting goods (fishing rods) and commemorative
coins. Early in 2006, TDS relocated its operations to Thailand in order to
access cheaper labor. The Board of Directors of the Company recorded a reserve
in the amount of $200,000 relating to this investment at December 31, 2005.

                    INVESTMENTS DISCONTINUED IN 2004 AND 2005
                    -----------------------------------------

UNBOXED DISTRIBUTION, INC.
--------------------------

On August 21, 2003, the Company formed Unboxed Distribution, Inc. ("Unboxed")
for the purpose of owning and operating the Bluetorch license agreement.

On March 12, 2005, the Company and its wholly-owned subsidiary, Unboxed
Distribution, Inc., signed a Mutual Settlement and Release Agreement with Gotcha
Brands Inc., the Bluetorch licensor, and this agreement required the Company's
subsidiary, Unboxed Distribution, Inc., to cease the selling and marketing of
Bluetorch apparel. In keeping with this agreement, the Company also agreed to
change its corporate name by April 20, 2005.

                                       14
<PAGE>

TOTAL SPORTS DISTRIBUTION, INC.
-------------------------------

On October 21, 2003, the Company formed Total Sports Distribution, Inc. ("Total
Sports") for the purpose of owning and operating the True Skate Apparel brand
("TSABrand)". Furthermore, on February 19, 2004 Total Sports signed a definitive
agreement with Collective Licensing International, LLC to license the Airwalk
brand for apparel in the United States market.

On March 22, 2005, the Company and its wholly-owned subsidiary, Total Sports
Distribution, Inc., signed a Mutual Settlement and Release Agreement with
Collective Licensing International, LLC, the licensor of the Airwalk apparel
brand, and this agreement required the Company's subsidiary, Total Sports
Distribution, Inc., to cease the selling and marketing of Airwalk apparel.

ISLAND TRIBE, INC.
------------------

Effective August 1, 2004, the Company acquired a 51% interest in Island Tribe,
Inc., ("Island Tribe") a surf apparel company in exchange for 12,000 shares of
the restricted common stock of the Company, which was valued at $372,000, based
on the trading price of the Company's common stock on that date. Over the next 4
years, this purchase agreement provided for the Company to receive an additional
24% ownership of Island Tribe, Inc. Effective November 20, 2005, the Company
exchanged its 51% ownership in Island Tribe for the 12,000 restricted common
shares originally issued to acquire Island Tribe.

VALUATION OF INVESTMENTS

As required by the SEC's Accounting Series Release ("ASR") 118, the investment
committee of the Company is required to assign a fair value to all investments.
To comply with Section 2(a) (41) of the Investment Company Act and Rule 2a-4
under the Investment Company Act, it is incumbent upon the board of directors to
satisfy themselves that all appropriate factors relevant to the value of
securities for which market quotations are not readily available have been
considered and to determine the method of arriving at the fair value of each
such security. To the extent considered necessary, the board may appoint persons
to assist them in the determination of such value and to make the actual
calculations pursuant to the board's direction. The board must also, consistent
with this responsibility, continuously review the appropriateness of the method
used in valuing each issue of security in the Company's portfolio. The directors
must recognize their responsibilities in this matter and whenever technical
assistance is requested from individuals who are not directors, the findings of
such individuals must be carefully reviewed by the directors in order to satisfy
themselves that the resulting valuations are fair.

No single standard for determining "fair value in good faith" can be laid down,
since fair value depends upon the circumstances of each individual case. As a
general principle, the current "fair value" of an issue of securities being
valued by the board of directors would appear to be the amount that the owner
might reasonably expect to receive for them upon their current sale. Methods
that are in accord with this principle may, for example, be based on a multiple
of earnings, or a discount from market of a similar freely traded security, or
yield to maturity with respect to debt issues, or a combination of these and
other methods. Some of the general factors that the directors should consider in
determining a valuation method for an individual issue of securities include: 1)
the fundamental analytical data relating to the investment, 2) the nature and
duration of restrictions on disposition of the securities, and 3) an evaluation
of the forces which influence the market in which these securities are purchased
and sold. Among the more specific factors which are to be considered are: type
of security, financial statements, cost at date of purchase, size of holding,
discount from market value of unrestricted securities of the same class at time
of purchase, special reports prepared by analysts, information as to any
transactions or offers with respect to the security, existence of merger
proposals or tender offers affecting the securities, price and extent of public
trading in similar securities of the issuer or comparable companies and other
relevant matters.

                                       15
<PAGE>

The board has arrived at the following valuation method for its investments.
Where there is not a readily available source for determining the market value
of any investment, either because the investment is not publicly traded or is
thinly traded and in absence of a recent appraisal, the value of the investment
shall be based on the following criteria:

     1.   Total amount of the Company's actual investment ("AI"). This amount
          shall include all loans, purchase price of securities and fair value
          of securities given at the time of exchange.
     2.   Total revenues for the preceding twelve months ("R").
     3.   Earnings before interest, taxes and depreciation ("EBITD")
     4.   Estimate of likely sale price of investment ("ESP")
     5.   Net assets of investment ("NA")
     6.   Likelihood of investment generating positive returns (going concern).

The estimated value of each investment shall be determined as follows:

-    Where no or limited revenues or earnings are present, then the value shall
     be the greater of the investment's a) net assets, b) estimated sales price,
     or c) total amount of actual investment.
-    Where revenues and/or earnings are present, then the value shall be the
     greater of one-time (1x) revenues or three times (3x) earnings, plus the
     greater of the net assets of the investment or the total amount of the
     actual investment.
-    Under both scenarios, the value of the investment shall be adjusted down if
     there is a reasonable expectation that the Company will not be able to
     recoup the investment or if there is reasonable doubt about the
     investment's ability to continue as a going concern.

Based on the previous methodology, the Company determined that its investments
should be valued at June 30, 2006 as follows:

     o    RUDY BEVERAGE, INC.
          Rudy began its initial sales during the quarter ended June 30, 2006,
          of its 55oz bottle size in a number of flavors. Rudy completed an
          initial production run of its 8oz size in July and has plans to also
          produce 16oz, 20oz and 32oz sizes to meet its market needs.
          Accordingly, based upon the established valuation method, Rudy is
          valued at its cost of $4,860,000 at June 30, 2006.

     o    EON BEVERAGE GROUP, INC.
          EON has been involved in test marketing its structured water and has
          had limited revenues during this testing phase. On January 23, 2006,
          the Company entered into a letter of intent with certain shareholders
          of EON which would increase the Company's ownership from 9% to 53%, in
          exchange for 1,750,000 shares of Global common stock. The agreement
          has been delayed and is subject to due diligence and a definitive
          contract. The Company currently expects the terms to be modified. In
          addition, EON expects to sell a substantial volume of its structured
          water to Rudy for use in certain of its drinks. Accordingly, based on
          the established valuation method, EON is valued at its cost of
          $400,000 at June 30, 2006.

                                       16
<PAGE>

     o    TITANIUM DESIGN STUDIO, INC.
          Early in 2006, TDS relocated its operations to Thailand in order to
          access cheaper labor. As a result, the Company fully reserved its
          investment of $200,000 at December 31, 2005.

                    INVESTMENTS DISCONTINUED IN 2004 AND 2005

     o    ISLAND TRIBE, INC.
          As noted above, the Company sold its interest in Island Tribe on
          November 20, 2005.

     o    UNBOXED DISTRIBUTION, INC. AND TOTAL SPORTS DISTRIBUTION, INC.
          Unboxed and Total Sports were fully reserved at December 31, 2004. the
          Company realized an additional loss of $69,826 during the three month
          period ended March 31, 2005, relating to liquidating these businesses.

(3) EQUITY

COMMON STOCK:
-------------

Effective April 18, 2005, the Company implemented a 2500-to-1 reverse split of
its common stock. Immediately following this reverse stock split, there were
218,500 issued and outstanding common shares of the Company.

During the six months ended June 30, 2006, the Company issued a total of
3,162,674 shares of its common stock for cash in the amount of $1,121,000 and
notes and other debts of the Company in the amount of $190,111.

PREFERRED STOCK:
----------------

The Company is authorized to issue up to 50,000,000 shares of preferred stock at
$0.001 par value.


                                       17
<PAGE>


(4) COMMITMENTS AND CONTINGENCIES

GENERAL - The Company's commitments and contingencies include the usual
obligations of a BDC in the normal course of business. In the opinion of
management, these matters are not expected to have a material adverse effect on
the Company's financial position and results of operations. In addition, whereas
the Company may be indirectly impacted by claims and other obligations that
arise at its portfolio companies, management is not aware of any such claims.

REGULATORY COMPLIANCE - As a BDC, the Company operates in a highly regulated
environment and must comply with the requirements of the 1940 Act. The Company
endeavors to be in compliance with the requirements of the Act as part of its
investment strategy and oversight functions. Whereas compliance with such laws
and regulations requires interpretation, the Company believes it is in
compliance with such requirements at June 30, 2006. However, no assurances can
be given that such requirements will not change or that differing
interpretations could result in non-compliance or that such matters, if they
arise, will be insignificant to the Company's financial position or results of
operations.

LEGAL - On September 23, 2005, Golden Gate Investors, Inc. filed a complaint for
breach of contract and specific performance of contract, Case No. GIC 854356 in
the Superior Court of the State of California, County of San Diego, Central
Division, against the Company. Plaintiff claims that they are owed $53,768 in
actual losses and has further claimed they had damages in the amount of $24,851
as a result of an alleged breach of contract by the Company. Plaintiff has been
granted a judgment in the amount of approximately $60,000, which amount was
included in accrued expenses on the statements of net assets at December 31,
2005. The $60,000 liability was a part of the $104,000 in accounts payable and
accrued expenses exchanged for the Company's common stock during the six months
ended June 30, 2006.

The Company agreed to settle a lawsuit in which they were a potential third
party defendant. The Company accrued the $78,000 settlement amount in June 2006.
Subsequently, the Company issued 60,000 shares of its common stock in exchange
for assumption of this liability.

OTHER ITEMS - The Company has a month-to-month agreement with its chief
executive officer which provides for payment of compensation of $10,000 per
month, commencing in January 2006.

As a part of its January 23, 2006, letter of intent to increase its ownership of
EON to 53%, the Company agreed to loan EON an additional $350,000. The loan was
scheduled to be advanced at the rate of $70,000 per month commencing February 1,
2006. The Company advanced $140,000 as a part of this agreement in January 2006.
The remaining $210,000 has been delayed pending completion of additional due
diligence.

The Company leases its office facility on a month-to-month basis at the rate of
$1,000 per month.

As of June 30, 2006, the Company has advanced Rudy $1,161,411 and has made
additional advances of $228,000 between July 1, 2006, and August 8, 2006. Based
on current projections, the Company expects it will provide an additional
$1,000,000 until Rudy reaches break-even. Of this amount, approximately $700,000
is expected to be required during the balance of 2006.


                                       18
<PAGE>

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

This information statement contains forward-looking statements. For this
purpose, any statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements. These statements relate to
future events or our future financial performance. In some cases, you can
identify forward-looking statements by terminology such as "may", "will",
"should", "expects", "plans", "anticipates", "believes", "estimates",
"predicts", "potential", "continue" or the negative of such terms or other
comparable terminology. These statements are only predictions. Actual events or
results may differ materially. There are a number of factors that could cause
our actual results to differ materially from those indicated by such
forward-looking statements.

Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. Moreover, we do not assume responsibility
for the accuracy and completeness of such forward-looking statements. We are
under no duty to update any of the forward-looking statements after the date of
this information statement to conform such statements to actual results.
Management's discussion and analysis should be read in conjunction with our
financial statements and the notes herein.

Critical Accounting Policies and Estimates
------------------------------------------

Management's Discussion and Analysis of Financial Condition and Results of
Operations section discusses our financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United States
of America. The preparation of these financial statements requires us to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting periods. On an on-going basis, we
will evaluate our estimates and judgments, including those related to revenue
recognition, valuation of investments in portfolio companies, accrued expenses,
financing operations, contingencies and litigation. We will base our estimates
and judgments on historical experience and on various other factors that are
believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying value of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from
these estimates under different assumptions or conditions. The most significant
accounting estimates inherent in the preparation of our financial statements
include estimates as to the appropriate carrying value of certain assets and
liabilities which are not readily apparent from other sources, such as the
investments in portfolio companies. These accounting policies are described at
relevant sections in this discussion and analysis and in the "Notes to Financial
Statements" included in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2005.


                                       19
<PAGE>


Results of Operations
---------------------

Three months ended June 30, 2006 as compared to the three months ended June 30,
2005 -
--------------------------------------------------------------------------------

o    During the 2006 period we recognized revenue in the amount of $32,530 in
     interest income from portfolio companies and $6,000 in management fees from
     portfolio companies. We had no revenue during the 2005 period.
o    During the three months ended June 30, 2006, total expenses declined
     $103,219 (29%) to $251,499 from $354,718 in the prior year period.
     1.   During the 2006 period, professional fees were $115,777 (49%) lower
          than in the 2005 period. The decline is primarily due to elimination
          of consulting fees associated with our investments in 2005 in the
          amount of $100,594.
     2.   Officer and employee compensation declined $37,722 (50%) in 2006 from
          the amount in 2005. The decline includes a smaller staff and use of a
          part-time consultant for CFO in 2006.
     3.   Other selling, general and administrative expense declined $25,928
          (66%) in 2006 as compared to 2005. This decline is primarily due to
          lower costs for insurance, rent, communications and travel in 2006
          than experienced in 2005.

    4.   As more fully discussed in the notes to the condensed financial
          statements, we recorded a lawsuit settlement expense of $78,000 during
          the 2006 period.

Six months ended June 30, 2006 as compared to the six months ended June 30, 2005
-
--------------------------------------------------------------------------------

o    During the 2006 period we recognized revenue in the amount of $35,966 in
     interest income from portfolio companies and $12,000 in management fees
     from portfolio companies. We had no revenue during the 2005 period.
o    Total expense amounted to $367,147 in 2006 as compared to $804,347 in 2005,
     a decline of $437,200 (54%).
     1.   Officer and employee compensation declined $45,715 (38%) due to a
          smaller staff in 2006 and use of a part-time consultant for CFO.
     2.   Professional fees declined $114,785 (38%) in 2006 from the amount in
          2005, primarily due to elimination of the consulting fees associated
          with our investments in 2005 in the amount of $146,578.
     3.   Other selling, general and administrative expenses declined $42,077
          (68%) in the 2006 period primarily due to lower insurance, rent,
          communications and travel costs.
     4.   We had interest expense of $306,500 in 2005 relating to the beneficial
          conversion feature of convertible debentures which were all retired in
          2005.
     5.   As more fully discussed in the notes to the condensed financial
          statements, we recorded a lawsuit settlement expense of $78,000 during
          the 2006 period.


                                       20
<PAGE>

Liquidity and Capital Resources
-------------------------------

o    At June 30, 2006, we had net assets of $6,819,054 as compared to net assets
     of $5,827,124 at December 31, 2005. During the 2006 period, cash decreased
     $130,065 to $115,305 and our investments in portfolio companies increased
     $1,040,411, net, from $5,715,000 to $6,755,411. Liabilities have decreased
     $41,290 during 2006, primarily due to issuing common stock for the
     assumption of $104,000 of the liabilities included in the balance at
     December 31, 2005. Accordingly, the total asset increase of $950,640, when
     increased by the decline in liabilities of $41,290 resulted in an increase
     in net assets of $991,930.

o    As of June 30, 2006, the Company had limited revenues and had an
     accumulated deficit totaling $9,976,471 for the period from August 26, 2002
     (inception) through June 30, 2006. Additionally, as of June 30, 2006, the
     Company had limited working capital. These factors, among others, raise
     substantial doubt about the Company's ability to continue as a going
     concern. The Company intends to fund operations through debt and equity
     financing arrangements which management believes should be sufficient to
     fund its capital expenditures, working capital and other cash requirements
     for the next twelve months. The successful outcome of future activities
     cannot be determined at this time and there is no assurance that, if
     achieved, the Company will have sufficient funds to execute its intended
     business plan or generate positive operating results.

Our Plan of Operation for the Next Twelve Months
------------------------------------------------

Global provides equity and debt investment capital to fund growth, acquisitions
and recapitalizations of small market companies primarily located in the United
States. We are looking to invest in companies that are cash-flow positive or are
likely to become cash-flow positive in the foreseeable future based on sound
economic fundamentals. These entities will have the prospect for expansion as a
result of access to capital and/or additional management acumen provided by
Global. As part of this strategic process, we are looking for investment
opportunities in the beverage product categories and/or services that have the
potential for a positive return on investment, both in terms of current income
and capital appreciation. Our investments can take the form of common and
preferred stock and warrants or rights to acquire equity interests, senior and
subordinated loans, or convertible securities.

As of June 30, 2006, the Company estimates it will require approximately
$300,000 to meet its operating cash flow requirements and approximately $700,000
to meet its currently committed follow-on investments for the balance of 2006.
The Company has cash of $115,000 at June 30, 2006, and has raised $285,000 from
the sale of its common stock as of August 8, 2006. Management expects to
continue to raise funds as needed to meet its requirements.

Off Balance Sheet Arrangements
------------------------------

o    None.

Contractual Obligations
-----------------------

o    None.



                                       21
<PAGE>


ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of loss arising from changes in market rates and prices.
We are primarily exposed to equity price risk, which arises from exposure to
securities that represent an ownership interest in our portfolio companies. The
value of our equity securities and our other investments are based on quoted
market prices or our Board of Directors' good faith determination of their fair
value (which is based, in part, on quoted market prices). Market prices of
common equity securities, in general, are subject to fluctuations, which could
cause the amount to be realized upon the sale or exercise of the instruments to
differ significantly from the current reported value. The fluctuations may
result from perceived changes in the underlying economic characteristics of our
portfolio companies, the relative price of alternative investments, general
market conditions and supply and demand imbalances for a particular security.



                                       22
<PAGE>


ITEM 4: CONTROLS AND PROCEDURES

                      Evaluation of Controls and Procedures

The Company's board of directors and management, including the Chief Executive
Officer ("CEO") and Chief Financial Officer ("CFO"), evaluated the effectiveness
of the design and operation of the Company's disclosure controls and procedures,
as defined in Rule 13(a)-15(e) and 15(d)-15(e) of the Exchange Act. Based upon
that evaluation, the Company's board of directors and management, including the
CEO and CFO, concluded that, as of June 30, 2006, the Company's disclosure
controls and procedures were effective in alerting management on a timely basis
to material Company information that would be required to be included in our
periodic filings with the SEC.

Based on their most recent evaluation as of the Evaluation Date, the CEO and the
CFO have also concluded that the other controls and procedures, that are
designed to ensure that information required to be disclosed in our periodic
filings with the SEC, are adequate.

                           Changes in Internal Control

At the time of its election as a business development company, the Company
adopted what it considered to be adequate controls and procedures (the "Old
Controls"). These Old Controls lacked time constraints that would force timely
posting of transactions and, as a result, the Company has been late with the
preparation of its financial disclosures on numerous occasions. The Company has
undertaken a review of its controls to determine what additional controls should
be implemented to insure timely filings in the future. The Company has
determined that it will retain outside `bookkeeping services' under a
contractual relationship that includes timeliness as a contractual obligation
and may adopt additional controls in the future. In the preliminary review of
the Old Controls, the Company determined that both assets of the Company and the
quality of its financial information are safeguarded but the issue of timeliness
has been problematic and requires being addressed. The Company designated its
Chief Executive Officer with the added responsibility of its Chief Compliance
Officer.

The Company updated its internal controls as of December 31, 2005, at which time
they were adopted by the Board of Directors. There were no significant changes
made in the Company's internal controls over financial reporting since that time
that have materially affected, or are reasonably likely to materially affect,
these internal controls. Thus, no corrective actions, with regard to significant
deficiencies or material weaknesses, were necessary.






                                       23


<PAGE>


                           PART II - OTHER INFORMATION
                           ---------------------------


ITEM 1:  LEGAL PROCEEDINGS

Not applicable.

ITEM 1A: RISK FACTORS

Not applicable.

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

During the three months ended June 30, 2006, we issued a total of 1,120,960
shares of our common stock. Pursuant to our current offering circular, we issued
380,000 shares for $380,000 in cash and we issued 60,000 shares in exchange for
notes and other debts of the Company of $78,000. In addition, 588,235 restricted
shares were issued for $100,000 in cash and 7,725 shares were issued for a
liability of Rudy in the amount of $8,111.

All of the shares issued were sold pursuant to an exemption from registration
under Section 4(2) promulgated under the Securities Act of 1933, as amended.

ITEM 3: DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable.

ITEM 5: OTHER INFORMATION

Not applicable.

ITEM 6: EXHIBITS

The following exhibits are filed with this report on Form 10-Q.

          Exhibit 31     Certifications pursuant to 18 U.S.C. Section 1350
                         Section 302 of the Sarbanes-Oxley Act of 2002

          Exhibit 32     Certifications pursuant to 18 U.S.C. Section 1350
                         Section 906 of the Sarbanes-Oxley Act of 2002


                                       24
<PAGE>


                                    SIGNATURE

         Pursuant to the requirements of the Securities Exchange Act of 1934,
         the Registrant has duly caused this report to be signed on its behalf
         by the undersigned thereunto duly authorized.

                                                 GLOBAL BEVERAGE SOLUTIONS, INC.



Date: August 9, 2006                             By: /s/ Richard T. Clark
                                                     ---------------------------
                                                     Richard T. Clark,
                                                     Chief Executive Officer