----

----

| x | QUARTERLY      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|---------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------|

| Nevada(State      or other jurisdiction of incorporation or organization)                              | 36-4567500(I.R.S.      Employer Identification No.) |
|--------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
|                                                                                                   |                                                |
| 534      Delaware Avenue, Suite 412Buffalo,      New York(Address      of principal executive offices) | 14202(Zip      Code)                                |

  No  

  No  

----

----

| FINANCIAL      REPORTS |
|------------------------|
| AT                     |
| May      31, 2007      |

----

| GLOBAL      WATAIRE INC., AND SUBSIDIARY (A      NEVADA CORPORATION)Buffalo,      New York  TABLE      OF CONTENTS Consolidated      Balance Sheets at May 31, 2007 (Unaudited) and August 31,      2006                                                  F-1 Consolidated      Statements of Operations for the Three and Nine Months Ended  May      31, 2007 and 2006      (Unaudited)                                                                                                                        F-2 Consolidated      Statements of Cash Flows for the Nine Months Ended  May      31, 2007 and 2006      (Unaudited)                                                                                                                      F-3      - F-4 Notes      to Consolidated Financial      Statements                                                                                                              F-5 - F-7   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| GLOBAL      WATAIRE INC., AND SUBSIDIARY                                                                                                                                                                            |   |         |           |   |            |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------------|--------|-----------------|--------|
| (A      NEVADA CORPORATION)                                                                                                                                                                                         |   |         |           |   |            |   |
| Buffalo,      New York                                                                                                                                                                                              |   |         |           |   |            |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |
| CONSOLIDATED      BALANCE SHEETS                                                                                                                                                                                    |   |         |           |   |            |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |
|                                                                                                                                                                                                                |   | Restated     |           |   |            |   |
|                                                                                                                                                                                                                |   | (Unaudited)  |           |   | Restated        |   |
|                                                                                                                                                                                                                |   | May      31, |           |   | August      31, |   |
|                                                                                                                                                                                                                |   | 2007         |           |   | 2006            |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |
| ASSETS                                                                                                                                                                                                              |   |         |           |   |            |   |
| Current      Assets                                                                                                                                                                                                 |   |         |           |   |            |   |
| Cash      and Cash Equivalents                                                                                                                                                                                      |   | $            | 139,819        |   |            | $      | — |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| Other      Assets                                                                                                                                                                                                   |   |         |           |   |            |   |   |   |
| Loan      Receivable                                                                                                                                                                                                |   |         | 50,000         |   |            |   | — |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| Total      Assets                                                                                                                                                                                                   |   | $            | 189,819        |   |            | $      | — |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' DEFICIT                                                                                                                                                                          |   |         |           |   |            |   |   |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| Current      Liabilities                                                                                                                                                                                            |   |         |           |   |            |   |   |   |
| Accounts      Payable                                                                                                                                                                                               |   | $            | 138,051        |   |            | $      | 157,253 |   |
| Accrued      Expenses                                                                                                                                                                                               |   |         | 10,325         |   |            |   | 18,500 |   |
| Due      to Directors                                                                                                                                                                                               |   |         | 495,717        |   |            |   | 490,281 |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| Total      Liabilities                                                                                                                                                                                              |   |         | 644,093        |   |            |   | 666,034 |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| Stockholders'      Deficit                                                                                                                                                                                          |   |         |           |   |            |   |   |   |
| Common      Stock:  $.001 Par; 800,000,000 SharesAuthorized;                                                                                                                                              |   |         |           |   |            |   |   |   |
|                           15, 839,360and      483,404, Issued and 12,839,360 |   |         |           |   |            |   |   |   |
|                           and      483,404 Outstanding, respectively              |   |         | 15,      839   |   |            |   | 484 |   |
| Common      Stock, Class B:  $.001 Par; 50,000 Shares      Authorized;                                                                                                                                    |   |         |           |   |            |   |   |   |
|                              -0-      Issued and Outstanding       |   |         | –– |   |            |   | –– |   |
| Preferred      Stock, Class A:  $.001 Par; 1,000,000 Shares Authorized; 66,000      and 100,000 Issued and                                                                                                |   |         |           |   |            |   |   |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
|                           Outstanding,      respectively                          |   |         | 66             |   |            |   | 100 |   |
| Preferred      Stock, Class B:  $.001 Par; 5,000,000 Shares Authorized;      1,000,000 Issued and Outstanding                                                                                             |   |         | 1,000          |   |            |   | 1,000 |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| Preferred      Stock, Class C:  $.001 Par; 15,000,000 Shares      Authorized;  -0- Issued and Outstanding                                                                                       |   |         | –– |   |            |   | –– |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| Preferred      Stock, Class D:  $.001 Par; 13,000,000 Shares                                                                                                                                              |   |         |           |   |            |   |   |   |
| Authorized;  -0-      Issued and Outstanding                                                                                                                                                              |   |         | –– |   |            |   | — |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| Additional      Paid-In Capital                                                                                                                                                                                     |   |         | 3,279,981      |   |            |   | 2,738,300 |   |
| Accumulated      Deficit                                                                                                                                                                                            |   |         | (3,748,160     | )      |            |   | (3,405,918 | ) |
| Treasury      Stock – 3,000,000 Shares at $.001 Par                                                                                                                                                           |   |         | (3,000         | )      |            |   | — |   |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| Total      Stockholders' Deficit                                                                                                                                                                                    |   |         | (454,274       | )      |            |   | (666,034 | ) |
|                                                                                                                                                                                                                |   |         |           |   |            |   |   |   |
| Total      Liabilities and Stockholders' Deficit                                                                                                                                                                    |   | $            | 189,819        |   |            | $      | — |   |

----

| GLOBAL      WATAIRE INC., AND SUBSIDIARY              |
|-------------------------------------------------------|
| (A      NEVADA CORPORATION)                           |
| Buffalo,      New York                                |
|                                                  |
|                                                  |
| CONSOLIDATED      STATEMENTS OF OPERATIONS(UNAUDITED) |

|                                         |   | Three      Months Ended |       |   | Nine      Months Ended |   |
|----------------------------------------------|--------|-------------------------|------------|--------|------------------------|--------|
|                                         |   | May      31,            |       |   | May      31,           |   |
|                                         |   | Restated                |       |   |                   |   |   | Restated |   |   |   |   |
|                                         |   | 2007                    |       |   | 2006                   |   |   | 2007 |   |   | 2006 |   |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |
| Revenues,      Net                           |   | $                       | —    |   |                   | $      | — |   |   | $ | — |   |   | $ | — |   |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of Goods Sold                      |   |                    | —    |   |                   |   | — |   |   |   | — |   |   |   | — |   |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      Profit                            |   |                    | —    |   |                   |   | — |   |   |   | — |   |   |   | — |   |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                     |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Consulting      Fees                         |   |                    | 55,000     |   |                   |   | 58,000 |   |   |   | 165,000 |   |   |   | 174,000 |   |
| General      and Administrative              |   |                    | 48,918     |   |                   |   | 62,221 |   |   |   | 142,027 |   |   |   | 155,260 |   |
| Interest      Expense                        |   |                    | 11,445     |   |                   |   | 7,069 |   |   |   | 35,215 |   |   |   | 19,365 |   |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Expenses                          |   |                    | 115,363    |   |                   |   | 127,290 |   |   |   | 342,242 |   |   |   | 348,625 |   |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      Before Provision for Taxes         |   |                    | ( 115,363  | )      |                   |   | (127,290 | ) |   |   | ( 342,242 | ) |   |   | (348,625 | ) |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for Taxes                     |   |                    | —    |   |                   |   | — |   |   |   | — |   |   |   | — |   |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from Operations                    |   |                    | ( 115,363  | )      |                   |   | (127,290 | ) |   |   | ( 342,242 | ) |   |   | (348,625 | ) |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued      Operations                 |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Gain      from Sale of Net Assets of         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   Subsidiary,      Net of Taxes    |   |                    | —    |   |                   |   | — |   |   |   | — |   |   |   | 194,742 |   |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss for the Period                 |   | $                       | ( 115,363  | )      |                   | $      | (127,290 | ) |   | $ | ( 342,242 | ) |   | $ | (153,883 | ) |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      Average Number of              |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   Common      Shares Outstanding - |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   Basic      and Diluted           |   |                    | 11,477,597 |   |                   |   | 483,404 |   |   |   | 6,081,066 |   |   |   | 483,404 |   |
|                                         |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss Per Common Share -             |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   Basic      and Diluted           |   | $                       | ( 0.01     | )      |                   | $      | ( 0.26 | ) |   | $ | ( 0.06 | ) |   | $ | ( 0.32 | ) |

----

| GLOBAL      WATAIRE INC., AND SUBSIDIARY               |   |     |     |   |   |   |
|--------------------------------------------------------|--------|----------|----------|--------|--------|--------|
| (A      NEVADA CORPORATION)                            |   |     |     |   |   |   |
| Buffalo,      New York                                 |   |     |     |   |   |   |
|                                                   |   |     |     |   |   |   |
|                                                   |   |     |     |   |   |   |
| CONSOLIDATED      STATEMENTS OF CASH FLOWS (UNAUDITED) |   |     |     |   |   |   |
|                                                   |   |     |     |   |   |   |
|                                                   |   | Restated |     |   |   |   |
| Nine      Months Ended May 31,                         |   | 2007     |     |   | 2006   |   |
|                                                   |   |     |     |   |   |   |
| Cash      Flows from Operating Activities              |   |     |     |   |   |   |
|                                                   |   |     |     |   |   |   |
| Net      Loss for the Period                           |   | $        | (342,242 | )      |   | $      | (153,883 | ) |
|                                                   |   |     |     |   |   |   |   |   |
| Non-Cash      Adjustments:                             |   |     |     |   |   |   |   |   |
| Gain      on Sale of Net Assets of Subsidiary          |   |     | —  |   |   |   | (194,742 | ) |
| Interest      on Directors/Stockholder Loans           |   |     | 35,215   |   |   |   | 19,365 |   |
|                                                   |   |     |     |   |   |   |   |   |
| Changes      in Assets and Liabilities:                |   |     |     |   |   |   |   |   |
| Accounts      Payable                                  |   |     | (19,202  | )      |   |   | 64 |   |
| Accrued      Expenses                                  |   |     | (8,175   | )      |   |   | 75,213 |   |
|                                                   |   |     |     |   |   |   |   |   |
| Net      Cash Flows from Operating Activities          |   |     | (334,404 | )      |   |   | (253,983 | ) |
|                                                   |   |     |     |   |   |   |   |   |
| Cash      Flows from Investing Activities              |   |     |     |   |   |   |   |   |
| Loan      Advance                                      |   |     | (50,000  | )      |   |   | — |   |
|                                                   |   |     |     |   |   |   |   |   |
| Cash      Flows from Financing Activities              |   |     |     |   |   |   |   |   |
| Proceeds      from Issuance of Regulation S Shares     |   |     | 518,787  |   |   |   | — |   |
| Advances      from Directors                           |   |     | 5,436    |   |   |   | 253,789 |   |
|                                                   |   |     |     |   |   |   |   |   |
| Net      Cash Flows from Financing Activities          |   |     | 524,223  |   |   |   | 253,789 |   |
|                                                   |   |     |     |   |   |   |   |   |
| Net      Change in Cash and Cash Equivalents           |   |     | 139,819  |   |   |   | (194 | ) |
|                                                   |   |     |     |   |   |   |   |   |
| Cash      and Cash Equivalents - Beginning of Period   |   |     | —  |   |   |   | 194 |   |
|                                                   |   |     |     |   |   |   |   |   |
| Cash      and Cash Equivalents - End of Period         |   | $        | 139,819  |   |   | $      | — |   |

----

| GLOBAL      WATAIRE INC., AND SUBSIDIARY                             |   |     |    |   |   |   |
|----------------------------------------------------------------------|--------|----------|---------|--------|--------|--------|
| (A      NEVADA CORPORATION)                                          |   |     |    |   |   |   |
| Buffalo,      New York                                               |   |     |    |   |   |   |
|                                                                 |   |     |    |   |   |   |
|                                                                 |   |     |    |   |   |   |
| CONSOLIDATED      STATEMENTS OF CASH FLOWS (UNAUDITED) - continued   |   |     |    |   |
|                                                                 |   |     |    |   |   |   |
|                                                                 |   | Restated |    |   |   |   |
| Nine      Months Ended May 31,                                       |   | 2007     |    |   | 2006   |   |
|                                                                 |   |     |    |
|                                                                 |   |     |    |   |   |   |
| Supplemental      Disclosures                                        |   |     |    |   |   |   |
|                                                                 |   |     |    |   |   |   |
| Interest      Paid                                                   |   | $        | — |   |   | $      | — |   |
| Income      Taxes Paid                                               |   | $        | — |   |   | $      | — |   |
|                                                                 |   |     |    |   |   |   |   |   |
|                                                                 |   |     |    |   |   |   |   |   |
| NON-CASH      INVESTING AND FINANCING ACTIVITIES                     |   |     |    |   |   |   |   |   |
|                                                                 |   |     |    |   |   |   |   |   |
| Acquisition      of Marketing Rights via Issuance of Preferred Stock |   | $        | — |   |   | $      | 15,000 |   |
|                                                                 |   |     |    |   |   |   |   |   |
| Assets      and Liabilities Transferred to Related Parties in        |   |     |    |   |   |   |   |   |
|   Connection      with Sale of Net Assets of Subsidiary:   |   |     |    |   |   |   |   |   |
| Accounts      Receivable                                             |   | $        | — |   |   | $      | 15,678 |   |
| Inventory                                                            |   | $        | — |   |   | $      | 190,830 |   |
| Accounts      Payable                                                |   | $        | — |   |   | $      | (15,457 | ) |
| Deferred      Revenue                                                |   | $        | — |   |   | $      | (7,037 | ) |
| Due      to Directors                                                |   | $        | — |   |   | $      | (173,333 | ) |
| Due      to Stockholder                                              |   | $        | — |   |   | $      | (145,212 | ) |
|                                                                 |   |     |    |   |   |   |   |   |
| Sale      of Net Assets of Subsidiary Paid via Forgiveness of        |   |     |    |   |   |   |   |   |
|   Liabilities:                                             |   |     |    |   |   |   |   |   |
| Due      to Directors                                                |   | $        | — |   |   | $      | (32,483 | ) |
| Due      to Stockholder                                              |   | $        | — |   |   | $      | (27,728 | ) |

----

----

| Note      A - | Basis      of Presentation |
|---------------|----------------------------|

|   | The      condensed consolidated financial statements of Global Wataire, Inc., and      Subsidiary (the “Company”) included herein have been prepared by the      Company, without audit, pursuant to the rules and regulations of the      Securities and Exchange Commission (the “SEC”). Certain information and      footnote disclosures normally included in consolidated financial      statements prepared in conjunction with generally accepted accounting      principles have been condensed or omitted pursuant to such rules and      regulations, although the Company believes that the disclosures are      adequate to make the information presented not misleading. These condensed      consolidated financial statements should be read in conjunction with the      annual audited consolidated financial statements and the notes thereto      included in the Company’s Form 10-KSB Annual Report, and other reports      filed with the SEC. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      accompanying unaudited interim consolidated financial statements reflect      all adjustments of a normal and recurring nature which are, in the opinion      of management, necessary to present fairly the financial position, results      of operations and cash flows of the Company for the interim periods      presented.  The results of operations for these periods are not      necessarily comparable to, or indicative of, results of any other interim      period of or for the fiscal year taken as a whole.  Certain      financial information that is not required for interim financial reporting      purposes has been omitted. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Reclassifications |
|--------|-------------------|

|   | Certain amounts in      the prior year consolidated financial statements have been reclassified to      conform with current year presentation.  The      reclassifications made to the prior year have no impact on the net income      (loss), or overall presentation of the consolidated financial      statements. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      B - | Going      Concern |
|---------------|--------------------|

|   | The      Company’s consolidated financial statements have been presented on the      basis that it is a going concern, which contemplates the realization of      assets and the satisfaction of liabilities in the normal course of      business. The Company has reported recurring losses from      operations.  As a result, there is an accumulated deficit of      $3,748,160 at May 31, 2007. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company’s continued existence is dependent upon its ability to raise      capital or acquire a marketable company.  The consolidated      financial statements do not include any adjustments that might be      necessary should the Company be unable to continue as a going      concern. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Note      C -Recently Issued AccountingStandards |
|--------|--------------------------------------------------|

|   | In      February 2006, the Financial Accounting Standards Board (“FASB”) issued      Statement of Financial Accounting Standard (“SFAS”) No. 155, “Accounting      for Certain Hybrid Financial Instruments – an amendment of FASB Statement      No. 133 and 140” (“SFAS 155”).  SFAS 155 resolves issues      addressed in Statement 133 Implementation Issue No. D1, “Application of      Statement 133 to Beneficial Interest in Securitized Financial      Assets.”  SFAS 155 is effective for all financial instruments      acquired or issued after the beginning of the first fiscal year that      begins after September 15, 2006.  As such, the Company is      required to adopt these provisions at the beginning of the fiscal year      ended August 31, 2008.  The Company is currently evaluating the      impact of SFAS 155 on its consolidated financial    instruments. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Note C - | Recently      Issued Accounting Standards –continued |
|----------|------------------------------------------------------------|

|   | In      March 2006, the FASB issued SFAS No. 156, “Accounting for Servicing of      Financial Assets – an amendment of FASB Statement No. 140” (“SFAS      156”).  SFAS 156 amends FASB Statement No. 140 with respect to      the accounting for separately recognized servicing assets and servicing      liabilities.  SFAS 156 requires all separately recognized      servicing assets and servicing liabilities to be initially measured at      fair value, if practical.  SFAS 156 is effective as of the      beginning of the first fiscal year that begins after September 15,      2006.  As such, the Company is required to adopt these      provisions at the beginning of the fiscal year ended August 31,      2008.  The Company is currently evaluating the impact of SFAS      156 on its consolidated financialstatements. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Note G      -   | Subsequent      Events |
|---------------------------|------------------------|

|   | On      June 28, 2007, the Company announced that it had terminated its planned      acquisition of DigiTar’s business (See NoteD.) |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

| Note H      - | Restatement      of Financials |
|---------------|--------------------------------|

|   | As      described in Note D the proposed purchase of DigiTar Wyoming was never      consummated.  For the year ended August 31, 2006 the completion      of the purchase was recorded as an investment of $65,618 and a gain on      subsidiary stock investment of $65,618.  Because this      transaction was rescinded this investment should not have been      recorded.  Total assets at August 31, 2006 have therefore been      reduced by $65,618 to $-0- and net loss at August 31, 2006 increased by      $65,618 to $263,996.  The May 31, 2007 financial statements have      also been restated to reverse the impairment of the DigiTar      investment.  The net loss for the nine months ended May 31, 2007      has been decreased by $65,618      to   $342,242. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

ITEM 2.    MANAGEMENT’SDISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.

----

----

| ·   | Pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect the transactions and dispositions of the assets of the      issuer; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with generally accepted      accounting principles, and that receipts and expenditures of the issuer      are being made only in accordance with authorizations of management and      directors of the issuer; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of the issuer's assets that      could have a material effect on the financial  statements. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Exhibit      No. | Identification of      Exhibit                                                                                                                                                                            |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1*            | Certification      of Sydney A. Harland, Chief Executive Officer of Global Wataire, Inc.,      pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the      Sarbanes-Oxley Act of 2002. |
| 31.2*            | Certification      of Edmund J. Gorman, Chief Financial Officer of Global Wataire, Inc.,      pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the      Sarbanes-Oxley Act of 2002.  |
| 32.1*            | Certification      of Sydney A. Harland, Chief Executive Officer of Global Wataire, Inc.,      pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the      Sarbanes-Oxley Act of 2002. |
| 32.2*            | Certification      of Edmund J. Gorman, Chief Financial Officer of Global Wataire, Inc.,      pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the      Sarbanes-Oxley Act of 2002.  |

|   |  Sydney      A. Harland,  Chief      Executive Officer |
|--------|------------------------------------------------------------------|