**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**





**FORM
      10-QSB**





**[
                X ]**
            **QUARTERLY
                REPORT UNDER SECTION 13 0R 15(****d****)
                OF THE SECURITIES EXCHANGE ACT OF
                1934**





For
      the
      quarterly period ended  **June
      30, 2006**





**[  
                ]**
            **TRANSITION
                REPORT UNDER SECTION 13 0R 15(****d****)
                OF THE SECURITIES EXCHANGE ACT OF
                1934**





For
      the
      transition period from________________ to
      ________________








**Commission
      file number** **000-33309**








**GLOBETRAC
                INC.**(Exact
                name of small business issuer as specified in its
                charter)








Incorporated
                in the State of Delaware
            33-0953557(State
                or other jurisdiction of incorporation or
                organization)
            (I.R.S.
                Employer Identification
                No.)1100
                Melville Street, Suite 600, Vancouver, British Columbia, V6E
                4A6(Address
                of principal executive offices)1-800-648-4287(Issuer’s
                telephone number)**n/a**(Former
                name, former address and former fiscal year, if changed since last
                report)





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 period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.


**[
      X ] Yes [   ] No**





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


**[  
      ] Yes [ X ] No**








**APPLICABLE
      ONLY TO CORPORATE ISSUERS**





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





**Class**
            **Outstanding
                at August 10, 2006**Common
                Stock - $0.001 par value
            22,190,000





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





**Page
          - 1**


**PART
      I - FINANCIAL INFORMATION**





**Item
      1.**  **Financial
      Statements.**







**GLOBETRAC
      INC.**





**CONSOLIDATED
      FINANCIAL STATEMENTS**








**AS OF** **JUNE
      30, 2006 AND DECEMBER 31, 2005**


**AND**


**FOR
      THE THREE AND SIX MONTHS ENDED JUNE 30, 2006** **and** **2005**





**(UNAUDITED)**












**CONSOLIDATED
      BALANCE SHEETS**





**CONSOLIDATED
      STATEMENTS OF
      OPERATIONS**




**CONSOLIDATED
      STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT AND COMPREHENSIVE
      INCOME**




**CONSOLIDATED
      STATEMENTS OF CASH FLOWS**





**NOTES
      TO CONSOLIDATED FINANCIAL
      STATEMENTS**





**Page
          - 2**




**GLOBETRAC
        INC.**
 **CONSOLIDATED
        BALANCE SHEETS**
 **UNAUDITED**


**June
                30,**
            
            **December
                31,****2006**
            
            **2005****ASSETS****CURRENT
                ASSETS**Cash
            $
            67,322
            
            $
            51,756Accounts
                receivableNet
                of allowance for doubtful accounts of $1,074 and $999
            
            29,653
            
            
            28,825**TOTAL
                ASSETS**
            $
            96,975
            
            $
            80,581**LIABILITIES
                AND STOCKHOLDERS' DEFICIT****CURRENT
                LIABILITIES**Accounts
                payable and accrued liabilities
            $
            116,457
            
            $
            115,616Convertible
                notes payable and related accrued interest due on
                demand
            
            1,811,413
            
            
            1,743,167Advances
                payable
            
            16,385
            
            
            16,385Due
                to related parties
            
            627,139
            
            
            613,008Note
                payable to related party
            
            500,000
            
            
            500,0003,071,394
            
            
            2,988,176Commitment
                and Contingencies**STOCKHOLDERS'
                DEFICIT**Preferred
                  stockAuthorized:
                  5,000,000 preferred shares, $0.001 par valueIssued
                  and outstanding: NoneCommon
                  stockAuthorized:
                200,000,000 common shares, $0.001 par valueIssued
                and outstanding: 22,190,000 common shares
            
            22,190
            
            
            22,190Additional
                paid in capital
            
            1,167,085
            
            
            1,167,085Accumulated
                deficit
            
            (4,186,469
            )
            
            (4,124,249
            )Accumulated
                other comprehensive income
            
            22,775
            
            
            27,379**Total
                Stockholders' Deficit**
            
            (2,974,419
            )
            
            (2,907,595
            )**TOTAL
                LIABILITIES AND STOCKHOLDERS' DEFICIT**
            $
            96,975
            
            $
            80,581


The
        accompanying notes are an integral part of these consolidated financial
        statements




**Page
          - 3**




**GLOBETRAC
        INC.**
 **CONSOLIDATED
        STATEMENTS OF OPERATIONS**
 **UNAUDITED**
   **Three
                  Months Ended**
              
              **Six
                  Months Ended****June
                  30,**
              
              **June
                  30,****2006**
              
              
              **2005**
              
              
              **2006**
              
              
              **2005****REVENUE**Royalty
                  income
              $
              60,917
              
              $
              82,143
              
              $
              90,708
              
              $
              94,484**OPERATING
                  EXPENSES**Administrative
                  expenses
              
              28,577
              
              
              16,704
              
              
              61,646
              
              
              27,949Selling
                  expenses
              
              -
              
              
              4,180
              
              
              -
              
              
              11,023Total
                  Operating Expenses
              
              28,577
              
              
              20,884
              
              
              61,646
              
              
              38,972Income
                  From Operations
              
              32,340
              
              
              61,259
              
              
              29,062
              
              
              55,512**OTHER
                  EXPENSES**Foreign
                  exchange transaction gains
              
              1,757
              
              
              (141
              )
              
              1,419
              
              
              (74
              )Interest
                  expense
              
              (46,499
              )
              
              (44,021
              )
              
              (92,701
              )
              
              (91,254
              )Total
                  Other Expenses
              
              (44,742
              )
              
              (44,162
              )
              
              (91,282
              )
              
              (91,328
              )**NET
                  (LOSS) INCOME FOR THE PERIOD**
              $
              (12,402
              )
              $
              17,097
              
              $
              (62,220
              )
              $
              (35,816
              )**BASIC
                  AND DILUTED (LOSS) EARNINGS PER SHARE:**
              $
              (0.01
              )
              $
              0.01
              
              $
              (0.01
              )
              $
              (0.01
              )**WIEGHTED
                  AVERAGE SHARES OUTSTANDING**
              
              22,190,000
              
              
              22,190,000
              
              
              22,190,000
              
              
              22,190,000




The
        accompanying notes are an integral part of these consolidated financial
        statements






**Page
          - 4**




**GLOBETRAC
        INC.**
 **CONSOLIDATED
        STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT AND
        COMPREHENSIVE INCOME**
 **FOR
        THE SIX MONTHS ENDED JUNE 30, 2006, DECEMBER 31, 2005 AND JUNE 30,
        2005**
 **UNAUDITED**
  **Common
                  Stock Issued****Accumulated****Additional**
              
              
              
              
              
              **Other****Number
                  of**
              
              
              
              
              
              **Paid-in**
              
              
              **Accumulated**
              
              
              **Comprehensive****Shares**
              
              
              **Amount**
              
              
              **Capital**
              
              
              **Deficit**
              
              
              **Income**
              
              
              **Total****Balance,
                  January 1, 2005**
              
              **22,190,000**
              
              **$**
              **22,190**
              
              **$**
              **1,167,085**
              
              **$**
              **(3,963,224**
              **)**
              **$**
              **19,830**
              
              **$**
              **(2,754,119**
              **)**Net
                  loss for the six month period ended,June
                  30, 2005
              
              -
              
              
              -
              
              
              -
              
              
              (35,816
              )
              
              -
              
              
              (35,816
              )Foreign
                  currency translation adjustments
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              4,837
              
              
              4,837**Balance,
                  June 30, 2005**
              
              **22,190,000**
              
              
              **22,190**
              
              
              **1,167,085**
              
              
              **(3,999,040**
              **)**
              
              **24,667**
              
              
              **(2,785,098**
              **)**Net
                  loss for the six month period ended,December
                  31, 2005
              
              -
              
              
              -
              
              
              -
              
              
              (125,209
              )
              
              **-**
              
              
              (125,209
              )Foreign
                  currency translation adjustments
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              2,712
              
              
              2,712**Balance,
                  December 31, 2005**
              
              **22,190,000**
              
              
              **22,190**
              
              
              **1,167,085**
              
              
              **(4,124,249**
              **)**
              
              **27,379**
              
              
              **(2,907,595**
              **)**Net
                  loss for the six month period ended,June
                  30, 2006
              
              -
              
              
              -
              
              
              -
              
              
              (62,220
              )
              
              -
              
              
              (62,220
              )Foreign
                  currency translation adjustments
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (4,604
              )
              
              (4,604
              )**Balance,
                  June 30, 2006**
              
              **22,190,000**
              
              **$**
              **22,190**
              
              **$**
              **1,167,085**
              
              **$**
              **(4,186,469**
              **)**
              **$**
              **22,775**
              
              **$**
              **(2,974,419**
              **)**




The
        accompanying notes are an integral part of these consolidated financial
        statements




**Page
          - 5**


**GLOBETRAC
        INC.**


**CONSOLIDATED
        STATEMENTS OF CA****SH
        FLOWS**
 **UNAUDITED**
   **Six
                  Months Ended****June
                  30,****2006**
              
              
              **2005****CASH
                  FLOWS USED IN OPERATING ACTIVITIES**Net
                  loss for the period
              $
              (62,220
              )
              $
              (35,816
              )Change
                  in operating assets and liabilities:Increase
                  in accounts receivable
              
              (828
              )
              
              (61,322
              )Increase
                  (Decrease) in accounts payable
              
              841
              
              
              (22,092
              )Increase
                  in accrued interest payable to related party
              
              24,794
              
              
              24,795Decrease
                  in accounts payable to related parties
              
              (10,663
              )
              
              (11,011
              )Increase
                  in accrued interest payable on convertible notes
              
              68,246
              
              
              66,184**NET
                  CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES**
              
              20,170
              
              
              (39,262
              )**CASH
                  FLOWS PROVIDED BY FINANCING ACTIVITIES**Increase
                  in advances payable to related party
              
              -
              
              
              23,266Increase
                  in advances payable
              
              -
              
              
              16,385**CASH
                  FLOWS PROVIDED BY FINANCING ACTIVITIES**
              
              -
              
              
              39,651Effect
                  of exchange rate changes on cash
              
              (4,604
              )
              
              4,837Increase
                  in cash
              
              15,566
              
              
              5,226Cash,
                  beginning of period
              
              51,756
              
              
              1,342**CASH,
                  END OF PERIOD**
              **$**
              **67,322**
              
              **$**
              **6,568**Supplemental
                  disclosure of cash flow information:Cash
                  paid during the period for:Income
                  taxes
              $
              -
              
              $
              -Interest
              $
              -
              
              $
              -




The
        accompanying notes are an integral part of these consolidated financial
        statements


**Page
          - 6**


**GLOBETRAC
      INC.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**JUNE
      30, 2006**


**(UNAUDITED)**








**NOTE
      1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION**





**Nature
      of Operations**


The
      Company was incorporated in the state of Delaware on March 2, 2000, and its
      principal executive offices are headquartered in Vancouver, Canada.





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





**Basis
      of Presentation**


The
      unaudited consolidated financial statements included herein have been prepared
      in accordance with generally accepted accounting principles for interim
      financial information and with the instructions to Form 10-QSB and Item 310(b)
      of Regulation S-B. In the opinion of management, all adjustments (consisting
      of
      normal recurring accruals) considered necessary for a fair presentation have
      been included. Operating results for the three month and six month periods
      ended
      June 30, 2006 and 2005 are not necessarily indicative of the results that may
      be
      expected for any interim period or the entire year. For further information,
      these consolidated financial statements and the related notes should be read
      in
      conjunction with the Company’s audited financial statements for the year ended
      December 31, 2005 included in the Company’s annual report on Form
      10-KSB.





**NOTE
      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**





A
      summary
      of the Company’s significant accounting policies is included in the Company’s
      2005 Annual Report. Additional significant accouting policies which affect
      the
      company or which have been developed since December 31, 2005 are summarized
      below:





**Principles
      of Consolidation**


The
      consolidated financial statements include the accounts of the Company and its
      wholly owned subsidiary Global Axxess Corporation Limited (“Global Axxess”).
      Investment in Global Axxess is carried at cost and all intercompany balances
      and
      transactions have been eliminated.





**Foreign
      Currency**


The
      financial statements of the Company’s foreign subsidiary are measured using
      British Pounds and the Euro as the functional currencies. Assets and liabilities
      of these subsidiaries are translated at exchange rates as of the balance sheet
      date. Revenues and expenses are translated at the average exchange rates for
      the
      period. The resulting cumulative translation adjustments have been recorded
      as a
      separate component of stockholder’s equity. Foreign currency transaction gains
      and losses are included in consolidated net losses.





**Accumulated
      Other Comprehensive Income**


Accumulated
      other comprehensive income reflects changes in equity that result from
      transactions and economic events from non-owner sources. Accumulated other
      comprehensive income for the current period represents foreign currency
      translation items associated with the Company’s English and Irish operations.


**Page
          - 7**





**GLOBETRAC
      INC.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(UNAUDITED)**








**NOTE
      2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued**





**Accounting
      Estimates**


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





**Accounts
      Receivable**


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





**Revenue
      Recognition**


Royalty
      revenue is recognized when it is received or when the royalty income is
      determinable and collectability is reasonably assured.





**New
      Accounting Pronouncements**


In
      February 2006, the FASB issued SFAS No. 155 “Accounting for Certain Hybrid
      Financial Instruments - an amendment of FASB Statements No. 133 and 140’. This
      Statement amends FASB Statements No. 133, Accounting for Derivative Instruments
      and Hedging Activities, and No. 140, Accounting for Transfers and Servicing
      of
      Financial Assets and Extinguishments of Liabilities. This Statement resolves
      issues addressed in Statement 133 Implementation Issue No. D1, “Application of
      Statement 133 to Beneficial Interests in Securitized Financial Assets.” This
      statement is effective for all financial instruments acquired or issued after
      the beginning of an entities first fiscal year that begins after September
      15,
      2006. The Company does not expect adoption of SFAS 155 to have a material impact
      on its financial condition or results of operations.





In
      March 2006, the Financial Accounting Standards Board (“FASB”) issued SFAS
      No. 156, “Accounting for Servicing of Financial Assets — an amendment of
      FASB Statement No. 140.” SFAS No. 156 amends SFAS No. 140,
“Accounting for Transfers and Servicing of Financial Assets and Extinguishment
      of Liabilities,” with respect to accounting for separately recognized servicing
      assets and servicing liabilities.  SFAS No. 156 is effective for
      fiscal years that begin after September 15, 2006, with early adoption
      permitted as of the beginning of an entity’s fiscal year. The Company does not
      have any servicing assets or servicing liabilities and, accordingly, the
      adoption of SFAS No. 156 will not have any effect on the results of our
      operations, financial condition or cash flows.










**Page
          - 8**





**GLOBETRAC
      INC.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(UNAUDITED)**


---



**NOTE
      3 - CONVERTIBLE NOTES PAYABLE**




At
      June
      30, 2006 and December 31, 2005 the Company had a note payable in the amount of
      $162,149 plus accrued interest of $32,394 and $25,962. This note is unsecured,
      bears interest at 8%, is payable on demand and, at the option of the Company,
      is
      convertible into common shares of the Company at $0.50 per share.





At
      June
      30, 2006 and December 31, 2005, the Company had notes payable totaling $511,660
      plus accrued interest of $102,164 and $81,804. These notes are unsecured, bear
      interest at 8%, are payable on demand and, at the option of the Company, are
      convertible into common shares of the Company at $0.50 per share.





At
      June
      30, 2006 and December 31, 2005, the Company had notes payable totaling $835,940
      plus accrued interest of $167,106 and $125,652. These notes are unsecured,
      bear
      interest at 10% are payable on demand and at the option of either the Company
      or
      the lender are convertible into common shares of the Company at market price
      less 20%, with a minimum conversion price of $0.15 per share.





**NOTE
      4 - DUE TO RELATED PARTIES**




At
      June
      30, 2006 and December 31, 2005, the Company was indebted to a company sharing
      a
      common officer with the Company in the amount of $4,755. This debt is unsecured,
      non-interest bearing and has no fixed terms of repayment.





At
      June
      30, 2006 and December 31, 2005, the Company was indebted to a company controlled
      by an officer of the Company in the amount of $156,528 and $169,547. This debt
      is unsecured, non-interest bearing and has no fixed terms of repayment. During
      the six month periods ended June 30, 2006 and 2005, this same company was paid
      $32,100 and $nil for administrative services.




At
      June
      30, 2006 and December 31, 2005, the Company was indebted to a company sharing
      a
      common officer in the amounts of $14,877 and $13,828. This debt is unsecured,
      non-interest bearing and has no fixed terms of repayment.





At
      June
      30, 2006 and December 31, 2005, the Company was indebted to a company controlled
      by a former officer of the Company in the amounts of $18,532 and $17,226. This
      debt is unsecured, non-interest bearing and has no fixed terms of repayment.





At
      June
      30, 2006 and December 31, 2005, the Company was indebted to a former director
      in
      the amount of $239,090. This debt is unsecured, non-interest bearing and has
      no
      fixed terms of repayment.




At
      June
      30, 2006 and December 31, 2005, the Company had advances payable to a related
      party in the amount of $13,766. These advances are non-interest bearing, have
      no
      fixed terms of repayment and are unsecured.





**NOTE
      5 - NOTE PAYABLE RELATED PARTY**





At
      June
      30, 2006 and December 31, 2005, the Company had a note payable to a director
      of
      the Company in the amount of $500,000, plus accrued interest of $179,589 and
      $154,795. This note is unsecured, bears interest at 10% and was due November
      27,
      2004.





**NOTE
      6 - ADVANCES PAYABLE**





At
      June
      30, 2006 and December 31, 2005, the Company had advances payable of $16,385,
      these advances are unsecured, are non-interest bearing and have no fixed terms
      of repayment.


**Page
          - 9**





**GLOBETRAC
      INC.**


**NOTES
      TO CONSOLIDATED FINANCIAL STATEMENTS**


**(UNAUDITED)**


---



**NOTE
      7 - GOING CONCERN**





The
      Company was in the business of selling, marketing, distributing and installing
      global wireless tracking and telematics equipment in Europe until November
      1,
      2004 when they exchanged their rights to sell, market, distribute and install
      global wireless tracking and telematics equipment in Europe as well as specific
      assets and liabilities, for a royalty of 6% on future gross sales to current
      customers and qualified potential customers in Europe. There is no cap on the
      royalties and royalties are to be paid for the duration of 11 years, ending
      October 31, 2015. The Company has accumulated a deficit of $4,186,469 since
      inception and additional financing will be required by the Company to fund
      and
      support its operations. Management plans to mitigate its losses in future years
      by significantly reducing its operating expenses and seeking out new business
      opportunities. However, there is no assurance that the Company will be able
      to
      obtain additional financing, reduce their operating expenses or be successful
      in
      locating or acquiring a viable business. The financial statements do not include
      any adjustments that might result from the outcome of those uncertainties.








**Page
          - 10**









**Item
      2.**  **Management’s Discussion and Analysis of Financial Condition and Results of
      Operations**


THE
      FOLLOWING IS A DISCUSSION AND ANALYSIS THAT MANAGEMENT BELIEVES IS RELEVANT
      TO
      AN ASSESSMENT AND UNDERSTANDING OF THE CONSOLIDATED RESULTS OF OPERATIONS AND
      FINANCIAL CONDITION OF GLOBETRAC AND ITS SUBSIDIARY (COLLECTIVELY, “GLOBETRAC”
OR THE “COMPANY”) FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2006 AND
      2005. THE FOLLOWING SHOULD BE READ IN CONJUNCTION WITH THE CONSOLIDATED
      FINANCIAL STATEMENTS AND RELATED NOTES APPEARING ELSEWHERE HEREIN AND
      MANAGEMENT’S DISCUSSION AND ANALYSIS INCLUDED IN GLOBETRAC’S ANNUAL REPORT ON
      FORM 10-KSB FOR THE YEAR ENDED DECEMBER 31, 2005.





**Overview**





At
      June
      30, 2006, our only source of income is a six percent commission/royalty that
      we
      receive from WebTech Wireless Inc. (“WebTech”), based on all qualified sales of
      any product or service offered by WebTech. A qualified sale means all of
      WebTech’s invoiced sales of products or services to a customer that has ordered
      at least one product or service before November 26, 2005, whether sold by
      WebTech or by a licensee, affiliate or agent of Webtech. A customer is a list
      of
      customers that was provided to WebTech by GlobeTrac. There is no cap on the
      royalty receivable and royalties are to be paid by WebTech for 11 years,
      beginning November 1, 2004 and ending October 31, 2015.





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





We
      have
      accumulated a deficit of approximately $4.2 million to date and will require
      additional financing to continue operations and to seek out new business
      opportunities. We plan to mitigate our losses in future years through the
      receipt of the royalty payments from Webtech and locating a viable business.





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





**Financial
      Condition**





During
      the six months ended June 30, 2006, we had a net loss of $62,220. As of June
      30,
      2006, we had a cash balance of $67,322 and accounts receivable of $29,653.
      When
      these current assets are offset against our current obligations of $116,457
      in
      accounts payable and accrued liabilities, $1,811,413 in convertible notes
      payable on demand, $16,385 in advances payable, $627,139 in amounts due to
      related parties and a $500,000 note payable to a related party, we are left
      with
      a working capital deficit of $2,974,419.





We
      believe that our cash and cash equivalents as of the date of this filing are
      not
      sufficient to satisfy our working capital needs for the next year. Over the
      next
      year we plan to seek new business opportunities and collect royalty payments
      from WebTech. We anticipate funding our working capital needs for the next
      year
      through the royalty payments from WebTech, the equity capital markets, private
      advances and loans. Although the foregoing actions are expected to cover our
      anticipated cash needs for working capital and capital expenditures for at
      least
      the next year, no assurance can be given that we will be able collect any
      royalty payments or raise sufficient cash to meet our cash requirements.





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





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





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




**Page
          - 11**




**Related-Party
      Transactions**





Included
      in the $627,139 that is due to related parties at June 30, 2006 are $414,151
      in
      professional, consulting and management fees that were accrued prior to 2006,
      $33,399 in advances and $179,589 in interest on the $500,000 note payable to
      a
      related party. None of the amounts due to related parties bear interest, have
      any fixed terms of repayment or are secured. The $500,000 note payable to a
      related party bears interest at 10%, is unsecured and was payable November
      27,
      2004. We do not anticipate paying this note unless we achieve profitable
      operations, raise sufficient working capital, or issue shares for debt to cover
      this obligation.





**COMPARISON
      OF THE THREE AND SIX MONTHS ENDED JUNE 30, 2006**





Overall
      Results of Operations





For
      the
      three months ended June 30, 2006, we had a net loss of $12,402 or a $(0.01)
      net
      loss per share, which was an increase of $29,499 in net loss from our net
      earnings of $17,097 or a $0.01 net earnings per share for the three months
      ended
      June 30, 2005. The increase in net loss for the three months ended June 30,
      2006, as compared to the three months ended June 30, 2005 was primarily the
      result of an increased professional fees and a decrease in revenue.





For
      the
      six months ended June 30, 2006, we had a net loss of $62,220 or a $(0.01) net
      loss per share, which was an increase of $26,404 in net loss from our net loss
      of $35,816 or a ($0.01) net loss per share for the six months ended June 30,
      2005. The increase in net loss for the six months ended June 30, 2006 as
      compared to the six months ended June 30, 2005 was primarily the result of
      increased professional fees and decreased revenue offset by a decrease in
      marketing expenses. If we are not successful in acquiring a viable business
      during 2006, we expect our net loss to increase by approximately $60,000 due
      to
      an anticipated increase in professional fees. Over the course of the year we
      expect our revenue and interest costs to remain the same.





Revenues





Our
      revenue decreased by $21,226 or 26% from $82,143 for the three months ended
      June
      30, 2005 to $60,917 for the three months ended June 30, 2006.





Our
      revenue decreased by $3,776 or 4% from $94,484 for the six months ended June
      30,
      2005 to $90,708 for the six months ended June 30, 2006.





All
      of
      the revenue was the result of a 6% royalty which relates to the Termination
      and
      Transfer Agreement signed on October 18, 2005. We expect our royalty income
      to
      remain the same during 2006. We do not expect revenue to increase, unless we
      locate a new revenue generating business opportunity.








Operating
      Expenses





Our
      operating expenses increased by $7,693 or 37% from $20,884 for three months
      ended June 30, 2005 to $28,577 for the three months ended June 30, 2006.





Our
      operating expenses increased by $22,674 or 58% from $38,972 for six months
      ended
      June 30, 2005 to $61,646 for the six months ended June 30, 2006.





The
      increase in operating expenses was due to primarily to an increase in
      professional fees. We expect our operating costs to increase during 2006 by
      approximately $60,000, due to higher professional fees.





Interest
      Expense





Our
      interest expense increased by $2,478 or 6% from $44,021 for the three months
      ended June 30, 2005 to $46,499 for the three months ended June 30, 2006.





Our
      interest expense increased by $1,447 or 2% from $91,254 for the six months
      ended
      June 30, 2005 to $92,701 for the six months ended June 30, 2006.





We
      expect
      interest expense to remain the same during 2006 unless some of the convertible
      notes are converted into common shares of the Company.




**Page
          - 12**




**Off-Balance-Sheet
      Arrangements**





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





**Liquidity
      and Capital Resources**





As
      of
      June 30, 2006, we had a cash balance of $67,322 and positive cash flows from
      operations of $20,170 for the six months then ended. During the six months
      ended
      June 30, 2006, we funded our operations through revenue from royalty payments
      we
      received from WebTech of $90,708.





The
      notes
      to our consolidated financial statements as of June 30, 2006, contain footnote
      disclosure regarding our uncertain ability to continue as a going concern.
      We
      have not generated sufficient revenues to cover our expenses, and we have
      accumulated a deficit of $4,186,469. As of June 30, 2006, we had $3,071,394
      in
      current liabilities, when this is offset against our current assets of $96,975
      we are left with a working capital deficit of $2,974,419 and as such we cannot
      assure that we will succeed in locating a viable business opportunity or
      achieving a profitable level of operations sufficient to meet our ongoing cash
      needs. We have, however, successfully generated sufficient working capital
      and
      liquidity through royalty revenues and advances of cash until the date of this
      filing, and believe that we can continue to do so for the next year.





Below
      is
      a discussion of our sources and uses of funds for the six months ended June
      30, 2006.





**Net
      Cash Used In Operating Activities**





Net
      cash
      provided by operating activities during the six months ended June 30, 2006
      was
      $20,170, this cash was primarily provided by an increase in accounts payable
      and
      accrued liabilities of $841, an increase in accrued interest payable to a
      related party of $24,794 and an increase in accrued interest on convertible
      notes of $68,246, offset by a net loss of $62,220, an increase in accounts
      receivable of $828, and a decrease in amounts due to related parties of $10,663.


Net
      Cash Used In Investing
      Activities




We
      did not have any investing activities during the six
      months ended June 30, 2006.




**Net
      Cash Provided By Financing Activities**




We
      did not have any financing activities during the six
      months ended June 30, 2006.




**Contingencies
      and Commitments**





We
      had no
      contingencies or long-term commitments at June 30, 2006.





**CRITICAL
      ACCOUNTING ESTIMATES**





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




**Accounts
      Receivable**





At
      June
      30, 2006, accounts receivable consists of estimated royalty revenue for the
      months of May and June 2006. Our estimate was based on a verbal estimate we
      received from WebTech which amount is consistent with the amounts we have
      received from WebTech since November 2004. As of the date of filing we had
      not
      received payment of the accrued royalty revenue and thus our estimated accrual
      could vary materially from the amount we accrued at June 30, 2006.





**Page
          - 13**




**Revenue
      Recognition**





We
      recognized our royalty revenue when it was received and accrue for royalty
      revenues that we believe  to be reasonably collectable.





**Contractual
      Obligations**





The
      following table provides a summary of our debt obligation as of June 30, 2006.
      We have not included repayment of our convertible notes payable because these
      notes are repayable on demand and we do not know when or if payment will be
      demanded.





Contractual
      Payment Due by Period


2006





Note
      Payable to Related Party    $679,589




**Internal
      and External Sources of Liquidity**





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





**Inflation**





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





**Uncertainties
      relating to Forward Looking Statements**





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





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





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





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





**Item
      3. Controls and Procedures.**





**Disclosure
      Controls and Procedures**





John
      daCosta, GlobeTrac’s Chief Executive Officer and Chief Financial Officer, has
      evaluated the effectiveness of GlobeTrac’s disclosure controls and procedures
      (as such term is defined in Rules 13a-15 and 15d-15 under the Securities
      Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered
      by this quarterly report (the “Evaluation Date”).




Based
        on that evaluation, Mr. daCosta has concluded that our disclosure controls
        and procedures are effective to provide reasonable assurance that information
        we
        are required to disclose in reports that we file or submit under the Exchange
        Act is recorded, processed, summarized and reported within the time periods
        specified in Securities and Exchange Commission rules and forms, and that
        such
        information is accumulated and communicated to our management, including
        Mr.
        daCosta as appropriate, to allow timely decisions regarding required
        disclosure.




**Page
          - 14**




**Changes
      in Internal Controls**





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





**PART
      II - OTHER INFORMATION**





**Item
      1. Legal Proceedings.**





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





**Item
      2. Unregistered Sale of Equity Securities and Use of
      Proceeds.**





During
      the quarter of the fiscal year covered by this report, (i) GlobeTrac did not
      modify the instruments defining the rights of its shareholders, (ii) no rights
      of any shareholders were limited or qualified by any other class of securities,
      and (iii) GlobeTrac did not sell any unregistered equity securities.





**Item
      3. Defaults Upon Senior Securities.**





During
      the quarter of the fiscal year covered by this report, no material default
      has
      occurred with respect to any indebtedness of GlobeTrac. Also, during this
      quarter, no material arrearage in the payment of dividends has
      occurred.





**Item
      4. Submission of Matters to a Vote of Security Holders.**





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





**Item
      5. Other Information.**





During
      the quarter of the fiscal year covered by this report, no information was
      required to disclosed in a report on Form 8-K, which was not
      reported.





**Item
      6. Exhibits.**





**(a)**
            **Index
                to and Description of
                Exhibits**





All
      Exhibits required to be filed with the Form 10-QSB are incorporated by reference
      to GlobeTrac’s previously filed Form SB-2 and Form 10-KSB.





**Exhibit**
            **Description**
            **Status****3.1**
            Articles
                of Incorporation filed as an Exhibit to GlobeTrac’s registration statement
                on Form SB-2 filed on August 2, 2001, and incorporated herein by
                reference.
            Filed**3.2**
            Bylaws
                filed as an Exhibit to GlobeTrac’s registration statement on Form SB-2
                filed on August 2, 2001, and incorporated herein by
                reference.
            Filed**3.3**
            Certificate
                of Amendment to Articles of Incorporation changing the Issuer’s name to
                GlobeTrac Inc. filed as an exhibit to GlobeTrac’s Form 10-KSB filed on
                April 15, 2003, and incorporated herein by reference.
            Filed**10.1**
            Master
                Distributorship Agreement dated June 19, 2002 among WebTech Wireless
                International, WebTech Wireless Inc. and Global Axxess Corporation
                Limited
                filed as an attached exhibit to GlobeTrac’s Form 8-K (Current Report)
                filed on September 11, 2002, and incorporated herein by
                reference.
            Filed






**Page
          - 15**






**Exhibit**
            **Description**
            **Status**


**10.2**
            Loan
                Agreement dated November 27, 2002 between GlobeTrac Inc. and David
                Patriquin with attached promissory note dated November 27, 2002 filed
                as
                an exhibit to GlobeTrac’s Form 10-KSB (Annual Report) filed on April 15,
                2003, and incorporated herein by reference.
            Filed**10.3**
            Amendment
                Letter Agreement dated June 4, 2003, between WebTech Wireless
                International Inc. and Globetrac Limited for the purpose of amending
                terms
                of the Master Distributorship Agreement filed as an exhibit to GlobeTrac’s
                Form 10-KSB (Annual Report) filed on April 7, 2004, and incorporated
                herein by reference.
            Filed**10.4**
            Amendment
                Letter Agreement dated March 8, 2004 between WebTech Wireless
                International Inc. and Globetrac Limited for the purpose of amending
                terms
                of the Master Distributorship Agreement filed as an exhibit to GlobeTrac’s
                Form 10-KSB (Annual Report) filed on April 7, 2004, and incorporated
                herein by reference.
            Filed**10.5**
            Letter
                Agreement dated November 26, 2004 among Global Axxess Corporation
                Limited,
                WebTech Wireless International and WebTech Wireless Inc., filed as
                an
                exhibit to GlobeTrac’s Form 8-K (Current Report) filed on December 22,
                2004, and incorporated herein by reference.
            Filed**10.6**
            Termination
                and Transfer Agreement dated November 1, 2004 among GlobeTrac Inc.,
                Global
                Axxess Corporation Limited, Globetrac Limited, WebTech Wireless Inc.,
                and
                WebTech Wireless International, filed as an exhibit to GlobeTrac’s Form
                8-K (Current Report) filed on November 14, 2005, and incorporated
                herein
                by reference.
            Filed**31**
            Certifications
                pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
            Included**32**
            Certification
                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                906 of
                the Sarbanes-Oxley Act of 2002.
            Included**99.1**
            Code
                of Ethics filed as an exhibit to GlobeTrac’s Form 10-KSB filed on April
                15, 2003, and incorporated herein by reference.
            Filed














**SIGNATURES**





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






**GLOBETRAC
      INC.**






By:*/s/
      John daCosta*


Name:  **John
      daCosta**


Title **:**  **CEO
      and CFO**


Dated:  **August
      11, 2006**





**Page
          - 16**







**Exhibit
      31**










**Page
          - 17**




**GLOBETRAC
      INC.**


**CERTIFICATIONS
      PURSUANT TO**


**SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002**






**CERTIFICATION**






I,
      John
      daCosta, certify that:




1.
 
      I have reviewed this quarterly report on Form 10-QSB of GlobeTrac Inc.;




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




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




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




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




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




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




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




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




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




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






Date :
      August
      11, 2006




*/s/
      John daCosta*


John
      daCosta


Chief
      Executive Officer




**Page
          - 18**




**GLOBETRAC
      INC.**


**CERTIFICATIONS
      PURSUANT TO**


**SECTION
      302 OF THE SARBANES-OXLEY ACT OF 2002**






**CERTIFICATION**




I,
      John
      daCosta, certify that:




1.
 
      I have reviewed this quarterly report on Form 10-QSB of GlobeTrac Inc.;




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




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




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




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




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




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




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




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




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




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






Date :
      August
      11, 2006




*/s/
      John daCosta*


John
      daCosta


Chief
      Financial Officer




**Page
          - 19**







**Exhibit
      32**







**Page
          - 20**







**CERTIFICATION
      PURSUANT TO**


**18
      U.S.C. SECTION 1350,**


**AS
      ADOPTED PURSUANT TO**


**SECTION
      906 OF THE SARBANES-OXLEY ACT OF 2002**






In
      connection with the Quarterly Report of GlobeTrac Inc. (“GlobeTrac”) on Form
      10-QSB for the period ending June 30, 2006 as filed with the Securities and
      Exchange Commission on the date hereof (the “Report”), I, John daCosta,
      President and Chief Executive Officer of GlobeTrac, certify, pursuant to s.906
      of the Sarbanes-Oxley Act of 2002, that:




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




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






*/s/
      John daCosta*


John
      daCosta


Chief
      Executive Officer






August
      11, 2006




**Page
          - 21**




**CERTIFICATION
      PURSUANT TO**


**18
      U.S.C. SECTION 1350,**


**AS
      ADOPTED PURSUANT TO**


**SECTION
      906 OF THE SARBANES-OXLEY ACT OF 2002**






In
      connection with the Quarterly Report of GlobeTrac Inc. (“GlobeTrac”) on Form
      10-QSB for the period ending June 30, 2006 as filed with the Securities and
      Exchange Commission on the date hereof (the “Report”), I, John daCosta,
      Secretary, Treasurer, and Chief Financial Officer of GlobeTrac, certify,
      pursuant to s.906 of the Sarbanes-Oxley Act of 2002, that:




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




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






*/s/
      John daCosta*


John
      daCosta


Chief
      Financial Officer




August
      11, 2006







**Page
          - 22**