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






September 30, 2003





[    ]
transition report under section 13 0r 15(d) of the securities exchange act of 1934














Commission file number 000-33309






Globetrac Inc.(Exact name of small business issuer as specified in its charter)






Incorporated in the State of Delaware
(State or other jurisdiction of incorporation or organization)
33-0953557
(I.R.S. Employer Identification No.)42 Brook Street, London, W1K 5DB, United Kingdom
(Address of principal executive offices)44-20-7529-1460
(Issuers telephone number)(Former name, former address and former fiscal year, if changed since last report)








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 November 13, 2003Common Stock - $0.001 par value
21,940,000




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 at September 30, 2003 and December 31, 2002 and

for the three and nine month periods ended September 30, 2003 and 2002

(Unaudited)





**Page - 2**






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 - 3**








GLOBETRAC INC.CONSOLIDATED BALANCE SHEETS(Unaudited)September 30,
December 31,2003
2002ASSETSCURRENT ASSETSCash
$               71,695
$            210,229Accounts receivable,net of allowance for doubtful accounts of $0
106,263
70,617Inventory
201,753
170,682Prepaids
50,586
91,771430,297
543,299Fixed assets, net of $2,772 and $1,318 accumulated depreciation
7,799
3,981TOTAL ASSETS
$             438,096
$            547,280LIABILITIES AND STOCKHOLDERS' DEFICITCURRENT LIABILITIESAccounts payable and accrued liabilities
$               90,841
$            153,810Loans and advances payable
316,830
-Convertible notes payable
661,564
271,316Due to related parties
108,600
45,3281,177,835
470,454Convertible notes payable
-
354,247Due to related party
500,000
500,0001,677,835
1,324,701Commitment and ContingenciesSTOCKHOLDERS' DEFICITShare capitalAuthorized200,000,000 common shares, $0.001 par value5,000,000 preferred shares, $0.001 par valueIssued and outstanding or subscribed:21,790,000 and 21,040,000 common shares
21,790
21,040Additional paid in capital
767,485
18,235Accumulated deficit
(2,045,507)
(826,637)Other comprehensive income:Foreign currency translation adjustment
16,493
9,941Total Stockholders' Deficit
(1,239,739)
(777,421)TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
$             438,096
$            547,280The accompanying notes are an integral part of these financial statements






**Page - 4**






GLOBETRAC INC.CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)Three Months Ended
Nine Months EndedSeptember 30,
September 30,2003
2002
2003
2002REVENUESales
$   236,762
$             -
$     369,387
$           630Cost of Goods Sold
163,349
-
253,544
-Gross Profit
73,413
-
115,843
630OPERATING EXPENSESAdministrative expenses
390,511
164,419
1,109,382
175,293Selling expenses
83,902
96,981
134,535
101,329Charge for impairment of goodwill
-
174,828
-
174,828Total Operating Expenses
474,413
436,228
1,243,917
451,450Loss from operations
(401,000)
(436,228)
(1,128,074)
(450,820)**OTHER EXPENSES**Foreign exchange transaction losses
(18,474)
-
(16,716)
-Interest expense
(24,781)
-
(73,280)
-Net loss for the period before tax provision
(444,255)
(436,228)
(1,218,070)
(450,820)Provision for income tax
(800)
-
(800)
-NET LOSS FOR THE PERIOD
$  (445,055)
$   (436,228)
$ (1,218,870)
$    (450,820)BASIC AND DILUTEDLOSS PER SHARE
$        (0.02)
$         (0.02)
$         (0.06)
$         (0.02)WEIGHTED AVERAGESHARES OUTSTANDING
21,040,000
21,040,000
21,040,000
21,040,000The accompanying notes are an integral part of these financial statements






**Page - 5**






GLOBETRAC INC.CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT AND COMPREHENSIVE INCOMEFor the nine month periods ended September 30, 2003 and 2002(Unaudited)
  Common Stock Issued
Common Stock SubscribedAccumulatedAdditional



OtherNumber

Paid-in
Number

Accumulated
Comprehensiveof Shares
Amount
Capital
of Shares
Amount
Deficit
Income
TotalBalance, October 1, 2001
6,210,000
$   6,210
$       32,565
-
$             -
$     (22,324)
$                      -
$      16,451Net loss for the three month period ended         December 31, 2001
-
-
-
-
-
(11,723)
-
(11,723)Balance, December 31, 2001
6,210,000
6,210
32,565
-
-
(34,047)
-
4,728Cost of occupancy contributed by officer
-
-
500
-
-
-
-
500Issuance of three for one common stock
dividend, May 27, 2002
18,630,000
18,630
(18,630)
-
-
-
-
-Common shares cancelled, June 21, 2002
(3,800,000)
(3,800)
3,800
-
-
-
-
-Net loss for the nine month period ended
September 30, 2002
-
-
-
-
-
(450,820)
-
(450,820)Foreign currency translation adjustments
-
-
-
-
-
-
(3,644)
(3,644)Balance, September 30, 2002
21,040,000
21,040
18,235
-
-
(484,867)
(3,644)
(449,236)Net loss for the three month period ended
December 31, 2002
-
-
-
-
-
(341,770)
-
(341,770)Foreign currency translation adjustments
-
-
-
-
-
-
13,585
13,585Balance, December 31, 2002
21,040,000
21,040
18,235
-
-
(826,637)
9,941
(777,421)Common stock subscribed
-
-
-
750,000
750,000
-
-
750,000Net loss for the nine month period ended
September 30, 2003
-
-
-
-
-
(1,218,870)
-
(1,218,870)Foreign currency translation adjustments
-
-
-
-
-
-
6,552
6,552Balance, September 30, 2003
21,040,000
$ 21,040
$      18,235
750,000
$  750,000
$(2,045,507)
$        16,493
$ (1,239,739)
 The accompanying notes are an integral part of these financial statements
  **Page - 6**









GLOBETRAC INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)Nine Months EndedSeptember 30,2003
2002CASH FLOWS FROM OPERATING ACTIVITIESNet loss for the period
$   (1,218,870)
$     (450,820)Adjustment to reconcile net loss to net cashused in operating activities:Occupancy cost contributed by an officer
-
500Depreciation
1,448
-Change in operating assets and liabilities:(Increase) in accounts receivable
(35,646)
(19,898)(Increase) in inventory
(31,071)
(123,811)Decrease (Increase) in prepaids
41,185
(7,944)(Decrease) Increase in accounts payable
(62,969)
134,200Increase in accrued interest payable to related party
37,397
-Increase in accounts payable to related parties
25,875
-Increase in accrued interest payable on convertible debt
36,001
-NET CASH USED IN OPERATING ACTIVITIES
(1,206,650)
(467,773)CASH FLOWS FROM FINANCING ACTIVITIESLoans and advances payable
316,830
420,080Due to related company
-
57,405Shares subscribed
750,000
-**NET CASH PROVIDED BY FINANCING ACTIVITIES**
1,066,830
477,485NET CASH USED IN INVESTING ACTIVITIESPurchase of fixed assets
(5,266)
-Effect of exchange rate changes on cash
6,552
(3,644)(DECREASE) INCREASE IN CASH
(138,534)
6,068CASH, BEGINNING OF PERIOD
210,229
9,534CASH, END OF PERIOD
$         71,695
$        15,602Supplemental disclosure of cash flow information:Income taxes paid
$             800
$               -The accompanying notes are an integral part of these financial statements








**Page - 7**















GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



September 30, 2003 and 2002



NOTE 1  NATURE OF OPERATIONS AND BASIS OF PRESENTATION



Nature of Operations



GlobeTrac Inc. (the Company) is in the business of selling, marketing, distributing and installing global wireless tracking and telematics equipment.  The Company was incorporated in the state of Delaware on March 2, 2000, and its principal executive offices are headquartered in London, England.



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 and nine month periods ended September 30, 2003 and 2002 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, 2002 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 2002 Annual Report.  Additional significant accounting policies which affect the Company or which have been developed since December 31, 2002 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 as the functional currency.  Assets and liabilities of the subsidiary are translated at exchange rates as of the balance sheet date.  Revenues and expenses are translated at 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.



Comprehensive Income



The Company presents comprehensive income in its Consolidated Statements of Changes in Stockholders Deficit and Comprehensive Income in accordance with Statement of Financial Accounting Standard No. 130, Reporting Comprehensive Income (SFAS 130).  Total comprehensive income includes, in addition to net loss, changes in equity that are excluded from the consolidated statements of operations and are recorded directly into the separate section of stockholders deficit on the consolidated balance sheets.



Reclassifications



Certain prior period amounts have been reclassified to conform to the current periods presentation.






**Page - 8**




GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



NOTE 3 LOANS AND ADVANCES PAYABLE



The loans and advances payable bear no interest, are unsecured and have no fixed terms of repayment.



NOTE 4  CONVERTIBLE NOTES PAYABLE



At September 30, 2003 the Company had a note payable in the amount of $148,000, plus accrued interest of $11,165.  The note is unsecured, bears interest at 8% and $75,000 of this debt is due February 8, 2004 and $73,000 is due March 5, 2004.  The note is convertible into common shares of the Company at a price of $0.50 per share, at the option of the Company.



At September 30, 2003 the Company had notes payable totalling $459,288, plus accrued interest of $43,111.  These notes are unsecured, bear interest at 8% and are due at various dates between August 17, 2003 and March 14, 2004.  The notes are convertible into common shares of the Company at a price of $0.50 per share, at the option of the Company.  During the period $123,350 of this debt plus accrued interest of $13,752 became due and payable, the terms of repayment on this debt are in the negotiation process and a verbal extension has been agreed upon by both parties.



NOTE 5  DUE TO RELATED PARTIES



The Company is indebted to a company sharing a common director in the amount of $4,755.  This debt is unsecured, bears no interest and has no fixed terms of repayment.



The Company is indebted to a company sharing a common director in the amount of $13,357.  This debt is unsecured, bears no interest and has no fixed terms of repayment.



At September 30, 2003, the Company had a note payable to a director of the Company in the amount of $500,000, plus accrued interest of $42,192.  This note is unsecured, bears interest at 10% and is due November 27, 2004.



At September 30, 2003 and 2002 the Company had paid or has payable $48,296 and $3,000 to directors and officers of the Company.



NOTE 6  COMMITMENT AND CONTINGENCIES















**Page - 9**









GLOBETRAC INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



NOTE 7 COMMON STOCK



On May 31, 2001, the Company completed a best efforts offering of its common stock pursuant to the provisions of Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated by the Securities and Exchange Commission.  In accordance with the private placement memorandum offering, which was initiated on March 15, 2001, the Company issued 1,635,000 shares of its common stock at $0.02 per share for a total of $32,700.



On May 17, 2002, the Company declared a stock dividend of three shares for every one share issued.  The stock dividend was paid out on May 28, 2002.  The stock dividend resulted in an increase of the Companys issued and outstanding share capital from 6,210,000 shares to 24,840,000 shares.



On June 21, 2002, the Company cancelled 3,800,000 of its issued and outstanding common shares and returned the shares to treasury.



On July 29, 2002, the authorized share capital of the Company increased from 55,000,000 shares to 205,000,000 shares with a par value of $0.001, consisting of 200,000,000 common shares and 5,000,000 preferred shares.



On August 22, 2003 the Company entered into two Regulation S subscription agreements whereby the Company agreed to issue 750,000 restricted units (as defined under Rule 144 of the Securities Act of 1933) at $1.00 per unit.  Each unit consists of one restricted share of common stock of the Company and one non-transferable share purchase warrant.  Each warrant enables the subscriber to purchase one additional restricted share at a price of $1.10 per share until August 26, 2005.



NOTE 8  SUBSEQUENT EVENT



On October 1, 2003, the Company entered into a Regulation S subscription agreement whereby the Company agreed to issue 150,000 restricted units at $1.00 per unit.  Each unit consists of one restricted share of common stock of the Company and one non-transferable share purchase warrant.  Each warrant enables the subscriber to purchase one additional restricted share at a price of $1.10 per share until October 7, 2005.



**Page - 10**















Item 2.  Managements Discussion and Analysis or Plan of Operation.



THE FOLLOWING PRESENTATION OF MANAGEMENTS DISCUSSION AND ANALYSIS OF GLOBETRAC INC. SHOULD BE READ IN CONJUNCTION WITH THE CONSOLIDATED FINANCIAL STATEMENTS AND OTHER CONSOLIDATED FINANCIAL INFORMATION INCLUDED HEREIN.



GlobeTrac is a start-up business and has been concentrating on training and building their sales team while ensuring that all products sold meet or exceed customer expectations and as such has generated only minimal revenues to date.



With its recent acquisitions and management changes, GlobeTrac has been focused on effectuating and implementing its new business plan.  As such, GlobeTrac has an accumulated deficit of $2,045,507 to date and additional financing will be required by GlobeTrac to fund its development activities and to support operations. Management plans to mitigate its losses in future periods by reducing certain operating expenses that were associated with the change in business direction, the business acquisition and the changes in management.  However, there is no assurance that GlobeTrac will be able to obtain additional financing.  Furthermore, there is no assurance that rapid technological changes, changing customer needs and evolving industry standards will enable GlobeTrac to introduce new products and services on a continual and timely basis.  The financial statements do not include any adjustments that might result from the outcome of those uncertainties.



Results of Operations



Revenues



Revenue increased by $236,800 from $Nil during the three month period ended September 30, 2003 as compared to the three month period ended September 30, 2002.  The increase in revenue was caused by changes in management and business direction.  Of the $236,800 in revenue earned during the three month period ended September 30, 2003, $197,800 came from the sale and installation of the global wireless tracking and telematics equipment and $39,000 came from the monthly portal and airtime income associated with the sale of this equipment.



Revenue increased by $368,800 from $600 for the nine-month period ended September 30, 2002 to $369,400 for the nine-month period ended September 30, 2003.  The increase in revenue was caused by changes in management and business direction.  All of the revenue earned during the nine month period ended September 30, 2002 and $Nil of the revenue earned in the nine month period ended September 30, 2003, came from the digital graphic design business.  Of the $369,400 in revenue earned during the nine month period ended September 30,  came from sales and installation of the global wireless tracking and telematics equipment and $55,000 came from the monthly portal and airtime income associated with the sale of this equipment.



GlobeTrac expects to generate additional revenues by expanding its sales and marketing program, training and building their sales team and ensuring all of their products meet or exceed customer expectations.  At the end of September 2003, the company changed their sales and marketing team and expect the new team to increase sales.



Cost of Sales



Cost of sales increased by 100% or $163,300 for the three-month period ended September 30, 2003 as compared to the three-month period ended September 30, 2002 when there were no costs associated with sales.  The reason for the increase was due to the change in business direction.  At September 30, 2003 the gross margin was 31% compared to no gross margin at September 30, 2002.  The increase in gross margin was due to changing from the digital graphic design business to the wireless tracking and telematics business.



Cost of sales increased by 100 % or $253,500 for the nine-month period ended September 30, 2003 as compared to the nine-month period ended September 30, 2002 when there were no costs associated with sales.  The increase was due the change in business direction.  As a percentage of revenue, the gross margin decreased from 100% in the nine month period ended September 30, 2002 to 31% during the nine month period ended September 30, 2003 due to changing from the digital graphic design business to the wireless tracking and telematics business.



GlobeTrac expects cost of sales to decrease as a percentage of sales and gross margin to increase as unit sales increase because each unit sold has the potential to continue to generate higher margin, recurring revenue on monthly portal and airtime income.



**Page - 11**








Operating Expenses



Operating expenses increased for the three month period ended September 30, 2003 compared to the three month period ended September 30, 2002 by approximately $38,200, primarily due to increases of $22,900 in professional fees, $30,500 in consulting fees, $37,200 in office expenses, $700 in depreciation, $20,200 in installation expenses, $26,800 in management fees, $13,700 in rent, $1,000 in telephone expenses, $79,500 in wages, and $1,000 in travel and entertainment, offset by a decrease of $18,400 in marketing and advertising, $700 in filing fees, $1,400 in foreign exchange gains and a charge for impairment of goodwill of $174,800.



The increase in operating costs was caused by a change in management, a change in business direction, a new sales and marketing program, and relocation costs associated with moving GlobeTracs Chief Executive Officer and Globetrac Ltd.s Chief Operating Officer and Chief Technology Officer from Australia to the UK.  GlobeTrac expects future operating expenses to increase due to continued expansion of its sales and marketing program and they expect that future operating expenses associated with the change in business direction to decrease.



Operating expenses increased for the nine month period ended September 30, 2003 compared to the nine month period ended September 30, 2002 by approximately $792,500, primarily due to increases of $189,100 in professional fees, $229,700 in consulting fees, $61,900 in office expenses, $1,300 in interest and bank charges, $1,400 in depreciation, $85,100 in installation expenses, $178,600 in management fees, $42,100 in rent, $18,500 in telephone expenses, $132,500 in wages, and $39,900 in travel and entertainment, offset by a decrease of $4,700 in filing fees, $6,700 in marketing and advertising, $1,400 in foreign exchange gains and a charge for impairment of goodwill of $174,800.



The increase in operating costs was caused by a change in management, a change in business direction, a new sales and marketing program, and relocation costs associated with moving GlobeTracs Chief Executive Officer and Globetrac Ltd.s Chief Operating Officer and Chief Technology Officer from Australia to the UK.  GlobeTrac expects future operating expenses to increase due to continued expansion of its sales and marketing program and they expect that future operating expenses associated with the change in business direction to decrease.



Other Expenses



Interest expense increased during the three month period ended September 30, 2003 compared to the three month period ended September 30, 2002 by approximately $24,800 or 100 % primarily due to interest on convertible notes payable and the note due to a related party.   Foreign exchange losses increased by $18,500 or 100%.



Interest expense increased during the nine month period ended September 30, 2003 compared to the nine month period ended September 30, 2002 by approximately $73,300 or 100 % primarily due to interest on convertible notes payable and the note due to a related party.   Foreign exchange losses increased by $16,700 or 100%.



Liquidity and Capital Resources



GlobeTrac had cash of approximately $71,700 and a working capital deficit of $747,500 at September 30, 2003.  During the nine month period ended September 30, 2003, GlobeTrac used approximately $1,206,700 in cash for operating activities, primarily for an operating loss of $1,218,900, an increase in accounts receivable of $35,600, an increase in inventory of $31,100 and a decrease in accounts payable and accrued liabilities of $63,000, offset by depreciation of $1,400, a decrease in prepaid expenses of $41,200, an increase in accounts payable to related parties of $25,900, an increase in accrued interest payable to related parties of $37,400 and an increase in accrued interest payable on convertible debt of $36,000.  Cash used in operations of $1,206,700 was financed by decreases in cash of $138,500, increases in loans and advances payable of $316,900, funds received for shares subscribed of $750,000 and the effect of exchange rate changes on cash of $6,600, offset by the purchase of $5,300 in fixed assets.  A decrease in working capital of $820,400 was due to a decrease in current assets of $113,000 and an increase in current liabilities of $707,400. GlobeTrac has accumulated a deficit of approximately $2,045,500 since inception and has an approximate stockholders deficiency of $1,239,700.  GlobeTrac has no contingencies or long-term commitments except for the agreement with WebTech Wireless Inc.



Plan of Operation for the Next Twelve Months



GlobeTrac anticipates funding its working capital needs for the next twelve months through sales, the equity capital markets and private financings.  Although the foregoing actions are expected to cover its anticipated cash needs for working capital and capital expenditures for a least the next twelve months, no assurance can be given that GlobeTrac will be able to raise sufficient cash to meet these cash requirements.



**Page - 12**








Management plans to improve GlobeTracs cash flows and operating results by increasing sales of wireless tracking and telematics units, increasing monthly portal rental fees, raising additional capital through private placements of stock, private loans and advances.



GlobeTrac is not currently conducting any research or development activities other than the development of its website and it does not anticipate conducting such activities in the near future.  As GlobeTrac expands its customer base and product lines, it will need to hire additional employees, agents, distributors or independent contractors as well as purchase or lease additional equipment.



Internal and External Sources of Liquidity



GlobeTrac has funded its operations principally from borrowings in the form of accounts payable, convertible notes payable and funds received from related parties.



Inflation



GlobeTrac does not believe that inflation will have a material impact on its 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 plans, expect, aim, believe, projects, 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 GlobeTracs strategy for growth, product development, market position, expenditures and financial results are forward-looking statements.



Forward-looking statements in this Form 10-QSB include statements regarding (1) expectation that revenue will increase during fiscal 2003; (2) expectation of product lines and customer base increasing; (3) expectation of future operating expenses increasing; (4) expectation that operating expenses related to the change in business direction will decline; (5) expectation that the expansion of customer base and product lines will cause wages, marketing and promotional costs to increase; (6) expectation that working capital needs for fiscal 2003 will be funded through sales, equity capital markets and private financings; (7) expectation that an increase in customers and product lines will lead to hiring of additional employees or independent contractors; (8) expectation that an increase in customer and product lines will lead to the purchase or lease of additional equipment; (9) uncertainty of utilizing deferred tax assets; and (10) expectation that inflation will not have a material impact on future operations.  All forward-looking statements are made as of the date of filing of this Form 10-QSB and GlobeTrac disclaims 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 demand for GlobeTracs products and services; changes in business direction or strategy; competitive factors (including competitors introducing superior products); pricing pressure (including competitors offering similar products at lower prices); inability to attract, develop or retain technical, consulting managerial, sales personnel, agents, distributors or independent contractors; changes in consumer tastes; inability to obtain product from the manufacturer and evolving industry products and standards.  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, the outcome may vary substantially from anticipated or projected results, and accordingly, no opinion is expressed on the achievability of those forward-looking statements.  No assurance can be given that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and GlobeTrac assumes no obligation to update any such forward-looking statements.



**Page - 13**









Item 3.  Controls and Procedures.

Based on their most recent evaluation, which was completed within 90 days of the filing of this Form 10-QSB, GlobeTracs Chief Executive Officer and Chief Financial Officer believe GlobeTracs disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) are effective to ensure that information required to be disclosed by GlobeTrac in this report is accumulated and communicated to GlobeTracs management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. There were no significant changes in GlobeTracs internal controls or other factors that could significantly affect these controls subsequent to the date of their evaluation and there were no corrective actions with regard to significant deficiencies and material weaknesses.



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.  Changes in Securities.



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 6.  Exhibits and Reports on Form 8-K



**(a)**                 **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.



**(b)           Reports on Form 8-K.**



No reports were filed during the quarter of the fiscal year covered by this report.




**Page - 14**




****

**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/ Jim Pratt`

Name:                                  Jim Pratt

Title:                                Director and CEO

Dated:November 14, 2003





`by: /s/ John daCosta`

Name:                                  John daCosta

Title:                                CFO

Dated:November 14, 2003






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

CERTIFICATION

I, Jim Pratt, 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 quarterly report;

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

4.   The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a)   designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)   evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the Evaluation Date); and

c)   presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.   The registrants other certifying officer and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent function):

a)   all significant deficiencies in the design or operation of internal controls which could adversely affect the registrants ability to record, process, summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and

b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls; and

6.   The registrants other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: November 14, 2003



/s/ Jim PrattJim Pratt Chief Executive Officer

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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 quarterly report;

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

4.   The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a)   designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b)   evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the Evaluation Date); and

c)   presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

5.   The registrants other certifying officer and I have disclosed, based on our most recent evaluation, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent function):

a)   all significant deficiencies in the design or operation of internal controls which could adversely affect the registrants ability to record, process, summarize and report financial data and have identified for the registrants auditors any material weaknesses in internal controls; and

b)   any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls; and

6.   The registrants other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: November 14, 2003



/s/ John daCostaJohn daCosta Chief Financial Officer






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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 September 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Jim Pratt, President, Chief Executive Officer of GlobeTrac and a member of the Board of Directors, certify, pursuant to s.906 of the Sarbanes-Oxley Act of 2002, that:

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

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



/s/ Jim PrattJim Pratt Chief Executive Officer November 14, 2003

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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 September 30, 2003 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 the Company.



/s/ John daCostaJohn daCosta Chief Financial Officer November 14, 2003

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