U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB/A

/X/  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                  For the quarterly period ended June 30, 2000
                                                 -------------

                                       OR

/__/ TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

 For the transition period from __________________  to  _____________________


                           Commission File No. 0-30299
                                               -------

                         Global Innovative Systems Inc.
             -----------------------------------------------------
             (Exact name of registrant as specified in its charter)


              Nevada                                   98-0217653
              ------                                   ----------
(State or other jurisdiction of                (IRS Employer Identification No.)
    incorporation of organization)


5975 Selkirk Crescent, Prince George, British Columbia, Canada       V2N 2G9
--------------------------------------------------------------       -------
   (Address of principal executive offices)                        (Zip Code)


       Registrant's telephone number, including area code: (250) 964-2692
                                                           --------------

                                       N/A
         -------------------------------------------------------------
         (Former name or former address, if changed since last report.)


     Check whether the registrant (1) 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.

  Yes              No  X
     ----             ----


     As of August 1, 2000, there were issued and outstanding  21,700,000  shares
of common  stock,  par value  $0.001 per  share,  of the  registrant  issued and
outstanding.

                  Transitional small business disclosure format

                              Yes       No X
                                          ----

<PAGE>

                         Global Innovative Systems Inc.
                         Quarterly Report on Form 10-QSB

                                Table of Contents

                                                                  PAGE

PART I          FINANCIAL INFORMATION

Item 1. Consolidated Financial Statements

               Balance Sheets                                         2

               Statements of Operations                               3

               Statements of Changes in Stockholders' Deficit         4

               Statements of Cash Flows                               5

               Notes to the Consolidated Financial Statements         6 - 11

Item 2. Management's Discussion and Analysis or Plan of Operation    11 - 16

PART II OTHER INFORMATION

Item 1. Legal Proceedings                                            16

Item 2. Changes in Securities                                        16

Item 3. Defaults Upon Senior Securities                              16

Item 4. Submission of Matters to a Vote of Security Holders          16

Item 5. Other Information                                            16

Item 6. Exhibits and Reports on Form 8-K                             16

SIGNATURES                                                           17



<PAGE>

PART I - FINANCIAL INFORMATION

Item 1.  Consolidated Financial Statements.


                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEETS

                            (Expressed in US Dollars)


                                           June 30,          September 30,
                                              2000                1999
                                          --------------------------------
                                           (Unaudited)

ASSETS

Current assets

     Cash                                 $     4,247       $         811
     Receivables                                1,031               1,100
     Investment tax credits refundable           -                 97,136
     Prepaid expenses                           2,729               5,134
                                          ------------      --------------
                                                8,007             104,181
Fixed assets                                    8,673               9,050
Licence (Note 5)                               45,707                -
                                          ------------      --------------

                                          $    62,387       $     113,231
                                          ============      ==============

LIABILITIES

Current liabilities

     Accounts payable                     $    45,833       $      14,449
     Accrued liabilities                        6,230               5,430
     Loan payable to related party             32,164              34,074
     Advances from stockholders (Note 6)       91,898             467,357
                                          ------------      --------------
                                              176,125             521,310
                                          ------------      --------------

STOCKHOLDERS' DEFICIT

Common stock
    Authorized:

       200,000,000 common shares,
          par value $0.001
    Issued:
         21,700,000 (1999 - 12,000,000)
              common shares                    21,700              12,000

Additional paid-in capital                    410,632                -

Accumulated other comprehensive income
     Foreign currency translation loss        (10,542)             (5,751)

Deficit accumulated in the
   development stage                         (535,528)           (416,189)
                                          ------------      --------------

                                             (113,738)           (409,940)
                                          ------------      --------------

                                          $    62,387       $     113,231
                                          ============      ==============


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

                                        2
<PAGE>


<TABLE>


                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A Development Stage Company)

                CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                            (Expressed in US Dollars)
<CAPTION>


                                               January 15, 1997
                                                (incorporation)        Three months ended June 30,       Nine months ended June 30,
                                               to June 30, 2000     --------------------------------    ----------------------------
                                                  Cumulative             2000              1999             2000            1999
                                              ------------------    ----------------   -------------    ------------   -------------
EXPENSES

<S>                                           <C>                   <C>                <C>              <C>            <C>
   Accounting, audit and legal                $         40,542      $         6,080    $     1,358      $    23,159    $     5,403
   Automotive                                           18,098                1,319          4,561            2,988          9,231
   Bank charges and interest                             5,009                1,524          1,402            3,305          1,474
   Consulting                                           10,064                6,064            -             10,064           -
   Depreciation                                          4,794                  726            645            1,754          1,888
   Directors' fees                                      12,000                6,000            -             12,000           -
   Insurance                                            16,127                2,154          1,268            6,255          3,421
   Office and supplies                                   4,039                  175            465              953          2,263
   Rent                                                 12,527                  440             -             1,058          2,756
   Research and development costs (Note 7)             344,117                3,655          8,734           21,366         38,360
   Telephone                                             9,822                  840          1,807            2,989          4,254
   Travel                                               16,840                  454          5,685            1,690         12,784
                                              ------------------    ----------------   -------------    ------------   -------------

LOSS BEFORE OTHER ITEMS                               (493,979)             (29,431)       (25,925)         (87,581)       (81,834)
                                              ------------------    ----------------   -------------    ------------   -------------

OTHER ITEMS

   Interest income                                       4,596                1,116           -               3,791             25
   Loss on terminated proposed
       business acquisition (Note 8)                   (46,145)                -              -             (46,145)          -
                                              ------------------    ----------------   -------------    ------------   -------------

                                                       (41,549)               1,116           -             (42,354)            25
                                              ------------------    ----------------   -------------    ------------   -------------

NET LOSS FOR THE PERIOD                       $       (535,528)     $       (28,315)   $   (25,925)     $  (129,935)   $   (81,809)

                                              ==================    ================   =============    ============   =============

LOSS PER SHARE - BASIC AND DILUTED                                  $          0.00    $      0.00      $      0.01    $      0.00
                                                                    ================   =============    ============   =============

WEIGHTED AVERAGE COMMON SHARES                                           21,700,000     12,000,000       17,388,889     12,000,000
                                                                    ================   =============    ============   =============

</TABLE>


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

                                        3
<PAGE>


<TABLE>

                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A Development Stage Company)

                 STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
                            (EXPRESSED IN US DOLLARS)

                                   (UNAUDITED)
<CAPTION>

                                                                                       Deficit
                                                                                     Accumulated    Accumulated
                                          Common Shares              Additional        in the          Other           Total
                                  ------------------------------      Paid-in        Development    Comprehensive   Stockholders'
                                    Number            Amount          Capital           Stage          Income          Deficit
                                  ------------    --------------    ------------    -------------   -------------   --------------

<S>                               <C>             <C>               <C>             <C>             <C>             <C>
Balance, October 1, 1999 -
     Niew Industries Inc.              5,000      $  3,265          $      -        $ (405,593)     $    (5,751)    $  (408,079)

Common stock redeemed at
     $1 Cdn on October
     31, 1999                         (2,850)       (1,861)               -               -                -             (1,861)
                                  ------------    --------------    ------------    -------------   -------------   --------------

                                       2,150         1,404                -           (405,593)          (5,751)       (409,940)

Adjustment for the issuance
     of common stock on
     reverse acquisition          11,997,850        10,596                -            (10,596)            -               -
                                  ------------    --------------    ------------    -------------   -------------   --------------

                                  12,000,000        12,000                -           (416,189)          (5,751)       (409,940)

Settlement of debt to the
     former stockholders of
     Niew Industries Inc.
     (Note 3)                           -             -               410,268           10,596             -            420,864

Adjustment for the stockholders'
     equity of the Company at
     the acquisition date
     (Note 3)                      9,700,000         9,700                364             -                -             10,064
                                  ------------    --------------    ------------    -------------   -------------   --------------

                                  21,700,000        21,700            410,632         (405,593)          (5,751)         20,988
                                  ------------    --------------    ------------    -------------   -------------   --------------


     Net loss for the period            -             -                  -            (129,935)            -           (129,935)
     Foreign currency
       translation loss                 -             -                  -              -                (4,791)         (4,791)
                                  ------------    --------------    ------------    -------------   -------------   --------------

     Total comprehensive loss           -             -                  -            (129,935)          (4,791)       (134,726)
                                  ------------    --------------    ------------    -------------   -------------   --------------

Balance, June 30, 2000            21,700,000      $ 21,700          $ 410,632       $ (535,528)     $   (10,542)    $  (113,738)
                                  ============    ==============    ============    =============   =============   ==============

                                        4
</TABLE>

<PAGE>


    The accompanying notes are an integral part of these financial statements

                                        5
<PAGE>


<TABLE>

                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A Development Stage Company)

                CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                            (Expressed in US Dollars)
<CAPTION>


                                                               January 15, 1997
                                                               (incorporation) to            Nine months ended June 30,
                                                               June 30, 2000           ----------------------------------
                                                               Cumulative                   2000               1999
                                                               -------------------     --------------     ---------------
CASH PROVIDED BY (USED IN)

<S>                                                            <C>                     <C>                <C>
   Operating

       Net loss for the period                                 $     (535,528)         $   (129,935)      $     (81,809)
       Non cash item

           Depreciation                                                 4,794                 1,754               1,888
       (Increase) decrease in assets
           Receivables                                                 (1,031)                   69             (14,153)
           Investment tax credits refundable                             -                   97,136             (11,300)
           Prepaid expenses                                            (2,729)                2,405              (1,164)
       Increase (decrease) in liabilities
           Accounts payable                                            14,796                   347              (4,853)
           Accrued liabilities                                          6,230                   800              (1,639)
                                                               -----------------       --------------     ---------------
                                                                     (513,468)              (27,424)           (113,030)
                                                               -----------------       --------------     ---------------
   Financing

       Loan payable to related party                                   32,164                (1,910)             34,034
       Issuance of common stock                                         1,404                  -                   -
       Advances from stockholders                                     571,674               104,317             105,704
       Repayments to stockholders                                     (69,144)             (69,144)                -
                                                               -----------------       --------------     ---------------
                                                                      536,098               33,263               139,738
                                                               -----------------       --------------     ---------------
   Investing

       Cash acquired on reverse acquisition                            10,064                10,064                -
       Purchase of licence                                            (14,670)              (14,670)               -
       Purchase of fixed assets                                       (12,090)               (1,449)             (3,628)
                                                               -----------------       --------------     ---------------
                                                                      (16,696)               (6,055)             (3,628)
                                                               -----------------       --------------     ---------------

INCREASE (DECREASE) IN CASH                                             5,934                  (216)             23,080

EFFECT OF FOREIGN EXCHANGE ON CASH                                     (1,687)                3,652             (12,996)

CASH AT BEGINNING OF PERIOD                                              -                      811               4,828
                                                               -----------------       --------------     ---------------
CASH AT END OF PERIOD                                          $        4,247          $      4,247       $      14,912
                                                               =================       ==============     ===============

Supplemental Information

Non cash investing and financing activities
   Shares of Niew Industries Inc. and loans payable to
   stockholders of Niew Industries Inc. acquired for
   consideration totalling 12 million shares of common stock                           $    420,864       $        -
                                                                                       ==============     ===============

Licence acquired by issuance of accounts payable                                       $     31,037       $        -
                                                                                       ==============     ===============
</TABLE>



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

                                        6
<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A Development Stage Company)

             CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                            (Expressed in US Dollars)

                                  June 30, 2000

1.   UNAUDITED FINANCIAL STATEMENTS

     The interim financial  statements for the nine month periods ended June 30,
     2000 and 1999  included  herein have been  prepared by the Company  without
     audit, pursuant to the rules and regulations of the Securities and Exchange
     Commission.  Certain information and footnote disclosures normally included
     in financial  statements  prepared in accordance  with  generally  accepted
     accounting principles have been condensed or omitted pursuant to such rules
     and  regulations,  although the Company  believes that the  disclosures are
     adequate to make the information presented not misleading.

     These  statements  reflect all adjustments  consisting of normal  recurring
     adjustments,  which,  in the opinion of management,  are necessary for fair
     presentation of the information,  contained  therein.  It is suggested that
     these  interim  financial  statements  be  read  in  conjunction  with  the
     financial  statements of Niew  Industries Inc. (Note 3) for the years ended
     September 30, 1999 and 1998 and the notes thereto included elsewhere in the
     Company's  registration  on  Form  10-SB.  The  Company  follows  the  same
     accounting policies in preparation of interim reports.

     Results of operations for the interim  periods are not indicative of annual
     results.

2.   NATURE OF BUSINESS AND CONTINUING OPERATIONS

     The Company was  incorporated  in the State of Nevada on September 14, 1995
     and was  inactive  until  January 31, 2000 when it closed a share  exchange
     agreement with the  stockholders  of Niew  Industries  Inc.  ("NIEW").  The
     transaction  resulted in NIEW  becoming a wholly  owned  subsidiary  of the
     Company.  Since the  stockholders  of NIEW  controlled  55% of the combined
     entity  after  the  merger  and the  business  of NIEW  presents  the  only
     operations  of the new entity,  the  transaction  was recorded as a reverse
     acquisition and NIEW was considered the accounting  acquiror.  As such, the
     historical financial information of the Company is that of NIEW.

     NIEW was  incorporated  on  January  15,  1997 under the  British  Columbia
     Company Act.  The Company was  inactive  until March 23, 1998 when it began
     the development of a twin rotating asphalt mixing system. To date, this has
     been Niew's only activity.  These financial  statements are expressed in US
     dollars and have been prepared in  accordance  with  accounting  principles
     generally accepted in the United States.

     The Company has made an  application  to the United States  Securities  and
     Exchange Commission to register its common stock.

     These  accompanying  financial  statements  have been  prepared  on a going
     concern  basis,  which  contemplates  the  realization  of  assets  and the
     satisfaction  of  liabilities  and  commitments  in the  normal  course  of
     business. As at June 30, 2000, the Company has accumulated operating losses
     of  $535,528  since its  inception.  The  continuation  of the  Company  is
     dependent upon the continuing financial support of creditors, directors and
     stockholders  and  obtaining  long term  financing  as well as  achieving a
     profitable  level of operations  through the successful  development of the
     twin rotating asphalt mixing system.  It is the intention of the Company to
     raise  a new  equity  financing  of  approximately  $1,500,000  within  the
     upcoming year.  Amounts raised will be used to complete the  development of
     the twin  rotating  asphalt  mixing system and then proceed into a stage of
     commercial production.

                                       7
<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A Development Stage Company)

             CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                            (Expressed in US Dollars)

                                  June 30, 2000


2.   NATURE OF BUSINESS AND CONTINUING OPERATIONS - CONTINUED

     While the Company is expending its best efforts to achieve the above plans,
     there is no assurance  that any such activity will generate funds that will
     be available for operations.

     These conditions  raise  substantial  doubt about the Company's  ability to
     continue as a going concern.  These financial  statements do no include any
     adjustments that might arise from this uncertainty.

3.   ACQUISITION OF NIEW INDUSTRIES INC.

     By agreement dated December 11, 1999, the Company agreed to acquire 100% of
     the  issued  and  outstanding  shares,  and  settle  $420,864  owing to the
     stockholders,  of Niew  Industries  Inc. in exchange for 12 million  common
     shares of the Company. The acquisition closed on January 31, 2000.

     Effective as of the closing date, the  transaction  was accounted for using
     the purchase method of accounting as applicable for a reverse  acquisition.
     Following reverse acquisition accounting, consolidated financial statements
     subsequent to closing of the acquisition are presented as a continuation of
     NIEW.  The  operations of the Company are  consolidated  with those of NIEW
     from the date of the acquisition.

     The net  assets of the  Company  at the date of  acquisition  consisted  of
     $10,064 of cash  remaining on its initial  capitalization.  No goodwill was
     recorded on the acquisition.

     The company intends to retain September 30 as its fiscal year end.

     Since the Company was inactive  until the  acquisition  of NIEW,  pro-forma
     information  reflecting the acquisition had it occurred at the beginning of
     the earliest period  presented  would not yield results  different from the
     net loss and loss per share  presented  on the  Consolidated  Statement  of
     Operations.

                                       8
<PAGE>

                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A Development Stage Company)

             CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                            (Expressed in US Dollars)

                                  June 30, 2000

4.   NEW ACCOUNTING PRONOUNCEMENTS

     In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
     Accounting for Derivative Instruments and Hedging Activities.  SFAS No. 133
     requires companies to recognize all derivatives  contracts as either assets
     or liabilities  on the balance sheet and to measure them at fair value.  If
     certain conditions are met, a derivative may be specifically  designated as
     a hedge,  the  objective  of which is to match  the  timing of gain or loss
     recognition  on the  hedging  derivative  with the  recognition  of (i) the
     changes  in the fair  value of the  hedged  assets  or  liability  that are
     attributable  to the hedged risk or (ii) the earnings  effect of the hedged
     forecasted  transaction.  For a  derivative  not  designated  as a  hedging
     instrument,  the gain or loss is  recognized  in  income  in the  period of
     change.  SFAS  No.  133 is  effective  for all  quarters  of  fiscal  years
     beginning  after June 15, 2000.  Historically,  the Company has not entered
     into derivative contracts either to hedge existing risks or for speculative
     purposes.  Accordingly,  the  Company  does not expect  adoption of the new
     standards on October 1, 2000 to affect its financial statements.

     In April 1998,  the  American  Institute of  Certified  Public  Accountants
     issued  Statement  of Position  98-5,  "Reporting  on the Costs of Start-Up
     Activities",   ("SOP  98-5")  which  provides  guidance  on  the  financial
     reporting of start-up costs and  organization  costs.  It requires costs of
     start-up activities and organization costs to be expensed as incurred.  SOP
     98-5 is effective for fiscal years  beginning  after December 15, 1998 with
     initial  adoption  reported  as  the  cumulative  effect  of  a  change  in
     accounting  principle.  Adoption of this  standard  did not have a material
     effect on the financial statements.

5.   COMMITMENT

     By  agreement  dated  November 8, 1999,  the  Company  agreed to purchase a
     license  entitling  it to  manufacture  a  component  known as a  "Portable
     Overhead Bin".  This  component  will be part of the twin rotating  asphalt
     mixing system that is currently being developed by the Company.  To acquire
     the  license,  the Company is required to pay a one time payment of $75,000
     in  Canadian  dollars,  $30,000  which has been paid with the balance to be
     paid by August 31, 2000. In addition, the company will be required to pay a
     royalty based on the number of units  manufactured  in a calendar year. The
     minimum  royalty is Cdn.  $10,000  for 2000 and Cdn.  $20,000  for 2001 and
     thereafter.

                                       9
<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A Development Stage Company)

             CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                            (Expressed in US Dollars)

                                  June 30, 2000


6.   ADVANCES FROM STOCKHOLDERS

     In connection with the  acquisition of Niew  Industries  Inc., the purchase
     price of 12 million  common shares  included the  settlement of outstanding
     debts to directors totalling $420,864.

     The  remaining  advances are  unsecured,  do not bear  interest and have no
     specific terms of repayment. The advances are summarized as follows:

                                                 June 30,    September 30,
                                                    2000              1999
                                         ---------------------------------

      Cash advances to the company             $ 153,411     $ 464,619
      Repayments                                 (69,144)         -
      Reimbursable expenses                        7,631         2,738
                                               ---------     ----------

                                               $  91,898     $ 467,357
                                               =========     ==========

Average balance for the period                 $ 146,992     $ 403,645
                                               =========     ==========



7.   RESEARCH AND DEVELOPMENT COSTS

     The company is in the process of developing a twin rotating  asphalt mixing
     system. Costs incurred to date consist of the following:

                        January 15, 1997
                        (incorporation)    Three months    Nine months
                        to June 30, 2000   ended June 30,  ended June 30,
                        Cumulative         2000    1999      2000    1999
                        ----------------  ------  -------  -------  --------


Materials and supplies  $   277,620       $2,641  $9,460   $ 8,910  $31,442
Salaries and benefits       139,772        1,014   1,053     4,418    5,463
Patent application           22,211         -        781     8,038   10,947
Investment tax
   credits recovery         (95,486)        -     (2,560)     -      (9,492)
                        ----------------  ------  -------  -------  --------

                        $   344,117       $3,655  $8,734   $21,366  $38,360
                        ================  ======  =======  =======  ========

      Upon conclusion of the share exchange agreement,  the company is no longer
      eligible for recoverable investment tax credits.

                                       10
<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A Development Stage Company)

             CONSOLIDATED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                            (Expressed in US Dollars)

                                  June 30, 2000

8.   LOSS ON TERMINATED PROPOSED BUSINESS ACQUISITION

     During the  period,  the  Company  advanced  funds in  anticipation  of the
     acquisition  of a business.  The  directors  have  reassessed  the proposed
     acquisition  and have chosen to abandon it. As a result,  the advances have
     been written off.

     The  company  to which the funds were  advanced  and the  Company  have one
     common director.


Safe Harbor Statement

     Certain  statements in this Form 10-QSB,  including  information  set forth
under  Item 2  "Management's  Discussion  and  Analysis  or Plan  of  Operation"
constitute or may constitute "forward-looking  statements" within the meaning of
the Private  Securities  Litigation Reform Act of 1995 (the "Act").  The Company
desires to avail itself of certain  "safe  harbor"  provisions of the Act and is
therefore  including  this special  note to enable it to do so.  Forward-looking
statements  included in this Form 10-QSB or hereafter included in other publicly
available documents filed with the Securities and Exchange  Commission,  reports
to its stockholders and other publicly  available  statements issued or released
by us involve known and unknown  risks,  uncertainties,  and other factors which
could  cause  our  actual  results,  performance  (financial  or  operating)  or
achievements  to differ  from the  future  results,  performance  (financial  or
operating) achievements expressed or implied by such forward-looking  statement.
Such  factors  include,  but are not  limited  to:  (i) our  lack of  historical
revenues;  (ii) our ability to complete the development and commercially exploit
the TRAMS;  (iv) our  ability to manage  growth;  (v) our ability to develop our
brand;   (vi)   competition;   and  (vii)  our  ability  to  adapt  to  evolving
environmental regulations.  Such future results are based upon management's best
estimates  based  upon  current  conditions  and  the  most  recent  results  of
operations.

                                       11
<PAGE>



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

     The Company was  incorporated  on September  14, 1995 under the laws of the
State of Nevada. The Company was inactive until it entered into a share exchange
agreement with the  stockholders  of Niew  Industries Inc ("NII").  By agreement
dated December 1, 1999 and closed on January 31, 2000, the Company  acquired all
the issued and  outstanding  shares of NII along with settling  amounts owing to
NII's stockholders totaling $420,864 in exchange for 12 million shares of common
stock of the  Company.  NII was  incorporated  on  January  15,  1997 in British
Columbia and is in the process of developing and marketing for sale a simplified
asphalt mixing system that would be compact,  environmentally  friendly and easy
to mobilize.  NII was inactive until April 15, 1998 when it began development of
a twin rotating  asphalt-mixing system ("TRAMS"). In 2000, the Company filed its
initial  registration  statement with the Securities and Exchange  Commission on
Form 10-SB and  intends to make the  necessary  applications  to list its common
stock on the  National  Association  of  Securities  Dealers  Over  the  Counter
Bulletin Board ("NASD OTC:BB").

          Prior to the  acquisition of NII, the Company was inactive.  Since the
operations  of the  surviving  entity  are those of NII,  the  discussion  below
pertaining to periods prior to the acquisition date (January 31, 2000) relate to
a discussion of the financial results of NII and management's plan of operations
for  the  consolidated   entity.   The  financial  results  of  NII  were  first
consolidated with the financial  statements of the Company in the 2nd quarter of
the Company's 2000 fiscal year.

RESULTS OF OPERATIONS

         Statement of Operations Data

                                               Nine months
                                             ended June 30,
                                -------------------------------------------
                                       2000                     1999
                                     (UNAUDITED)
                                -----------------         -----------------
Revenue                         $           -             $          -
                                -----------------         -----------------

Expenses

General and administrative                43,056                    38,071
Accounting audit & legal                  23,159                     5,403
Research and development                  21,366                    38,360
Interest Income                          (3,791)                       (25)
Loss on terminated proposed
  business acquisition                    46,145                      -
                                -----------------         -----------------

                                         129,935                    81,809
                                -----------------         -----------------

Net loss for the period         $       (129,935)         $        (81,809)
                                =================         =================


                                       12
<PAGE>


     General and administrative  expenses include  automotive,  bank charges and
interest,  consulting,   depreciation,  director  fees,  insurance,  office  and
supplies, rent, telephone and travel expenses.

     NII is a  development  stage  company and therefore has not had any revenue
generating activities.

         Balance Sheet Data

                                  June 30,         September 30,
                                2000              1999
                                ------------------------------------
                                (UNAUDITED)
Working capital

 (deficiency )                  $(168,118)       $(417,129)
Total assets                       62,387          113,231
Accumulated deficit              (535,528)        (405,593)
Stockholders' deficit            (113,738)        (408,079)


     Nine months ended June 30, 2000 compared to nine months ended June 30,
1999.

     During the nine-month  period ended June 30, 2000,  the Company  incurred a
net loss of  $129,935  compared  to a net loss of  $81,809  for the  comparative
period in 1999. No revenue was recognized in either period.

     The research and development  costs in the nine month period ended June 30,
2000 of  $21,366  declined  by  $16,994  over the  corresponding  period in 1999
because  development  of the TRAMS System is almost  complete and NII turned its
attention  to  finalizing  the  acquisition  of  the  company  by  Global,   the
registration of Global's stock and arranging for additional  financing.  Further
development  and  testing  of the  TRAMS  System  has been  deferred  until  NII
completes its registration statement and can obtain additional funding.  General
and administrative costs have increased by $4,985 from the comparative period in
1999 to $43,056 due to the current  focus on the  registration  of the Company's
stock.  Declines of $17,337  associated with travel and automobile costs in 2000
are offset by new director fees of $12,000 and consulting  fees  associated with
the  stock  registration  of  $10,064.  Accounting,  audit  and  legal  expenses
increased by $17,756 to $23,159 in 2000 as a result of additional costs incurred
in connection  with NII's plans and intentions to become a public  company.  One
component of this increase was to engage a firm to audit the Company's Financial
Statements, which previously were only compiled for tax purposes.

     Management of NII had  investigated  a proposed  acquisition  of a Canadian
business  involved in the  development  of a secure locking system for explosive
magazines.  In  that  regard,  NII  had  advanced  $46,245  in  anticipation  of
acquisition  in fiscal year 2000.  NII performed its due diligence in connection
with the acquisition and has re-evaluated the proposal and decided not to pursue
the  acquisition.  As a result,  the initial advances have been written off. The
company  to which  the funds  were  advanced  and the  Company  have one  common
director.


                                       13
<PAGE>


     Interest  income  earned  on the  refund  of 1999 and 1998  investment  tax
credits increased by $3,766 in the nine months ended June 30, 2000.  Refunds for
both taxation years were received in the nine-month period ended June 30, 2000.

     Liquidity and Capital Resources

     At June 30, 2000, NII has cumulatively expended $344,117 (net of investment
tax credits of $95,486) on direct  research and  development  on the  prototype.
During this stage  referred to by  management  as Phase I, NII  constructed  the
prototype but is working on improving it to make it more efficient and to ensure
that it meets government  standards for pollution control.  Management estimates
that the completion of Phase I will require  approximately $25,000 consisting of
$15,000 for testing and materials and $10,000 for labor and subcontracts. At the
completion of Phase I, management  plans to sell its prototype,  the proceeds of
which would be used to finance the construction of another Phase I TRAMS System.

     NII has  plans for Phase II in which it will  build a second  trailer  that
will have a self-erecting silo,  asphalt,  diesel and propane tanks. NII intends
to sell the commercial version of the two machines as a package,  but would also
be able to sell them individually.  Management estimates the cost of Phase II to
be as follows:

                  Materials         $  84,000
                  Overhead             16,000
                  Salaries             50,000
                                 ------------
                                    $ 150,000
                                 ============

     To date,  the  operations  of NII have been  primarily  financed by private
loans from directors and related parties totaling $ 603,838 at June 30, 2000, as
well as $95,486 of  refundable  Canadian  government  investment  tax credits on
eligible research  expenditures.  Upon conclusion of the share exchange with NII
resulting in NII no longer being Canadian owned,  further investment tax credits
will not be available.

     At June 30, 2000,  the Company has cash of $4,247  available for completion
of Phase I  development  and to finance  the costs  necessary  in the process of
going public in the United  States.  Going  public is important  for the Company
since it requires access to capital to finance  construction of additional units
and  to  complete  its  development  initiatives.  The  Company  does  not  have
sufficient  funds on hand to  complete  its Phase I  development  and the public
registration  process.  Deficiencies in cash will be covered by additional loans
and  advances by the  Company's  directors  until such time that the Company can
attract  equity  investors.  Should  the  Company  be unable to  attract  equity
investors,  cutbacks and  deferrals of the planned  development  and  production
schedule  would occur until such funds were  otherwise  available  externally or
from the proceeds received on sale of the Phase I prototype.  Alternatively, the
Company could consider a joint venture to proceed with its plans.


                                       14
<PAGE>

     At this point in time  management has focused its efforts on the completion
of  Phase  I.  Completion  of  Phase  II  has  been  deferred  until  the  stock
registration  process is  completed  and cash flow is  available to the Company.
Management  believes  there is a market  for the Phase I product  without  being
dependent upon Phase II.

     Plan of Operations

     In the next  twelve  months,  the Company  intends to complete  Phase I and
possibly, Phase II and then produce the machine for commercial sale.

     NII has also acquired a license to manufacture a self-erecting  silo, which
is different from the silo that is going to be used in Phase II. Management also
intends to  manufacture  this silo for  commercial  sale.  At the present  time,
further  development  of  Phase I and  Phase  II has been  suspended  to  devote
attention to the  registration of the Company's  common stock and listing of its
securities on the NASD OTC:BB market.

     These objectives are currently being financed by the Company's  controlling
stockholders. The Company believes it requires approximately $25,000 to complete
the development and testing of Phase I at which time management  believes it can
sell the prototype. Proceeds from the sale and additional financing will be used
to  finance  production  of  additional  units.  The  Company  intends  to  seek
traditional   debt,   equity  or  principal   funding  to  further  finance  the
manufacturing process.

     The  Company  anticipates  it will be able to  complete  the stated plan of
operations if the additional financing can be achieved.  The actual expenditures
and business plan of the Company may differ from the stated plan of  operations.
The Board of  Directors  of the Company may decide not to pursue the stated plan
of operations. In addition, the Company may modify the stated plan of operations
based on the available  amount of financing in the event that the Company cannot
achieve the required equity financing to complete the stated plan of operations.
The  Company  does not  have any  arrangement  in place  for any debt or  equity
financing which would enable the Company to meet the stated plan of operations.

     In the event the Company is not  successful  in achieving any further sales
of its common  stock,  the  Company  anticipates  that it could not  sustain its
business operations without short-term financing from the Company's  controlling
stockholders  based on the Company's  current cash position and the absence of a
current revenue stream.  Due to the Company's lack of operating  history,  there
exists  substantial  doubt  about the  Company's  ability to continue as a going
concern, as stated in Note 1 to the consolidated financial statements.

     The Company  anticipates  continuing  operating  losses in the  foreseeable
future. The Company bases this expectation in part on the basis that the Company
will incur  substantial  operating  expenses  in  completing  its stated plan of
operations.  The Company's future financial  results are also uncertain due to a
number of factors,  many of which are outside of the  Company's  control.  These
factors include, but are not limited to general economic conditions,  government
environmental regulations and increased industry competition,  which include the
following:

     o    Willingness of external investors to advance capital to the Company to
          finance continued development and production;

                                       15
<PAGE>

     o    Uncertainty  regarding  whether  the  Company  can  meet  new  British
          Columbia environmental regulations in 2001, whether it can comply with
          environmental  regulations  in other North American  jurisdictions  or
          whether the Company can continue to meet new  regulatory  requirements
          as they arise;

     o    That there will be a market for the  Company's  Phase I or II products
          once the  development  is complete  and demand for the product at that
          time will be such to support economically viable production.

         The Company believes that it has access to funds sufficient to complete
the development and negotiate the sale of the Phase I prototype. There can be no
assurance that such additional funding would be available to us, or if available
that the terms of such additional financing will be acceptable to the Company.


PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

     The Company is not aware of any material  legal  proceedings  involving any
director,  director  nominee,  promoter  or control  person  including  criminal
convictions,  pending criminal matters,  pending or concluded  administrative or
civil  proceedings  limiting  one's  participation  in the securities or banking
industries or findings of securities or commodities law violations.

Item 2. Changes in Securities.

          None

Item 3. Defaults Upon Senior Securities.

          Not applicable

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

          None

Item 5. Other Information.

          None

Item 6. Exhibits and Reports on Form 8-K.

          Exhibit 27.1     Financial Data Schedule

                                       16
<PAGE>

                                   SIGNATURES

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

                                        Global Innovative Systems Inc.


Date:  August 10, 2000                  By:      /s/ Helge Freudentheil
       ---------------                           ----------------------
                                        Name:    Helge Freudentheil
                                        Title:   Chief Executive Officer,
                                                 President and Director


                                        By:      /s/ Ken Bergestad
                                                 ----------------------
                                        Name:    Ken Bergestad
                                        Title:   Vice President and Director


                                        By:     /s/ Walter Niemi
                                                ----------------------
                                        Name:   Walter Niemi
                                        Title:  Secretary-Treasurer and Director


                                        By:      /s/ Robert Stark
                                                 ----------------------
                                        Name:    Robert Stark
                                        Title:   Vice President and Director


                                       17