UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549



FORM 10-QSB

(Mark One)

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

For the quarterly period ended

[ ]TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from

Commission file number

|GLOBAL INNOVATIVE SYSTEMS, INC.(Exact name of small business issuer as specified in its charter)
|------------------------------------------------------------------------------------------------

|Nevada(State or other jurisdiction of incorporation or organization) |  | 98-0217653(I.R.S. Employer Identification No.)
|-------------------------------------------------------------------- |  | ----------------------------------------------

|5975 Selkirk Crescent, Prince George, BC, Canada  V2N 2G9(Address of principal executive offices)
|-------------------------------------------------------------------------------------------------

|(250) 964-2692(Issuer's telephone number)
|-----------------------------------------

|not applicable(Former name, former address and former fiscal year, if changed since last report)
|------------------------------------------------------------------------------------------------



Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 [X]     No [  ]



APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.     Yes [  ]     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:

21,700,000 common shares issued and outstanding as at August 1, 2001

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

Part I - FINANCIAL INFORMATION

Item 1.	Financial Statements.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

DISCLOSURE

To: The Shareholders of Global Innovative Systems, Inc.

It is the opinion of management that the interim financial statements for the quarter ended June 30, 2001 include all adjustments necessary in order to ensure that the financial statements are not misleading.

Prince George, British Columbia
Date: August 13, 2001

/s/ signedDirector of Global Innovative Systems, Inc.



GLOBAL INNOVATIVE SYSTEMS INC.
(A Development Stage Company)
CONSOLIDATED BALANCE SHEETS
(Expressed in US Dollars)

|                                                       | June 30,
2001
(Unaudited) | September 30,
2000    
|------------------------------------------------------ | ------------------------- | ----------------------
|ASSETS                                                 |                           |                       
|Current assets                                         |                           |                       
|Cash                                                   | $             -           | $          726        
|Receivables                                            | 861                       | 390                   
|Prepaid expenses                                       | 1,991                     | 4,401                 
|                                                       | 2,852                     | 5,517                 
|Fixed assets                                           | 6,576                     | 8,136                 
|License                                                | 49,342                    | 50,676                
|                                                       |                           |                       
|                                                       | $    58,770
=======       | $     64,329
=======  
|LIABILITIES                                            |                           |                       
|Current liabilities                                    |                           |                       
|Bank overdraft                                         | $      2,716              | $              -      
|Accounts payable                                       | 72,744                    | 58,997                
|Accrued liabilities                                    | 17,903                    | 11,462                
|Loan payable to related party (Note 5)                 | 31,250                    | 32,095                
|Advances from stockholders and directors (Note 6)      | 220,030                   | 183,850               
|                                                       | 344,643                   | 286,404               
|STOCKHOLDERS' DEFICIT                                  |                           |                       
|Common stock                                           |                           |                       
|Authorized: 200,000,000 common shares par value $0.001 |                           |                       
|Issued:           21,700,000 common shares             | 21,700                    | 21,700                
|Additional paid in capital                             | 410,632                   | 410,632               
|Accumulated other comprehensive income                 |                           |                       
|Foreign currency translation loss                      | (5,253)                   | (9,927)               
|Deficit accumulated in the development stage           | (712,952)                 | (644,480)             
|                                                       | (285,873)                 | (222,075)             
|                                                       |                           |                       
|                                                       | $      58,770
========    | $      64,329
========

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



GLOBAL INNOVATIVE SYSTEMS INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Expressed in US Dollars

|                                                 | January 15, 1997
(incorporation) to
June 30, 2001
Cumulative | Three months ended June 30,
2001/2000 | Nine months ended June 30, 
2001/2000
|------------------------------------------------ | ------------------------------------------------------------ | ------------------------------------- | -------------------------------------
|EXPENSES                                         |                                                              |                                       |                                      
|Accounting, audit and legal                      | $        71,582                                              | $        2,395                        | $        6,080                       
|Automotive                                       | 22,717                                                       | 1,128                                 | 1,319                                
|Bank charges and interest                        | 9,638                                                        | 1,133                                 | 1,524                                
|Consulting                                       | 10,064                                                       | -                                     | 6,064                                
|Depreciation                                     | 6,664                                                        | 421                                   | 726                                  
|Directors' fees                                  | 36,000                                                       | 6,000                                 | 6,000                                
|Insurance                                        | 24,270                                                       | 1,885                                 | 2,154                                
|Office and supplies                              | 4,845                                                        | 141                                   | 175                                  
|Rent                                             | 14,785                                                       | 623                                   | 440                                  
|Research and development cost                    | 407,607                                                      | 1,535                                 | 3,655                                
|Royalty                                          | 13,205                                                       | 3,201                                 | -                                    
|Salaries                                         | 20,378                                                       | -                                     | -                                    
|Telephone                                        | 12,547                                                       | 523                                   | 840                                  
|Travel                                           | 19,750                                                       | 969                                   | 454                                  
|                                                 |                                                              |                                       |                                      
|LOSS BEFORE OTHER ITEMS                          | (674,052)                                                    | (19,954)                              | (29,431)                             
|                                                 |                                                              |                                       |                                      
|OTHER ITEMS                                      |                                                              |                                       |                                      
|Interest income                                  | 4,615                                                        | -                                     | 1,116                                
|Loss on terminated proposed business acquisition | (45,376)                                                     | -                                     | -                                    
|                                                 | (40,761)                                                     | -                                     | 1,116                                
|                                                 |                                                              |                                       |                                      
|NET LOSS FOR THE PERIOD                          | $  (714,813)
========                                        | $    (19,954)
========                | $   (28,315)
========                
|LOSS PER SHARE - BASIC AND DILUTED               |                                                              | $          0.00
========              | $         0.00
========              
|WEIGHTED AVERAGE COMMON SHARES                   |                                                              | 21,700,7000
=========                 | 21,700,000
========                  

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

GLOBAL INNOVATIVE SYSTEMS INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (UNAUDITED)
(Expressed in US Dollars



|                                                             | Shares      | Amount        | Additional
Paid-in
Capital | Accumulated
Other
Comprehensive
Income
(Loss) | Deficit
Accumulated
in the
Development
Stage | Total
Stockholders'
Deficit
|------------------------------------------------------------ | ----------- | ------------- | -------------------------- | --------------------------------------------- | -------------------------------------------- | ---------------------------
|                                                             |             |               |                            |                                               |                                              |                            
|Initial capitalization of the company as of January 15, 1997 | 100         | $          67 | $             -            | $              -                              | $               -                            | $             67           
|                                                             |             |               |                            |                                               |                                              |                            
|Common stock issued at $1 Cdn April 15, 1998                 | 4,900       | 3,198         | -                          | -                                             | -                                            | 3,198                      
|                                                             |             |               |                            |                                               |                                              |                            
|Total comprehensive loss, 1998                               | -           | -             | -                          | 8,588                                         | (260,374)                                    | (251,786)                  
|                                                             |             |               |                            |                                               |                                              |                            
|Balance, September 30, 1998                                  | 5,000       | 3,265         | -                          | 8,588                                         | (260,374)                                    | (248,521)                  
|                                                             |             |               |                            |                                               |                                              |                            
|Total comprehensive loss, 1999                               | -           | -             | -                          | (14,339)                                      | (145,219)                                    | (159,558)                  
|                                                             |             |               |                            |                                               |                                              |                            
|Balance, September 30, 1999                                  | 5,000
===== | $3,265
====== | $ -
======                 | $(5,751)
=======                              | $(405,593)
=======                           | $(408,079)
=======         

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

GLOBAL INNOVATIVE SYSTEMS INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (UNAUDITED)
(Expressed in US Dollars)

|                                                       | Common Shares       | Additional
Paid-in
Capital | Accumulated
Other
Comprehensive
Income
(Loss) | Deficit
Accumulated
in the
Development
Stage | Total
Stockholders'
Deficit
|------------------------------------------------------ | ------------------- | -------------------------- | --------------------------------------------- | -------------------------------------------- | ---------------------------
|                                                       | Number              | Amount                    
|Balance, September 30, 1999 - Niew Industries Inc.     |                     |                            |                                               |                                              |                            
|carried forward                                        | 5,000               | $     3,265                | $            -                                | $     (5,751)                                | $   (405,593)              
|                                                       |                     |                            |                                               |                                              |                            
|Common stock redeemed at $1 Cdn on October 31, 1999    | (2,850)             | (1,861)                    | -                                             | -                                            | 1,861                      
|                                                       |                     |                            |                                               |                                              |                            
|Adjustment for the issuance of common stock on reverse |                     |                            |                                               |                                              |                            
|acquisition                                            | 11,997,850          | 10,596                     | -                                             | -                                            | (10,596)                   
|                                                       |                     |                            |                                               |                                              |                            
|Adjustment of debts to former stockholders of          |                     |                            |                                               |                                              |                            
|Niew Industries Inc. (Note 4)                          | -                   | -                          | 410,268                                       | -                                            | 10,596                     
|                                                       |                     |                            |                                               |                                              |                            
|Adjustment for the stockholders' equity of the Company |                     |                            |                                               |                                              |                            
|at the acquisition date (Note 4)                       | 9,700.000           | 9,700                      | 364                                           | -                                            | -                          
|                                                       | 21,700,000          | 21,700                     | 410,632                                       | (5,751)                                      | (403,732)                  
|                                                       |                     |                            |                                               |                                              |                            
|Net loss for the year                                  | -                   | -                          | -                                             | -                                            | (240,748)                  
|Foreign currency translation loss                      | -                   | -                          | -                                             | (4,176)                                      | -                          
|Total comprehensive loss                               | -                   | -                          | -                                             | (4,176)                                      | (240,748)                  
|                                                       |                     |                            |                                               |                                              |                            
|Balance, September 30, 2000                            | 21,700,000          | 21,700                     | 410,632                                       | (9,927)                                      | (644,480)                  
|                                                       |                     |                            |                                               |                                              |                            
|Net loss for the period                                | -                   | -                          | -                                             | -                                            | (68,472)                   
|Foreign currency translation gain                      | -                   | -                          | -                                             | 4,674                                        | -                          
|                                                       | -                   | -                          | -                                             | 4,674                                        | (68,472)                   
|                                                       |                     |                            |                                               |                                              |                            
|Balance, June 30, 2001                                 | 21,700,000
======== | $21,700
=======            | $410,632
=======                              | $(5,253)
========                            | $(712,952)
========        

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

GLOBAL INNOVATIVE SYSTEMS INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CHANGES IN CASH FLOWS 
(UNAUDITED)
(Expressed in US Dollars



|                                                | January 15,1997
(incorporation)
to June 30,
2001
Cumulative | Nine months ended June 30,
|----------------------------------------------- | ----------------------------------------------------------- | --------------------------
|                                                |                                                             | 2001                      
|                                                |                                                             |                           
|CASH PROVIDED BY (USED IN)                      |                                                             |                           
|Operating                                       |                                                             |                           
|Net loss for the period                         | $   (714,813)                                               | $    (68,472)             
|Adjustment to reconcile net loss for the period |                                                             |                           
|to cash used in operating activities            |                                                             |                           
|Depreciation                                    | 6,664                                                       | 1,287                     
|(Increase) decrease in assets                   |                                                             |                           
|Receivables                                     | (1,127)                                                     | (471)                     
|Investment tax credits refundable               | -                                                           | -                         
|Prepaid expenses                                | (6,697)                                                     | 2,410                     
|Increase (decrease) in liabilities              |                                                             |                           
|Accounts payable                                | 46,069                                                      | 13,747                    
|Accrued liabilities                             | 17,903                                                      | 6,441                     
|                                                | (652,001)                                                   | (45,058)                  
|                                                |                                                             |                           
|Financing                                       |                                                             |                           
|Bank overdraft                                  | 2,716                                                       | 2,716                     
|Loan payable to related party                   | 31,677                                                      | -                         
|Advances from stockholders                      | 707,613                                                     | 41,515                    
|Repayments to stockholders                      | (72,583)                                                    | (2,828)                   
|                                                | 669,423                                                     | 41,403                    
|                                                |                                                             |                           
|Investing                                       |                                                             |                           
|Cash acquired on reverse acquisition            | 10,064                                                      | -                         
|Purchase of licence                             | (23,342)                                                    | -                         
|Purchase of fixed assets                        | (13,318)                                                    | -                         
|                                                | (26,596)                                                    | -                         
|                                                |                                                             |                           
|DECREASE IN CASH                                | (9,174)                                                     | (3,655)                   
|                                                |                                                             |                           
|EFFECT OF FOREIGN EXCHANGE ON CASH              | (9,174)                                                     | 2,929                     
|                                                |                                                             |                           
|CASH AT BEGINNING OF PERIOD                     | -                                                           | 726                       
|                                                |                                                             |                           
|CASH AT END OF PERIOD                           | $                -
========                                 | $              -
=======  

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



GLOBAL INNOVATIVE SYSTEMS INC.
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(Expressed in US Dollars)

June 30, 2001 and 2000

1.   UNAUDITED FINANCIAL STATEMENTS

The interim financial statements for the nine month periods ended June 30, 2001 and 2000 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 the Company for the years ended September 30, 2000 and 1999 and the notes thereto included in the Company's annual report on Form 10-KSB.  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 acquirer.  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.



These accompanying consolidated 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, 2001, the Company has accumulated operating losses of $714,813 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 $550,000 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.  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 not include any adjustments that might arise from this uncertainty

.

GLOBAL INNOVATIVE SYSTEMS INC.
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
(Expressed in US Dollars)

June 30, 2001 and 2000





3.   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 derivative 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, adoption of the new standards did not affect its financial statements.



In 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 101 dealing with the revenue recognition, which is effective in the fourth quarter of the Company's 2001 fiscal year.  The Company does not expect its adoption to have a material effect on the Company's financial statements.





4.   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 transaction.



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.





5.   LOAN PAYABLE TO RELATED PARTY



The Company has borrowed $31,250 ($47,500 Canadian) from a person related to one of the directors.  The loan is unsecured and is without specific terms of repayment.  Interest is payable at 8%.  Interest of $1,870 was either accrued or paid during the period.







GLOBAL INNOVATIVE SYSTEMS INC.
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - Continued
(Expressed in US Dollars)

June 30, 2001 and 2000



6.    ADVANCES FROM STOCKHOLDERS AND DIRECTORS



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





|                               | June 30, 2001       | September 30, 2000 
|------------------------------ | ------------------- | -------------------
|                               |                     |                    
|Cash advances to the company   | $   270,215         | $   245,469        
|Repayments                     | (73,244)            | (70,416)           
|Reimbursable expenses          | 23,059              | 8,797              
|                               | $   220,030
======= | $   183,850
=======
|Average balance for the period | $   192,011
======= | $   119,535
=======



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

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  These statements relate to future events or our future financial performance.  In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expects", "plans", "anticipates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology.  These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, level of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

As used in this quarterly report, the terms "we", "us", "our", and Global Innovative mean Global Innovative Systems, Inc. and our subsidiary, unless otherwise indicated.  All dollar amounts refer to US dollars unless otherwise indicated.  The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report.

Other than the Letter of Intent that we signed with Energy Medicine Developments Corp., there have been no material developments since we filed our Annual Report on Form 10-KSB on January 16, 2001.

On June 18, 2001, we entered into a Letter of Intent with Energy Medicine Developments Corp., pursuant to which we have agreed to purchase all of the issued and outstanding shares of Energy Medicine in exchange for our common shares in an amount equalling at least sixty-five percent (65%) of our issued and outstanding common shares.  As part of the acquisition, we are to arrange a financing of $750,000 to be done by way of a convertible debenture.  Details of the proposed convertible debenture are contained in the Letter of Intent which is attached as an exhibit to this quarterly report.  Also as part of the acquisition, our current board of directors, as well as the officers of our company, will change.  Following completion of the acquisition, two of our current directors and officers will step down, and will be replaced by two directors and officers of Energy Medicine.  Completion of the acquisition is subject to the preparation and execution of a definitive acquisition agreement and both parties conducting and being satisfied with a due diligence investigation of the other party.

Energy Medicine Developments Inc. was incorporated in British Columbia, Canada in May, 1994, and is primarily involved in the treatment of multiple sclerosis and migraine headaches through the use of the "Enermed", a small battery powered device that emits extremely low frequency, patient specific, pulsed electromagnetic fields.  Energy Medicine's Enermed Therapy is carried out using the proprietary Bioelectric Frequency Analyzer to measure the strength or amplitude of bioelectromagnetic fields generated by the human body.  The Analyzer software processes the signals and identifies those with low amplitudes.  Proprietary treatment guidelines are used in conjunction with the Analyzer for each patient to select the frequencies that will be programmed into the Enermed device.  The Enermed device itself is housed in a small, plastic casing and consists of a computer chip and a solenoid coil and is powered by a 3 volt lithium battery.  The device is worn between four and twenty-four hours a day; the continuous exposure to subtle electromagnetic fields pulsing at frequencies that were predetermined for use by each specific patient brings symptomatic relief.

Plan of Operation

Our primary objective over the 12 months ending March 31, 2002, will be to complete development of Phase I and Phase II of our twin rotating asphalt mixing system (known as the "Trams System") for commercial sale, and to implement a sales and marketing program in connection with the sale of the Trams System.

As of the present date, Phase I of the Trams System requires further development and testing before it can be commercially released.  We have not yet commenced development of Phase II of the Trans System due to a lack of capital resources.  In addition to the development and testing work that must be performed on both Phase I and Phase II of the Trams System, a sales and marketing campaign must be implemented.

We have also acquired a license to manufacture a self-erecting silo which is different from the self-erecting silo that will be used in the Phase II of the Trams System.  Following the completion of Phase I and Phase II of the Trams System, we intend to manufacture this self-erecting silo for commercial sale.

Further development of Phase I and Phase II of the Trams System was suspended in fiscal 2000 to devote attention to the registration of our common shares under Section 12(g) of the Securities Exchange Act of 1934 so that we could obtain a quotation of our securities on the Over-the-Counter Bulletin Board.  Our common shares were registered under Section 12(g) of the Securities Exchange Act of 1934 in October, 2000 and we received confirmation from NASD Regulation, Inc. (OTC Compliance Unit) that our request for an unpriced quotation on the Over-the-Counter Bulletin Board was cleared on April 3, 2001.  Our shares were quoted and began trading on the Over-the-Counter Bulletin Board on April 17, 2001 under the symbol "GBIS".

We anticipate that we will be able to accomplish our plan of operations if we can raise additional financing.  Our actual expenditures and business plan may differ from our plan of operations.  Our board of directors may decide not to pursue our plan of operations as set out in this section.  In addition, we may modify our plan of operations based on the amount of available financing in the event that we cannot raise the required financing to accomplish our plan of operations.  We do not currently have any arrangement in place for any debt or equity financing which would enable us to satisfy the cash requirements of our plan of operations.

We anticipate that we will incur further operating losses in the foreseeable future.  We base this expectation in part on the assumption that we will incur substantial operating expenses in completing our plan of operations.  Our future financial results are also uncertain due to a number of factors, many of which are outside of our control.  These factors include, but are not limited to, the following:

1.	willingness of external investors to advance capital to us to finance continued development and production;

2.	general economic conditions, government environmental regulations and increased industry competition;

3.	uncertainty with respect to whether our Trams System can:

a) meet new British Columbia environmental regulations;

b) comply with environmental regulations in other North American jurisdictions; and

c) continue to meet new regulatory requirements as they arise;

4.	whether there will be a market for our Phase I or II Trams System once development is complete; and

5.	whether demand for the Trams System will be adequate to support economically viable production.

Due to our lack of operating history, there exists substantial doubt about our ability to continue as a going concern, as described in our independent accountant's report on, and the notes to, the consolidated audited financial statements for the year ended September 30, 2000.

Cash Requirements

We will require a minimum of approximately $550,000 over the period ending June 30, 2002 in order to accomplish our goals in connection with further development of the Trams System.  The cash requirements of $550,000 are based on our estimates for operational costs for the period ending June 30, 2002.  We estimate that approximately $30,000 will be required for further development of Phase I of the Trams System, $150,000 will be required for development of Phase II of the Trams System, $120,000 will be required to hire marketing and sales persons and to implement our planned sales and marketing program and $70,000 will be required to support an investor relations program.  The balance of $180,000 will be required to support general corporate and operating expenses.  To date, we have not raised any monies and accordingly, we have not proceeded with any of our planned operations.

We do not have sufficient funds on hand to complete our Phase I development but we believe that we will have access to funds sufficient to complete the development and negotiate the sale of the Phase I Trams System prototype.

We will require a minimum of approximately $1,750,000 over the period ending June 30, 2002 if we proceed with and complete the acquisition of Energy Medicine.  We estimate that approximately $250,000 will be required for management expenses and $1.5 million will be required to cover the costs of the product.

We intend to obtain our future cash requirements through the sale of our equity securities or by obtaining further debt financing.  In the event that we are not successful in raising additional financing, we anticipate that we will not be able to sustain our business operations without further short-term financing from our controlling shareholders.  Deficiencies in cash will be covered by additional loans and advances by our directors until such time that we can attract equity investors.  Should we be unable to attract equity investors, cutbacks and deferrals of the planned development of Phase I and Phase II of the Trams System and the proposed acquisition of Energy Medicine would occur until such funds were otherwise available externally or from the proceeds received on sale of Phase I of the Trams System prototype.  Alternatively, we may have to consider a joint venture in order to proceed with our plans of operations.

Research and Development

As at June 30, 2001, we have expended $407,607 on direct research and development on the Trams System.  We will continue to expend a significant amount of time in the next 12 months on research and development activities.  These activities will focus on:

(a)	further improvement of Phase I of the Trams System to make it more efficient and to ensure that it meets government standards for pollution control; and

(b)	commencement of the development of Phase II of the Trams System.

We estimate that the completion of Phase I will require approximately $30,000, consisting of $6,000 for testing, $14,000 for materials and $10,000 for labour and subcontractors.  At the completion of Phase I, we intend to sell our prototype and use the sale proceeds to finance the construction of a second prototype of the Trams System.

Phase II of the Trams System will consist of a second trailer which will contain a self-erecting silo and separate storage tanks to carry and store asphalt, diesel fuel and propane fuel.  We estimate that the cost of developing and completing the Phase II plant will be $150,000, $84,000 for testing and materials, $16,000 for general corporate and overhead expenses and $50,000 for labour and subcontractors.

If we proceed with and complete the acquisition of Energy Medicine, we may be required to incur significant monies on Energy Medicine's Enermed product to make it commercially viable.

To date, we have not raised any monies and accordingly, we have not proceeded with any of our planned operations.

Sales and Marketing

We anticipate that the commercial version of the Trams System will consist of a package of the Phase I plant and the Phase II trailer but we also anticipate that these machines will be sold separately.  Upon completion of Phase II, we intend to transport the Trams System plant to a gravel pit, the location of which has already been determined, and to record set up time, conduct anti-pollution equipment testing and record promotional videos.

If we proceed with and complete the acquisition of Energy Medicine, we may be required to expend significant monies on the marketing of its products to develop sales and a brand name for the product.

Personnel

Over the twelve months ending June 30, 2002, should we be in a position to proceed with development of Phase II of the Trams System project, we anticipate an increase in the number of employees we retain, as we intend to hire two more employees.  In the event that we go forward with the acquisition of Energy Medicine Developments Corp. by our company, as set out in the Letter of Intent with between the two parties, we may be required to increase the number of people we currently employ.

If we complete the acquisition of Energy Medicine Developments Corp., we will be relying on the technical expertise of Energy Medicine's current management.  We will retain Energy Medicine's current management team, who will remain with our company for between five and ten years, depending on management agreements yet to be negotiated.  If, however, we are unable to hire suitable sales, marketing and operational personnel, we may not be able to successfully develop Energy Medicine's technology.  We will likely hire a significant number of additional personnel in the event that we complete the acquisition of Energy Medicine.  Competition for these individuals in the technology sector is intense, and we may not be able to attract, assimilate, or retain additional highly qualified personnel in the future.  The failure to attract, integrate, motivate and retain these employees could harm our business.

Purchase or Sale of Equipment

We do not anticipate that we will purchase any significant equipment for our present operations with respect to the Trans System over the twelve months ending June 30, 2002.  With respect to any future operations which may arise from the Letter of Intent between Energy Medicine Developments Corp. and our company, dated June 18, 2001, we may be required to purchase equipment during the period ending June 30, 2002.

RISK FACTORS

An investment in our common shares involves a number of very significant risks.  You should carefully consider the following risks and uncertainties in addition to other information in this quarterly report in evaluating us and our business before purchasing shares of common stock.  Our business, operating results and financial condition could be seriously harmed due to any of the following risks.  The trading price of the shares of our common stock could decline due to any of these risks, and you could lose all or part of your investment.

WE ARE a Development Stage Company with a Limited Operating History Which Makes IT DIFFICULT TO EVALUATE WHETHER WE WILL OPERATE PROFITABLY.

We are a development stage company primarily involved in the development, manufacture and marketing of a simplified asphalt mixing system that is intended to be compact, environmentally friendly and easy to mobilize.  We call our product the Trams System.  As a relatively new company, we have not started selling our product, and as a result, we do not have a historical record of sales and revenues nor an established business track record.  We have not earned any revenues since our formation.

Unanticipated problems, expenses and delays are frequently encountered in ramping up sales and developing new products.  Our ability to successfully develop, produce and sell our Trams System and to eventually generate operating revenues will depend on our ability to, among other things:

1.	successfully design, develop and market both Phase I and Phase II of the Trams System;

2.	successfully develop our second prototype of the Trams System;

3.	successfully develop a customer base for and market acceptance of our Trams System; and

4.	obtain the necessary financing to implement our business plan and plan of operations.

Given our limited operating history, lack of sales and operating losses, there can be no assurance that we will be able to achieve any of these goals and develop a sufficiently large customer base to be profitable.

since we have a history of net losses and a lack of established revenues, we expect to incur net losses in the future.

We did not generate any revenues and incurred a cumulative loss of $714,813 for the period from January 15, 1997 (incorporation) to June 30, 2001.  Although we anticipate that we will be able to generate revenues in the future, we also expect development costs and operating costs to increase as well.  Consequently, we expect to incur operating losses and negative cash flow until our Trams System gains sufficient market acceptance to generate a commercially viable and sustainable level of sales, additional Trams System prototypes are developed and commercially released and sales of such products are made so that we are operating in a profitable manner.  These circumstances raise substantial doubt about our ability to continue as a going concern as described in an explanatory paragraph to our independent accountant's report on the September 30, 2000 audited financial statements.  To the extent that such expenses are not followed by revenues in a timely manner, our business, results of operations, financial condition and prospects would be materially adversely affected.

WE ARE UNCERTAIN THAT WE WILL BE ABLE TO OBTAIN ADDITIONAL CAPITAL THAT MAY BE NECESSARY TO ESTABLISH OUR BUSINESS.

We incurred a cumulative net loss for the period from January 15, 1997 (incorporation) to June 30, 2001 of $714,813.  As a result of these losses and negative cash flows from operations, our ability to continue operations will be dependent upon the availability of capital from outside sources unless and until we achieve profitability.

Our future capital requirements will depend on many factors, including cash flow from operations, progress in developing new products, competing knowledge and market developments and an ability to successfully market our products.  Our recurring operating losses and growing working capital needs will require us to obtain additional capital to operate our business before we have established that our business will generate significant revenue.  We do not have sufficient funds on hand to complete our Phase I development but we believe we have access to funds sufficient to complete the development and negotiate the sale of the Phase I Trams System prototype.  We have predicted that we will require approximately $550,000 over the period ending September 30, 2001 in order to accomplish our goals of designing, developing, manufacturing and marketing the Trams System.  However, there is no assurance that actual cash requirements will not exceed our estimates.  In particular, additional capital may be required in the event that we:

1. incur unexpected costs in completing the development of our Trams System or encounter any unexpected technical or other difficulties;
2. incur delays and additional expenses as a result of technology failure;
3. are unable to create a substantial market for our Trams System; or
4. incur any significant unanticipated expenses.

The occurrence of any of the aforementioned events could adversely affect our ability to meet our business plans.

We will depend almost exclusively on outside capital to pay for the continued development of the Trams System.  Such outside capital may include the sale of additional stock and/or commercial borrowing.  There can be no assurance that capital will be available if necessary to meet these continuing development costs or, if the capital is available, it will be on terms acceptable to us.  The issuance of additional equity securities by us would result in a significant dilution in the equity interests of our current stockholders.  Obtaining commercial loans, assuming those loans would be available, would increase our liabilities and future cash commitments.  If we were unable to obtain financing in the amounts and on terms deemed acceptable, our business and future success may be adversely affected.

Our Failure to Effectively Manage Our Growth Could Harm Our Future Business Results and may strain our managerial and operational resources.

As we proceed with the development of our Trams System, we expect to experience significant and rapid growth in the scope and complexity of our business.  We will need to add staff to market our products, manage operations, handle sales and marketing efforts and perform finance and accounting functions.  We will be required to  hire a broad range of additional personnel in order to successfully advance our operations.  This growth is likely to place a strain on our management and operational resources.  The failure to develop and implement effective systems, or to hire and retain sufficient personnel for the performance of all of the functions necessary to effectively service and manage our potential business, or the failure to manage growth effectively, could have a materially adverse effect on our business and financial condition.

FUTURE SALES OF COMMON STOCK BY OUR EXISTING SHAREHOLDERS COULD REDUCE THE PRICE OF OUR COMMON STOCK.

The market price of our common stock could decline as a result of sales by our existing stockholders of shares of common stock in the market.  Likewise, the perception that these sales could occur may result in the decline of the market price of our common stock.  These sales also might make it more difficult for us to sell equity securities in the future at a time and at a price we deem appropriate.

UNLESS WE CAN ESTABLISH SIGNIFICANT SALES OF OUR TRAMS SYSTEM, OUR POTENTIAL REVENUES MAY BE SIGNIFICANTLY REDUCED.

We expect that a substantial portion, if not all, of our future revenue will be derived from the sale of our Trams System.  We expect that the Trams System and any similar products we develop will account for a majority, if not all, of our revenue for the foreseeable future.  Market acceptance of the Trams System is, therefore, critical to our future success and to our ability to generate revenues.  Failure to achieve market acceptance of the Trams System, as a result of competition, technological change, or otherwise, would significantly harm our business. Our future financial performance will depend in significant part on the successful introduction and market acceptance of the Trams System, and on the development, introduction and market acceptance of any future products.  There can be no assurance that we will be successful in marketing the Trams System or any future products and any failure to do so would significantly harm our business.

IF WE ARE UNABLE TO ACHIEVE MARKET ACCEPTANCE FOR OUR TRAMS SYSTEM, WE WILL BE UNABLE TO BUILD OUR BUSINESS.

Our success will depend on the acceptance of our products by the asphalt industry.  Achieving such acceptance may require a significant marketing investment.  We cannot assure you that our existing or proposed products will be accepted by the asphalt industry at sufficient levels to support our operations and build our business.

The Loss of OUR Key Technical Individuals Would Have an Adverse Impact on Future Development and could impair our ability to succeed.

Our performance is substantially dependent on the technical expertise of Walter Niemi and Lloyd Olson and our ability to continue to hire and retain such personnel.  The loss of either Walter Niemi or Lloyd Olson or any of our key officers could have a materially adverse effect on our business, development, financial condition, and operating results. We do not maintain "key person" life insurance on any of our directors or senior executive officers but we do have life insurance on Walter Niemi and Lloyd Olson.

Trading of Our Stock May Be Restricted by the SEC's Penny Stock Regulations Which May Limit a Stockholder's Ability to Buy and Sell our Stock.

The U.S. Securities and Exchange Commission has adopted regulations which generally define "penny stock" to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions.  Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors."  The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse.  The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market.  The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account.  The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation.  In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction.  These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules.  Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities.  We believe that the penny stock rules discourage investor interest in and limit the marketability of, our common stock.

SINCE A RELATIVELY SMALL GROUP OF STOCKHOLDERS OWN A LARGE PERCENTAGE OF OUR OUTSTANDING SHARES, THEY ARE ABLE TO SIGNIFICANTLY INFLUENCE MATTERS REQUIRING STOCKHOLDER APPROVAL.

Stockholders owning a majority (i.e. 51%) of our outstanding voting stock represent the ultimate control over our affairs.  Three stockholders currently control approximately 55% of the outstanding shares of our common stock.  As a result of this ownership, these stockholders will likely be able to approve any major transactions including the election of directors without the approval of the other shareholders.

WE DO NOT EXPECT TO DECLARE OR PAY ANY DIVIDENDS.

We have	 not declared or paid any dividends on our common stock since our inception, and we do not anticipate paying any such dividends for the foreseeable future.

BECAUSE OF OUR LIMITED OPERATING HISTORY, IT IS DIFFICULT TO PREDICT OUR FUTURE REVENUES.

As a result of our limited operating history and the new technology which we seek to introduce into the markets in which we compete, we are unable to accurately forecast our revenues.  Our current and future expense levels are based largely on our plan of operation and estimates of future revenues and are to a large extent fixed.

Sales and operating results generally depend on our ability to develop a base of customers and businesses who will purchase or lease Trams Systems from us.  We may be unable to adjust spending in a timely manner to compensate for any unexpected revenue shortfall.  Accordingly, any significant shortfall in estimated revenues in relation to our planned expenditures would have an immediate adverse effect on our business, prospects, financial condition and results of operations.

Further, as a strategic response to changes in the competitive environment, we may from time to time make certain pricing, service or marketing decisions that could have a materially adverse effect on our business and financial condition and results of operations.

WE EXPECT FLUCTUATIONS IN OUR QUARTERLY OPERATING RESULTS IN THE FUTURE.

We expect to experience significant fluctuations in our future quarterly operating results due to a variety of factors, many of which are outside our control.  Factors that may adversely affect our quarterly operating results include but are not limited to:

1. our ability to attract and retain customers and maintain customer satisfaction;

2. our ability to develop a base of manufacturers and users of asphalt plants willing to utilize the Trams System for paving applications;

3. the announcement or introduction of new services and products by us and by our competitors;

4. an increase in consumer acceptance of the Trams System, or other systems and products offered by us;

5. our ability to upgrade and develop our Trams Systems and attract new personnel in a timely and effective manner;

6. the amount and timing of operating costs and capital expenditures relating to expansion of our business, operations and infrastructure;

7. governmental regulation;

8. general economic conditions; and

9. economic conditions specific to the asphalt manufacturing and paving industries.

BECAUSE OF THE TYPE OF INDUSTRY IN WHICH WE ARE INVOLVED, WE EXPECT TO EXPERIENCE SEASONALITY IN OUR BUSINESS.

We expect that we will experience seasonality in our business, reflecting a combination of seasonal fluctuations in construction and paving projects' seasonality patterns.  Due to the foregoing factors, one or more future quarters our operating results may fall below the expectations of securities analysts and investors.  In such event, our financial performance would likely be materially adversely affected.

WE WILL HAVE TO EXPEND SUBSTANTIAL FUNDS ON ADVERTISING, SALES AND MARKETING IN THE FUTURE.

We have not incurred significant advertising, sales and marketing expenses to date.  To increase awareness for the Trams System, we expect to spend significantly more on advertising, sales and marketing in the future. If our marketing strategy is unsuccessful, we may not be able to recover these expenses or even generate any revenues.  We will be required to develop a marketing and sales campaign that will effectively demonstrate the advantages of our, services and products.  To date, our experience with respect to marketing the Trams System is very limited.  We may also elect to enter into agreements or relationships with third parties regarding the promotion or marketing of the Trams System.  There can be no assurance that we will be able to establish adequate sales and marketing capabilities, that we will be able to enter into marketing agreements or relationships with third parties on financially acceptable terms, or that any third parties with whom we enter into such arrangements will be successful in marketing and promoting the Trams System, or other products and services offered by us.

OUR FUTURE REVENUES ARE DEPENDENT ON THE ACCEPTANCE OF THE TRAMS SYSTEM.

Our future revenues and our ability to generate profits in the future are substantially dependent upon the widespread acceptance and use of the Trams System.  There can be no assurance that the Trams System will become widely accepted or that a sufficiently broad base of consumers will use the Trams System.

We will rely on manufacturers and users of asphalt plants who have historically used traditional means for asphalt manufacturing.  To ensure our success, these manufacturers and users of asphalt plants must accept and utilize our novel Trams System.  The Trams System may not be accepted as a viable alternative to traditional asphalt manufacturing processes for a number of reasons, including potentially inadequate development of the necessary infrastructure or delayed development of related technologies and performance improvements.

WE EXPECT TO ENCOUNTER RISKS IF WE ENTER INTO NEW BUSINESS AREAS.

We may choose to expand our operations by improving the Trams System or even by developing new systems for the asphalt industry or expanding our market presence through relationships with third parties.  In addition, we may pursue the acquisition of new or complementary businesses, products or technologies, although we have no present understandings, commitments or agreements with respect to any material acquisitions or investments.  There can be no assurance that we would be able to expand our efforts and operations in a cost-effective or timely manner or that any such efforts would increase overall market acceptance.

Expansion of our operations in this manner would also require significant additional expenses and development, operations and editorial resources and may strain our management, financial and operational resources.  The lack of market acceptance of such efforts or our inability to generate satisfactory revenues from such expanded services or products to offset their cost could have a materially adverse effect on our business, prospects, financial condition and results of operations.

In connection with the proposed acquisition of Energy Medicine Development Corp., we face the following risks:

1. Need For Additional Financing

If we proceed with and complete the acquisition of Energy Medicine Developments Corp., we anticipate that we will require approximately $1,750,000 over the next twelve months in order to develop, test and utilize Energy Medicine's technology.  We intend to raise this money through the sale of our equity securities or by debt financing.

2. Limited Operating History

Even if we complete the acquisition of Energy Medicine, we anticipate that we will not generate any revenues until we have developed, tested and produced a commercially viable product which utilizes Energy Medicine's technology.  There is no assurance that we will be able to produce a commercially viable product using Energy Medicine's technology.

3. Standards For Acquisition Of Energy Medicine Development Corp.

There can be no assurance that we will proceed with the acquisition of Energy Medicine.  There is no assurance that we will be able to negotiate the acquisition of Energy Medicine on terms favorable to us.  We have not established a specific length of operating history or a specified level of earnings, assets, net worth or other criteria which we require Energy Medicine to have achieved, and without which we would not consider a business combination in any form.

4. Speculative Nature Of Our Proposed Operations

The success of our proposed acquisition will depend to a great extent on the operations, financial condition and management.  In the event that we complete the acquisition of Energy Medicine, the success of our operations will likely be dependent upon management of the successor entity together with a number of other factors beyond our control.

THERE MAY BE THE POSSIBILITY OF VOLATILE SHARE PRICES.

The trading price of our common shares may be subject to wide fluctuations.  Trading prices of the common shares may fluctuate in response to a number of factors, many of which are beyond our control. In addition, the stock market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of such companies.  Broad market and industry factors may adversely affect the market price of the common shares, regardless of our operating performance.

In the past, following periods of volatility in the market price of a company's securities, securities class-action litigation has often been instituted.  Such litigation, if instituted, could result in substantial costs for us and a diversion of management's attention and resources.

OUR CURRENT AND FUTURE SHAREHOLDERS MAY EXPERIENCE DILUTION IN THE FUTURE.

The grant and exercise of warrants of creditors or otherwise or stock options would likely result in a dilution of the value of our common shares.  Moreover, we may seek authorization to increase the number of our authorized shares and to sell additional securities and/or rights to purchase such securities at any time in the future.  Dilution of the value of the common shares would likely result from such sales.

Part II - OTHER INFORMATION

Item 1.	Legal Proceedings.

We are not a party to any pending legal action, suit, or proceeding nor is any of our property the subject of any legal proceeding.  There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

Item 2.	Changes in Securities.

We did not issue any shares from treasury during the quarter ended June 30, 2001.

Item 3.	Defaults Upon Senior Securities.

None.

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

None.

Item 5.	Other Information.

On June 18, 2001, we entered into a Letter of Intent with Energy Medicine Developments Corp., pursuant to which we have agreed to purchase all of the issued and outstanding shares of Energy Medicine in exchange for our common shares in an amount equalling at least sixty-five percent (65%) of our issued and outstanding common shares.  As part of the acquisition, we are to arrange a financing of $750,000 to be done by way of a convertible debenture.  Details of the proposed convertible debenture are contained in the Letter of Intent which is attached as an exhibit to this quarterly report. Also as part of the acquisition, our current board of directors, as well as the officers of our company, will change.  Following completion of the acquisition, two of our current directors and officers will step down, and will be replaced by two directors and officers of Energy Medicine.  Completion of the acquisition is subject to the preparation and execution of a definitive acquisition agreement and both parties conducting and being satisfied with a due diligence investigation of the other party.

Energy Medicine Developments Inc. was incorporated in British Columbia, Canada in May, 1994, and is primarily involved in the treatment of multiple sclerosis and migraine headaches through the use of the "Enermed", a small battery powered device that emits extremely low frequency, patient specific, pulsed electromagnetic fields.  Energy Medicine's Enermed Therapy is carried out using the proprietary Bioelectric Frequency Analyzer to measure the strength or amplitude of bioelectromagnetic fields generated by the human body.  The Analyzer software processes the signals and identifies those with low amplitudes.  Proprietary treatment guidelines are used in conjunction with the Analyzer for each patient to select the frequencies that will be programmed into the Enermed device.  The Enermed device itself is housed in a small, plastic casing and consists of a computer chip and a solenoid coil and is powered by a 3 volt lithium battery.  The device is worn between four and twenty-four hours a day; the continuous exposure to subtle electromagnetic fields pulsing at frequencies that were predetermined for use by each specific patient brings symptomatic relief.

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

Reports on Form 8-K

We did not file any Reports on Form 8-K during the quarter ended June 30, 2001.

Exhibits

Exhibits Required by Item 601 of Regulation S-B

(3) Articles of Incorporation and By-laws

3.1 Charter (filed as an exhibit to our Registration Statement on Form 10SB on April 11, 2000, and incorporated herein by reference)

3.2 Articles of Incorporation (filed as an exhibit to our Registration Statement on Form 10SB on April 11, 2000, and incorporated herein by reference)

3.3 Bylaws (filed as an exhibit to our Registration Statement on Form 10SB on April 11, 2000, and incorporated herein by reference)

(10) Material Contracts

10.1 Letter of Intent between Energy Medicine Developments Corp. and Global Innovative Systems Inc. dated June 18, 2001



SIGNATURES

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

GLOBAL INNOVATIVE SYSTEMS, INC.

By:  /s/ Helge FreudentheilHelge Freudentheil, President/Director
Date: August 10, 2001

By:  /s/ Ken Bergestad
Ken Bergestad, Vice President/Director
Date: August 10, 2001

By:  /s/ Walter Niemi
Walter Niemi, Secretary/Treasurer/Director
Date: August 10, 2001

By:  /s/ Robert Stark
Robert Stark, Vice President/Director
Date: August 10, 2001