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)
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|Nevada(State or other jurisdiction of incorporation or organization) |  | 98-0217653(I.R.S. Employer Identification No.)
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|5975 Selkirk Crescent, Prince George, BC, Canada  V2N 2G9(Address of principal executive offices)
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|(250) 964-2692(Issuer's telephone number)
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|not applicable(Former name, former address and former fiscal year, if changed since last report)
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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:

36,906,509 common shares issued and outstanding as at February 1, 2002

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

Part I - FINANCIAL INFORMATION

Item 1.	Financial Statements.

Our consolidated 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 consolidated interim financial statements for the quarter ended December 31, 2001 include all adjustments necessary in order to ensure that the consolidated financial statements are not misleading.

Prince George, British Columbia
Date:  February 14, 2002

/s/ Ken BergestadDirector of Global Innovative Systems, Inc.

|                                  |                                                       | Global Innovative Systems Inc.               
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|                                  |                                                       | (A Development Stage Company)                
|                                  |                                                       | Consolidated Financial Statements            
|                                  |                                                       | For the three-month periods ended            
|                                  |                                                       | December 31, 2001 and 2000                   
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|Consolidated Financial Statements |                                                      
|                                  | Consolidated Balance Sheets                           |                                              
|                                  | Consolidated Statements of Operations                 |                                              
|                                  | Consolidated Statements of Changes in Capital Deficit
|                                  | Consolidated Statements of Cash Flows                
|                                  | Notes to the Consolidated Financial Statements       

|Global Innovative Systems Inc.(A Development Stage Company)
Consolidated Balance Sheets(Amounts Expressed in US dollars)
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|Total Liabilities and Capital Deficit                                                                                   
|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 - Amounts expressed in US dollars)
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|Loss before other item                                                                                                                         
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|Net loss for the period                                                                                                                        
|Loss per share - basic                                                                                                                         
|Weighted average common shares outstanding                                                                                                     
|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 Capital Deficit(Unaudited Amounts expressed in US dollars)
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|Initial capitalization of the Company as of January 15, 1997                                                                                                
|Common stock issued at C$1  April 15, 1998                                                                                                                  
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|Comprehensive loss for the period                                                                                                                           
|Balance, September 30, 1998                                                                                                                                 
|Comprehensive loss for the year                                                                                                                             
|Balance, September 30, 1999                                                                                                                                 
|Common stock redeemed on October 31, 1999                                                                                                                   
|Adjustment for the issuance of common stock on reverse acquisition                                                                                          
|Adjustment for settlement of debts to former stockholders of Niew Industries Inc.                                                                           
|Adjustment for the stockholders' equity of the Company at the acquisition date                                                                              
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|Net loss for the year                                                                                                                                       
|Foreign currency translation loss                                                                                                                           
|Total comprehensive loss                                                                                                                                    
|Balance, September 30, 2000                                                                                                                                 
|Net loss for the year                                                                                                                                       
|Foreign currency translation gain                                                                                                                           
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|Balance, September 30, 2001                                                                                                                                 
|Shares advanced in contemplation of acquisition (Note 6)                                                                                                    
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|Net loss for the period                                                                                                                                     
|Foreign currency translation gain                                                                                                                           
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|Balance, December 31, 2001 (Unaudited)                                                                                                                      
|The accompanying notes are an integral part of these consolidated financial statements.                                                                     

|Global Innovative Systems Inc.(A Development Stage Company)
Consolidated Statements of Cash Flows
(Unaudited - Amounts expressed in US dollars)
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|Supplementary Information:                                                                                                                     
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|The accompanying notes are an integral part of these consolidated financial statements.                                                        

|Global Innovative Systems Inc.(A Development Stage Company)
Notes to the Consolidated Financial Statements(Unaudited - Amounts expressed in US dollars)
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|December 31, 2001 and 2000                                                                                                                             
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|Global Innovative Systems Inc.(A Development Stage Company)
Notes to the Consolidated Financial Statements(Unaudited - Amounts expressed in US dollars)
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|December 31, 2001 and 2000                                                                                                                             
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|Global Innovative Systems Inc.(A Development Stage Company)
Notes to the Consolidated Financial Statements(Unaudited - Amounts expressed in US dollars)
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|December 31, 2001 and 2000                                                                                                                             
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|Global Innovative Systems Inc.(A Development Stage Company)
Notes to the Consolidated Financial Statements(Unaudited - Amounts expressed in US dollars)
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|December 31, 2001 and 2000                                                                                                                             
|6.                                                                                                                                                     
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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.

Recent Acquisition

As described in our annual report on Form 10-KSB for the year ended September 30, 2001 (filed on January 15, 2002), on October 2, 2001, we entered into an Acquisition Agreement with Energy Medicine Developments Corp., a Delaware corporation, pursuant to which we agreed to purchase all of the issued and outstanding shares of Energy Medicine Developments Corp. in exchange for 18,000,000 of our common shares.  At the time that our annual report was filed, we had issued 15,206,509 of these 18,000,000 of our common shares as an advance in this transaction but we had not distributed any of these common shares to the shareholders of Energy Medicine Developments Corp. because we did not have agreements detailing the terms of the share exchange directly with each individual shareholder.  Energy Medicine Developments Corp. owns the world-wide marketing and distribution rights to the Enermed Therapy and the Enermed device as described below.

Also on October 2, 2001, and also as described in our annual report on Form 10-KSB for the year ended September 30, 2001, we entered into a Purchase Agreement with Energy Medicine Developments (North America) Inc., a company incorporated in the province of British Columbia.  Pursuant to the terms of the Purchase Agreement, we agreed to purchase 100% of Energy Medicine Developments (North America) Inc.'s issued and outstanding shares for a purchase price of $300,000.  As at the date of our quarterly report, the acquisition of 100% of Energy Medicine Developments (North America) Inc.'s issued and outstanding shares had not been completed and all parties had agreed to renegotiate the terms of the acquisition of Energy Medicine Developments (North America) Inc.  Energy Medicine Developments (North America) Inc. operates the two treatment centers for the Enermed device and the Enermed Therapy.

Energy Medicine Developments (North America) Inc. is primarily involved in the treatment of multiple sclerosis and migraine headaches using extremely low frequency (ELF), patient specific, pulsed electromagnetic fields.  The treatment is identified by the trade name "Enermed Therapy".  Energy Medicine Developments (North  America) Inc. is also heavily involved in research using this specific Enermed Therapy, and is a leader in the clinical application of pulsed electromagnetic therapies.

Since the execution of the Acquisition Agreement with Energy Medicine Developments Corp. and the Purchase Agreement with Energy Medicine Developments (North America) Inc., we have been engaged in negotiating the terms of one comprehensive Agreement and Plan of Share Exchange with each of the shareholders of each of these companies, which would incorporate and expand upon the terms of the Acquisition Agreement and the Purchase Agreement.

Two of our directors are shareholders and officers of Energy Medicine Developments Corp. and shareholders, directors and officers of Energy Medicine Developments (North America) Inc.  At the date we entered into the original agreements to purchase Energy Medicine Developments Corp. and Energy Medicine Developments (North America) Inc., these directors were dealing at arms' length with our company.  They were subsequently appointed in November, 2001.  Until the completion of the transactions (as reported on our Form 8-K filed on February 7, 2002), all of the issued and outstanding shares of Energy Medicine Developments Corp. and Energy Medicine Developments (North America) Inc. were owned by the same 22 shareholders.

We have now entered into an Agreement and Plan of Share Exchange with three of the individual shareholders of each of Energy Medicine Developments Corp. and of Energy Medicine Developments (North America) Inc. for the acquisition of their respective interests in both of these companies totalling, in the aggregate, approximately 84% of the issued and outstanding shares of each of these companies.  As at the date of this quarterly report, pursuant to these Agreements and Plans of Share Exchange, we have completed the acquisition of these three shareholders' shares of Energy Medicine Developments Corp. and, as a result, we now own approximately 84% of the issued and outstanding shares of Energy Medicine Developments Corp., for which we exchanged an aggregate total of 15,204,649 of our common shares.  We have not yet closed the acquisition of any of the shares of Energy Development (North America) Inc.

The Enermed Therapy TM

Using the proprietary bioelectric frequency analyzer, Energy Medicine Developments (North America) Inc. is able to measure the strength, or amplitude of bioelectromagnetic fields generated by the human body.  The area of interest to Energy Medicine Developments (North America) Inc. is between 0.5 and 25.5 hz (oscillations per second).  The bioelectric frequency analyzer software processes these signals and identifies those with low amplitudes.  Proprietary treatment guidelines are used in conjunction with the bioelectric frequency analyzer analysis for each patient to select the frequencies that will be programmed into the Enermed device.

The Enermed device is housed in a round, lightweight plastic casing just over 1.5 inches in diameter.  It consists of a computer chip and a solenoid coil and is powered by a replaceable 3 volt lithium battery.  Patients wear the Enermed device between four and 24 hours a day.  This continuous exposure to subtle electromagnetic fields (about the strength of the earth's magnetic field), pulsing at frequencies appropriate for the unique bioelectromagnetic and symptom profile of the client is what brings about symptomatic relief.

Treatment Delivery

The Enermed device is not an over-the-counter product, nor one that untrained technicians or medical practitioners can deliver.  Currently all patients seeking treatment must visit one of two treatment facilities in Canada, either the Vancouver Center, which has been operating since 1995, or the Toronto Center which opened in 1997.   These treatment centers also function as service centers for customers who require repairs to or replacement of their Enermed device. Training manuals and quality control procedures based on years of clinical experience and research results will ensure that new technicians are trained to the highest standards.

Plan of Operation

Our primary objective over the 12 months ending December 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.  In addition, we will proceed with the implementation of a sales and marketing program for the Enermed device and the Enermed Therapy and we anticipate that we will proceed with the acquisition of Energy Medicine Developments (North America) Inc.

As of the date of this quarterly report, 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.  As at the date of this quarterly report, because we have recently focussed our attention on the acquisition of Energy Medicine Developments Corp. and Energy Medicine Developments (North America) Inc., we have not returned our focus to the further development of Phase I or Phase II of the Trams System.

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 of the Trams System and the implementation of a sales and marketing program for the Enermed device and Enermed therapy;

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

3.	uncertainty with respect to whether our products can:

a) meet British Columbia regulations;

b) comply with 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 products once development is complete;

5.	whether demand for the products will be adequate to support economically viable production;

6.	whether there will be continued and expanded market acceptance of the Enermed device and the Enermed therapy.

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 auditors' report on, and the notes to, the consolidated financial statements for the year ended September 30, 2001.

Cash Requirements

Over the twelve month period ending December 31, 2002, we anticipate that we will require $550,000 to fund our operations and 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 December 31, 2002.  With respect to the Trams System, 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.

We will require a minimum of approximately $1,000,000 over the twelve months ending December 31, 2002 in connection with the recent acquisition of Energy Medicine Developments Corp. and the proposed acquisition of Energy Medicine Developments (North America) Inc.  We estimate that approximately $250,000 will be required for management expenses and $750,000 will be required to cover the costs of the ongoing development, clinical testing and clinical trials of new products related to the Enermed technology and for the implementation of a sales and marketing program for the Enermed device and the Enermed Therapy.

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 Trams development or the ongoing development of Enermed products 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 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 implementation of a sales and marketing program of the Enermed device and Enermed Therapy would occur until such funds were otherwise available externally.  Alternatively, we may have to consider a joint venture in order to proceed with our plans of operations.

Product Research and Development

During the quarter ended December 31, 2001, we expended $1,892 on research and development on the Trams System.  During the quarter ended December 31, 2000, we expended $1,578 on research and development of the Trams System. If sufficient capital is available, we will continue to expend time in the next 12 months on research and development activities on the Trams System, which will include:

(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.

Upon completion of the acquisition of Energy Medicine Developments Corp. and Energy Medicine Developments (North America) Inc., we may be required to incur significant monies on Energy Medicine's product and technologies to make them commercially viable in new markets.

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

Purchase of Significant Equipment

We do not intend to purchase any significant equipment over the twelve months ending December 31, 2002.  Any monies raised by our company will first be expended on our plans with respect to the Enermed device and the Enermed Therapy.

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.

In connection with the acquisition of Energy Medicine Developments Corp. and Energy Medicine Developments (North America) Inc., we may be required to expend significant monies on the implementation of a sales and marketing program for the Enermed Therapy and Enermed device to develop sales and a brand name for the product.

Employees

Over the twelve months ending December 31, 2002, we anticipate an increase in the number of employees we retain to five (5), in the event that we are able to proceed with the development of Phase II of the Trams System.  Following the completion of the acquisition of Energy Medicine Developments Corp., we also expect an increase in the number of employees we retain.  Since 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 the final terms and conditions of the management agreements which are yet to be negotiated and executed.  If, however, we are unable to hire suitable sales, marketing and operational personnel, we may not be able to successfully implement a sales and marketing program and establish acceptance of Energy Medicine's technology.  We will likely hire a significant number of additional personnel for Energy Medicine Developments Corp.  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.

RISK FACTORS

Much of the information included in this quarterly report includes or is based upon estimates, projections or other "forward looking statements".  Such forward looking statements include any projections or estimates made by us and our management in connection with our business operations.  While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein.

Such estimates, projections or other "forward looking statements" involve various risks and uncertainties as outline below.  We caution the reader that important factors in some cases have affected and, in the future, could materially affect actual results and cause actual results to differ materially from the results expressed in any such estimates, projections or other "forward looking statements".

Our common shares are considered speculative during our search for a new business opportunity.  Prospective investors should consider carefully the risk factors set out below.

Risks Related to our Current Business Operations

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 which is involved in (a) the development, manufacture and marketing of a simplified asphalt mixing system that is intended to be compact, environmentally friendly and easy to mobilize and (b) the marketing and sale of the Enermed device and the Enermed Therapy.  As a relatively new company, 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.

Upon completion of the acquisition of Energy Medicine Developments Corp., our ability to successfully market and sell the Enermed device and the Enermed Therapy will depend on our ability to, among other things:

1.	continue to provide advice and treatment which is helpful to its users;

2.	maintain and expand its customer base for the Enermed device and the Enermed Therapy; and

3.	obtain the necessary financing to conduct ongoing research and development and to develop and implement a sales and marketing program.

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 $782,588 for the period from January 15, 1997 (incorporation) to December 31, 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 the Trams System and the Enermed device and Enermed Therapy gain 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 either or both of these 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, 2001 audited financial statements, which forms part of our annual report on Form 10-KSB.  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 December 31, 2001 of $782,588.  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 of the Trams System 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 $1,550,000 over the period ending December 31, 2002 in order to accomplish our goals of designing, developing, manufacturing and marketing the Trams System and to maintain and expand the market for the Enermed device and the Enermed Therapy.  This is broken down into $1,000,000 for the Enermed device and the Enermed Therapy and $550,000 in connection with the Trams project and general operating expenses.  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 and to maintain and expand the market for the Enermed device and the Enermed Therapy.  Such outside capital may include the sale of additional stock and/or commercial borrowing.  There can be no assurance that capital will continue to be available if necessary to meet these continuing development costs or, if the capital is available, it will be on terms acceptable to our company.  The issuance of additional equity securities by our company would result in a significant dilution in the equity interests of its current stockholders.  Obtaining commercial loans, assuming those loans would be available, will increase our company's liabilities and future cash commitments.  If we are 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 and the sales and marketing of the Enermed device and the Enermed Therapy, 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 CURRENT PRODUCTS, 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, the Enermed device and the Enermed Therapy.  We expect that the Enermed device and the Enermed Therapy and any similar products we develop will account for a majority, if not all, of our future revenue.  Continued and expanded market acceptance of the Enermed device and the Enermed Therapy is, therefore, critical to our future success and to our ability to generate revenues.  Failure to achieve market acceptance of the Enermed device and the Enermed Therapy, 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 continued market acceptance of the Enermed device and the Enermed Therapy, 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 Enermed device and the Enermed Therapy 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 TRAMS BUSINESS.

To some extent, 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 Robert Fletcher and Fraser Lawrie (Enermed) and Walter Niemi (Trams) and our ability to continue to hire and retain such personnel.  The loss of any of Robert Fletcher, Fraser Lawrie or Walter Niemi 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 and we do not have life insurance on any of Robert Fletcher, Fraser Lawrie and Walter Niemi.

Our current President and Vice-President only spend approximately 10% of their working time on our company.  If we can raise sufficient capital to proceed with our plan of operations, then it may be necessary for our board of directors to appoint a new President and/or Vice-President of our company to oversee our expanded operations.  It may be difficult to find sufficiently qualified individuals to fill these roles and accordingly, our company may not be able to successfully expand our operations until such persons are located and retained.

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 significant percentage of our outstanding voting stock represent the ultimate control over our affairs.  Six stockholders currently control approximately 75% 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.  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. consumer acceptance of the Trams System, the Enermed device, the Enermed Therapy, or other systems and products offered by us;

5. our ability to 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.

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, the Enermed device and the Enermed Therapy, 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 our products and services 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, the Enermed device and the Enermed Therapy.  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, the Enermed device and the Enermed Therapy, or other products and services offered by us.

OUR FUTURE REVENUES ARE DEPENDENT ON THE ACCEPTANCE OF THE PRODUCTS AND SERVICES THAT WE OFFER.

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, the Enermed device and the Enermed Therapy.  There can be no assurance that the Trams System, the Enermed device and the Enermed Therapy will become widely accepted or that a sufficiently broad base of consumers will use the Trams System, the Enermed device and the Enermed Therapy.

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.

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 to 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.

Recent Sales of Unregistered Shares

On November 13, 2001, we issued an aggregate of 15,204,649 common shares in the capital of our company to three (3) individuals pursuant to the terms of the Acquisition Agreement between our company and Energy Medicine Developments Corp. dated October 2, 2001.  Our company had reasonable grounds to believe that the investors were all capable of evaluating the merits and risks of their investment, and acquired the shares for investment purposes.  12,742,494 of the shares were issued in reliance upon Regulation S promulgated under the Securities Act of 1933 and 2,462,155 of the shares were issued in reliance upon Section 4(2) and/or Rule 506 promulgated under the Securities Act of 1933.

Item 3.	Defaults Upon Senior Securities.

None.

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.

Reports on Form 8-K

On October 23, 2001 (amended October 30, 2001 and January 3, 2002), we filed a Form 8-K Current Report announcing the resignation of our independent auditors, Hedden Chong and the appointment of our new independent auditor BDO Dunwoody LLP.  Both the resignation of Hedden Chong and the appointment of BDO Dunwoody LLP were effective as of October 19, 2001.

Exhibits

Exhibits Required by Item 601 of Regulation S-B

(3) Articles of Incorporation and By-laws

3.1 Charter (incorporated by reference from our Registration Statement on Form 10-SB filed on April 11, 2000)

3.2 Articles of Incorporation (incorporated by reference from our Registration Statement on Form 10-SB filed on April 11, 2000)

3.3 Bylaws  (incorporated by reference from our Registration Statement on Form 10-SB filed on April 11, 2000)

(10) Material Contracts

10.1 Acquisition Agreement between Global Innovative Systems Inc. and Energy Medicine Developments Corp., dated October 2, 2001 (incorporated by reference from our Form 10-KSB Annual Report filed on January 15, 2002)

10.2	Royalty Agreement between Global Innovative Systems Inc. and Energy Medicine Developments Inc., dated October 4, 2001 (incorporated by reference from our Form 10-KSB Annual Report filed on January 15, 2002)

10.3	Purchase Agreement between Global Innovative Systems Inc. and Energy Medicine Developments (North America) Inc., dated October 2, 2001 (incorporated by reference from our Form 8-K Current Report filed on February 7, 2002)

10.4	Form of Share Exchange Agreement between Global Innovative Systems Inc., Energy Medicine Developments Corp., Energy Medicine Developments (North America) Inc. and individual shareholders of both Energy Medicine Developments Corp. and Energy Medicine Developments (North America) Inc. (incorporated by reference from our Form 8-K Current Report filed on February 7, 2002)



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
Date:  February 14, 2002

By:  /s/ Ken Bergestad
Ken Bergestad, Vice President/Director
Date: February 14, 2002

By: /s/ Walter Niemi
Walter Niemi, Secretary/Treasurer/Director
Date: February 14, 2002

By: /s/ Fraser Lawrie
Fraser Lawrie, Director
Date: February 14, 2002

By: /s/ Robert Fletcher
Robert Fletcher, Director
Date: February 14, 2002