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**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**Washington, D.C.
20549

FORM 10-KSB

(Mark One)

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
  EXCHANGE ACT OF 1934 
  For the fiscal year ended September 30, 2007

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
  ACT
  For the transition period from __________ to __________

Commission file number 333-131531

PANGLOBAL BRANDS INC.(Name
of small business issuer in its charter)

|Delaware                                                             | 20-8531711                       
|-------------------------------------------------------------------- | ---------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (IRS Employer Identification No.)

5608 S. Soto Street, Huntington Park, CA
90255(Address of principal executive offices)

323 588-1190(Issuers telephone
number)

N/A(Former name, former address and former
fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

|Title of each class | Name of each exchange on which
      registered
|------------------- | -----------------------------------------------
|Nil                 | N/A                                            

Securities registered pursuant to Section 12(g) of the Act:

Common Shares, par value $0.0001
  (Title of class)

Check whether the issuer is not required to file reports pursuant
  to Section 13 or 15(d) of the Exchange Act.[ ] 
  Note  Checking the box above will not relieve any registrant required
  to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their
  obligations under those Sections.

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 [  ]

Check if there is no disclosure of delinquent filers in response
  to Item 405 of Regulation S-B contained in this form, and no disclosure will
  be contained, to the best of registrant's knowledge, in definitive proxy or
  information statements incorporated by reference in Part III of this Form 10-KSB
  or any amendment to this Form 10-KSB. [X]

Indicate by check mark whether the registrant is a shell company
  (as defined in Rule 12b-2 of the Exchange Act).
  Yes [  ] No [X]

Issuer's revenues for its most recent fiscal year ended
September 30, 2007 is $592,046.

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State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at which
the common equity was sold, or the average bid and asked prices of such common
equity, as of a specified date within 60 days. (See definition of affiliate in
Rule 12b-2 of the Exchange Act.)

Note: If determining whether a person is an affiliate will
involve an unreasonable effort and expense, the issuer may calculate the
aggregate market value of the common equity held by non-affiliates on the basis
of reasonable assumptions, if the assumptions are stated.

6,605,896 common shares @ $0.85(1)= $5,615,011

(1)Represents the price at September 30, 2007. Used
only for the purpose of this calculation.

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

29,630,530 common shares issued and outstanding as of
December 31, 2007.

DOCUMENTS INCORPORATED BY REFERENCE

If the following documents are incorporated by reference,
briefly describe them and identify the part of the Form 10-KSB (e.g., Part I,
Part II, etc.) into which the document is incorporated: (1) any annual report to
security holders; (2) any proxy or information statement; and (3) any prospectus
filed pursuant to Rule 424(b) or (c) of the Securities Act of 1933 ("Securities
Act"). The listed documents should be clearly described for identification
purposes (e.g., annual report to security holders for fiscal year ended December
24, 1990).

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

PART I

Item 1. Description of Business.

This annual report contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. 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, should,
 expects, plans, anticipates, believes, estimates, 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 beginning on page 6 of this report, that may cause our
or our industrys actual results, levels of activity, performance or
achievements to be materially different from any future results, levels 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.

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

In this annual report, unless otherwise specified, all
references to "common shares" refer to the common shares in our capital
stock.

As used in this annual report, the terms "we", "us", "our",
means Panglobal Brands Inc. and our wholly-owned subsidiary, Mynk, Inc. unless
otherwise indicated.

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Business Development

We were incorporated on March 2, 2005, under the laws of the
State of Delaware, under the name EZ English Online Inc. Since incorporation
we were engaged in the development of an online teacher training course to teach
English as a second language. Our principal offices are located 5608 South Soto
Street, Suite 102, Huntington Park, California 90255, and our telephone number
is 323.588.1190.

On July 3, 2006, our common stock was approved for quotation on
the OTC Bulletin Board.

On February 2, 2007, we affected a forward stock split of our
authorized and issued and outstanding shares on a six-for-one basis. The forward
split resulted in the increase of our authorized capital from 100,000,000 shares
of common stock with a par value of $0.0001 to 600,000,000 shares of common
stock with a par value of $0.0001.

On February 2, 2007, we completed a merger with our wholly
owned subsidiary Panglobal Brands Inc. As a result, we changed our name from EZ
English Online Inc. to Panglobal Brands Inc. Our subsidiary was incorporated on
January 22, 2007, specifically for the purpose of the merger. The six-for-one
forward stock split, merger and name change became effective with NASDAQs OTC
Bulletin Board on February 6, 2007 and our trading symbol was changed to PNGB.

On May 11, 2007, we acquired all of the issued and outstanding
shares of Mynk Corporation. Mynk is now our wholly-owned, operating subsidiary.
With the acquisition of Mynk, we changed our business focus to that of our newly
acquired subsidiary and are now engaged in the business of the design,
production and sale of clothing and accessories. We intend to acquire and create
brands for the contemporary apparel market in the U.S. and international
markets.

Business of Issuer

Our strategy is to build a series of apparel brands, consisting
mainly of womens apparel, and to build brand recognition by marketing our
products to fashion conscious, affluent consumers who shop in high-end boutiques
and department stores and who want to wear and be seen in the latest and most
fashionable clothing and accessories. We plan to update our product offerings
continually to be seen as a trend setter in fashionable clothing and
accessories. We also are targeting the junior market and design, have
manufactured and sell junior denim, t-shirts, dresses and other apparel. Lastly,
based upon our branded products, we expect to be offered the opportunity to
manufacture private label womens apparel including dresses, skirts and knit and
woven tops.

We operate all of our apparel businesses through our
wholly-owned subsidiary, Mynk, Inc.

Our divisions are aggregated into four major consumer market
  product groupings. The major consumer divisions are as follows:

HAUTEUR MYNK-Hauteur Mynk is a trademarked brand name selling
premium denim jeans, skirts, dresses and shorts. All of the sales through
September 30, 2007 have been sales of Mynk denim. Mynk is currently sold at Saks
Fifth Avenue and approximately 100 premium boutiques throughout the U.S. Mynk
products are manufactured in Los Angeles using Italian denim fabric. The
products image is a low-rise, soft, sexy look perfect for evening wear and is
available for both women and men. The retail price point ranges from $200-240
for denim bottoms. Competition is strong from larger companies including Seven,
True Religion, Paige Denim, Citizens for Humanity, Rock and Republic, etc.

NELA-Nela designs, merchandises and sells women's better
dresses and sportswear using Italian prints and related fabrics. The dresses are
manufactured under contract in Asia and a royalty fee will be paid to the
Italian fabric manufacturer. There have been no sales of Nela dresses to date;
however, there is a backlog beginning February 2008 extending through May. Nela
will be sold through high-end department stores and boutiques catering to a
contemporary woman 30+ years old. Retail prices points range from $280-400 and
competition includes well-known designers such as Diane von Furstenburg, Marc by
Marc Jacobs, Rozae Nichols, Milly, Tibi, etc.

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TEA AND HONEY-Tea and Honey designs, merchandises and sells womens
  mid-priced contemporary dresses. Tea and Honey is a more casual look for women
  ages 22-35 with a vintage feel easily convertible for wear by the working woman
  by day and for evening wear, as well. Tea and Honey products are expected to
  commence sales after May 2008 and will be manufactured in Asia. Prospective
  retail customers include Federated department store chains and stores such as
  Anthropologie, etc. Competition includes Velvet, Ella Moss and A Common Thread.

SOSIK-Sosik designs, merchandises and sells junior t-shirts,
dresses, skirts and knit and woven tops and other apparel and is manufactured in
Asia. Junior apparel includes clothing for girls ages 14-22 as well as products
for children ages 6-14. There have been no sales of Sosik or private label
junior products to-date; however, a significant backlog exists with shipments
commencing late January, 2008 extending through April. It is anticipated that
greater than 50% of our revenue for our fiscal year ending September 30, 2009
will be from Sosik and junior products. Customers included in our sales backlog
include Charlotte Russe, Forever 21, Wet Seal, Guess, Ross and Limited Too.

PRIVATE LABEL- Lastly, based upon our branded products, we
expect to be offered the opportunity by major department stores to design,
merchandise and manufacture private label womens apparel including dresses,
skirts and knit and woven tops. There have been no sales of private label
products to date; however, our backlog for shipments beginning January, 2008
includes customers such as Sears Holdings and Victorias Secret.

We anticipate no significant change in our products lines or
  new apparel industry divisions. In all of our divisions, we purchase finished
  goods from numerous contract manufacturers and to a lesser extent raw materials
  directly from numerous textile mills and yarn producers and converters. We have
  not experienced difficulty in obtaining finished goods or raw materials essential
  to our business in any of our apparel businesses.

We plan to continue to manufacture our products to order and
not carry inventory with the exception of Hauteur Mynk denim products to meet
the delivery requirements of our customers. Denim jeans tend to be sold in small
quantities to boutiques with replenishment of the same styles and washes
occurring on a continuing basis.

We plan to continue to outsource our warehousing and shipping
functions to a third party warehousing company designed to ship apparel products
for multiple companies.

We maintain a company website at www.panglobalbrand.com where
examples of our products can be seen.

Consulting Agreement for Sosik Division

On August 20, 2007 we signed a consulting agreement with Lolly
Factory, Inc. and its sole shareholder (Consultant) through December 31, 2010
to provide sales and merchandising consulting services for the Sosik and Juniors
apparel divisions. Consulting fees totaling $452,125 are payable between
September 2007 and June 2008. For the year ending September 30, 2007 $90,425 in
consulting fees were paid. In addition, Consultant shall earn a 3.5% commission
on Sosik and Junior divisions net sales. Consultant also earns 100,000 of our
common shares payable each month from September, 2007 to June, 2008, up to an
aggregate of 1,000,000 common shares which shares are deemed to be earned and
vested each month. We recorded an expense to operations in the amount of $85,000
for shares earned for September, 2007.

Consultant and Panglobal Brands Inc. have established sales
targets totaling $30.0 million for calendar year 2008, $45.0 million for
calendar year 2009 and $60.0 million for calendar year 2010. Consultant can earn
up to 1,500,000 common shares of Panglobal Brands Inc. according to the
following schedule:

| | (i)   | 500,000 shares upon meeting the sales target for calendar
      year 2008;
| | ----- | --------------------------------------------------------------------------
| | (ii)  | 500,000 shares upon meeting the sales target for calendar
      year 2009;
| | (iii) | 500,000 shares upon meeting the sales target for calendar
      year 2010.

Manufacturing

We outsource all of our manufacturing to third parties on an
order-by-order basis. These contract manufacturers are found in Asia and the
United States and they will manufacture our garments on an order-by-order basis.
We believe that we will be able to meet our production needs in this way.
Although the various fabrics that we intend to use in

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the manufacture of our products will be of the high quality,
  they are available from many suppliers in the United States and abroad.

Quality Control

We will establish a quality control program to ensure that our products meet our high quality standards. We intend to monitor the quality of our fabrics prior to the production of garments and inspect prototypes of each product before production
runs commence. We also plan to perform random on-site quality control checks during and after production before the garments leave the contractor. We also plan to conduct final random inspections when the garments are received in our distribution
centers. We believe that our policy of inspecting our products at our distribution centers and at the vendors facilities will be important to maintain the quality, consistency and reputation of our products.

Competition

The apparel industry is intensely competitive and fragmented. We compete against other small companies like ours, as well as large companies that have a similar business and large marketing companies, importers and distributors that sell products
similar to or competitive with ours.

We believe that our competitive strengths consist of the detailing of the design, the quality of the fabric and the superiority of the fit.

Government Regulation and Supervision

Our operations are subject to the effects of international treaties and regulations such as the North American Free Trade Agreement (NAFTA). We are also subject to the effects of international trade agreements and embargoes by entities such as the
World Trade Organization. Generally, these international trade agreements benefit our business rather than burden it because they tend to reduce trade quotas, duties, taxes and similar impositions. However, these trade agreements may also impose
restrictions that could have an adverse impact on our business, by limiting the countries from whom we can purchase our fabric or other component materials, or limiting the countries where we might market and sell our products.

Labeling and advertising of our products is subject to regulation by the Federal Trade Commission. We believe that we are in compliance with these regulations.

Employees

As of January, 2008, we have 51 full-time employees: two (2) are executive, nine (9) are design staff, fifteen(15) are production staff, seventeen (17) are sewing staff, four (4) are sales staff and four (4) are accounting/administration staff. None
of our employees are subject to a collective bargaining agreement, and we believe that our relations with our employees are good.

Information Systems

We believe that high levels of automation and technology are essential to maintain our competitive position and support our strategic objectives and we plan to invest in computer hardware, system applications and networks to provide increased
efficiencies and enhanced controls.

Trademarks

We own the trademark Hauteur Mynk and have applications pending for the balance of our branded apparel products.

Marketing

We market our products directly through our sales staff as well as through showrooms which carry multiple lines of apparel products. In addition we attend industry trade shows.

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RISK FACTORS

Much of the information included in this annual 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. We undertake no obligation to update forward-looking statements to reflect events or
circumstances occurring after the date of such statements.

Such estimates, projections or other forward-looking statements involve various risks and uncertainties as outlined below. We caution readers of this annual report 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. In evaluating us, our business and any investment in
our business, readers should carefully consider the following factors.

Risks Related to our Business

Our continued operations depend on current fashion trends. If our products and designs are not considered fashionable or desirable by enough consumers, then our business could be adversely affected.

The acceptance by consumers of our products and design is important to our success and competitive position, and the inability to continue to develop and offer fashionable and desirable products to consumers could harm our business. We cannot be
certain that our high-fashion clothing and accessories will be considered fashionable and desirable by enough consumers to make our operations profitable. There are no assurances that our future designs will be successful, and any unsuccessful
designs could adversely affect our business. If we are unable to respond to changing consumer demands in a timely and appropriate manner, we may fail to establish or maintain our brand name and brand image. Even if we react appropriately to changes
in consumer preferences, consumers may consider our brand image to be outdated or associate our brand with styles that are no longer popular. Should trends veer away from our style of products and designs, our business could be adversely affected.

We may be unable to achieve or sustain growth or manage our future growth, which may have a material adverse effect on our future operating results.

We cannot provide any assurances that our business plan will be successful and that we will achieve profitable operations. Our future success will depend upon various factors, including the strength of our brand image, the market success of our
current and future products, competitive conditions and our ability to manage increased revenues, if any, or implement our growth strategy. In addition, we anticipate significantly expanding our infrastructure and adding personnel in connection with
our anticipated growth, which we expect will cause our selling, general and administrative expenses to increase in absolute dollars and which may cause our selling, general and administrative expenses to increase as a percentage of revenue. Because
these expenses are generally fixed, particularly in the short-term, operating results may be adversely impacted if we do not achieve our anticipated growth.

Future growth may place a significant strain on our management and operations. If we experience growth in our operations, our operational, administrative, financial and legal procedures and controls may need to be expanded. As a result, we may need
to train and manage an increasing number of employees, which could distract our management team from our business. Our future success will depend substantially on the ability of our management team to manage our anticipated growth. If we are unable
to anticipate or manage our growth effectively, our operating results could be adversely affected.

We face intense competition, including competition from companies with significantly greater resources than ours, and if we are unable to compete effectively with these companies, our business could be harmed.

We face intense competition in the apparel industry from other, more established companies. A number of our competitors have significantly greater financial, technological, engineering, manufacturing, marketing and

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distribution resources than we do. Their greater capabilities
  in these areas may enable them to better withstand periodic downturns in the
  apparel industry, compete more effectively on the basis of price and production
  and to develop new products in less time. In addition, new companies may enter
  the markets in which we compete, further increasing competition in the apparel
  industry.

We believe that our ability to compete successfully depends on a number of factors, including the style and quality of our products and the strength of our brand name, as well as many factors beyond our control. We may not be able to compete
successfully in the future, and increased competition may result in price reductions, reduced profit margins, loss of market share and an inability to generate cash flows that are sufficient to maintain or expand our development and marketing of new
products, which would adversely impact the trading price of our common stock.

Our business could suffer if our manufacturers do not meet our demand or delivery schedules.

Although we design and market our products, we outsource manufacturing to third party manufacturers. Outsourcing the manufacturing component of our business is common in the apparel industry and we compete with other companies for the production
capacity of our manufacturers. Because we are a small enterprise and many of the companies with which we compete have greater financial and other resources than we have, they may have an advantage in the competition for production capacity. There is
no assurance that the manufacturing capacity we require will be available to us, or that if available it will be available on terms that are acceptable to us. If we cannot produce a sufficient quantity of our products to meet demand or delivery
schedules, our customers might reduce demand, reduce the purchase price they are willing to pay for our products or replace our product with the product of a competitor, any of which could have a material adverse effect on our financial condition
and operations.

Government regulation and supervision could restrict our business.

Any negative changes to international trade agreements and regulations such as the North American Free Trade Agreement or any agreements affecting international trade such as those made by the World Trade Organization which result in a rise in trade
quotas, duties, taxes and similar impositions or which has the result of limiting the countries from whom we can purchase our fabric or other component materials, or limiting the countries where we might market and sell our products, could have an
adverse effect on our business.

Increases in the price of raw materials or their reduced availability could increase our cost of sales and decrease our profitability.

The principal fabrics used in our business are cotton, synthetics, wools and blends. The prices we pay for these fabrics are dependent on the market price for raw materials used to produce them, primarily cotton. The price and availability of cotton
may fluctuate significantly, depending on a variety of factors, including crop yields, weather, supply conditions, government regulation, economic climate and other unpredictable factors. Any raw material price increases could increase our cost of
sales and decrease our profitability unless we are able to pass higher prices on to our customers. Moreover, any decrease in the availability of cotton could impair our ability to meet our production requirements in a timely manner.

If we are unable to enforce our intellectual property rights or otherwise protect our intellectual property, then our business would likely suffer.

Our success depends to a significant degree upon our ability to protect and preserve any intellectual property we develop or acquire, including copyrights, trademarks, patents, service marks, trade dress, trade secrets and similar intellectual
property. We rely on the intellectual property, patent, trademark and copyright laws of the United States and other countries to protect our proprietary rights. However, we may be unable to prevent third parties from using our intellectual property
without our authorization, particularly in those countries where the laws do not protect our proprietary rights as fully as in the United States. The use of our intellectual property or similar intellectual property by others could reduce or
eliminate any competitive advantage we may develop, causing us to lose sales or otherwise harm our business. We may need to bring legal claims to enforce or protect such intellectual property rights. Any litigation, whether successful or
unsuccessful, could result in substantial costs and diversions of resources. In addition, notwithstanding the rights we have secured in our intellectual property, other persons may bring claims against us that we have infringed on their intellectual
property rights or claims that our intellectual

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property right interests are not valid. Any claims against us,
  with or without merit, could be time consuming and costly to defend or litigate
  and therefore could have an adverse affect on our business. If any of these
  risks arise, our business would likely suffer.

Risks Related to Our Company

We lack an operating history and have losses which we
expect to continue into the future. Our auditor has stated that we have incurred
a loss from operations and negative cash flows from operations that raise
substantial doubt about our ability to continue as a going concern. There is no
assurance our future operations will result in profitable revenues. If we cannot
generate sufficient revenues to operate profitably, we may suspend or cease
operations.

Our inception date is February 3, 2006. We have a very short
operating history upon which an evaluation of our future success or failure can
be made. Our net loss since inception (February 3, 2006) was $4,758,107 as of
September 30, 2007. In its audit report dated January 14, 2008, our auditor
stated that we have incurred a loss from operations and negative cash flows from
operations that raise substantial doubt about our ability to continue as a going
concern. Our total costs and expenses since inception (February 3, 2006) to
September 30, 2006 were $3,387,236, of which $2,078,985 was for general and
administrative expenses, $683,833 was for design and development and $611,591
was for selling and shipping.

Based upon current plans, we expect to incur operating losses
in future periods because we will continue to incur expenses. We cannot
guarantee that we will be successful in becoming profitable in the future.
Failure to become profitable would cause us to go out of business.

Our management may be able to control substantially all
matters requiring a vote of our stockholders and their interests may differ from
the interests of our other stockholders and cause investors to lose some or all
potential benefit from their investment.

As of December 31, 2007, our directors and officers as a group
beneficially owned approximately 21% of our outstanding common stock. Therefore,
our directors and officers may be able to control matters requiring approval by
our stockholders. Matters that require the approval of our stockholders include
the election of directors and the approval of mergers or other business
combination transactions. Our directors and officers also have control over our
management and affairs. As a result of such control, certain transactions are
effectively not possible without the approval of our directors and officers,
including, proxy contests, tender offers, open market purchase programs or other
transactions that could give our stockholders the opportunity to realize a
premium over the then-prevailing market prices for their shares of our common
stock. If the interests of our directors and officers conflict with those of our
investors, investors could lose some or all of the potential benefit of their
investment.

Risks Related to Our SecuritiesOur stock
price is highly volatile.

The trading price of our common stock has fluctuated
significantly since our incorporation (March 2, 2005), and is likely to remain
volatile in the future. The trading price of our common stock could be subject
to wide fluctuations in response to many events or factors, including the
following:

- quarterly variations in our operating results;
- changes in financial estimates by securities analysts;
- changes in market valuations or financial results of apparel companies;
- announcements by us or our competitors of new products, or significant
  acquisitions, strategic partnerships or joint ventures;

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- any deviation from projected growth rates in revenues;
- any loss of a major customer or a major customer order;
- additions or departures of key management or design personnel;
- any deviations in our net revenue or in losses from levels expected by
  securities analysts;
- activities of short sellers and risk arbitrageurs; and,
- future sales of our common stock.

The equity markets have, on occasion, experienced significant
price and volume fluctuations that have affected the market prices for many
companies' securities and that have often been unrelated to the operating
performance of these companies. Any such fluctuations may adversely affect the
market price of our common stock, regardless of our actual operating
performance. As a result, stockholders may be unable to sell their shares, or
may be forced to sell them at a loss.

The U.S. Securities and Exchange Commission imposes
additional sales practice requirements on brokers who deal in our shares which
are penny stocks, some brokers may be unwilling to trade them. This means that
you may have difficulty reselling your shares and this may cause the price of
the shares to decline.

Our shares are classified as penny stocks and are covered by
Section 15(g) of the Securities Exchange Act of 1934 and the Rules which impose
additional sales practice requirements on brokers/dealers who sell our
securities in this offering or in the aftermarket. For sales of our securities,
the broker/dealer must make a special suitability determination and receive from
you a written agreement prior to making a sale for you. Because of the
imposition of the foregoing additional sales practices, it is possible that
brokers will not want to make a market in our shares. This could prevent you
from reselling your shares and may cause the price of the shares to decline.

We do not intend to pay dividends and there will be less
ways in which you can make a gain on any investment in our company.

We have never paid any cash dividends and currently do not
intend to pay any dividends for the foreseeable future. To the extent that we
require additional funding currently not provided for in our financing plan, our
funding sources may likely prohibit the payment of a dividend. Because we do not
intend to declare dividends, any gain on an investment in our company will need
to come through appreciation of the stocks price.

|Item 2. | Description of Property.
|------- | ------------------------

Our executive and head office is located at 5608 South Soto
Street, Huntington Park, CA 90255. This operating facility functions as our main
operating facility. We believe our current premises are not adequate for our
current operations and have signed a three year lease commencing January 1, 2008
for 18,200 square feet located at 2853 E. Pico Blvd., Los Angeles, CA 90023.We
plan to move into these premises late January.

Commencing October 1, 2007, we leased 499 square feet for three
years as a sales showroom for our Sosik division at California Market Center,
110 East Ninth Street, Suite A0823, Los Angeles, CA 90079.

Commencing November 1, 2007, we leased 2,609 square feet for 5
years as a sales showroom for our Nela/Mynk/Tea and Honey divisions at 250 West
39th Street, New York, New York.

Commencing December 1, 2007, we leased 1,337 square feet for 3
years, eight months as a sales showroom for our Sosik division at 530
7th Avenue 27thFloor, New York, New York.

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|Item 3. | Legal Proceedings.
|------- | ------------------

Other than as described below, we know of no material, existing
or pending legal proceedings against our company, nor are we involved as a
plaintiff in any material proceeding or pending litigation. There are no
proceedings in which any of our directors, officers or affiliates, or any
registered or beneficial stockholder, is an adverse party or has a material
interest adverse to our interest. The outcome of open unresolved legal
proceedings is presently indeterminable. Any settlement resulting from
resolution of these contingencies will be accounted for in the period of
settlement. We do not believe the potential outcome from these legal proceedings
will significantly impact our financial position, operations or cash flows.

Elk Brands Manufacturing Company, Inc. is suing Mynk, Inc. for
an alleged payment owing of approximately $70,800. We believe that this claim is
unfounded and we intend to fight it through all reasonable legal means. We
believe that we will not be held liable for or be required to pay the amount
claimed by Elk Brands. The claim was filed in the circuit court for Davidson
County, Tennessee at Nashville on February 16, 2007.

On October 19, 2007, a complaint was filed in the Superior
Court of the State of California for the County of Los Angeles by Unger Fabrik,
LLC, a Delaware limited liability company, against our company, Mark Cywinski,
Craig Soller and Stephen M. Soller, our chief executive officer and a director
and our company. The complaint makes several allegations, including breach of
contract, unfair competition and unfair business practices. The plaintiff is
seeking monetary damages, punitive damages, injunctions, restitution, attorney
fees, pre and post judgment interest and any further relief that the Court deems
just and proper. We intend to defend ourselves against this lawsuit. The date of
the next event in relation to this lawsuit is not yet known.



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

None.

PART II

|Item 5. | Market for Common Equity and Related
      Stockholder Matters and Small Business Issuer Purchases of Equity
      Securities.
|------- | ------------------------------------------------------------------------------------------------------------------------------

Our common stock was originally quoted on the OTC Bulletin
Board under the symbol "EZEO", but there had not been a trade of our common
stock under that symbol. On February 6, 2007 the symbol was changed to
PNGB.

Our common stock is quoted on the National Association of
Securities Dealers OTC Bulletin Board under the symbol "PNGB". The following
quotations obtained from Yahoo.com reflect the highs and low bids for our common
stock based on inter-dealer prices, without retail mark-up, mark-down or
commission and may not represent actual transactions.

The high and low bid prices of our common stock for the
previous two fiscal years and the interim period ended December 31, 2007 are as
follows:

National Association of Securities Dealers OTC Bulletin
      Board(1)Quarter Ended
    High
    LowDecember
      31, 2007
    $1.09
    $0.65September
      30, 2007
    $1.05
    $0.55June 30, 2007
    $1.05
    $0.80March 31, 2007
    $3.00
    $0.40December
      31, 2006
    $0.65
    $0.25


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- 11-

September
      30, 2006
    *
    *June 30, 2006
    *
    *March 31, 2006
    *
    *


* Indicates no bids.

On January 11, 2008, the shareholders list for our common
stock showed 103 registered stockholders and 29,650,530 shares issued and
outstanding.

We have no other classes of securities.

Dividends

We have not declared any dividends since incorporation and do
not anticipate that we will do so in the foreseeable future. Our directors will
determine if and when dividends should be declared and paid in the future based
on our financial position at the relevant time. All shares of our common stock
are entitled to an equal share of any dividends declared and paid.

Recent Sales of Unregistered Securities

On February 27, 2007, in anticipation of the Exchange, the
Company sold an aggregate of 9,426,894 shares of its common stock to fifty
accredited investors in an initial closing of its private placement at a per
share price of $0.45, resulting in aggregate gross proceeds to the Company of
$4,242,103. Net cash proceeds to the Company, after the deduction of all private
placement offering costs and expenses of $21,900, were $4,220,203.

On February 28, 2007, the Company sold an aggregate of
1,183,332 shares of its common stock to nine accredited investors in a second
closing of the private placement at a per share price of $0.45, resulting in
aggregate gross proceeds to the Company of $532,499. Net cash proceeds to the
Company were also $532,499. Stephen Soller, the Companys Chief Executive
Officer, purchased 291,666 shares in the private placement for $131,250. Craig
Soller, the brother of Stephen Soller and a consultant to the Company, purchased
244,444 shares of common stock in the private placement for $110,000. Three Mynk
shareholders also purchased an aggregate of 299,999 shares in the private
placement for $134,500.

On October 23, 2007, we closed a private placement of 2,871,759
units for gross proceeds of $2,153,819.25. Each unit was sold for $0.75 and
consists of one common share and one common share purchase warrant. Each common
share purchase warrant entitles the holder to purchase one additional common
share of our company at a price of $1.00 per warrant share until October 23,
2008 and at $1.50 per warrant share until the warrants expire on October 23,
2009.

We issued 1,603,426 units pursuant to the exemption from
registration under the United States Securities Act of 1933 provided by Section
4(2), Section 4(6) and/or Rule 506 of Regulation D promulgated under the 1933
Act to eleven (11) investors who are accredited investor within the respective
meanings ascribed to that term in Rule 501(a) under the 1933 Act. Charles
Lesser, Chief Financial Officer of the Company, purchased 200,000 units in the
private placement for $150,000.

We issued 1,268,333 units to seven (7) non U.S. persons (as
that term is defined in Regulation S of the Securities Act of 1933) in an
offshore transaction relying on Regulation S and/or Section 4(2) of the
Securities Act of 1933.



|Item 6. | Managements Discussion and Analysis or Plan of
      Operation.
|------- | ----------------------------------------------------------------

The following discussion should be read in conjunction with our
audited consolidated financial statements and the related notes for year ended
September 30, 2007 and the factors that could affect our future financial
condition and results of operations. Historical results may not be indicative of
future performance.

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- 12 -

The following discussion contains forward-looking statements
  that reflect our plans, estimates and beliefs. Our actual results could differ
  materially from those discussed in the forward looking statements. Factors that
  could cause or contribute to such differences include, but are not limited to,
  those discussed below and elsewhere in this annual report, particularly in the
  section entitled "Risk Factors" beginning on page xx of this annual report.

Our audited financial statements are stated in United States
Dollars and are prepared in accordance with United States Generally Accepted
Accounting Principles.

Overview

Corporate Overview and History

We were incorporated on March 2, 2005, under the laws of the
State of Delaware, under the name EZ English Online Inc. Since incorporation
we were engaged in the development of an online teacher training course to teach
English as a second language. Our principal offices are located 5608 South Soto
Street, Suite 102, Huntington Park, California 90255, and our telephone number
is 323.588.1190.

On July 3, 2006, our common stock was approved for quotation on
the OTC Bulletin Board.

On February 2, 2007, we affected a forward stock split of our
authorized and issued and outstanding shares on a six-for-one basis. The forward
split resulted in the increase of our authorized capital from 100,000,000 shares
of common stock with a par value of $0.0001 to 600,000,000 shares of common
stock with a par value of $0.0001.

On February 2, 2007, we completed a merger with our wholly
owned subsidiary Panglobal Brands Inc. As a result, we changed our name from EZ
English Online Inc. to Panglobal Brands Inc. Our subsidiary was incorporated on
January 22, 2007, specifically for the purpose of the merger. The six-for-one
forward stock split, merger and name change became effective with NASDAQs OTC
Bulletin Board on February 6, 2007 and our trading symbol was changed to PNGB.

On May 11, 2007, we acquired all of the issued and outstanding
shares of Mynk Corporation. Mynk is now our wholly-owned, operating subsidiary.
With the acquisition of Mynk, we changed our business focus to that of our newly
acquired subsidiary and are now engaged in the business of the design,
production and sale of clothing and accessories. We intend to acquire and create
brands for the contemporary apparel market in the U.S. and international
markets.

Our Current Business

Business Strategy

Our strategy is to build a series of apparel brands, consisting
of mainly womens apparel, and to build brand recognition by marketing our
products to fashion conscious, affluent consumers who shop in high-end boutiques
and department stores and who want to wear and be seen in the latest and most
fashionable clothing and accessories. We plan to update our product offerings
continually to be seen as a trend setter in fashionable clothing and
accessories. We also are targeting the junior market and design, have
manufactured and sell junior denim, t-shirts, dresses and other apparel. Lastly,
based upon our branded products, we expect to be offered the opportunity to
manufacture private label womens apparel including dresses, skirts and knit and
woven tops.

We operate all of our apparel businesses through our
wholly-owned subsidiary, Mynk, Inc.

Our divisions are aggregated into four major consumer market
  product groupings. The major consumer divisions are as follows:

HAUTEUR MYNK-Hauteur Mynk is a trademarked brand name selling
premium denim jeans, skirts, dresses and shorts. All of the sales through
September 30, 2007 have been sales of Mynk denim. Mynk is currently sold at Saks
Fifth Avenue and approximately 100 premium boutiques throughout the U.S. Mynk
products are manufactured in Los Angeles using Italian denim fabric. The
products image is a low-rise, soft, sexy look perfect for evening wear and is
available for both women and men. The retail price point ranges from $200-240
for denim bottoms.

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- 13 -

Competition is strong from larger companies including Seven,
  True Religion, Paige Denim, Citizens for Humanity, Rock and Republic, etc.

NELA-Nela designs, merchandises and sells women's better dresses using Italian prints and related fabrics. The dresses are manufactured under contract in Asia and a royalty fee will be paid to the Italian fabric manufacturer. There have been no
sales of Nela dresses to date; however, there is a backlog beginning February 2008 extending through May. Nela will be sold through high-end department stores and boutiques catering to a contemporary woman 30+ years old. Retail prices points range
from $280-400 and competition includes well-known designers such as Diane von Furstenburg, Marc by Marc Jacobs, Rozae Nichols, Milly, Tibi, etc.

TEA AND HONEY-Tea and Honey designs, merchandises and sells womens mid-priced contemporary dresses. Tea and Honey is a more casual look for women ages 22-35 with a vintage feel easily convertible for wear by the working woman by day and for
evening wear, as well. Tea and Honey products are expected to commence sales after May 2008 and will be manufactured in Asia. Prospective retail customers include Federated department store chains and stores such as Anthropologie, etc. Competition
includes Velvet, Ella Moss and A Common Thread.

SOSIK-Sosik designs, merchandises and sells junior t-shirts, dresses, skirts and knit and woven tops and other apparel and is manufactured in Asia. Junior apparel includes clothing for girls ages 14-22 as well as products for children ages 6-14.
There have been no sales of Sosik or private label junior products to-date; however, a significant backlog exists with shipments commencing late January, 2008 extending through April. It is anticipated that greater than 50% of our revenue for our
fiscal year ending September 30, 2009 will be from Sosik and junior products. Customers included in our sales backlog include Charlotte Russe, Forever 21, Wet Seal, Guess, Ross and Limited Too.

PRIVATE LABEL- Lastly, based upon our branded products, we expect to be offered the opportunity by major department stores to design, merchandise and manufacture private label womens apparel including dresses, skirts and knit and woven tops.
There have been no sales of private label products to date; however, our backlog for shipments beginning January, 2008 includes customers such as Sears Holdings and Victorias Secret.

We anticipate no significant change in our products lines
  or new apparel industry divisions. In all of our divisions, we purchase finished
  goods from numerous contract manufacturers and to a lesser extent raw materials
  directly from numerous textile mills and yarn producers and converters. We have
  not experienced difficulty in obtaining finished goods or raw materials essential
  to our business in any of our apparel business divisions.

We plan to manufacture our products to order and not carry inventory with the exception of Hauteur Mynk denim products to meet the delivery requirements of our customers. Denim jeans tend to be sold in small quantities to boutiques with
replenishment of the same styles and washes occurring on a continuing basis.

We plan on outsourcing our warehousing and shipping functions to a third party warehousing company designed to ship apparel products for multiple companies.

We maintain a company website at www.panglobalbrand.com where examples of our products can be seen.

Consulting Agreement for Sosik Division

On August 20, 2007 we signed a consulting agreement with Lolly Factory, Inc. and its sole shareholder (Consultant) through December 31, 2010 to provide sales and merchandising consulting services for the Sosik and Juniors apparel
divisions. Consulting fees totaling $452,125 are payable between September 2007 and June 2008. For the year ending September 30, 2007 $90,425 in consulting fees were paid. In addition, Consultant shall earn 3.5% commission on Sosik and
Junior divisions net sales. Consultant also earns 100,000 of our common shares payable each month from September, 2007 to June, 2008, up to an aggregate of 1,000,000 common shares which shares are deemed to be earned and vested each month. We
recorded an expense to operations in the amount of $85,000 for shares earned for September, 2007.

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- 14 -

Consultant and Panglobal Brands Inc. have established sales targets
  totaling $30.0 million for calendar year 2008, $45.0 million for calendar year
  2009 and $60.0 million for calendar year 2010. Consultant can earn up to 1,500,000
  common shares of Panglobal Brands Inc. according to the following schedule:

| | (i)   | 500,000 shares upon meeting the sales target for calendar
      year 2008;
| | ----- | --------------------------------------------------------------------------
| | (ii)  | 500,000 shares upon meeting the sales target for calendar
      year 2009;
| | (iii) | 500,000 shares upon meeting the sales target for calendar
      year 2010.

Manufacturing

We outsource all of our manufacturing to third parties on an
order-by-order basis. These contract manufacturers are found in Asia and the
United States and they will manufacture our garments on an order-by-order basis.
We believe that we will be able to meet our production needs in this way.
Although the various fabrics that we intend to use in the manufacture of our
products will be of the high quality, they are available from many suppliers in
the United States and abroad.

Employees

As of January, 2008, we have 51 full-time employees: two (2)
are executive, nine (9) are design staff, fifteen(15) are production staff,
seventeen (17) are sewing staff, four (4) are sales staff and four (4) are
accounting/administration staff. None of our employees are subject to a
collective bargaining agreement, and we believe that our relations with our
employees are good.

Financial Condition, Liquidity and Capital Resources

At September 30, 2007, we had a working capital surplus of
$1,328,989.

At September 30, 2007, our total assets were $2,014,972 of
which $1,170,214 consisted of cash.

At September 30, 2007, our total liabilities were $406,988.

ASSETS. Our current assets totaled $1,735,977 and $161,585 at
September 30, 2007 and 2006, respectively. Total assets were $2,014,972 and
$161,585 at September 30, 2007 and 2006, respectively. The increase in current
assets is primarily due to the growth in factor receivable, inventory and the
generation of cash. At September 30, 2007 our assets consisted primarily of
inventory of $309,700, net accounts receivable totaling $29,975, due from factor
of $175,084 and cash on hand of $1,170,214.

LIABILITIES AND WORKING CAPITAL. Our current liabilities
totaled $406,988 and $347,811 at September 30, 2007 and 2006, respectively. This
resulted in working capital of $1,328,989 at September 30, 2007 and a working
capital deficit at September 30, 2006. We had no long term debt in either year.

Cash Requirements And Additional Funding

On February 27 and 28, 2007, we raised approximately $4,774,602
through the sale of our equity securities in private placement transactions. We
have also earned revenues from the sale of our fall product line. With the money
we raised through the private placements and the revenue we earned through the
sale of our products, we were able to pay our operating expenses for
approximately the next nine months. At that point, we anticipated requiring
further corporate financing in the next twelve months to carry out our business
plan.

On October 23, 2007, the Company closed a private placement of
2,871,759 units for gross proceeds of $2,153,819. Each unit was sold for $0.75
and consists of one common share and one common share purchase warrant. Each
common share purchase warrant entitles the holder to purchase, if exercised, one
additional common share of our company at a price of $1.00 per common share
until October 23, 2008 and at $1.50 per common share if exercised during the
period from October 24, 2008 until the warrants expire on October 23, 2009.

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- 15 -

There are no assurances that we will earn the funds required
  for our continued operation. If we do not earn the required revenues, then we
  will have to seek another source of financing, likely through the sale of more
  shares of our common stock or borrowing money. There can be no assurance that
  additional financing will be available to us when needed or, if available, that
  it can be obtained on commercially reasonable terms. If we are not able to obtain
  the additional financing on a timely basis, we will not be able to meet our
  other obligations as they become due and we will be forced to scale down or
  perhaps even cease the operation of our business.

There is substantial doubt about our ability to continue as a
going concern as the continuation of our business is dependent upon a
combination of our ability to obtain further long-term financing, the successful
and sufficient market acceptance of any product offerings that we may introduce,
the continuing successful development of our product offerings, and, finally,
our ability to achieve a profitable level of operations. At this time, we have a
backlog for shipments of our products beginning January 2008 and extending
through April, 2008. The issuance of additional equity securities by us could
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.

In managements opinion, we need to achieve the following
events or milestones in the next twelve month period in order for us to continue
to develop our business:

| | 1. | We must continue to develop new retail store customers
      for each of our brands/divisions. New customers have been generated by
      sales calls, attendance at tradeshows and through our company-staffed and
      contract sales showrooms.                                       
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                           
| | 2. | We must increase brand awareness for each of our
      brands/divisions to the retail trade by positive trade press and public
      relations in periodicals such as Womens Wear Daily, Elle, Vogue, etc. We
      have engaged a public relations company to achieve our media
  goals.

The Year Ended September 30, 2007 Compared to the Year Ended
September 30, 2006 Revenue

From March 2, 2005 (date of incorporation) to September 30,
2006, we had not yet generated any revenues. Net sales for the year ended
September 30, 2007 totaled $592,046. All of the sales during the year ended
September 30, 2007 were sales of Hauteur Mynk denim jeans. Sales returns totaled
$456,367 due to manufacturing problems causing a negative gross profit. At this
time, we have a backlog of sales orders in excess $3.0 million for shipments
beginning January 2008 through April, 2008. Over 50% of these orders are for
Sosik and junior apparel products including skirts and knit and woven tops. The
balance is for Mynk jeans and Nela dresses. Our ability to generate any
significant revenues will be determined during the coming fiscal year ending
September 30, 2008. Our Sosik products are sold through in-house sales staff and
sales showrooms in Los Angeles and New York. Our Mynk/Nela/Tea and Honey
products are sold through in-house sales staff and a sales showroom in New York,
and through contract outside sales showrooms in Los Angeles earning sales
commissions of 10-12%.

Expenses

Our total expenses were $683,926 for the year ended September
30, 2006 relating to the original start-up of Mynk, Inc. and the development of
Hauteur Mynk jeans. This included $318,114 in design and development expenses
$23,164 in professional fees, $6,000 in management fees, and $365,812 in general
and administrative fees. Our general and administrative expenses consist of
website development, marketing and promotion, travel, meals and entertainment,
rent, office maintenance, communication expenses (cellular, internet, fax,
telephone), office supplies, and courier and postage costs.

For the year ended September 30, 2007 design and development
expenses totaled $365,719. During this year designers for all of product
divisions were hired and salaries totaled $253,000, consulting $77,000 and fit
model expense $27,000.

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- 16 -

For the year ended September 30, 2007 selling and shipping
  expense totaled $611,591. Travel and trade show expenses totaled $258,000,
  sales commissions totaled $89,000 and sales consulting expenses totaled
  $174,000. On August 20, 2007 we signed a consulting agreement with Lolly
  Factory, Inc. and its principal, Mark Cywinski through December 31, 2010 to
  provide sales and merchandising consulting services for the Sosik and juniors
  apparel division. Included in sales consulting expenses for the year ending
  September 30, 2007 was $90,425 paid to Lollly Factory, Inc.

For the year ended September 30, 2007 general and administrative expenses totaled $1,713,173. Key components included non-cash compensation for grants of stock and stock options ($644,000), professional fees ($441,000), consulting fees
($106,000), insurance ($98,000) and salaries ($198,000). Not included in general and administrative expenses is $12,827 in depreciation expense.

Off Balance-Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources.

Critical Accounting Policies

Our consolidated financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles used in the United States. Preparing financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by managements application of accounting policies. We believe that understanding the basis and nature of the estimates
and assumptions involved with the following aspects of our consolidated financial statements is critical to an understanding of our financials.

Inventory is valued at the lower of cost or market, cost being determined by the first-in, first-out method. We continually evaluate our inventories by assessing slow moving current product as well as prior seasons inventory. Market value of
non-current inventory is estimated based on historical sales trends for this category of inventory of our companys individual product lines, the impact of market trends, an evaluation of economic conditions and the value of current orders
relating to the future sales of this type of inventory.

Revenue from product sales is recognized as title passes to
  the customer upon shipment. Sales returns, all from Mynk denim products have
  been significant and we have accrued $131,710 as of September 30, 2007 for estimated
  sales returns and other allowances.

Adoption of New Accounting Policies

In December 2006, the FASB issued FSP EITF 00-19-2, Accounting for Registration Payment Arrangements (EITF 00-19-2), which addresses an issuers accounting for registration payment arrangements. EITF 00-19-2 specifies
that the contingent obligation to make future payments or otherwise transfer consideration under a registration payment arrangement, whether issued as a separate agreement or included as a provision of a financial instrument or other agreement,
should be separately recognized and measured in accordance with FASB No. 5, Accounting for Contingencies. EITF 00-19-2 further clarifies that a financial instrument subject to a registration payment arrangement should be accounted for in
accordance with other applicable generally accepted accounting principles without regard to the contingent obligation to transfer consideration pursuant to the registration payment arrangement. EITF 00-19-2 is effective immediately for registration
payment arrangements and the financial instruments subject to those arrangements that are entered into or modified subsequent to the date of issuance of EITF 00-19-2. For registration payment arrangements and financial instruments subject to those
arrangements that were entered into prior to the issuance of EITF 00-19-2, EITF 00-19-2 is effective for financial statements issued for fiscal years beginning after December 15, 2006, and interim periods within those fiscal years. Early adoption of
EITF 00-19-2 for interim or annual periods for which financial statements or interim reports have not been issued is permitted. The Company adopted EITF 00-19-2 effective December 31, 2006.

Effective January 1, 2007, the Company adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109, Accounting for Income Taxes (FIN 48). FIN 48

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- 17 -

addresses the determination of whether tax benefits claimed
  or expected to be claimed on a tax return should be recorded in the financial
  statements. Under FIN 48, the Company may recognize the tax benefit from an
  uncertain tax position only if it is more likely than not that the tax position
  will be sustained on examination by the taxing authorities, based on the technical
  merits of the position. The tax benefits recognized in the financial statements
  from such a position should be measured based on the largest benefit that has
  a greater than fifty percent likelihood of being realized upon ultimate settlement.
  FIN 48 also provides guidance on derecognition, classification, interest and
  penalties on income taxes, accounting in interim periods and requires increased
  disclosures. The adoption of the provisions of FIN 48 did not have a material
  effect on the Companys financial statements.

The Company currently files or has in the past filed income tax returns in Canada and the United States. The Company is subject to tax examinations by tax authorities for tax years ending in 2006 and subsequently.

The Companys policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of September 30, 2007, the Company has no accrued interest or penalties related to uncertain tax positions.

Recent Accounting Pronouncements

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS No. 157), which establishes a formal framework for measuring fair value under generally accepted accounting
principles. SFAS No. 157 defines and codifies the many definitions of fair value included among various other authoritative literature, clarifies and, in some instances, expands on the guidance for implementing fair value measurements, and increases
the level of disclosure required for fair value measurements. Although SFAS No. 157 applies to and amends the provisions of existing FASB and AICPA pronouncements, it does not, of itself, require any new fair value measurements, nor does it
establish valuation standards. SFAS No. 157 applies to all other accounting pronouncements requiring or permitting fair value measurements, except for: SFAS No. 123R, share-based payment and related pronouncements, the practicability exceptions to
fair value determinations allowed by various other authoritative pronouncements, and AICPA Statements of Position 97-2 and 98-9 that deal with software revenue recognition. SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal years. The Company is currently assessing the potential effect of SFAS No. 157 on its consolidated financial statements.

In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (SFAS No. 159), which provides companies with an option to report
selected financial assets and liabilities at fair value. The objective of SFAS No. 159 is to reduce both complexity in accounting for financial instruments and the volatility in earnings caused by measuring related assets and liabilities
differently. Generally accepted accounting principles have required different measurement attributes for different assets and liabilities that can create artificial volatility in earnings. SFAS No. 159 helps to mitigate this type of
accounting-induced volatility by enabling companies to report related assets and liabilities at fair value, which would likely reduce the need for companies to comply with detailed rules for hedge accounting. SFAS No. 159 also establishes
presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities. SFAS No. 159 requires companies to provide additional information
that will help investors and other users of financial statements to more easily understand the effect of the companys choice to use fair value on its earnings. SFAS No. 159 also requires companies to display the fair value of those assets and
liabilities for which the company has chosen to use fair value on the face of the balance sheet. SFAS No. 159 does not eliminate disclosure requirements included in other accounting standards, including requirements for disclosures about fair value
measurements included in SFAS No. 157 and SFAS No. 107. SFAS No. 159 is effective as of the beginning of a companys first fiscal year beginning after November 15, 2007. Early adoption is permitted as of the beginning of the previous fiscal
year provided that the company makes that choice in the first 120 days of that fiscal year and also elects to apply the provisions of SFAS No. 157. The Company is currently assessing the potential effect of SFAS No. 159 on its consolidated financial
statements.

Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company's financial statements.

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- 18 -Item 7.
    Financial Statements.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM

To the Stockholders

Panglobal Brands Inc. and Subsidiary (a development stage
company)

We have audited the accompanying consolidated balance sheets of
Panglobal Brands Inc. and Subsidiary (a development stage company) as of
September 30, 2007 and 2006, and the related statements of operations, changes
in stockholders equity (deficiency) and cash flows for the year ended September
30, 2007, period from February 3, 2006 (Inception) to September 30, 2006, and
the period from February 3, 2006 (Inception) to September 30, 2007. These
consolidated financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.

We conducted our audit in accordance in accordance with the auditing
  standards of the Public Company Accounting Oversight Board (United States).
  Those standards require that we plan and perform the audit to obtain reasonable
  assurance about whether the consolidated financial statements are free of material
  misstatement. The Company is not required to have, nor were we engaged to perform,
  an audit of its internal controls over financial reporting. Our audit included
  consideration of internal control over financial reporting as a basis for designing
  audit procedures that are appropriate in the circumstances, but not for the
  purpose of expressing an opinion on the effectiveness of the Company’s
  internal control over financial reporting. Accordingly, we express no such opinion.
  An audit also includes examining, on a test basis, evidence supporting the amounts
  and disclosures in the financial statements. An audit also includes assessing
  the accounting principles used and significant estimates made by management,
  as well as evaluating the overall financial statement presentation. We believe
  that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred
  to above present fairly, in all material respects, the financial position of
  Panglobal Brands Inc. and Subsidiary as of September 30, 2007 and 2006, and
  the results of their operations and cash flows for the year ended September
  30, 2007, period from February 3, 2006 (Inception) to September 30, 2006, and
  the period from February 3, 2006 (Inception) to September 30, 2007, in conformity
  with accounting principles generally accepted in the United States.

The accompanying consolidated financial statements have been
prepared assuming the Company will continue as a going concern. As discussed in
Note 2 to the consolidated financial statements, the Company is in the
development stage and has incurred a loss from operations and negative cash
flows from operations that raise substantial doubt about its ability to continue
as a going concern. Managements plans in regard to these matters are also
described in Note 2. The consolidated financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

/s/ *Grobstein, Horwath & Company LLP*

Sherman Oaks, CaliforniaJanuary 14, 2008

---

- 19 -

PANGLOBAL BRANDS INC.AND SUBSIDIARY
  (a development stage company)

CONSOLIDATED BALANCE SHEETS

|                                                                                                       |   | September 30, |   |   | September 30, |  
|------------------------------------------------------------------------------------------------------ | - | ------------- | - | - | ------------- | -
|                                                                                                       |   | 2007          |   |   | 2006          |  
|                                                                                                       |   |               |   |   | Restated      |  
|ASSETS                                                                                                 |   |               |   |   |               |  
|Current assets:                                                                                        |   |               |   |   |               |  
|Cash and cash equivalents                                                                              | $ | 1,170,214     |   | $ | 150,922       |  
|Accounts receivable, net of allowance of $14,675                                                       |   | 29,975        |   |   | ---           |  
|Due from factor, net of allowance of
      $117,035                                                    |   | 175,084       |   |   | ---           |  
|Inventory                                                                                              |   | 309,700       |   |   | ---           |  
|Prepaid expenses and other current
      assets                                                        |   | 51,004        |   |   | 10,663        |  
|Total
      current assets                                                                             |   | 1,735,977     |   |   | 161,585       |  
|Plant and equipment ,net of
      accumulated                                                          |   |               |   |   |               |  
|depreciation of $12,827 at September 30, 2007                                                          |   | 210,930       |   |   | ---           |  
|Deposits                                                                                               |   | 68,065        |   |   | ---           |  
|Total
      assets                                                                                     | $ | 2,014,972     |   | $ | 161,585       |  
|                                                                                                       |   |               |   |   |               |  
|                                                                                                       |   |               |   |   |               |  
|LIABILITIES AND STOCKHOLDERS EQUITY
      (DEFICIENCY)                                                |   |               |   |   |               |  
|Current liabilities:                                                                                   |   |               |   |   |               |  
|Accounts payable and accrued
      expenses                                                            | $ | 396,988       |   | $ | 47,811        |  
|Note payable                                                                                           |   | 10,000        |   |   | ---           |  
|Notes payable to related parties                                                                       |   | ---           |   |   | 300,000       |  
|Total
      current liabilities                                                                        |   | 406,988       |   |   | 347,811       |  
|                                                                                                       |   |               |   |   |               |  
|Commitments and contingencies                                                                          |   |               |   |   |               |  
|                                                                                                       |   |               |   |   |               |  
|Stockholders equity (deficiency):                                                                     |   |               |   |   |               |  
|Common stock, $0.0001 par value;                                                                       |   |               |   |   |               |  
|authorized
      - 600,000,000 shares and 100,000,000 shares at September 30, 2007 and
      September |   |               |   |   |               |  
|30, 2006, respectively; issued and outstanding  26,731,771 shares
      and 3,749,995 shares at       |   |               |   |   |               |  
|September
      30, 2007 and September 30, 2006, respectively                                          |   | 2,673         |   |   | 375           |  
|Additional paid-in capital                                                                             |   | 6,363,418     |   |   | 646,635       |  
|Deficit accumulated during the development stage                                                       |   | (4,758,107    | ) |   | (833,236      | )
|Total stockholders equity (deficiency)                                                                |   | 1,607,984     |   |   | (186,226      | )
|Total
      liabilities and stockholders equity (deficiency)                                          | $ | 2,014,972     |   | $ | 161,585       |  

See accompanying notes to consolidated financial
statements.

---

- 20 -

PANGLOBAL BRANDS INC.AND SUBSIDIARY
  (a development stage company)

CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                     |   |               |     |   |                |     |   | Period from    |  
|---------------------------------------------------- | - | ------------- | --- | - | -------------- | --- | - | -------------- | -
|                                                     |   |               |     |   | Period from    |     |   | February 3,    |  
|                                                     |   | Year          |     |   | February 3,    |     |   | 2006           |  
|                                                     |   | Ended         |     |   | 2006           |     |   | (Inception) to |  
|                                                     |   | September 30, |     |   | (Inception) to |     |   | September 30,  |  
|                                                     |   | 2007          |     |   | September 30,  |     |   | 2007 Restated  |  
|                                                     |   |               |     |   | 2006 Restated  |     |   | (Cumulative)   |  
|Net sales                                            | $ | 592,046       |     | $ | ---            |     | $ | 592,046        |  
|Cost of sales                                        |   | 1,886,380     |     |   | ---            |     |   | 1,886,380      |  
|Gross profit (loss)                                  |   | (1,294,334    | )   |   | ---            |     |   | (1,294,334     | )
|                                                     |   |               |     |   |                |     |   |                |  
|Costs and expenses:                                  |   |               |     |   |                |     |   |                |  
|Design and development                               |   | 365,719       |     |   | 318,114        |     |   | 683,833        |  
|Selling and shipping                                 |   | 611,591       |     |   | ----           |     |   | 611,591        |  
|General and administrative, including stock-         |   |               |     |   |                |     |   |                |  
|based
      compensation, $644,230 and $-0- during   |   |               |     |   |                |     |   |                |  
|the year ended September 30,
      2007 and the      |   |               |     |   |                |     |   |                |  
|period from
      February 3, 2006 (inception) to    |   |               |     |   |                |     |   |                |  
|September 30, 2006,
      respectively, and          |   |               |     |   |                |     |   |                |  
|$644,230 for the
      period from February 3, 2006  |   |               |     |   |                |     |   |                |  
|(inception) to September 30,
      2007 (cumulative) |   | 1,713,173     |     |   | 365,812        |     |   | 2,078,985      |  
|Depreciation                                         |   | 12,827        |     |   | ---            |     |   | 12,827         |  
|Total costs and expenses                             |   | 2,703,310     |     |   | 683,926        |     |   | 3,387,236      |  
|                                                     |   | (3,997,644    | )   |   | (683,926       | )   |   | (4,681,570     | )
|Loan fees paid in common stock                       |   | ---           |     |   | (149,310       | )   |   | (149,310       | )
|Interest income                                      |   | 72,773        |     |   | ---            |     |   | 72,773         |  
|Net loss                                             | $ | (3,924,871    | ) $ |   | (833,236       | ) $ |   | (4,758,107     | )
|                                                     |   |               |     |   |                |     |   |                |  
|Net loss per common share - basic and diluted        | $ | (0.27         | ) $ |   | (0.26          | )   |   |                |  
|                                                     |   |               |     |   |                |     |   |                |  
|Weighted average number of common shares             |   |               |     |   |                |     |   |                |  
|outstanding - basic and diluted                      |   | 14,817,000    |     |   | 3,256,000      |     |   |                |  

See accompanying notes to consolidated financial statements

---

- 21 -

PANGLOBAL BRANDS INC.AND SUBSIDIARY
  (a development stage company)

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY
(DEFICIENCY)

Period from February 3, 2006 (Inception) to September 30,
2007

|                                                   |  |              |  |   |         |  |   |             |   |   | Deficit     |   |   |               |  
|-------------------------------------------------- |  | ------------ |  | - | ------- |  | - | ----------- | - | - | ----------- | - | - | ------------- | -
|                                                   |  |              |  |   |         |  |   |             |   |   | Accumulated |   |   | Total         |  
|                                                   |  |              |  |   |         |  |   | Additional  |   |   | During the  |   |   | Stockholders |  
|                                                   |  | Common Stock |  |   | Paid-in |  |   | Development |   |   | Equity      |  
|                                                   |  | Shares       |  |   | Amount  |  |   | Capital     |   |   | Stage       |   |   | (Deficiency)  |  
|                                                   |  |              |  |   |         |  |   |             |   |   |             |   |   |               |  
|Balance, February 3, 2006
      (inception)        |  |             |  | $ |        |  | $ |            |   | $ |            |   | $ |              |  
|Shares issued to founding stockholders             |  | 2,884,612    |  |   | 288     |  |   | 497,412     |   |   |            |   |   | 497,700       |  
|Shares issued as loan fees                         |  | 865,383      |  |   | 87      |  |   | 149,223     |   |   |             |   |   | 149,310       |  
|Net loss for the period February 3, 2006           |  |              |  |   |         |  |   |             |   |   |             |   |   |               |  
|(inception) to
      September 30, 2006            |  |             |  |   |        |  |   |            |   |   | (833,236    | ) |   | (833,236      | )
|Balance, September 30, 2006 (as restated)          |  | 3,749,995    |  |   | 375     |  |   | 646,635     |   |   | (833,236    | ) |   | (186,226      | )
|Shares issued to acquire in connection
      with  |  |              |  |   |         |  |   |             |   |   |             |   |   |               |  
|reverse merger transaction                         |  | 11,396,550   |  |   | 1,140   |  |   | (68,991     | ) |   |            |   |   | (67,851       | )
|Shares issued to related parties for
      debt in |  |              |  |   |         |  |   |             |   |   |             |   |   |               |  
|connection with reverse merger
      transaction   |  | 975,000      |  |   | 97      |  |   | 389,903     |   |   |            |   |   | 390,000       |  
|Shares issued in private placement,
      net of   |  |              |  |   |         |  |   |             |   |   |             |   |   |               |  
|offering costs of $21,900                          |  | 10,610,226   |  |   | 1,061   |  |   | 4,751,641   |   |   |            |   |   | 4,752,702     |  
|Stock-based compensation                           |  |             |  |   |        |  |   | 644,230     |   |   |            |   |   | 644,230       |  
|Net loss for the year ended September 30, 2007     |  |             |  |   |        |  |   |            |   |   | (3,924,871  | ) |   | (3,924,871    | )
|Balance, September 30, 2007                        |  | 26,731,771   |  | $ | 2,673   |  | $ | 6,363,418   |   | $ | (4,758,107  | ) | $ | 1,607,984     |  

See accompanying notes to consolidated financial statements.

---

- 22 -

PANGLOBAL BRANDS INC.AND SUBSIDIARY
  (a development stage company)

CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                  |   |               |   |   |                |   |   | Period from    |  
|--------------------------------------------------------------------------------- | - | ------------- | - | - | -------------- | - | - | -------------- | -
|                                                                                  |   |               |   |   | Period from    |   |   | February 3,    |  
|                                                                                  |   |               |   |   | February 3,    |   |   | 2006           |  
|                                                                                  |   | Year          |   |   | 2006           |   |   | (Inception) to |  
|                                                                                  |   | Ended         |   |   | (Inception) to |   |   | September 30,  |  
|                                                                                  |   | September 30, |   |   | September 30,  |   |   | 2007 Restated  |  
|                                                                                  |   | 2007          |   |   | 2006 Restated  |   |   | (Cumulative)   |  
|                                                                                  |   |               |   |   |                |   |   |                |  
|Cash flows from operating activities                                              |   |               |   |   |                |   |   |                |  
|Net loss                                                                          | $ | (3,924,871    | ) | $ | (833,236       | ) | $ | (4,758,107     | )
|Adjustments to reconcile net loss to net cash used
      in operating activities: |   |               |   |   |                |   |   |                |  
|Depreciation                                                                      |   | 12,827        |   |   | ---            |   |   | 12,827         |  
|Provision for bad debts                                                           |   | 14,675        |   |   | ---            |   |   | 14,675         |  
|Provision for returns                                                             |   | 117,035       |   |   | ---            |   |   | 117,035        |  
|Stock-based compensation                                                          |   | 644,230       |   |   | ---            |   |   | 644,230        |  
|Stock issued as loan fees                                                         |   | ---           |   |   | 149,310        |   |   | 149,310        |  
|Changes in operating assets and liabilities:                                      |   |               |   |   |                |   |   |                |  
|(Increase) decrease in -                                                          |   |               |   |   |                |   |   |                |  
|Accounts receivable                                                               |   | (44,650       | ) |   |                |   |   | (44,650        | )
|Due from
      factor                                                             |   | (292,119      | ) |   | ---            |   |   | (292,119       | )
|Inventory                                                                         |   | (309,700      | ) |   | ---            |   |   | (309,700       | )
|Prepaid
      expenses and other current assets                                   |   | (40,341       | ) |   | (10,663        | ) |   | (51,004        | )
|Deposits                                                                          |   | (68,065       | ) |   | ---            |   |   | (68,065        | )
|Increase (decrease) in -                                                          |   |               |   |   |                |   |   |                |  
|Accounts payable and
      accrued expenses                                       |   | 291,326       |   |   | 47,811         |   |   | 339,137        |  
|Net cash used in operating
      activities                                       |   | (3,599,653    | ) |   | (646,778       | ) |   | (4,246,431     | )
|                                                                                  |   |               |   |   |                |   |   |                |  
|Cash flows from investing activities                                              |   |               |   |   |                |   |   |                |  
|Purchase of office equipment                                                      |   | (223,757      | ) |   | ---            |   |   | (223,757       | )
|Net cash used in investing
      activities                                       |   | (223,757      | ) |   | ---            |   |   | (223,757       | )
|                                                                                  |   |               |   |   |                |   |   |                |  
|Cash flows from financing activities                                              |   |               |   |   |                |   |   |                |  
|Proceeds from sale of common stock to founders                                    |   | ---           |   |   | 497,700        |   |   | 497,700        |  
|Gross proceeds from private
      placements                                      |   | 4,774,602     |   |   | ---            |   |   | 4,774,602      |  
|Private placement offering costs                                                  |   | (21,900       | ) |   | ---            |   |   | (21,900        | )
|Proceeds from stockholders loans                                                  |   | 390,000       |   |   | 300,000        |   |   | 690,000        |  
|Repayment of stockholders loans                                                   |   | (300,000      | ) |   | ---            |   |   | (300,000       | )
|Net cash provided by financing
      activities                                   |   | 4,842,702     |   |   | 797,700        |   |   | 5,640,402      |  
|                                                                                  |   |               |   |   |                |   |   |                |  
|Net increase in cash                                                              |   | 1,019,292     |   |   | 150,922        |   |   | 1,170,214      |  
|Cash at beginning of period                                                       |   | 150,922       |   |   | ---            |   |   | ---            |  
|Cash at end of period                                                             | $ | 1,170,214     |   | $ | 150,922        |   | $ | 1,170,214      |  

(continued)

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- 23 -

PANGLOBAL BRANDS INC.AND SUBSIDIARY
  (a development stage company)

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

|                                                                               |   |               |  |   |                |  |   | Period from    | 
|------------------------------------------------------------------------------ | - | ------------- |  | - | -------------- |  | - | -------------- | 
|                                                                               |   |               |  |   | Period from    |  |   | February 3,    | 
|                                                                               |   |               |  |   | February 3,    |  |   | 2006           | 
|                                                                               |   | Year          |  |   | 2006           |  |   | (Inception) to | 
|                                                                               |   | Ended         |  |   | (Inception) to |  |   | September 30,  | 
|                                                                               |   | September 30, |  |   | September 30,  |  |   | 2007 Restated  | 
|                                                                               |   | 2007          |  |   | 2006 Restated  |  |   | (Cumulative)   | 
|                                                                               |   |               |  |   |                |  |   |                | 
|Supplemental disclosures of non-cash investing and
      financing activities: |   |               |  |   |                |  |   |                | 
|Liabilities assumed in connection
      with reverse merger                    | $ | 67,851        |  | $ | ---            |  | $ | 67,851         | 
|                                                                               |   |               |  |   |                |  |   |                | 
|Common stock issued in payment of
      debt                                   | $ | 390,000       |  | $ | ---            |  | $ | 390,000        | 
|                                                                               |   |               |  |   |                |  |   |                | 
|                                                                               |   |               |  |   |                |  |   |                | 
|Supplemental disclosures of cash flow information:                             |   |               |  |   |                |  |   |                | 
|Cash paid for -                                                                |   |               |  |   |                |  |   |                | 
|Interest                                                                       | $ | ---           |  | $ | ---            |  | $ | ---            | 
|                                                                               |   |               |  |   |                |  |   |                | 
|Income taxes                                                                   | $ | ---           |  | $ | ---            |  | $ | ---            | 

See accompanying notes to consolidated financial statements.

---

- 24 -

PANGLOBAL BRANDS INC. AND SUBSIDIARY(A development stage company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2007 and September 30, 2006

|1. | Organization and Basis of
  Presentation
|-- | ----------------------------------------

Organization and Nature of Operations

EZ English Online Corp, a
Delaware corporation (EZ English), was incorporated in the State of Delaware
on March 2, 2005. EZ English sold common stock pursuant to a registration
statement on Form SB-2 declared effective by the Securities and Exchange
Commission on February 28, 2006, and raised gross proceeds of approximately
$85,000. Through September 30, 2006, EZ English was a development stage company
offering a teacher training course to teach English as a second language over
the Internet.

Beginning in December 2006, in
conjunction with a new controlling shareholder acquiring approximately 79% of
the issued and outstanding common shares, EZ English began a program to
discontinue its existing business operations and prepare to enter the fashion
industry. On February 2, 2007, in order to better reflect its future business
operations and prepare for its acquisition of Mynk Corporation, a privately-held
Nevada corporation (Mynk), EZ English completed a merger with its wholly-owned
Delaware subsidiary, in order to effect a name change to Panglobal Brands Inc.
(Panglobal), and effected a six-for-one forward split of its outstanding
common stock. All common share amounts referred to herein are presented on a
post-split basis. All options referred to herein were issued on a post-split
basis.

Mynk was incorporated in Nevada
on February 3, 2006 to engage in the business of design, manufacture and
distribution of clothing and accessories throughout the United States and
Canada.

Unless the context indicates otherwise, Panglobal and Mynk are
hereinafter referred to as the Company.

The Company sells its products
through a network of wholesale accounts. The Company is considered a
development stage company as defined in Statement of Financial Accounting
Standards No. 7, Accounting and Reporting by Development Stage Enterprises, as
it had not yet commenced any material revenue-generating operations, did not
have any material cash flows from operations, and was dependent on debt and
equity funding to finance its operations. The Company has elected September 30
as its fiscal year-end.

Basis of Presentation

On May 11, 2007, Mynk completed a
transaction with Panglobal, whereby Mynk became a wholly-owned subsidiary of
Panglobal (see Note 3). Panglobal was a development stage company and had
terminated its prior operations by that date and was essentially a shell company
seeking a new business opportunity. For financial reporting purposes, Mynk was
considered the accounting acquirer in the merger and the merger was accounted
for as a reverse merger. The determination to account for this transaction as a
reverse merger was based on the fact that the shareholders and officers of Mynk
acquired effective control of Panglobal at the conclusion of the transactions
described herein, through control of the Board of Directors and ownership of
approximately 43% of the issued and outstanding shares of common stock of
Panglobal. Additional factors that Panglobal considered in arriving at this
determination included that through a series of planned and interdependent
transactions beginning in December 2006, as disclosed in Panglobals prior
filings with the Securities and Exchange Commission, Panglobal and its
controlling shareholder (who owned approximately 79% of the outstanding common
shares in December 2006) terminated Panglobals prior business operations,
changed its name, appointed new officers and directors, entered into a series of
stock-based transactions funded by Panglobals controlling shareholder to
facilitate the acquisition and operations of Mynk, and raised approximately
$4,750,000 of equity capital from investors to fund the business operations of
Mynk as a wholly-owned subsidiary of Panglobal.

---

- 25 -

The controlling shareholder of
Panglobal returned 18,975,000 shares of common stock to the Company for
cancellation immediately prior to the closing of the transaction on May 10,
2007. Of the 11,396,550 shares of common stock retained by the Panglobal
shareholders on May 11, 2007 upon the closing of the transaction, 5,025,000
shares were owned by the controlling shareholder, resulting in the other public
shareholders owning 6,371,550 shares. Of such 5,025,000 shares, 2,025,000 shares
were subject to purchase and escrow agreements transferring such shares to new
management at June 30, 2007, and the Company expects that most of the remaining
3,000,000 shares will also be transferred to new management subsequent to
September 30, 2007.

Accordingly, the historical
financial statements presented herein are those of Mynk and do not include the
historical financial results of Panglobal, except for the period subsequent to
May 11, 2007. The stockholders equity section of Panglobal has been
retroactively restated for all periods presented to reflect the accounting
effect of the reverse merger transaction. All costs associated with the reverse
merger transaction were expensed as incurred.

|2. | Business Operations and Summary of Significant
      Accounting Policies
|-- | ------------------------------------------------------------------------

Going Concern and Plan of Operations

The Companys financial
statements have been presented on the basis that it is a going concern, which
contemplates the realization of assets and satisfaction of liabilities in the
normal course of business. The Company is in the development stage and has not
generated any material revenues from operations to date, which raises
substantial doubt about its ability to continue as a going concern.

The Companys ability to continue
as a going concern is dependent upon its ability to develop additional sources
of capital, and ultimately achieve profitable operations. As of September 30,
2007, the Company had an accumulated deficit of $4,758,107 and had incurred a
net loss of $3,924,871 and used net cash in operating activities of $3,599,653
for the year ended September 30, 2007. The accompanying financial statements do
not include any adjustments that might result from the outcome of these
uncertainties.

At September 30, 2007, the
Company had not yet commenced any material revenue-generating operations.
Principal activity through September 30, 2007 related to the Companys
formation, capital raising efforts and initial product design and development
activities. These activities are beginning to generate prospective sales and
significant shipments of apparel products will commence January, 2008. As such,
the Company has yet to generate any material cash flows from operations, and is
essentially dependent on debt and equity funding from both related and unrelated
parties to finance its operations.

Prior to February 28, 2007, the
Companys cash requirements were funded by advances from Mynks founders. On
February 27, 2007, the Company completed an initial closing of its private
placement (see Note 3), selling 9,426,894 shares of common stock at a price of
$0.45 per share and receiving net proceeds of $4,220,203. On February 28, 2007,
the Company completed a second closing of its private placement, selling
1,183,332 shares of common stock at a price of $0.45 per share and receiving net
proceeds of $532,499.

On October 23, 2007, the Company
closed a private placement of 2,871,759 units for gross proceeds of $2,153,819.
Each unit was sold for $0.75 and consists of one common share and one common
share purchase warrant. Each common share purchase warrant entitles the holder
to purchase, if exercised, one additional common share of our company at a price
of $1.00 per common share until October 23, 2008 and at $1.50 per common share
if exercised during the period from October 24, 2008 until the warrants expire
on October 23, 2009.

Principles of Consolidation

The accompanying consolidated
financial statements include the financial statements of Panglobal and its
wholly-owned subsidiary, Mynk. All intercompany balances and transactions have
been eliminated in consolidation.

---

- 26 -

Inventories

Inventories are valued at the
lower of cost or market, with cost being determined by the first-in, first-out
method. The Company continually evaluates its inventories by assessing
slow-moving product and records mark-downs as appropriate. At September 30,
2007, inventories consisted of finished goods, work-in-process and raw
materials.

Revenue Recognition

The Company recognizes revenue
  from the sale of merchandise to its wholesale accounts when products are shipped
  and the customer takes title and assumes the risk of loss, collection of the
  relevant receivable is reasonably assured, pervasive evidence of an arrangement
  exists, and the sales price is fixed or otherwise determinable. Sales allowances
  are recorded as a reduction to revenue. For the year ended September 30, 2007
  and the period from February 3, 2006 (inception) to September 30, 2006, the
  Company recognized sales returns of $ 456,367 and $0, respectively. Management
  has evaluated the effects of estimating and accruing for sales returns in the
  current and prior periods and determined the impact to be immaterial at this
  time.

Cash and Cash Equivalents

The Company considers all highly
liquid investments with an original maturity of three months or less when
purchased to be cash equivalents. At times, such cash and cash equivalents may
exceed federally insured limits. The Company has not experienced a loss in such
accounts to date. The Company maintains its accounts with financial institutions
with high credit ratings.

Income Taxes

The Company accounts for income
taxes under Statement of Financial Accounting Standards No. 109, Accounting for
Income Taxes, which requires the recognition of deferred tax assets and
liabilities for the expected impact of differences between the financial
statements and the tax basis of assets and liabilities.

For federal income tax purposes,
substantially all expenses must be deferred until the Company commences business
operations and then they may be written off over a 60-month period. These
expenses will not be deducted for tax purposes and will represent a deferred tax
asset. The Company will provide a valuation allowance for the full amount of the
deferred tax asset since there is no assurance of future taxable income. Tax
deductible losses can be carried forward for 20 years until utilized.

Stock-Based Compensation

Effective February 3, 2006, the
Company adopted Statement of Financial Accounting Standards No. 123 (revised
2004), Share-Based Payment (SFAS No. 123R), a revision to SFAS No. 123,
Accounting for Stock-Based Compensation. SFAS No. 123R requires that the
Company measure the cost of employee services received in exchange for equity
awards based on the grant date fair value of the awards, with the cost to be
recognized as compensation expense in the Company's financial statements over
the period of benefit, which is generally the vesting period of the awards.
Accordingly, the Company recognizes compensation cost for equity-based
compensation for all new or modified grants issued after February 3, 2006
(Inception).

The Company accounts for stock
option and warrant grants issued and vesting to non-employees in accordance with
EITF No. 96-18, Accounting for Equity Instruments that are Issued to Other Than
Employees for Acquiring, or in Conjunction with Selling, Goods or Services, and
EITF 00-18, Accounting Recognition for Certain Transactions involving Equity
Instruments Granted to Other Than Employees, whereas the value of the stock
compensation is based upon the measurement date as determined at either (a) the
date at which a performance commitment is reached or (b) at the date at which
the necessary performance to earn the equity instruments is complete.

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- 27 -

Adoption of New Accounting Policies

In December 2006, the FASB issued
FSP EITF 00-19-2, Accounting for Registration Payment Arrangements (EITF
00-19-2), which addresses an issuers accounting for registration payment
arrangements. EITF 00-19-2 specifies that the contingent obligation to make
future payments or otherwise transfer consideration under a registration payment
arrangement, whether issued as a separate agreement or included as a provision
of a financial instrument or other agreement, should be separately recognized
and measured in accordance with FASB No. 5, Accounting for Contingencies. EITF
00-19-2 further clarifies that a financial instrument subject to a registration
payment arrangement should be accounted for in accordance with other applicable
generally accepted accounting principles without regard to the contingent
obligation to transfer consideration pursuant to the registration payment
arrangement. EITF 00-19-2 is effective immediately for registration payment
arrangements and the financial instruments subject to those arrangements that
are entered into or modified subsequent to the date of issuance of EITF 00-19-2.
For registration payment arrangements and financial instruments subject to those
arrangements that were entered into prior to the issuance of EITF 00-19-2, EITF
00-19-2 is effective for financial statements issued for fiscal years beginning
after December 15, 2006, and interim periods within those fiscal years. Early
adoption of EITF 00-19-2 for interim or annual periods for which financial
statements or interim reports have not been issued is permitted. The Company
adopted EITF 00-19-2 effective December 31, 2006.

Effective January 1, 2007, the
  Company adopted FASB Interpretation No. 48, “Accounting for Uncertainty
  in Income Taxes, an interpretation of FASB Statement No. 109, Accounting for
  Income Taxes” (“FIN 48”). FIN 48 addresses the determination
  of whether tax benefits claimed or expected to be claimed on a tax return should
  be recorded in the financial statements. Under FIN 48, the Company may recognize
  the tax benefit from an uncertain tax position only if it is more likely than
  not that the tax position will be sustained on examination by the taxing authorities,
  based on the technical merits of the position. The tax benefits recognized in
  the financial statements from such a position should be measured based on the
  largest benefit that has a greater than fifty percent likelihood of being realized
  upon ultimate settlement. FIN 48 also provides guidance on derecognition, classification,
  interest and penalties on income taxes, accounting in interim periods and requires
  increased disclosures. The adoption of the provisions of FIN 48 did not have
  a material effect on the Company’s financial statements. The Company currently
  files or has in the past filed income tax returns in Canada and the United States.
  The Company is subject to tax examinations by tax authorities for tax years
  ending in 2006 and subsequently.

The Company currently files or
has in the past filed income tax returns in Canada and the United States. The
Company is subject to tax examinations by tax authorities for tax years ending
in 2006 and subsequently.

The Companys policy is to record
interest and penalties on uncertain tax provisions as income tax expense. As of
September 30, 2007, the Company has no accrued interest or penalties related to
uncertain tax positions.

Recent Accounting Pronouncements

In September 2006, the FASB
issued Statement of Financial Accounting Standards No. 157, Fair Value
Measurements (SFAS No. 157), which establishes a formal framework for
measuring fair value under generally accepted accounting principles. SFAS No.
157 defines and codifies the many definitions of fair value included among
various other authoritative literature, clarifies and, in some instances,
expands on the guidance for implementing fair value measurements, and increases
the level of disclosure required for fair value measurements. Although SFAS No.
157 applies to and amends the provisions of existing FASB and AICPA
pronouncements, it does not, of itself, require any new fair value measurements,
nor does it establish valuation standards. SFAS No. 157 applies to all other
accounting pronouncements requiring or permitting fair value measurements,
except for: SFAS No. 123R, share-based payment and related pronouncements, the
practicability exceptions to fair value determinations allowed by various other
authoritative pronouncements, and AICPA Statements of Position 97-2 and 98-9
that deal with software revenue recognition. SFAS No. 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007,
and interim periods within those fiscal years. The Company is currently
assessing the potential effect of SFAS No. 157 on its consolidated financial
statements.

In February 2007, the FASB issued
Statement of Financial Accounting Standards No. 159, The Fair Value Option for
Financial Assets and Financial Liabilities (SFAS No. 159), which provides
companies with an option to report selected financial assets and liabilities at
fair value. The objective of SFAS No. 159 is to reduce both complexity in
accounting for financial instruments and the volatility in earnings caused by
measuring related assets

---

- 28 -

and liabilities differently. Generally accepted accounting
principles have required different measurement attributes for different assets
and liabilities that can create artificial volatility in earnings. SFAS No. 159
helps to mitigate this type of accounting-induced volatility by enabling
companies to report related assets and liabilities at fair value, which would
likely reduce the need for companies to comply with detailed rules for hedge
accounting. SFAS No. 159 also establishes presentation and disclosure
requirements designed to facilitate comparisons between companies that choose
different measurement attributes for similar types of assets and liabilities.
SFAS No. 159 requires companies to provide additional information that will help
investors and other users of financial statements to more easily understand the
effect of the companys choice to use fair value on its earnings. SFAS No. 159
also requires companies to display the fair value of those assets and
liabilities for which the company has chosen to use fair value on the face of
the balance sheet. SFAS No. 159 does not eliminate disclosure requirements
included in other accounting standards, including requirements for disclosures
about fair value measurements included in SFAS No. 157 and SFAS No. 107. SFAS
No. 159 is effective as of the beginning of a companys first fiscal year
beginning after November 15, 2007. Early adoption is permitted as of the
beginning of the previous fiscal year provided that the company makes that
choice in the first 120 days of that fiscal year and also elects to apply the
provisions of SFAS No. 157. The Company is currently assessing the potential
effect of SFAS No. 159 on its consolidated financial statements.

Management does not believe that
any other recently issued, but not yet effective, accounting standards, if
currently adopted, would have a material effect on the Company's financial
statements.

Loss per Common Share

Loss per common share is computed
by dividing net loss by the weighted average number of shares of common stock
outstanding during the respective periods. Basic and diluted loss per common
share are the same for all periods presented because all warrants and stock
options outstanding are anti-dilutive. The 2,884,612 shares of common stock
issued to the founders of Mynk in conjunction with the closing of the reverse
merger transaction on May 11, 2007 have been presented as outstanding for all
periods presented.

Design and Development

Design and development costs related to the development of new
products are expensed as incurred.

Use of Estimates

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

Property and Equipment

Property and equipment are
recorded at cost. Expenditures for major renewals and improvements that extend
the useful lives of property and equipment are capitalized. Expenditures for
maintenance and repairs are charged to expense as incurred. When assets are
retired or sold, the property accounts and related accumulated depreciation and
amortization accounts are relieved, and any resulting gain or loss is included
in operations.

Depreciation is computed on the
straight-line method based on the estimated useful lives of the assets of five
years. Leasehold improvements are amortized over the remaining life of the
related lease, which has been determined to be shorter than the useful life of
the asset.

Fair Value of Financial Instruments

The carrying amounts of cash and
cash equivalents, prepaid expenses, accounts payable, accrued expenses and due
to stockholder approximate their respective fair values due to the short-term
nature of these items and/or the current interest rates payable in relation to
current market conditions.

---

- 29 -

Advertising

The company expenses advertising
  costs, consisting primarily of placement in publications, along with design
  and printing costs of sales materials when incurred. Advertising expense for
  the year ended September 30, 2007 and the period from February 3, 2006 (inception)
  to September 30, 2006 amounted to $3,004 and $0, respectively.

***Shipping and Handling Costs***

The Company records shipping
  and handling costs billed to customers as a component of revenue, and shipping
  and handling costs incurred by the Company for inbound and outbound freight
  are recorded as a component of cost of sales. Total shipping and handling costs
  included as a component of cost of sales amounted to approximately $121,719
  and $ 0 for the year ended September 30, 2007 and the period from February 3,
  2006 (inception) to September 30, 2006, respectively.

|3. | Share Exchange Agreement and Private
    Placement
|-- | --------------------------------------------------

As a result of the sale of the
10,610,226 shares of common stock in late February 2007 at a per share price of
$0.45, and the acquisition of Mynk by Panglobal effective May 11, 2007, the
Company has determined that the grant date fair value charge to operations for
all stock options and other similar stock-based compensation that is amortizable
over future periods should begin on May 11, 2007, since that is the date on
which acquisition occurred and the period of benefit therefore began. Since the
Companys common stock traded on a very limited and sporadic basis prior to May
11, 2007, the Company has also determined that the best indicator of fair value
of the Companys common stock on May 11, 2007 was the $0.45 per share cash price
paid by the investors in the recent private placement, who owned approximately
40% of the issued and outstanding shares of common on May 11, 2007. These
determinations affected the accounting for the stock-based transactions noted
below through September 30, 2007.

Share Exchange Agreement

On May 11, 2007, pursuant to a
Share Exchange Agreement dated as of February 15, 2007 (the Share Exchange
Agreement) by and among Panglobal, the shareholders of Mynk Corporation
(Selling Shareholders) and Mynk, Panglobal issued 3,749,995 shares of its
common stock in exchange for all of the issued and outstanding shares of Mynk,
issued 975,000 shares of it common stock in payment of $390,000 of outstanding
loans to Mynk, and agreed to reimburse a shareholder of Mynk up to $100,000 for
outstanding amounts due (the Exchange). Previously, on February 3, 2006, Mynk
had issued 10,000,000 shares of its common stock to its founders for $497,700 in
cash, and 3,000,000 shares of its common stock valued at $149,310, as loan fees
on June 20, 2006, for a total of 13,000,000 shares, which constituted all of the
issued and outstanding shares of Mynk prior to the Exchange. The share exchange
was conducted on the basis of 0.2884615 common shares of Panglobal for every one
common share of Mynk. As a result of the Exchange, Mynk became a wholly-owned
subsidiary of Panglobal.

The Company also agreed to file
with the Securities and Exchange Commission, within a reasonable time following
the closing of the Share Exchange Agreement, a registration statement on Form
SB-2 to effect the registration of half of the shares of the common stock that
were issued to Mynk shareholders pursuant to the Share Exchange Agreement. There
is no specified filing deadline or financial penalty if the Company fails to
file the registration statement.

Pursuant to the Exchange,
Panglobal issued to the Selling Shareholders 3,749,995 shares of its common
stock. Panglobal had a total of 26,731,771 shares of common stock issued and
outstanding after giving effect to the Exchange and the 10,610,226 shares of
common stock issued in the Companys two private placements.

As a result of the Exchange and
the shares of common stock issued in the two private placements, on May 11,
2007, the stockholders of the Company immediately prior to the Exchange owned
11,396,550 shares of common stock, equivalent to approximately 43% of the issued
and outstanding shares of the Companys common stock, and the Company is now
controlled by the former stockholders of Mynk.

Private Placements

On February 27, 2007, in
anticipation of the Exchange, the Company sold an aggregate of 9,426,894 shares
of its common stock to fifty accredited investors in an initial closing of its
private placement at a per share price of $0.45, resulting in aggregate gross
proceeds to the Company of $4,242,103. Net cash proceeds to the Company, after
the deduction of all private placement offering costs and expenses of $21,900,
were $4,220,203.

---

- 30 -

On February 28, 2007, the Company
sold an aggregate of 1,183,332 shares of its common stock to nine accredited
investors in a second closing of the private placement at a per share price of
$0.45, resulting in aggregate gross proceeds to the Company of $532,499. Net
cash proceeds to the Company were also $532,499.

Stephen Soller, the Companys
Chief Executive Officer, purchased 291,666 shares in the private placement for
$131,250. Craig Soller, the brother of Stephen Soller and a consultant to the
Company, purchased 244,444 shares of common stock in the private placement for
$110,000. Three Mynk shareholders also purchased an aggregate of 299,999 shares
in the private placement for $134,500.

Stock Options

On January 18, 2007, in
anticipation of the closing of the Exchange and Private Placements, the Company
granted to Felix Wasser, the Companys Chief Financial Officer, a stock option
to purchase an aggregate of 250,000 shares of common stock, exercisable for a
period of five years at $0.30 per share, with one quarter vesting every six
months through January 18, 2009. The fair value of this option, as calculated
pursuant to the Black-Scholes option-pricing model, was determined to be $97,500
($0.39 per share), and was being charged to operations ratably from May 11, 2007
through January 18, 2009. During the year ended September 30, 2007, the Company
recorded a charge to operations of $15,844 with respect to this option. Felix
Wasser resigned as an officer of the Company on August 21, 2007 and no further
charges to operations were recorded. Vesting has ceased and the 250,000 options
have been cancelled.

On February 12, 2007, in
anticipation of the closing of the Exchange and Private Placements, the Company
granted to Stephen Soller, the Companys Chief Executive Officer, stock options
to purchase an aggregate of 1,800,000 shares of common stock, exercisable for a
period of five years at $0.30 per share, with one-sixth vesting every six months
through February 12, 2010. The fair value of this option, as calculated pursuant
to the Black-Scholes option-pricing model, was determined to be $702,000 ($0.39
per share), and is being charged to operations ratably from May 11, 2007 through
February 12, 2010. During the year ended September 30, 2007, the Company
recorded a charge to operations of $95,727 with respect to this option.

The fair value of these stock
options were calculated using the following Black-Scholes input variables: stock
price on date of grant - $0.45; exercise price - $0.30; expected life  4.67 
4.75 years; expected volatility - 125%; expected dividend yield - 0%; risk-free
interest rate  5.0% .

On February 12, 2007, in
anticipation of the closing of the Exchange and Private Placements, the Company
granted to two consultants stock options to purchase an aggregate of 375,000
shares of common stock exercisable for a period of five years at $0.45 per
share, with one-third of the options vesting annually on each of February 11,
2008, February 11, 2009 and February 11, 2010. The fair value of these options,
as calculated pursuant to the Black-Scholes option-pricing model, was initially
determined to be $142,500 ($0.38 per share). The fair value of such options is
being charged to operations ratably from May 11, 2007 through February 11, 2010.
In accordance with EITF 96-18, options granted to consultants are valued each
reporting period to determine the amount to be recorded as an expense in the
respective period. On September 30,, 2007, the fair value of these options, as
calculated pursuant to the Black-Scholes option-pricing model, was determined to
be $281,250 ($0.75 per share), which resulted in a charge to operations of
$43,802 during the year ended September 30, 2007. As the options vest, they will
be valued on each vesting date and an adjustment will be recorded for the
difference between the value already recorded and the then current value on the
date of vesting. On October 31, 2007 the relationship of one of the consultants
with the Company ended and options to exercise 250,000 shares of common stock
have been canceled at that time. Accordingly, there will be no further non-cash
compensation expenses charged relating to those 250,000 options subsequent to
September 30, 2007.

On February 12, 2007, the fair
value of the aforementioned stock options was calculated using the following
Black-Scholes input variables: stock price on date of grant - $0.45; exercise
price - $0.45; expected life  4.75 years; expected volatility - 125%; expected
dividend yield - 0%; risk-free interest rate  5.0% . On September 30, 2007, the
fair value of the aforementioned stock options was calculated using the
following Black-Scholes input variables: stock price of grant - $1.02; exercise
price - $0.45; expected life  4.625 years; expected volatility - 125%; expected
dividend yield - 0%; risk-free interest rate  5.0%

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- 31 -

On August 7, 2007, the Company
granted a consultant a stock option to purchase 100,000 shares of common stock
exercisable for a period of one year at $0.45 per share, all of which were fully
vested upon issuance, for past services through June 2007. The fair value of
this option, as calculated pursuant to the Black-Scholes option-pricing model,
was determined to be $69,000 ($0.69 per share), and was charged to operations at
June 30, 2007. For presentation purposes, these options have been treated as
granted and exercisable as of June 30, 2007 and were recorded at that date. At
August 7, 2007, the fair value of the aforementioned stock options was
calculated using the following Black-Scholes input variables: stock price of
grant - $1.00; exercise price - $0.45; expected life  1 year; expected
volatility - 125%; expected dividend yield - 0%; risk-free interest rate  5.0%
..

During the period from February
3, 2006 (Inception) through September 30, 2006, the Company did not issue any
stock options.

A summary of stock option activity for the year ended September
30, 2007 is as follows:

|                                                |  |           |   |   |          |  |  | Weighted     | 
|----------------------------------------------- |  | --------- | - | - | -------- |  |  | ------------ | 
|                                                |  |           |   |   | Weighted |  |  | Average      | 
|                                                |  | Number    |   |   | Average  |  |  | Remaining    | 
|                                                |  | of        |   |   | Exercise |  |  | Contractual  | 
|                                                |  | Shares    |   |   | Price    |  |  | Life (Years) | 
|                                                |  |           |   |   |          |  |  |              | 
|Options outstanding at September 30, 2006       |  | ---       |   | $ | ---      |  |  | ---          | 
|Granted                                         |  | 2,525,000 |   |   | 0.328    |  |  | 4.59         | 
|Exercised                                       |  | ---       |   |   | ---      |  |  | ---          | 
|Cancelled                                       |  | (187,500  | ) |   | 0.30     |  |  |              | 
|Options outstanding at September 30, 2007       |  | 2,337,500 |   | $ | 0.331    |  |  | 4.48         | 
|Options exercisable at September 30,
      2007 |  | 462,500   |   | $ | 0.333    |  |  | 1.00         | 

The aggregate intrinsic value of stock options outstanding at
September 30, 2007 was $1,180,000.

Share Purchase Agreements

In anticipation of the closing of
the Exchange and Private Placements, additional compensatory transactions were
entered into pursuant to various Share Purchase Agreements between Jacques
Ninio, the controlling shareholder of Panglobal at that time, and the Chief
Executive Officer and certain other consultants. Since these transactions were
intended to benefit the Company and were entered into by an affiliate of the
Company, the Company has recorded these transactions on its financial statements
as follows:

On February 12, 2007, Stephen
Soller, the Companys Chief Executive Officer, purchased 519,250 shares of
common stock from two former founding shareholders of Mynk at a price of $0.325
per share. The fair value of this transaction was determined to be in excess of
the purchase price by $64,904 ($0.125 per share), reflecting the difference
between the $0.325 purchase price and the $0.45 private placement price, and was
charged to operations on May 11, 2007.

On February 12, 2007, Stephen
Soller, the Companys Chief Executive Officer, acquired the beneficial rights to
1,800,000 shares of common stock from Jacques Ninio, the controlling shareholder
of Panglobal at that time, at a price of $0.0001 per share. Pursuant to a
related Escrow Agreement, the shares are to vest and be released to Mr. Soller
at the rate of 600,000 shares every six months beginning on August 12, 2007,
provided that Mr. Sollers underlying employment agreement has not been
terminated. The fair value of this transaction, as calculated pursuant to the
Black-Scholes option-pricing model, was determined to be $810,000 ($0.45 per
share), reflecting the difference between the $0.0001 purchase price and the
$0.45 private placement price, and is being charged to operations ratably from
May 11, 2007 through August 11, 2008. During the year ended September 30, 2007,
the Company recorded a charge to operations of $243,000

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- 32 -

On May 11, 2007, Craig Soller and
  David Long, two consultants to the Company, acquired the beneficial rights to
  125,000 shares and 100,000 shares of common stock, respectively, from Jacques
  Ninio, the controlling shareholder of Panglobal at that time, at a price of
  $0.0001 per share. Pursuant to related Escrow Agreements, the 225,000 shares
  are to vest and be released to the consultants at the rate of 75,000 shares
  annually beginning on May 11, 2008, provided that the underlying consulting
  agreements have not been terminated. The fair value of these transactions, as
  calculated pursuant to the Black-Scholes option-pricing model, was initially
  determined to be $101,250 ($0.45 per share), reflecting the difference between
  the $0.0001 purchase price and the $0.45 private placement price. In accordance
  with EITF 96-18, such compensation arrangements granted to consultants are valued
  each reporting period to determine the amount to be recorded as an expense in
  the respective period. On September 30, 2007, the fair value of the transaction,
  as calculated pursuant to the Black-Scholes option-pricing model, was determined
  to be $191,250 ($0.85 per share), which resulted in a charge to operations of
  $26,949 during the year ended September 30, 2007. As the restricted shares vest,
  they will be valued on each vesting date and an adjustment will be recorded
  for the difference between the value already recorded and the then current value
  on the date of vesting.

On February 12, 2007, the fair
value of the aforementioned share purchases was calculated using the following
Black-Scholes input variables: stock price on date of grant - $0.45; exercise
price - $0.0001; expected life  1.25 years; expected volatility - 125%;
expected dividend yield - 0%; risk-free interest rate  5.0% . On May 11, 2007,
the fair value of the aforementioned share purchases was calculated using the
following Black-Scholes input variables: stock price of grant - $0.45; exercise
price - $0.0001; expected life  3 years; expected volatility - 125%; expected
dividend yield - 0%; risk-free interest rate  5.0% . At June 30, 2007, the fair
value of the aforementioned share purchase was calculated using the following
Black-Scholes input variables: stock price of grant - $1.02; exercise price -
$0.0001; expected life  2.875 years; expected volatility - 125%; expected
dividend yield - 0%; risk-free interest rate  5.0% .

|4. | Due from Factor
|-- | ---------------

The Company uses a factor for credit
  administration purposes. Under the factoring agreement, the factor purchases
  substantially all of the Company’s accounts receivable for the factoring
  charge of 1% of the gross invoice amount of each account receivable. In cases
  where the factor approves the customer’s credit, the account is sold without
  recourse and the factor assumes all credit risk. In those cases where the factor
  does not approve the customer’s credit, the Company bears the credit risk.
  The Company is also contingently liable to the factor for merchandise disputes,
  customer claims, and other charge-backs on receivables sold to the factor. For
  the year ended September 30, 2007, the Company paid a total of $9,997 to the
  factor. At September 30, 2007, due from factor totaled $175,084 net of a reserve
  of $117,035 for potential returns or chargebacks.

|5. | Inventories                                                      
|-- | -----------------------------------------------------------------
|   |                                                                  
|   | Inventories consist of the following at September 30,
      2007:

Finished goods
    $
    135,546Work-in-process
    
    15,896Raw materials
    
    158,258$
    309,700


Inventory at the year ended September
30, 2006 amounted to $0.

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- 33 -

|6. | Property and Equipment                                                        
|-- | ------------------------------------------------------------------------------
|   |                                                                               
|   | A summary of property and equipment at September 30, 2007
      is as follows:

Machinery and equipment
    $
    128,585Computer Software
    
    56,669Furniture and fixtures
    
    18,815Leasehold improvements
    
    19,688223,757Less accumulated depreciation and amortization
    
    (12,827
    )$
    210,930


Property and Equipment at the
year ended September 30, 2006 amounted to $0. Depreciation and amortization
expense for the year ended September 30, 2007 and the period from February 3,
2006 (inception) to September 30, 2006 was $12,827 and $0, respectively.

|7. | Note Payable
|-- | ------------

The note payable at September 30,
2007 of $10,000 is unsecured, non-interest-bearing and due on demand.

|8. | Related Party
Transactions
|-- | --------------------------

From February 3, 2006 (inception)
through May 11, 2006, Mynks founding stockholders periodically made advances to
the Company to meet various financing and operating requirements. All such loans
and advances have been unsecured, non-interest-bearing and due on demand. At
September 30, 2006, notes payable to such related parties totaled $300,000. All
such loans and advances were repaid in full by May 11, 2007.

During the year ended September
30, 2007, the Company paid $107,573, to an accounting firm owned by the
Companys Chief Financial Officer at that time for professional services.

During the period from February
3, 2006 (Inception) to June 30, 2006, certain stockholders of Mynk agreed to
provide advances as described above in exchange for the issuance to them of
3,000,000 shares of Mynk common stock. The Company valued such shares at the
price per share paid by the founding Mynk stockholders (see Note 10), resulting
in a charge to operations for loan fees paid in common stock of $149,310 during
the period from February 3, 2006 (Inception) to June 30, 2006.

Craig Soller, the brother of the
Companys Chief Executive Officer, Stephen Soller, is a consultant to the
Company. See Note 3 for transactions involving Craig Soller.

|9. | Consulting Agreement for
  Sosik
|-- | --------------------------------

On August 20, 2007 the Company
signed a consulting agreement with Lolly Factory, Inc. and its sole shareholder
(Consultant) to provide sales and merchandising consulting services for the
Sosik and Juniors apparel divisions through December 31, 2010. Consulting fees
totaling $452,125 are payable between September 2007 and June 2008. For the year
ended September 30, 2007 $90,425 in consulting fees were paid. In addition,
under the consulting agreement the Consultant shall earn a 3.5% commission on
the Sosik/Junior divisions net sales. Consultant also earns 100,000 of our
common shares payable each month from September, 2007 to June, 2008, up to an
aggregate of 1,000,000 common shares which shares are deemed to be earned and
vested each month. We recorded an expense to operations in the amount of $85,000
for 100,000 common shares earned for September, 2007.

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- 34 -

Consultant and Panglobal Brands
Inc. have established sales targets totaling $30.0 million for calendar year
2008, $45.0 million for calendar year 2009 and $60.0 million for calendar year
2010. Consultant can earn up to 1,500,000 additional common shares of Panglobal
Brands Inc. according to the following schedule:

| | (i)   | 500,000 shares upon meeting the sales target for calendar
      year 2008;     
| | ----- | -------------------------------------------------------------------------------
| |       |                                                                                
| | (ii)  | 500,000 shares upon meeting the sales target for calendar
      year 2009; and,
| |       |                                                                                
| | (iii) | 500,000 shares upon meeting the sales target for calendar
      year 2010.     

|10. | Common Stock
|--- | ------------

Prior to December 15, 2006, the
Companys Articles of Incorporation authorized the issuance of 100,000,000
shares of the Companys common stock with a par value of $0.0001 per share. On
February 2, 2007 the Company increased the number of its authorized shares of
common stock to 600,000,000 shares. The Company does not have any preferred
stock authorized.

On February 2, 2007, the Company
effected a six-for-one forward split of its outstanding common stock. All common
share amounts referred to herein are presented on a post-split basis. All
options referred to herein were issued on a post-split basis.

Mynks initial capitalization
consisted of cash of $497,700 in exchange for the issuance of 10,000,000 shares
of Mynk common stock (equivalent to 2,884,612 shares of Panglobal common
stock).

On May 11, 2007, pursuant to a
Share Exchange Agreement dated as of February 15, 2007 (the Share Exchange
Agreement) by and among Panglobal, the shareholders of Mynk Corporation
(Selling Shareholders) and Mynk, Panglobal issued 3,749,995 shares of its
common stock in exchange for all of the issued and outstanding shares of Mynk,
issued 975,000 shares of it common stock in payment of $390,000 of outstanding
loans to Mynk, and agreed to reimburse a shareholder of Mynk up to $100,000 for
outstanding amounts due (the Exchange). Previously, on February 3, 2006, Mynk
had issued 10,000,000 shares of its common stock to its founders for $497,700 in
cash, and 3,000,000 shares of its common stock valued at $149,310, as loan fees
on June 20, 2006, for a total of 13,000,000 shares, which constituted all of the
issued and outstanding shares of Mynk prior to the Exchange. The share exchange
was conducted on the basis of 0.2884615 common shares of Panglobal for every one
common share of Mynk.

|11. | Commitments and
  Contingencies
|--- | -------------------------------

The Company leases a facility in
which the corporate offices are located under a month-to-month lease. No future
minimum fixed annual rent payments are required under the operating lease.
Minimum rent is expensed as incurred. Total rent expense for the year ended
September 30, 2007 was $65,846. There was no rent expense for the period from
February 3, 2006 (Inception) to September 30, 2006.

The Companys executive and
  head office described above is located at 5608 South Soto Street, Huntington
  Park, CA 90255. The Company has also signed a three year lease for a new head
  office measuring 18,200 square feet at a monthly rental of $11,500 and located
  at 2853 E. Pico Blvd., Los Angeles, CA 90023. The lease begins on January 1,
  2008 and the Company plans to move into the new premises in late January 2007.

Commencing October 1, 2007, the
company leased 499 square feet at a monthly rental of $1,122 for three years as
a showroom for our Sosik division at California Market Center, 110 East Ninth
Street, Suite A0823, Los Angeles, CA 90079.

Commencing November 1, 2007, the
Company leased 2,609 square feet at a monthly rental of $9,131 for 5 years as a
showroom for our Nela/Mynk/Tea and Honey divisions at 250 West 39th
Street, New York, New York.

---

- 35 -

Commencing December 1, 2007, the
Company leased 1,337 square feet at a monthly rental of $6,127 for 3 years,
eight months as a showroom for our Sosik division at 530 7th Avenue
27thFloor, New York, New York.

The table below sets forth the Companys lease obligations
through 2012.

|Year ending
      September 30, |   |           | 
|------------------------------- | - | --------- | 
|                                |   |           | 
|2008                            | $ | 306,299   | 
|2009                            | $ | 342,406   | 
|2010                            | $ | 353,528   | 
|2011                            | $ | 222,609   | 
|2012                            | $ | 123,027   | 
|thereafter                      | $ | 10,278    | 
|                                |   |           | 
|                                | $ | 1,358,147 | 

The Company is periodically
subject to various pending and threatened legal actions that arise in the normal
course of business. The Companys management believes that the impact of any
such litigation will not have a material adverse impact on the Companys
financial position or results of operations.

|12. | Income Taxes
|--- | ------------

Potential benefits of income tax losses are not recognized in
the accounts until realization is more likely than not. The Company has adopted
SFAS No. 109 Accounting for Income Taxes as of its inception. Pursuant to SFAS
No. 109 the Company is required to compute tax asset benefits for net operating
losses carried forward. The potential benefits of net operating losses have not
been recognized in these financial statements because the Company cannot be
assured it is more likely than not it will utilize the net operating losses
carried forward in future years.

The Provision for income taxes is composed of the following:

2007
    2006Deferred
      Tax Benefit: Federal
    $1,392,000
    $280,000Deferred Tax
        Benefit: State
    $361,000
    $73,000Total
      Benefit of NOL carryforward
    $1,753,000
    $353,000Valuation
      Allowance
    ($1,753,000)
    ($353,000)Total
      $0
      $0


As of September 30, 2007 unused net operating losses of
approximately $3,966,515 are available to offset future years federal and state
taxable income. SFAS 109 requires that the tax benefit of such NOLs be recorded
using current tax rates as an asset to the extent management assesses the
utilization of such NOLs to be more likely than not. Based upon the Company's
short term historical operating performance, the Company provided a full
valuation allowance against the deferred tax asset.

|13. | Restatement
|--- | -----------

As a result of recording a charge
to operations of $149,310 on June 20, 2006 for the cost associated with the
issuance of 865,383 shares of the Companys common stock for loan fees (see
Notes 9 and 10), the previously issued financial statements of Mynk as of
September 30, 2006, and for the period from February 3, 2006 (Inception) to
September 30, 2006, have been restated.

As a result of the restatement,
for the period from February 3, 2006 (Inception) to September 30, 2006, net loss
increased by $149,310, to $833,236 ($0.26 per share) from $683,926 ($0.21 per
share). Cash flows from

---

- 36 -

operating activities did not change during the period from
February 3, 2006 (Inception) to September 30, 2006. As of September 30, 2006,
there was no change in assets, liabilities or total stockholders deficiency.

|14. | Subsequent Events
|--- | -----------------

Commencing October 1, 2007, the
Company leased 499 square feet for three years as a showroom for our Sosik
division at California Market Center, 110 East Ninth Street, Suite A0823, Los
Angeles, CA 90079.

Commencing November 1, 2007, the
Company leased 2,609 square feet for 5 years as a showroom for our Nela/Mynk/Tea
and Honey divisions at 250 West 39th Street, New York, New York.

Commencing December 1, 2007, the
Company leased 1,337 square feet for 3 years, eight months as a showroom for our
Sosik division at 530 7th Avenue 27thFloor, New York, New
York.

On October 22, 2007, the Company
employed a new Chief Financial Officer. As part of the agreed compensation,
250,000 restricted shares in the common stock of the Company will be transferred
by a third party, will be subject to an escrow agreement and will vest 100,000
shares on June 30, 2008, 75,000 shares on December 31, 2008, and 75,000 shares
on June 30, 2009. In addition the Company agreed to grant 480,000 options to
purchase the Companys common stock at an exercise price of $0.75 per share
vesting equally over 48 months beginning January 1, 2008; and 660,000 Incentive
Stock Options to purchase the Companys common stock at an exercise price of
$0.75 per share vesting 132,000 options on December 1, 2007 and 11,000 options
per month for 48 months commencing January 1, 2008.

|Item 8. | Changes In and Disagreements With
      Accountants on Accounting and Financial **Disclosure.**
|------- | -----------------------------------------------------------------------------------------------

On August 16, 2007, our board of directors approved the
dismissal of Manning Elliott LLP, Chartered Accountants as our independent
accountants and the appointment of Grobstein Horwath & Company LLP,
Certified Public Accountants, as our principal independent accountant. Our board
of directors has taken this step because, as the Company no longer has any links
to Canada, it believes that it is in the best interests of the Company to
replace Manning Elliott LLP with a certifying accountant who is located in the
United States of America. Grobstein Horwath & Company LLP is the current
auditor of our recently acquired subsidiary Mynk, Inc., and has issued its audit
opinion on the September 30, 2006 Mynk financial statements, as well as having
reviewed the December 31, 2006 and March 31, 2007 Mynk interim financial
statements.

Manning Elliott LLPs report dated November 14, 2006 on our
financial statements for the most recent fiscal years ended September 30, 2006
and 2005 did not contain an adverse opinion or disclaimer of opinion, or
qualification or modification as to uncertainty, audit scope, or accounting
principles.

In connection with the audits of our financial statements for
the most recent year ended September 30, 2007 and the period from inception
(February 3, 2006) to September 30, 2006 and in the subsequent interim periods
through the date of resignation, there were no disagreements, resolved or not,
with Manning Elliott LLP on any matters of accounting principles or practices,
financial statement disclosure or auditing scope or procedures, which
disagreements, if not resolved to the satisfaction of Manning Elliott LLP, would
have caused Manning Elliott LLP to make reference to the subject matter of the
disagreement in connection with their report on the financial statements for
such years.

During the years ended September 30, 2007 and 2006, and in the
subsequent interim periods through the date of resignation, there were no
reportable events as described in Item 304(a)(1)(iv)(B) of Regulation S-B.

During the years ended September 30, 2007 and 2006, and the subsequent
  interim periods through the date hereof, we have not, nor has any person on
  our behalf, consulted with Grobstein Horwath & Company LLP regarding either
  the application of accounting principles to a specific completed or contemplated
  transaction, or the type of audit opinion that might be rendered on our financial
  statements, nor has Grobstein Horwath & Company LLP provided to us a written
  report or oral advice regarding such principles or audit opinion on any matter
  that was the subject of a disagreement or reportable event set forth in Item
  304(a)(1)(iv) of Regulation S-B with our former principle independent accountant.



---

- 37 -

Item 8A. Controls and Procedures

As required by Rule 13a-15 under the Securities Exchange Act of
1934, as of the end of the period covered by this annual report, being September
30, 2007, we have carried out an evaluation of the effectiveness of the design
and operation of our companys disclosure controls and procedures. This
evaluation was carried out by our companys principal executive officer and our
companys principal financial officer. Based upon that evaluation, our companys
principal executive officer and our companys principal financial officer
concluded that our companys disclosure controls and procedures were not
effective as at the end of the period covered by this report. Management arrived
at this determination as a result of having identified a stock-based
compensation accounting issue that caused it to restate the financial statements
of Mynk Corporation for the three months ended June 30, 2006, the period from
February 3, 2006 (Inception) to June 30, 2006, and the period from February 3,
2006 (Inception) to September 30, 2006. The Company is addressing this issue by
reviewing and revising its internal accounting policies and procedures,
expanding the resources allocated to its accounting department, and retaining
qualified advisors to assist the Company in addressing technical accounting
issues.

There have been no changes in our internal controls over
financial reporting that occurred during our most recent fiscal quarter that
have materially affected, or are reasonably likely to materially affect our
internal controls over financial reporting.

Disclosure controls and procedures and other procedures that
are designed to ensure that information required to be disclosed in our reports
filed or submitted under the Securities Exchange Act of 1934 is recorded,
processed, summarized and reported, within the time period specified in the
Securities and Exchange Commissions rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed in our reports filed under the
Securities Exchange Act of 1934 is accumulated and communicated to management,
including our chief financial officer and our chief executive officer and our
chief financial officer as appropriate, to allow timely decisions regarding
required disclosure.

Item 8B.Other Information

None.

PART III

|Item 9. | Directors, Executive Officers, Promoters,
      Control Persons and Corporate Governance; Compliance with Section
      16(a) of the Exchange Act.
|------- | --------------------------------------------------------------------------------------------------------------------------------------------------

DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
PERSONS

As at January 14, 2008, our directors and executive officers,
their ages, positions held, and duration of such, are as follows:

Name
    Position Held with the Company
    Age
    Date First Elected or AppointedStephen Soller
    Chief Executive Officer, Secretary, and
      Director
    42
    February 12, 2007Charles A. Lesser
    Chief Financial Officer
    61
    October 22, 2007Jacques
      Ninio
    President and Director
    38
    December 12, 2006




---



- 38 -

Business Experience

The following is a brief account of the education and business
experience of each director and executive officer during at least the past five
years, indicating each persons business experience, principal occupation during
the period, and the name and principal business of the organization by which
they were employed.

Stephen Soller, Chief Executive Officer and director

Mr. Soller received his Bachelor of Arts with a Law Degree at
the Stellenbosch University, South Africa. Mr. Soller has over 15 years
experience in the fashion industry. Mr. Soller was also the owner of Tessuto
Inc. and Bella Vetiti, which are retail/wholesale distributors of fabric
supplies and clothing. Mr. Soller has no previous or other experience as a
director or officer of a public company.

Charles A. Lesser, Chief Financial Officer

Charles Lesser was the Chief Financial Officer of True Religion
Apparel, Inc. (Nasdaq:TRLG) and its wholly-owned subsidiary, Guru Denim Inc.
from 2003 to March of this year and as a consultant toTrue Religion Apparel,
Inc. to September, 2007. Prior to that, Mr. Lesser was Acting President and a
Director of Alpha Virtual Inc., a software development company listed on the
OTCBB and from 1997 until 2002, Mr. Lesser was Chief Financial Officer and a
Director of CBCom, Inc., an internet service provider listed on the OTCBB. Mr.
Lesser holds a B.A. degree from the University of Pittsburgh and a M.B.A. degree
from the University of the Witwatersrand.

Jacques Ninio, President and director

Jacques Ninio is a mechanical engineer specializing in
automotive engineering. Mr. Ninio is also a qualified electrician, and a
building manager. He manages and co-ordinates contractors for all aspects of the
maintenance of an office block. Mr. Ninio has no previous or other experience as
a director or officer of a public company.

Family Relationships

There are no family relationships among our directors or
officers.

Involvement in Certain Legal Proceedings

Our directors, executive officers and control persons have not
been involved in any of the following events during the past five years:

1.     any
bankruptcy petition filed by or against any business of which such person was a
general partner or executive officer either at the time of the bankruptcy or
within two years prior to that time;

2.     any
conviction in a criminal proceeding or being subject to a pending criminal
proceeding (excluding traffic violations and other minor offences);

3.     being
subject to any order, judgment, or decree, not subsequently reversed, suspended
or vacated, of any court of competent jurisdiction, permanently or temporarily
enjoining, barring, suspending or otherwise limiting his involvement in any type
of business, securities or banking activities; or

4.     being found
by a court of competent jurisdiction (in a civil action), the Securities and
Exchange Commission or the Commodity Futures Trading Commission to have violated
a federal or state securities or commodities law, and the judgment has not been
reversed, suspended, or vacated.

Audit Committee Financial Expert

Our board of directors has determined that we do not have a
board member that qualifies as an "audit committee financial expert" as defined
in Item 401(e) of Regulation S-B, nor do we have a board member that qualifies
as "independent" as the term is used in Item 7(d)(3)(iv)(B) of Schedule 14A
under the Securities Exchange Act of 1934, as amended, and as defined by Rule
4200(a)(14) of the FINRA Rules.

---

- 39 -

We believe that our board of directors is capable of analyzing
and evaluating our financial statements and understanding internal controls and
procedures for financial reporting. The board of directors of our company does
not believe that it is necessary to have an audit committee because management
believes that the functions of an audit committee can be adequately performed by
the board of directors. In addition, we believe that retaining an independent
director who would qualify as an "audit committee financial expert" would be
overly costly and burdensome and is not warranted in our circumstances given the
stage of our development and the fact that we have not generated any positive
cash flows from operations to date.

|Item 10. | Executive Compensation.
|-------- | -----------------------

The following table summarizes the compensation of our
executive officers during the two years ended September 30, 2007 and 2006. No
other officers or directors received annual compensation in excess of $100,000
during the last three fiscal years.

SUMMARY COMPENSATION TABLE

Name and
        Principal Position
      Year
      Salary ($)
      Bonus ($)
      Stock Awards ($)
      Option Awards ($)
      Non-Equity Incentive Plan Compensa-tion ($)
      Nonqualified
        Deferred Compensation Earnings ($)
      All Other Compensa-tion ($)
      Total ($)(a)
      (b)
      (c)
      (d)
      (e)
      (f)
      (g)
      (h)
      (i)
      (j)Stephen Soller, 
        Principal 
        Executive 
        Officer(1)
      2007 
        2006
      117,692 
        Nil
      Nil 
        Nil
      810,000 
        Nil
      702,000 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      1,629,692
        
        NilCharles A. 
        Lesser, 
        Principal 
        Financial 
        Officer (2)
      2007 
        2006
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        NilJacques Ninio, 
        President(3)
      2007 
        2006
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        NilFelix R. 
        Wasser, 
        Principal 
        Financial 
        Officer(4)
      2007 
        2006
      107,572 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      97,500 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      205,072 
        NilDavid Long, 
        Chief 
        Executive 
        Officer, 
        President and a 
        Director of 
        Mynk 
        Corporation 
        (5)
      2007 
        2006
      76,823 
        Nil
      Nil 
        Nil
      102,000 
        Nil
      92,000 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      Nil 
        Nil
      270,823 
        NilEdward 
        Margulius, 
        Chief Financial Officer, 
        Secretary, 
        Treasurer and a 
        director(6)
      2007
        2006
      Nil
        Nil
      Nil
        Nil
      Nil
        Nil
      Nil
        Nil
      Nil
        Nil
      Nil
        Nil
      Nil
        Nil
      Nil
        Nil


| | (1) | Stephen Soller was appointed as our Chief Executive
      Officer, Secretary and a director on February 12, 2007.                                          
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | Charles A. Lesser was appointed as our Chief Financial
      Officer on October 22, 2007.                                                                  
| | (3) | Jacques Ninio was appointed as our President, Secretary
      and a director on December 12, 2006. He resigned as our Secretary on
      February 12, 2007.

---

- 40 -

|(4) | Felix R. Wasser was appointed as our Chief Financial
      Officer, Secretary and a director on January 12, 2007. He resigned as our
      Secretary on February 12, 2007. He resigned as our Chief Financial Officer
      on August 21, 2007.                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(5) | David Long was appointed as Mynk Corporations Executive
      Officer, President and a Director on February 3, 2007 and resigned on May
      31, 2007. David Long also received $6,300 from us in 2007 as rental
      payments for the use of a property by Mynk Corporation.
|(6) | Edward Margulius was appointed as Mynk Corporations
      Chief Financial Officer, Secretary, Treasurer and a director on February
      3, 2007 and resigned on May 31, 2007.                                                                                                 



---

- 41 -

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

Options Awards
      Stock AwardsName  Number of
      **Securities****Underlying**
      **Unexercised**
      **Options**(#)
      **Exercisable**
      Number of
      Securities Underlying Unexercised
      Options (#) **Unexercisable**
      Equity Incentive
      Plan Awards: Number of
      Securities **Underlying**
      Unexercised Unearned Options
      (#)
      Option Exercise
      Price ($)
      Option Expiration
      Date
      Numberof
      Shares or Units of
      Stock That Have Not
      Vested (#)
      **Market** Value
      of Shares or Units
      of Stock That Have
      Not Vested ($)
      Equity Incentive
      Plan Awards: Number of
      Unearned Shares, Units or
      Other Rights That Have Not
      Vested (#)
      Equity Incentive
      Plan Awards: Market or Payout
      Value of Unearned Shares, Units
      or Other Rights That Have
      Not Vested ($)(a)
      (b)
      (c)
      (d)
      (e)
      (f)
      (g)
      (h)
      (i)
      (j)Stephen
    300,000
    1,500,000
    Nil
    $0.30
    February 12,
    N/A
    N/A
    N/A
    N/ASoller,
    
    
    
    
    2014PrincipalExecutiveOfficer(1)Charles A.
    0
    0
    0
    Nil
    N/A
    N/A
    N/A
    N/A
    N/ALesser,PrincipalFinancialOfficer (2)Jacques
    0
    0
    0
    Nil
    N/A
    N/A
    N/A
    N/A
    N/ANinio,President(3)Felix R.
    62,500
    187,500
    0
    $0.30
    January 18,
    N/A
    N/A
    N/A
    N/AWasser,
    
    
    
    
    2012PrincipalFinancialOfficer(4)David Long,
    0
    250,000
    0
    $0.45
    February
    N/A
    N/A
    N/A
    N/AChief
    
    
    
    
    12, 2012ExecutiveOfficer,Presidentand aDirector ofMynkCorporation(5)Edward
    0
    0
    0
    N/A
    N/A
    N/A
    N/A
    N/A
    N/AMargulius,ChiefFinancialOfficer,Secretary,Treasurerand adirector(6)






---



- 42 -

|(1) | Stephen Soller was appointed as our Chief Executive
      Officer, Secretary and a director on February 12, 2007.                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Charles A. Lesser was appointed as our Chief Financial
      Officer on October 22, 2007.                                                                                                                                                                                       
|(3) | Jacques Ninio was appointed as our President, Secretary
      and a director on December 12, 2006. He resigned as our Secretary on
      February 12, 2007.                                                                                                                     
|(4) | Felix R. Wasser was appointed as our Chief Financial
      Officer, Secretary and a director on January 12, 2007. He resigned as our
      Secretary on February 12, 2007. He resigned as our Chief Financial Officer
      on August 21, 2007.                                 
|(5) | David Long was appointed as Mynk Corporations Executive
      Officer, President and a Director on February 3, 2007 and resigned on May
      31, 2007. David Long also received $6,300 from us in 2007 as rental
      payments for the use of a property by Mynk Corporation.
|(6) | Edward Margulius was appointed as Mynk Corporations
      Chief Financial Officer, Secretary, Treasurer and a director on February
      3, 2007 and resigned on May 31, 2007.                                                                                                 

DIRECTOR COMPENSATION

Employment/Consulting Agreements

We have not entered into any employment agreement or consulting
agreements with our directors and executive officers. There are no arrangements
or plans in which we provide pension, retirement or similar benefits for
directors or executive officers. Our directors and executive officers may
receive stock options at the discretion of our board of directors in the future.
We do not have any material bonus or profit sharing plans pursuant to which cash
or non-cash compensation is or may be paid to our directors or executive
officers, except that stock options may be granted at the discretion of our
board of directors.

We have no plans or arrangements in respect of remuneration
received or that may be received by our executive officers to compensate such
officers in the event of termination of employment (as a result of resignation,
retirement, change of control) or a change of responsibilities following a
change of control, where the value of such compensation exceeds $60,000 per
executive officer.

Long-Term Incentive Plans

There are no arrangements or plans in which we provide pension,
retirement or similar benefits for directors or executive officers, except that
our directors and executive officers may receive stock options at the discretion
of our board of directors and in accordance with our stock option plan, which
was adopted by our board of directors on January 16, 2007.

Director Compensation

We reimburse our directors for expenses incurred in connection
with attending board meetings. We did not pay any other directors fees or other
cash compensation for services rendered as a director for the fiscal year ended
September 30, 2007.

We have no formal plan for compensating our directors for their
service in their capacity as directors, although such directors are expected in
the future to receive stock options to purchase common shares as awarded by our
board of directors or (as to future stock options) a compensation committee
which may be established. Directors are entitled to reimbursement for reasonable
travel and other out-of-pocket expenses incurred in connection with attendance
at meetings of our board of directors. Our board of directors may award special
remuneration to any director undertaking any special services on our behalf
other than services ordinarily required of a director. No director received
and/or accrued any compensation for their services as a director, including
committee participation and/or special assignments.

Report on Executive Compensation

Our compensation program for our executive officers is
administered and reviewed by our board of directors. We intend to determine
executive compensation based on a combination of base salary, equity
compensation and bonuses.

---

- 43 -

Base Salary

We provide base salaries in order to retain executives, with
the intention of being consistent with our business plan and attempting to
achieve our financial and strategic goals. We compensate officers and other key
employees within salary ranges that are generally based on similar positions in
companies of comparable size and complexity to that of our company, based on
information gathered by members of our board of directors. The annual
compensation for each officer is based on our companys performance and
individual performance. The performance markers considered may include but are
not limited to the growth of our companys market capitalization and completion
of strategic initiatives as determined by our board of directors. Our board of
directors also takes into account prevailing general economic conditions,
marketplace trends, and other relevant factors, including the fact that our
company does not offer a defined benefit retirement or other similar plans and
perquisites to its senior management employees.

Base salaries are established upon the commencement of
employment with our company and are adjusted from time to time by our board of
directors.

Equity Compensation

We may grant amounts of stock options that are approved by our
board of directors. We believe that this may provide long-term incentive
compensation to its senior management. In determining the size of the awards,
our board of directors will consider the companys growth in market
capitalization, individual performance, salary level and length of service to
the company into account. Our board of directors believes that employee
ownership of our stock may encourage executives and key employees to continue
their employment with our company. We also may use stock options because our
board of directors believes that equity compensation in this form aligns the
interests of stockholders with senior management to ensure the Companys
long-term success.

Discretionary Bonus

We may pay discretionary bonuses that are approved by our board
of directors. We intend to base any discretionary bonuses to be awarded to
senior management primarily upon the financial and strategic performance of our
company or, as the case may be, on the performance of the operating units for
which the individual in question is directly responsible. To determine the
amount of a particular bonus, our board of directors will consider several
factors, including individual performance, company performance, achievement of
strategic goals and other facets of individual and company achievements and
other strategic and financial goals.

|Item 11. | Security Ownership of Certain Beneficial
      Owners and Management and Related Stockholder Matters.
|-------- | -----------------------------------------------------------------------------------------------------

The following table sets forth certain information concerning
the number of shares of our common stock known by us to be owned beneficially as
of January 14, 2008 by: (i) each person (including any group) that owns more
than 5% of any class of the voting securities of our company; (ii) each director
and officer of our company; and (iii) directors and officers as a group. Unless
otherwise indicated, the stockholders listed possess sole voting and investment
power with respect to the shares shown.

Name and
      Address of Beneficial Owner(1)
    Title of Class
    Amount and Nature of Beneficial Owner
    Percent of Class(1)(2)Jacques Ninio, President and Director 104/107 Walker
      Street North Sydney, NSW 2060 Australia
      Common Stock
      3,000,000
      10.1%Charles A. Lesser, Chief Financial Officer, 911 Linda
      Flora Drive Los Angeles, CA 90049
      Common Stock
      395,000
      1.3%




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|Stephen Soller, Chief Executive Officer and
      Director 5608 South Soto Street, Suite 102, Huntington Park,
      CA 90255 | Common Stock | 3,210,896 | 10.6%
|----------------------------------------------------------------------------------------------------------------------------- | ------------ | --------- | -----
|Directors and Officers (as a group; five individuals)                                                                         | Common Stock | 6,605,896 | 21.7%

(1)Regulation S-B under the Exchange Act, defines a
beneficial owner of a security as any person who, directly or indirectly,
through any contract, arrangement, understanding, relationship, or otherwise,
has or shares: (i) voting power, which includes the power to vote, or to direct
the voting of shares; and (ii) investment power, which includes the power to
dispose or direct the disposition of shares. Certain shares may be deemed to be
beneficially owned by more than one person (if, for example, persons share the
power to vote or the power to dispose of the shares). In addition, shares are
deemed to be beneficially owned by a person if the person has the right to
acquire the shares (for example, upon exercise of an option) within 60 days of
the date as of which the information is provided. In computing the percentage
ownership of any person, the amount of shares outstanding is deemed to include
the amount of shares beneficially owned by such person (and only such person) by
reason of these acquisition rights.

As a result, the percentage of outstanding shares of any person
as shown in this table does not necessarily reflect the persons actual
ownership or voting power with respect to the number of shares of common stock
actually outstanding on May 15, 2007.

(2) Based upon 29,603,530 issued and outstanding shares of
common stock as of January 14, 2008.

(3) Charles Lesser holds 200,000 shares of common stock and has
the right to exercise 132,000 Incentive stock options at an exercise price of
$0.75 per share on December 1, 2007, 11,000 Incentive Stock Options on January
1, February 1, and March 1, 2008. In addition, Mr. Lesser has the right to
exercise 10,000 shares of non-qualified stock options at an exercise price of
$0.75 on January 1, February 1 and March 1, 2008.

(4) Stephen Soller holds 2,610,896 shares of common stock has
the right to exercise 300,000 stock options at an exercise price of $0.30 per
share on August 12, 2007 and 300,000 stock options at an exercise price of $0.75
per share on February 12, 2008.

Cancellation of Shares, Cancelled Debt

On August 21, 2007 Felix Wasser resigned as Chief Financial
Officer. Mr. Wasser had previously been granted 250,000 stock options, which
have subsequently been cancelled. On October 31, 2007 David Long, formerly
President and Chief Executive of Mynk, Inc. resigned from Mynk, Inc. Mr. Long
had previously been granted 250,000 stock options which have been cancelled.
Additionally, Mr. Long had been granted 100,000 of restricted stock which had
not vested at the time of his separation. The Company agreed to grant Mr. Long
20,000 shares as part of his separation.

Future Changes in Control

We are unaware of any contract or other arrangement, the operation
  of which may, at a subsequent date, result in a change in control of our company.

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- 45 -

|Item 12. | Certain Relationships and Related
      Transactions, and Director Independence.
|-------- | --------------------------------------------------------------------------------

During our last fiscal year and except as disclosed below, none
of the following persons has had any direct or indirect material interest in any
transaction worth more than $120,000 to which our company was or is a party, or
in any proposed transaction to which our company proposes to be a party:

|(a) | any director or officer of our company;                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                          
|(b) | any proposed director of officer of our
company;                                                                                                         
|    |                                                                                                                                                          
|(c) | any person who beneficially owns, directly or indirectly,
      shares carrying more than 5% of the voting rights attached to our common
      stock; or,
|    |                                                                                                                                                          
|(d) | any member of the immediate family of any of the
      foregoing persons (including a spouse, parents, children, siblings, and
      in-laws).           

Board Meetings and Committees, Director Independence

The board of directors of our company held no formal meetings
during the year ended September 30, 2007. All proceedings of the board of
directors were conducted by resolutions consented to in writing by all the
directors and filed with the minutes of the proceedings of the directors. Such
resolutions consented to in writing by the directors entitled to vote on that
resolution at a meeting of the directors are, according to Delaware Corporate
Law and our By-laws, as valid and effective as if they had been passed at a
meeting of the directors duly called and held.

We currently do not have standing nominating or compensation
committees, or committees performing similar functions. The board believes that
it is not necessary to have a standing compensation or nominating committees at
this time because the functions of such committees are adequately performed by
the entire board.

The directors on the board, who perform the functions of audit,
nominating or compensation committees, are not independent because they are also
officers of our company. The determination of independence of directors has been
made using the definition of independent director contained under Rule
4200(a)(15) of the Rules of National Association of Securities Dealers.

Audit Committee

Currently our audit committee consists of our board of
directors. We currently do not have nominating, compensation committees or
committees performing similar functions. There has not been any defined policy
or procedure requirements for shareholders to submit recommendations or
nominations for directors.

Our audit committee currently does not have an audit committee
financial expert" as defined in Item 401(e) of Regulation S-B, and is
"independent" as the term is used in Item 7(d)(3)(iv) of Schedule 14A under the
Securities Exchange Act of 1934, as amended. We believe that retaining an
independent director who would qualify as an "audit committee financial expert"
would be overly costly and burdensome and is not warranted in our circumstances
given the early stages of our development and the fact that we have not
generated any material revenues to date.

For the year ended September 30, 2007, there were no meetings
held by the audit committee. The business of the audit committee was conducted
by resolutions consented to in writing by all the members and filed with the
minutes of the proceedings of the audit committee.

Director Independence

Our common stock is quoted on the OTC Bulletin Board
interdealer quotation system, which does not have director independence
requirements. Under NASDAQ Rule 4200(a)(15), a director is not considered to be
independent if he or she is also an executive officer or employee of the
corporation.

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- 46 -

We have two (2) directors: Stephen Soller and Jacques Ninio.
Neither of our directors are independent directors.

As a result of our limited operating history and limited
resources, our management believes that we will have some difficulty in
attracting independent directors. In addition, we would likely be required to
increase our directors and officers insurance coverage in order to attract and
retain independent directors.

Other Committees of the Board

We do not have a separate compensation committee or nomination
committee at this time.

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- 47 -

|Item 13. | Exhibits.
|-------- | ---------

| | Exhibit                                               |                                                                                                                                                                                                                    
| | ----------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Number                                                | Description                                                                                                                                                                                                        
| |                                                       |                                                                                                                                                                                                                    
| | Exhibits required by Item 601 of Regulation
      S-B
| | Exhibit                                               | Description                                                                                                                                                                                                        
| | Number                                                |                                                                                                                                                                                                                    
| | (3)                                                   |                                                                                                                                                                                                                    
| |                                                       | Articles of Incorporation and Bylaws                                                                                                                                                                               
| |                                                       |                                                                                                                                                                                                                    
| | 3.1                                                   | Articles of Incorporation of Panglobal Brands
      Inc. (formerly EZ English Online) (incorporated by reference as Exhibit
      Number 3.1 of our Form SB-2 filed January 3, 2006).                              
| |                                                       |                                                                                                                                                                                                                    
| | 3.2                                                   | Bylaws of Panglobal Brands Inc. (formerly EZ
      English Online) (incorporated by reference as Exhibit Number 3.2 of our
      Form SB-2 filed January 3, 2006).                                                 
| |                                                       |                                                                                                                                                                                                                    
| | 3.3                                                   | Articles of Incorporation of Mynk Corp. (incorporated
      by reference as Exhibit Number 3.1 of our Form SB- 2 filed February 3, 2006).                                                                          
| |                                                       |                                                                                                                                                                                                                    
| | 3.4                                                   | Bylaws of Mynk Corp. (incorporated by reference
      as Exhibit Number 3.2 of our Form SB-2 filed February 3, 2006).                                                                                              
| |                                                       |                                                                                                                                                                                                                    
| | 3.5                                                   | Certificate of Amendment (incorporated by reference
      from our Current Report on Form 8-K filed on February 6, 2007).                                                                                          
| |                                                       |                                                                                                                                                                                                                    
| | 3.6                                                   | Certificate of Ownership (incorporated by reference
      from our Current Report on Form 8-K filed on February 6, 2007).                                                                                          
| |                                                       |                                                                                                                                                                                                                    
| | **(10)**                                              | Material Contracts                                                                                                                                                                                                 
| |                                                       |                                                                                                                                                                                                                    
| | 10.1                                                  | PayPal User Agreement (incorporated by reference
      as Exhibit Number 10.1 of our Form SB-2 filed February 3, 2006).                                                                                            
| |                                                       |                                                                                                                                                                                                                    
| | 10.2                                                  | Affiliated Stock Purchase Agreement dated December
      12, 2006 (incorporated by reference from our Current Report on Form 8-K
      filed on December 13, 2006).                                                
| |                                                       |                                                                                                                                                                                                                    
| | 10.3                                                  | Share Exchange Agreement between Panglobal
      Brands Inc. and Mynk Corporation, dated February 15, 2007 (incorporated
      by reference from our Current Report on Form 8- K filed on February 20,
      2007).
| |                                                       |                                                                                                                                                                                                                    
| | 10.4                                                  | Consulting Agreement between our company, Lolly
      Factory, LLC and Mark Cywinski dated September 16, 2007 (incorporated by
      reference as Exhibit Number 10.1 of our Form 8-K filed September 27, 2006).   
| |                                                       |                                                                                                                                                                                                                    
| | 10.5                                                  | Lease Agreement with RFS Investments LLC, dated
      January 11, 2007 (incorporated by reference from our Current Report on Form
      8-K filed on February 20, 2007).                                           
| |                                                       |                                                                                                                                                                                                                    
| | 10.6                                                  | Lease Agreement
      with YMI Jeanswear                                                                                                                                                                           
| |                                                       |                                                                                                                                                                                                                    
| | 10.7                                                  | Lease Agreement
      with Jamison California Market Center, L.P.                                                                                                                                                  
| |                                                       |                                                                                                                                                                                                                    
| | 10.8                                                  | Lease Agreement
      with Steven Goldstein                                                                                                                                                                        

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- 48 -

| | 10.9             | Lease Agreement
      with TR 39th St. Land Corp.    
| | ---------------- | -----------------------------------------------------
| |                  |                                                      
| | (31)             | **Section 302 Certifications**                       
| |                  |                                                      
| | 31.1*            | Certification
      under Sarbanes-Oxley Act of 2002.
| |                  |                                                      
| | 31.2*            | Certification
      under Sarbanes-Oxley Act of 2002.
| |                  |                                                      
| | (32)             | **Section 906 Certifications**                       
| |                  |                                                      
| | 32.1*            | Certification
      under Sarbanes-Oxley Act of 2002.
| |                  |                                                      
| | 32.2*            | Certification
      under Sarbanes-Oxley Act of 2002.
| |                  |                                                      
| | * filed herewith



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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

Panglobal Brands Inc.

By: /s/ Stephen Soller
  (Principal Executive Officer )
  Dated: January 14, 2008

Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.

By: /s/ Stephen Soller
  Chief Executive Officer Director
  (Principal Executive Officer)
  Dated: January 14, 2008

By: /s/ Charles A. Lesser
  (Principal Accounting Officer
  Dated: January 14, 2008

---