UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.  20549 FORM 10-KSB  þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal Year Ended December 31, 2006 or  ̈ TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to___________ Commission File No. 0-30330 GLOBAL PRECISION MEDICAL INC. (Exact name of small business issuer in its charter)  WYOMING98-0418148(State or other jurisdiction of
incorporation or organization)(I.R.S. Employer Identification No.)#536  1489 Marine Drive, W. Vancouver, BC, Canada V7T 1B8(Address of principal executive offices) (Zip Code)Issuers telephone number:  604-926-2939Securities registered under Section 12(b) of the Exchange Act: NoneSecurities registered under Section 12(g) of the Exchange Act:  Common Stock, No Par Value  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 S    No £    Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B is not 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 the Form 10-KSB or any amendment to this Form 10-KSB. £  Registrants revenues for its most recent fiscal year $0  Aggregate market value of the 2,316,873 shares of Common Stock held by non-affiliates of the Issuer as of December 31, 2006, was $115,844. The number of shares of the Issuers Common Stock, no par value, as of December 31, 2006 was 11,553,075.  Transitional Small Business Disclosure Format    Yes £   No S  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  S       No  £     INDEX PART IPageItem 1.Description of Business1Item 2.Description of Property5Item 3.Legal Proceedings5Item 4.Submission of Matters to a Vote of Security Holders5PART IIItem 5.Market for Common Equity and Related Stockholder Matters5Item 6.Managements Discussion and Analysis or Plan of Operations6Item 7.Financial Statements11Item 8
Item 8AChanges in and Disagreements with Accountants on Accounting and Financial Disclosure
Controls and Procedures32
32Item 8BOther Information32PART IIIItem 9.Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act32Item 10.Executive Compensation33Item 11.Security Ownership of Certain Beneficial Owners and Management36Item 12.Certain Relationships and Related Transactions38Item 13.Exhibits and Reports on Form 8-K39Item 14.Principal Accountant Fees and Services42SIGNATURES43  DEFINITIONS  BPHBenign Prostate Hyperplasia  a non-cancerous enlargement of the prostate, which compresses the urethra as it grows thereby restricting the flow of urine  a primary cause of urinary voiding dysfunction in menCE Mark"Conformité Europeene" - manufacturers of In VitroMedical Devices who export their products to European Union (EU) countries are responsible for meeting the requirements of the In Vitro Diagnostic Medical Devices Directive (IVD) 98/79/EC. The marking indicates that the manufacturer has conformed with all the obligations required by the legislationFDAFederal Food and Drug Administration (United States)GMSGlobal Medical Sciences Ltd., the owner and licensor of the NiTi wire material and the medical device technology known as the URO-StentIMETInstitute of Metallurgy and Material Sciences in Moscow - the largest contributor in its field in the Sputnik program, the Russian Military and the current Space StationIPIntellectual Property  the legal right giving unfettered use of the deviceMDMIa British Columbia-based private company that has extensive experience in device design, manufacturing, distribution and operational systems to implement regulatory processes including Health Canada and the FDAMITMinimal Invasive Technology Ltd, a Russian manufacturer of various medical devices, it  holds the proprietary rights to the catheter (delivery system), used during the clinical trials for the insertion of the URO-StentNiTiNickel-Titanium  memory metal - an alloy that has the ability to change form and shape when subjected to temperature change.RestenosisThe proliferation of cells, caused by an inflammatory response to a foreign bodyStentA medical device that acts as a scaffold to hold open pathways in the bodyTURPTraditional transurethral resection of the prostateURO-StentA patentable proprietary nitinol Prostatic Stent used for the prevention of lumen restriction associated with benign prostate hyperplasia  i     FORWARD LOOKING STATEMENT  This Annual Report on Form 10-KSB includes forward-looking information. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including without limitation, those concerning: the economic outlook for the medical device industry. Global Precision Medical Inc. is referred to herein as "we,"  "our," the Company, Global or GPM.  These forward-looking statements are not based on historical facts, but rather reflect the Companys current expectations concerning future results and events and generally may be identified by the use of forward-looking words or phrases such as believe, aim, expect, anticipate, intend, foresee, forecast, likely, should, planned, may, estimated, potential or other similar words and phrases. Similarly, statements that describe the Companys objectives, plans or goals are or may be forward-looking statements.  These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Companys actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by these forward-looking statements. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.  ii      PART I  ITEM 1. DESCRIPTION OF BUSINESS  General Description  Business Development  The Company was incorporated under the laws of the Province of British Columbia on August 24, 1990, under the name San Antonios Resources Inc.  On October 15, 2001, the San Antonios Resources Inc. consolidated its share capital on the basis of six pre-consolidation Common Shares for one post-consolidation Common Share. On September 23, 2002, San Antonios Resources Inc. changed its name to Global Precision Medical Inc. (the Company) and undertook a material change in its business focus away from mining exploration and into the medical device industry. The principal business of the Company consequently ceased to be mineral exploration.  On February 5, 2003, the Company was continued from British Columbia, under provisions of the Company Act (British Columbia), into the State of Wyoming, pursuant to Section 17-16-1503 of the 1989 Wyoming Business Corporation Act.  Business of the Company  From 1996 to September 23, 2002, the Company was an exploration stage company engaged in the acquisition and exploration of mineral properties in Nevada. It has never had any earnings from mining and no commercially viable mineral deposits were identified on any of its properties.  Its last remaining mineral interests were relinquished without further obligation in August 2002.  On September 23, 2002, the Company changed direction and entered into an exclusive worldwide Technology Licence Agreement with Global Medical Sciences Ltd. to commercialize and further develop the medical device technology known as the URO-Stent (the Licence).  The URO-Stent was designed to be used for the prevention of lumen restriction associated with BPH.  BPH is a non-cancerous enlargement of the prostate, which constricts the urethra as it grows, thereby restricting the flow of urine  a common cause of urinary voiding dysfunction in men. The URO-Stent was developed by a team of scientists, clinicians and medical specialists in Moscow.  The Company entered into a Consortium Letter of Understanding August 1, 2003, with Global Medical Sciences Limited (Barbados), MDMI Technologies Inc. (Vancouver, Canada) and Minimal Invasive Technology Ltd (Moscow, Russia).  The Consortium brought together four groups with complementary expertise and resources as follows.  Global Precision Medical Inc. (GPM"):   GPM was to coordinate and finance the activities of the Consortium, provide the publicly traded vehicle through which investors can participate, and serve as the sales and marketing platform for stents and future medical devices introduced to it by other Consortium members;  Global Medical Sciences Limited (GMS"):   GMS represented to be the owner and licensor of the wire material and the stent technology. It had a team of expert materials scientists. The scientists worked in conjunction with IMET. In 2004 GMS lost its rights to the URO-Stent to Glenfield Partners Limited and transferred their share ownership in GPM to Glenfield Partners.  As a result of this the scientists at IMET declined to work with GPM.  GMS withdrew from GPM.  This series of events prevented GMP from proceeding with its program.  It had lost access to the intellectual property of the material to manufacture the URO-Stent, the fabrication process of the Uro-Stent and the ability to make improvements in the device that were deemed necessary to have commercial application.  1      Minimal Invasive Technology Ltd (MIT):   MIT is a Russian manufacturer of various medical devices and holds proprietary rights to the catheter (delivery system), used for the insertion of the URO-Stent.  With the assistance of MDMI, the Company was to enter into a Licencing Agreement with MIT for the catheter delivery system  for inserting the URO-Stent.  Due to GPM losing the support of IMET a Licencing Agreement was not pursued with MIT.  MDMI Technologies (MDMI):   MDMI, a British Columbia-based private company, with industry experience in device design, manufacturing, and regulatory processes was to evaluate the technology presented to GPM, advise and assist in engineering feedback to the scientists in Russia, and to formulate the pathway to regulatory approval and assist GPM executives to commercialize and market the URO-Stent.  This alliance was discontinued in light of the loss of support from IMET.  On December 2, 2003, the Company entered into an agreement to acquire the Licence from MDMI to apply their proprietary Thermal Ablation Technology to augment the Companys URO-Stent in the treatment of BPH.  Under a Research and Development agreement dated December 2003 (the R&D Agreement), MDMI was to provide Research and Development (R&D) services to investigate whether or not the thermal ablation process currently used to treat menorrhea in women is transferable totreating the prostate in men suffering enlarged prostates and that the procedure could be used effectively in conjunction with the URO-Stent.  The R&D Agreement provided for MDMI engineers and researchers to take the Thermablate Technology through to animal trials.  The Company retained MDMI to provide a broad range of regulatory, clinical and engineering services on a cost-plus basis together with the issuance of up to 1,000,000 common shares of the Company (of which 500,000 common shares were issued in February 2004 with a non-dilution provision of ten percent ownership).  To proceed, the Company was committed to fund an initial budget of $500,000.  Furthermore, under the terms of the R&D Agreement, the Company was to pay MDMI a royalty fee not to exceed 2.5% of established selling prices of any devices and/or technology development under said agreement.  On September 30, 2004, Management reviewed the status of the Stent program and, in light of the break-down in relations with IMET and the subsequent difficulties in raising funds for development and the uncertainty as to the recoverability of the carrying value of the License and Patents, decided to write off the remaining carrying value in accordance with Statement of Financial Accounting Standards (SFAS) No. 144 Impairment of Long-Lived Assets.   The alliance with MDMI and the December 2003  R&D Agreement  with respect to MDMIs Thermal Ablation process was discontinued in light of the loss of support from IMET and the inability to proceed with the URO-Stent.  Status of any Publicly Announced New Product or Service  None.  Competitive Business Conditions and the Companys Competitive Position in the Industry and Methods of Competition  The Company faced competition from several established products and a number of treatment regimes, including pharma-therapy and prostate resection surgery, that are widely accepted as the gold standard for treatment of the debilitating condition of BPH.  In the broader biotechnology industry, there are a large number of well-established companies that have significantly greater financial resources, stronger name recognition, larger development staffs and more extensive marketing and distribution capabilities than GPM.   2     Sources and Availability of Raw Materials and Names of Principal Suppliers  The principal raw material for the device is currently manufactured in Russia at the government funded IMET facilities. The cost of the wire as a component of the final finished, braided, sterilized, packaged and labeled product is less than 20%, however it is a critical and necessary component of the URO-Stent and, as such the unavailability of the wire and the braided product to GPM has caused the program to stop.  Dependence on One or a Few Major Customers  Under the marketing plan, sales were to be dependent on one or a few major customers.  The device was to be presented at national and international conferences to inform and influence medical specialists and opinion leaders in the field of Urology.   On a country-by-country basis selected professional bodies governing Urology in each jurisdiction were to be approached to work with the Company to introduce the device as an alternative procedure to current, more expensive and more invasive procedures.  Trademarks, Licenses, Franchises, Concessions, Royalty Agreements or Labor Contracts, including duration  Patents  The Company was dependent on patent protection and, in the early stages of development and production it is dependent on various strategic alliances: Russian National Academy of Science, Department of Urology Moscow Medical Semashko Institute, Department of Materials and Metals Engineering, the A.A Baikov Institute of Metallurgy and Materials Technology of Russian Academy of Science and MDMI in British Columbia. Maintaining a satisfactory working relationship with these groups was essential to acquiring the NiTi wire to manufacture the URO-Stent. The relationship with IMET (A.A Baikov Institute of Metallurgy and Materials Technology of Russian Academy of Science) was terminated unilaterally by them, thereby effectively terminating the project.  In 2004 GMS, the licensor of the URO-Stent technology lost its rights to the URO-Stent to Glenfield Partners Limited and transferred their share ownership in GPM to Glenfield Partners.  As a result of this the scientists at IMET declined to work with GPM with its new ownership structure.  GMS also withdrew from GPM as it no longer had a financial or technical interest in GPM.  This series of events prevented GMP from proceeding with its program.  It had lost access to the intellectual property of the material to manufacture the URO-Stent, the fabrication process of the Uro-Stent and the ability to make improvements in the device that were deemed necessary to have commercial application. Without these alliances and critical input from these institutions, the Company determined that it was unable to proceed with the project.  The URO-Stent had IP protection in that it had been granted a patent by the Patent Office of Russia and was the subject of a pending application under the international Patent Cooperation Treaty.  Further work ceased when it became apparent that practical alternative alliances could not be found to replace the alliances that the Company was dependent on in Russia.  During the year ended December 31, 2004, the Company incurred $15,000 in legal and consulting fees to file patents of the Stent technology in the United States, Japan and Russia.   3     Licences  On September 23, 2002 the Company entered into an exclusive worldwide Technology Licence Agreement with Global Medical Sciences Ltd. (GMS) to commercialize and further develop the medical device technology known as the URO-Stent (the Licence).  The Licence was granted in consideration of the issuance of 4,030,079 restricted Common Shares of the Company with a deemed value of $4 million.  For financial accounting purposes, these shares have been recorded at a value of $2.1 million based on an average share price of the Company two days before and after the acquisition of the Licence.  In September 2004, Management reviewed the status of the URO-Stent program and, in light of the difficulties in raising funds for development and the uncertainty as to the recoverability of the carrying value of the License and patents, decided to write off the remaining carrying value of $2,112,182 in accordance with Statement of Financial Accounting Standards (SFAS) No. 144 Impairment of Long-Lived Assets.  The R&D Agreement between the Company and MDMI to acquire an exclusive worldwide licence from MDMI (Thermablate Licence) in order to apply their patented Thermal Ablation Technology to augment the Companys URO-Stent in the treatment of BPH expired November 30, 2004, without further renewal.  Need for any Governmental Approval of Principal Products or Services  In association with materials research scientists, medical specialists, medical device engineers and medical regulatory advisors the Company made an application to the Russian Ministry of Health to seek approval for mass production and sale of the URO-Stent in Russia. Approval was received on October 23, 2003.  Effect of Existing or Probable Governmental Regulations on the Business  Regulatory approval of the safety, efficacy and production certification is a prerequisite of all of the markets where the Company intends to market the URO-Stent. Government regulations on the business are a critical element in the success or failure of the Company.  The Companys strategic partner MDMI, which has had extensive experience in medical device design, human clinical trials and regulatory approvals, was to develop protocols for clinical trials and the approval applications process for use and sale of the URO-Stent in the important medical device markets.  The amount spent on research and development activities for the fiscal year ended December 31, 2006 was $nil (2005  $nil).  There were no customers as production of the device for sale was not achieved.  There is no requirement for compliance with any environmental laws (federal, state, province and local).  Sarbanes-Oxley Disclosure Controls Procedures  Section 404 of the Sarbanes-Oxley Act of 2002, as implemented by the Securities and Exchange Commission (SEC) requires new internal controls and procedures for reporting companies. The Company is considered a non-accelerated filer by the SEC; the compliance date for non-accelerated filers, at this time, is December 15, 2007, there is a possibility that the compliance date may be delayed further.  Employees  The Company currently has no employees, full-time or otherwise.   4     ITEM 2. DESCRIPTION OF PROPERTY  The Company has no significant material assets in the way of plants or property.  The Chief Executive Officer supplies office space and equipment to the Company under a consulting agreement.Our head office is located at #536  1489 Marine Drive, West Vancouver, British Columbia, Canada V7T 1B8, on a month-to-month rental arrangement with the spouse of our Chief Executive Officer.  ITEM 3. LEGAL PROCEEDINGS  The Company is not involved in any material pending litigation, nor are we aware of any material pending or contemplated proceedings against the Company.  Other than what is disclosed in the below paragraph, we know of no material legal proceedings pending or threatened, or judgments entered against, any of our directors or officers in their capacity as such.  During the year ended December 31, 2006, legal proceedings were commenced in British Columbia against the Company and one of its directors in June 2006 relating to matters which the director claimed were not a liability to the Company.  In the course of those proceedings certain orders were made by default providing for judgment against the Company and the director and certain garnishment proceedings were taken.  The Company and the director, in the course of efforts to set aside the orders, successfully negotiated a settlement with the claimant on January 3, 2007 whereby the claimant released the Company from any and all claims.  No amounts have been accrued or charged to operations of the Company for the year ended December 31, 2006 as a result of these matters.  ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS  No matters were submitted to a vote of the security holders of the Company during the quarter ended December 31, 2006.  The Company has not set a date for the annual meeting to be held in 2006.  PART II  ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS  Market Information  The Common Shares of the Company were quoted on the NASDs OTC Bulletin Board under the symbol GBPMF until March 24, 2004, when the symbol was changed to GBPM to reflect that the Company continued out of British Columbia and became a Wyoming Corporation. On November 17, 2004, the symbol was changed to GBPME to reflect that the Company was late with its required filings with the U.S. Securities & Exchange Commission. The Companys Common Shares are not listed on any exchange.  The following table sets forth the high and low bid prices for the Companys Common Shares as reported by the OTC Bulletin Board and National Association of Securities Dealers Pink Sheets, LLC, reported on a fiscal quarter basis for the two most recent fiscal years ending December 31, 2006:  Year Ended December 31, 2006Year Ended December 31, 2005Quarter Ended($) High($) Low($) High($) LowMarch 310.050.020.050.05June 300.020.020.070.07September 300.040.020.070.05December 310.040.020.050.05  The quotations reflect inter-dealer prices, without retail markups, markdowns, or commissions and do not necessarily represent actual transactions.  5     Holders  As of December 31, 2006, there were approximately 38 holders of record of the Companys Common Stock.  Dividends  While there currently are no restrictions prohibiting the Company from paying dividends to its shareholders, the Company has not paid any cash dividends on its Common Stock in the past and does not anticipate paying any dividends in the foreseeable future.  Earnings, if any, are expected to be retained to fund future operations of the Company.  There can be no assurance that the Company will pay dividends at any time in the future.  Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities  None   ITEM 6. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION  The Company has not had any revenues from operations in each of the last two fiscal years.  Plan of Operation  Managements plan for the next twelve months calls for the Company to seek other business opportunities other than the URO-Stent.  This is the result of losing the support of the Russian suppliers of material and intellectual property and the inability to finance the research required by other materials experts to produce materials with the properties necessary for the URO-Stent.  (i) It is expected that US$15,000 per month will cover telephones, regulatory administration help and the minimal staffing required to maintain the Company while other business opportunities are researched and identified.  (ii) There are no anticipated needs for the purchase of plant or equipment over the next 12 months.  (iii) The Company has no employees currently, as work is contracted out to consultants.  At December 31, 2006, the Company has not yet generated revenue to date, has a working capital deficiency of $151,624 (December 31, 2005 - $121,975) and has an accumulated deficit as at December 31, 2006 of $5,138,268 (December 31, 2005 - $5,108,619). These conditions raise substantial doubt about the Company's ability to continue as a going concern.  Accordingly, our independent auditors included an explanatory paragraph in their report on the December 31, 2006 consolidated financial statements regarding concerns about our ability to continue as a going concern. Our consolidated financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors.  Liquidity & Capital Resources  Management has made a concerted effort to reduce expenditures to a minimum.  As such, the Company is not adequately funded to continue the development work required to bring the URO-Stent to commercial production. The Company has no contractual obligations relating to the research and development of the URO-Stent. The Company must get continued interest from investors and support from its stockholders to carry out its operating objectives.  6      During the year, the Company received a stockholder advance of $8,719, with no specified terms of repayment to fund working capital requirements of the Company.  At December 31, 2006, receivables decreased 2,715 to $5,134 compared to $7,849 at December 31, 2005 as a result of collected goods and services tax receivable. At December 31, 2006, the Companys accounts payable and accrued liabilities increased $16,067 to $52,602 compared to $36,535 at December 31, 2005 as a result of an accounting accrual for interim review and annual audit of the financial statements offset on slightly by a stockholder advancing $8,719 to fund working capital requirements.  At December 31, 2006, the Company had a bank indebtedness of $74, a decrease of $537 from the balance as at December 31, 2005. The decline in cash balance is largely due to twelve monthly bank charges and working capital requirements. The cash balance at December 31, 2006 is not sufficient for continued operations without further cash advances from the Companys stockholders.  Management expects that $15,000 per month will cover the working capital costs of the Company. The Company is seeking other business opportunities and financing arrangements to maintain operations and believes that when its cease trade order is lifted, equity issuance will be the primary source of capital. Until such time, the Company will be dependent on internal funding by its stockholders.  During the year ended December 31, 2006, legal proceedings were commenced in British Columbia against the Company and one of its directors in June 2006 relating to matters which the director claimed were not a liability to the Company.  In the course of those proceedings certain orders were made by default providing for judgment against the Company and the director and certain garnishment proceedings were taken.  The Company and the director, in the course of efforts to set aside the orders, successfully negotiated a settlement with the claimant on January 3, 2007 whereby the claimant released the Company from any and all claims.  No amounts have been accrued or charged to operations of the Company for the year ended December 31, 2006 as a result of these matters.  Critical Accounting Policies and Estimates  The Company's discussion and analysis of its financial condition and results of operations are based upon its financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to impairment of long-lived assets, income taxes, and contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.  An accounting policy that is critical to the understanding of the Companys financial statements is the accounting for its Functional Currency and Foreign Currency Translation and Stock-Based Compensation.  The Companys consolidated financial statements are prepared in accordance with previous years, except for the change from the use of the Canadian dollar as the functional currency, to the use of the U.S. dollar as the functional currency.   7     Licence and Patents  The Companys licence and patents for intellectual property rights to the URO Stent technology was recorded at cost and was being depreciated on a straight-line basis over its estimated useful life of ten years.  The carrying value of the Companys licence and patents was reviewed by management for impairment on a regular basis or when facts or circumstances would indicate a condition of impairment exists and is tested in reference to undiscounted cash flows. An impairment loss is recognized when the carrying amount exceeds the fair value.  As the Company has not generated any revenue, management relies on its experience and judgment in assessing the assumptions used to estimate future cash flows.  External and market condition will greatly affect managements judgment and estimates and thus require adjustment to the carrying value of the License and Patents.  In February 2004, the Company issued 500,000 shares of its common stock to MDMI in exchange for a licence to the Thermal Ablation Technology.  The value assigned to this share issuance, based upon the quoted market price for our common shares, was $160,000.  This amount was subsequently written off during the year ended December 31, 2004 to research and development expense due to concerns about the uncertainty as to the recoverability of the remaining carrying value of the Licence and Patents.   At September 30, 2004, Management reviewed the status of the Stent program and, in light of the difficulties in raising funds for development and the uncertainty as to the recoverability of the carrying value of the License and Patents, decided to write off the remaining carrying value of $2.1 million to research and development expense in accordance with Statement of Financial Accounting Standards (SFAS) No. 144 Impairment of Long-Lived Assets.  Functional Currency and Foreign Currency Translation  Effective December 31, 2003, the Company changed its reporting currency to the U.S. dollar from the Canadian dollar.  The consolidated financial statements of the Company at December 31, 2003 were translated into U.S. dollars using the current rate method.  Assets and liabilities were translated at the rate of exchange prevailing at the balance sheet date.  Stockholders equity (capital deficit) was translated at the applicable historical rate.  Revenue and expenses were translated at a weighted average rate of exchange for the year.  Translation gains and losses were included as part of the accumulated other comprehensive income  foreign exchange gains.  Effective January 1, 2004, the Company also changed its functional currency to the U.S. dollar as the Company has continued its operations from Canada into the State of Wyoming in the United States of America and is seeking financing for its operations in US dollars through US equity markets.  Transactions denominated in currencies other than the functional currency are recorded in the functional currency using the exchange rates in effect on the transaction date.  Monetary assets and liabilities in denominated in Canadian dollars are translated at the rate of exchange prevailing at the balance sheet date.  Exchange gains and losses arising there from are included in net loss for the period.  No restatement of comparative numbers was made for the change in functional currency.  The change was adopted prospectively.   8     Stock-based Compensation  Beginning January 1, 2006, the Company adopted the recommendations of the Statement of Financial Accounting Standards No. 123R, "Accounting for Stock-based Compensation" (SFAS 123(R)), and has applied the recommendations of this standard using the modified prospective method. Under this application, the Company is required to record compensation expense for all awards granted after the date of adoption and for the unvested portion of previously granted awards that remain outstanding at the date of adoption.  Prior to the adoption of SFAS 123R, the Company elected to apply the intrinsic value method of Accounting Principles Board (APB) No. 25, Accounting for Stock Issued to Employees and related interpretations in accounting for stock options granted to employees and directors.  Under APB No. 25, compensation expense is only recorded to the extent that the exercise price is less than the market value of the underlying stock on the measurement date, which is usually the date of grant.  Any stock-based compensation for employees was recognized on a straight-line basis over the vesting period of the individual options.  Stock options granted to non-employees were accounted for under SFAS No. 123 Accounting for Stock-Based Compensation and were measured at the fair value of the options as determined by an option pricing model on the measurement date and recognized as the related services are provided and the options earned. Fair value of unvested options are re-measured and adjusted on each balance sheet date until the options vest.  The Company did not record compensation expense on the granting of stock options to employees or directors prior to January 1, 2006 as none of the options granted to employees during that time had exercise prices less than the market value of the underlying common stock on the grant date. All options granted to employees vested prior to January 1, 2005, thus there is no effect on net loss and net loss per share for the year ended December 31, 2005 even if the Company had applied the fair value provisions of SFAS to all options prior to January 1, 2006.  New Accounting Pronouncements  In June 2005, the Financial Accounting Standards Board (FASB) issued Statement 154 (SFAS No. 154), Accounting Changes and Error Corrections which replaces APB Opinion 20 and FASB Statement 3.  SFAS No. 154 changes the requirements for the accounting and reporting of a change in accounting principle.  Opinion 20 previously required that most voluntary changes in accounting principle be recognized by including the cumulative effect of the new accounting principle in net income of the period of change.  SFAS No. 154 now requires retrospective application of changes in accounting principle to prior period financial statements, unless it is impractical to determine either the period-specific effects or the cumulative effect of the change.  The statement is effective for fiscal years beginning after December 15, 2005.  The adoption of this statement did not have a material impact on the Companys results of operations or financial position.  In February 2006, the Financial Accounting Standards Board (the FASB) issued Statement of Financial Accounting Standards (SFAS) No. 155, Accounting for Certain Hybrid Financial Instrumentsan Amendment of FASB Statements No. 133 and 140 ("SFAS 155") to simplify and make more consistent the accounting for certain financial instruments. Namely, SFAS 155 amends SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities to permit fair value re-measurement for any hybrid financial instrument with an embedded derivative that otherwise would require bifurcation, provided that the whole instrument is accounted for on a fair value basis. SFAS 155 amends SFAS No. 140, Accounting for the Impairment or Disposal of Long-Lived Assets to allow for a qualifying special-purpose entity to hold a derivative financial instrument that relates to a beneficial interest other than another derivative financial instrument.   9     SFAS 155 applies to all financial instruments acquired or issued after the beginning of an entitys first fiscal year that begins after September 15, 2006, with earlier application permitted. Accordingly, the Company will adopt SFAS 155 as of January 1, 2007. The adoption of SFAS 155 will not have any effect on the Company's financial position or results of operations.  In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" ("SFAS 157"), which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 applies whenever other accounting standards require or permit assets or liabilities to be measured at fair value. Accordingly, it does not expand the use of fair value in any new circumstances. Fair value under SFAS 157 is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Standard clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability. In support of this principle, SFAS 157 establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, for example, a reporting entity's own data. Under SFAS 157, fair value measurements would be separately disclosed by level within the fair value hierarchy. SFAS 157 is effective for fiscal years beginning after November 15, 2007. Accordingly, the Company is to adopt SFAS 157 on January 1, 2008. The adoption of SFAS 157 is not expected to have a material effect on the Companys financial position or results of operations.  In June 2006, FASB issued interpretation No. 48, Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109 (SFAS No. 109) (FIN 48). This interpretation prescribes a recognition threshold and measurement attribute for tax positions taken or expected to be taken in a tax return. This interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The evaluation of a tax position in accordance with this interpretation is a two-step process. In the first step, recognition, the Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step addresses measurement of a tax position that meets the more-likely-than-not criteria. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in a) an increase in a liability for income taxes payable or a reduction of an income tax refund receivable, b) a reduction in a deferred tax asset or an increase in a deferred tax liability or c) both a and b. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be de-recognized in the first subsequent financial reporting period in which that threshold is no longer met. Use of a valuation allowance as described in SFAS No. 109 is not an appropriate substitute for the de-recognition of a tax position. The requirement to assess the need for a valuation allowance for deferred tax assets based on sufficiency of future taxable income is unchanged by this interpretation. This Interpretation is effective for fiscal years beginning after December 15, 2006. FIN 48 is not expected to have a material impact on the Companys consolidated balance sheet and statement of operations.  On September 13, 2006, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. (SAB 108) which provides interpretive guidance on how the effects of the carryover or reversal of prior year misstatements should be considered in quantifying a current year misstatement. SAB 108 is effective for fiscal years ending after November 15, 2006. There is no impact of the provisions of SAB 108 on the Companys financial statements.   10     Off Balance-sheet Arrangements  We do not have any off balance sheet arrangements as of December 31, 2006 or as of the date of this report.  ITEM 7. FINANCIAL STATEMENTS  Index to Financial Statements   Global Precision Medical Inc.(A Development Stage Company)Consolidated Financial StatementsDecember 31, 2006 and 2005(Expressed in US Dollars)ContentsPageReport of Independent Registered Public Accounting Firm12Consolidated Balance Sheets as of December 31, 2006 and 200513Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2006 and 2005 and for the cumulative period from August 24, 1990 (inception) to December 31, 200614Consolidated Statements of Cash Flows for the years ended December 31, 2006 and 2005 and for the cumulative period from August 24, 1990 (inception) to December 31, 2006.15Consolidated Statements of Changes in Stockholders Equity (Capital Deficit) for the cumulative period from August 24, 1990 (inception) to December 31, 200616Summary of Significant Accounting Policies18Notes to Consolidated Financial Statements26    11      BDO Dunwoody LLP 600 Cathedral Place Chartered Accountants 925 West Georgia Street Vancouver, BC, Canada V6C 3L2 Telephone:  (604) 688-5421 Telefax:  (604) 688-5132 E-mail:  vancouver@bdo.ca www.bdo.ca  Report of Independent Registered Public Accounting FirmTo the Directors and Stockholders ofGlobal Precision Medical Inc.(A Development Stage Company)We have audited the Consolidated Balance Sheets of Global Precision Medical Inc. (a development stage company) as at December 31, 2006 and 2005 and the Consolidated Statements of Operations and Comprehensive Loss, Cash Flows, and Changes in Stockholders Equity (Capital Deficit) for the years then ended and for the period from August 24, 1990 (inception) to December 31, 2006.  These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements based on our audits.We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance whether the 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 control over financial reporting. Our audits 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, 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, based on our audits, these financial statements present fairly, in all material respects, the financial position of Global Precision Medical Inc. (a development stage company) as at December 31, 2006 and 2005 and the results of its operations and its cash flows for the years then ended and for the period from August 24, 1990 (inception) to December 31, 2006 in conformity with United States generally accepted accounting principles.The accompanying financial statements have been prepared assuming the Company will continue as a going concern.  As discussed in Note 1 to the consolidated financial statements the Company has recognized no revenue,has accumulated losses of $5,138,268 since its inception, has difficulties in raising funds for development, has not yet determined whether the URO-Stent is viable for commercial production and sale and is presently funded by a stockholder of the Company. These conditions raise substantial doubt about the Companys ability to continue as a going concern.  Managements plans in regard to these matters are described in Note 1.  These financial statements do not include any adjustments that might result from the outcome of this uncertainty./s/ BDO Dunwoody LLPChartered AccountantsVancouver, CanadaFebruary 28, 2007   12      Global Precision Medical Inc.(A Development Stage Company)Consolidated Balance Sheets(Expressed in US Dollars)December 3120062005AssetsCurrentCash$-$463Receivables5,1347,849Prepaid expenses5,0867,658TOTAL ASSETS$10,220$15,970LIABILITIES AND CAPITAL DEFICITLiabilitiesBank indebtedness$74$-Accounts payable19,65116,830Accrued liabilities32,95119,705Due to stockholder (Note 3)109,168101,410TOTAL LIABILITIES161,844137,945Capital DeficitCapital Stock (Note 4)AuthorizedUnlimited common shares, no par valueIssued11,553,075 common shares4,158,6884,158,688Common stock to be issued (Note 5)172,400172,400Additional paid-in capital200,462200,462Deficit accumulated during the development stage(5,138,268)(5,108,619)Accumulated other comprehensive income
 cumulative translation adjustment455,094455,094TOTAL CAPITAL DEFICIT(151,624)(121,975)TOTAL LIABILITIES AND CAPITAL DEFICIT$10,220$15,970The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements.  13      Global Precision Medical Inc.(A Development Stage Company)Consolidated Statements of Operations and Comprehensive Loss(Expressed in US Dollars)For the years ended
December 31,For the period from August 24, 1990
(inception) to20062005December 31,
2006(cumulative)ExpensesAccounting and audit$28,209$35,624$157,499Amortization--452,000Business development-3422,140Consulting (Notes 4 and 8)-1,218291,983Filing Fees-1,4003,265Bank Charges2483321,660Foreign exchange loss (gain)(674)3,6485,675Legal  fees-2,16815,189Office1011,55937,346Research and development (Notes 4 and 6)--233,309Stockholder information-1644,988Transfer agent1,7651,7519,293Travel-1,0916,440Write-down of licence and patents (Note 2)--2,112,182Loss from continuing operations(29,649)(48,989)(3,352,969)Loss from discontinued operations--(1,785,299)Net loss for the period(29,649)(48,989)(5,138,268)Foreign exchange translation adjustments--455,094Comprehensive loss for the period$(29,649)$(48,989)$(4,683,174)Loss per share  basic and diluted$(0.00)$(0.00)Weighted average shares outstanding11,553,07511,553,075The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements.  14      Global Precision Medical Inc.(A Development Stage Company)Consolidated Statements of Cash Flows(Expressed in US Dollars)For the years ended
December 31,For the period from August 24, 1990 (inception) to20062005December 31,
2006(cumulative)Cash provided by (used in)Net loss from continuing operations$(29,649)$(48,989)$(3,352,969)Adjustments to reconcile net loss for the period to cash used in operating activities:Write-down of licence and patents--2,112,182Amortization--452,000Stock option compensation--49,489Common stock issued as compensation--332,400Expenses settled by issuance of capital stock--6,000Net changes in non-cash working capital items (Note 9)20,393(40,662)40,777Cash used in continuing operations(9,256)(89,651)(360,121,)Cash used in discontinued operations (Note 9)--(1,667,154)Cash used in operating activities(9,256)(89,651)(2,027,275)Cash flows used in investing activitiesAcquisition of patents--(15,000)Cash flows provided by financing activitiesAdvances from stockholder8,71989,554740,911Capital stock issued for cash--1,320,461Bank indebtedness74-74Cash provided by financing activities8,79389,5542,061,446Net increase (decrease) in cash(463)(97)19,171Effect of foreign exchange on cash--(19,171)Cash,beginning of period463560-Cash,end of period$-$463$-Supplemental disclosure of cash flow information:Cash paid during the period for:Interest$-$-$9,243Income taxes$-$-$-The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements.   15      Global Precision Medical Inc.(A Development Stage Company)Consolidated Statements of Changes in Stockholders Equity (Capital Deficit)(Expressed in US Dollars)DeficitaccumulatedAccumulatedTotalCommon StockAdditionalduring theOtherStockholdersCommonPaid-indevelopmentComprehensiveEquitySharesAmountStock to be issuedCapitalstageIncome (loss)(Capital Deficit)Issued for cash on inception in August 1990, at $0.04 per share125,000$5,470$-$-$-$-$5,470Loss for the year ended December 31, 1994----(9,718)-(9,718)Foreign currency translation adjustment-----9595Balance, December 31, 1994125,0005,470--(9,718)95(4,153)Loss for the year----(2,637)-(2,637)Foreign currency translation adjustment-----(128)(128)Balance, December 31, 1995125,0005,470--(12,355)(33)(6,918)Issued to settle stockholder loan at $1.10 per share110,806121,889----121,889Subscriptions received--30,434---30,434Loss for the year----(180,728)-(180,728)Foreign currency translation adjustment-----146146Balance, December 31, 1996235,806127,35930,434-(193,083)113(35,177)Subscriptions received--342,928---342,928Loss for the year----(261,160)-(261,160)Foreign currency translation adjustment-----(1,092)(1,092)Balance, December 31, 1997235,806127,359373,362-(454,243)(979)45,499Issued for cash at $2.53 per share33,33384,283----84,283Subscriptions received--136,201---136,201Loss for the year----(282,946)-(282,946)Foreign currency translation adjustment-----(1,080)(1,080)Balance, December 31, 1998269,139211,642509,563-(737,189)(2,059)(18,043)Issued for cash on private placement at $2.97 per share101,000300,247----300,247Issued to settle stockholder loan at $1.01 per share133,333134,608----134,608Subscriptions received--131,998---131,998Issued to settle subscriptions at $1.94 per share331,250641,561(641,561)----Issued to settle accounts payable at $2.02 per share1,0002,019----2,019Loss for the year----(350,666)-(350,666)Foreign currency translation adjustment-----5,3345,334Balance, December 31, 1999  carried forward835,722$1,290,077$-$-$(1,087,855)$3,275$205,497        The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements.  16      Global Precision Medical Inc.(A Development Stage Company)Consolidated Statements of Changes in Stockholders Equity (Capital Deficit) - Continued(Expressed in US Dollars)DeficitAccumulatedAccumulatedTotalCommon StockCommonAdditionalDuring theOtherStockholdersStock to bePaid-inDevelopmentComprehensiveEquitySharesAmountissuedCapitalStageIncome (loss)(Capital Deficit)Balance, December 31, 1999  brought forward835,722$1,290,077$-$-$(1,087,855)$3,275$205,497Loss for the year----(294,129)-(294,129)Foreign currency translation adjustment-----(4,854)(4,854)Balance, December 31, 2000835,7221,290,077--(1,381,984)(1,579)(93,486)Loss for the year----(285,926)-(285,926)Foreign currency translation adjustment-----13,36013,360Balance, December 31, 2001835,7221,290,077--(1,667,910)11,781(366,052)Issued to settle stockholder loan at $0.08 per share2,237,407178,992----178,992Issued for cash on private placement at $0.75 per share66,66750,000----50,000Issued to settle debt at $0.125 per share556,95069,619----69,619Issued to acquire licence at $0.52 per share4,030,0792,095,600----2,095,600Issued for compensation at $0.10 per share400,00040,000----40,000Stockholder contributions---150,973--150,973Loss for the year----(153,435)-(153,435)Foreign currency translation adjustment-----13,14113,141Balance, December 31, 20028,126,8253,724,288-150,973(1,821,345)24,9222,078,838Issued for cash on private placement at $0.20 per share727,500145,500----145,500Issued to settle stockholder loan at $0.20 per share110,00022,000----22,000Issued as a commission in connection with the above40,750------Issued as reimbursement of expenses at $0.20 per share30,0006,000----6,000Common stock to be issued as compensation for services--172,400---172,400Loss for the year----(570,321)-(570,321)Foreign currency translation adjustment-----430,172430,172Balance, December 31, 20039,035,0753,897,788172,400150,973(2,391,666)455,0942,284,589Issued pursuant to MDMI agreement500,000160,000----160,000Issued for cash on private placement at $0.05 per share1,868,00093,400----93,400Issued to settle stockholder loan at $0.05 per share150,0007,500----7,500Stock option compensation---49,489--49,489Loss for the year----(2,667,964)-(2,667,964)Balance, December 31, 200411,553,0754,158,688172,400200,462(5,059,630)455,094(72,986)Loss for the year----(48,989)-(48,989)Balance, December 31, 200511,553,0754,158,688172,400200,462(5,108,619)455,094(121,975)Loss for the year----(29,649)-(29,649)Balance, December 31, 200611,553,075$4,158,688$172,400$200,462$(5,138,268)$455,094$(151,624)The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements.  17      Global Precision Medical Inc.(A Development Stage Company)Summary of Significant Accounting Policies(Expressed in US Dollars)December 31, 2006 and 2005Basis of PresentationThe accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC).  On February 4, 2003, the Company became domiciled in the State of Wyoming.  Previously, the Company was incorporated under the laws of the Province of British Columbia, Canada.  As a result of the move and becoming a US company for the year ended December 31, 2003, the Company retroactively restated its consolidated financial statements for the year ended December 31, 2003 and the cumulative period from August 24, 1990 (inception) to December 31, 2003 to conform to US GAAP and has adopted the US dollar as its reporting currency.Until the acquisition of a licence in September 2003, the Company was previously in the mineral exploration business, having interests in several mineral properties and was in the process of determining whether its mineral properties contained sufficient mineralization to merit future development and production activities.  The Company is now in the business of commercializing and developing a medical device known as the Urethral Stent.  Accordingly, with the change of business, results of operations and cash flows relating to the mineral exploration business have been segregated in these consolidated financial statements as discontinued operations. The sale of the discontinued operations concluded in February 2003.Basis of ConsolidationThese consolidated financial statements include the accounts of Global Precision Medical Inc. and its wholly-owned subsidiary, Global Precision Medical (USA) Inc. (formerly San Antonios Resources (USA) Inc.) until its disposition on February 5, 2003. Global Precision Medical (USA) Inc (USA) was incorporated on June 19, 1996 and previously held title to its mineral properties.  All inter-company balances and transactions have been eliminated.On February 5, 2003, the Company disposed of its interest in USA for $Nil proceeds to a stockholder.  The Companys net investment in USA at the date of disposition was $Nil.  As a condition to the transfer of ownership of USA to the stockholder, any assets, rights or property deemed to be the property of USA was also to be transferred by the Company for no consideration.  No gain or loss was recognized on the transfer disposal of these net assets.   18      Global Precision Medical Inc.(A Development Stage Company)Summary of Significant Accounting Policies(Expressed in US Dollars)December 31, 2006 and 2005Use of EstimatesThe 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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting periods.  Actual results may differ from those estimates.License and PatentsThe Companys licence and patents for the intellectual property rights to the Urethral Stent (the License and Patents) was recorded at cost and was being amortized on a straight-line basis over its estimated useful life of ten years, until September 2004 when the balance was written off.  Prior to the write off, the carrying value of the Companys licence agreement and patents was reviewed by management for impairment on a regular basis or when facts or circumstances would indicate a condition of impairment exists and was tested in reference to undiscounted cash flows.  An impairment loss was recognized when the carrying amount exceeds fair value.  Because the Company has not yet generated revenue from its technology, the determination of whether or not the License and Patents has become impaired involves a significant level of judgment in the assumptions underlying the approach used to determine the estimated future cash flows expected to result from the use of those assets. Changes in the Companys strategy, assumptions and/or market conditions could significantly impact these judgments and require adjustments to the recorded amounts of the License and Patents.   During the year ended December 31, 2004, in light of the difficulties in raising funds for development and the uncertainty as to the recoverability of the carrying value of the License and Patents from future cash flows, management wrote off the remaining carrying value of the Licence and Patents.  Amortization expense of $193,476 was recorded in 2004 on the Licence and Patents until the time of the write-off.Research and DevelopmentResearch and development costs, including product and technology development, are expensed as incurred.Foreign Currency Translation and TransactionsEffective December 31, 2003, in connection with its redomicile to the State of Wyoming in 2003, the Company changed its reporting currency to the US dollar. The Companys original functional currency was the Canadian dollar as its cash flows were denominated primarily in Canadian dollars.  Assets and liabilities denominated in the original functional currency were translated into US dollars at the exchange rate in effect at the balance sheet date.  Expenses and capital stock issuances were translated at the exchange rate in effect on the respective transaction dates.  Stockholders equity (capital deficit) was translated at the applicable historical rate. The resulting exchange gains and losses are shown as a separate component of stockholders equity (capital deficit).  19      Global Precision Medical Inc.(A Development Stage Company)Summary of Significant Accounting Policies(Expressed in US Dollars)December 31, 2006 and 2005Foreign Currency Translation and Transactions - ContinuedEffective January 1, 2004, the Company also changed its functional currency to the U.S. dollar as the Company has continued its operations from Canada into the State of Wyoming in the United States of America and is seeking financing for its operations in US dollars through US equity markets.  Exchange gains or losses arising therefrom are charged to the Statement of Operations and Comprehensive Loss.

Transactions denominated in currencies other than the functional currency are recorded in the functional currency using the exchange rates in effect on the transaction date.  Monetary assets and liabilities denominated in Canadian dollars are translated at the rate of exchange prevailing at the balance sheet date.  Exchange gains and losses arising therefrom are included in net loss for the period.Long-lived Assets and Discontinued OperationsThe Company applies the standards of the Statement of Financial Accounting Standards Board (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.  SFAS 144 requires that companies (1) recognize an impairment loss only if the carrying amount of a long-lived asset is not recoverable based on its undiscounted future cash flows and (2) measure an impairment loss as the difference between the carrying amount and fair value of the asset.  In addition, SFAS No. 144 provides guidance on accounting and disclosure for discontinued operations.The Company was previously involved in the exploration of mineral properties.  All exploration expenditures and acquisition costs related to exploration were charged to expense in the period incurred as the Company had no established mining reserves.Loss Per ShareBasic loss per share is calculated using the weighted average aggregate number of common shares outstanding during each period.  The diluted loss per share assumes that the outstanding stock options and share purchase warrants had been exercised at the beginning of the period.  In loss periods, dilutive common equivalent shares are excluded as the effect would be anti-dilutive.  Basic and diluted earnings per share are the same for the periods presented.Common equivalent shares (consisting of shares to be issued and shares issuable on exercise of stock options and warrants and shares to be issued) totaling 1,215,000 (2005  1,215,000) were not included in the computation of diluted earnings per share because the effect was anti-dilutive.   20      Global Precision Medical Inc.(A Development Stage Company)Summary of Significant Accounting Policies(Expressed in US Dollars)December 31, 2006 and 2005Stock-Based CompensationBeginning January 1, 2006, the Company adopted the recommendations of the Statement of Financial Accounting Standards No. 123R, "Accounting for Stock-based Compensation" (SFAS 123(R)), and has applied the recommendations of this standard using the modified prospective method. Under this application, the Company is required to record compensation expense for all awards granted after the date of adoption and for the unvested portion of previously granted awards that remain outstanding at the date of adoption.  Prior to the adoption of SFAS 123R, the Company elected to apply the intrinsic value method of Accounting Principles Board (APB) No. 25, Accounting for Stock Issued to Employees and related interpretations in accounting for stock options granted to employees and directors.  Under APB No. 25, compensation expense is only recorded to the extent that the exercise price is less than the market value of the underlying stock on the measurement date, which is usually the date of grant.  Any stock-based compensation for employees was recognized on a straight-line basis over the vesting period of the individual options.

Stock options granted to non-employees were accounted for under SFAS No. 123 Accounting for Stock-Based Compensation and were measured at the fair value of the options as determined by an option pricing model on the measurement date and recognized as the related services are provided and the options earned. Fair value of unvested options are re-measured and adjusted on each balance sheet date until the options vest.The Company did not record compensation expense on the granting of stock options to employees or directors prior to January 1, 2006 as none of the options granted to employees during that time had exercise prices less than the market value of the underlying common stock on the grant date. All options granted to employees vested prior to January 1, 2005, thus there is no effect on net loss and net loss per share for the year ended December 31, 2005 and cumulative information to that date even if the Company had applied the fair value provisions of SFAS to all options prior to January 1, 2006.   21      Global Precision Medical Inc.(A Development Stage Company)Summary of Significant Accounting Policies(Expressed in US Dollars)December 31, 2006 and 2005Income TaxesThe Company accounts for income taxes using the liability method.  Deferred income tax assets and liabilities are computed based on differences between the carrying amount of assets and liabilities on the balance sheet and their corresponding tax values using the enacted income tax rates at each balance sheet date.Deferred income tax assets also result from unused loss carry-forwards and other deductions.  The valuation of deferred income tax assets is reviewed annually and adjusted, if necessary, by use of a valuation allowance to reflect the estimated amount more likely than not to be realized.  Although the Company has tax loss carry forwards, there is uncertainty as to utilization prior to their expiry.  Accordingly, the deferred tax asset amounts have been fully offset by a valuation provision.Development StageIn September 2002, the Company acquired its Licence (Note 2) at which time it entered into the business of commercializing and developing a medical device known as the URO-Stent. The Company is considered a development stage company in accordance with SFAS No. 7 and currently operates in one business segment with all of its net assets located in Canada.Comprehensive IncomeComprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners.  Other comprehensive income for the periods covered by these financial statements consists of foreign currency translation adjustments, which relate to investments that are permanent in nature.Fair Value of Financial InstrumentsThe carrying amounts reported in the balance sheets for cash, receivables, accounts payable, accrued liabilities and amounts due to a stockholder approximate fair value because of the immediate or short-term maturity of these financial instruments.ReceivablesReceivables consisting of Canadian goods and services taxes (GST) recoverable are recorded when GST is paid. Accounts recoverable are written off if they are determined by Canadian taxation authorities to be ineligible for claim.    22      Global Precision Medical Inc.(A Development Stage Company)Summary of Significant Accounting Policies(Expressed in US Dollars)December 31, 2006 and 2005New Accounting Pronouncements
- ContinuedIn June 2005, the Financial Accounting Standards Board (FASB) issued Statement 154 (SFAS No. 154), Accounting Changes and Error Corrections which replaces APB Opinion 20 and FASB Statement 3.  SFAS No. 154 changes the requirements for the accounting and reporting of a change in accounting principle.  Opinion 20 previously required that most voluntary changes in accounting principle be recognized by including the cumulative effect of the new accounting principle in net income of the period of change.  SFAS No. 154 now requires retrospective application of changes in accounting principle to prior period financial statements, unless it is impractical to determine either the period-specific effects or the cumulative effect of the change.  The statement is effective for fiscal years beginning after December 15, 2005.  The adoption of this statement did not have a material impact on the Companys results of operations or financial position.

In February 2006, the Financial Accounting Standards Board (the FASB) issued Statement of Financial Accounting Standards (SFAS) No. 155, Accounting for Certain Hybrid Financial Instrumentsan Amendment of FASB Statements No. 133 and 140 ("SFAS 155") to simplify and make more consistent the accounting for certain financial instruments. Namely, SFAS 155 amends SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities to permit fair value re-measurement for any hybrid financial instrument with an embedded derivative that otherwise would require bifurcation, provided that the whole instrument is accounted for on a fair value basis. SFAS 155 amends SFAS No. 140, Accounting for the Impairment or Disposal of Long-Lived Assets to allow for a qualifying special-purpose entity to hold a derivative financial instrument that relates to a beneficial interest other than another derivative financial instrument.


SFAS 155 applies to all financial instruments acquired or issued after the beginning of an entitys first fiscal year that begins after September 15, 2006, with earlier application permitted. Accordingly, the Company will adopt SFAS 155 as of January 1, 2007. The adoption of SFAS 155 will not have any effect on the Company's financial position or results of operations.  23      Global Precision Medical Inc.(A Development Stage Company)Summary of Significant Accounting Policies(Expressed in US Dollars)December 31, 2006 and 2005New Accounting Pronouncements
- ContinuedIn September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" ("SFAS 157"), which defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 applies whenever other accounting standards require or permit assets or liabilities to be measured at fair value. Accordingly, it does not expand the use of fair value in any new circumstances. Fair value under SFAS 157 is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Standard clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability. In support of this principle, SFAS 157 establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, for example, a reporting entity's own data. Under SFAS 157, fair value measurements would be separately disclosed by level within the fair value hierarchy. SFAS 157 is effective for fiscal years beginning after November 15, 2007. Accordingly, the Company is to adopt SFAS 157 on January 1, 2008. The adoption of SFAS 157 is not expected to have a material effect on the Companys financial position or results of operations.

In June 2006, FASB issued interpretation No. 48, Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109 (SFAS No. 109) (FIN 48). This interpretation prescribes a recognition threshold and measurement attribute for tax positions taken or expected to be taken in a tax return. This interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The evaluation of a tax position in accordance with this interpretation is a two-step process. In the first step, recognition, the Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step addresses measurement of a tax position that meets the more-likely-than-not criteria. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in a) an increase in a liability for income taxes payable or a reduction of an income tax refund receivable, b) a reduction in a deferred tax asset or an increase in a deferred tax liability or c) both a and b.  24      Global Precision Medical Inc.(A Development Stage Company)Summary of Significant Accounting Policies(Expressed in US Dollars)December 31, 2006 and 2005New Accounting Pronouncements
- ContinuedTax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be de-recognized in the first subsequent financial reporting period in which that threshold is no longer met. Use of a valuation allowance as described in SFAS No. 109 is not an appropriate substitute for the de-recognition of a tax position. The requirement to assess the need for a valuation allowance for deferred tax assets based on sufficiency of future taxable income is unchanged by this interpretation. This Interpretation is effective for fiscal years beginning after December 15, 2006. FIN 48 is not expected to have a material impact on the Companys consolidated balance sheet and statement of operations.On September 13, 2006, the Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin No. (SAB 108) which provides interpretive guidance on how the effects of the carryover or reversal of prior year misstatements should be considered in quantifying a current year misstatement. SAB 108 is effective for fiscal years ending after November 15, 2006. The adoption of SAB 108 did not have an impact on the Companys financial statements.  25      Global Precision Medical Inc.(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in US Dollars)December 31, 2006 and 20051.NATURE OF BUSINESS AND ABILITY TO CONTINUE OPERATIONSThe Company was incorporated under The Company Act of British Columbia on August 24, 1990 and commenced operations in late 1994.  On February 5, 2003 the Company continued from British Columbia into the State of Wyoming in the United States of America.From 1996 to September 23, 2002, the Company was an exploration stage company engaged in the acquisition and exploration of mineral properties in Nevada. It has never had any earnings from mining and no commercially viable mineral deposits were identified on any of its properties.  Its last remaining mineral interests were relinquished without further obligation in August 2002.  In all, the Company divested itself of all mineral leases and all further financial obligations with respect to those properties and of all located claims and ceased to be involved in the mining business.  On September 23, 2002 the Company entered into an exclusive worldwide Technology Licence Agreement to commercialize and further develop the technology known as the URO-Stent (the Licence).  The URO-Stent is used for the prevention of lumen restriction associated with benign prostate hyperplasia.   BPH is a non-cancerous enlargement of the prostate, which constricts the urethra as it grows, thereby restricting the flow of urine  a common cause of urinary voiding dysfunction in men. At September 30, 2004, in light of the difficulties in raising funds for development, management wrote off the remaining carrying value of the Licence and Patents.  (Note 2).These accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business.  As at December 31, 2006, the Company has recognized no revenue, has accumulated losses of $5,138,268 since its inception, has difficulties in raising funds for development, and has not yet determined whether the URO-Stent can be brought to commercial production and sale. These conditions raise substantial doubt about the Companys ability to continue as a going concern. Managements plans include obtaining the continued support of creditors, stockholders, raising additional financing, seeking other business opportunities and, ultimately, positioning the Company for profitable operations. Together with other activities to maintain the current operations slated for the next twelve months, approximately $180,000 in additional funds will have to be raised by the Company over the next year.  The continuation of the Company is dependent upon the continuing financial support of stockholders.While the Company is expending its best efforts to achieve the above plans, there is no assurance that any such financings will occur.  These financial statements do not include adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that may be necessary should the Company be unable to continue in existence.   26       Global Precision Medical Inc.(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in US Dollars)December 31, 2006 and 20052.LICENSE AND PATENTSLICENSE AND PATENTS ARE COMPRISED AS FOLLOWS:  20062005License$2,573,774$2,573,774Patents15,00015,0002,588,7742,588,774Accumulated amortization(476,592)(476,592)Write-down of remaining balance(2,112,182)(2,112,182)$-$-  During 2002, the Company entered into an agreement with Global Medical Sciences Ltd. (the Licensor), a company with a director in common, to licence the Licensors intellectual property rights in a medical device known as the Urethral Stent (the Stent) for the full term of the patent rights on the Stent.  This agreement granted to the Company an exclusive worldwide licence to use the intellectual property rights to manufacture, produce, sell and otherwise commercialize the Stent in permitted countries.In June 2004, the Company incurred $15,000 of legal and consulting costs to file patents of the Stent technology in the United States, Japan and Russia.In September 2004, management reviewed the status of the Stent program and, in light of the difficulties in raising funds for development of the Stent and the uncertainty as to the recoverability of the carrying value of the license and patents, decided to write off the remaining carrying value of the license and patents in accordance with SFAS No. 144.  The Company, however, intends to continue pursuing financing for the Stent development.3.DUE TO STOCKHOLDERAt December 31, 2006 and 2005, the amounts due to the Companys Chief Executive Officer for unpaid fees and advances to the Company are non-interest bearing and due on demand.
Subsequent to December 31, 2006, the Chief Executive Officer advanced an additional $12,875 (Cdn$15,000) under similar terms to the Company as working capital for day-to-day operations.  27      Global Precision Medical Inc.(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in US Dollars)December 31, 2006 and 20054.CAPITAL STOCKa)In September 2002, the Companys stockholders approved the adoption of the 2002 Stock Option Plan (the Plan).  The Plan provides for the granting of up to 2,000,000 stock options to key employees, directors and consultants, to purchase common shares of the Company.  Under the Plan, the granting of incentive and non-qualified stock options, exercise prices and terms are determined by the Company's Board of Directors.  For incentive options, the exercise price shall not be less than the fair market value of the Company's common stock on the grant date. (In the case of options granted to an employee who owns stock possessing more than 10% of the voting power of all classes of the Company's stock on the date of grant, the option price must not be less than 110% of the fair market value of common stock on the grant date.).  Options granted are not to exceed terms beyond ten years (five years in the case of an incentive stock option granted to a holder of 10 percent of the Company's common stock).  WeightedAverageExerciseNumberPriceBalance outstanding, January 1, 20051,415,000$0.40Granted--Cancelled(200,000)$0.40Balance outstanding, December 31, 2005 and December 31, 20061,215,000$0.40  The following table summarizes information about the options outstanding at December 31, 2006:  ExerciseRemainingPriceOptionsContractualOptionsOutstandingLifeExercisable$0.401,215,0002.1 years1,215,000  As of December 31, 2006, the aggregate intrinsic value of vested options remained unexercised was $nil. Intrinsic value for stock options is calculated based on the difference between the exercise price and the quoted price of the Companys common stock as of December 31, 2006. As the quoted price of the Companys stock is below the exercise price, the intrinsic value is nil for the reporting year.  28      Global Precision Medical Inc.(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in US Dollars)December 31, 2006 and 20054.CAPITAL STOCK  CONTINUEDb)There were no share purchase warrants outstanding during the year ended December 31, 2006.  A summary of share purchase warrant activities for the years ended December 31, 2005 was as follows:  Expiry dateExercise PriceOutstanding January
1, 2005Granted
during
yearExercised
during
yearExpired
during yearOutstanding December 31, 2005November 30, 2005$1.00454,125--454,125-454,125--454,125-  5.COMMON STOCK TO BE ISSUEDDuring the year ended December 31, 2003, the Board of Directors approved the issuance of a total of 670,000 common stock pursuant to agreements dated in October and December 2003 with an aggregated value of $172,400 (based on the quoted market value of the Companys common stock on the respective agreement dates) to be issued to four individuals as compensation for consulting services performed during the year ended December 31, 2003.  Included in the shares to be issued are 450,000 common shares issuable to two directors and an officer having a value of $113,000 based on the quoted market value of the Companys common stock on the respective agreement dates.  To date, the shares have not yet been issued.6.COMMITMENTS & CONTINGENCIESDuring the year ended to December 31, 2006, legal proceedings were commenced in British Columbia against the Company and one of its directors in June 2006 relating to matters which the director claimed were not a liability to the Company.  In the course of those proceedings certain orders were made by default providing for judgment against the Company and the director and certain garnishment proceedings were taken.  The Company and the director, in the course of efforts to set aside the orders, successfully negotiated a settlement with the claimant on January 3, 2007 whereby the claimant released the Company from any and all claims.  No amounts have been accrued or charged to operations of the Company for the year ended December 31, 2006 as a result of these matters.  29


Global Precision Medical Inc.(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in US Dollars)December 31, 2006 and 20057.INCOME TAXESThe provision for income taxes reported differs from the amounts computed by applying the cumulative federal and provincial/state income tax rates to the loss before tax provision due to the following:  20062005Statutory tax rate34%34%Income taxes provision (benefit) at statutory tax rate$(10,081)$(16,656)Effect of higher tax rates of foreign jurisdictions--Effect of changes in tax rate-56,955Non-deductible items--Increase (decrease) in valuation allowance10,081(40,299)$-$-  The approximate tax effect of each type of temporary difference that gives rise to the Companys deferred tax assets are as follows:  20062005Operating loss carry-forward$208,397$265,808License727,897727,522936,294993,330Less: valuation allowance(936,294)(993,330)$-$-  The Company evaluates its valuation allowance requirements based on projected future operations.  When circumstances change and this causes a change in management's judgment about the recoverability of deferred tax assets, the impact of the change on the valuation allowance is reflected in current operations.

The tax benefit of net operating losses carried forward and the associated valuation allowance were reduced by $67,117 (2005 - $72,485), representing the tax effect of losses which expired in the year.

At December 31, 2006, the Company had estimated net operating losses carried forward of approximately $613,000 (2005 - $782,000) (expiring in various amounts over the period from 2007 to 2026) available to reduce future taxable income.   30       Global Precision Medical Inc.(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in US Dollars)December 31, 2006 and 20058.RELATED PARTY TRANSACTIONSIn addition to the related party transactions described elsewhere in these consolidated financial statements, during the year ended December 31, 2006, the Company paid officers and/or directors of the Company $nil in consulting fees (2005 - $1,218).All related party transactions have been recorded at the exchange amount, which is the amount of consideration established and agreed upon by the parties.  9.STATEMENT OF CASH FLOWS INFORMATIONa)The components of the net change in items other than cash related to current operating activities as reflected in the Consolidated Statements of Cash Flows are as follows:  For the period fromAugust 24, 1990For the years ended(inception) toDecember 31December 31200620052006Changes in non-cash working capital(cumulative)items:Receivables$2,715$2,865$(2,914)Prepaid expenses2,572(2,234)(4,067)Accounts payable2,821(36,073)18,177Accrued liabilities12,285(5,220)29,581$20,393$(40,662)$40,777  b)The components of the net change in items other than cash related to discontinued operations as reflected in the Consolidated Statements of Cash Flows are as follows:  For the period fromAugust 24, 1990For the years ended(inception) toDecember 31December 31,200620052006(cumulative)Loss from discontinued operations$-$-$(1,785,299)Add items not involving cash:Amortization--15,399Debt forgiveness--(14,374)Write-down of assets--4,146Non-cash stock compensation--40,000Changes in non-cash working capital itemsitems--72,974$-$-$(1,667,154)     31      ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE  None  ITEM 8A. CONTROLS AND PROCEDURES  As of December 31, 2006, under the supervision and with the participation of Lindsay Semple, the Company's Chief Executive Officer and Acting Chief Financial Officer, management has evaluated the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer and Acting Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of December 31, 2006. There were no changes in internal control over financial reporting that occurred during the last fiscal quarter covered by this report that have materially affected, or are reasonably likely to affect, the Company's internal control over financial reporting.  ITEM 8B. OTHER INFORMATION  None PART III  ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT  The following table sets forth certain information regarding the Companys directors and executive officers as of the date of this report:  Name and PositionAgeDirector of the Company SinceOther Offices Held(2)SEMPLE, Lindsay (1)61September 23, 2002Chief Executive OfficerELLIOTT, James (1)47September 23, 2002Chief Technology OfficerWEISS, Boris (1)41September 23, 2002- (1) Member of the Audit Committee (2) All officers were appointed September 23, 2002.  The following sets out the principal occupation, past five years business experience and other directorships held by each of the directors and executive officers of the Company:   Lindsay Semple (M.A. Econ.) is in charge of the day-to-day operations of the Company.  Mr. Semple has been engaged in the development and financing of a number of Vancouver-based companies in the resource industry.   He was Director of Minera Rayrock Inc. (TSE), from May 1993 to June 1998 during which time the Ivan/Zar copper mine was put into production in Chile.   James Elliott, director and Chief Technology Officer of the Company, holds a B.Sc. (University of British Columbia) and a B.A.Sc. in Bio-Resource Engineering and Masters of Engineering Science in Materials Engineering (University of Western Ontario).  He has extensive knowledge in the medical device industry and the regulatory approval process.  He has been Chairman, President and CEO of MDMI Technologies Inc. and Thermal Ablation Technologies Canada Ltd., both private medical research and development companies, since April 1998.  Boris Weiss, a director of the Company, has been President and Director of Advanced Mapping Group Ltd. (AMG), a private resource management, investment and consulting firm servicing a number of North and South American companies since July 1997. From April 1998 to June 2002, Mr. Weiss was employed on a contract basis as director of business development and marketing for UTAR Scientific Inc., a private technologies research and development firm through AMG Ltd.  32       The Audit Committee does not currently have an audit committee financial expert.  The Board of Directors does not have an audit committee financial expert at this time due to the fact that the Company has only limited operations and no revenues.  Under Section 16 of the Securities Exchange Act 1934, the Companys directors and executive officers and persons holding more than 10% of the Companys Common Stock are required to report their initial ownership of Common Stock and subsequent changes to that ownership to the Securities and Exchange Commission by specified due dates.  Based solely on a review of copies of such forms, or written representations of such persons, to the Companys knowledge all of these filing requirements were satisfied, with the exception of the following directors, officers or 10% shareholders, who failed to file required forms in a timely manner:  No. of forms not filed in a timely mannerNameDirector, Officer or 10% ShareholderForm 3Form 4Number of transactions reported late or not reportedJames ElliottDirector & Chief Technology Officer-12Lindsay SempleDirector & Chief Executive Officer-14Boris WeissDirector-12  With the exception of James Elliott the required filings have now been made.  Code of Ethics  The Company has not adopted a code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions in 2005 but is expected to do so in 2006.   ITEM 10. EXECUTIVE COMPENSATION  The following table sets forth all compensation awarded to, earned by or paid to the Companys Named Executive Officers by the Company, for the years ended December 31, 2006, 2005 and 2004.  Named Executive Officers are all individuals serving as the Companys Chief Executive Officer (CEO) or acting in a similar capacity during the last completed fiscal year, regardless of compensation level.  33       SUMMARY COMPENSATION TABLE  Name and
Principal PositionYear (1)Salary
($)Bonus
($)Stock Awards
($)Option Awards ($)Nonequity incentive plan compensation
($)Non-qualified deferred compensation earnings
($)All other compen-sation
($)Lindsay Semple,
CEO2006
2005
2004Nil
Nil
46,730Nil
Nil
NilNil
Nil
NilNil
Nil
NilNil
Nil
Nil(2)Nil
Nil
NilNil
Nil
Nil (1) Fiscal year ended December 31. (2) 525,000 Options issued during 2004 to replace options cancelled in the year. No additional compensation was recognized under variable accounting as the exercise price of the re-priced options exceeded the quoted market value of the Companys quoted stock.  No executive officer received cash compensation in excess of $100,000 during the fiscal years ended December 31, 2006, 2005 or 2004.  The Company has no employment agreements with its Executive Officers.   OUTSTANDING EQUITY AWRDS AT FISCAL YEAR-END TABLE  (Individual Grants)  The following table sets forth the unexercised options to the Companys Named Executive Officer during the fiscal year ended December 31, 2006:  NameNumber of securities unexercised options (#)
ExercisableNumber of securities unexercised options (#)
Un ExercisableEquity incentive plan awards: number of unearned shares, units or other rights that have not vested (#)Option exercise price ($)Option expiration dateLindsay Semple, CEO525,000 (2)--$0.40(1)01/29/09  (1) The difference between fair market value of the Companys Common Stock at the fiscal year end December 31, 2006 and the exercise price.  An option is in-the-money if the exercise price per share is less than the market value per share.  The option exercise price of $0.40 did not exceed the trading price of the Companys Common Stock during the fiscal year ended December 31, 2006.  (2) See Stock Option Plan Information, Stock Option, below. Options are fully vested.  34       AGGREGATED OPTION EXERCISES DURING THE MOST RECENTLY COMPLETED FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES  The Named Executive Officer(s) did not exercise any options during the most recently completed fiscal year ended December 31, 2005.  During the fiscal year ended December 31, 2004, 750,000 options exercisable at $1.00 per share were cancelled.  On January 30, 2004, 1,865,000 options were granted under the Plan, exercisable at $0.40 per share until January 30, 2009, fully vested on July 30, 2004.  Of these options, 1,100,000 were granted to directors (excluding those granted to the Named Executive Officer who is also a director) of the Company and 525,000 to the Named Executive Officer.  Subsequently, 450,000 of the new options granted to two former directors were cancelled.  STOCK OPTION PLAN INFORMATION  2002 Stock Option Plan  On August 28, 2002 the Board of Directors of the Company authorized the approval of the 2002 Stock Option Plan covering options to acquire up to 2,000,000 shares of Common Stock (the Plan).  The shareholders approved the Plan at the annual meeting held on September 23, 2002.  The Plan provides for the granting of stock options, including Incentive Stock Options ("ISOs") within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), and Non-Statutory Stock Options ("NSOs").  A Nonqualified Stock Option is a stock option that is not an Incentive Stock Option.  The term option used herein shall refer to Incentive Stock Options and Nonqualified Stock Options, collectively.  The Plan allows the Board of Directors, or a committee thereof at the Board's discretion (the Board), to grant stock options to officers, directors, key employees, and consultants of the Company and its affiliates (Participant).  An aggregate of 2,000,000 shares of Common Shares has been reserved for issuance upon exercise of the options granted under the Plan.  Pursuant to the Plan:  ISOs.  The per share price to be paid by the Participant at the time an ISO is exercised shall be determined by the Board, in its discretion, at the date of grant and shall be set forth in the Option Agreement; provided, however, that such price shall not be less than (i) 100% of the Fair Market Value of one (1) Share on the date the Option is granted, or (ii) 110% of the Fair Market Value of one (1) Share on the date the Option is granted if, at that time the Option is granted, the Participant owns, directly or indirectly (as determined pursuant to Section 424(d) of the Code), more than 10% of the total combined voting power of all classes of stock of the Company (or any parent or subsidiary corporation of the Company).  The period during which an ISO may be exercised shall be fixed by the Board in its sole discretion at the time such Option is granted; provided, however, that in no event shall such period exceed 10 years from its date of grant or, in the case of a Participant who owns, directly or indirectly (as determined pursuant to Section 424(d) of the Code), more than 10% of the total combined voting power of all classes of stock of the Company (or any parent or subsidiary of the Company), 5 years from its date of grant.  NSOs.  The per share price to be paid by the Participant at the time an NSO is exercised shall be determined by the Board, in its sole discretion.  35       The period during which an NSO may be exercised shall be fixed by the Board in its sole discretion at its date of grant; provided, however, that in no event shall such period exceed 10 years and one month from its date of grant.  The Board may suspend, terminate or amend the Plan at any time, provided, however, that Shareholder approval is required if and to the extent the Board determines that such approval is appropriate for purposes of satisfying Section 422 of the Code or Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended.  The Plan shall terminate at midnight (local Vancouver time) on June 26, 2012, and may be terminated prior thereto by Board action, and no Option shall be granted after such termination.  Notwithstanding the foregoing, no ISOs shall be granted after the expiration of 10 years from the earlier of the date of adoption of the Plan or the date of Shareholder approval.  Options outstanding at Plan termination may continue to be exercised in accordance with their terms.  Stock Options  During the fiscal year ended December 31, 2006 no options were granted. The following options were outstanding as of December 31, 2006:  Number of securities to be issued upon exercise of outstanding options, warrants and rightsWeighted-average exercise price of outstanding options, warrants and rightsNumber of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))(a)(b)(c)Equity compensation plans approved by security holders1,215,000$0.40585,000Equity compensation plans not approved by security holdersNoneN/AN/ATotal1,215,000$0.40585,000  COMPENSATION OF DIRECTORS  The Company has never compensated its directors for attending meetings and no consulting contracts have been entered into in consideration of any directors service on the Board. There are no employment contracts, termination of employment agreements, or change-in-control arrangements with any director.  ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT  The following table contains information with respect to the beneficial ownership of common stock, as of February 28, 2007, by (a) each person who is known by the Company to be the beneficial owner(s) of more than 5% of the outstanding shares of common stock, (b) each director or director nominee of the Company, (c) each of the executive officers of the Company named in the Executive Compensation, Summary Compensation Table, below, and (d) all directors, director nominees and executive officers of the Company as a group.  Persons that have the right to acquire, within 60 days of the date hereof, any shares in the Companys Common Stock through the exercise of any option, warrant or right, or otherwise, are shown in the following table.  The directors and officers were granted options in January 2004 and became fully vested July 30, 2004 (see Executive Compensation, Stock Options).  36       The Company has no subsidiaries and, therefore, no officer or director of the Company owned any stock in any subsidiary of the Company as of February 28, 2007.  Name and Address of Beneficial OwnerDesignation or
Positions HeldAmount and Nature of Beneficial OwnershipPercent of ClassGLENFIELD PARTNERS LIMITED
P.O. Box 3321
Road Town
Tortola VGB5%+ Shareholder3,155,78527.32%GOGNIAT, Ilona M. (1)
3784 Feurtersoey
Switzerland5%+ Shareholder2,508,34521.71%SEMPLE, Lindsay
#536  1489 Marine Drive
W. Vancouver, BC  V7T 1B8Director (3)
Chief Executive Officer(2)718,332 (3)5.95%ELLIOTT, James R. (7)
12051 Horseshoe Way, # 115
Richmond, BC  V7A 4V4Director (4)
Chief Technology Officer740,000 (4) (7)6.13%WEISS, Boris
1541 Ross Road
N. Vancouver, BC  V7J 1V5Director (5)125,000(5)1.08%LEDDING, Gregory
1360 Camwell Drive
W. Vancouver, BC V7S 2M55% Shareholder and
Former Director(6)560,750 (6)(7)4.77%All current directors, nominees for director and executive officers as a group
(3 persons)1,583,33212.60%  (1) I. Gogniat is a sibling of Lindsay Semple, director and CEO of the Company. (2) Named Executive Officer. (3) Of this amount, Mr. Semples spouse owns 58,666 common shares and Mr. Semple holds 134,666 common shares and 525,000 stock options exercisable at $0.40 per share. (4) Of this amount, Mr. Elliott owns 200,000 common shares and 525,000 stock options exercisable at $0.40 per share and his spouse owns 15,000 common shares (5) Mr. Weiss has 125,000 stock options exercisable at $0.40 per share. (6) Of this amount, 125,000 common shares are owned by Mr. Leddings spouse and Mr. Ledding holds 235,750 common shares. (7) Effective October 27, 2003, the Company entered into a consultancy agreement with each of James Elliott, director and Chief Technology Officer, and Gregory Ledding, a former director whereby each would receive 200,000 common shares in the common stock of the Company for services that have been performed or completed by October 27, 2004.  Effective June 6, 2005, Mr. Elliott released the Company from any obligation to issue 200,000 common shares of the Company to him. The 200,000 common shares due to Mr. Ledding have yet to be issued.  There is no arrangement known to the Company, the operation of which may at a subsequent date result in a change of control of the Company.   37      ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS  There were no transactions during the past two years, or proposed transactions in excess of $60,000, to which the Company was or is to be a party in which any director, executive officer, nominee for election as a director, 5% or greater shareholder or any member of the immediate family of the aforementioned persons had or is to have a direct or indirect material interest, other than the cash advance of $7,758 (2005-$89,554) by Lindsay Semple, President  to the Company to provide working capital during the year ended December 31, 2006. The amounts due to Mr. Semple for unpaid fees and advances are non-interest bearing and due on demand.  Management Relationships  Effective October 27, 2003, the Company entered into a consultancy agreement with each of James Elliott, director and Chief Technology Officer, and Gregory Ledding, director.  Each to receive 200,000 shares in the Common Stock of the Company for services that have been performed or completed. These shares were recorded as common stocks to be issued as at December 31, 2004 and 2003.  Subsequent to the fiscal year ended December 31, 2004, Mr. Elliott released the Company from all responsibilities and obligations to issue 200,000 common shares reserved for compensation for services provided to the Company in 2003. Mr. Elliott did not receive and will not demand any other consideration as compensation for these services in lieu of this release.  The Company entered into a consultancy agreement with Lindsay Semple, Chief Executive Officer, effective March 1, 2004 to March 1, 2006, to provide services consistent with that of the Chief Executive Officer in overseeing the day-to-day operations of the Company, and to execute the go-forward plan to commercialize the URO-Stent in the Worlds important medical markets; to oversee corporate and securities compliance and disclosure to the Board of Directors and to the Public; and to perform such other consultative services as may from time to time be agreed upon between the parties.  Under the terms of the consultancy agreement, Mr. Semple was to be paid a monthly fee of Cdn$6,000 and be reimbursed for reasonable expenses incurred in the execution of his duties as Chief Executive Officer.  In the event the Company is unable to pay the monthly fee, the debt is to be accrued and at the end of each three-month period the Company is to exchange shares for debt at the last private placement price less 10%. This agreement was terminated prematurely on December 31, 2004.  Related Party Transactions  On August 27, 2002, the Company entered into a consulting agreement with Ilona M. Gogniat, a greater than 5% shareholder of the Company and a sibling of Lindsay Semple, to assist the Company in satisfying debt settlement agreements that had been negotiated with respect to outstanding and overdue bills payable by the Company, to assist in effecting a change of business and management, thereby enhancing shareholder value.  These services were paid for by the issuance of 100,000 shares which were registered under the Securities Act of 1933 in a Form S-8 Registration Statement. Also in August 2002, Ms. Gogniat advanced $50,000 to the Company, which amount she subsequently forgave together with $9,273 already outstanding to her. Ms. Gogniat is currently the beneficial owner of 2,508,345 common shares of the Company.  Gregory Ledding, who was appointed a director of the Company on January 16, 2004 and resigned on December 6, 2004, received 7,150 Units of the December 2003 private placement as commission for the private placement.  Each Unit consisted of 1 common share and 1 share purchase warrant, such that two warrants permit the Unit holder to purchase one common share in the capital stock of the Company for a period of 2 years at US$0.60 during the first year or at US$1.00 in the second year.  38      ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K  (a) Exhibits. Exhibit No.  per Item 601 of Regulation SBFormerly filed as
Exhibit
No.The following documents were filed previously in the Companys Form 20-F/A  Amendment No. 2, Registration Statement3.11.01Certificate of Incorporation in British Columbia and Memorandum of the Company3.21.02Articles of the Company10.14.01Option to Purchase Agreement dated February 3, 1997 among the Subsidiary, Jerry Stocks, James Bright and Richard Hillberg relating to the Pavlak Claims10.24.02Option to Purchase Agreement dated February 2, 1997 among the Subsidiary, James Bright, Debbie Brown and Harvey Bellm relating to the Bluster Mine and Big Ledge Claims as amended on August 24, 1998 and on September 28, 199910.34.03Employment Agreement dated September 21, 1999 between the Company and Antonios Kripotos10.44.04Settlement Agreement effective July 14, 1999, to which is attached a mining agreement between the Subsidiary and John D. Bernt relating to the parties rights and obligations in respect of certain unpatented mining claims10.54.05Mining Agreement effective July 14, 1999 between the Subsidiary and John D. Bernt10.64.06Mining Lease and Option to Purchase Agreement effective November 1, 1998 between the Subsidiary and the Board of Regents of the University Community College System of Nevada relating to the Pick and Shovel OptionThe documents were filed previously in the Companys Annual Report on Form 20-F for the fiscal year ended December 31, 200010.74.07Amending Agreement dated September 30, 2000 to the Option to Purchase Agreement dated February 3, 1997, among the Subsidiary, James Bright, Debbie Brown and Harvey Bellm relating to the Bluster Mine and Big Ledge Claims, as amended on August 24, 1998 and on September 28, 199910.84.08Amending Agreement dated February 3, 2001 to the Option to Purchase Agreement dated February 3, 1997, among the Subsidiary, James Bright, Debbie Brown and Harvey Bellm relating to the Bluster Mine and Big Ledge Claims, as amended on August 24, 1998, on September 28, 1999 and September 30, 200010.94.091999 Combined Incentive and Nonqualified Stock Option PlanThe following documents were filed previously in the Companys Annual Report on Form 20-F for the fiscal year ended December 31, 200110.104.10Form 20, Report of Exempt Distribution, of 20,000 stock options granted to Linda Holmes on March 19, 200110.114.11Quitclaim of Unpatented Mining Claims to John D. Bernt  - December 2001 (SH and OR Claims)10.124.12Release of Mining Agreement between the Company and John D. Bernt, with respect to dropping the Bernt Claims  December 200110.134.13Memorandum of Assignment of Mining Lease and Option to Purchase Agreement for the Pick and Shovel Claims to John D. Bernt  December 200110.144.14Quitclaim dated January 16, 2002, with respect to the Big Ledge/Bluster claim group, from the Company to James Bright, Debbie Brown and Harvey Bellm10.154.15Quitclaim dated January 16, 2002, with respect to the Pavlak claims, from the Company to Jerry Stocks, James Bright, and Estate of Richard Hillberg   39       Exhibit No. per Item 601 of Regulation SBFormerly filed as Exhibit No.The following documents were filed in the Companys Annual Report on Form 20-F for the year ended December 31, 2002.3.21.03Certificate of Name Change from San Antonios Resources Inc. to Global Precision Medical Inc., dated October 15, 20023.41.04Certificate of Continuance from British Columbia into Wyoming, dated February 5, 20033.51.05BC Registrars final authorization of continuation into Wyoming, effective February 5, 200310.164.16Debt Waiver Agreement between the Company and Antonios Kripotos dated July 2, 2002.10.174.17Form of Debt Settlement Agreement between the Company and each of I. Gogniat and T. Ma, dated August 27, 200210.184.18Form of Consultant Compensation Agreement between the Company and each of I. Gogniat and Lindsay Semple, dated August 27, 200210.194.19Letter of Intent between the Company and Global Medical Sciences Ltd. dated August 28, 2002 granting the Licence to the Company10.204.20Licence and Joint Product Development Agreement between the Company and Global Medical Sciences Ltd. dated September 23, 2002 granting the Licence to the Company10.214.21Assignment of Rights to the Licence from the Company to its wholly-owned subsidiary, San Antonios Resources (USA) Inc., dated September 23, 200210.224.22Form of Combined Incentive and Nonqualified Stock Option Agreement, dated September 23, 2002, between the Company and: Michel Coderre, Linda Holmes, Lindsay Semple, Boris Weiss and Dr. A. Faouzi Zerrouk10.234.23Form of Combined Incentive and Nonqualified Stock Option Agreement, dated September 23, 2002, between the Company and James Elliott10.244.242002 Combined Incentive and Non-Qualified Stock Option Plan10.254.25Form of Subscription Agreement between T. Ma and the Company, dated November 28, 2002 for 66,667 Units @ US$0.7510.264.26Form of Warrant Certificate between the Company and T. Ma dated December 6, 200210.274.27Form of Consulting Agreement between the Company and Robert Tomjlenovic dated October 3, 2002.10.284.28Report of Exempt Distribution, British Columbia Securities Commission Report on Form 45-902F, dated January 31, 200310.294.29Transfer of Global Precision Medical (USA) to A. Kripotos and Relinquishment of Assets, Rights or Property held by Global Precision Medical (USA) Inc. dated February 5, 2003  40       10-KSB
Exhibit No.The following documents were filed in the Annual Report on Form 10-KSB for the year ended December 31, 20034.1Form of Subscription Agreement between the Company and 524687 B.C. Ltd., Myrna Everest, Borys Flak, Thomas A. Dickson, Robin Caldwell, Douglass B. Yackel, Jacqueline A. Semple, Carolyn E. Ledding, Dianne E. Hastings, James Burchill, Casey Sarter, John L. Heroux, Reagan T. Kehoe, Erwin Born, Scott C. Kehoe, Andre Yackel, Jennifer Huggins, Vance Minosky, Leonard T. Doust, Thomas B. Doust, Bruce A. Katz, Czeslawa Abldzewicz, George Angelomatis, Greg Ledding and Calvin Ross, dated November 30, 20034.2Form of Warrant Certificate Series B between the Company and Myrna Everest, Borys Flak, Thomas A. Dickson, Robin Caldwell, Douglass B. Yackel, Jacqueline A. Semple, Carolyn E. Ledding, Dianne E. Hastings, James Burchill, Casey Sarter, John L. Heroux, Reagan T. Kehoe, Erwin Born, Scott C. Kehoe, Andre Yackel, Jennifer Huggins, Vance Minosky, Leonard T. Doust, Thomas B. Doust, Bruce A. Katz, Czeslawa Abldzewicz, George Angelomatis, Greg Ledding and Calvin Ross, dated December 11, 20034.3Form of Stock Option Agreement dated January 30, 2004, between the Company and Michel Coderre, James Elliott, Linda Holmes, Gregory Ledding, Lindsay Semple, Boris Weiss, Ellen Dearnley and Faouzi Zerrouk10.1Consortium Letter of Understanding between the Company and Global Medical Sciences Limited , MDMI Technologies Inc. and Minimal Invasive Technology Ltd., dated August 1, 200310.2Amendment dated December 2, 2003, to the Licence Agreement between the Company and MDMI Technologies Inc., granting an exclusive worldwide License to the Company to apply MDMI Technologies Inc.s proprietary Thermal Ablation Technology to augment the Companys URO-Stent in the treatment of Benign Prostate Hyperplasia10.3Consulting Agreement between the Company and James Elliot, dated October 27, 200310.4Consulting Agreement between the Company and Gregory Ledding, dated October 27, 200310.5Consulting Agreement between the Company and Linda Holmes, dated February 1, 200410.6Consulting Agreement between the Company and Ellen Dearnley, dated January 30, 200410.7Services Agreement between the Company and Faouzi Zerrouk, dated April 14, 200410.8Consulting Agreement between the Company and Lindsay Semple, dated March 1, 200416.1Letter on Change of Certifying Accountant (Deloitte Touche LLP) dated March 8, 2004, as previously filed as Exhibit  16.1 on Form 8-K, March 11, 2004.10-KSB
Exhibit No.The following documents are filed with this Annual Report on Form 10-KSB for the year ended December 31, 200631.1Certification of the Chief Executive Officer and Acting Chief Financial Officer Pursuant to Rule 13a-14 or 15d-14 of The Securities Exchange Act of 1934, as adopted pursuant to Section 302 of The Sarbanes-Oxley Act of 200232.1Certification of the Chief Executive Officer and Acting Chief Financial Officer pursuant to 18 U.S.C.  Section 1350 as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002   (b) Reports on Form 8-K.  During the fourth quarter of 2006, no reports on Form 8K were filed.    41      ITEM 14. PRINCIPAL ACCOUNTANTS FEES AND SERVICES  Audit Fees  Year ended December 31Fees for audit of annual and quarterly review of financial statements$CDN$US2006$31,300(1)$26,983(1)2005$33,834$27,924  Note 1 December 31, 2006 audit fees are expected to be approximately CDN$31,300 (US$26,983). To date of filing, CDN $21,300 (US$18,362) has been billed.  Audit-Related Fees  None.  Tax Fees  Year ended December 31Fees for tax services$CDN$US2006NilNil2005NilNil  The Company is in the process of filing all statutory tax returns for all outstanding tax years. Any accumulated late fees or penalties, if assessed, will be paid immediately.  All Other fees  None.  Audit Committee Prior Approval Policies  The Companys Audit Committee Charter provides that the audit committee must pre-approve the engagement of the Companys principal independent accountants to provide non-audit services.  The Companys Audit Committee has not established any policies or procedures other than those required by SEC rules on auditor independence. No non-audit services were provided by the Company's principal independent accountants in 2006.  42      SIGNATURES  Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  GLOBAL PRECISION MEDICAL INC.  By: /s/ Lindsay Semple Name: Lindsay Semple Title: Chief Executive Officer  Date: March 31, 2007  In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. Each individual whose signature appears below hereby designates and appoints Lindsay Semple as such person's true and lawful attorney-in-fact and agent (the "Attorney-in-Fact") with full power of substitution and re-substitution, for each person and in such person's name, place and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-KSB, which amendments may make such changes in this Annual Report on Form 10-KSB as the Attorney-in-Fact deems appropriate and to file each such amendment with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto the Attorney-in-Fact full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as such person might or could do in person, hereby ratifying and confirming all that the Attorney-in-Fact, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.   By: /s/ Lindsay Semple March 31, 2007 Title: Chief Executive Officer, Acting Chief Financial Officer and Director  By: /s/ James Elliott March 31, 2007 Title: Director  By: /s/ Boris Weiss March 31, 2007 Title: Director     43