##### Table of Contents

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# UNITED
STATES SECURITIES AND EXCHANGE COMMISSION

# WASHINGTON, D.C.
20549FORM 10-KSB

|[X] | ANNUAL
REPORT UNDER SECTION 13 OR 15(d) OF THESECURITIES 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
NUMBER: 0 - 22083

GLOBAL
MED TECHNOLOGIES, INC.(Name of small business issuer in its charter)

|                                |  | 
|------------------------------- |  | 
|Colorado                        |  | 
|(State or other jurisdiction of |  | 
|incorporation or organization)  |  | 
|                                |  | 

12600
West Colfax, Suite C-420, Lakewood, Colorado 80215(Address of principal executive
offices) (Zip Code)

Registrants
telephone number: (303) 238-2000

Securities
to be registered under Section 12(b) of the Act: None

Securities
registered under Section 12(g) of the Act:

Common
Stock, $.01 par value

Check whether
the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 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 at least the past 90 days.

Yes   [X]     
No   [   ]

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

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

State
issuers revenues for its most recent fiscal year $12.362 million.

Aggregate
market value of voting stock held by non-affiliates as of February 21, 2007;
$9,003,014 based on the closing bid priceof $0.67 per share as of that
date.

Shares
of common stock, $.01 par value, outstanding as of February 22, 2007,
23,211,982.

The
Company is a non-accelerated filer.

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

Documents
incorporated by reference: See Part III, Item 13, and EXHIBIT INDEX
on page 34 for a listing of documents incorporated by reference into this Annual
Report on FORM 10-KSB.





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##### Table of Contents

# GLOBAL MED
TECHNOLOGIES, INC.FORM 10-KSBDECEMBER 31, 2006

TABLE OF CONTENTS



|Item     |  | Page                                                                                                                                        
|-------- |  | --------------------------------------------------------------------------------------------------------------------------------------------
|PART I   |  |                                                                                                                                             
|         |  |                                                                                                                                             
|1.       |  | Business                                                                                                                                    
|         |  |                                                                                                                                             
|2.       |  | Properties                                                                                                                                  
|         |  |                                                                                                                                             
|3.       |  | Legal Proceedings                                                                                                                           
|         |  |                                                                                                                                             
|4.       |  | Submission of Matters to a Vote of Security Holders                                                                                         
|         |  |                                                                                                                                             
|PART II  |  |                                                                                                                                             
|         |  |                                                                                                                                             
|5.       |  | Market for Registrants Common Equity and Related Stockholder Matters                                                                       
|         |  |                                                                                                                                             
|6.       |  | Managements Discussion and Analysis of Financial Condition and Results of Operation                                                        
|         |  |                                                                                                                                             
|7.       |  | Financial Statements                                                                                                                        
|         |  |                                                                                                                                             
|8.       |  | Changes In and Disagreements with Accountants on Accounting and Financial Disclosure                                                        
|         |  |                                                                                                                                             
|8A.      |  | Control and Procedures                                                                                                                      
|         |  |                                                                                                                                             
|         |  |                                                                                                                                             
|PART III |  |                                                                                                                                             
|         |  |                                                                                                                                             
|9.       |  | Directors and Executive Officers, Promoters and Control Persons, Compliancewith Section 16(a) of the Exchange Act of the Registrant         
|         |  |                                                                                                                                             
|10.      |  | Executive Compensation                                                                                                                      
|         |  |                                                                                                                                             
|11.      |  | Security Ownership of Certain Beneficial Owners and Management and Related StockholderMatters Certain Relationships and Related Transactions
|         |  |                                                                                                                                             
|12.      |  | Certain Relationships and Related Transactions                                                                                              
|         |  |                                                                                                                                             
|13.      |  | Exhibits, Financial Statements, Schedules and Reports on Form 8-K                                                                           
|         |  |                                                                                                                                             
|14.      |  | Principal Accountant Fees and Services                                                                                                      
|         |  |                                                                                                                                             
|         |  | SIGNATURES                                                                                                                                  
|         |  |                                                                                                                                             

2



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##### Table of Contents

PART I

ITEM 1.     
DESCRIPTION OF BUSINESS

GENERAL
DEVELOPMENT OF BUSINESS

Global Med
Technologies, Inc. was organized under the laws of the State of Colorado in December 1989.

In 1995, Global
Med Technologies,  Inc. merged with the Wyndgate Group, Inc.  (Wyndgate).
Wyndgate operates as a  division of Global Med  Technologies,  Inc. and designs,
develops,  markets and  supports  information  management  software  products for blood
banks,  hospitals,  centralized  transfusion  services  and other  healthcare  related
facilities.

During
1999, Global Med Technologies, Inc. formed a majority-owned subsidiary,
PeopleMed.com, Inc. (PeopleMed), a Colorado corporation, to develop
a software application designed to give HMO providers and other third party
payers, access to clinical information for chronic disease patients. This
application allows doctors and other medical employees access to a
patients history. PeopleMed offers chronic disease management as an
Application Service Provider (ASP). PeopleMeds system uses the
Internet to coordinate sources and users of a patients clinical
information, including laboratory, pharmacy, primary and specialty care
providers, claims and medical records.

PeopleMed is
owned 83% by Global Med  Technologies,  Inc.,  11% by the Companys  Chairman and
CEO, and 6% owned by  third parties.  Global Med  Technologies,  Inc. and PeopleMed are
referred to collectively  herein as the Company or Global Med.

PRINCIPAL
PRODUCTS AND THEIR MARKETS

Global
Med designs, develops, markets and supports information management software
products for blood banks, hospitals, centralized transfusion centers and other
health care related facilities. Revenues are derived from the licensing of
software, maintenance, the provision of consulting and other value added support
services, and the resale of software obtained from vendors.

Global
Med has two main products in its Wyndgate division: SafeTrace® and SafeTrace
Tx®. SafeTrace is used to assist community blood centers, hospitals, plasma
centers and outpatient clinics in the U.S. in complying with the quality and
safety standards of the Food and Drug Administration (the FDA) for
the collection and management of blood and blood products. SafeTrace Tx is a
transfusion management information system that is designed to be used by
hospitals and centralized transfusion centers to help insure the quality of
blood transfused into patient-recipients. SafeTrace Tx provides electronic
cross-matching capabilities to help insure blood compatibility with
patient-recipients and tracks, inventories, bills and documents all activities
with blood products from the time blood products are received in inventory to
the time the blood products are used or returned to blood centers. SafeTrace Tx
complements SafeTrace, because the combined SafeTrace Tx and SafeTrace software
system is now able to integrate hospitals with blood centers and provide a
vein-to-vein® tracking of the blood supply. SafeTrace Tx
received FDA clearance on January 29, 1999.

SafeTrace
and SafeTrace Tx have been cleared by the FDA for sale in the United States. The
Companys development efforts are focused on developing new software
products as well as continuously improving its existing products. The Company is
nearing the completion of the development cycle of these products, and the
Company intends to bring these products to market. Because some of the products
the Company is developing are considered medical devices by the Food and Drug
Administration (FDA), the Company will be required to obtain FDA
510(k) clearance for these medical devices prior to their sale or introduction
into the market.

In
1999, Global Med introduced PeopleMed. PeopleMed supports chronic disease
management as an ASP. PeopleMeds system uses the Internet to coordinate
sources of information and users of a patients clinical information,
including laboratory, pharmacy, primary and specialty care providers, claims,
and medical records.

All of
Global Meds revenues were generated from providing products and services
to end users located throughout the United States, Canada, Puerto Rico and
Africa.

3



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##### Table of Contents

COMPETITION

There
is substantial competition in all aspects of the blood bank and hospital
information management industry. Numerous companies are developing technologies
and marketing products and services in the healthcare information management
area. Many competitors in the blood bank industry have received FDA clearance
for their products. Many of these competitors have been in business longer and
have substantially greater personnel and financial resources than Global Med.
Global Med believes it is able to compete based on the current technological
capabilities of SafeTrace and SafeTrace Tx.

CUSTOMERS

During
the years ended December 31, 2006 and 2005, Global Med had customers
located in numerous locations across the United States, Africa, Canada and
Puerto Rico, and sales are not concentrated in any geographic or economic
region. PeopleMeds customer is located in the State of Colorado.

DEPENDENCE
ON MAJOR CUSTOMERS

As of
January 31, 2007, Global Med, through its Wyndgate division, had over 247
customers. It intends to continue to target domestic and international blood
centers, plasma centers and hospital donor and transfusion centers. During the
years ended December 31, 2006 and 2005, there were no customers accounting
for more than 10% of revenues.

Although
the Company had no individual customers accounting for more than 10% of
revenues, one of the Companys marketing partners that sells the
Companys products directly to its customers accounted for 26.7% and 22% of
revenues during 2006 and 2005, respectively. In addition, this same marketing
partner accounted for 58.9% and 38.3% of gross accounts receivable as of
December 31, 2006 and 2005, respectively.

Royalty
And Commission Agreements

The
Royalty Group. Pursuant to a development agreement between
Wyndgate and the Royalty Group, Wyndgate developed SafeTrace and must make
royalty payments to the Royalty Group based on a percentage of Wyndgates
SafeTrace license fees collected, measured by cash received from SafeTrace
licensees, net of certain fees and charges. The royalty schedule is based upon
the first date of SafeTrace license invoicing, which was September 14,
1995. The royalty amounts are computed as a percentage of software license fees
collected. For the years ended December 31, 2006 and 2005, Global Med
expensed $14 thousand and $8 thousand, respectively, and these amounts are
included in the cost of revenues in the statement of operations. Global Med has
accrued but not paid any royalties for the years ended December 31, 2006
and 2005. As of December 31, 2006, the outstanding royalty obligation was
approximately $137 thousand.

Siemens
Medical Solutions Health Services Corporation. During
September 1999, Global Med entered into a non-exclusive marketing and
support agreement with Shared Medical Systems Corporation (SMS).
Under this agreement, SMS markets Global Meds blood bank products on a
preferred basis. Global Med will pay a commission to SMS based on the software
license fee for each sale SMS has facilitated. This agreement was automatically
renewed and is still in effect.

Sysmex
Infosystems America, Inc. Global Med entered into a non-exclusive
marketing and support agreement with Sysmex Infosystems America, Inc.
(SIA). Under this agreement, SIA will market Global Meds blood
bank products on a preferred basis. Global Med will pay a commission to SIA
based on the software license fee for each sale SIA has facilitated. This
agreement was automatically renewed and is still in effect.

GE
Medical (aka Triple G Systems Group, Inc.). Global Med entered
into a non-exclusive marketing and support agreement (the Non-Exclusive
Agreement #2) with GE Medical (aka Triple G Systems Group,
Inc.) (Triple G). Triple G, under the Non-Exclusive
Agreement #2, markets Global Meds SafeTrace Tx products on a preferred
basis. Global Med will pay to Triple G a commission based on a percentage of the
software license fee that Triple G facilitates through their marketing efforts.
This agreement was automatically renewed and is still in effect.

4



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##### Table of Contents

National
Jewish Medical and Research Center. Global Med, through its
PeopleMed subsidiary, entered into a development and non-exclusive marketing
agreement with National Jewish Medical and Research Center (National
Jewish). Under the terms of this agreement, Global Med will pay National
Jewish a royalty for all sales of PeopleMeds products that use National
Jewishs protocols. In addition, in February 2002, PeopleMed signed a Sales
and Marketing Agreement with National Jewish, whereby National Jewish will be
paid a commission for sales of PeopleMeds products facilitated by National
Jewish. The initial term of this agreement expired and this agreement has been
automatically renewed. During the term of this agreement, there have been no
royalties paid to National Jewish.

Cardiovascular
Disease Management, LLC. Global Med, through its PeopleMed
subsidiary, entered into a development and non-exclusive marketing agreement
with Cardiovascular Disease Management (CVDM). Under the terms of
this agreement, Global Med will pay CVDM a royalty for all sales of
PeopleMeds products that use CVDMs protocols. During the term of
this agreement, there have been no royalties paid to CVDM.

Misys
Hospital Systems, Inc. Global Med entered into a non-exclusive
marketing and support agreement with Misys Hospital Systems, Inc.
(Misys). In the Agreement, Global Med granted to Misys the
non-exclusive and non-transferable worldwide rights, excluding the African
continent and the following countries; India, Indonesia, Bangladesh, Burma,
Cambodia, Laos, Malaysia, Mongolia, Nepal, North Korea, Philippines, Singapore,
Shri Lanka, South Korea, Taiwan, Thailand, Vietnam, China (including Hong Kong
and Macau); non-exclusive and non-transferable right to market, promote, endorse
and assist Wyndgate in the sale and license of its blood donor product,
SafeTrace, to Misys clients. Global Med maintains all responsibilities for the
licensure, delivery, installation, warranty or support between Wyndgate and the
Licensee for all contracts facilitated under the terms of this agreement. Global
Med will pay a commission to Misys based on the software license fee for each
sale Misys has facilitated. This agreement was automatically renewed and is
still in effect. During the term of this agreement, there have been no royalties
paid to Misys.

McKesson
Information Solutions LLC. Global Med entered into a Value Added
Marketing Agreement (McKesson Agreement) with McKesson Information
Solutions LLC, a division of McKesson Corporation, to provide Wyndgates
SafeTrace Tx (the Software) advanced transfusion management system
as Horizon Blood Bank, as a privately-labeled (OEM) module to
be separately licensed with McKessons Horizon Lab solution. Horizon
Blood Bank serves as a tool to help organizations improve patient safety by
automating the management and tracking of patient transfusion services.

The
McKesson Agreement grants McKesson the right to privately brand SafeTrace Tx in
the United States, Canada, and Mexico. The McKesson Agreement also grants
McKesson rights to market the Software to McKessons hospital information
system, clinical systems and ancillary systems customers. The McKesson Agreement
does not prevent Wyndgate from pursing sales opportunities through its existing
channel partner base as provided and/or required by those agreements. Wyndgate
is not required and will not inform McKesson of the opportunities brought to
Wyndgate by its channel partners.

The
McKesson Agreement requires Wyndgate and McKesson to integrate certain aspects
of their respective software products. Wyndgate and McKesson have agreed that
certain aspects of their joint software development will be unique to one
another, and not available to any other Global Med channel partner or
non-McKesson customers. In light of these grants of exclusivity, McKesson has
agreed to certain revenue commitments in order to maintain their marketing
rights in terms of the increased software product functionality. The revenue
commitments include software license fees, implementation services fees, and
maintenance fees.

In the
event that McKesson is unable to meet certain revenue commitments, McKesson has
the right to purchase prepaid license fees from Wyndgate in order to maintain
its marketing rights. In the McKesson Agreement, Wyndgate has agreed to notify
McKesson, as soon as reasonably possible, if any entity makes a proposal to
acquire a majority share in, or full ownership of, Global Med or the Software.
McKesson would have the right within ten (10) days to also make an offer after
receipt of such notice. Global Med has no obligation to accept such offer. The
McKesson Agreement grants McKesson the right to participate in meetings that
relate to future development of the Software. Wyndgate is required to provide
frequent and timely communications on the path of the Software. Wyndgate and
McKesson have agreed to certain enhancements to the Software. The McKesson
Agreement provides for McKesson to pay Wyndgate certain fees for the licensing
of the Software, performance of implementation and maintenance services by
Wyndgate for McKessons customers using the Software.

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Certain
terms of the McKesson Agreement are not provided because they are proprietary in
nature and are subject to confidentiality and non-disclosure provisions under
the McKesson Agreement.

Paratech,
LLC. Global Med, through its PeopleMed subsidiary, entered into a
non-exclusive marketing agreement with Paratech, LLC. (Paratech).
Under the terms of this agreement, Global Med will pay Paratech a commission for
sales of PeopleMeds products they facilitate.

Government
Approval And Regulation

Global
Meds products and services are subject to regulations adopted by
governmental authorities, including the FDA, which governs blood center computer
software products regulated as medical devices. The FDA requires all blood
tracking application software vendors to submit a 510(k) application for review.
The application process for FDA review and compliance with FDA guidelines
relates to computer software products regulated as medical devices. The FDA
considers software products intended for the following to be medical devices:
(i) use in the manufacture of blood and blood components; or (ii) maintenance of
data used to evaluate the suitability of donors and the release of blood or
blood components for transfusion or further manufacturing. As medical device
manufacturers, Global Med and its competitors are required to register with the
Center for Biologics Evaluation and Research (CBER), list their
medical devices, and submit a pre-market notification or application for
pre-market review. In April 1997, Global Meds Wyndgate division
received notification from the FDA of its finding of substantial
equivalence of SafeTrace. This determination provides a 510(k) clearance
and permits Global Med to continue to market SafeTrace. On January 29,
1999, the 510(k) clearance was received for SafeTrace Tx.

In
addition, Global Med is required to follow applicable Quality System Regulations
(QSR) of the FDA, which include testing, control and documentation
requirements, as well as similar requirements in other countries, including
International Standards Organization (ISO) 9001 standards. In 1996,
Congress passed legislation that impacted the healthcare information management.
The Healthcare Information Portability and Accountability Act
(HIPAA) requires the Department of Health and Human Services
(HHS) to enact standards for information sharing, security and
patient confidentiality. Although HHS has not issued clarification on many of
the topics under HIPAA, Global Med believes these regulations will have an
important impact on requiring advanced management information systems that will
enable various healthcare organizations to comply with emerging requirements.

HIPAA
contains provisions regarding the confidentiality and security of patient
medical record information. Standards for the electronic handling of health data
and security of patient information became effective in 2000. This legislation
requires the Secretary of Health and Human Services, or HHS, to (i) adopt
national standards for electronic health information transactions, (ii) adopt
standards to ensure the integrity and confidentiality of health information, and
(iii) establish a schedule for implementing national health data privacy
legislation or regulations. The standards and legislation will impact the
customers ability to obtain, use or disseminate patient information, which
will extend to their use of Global Meds products. Global Med believes that
the proposed standards issued to date would not materially affect the business
of Global Med. Global Med cannot determine the potential impact of the standards
that might finally be adopted.

RELATED
PARTIES

Pursuant
to a Stock Purchase Agreement, dated December 16, 2005 between the Company
and Global Med International Limited (GMIL), the Companys
outstanding debt with GMIL in the amount of $528,700, the outstanding Series AA
Preferred Stock in the amount of $3.5 million, outstanding common shares
numbering 4.360 million and the outstanding warrants to purchase 11.186 million
shares of common stock were paid off, redeemed, or repurchased, respectively,
for $8 million using the proceeds of the sales of shares Series A Preferred
Stock. In addition on December 16, 2005, the Company paid off all of the
accrued interest and dividends it owed GMIL in the amount of $86 thousand and
$226 thousand, respectively. In addition, certain new investors purchased 6.350
million common shares from GMIL directly. In addition, all of the six members of
the Companys Board of Directors nominated by GMIL resigned. As a result of
the above transaction, GMIL is no longer considered a related party of the
Company. Prior to this above described transaction, Global Med was financed
primarily through lending arrangements with GMIL. These lending arrangements
were originated by eBanker USA.com, Inc. (eBanker), transferred,
along with eBankers ownership in Global Med, to Global Med China &
Asia Limited (GMCAL) in October 2002, and then the lending
arrangements were subsequently transferred to GMIL in September 2003. Until
November 28, 2001, eBanker was a consolidated subsidiary of eVision
International, Inc. (eVision). eVision is majority owned by China
Credit Holdings Limited (China Credit formerly known as Heng Fung
Holdings Limited) and its subsidiaries, Online Credit Limited (Online
Credit) and Heng Fung Singapore Pte. Limited (Heng Fung
Singapore). Until November 2001, eVision was also a shareholder of
Global Med. eBanker through its subsidiary, GMCAL, was a shareholder of Global
Med. Additionally, eVision and GMCAL each held warrants to acquire 1 million and
11.186 million shares, respectively, of Global Meds common stock with
exercise prices that range from $0.25-$0.50 per share. In November 2000,
eBanker and Global Med entered into a series of equity transactions that
resulted in Global Med becoming a consolidated subsidiary of eBanker and eVision
effective November 2000.

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As a
result of these transactions and the relationships that existed until December
16, 2005, the financial condition and results of operations for Global Med
during that period of time may not have necessarily been indicative of those
that would have resulted if Global Med had been unaffiliated with these
entities.

Debt
Conversion

Pursuant
to a Stock Purchase Agreement, dated as of December 16, 2005 between the
Company and GMIL, the Companys outstanding debt with GMIL in the amount of
$528,700, the outstanding Series AA Preferred Stock in the amount of $3.5
million, outstanding common shares numbering 4.360 million and the outstanding
warrants to purchase 11.186 million shares of common stock were paid off,
redeemed, or repurchased, respectively, for $8 million using the proceeds of the
Series A. In addition, certain new investors purchased 6.350 million common
shares from GMIL directly. In addition, all of the six members of the
Companys Board of Directors nominated by GMIL resigned. As a result of the
above transaction, GMIL is no longer considered a related party of the Company
effective December 16, 2005.

Employees

As of
February 9, 2007, Global Med had 83 full-time employees, consisting of 2
employees in the corporate offices in Lakewood, Colorado and 50 employees at
Wyndgates offices near Sacramento, California and the remainder are spread
throughout the United States. Global Med has employment agreements with certain
personnel. Global Meds employees are not represented by a labor union or
subject to collective bargaining agreements. Global Med has never experienced a
work stoppage and believes that its employee relations are satisfactory.

AVAILABLE
INFORMATION

Global
Meds Annual Report on Form 10-KSB, Quarterly Reports on Form 10-QSB,
Current Reports on Form 8-K and amendments to reports filed pursuant to Sections
13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, are
available on the Securities and Exchange Commissions website:
http:/www.sec.gov. Additional information about the Company is available at
Global Meds website at http://www.globalmedtech.com.

Our
common stock is currently trading on the OTC Bulletin Board. OTC Bulletin Board
stocks are not required to send annual reports directly to their shareholders.
Our shareholders have direct electronic access to all of our SEC filings via our
website at www.globalmedtech.com or via the SEC website at www.sec.gov. Global
Med does send proxy filings to our shareholders as matters are voted on by all
of our shareholders. When Global Med does send information to its shareholders
that relates to our annual or interim results, this annual financial information
does contain audited information on which an opinion has been issued or interim
information that has been reviewed.

ITEM 2.     
DESCRIPTION OF PROPERTIES

As of
February 2007, the Company occupied two primary locations. The Company occupies
approximately 1,252 square feet of office space in Lakewood, Colorado and the
lease expires on February 14, 2010. The Company leases approximately 15 thousand
square feet of office space in El Dorado Hills, California, expiring on August
31, 2013.

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##### Table of Contents

ITEM 3.     
LEGAL PROCEEDINGS

In
September 2002, Global Med filed a lawsuit against Donnie L. Jackson, Jr.,
Global Meds former Vice President of Sales and Marketing. Global Med
alleges, among other things, that prior to his resignation in July 2002 Mr.
Jackson misappropriated certain trade secrets of Global Med. After leaving
Global Med, Mr. Jackson became a management employee of one of Global Meds
competitors. On March 30, 2005, the Superior Court of the State of
California in and for the County of El Dorado granted the motion for summary
judgment for Donnie L. Jackson, Jr. On September 1, 2005, the Company
deposited $1.004 million with the Superior Court in the State of California in
the County of El Dorado. This deposit represents potential fees and
attorneys costs the Company could be required to pay in the event the
Company does not prevail on appeal. The $1.004 million is classified as a
Deposit in escrow on the Companys balance sheet as of December
31, 2006. Based on external evidence and the advice of legal counsel, the
Company has determined that it is more likely than not that the Company will be
required to pay the $1.004 million that is currently classified as a
Deposit in escrow. As a result, the Company expensed the amount of
the Deposit in escrow and set up a liability for $1.004 million in
the form of Litigation accrual as of December 31, 2005. The Company
appealed the judges decision and in December 2006, the summary judgment
was reversed by the California Court of Appeals and the matter was remanded to
the trial court. Unless Mr. Jackson persuades the appellate panel to rehear the
case or persuades the California Supreme Court to review it, the case will be
remanded for trial as directed in the opinion. Global Med believes that the
California Appellate Courts opinion may result in the return of the $1.004
million deposit the Company made in September 2005 with the Superior Court in
the State of California. In the event the Company prevails, the Company could
recognize a reduction in expenses ranging between $0 and $1.004 million.

ITEM 4.     
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There
were no matters submitted to a vote of the security holders.

# PART
II

ITEM 5.     
MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Market
Information

The
Companys common stock commenced trading on the Nasdaq Small-Cap Market in
1997. In 1998, the Companys common stock and warrants were delisted from
the Nasdaq Small-Cap Market, and commenced trading on the OTC Bulletin Board.
OTC Bulletin Board Market quotations reflect inter-dealer prices, without retail
mark-up, markdown or commission, and may not necessarily represent actual
transactions.

The
following table sets forth the quarterly high and low bid prices for the
Companys common stock for the two years ended December 31, 2006 and 2005.

# COMMON STOCK

|                                               | FISCAL YEAR 2006 |      
|---------------------------------------------- | ---------------- | -----
|
|First Quarter (January 2006 to March 2006)     |                  | $1.03
|Second Quarter (April 2006 to June 2006)       |                  | $0.99
|Third Quarter (July 2006 to September 2006)    |                  | $0.70
|Fourth Quarter (October 2006 to December 2006) |                  | $0.80
|
|
|First Quarter (January 2005 to March 2005)     |                  | $2.57
|Second Quarter (April 2005 to June 2005)       |                  | $2.00
|Third Quarter (July 2005 to September 2005)    |                  | $1.80
|Fourth Quarter (October 2005 to December 2005) |                  | $1.35

Holders

As of
December 31, 2006, the Company had approximately 139 holders of record of the
Companys common stock.

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##### Table of Contents

Dividends

Common
Stock

The
payment of dividends by the Company is within the discretion of its Board of
Directors and depends in part upon the Companys earnings, capital
requirements and financial condition. Since its inception, the Company has not
paid any dividends on its common stock and does not anticipate paying such
dividends in the foreseeable future. The Company intends to retain earnings, if
any, to finance its operations or make acquisitions. In accordance with the
terms of the Companys Series A Convertible Preferred Stock, the Company
cannot issue dividends on the common stock while the Series A is outstanding
unless an equal dividend is declared on the Series A. The dividend on the Series
A would be calculated by determining the number of common shares the Series A is
convertible into and then applying the same dividend to the Series A that was
provided to the common shareholders.

Preferred
Stock

The
Company has 9,975 shares of Series A Preferred Stock that are outstanding as of
February 20, 2007. There are currently no dividends on the preferred stock.

Recent
Sales of Unregistered Securities

During
the year ended December 31, 2006, Global Med did not issue any unregistered
shares of common stock.

During
the year ended December 31, 2005, Global Med issued unregistered common
stock or common stock equivalents. On December 16, 2005, the Company authorized
the issuance of 9,975 shares of Series A Preferred Stock that are convertible
into 13,854,167 shares of common stock. In addition, the recipients of the
Series A Preferred Stock received the rights to warrants to purchase 10,390,62
shares of common stock.

All
investors participating in private placements for cash were accredited
investors within the meaning of Regulation D. In addition, the Company
noted that there are several categories of recipients of these shares. These
include investors for cash, officers, directors, consultants, litigants and
former shareholders of private companies acquired by Global Med.
Global Med believes that these transactions complied in all respects with
Section 4(2). Global Med believes that this conclusion is true even if
the transactions occurring within each category are integrated with other
transactions occurring within six months or one year of a given transaction.

The
following table details equity securities authorized for issuance as of December
31, 2006.

|                                 | Number of securitiesto be issued upon exercise ofoutstanding options,warrants
     and rights(a) | Weighted averageexercise price ofoutstandingoptions, warrantsand
     rights(b) | Number of securitiesremaining available forfuture issuance underequity
     compensationplans (excludingsecurities reflected incolumn (a)(c)
|-------------------------------- | ------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------
|Plan
     Category               |                                                                                                  |                                                                                 |                                                                                                                                             
|Equity plans approved by the     |                                                                                                 
|shareholders                     |                                                                                                  |                                                                                 |                                                                                                                                             
|2001 Stock Option Plan           |                                                                                                  | 6,111,166                                                                       |                                                                                                                                             
|Compensation Plan                |                                                                                                  | --                                                                              |                                                                                                                                             
|Equity plans not approved by the |                                                                                                 
|shareholders                     |                                                                                                  |                                                                                 |                                                                                                                                             
|Stock Options                    |                                                                                                  | 5,473,942                                                                       |                                                                                                                                             
|Warrants                         |                                                                                                  | 12,393,926                                                                      |                                                                                                                                             
|                                 |                                                                                                  |                                                                                 |                                                                                                                                             
|Total                            |                                                                                                  | 23,979,034                                                                      |                                                                                                                                             
|                                 |                                                                                                  |                                                                                 |                                                                                                                                             

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The
number of common shares available for issuance or already issued under the terms
of the existing stock option grants or under the stock option plan and stock
compensation plan are subject to adjustment under certain conditions that
include the declaration of stock dividends, or stock splits, etc.

ITEM 6.     
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING
STATEMENTS AND ASSOCIATED RISKS

This
Annual Report on Form 10-KSB contains certain forward-looking statements within
the meaning of Section 27A of the 1933 Act and Section 21E of the Securities
Exchange Act of 1934, as amended (1934 Act), and the Company intends
that such forward-looking statements be subject to the safe harbors for such
statements under such sections. The Companys forward-looking statements
include the plans and objectives of management for future operations, including
plans and objectives relating to the Companys planned marketing efforts
and future economic performance of the Company. The forward-looking statements
and associated risks set forth in this Annual Report on Form 10-KSB include or
relate to among other things: (i) the ability of the Company to obtain a
meaningful degree of consumer acceptance for its current software products and
proposed software products, (ii) the ability of the Company to market its
current software products and proposed software products on a national and
international basis at competitive prices, (iii) the ability of the
Companys current software products and proposed software products to meet
government regulations and standards, (iv) the ability of the Company to develop
and maintain an effective national and international sales network, (v) success
of the Company in forecasting demand for its current software products and
proposed software products, (vi) the ability of the Company to maintain pricing
and thereby maintain adequate profit margins, (vii) the ability of the Company
to achieve adequate intellectual property protection for the Companys
current software products and proposed software products, and (viii) the ability
of the Company and its customers to successfully and timely implement the
Companys software products.

The
forward-looking statements herein are based on current expectations that involve
a number of risk and uncertainties. Such forward-looking statements are based on
assumptions that, among other things, the Company will market and provide
software products on a timely basis, that there will be no material adverse
competitive or technological change in condition of the Companys business,
that demand for the Companys software products will significantly
increase, that the Companys Chief Executive Officer will remain employed
as such by the Company, that the Companys forecasts accurately anticipate
market demand and that there will be no material adverse change in the
Companys operations, business or governmental regulation affecting the
Company or its suppliers. The foregoing assumptions are based on judgments with
respect to, among other things, future economic, competitive and market
conditions, and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond the Companys
control. Accordingly, although the Company believes that the assumptions
underlying the forward-looking statements are reasonable, any such assumption
could prove to be inaccurate and therefore there can be no assurance that the
results contemplated in forward-looking statements will be realized. In
addition, as disclosed elsewhere in this Annual Report on Form 10-KSB, there are
a number of other risks inherent in the Companys business and operations
which could cause the Companys operating results to vary markedly and
adversely from prior results or the results contemplated by the forward-looking
statements. Growth in absolute and relative amounts of cost of sales, research
and development, sales and marketing and other operating expenses or the
occurrence of other events could cause actual results to vary materially from
the results contemplated by the forward-looking statements. Management
decisions, including budgeting, are subjective in many respects and periodic
revisions must be made to reflect actual conditions and business developments,
the impact of which may cause the Company to alter its marketing, capital
investment and other expenditures, may also materially and adversely affect the
Companys liquidity, financial position and results of operations. In light
of significant uncertainties inherent in the forward-looking information
included in this Annual Report on Form 10-KSB, the inclusion of such information
should not be regarded as a representation by the Company or any other person
that the Companys objectives or plans will be achieved.

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##### Table of Contents

GENERAL

The
Company designs, develops, markets and supports information management software
products for blood banks, hospitals, centralized transfusion centers and other
health care related facilities. Revenues for Wyndgate are derived from the
licensing of software, the provision of consulting and other value-added support
services and the re-sale of software obtained from vendors. Revenues for
PeopleMed are derived, generally, from providing ASP services. Revenues for
PeopleMed were not significant.

Business
Strategy

The
Companys business strategy for marketing and selling its products and
services is two tiered:

|1. |  | The first tier is comprised of direct selling to customers through the
Companys internal sales force; and
|-- |  | ----------------------------------------------------------------------------------------------------------

|2. |  | The second tier is focused on marketing and selling directly through agreements
with companies (Channel Partner Agreements) that are established in
blood donor hospital markets.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The
Companys ability to increase future revenues is highly dependent upon the
Companys ability to make further inroads in selling its products directly
to potential customers or expanding its customer base through acquisitions. The
Company is currently reviewing opportunistic business acquisitions.
These Channel Partner Agreements are more fully described in
BUSINESS, ROYALTY AND COMMISSION AGREEMENTS. In
addition, the Companys success is dependent upon the ability of its
marketing partners to sell their complementary products in conjunction with the
Companys.

Overview

Global
Med provides information management software products and services to the health
care industry. Wyndgate operates as a division of Global Med and designs,
develops, markets and supports information management software products for
blood banks, hospitals, centralized transfusion centers and other healthcare
related facilities. The Companys PeopleMed subsidiary offers chronic
disease management as an Application Service Provider (ASP).
PeopleMeds system uses the Internet to coordinate sources and users of a
patients clinical information, including laboratory, pharmacy, primary and
specialty care providers, claims and medical records. PeopleMed earns revenues
primarily by providing ongoing ASP services. PeopleMeds revenues were not
significant during the years ended December 31, 2006 and 2005.

The
Company has two main products in its Wyndgate division: SafeTrace and SafeTrace
Tx. SafeTrace is used by blood centers and hospitals to track blood donations.
SafeTrace Tx is used primarily by hospitals and centralized transfusion services
to help insure the quality of blood transfused into patient-recipients. Both
products are designed to help the users comply with quality and safety standards
of the FDA for the collection and management of blood and blood products. The
Companys Wyndgate division earns revenues primarily through the sale of
software licenses, implementation of the software systems sold, and by providing
maintenance for the SafeTrace and SafeTrace Tx software systems.

The
Company continues to commit significant financial resources to its research and
development efforts. The Companys development efforts are focused on
developing new software products as well as improving its existing products. The
Company is nearing the completion of the development cycle of these products,
and the Company intends to bring these products to market. Because some of the
products the Company is developing are considered medical devices by the FDA,
the Company will be required to obtain FDA 510(k) clearance for these medical
devices prior to their sale or introduction into the market. At the present
time, the Company is expensing all of the costs of research and development
related to these new products.

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The
decision to purchase a new blood bank system is driven in large part by one or
all of the following: replacing antiquated technology, upgrading the laboratory
information system (LIS) of the hospital which typically includes
the purchase of a blood bank system, and replacing existing products that have
been sunsetted. The Company believes that because the purchase of an LIS by a
hospital is a significant driver in the decision to purchase a blood bank
system, the Company is heavily reliant on its relationships with its channel
partners that sell their LIS systems in combination with the Companys
blood bank products. The Companys channel partner relationships are more
fully discussed in BUSINESS, ROYALTY AND COMMISSION
AGREEMENTS.

Entities
that plan to purchase blood bank products primarily have two choices:

|1. |  | Upgrade their current system with their existing vendor, or
|-- |  | -----------------------------------------------------------

|2. |  | Select
a replacement system from an alternative vendor.
|-- |  | -------------------------------------------------------

The
Companys two primary locations are in Lakewood, Colorado, the corporate
headquarters, and El Dorado Hills, California. The Companys primary
operations which include research and development, implementation staff, support
services, and certain administrative staff, are located in the El Dorado Hills
facility. A significant number of the Companys employees are not located
in Lakewood or El Dorado Hills. These employees provide support for the
Companys sales and marketing, research and development, and implementation
efforts.

Overall,
Global Meds revenues for the year ended December 31, 2006 increased $1.158
million to $12.362 million from $11.204 million from the prior year. Cost of
revenues increased $659 thousand or 19.5% for the year ended December 31, 2006
to $4.042 million from $3.383 million for the prior year. For the year ended
December 31, 2006 and 2005, Global Meds operating expenses were $7.512
million and $8.691 million, respectively. Global Med had net income of $1.381
million and a net loss of $10.819 million during the years ended December 31,
2006 and 2005, respectively. For 2006, the transition from a significant net
loss to net income was due primarily to the increase in revenues, the absence of
the summary judgment costs that occurred in the prior year, and the lack of
significant charges related to the companys preferred stock.

For
the year ended December 31, 2006, Global Meds operations provided $1.224
million in cash. For the comparable period in 2005, Global Meds operations
used $984 thousand in cash. For 2005, the use of cash was primarily the result
of a $1.004 million payment the Company made to the courts to be held in escrow.
See Legal Proceedings for further discussion. For 2007, Global Med
believes that its cash flows from the sale of SafeTrace, SafeTrace Tx, and new
products to customers and the current backlog of existing business will continue
to be strong on an annual basis through the remainder of fiscal year 2007. The
Company believes its revenues and operating income will continue to grow in 2007
and possibly beyond. For the fourth quarter ended December 31. 2006, the
Companys revenues increased $563 thousand or 18.1% to $3.678 million from
$3.115 million during the comparable quarter in 2005.

Management
of the Company is focused on increasing its revenues and cash flows through
direct sales efforts, increasing its marketing footprint through adding
additional channel partners and strategic alliances, and developing new products
and enhanced functionality to its existing product mix to make them more
attractive to potential customers.

The
Company billed out approximately $14.5 million to our customers during 2006. The
Companys cash inflows from operations for this same period were
approximately $12.2 million. In addition, the Companys revenues continue
to increase.

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Balance
Sheet Changes

As of
December 31, 2006 and 2005, certain balance sheet account changes were
significant. Cash increased by $1.186 million primarily as a result of the cash
flows from operations; net accounts receivable increased $2.152 million
primarily as a result of increased billings for maintenance, accrued revenues
decreased by $624 thousand primarily as a result of a significant contract that
was billed out at the beginning of the year; deferred revenue increased $1.164
million primarily as a result of maintenance-related billings, and the
Companys shareholders deficit of $25.833 million became shareholders
equity of $379 thousand primarily as a result of the reclassification of
preferred stock from mezzanine equity to equity and the removal of certain
derivative features of the preferred stock when it was renegotiated in March of
2006. Deferred revenue represents contractual billings to customers. It is
principally comprised of support and maintenance and implementations revenues
for which the customer has been billed but the services or products have not yet
been performed or delivered, respectively. Some of the amounts in deferred
revenues are also be in accounts receivable. As of December 31, 2006 and 2005,
approximately $1.225 million and $429 thousand, respectively, of deferred revenue that was also in accounts
receivable.

YEAR ENDED
DECEMBER 31, 2006 COMPARED TO YEAR ENDED DECEMBER 31, 2005

RESULTS OF
OPERATIONS

Revenues.
Revenues are comprised of software sales, maintenance and usage fees revenues,
implementation and consulting revenues.

Revenues
from license fees, maintenance and usage fees increased $536 thousand, or 6.6%
to $8.704 million for the year ended December 31, 2006 compared to $8.168
million for the year ended December 31, 2005. The increase in these revenues was
due to a $1.229 million increase in maintenance fees offset by a $693 thousand
decrease in license fees.

Revenues
from implementation and consulting services increased $622 thousand or 20.5% to
$3.658 million for the year ended December 31, 2006 compared to $3.036 million
for the year ended December 31, 2005. The increase was primarily attributable to
consulting services provided to customers that are utilizing the Companys
products in a production environment.

Cost
of Revenues. Cost of revenues related to software license fees, maintenance
and usage fees increased $39 thousand, or 2.2%, to $1.788 million for the year
ended December 31, 2006, from $1.749 million for the year ended December 31,
2005. The increase was mainly due to increased costs related to the purchase of
third party software that was resold.

Cost
of revenues associated with implementations and other consulting revenues
increased $620 thousand, or 37.9%, to $2.254 million during the year ended
December 31, 2006 when compared to $1.634 million for the year ended December
31, 2005. The increase was primarily associated with the increased payroll costs
necessary for the Company to deliver increased services revenues.

The
overall gross profit as a percentage of revenues was 67.3% and 69.8% for the
years ended December 31, 2006 and 2005, respectively. The reduction in margins
is a direct result of decreased software license fees that typically have higher
margins than the Companys other revenue categories.

General
and Administrative. General and administrative expenses decreased $235
thousand, or 8.7%, to $2.474 million for the year ended December 31, 2006 as
compared to $2.709 million for the year ended December 31, 2005. The primary
reason for the decrease in general and administrative expenses was a $208
thousand decrease in option- related expenses for 2006 when compared with 2005.
In 2005, the Company accelerated the vesting of certain outstanding options
which resulted in additional compensation expense during that year.

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Summary
Judgment. During 2005, the Company deposited $1.004 million with the
Superior Court in the State of California in the County of El Dorado as payment
for a summary judgment in its lawsuit against a former employee. These funds
were for legal expenses and costs, and were not punitive in nature. The deposit
was expensed in the fourth quarter of 2005 and had a material impact on the
financial statements of the Company. There were no expenses related to this cost
category during 2006. See the section Legal Proceedings for further
discussion.

Sales
and Marketing. Sales and marketing expenses decreased $462 thousand or 18%
to $2.108 million for the year ended December 31, 2006 from $2.570 million for
the year ended December 31, 2005. The decrease in sales and marketing expenses
was primarily attributable to an $87 thousand decrease in labor-related
expenses, a $44 thousand decrease in commission expenses, a $70 thousand
decrease in contractors expenses, a $29 thousand decrease in travel expenses,
and a $162 thousand decrease in expenses related primarily to the acceleration
of stock option vesting during 2005.

Research
and Development. Research and development (R&D) expenses
increased by $504 thousand, or 22.5%, to $2.745 million for the year ended
December 31, 2006 from $2.241 million for the year ended December 31, 2005. The
increase in R&D expenses was primarily attributable to a $413 thousand
increase in labor-related expenses, a $100 thousand increase in contract
services, and a $25 thousand increase in travel related-expenses. The increase
was partially offset by a $72 thousand decrease related primarily to the
acceleration of stock option vesting during 2005. In 2004, the Companys
R&D expenses were $838 thousand. In 2006, the Companys R&D
expenses were $2.745 million. The significant increase in these expenses is
primarily attributable to the development of new technology and products. The
Company is nearing the completion of the development cycle of these products,
and the Company intends to bring these products to market. Because some of the
products the Company is developing are considered medical devices by the FDA,
the Company will be required to obtain FDA 510(k) clearance for these medical
devices prior to their sale or introduction into the market. At the present
time, the Company is expensing all of the costs of research and development
related to these new products.

Depreciation
and Software Amortization.Depreciation and software amortization costs
increased by $18 thousand to $185 thousand from $167 thousand for the periods
ended December 31, 2006 and 2005, respectively.

Notes
Receivable Allowance.The Company established an allowance for all of the
Companys outstanding notes receivable in the amount of $400 thousand and
all of the related accrued interest in the amount of $129 during the year ended
December 31, 2005. All of the outstanding notes receivable and related accrued
interest were reserved for as of December 31, 2006 and 2005, respectively. See
further discussion in Note 1 of the audited financial statements.

Other
Financing Costs.The Company recognized $11.032 million in expenses during
the year ended December 31, 2006 related to financing costs associated with the
issuance of the Series A Convertible Preferred Stock on December 16, 2005. No
such charges were incurred during 2006. See further discussion in Note 8 of the
audited financial statements.

Change
in Estimated Fair Value of Derivative.The Company recognized a gain of $724
thousand related to the change in value of certain derivatives associated with
the Companys Series A Convertible preferred stock for the year ended
December 31, 2006. The Company recognized a gain $1.692 million for the
comparable period in 2005. These gains were a function of certain features of
the Series A Convertible Preferred. The features of the Series A that
necessitated this accounting were renegotiated and removed on March 29, 2006.

Interest
Income. Interest income increased $6 thousand to $15 thousand in 2006 from $9 thousand
in 2005.

Interest
Expense. Interest expense decreased $76 thousand to $13 thousand for the
year ended December 31, 2006 from $89 thousand for the year ended December 31,
2005. The decrease in interest expense was primarily due to the decrease in debt
associated with the repayment of $529 thousand to a related party on December
16, 2005.

Provision
of Income Taxes.Income taxes increased by $153 thousand as a result of the
Company achieving profitability during 2006. The Company was able to apply
approximately $1.928 million in net operating loss carryforwards generated in
prior years against the current years pre-tax income in order to reduce
its statutory rates.

Net
Income (Loss).The Companys net income for the year ended December 31,
2006 was $1.381 million and the net loss for the year ended December 31, 2005
was $10.819 million. The improved results for 2006 were primarily the result of
the increase in revenues, the decrease in certain one-time costs and certain
costs associated with the Series A Convertible Preferred. The loss in 2005 was
primarily due to the $9.340 million charge related to embedded derivative
associated with the Series A Convertible Preferred, the $1.004 million charge
related to the accrual for the summary judgment deposit, and the $529 thousand
reserve the Company set up during 2005 related to certain notes receivable.

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##### Table of Contents

CRITICAL
ACCOUNTING POLICIES AND ESTIMATES

Managements
Discussion and Analysis of Financial Condition and Results of Operations is
based upon our consolidated financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States.
The preparation of these financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities, revenue and expenses, and related disclosure of contingent assets
and liabilities. Management 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.

A
critical accounting policy is one that is both important to the portrayal of the
Companys financial condition or results of operations and requires
significant judgment or a complex estimation process. The Company believes the
following fit that definition:

Revenue
Recognition

The
Company recognizes revenue in accordance with the American Institute of
Certified Public Accountants Statement of Position (SOP) No. 97-2,
Software Revenue Recognition. The Companys standard software
license agreement for the Companys products provides for an initial fee to
use the product in perpetuity up to a maximum number of users. Fees from
software licenses are recognized as revenue upon shipment, provided fees are
fixed and determinable and collection is probable. Fees from licenses sold
together with consulting services are generally recognized upon shipment
provided that the above criteria have been met, payment of the license fees is
not dependent upon the performance of the consulting services and the consulting
services are not essential to the functionality of the licensed software. In
instances in which the consulting services are not essential to the
functionality of the software but payment of the license fee is due at the
earlier of the performance of specific consulting services or the passage of
time, the license fee is recognized ratably over the anticipated period of
performance of the services or ratably over the license fee billing period,
whichever is more readily determinable.

For
arrangements with multiple elements, the Company allocates revenue to each
element of a transaction based upon its fair value as determined by vendor
specific objective evidence. Vendor specific objective evidence of fair
value for all elements of an arrangement is based upon the normal pricing and
discounting practices for those products and services when sold separately and
for software license updates and product support services, and is additionally
measured by the renewal rate offered to the customer. The Company may modify our
pricing practices in the future, which could result in changes in our vendor
specific objective evidence of fair value for these undelivered elements. As a
result, our future revenue recognition for multi-element arrangements could
differ significantly from our historical results.

If an
arrangement does not qualify for separate accounting of the software license and
consulting transactions, then new software license revenue is generally
recognized together with the consulting services based on contract accounting
using the percentage-of-completion method. Contract accounting is generally
applied to arrangements when services include significant modification or
customization of the software. Progress towards completion is generally measured
based on hours incurred versus projected total hours. The projected costs
associated with contract accounting are accrued at rates consistent with the
revenue recognized under percentage of completion.

Certain
of the Companys contracts include warranties that provide for refunds of
all or a portion of the software license and or other fees in the event that the
Company is unable to provide maintenance services, for which there is a separate
fee, for the contractually prescribed period. Contracts with these provisions
are accounted for in accordance with the policies above.

The
Company provides consulting services that include implementation, training and
the performance of other services to its customers. Revenue from such services
is generally recognized ratably over the period during which the applicable
service is to be performed. In addition, the Company may recognize certain
implementation revenues based on hourly rates in effect on the contract
multiplied by the number of hours completed.

Support
agreements generally call for the Company to provide technical support and
software updates, on a when-and-if-available basis to customers.
Revenue on technical support and software update rights is recognized ratably
over the term of the support agreement.

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##### Table of Contents

PeopleMed
has contracts that include fixed fee and per-member fees. The Company recognizes
revenues from these contracts as services are provided.

Deposit
In Escrow Collectibility

In
September 2002, Global Med filed a lawsuit against Donnie L. Jackson, Jr.,
Global Meds former Vice President of Sales and Marketing. Global Med
alleges, among other things, that prior to his resignation in July 2002 Mr.
Jackson misappropriated certain trade secrets of Global Med. After leaving
Global Med, Mr. Jackson became a management employee of one of Global Meds
competitors. On March 30, 2005, the Superior Court of the State of
California in and for the County of El Dorado granted the motion for summary
judgment for Donnie L. Jackson, Jr. On September 1, 2005, the Company
deposited $1.004 million with the Superior Court in the State of California in
the County of El Dorado. This deposit represents potential fees and
attorneys costs the Company could be required to pay in the event the
Company does not prevail on appeal. The $1.004 million is classified as a
Deposit in escrow on the Companys balance sheet as of December
31, 2006. Based on external evidence and the advice of legal counsel, the
Company has determined that it is more likely than not that the Company will be
required to pay the $1.004 million that is currently classified as a
Deposit in escrow. As a result, the Company expensed the amount of
the Deposit in escrow and set up a liability for $1.004 million in
the form of Litigation accrual as of December 31, 2005. The Company
appealed the judges decision and in December 2006, the summary judgment
was reversed by the California Court of Appeals and the matter was remanded to
the trial court. Unless Mr. Jackson persuades the appellate panel to rehear the
case or persuades the California Supreme Court to review it, the case will be
remanded for trial as directed in the opinion. Global Med believes that the
California Appellate Courts opinion may result in the return of the $1.004
million deposit the Company made in September 2005 with the Superior Court in
the State of California. In the event the Company prevails, the Company could
recognize a reduction in expenses ranging between $0 and $1.004 million.

Deferred
Revenue

Deferred
revenue represents contractual billings to customers. It is principally
comprised of support and maintenance and implementations revenues for which the
customer has been billed but the services or products have not yet been
performed or delivered, respectively. Some of the amounts in deferred revenues
are also be in accounts receivable. As of December 31, 2006 and 2005, approximately
$1.225 million and $429 thousand, respectively, of the deferred revenue balance was
also in accounts receivable.

Derivative
Financial Instruments

The
Series A Convertible Preferred Stock and related warrants included certain terms
conditions and features through March 29, 2006, which required separate
accounting for as embedded derivative liabilities at estimated fair value. The
determination of fair value included significant estimates by management
including the term of the instruments, volatility of the price of the
Companys common stock, interest rates and the probability of conversion,
redemption or a future dilutive financing transaction, among other items. The
fluctuations in estimated fair value were significant and had a significant
impact on the Companys reported financial condition and results of
operations through March 29, 2006. On March 29, 2006, certain terms related to
the Series A Convertible Preferred Stock were renegotiated. As a result of these
renegotiated terms, the derivative features were eliminated. See further
discussion in Note 6 of the Financial Statement.

Income
Tax Valuation Allowance

On an
annual basis, the management of the Company evaluates the realizability of the
net deferred tax assets and assesses the need for a valuation allowance. In
assessing the realizability of deferred tax assets, management concluded that it
is not more likely than not that the deferred tax assets would not be realized.
The ultimate realization of the deferred tax assets is dependent on the
generation of future taxable income in the period in which the temporary
differences become deductible. The Company has established a full valuation
allowance for deferred taxes due to the uncertainty that the deferred tax assets
will be utilized.

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##### Table of Contents

LIQUIDITY
AND CAPITAL RESOURCES

The
Company had cash and cash equivalents of $2.554 million and $1.368 million as of
December 31, 2006 and 2005, respectively.

The
Company had net working capital of $172 thousand as of December 31, 2006, and a
working capital deficit of $849 thousand as of December 31, 2005.

The
Company believes its revenues and operating income will continue to grow in 2007
and possibly for the foreseeable future. The Company also believes that its cash
flows from operations will be positive in 2007 and the foreseeable future.

Net
cash provided by operating activities was $1.224 million in 2006. The cash
provided by operations of $1.224 million during 2006 consisted primarily of the
net income of $1.381 million, non-cash charges of $474 thousand, and changes in
operating assets and liabilities of $93 thousand, offset by a $724 thousand
non-cash gain. Net cash used by operating activities was $984 thousand during
2005. During the year ended 2005, the Company made cash interest payments of
$145 thousand to its now former parent Company.

Net cash
used by investing activities was $142 thousand and $178 thousand, during 2006,
and 2005, respectively. The Companys financing activities provided $67
thousand and $897 thousand in 2006 and 2005, respectively. As of December 31,
2006, the Company had the following contractual obligations or unrecorded
obligations:

# Contractual
ObligationsExpected Maturity Dates ($000s)

|                 | 2007 | 2008  | 2009 | 2010  | 2011 | Thereafter
|---------------- | ---- | ----- | ---- | ----- | ---- | ----------
|Operating leases |      | $185  |      | $188  |      | $195      
|Capital leases   |      | $  20 |      | $  22 |      | $  15     
|Debt             |      | $  12 |      | $  14 |      | $  11     
|                 |      |       |      |       |      |           

IMPACT OF
INFLATION

Although
it is difficult to predict the impact of inflation on our costs and revenues in
connection with our products, the Company does not anticipate that inflation
will materially impact our costs of operation or the profitability of our
products when marketed.

RECENTLY
ISSUED FINANCIAL ACCOUNTING STANDARDS

In
March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of
Financial Assetsan amendment of FASB Statement No. 140 (SFAS No.
156). SFAS No. 156 requires an entity to recognize a servicing asset or liability
each time it undertakes an obligation to service a financial asset by entering
into a servicing contract if a) a transfer of the servicers assets meets
the requirements for sale accounting b) a transfer of the servicers
financial assets to a qualifying special-purpose entity in a guaranteed mortgage
securitization in which the transferor retains all of the resulting securities
and c) an acquisition or assumption of an obligation to service a financial
asset does not relate to financial assets of the servicer or its consolidated
affiliates. Further, SFAS No. 156 requires all separately recognized
servicing asset and liabilities to be initially measured at fair value, if
practicable. SFAS No. 156 must be adopted as of the first fiscal year that
begins after September 15, 2006. The Company does not expect the adoption
of SFAS No. 156 to have a material impact on the Companys
consolidated results of operations or financial position.

In
September 2006, the FASB issued SFAS No. 157, Fair Value Measures
(SFAS No. 157). SFAS No. 157 defines fair value, establishes a framework for
measuring fair value and enhances disclosures about fair value measures required
under other accounting pronouncements, but does not change existing guidance as
to whether or not an instrument is carried at fair value. SFAS No. 157 is
effective for fiscal years beginning after November 15, 2007, the year beginning
January 1, 2008 for the Company. The Company has not yet determined the impact
adoption will have on the Company.

17



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##### Table of Contents

In February
2007,  the FASB  issued  SFAS No.  159,  The Fair Value  Option for  Financial
Assets and  Financial  Liabilities (SFAS No.  159).  SFAS No. 159  permits
entities  to choose to  measure  many  financial  assets and  financial  liabilities  at
fair  value.  Unrealized  gains and losses on items for which the fair value  option has
been  elected  will be  reported  in  earnings.  SFAS  No.  159 is  effective  for
fiscal  years  beginning  after  November 15,  2007. The Company is currently  evaluating
the impact of SFAS No. 159 on its  consolidated  financial  position and results of
operations.

In
September 2006, the Securities and Exchange Commission issued Staff Accounting
Bulletin No. 108, Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements (SAB No.
108), which provides interpretive guidance on the consideration of the
effects of prior year misstatements in quantifying current year misstatements
for the purpose of a materiality assessment. SAB 108 is effective as of the end
of our 2006 fiscal year, allowing a one-time transitional cumulative effect
adjustment to beginning retained earnings as of January 1, 2006 for errors that
were not previously deemed material, but are material under the guidance in SAB No.
108. The adoption of SAB No. 108 did not have an impact on the Companys
financial statements.

On
December 21, 2006, the Financial Accounting Standards Board (the
FASB) issued FASB Staff Position (FSP) EITF 00-19-2,
Accounting for Registration Payment Arrangements (the
FSP). Under this pronouncement, contingently payable registration
payment arrangements are accounted for separately from and do not affect the
classification of the underlying shares, warrants, or other financial
instruments subject to the registration payment provisions. This was
accomplished by amending SFAS No. 133 and No. 150 to include scope exceptions
for registration payment arrangements. A liability for a registration payment
arrangement should be recognized when payment is probable and the amount is
reasonably estimable (whether at inception or during the life of the
arrangement) in accordance with SFAS No.5, Accounting for
Contingencies.

The
FSP is effective for registration payment arrangements and the financial
instruments subject to such arrangements that are entered into or modified after
December 21, 2006. For registration payment arrangements and financial
instruments subject to those arrangements that were entered into before December
22, 2006, companies are required to account for transitioning to the FSP through
a cumulative-effect adjustment to the opening balance of accumulated deficit or
retained earnings in fiscal years beginning after December 15, 2006. However,
early adoption of this pronouncement for interim or annual periods for which
financial statements or interim reports have not been issued is permitted.
Accordingly, the Company adopted the FSP effective with the quarter ended
December 31, 2006. The adoption of the FSP did not have an impact on the
Companys financial statements.

In
June 2006, the FASB issued Interpretation No. 48, Accounting for
Uncertainty in Income Taxes (FIN 48). FIN 48 clarifies the
accounting for uncertainty in income taxes recognized in an enterprises
financial statements in accordance with SFAS No. 109, Accounting for
Income Taxes. This Interpretation prescribes a recognition threshold and
measurement attribute for the financial statement recognition and measurement of
a tax position taken or expected to be taken in a tax return. This
Interpretation also provides guidance on derecognition, classification, interest
and penalties, accounting in interim periods, and disclosure. FIN 48 is
effective for fiscal years beginning after December 15, 2006. The Company
is in the process of evaluating the financial impact of adopting FIN 48.

Item 7.     
Financial Statements.

Reference
is made to the financial statements, the reports thereon and the notes thereto
included as a part of this Annual Report on Form 10-KSB, which financial
statements, reports and notes are incorporated herein by reference.

18



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# INDEX
TO CONSOLIDATED FINANCIAL STATEMENTS

|                                                                                     | Page
|------------------------------------------------------------------------------------ | ----
|Report of Independent Registered Public Accounting Firm                              |     
|Consolidated Balance Sheets as of December 31, 2006 and 2005                         |     
|Consolidated Statements of Operations for the years ended December 31, 2006 and 2005 |     
|Consolidated Statements of Stockholders Equity (Deficit) for the years ended        |     
|December 31, 2006 and 2005                                                           |     
|Consolidated Statements of Cash Flows for the years ended December 31, 2006 and 2005 |     
|Notes to Consolidated Financial Statements                                           |     

19



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##### Table of Contents

# Report
of Independent Registered Public Accounting Firm

Board
of Directors and StockholdersGlobal Med Technologies, Inc. and subsidiary

We
have audited the accompanying consolidated balance sheets of Global Med
Technologies, Inc. and subsidiary as of December 31, 2006 and 2005, and the
related consolidated statements of operations, stockholders equity (deficit) and
cash flows for the years ended December 31, 2006 and 2005. These consolidated
financial statements are the responsibility of the Companys management.
Our responsibility is to express an opinion on these consolidated financial
statements based on our audits.

We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement. The Company
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Companys internal
control over financial reporting. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

In our
opinion, the consolidated financial statements referred to above present fairly,
in all material respects, the financial position of Global Med Technologies,
Inc. and subsidiary as of December 31, 2006 and 2005, and the results of their
operations and their cash flows for the years ended December 31, 2006 and 2005
in conformity with U.S. generally accepted accounting principles.

/s/
Ehrhardt Keefe Steiner & Hottman PCEhrhardt Keefe Steiner & Hottman
PC

February
22, 2007Denver Colorado

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# GLOBAL MED
TECHNOLOGIES, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS(In thousands)

|                                                                       | December 31, |        
|---------------------------------------------------------------------- | ------------ | -------
|
|ASSETS                                                                 |              |        
|                                                                       |              |        
|CURRENT ASSETS:                                                        |              |        
|                                                                       |              |        
|Cash and cash equivalents                                              |              | $ 2,554
|Accounts receivable-trade, net of allowance for uncollectible accounts |              |        
|of  $196 and $137, in 2006 and 2005, respectively                      |              | 3,181  
|Accrued revenues, net of allowance for uncollectible accounts of       |              |        
|$6, in 2006 and 2005                                                   |              | 130    
|Prepaid expenses and other assets                                      |              | 254    
|Deposit in escrow                                                      |              | 1,004  
|                                                                       |              |        
|                                                                       |              |        
|Total current assets                                                   |              | 7,123  
|                                                                       |              |        
|EQUIPMENT, FURNITURE AND FIXTURES, AT COST:                            |              |        
|Furniture and fixtures                                                 |              | 393    
|Machinery and equipment                                                |              | 448    
|Computer hardware and software                                         |              | 2,132  
|                                                                       |              |        
|                                                                       |              |        
|                                                                       |              | 2,973  
|Less accumulated depreciation and amortization                         |              | (2,704 
|                                                                       |              |        
|                                                                       |              |        
|Net equipment, furniture and fixtures                                  |              | 269    
|                                                                       |              |        
|                                                                       |              |        
|CAPITALIZED SOFTWARE DEVELOPMENT COSTS,                                |              |        
|net of accumulated amortization of $3,262 and $3,260,                  |              |        
|respectively                                                           |              |       
|                                                                       |              |        
|                                                                       |              |        
|Total assets                                                           |              | $ 7,392
|                                                                       |              |        
|                                                                       |              |        

See
accompanying notes to the consolidated financial statements.

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# GLOBAL MED
TECHNOLOGIES, INC. AND SUBSIDIARYCONSOLIDATED BALANCE SHEETS (CONTINUED)(In thousands)

|                                                            | December 31, |        
|----------------------------------------------------------- | ------------ | -------
|
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)              |              |        
|CURRENT LIABILITIES:                                        |              |        
|Accounts payable                                            |              | $   261
|Accrued expenses                                            |              | 878    
|Accrued income taxes                                        |              | 153    
|Accrued payroll                                             |              | 268    
|Accrued compensated absences                                |              | 466    
|Noncompete accrual                                          |              | 35     
|Deferred revenue                                            |              | 3,854  
|Litigation accrual                                          |              | 1,004  
|Capital lease obligation, current portion                   |              | 20     
|Notes Payable, current portion                              |              | 12     
|                                                            |              |        
|Total current liabilities                                   |              | 6,951  
|                                                            |              |        
|DERIVATIVE FINANCIAL INSTRUMENTS SERIES A AND               |              |        
|WARRANTS, at estimated fair value                           |              |       
|CAPITAL LEASE OBLIGATION, less current portion              |              | 37     
|NOTES PAYABLE, less current portion                         |              | 25     
|                                                            |              |        
|Total liabilities                                           |              | 7,013  
|                                                            |              |        
|                                                            |              |        
|COMMITMENTS AND CONTINGENCIES (Notes 2, 5 and 10)           |              |        
|CONVERTIBLE PREFERRED STOCK SERIES A, $.01 par              |              |        
|value: Authorized shares  100, 10 outstanding (liquidation |              |        
|preference of $9,975)                                       |              |       
|                                                            |              |        
|STOCKHOLDERS EQUITY (DEFICIT)                              |              |        
|CONVERTIBLE PREFERRED STOCK SERIES A, $.01 par              |              |        
|value: Authorized shares  100, 10 outstanding (liquidation |              |        
|preference of $9,975)                                       |              | 9,975  
|Convertible Preferred Stock Series BB, $.01 par value:      |              |       
|Authorized shares  675; none outstanding                   |              |        
|Preferred stock, $.01 par value: Authorized shares - 5,725; |              |       
|none issued or outstanding                                  |              |        
|Common stock, $.01 par value: Authorized shares  90,000    |              |        
|issued and outstanding shares 23,212 and 22,955 at         |              | 232    
|December 31, 2006 and 2005, respectively                    |              |        
|Additional paid-in capital                                  |              | 51,510 
|Accumulated deficit                                         |              | (61,338
|                                                            |              |        
|Total stockholders equity (deficit)                        |              | 379    
|                                                            |              |        
|                                                            |              |        
|Total liabilities and stockholders equity (deficit)        |              | $7,392 
|                                                            |              |        
|                                                            |              |        

See
accompanying notes to the consolidated financial statements

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# GLOBAL MED
TECHNOLOGIES, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF OPERATIONS(In thousands,
except per share information)

|                                             | Year Ended December 31, |            
|-------------------------------------------- | ----------------------- | -----------
|
|REVENUES                                     |                         |            
|License fees, maintenance and usage fees     |                         | $   8,704  
|Implementation and consulting services       |                         | 3,658      
|                                             |                         |            
|                                             |                         | 12,362     
|                                             |                         |            
|COST OF REVENUES (exclusive of costs         |                         |            
|shown below)                                 |                         |            
|License fees, maintenance and usage fees     |                         | 1,788      
|Implementation and consulting services       |                         | 2,254      
|                                             |                         |            
|Gross profit                                 |                         | 4,042      
|                                             |                         |            
|                                             |                         | 8,320      
|OPERATING EXPENSES:                          |                         |            
|General and administrative                   |                         | 2,474      
|Summary judgment                             |                         |           
|Sales and marketing                          |                         | 2,108      
|Research and development                     |                         | 2,745      
|Depreciation and software amortization       |                         | 185        
|                                             |                         |            
|Total operating expenses                     |                         | 7,512      
|                                             |                         |            
|Income (loss) from operations                |                         | 808        
|OTHER INCOME (EXPENSES):                     |                        
|Notes receivable allowance                   |                         |           
|Other financing costs                        |                         |           
|Change in estimated fair value of derivative |                         |            
|instruments                                  |                         | 724        
|Interest income                              |                         | 15         
|Interest expense                             |                         | (13        
|Interest expense to related party            |                         |           
|                                             |                         |            
|Income (loss) before income taxes            |                         | 1,534      
|Provision for income taxes                   |                         | (153       
|                                             |                         |            
|Net income (loss)                            |                         | 1,381      
|Preferred dividend, related party            |                         |           
|Deemed dividend, issuance of Series A        |                         |            
|Convertible Preferred Stock                  |                         |           
|                                             |                         |            
|Net income (loss) attributable to common     |                         |            
|Stockholders                                 |                         | $   1,381  
|                                             |                         |            
|Income (loss) per common share               |                         |            
|Basic                                        |                         | $      0.06
|                                             |                         |            
|Diluted                                      |                         | $      0.04
|                                             |                         |            
|Weighted average number of common shares     |                         |            
|Outstanding:                                 |                         |            
|Basic                                        |                         | 23,167     
|                                             |                         |            
|Diluted                                      |                         | 39,128     
|                                             |                         |            
|                                             |                         |            

See
accompanying notes to the consolidated financial statements.

F-4



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# GLOBAL MED
TECHNOLOGIES, INC. AND SUBSIDIARYCONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY
(DEFICIT)(In thousands)

|                                         | Common Stock | AdditionalPaid-in | Accumulated |       |  
|---------------------------------------- | ------------ | ----------------- | ----------- | ----- | -
|
|Balances, December 31, 2004              |              | 27,465            |             | $ 275 |  
|                                         |              |                   |             |       |  
|Issuance of options for services or      |              |                   |             |       |  
|accelerated option vesting               |              | --                |             | --    |  
|                                         |              |                   |             |       |  
|Issuance of common stock for             |              |                   |             |       |  
|services, related party                  |              | 7                 |             | --    |  
|                                         |              |                   |             |       |  
|Exercise of options                      |              | 232               |             | 2     |  
|                                         |              |                   |             |       |  
|Dividends on Series AA Preferred         |              |                   |             |       |  
|Stock, related party (see Note 2)        |              | --                |             | --    |  
|                                         |              |                   |             |       |  
|Issuance of common stock for cash,       |              |                   |             |       |  
|net of issuance costs of $91             |              | 111               |             | 1     |  
|                                         |              |                   |             |       |  
|Deemed dividend, Series A                |              |                   |             |       |  
|Convertible Preferred Stock (see Note 6) |              | --                |             | --    |  
|                                         |              |                   |             |       |  
|Issuance of detachable warrants          |              |                   |             |       |  
|associated with Series A                 |             
|Convertible Preferred Stock              |              | --                |             | --    |  
|                                         |              |                   |             |       |  
|Repurchase of common shares and          |              |                   |             |       |  
|warrants from GMIL (see Note 6)          |              | (4,860            | )           | (49   | )
|                                         |              |                   |             |       |  
|Net loss                                 |              | --                |             | --    |  
|                                         |              |                   |             |       |  
|                                         |              |                   |             |       |  
|Balance December 31, 2005                |              | 22,955            |             | $ 229 |  
|                                         |              |                   |             |       |  

See
accompanying notes to unaudited condensed consolidated financial statements.

F-5



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# GLOBAL MED
TECHNOLOGIES, INC. AND SUBSIDIARYCONSOLIDATED STATEMENT OF
STOCKHOLDERS EQUITY (DEFICIT)(In thousands)

|                                 | Preferred Stock | Common Stock | AdditionalPaid-in | Accumulated |  |        | 
|-------------------------------- | --------------- | ------------ | ----------------- | ----------- |  | ------ | 
|
|Balances, December 31, 2005      |                 | --           |                   | $       --  |  | 22,955 | 
|                                 |                 |              |                   |             |  |        | 
|Series A Convertible             |                 |              |                   |             |  |        | 
|Preferred Stock, reclassified    |                
|from mezzanine equity            |                
|(see Note 6)                     |                 | 10           |                   | 9,975       |  | --     | 
|                                 |                 |              |                   |             |  |        | 
|Embedded derivative              |                 |              |                   |             |  |        | 
|valuation reversal (see Note 6)  |                 | --           |                   | --          |  | --     | 
|                                 |                 |              |                   |             |  |        | 
|Exercise of options              |                 | --           |                   | --          |  | 257    | 
|                                 |                 |              |                   |             |  |        | 
|Expense associated with issuance |                 |              |                   |             |  |        | 
|of options for services to       |                
|employees and consultants        |                 | --           |                   | --          |  | --     | 
|                                 |                 |              |                   |             |  |        | 
|Issuance costs associated with   |                 |              |                   |             |  |        | 
|Series A Preferred and           |                
|registration statement           |                 | --           |                   | --          |  | --     | 
|                                 |                 |              |                   |             |  |        | 
|Net income                       |                 | --           |                   | --          |  | --     | 
|                                 |                 |              |                   |             |  |        | 
|                                 |                 |              |                   |             |  |        | 
|Balances, December 31, 2006      |                 | 10           |                   | $  9,975    |  | 23,212 | 
|                                 |                 |              |                   |             |  |        | 

See
accompanying notes to unaudited condensed consolidated financial statements.

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# GLOBAL MED
TECHNOLOGIES, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)

|                                                                   | Year Ended December 31, |        
|------------------------------------------------------------------ | ----------------------- | -------
|
|CASH FLOWS FROM OPERATING ACTIVITIES:                              |                         |        
|                                                                   |                         |        
|Net Income (loss)                                                  |                         | $ 1,381
|Adjustments to reconcile net income (loss) to net cash provided by |                        
|(used in) operating activities:                                    |                         |        
|Depreciation                                                       |                         | 183    
|Amortization of software development costs                         |                         | 2      
|Issuance of common stock, options and warrants                     |                        
|for services and other                                             |                         | 230    
|Fair value of derivatives financial instruments                    |                         | (724   
|                                                                   |                         |        
|Other financing costs                                              |                         | --     
|Bad debt expense                                                   |                         | 59     
|Notes receivable allowance for uncollectible amounts               |                         | --     
|Changes in operating assets and liabilities:                       |                        
|Accounts receivable-trade                                          |                         | (2,211 
|Accrued tax expense                                                |                         | 153    
|Accrued revenues                                                   |                         | 624    
|Prepaid expenses and other assets                                  |                         | (20    
|Accounts payable                                                   |                         | 126    
|Accrued expenses                                                   |                         | 145    
|Accrued payroll                                                    |                         | 32     
|Accrued compensated absences                                       |                         | 80     
|Deferred revenue                                                   |                         | 1,164  
|                                                                   |                         |        
|Net cash provided by (used in) operating activities                |                         | 1,224  
|                                                                   |                         |        
|                                                                   |                         |        
|CASH FLOWS FROM INVESTING ACTIVITIES:                              |                         |        
|                                                                   |                         |        
|Purchases of equipment and fixtures                                |                         | (142   
|                                                                   |                         |        
|Net cash used in investing activities                              |                         | (142   
|                                                                   |                         |        

See
accompanying notes to unaudited condensed consolidated financial statements.

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# GLOBAL MED
TECHNOLOGIES, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)(In
thousands)

|                                                           | Year Ended December 31, |          
|---------------------------------------------------------- | ----------------------- | ---------
|
|CASH FLOWS FROM FINANCING ACTIVITIES:                      |                         |          
|                                                           |                         |          
|Debt repayment, related party                              |                         | $      --
|Exercise of options and warrants for cash                  |                         | 163      
|Dividend payments Series AA Preferred Stock, related party |                         | --       
|Principal payments under capital lease obligations         |                         | (16      
|Borrowings on long-term debt                               |                         | 40       
|Issuance of common stock for cash, net of offering costs   |                         | --       
|Principal payments on long-term debt                       |                         | (3       
|Redemption of Series AA Preferred Stock                    |                         | --       
|Repurchase of common stock and warrants                    |                         | --       
|Issuance of Series A Preferred Stock, net                  |                         | --       
|Costs associated with preferred stock                      |                         | (80      
|                                                           |                         |          
|Net cash provided by financing activities                  |                         | 104      
|                                                           |                         |          
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS       |                         | 1,186    
|                                                           |                         |          
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR             |                         | 1,368    
|                                                           |                         |          
|                                                           |                         |          
|CASH AND CASH EQUIVALENTS AT END OF YEAR                   |                         | $ 2,554  
|                                                           |                         |          

SUPPLEMENTAL
DISCLOSURES OF NONCASH TRANSACTIONS:

Cash
paid for interest in 2006 and 2005 was $13 thousand and $158 thousand,
respectively. Of the $158 thousand paid for interest in 2005, $145 thousand was
paid to a related party

The
Company recognized expenses on options of approximately $230 thousand and $780
thousand, for the years ended December 31, 2006 and 2005, respectively. Of the
option expense recognized in 2005, approximately $521 thousand related to
accelerated vesting of certain options that were issued prior to January 1, 2005
and $8 thousand related to normal expenses associated with the vesting of
options. In addition, approximately $251 thousand related to options issued to
consultants during 2005.

On
March 29, 2006, as the result of the reclassification of the preferred stock from
mezzanine equity to equity, the Company reclassified the embedded derivative
originally associated with the issuance of the Series A Convertible Preferred
Stock from a liability to additional paid in capital. See Note 6 for further
discussion.

The
Company issued $19 thousand in common stock to former directors as a result of a
cashless stock option exercise during 2006.

The
Company issued common shares to a related party for services valued at $7
thousand, for the year ended December 31, 2005.

See
accompanying notes to unaudited condensed consolidated financial statements.

F-8



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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.     
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF
BUSINESS

On May
23, 1995, The Wyndgate Group, Limited (Wyndgate) merged with
National MRO, Inc. (National MRO) and National MRO subsequently
changed its name to Global Med Technologies, Inc. (Global Med or the
Company). Global Med provides information management software
products and services to the health care industry. Wyndgate operates as a
division of Global Med and designs, develops, markets and supports information
management software products for blood banks, hospitals, centralized transfusion
centers and other healthcare related facilities.

The
Company has two main products in its Wyndgate division: SafeTrace and SafeTrace
Tx. SafeTrace is used by blood centers and hospitals to track blood donations.
SafeTrace Tx is used primarily by hospitals and centralized transfusion services
to help insure the quality of blood transfused into patient-recipients. Both
products are designed to help the users comply with quality and safety standards
of the FDA for the collection and management of blood and blood products. The
Companys Wyndgate division earns revenues primarily through the sale of
software licenses, implementation of the software systems sold, and by providing
maintenance for the SafeTrace and SafeTrace Tx software systems. The
Companys revenues from Wyndgate comprised approximately 97% and 98% of the
Companys total revenues for the year ended December 31, 2006 and 2005,
respectively.

During
1999, Global Med formed a subsidiary, PeopleMed.com, Inc.
(PeopleMed), a Colorado corporation, which is approximately 83%
owned by the Company to develop a software application designed to give HMO
providers and other third party payers access to clinical information for
chronic disease patients. This application allows doctors and other medical
employees access to a patients history. Approximately 11% of PeopleMed is
owned by the Chairman and CEO of Global Med. The remaining 6% of PeopleMed
common shares are owned by unaffiliated shareholders. PeopleMeds revenues
for the past two years have not been material, ranging from 2%-3% of the
Companys total revenues.

RELATED PARTIES
AND RELATED PARTY ACTIVITY

Pursuant
to a Stock Purchase Agreement, dated as of December 16, 2005 between the
Company and Global Med International Limited (GMIL), the
Companys outstanding debt with GMIL in the amount of $528,700, the
outstanding Series AA Preferred Stock in the amount of $3.5 million, outstanding
common shares numbering 4.360 million and the outstanding warrants to purchase
11.186 million shares of common stock were paid off, redeemed, or repurchased,
respectively, for $8 million. In addition, the investors purchased 6.350 million
common shares from GMIL directly. In addition, all of the six members of the
Companys Board of Directors nominated by GMIL resigned. As a result of the
above, effective December 16, 2005, GMIL is no longer a considered related party
of the Company.

As a
result of these transactions and the relationships that existed until December
16, 2005, the financial condition and results of operations of Global Med may
not necessarily have been indicative of those that would have resulted if Global
Med were unaffiliated with the related party entities mentioned above.

BASIS OF
CONSOLIDATION

The
consolidated financial statements include the accounts of Global Med and its
majority-owned subsidiary. Intercompany accounts and transactions are eliminated
in consolidation. There is no minority interest reflected in the consolidated
balance sheets at December 31, 2006 and 2005 because PeopleMed had a
stockholders deficit.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

USE OF ESTIMATES

The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires the Companys
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
expenses during the reporting period. Actual results could differ from those
estimates.

CASH AND CASH
EQUIVALENTS

For
purposes of the accompanying financial statements, the Company considers all
highly liquid investments with original maturities of three months or less when
purchased to be cash equivalents.

CREDIT RISK AND
MARKET RISK

Accounts
receivable at December 31, 2006 and 2005 are derived primarily from SafeTrace
and from SafeTrace Tx sales and related services to blood centers and blood
center service providers located in the United States and internationally. The
International amounts are not material. Historically, the Company has not
required collateral or other security to support customer receivables. In order
to reduce credit risk, the Company typically requires substantial down payments
and progress payments during the course of an installation of its software
products. The Company establishes allowances for doubtful accounts based upon
factors surrounding the credit risk specific to customers.

The
Company has customers located in numerous locations across the United States and
Puerto Rico and sales are not concentrated in any geographic or economic region.
The Company also has international customers in Africa and Canada.
PeopleMeds customer is located in the State of Colorado.

ALLOWANCE FOR
UNCOLLECTIBLE ACCOUNTS RECEIVABLES AND ACCRUED REVENUES

The Company
regularly evaluates the collectibility of its trade accounts receivable and
unbilled receivables balances based on a combination of factors. The Company
establishes a general reserve for accounts receivable. In addition, when a
customers account becomes past due, the Company initiates dialogue with
the customer to determine the cause. If it is determined that the customer will
be unable to meet its financial obligation, such as in the case of a bankruptcy
filing, deterioration in the customers operating results or financial
position or other material events impacting their business, the Company records
a specific reserve for bad debt to reduce the related receivable to the amount
it expects to recover given all information presently available. The Company
also records reserves for bad debt for all other customers based on certain
other factors including the length of time the receivables are past due and
historical collection experience with individual customers. If circumstances
related to specific customers change, the estimates of the recoverability of
receivables could materially change. The Companys allowance for
uncollectible accounts receivable and unbilled receivables totaled $202 thousand
and $143 thousand at December 31, 2006 and 2005, respectively, and is included on
the consolidated balance sheet as a reduction of accounts receivable and accrued
revenues.

ALLOWANCE FOR
NOTES RECEIVABLE AND ACCRUED INTEREST

The Company
evaluates the collectibility of its notes receivable and the related accrued
interest. During the three months ended December 31, 2005, the Company
determined that its notes receivable and the related accrued interest of $565
thousand were impaired. As a result, the Company set up a reserve for the entire
amount of the notes receivable and accrued interest during this period. The
Company renegotiated the original notes receivable term and extended it for an
additional five years so that the principal and the related interest now mature
in 2010. In the event the parties to the notes receivable eventually are able to
repay some or all of the outstanding balance of the notes
receivable and accrued interest, the Company could potentially recognize a gain
ranging between $0 and $605 thousand, as of December 31, 2006.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

SUMMARY
JUDGMENT DEPOSIT

In
September 2002, Global Med filed a lawsuit against Donnie L. Jackson, Jr.,
Global Meds former Vice President of Sales and Marketing. Global Med
alleges, among other things, that prior to his resignation in July 2002 Mr.
Jackson misappropriated certain trade secrets of Global Med. After leaving
Global Med, Mr. Jackson became a management employee of one of Global Meds
competitors. On March 30, 2005, the Superior Court of the State of
California in and for the County of El Dorado granted the motion for summary
judgment for Donnie L. Jackson, Jr. On September 1, 2005, the Company
deposited $1.004 million with the Superior Court in the State of California in
the County of El Dorado. This deposit represented potential fees and
attorneys costs the Company could be required to pay in the event the
Company does not prevail on appeal. The $1.004 million is classified as a
Deposit in escrow on the Companys balance sheet as of December
31, 2006. Based on external evidence and the advice of legal counsel, the
Company has determined that it is more likely than not that the Company will be
required to pay the $1.004 million that is currently classified as a
Deposit in escrow. As a result, the Company expensed the amount of
the Deposit in escrow and set up a liability for $1.004 million in the form of
Litigation accrual as of December 31, 2005. In December 2006, the
summary judgment was reversed by the California Court of Appeals and the matter
was remanded to the trial court. Unless Mr. Jackson persuades the appellate
panel to rehear the case or persuades the California Supreme Court to review it,
the case will be remanded for trial as directed in the opinion. Global Med
believes that the California Appellate Courts opinion may result in the
return of the $1.004 million deposit the Company made in September 2005 with the
Superior Court in the State of California. In the event the Company prevails,
the Company could recognize a reduction in expenses ranging between $0 and
$1.004 million.

EQUIPMENT,
FURNITURE AND FIXTURES

Equipment,
furniture and fixtures are stated at cost. Depreciation and amortization, which
includes amortization of assets under capital leases, is based on the
straight-line method over estimated useful lives ranging from three to five
years.

SOFTWARE
DEVELOPMENT COSTS

In
accordance with the provisions of Statement of Financial Accounting Standard
(SFAS) No. 86, Accounting for the Costs of Computer Software to
be Sold, Leased or Otherwise Marketed, the Company capitalizes software
development and production costs once technological feasibility has been
achieved. Software development costs incurred prior to achieving technological
feasibility are included in research and development expense in the accompanying
statements of operations.

Capitalized
software development costs are reported at the lower of unamortized cost or net
realizable value. Commencing upon the initial product release or when software
development revenue has begun to be recognized, these costs are amortized, based
on current and future revenue for each product with an annual minimum equal to
the straight-line amortization over the remaining estimated economic life of the
product, generally three to four years. For the years ended December 31, 2006
and 2005, the Company recorded approximately $2 thousand and $13 thousand of
amortization of software development costs, respectively.

During
the years ended December 31, 2006 and 2005, the Company did not capitalize any
costs related to SafeTrace Tx. The Company discontinued capitalizing costs
related to this product because the remaining period for amortizing software
development costs was less than one year. The Company does not expect to begin
capitalizing software development costs for its products in the near future.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NONCOMPETE
AGREEMENTS

In
1996, the Company entered into non-compete agreements with certain key
employees. The provisions of these non-compete agreements with these employees
have expired. At December 31, 2006 and 2005, $35 thousand remains payable
whenever sufficient cash flow, as defined, is available as determined by the
Companys Board of Directors.

DEFERRED
REVENUE

Deferred
revenue represents contractual billings to customers. It is principally
comprised of support and maintenance and implementations revenues for which the
customer has been billed but the services or products have not yet been
performed or delivered, respectively. Some of the amounts in deferred revenues
are also be in accounts receivable. As of December 31, 2006 and 2005, approximately
$1.225 million and $429 thousand, respectively, of deferred revenue that was also
in accounts receivable.

INCOME
TAXES

Deferred  tax
assets and liabilities are recognized for the future tax consequences  attributable to
differences between the financial statement carrying amounts of  existing assets and
liabilities and their respective taxbases.  Deferred tax assets  and liabilities are
measured using enacted tax rates expected to apply to  taxable income in the years in
which those temporary differences are expected to  be recovered or settled. A valuation
allowance is required to the extent any  deferred tax assets may not be realizable.

FINANCIAL
INSTRUMENTS

The
fair value of a financial instrument represents the amount at which the
instrument could be exchanged in a current transaction between willing parties,
other than in a forced sale or liquidation. Significant differences can arise
between the fair value and carrying amount of financial instruments that are
recognized at historical cost amounts. The fair value of the Companys debt
instruments approximates fair value based on the Companys current
incremental borrowing rates for similar types of borrowing arrangements. Also,
the carrying amounts of the Companys financial assets approximate fair
value due to the short-term maturities of these items.

The
fair value of derivative financial instruments, all of which relate to the
issuance of the Companys common stock upon conversion or redemption of
convertible preferred stock and the exercise of related warrants, is estimated
using the Black Scholes pricing model and assumptions related to the estimated
term of those instruments, the volatility of the price of the Companys
common stock, interest rates and the probability of such conversion or
redemption.

DERIVATIVE
FINANCIAL INTSTRUMENTS

The
Series A Convertible Preferred Stock and related warrants included certain
terms, conditions and features through March 29, 2006, which required separate
accounting for as embedded derivative liabilities at estimated fair value. The
determination of fair value included significant estimates by management
including the term of the instruments, volatility of the price of the
Companys common stock, interest rates and the probability of conversion,
redemption or a future dilutive financing transaction, among other items. The
fluctuations in estimated fair value were significant and had a significant
impact on the Companys reported financial condition and results of
operations through March 29, 2006. On March 29, 2006, certain terms related to
the Series A Convertible Preferred Stock were renegotiated. As a result of these
renegotiated terms, the derivative features were eliminated. See further
discussion in Note 6 of the Financial Statement.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

REVENUE
RECOGNITION

The  Company
recognizes  revenue in  accordance  with the  American  Institute  of  Certified  Public
Accountants  Statement of Position (SOP) No. 97-2, Software Revenue
Recognition.

The Companys
standard software license agreement for the Companys products provides for
an initial fee to use the product in perpetuity up to a maximum number of users.
Fees from software licenses are recognized as revenue upon shipment, provided
fees are fixed and determinable and collection is probable. Fees from licenses
sold together with consulting services are generally recognized upon shipment
provided that the above criteria have been met, payment of the license fees is
not dependent upon the performance of the consulting services and the consulting
services are not essential to the functionality of the licensed software. In
instances in which the consulting services are not essential to the
functionality of the software but payment of the license fee is due at the
earlier of the performance of specific consulting services or the passage of
time, the license fee is recognized ratably over the anticipated period of
performance of the services or ratably over the license fee billing period,
whichever is more readily determinable.

For
arrangements with multiple elements, the Company allocates revenue to each
element of a transaction based upon its fair value as determined by vendor
specific objective evidence. Vendor specific objective evidence of fair
value for all elements of an arrangement is based upon the normal pricing and
discounting practices for those products and services when sold separately.
Pricing practices may be modified in the future, which could result in changes
in our vendor specific objective evidence of fair value for these undelivered
elements. As a result, future revenue recognition for multi-element arrangements
could differ significantly from historical results.

If an
arrangement does not qualify for separate accounting of the software license and
consulting transactions, then new software license revenue is generally
recognized together with the consulting services based on contract accounting
using the percentage-of-completion method. Contract accounting is generally
applied to arrangements when services include significant modification or
customization of the software. Progress towards completion is generally measured
based on hours incurred versus projected total hours. The projected costs
associated with contract accounting are accrued at rates consistent with the
revenue recognized under percentage of completion.

Certain
of the Companys contracts include warranties that provide for refunds of
all or a portion of the software license and/or other fees in the event that the
Company is unable to provide maintenance services, for which there is a separate
fee, for the contractually prescribed period. Contracts with these provisions
are accounted for in accordance with the policies above.

The
Company provides consulting services that include implementation, training and
the performance of other services to its customers. Revenue from such services
is generally recognized ratably over the period during which the applicable
service is to be performed. In addition, the Company may recognize certain
implementation revenues based on the hourly rates in effect on the contract
multiplied by the number of hours completed.

Support
agreements generally call for the Company to provide technical support and
software updates, on a when-and-if-available basis to customers.
Revenue from technical support and software update rights is recognized ratably
over the term of the support agreement.

PeopleMed
has contracts that include fixed fee and per-member fees. The Company recognizes
revenues from these contracts as services are provided.

The
Company recognized $131 thousand in implementation and consulting services
revenues during the year ended December 31, 2006 from services that were
performed prior to January 1, 2006. These revenues represented the value of
additional out-of-scope payments that were agreed to and made by one of the
Companys marketing partners during the twelve months ended December 31,
2006.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

RESEARCH AND
DEVELOPMENT

Research
and development costs are charged to expense as incurred. Research and
development funding by others is deferred and offset against capitalizable
costs. Funded research and development in excess of capitalizable costs is
recognized as contract research and development when the related product is
ready for commercial release.

SIGNIFICANT
CUSTOMERS

During
the years ended December 31, 2006 and 2005, there were no customers
accounting for more than 10% of revenues. Although the Company had no individual
customers accounting for more than 10% of revenues, one of the Companys
marketing partners that sells the Companys products directly to its
customers accounted for 26.7% and 22% of revenues during 2006 and 2005,
respectively. In addition, this same marketing partner accounted for 58.9% and
38.3% in accounts receivable as of December 31, 2006 and 2005, respectively.

INCOME (LOSS)
PER COMMON SHARE

The
following tables set forth the computation of basic and diluted earnings per
share for the years ended December 31:

|                                                    | In ($000s) |       
|--------------------------------------------------- | ---------- | ------
|
|Weighted average number of shares used in the basic |            |       
|Earnings per share computation                      |            | 23,167
|                                                    |            |       
|Effect of dilutive securities:                      |           
|Common stock options                                |            | 846   
|Common stock warrants                               |            | 1,261 
|Preferred stock convertible securities              |            | 13,854
|                                                    |            |       
|Dilutive securities                                 |            | 15,961
|                                                    |            |       
|Adjusted weighted average number of shares used in  |            |       
|Diluted earnings per share computation              |            | 39,128
|                                                    |            |       

There
were no dilutive securities for the year ended December 31, 2005 as there was a
net loss attributable to common shareholders for this period.

Basic
income or loss per common share excludes dilution and is computed by dividing
the net loss by the weighted-average number of common shares outstanding during
the periods presented. Diluted net income or loss per common share reflects the
potential dilution of securities that could participate in the earnings unless
their effort is antidilutive. Stock options, warrants outstanding and their
equivalents are included in diluted computations through the treasury
stock method unless they are antidilutive. Convertible securities are
included in diluted computations through the if converted method
unless they are antidilutive. Common share equivalents are excluded from the
computation, as their effect would be antidilutive. For the year ended December
31, 2005, approximately 21.6 million equivalent dilutive securities (primarily
convertible preferred stock, common stock options, and warrants), respectively,
have been excluded from the weighted-average number of common shares outstanding
for the diluted net loss per share computations as they are antidilutive.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

STOCK BASED
COMPENSATION

On
January 1, 2006, the Company adopted SFAS No. 123R, Share Based
Payment (SFAS 123R), which requires all share-based payments,
including grants of stock options, to be recognized in the income statement as
an operating expense, based on their grant date fair values.

Prior
to adopting SFAS 123R, the Company accounted for stock-based employee
compensation under Accounting Principles Board Opinion No. 25, Accounting
for Stock Issued to Employees (Opinion 25). The Company has
applied the modified prospective method in adopting SFAS 123R. Accordingly,
periods prior to adoption have not been restated.

Under
SFAS 123R, forfeitures are estimated at the time of valuation and reduce expense
ratably over the vesting period. This estimate is adjusted periodically based on
the extent to which actual forfeitures differ, or are expected to differ, from
the previous estimate. Under SFAS 123 and Opinion 25, the Company elected to
account for forfeitures when awards were actually forfeited, at which time all
previous pro forma expense was reversed to reduce pro forma expense for that
period. As of December 31, 2006, the Company anticipates all outstanding options
will vest.

The
following table illustrates the effect on net income and earnings per share if
the fair value based method had been applied to the prior periods:

| | Year
Ended December 31,
| | -----------------------

|                                               | 2005
|---------------------------------------------- | ----
|Net loss as reported                           |     
|Preferred dividends related party              |     
|Deemed dividend, issue of Series A Convertible |     
|Preferred Stock                                |     
|Total stock-based compensation expenses        |     
|determined under fair value accounting, net of |     
|tax effects                                    |     
|                                               |     
|Pro forma net loss available to common         |     
|Stockholders                                   |     
|                                               |     
|Net loss per common share                      |     
|As reported                                    |     
|Pro forma                                      |     
|                                               |     
|Assumptions:                                   |     
|Dividend Yield                                 |     
|Volatility factor                              |     
|Risk free interest rate                        |     
|Expected Life of Option (in years)             |     

The assumptions
used for the options issued during 2006 were as follows:

|Assumptions:                       |  |      |   | 
|---------------------------------- |  | ---- | - | 
|Dividend Yield                     |  | --   |  
|Volatility factor                  |  | 329  | %
|Risk free interest rate            |  | 4.56 | %
|Expected Life of Option (in years) |  | 9    |  

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# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

As a
result of adopting SFAS 123R on January 1, 2006, the Company recognized an
additional $196 thousand in non-cash compensation expense that would not have
been incurred if the Company had been able to continue to account for employee
stock options under APB 25 and not been required to adopt SFAS 123R. Basic and
diluted earnings per share for the year ended December 31, 2006 would have been
$0.07 and $0.04, respectively, if the Company had not adopted SFAS 123R,
compared to reported basic and diluted earnings per share of $0.06 and $0.04,
respectively.

Prior
to the adoption of SFAS 123R, the Company did not recognize any tax benefits of
deductions resulting from the exercise of stock options as operating cash flows
in the Statement of Cash Flows, because the Company had no tax expense due to
its prior years net losses. SFAS 123R requires the cash flows resulting
from the tax benefits resulting from tax deductions in excess of the
compensation cost recognized for those options (excess tax benefits) to be
classified as financing cash flows. The Company had no such tax benefits during
the current year so the adoption of SFAS 123R had no impact on the
Companys statement of cash flows.

RECENTLY ISSUED
FINANCIAL ACCOUNTING STANDARDS

In
March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of
Financial Assetsan amendment of FASB Statement No. 140 (SFAS No.
156). SFAS No. 156 requires an entity to recognize a servicing asset or liability
each time it undertakes an obligation to service a financial asset by entering
into a servicing contract if a) a transfer of the servicers assets meets
the requirements for sale accounting b) a transfer of the servicers
financial assets to a qualifying special-purpose entity in a guaranteed mortgage
securitization in which the transferor retains all of the resulting securities
and c) an acquisition or assumption of an obligation to service a financial
asset does not relate to financial assets of the servicer or its consolidated
affiliates. Further, SFAS No. 156 requires all separately recognized
servicing asset and liabilities to be initially measured at fair value, if
practicable. SFAS No. 156 must be adopted as of the first fiscal year that
begins after September 15, 2006. The Company does not expect the adoption
of SFAS No. 156 to have a material impact on the Companys
consolidated results of operations or financial position.

In
September 2006, the FASB issued SFAS No. 157, Fair Value Measures
(SFAS No. 157). SFAS No. 157 defines fair value, establishes a framework for
measuring fair value and enhances disclosures about fair value measures required
under other accounting pronouncements, but does not change existing guidance as
to whether or not an instrument is carried at fair value. SFAS No. 157 is
effective for fiscal years beginning after November 15, 2007, the year beginning
January 1, 2008 for the Company. The Company has not yet determined the impact
adoption will have on the Company.

In February
2007,  the FASB  issued  SFAS No. 159,  The Fair Value  Option for  Financial
Assets and  Financial  Liabilities (SFAS No. 159).  SFAS No. 159  permits
entities  to choose to  measure  many  financial  assets and  financial  liabilities  at
fair  value.  Unrealized  gains and losses on items for which the fair value  option has
been  elected  will be  reported  in  earnings.  SFAS  No.  159 is  effective  for
fiscal  years  beginning  after  November 15,  2007. The Company is currently  evaluating
the impact of SFAS No. 159 on its  consolidated  financial  position and results of
operations.

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# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

In
September 2006, the Securities and Exchange Commission issued Staff Accounting
Bulletin No. 108, Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements (SAB No.
108), which provides interpretive guidance on the consideration of the
effects of prior year misstatements in quantifying current year misstatements
for the purpose of a materiality assessment. SAB No. 108 is effective as of the end
of our 2006 fiscal year, allowing a one-time transitional cumulative effect
adjustment to beginning retained earnings as of January 1, 2006 for errors that
were not previously deemed material, but are material under the guidance in SAB
No. 108. The adoption of SAB 108 did not have an impact on the Companys
financial statements.

On
December 21, 2006, the Financial Accounting Standards Board (the
FASB) issued FASB Staff Position (FSP) EITF 00-19-2,
Accounting for Registration Payment Arrangements (the
FSP). Under this pronouncement, contingently payable registration
payment arrangements are accounted for separately from and do not affect the
classification of the underlying shares, warrants, or other financial
instruments subject to the registration payment provisions. This was
accomplished by amending SFAS No. 133 and No. 150 to include scope exceptions
for registration payment arrangements. A liability for a registration payment
arrangement should be recognized when payment is probable and the amount is
reasonably estimable (whether at inception or during the life of the
arrangement) in accordance with SFAS No.5, Accounting for
Contingencies.

The
FSP is effective for registration payment arrangements and the financial
instruments subject to such arrangements that are entered into or modified after
December 21, 2006. For registration payment arrangements and financial
instruments subject to those arrangements that were entered into before December
22, 2006, companies are required to account for transitioning to the FSP through
a cumulative-effect adjustment to the opening balance of accumulated deficit or
retained earnings in fiscal years beginning after December 15, 2006. However,
early adoption of this pronouncement for interim or annual periods for which
financial statements or interim reports have not been issued is permitted.
Accordingly, the Company adopted the FSP effective with the quarter ended
December 31, 2006.  The adoption of the FSP did not have an impact on the Companys
financial statements.

In
June 2006, the FASB issued Interpretation No. 48, Accounting for
Uncertainty in Income Taxes (FIN 48). FIN 48 clarifies the
accounting for uncertainty in income taxes recognized in an enterprises
financial statements in accordance with SFAS No. 109, Accounting for
Income Taxes. This Interpretation prescribes a recognition threshold and
measurement attribute for the financial statement recognition and measurement of
a tax position taken or expected to be taken in a tax return. This
Interpretation also provides guidance on derecognition, classification, interest
and penalties, accounting in interim periods, and disclosure. FIN 48 is
effective for fiscal years beginning after December 15, 2006. The Company
is in the process of evaluating the financial impact of adopting of FIN 48.

RECLASSIFICATIONS

Certain
reclassifications have been made to the 2005 financial statement to conform to
the 2006 presentation.

NOTE 2.     
FINANCING AGREEMENTS, RELATED PARTY

Financing
Agreements with Related Parties

Debt
and Series AA Preferred Stock Redemption

Pursuant
to a Stock Purchase Agreement dated as of December 16, 2005 between the
Company and Global Med International Limited (GMIL), the
Companys outstanding debt with GMIL in the amount of $528,700 was paid
off, the outstanding Series AA Preferred Stock (Series AA) in the
amount of $3.5 million were redeemed, and outstanding common shares numbering
4,860,195 and warrants numbering 11,186,430 were redeemed. The annual interest
rate on the debt was 15% and the annual dividend on the Series AA was 21%. A
table outlining the instruments acquired from GMIL is located in Note 6.

A
history of the financing agreements with related parties is located in the
Companys audited financial statements on Form 10-K for the year ended
December 31, 2004.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTE 3.     
RISKS AND UNCERTAINTIES

Global
Med designs, develops, markets and supports information management software
products for blood banks, hospitals, centralized transfusion centers and other
healthcare related facilities. Global Med currently has customers and recognizes
revenues from its proprietary products. However, prior to 2006, the number of
customers and levels of revenue were not sufficient for Global Med to attain
profitable operations. Due to the Companys reliance on its marketing
partners for obtaining new customers, the Companys continued domestic
revenue growth is in large part dependent upon its continuing relationships with
the existing or new marketing partners.

NOTE 4.     
INCOME TAXES

The
provision (benefit) for income taxes for the years ended December 31 were as
follows:

|                                                      | in ($000s) |           
|----------------------------------------------------- | ---------- | ----------
|
|Expected federal tax provision (benefit)              |            | $      522
|Effect of permanent differences                       |            | (152      
|Change in valuation allowance for deferred tax assets |            | (238      
|State tax benefit, net of federal provision (benefit) |            | 20        
|Other                                                 |            | 1         
|                                                      |            |           
|Income tax expense                                    |            | $      153
|                                                      |            |           

The
components of the deferred tax assets and liabilities as of December 31, 2006
and 2005 are as follows:

|                                               | in ($000s) |              
|---------------------------------------------- | ---------- | -------------
|
|Deferred tax assets:                           |            |              
|Net operating loss carry forwards              |            | $   8,536    
|Allowance for uncollectible accounts and notes |            |              
|Receivable                                     |            | 304          
|Unearned revenue and accrued expenses          |            | 1,706        
|                                               |            |              
|Gross deferred tax assets                      |            | 10,546       
|Valuation allowance                            |            | (10,546      
|                                               |            |              
|Net deferred tax assets                        |            | --           
|                                               |            |              
|Deferred tax assets, net                       |            | $          --
|                                               |            |              

The
components of income tax expense are as follows for the years ended December 31:

|                    | 2006 | 2005 
|------------------- | ---- | -----
|Current             |      |      
|Federal             |      | $ 118
|State               |      | 35   
|Deferred            |      |      
|Federal             |      | (218 
|State               |      | (20  
|Valuation allowance |      | 238  
|                    |      |      
|Total taxes         |      | $ 153
|                    |      |      

F-18



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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

The
differences between the Companys provision (benefit) for income taxes as
presented in the accompanying statements of operations and benefit for income
taxes computed at the federal statutory rate is comprised of the items shown in
the following table as a percentage of pre-tax income (loss) for the years ended
December 31:

|                                    | 2006 | 2005
|----------------------------------- | ---- | ----
|Income tax provision benefit at the |      |     
|statutory rate                      |      | 34  
|State taxes net of federal benefit  |      | 5   
|Reduction due to NOLs               |      | (29 
|Effect of allowance                 |      | --  
|                                    |      |     
|                                    |      | 10  
|                                    |      |     

The
Company has net operating loss carry forwards (NOLs) of
approximately $21.610 million which expire in the years 2008 to 2025, all of
which is subject to limitation under Section 382 of the Internal Revenue Code
due to the various changes in equity ownership during 2005, 2000, 1999, and
1997.

In
assessing the realizability of deferred tax assets, management concluded that it
is not more likely than not that the deferred tax assets will be realized. The
ultimate realization of the deferred tax assets is dependent on the generation
of future taxable income in the period in which the temporary differences become
deductible. As the Companys deferred tax asset is comprised primarily of
NOLs carryforwards which are subject to limitations and these limitations have
fluctuated in four of the past eleven years, the limitations on the use of the
NOLs, the potential for further NOL limitations and the susceptibility any
estimates of future income to variability have lead the Company to maintain its
valuation allowance for deferred taxes due to the uncertainty and extent to
which any deferred tax assets will be utilized.

# NOTE 5.     
LEASES AND DEBT

The
Company leases equipment and office space. Rental expense under operating leases
was approximately $251 thousand and $253 thousand for the years ended December
31, 2006 and 2005, respectively.

The
following represents the future minimum lease payments for all capital leases as
well as the non-cancelable operating leases at December 31, 2006 in ($000s):

|                                                        | CapitalLeases | OperatingLeases
|------------------------------------------------------- | ------------- | ---------------
|2007                                                    |               | $   29         
|2008                                                    |               | 31             
|2009                                                    |               | 19             
|2010                                                    |               | --             
|2011                                                    |               | --             
|Thereafter                                              |               | --             
|                                                        |               |                
|Total minimum lease payments                            |               | 79             
|                                                        |               |                
|Less amount representing interest                       |               | (22            
|                                                        |               |                
|Present value of minimum lease payments                 |               | 57             
|Less current portion of obligation under capital leases |               | (20            
|                                                        |               |                
|Obligation under capital lease, less current portion    |               | $   37         
|                                                        |               |                

F-19



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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

As of
December 31, 2006, the value of the Companys outstanding capital leases
included in the Companys balance sheet in equipment, furniture, and
fixtures, had an underlying cost of $95 thousand and accumulated depreciation of
$46 thousand. The interest rate on the capital lease is approximately 10.4% per
year.

The
Company had outstanding unsecured debt in the amount of $37 thousand for which
principal is to be paid as follows: $12 thousand, $14 thousand, and $11 thousand
for the years 2007, 2008, and 2009, respectively. Interest on the loan is
approximately 9% per year.

NOTE 6.     
STOCKHOLDERS EQUITY and MEZZANINE EQUITY

Sale
of Series A Convertible Preferred Stock and Detachable Warrants

On
December 16, 2005, pursuant to the terms of the Securities Purchase Agreement,
the Company sold $9.975 million of Series A Convertible Preferred Stock
(Series A) and warrants to certain investors. The Company received
net proceeds of $9.590 million for the Series A. There are 100 thousand shares
of Series A authorized and 9,975 shares of Series A outstanding with a stated
value of $1 thousand per share. The $9.975 million in Series A is convertible at
the holders option into common shares at $0.72 per share based on the Series
As stated value. Prior to March 29, 2006, the conversion price of the
Series A and the related warrants was subject to reset, under certain
circumstances, if the Company issued common stock or common stock equivalents at
a price below $0.72 per share. The Series A is presently convertible into 13.854
million shares of common stock at any time and does not have voting rights. The
Company cannot issue dividends on the common stock while the Series A is
outstanding unless an equal dividend is declared on the Series A. The dividend
on the Series A would be calculated by determining the number of common shares
the Series A is convertible into and then applying the same dividend to the
Series A that was provided to the common shareholders. The holders of the Series
A also received warrants to purchase 10.391 million common shares that can be
exercised at $0.72 per share. These warrants have a cashless exercise feature
and have a five-year term.

The
following table summarizes the securities that were issued by the Company in
conjunction with the above transaction.

|Security                             | Number | CommonSharesEquivalents
|------------------------------------ | ------ | -----------------------
|Series A Convertible Preferred Stock |        | 9,975                  
|Detachable Warrants                  |        | 10,390,625             

Common
shares underlying all of the securities mentioned above were registered during
2006.

The
Company can force conversion of the Series A provided the following have
occurred:

|o |  | The Companys stock has traded at or above a weighted average price of
$3.50 per share for 20 consecutive trading days,
|- |  | -----------------------------------------------------------------------------------------------------------------------

|o |  | The trading volume of the Companys common stock has averaged at least 150
thousand shares per day for 20 consecutive days trading days, and
|- |  | --------------------------------------------------------------------------------------------------------------------------------------------

|o |  | The common share ownership of the holder of the Series A after conversion would
not represent more than 4.99% of the Companys outstanding common stock
after conversion.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The
Company accounted for the Series A based on its stated value. The Company
accounted for the warrants based on an allocation of relative fair value from
the stated value of the Series A. In addition, the Company recognized financing
costs of $11.032 million associated with the embedded derivatives of the Series
A and the related warrants.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For a
period of one year from the effective date of the registration statement
underlying the common shares on the Series A and the warrants, the holders of
the Series A are entitled to up to 100% participation in any financing
arrangements. In addition, until the 90 days after the effective date of the
registration statement for the common shares underlying the Series A and related
warrants, the Company may not enter into equity sales or issue options unless
they are to employees, officers or directors of the Company.

On
December 16, 2005, the date the Company entered into the transaction to sell the
Series A, the price of the Companys common stock was $1.15 per share and
the conversion price was $0.72 per share. As a result of the conversion feature
on the Series A, the Company recognized a deemed dividend to the Series A
holders in the amount of approximately $9.975 million.

As
discussed more fully in Note 8, the Series A and the related warrants, until
March 29, 2006, had certain freestanding embedded derivative financial
instruments requiring separate accounting treatment under Statement of Financial
Accounting Standards No. 133 Accounting for Derivative Instruments and
Hedging Activities (SFAS 133). The total fair value of the
derivatives on December 16, 2005 was determined to be approximately $16.959
million and, accordingly, the entire $9.975 stated value of the Series A has
been allocated to those derivative instruments. In addition, because the fair
value of the derivatives exceeded the carrying value of the Series A, the
Company recorded a charge for other financing costs equal to the excess value,
in the amount of $11.032 million, upon consummation of the Series A transaction.

On
March 29, 2006, the Company renegotiated certain terms related to the Series A
and related warrants. From December 16, 2005 through March 28, 2006, the date
prior to the renegotiated terms, the Company classified the Series A as
mezzanine equity on the Companys balance sheet. As of March 29, 2006, the
Company reclassified the Series A from mezzanine equity to equity based upon the
renegotiated terms. The renegotiated terms resulted in the elimination and
addition of several terms that made mezzanine equity treatment more appropriate
for the period through March 28, 2006. The significant terms that were
eliminated and added are as follows:

|1. |  | Removal of cash payout for events that were outside the control of the Company,
which included a change of control;
|-- |  | -------------------------------------------------------------------------------------------------------------------

|2. |  | Removal of certain clauses that would result in the resetting of the conversion
price for the Series A and the related warrants in the event that the Company
issued common share equivalents at a price that was less than the conversion
price or exercise price of $0.72 per common share;
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | Removal of provisions that allowed for dividends to occur in the future under
certain circumstances;
|-- |  | ----------------------------------------------------------------------------------------------------

|4. |  | Removal of preference in liquidation;
|-- |  | -------------------------------------

|5. |  | Addition
of certain voting rights for preferred shareholders; and
|-- |  | -----------------------------------------------------------------

|6. |  | The ability for the Company to determine a maximum number of common shares that
the holders can convert the Series A and related warrants into.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------

In
addition, the revised terms have resulted in the Series A being closely and
clearly related to equity. The changes to the related warrant agreement also
resulted in the warrants no longer containing any embedded derivatives. As a
result, the Company believes that the embedded derivatives identified with the
Series A and the related warrants that existed prior to the renegotiated terms
are no longer applicable. As a result, the Company reversed the remaining
outstanding liability associated with the embedded derivatives in the amount of
$14.543 million, which included $724 thousand of gain recognized during the year
ended December 31, 2006, to additional paid in capital for the year ended
December 31, 2006.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Preferred
Stock

Series
AA

On
December 16, 2005, the Company redeemed all of the outstanding Series AA
Convertible Redeemable Preferred Stock. The Series AA Convertible Preferred
Stock was redeemed using the proceeds from the sale of the Series A.

The
following financial instruments held by GMIL or their affiliates were
repurchased by the Company for $8 million in conjunction with this transaction:

|Instrument                | Value | CommonSharesEquivalents
|------------------------- | ----- | -----------------------
|Convertible Redeemable    |       |                        
|Series AA Preferred Stock |       | $3,500,000             
|Warrants                  |       | $   909,378            
|Common Shares             |       | $3,061,922             
|Debt                      |       | $   528,700            

On
December 16, 2005, in conjunction with the purchase of the Series A, the
investors purchased 6,350,000 registered common shares directly from GMIL for $4
million.

Common
Stock Purchase Agreement

On
December 16, 2005, the Company entered into a Termination Agreement with Fusion
Capital Fund II, LLC, pursuant to which the Company and Fusion Capital mutually
agreed to terminate the Common Stock Purchase Agreement, dated March 16, 2005,
by and between the Company and Fusion Capital. As part of the termination of the
Common Stock Purchase Agreement, Fusion Capital received $575 thousand in Series
A. Fusion Capital had provided the Company with $450 thousand in cash proceeds
during the nine months ended September 30, 2005, and these proceeds were
originally to be applied towards the purchase of common stock in conjunction
with the Common Stock Purchase Agreement. As a result, the Company allocated the
$ 450 thousand in proceeds previously received from Fusion Capital towards the
purchase of the $575 thousand in Series A.

Options
and Warrants Exercised

During
the year ended December 31, 2006 and 2005, 257 thousand and 232 thousand
options, respectively, were exercised and the Company received $163 thousand and
$171 thousand, respectively, in cash proceeds. No warrants were exercised during
2006 or 2005.

NOTE 7.     
STOCK OPTION PLANS, WARRANTS, AND STOCK COMPENSATION PLAN

The
Second Amended and Restated 1997 Stock Option Plan (Plan) provides for the
issuance of options to purchase up to 2.2 million registered shares of common
stock to employees, officers, directors and consultants of the Company. Options
may be granted as incentive stock or as nonqualified stock options.

Only
employees of the Company are eligible to receive incentive options. As of May
31, 2000, options could no longer be issued under this Plan. As of December 31,
2006, options to purchase 1.063 million shares of the Companys common
stock at a weighted average exercise price of $1.12 per share were outstanding
under the Plan, of which all of the options to purchase shares were exercisable
at December 31, 2006.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

In the
second quarter of 2001, the Company adopted the 2001 Stock Option Plan
(2001 Plan). The 2001 Plan as amended provides for the issuance of
options to purchase up to 10 million registered shares of common stock to
employees, officers, directors and consultants of the Company. Options may be
granted as incentive stock options or as nonqualified stock options. Only
employees of the Company are eligible to receive incentive options. The 2001
Plan expires on December 28, 2010. As of December 31, 2006, options to purchase
6.111 million shares of the Companys common stock at a weighted average
exercise price of $0.90 per share were outstanding under the 2001 Plan, of which
4.917 million options to purchase shares were exercisable at December 31, 2006.
Options granted under the Plan vest on a straight-line basis, based on schedules
as determined by the Board of Directors upon grant and generally expire 10 years
after grant. During 2006, the Company issued 680 thousand stock options, 3
thousand were exercised, and 471 thousand options were cancelled under the 2001
Plan.

In
June 2003, the Companys Board of Directors approved the 2003 Stock Option
Plan (2003 Plan). The 2003 Plan provides for the issuance of stock
options exercisable to purchase up to 5 million shares of the Companys
common stock to employees, officers, directors and consultants. As of December
31, 2006, there were options to purchase 4.026 million shares under the 2003
Plan that were issued to such persons. The Company filed an S-8 registration
statement to register the 5 million shares issuable under the 2003 Plan in May
2004. The range of the exercise prices for these options is $0.45 to $1.50 per
share. The weighted-average exercise price of these options is $0.67 per share.
All of these options were exercisable as of December 31, 2006.

The
Company also periodically grants options to purchase shares of restricted common
stock. The shares underlying these options are not registered under the 1933
Act. As of December 31, 2006, there were options to purchase 385 thousand shares
of common stock at a weighted average exercise price of $1.80 per share through
2006 were outstanding, of which all were exercisable at December 31, 2006.

During
2006, the Company issued approximately 400 thousand options to consultants under the 2001 Plan and
recognized approximately $10 thousand in expenses associated with these grants.
Approximately 383 thousand of the options granted were cancelled in 2006.

The
following table presents the activity for options for the years ended as of
December 31:

|                               | 2006 | 2005       |  
|------------------------------ | ---- | ---------- | -
|
|Outstanding, beginning of year |      | 11,802,189 |  
|Granted                        |      | 680,000    |  
|Forfeited/cancelled            |      | (640,323   | )
|Exercised                      |      | (256,758   | )
|                               |      |            |  
|Outstanding, end of year       |      | 11,585,108 |  
|                               |      |            |  

*
Price reflects the weighted average exercise price.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARY

# NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

The
following table presents the composition of options outstanding and exercisable
as of December 31, 2006:

|                        | Options Outstanding |            | Exercisable Options |             |  |         |    
|----------------------- | ------------------- | ---------- | ------------------- | ----------- |  | ------- | ---
|
|$   0.45 - 0.55         |                     | 94,000     |                     |             |  | $     0 | .49
|0.56- 1.00              |                     | 7,484,164  |                     |             |  | 0       | .65
|1.01 - 1.50             |                     | 3,517,500  |                     |             |  | 1       | .18
|1.51 - 2.00             |                     | 313,694    |                     |             |  | 1       | .78
|2.45 - 3.00             |                     | 175,750    |                     |             |  | 2       | .52
|                        |                     |            |                     |             |  |         |    
|Total December 31, 2006 |                     | 11,585,108 |                     | $10,072,996 |  | 0       | .87
|                        |                     |            |                     |             |  |         |    

*Price
and life reflect the weighted average exercise price and weighted average
remaining contractual life, respectively.

Acceleration
of Option Vesting

On
December 16, 2005, the Company elected to accelerate the vesting on certain
employee options that were to vest in 2006 and 2007. As a result of this
accelerated vesting, the Company recognized approximately $521 thousand in
compensation expense during the fourth quarter of 2005. The decision to
accelerate the vesting was done in order to reward the Companys existing
employees for their loyalty and hard work. In the event these options are
exercised, this will result in additional cash for the Company. In addition, by
accelerating the vesting on these options in 2005, the Company expensed these
options under the rules in effect when these options were granted versus the
accounting rules that are effect in 2006. During 2005, the Company recognized
approximately $8 thousand in expenses related to stock options issued as of
December 31, 2004.

Warrants

The
following summarizes the outstanding warrants to purchase shares of common stock
of Global Med for the years ended December 31, 2006 and 2005:

|                                      | Number ofWarrants | WeightedAverageExercise Price
|------------------------------------- | ----------------- | -----------------------------
|Balance at December 31, 2004          |                   | 13,289,730                   
|Issued                                |                   | 10,675,626                   
|Repurchased                           |                   | (11,186,430                  
|Cancelled                             |                   | (385,000                     
|                                      |                   |                              
|Balance at December 31, 2005 and 2006 |                   | 12,393,926                   
|                                      |                   |                              

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

All of
the outstanding warrants are exercisable with exercise prices that range from
$0.25 to $1.25 per share and expire in the years 2007 to 2010.

In
conjunction with the December 16, 2005 sale of the Series A, the Company issued
10,390,626 warrants to the investors to purchase the same number of common
shares with a term of five years and an exercise price of $0.72 per common
share. In addition, the Company issued 285 thousand warrants to purchase the
same number of common shares with an exercise price of $1 per share and a term
of 5 years. These warrants were issued as fees for assistance in facilitating
the Series A Preferred Stock purchase. The Company cancelled 385 thousand
warrants that were issued in association with the sale of certain common stock.

NOTE
8.       DERIVATIVE FINANCIAL INSTRUMENTS

In
connection with the issuance of the Series A and the related warrants (see Note
6), on December 16, 2005 and prior to March 29, 2006 when certain terms of the
Series A were renegotiated, the Company evaluated the terms and conditions of
both instruments, and the related warrants, in order to determine whether such
terms and conditions and warrants represent embedded or freestanding derivative
instruments under the provisions of SFAS 133 and Emerging Issues Task Force
issue No. 00-19, Accounting for Derivative Financial Instruments Indexed
to, and Potentially Settled in a Companys Own Stock (EITF
00-19). As a result of these evaluations, the Company determined that
certain original features of the Series A prior to the renegotiated terms on
March 29, 2006 were deemed to be embedded derivatives. These features are as
follows:

|o |  | Conversion feature;
|- |  | -------------------

|o |  | Variable
number of shares to be issued upon certain triggering events;
|- |  | ----------------------------------------------------------------------

|o |  | Anti-dilution clause, and
|- |  | -------------------------

|o |  | Change
in control redemption premium clause
|- |  | -------------------------------------------

The
warrants related to the Series A contain an anti-dilution clause which is deemed
to be an embedded derivative. The embedded derivatives are accounted for on a
bundled basis in accordance with SFAS 133 Implementation Issue No.
B-15.

The
estimated fair value of the derivative instruments at inception (the date at
which all significant financial terms were finalized) and December 31, 2005 were
as follows:

|                          | December 16, 2005 | December 31, 2005  | March 28, 2006
|------------------------- | ----------------- | ------------------ | --------------
|Series A:                 |                   |                    |               
|Conversion Feature        |                   | $           15,932 |               
|Variable Number of Shares |                   | 283                |               
|Anti-Dilution             |                   | 321                |               
|Change in Control         |                   | 125                |               
|                          |                   |                    |               
|Warrants:                 |                   | 16,661             |               
|Anti-Dilution             |                   | 298                |               
|                          |                   |                    |               
|Total                     |                   | $           16,959 |               
|                          |                   |                    |               

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARY

# NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

The
net change in estimated fair value for the period from December 16, 2005 to
December 31, 2005 is included as a benefit in the statement of operations and
totaled $1.692 million for the year ended December 31, 2005. The net change in
estimated fair value for the period from January 1, 2006 through March 29, 2006
(renegotiation date) included a recognized gain of $724 thousand.

The
embedded derivatives for the conversion feature and the issuance of a variable
number of shares related to the Series A were valued using the Black-Scholes
option-pricing model in a manner similar to a call option. The anti-dilution
feature for the Series A and the warrants were valued using the Black Scholes
put valuation model. The following assumptions were used for valuing the Black
Scholes option and put pricing models and then a probability weight was added to
each embedded derivative:

|                                       | Series A Embedded Derivative |    
|-------------------------------------- | ---------------------------- | ---
|
|Estimated dividends                    |                              | -- 
|Expected volatility                    |                              | 320
|Risk-free interest rate                |                              | 4.4
|Estimated term (years)                 |                              | 10 
|                                       |                              |    
|Probability Weights                    |                              |    
|Beneficial conversion                  |                              | 100
|Variable number of shares to be issued |                              |    
|upon certain triggering events         |                              | 6  
|Anti-dilution clause                   |                              | 5  
|                                       |                              |    
|
|
|Estimated dividends                    |                              | -- 
|Expected volatility                    |                              | 243
|Risk-free interest rate                |                              | 4.3
|Contractual term (years)               |                              | 5  
|                                       |                              |    
|Probability Weights                    |                              |    
|Anti-dilution clause                   |                              | 5  

The
probability of the beneficial conversion was weighted as 100% because conversion
is completely within the control of the Series A holders. The probability for
the issuance of a variable number was assessed by reviewing the specific events
that would lead to the issuance of a variable number of additional shares and
then accumulating the probability weights of these items. The anti-dilution
clause probability was assessed by reviewing the specific circumstances that
would require the issuance of common stock equivalents at a price below $0.72
per share. The Company believes that this is highly unlikely given the
Companys current circumstances. The change in control provision was valued
using the premium attached to the change in control provision and then
probability weighted at 5%.

NOTE 9.     
CONTRIBUTIONS TO RETIREMENT PLAN

The
Company has a 401(k) retirement plan which covers eligible employees, as
defined, of the Company (the 401(k) Plan). Employees may defer up to fifteen
percent of their annual compensation up to the maximum amount as determined by
the Internal Revenue Service. Under the 401(k) Plan, the Company, at its
discretion, may make contributions to the plan. No Company contributions were
made to the 401(k) Plan in 2006 or 2005.

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##### Table of Contents

# GLOBAL
MED TECHNOLOGIES, INC. AND SUBSIDIARYNOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTE 10.     
COMMITMENTS AND CONTINGENCIES

The
Company has certain operating and capital lease obligations outstanding as of
December 31, 2006. The obligations associated with these operating and capital
leases are more fully described in Note 5.

In
September 2002, Global Med filed a lawsuit against Donnie L. Jackson, Jr.,
Global Meds former Vice President of Sales and Marketing. Global Med
alleges, among other things, that prior to his resignation in July 2002 Mr.
Jackson misappropriated certain trade secrets of Global Med. After leaving
Global Med, Mr. Jackson became a management employee of one of Global Meds
competitors. On March 30, 2005, the Superior Court of the State of
California in and for the County of El Dorado granted the motion for summary
judgment for Donnie L. Jackson, Jr. On September 1, 2005, the Company
deposited $1.004 million with the Superior Court in the State of California in
the County of El Dorado. This deposit represents potential fees and
attorneys costs the Company could be required to pay in the event the
Company does not prevail on appeal. The $1.004 million is classified as a
Deposit in escrow on the Companys balance sheet as of December
31, 2006. Based on external evidence and the advice of legal counsel, the
Company has determined that it is more likely than not that the Company will be
required to pay the $1.004 million that is currently classified as a
Deposit in escrow. As a result, the Company expensed the amount of
the Deposit in escrow and set up a liability for $1.004 million in
the form of Litigation accrual as of December 31, 2005. The Company
appealed the judges decision and in December 2006, the summary judgment
was reversed by the California Court of Appeals and the matter was remanded to
the trial court. Unless Mr. Jackson persuades the appellate panel to rehear the
case or persuades the California Supreme Court to review it, the case will be
remanded for trial as directed in the opinion. Global Med believes that the
California Appellate Courts opinion may result in the return of the $1.004
million deposit the Company made in September 2005 with the Superior Court in
the State of California. In the event the Company prevails, the Company could
recognize a reduction in expenses ranging between $0 and $1.004 million.

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##### Table of Contents

ITEM 8.     
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM
8A. CONTROLS AND PROCEDURES

(A)     Evaluation Of Disclosure Controls And Procedures

As of
the end of the period covered by this report, the Company carried out an
evaluation, under the supervision and with the participation of the
Companys Principal Executive Officer/Principal Financial Officer, of the
effectiveness of the design and operation of the Companys disclosure
controls and procedures. The Companys disclosure controls and procedures
are designed to provide a reasonable level of assurance of achieving the
Companys disclosure control objectives. The Companys Principal
Executive Officer/ Principal Accounting Officer has concluded that the
Companys disclosure controls and procedures are, in fact, effective at
this reasonable assurance level as of the period covered.

(B)     Changes In Internal Controls Over Financial Reporting

In
connection with the evaluation of the Companys internal controls during
the Companys last fiscal quarter, the Companys Principal Executive
Officer and Principal Financial Officer has determined that there are no changes
to the Companys internal controls over financial reporting that has
materially affected, or is reasonably likely to materially effect, the
Companys internal controls over financial reporting.

(C)     
Internal Controls Over Financial Reporting.

As a
result of Section 404 of the Sarbanes-Oxley Act of 2002 and the rules issued
hereunder, the Company will be required to furnish in its Annual Report on Form
10-KSB for the year ending December 31, 2007 a report on managements
assessment of the effectiveness of our internal controls over financial
reporting. For the year ended December 31, 2008, the Companys independent
registered public accounting firm, Ehrhardt Keefe Steiner & Hottman PC
(EKS&H), will be required to attest to and report on
managements assessment. The Company has begun certain preliminary work
related to Section 404, the Company has not yet evaluated or tested our
compliance with this Section. Although the Company believes that the controls
and procedures that were in place for the year ended December 31, 2006 provide
reasonable assurance the Companys control objectives are being met,
neither the Company nor our auditors have confirmed this objective as will be
required under Section 404. As a result, there is the possibility that material
deficiencies as defined in Section 404 could exist.

# PART
III

ITEM 9.     
DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION
16(a) OF THE  EXCHANGE ACT OF THE REGISTRANT

Identification
of Directors and Executive Officers

The
following sets forth certain information with respect to the officers and
directors of the Company.

20



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##### Table of Contents

# MANAGEMENT

Our
directors and executive officers and their ages as of the date of this filing
are as follows:

|Name                  | Age | Position | Officer or Director Since
|--------------------- | --- | -------- | -------------------------
|Michael I. Ruxin, M.D |     | 61       |                          
|                      |     |          |                          
|                      |     |          |                          
|                      |     |          |                          
|Thomas F. Marcinek    |     | 53       |                          
|                      |     |          |                          
|Robert R. Gilmore     |     | 55       |                          
|                      |     |          |                          
|Sarah L. Eames        |     | 48       |                          
|                      |     |          |                          
|T. Kendall Ken Hunt |     | 63       |                          
|                      |     |          |                          

The
directors of Global Med are elected to hold office until the next annual meeting
of shareholders and until their respective successors have been elected and
qualified. Officers of Global Med are elected by the Board of Directors and hold
office until their successors are elected and qualified.

The
following sets forth biographical information concerning Global Meds
directors and executive officers for at least the past five years. All of the
following persons who are executive officers of Global Med are full time
employees of Global Med.

Michael I.
Ruxin, M.D.,the founder of Global Med, has been an officer and director of Global
Med since its incorporation in 1989 and is currently the Chairman and Chief Executive
Officer of Global Med. Dr. Ruxin received a B.A. degree from the University of
Pittsburgh and a M.D. degree from the University of Southern California. Dr. Ruxin is
a licensed physician in California and Colorado.

Thomas F.
Marcinekbecame a Director and Compensation Committee member of Global Med
Technologies, Inc. on March 31, 2006 and has been the President and Chief Operating
Officer since March 1998. Previously, Mr. Marcinek was the President of the Data
Technologies Group, a division of Henry Schein, Inc., Melville, New York. Mr. Marcinek
was also the president and owner of a practice management software consulting firm
prior to joining Global Med. Mr. Marcinek received his BA Degree in Management with
Honors from St. Mary's College of California and has nearly two decades experience
as an MIS specialist.

Robert R.
Gilmorebecame a Director and Audit Committee Chairman of Global Med Technologies,
Inc. on March 31, 2006. Mr Gilmore is a CPA and, since May 2006, has been the CFO of
NextAction Corporation, a private company engaged in multi-channel direct marketing
using technology based proprietary lead generation methods for the retail industry.
Previously, Mr. Gilmore served as an independent financial consultant to a number of
companies, including NextAction Corporation. Mr. Gilmore was the Chief Financial
Officer of Teamshare, Inc. (a software company) from 2000 to 2002 and as Vice President
Finance and Chief Financial Officer of Dakota Mining Corporation from 1991 to 1997.
Mr. Gilmore is a Director of Eldorado Gold Corporation, serving as Chairman of its
Audit Committee and is a member of its Compensation Committee. Mr. Gilmore is also
a Director of Fronterra Copper Corporation and serves as the Chairman of its Audit
Committee. Mr. Gilmore is also a Director of Pixxures, Inc., a private company
providing digitally produced aerial mapping products and services.

Sarah
L. Eames became a Director, Audit Committee member, and Chairman
of the Compensation Committee of Global Med Technologies, Inc. on March 31,
2006. Separately, she has served as a director of Allied Healthcare
International since June 2002 and as Executive Vice President of the company
since November 2004. She served as Chief Executive Officer of the company from
January 2004 to November 2004, as Chief Operating Officer of the company from
June 2001 to November 2004, and as President of the company from May 1998 to
November 2004. She was Executive Vice President of Business Development and
Marketing of the company from June 1997 to May 1998. Prior to joining the Allied
Healthcare International, Ms. Eames was employed by Johnson & Johnson
Professional, Inc. as a Business Development Consultant from 1996 to 1997. From
June 1995 to November 1995, Ms. Eames served as Vice President of Marketing for
Apria Healthcare Group, Inc., a California-based home healthcare company. From
1980 to 1995, Ms. Eames held various marketing and business development
positions at Abbey Healthcare Group Inc., a predecessor of Apria Healthcare
Group, Inc.

21



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T. Kendall
Ken Huntbecame a Director and member of the Audit Committee of Global Med
Technologies, Inc. on March 31, 2006. Mr. Hunt is Chairman of the Board and
Chief Executive Officer of VASCO Data Security International, Inc. (VASCO).
He served as VASCOs Chief Executive Officer through June 1999. He returned as CEO
in November 2002. He has been a Director of VASCO since July 1997 and currently serves
a one-year term. He served since 1990 as Chairman and President of VASCOs
predecessor, VASCO Corp. He is also affiliated with several high-tech early-stage
companies, serving as a member of their Board of Directors. He is a co-founder and on
the Board of Secured Services, Inc., a publicly-held company, listed on the NASDAQ
(Symbol: ssvc). Mr. Hunt is President of the Belgian Business Club of Chicago.
Additionally, he is on the Advisory Board for the Posse Foundation, an organization
dedicated to providing full college scholarships to urban minority youth leaders
through its partnerships with elite universities across the U.S. He holds an MBA
from Pepperdine University, Malibu, California, 1979, and a BBA from the University of
Miami, Florida, 1965.

Audit
Committee

On
March 31, 2006, Robert Gilmore, Sarah Eames and Ken Hunt became members of the
Companys Audit Committee. The audit committee members met three times
during 2006 to approve each Form 10-QSB and met in 2007 to approve the Form
10-KSB. Mr. Gilmore is considered a financial expert. All of the Audit
Committees members are considered independent. A current copy of the Audit
Committee charter, which our Board has adopted, is available on our website at
www.globalmedtech.com. A copy of the Audit Committee Charter may also be
obtained, free of charge, by writing to the Secretary of Global Med
Technologies, Inc., 2600 West Colfax, Suite C-420, Lakewood, Colorado 80215.

Compensation
Committee

The
Compensation Committee, whose chairman is Mrs. Eames and whose other current
members are Dr. Ruxin and Mr. Marcinek met twice in 2006. This committee is
responsible for establishing our executive officer compensation policies and
administering such policies. The Compensation Committee studies, recommends and
implements the amount, terms and conditions of payment of certain forms of
compensation to executive officers.

Compensation
Committee Interlocks and Insider  Participation.  Both Dr. Ruxin, Chairman and CEO of the
Company, and  Mr.  Marcinek,  President,  Chief Operating  Officer and Director of the
Company,  are members of the  Compensation  Committee.  As members of the  Compensation
Committee,  they may participate in  deliberations  with the Companys  Board of
Directors  concerning  executive  officer  compensation.  The  employment  agreements of
Dr. Ruxin and the  Companys other named executive officers are determined and
approved by the Board of Directors.

Compliance
With Section 16(a) Of The Exchange Act

Based
on information provided to the Company, and except as stated below, it is
believed that all of the Companys directors, executive officers and
persons who own more than 10% of the Companys common stock were in
compliance with Section 16(a) of the Exchange Act of 1934 during the last fiscal
year. T. Kendall Hunt failed to timely file a Form 4 with respect to the
purchase of common stock.

Code
of Ethics

The
Company has a Code of Ethics that has been approved by the Board of Directors.
The Code of Ethics was filed as an exhibit to the Companys Form S-1
Registration Statement that was filed on December 6, 2004. The Code of
Ethics was filed as Exhibit 10.72 to the Form S-1. A current copy of the Code of
Ethic is available on our website at www.globalmedtech.com. A copy of the Code
of Ethics may also be obtained, free of charge, by writing to the Secretary of
Global Med Technologies, Inc., 2600 West Colfax, Suite C-420, Lakewood, Colorado
80215.

22



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##### Table of Contents

ITEM 10.     
EXECUTIVE COMPENSATION

Summary
Compensation Table

The following
table sets forth information regarding compensation paid to the Companys
CEO and the other executive officers of the Company who received in excess of
$100 thousand of salary and bonus from the Company during the three years ended
December 31, 2006:

# SUMMARY
COMPENSATION TABLE

|Name andPrincipalPosition | Year | Salary($) | Bonus($) | StockAwards($) | OptionAwards($) | All OtherCompensation($) | Total($)
|------------------------- | ---- | --------- | -------- | -------------- | --------------- | ------------------------ | --------
|Michael I.                |      |           |          |                |                 |                          |         
|Ruxin, M.D                |     
|Chairman and              |      |           |          |                |                 |                          |         
|CEO                       |      | 2006      |          | $351,714       |                 | --                       |         
|                          |      | 2005      |          | 290,866        |                 | 50,000                   |         
|                          |      | 2004      |          | 275,000        |                 | --                       |         
|                          |      |           |          |                |                
|Thomas F.                 |      |           |          |                |                 |                          |         
|Marcinek,                 |     
|President and             |      |           |          |                |                 |                          |         
|COO and Director          |      | 2006      |          | $259,037       |                 | --                       |         
|                          |      | 2005      |          | 204,616        |                 | 25,000                   |         
|                          |      | 2004      |          | 175,000        |                 | --                       |         

|(1) |  | Dr. Ruxin received $5,912 in life insurance premiums, an annual car allowance of
$9,183, and $4,949 in medical reimbursements.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------

|(2) |  | Dr. Ruxin received $5,912 in life insurance premiums, an annual car allowance of
$9,810, and $3,657 in medical reimbursements.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------

|(3) |  | Dr. Ruxin received $5,912 per annum in life insurance premiums and an annual car
allowance of $10,917, and $1,392 in medical reimbursements.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------

|(3) |  | Dr. Ruxin received $5,912 per annum in life insurance premiums and an annual car
allowance of $8,459.
|--- |  | -----------------------------------------------------------------------------------------------------

|(4) |  | Mr. Marcinek received a $5,400 per year car allowance and $1,271 in medical
reimbursements.
|--- |  | -------------------------------------------------------------------------------------------

|(5) |  | Mr. Marcinek received a $5,400 per year car allowance and $2,888 in medical
reimbursements.
|--- |  | -------------------------------------------------------------------------------------------

|(6) |  | Mr. Marcinek received a $5,400 per year car allowance and $1,505 in medical
reimbursements.
|--- |  | -------------------------------------------------------------------------------------------

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##### Table of Contents

None
of the executive officers or employees received non-equity incentive plan or
deferred compensation for any of the periods listed above.

# OUTSTANDING
EQUITY AWARDS AT FISCAL YEAR-END

|              | Option Awards |           |  |   | 
|------------- | ------------- | --------- |  | - | 
|
|
|Michael I.    |               |           |  |   | 
|Ruxin, M.D    |              
|Chairman and  |               |           |  |   | 
|CEO           |               | 1,000,000 |  | - | 
|              |               | 250,000   |  | - | 
|              |               | 1,000,000 |  | - | 
|              |               | 500,000   |  | - | 
|              |               | 250,000   |  | - | 
|              |               |           |  |   | 
|Thomas F.     |               |           |  |   | 
|Marcinek,     |              
|President and |               |           |  |   | 
|COO           |               | 350,000   |  | - | 
|              |               | 150,000   |  | - | 
|              |               | 500,000   |  | - | 
|              |               | 500,000   |  | - | 
|              |               | 250,000   |  | - | 

During
2006, there were no plan-based grants, no option exercises or vesting, no
pension benefits accrued, and no non-qualified deferred compensation for the
executive officers of the Company. In addition, there were no stock-based awards
outstanding as of December 31, 2006.

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##### Table of Contents

# DIRECTOR
COMPENSATION

|Name       | Fees Earnedor Paid inCash ($) | StockAwards($) | OptionsAwards ($) | Non-EquityIncentive PlanCompensation($) |  | Change in PensionValue andNonqualifiedDeferredCompensationEarnings($) |  | All OtherCompensation($) | Total($)
|---------- | ----------------------------- | -------------- | ----------------- | --------------------------------------- |  | --------------------------------------------------------------------- |  | ------------------------ | --------
|Robert R   |                               |                |                   |                                         |  |                                                                       |  |                          |         
|Gillmore   |                               | $5,000         |                   | --                                      |  | $30,000                                                               |  | -                        |         
|Sarah L    |                               |                |                   |                                         |  |                                                                       |  |                          |         
|Eames      |                               | $5,000         |                   | --                                      |  | $30,000                                                               |  | -                        |         
|T. Kendall |                               |                |                   |                                         |  |                                                                       |  |                          |         
|Ken      |                               |                |                   |                                         |  |                                                                       |  |                          |         
|Hunt       |                               | $5,000         |                   | --                                      |  | $25,000                                                               |  | -                        |         

Stock
Option Plans and Other Issuances

In the
second quarter of 2001, Global Med adopted the 2001 Stock Option Plan
(2001 Plan). The 2001 Plan provided for the issuance of options to
purchase up to 15 million registered shares of common stock to employees,
officers, directors and consultants of Global Med. Options may be granted as
incentive stock options or as nonqualified stock options. Only employees of
Global Med are eligible to receive Incentive Options. The 2001 Plan expires on
December 28, 2010. In June 2003, the Board of Directors of Global Med approved a
change in the 2001 Plan. The Board of Directors of Global Med authorized an
amendment to the 2001 Plan reducing the number of common shares reserved and
authorized for issuance by 5 million. Effective in June 2003, the total number
of common shares approved for issuance under the 2001 Plan as authorized by the
Board was reduced from 15 million to 10 million. Global Med filed an amendment
to the existing Form S-8 registration statement for the 2001 Plan to effect this
change on May 20, 2004. As of December 31, 2006, options to purchase 6.111
million shares of Global Meds common stock at a weighted average exercise
price of $0.90 per share were outstanding under the 2001 Plan, of which 4.917
million options to purchase shares were exercisable at December 31, 2006.
Options granted under the Plan typically vest on a straight-line basis, based on
schedules as determined by the Board of Directors upon grant and generally
expire 10 years after grant. During the year ended December 31, 2006, Global Med
issued 680 thousand stock options under the 2001 Plan, 3 thousand were
exercised, and 471 thousand were cancelled.

In
June 2003, Global Meds Board of Directors approved the 2003 Stock Option
Plan (2003 Plan). The 2003 Plan provides for the issuance of stock
options exercisable to purchase up to 5 million shares of Global Meds
common stock to employees, officers, directors and consultants. The Board of
Directors also approved the inclusion of options to purchase approximately 4.707
million shares under the 2003 Plan that were issued to such persons prior to the
adoption of the 2003 Plan and lacked registration rights. Global Med filed a
Form S-8 registration statement to register the 5 million shares issuable under
the 2003 Plan on May 20, 2004. As of December 31, 2006 there were approximately
4.026 million options outstanding under this plan with exercise prices ranging
from $0.45 to $1.50 per share. The weighted- average exercise price of these
options is $0.67. As of December 31, 2006, all of issued options under the 2003
Plan were exercisable.

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##### Table of Contents

The
Second Amended and Restated Stock Option Plan (Plan) provides for
the issuance of options to purchase up to 2.2 million registered shares of
common stock to employees, officers, directors and consultants of Global Med.
Options may be granted as incentive stock or as nonqualified stock options. Only
employees of Global Med are eligible to receive Incentive Options. As of May 31,
2000, options could no longer be issued under this Plan. As of December 31,
2006, options to purchase 1.063 million shares of Global Meds common stock
at a weighted average exercise price of $1.12 per share were outstanding under
the Plan, of which 1.063 million options to purchase shares were exercisable at
December 31, 2006.

Global
Med also periodically grants options to purchase shares of registered common
stock. The shares underlying these options are not registered under the
Securities Act of 1933, as amended. As of December 31, 2006, there were
outstanding options to purchase 385 thousand shares of common stock at a
weighted-average exercise price of $1.80 per share. All of these options were
exercisable as of December 31, 2006.

In
February of 2005, the Companys Board of Directors approved documentation
changes related to option grants to certain employees and a director that
occurred in December of 1999 and June of 2000. The Board of Directors determined
that the term of the options as originally granted, five years, was documented
incorrectly and should have been ten years. This determination was based on the
fact that the five year term was inconsistent with the Companys defacto
policies and practices at the time to grant ten year options to directors and
employees. As the Company views this Board action as a correction of a
documentation deficiency, the Company has no plans to recognize compensation
expense associated with this documentation correction.

Option
Grants Table

During
2006, no options were granted to the Companys Executive Officers. During
2005, 700 thousand stock options were granted to the Companys Executive
Officers.

|Name                  | SharesAcquiredon Exercise | Realized | Number ofUnexercisedOptions atYear-endExercisable/Unexercisable | Value of UnexercisedIn-the-Money Options atyear-end($)Exercisable/Unexercisable (1)
|--------------------- | ------------------------- | -------- | --------------------------------------------------------------- | -----------------------------------------------------------------------------------
|Michael I. Ruxin,M.D. |                           | --       |                                                                 | --                                                                                 
|Thomas F. Marcinek    |                           | --       |                                                                 | --                                                                                 

_________________

|(1) |  | Based on the closing price of the Companys Stock of $0.70 per share
on December 30, 2006.
|--- |  | ------------------------------------------------------------------------------------------

Long-Term
Incentive Plan (LTIP) Awards Table

No Options were
granted during 2006 to Dr. Ruxin or Mr. Marcinek.

During  2005,
the Company  granted 250  thousand  options each to Dr.  Ruxin and Mr.  Marcinek.  In
addition,  the  Company  granted 200 thousand  options to Mr.  Willman.  All of these
options were granted at $1.15 per share,  the  closing price of the Companys  stock
on the date of grant,  December 16, 2005. The options vested  immediately and  have a
term of ten years.

26



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##### Table of Contents

Compensation
Of Directors

Standard
Arrangements. The Company pays the directors, who are not also employees of
the Company, a fee of $1,000 for each board meeting they attend. The
non-employee members of the Companys Board of Directors also receive
annual stock option grants valued at $25 thousand based on the underlying value
of the common shares. In addition, the Audit Committee Chairman and the
Compensation Committee Chairman each receive annual option grants valued at $5
thousand based on the underlying value of the common shares. These options vest
ratably on a monthly basis over a one-year period.

Other
Arrangements. On November 1, 2002, the Company entered into an
Employment Agreement with Dr. Ruxin for a period of five years commencing
August 1, 2003 and ending August 1, 2008. Dr. Ruxins salary
shall be reviewed on an annual basis and if his performance is deemed
satisfactory, he shall receive a minimum 7.5% cost of living increase, plus any
other increase which may be determined from time to time at the discretion of
the Companys Board of Directors. In addition, on December 16, 2005, the
Companys Board of Directors approved that Dr. Ruxin would get a minimum
annual cost of living salary increase in the absence of annual approval by the
Board of Directors. In addition, Dr. Ruxin shall be eligible for a performance
increase. Pursuant to Dr. Ruxins Employment Agreement, the Company
authorized the issuance to Dr. Ruxin of 500 thousand total incentive stock
options and nonqualified stock options to purchase an aggregate of 500 thousand
shares of the Companys common stock. All of these options are now
exercisable. The stock option exercise price shall be $0.58, which is the
closing price on the execution of Dr. Ruxins Employment Agreement.
Following the termination of this Agreement by the Employer for any reason other
than Cause, Death, or the temporary or permanent disability of Employee, the
Employee shall be entitled to compensation and benefits for twenty-four (24)
months following the date of termination or the remainder of the contract,
whichever is less. On December 16, 2005, the Company issued Dr. Ruxin 250
thousand options at an exercise price of $1.15 per share, the fair market value
on the date of grant, all of which vested immediately.

Dr.
Ruxin may terminate his employment with the Company upon the occurrence of any
of the following events followed by written notice from the Dr. Ruxin to the
Company: the sale by Company of substantially all of its assets; a decision by
Company to terminate its business and liquidate its assets; the merger or
consolidation of Company with another entity or an agreement to such a merger or
consolidation or any other type of reorganization; the Company makes a general
assignment for the benefit of creditors, files a voluntary bankruptcy petition,
there are material reductions in Dr. Ruxins duties and responsibilities
without his written consent or a demotion from the position of CEO; termination
by the Company of Dr. Ruxins employment with the Company for any reason
other than cause, or a five percent reduction in Dr. Ruxins base
compensation (not including bonus).

On
November 4, 2002, the Company entered into an Employment Agreement with
Thomas F. Marcinek for a period of five years commencing November 2, 2003
and ending November 2, 2008. Mr. Marcineks salary shall be reviewed
on an annual basis and if his performance is deemed satisfactory, he may receive
a minimum 7.5% cost of living increase, plus any other increase which may be
determined from time to time at the discretion of the Companys Board of
Directors. In addition, Mr. Marcinek shall be eligible for a performance
increase. Following the termination of this Agreement by the Company for any
reason other than cause, death, or the temporary or permanent disability of Mr.
Marcinek, Mr. Marcinek shall be entitled to compensation and benefits for
twenty-four (24) months following the date of termination or the remainder of
the contract, whichever is less.

Pursuant
to Mr. Marcineks Employment Agreement, the Company authorized the issuance
to Mr. Marcinek of 500 thousand total incentive stock options and nonqualified
stock options to purchase an aggregate of 500 thousand shares of the
Companys common stock. All of these options are now exercisable. The stock
option exercise price shall be $0.58, which is the closing price on the
execution of Mr. Marcineks Employment Agreement. On December 16, 2005, the
Company issued Mr. Marcinek 250 thousand options at an exercise price of $1.15
per share, the fair market value on the date of grant, all of which vested
immediately.

During
1999, the Board of Directors approved bonuses for Dr. Ruxin and Mr. Marcinek in
amounts of $50 thousand and $25 thousand respectively, payable when the Company
has achieved positive cash flow from operations and subject to the approval of
the Board of Directors. As of December 31, 2005, these bonuses had been
approved by the Companys Board of Directors for payment. The Company made
these bonus payments during 2006.

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##### Table of Contents

During
2001, the Board of Directors authorized that $50 thousand be paid to Dr. Ruxin
and $25 thousand be paid to Mr. Marcinek of the accrued salaries due them.
During 2001, Dr. Ruxin received $27 thousand dollars and Mr. Marcinek received
$14 thousand of the accrued salaries due them. During 2002, Dr. Ruxin was paid
approximately $23 thousand of the accrued salary increase due him and Mr.
Marcinek was paid approximately $11 thousand of the accrued salary due him. As
of December 31, 2002, the Company had paid Dr. Ruxin $50 thousand and Mr.
Marcinek $25 thousand of the salary increases due them.

On
April 14, 2004, the Dr. Ruxin agreed to convert outstanding accrued
vacation and accrued wages as of February 29, 2004, with a book value of
approximately $284 thousand into approximately 675 thousand shares of Series BB
Preferred Stock.

ITEM 11.    
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS

# PRINCIPAL
SHAREHOLDERS

The
following table presents certain information regarding the beneficial ownership
of all shares of common stock at February 2, 2007 for each executive officer and
director of our Company and for each person known to us who owns beneficially
more than 5% of the outstanding shares of our common stock. The percentage
ownership shown in such table is based upon the February 2, 2007 common shares
outstanding at February 2, 2007 and ownership by these persons of options or
warrants exercisable within 60 days of such date. Also included is beneficial
ownership on a fully diluted basis showing all authorized, but unissued, shares
of our common stock at February 2, 2007 as issued and outstanding. Unless
otherwise indicated, each person has sole voting and investment power over such
shares.

|                          | Amount and Nature of Beneficial Ownership(1) |                      |  |         |  |  
|------------------------- | -------------------------------------------- | -------------------- |  | ------- |  | -
|
|Michael I. Ruxin, M.D     |                                              | Chairman of          |  | 832,148 |  | 3
|12600 W. Colfax           |                                              | the Board and        | 
|Suite C-420               |                                              | Chief                | 
|Lakewood, CO 80215        |                                              | Executive            | 
|                          |                                              | Officer and          | 
|                          |                                              | Director and         | 
|                          |                                              | Acting               | 
|                          |                                              | Principal            | 
|                          |                                              | Accounting and       | 
|                          |                                              | Financial            | 
|                          |                                              | Officer              | 
|Thomas F. Marcinek        |                                              | Director, Presidentd |  | 20,500  |  | 0
|4925 Robert J. Mathews    |                                              | and Chief            | 
|Parkway, Suite 100        |                                              | Operating            | 
|El Dorado Hills, CA 95762 |                                              | Officer              | 
|Kim Geist                 |                                              | Secretary            |  | -0-     |  | 0
|12600 W. Colfax           |                                             
|Suite C-420               |                                             
|Lakewood, CO 80215        |                                             

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##### Table of Contents

|                            | Amount and Nature of Beneficial Ownership(1) |          |  |           |  |   
|--------------------------- | -------------------------------------------- | -------- |  | --------- |  | --
|
|Robert R. Gilmore           |                                              | Director |  | -0-       |  | 0 
|12600 W. Colfax             |                                              |          | 
|Suite C-420                 |                                              |          | 
|Lakewood, CO 80215          |                                              |          | 
|Sarah L. Eames              |                                              | Director |  | -0-       |  | 0 
|12600 W. Colfax             |                                              |          | 
|Suite C-420                 |                                              |          | 
|Lakewood, CO 80215          |                                              |          | 
|T. Kendall Hunt             |                                              | Director |  | 30,000    |  | 0 
|12600 W. Colfax             |                                              |          | 
|Suite C-420                 |                                              |          | 
|Lakewood, CO 80215          |                                              |          | 
|All Directors and Executive |                                              |          |  | 882,648   |  | 3 
|Officers as a group (6      |                                             
|persons)                    |                                             
|Magnetar Capital Master,    |                                              | None     |  | 2,286,000 |  | 9 
|Fund Ltd.                   |                                             
|1603 Orrington Avenue       |                                             
|13th Floor                  |                                             
|Evanston, IL 60201          |                                             
|Crestview Capital Master,   |                                              | None     |  | 2,032,000 |  | 8 
|LLC                         |                                             
|95 Revere Drive, Suite A    |                                             
|Northbrook, IL 60062        |                                             
|Shepherd Investments        |                                              | None     |  | 1,524,000 |  | 6 
|International, Ltd.         |                                             
|3600 South Lake Drive       |                                             
|St. Francis, WI 53235       |                                             
|Futuristic Image Builder    |                                              | None     |  | 3,050,000 |  | 13
|Ltd.                        |                                             
|34 Woodlands Industrial     |                                             
|Park E-1                    |                                             
|Singapore 757747            |                                             
|                            |                                              |          |  |           |  |   
|Totals                      |                                              |          |  | 9,774,648 |  | 42
|                            |                                              |          |  |           |  |   

29



---

##### Table of Contents

|(1) |  | Applicable
percentage  of  ownership is based on  23,211,982  shares  of common  stock  outstanding
as of  February 2, 2007,  together with securities  exercisable or convertible into
shares of common stock within  60 days of February 2,  2007,  for each  stockholder.
Beneficial  ownership is  determined  in  accordance  with  the rules of the  Securities
and Exchange  Commission  and generally  includes  voting  or investment  power  with
respect  to  securities.  Shares  of  common  stock  subject  to  securities  exercisable
or  convertible  into shares of common stock that are  currently  exercisable or
exercisable  within 60 days of  February  2, 2007 are  deemed  to be  beneficially  owned
by the person  holding  such  securities  for the  purpose of  computing the percentage
of ownership of such person,  but are not treated as  outstanding  for  the purpose of
computing the percentage  ownership of any other person.  Note that  affiliates are
subject  to Rule 144 and Insider trading regulations  percentage  computation for
form purposes only.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) |  | Includes
(i) 4,125,000  shares of common stock  underlying  warrants and 5,500,000  shares of
common stock  underlying 3,960 shares of Series A preferred stock.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) |  | Includes
(i) 2,833,334  shares of common stock  underlying  warrants and 3,777,778  shares of
common stock  underlying 2,720 shares of Series A preferred stock.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) |  | Includes
(i) 2,125,000  shares of common stock  underlying  warrants and 2,833,333  shares of
common stock  underlying 2,040 shares of Series A preferred stock.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) |  | Includes

1,000,000 shares underlying warrants.
|--- |  | -----------------------------------------------

|(6) |  | In
accordance with the terms of the Companys underlying  agreements with this
investor,  Magnetar Capital  Master Fund,  Ltd,  Crestview  Capital  Master LLC,  and
Shepherd  Investments  International,  Ltd.  have  instructed  the  corporation  not to
convert  Series A  preferred  stock or  warrants  if such  conversion  results in the
investor  owning more than 4.99% of the  Companys  common  stock  immediately
after such  conversion.  Therefore,  the beneficial  ownership of these  investors may
significantly  overstate these  investors ability to convert their Series A
preferred stock or exercise their warrants.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

30



---

##### Table of Contents

ITEM 12.    
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The Board of
Directors of the Company has adopted  resolutions that no business  transaction,  loan or
advance will  be made by the Company to any officer,  director or holder of more than 5%
of the Companys  common  stock,  or any  affiliate  thereof,  unless it has been
established  that a bona fide  business  purpose  exists,  that all future  transactions
between the Company and its officers,  directors, or principal  shareholders,  or any
affiliate of any  of such person, must be approved or ratified by a majority of the
disinterested  directors of the Company,  and the  terms of such  transaction  must be no
less  favorable to the Company than could have been  realized by the Company  in an
arms-length  transaction  with an unaffiliated  person.  The Company  believes that all
ongoing  transactions  with the  Companys  affiliates  are on terms no less
favorable  than could be obtained  from  unaffiliated  third  parties.

The Board of
Directors of the Company  adopted a resolution  in July 1996  that provides that the
areas of business  in which the Company shall be interested  for the purpose of the
doctrine of corporate  opportunities  shall be the  business of information  management
software  products and services.  Any business  opportunity which falls within  such
areas of interest  must be brought to the attention of the Company for  acceptance  or
rejection  prior to any  officer or director of the Company taking  advantage of such
opportunity.  Any business  opportunity  outside such  areas of interest  may be entered
into by any  officer or director of the Company  without the officer or director  first
offering the business opportunity to the Company.

As of
December 16, 2005, in conjunction  with the Companys  repayment of its  outstanding
debt and the redemption  of the Series AA Convertible  Preferred Stock, the Company
terminated its relationship  with eVision and paid them  $45 thousand  for all accrued
services  dating back to February of 2002.  During  2005,  the Company  incurred $76
thousand in interest charges from debt originally  financed by eBanker,  and subsequently
transferred to GMCAL and  then GMIL.  eBanker,  GMCAL,  and GMIL are entities that are
controlled by China Credit.  Global Med  International  Holdings Limited (GMIHL)
is a subsidiary of eBanker.

As
of  December 16,  2005,  Dr.  Ruxins  personal  guarantee  of $650  thousand  plus
pro  rata  interest  of the  outstanding loan balance with GMIL,  originally  associated
with the  November 19,  2000 eBanker Loan Agreement was  terminated as a result of
repayment of the debt and all  outstanding  interest to GMIL. The personal  guarantee was
limited to certain of Dr. Ruxins assets.

Pursuant
to a Stock Purchase Agreement,  dated as of December 16,  2005 between the Company and
GMIL, the Companys  outstanding  debt with GMIL in the amount of $528,700,  the
outstanding  Series A Preferred Stock in the amount of  $3.5 million,  outstanding
common shares  numbering 4.360 million and the outstanding  warrants to purchase 11.186
million  shares of common  stock  were paid  off,  redeemed,  or  repurchased,
respectively,  for $8  million.  In  addition,  the investors  purchases  6.350 million
common  shares from GMIL  directly.  In addition all of the six  members of the  Companys
Board of Directors  nominated by GMIL  resigned.  As a result of the above,  GMIL was no
longer a considered a related party of the Company as of December 16, 2005.

As
of  December 31,  2002,  the Companys  Board of Directors had approved  borrowings
to a related party  totaling  $370 thousand.  During the year ended  December 31,  2002,
the Companys Notes  Receivable,  related party balance,  increased $290 thousand to
a total of $370 thousand as a result of funds  advanced in the form of promissory  notes
to this entity  controlled by a, now formerly,  director of the Company,  Jeff Busch. In
2006, the Company extended  the maturity date of these  delinquent  notes for five years
to 2010.  The notes  receivable  currently  bear an 8%  interest  rate.  The  Company
has not  recognized  any  income  related  to these  notes.  During  the year  ended
December 31,  2001, the Company had lent $80 thousand to this entity.  In addition,  the
CEO and Chairman of Global  Med,  Michael I. Ruxin,  was also on the board of  directors
of this entity  controlled  by Jeff Busch.  Dr. Ruxin  resigned as a director of the
related entity  effective  December 12,  2002.  Jeff Busch resigned his position as a
director  of the  Company  and  PeopleMed  effective  December 12,  2002.  As a result,
Jeff  Busch and the entity  controlled by Jeff Busch are no longer related  parties of
the Company.  On March 10,  2003 the Companys  Board of  Directors  approved and
subsequently  funded  additional  borrowings to this entity controlled by Jeff Busch in
the  amount of $30 thousand.

See
also ITEM 1 FINANCING AGREEMENTS WITH RELATED PARTIES.

31



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##### Table of Contents

ITEM 13.
EXHIBITS

(a)    Current
Reports on Form 8-K:

A Current
Report on Form 8-K was filed October 30, 2006 announcing the Companys  financial
statement  results for  the period ended September 30, 2006.

ITEM 14.     
PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The following
table presents fees for  professional  services  rendered by Ehrhardt Keefe Steiner & Hottman
P.C.  for the audit of the Companys  consolidated  financial  statements as of and
for the years  ended  December 31,  2006 and 2005 and fees billed for other  services
rendered by Ehrhardt Keefe Steiner & Hottman PC during those  periods.

|                       | Years Ended |          
|---------------------- | ----------- | ---------
|
|Audit Fees             |             | $  42,500
|Audit related fees (1) |             | $125,845 
|Tax Fees (2)           |             | $  19,900

|(1) |  | Audit
related fees are for assurance  related  services.  The primary  component of these fees
was research  activity with respect to certain  accounting issues in 2006 and 2005. In
2006, these fees related primarily  to research on certain  accounting  issues,
quarterly  reviews,  and a Form SB-2  Registrations  Statement  filing.  In 2005,  these
fees related  primarily  to  quarterly  reviews,  work on the  Companys  form S-1
filings, certain research associated with the Companys issuance of  Series A Convertible
Preferred stock.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) |  | Tax
fees in 2006  primarily  related to advice and  assistance  withrespect to tax  compliance matters on the  Companys 2005 tax returns.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------

32



---

##### Table of Contents

SIGNATURES

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

| | GLOBAL
MED TECHNOLOGIES, INC.
A Colorado Corporation
| | ----------------------------------------------------

Date:  February 22,
2007

| | By:  /s/ Michael I. Ruxin
      Michael I. Ruxin, M.D., Chairman of the Board
      and Chief Executive Officer and Director
| | ----------------------------------------------------------------------------------------------------------------------------

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

Date:  February 22,
2007

| | By:  /s/ Michael I. Ruxin
      Michael I. Ruxin, M.D., Chairman of the Board
      and Chief Executive Officer and Director
      and Acting Principal Accounting and Financial Officer
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date:  February 22,
2007

| | By:  /s/ Thomas F. Marcinek
      Thomas F. Marcinek, President and Chief
      Operating Officer
| | -------------------------------------------------------------------------------------------------

Date:  February 22,
2007

| | By:  /s/ T. Kendall Hunt
      T. Kendall Hunt
      Director
| | -------------------------------------------------------------

Date:  February 22,
2007

| | By:  /s/ Sarah L. Eames
      Sarah L. Eames
      Director
| | -----------------------------------------------------------

Date:  February 22,
2007

| | By:  /s/ Robert R. Gilmore
      Robert R. Gilmore
      Director
| | -----------------------------------------------------------------

33



---

##### Table of Contents

# UNITED
STATES SECURITIES AND EXCHANGE COMMISSION

# Washington,
D.C. 20549

# EXHIBITS

# TO

# FORM
10-KSB

# GLOBAL
MED TECHNOLOGIES, INC.

# and
SUBSIDIARY

# EXHIBIT
INDEX

|        | 
|------- | 
|Exhibit | 
|Number  | 

|3.1 |  | Amended and Restated Articles of Incorporation, filed June 2, 1995 (1)
|--- |  | ----------------------------------------------------------------------

|3.2 |  | Articles
of Amendment to the Articles of Incorporation, filed March 5, 1996 (1)
|--- |  | -------------------------------------------------------------------------------

|3.3 |  | Articles of Amendment to the Articles of Incorporation, filed May 30, 1996 (1)
|--- |  | ------------------------------------------------------------------------------

|3.4 |  | Bylaws,
as amended (1)
|--- |  | ----------------------

|3.5 |  | Amended and Restated Articles of Incorporation, dated April 16, 2001 (10)
|--- |  | -------------------------------------------------------------------------

|4.1 |  | Form
of Representatives Warrants to Purchase Units (1)
|--- |  | -------------------------------------------------------

|4.2 |  | Form of Class A common stock Purchase Warrant Certificate (1)
|--- |  | -------------------------------------------------------------

|4.3 |  | Specimen
copy of stock certificate for common stock, $.01 par value (1)
|--- |  | -----------------------------------------------------------------------

|10.1 |  | Lease Agreement, dated April 15, 1992, and Lease Addendums, dated April 8, 1992
and October 21, 1994 (1)
|---- |  | --------------------------------------------------------------------------------------------------------

|10.2 |  | Lease Agreement, dated July 19, 1995, and Lease Addendum (1)
|---- |  | ------------------------------------------------------------

|10.3 |  | Employment
Agreement, dated May 24, 1995, between the Company and Michael I. Ruxin, as
amended July 8, 1995, August 1, 1995, September 21, 1995 and July 15, 1996 (1)
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.4 |  | Employment Agreement, dated May 24, 1995, between the Company and William J.
Collard, as amended July 22, 1996 (1)
|---- |  | ------------------------------------------------------------------------------------------------------------------

|10.5 |  | Employment Agreement, dated June 28, 1995, between the Company and Joseph F.
Dudziak (1)
|---- |  | ----------------------------------------------------------------------------------------

|10.6 |  | Employment Agreement, dated February 8, 1996, between the Company and L.E.
Gene Mundt (1)
|---- |  | -------------------------------------------------------------------------------------------

|10.7 |  | Amended and Restated Stock Option Plan, as amended on May 5, 1995, May 29, 1996
and December 11, 1996 (1)
|---- |  | ---------------------------------------------------------------------------------------------------------

|10.7(A) |  | Amendment
dated March 31, 1997, to the Amended and Restated Stock Option Plan. (2)
|------- |  | ----------------------------------------------------------------------------------

|10.8 |  | Voting Agreement, dated May 23, 1995 (1)
|---- |  | ----------------------------------------

|10.9 |  | Shareholders
Agreement dated August 16, 1991, as amended on May 5, 1995 September 1996, June
24, 1996, July 25, 1996, Consent and Waiver, dated July 12, 1996, and Rescission
of Shareholders Agreement, dated June 22, 1996 (1)
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

34



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##### Table of Contents

|10.10 |  | Agreement
dated April 8, 1996, between the Company and LMU & Company, and Stock
Purchase Option, dated April 8, 1996 (1)
|----- |  | ------------------------------------------------------------------------------------------------------------------------

|10.11 |  | Form
of Drug Testing Service Contract (1)
|----- |  | -----------------------------------------

|10.12 |  | Form of
License Agreements (1)
|----- |  | ------------------------------

|10.13 |  | Warrant Agreement,
dated February 11, 1997, between Global Med and American Securities Transfer
& Trust, Inc. (1)
|----- |  | -----------------------------------------------------------------------------------------------------------------

|10.14 |  | Exclusivity
and Software Development Agreement, dated November 14, 1996, between and among
Global Med and Ortho Diagnostic Systems Inc. (1)
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------

|10.15 |  | Amendment,
dated November 14, 1996, to Agreement dated April 8, 1996, between the Company
and LMU & Company, and Stock Purchase Option, dated April 8, 1996 (1)
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.16 |  | Amendment,
dated January 14, 1997, to Agreement dated April 8, 1996, between the Company
and LMU & Company, and Stock Purchase Option, dated April 8, 1996 (1)
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.17 |  | Interim
Management Agreement, dated July 7, 1997, between the Company and National
Medical Review Offices, Inc. (1)
|----- |  | -------------------------------------------------------------------------------------------------------------------

|10.18 |  | Asset
Purchase Agreement, dated August 18, 1997, between the Company and National
Medical Review Offices, Inc. (1)
|----- |  | ------------------------------------------------------------------------------------------------------------------

|10.19 |  | Third
Amendment to Exclusivity and Software Development Agreement, dated September 17,
1997 between Global Med and Ortho Diagnostic Systems, Inc. (1)
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------

|10.20 |  | Second
Amended and Restated Stock Option Plan, as amended October 3, 1997 and December
2, 1997 (3) 10.21 Fourth Amendment to Exclusivity and Software Development
Agreement, dated December 22, 1997 between Global Med and Ortho Diagnostic Systems, Inc. (4)
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.22 |  | Development
Agreement, dated July 12, 1996 between Global Med and The Institute for
Transfusion Medicine, dated July 12, 1996, as amended January 12, 1998 (4)
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.23 |  | Loan
Commitment, dated April 14, 1998, between Heng Fung Finance Company Limited and
the Company, as amended on April 16, 1998 (4)
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------

|10.24 |  | Loan
Commitment, dated April 14, 1998, between Fronteer Capital, Inc. and the
Company, as amended on April 16, 1998 (4)
|----- |  | -----------------------------------------------------------------------------------------------------------------------

|10.25 |  | Amendment
to Loan Commitment, dated April 16, 1998, between Heng Fung Finance Company
Limited and the Company (4)
|----- |  | -----------------------------------------------------------------------------------------------------------------

|10.26 |  | Amendment to Loan Commitment, dated April 16, 1998, between Fronteer Capital,
Inc. and the Company (4)
|----- |  | ------------------------------------------------------------------------------------------------------

|10.27 |  | Second
Amendment to Loan Commitments, dated April 20, 1998 between the Company, Heng
Fung Finance Company Limited and Fronteer Capital, Inc. (4)
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------

|10.28 |  | Employment
Agreement, dated August 1, 1998, between the Company and Michael I. Ruxin (5)
|----- |  | ----------------------------------------------------------------------------------------

|10.29 |  | Employment Agreement,
dated August 1, 1998, between the Company and Alan K. Geddes (5)
|----- |  | --------------------------------------------------------------------------------------

35



---

##### Table of Contents

|10.31 |  | Consultancy
Agreement, dated August 1, 1998, between the Company and Jeffrey M. Busch, Esq.
(5)
|----- |  | -----------------------------------------------------------------------------------------------

|10.32 |  | Warrant
to Purchase Common Shares dated April 20, 1998, issued by the Company to Heng
Fung Finance Company Limited (5)
|----- |  | ----------------------------------------------------------------------------------------------------------------------

|10.33 |  | Warrant
to Purchase Common Shares dated April 20, 1998, issued by the Company to
Fronteer Capital, Inc.(5)
|----- |  | ----------------------------------------------------------------------------------------------------------

|10.34 |  | Loan
Agreement, dated August 12, 1998, between the Company and Heng Fung Finance
Company Limited (5)
|----- |  | ----------------------------------------------------------------------------------------------------

|10.35 |  | Loan
Agreement, dated August 12, 1998, between the Company and Fronteer Capital, Inc.
(5)
|----- |  | -----------------------------------------------------------------------------------------

|10.36 |  | Personal
Guaranty, dated August 12, 1998, by Michael I. Ruxin, M.D. as Guarantor, the
Company as Debtor and Fronteer Capital, Inc. as Beneficiary (5)
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------

|10.37 |  | Assignment,
Assumption and Consent Agreement, dated September 28, 1998, by the Company,
Michael I. Ruxin, M.D., Fronteer Capital Inc. and Fronteer Development Finance,
Inc. (5)
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.38 |  | Loan
and Warrant Purchase and Sale Agreement, dated October 7, 1998, between the
Company, Heng Fung Finance Company Limited and Fronteer Development Finance (5)
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.39 |  | Promissory
Note, dated October 30, 1998, by the Company as Maker and Fronteer Development
Finance as the Holder (5)
|----- |  | -------------------------------------------------------------------------------------------------------------------

|10.40 |  | Warrant
to Purchase Common Shares, dated October 30, 1998, issued by the Company to
Fronteer Development Finance Inc. (5)
|----- |  | -------------------------------------------------------------------------------------------------------------------------

|10.41 |  | Promissory
Note, dated October 26, 1998, by the Company as Maker and Fronteer Development
Finance, Inc. as the Holder (5)
|----- |  | -------------------------------------------------------------------------------------------------------------------------

|10.42 |  | Promissory
Note, dated October 26, 1998, by the Company as the Maker and Heng Fung Finance
Company Limited as the Holder (5)
|----- |  | ----------------------------------------------------------------------------------------------------------------------------

|10.43 |  | Warrant
to Purchase Common Shares, dated October 26, 1998, issued by the Company to
Fronteer Development Finance, Inc. (5)
|----- |  | --------------------------------------------------------------------------------------------------------------------------

|10.44 |  | Warrant
to Purchase Common Shares, dated October 26, 1998, issued by the Company to Heng
Fung Finance Company Limited (5)
|----- |  | -------------------------------------------------------------------------------------------------------------------------

|10.45 |  | Employment
Agreement, dated February 1, 1999, between the Company and James Flynt (6)
|----- |  | -------------------------------------------------------------------------------------

|10.46 |  | Bridge
Loan Agreement, dated March 18, 1999, between the Company and eBanker USA.Com,
Inc. (6)
|----- |  | ----------------------------------------------------------------------------------------------

|10.47 |  | First
Amendment to Loan Agreement among the Company, Michael I. Ruxin, M.D., eBanker
USA.Com, Inc. and Heng Fung Finance Company Limited, dated March 18, 1999 (6)
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.48 |  | Office
Lease between the Company and Golden Hill Partnership, dated January 11, 1999
(6)
|----- |  | ----------------------------------------------------------------------------------------

|10.49 |  | Standard
Industrial/Commercial Multi-Tenant Lease between the Company and James W.
Cameron, Jr., dated February 8, 1999 (6)
|----- |  | ---------------------------------------------------------------------------------------------------------------------------

36



---

##### Table of Contents

|10.50 |  | Settlement
Agreement and Release of All Claims between the Company and William J. Collard
and Hollis Gailey, dated December 22, 1998 (6)
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------

|10.51 |  | Bridge
Loan Agreement, dated April 13, 1999, between the Company and Heng Fung Finance
Company Limited (7)
|----- |  | ----------------------------------------------------------------------------------------------------------

|10.52 |  | Revised
Bridge Loan Agreement, dated May 7, 1999, between the Company and eBanker
USA.com, Inc. (7)
|----- |  | ---------------------------------------------------------------------------------------------------

|10.53 |  | Loan
Agreement dated April 12, 2000 between the Company and eBanker (8)
|----- |  | -----------------------------------------------------------------------

|10.54 |  | Loan Agreement
dated April 14, 2000 between the Company and eBanker (8)
|----- |  | -----------------------------------------------------------------------

|10.55 |  | Loan
extension dated April 14, 2000 between the Company and eBanker (8)
|----- |  | -----------------------------------------------------------------------

|10.56 |  | Loan Agreement
dated November 19, 2000 between the Company and eBanker (9)
|----- |  | --------------------------------------------------------------------------

|10.57 |  | Interest
payment option dated March 21, 2001 between the Company and eBanker (9)
|----- |  | --------------------------------------------------------------------------------

|10.58 |  | 2001
Stock Option Plan (11)
|----- |  | ---------------------------

|10.59 |  | Amended
and Restated 1997 Stock Compensation Plan (12)
|----- |  | ------------------------------------------------------

|10.60 |  | Employment
Agreement, executed October 31, 2002, between the Company and Gerald F. Willman
Jr, effective July 1, 2004 and ending November 1, 2008 (13)
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------

|10.61 |  | Employment
Agreement, executed November 1, 2002, between the Company and Michael I. Ruxin,
effective August 1, 2003 and ending August 1, 2008 (13)
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|10.62 |  | Employment
Agreement, executed October 31, 2002, between the Company and Tim Pellegrini,
effective April 1, 2004 and ending November 1, 2008 (13)
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------

|10.63 |  | Employment
Agreement, executed October 31, 2002, between the Company and Miklos Csore,
effective November 1, 2003 and ending November 1, 2008 (13)
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|10.64 |  | Employment
Agreement, executed November 4, 2002, between the Company and Thomas F.
Marcinek, effective November 2, 2003 and ending November 2, 2008 (13)
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

|10.65 |  | Termination
Agreement, executed December 19, 2002, between the Company and a significant
customer. (14)
|----- |  | -------------------------------------------------------------------------------------------------------

|10.66 |  | Amendment
to the Loan Restructuring and Restatement Agreement. (14)
|----- |  | -------------------------------------------------------------------

|10.67 |  | Fourth
Amendment to the Loan Restructuring and Restatement Agreement.
|----- |  | ---------------------------------------------------------------------

|10.68 |  | Global Med
Technologies, Inc. 2003 Stock Option Plan.
|----- |  | -----------------------------------------------------

|10.69 |  | Articles of Amendment to Articles of Incorporation  Preferred Stock (16)
|----- |  | -------------------------------------------------------------------------

|10.70 |  | Common
Stock Purchase Agreement, dated October 8, 2004 by and between the Company and
Fusion Capital Fund II, LLC (17)
|----- |  | ----------------------------------------------------------------------------------------------------------------------

|10.71 |  | Form of Company Resolution Approving the Registration Statement dated September
28, 2004 (17)
|----- |  | ---------------------------------------------------------------------------------------------

|10.72 |  | Code of Ethics and Conduct for Global Med Technologies, Inc. (18)
|----- |  | -----------------------------------------------------------------

|10.73 |  | Value
Ventures Agreement (18)
|----- |  | -----------------------------

37



---

##### Table of Contents

|10.74 |  | Termination Agreement, dated March 15, 2005 by and between the Company and
Fusion Capital Fund II, LLC (19)
|----- |  | -----------------------------------------------------------------------------------------------------------

|10.75 |  | Common Stock Purchase Agreement, dated March 16, 2005 by and between the
Company and Fusion Capital Fund II, LLC (19)
|----- |  | ---------------------------------------------------------------------------------------------------------------------

|10.76 |  | Registration Rights Agreement, dated March 16, 2005 by and between the
Company and Fusion Capital Fund II, LLC (19)
|----- |  | -------------------------------------------------------------------------------------------------------------------

|10.77 |  | Securities Purchase Agreement between the registrant an the purchasers dated
December 16, 2005. (20)
|----- |  | ----------------------------------------------------------------------------------------------------

|10.78 |  | Registration Rights Agreement between the registrant and the purchasers dated
December 16, 2005. (20)
|----- |  | -----------------------------------------------------------------------------------------------------

|10.79 |  | Stock Purchase Agreement between the Company and GMIL dated December 16,
2005. (20)
|----- |  | -----------------------------------------------------------------------------------

|10.80 |  | Certificate of Designation of Preferences Rights and Limitations of Series A
Convertible Preferred Stock between the registrant and the purchasers dated
December 16, 2005. (20)
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.81 |  | Common Stock Purchase Warrant between the Company and the purchasers dated
December 16, 2005. (20)
|----- |  | --------------------------------------------------------------------------------------------------

|10.82 |  | Private Placement Agreement between the Company and purchasers dated
December 16, 2005. (20)
|----- |  | --------------------------------------------------------------------------------------------

|10.83 |  | Right of First Notice Agreement between Futuristic Image Builder, Ltd., the
purchasers and the Company dated December 16,  2005. (20)
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------

|10.84 |  | Right of First Notice Agreement between the shareholders, the purchasers and the
Company dated December 16, 2005. (20)
|----- |  | ----------------------------------------------------------------------------------------------------------------------

|10.85 |  | Private Stock Purchase and Escrow Agreement between the investors, GMIL, and the
Company dated December 16, 2005. (20)
|----- |  | ----------------------------------------------------------------------------------------------------------------------

|10.86 |  | Termination Agreement between Fusion Capital Fund II LLC and the Company of the
Common Stock Purchase Agreement dated December 16, 2005. (20)
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------

|10.87 |  | First Amendment to Securities Purchase Agreement
|----- |  | ------------------------------------------------

|10.88 |  | Amended
and Restated Certificate of Designation of Preferences, Rights and Limitations
of the Series A Convertible
Preferred Stock
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------

|10.89 |  | Amended and Restated Common Stock Purchase Warrant
|----- |  | --------------------------------------------------

|10.90 |  | First
Amendment to the Registration Rights Agreement
|----- |  | ----------------------------------------------------

|21 |  | List
of Global Med Technologies, Inc. subsidiaries.
|-- |  | ---------------------------------------------------

|23 |  | Consent
of Independent Registered Public Accounting Firm  Ehrhardt Keefe Steiner & Hottman
PC
|-- |  | ----------------------------------------------------------------------------------------------

|31.1 |  | Certification of the Chairman and Chief Executive Officer pursuant to Rule 13a-
14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|31.2 |  | Certification of the Acting Chief Financial Officer pursuant to Rule 13a- 14(a)
or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------

|32.1 |  | Certification of the Chairman and Chief Executive Officer pursuant to U.S.C.
Section 1350, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

|32.2 |  | Certification of Acting Chief Financial Officer pursuant to U.S.C. Section 1350,
as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------

|99 |  | Proxy
and Right of First  Refusal  Agreement,  dated  November 14, 1996,  between and among
Ortho  Diagnostic  Systems Inc. and Michael I. Ruxin,  William J.  Collard,  Gerald F.
Willman,  Jr.,  Lori J. Willman,  Timothy  Pellegrini and Gordon Segal (1)
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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##### Table of Contents

|(1) |  | The documents identified are incorporated by reference from the Companys
Registration Statement on Form SB-2 (No. 333-11723).
|--- |  | ------------------------------------------------------------------------------------------------------------------------------

|(2) |  | Incorporated by reference from the Companys Registration Statement on Form
S-8 (No. 333-28155).
|--- |  | ------------------------------------------------------------------------------------------------

|(3) |  | Incorporated by reference from the Companys Registration Statement on Form
S-8 (No. 333-45031).
|--- |  | ------------------------------------------------------------------------------------------------

|(4) |  | Incorporated by reference from the Companys Annual Report on Form 10-KSB
for the year ended December 31, 1997.
|--- |  | ---------------------------------------------------------------------------------------------------------------

|(5) |  | Incorporated by reference from the Companys Registration Statement on Form
SB-2 (No. 333-52761).
|--- |  | -------------------------------------------------------------------------------------------------

|(6) |  | Incorporated by reference from the Companys Annual Report on Form 10-KSB
for the year ended December 31, 1998.
|--- |  | ---------------------------------------------------------------------------------------------------------------

|(7) |  | Incorporated by reference from the Companys Form 10-QSB for the quarterly
period ended March 31, 1999.
|--- |  | -------------------------------------------------------------------------------------------------------

|(8) |  | Incorporated by reference from the Companys Form 10-QSB for the quarterly
period ended March 31, 2000.
|--- |  | -------------------------------------------------------------------------------------------------------

|(9) |  | Incorporated by reference from the Companys Form 10-Q for the quarterly
period ended March 31, 2001.
|--- |  | -----------------------------------------------------------------------------------------------------

|(10) |  | Incorporated by reference from the Companys definitive Proxy Statement on
Schedule 14A dated March 15, 2001.
|---- |  | -------------------------------------------------------------------------------------------------------------

|(11) |  | Incorporated by reference from the Companys Registration Statement on Form
S-8 (No. 333-60674)
|---- |  | -----------------------------------------------------------------------------------------------

|(12) |  | Incorporated by reference from the Companys Registration Statement on Form
S-8 (No. 333-60672)
|---- |  | -----------------------------------------------------------------------------------------------

|(13) |  | Incorporated by reference from the Companys Form 10-Q for the quarterly
period ended September 30, 2002.
|---- |  | ---------------------------------------------------------------------------------------------------------

|(14) |  | Incorporated by reference from the Companys Form 10-K for the year ended
December 31, 2002.
|---- |  | --------------------------------------------------------------------------------------------

|(15) |  | Incorporated by reference from the Companys Form 10-K for the year ended
December 31, 2003.
|---- |  | --------------------------------------------------------------------------------------------

|(16) |  | Incorporated by reference from the Companys Form 10-Q for the quarterly
period ended June 30, 2004.
|---- |  | ----------------------------------------------------------------------------------------------------

|(17) |  | Incorporated by reference from the Companys Form 8-K filed on
October 12, 2004.
|---- |  | --------------------------------------------------------------------------------

|(18) |  | Incorporated by reference from the Companys Form S-1 (No. 333-121030).
|---- |  | -----------------------------------------------------------------------

|(19) |  | Incorporated
by reference from the Companys Form 8-K filed on March 16, 2005.
|---- |  | ------------------------------------------------------------------------------

|(20) |  | Incorporated by reference from the Companys Form 8-K filed on
December 20, 2005.
|---- |  | ---------------------------------------------------------------------------------

39



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##### Table of Contents