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

                                   FORM 10-KSB

            ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
                              EXCHANGE ACT OF 1934


      For the fiscal year ended                        SEPTEMBER 30, 2002

      Commission file number                           0-30299

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


            NEVADA                                       98-0217653
(STATE OR OTHER JURISDICTION OF             (I.R.S. EMPLOYER IDENTIFICATION NO.)
 INCORPORATION OR ORGANIZATION)

SUITE 104-630 COLUMBIA STREET, NEW WESTMINSTER, BRITISH COLUMBIA, CANADA V3M 1A5
                    (Address of principal executive offices)

                            (604) 522-8618 (Issuer's
                                telephone number)


Securities registered Under 12(g) of the Exchange Act
                                                  COMMON STOCK, $0.001 PAR VALUE


         Check whether the issuer (1) filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days. Yes [X]
         No [  ]

         Check if there is no  disclosure  of  delinquent  filers in response to
Item 405 of Regulation S-B is not contained in this form, and no disclosure will
be contained,  to the best of  registrant's  knowledge,  in definitive  proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ ]

         Issuer's revenues for its most recent fiscal year:            NONE

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         State the aggregate  market value of the voting and  non-voting  common
equity held by  non-affiliates  computed by  reference to the price at which the
common  equity  was sold,  or the  average  bid and asked  price of such  common
equity, as of a specified date within the past 60 days:

         12,164,015 common shares @ $0.01(1) = 121,640.
         (1)       Average of bid and ask closing prices on February 14, 2003

         As of February  20,  2003,  the Company had  36,906,509  common  shares
issued and outstanding

         Documents Incorporated By Reference:                 NONE

         Transitional Small Business Disclosure Format:     Yes [  ]      No [X]




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                                     PART I


ITEM 1.           DESCRIPTION OF BUSINESS.

This annual report contains  forward-looking  statements as that term is defined
in the Private Securities Litigation Reform Act of 1995. These statements relate
to future events or our future  financial  performance.  In some cases,  you can
identify  forward-looking  statements  by  terminology  such as  "may",  "will",
"should",   "expects",   "plans",   "anticipates",    "believes",   "estimates",
"predicts",  "potential"  or  "continue" or the negative of these terms or other
comparable terminology.  These statements are only predictions and involve known
and unknown risks,  uncertainties and other factors,  including the risks in the
section  entitled "Risk  Factors",  that may cause our or our industry's  actual
results,  levels of  activity,  performance  or  achievements  to be  materially
different  from  any  future  results,   levels  of  activity,   performance  or
achievements expressed or implied by these forward-looking statements.  Although
we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,  performance
or achievements.  Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.

Our  financial  statements  are stated in United  States  Dollars  (US$) and are
prepared  in  accordance  with  United  States  Generally  Accepted   Accounting
Principles.  In this  annual  report,  unless  otherwise  specified,  all dollar
amounts are expressed in United States Dollars.  All references to CDN$ refer to
Canadian Dollars.

As used in this  annual  report,  the  terms  "we",  "us",  "our",  and  "Global
Innovative" mean Global Innovative Systems Inc., unless otherwise indicated.

BUSINESS DEVELOPMENT - GENERAL

Global  Innovative was incorporated on September 14, 1995, under the laws of the
State of Nevada,  under the name "Legacy  Bodysentials  Inc.".  On September 25,
1996, we changed our name to "Legacy Minerals Inc.". On May 18, 1998, we changed
our name to "Global  Commonwealth  Inc.".  On November 12, 1999,  we changed our
name to our current name of "Global Innovative Systems Inc."

Our  corporate  offices  are  located  at Suite  104-630  Columbia  Street,  New
Westminster,  BC, Canada V3M 1A5. Our telephone number is (604) 522-8618 and our
facsimile number is (604) 522-9896.

BUSINESS DEVELOPMENT DURING LAST THREE YEARS

Our company was inactive until January 31, 2000, when we closed a share exchange
agreement with the stockholders of Niew Industries Inc. Following the completion
of the  transaction,  Niew  Industries  became a wholly owned  subsidiary of our
company.  Because the  stockholders  of Niew  Industries  controlled  55% of the
resultant  entity,  and because the business of Niew Industries  represented the
only business  operations of the new entity,  the  transaction was recorded as a
reverse  acquisition.  Following the  accounting for reverse  acquisitions,  the
financial  statements  subsequent to closing of the share exchange are presented
as a continuation  of Niew  Industries  consistent  with the change of business.
Accordingly,  our operations are consolidated with those of Niew Industries from
the date of acquisition.

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Niew  Industries  was  incorporated  on January 15, 1997,  under the Company Act
(British  Columbia),  and was inactive  until March 23, 1998,  when it began the
development of a twin rotating asphalt mixing system("Trams System").

On September 12, 2002,  the directors of Niew sold the  unfinished  trams system
prototype to unrelated parties for $63,585 (CDN$ 100,000) with a down payment of
$44,509  (CDN$70,000) and a receivable of $18,918 (CDN$30,000) to be paid within
12 months of the agreement.  The purchaser is also required to complete and sell
the Trams System and pay Niew  Industries one half of the net sale proceeds,  as
defined in the agreement.

Following  the sale of the  incomplete  tram  system  prototype,  we  decided to
completely  dispose of our  subsidiary  Niew, and focus entirely on developing a
sales and  marketing  program  for the Enermed  device and the  Enermed  Therapy
through our majority owned subsidiary Energy Medicine Developments Corp.,
a Delaware corporation.  (See "Current Business")

On January 22,  2003,  we entered  into an  agreement  to sell our wholly  owned
subsidiary,  Niew  Industries,  Inc to the former  directors of Niew for $44,142
(CDN$70,000).  On January 27, 2003,  we closed on the  agreement  and received a
$31,530  (CDN$  50,000)  down  payment,  with $6,306  (CDN$  10,000)  payable on
February 3, 2003  (received  as of the date of this  filing)  and the  remaining
$6,306 (CDN$ 10,000) payable on or before September 12, 2003.

CURRENT BUSINESS

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

Also on October  2, 2001,  and also as  described  in our annual  report on Form
10-KSB  for the year  ended  September  30,  2001,  we  entered  into a Purchase
Agreement  with Energy  Medicine  Developments  (North  America) Inc., a company
incorporated in the province of British  Columbia.  Pursuant to the terms of the
Purchase Agreement,  we agreed to purchase 100% of Energy Medicine  Developments
(North  America)  Inc.'s issued and  outstanding  shares for a purchase price of
$300,000. As at the date of our annual report, the acquisition of 100% of Energy
Medicine  Developments  (North America) Inc.'s issued and outstanding shares had
not been  completed and all parties had agreed to  renegotiate  the terms of the
acquisition of Energy Medicine Developments (North America) Inc. Energy Medicine
Developments  (North  America) Inc.  operates the two treatment  centers for the
Enermed device and the Enermed  Therapy.  Energy  Medicine  Developments  (North
America) Inc. is primarily  involved in the treatment of multiple  sclerosis and
migraine headaches using extremely low frequency (ELF), patient specific, pulsed
electromagnetic  fields.  The treatment is identified by the trade name "Enermed
Therapy".  Energy  Medicine  Developments  (North  America) Inc. is also heavily
involved in research using this specific Enermed Therapy, and is a leader in

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the clinical application of pulsed electromagnetic therapies.

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

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

We have now entered into an Agreement  and Plan of Share  Exchange  with four of
the individual shareholders of each of Energy Medicine Developments Corp. and of
Energy Medicine  Developments  (North America) Inc. for the acquisition of their
respective  interests in both of these  companies  totaling,  in the  aggregate,
approximately  84% of the  issued  and  outstanding  shares  of  each  of  these
companies.  As at the date of this annual report,  pursuant to these  Agreements
and Plans of Share  Exchange,  we have  completed the  acquisition of these four
shareholders' shares of Energy Medicine  Developments Corp. and, as a result, we
now own  approximately  84% of the  issued  and  outstanding  shares  of  Energy
Medicine  Developments  Corp.,  for which we  exchanged  an  aggregate  total of
15,206,509 of our common shares.  We have not yet closed the  acquisition of any
of the shares of Energy Development (North America) Inc.

The Enermed Therapy TM

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

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

Treatment Delivery

The Enermed device is not an  over-the-counter  product,  nor one that untrained
technicians or medical

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practitioners  can deliver.  Currently all patients seeking treatment must visit
one of two treatment  facilities in Canada,  either the Vancouver Center,  which
has been operating since 1995, or the Toronto Center which opened in 1997. These
treatment  centers also  function as service  centers for  customers who require
repairs to or replacement of their Enermed device.  Training manuals and quality
control  procedures  based on years of clinical  experience and research results
will ensure that new technicians are trained to the highest standards.

Pursuant to the terms of a Royalty Agreement,  we were granted the right to use,
distribute,  market and sell the Enermed  device,  and any other  derivative  or
related  product  developed by either our company or by another  company  Energy
Medicine  Developments  Inc., a company  incorporated in the province of British
Columbia.  Energy Medicine  Developments,  Inc. is currently owned 50% by Fraser
Lawrie,  our President & CEO and 50% by Robert Fletcher,  our CFO & COO. We will
pay Energy Medicine Developments Inc. the following royalties during each of our
fiscal years, in perpetuity:

         1.       0 - 50,000  devices:  seven  percent (7%) of the selling price
                  for the first 50,000 devices sold each year during the Royalty
                  Agreement;

         2.       Over 50,000  devices:  five percent (5%) of the selling  price
                  for each device sold beyond the initial  50,000  devices  sold
                  each year during the Royalty Agreement; and

         3.       Other Products:  ten percent (10%) of the gross selling price,
                  prior to any  discounts,  of any other  product  manufactured,
                  sold or distributed by our company, payable at the end of each
                  calendar month for sales in the previous month.

As of the date of this annual report, we have not commenced using, distributing,
marketing or selling the Enermed device under the Royalty Agreement.

RISK FACTORS

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

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

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

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Risks Related to our Current Business Operations

WE ARE A DEVELOPMENT  STAGE COMPANY WITH A LIMITED OPERATING HISTORY WHICH MAKES
IT DIFFICULT TO EVALUATE WHETHER WE WILL OPERATE PROFITABLY.

We are a  development  stage company which is involved in the marketing and sale
of the Enermed device and the Enermed Therapy.  As a relatively new company,  we
do not  have a  historical  record  of sales  and  revenues  nor an  established
business track record. We have not earned any revenues since our formation.

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

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

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

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

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

SINCE WE HAVE A HISTORY  OF NET LOSSES AND A LACK OF  ESTABLISHED  REVENUES,  WE
EXPECT TO INCUR NET LOSSES IN THE FUTURE.

We did not generate any revenues and incurred a cumulative  loss of $969,901 for
the period from January 15, 1997 (incorporation) to September 30, 2002. Although
we anticipate that we will be able to generate  revenues in the future,  we also
expect development costs and operating costs to increase as well.  Consequently,
we expect to incur  operating  losses and  negative  cash flow until the Enermed
device and Enermed  Therapy  gain  sufficient  market  acceptance  to generate a
commercially  viable and sustainable level of sales, and sales of these products
are made so that we are operating in a profitable  manner.  These  circumstances
raise  substantial  doubt about our  ability to  continue as a going  concern as
described in an explanatory paragraph to our independent  accountant's report on
the September  30, 2002 audited  financial  statements,  which forms part of our
annual report on Form 10-KSB.  To the extent that such expenses are not followed
by revenues in a timely manner, our business,  results of operations,  financial
condition and prospects would be materially adversely affected.

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

We  incurred  a  cumulative  net loss  for the  period  from  January  15,  1997
(incorporation)  to September 30, 2002 of $969,901.  As a result of these losses
and negative cash flows from operations, our ability to continue operations will
be dependent upon the  availability  of capital from outside  sources unless and
until we achieve profitability.

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Our future capital requirements will depend on many factors, including cash flow
from operations,  progress in developing new products,  competing  knowledge and
market  developments  and an ability to  successfully  market our products.  Our
recurring  operating losses and growing working capital needs will require us to
obtain  additional  capital to operate our business  before we have  established
that our business will generate  significant  revenue. We have predicted that we
will require approximately  $1,000,000 over the period ending September 30, 2003
in order to  accomplish  our goals to  maintain  and  expand  the market for the
Enermed  device and the Enermed  Therapy.  However,  there is no assurance  that
actual  cash  requirements  will  not  exceed  our  estimates.   In  particular,
additional capital may be required in the event that we:

         1.  incur  delays and  additional  expenses  as a result of  technology
             failure;

         2.  are unable to create a substantial market for our Products; or

         3.  incur any significant unanticipated expenses.

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

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

OUR  FAILURE TO  EFFECTIVELY  MANAGE OUR GROWTH  COULD HARM OUR FUTURE  BUSINESS
RESULTS AND MAY STRAIN OUR MANAGERIAL AND OPERATIONAL RESOURCES.

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

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

The market price of our common  stock could  decline as a result of sales by our
existing  stockholders  of shares of common stock in the market.  Likewise,  the
perception that these sales could occur may result in

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the decline of the market price of our common stock. These sales also might make
it more  difficult for us to sell equity  securities in the future at a time and
at a price we deem appropriate.

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

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

THE LOSS OF OUR KEY TECHNICAL INDIVIDUALS WOULD HAVE AN ADVERSE IMPACT ON FUTURE
DEVELOPMENT AND COULD IMPAIR OUR ABILITY TO SUCCEED.

Our performance is substantially  dependent on the technical expertise of Robert
Fletcher  and Fraser  Lawrie  (Enermed)  and our ability to continue to hire and
retain such personnel. The loss of any of Robert Fletcher or Fraser Lawrie could
have a  materially  adverse  effect  on  our  business,  development,  financial
condition, and operating results. We do not maintain "key person" life insurance
on any of our  directors  or senior  executive  officers and we do not have life
insurance on any of Robert Fletcher or Fraser Lawrie.

TRADING OF OUR STOCK MAY BE  RESTRICTED  BY THE SEC'S  PENNY  STOCK  REGULATIONS
WHICH MAY LIMIT A STOCKHOLDER'S ABILITY TO BUY AND SELL OUR STOCK.

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

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penny  stock  is a  suitable  investment  for  the  purchaser  and  receive  the
purchaser's written agreement to the transaction.  These disclosure requirements
may have the effect of reducing the level of trading  activity in the  secondary
market for the stock that is subject to these penny stock  rules.  Consequently,
these penny stock  rules may affect the ability of  broker-dealers  to trade our
securities.  We believe that the penny stock rules discourage  investor interest
in and limit the marketability of, our common stock.

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

Stockholders  owning a significant  percentage of our  outstanding  voting stock
represent the ultimate control over our affairs.  Three  stockholders  currently
control  approximately  74% of the outstanding  shares of our common stock. As a
result of this ownership,  these stockholders will likely be able to approve any
major  transactions  including the election of directors without the approval of
the other shareholders.

WE DO NOT EXPECT TO DECLARE OR PAY ANY DIVIDENDS.

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

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

As a result of our limited  operating  history and the new  technology  which we
seek to  introduce  into the  markets  in which we  compete,  we are  unable  to
accurately  forecast our  revenues.  Our current and future  expense  levels are
based largely on our plan of operation and estimates of future  revenues and are
to a large extent fixed.  Sales and operating  results  generally  depend on our
ability  to  develop a base of  customers  and  businesses.  We may be unable to
adjust  spending in a timely manner to  compensate  for any  unexpected  revenue
shortfall.  Accordingly,  any  significant  shortfall in  estimated  revenues in
relation to our planned  expenditures  would have an immediate adverse effect on
our business, prospects, financial condition and results of operations.

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

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

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

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

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

                                       10

<PAGE>



         3.       consumer   acceptance  of  the  Enermed  device,  the  Enermed
                  Therapy, or other systems and products offered by us;

         4.       our ability to attract new personnel in a timely and effective
                  manner;


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

         6.       governmental regulation;

         7.       general economic conditions; and

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

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

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

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

THERE MAY BE THE POSSIBILITY OF VOLATILE SHARE PRICES.

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


                                       11

<PAGE>



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

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

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

ITEM 2.           DESCRIPTION OF PROPERTY.

Our executive and head offices are located at Suite 104-630 Columbia Street, New
Westminster,  BC, Canada V3M 1A5. Our telephone number is (604) 522-8618 and our
facsimile  number is (604) 522-9896.  We rent this location for $315 (CDN $ 500)
per month on a month to month basis.

ITEM 3.           LEGAL PROCEEDINGS.

We know of no material, active or pending legal proceedings against our company,
nor are we  involved  as a  plaintiff  in any  material  proceeding  or  pending
litigation. There are no proceedings in which any of our directors,  officers or
affiliates, or any registered or beneficial shareholder,  is an adverse party or
has a material interest adverse to our interest.

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

None.

                                       12

<PAGE>



                                     PART II

ITEM 5.           MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

As  of  the  date  of  this  filing  our  stock  has  been   removed   from  the
Over-the-Counter  Bulletin Board ("OTCBB") due to our delinquent filings of this
and other reports.  Upon filing the required reports, we plan to resubmit to the
OTCBB.

Prior to the  removal of our shares  from the OTCBB,  our share were traded with
the "GBIS", and the CUSIP number 3793W 104.

Our common shares are issued in registered form.  Pacific Stock Transfer Company
is the registrar and transfer agent for our common shares.  Their address is 500
E. Warm Springs Road, Suite 240, Las Vegas, Nevada,  Telephone:  (702) 361-3033,
Facsimile (702) 433 1979.

Our common shares initially began trading on the Over-the-Counter Bulletin Board
on April 17, 2001. As such,  the following are the high and low sales prices for
each quarter (or portion of a quarter, as applicable) since April 17, 2001:


QUARTER ENDED                        HIGH                              LOW

September 30, 2002                  $0.34                             $0.05
June 30, 2002                       $0.35                             $0.09
March 31, 2002                      $0.46                             $0.17
December 31, 2001                   $0.47                             $0.07

September 30, 2001                  $1.34                             $0.20
June 30, 2001                       $1.75                             $0.01

On February 20, 2003,  the  shareholders'  list for our common shares showed 128
registered shareholders and 36,906,509 common shares outstanding.

Dividend Policy

We have not declared or paid any cash dividends since inception.  Although there
are no  restrictions  that  limit our  ability  to pay  dividends  on our common
shares,  we intend to retain future  earnings,  if any, for use in the operation
and expansion of our business and do not intend to pay any cash dividends in the
foreseeable future.

Recent Sales of Unregistered Securities

On February 6, 2002, we issued an aggregate of  15,206,509  common shares in the
capital of our  company  to four (4)  individuals  pursuant  to the terms of the
Acquisition Agreement between our company and Energy Medicine Developments Corp.
dated October 2, 2001.  Our company had  reasonable  grounds to believe that the
investors  were  all  capable  of  evaluating  the  merits  and  risks  of their
investment,  and acquired the shares for investment purposes.  12,742,494 of the
shares were issued in reliance upon Regulation S promulgated

                                       13

<PAGE>



under the  Securities  Act of 1933 and  2,464,015  of the shares  were issued in
reliance upon Section 4(2) and/or Rule 506 promulgated  under the Securities Act
of 1933.

ITEM 6.           MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

FORWARD-LOOKING STATEMENTS

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

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

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

Plan of Operation

Our primary  objective over the 12 months ending  September 30, 2003, will be to
proceed with the implementation of a sales and marketing program for the Enermed
device and the Enermed  Therapy and we anticipate  that we will proceed with the
acquisition of Energy Medicine Developments (North America) Inc.

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

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

                                       14

<PAGE>



         1.       willingness of external  investors to advance capital to us to
                  finance the  implementation  of a sales and marketing  program
                  for the Enermed device and Enermed therapy;

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

         3.       uncertainty with respect to whether our products can:

                  a)       comply  with  regulations  in  other  North  American
                           jurisdictions; and

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

         4.       whether   there  will  be  a  market  for  our  products  once
                  development is complete;

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

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

Due to our lack of operating  history,  there exists substantial doubt about our
ability  to  continue  as a  going  concern,  as  described  in our  independent
auditors' report on, and the notes to, the consolidated financial statements for
the year ended September 30, 2002.

Cash Requirements

Over the twelve month period ending  September  30, 2003, we anticipate  that we
will require a minimum of approximately $1,000,000 in connection with the recent
acquisition of Energy Medicine  Developments Corp. and the proposed  acquisition
of  Energy  Medicine   Developments   (North  America)  Inc.  We  estimate  that
approximately  $250,000  will be required for  management  expenses and $400,000
will be required to cover the costs of the ongoing development, clinical testing
and  clinical  trials of new  products  related to the  Enermed  technology  and
$350,000 for the implementation of a sales and marketing program for the Enermed
device  and the  Enermed  Therapy.  In light of our lack of funds,  we intend to
apply any available funding first towards our onging management  expenses,  then
to the  implementation  of a sales and  marketing  program,  and  finally to our
ongoing development.

We do not have sufficient  funds on hand to complete the ongoing  development of
Enermed products.  We intend to obtain our future cash requirements  through the
sale of our equity  securities or by obtaining  further debt  financing.  In the
event that we are not successful in raising additional financing,  we anticipate
that we will not be able to sustain  our  business  operations  without  further
short-term  financing from our  controlling  shareholders.  Deficiencies in cash
will be covered by  additional  loans and advances by our  directors  until such
time that we can attract equity investors. Should we be unable to attract equity
investors,  cutbacks and deferrals of the planned  implementation of a sales and
marketing  program of the Enermed  device and Enermed  Therapy would occur until
such funds were otherwise available  externally.  Alternatively,  we may have to
consider a joint venture in order to proceed with our plans of operations.

                                       15

<PAGE>



Product Research and Development

During the year ended  September  30, 2002,  we expended  $3,014 on research and
development,  all of which pertained to  discontinued  operations and we accrued
$120,870 on research and development in connection with our ongoing  operations.
During the year ended  September  30, 2001,  we expended  $5,345 on research and
development,  all of which pertained to discontinued  operations.  If sufficient
capital is  available,  we will continue to expend time and money in the next 12
months on research and development  activities on Energy Medicine's  product and
technologies to make them commercially viable in new markets.

Purchase of Significant Equipment

We do not intend to purchase any  significant  equipment  over the twelve months
ending  September  30,  2003.  Any monies  raised by our  company  will first be
expended  on our plans  with  respect  to the  Enermed  device  and the  Enermed
Therapy.

Sales and Marketing

We will be  required to expend  significant  monies on the  implementation  of a
sales and  marketing  program  for the Enermed  Therapy  and  Enermed  device to
develop sales and a brand name for the product.

Employees

Over the twelve months  ending  September 30, 2003, we expect an increase in the
number  of  employees  we  retain.  If we are  unable  to hire  suitable  sales,
marketing  and  operational  personnel,  we may  not  be  able  to  successfully
implement a sales and  marketing  program  and  establish  acceptance  of Energy
Medicine's  technology.  We will likely hire a significant  number of additional
personnel  for  Energy  Medicine   Developments  Corp.   Competition  for  these
individuals  in the  technology  sector  is  intense,  and we may not be able to
attract,  assimilate,  or retain  additional  highly qualified  personnel in the
future. The failure to attract,  integrate,  motivate and retain these employees
could harm our business.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities and the disclosure of contingent  assets and liabilities of the date
of the financial  statements  and the reported  amounts of revenues and expenses
during the reporting  period.  Note 1 to the Consolidated  Financial  Statements
describes  the  significant   accounting   policies  and  methods  used  in  the
preparation of the Consolidated  Financial  Statements.  Estimates are used for,
but not  limited  to,  contingencies  and taxes.  Actual  results  could  differ
materially from those estimates.  The following critical accounting policies are
impacted  significantly  by judgments,  assumptions,  and estimates  used in the
preparation of the Consolidated Financial Statements.

We are subject to various loss  contingencies  arising in the ordinary course of
business.  We consider the  likelihood  of loss or impairment of an asset or the
incurrence  of a liability,  as well as our ability to  reasonably  estimate the
amount of loss in determining loss contingencies.  An estimated loss contingency
is accrued when management  concludes that it is probable that an asset has been
impaired or a liability has

                                       16

<PAGE>



been  incurred  and the  amount  of the loss  can be  reasonably  estimated.  We
regularly evaluate current information available to us to determine whether such
accruals should be adjusted.

We recognize  deferred tax assets (future tax benefits) and  liabilities for the
expected  future tax  consequences  of  temporary  differences  between the book
carrying amounts and the tax basis of assets and  liabilities.  The deferred tax
assets and liabilities  represent the expected future tax return consequences of
those  differences,  which are expected to be either  deductible or taxable when
the assets and  liabilities  are recovered or settled.  Future tax benefits have
been fully  offset by a 100%  valuation  allowance  as  management  is unable to
determine  that it is more likely than not that this  deferred tax asset will be
realized.

Recently Enacted and Proposed Regulatory Changes

Recently  enacted and  proposed  changes in the laws and  regulations  affecting
public companies, including the provisions of the Sarbanes-Oxley Act of 2002 and
rules proposed by the SEC and NASDAQ could cause us to incur  increased costs as
we evaluate the implications of new rules and respond to new  requirements.  The
new  rules  could  make it more  difficult  for us to  obtain  certain  types of
insurance,  including directors and officers liability insurance,  and we may be
forced to accept  reduced  policy  limits and  coverage  or incur  substantially
higher costs to obtain the same or similar coverage.  The impact of these events
could also make it more difficult for us to attract and retain qualified persons
to serve on the Company's board of directors,  or as executive officers.  We are
presently  evaluating and monitoring  developments with respect to these new and
proposed  rules,  and we cannot predict or estimate the amount of the additional
costs we may incur or the timing of such costs.

ITEM 7.           FINANCIAL STATEMENTS.

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

                                       17

<PAGE>




                          INDEPENDENT AUDITORS' REPORT



To the Directors and Stockholders of
Global Innovative Systems, Inc.
(A Development Stage Company)

         We have audited the accompanying  consolidated balance sheets of Global
Innovative Systems, Inc. (a development stage company) as of September 30, 2002,
and  the  related  consolidated  statements  of  operations,   cash  flows,  and
stockholders'  equity for the year ended  September  30, 2002 and for the period
from  January 15, 1997  (inception)  to  September  30,  2002.  These  financial
statements   are  the   responsibility   of  the   Company's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.  We did not audit the  consolidated  financial  statements of Global
Innovative  Systems  Inc. for the period from  January 15, 1997  (inception)  to
September 30, 2001. Such statements are included in the cumulative  inception to
September 30, 2002 totals on the  Statements  of  Operations  and Cash Flows and
reflect a net loss of 82% of the related cumulative total. Those statements were
audited  by other  auditors  whose  reports  have been  furnished  to us and our
opinion,  insofar as it relates to amounts for the period from  January 15, 1997
(incorporation)  to September 30, 2001  included in the  cumulative  totals,  is
based solely upon the reports of the other auditors.

         We conducted our audits in accordance with auditing standards generally
accepted in the United States of America.  Those standards  require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  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  financial  statements  referred to above  present
fairly, in all material  respects,  the financial  position of Global Innovative
Systems,  Inc. (a  development  stage company) as of September 30, 2002, and the
results of its  operations  and its cash flows for the year ended  September 30,
2002 in conformity with accounting  principles  generally accepted in the United
States of America.


                                       18

<PAGE>



         The accompanying  consolidated  financial statements have been prepared
assuming the Company will continue as a going concern. As discussed in Note 1 to
the consolidated financial statements, the Company has suffered recurring losses
from  operations  and  has  no  established  source  of  revenue.   This  raises
substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these  matters are  described  in Note 1. These  consolidated
financial  statements do not include any adjustments  that might result from the
outcome of this uncertainty.


                                                    Respectfully submitted



                                                    /s/ Robison, Hill & Co.
                                                    Certified Public Accountants

Salt Lake City, Utah
February 14, 2003












                                       19

<PAGE>





                          INDEPENDENT AUDITORS' REPORT


To the Directors and Stockholders of
Global Innovative Systems Inc.
(A Development Stage Company)

We have audited the Consolidated Balance Sheet of Global Innovative Systems Inc.
(a  development  stage  company) as at September  30, 2001 and the  Consolidated
Statements  of  Operations,  Cash Flows and  Stockholders'  Deficit for the year
ended September 30, 2001. These financial  statements are the  responsibility of
the Company's  management.  Our responsibility is to express an opinion on these
financial statements based on our audit.

We conducted  our audit in  accordance  with United  States  generally  accepted
auditing standards. Those standards require that we plan and perform an audit to
obtain  reasonable  assurance  whether  the  financial  statements  are  free of
material  misstatement.  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 audit  provides a  reasonable  basis for our
opinion.

In our opinion,  these  financial  statements  present  fairly,  in all material
respects,  the consolidated financial position of Global Innovative Systems Inc.
(a  development  stage  company)  as at  September  30,  2001  and  the  related
Consolidated Statements of Operations,  Cash Flows and Stockholders' Deficit for
the year ended  September  30, 2001 in conformity  with United States  generally
accepted accounting principles.

The accompanying  consolidated  financial statements have been prepared assuming
the Company  will  continue as a going  concern.  As  discussed in Note 1 to the
consolidated  financial  statements,  the Company has suffered  recurring losses
from  operations  and  has  no  established  source  of  revenue.   This  raises
substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these  matters are  described  in Note 1. These  consolidated
financial  statements do not include any adjustments  that might result from the
outcome of this uncertainty.

/s/ BDO Dunwoody LLP
Chartered Accountants

Vancouver, Canada
January 2, 2002

                                       20

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                               September 30,       September 30,
                                                                                    2002                2001
                                                                             ------------------  ------------------
ASSETS
<S>                                                                          <C>                 <C>
Current Assets:                                                              $                -  $                -

Other Assets:
Intangible Assets                                                                        18,000                   -
                                                                             ------------------  ------------------

     TOTAL ASSETS                                                            $           18,000  $                -
                                                                             ==================  ==================

LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Liabilities                                     $          241,043  $           13,416
Shareholder Payables                                                                     20,821                   -
Net Liabilities of Discontinued Operations                                              268,747             305,340
                                                                             ------------------  ------------------

     Total Liabilities                                                                  530,611             318,756
                                                                             ------------------  ------------------

     Minority Interest                                                                    2,793                   -
                                                                             ------------------  ------------------

STOCKHOLDERS EQUITY
Common Stock - $0.001 par value, 200,000,000 shares
   authorized, 36,906,509 and 21,700,000 shares issued and
   outstanding at September 30, 2002 and 2001.                                           36,907              21,700
Additional Paid-in Capital                                                              412,493             412,493
Currency Translation Adjustment                                                           5,097               5,303
Deficit Accumulated During the
  Development Stage                                                                    (969,901)           (758,252)
                                                                             ------------------  ------------------
     Total Stockholders' Equity (Deficit)                                              (515,404)           (318,756)
                                                                             ------------------  ------------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                   $           18,000  $                -
                                                                             ==================  ==================
</TABLE>







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

                                       21

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>



                                                                                                     Cumulative
                                                                                                       Since
                                                                                                    January 15,
                                                                                                        1997
                                                                   For the Year Ended               Inception of
                                                                      September 30,                 Development
                                                          -------------------------------------
                                                                2002                2001               Stage
                                                          -----------------  ------------------  ------------------
<S>                                                       <C>                <C>                 <C>
REVENUES                                                  $               -  $                -  $                -
                                                          -----------------  ------------------  ------------------

EXPENSES
   Research & Development                                           120,870                   -             120,870
   General & Administrative                                         117,147              31,128             202,208
                                                          -----------------  ------------------  ------------------
                                                                    238,017              31,128             323,078
                                                          -----------------  ------------------  ------------------

Net Loss from Continuing Operations                                (238,017)            (31,128)           (323,078)
                                                          -----------------  ------------------  ------------------

Minority Interest                                                         -                   -                   -
                                                          -----------------  ------------------  ------------------

Discontinued Operations
   Income (Loss) from Operations of Niew
      Industries, Inc. to be disposed, Net of tax
      Effects of $0                                                  26,368             (80,783)           (646,823)
                                                          -----------------  ------------------  ------------------

NET INCOME (LOSS)                                         $        (211,649) $         (111,911) $         (969,901)
                                                          =================  ==================  ==================

Earnings per Share, Basic & Diluted
   Income from continuing operations                      $         (0.008)  $          (0.001)
   Income (Loss) from discontinued operations                         0.001             (0.004)

Loss Per Share                                            $         (0.007)  $          (0.005)
                                                          =================  ==================

Weighted Average Shares Outstanding                              31,832,154          21,700,000
                                                          =================  ==================
</TABLE>






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

                                       22

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>


                                                                                                                  Cumulative
                                                                                                                    Since
                                                                                                                 January 15,
                                                                                                                     1997
                                                                                For the Year Ended               Inception of
                                                                                   September 30,                 Development
                                                                       -------------------------------------
                                                                             2002                2001               Stage
                                                                       -----------------  ------------------  ------------------
Cash Flows From Operating Activities
<S>                                                                    <C>                <C>                 <C>
   Net income (loss) for the period                                    $        (211,649) $         (111,911) $         (969,901)
Adjustments to reconcile net loss to net cash
   Provided by operating activities
     Net (Income) Loss from Discontinued Operations                              (26,368)             80,783             551,693
     Increase in Accounts Payable & Accrued Liabilities                          227,627                (710)            241,043
                                                                       -----------------  ------------------  ------------------
Net Cash Used in Continuing Activities                                           (10,390)            (31,838)           (177,165)
Net Cash Used in Discontinued Activities                                         (62,630)            (20,214)           (524,696)
                                                                       -----------------  ------------------  ------------------
Net Cash Used in Operating Activities                                            (73,020)            (52,052)           (701,861)
                                                                       -----------------  ------------------  ------------------


Cash Flows From Investing Activities
     Net Cash from Discontinued Activities                                        44,509                   -              21,390
                                                                       -----------------  ------------------  ------------------
Net Cash Used by Investing Activities                                             44,509                   -              21,390
                                                                       -----------------  ------------------  ------------------

Cash Flows From Financing Activities
     Net Cash from Discontinued Activities                                         7,896              51,478             656,265
   Advances from Shareholders & Directors                                         20,821                   -              20,821
                                                                       -----------------  ------------------  ------------------
Net Cash Provided by (Used in) Financing Activities                               28,717              51,478             677,086
                                                                       -----------------  ------------------  ------------------

Increase (Decrease) in Cash                                                          206                (574)             (3,385)
Effect of foreign exchange on cash                                                  (206)               (152)              3,385
Cash at beginning of period                                                            -                 726                   -
                                                                       -----------------  ------------------  ------------------
Cash at End of Period                                                  $               -  $                -  $                -
                                                                       =================  ==================  ==================


Supplemental Disclosure of Interest and Income Taxes Paid
   Interest paid during the period                                     $               -  $                -  $                -
                                                                       =================  ==================  ==================
   Income taxes paid during the period                                 $               -  $                -  $                -
                                                                       =================  ==================  ==================

Supplemental Disclosure of Non-cash Investing and Financing Activities:

   Shares issued for Subsidiaries and Shareholder payables             $          18,000  $                -  $          436,071
   Licenses acquired by issuance of accounts payable                   $               -  $                -  $           31,037
   Settlement of accounts payable on termination of license            $               -  $           26,057  $           26,057
</TABLE>
         The  accompanying  notes  are  an  integral  part  of  these  financial
statements.

                                       23

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
                                                                                                       Deficit
                                                                                                     Accumulated
                                                                        Additional      Cumulative    During the
                                                  Common Stock            Paid-In      Translation    Development
                                              Shares       Par Value      Capital       Adjustment       Stage          Total
                                           -----------    -----------   -----------    -----------    -----------    -----------
<S>                                        <C>            <C>           <C>            <C>            <C>            <C>
Initial Capitalization, January 15, 1997           100    $        67   $      --      $      --      $      --      $        67
April 15, 1998, Shares issued for cash           4,900          3,198          --             --             --            3,198
                                           -----------    -----------   -----------    -----------    -----------    -----------
                                                 5,000          3,265          --             --             --            3,265
                                           -----------    -----------   -----------    -----------    -----------    -----------

Net Loss                                          --             --            --             --         (260,374)      (260,374)
Currency Translation Adjustment                   --             --            --            8,588           --            8,588
                                           -----------    -----------   -----------    -----------    -----------    -----------
Total Comprehensive Loss                          --             --            --            8,588       (260,374)      (251,786)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Balance, September 30, 1998                      5,000          3,265          --            8,588       (260,374)      (248,521)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Net Loss                                          --             --            --             --         (145,219)      (145,219)
Currency Translation Adjustment                   --             --            --          (14,339)          --          (14,339)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Total Comprehensive Loss                          --             --            --          (14,339)      (145,219)      (159,558)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Balance, September 30, 1999                      5,000          3,265          --           (5,751)      (405,593)      (408,079)

October 31, 1999, Common Stock Redeemed         (2,850)          --            --             --             --             --
Adjustment for Reverse Acquisition          21,697,850         18,435       412,493           --             --          430,928
                                           -----------    -----------   -----------    -----------    -----------    -----------
                                            21,700,000         21,700       412,493         (5,751)      (405,593)        22,849
                                           -----------    -----------   -----------    -----------    -----------    -----------

Net Loss                                          --             --            --             --         (240,748)      (240,748)
Currency Translation Adjustment                   --             --            --           (4,176)          --           (4,176)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Total Comprehensive Loss                          --             --          (4,176)      (240,748)      (244,924)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Balance, September 30, 2000                 21,700,000    $    21,700   $   412,493    $    (9,927)   $  (646,341)   $  (222,075)
                                           ===========    ===========   ===========    ===========    ===========    ===========
</TABLE>

                                       24
<PAGE>

                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                                   (Continued)
<TABLE>
<CAPTION>
                                                                                                       Deficit
                                                                                                     Accumulated
                                                                        Additional      Cumulative    During the
                                                  Common Stock            Paid-In      Translation    Development
                                              Shares       Par Value      Capital       Adjustment       Stage          Total
                                           -----------    -----------   -----------    -----------    -----------    -----------
<S>                                        <C>            <C>           <C>            <C>            <C>            <C>
Balance, September 30, 2000                 21,700,000    $    21,700   $   412,493    $    (9,927)   $  (646,341)   $  (222,075)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Net Loss                                          --             --            --             --         (111,911)      (111,911)
Currency Translation Adjustment                   --             --            --           15,230           --           15,230
                                           -----------    -----------   -----------    -----------    -----------    -----------

Total Comprehensive Loss                          --             --            --           15,230       (111,911)       (96,681)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Balance, September 30, 2001                 21,700,000         21,700       412,493          5,303       (758,252)      (318,756)

February 6, 2002, Acquire Energy Medicine   15,206,509         15,207          --             --             --           15,207
                                           -----------    -----------   -----------    -----------    -----------    -----------
                                            36,906,509         36,907       412,493          5,303       (758,252)      (303,549)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Net Loss                                          --             --            --             --         (211,649)      (211,649)
Currency Translation Adjustment                   --             --            --             (206)          --             (206)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Total Comprehensive Loss                          --             --            --             (206)      (211,649)      (211,855)
                                           -----------    -----------   -----------    -----------    -----------    -----------

Balance, September 30, 2002                 36,906,509    $    36,907   $   412,493    $     5,097    $  (969,901)   $  (515,404)
                                           ===========    ===========   ===========    ===========    ===========    ===========
</TABLE>



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

                                       25

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         This summary of accounting policies for Global Innovative Systems, Inc.
and  Subsidiaries ( the "Company") is presented to assist in  understanding  the
Company's  financial  statements.  The accounting  policies conform to generally
accepted  accounting  principles  and  have  been  consistently  applied  in the
preparation of the financial statements.

Organization and Basis of Presentation

         The Company was  incorporated  in the State of Nevada on September  14,
1995 and was  inactive  until  January 31, 2000 when it closed a share  exchange
agreement  with  the  stockholders  of  Niew  Industries  Inc.   ("Niew").   The
transaction resulted in Niew becoming a wholly-owned  subsidiary of the Company.
Since the  stockholders  of Niew controlled 55% of the combined entity after the
merger and the business of Niew presents the only  operations of the new entity,
the  transaction  was  recorded  as a  recapitalization  of Niew.  As such,  the
historical financial information of the Company is that of Niew.

         Niew was  incorporated  on January 15, 1997 under the British  Columbia
Company  Act.  The Company was  inactive  until March 23, 1998 when it began the
development of a twin rotating  asphalt  mixing system.  Subsequent to September
30,  2002,  the  Company  entered  into an  agreement  to sell its wholly  owned
subsidiary, Niew Industries, Inc. for cash ($70,000 Canadian).

Acquisition

         On  February  6,  2002,  the  Company  exchanged  15,206,509  shares in
exchange for 84% of Energy Medicine  Developments  Corp.,  (a Delaware  company)
owning the worldwide  marketing and distribution rights to the "Enermed Therapy"
and the "Enermed Device". Enermed Therapy treats multiple sclerosis and migraine
headaches   using   extremely   low   frequency,    patient   specific,   pulsed
electromagnetic fields.

         Energy Medicine  Developments  Corp. is in the  development  stage with
only asset,  the  worldwide  marketing and  distribution  rights to the "Enermed
Therapy"  and  the  "Enermed  Device",  and  no  liabilities.   Energy  Medicine
Developments  Corp. was  incorporated  on March 27, 1997,  under the laws of the
state of Delaware, and has had no revenues to date, and has generated a net loss
of $267 and $200 for the years ended September 30, 2002 and 2001.

Principles of Consolidation

         The consolidated  financial  statements  include the accounts of Global
Innovative   Systems,   Inc.  and  the  following   wholly  and  majority  owned
subsidiaries:

*        Niew Industries, Inc., a British Columbia corporation (100%)
*        Energy Medicine Developments Corp., a Delaware corporation (84%)

         The results of subsidiaries  acquired during the year are  consolidated
from their effective dates of acquisition.

                                       26

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Business Condition

         These accompanying consolidated financial statements have been prepared
on a going concern basis,  which  contemplates the realization of assets and the
satisfaction of liabilities and commitments in the normal course of business. As
at September 30, 2002, the Company has accumulated  operating losses of $969,901
since its  inception.  The  continuation  of the Company is  dependent  upon the
continuing  financial  support of  creditors,  directors  and  stockholders  and
obtaining long term financing as well as achieving and  maintaining a profitable
level of operations  through the successful  product  development or through the
acquisition of new  businesses.  It is the intention of the Company to raise new
equity financing of approximately  $1,000,000 within the upcoming year.  Amounts
raised will be used for working capital and to complete acquisitions.  While the
Company is expending  its best  efforts to achieve the above plans,  there is no
assurance  that any such activity will generate funds that will be available for
operations.

         These conditions raise substantial doubt about the Company's ability to
continue  as a going  concern.  These  financial  statements  do not include any
adjustments that might arise from this uncertainty.

Cash and Cash Equivalents

         For purposes of the statement of cash flows, the Company  considers all
highly liquid debt instruments purchased with a maturity of three months or less
to be cash equivalents to the extent the funds are not being held for investment
purposes.

Depreciation

         Fixed  assets  are stated at cost.  Depreciation  and  amortization  is
calculated  on a  straight-line  basis over the  estimated  useful  lives of the
assets as follows:

                     Asset                              Rate
------------------------------------------------  -----------------

Machinery & Equipment                                     3-5 years

         Maintenance  and  repairs are charged to  operations;  betterments  are
capitalized.  The  cost  of  property  sold  or  otherwise  disposed  of and the
accumulated  depreciation  thereon are eliminated  from the property and related
accumulated depreciation accounts, and any resulting gain or loss is credited or
charged to income.

                                       27

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Depreciation (Continued)

         The Company has adopted the Financial  Accounting  Standards Board SFAS
No. 121,  "Accounting  for the  Impairment of  Long-lived  Assets." SFAS No. 121
addresses  the  accounting  for (i)  impairment of  long-lived  assets,  certain
identified  intangibles and goodwill  related to assets to be held and used, and
(ii) long-lived assets and certain  identifiable  intangibles to be disposed of.
SFAS  No.  121  requires  that  long-  lived  assets  and  certain  identifiable
intangibles  held and used by an entity,  be reviewed  for  impairment  whenever
events or changes in circumstances indicate that the carrying amount of an asset
may not be  recoverable.  If the sum of the expected  future cash flows from the
used of the  asset  and its  eventual  disposition  (un-discounted  and  without
interest  charges) is less than the carrying  amount of the asset, an impairment
loss is recognized.

Intangible Assets

         As a part of the purchase of Energy Medicine Developments Corp., during
2002,  the  Company  acquired  intangible  assets  of  $18,000  assigned  to the
worldwide  marketing  and  distributions  rights of the  "Enermed  Therapy"  and
"Enermed  Device".  Under  SFAS  121,  these  intangibles  are  not  subject  to
amortization , but are tested for impairment annually.  During 2002, the company
determined  that,  based on estimated  future cash flows, the carrying amount of
these  intangibles  does not exceed their fair value and no impairment  loss has
been recognized for 2002.

Foreign Currency Translation

         The  Company's  primary  functional  currency is the  Canadian  dollar.
Monetary  assets  and  liabilities  resulting  from  transactions  with  foreign
suppliers and customers are  translated at year-end  exchange  rates.  All other
assets,  liabilities,  and  stockholders'  equity are  translated  at historical
exchange rates for past  transactions and at year-end exchange rates for current
and future  transactions.  Revenue and expense  accounts are  translated  at the
average exchange rates in effect during the year, except those related to assets
and   liabilities,   which  are   translated  at  historical   exchange   rates.
Re-measurement gains and losses are included in income.

         The  Company's  reporting  currency is the U.S.  dollar.  Balance sheet
accounts  are  translated  at year- end  exchange  rates and revenue and expense
accounts are translated at the average exchange rates in effect during the year.
Translation   gains  and  losses  are  included  as  a  separate   component  of
stockholders' equity.



                                       28

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Pervasiveness of Estimates

         The  preparation of financial  statements in conformity  with generally
accepted  accounting  principles  required  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.

Concentrations of Credit Risk

         The  Company has no  significant  off-balance-sheet  concentrations  of
credit  risk such as foreign  exchange  contracts,  options  contracts  or other
foreign hedging arrangements.

Earnings (Loss) per Share

         Basic loss per share has been  computed  by  dividing  the loss for the
year  applicable to the common  stockholders  by the weighted  average number of
common  shares  outstanding  during the years.  There were no common  equivalent
shares outstanding at September 30, 2002 and 2001.

Income Taxes

         The Company  accounts for income taxes under the provisions of SFAS No.
109, "Accounting for Income Taxes." SFAS No.109 requires recognition of deferred
income  tax  assets  and   liabilities   for  the  expected  future  income  tax
consequences,  based on enacted tax laws, of temporary  differences  between the
financial reporting and tax bases of assets and liabilities.

Research and Development

         Expenditures  on research and  development  are charged to expense when
incurred.  Research and  development  costs consist of the cost of materials and
services consumed,  salaries and wages of personnel directly engaged in research
and  development,   accrued  consulting  fees  directly  tied  to  research  and
development and the cost of patent applications.


                                       29

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Comprehensive Income

         The Company has adopted SFAS No. 130, "Reporting Comprehensive Income",
which establishes  standards for reporting and display of comprehensive  income,
its  components  and  accumulated  balances.  The  Company  is  disclosing  this
information on its Consolidated Statement of Stockholders' Equity. Comprehensive
income is  comprised  of net income  (loss) and all  changes to capital  deficit
except those resulting from investments by owners and distribution to owners.

Fair Value of Financial Instruments

         The carrying value of the Company's  financial  instruments,  including
cash (bank overdraft),  receivables, accounts payable and accrued liabilities at
September 30, 2002 and 2001 approximates their fair values due to the short-term
nature of these financial instruments.

         The fair value of loans  payable to  stockholders  and  directors and a
related party were not practicable to determine.

New Accounting Pronouncements

         In  June  2001,  the  Financial  Accounting  Standards  Board  ("FASB")
finalized SFAS Statements No. 141, Business Combinations (SFAS 141), and No 142,
Goodwill and Other  Intangible  Assets (SFAS 142).  SFAS 141 requires the use of
the  purchase  method of  accounting  and  prohibits  the use of the  pooling of
interests  method of accounting for business  combinations  initiated after June
30, 2001. SFAS 141 also requires that the Company recognize acquired  intangible
assets  apart from  goodwill if the  acquired  intangible  assets  meet  certain
criteria. SFAS 141 applies to all business combinations initiated after June 30,
2001 and for purchase business combinations  completed on or after July 1, 2001.
It also  requires,  upon adoption of SFAS 142, that the Company  reclassify  the
carrying amounts of intangible assets and goodwill based on the criteria in SFAS
141.

         SFAS 142  requires,  among  other  things,  that  companies  no  longer
amortize  goodwill,  but instead test goodwill for impairment at least annually.
In addition, SFAS 142 requires that the Company identify reporting units for the
purposes of assessing  potential  future  impairments of goodwill,  reassess the
useful  lives  of  other  existing  recognized   intangible  assets,  and  cease
amortization of intangible  assets with an indefinite useful life. An intangible
asset  with an  indefinite  useful  life  should be  tested  for  impairment  in
accordance  with the guidance in SFAS 142. SFAS 142 is required to be applied in
fiscal  years  beginning  after  December  15,  2001 to all  goodwill  and other
intangible assets recognized at that date,  regardless of when those assets were
initially recognized. SFAS 142 requires the Company to complete a transitional


                                       30

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

New Accounting Pronouncements (Continued)

goodwill  impairment  test six months from the date of adoption.  The Company is
also required to reassess the useful lives of other intangible assets within the
first interim quarter after adoption of SFAS 142.

         The Company has adopted these  standards  effective for its fiscal year
commencing October 1, 2001.

         In October  2001,  the FASB issued SFAS No.  144,  "Accounting  for the
Impairment or Disposal of Long-Lived  Assets".  SFAS No. 144 requires that those
long-lived assets be measured at the lower of carrying amount or fair value less
cost to sell,  whether  reported in  continuing  operations  or in  discontinued
operations. Therefore, discontinued operations will no longer be measured at net
realizable  value or include  amounts  for  operating  losses  that have not yet
occurred.  SFAS No. 144 is effective for financial  statements issued for fiscal
years  beginning  after  December  15,  2001 and,  generally,  is to be  applied
prospectively. The implementation of this new standard is not expected to have a
material effect on the Company's financial statements.

         In July 30, 2002,  the FASB issued FASB  Statement No. 146,  Accounting
for the  Costs  Associated  with Exit or  Disposal  Activities.  This  statement
requires   companies  to  recognize  costs  associated  with  exit  or  disposal
activities only when liabilities for those costs are incurred rather than at the
date of a commitment  to an exit or disposal  plan.  FASB No. 146 also  requires
companies to initially measure  liabilities for exit and disposal  activities at
their fair values.  FASB No. 146 replaces  Emerging  Issues Task Force  ("EITF")
Issue No. 94-3, Liability  Recognition for Certain Employee Termination Benefits
and Other  Costs to Exit an  Activity  (including  Certain  Costs  Incurred in a
Restructuring)  and EITF No. 88-10,  Costs Associated with Lease Modification or
Termination.  The  provisions of FASB No. 146 are effective for exit or disposal
activities that are initiated after December 31, 2002.

         In  December  2002,  the FASB  issued  SFAS  No.  148,  Accounting  for
Stock-Based  Compensation  -  Transition  and  Disclosure - an amendment of FASB
Statement  No.  123.  This  Statement  amends  SFAS  No.  123,   Accounting  for
Stock-Based  Compensation,  to provide  alternative  methods of transition for a
voluntary  change to the fair value based method of accounting  for  stock-based
employee  compensation.  In  addition,  this  Statement  amends  the  disclosure
requirements  of Statement 123 to require  prominent  disclosures in both annual
and interim financial  statements about the method of accounting for stock-based
employee  compensation  and the effect of the method used on  reported  results.
This Statement also requires that those effects be disclosed more prominently by
specifying the form, content, and location of those disclosures.

Reclassifications

         Certain   reclassifications  have  been  made  in  the  2001  financial
statements to conform with the 2002 presentation.

                                       31

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

NOTE 2 - RELATED PARTY TRANSACTIONS

         The Company  has  borrowed  $31,277  ($47,500  Canadian)  from a person
related to one of the directors.  The loan is unsecured and is without  specific
terms of  repayment.  Interest is payable at 8%. As of September  30, 2002,  the
principal  balance has been paid in full and $5,228 ($8,291 Canadian) in accrued
interest is due and payable and has been reported as part of the Net Liabilities
of Discontinued Operations in the accompanying Balance sheets .

         Directors fees of $24,000 were paid during 2001.  Beginning in 2002 the
company no longer pays directors  fees. As of September 30, 2002, no amounts are
due to directors as a result of their services as directors.

         As at September 30, 2002 and 2001, shareholder payables include $20,821
and $0 and Net  Liabilities  of  Discontinued  Operations  include  $227,717 and
$219,821 owing to major shareholders and Directors.  The advances are unsecured,
do not bear interest and have no specific  terms of repayment.  The advances are
summarized as follows:


                                                  2002               2001
                                          ------------------  -----------------
Cash advances to the Company              $          298,525  $         272,060
Repayments                                           (71,317)           (70,416)
Reimbursable expenses                                 21,330             18,177
                                          ------------------  -----------------

                                          $          248,538  $         219,821
                                          ==================  =================

         The Company is party to consulting  agreements  between the Company and
certain of its officers and  shareholders,  and a royalty  agreement between the
Company and a company under common control. (See Note 3- Commitments)

NOTE 3 - COMMITMENTS

         The  Company has signed  consulting  agreements  with three  companies;
Alternative Health Care Research,  owned/controlled  by the Dr. Martha Lappin, a
shareholder of the Company; IHR Integrated Health Research,  owned/controlled by
Fraser Lawrie,  President and CEO of the Company; and CMC Collateral  Management
Canada Ltd.,  owned/Controlled  by Robert Fletcher,  CFO and COO of the Company.
Pursuant to the agreements, the Company has agreed to pay a monthly remuneration
of $7,900 per agreement for services  rendered in connection with the management
and oversight of the continued research and clinical trials of "Enermed Therapy"
and the  "Enermed  Device"  and  management  of the day to day  business  of the
Company.  The  agreements  are  effective  for a period of five years  beginning
January 1, 2002.

                                       32

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

NOTE 3 - COMMITMENTS (Continued)

         For the Year ended September 30, 2002, the Company has accrued $213,300
in connection with these agreements.  Future  obligations under these agreements
are as follows:


Year Ended September 30,                  Amount
-----------------------------------  -----------------

         2003                        $         284,400
         2004                                  284,400
         2005                                  284,400
         2006                                  284,400
         2007                                   71,100
                                     -----------------

Total                                $       1,208,700
                                     =================

         Pursuant to the terms of a Royalty Agreement, we were granted the right
to use, distribute, market and sell the Enermed device, and any other derivative
or related product  developed by either our company or by another company Energy
Medicine  Developments  Inc., a company  incorporated in the province of British
Columbia.  Energy Medicine  Developments,  Inc. is currently owned 50% by Fraser
Lawrie,  our President & CEO and 50% by Robert Fletcher,  our CFO & COO. We will
pay Energy Medicine Developments Inc. the following royalties during each of our
fiscal years, in perpetuity:

         1.       0 - 50,000  devices:  seven  percent (7%) of the selling price
                  for the first 50,000 devices sold each year during the Royalty
                  Agreement;

         2.       Over 50,000  devices:  five percent (5%) of the selling  price
                  for each device sold beyond the initial  50,000  devices  sold
                  each year during the Royalty Agreement; and

         3.       Other Products:  ten percent (10%) of the gross selling price,
                  prior to any  discounts,  of any other  product  manufactured,
                  sold or distributed by our company, payable at the end of each
                  calendar month for sales in the previous month.

As of the  September  30,  2002,  we have  not  commenced  using,  distributing,
marketing or selling the Enermed device under the Royalty Agreement.

NOTE 4 - INCOME TAXES

         As of  September  30,  2002,  the  Company  had a  net  operating  loss
carryforward for income tax reporting purposes of approximately  $55,700 (2001 -
$53,000) that may be offset  against  future  taxable  income  through 2022, and
undeducted  expenditures of $213,300 (2001 - $0) available to be carried forward
indefinitely  to reduce taxable  income of future years.  Current tax laws limit
the amount of loss available

                                       33

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

NOTE 4 - INCOME TAXES (Continued)

to be  offset  against  future  taxable  income  when a  substantial  change  in
ownership  occurs.  Therefore,  the amount  available to offset  future  taxable
income  may be  limited.  No tax  benefit  has been  reported  in the  financial
statements,  because the Company  believes  there is a 50% or greater chance the
carry-forwards  will expire unused.  Accordingly,  the potential tax benefits of
the loss carry-forwards are offset by a valuation allowance of the same amount.

         The  tax  effect  of  temporary  differences  for  Canadian  and US tax
purposes that give rise to the Company's  deferred assets  (liabilities)  are as
follows:


                                                  2002               2001
                                          ------------------  -----------------

Net operating losses                      $           18,938  $          18,020
Undeducted expenses                                   72,522                  -
Valuations allowance                                 (91,460)           (18,020)
                                          ------------------  -----------------

                                          $                -  $               -
                                          ==================  =================

         The provision for income taxes differs from the amount  computed  using
the federal US statutory income tax rate as follows:


                                                 2002               2001
                                          ------------------  -----------------

Provision (Benefit) at US Statutory rate  $          (71,961) $         (38,049)
Effect of taxation in Canada                           1,931             (8,197)
Foreign Exchange & Other                              (3,410)            17,703
Increase in Valuation Allowance                       73,440             28,543
                                          ------------------  -----------------

                                          $                -  $               -
                                          ==================  =================

         The Company  evaluates its valuation  allowance  requirements  based on
projected future operations.  When  circumstances  change and causes a change in
management's  judgement  about the  recoverability  of deferred tax assets,  the
impact of the change on the valuation is reflected in current income.

                                       34

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

NOTE 5 - DISCONTINUED OPERATIONS

         On September  12, 2002,  the  directors of the  Company's  wholly owned
subsidiary,  Niew  Industries,  Inc. sold the Company's  unfinished trams system
prototype to unrelated parties for $63,585 (CDN$ 100,000) with a down payment of
$44,509  (CDN$70,000) and a receivable of $18,918 (CDN$30,000) to be paid within
12 months of the agreement.  The purchaser is also required to complete and sell
the  trams  system  and pay  Niew  Industries,  Inc.  one  half of the net  sale
proceeds, as defined in the agreement.

         Following the sale of the incomplete tram system prototype, the Company
decided to completely  dispose of its  subsidiary,  Niew  Industries,  Inc., and
focus  entirely  on  developing  a sales and  marketing  program for the Enermed
device and the Enermed  Therapy  through its majority  owned  subsidiary  Energy
Medicine Developments Corp., a Delaware corporation.

         On January 22,  2003,  we entered  into an agreement to sell our wholly
owned  subsidiary,  Niew  Industries,  Inc to the former  directors  of Niew for
$44,142 ($70,000 Canadian).  On January 27, 2003, we closed on the agreement and
received a $31,530  ($ 50,000  Canadian)  down  payment,  with  $6,306 ($ 10,000
Canadian)  payable on February 3, 2003  (received as of the date of this filing)
and the remaining $6,306 ($ 10,000 Canadian)  payable on or before September 12,
2003.

         The assets and  liabilities  Niew  Industries,  Inc.,  consisted of the
following:


                                             September 30,       September 30,
                                                  2002               2001
                                          ------------------  -----------------

Receivables                               $           23,332  $             299
Prepaid expense                                            -                720
Machinery & equipment, net                             4,625              5,912
                                          ------------------  -----------------
       Total assets                       $           27,957  $           6,931

Accounts payable & accrued liabilities    $           65,865  $          59,784
Bank overdraft                                         3,122              2,574
Related party loans                                        -             30,092
Shareholder Payables                                 227,717            219,821
                                          ------------------  -----------------
       Total liabilities                             296,704            312,271
                                          ------------------  -----------------

        Net liabilities to be disposed of $         (268,747) $        (305,340)
                                          ==================  =================

         Net  liabilities to be disposed of have been  separately  classified in
the  accompanying  consolidated  balance sheet at September  30, 2002.  The 2001
balance sheet has been restated to conform with the current year's presentation.


                                       35

<PAGE>



                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

NOTE 5 - DISCONTINUED OPERATIONS (Continued)

         Operating  results of this  discontinued  operation  for the year ended
September  30,  2002  are  shown  separately  in the  accompanying  consolidated
statement of operations.  The operating  statement for 2001 has been restated to
conform with the current year's presentation and are also shown separately.  The
operating results of this  discontinued  operation for the years ended September
30, 2002 and 2001 consist of:


                                                  For the year ended
                                                      September 30,
                                         --------------------------------------
                                                2002                2001
                                         ------------------   -----------------

Revenues                                 $                -   $               -
Expenses                                            (37,217)            (80,783)
Gain on Sale of Assets                               63,585                   -
Net Income (Loss)                                    26,368             (80,783)




                                       36

<PAGE>



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

On May 15,  2002 we filed a Form 8-K  Current  Report  announcing  the change of
accountants from BDO Dunwoody LLP to Robison, Hill & Co.

                                    PART III

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

All  directors of our company  hold office until the next annual  meeting of the
shareholders  or until their  successors  have been elected and  qualified.  The
officers of our company are  appointed by our board of directors and hold office
until their death,  resignation  or removal from office.  As at the date of this
annual  report,  our  officers and  directors,  their ages,  positions  held and
duration of positions held are as follows:


NAME                         AGE    POSITION WITH             DATE POSITION
                                    THE COMPANY               FIRST HELD

Fraser Lawrie                50     President, CEO            February 18, 2002
Robert Fletcher              54     CFO,COO                   February 18, 2002

Business Experience

The following is a brief account of the education and business experience during
at least the past five years of each director, executive officer and significant
employee,  indicating the principal  occupation during that period, and the name
and  principal  business  of the  organization  in  which  such  occupation  and
employment were carried out.

Fraser Lawrie, Director

Mr. Lawrie has been a director of our company since October 4, 2001. Since 1994,
Mr. Lawrie has a Masters Degree in Health Sciences, has been President of Energy
Medicine   Developments  (North  America)  Inc.,  and  has  acted  as  Treatment
Consultant in the clinical trials of the Enermed Therapy,  and has co-authored a
number of journal articles.  He has been co-ordinating Energy Medicine's efforts
to obtain  regulatory  approval  to market  the  Enermed  Therapy  in the United
States.  He is a trained Enermed  Technician and provides the Enermed Therapy to
patients  and  subjects.  Mr.  Lawrie is also an officer  with  Energy  Medicine
Developments Inc.

Robert Fletcher, Director

Mr.  Fletcher  has been a director of our  company  since  October 4, 2001.  Mr.
Fletcher is a Certified  General  Accountant.  Since 1994 Mr.  Fletcher has been
Vice President of Energy Medicine Developments (North America) Inc. with primary
responsibility for ongoing daily operations.  He is a trained Enermed Technician
and provides  the Enermed  Therapy to patients  visiting the Canadian  treatment
centres. He is also a director and officer of Energy Medicine Developments Inc.

                                       37

<PAGE>



Compliance with Section 16(a) of the Exchange Act

Section 16(a) of the Securities Exchange Act of 1934, as amended,  requires that
our  executive  officers  and  directors  and persons who own more than 10% of a
registered class of our equity  securities file with the Securities and Exchange
Commission  initial  statements of beneficial  ownership,  reports of changes in
ownership and annual reports  concerning their ownership of our common stock and
other equity securities,  on Forms 3, 4 and 5 respectively.  Executive officers,
directors and greater than 10%  shareholders  are required by the Securities and
Exchange  Commission  regulations to furnish us with copies of all Section 16(a)
reports they file.

To the best of our knowledge,  during the fiscal year ended  September 30, 2002,
all executive  officers,  directors and greater than 10% shareholders  filed the
required reports in a timely manner.

ITEM 10.          EXECUTIVE COMPENSATION.

SUMMARY OF COMPENSATION OF EXECUTIVE OFFICERS

No executive  officer of our company  received annual salary and bonus in excess
of $100,000 for the years ended September 30, 2002, 2001 and 2000.

For the years ended  September 30, 2002 and 2001, we did not pay any salaries or
bonuses to any of our executive officers.

As of the  date  of  this  annual  report,  we  have  no  compensatory  plan  or
arrangement  with  respect to any  officer  that  results or will  result in the
payment of  compensation  in any form from the  resignation,  retirement  or any
other  termination of employment of such officer's  employment with our company,
from  a  change  in  control  of our  company  or a  change  in  such  officer's
responsibilities following a change in control.

Employment/Consulting Agreements

         The  Company has signed  consulting  agreements  with three  companies;
Alternative Health Care Research,  owned/controlled  by the Dr. Martha Lappin, a
shareholder of the Company; IHR Integrated Health Research,  owned/controlled by
Fraser Lawrie,  President and CEO of the Company; and CMC Collateral  Management
Canada Ltd.,  owned/Controlled  by Robert Fletcher,  CFO and COO of the Company.
Pursuant to the agreements, the Company has agreed to pay a monthly remuneration
of $7,900 per agreement for services  rendered in connection with the management
and oversight of the continued research and clinical trials of "Enermed Therapy"
and the  "Enermed  Device"  and  management  of the day to day  business  of the
Company.  The  agreements  are  effective  for a period of five years  beginning
January 1, 2002. For the Year ended  September 30, 2002, the Company has accrued
$213,300 in connection with these  agreements.  Future  obligations  under these
agreements is as follows:


Year Ended September 30,                  Amount
-----------------------------------  -----------------

         2003                        $         284,400
         2004                                  284,400
         2005                                  284,400


                                       38

<PAGE>



Year Ended September 30,                  Amount
-----------------------------------  -----------------
         2006                                  284,400
         2007                                   71,100
                                     -----------------

Total                                $       1,208,700
                                     =================

Stock Options/SAR Grants

There were no grants of stock options or stock  appreciation  rights made during
the fiscal years ended September 30, 2002 and 2001 to our executive officers and
directors. There were no stock options outstanding as at December 31, 2002.

Long-Term Incentive Plans

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

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

Directors' Compensation

We reimburse our directors for expenses  incurred in connection  with  attending
board  meetings.  Beginning in 2002,  we do not  compensate  directors for their
services.  We accrued  director's  fees of $24,000 to our directors for services
rendered  as  directors  in the  year  ended  September  30,  2001.  We  accrued
directors'  fees of $18,000 to our directors for services  rendered as directors
in the year ended September 30, 2000.

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

ITEM 11.         SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

Security Ownership of Certain Beneficial Owners and Management

                                       39

<PAGE>



The following  table sets forth,  as at February 20, 2003,  certain  information
with respect to the beneficial ownership of our common stock by each shareholder
known by us to be the  beneficial  owner of more than five  percent  (5%) of our
common stock, and by each of our current directors and executive officers.  Each
person has sole voting and investment power with respect to the shares of common
stock, except as otherwise indicated.  Beneficial ownership consists of a direct
interest in the shares of common stock, except as otherwise indicated.


Name and Address of                         Amount and Nature of    Percentage
Beneficial Owner                           Beneficial Ownership(1)  of Class(1)
-----------------------------------------  -----------------------  -----------

Fraser Lawrie                                           12,371,247        33.5%
(President, CEO)
#104 - 630 Columbia Street
New Westminster, BC Canada V3M 1A5

Robert Fletcher                                         12,371,247        33.5%
(CFO, COO)
#104 - 630 Columbia Street
New Westminster, BC Canada V3M 1A5

Cede & Co.                                               6,211,000        16.8%
P.O. Box 20
Bowling Green Stn.
New York, NY 10274

Martha Lappin                                            2,462,155         6.7%
10841 Split Oak Lane
Burke, VA 22015

Directors and Executive Officers as a Group             24,742,494        67.0%

(1) Based on  36,906,509  shares of common  stock issued and  outstanding  as of
February 20, 2003. Except as otherwise indicated, we believe that the beneficial
owners of the common stock listed above, based on information  furnished by such
owners,  have sole  investment  and voting  power with  respect to such  shares,
subject to community  property laws where  applicable.  Beneficial  ownership is
determined in accordance with the rules of the SEC and generally includes voting
or investment  power with respect to securities.  Shares of common stock subject
to options or warrants currently exercisable, or exercisable within 60 days, are
deemed  outstanding  for purposes of computing the  percentage  ownership of the
person  holding  such option or  warrants,  but are not deemed  outstanding  for
purposes of computing the percentage ownership of any other person.

Changes in Control

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


                                       40

<PAGE>



ITEM 12.          CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

Three former directors and officers of our company, Ken Bergestad,  Walter Niemi
and Lloyd Olson,  have  advanced as a loan to our company an aggregate of $7,896
for the year ended September 30, 2002,  $48,904 for the year ended September 30,
2001 and $199,402  (before  repayment) for the year ended September 30, 2000. In
addition,  certain  shareholders  of our company have  advanced as a loan to our
company $20,821 for the year ended September 30, 2002. Total advances from these
individuals  outstanding as at September 30, 2002 was $248,538. The advances are
unsecured, do not bear interest and have no specific terms of repayment.

On October 2, 2001,  our company  entered  into an  Acquisition  Agreement  with
Energy  Medicine  Developments  Corp.,  pursuant to which our company  agreed to
acquire  from  Energy  Medicine  Developments  Corp.  100%  of  its  issued  and
outstanding shares in exchange for 18,000,000 shares in our capital. At the date
of the Acquisition Agreement, Fraser Lawrie was the President of Energy Medicine
and Robert  Fletcher was Energy  Medicine's  Vice President and  Treasurer,.  In
addition, both Mr. Lawrie and Mr. Fletcher were shareholders of Energy Medicine.
Following the execution of the  Acquisition  Agreement,  on October 4, 2001, Mr.
Lawrie and Mr. Fletcher became  directors of our company.  On November 15, 2001,
each of Mr. Lawrie and Mr. Fletcher were issued  6,371,247 shares in the capital
of our company in advance for  consideration  of their shares of Energy Medicine
Developments  Corp. In addition,  one of the beneficial  shareholders of greater
than 5% of our issued  and  outstanding  shares,  Dr.  Martha  Lappin was issued
2,462,155  shares in the capital of our company on November  15, 2001 in advance
for  consideration of her shares of Energy Medicine  Developments  Corp., as the
sole director and the Secretary of Energy Medicine  Developments Corp, and 1,860
shares were issued to an otherwise unrelated individual.

On October 4, 2001,  our company  entered into a Royalty  Agreement  with Energy
Medicine  Developments  Inc. At the date of  executing  this  agreement,  Robert
Fletcher was a director  and officer and Fraser  Lawrie was an officer of Energy
Medicine Developments Inc. in addition to being directors of our company.



                                     PART IV


ITEM 13.          EXHIBITS AND REPORTS ON FORM 8-K.

Reports on Form 8-K

On February 7, 2002 (amended April 22, 2002), we filed a Form 8-K Current Report
announcing  the closing of the share  exchange  agreement  with Energy  Medicine
Developments Corp.

On May 15,  2002 we filed a Form 8-K  Current  Report  announcing  the change of
accountants from BDO Dunwoody LLP to Robison, Hill & Co. on May 13, 2002.

                                       41

<PAGE>



Exhibits

Exhibits Required by Item 601 of Regulation S-B

(3)      ARTICLES OF INCORPORATION AND BY-LAWS

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

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

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

(10)     MATERIAL CONTRACTS

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

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

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


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

                                       42

<PAGE>



ITEM 14.  CONTROLS AND PROCEDURES

         The Company's Chief Executive  Officer and Chief Financial Officer have
concluded,  based on an evaluation  conducted within 90 days prior to the filing
date of this  annual  report  on Form  10-KSB,  that  the  Company's  disclosure
controls and  procedures  have  functioned  effectively  so as to provide  those
officers the information necessary whether:

                  (i) this  annual  report on Form  10-KSB  contains  any untrue
                  statement of a material fact or omits to state a material fact
                  necessary  to  make  the  statements  made,  in  light  of the
                  circumstances  under  which such  statements  were  made,  not
                  misleading  with respect to the period  covered by this annual
                  report on Form 10-KSB, and

                  (ii) the financial statements, and other financial information
                  included in this annual report on Form 10-KSB,  fairly present
                  in all material respects the financial  condition,  results of
                  operations  and cash flows of the Company as of, and for,  the
                  periods presented in this annual report on Form 10-KSB.

         There  have  been no  significant  changes  in the  Company's  internal
controls or in other factors since the date of the Chief Executive Officer's and
Chief  Financial  Officer's  evaluation  that could  significantly  affect these
internal controls,  including any corrective actions with regards to significant
deficiencies and material weaknesses.


                                       43

<PAGE>



                                   SIGNATURES

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

GLOBAL INNOVATIVE SYSTEMS, INC.


By: /s/ Fraser Lawrie
Fraser Lawrie, President & CEO
Date: March 7, 2003

By: /s/ Robert Fletcher
Robert Fletcher, COO & CFO
Date: March 7, 2003


                                       44

<PAGE>



I, Fraser Lawrie, certify that:

1.       I have reviewed this annual report on form 10-KSB of Global  Innovative
         Systems Inc.

2.       Based on my  knowledge,  this annual report does not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances  under which
         such  statements  were made, not misleading  with respect to the period
         covered by this annual report.

3.       Based on my knowledge,  the financial  statements,  and other financial
         information  included  in this  annual  report,  fairly  present in all
         material  respects the financial  condition,  results of operations and
         cash flows of the  registrant as of, and for, the periods  presented in
         this annual report.

4.       The registrant's  other  certifying  officers and I are responsible for
         establishing  and  maintaining  disclosure  controls and procedures (as
         defined in exchange act rules 13a-14 and 15d-14) for the registrant and
         have:

         A)       designed  such  disclosure  controls and  procedures to ensure
                  that  material   information   relating  to  the   registrant,
                  including its consolidated  subsidiaries,  is made known to us
                  by others  within  those  entities,  particularly  during  the
                  period in which this annual report is being prepared;

         B)       evaluated the  effectiveness  of the  registrant's  disclosure
                  controls and  procedures  as of a date within 90 days prior to
                  the filing date of this annual report (the "evaluation date");
                  and

         C)       presented  in this  annual  report our  conclusions  about the
                  effectiveness of the disclosure  controls and procedures based
                  on our evaluation as of the evaluation date;

5.       The registrant's other certifying officers and I have disclosed,  based
         on our most recent  evaluation,  to the  registrant's  auditors and the
         audit  committee  of  registrant's   board  of  directors  (or  persons
         performing the equivalent functions):

         A)       all  significant  deficiencies  in the design or  operation of
                  internal   controls   which   could   adversely   affect   the
                  registrant's ability to record, process,  summarize and report
                  financial  data  and  have  identified  for  the  registrant's
                  auditors any material weaknesses in internal controls; and

         B)       any fraud,  whether or not material,  that involves management
                  or  other  employees  who  have  a  significant  role  in  the
                  registrant's internal controls.

6.       The registrant's other certifying officers and I have indicated in this
         annual report whether or not there were significant changes in internal
         controls or in other factors that could  significantly  affect internal
         controls  subsequent  to  the  date  of  our  most  recent  evaluation,
         including   any   corrective   actions   with  regard  to   significant
         deficiencies and material weaknesses.

Date: March  7, 2003

By: /s/ Fraser Lawrie
Fraser Lawrie, President & CEO

                                       45

<PAGE>



I, Robert Fletcher, certify that:

1.       I have reviewed this annual report on form 10-KSB of Global  Innovative
         Systems Inc.

2.       Based on my  knowledge,  this annual report does not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances  under which
         such  statements  were made, not misleading  with respect to the period
         covered by this annual report.

3.       Based on my knowledge,  the financial  statements,  and other financial
         information  included  in this  annual  report,  fairly  present in all
         material  respects the financial  condition,  results of operations and
         cash flows of the  registrant as of, and for, the periods  presented in
         this annual report.

4.       The registrant's  other  certifying  officers and I are responsible for
         establishing  and  maintaining  disclosure  controls and procedures (as
         defined in exchange act rules 13a-14 and 15d-14) for the registrant and
         have:

         A)       designed  such  disclosure  controls and  procedures to ensure
                  that  material   information   relating  to  the   registrant,
                  including its consolidated  subsidiaries,  is made known to us
                  by others  within  those  entities,  particularly  during  the
                  period in which this annual report is being prepared;

         B)       evaluated the  effectiveness  of the  registrant's  disclosure
                  controls and  procedures  as of a date within 90 days prior to
                  the filing date of this annual report (the "evaluation date");
                  and

         C)       presented  in this  annual  report our  conclusions  about the
                  effectiveness of the disclosure  controls and procedures based
                  on our evaluation as of the evaluation date;

5.       The registrant's other certifying officers and I have disclosed,  based
         on our most recent  evaluation,  to the  registrant's  auditors and the
         audit  committee  of  registrant's   board  of  directors  (or  persons
         performing the equivalent functions):

         A)       all  significant  deficiencies  in the design or  operation of
                  internal   controls   which   could   adversely   affect   the
                  registrant's ability to record, process,  summarize and report
                  financial  data  and  have  identified  for  the  registrant's
                  auditors any material weaknesses in internal controls; and

         B)       any fraud,  whether or not material,  that involves management
                  or  other  employees  who  have  a  significant  role  in  the
                  registrant's internal controls.

6.       The registrant's other certifying officers and I have indicated in this
         annual report whether or not there were significant changes in internal
         controls or in other factors that could  significantly  affect internal
         controls  subsequent  to  the  date  of  our  most  recent  evaluation,
         including   any   corrective   actions   with  regard  to   significant
         deficiencies and material weaknesses.

Date: March  7, 2003

By: /s/ Robert Fletcher
Robert Fletcher, COO & CFO

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