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

FORM 10-KSB

(Mark One)

[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

[ ]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from [ ]to[ ]

Commission file number

|GLOBAL INNOVATIVE SYSTEMS INC.(Exact name of registrant as specified in its charter)   
|---------------------------------------------------------------------------------------
|Nevada(State or other jurisdiction of incorporation or organization)                   
|5975 Selkirk Crescent
Prince George, BC, Canada(Address of principal executive offices)

Registrant's telephone number, including area code

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

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

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

|Common Shares, $0.001 par value(Title of class)
|-----------------------------------------------



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 pursuant to Item 405 of Regulation S-K (229.405 of this chapter) contained herein, and no disclosure will be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB. [X]

State Issuer's revenues for its most recent fiscal year:  nil

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

14,564,015 common shares @ $0.13(1) = $1,893,322

(ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS)

Check whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.     Yes [ ]     No [ ]

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

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

36,906,509 common shares issued and outstanding as of December 31, 2001

DOCUMENTS INCORPORATED BY REFERENCE

None.

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



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 5975 Selkirk Crescent, Prince George, BC, Canada  V2N 2G9.  Our telephone number is (250) 964-2692 and our facsimile number is (250) 964-2693.

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.

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.  To date, this has been Niew Industries' only business activity.

Our Current Business

Our current business involves the development and testing of a twin rotating asphalt mixing system.

The Trams System - Phase I

The main frame of the Trams System houses a diesel gas powered electric generator for electrical power, all electrical components, a four bin feed system (split bins, two side by side), a burner with a blower and an exhaust fan to dry the aggregate and drum.  The drum was designed as a double tapered mixer-dryer with one drum inside the other.  This caused the overall drum length to be cut in half thus allowing for more frame area.  The drum's double tapered design allows asphalt oil to be sprayed in with no fire contact.  The asphalt spray system was designed to arrest the majority of dry particulate from the air and introduced back into the mixed product.  The shape of the drums allows the plant to be set up level rather than at an incline as with conventional plants.  The tapered drums also cause the air to slow down on exit, thus any particles that may have escaped fall back into the drum.

Other auxiliary equipment is required before and after the mixing process, with the mixing being done in the drum.  This equipment includes a power source (generator), gravel bins to feed the mixer, scale belts to weigh and calibrate the aggregate supply, and a burner to dry the gravel and bring the material to a specified temperature.  Other equipment includes a control centre to control and monitor the integrated electronic system, liquid asphalt storage and pump system to inject a specified percentage of gravel to oil ratio, a pollution system to capture airborne emissions, discharge system which moves the properly heated and mixed material to a silo capable of holding 25 to 70 tons of finished product.  The trailer for the Trams System holds all but the silo and liquid storage tank which is a unique feature compared to existing asphalt plants.

Conventional plant drums are not tapered requiring them to be elevated and blocked so the aggregate will flow downhill.  The Trams System does not require very much blocking because the plant is set-up level.  This is because the drums on the Trams System are tapered like a funnel and so the drum is sloped when the trailer is level.  The Trams System is capable of producing the same volume of asphalt per hour as is delivered by plants that take three to four days to set up.  The current conventional systems also require five trucks to move all of the equipment that they require to the production site, whereas Phase I of the Trams System requires only one truck load.

The Trams System - Phase II

We have plans for the development of a Phase II Trams System.  The Phase II Trams System will consist of a second plant, carried on a separate trailer, which will contain a self-erecting silo and separate storage tanks to carry and store asphalt, diesel fuel and propane fuel.  Once Phase I and Phase II testing has been completed, we will sell or lease the prototype to an asphalt firm for a paving season to further test the system's performance and dependability.  Upon receipt of positive results, we intend to commence manufacturing the Trams System Phase I and II.

A conventional plant of comparable productivity has a drum mixer which is twice the length of the Trams System's double tapered drum.  The Trams System houses the drying/mixer drum, belt scales, four aggregate feeders, bag-house, all electrical and electronic equipment, and a 312 KVA generator on one frame.  Having a silo, asphalt tank, diesel and propane tank on another load makes the Trams System a two pin (two trailer) load to move.  Set-up time for the entire Trams System is expected to be 4 to 6 hours.  A conventional plant has five to six pin loads and takes from three to four days to set-up.

Asphalt Plant Control System Software

Asphalt mixing plants are an electrical jig-saw puzzle, that is, they are electrically pieced together using technology from several different companies.  Typically, they will use a brand name burner, burner controller, scale system (including the controller), asphalt mixing controller, and a bin feeder controller for each bin.  These systems are then pieced together by cables that would run from the various trailers containing that specific piece of equipment to the operator's control booth.  This always leads to between 80 and 150 cables laying on the ground.  Over time, these cables become damaged due to the elements and human neglect.

Information management between these components was the primary decisive factor in basing the decision on how the whole system would be controlled.  The fact that there was just so much information to transfer made it impossible for any operator to keep a handle on things.  It became obvious that some type of computer based system would be necessary to manage all the in-going and out-going information.  The most compatible means of linking these signals was the implementation of a programmable logic controller to manage, store and execute these functions simultaneously.

Once the decision that a programmable logic controller was to be implemented as our primary controller, we examined the electrical system as a whole, comparing the cost of hardwiring all the necessary pushbuttons, timers, counters and control relays that would be necessary to run the entire operation.  Upon completion of this cost analysis, it became clear that the implementation of a man machine interface would not only be feasible, but would save money.  It was decided that we would utilize a Lookout (TM. National Instruments Inc.) man machine interface package.  Once this man machine interface package was purchased, it gave us the capability of great on screen graphics and the flexibility to make extensive system revisions without any added electrical costs.

Once the control systems were decided upon, we examined the possibility of using the programmable logic controller as the controller for the complete plant operation, including the burner system, the asphalt injection system, the bin controller system, the scale integration systems, as well as our motor control system.  This proved to be a formidable challenge, as the use of one programmable logic controller to control all mixing plant functions had never been done.  After considerable research, the necessary components were located and a program was written by Niew Industries to attempt to achieve this goal.  After several trial runs, and several revisions, the program now appears to have the necessary accuracy and functionality to run the operation efficiently.

To date between the programmable logic controller and man machine interface packages, we're using over 100 internal timers, 200+ internal relays and counters, 100+ pushbuttons and numerous potentiometers.  The ladder logic program is currently approximately 115 networks long, and we have created over 100 complex expressions in the Lookout program to assist in the information transfer for the plant operation.

The overall effect of integrating all the plant functions in one package is that instead of the multitude of cables laying on the ground, we ended up with two, one power cable and one computer cable, which both run from the main plant frame to the control booth.  The other main benefits of this integration are the reduced cost (estimated at approximately $60,000 - $100,000), the ability to make extensive control revisions without changing the cabling, the fact that there are less cables on the ground to require maintenance, and the ability to monitor and troubleshoot system problems remotely.

Self-Erecting Silo

In November, 1999, Niew Industries negotiated an exclusive licensing agreement with Ian Westwood, the inventor of a self-erecting silo, also called a portable overhead bin.  Mr. Westwood's silo design is referred to as the "Silovation".  The Silovation system can be used with any existing asphalt plant, including the Trams System.

The Silovation prototype was completed in May, 1999 and is currently owned by the Everall Construction Company of Edmonton, Alberta.  Everall does not own any rights or other property relating to the design of the Silovation.  On November 8, 1999, Niew Industries and Mr. Westwood executed a licence agreement pursuant to which Mr. Westwood licensed to Niew Industries patents and all technical knowledge derived from the portable overhead bin used on the Silovation and the applicable patents held by Mr. Westwood in exchange for the sum of CDN$75,000.  We have paid CDN$35,000 to Mr. Westwood to date.  On November 22, 2000, we entered into an agreement with Mr. Westwood which modified the earlier license agreement.  Pursuant to that amending agreement, we agreed to pay the balance of CDN$40,000 on or before February 28, 2001, which we never paid to Mr. Westwood.  We also agreed to pay royalties to Mr. Westwood as follows:

- CDN$6,000 each for the first two portable overhead bins sold in any calendar year;

- CDN$8,000 each on the next two portable overhead bins sold in any calendar year; and

- CDN$10,000 on any further portable overhead bins sold in any calendar year.

In addition, we agreed to pay a minimum royalty of CDN$20,000 in any calendar year, beginning in 2001, in which fewer than three portable overhead bins are sold.  This royalty is to be paid on or before January 31 after the end of the applicable calendar year.  We agreed to pay a minimum royalty of $10,000 for the 2000 calendar year, which royalty is to be paid on or before February 28, 2001.  If we default on any of these payments, we will lose our rights under the licence agreement.

By an agreement dated September 1, 2001, we agreed to terminate the amended license agreement with Mr. Westwood in consideration of paying Mr. Westwood CDN$10,000 (in respect of 2000 royalties) on or before December 31, 2002.  We have been released from all further obligations in connection with the original agreement as amended.

As at the date of this annual report, Phase I of the Trams System requires further development and testing before it can be commercially released.  We have not yet commenced development of Phase II of the Trans System due to a lack of capital resources.  In addition to the development and testing work that must be performed on both Phase I and Phase II of the Trams System, a sales and marketing campaign must be implemented.

Recent Acquisition and Royalty Agreements subsequent to our year ended September 30, 2001

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.  We are still in the process of completing this acquisition and as at the date of this annual report, a total of 15,206,509 common shares have been issued in advance to shareholders of Energy Medicine Developments Corp.  After we have completed the share exchange and issued 18,000,000 of our common shares, we will be required to file Articles of Share Exchange with the Secretaries of State of Nevada and Delaware in order to complete the acquisition.

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, 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 this annual report, the acquisition of 100% of Energy Medicine Developments (North America) Inc.'s issued and outstanding shares has not been completed and all parties have 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.

On October 4, 2001, we entered into a Royalty Agreement with Energy Medicine Developments Inc.  Energy Medicine Developments Inc., a British Columbia company, is primarily involved in the treatment of multiple sclerosis and migraine headaches using extremely low frequency (ELF), patient specific, pulsed electromagnetic fields, which is identified as the Enermed Therapy.  Energy Medicine Developments Inc. is also heavily involved in research using this specific Enermed Therapy, and is a leader in the clinical application of pulsed electromagnetic therapies.

Because the uncertainty surrounding the acquisition of Energy Medicine Developments (North America) Inc., discussion in the remainder of this annual report to the businesses being acquired is limited to that of Energy Medicine Developments Corp. and the Royalty Agreement with Energy Medicine Developments 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 is not an over-the-counter product, nor one that untrained technicians or medical practitioners can deliver.  Currently all patients seeking treatment must visit one of two treatment facilities in Canada, either the Vancouver Center, which has been operating since 1995, or the Toronto Center 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 the 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 Energy Medicine Developments Inc.  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 at 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.

Risks Related to our Current Business Operations

WE ARE a Development Stage Company with a Limited Operating History Which Makes IT DIFFICULT TO EVALUATE WHETHER WE WILL OPERATE PROFITABLY.

We are a development stage company which is involved in (a) the development, manufacture and marketing of a simplified asphalt mixing system that is intended to be compact, environmentally friendly and easy to mobilize and (b) the marketing and sale of the Enermed device and the Enermed Therapy, if the acquisition of Energy Medicine Developments Corp. is completed.  As a relatively new company, we do not have a historical record of sales and revenues nor an established business track record.  We have not earned any revenues since our formation.

Unanticipated problems, expenses and delays are frequently encountered in ramping up sales and developing new products.  Our ability to successfully develop, produce and sell our Trams System and to eventually generate operating revenues will depend on our ability to, among other things:

1.	successfully design, develop and market both Phase I and Phase II of the Trams System;

2.	successfully develop our second prototype of the Trams System;

3.	successfully develop a customer base for and market acceptance of our Trams System; and

4.	obtain the necessary financing to implement our business plan and plan of operations.

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

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

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

-	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 $758,252 for the period from January 15, 1997 (incorporation) to September 30, 2001.  Although we anticipate that we will be able to generate revenues in the future, we also expect development costs and operating costs to increase as well.  Consequently, we expect to incur operating losses and negative cash flow until the Trams System and the Enermed device and Enermed Therapy, if the acquisition of the company presently owning these technologies is completed, gain sufficient market acceptance to generate a commercially viable and sustainable level of sales, additional Trams System prototypes are developed and commercially released, and sales of either or both of these products are made so that we are operating in a profitable manner.  These circumstances raise substantial doubt about our ability to continue as a going concern as described in an explanatory paragraph to our independent accountant's report on the September 30, 2001 audited financial statements.  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, 2001 of $758,252.  As a result of these losses and negative cash flows from operations, our ability to continue operations will be dependent upon the availability of capital from outside sources unless and until we achieve profitability.

Our future capital requirements will depend on many factors, including cash flow from operations, progress in developing new products, competing knowledge and market developments and an ability to successfully market our products.  Our recurring operating losses and growing working capital needs will require us to obtain additional capital to operate our business before we have established that our business will generate significant revenue.  We do not have sufficient funds on hand to complete our Phase I development of the Trams System but we believe we have access to funds sufficient to complete the development and negotiate the sale of the Phase I Trams System prototype.  We have predicted that we will require approximately $1,550,000 over the period ending September 30, 2002 in order to accomplish our goals of designing, developing, manufacturing and marketing the Trams System and to maintain and expand the market for the Enermed device and the Enermed Therapy.  This is broken down into $1,000,000 for the Enermed device and the Enermed Therapy and $550,000 in connection with the Trams project and general operating expenses.  However, there is no assurance that actual cash requirements will not exceed our estimates.  In particular, additional capital may be required in the event that we:

1. incur unexpected costs in completing the development of our Trams System or encounter any unexpected technical or other difficulties;

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

3. are unable to create a substantial market for our Trams System; or

4. incur any significant unanticipated expenses.

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

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

Our Failure to Effectively Manage Our Growth Could Harm Our Future Business Results and may strain our managerial and operational resources.

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

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

The market price of our common stock could decline as a result of sales by our existing stockholders of shares of common stock in the market.  Likewise, the perception that these sales could occur may result in the decline of the market price of our common stock.  These sales also might make it more difficult for us to sell equity securities in the future at a time and at a price we deem appropriate.

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

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

IF WE ARE UNABLE TO ACHIEVE MARKET ACCEPTANCE FOR OUR TRAMS SYSTEM, WE WILL BE UNABLE TO BUILD OUR TRAMS BUSINESS.

To some extent, our success will depend on the acceptance of our products by the asphalt industry.  Achieving such acceptance may require a significant marketing investment.  We cannot assure you that our existing or proposed products will be accepted by the asphalt industry at sufficient levels to support our operations and build our business.

The Loss of OUR Key Technical Individuals Would Have an Adverse Impact on Future Development and could impair our ability to succeed.

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

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

Trading of Our Stock May Be Restricted by the SEC's Penny Stock Regulations Which May Limit a Stockholder's Ability to Buy and Sell our Stock.

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

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

Stockholders owning a significant percentage of our outstanding voting stock represent the ultimate control over our affairs.  Six stockholders currently control approximately 75% of the outstanding shares of our common stock.  As a result of this ownership, these stockholders will likely be able to approve any major transactions including the election of directors without the approval of the other shareholders.

WE DO NOT EXPECT TO DECLARE OR PAY ANY DIVIDENDS.

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

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

As a result of our limited operating history and the new technology which we seek to introduce into the markets in which we compete, we are unable to accurately forecast our revenues.  Our current and future expense levels are based largely on our plan of operation and estimates of future revenues and are to a large extent fixed.

Sales and operating results generally depend on our ability to develop a base of customers and businesses.  We may be unable to adjust spending in a timely manner to compensate for any unexpected revenue shortfall.  Accordingly, any significant shortfall in estimated revenues in relation to our planned expenditures would have an immediate adverse effect on our business, prospects, financial condition and results of operations.

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

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

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

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

2. our ability to develop a base of manufacturers and users of asphalt plants willing to utilize the Trams System for paving applications;

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

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

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

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

7. governmental regulation;

8. general economic conditions; and

9. economic conditions specific to the asphalt manufacturing and paving industries.

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

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

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

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

We will rely on manufacturers and users of asphalt plants who have historically used traditional means for asphalt manufacturing.  To ensure our success, these manufacturers and users of asphalt plants must accept and utilize our novel Trams System.  The Trams System may not be accepted as a viable alternative to traditional asphalt manufacturing processes for a number of reasons, including potentially inadequate development of the necessary infrastructure or delayed development of related technologies and performance improvements.

THERE MAY BE THE POSSIBILITY OF VOLATILE SHARE PRICES.

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

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

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

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

Risks Associated with the Proposed Expansion of Our Business Operations

WE EXPECT TO ENCOUNTER RISKS IF WE ENTER INTO NEW BUSINESS AREAS.

We may choose to expand our operations by improving the Trams System or even by developing new systems for the asphalt industry or expanding our market presence through relationships with third parties.  In addition, we may pursue the acquisition of new or complementary businesses, products or technologies, including the acquisitions contemplated under the Acquisition Agreement between our company and Energy Medicine Developments Corp. and the Royalty Agreement between our company and Energy Medicine Developments Inc. (see the section entitled "Recent Acquisition and Royalty Agreements subsequent to our year ended September 30, 2001" for further details with respect to these agreements).  There can be no assurance that we would be able to expand our efforts and operations in a cost-effective or timely manner or that any such efforts would increase overall market acceptance.

Expansion of our operations in this manner would also require significant additional expenses and development, operations and editorial resources and may strain our management, financial and operational resources.  The lack of market acceptance of such efforts or our inability to generate satisfactory revenues from such expanded services or products to offset their cost could have a materially adverse effect on our business, prospects, financial condition and results of operations.

In connection with the proposed acquisitions of Energy Medicine Developments Corp. and Energy Medicine Developments (North America) Inc., and the Royalty Agreement with Energy Medicine Developments Inc., we may face the following risks:

1. Need For Additional Financing

If we proceed with and complete the acquisition of Energy Medicine Developments Corp., we anticipate that we will require approximately $1,000,000 over the next twelve months in order to implement a sales and marketing program and conduct further research on the various technologies of Energy Medicine Developments Corp. and Energy Medicine Developments Inc.  We intend to raise this money through the sale of our equity securities or by debt financing.

2. Limited Operating History

Even if we complete the acquisition of Energy Medicine Developments Corp., we anticipate that we will not generate any revenues until we have implemented a sales and marketing program and developed market acceptance of the products which utilize the technologies of Energy Medicine Developments Corp. and Energy Medicine Developments Inc.  There is no assurance that we will be able to implement a successful sales and marketing program and produce broad market acceptance of the products which utilize the technologies of Energy Medicine Developments Corp. or Energy Medicine Developments Inc.  The Enermed therapy and the Enermed device technology contemplated under the Royalty Agreement has been tested and is ready for our company to market; however, our company must pay royalties to Energy Medicine Developments Inc. under the Royalty Agreement.  In order to make the Royalty Agreement a profitable endeavor, we must develop our own market for the Enermed device and must ensure that we sell enough Enermed devices to ensure that the terms of the Royalty Agreement are profitable for our company.  There is no assurance that we will be able to do so.

3. Speculative Nature Of Our Recent Acquisition and Proposed Operations

The success of our the acquisitions and proposed operations will depend to a great extent on the operations, financial condition and management of each of Energy Medicine Developments Corp. and Energy Medicine Developments (North America) Inc.  In the event that we complete the acquisition of Energy Medicine Developments Corp. and/or Energy Medicine Developments (North America) Inc., the success of our operations will likely be dependent upon the abilities and experience of management of the successor entity together with a number of other factors beyond our control.

Item 2. Description of Property.

Our executive and head offices are located at 5975 Selkirk Crescent, Prince George, BC, Canada  V2N 2G9.  Our telephone number is (250) 964-2692 and our facsimile number is (250) 964-2693..  Our office space is provided to us on a rent-free basis by Ken Bergestad, our Vice President and one of our directors.  Mr. Bergestad does not charge our company for equipment rental or phone usage.

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. Submissions of Matters to a Vote of Security Holders.

None.

PART II

Item 5. Market for Common Equity and Related Stockholder Matters.

Our common shares are traded on the Over-the-Counter Bulletin Board.  Our symbol is "GBIS", and our CUSIP number is 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, 2001 | $1.34 | $0.20
|June 30, 2001      | $1.75 | $0.01



On December 18, 2001, the shareholders' list for our common shares showed 58 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

Nil

Item 6. Plan of Operation.

Plan of Operation

Our primary objective over the 12 months ending September 30, 2002, will be to complete development of Phase I and Phase II of our twin rotating asphalt mixing system (known as the "Trams System") for commercial sale, and to implement a sales and marketing program in connection with the sale of the Trams System.  In addition, if the acquisition of Energy Medicine Developments Corp. is successfully completed, we anticipate that we will proceed with the implementation of a sales and marketing program for the Enermed device and the Enermed Therapy.

As of the date of this annual report, Phase I of the Trams System requires further development and testing before it can be commercially released.  We have not yet commenced development of Phase II of the Trans System due to a lack of capital resources.  In addition to the development and testing work that must be performed on both Phase I and Phase II of the Trams System, a sales and marketing campaign must be implemented.

As noted in our annual report for the year ended September 30, 2000, further development of Phase I and Phase II of the Trams System was suspended to devote attention to the registration of our common shares under Section 12(g) of the Securities Exchange Act of 1934 so that we could obtain a quotation of our securities on the Over-the-Counter Bulletin Board.  Our common shares were registered under Section 12(g) of the Securities Exchange Act of 1934 in October, 2000 and we received confirmation from NASD Regulation, Inc. (OTC Compliance Unit) that our request for an unpriced quotation on the Over-the-Counter Bulletin Board was cleared on April 3, 2001.  Our shares were quoted and began trading on the Over-the-Counter Bulletin Board on April 17, 2001 under the symbol "GBIS".  As at the date of this annual report, because we have recently focussed our attention on the acquisition of Energy Medicine Developments Corp. and the Royalty Agreement with Energy Medicine Developments Inc., we have not returned our focus to the further development of Phase I or Phase II of the Trams System.

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

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

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

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

3.	uncertainty with respect to whether our products can:

a) meet British Columbia regulations;

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

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

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

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

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

Due to our lack of operating history, there exists substantial doubt about our ability to continue as a going concern, as described in our independent auditors' report on, and the notes to, the consolidated financial statements for the year ended September 30, 2001.

Cash Requirements

Over the twelve month period ending September 30, 2002, we anticipate that we will require $550,000 to fund our operations and our goals in connection with further development of the Trams System.  The cash requirements of $550,000 are based on our estimates for operational costs for the period ending September 30, 2002.  With respect to the Trams System, we estimate that approximately $30,000 will be required for further development of Phase I of the Trams System, $150,000 will be required for development of Phase II of the Trams System, $120,000 will be required to hire marketing and sales persons and to implement our planned sales and marketing program and $70,000 will be required to support an investor relations program.  The balance of $180,000 will be required to support general corporate and operating expenses.

We will require a minimum of approximately $1,000,000 over the period ending September 30, 2002 if we complete the acquisition of Energy Medicine Developments Corp. and for the Royalty Agreement with Energy Medicine Developments Inc.  We estimate that approximately $250,000 will be required for management expenses and $750,000 will be required to cover the costs of the ongoing development, clinical testing and clinical trials of new products related to the Enermed technology and for the implementation of a sales and marketing program for the Enermed device and the Enermed Therapy under the Royalty Agreement.

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

Product Research and Development

During the year ended September 30, 2001, we expended $5,345 on research and development on the Trams System.  During the year ended September 30, 2000, we expended $80,334 on research and development of the Trams System.  See Note 7 to our Consolidated Financial Statements for the years ended September 30, 2001 and 2000 for further details.  If sufficient capital is available, we will continue to expend time in the next 12 months on research and development activities on the Trams System, which will include:

(a)	further improvement of Phase I of the Trams System to make it more efficient and to ensure that it meets government standards for pollution control; and

(b)	commencement of the development of Phase II of the Trams System.

We estimate that the completion of Phase I will require approximately $30,000, consisting of $6,000 for testing, $14,000 for materials and $10,000 for labour and subcontractors.  At the completion of Phase I, we intend to sell our prototype and use the sale proceeds to finance the construction of a second prototype of the Trams System.  Phase II of the Trams System will consist of a second trailer which will contain a self-erecting silo and separate storage tanks to carry and store asphalt, diesel fuel and propane fuel.  We estimate that the cost of developing and completing the Phase II plant will be $150,000, $84,000 for testing and materials, $16,000 for general corporate and overhead expenses and $50,000 for labour and subcontractors.

If we complete the acquisition of Energy Medicine Developments Inc. and in connection with the Royalty Agreement with Energy Medicine Developments Inc., we may be required to incur significant monies on Energy Medicine's product and technologies to make them commercially viable in new markets.

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

Purchase of Significant Equipment

We do not intend to purchase any significant equipment over the twelve months ending September 30, 2002.  Any monies raised by our company will first be expended on our plans with respect to the Enermed device and the Enermed Therapy.

Sales and Marketing

We anticipate that the commercial version of the Trams System will consist of a package of the Phase I plant and the Phase II trailer but we also anticipate that these machines will be sold separately.  Upon completion of Phase II, we intend to transport the Trams System plant to a gravel pit, the location of which has already been determined, and to record set up time, conduct anti-pollution equipment testing and record promotional videos.

If we proceed with the Royalty Agreement with Energy Medicine Developments Inc., we may be required to expend significant monies on the implementation of a sales and marketing program for the Enermed Therapy and Enermed device to develop sales and a brand name for the product.

Employees

Over the twelve months ending September 30, 2002, we anticipate an increase in the number of employees we retain to five (5), in the event that we are able to proceed with the development of Phase II of the Trams System.  Following the completion of the acquisition of Energy Medicine Developments Corp., we also expect an increase in the number of employees we retain.  Once the acquisition of Energy Medicine Developments Corp. is completed, we will be relying on the technical expertise of Energy Medicine's current management.  We will retain Energy Medicine's current management team, who will remain with our company for between five and ten years, depending on management agreements yet to be negotiated.  If, however, we are unable to hire suitable sales, marketing and operational personnel, we may not be able to successfully implement a sales and marketing program and establish acceptance of Energy Medicine's technology.  We will likely hire a significant number of additional personnel in the event that we complete the acquisition of 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.

Item 7. Financial Statements.

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

Audited Financial Statements.:

Independent Auditors' Report on fiscal 2001, dated January 2, 2002, of BDO Dunwoody LLP

Independent Auditors' Report on fiscal 2000, dated December 15, 2000, of Hedden Chong, Chartered Accountants.

Consolidated Balance Sheets at September 30, 2001 and 2000.

Consolidated Statements of Operations for the years ended September 30, 2001 and 2000 and for the period from January 15, 1997 (incorporation) to September 30, 2001.

Consolidated Statements of Changes in Capital Deficit for the period from January 15, 1997 (incorporation) to September 30, 2001.

Consolidated Statements of Cash Flows for the years ended September 30, 2001 and 2000 and for the period from January 15, 1997 (incorporation) to September 30, 2001.

Summary of Significant Accounting Policies.

Notes to the Consolidated Financial Statements.



|                                                |                                                       | Global Innovative Systems Inc.                 
|----------------------------------------------- | ----------------------------------------------------- | -----------------------------------------------
|                                                |                                                       | (A Development Stage Company)                  
|                                                |                                                       | Consolidated Financial Statements              
|                                                |                                                       | For the years ended September 30, 2001 and 2000
|                                                |                                                       | (Amounts expressed in US dollars)              
|                                                |                                                       | Contents                                       
|Independent Auditors' Report - BDO Dunwoody LLP
|Independent Auditors' Report - Hedden Chong    
|Consolidated Financial Statements               |                                                      
|                                                | Consolidated Balance Sheets                           |                                                
|                                                | Consolidated Statements of Operations                 |                                                
|                                                | Consolidated Statements of Changes in Capital Deficit
|                                                | Consolidated Statements of Cash Flows                
|                                                | Summary of Significant Accounting Policies           
|                                                | Notes to the Consolidated Financial Statements       

|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, Changes in Capital Deficit and Cash Flows for the year ended September 30, 2001 and for the period from January 15, 1997 (incorporation) to 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 did not audit the consolidated financial statements of Global Innovative Systems Inc. for the period from January 15, 1997 (incorporation) to September 30, 2000.  Such statements are included in the cumulative inception to September 30, 2001 totals on the Statements of Operations and Cash Flows and reflect a net loss of 85% of the related cumulative total.  Those statements were audited by other auditors whose report has been furnished to us and our opinion, insofar as it relates to amounts for the period from January 15, 1997 (incorporation) to September 30, 2000 included in the cumulative totals, is based solely upon the reports of the other auditors.
|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, Changes in Capital Deficit and Cash Flows for the year ended September 30, 2001 and for the period from January 15, 1997 (incorporation) to 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

|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, 2000 and the Consolidated Statements of Operations, Changes in Capital Deficit and Cash Flows for the year ended September 30, 2000 and for the period from January 15, 1997 (incorporation) to September 30, 2000.  These financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these financial statements based on our audits.                                                                                                             
|We conducted our audits in accordance with 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 audits provide 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, 2000 and the related Consolidated Statements of Operations, Changes in Capital Deficit and Cash Flows for the year ended September 30, 2000 and for the period from January 15, 1997 (incorporation) to September 30, 2000 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/ Hedden Chong
Chartered Accountants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Burnaby, Canada
December 15, 2000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

|Global Innovative Systems Inc.(A Development Stage Company)
Consolidated Balance Sheets(Amounts expressed in US dollars)              
|--------------------------------------------------------------------------------------------------------------------------------------
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|September 30                                                                                                                          
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|Current                                                                                                                               
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|Property and equipment (Note 3)                                                                                                       
|License (Note 4)                                                                                                                      
|Total Assets                                                                                                                          
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|Total Liabilities and Capital Deficit                                                                                                 
|The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements.

|Global Innovative Systems Inc.(A Development Stage Company)
Consolidated Statements of Operations(Amounts expressed in US dollars)    
|--------------------------------------------------------------------------------------------------------------------------------------
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|Loss before other items                                                                                                               
|Other Item                                                                                                                            
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|Net loss for the period                                                                                                               
|Loss per share - basic                                                                                                                
|Weighted average common shares outstanding                                                                                            
|The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements.

|Global Innovative Systems Inc.(A Development Stage Company)
Consolidated Statements of Changes in Capital Deficit
(Amounts expressed in US dollars)
|---------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                   
|Initial capitalization of the Company as of January 15, 1997                                                                                       
|Common stock issued at C$1  April 15, 1998                                                                                                         
|                                                                                                                                                   
|Net loss for the period                                                                                                                            
|Foreign currency translation adjustments                                                                                                           
|Total Comprehensive loss                                                                                                                           
|Balance, September 30, 1998                                                                                                                        
|Net loss for the year                                                                                                                              
|Foreign currency translation adjustments                                                                                                           
|Total comprehensive loss                                                                                                                           
|Balance, September 30, 1999                                                                                                                        
|Common stock redeemed on October 31, 1999                                                                                                          
|Adjustment for the issuance of common stock on reverse acquisition                                                                                 
|Adjustment for settlement of debts to former stockholders of Niew Industries
Inc. (Note 2)                                                         
|Adjustment for the stockholders' equity of the Company at the acquisition
date (Note 2)                                                            
|                                                                                                                                                   
|Net loss for the year                                                                                                                              
|Foreign currency translation loss                                                                                                                  
|Total comprehensive loss                                                                                                                           
|Balance, September 30, 2000                                                                                                                        
|Net loss for the period                                                                                                                            
|Foreign currency translation gain                                                                                                                  
|                                                                                                                                                   
|Balance, September 30, 2001                                                                                                                        
|The accompanying summary of significant accounting policies and notes are an integral part of these consolidated  financial statements.            

|Global Innovative Systems Inc.(A Development Stage Company)
Consolidated Statements of Cash Flows
(Amounts expressed in US dollars)   
|--------------------------------------------------------------------------------------------------------------------------------------
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|Cash provided by (used in)                                                                                                            
|Operating activities                                                                                                                  
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|The accompanying summary of significant accounting policies and notes are an integral part of these consolidated financial statements.

|Global Innovative Systems Inc.(A Development Stage Company)
Summary of Significant Accounting Policies
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|September 30, 2001 and 2000                                                                           
|Basis of Consolidation                                                                                
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|Property and Equipment                                                                                
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|Foreign Currency Translation                                                                          
|Research and Development                                                                              
|Use of Estimates                                                                                      

|Global Innovative Systems Inc.(A Development Stage Company)
Summary of Significant Accounting Policies
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|September 30, 2001 and 2000                                                                           
|Income Taxes                                                                                          
|Comprehensive Income                                                                                  
|Impairment of Long-Lived Assets                                                                       
|Fair Value of Financial Instruments                                                                   
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|Loss Per Share                                                                                        

|Global Innovative Systems Inc.(A Development Stage Company)
Summary of Significant Accounting Policies
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|September 30, 2001 and 2000                                                                           
|New Accounting Pronouncements                                                                         
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|Global Innovative Systems Inc.(A Development Stage Company)
Summary of Significant Accounting Policies
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|September 30, 2001 and 2000                                                                           
|New Accounting Pronouncements - Continued                                                             
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|Reclassification                                                                                      

|Global Innovative Systems Inc.(A Development Stage Company)
Notes to the Consolidated Financial Statements
(Amounts expressed in US dollars)
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|September 30, 2001 and 2000                                                                                                                 
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|Global Innovative Systems Inc.(A Development Stage Company)
Notes to the Consolidated Financial Statements
(Amounts expressed in US dollars)
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|September 30, 2001 and 2000                                                                                                                 
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|Global Innovative Systems Inc.(A Development Stage Company)
Notes to the Consolidated Financial Statements
(Amounts expressed in US dollars)
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|September 30, 2001 and 2000                                                                                                                 
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|Global Innovative Systems Inc.(A Development Stage Company)
Notes to the Consolidated Financial Statements
(Amounts expressed in US dollars)
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|September 30, 2001 and 2000                                                                                                                 
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|Global Innovative Systems Inc.(A Development Stage Company)
Notes to the Consolidated Financial Statements
(Amounts expressed in US dollars)
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|September 30, 2001 and 2000                                                                                                                 
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Item 8. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure.

On October 19, 2001, Hedden Chong resigned from its position as our independent auditors, and on that same day, BDO Dunwoody LLP was appointed as our new independent accountant.  The change of accountant was reported on a Current Report on Form 8-K filed with the Securities and Exchange Commission on October 23, 2001, and amended October 30, 2001 and January 3, 2002.

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
the Company         | Date Position First Held
|------------------ | --- | --------------------------------- | ------------------------
|Helge Freudentheil | 52  | President                         | January 31, 2000        
|Ken Bergestad      | 49  | Vice President and Director       | January 31, 2000        
|Walter R. Niemi    | 57  | Secretary, Treasurer and Director | January 31, 2000        
|Robert W. Stark    | 51  | Vice President                    | January 31, 2000        
|Fraser Lawrie      | 49  | Director                          | October 4, 2001         
|Robert Fletcher    | 53  | Director                          | October 4, 2001         
|Lloyd Olson        | 40  | Treasurer (Niew Industries Inc.)  | January 15, 1997        

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.

Helge Freudentheil, President

Mr. Freudentheil has been our President since January 31, 2000.  For 10 years prior to joining our company, and continuing to the present, Mr. Freudentheil has been the Owner-Manager of P.G. Machine Works, a general machinery, welding, fabricating and manufacturing business in Prince George, British Columbia.  While at P.G. Machine Works, Mr. Freudentheil built specialty parts for Rolls Royce turbines, Nuvo Pinione pumps for Westcoast Energy, Inc. and built custom parts for BC Hydro transformer equipment.  Mr. Freudentheil spends approximately 90% of his efforts working with P.G. Machine Works and the remaining 10% working with our company.  He has served as the Lecturer in Charge for Harare Polytechnic in Harare, Zimbabwe, lecturing in applied workshop technology, production of machine tools and processes.  He received a Zimbabwe National Diploma in Mechanical Engineering. Mr. Freudentheil holds a Provincial Trade Certificate as a Machinist, and an Inter-Provincial Trade Certificate as a Machinist.

Ken Bergestad, Vice-President and Director

Mr. Bergestad is one of our directors and has been our Vice President since January 31, 2000.  From 1997 to present, Mr. Bergestad has been the Secretary of Niew Industries Inc., our wholly owned subsidiary.  Mr. Bergestad was instrumental in raising the start-up capital for Niew Industries and took on the job as bookkeeper as well as day-to-day administrative duties of the company.  Mr. Bergestad has also been involved in the paving industry for over twenty years.  He worked as a grade foreman for Pittman Asphalt between 1994 and 1997.  Mr. Bergestad has been a member of the Operating Engineers Union since 1979, and is a classified grade foreman, and equipment operator.  Mr. Bergestad attained a Bachelor of Arts degree in Psychology from the University of Victoria.

Walter R. Niemi, Secretary, Treasurer and Director

Mr. Niemi is one of our directors and has been our Secretary and Treasurer since January 31, 2000.  Mr. Niemi is also the President of Niew Industries since January, 1997.  Mr. Niemi has extensive experience in the paving industry.  For the five years prior to joining Niew Industries, Mr. Niemi worked as a mechanic and plant operator for Quesnel Paving.  He joined the Operating Engineers Union in 1970 and is classified as a heavy duty mechanic, welder, and asphalt plant operator.  At Quesnel Paving, Mr. Niemi's duties consisted of operating, maintaining, repairing, moving and overseeing the operation of asphalt equipment.  Mr. Niemi began designing a different method of mixing asphalt in the mid 1980's. The drawings of the double tapered mixing drum system were completed by the beginning of 1997.

Robert W. Stark, Vice President

Mr. Stark has been a Vice-President since January 31, 2000.  Since 1988, Mr. Stark has been self-employed with Krats Drilling.  He spends approximately 90% of his time working with Krats Drilling and the remaining 10% working with our company.  Mr. Stark has been employed for over thirty years as a driller, blaster and driver in British Columbia and the Yukon.  Mr. Stark has extensive experience and certification in areas including, but not limited to, BC Ministry of Energy Mines and Petroleum Services blasting certification, Mine Rescue Certification, Transportation of Dangerous Goods Certification, and WCB Occupational First-Aid Level 1.

Fraser Lawrie, Director

Mr. Lawrie has been a director of our company since October 4, 2001.  Since 1994, Mr. Lawrie 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.  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.

Lloyd Olson (Treasurer Niew Industries, Inc.)

Mr. Olson has worked with Niew Industries since 1997 and has held the position of Treasurer since its inception.  Mr. Olson was an electrical apprentice for Service Electric, Quesnel, BC between 1986 and 1990.  His apprenticeship was served mainly in an industrial environment (sawmills and pulpmills).  During this period, he developed a programmable logic controller program for the logging industry to automatically measure and cut logs to length in the bush.  From 1991 to 1998, he worked as a serviceman for Service Electric in Quesnel.  His duties ranged from residential to commercial work as well as Industrial instrumentation and programmable logic controller programming.  During this period, he developed a program to monitor and run the city of Quesnel's water system via computer over the telephone line.

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, 2001, 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, 2001, 2000 and 1999.  For the year ended September 30, 2001, we did not pay any salaries or bonuses to any of our executive officers and for the year ended September 30, 2000 we paid the following compensation to our executive officers:





|Name and Principal Position               | Salary Paid                       
|----------------------------------------- | ----------------------------------
|Lloyd Olson, Treasurer of Niew Industries | CDN$30,000 (approximately $20,000)
|Ken Bergestad, Vice President             | CDN$30,000 (approximately $20,000)
|Walter Niemi, Secretary and Treasurer     | CDN$60,000 (approximately $40,000)

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

We do not have management agreements or employment contracts with any of our directors or executive officers.  However, upon completion of the acquisition of Energy Medicine Developments Corp. we will be entering into consulting agreements with the management of Energy Medicine Developments Corp.

Stock Options/SAR Grants

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

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 and 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.  Effective January 1, 2000, we have agreed to pay our directors an annual fee of $6,000 (or $500 per month) for services rendered as directors.

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

The following table sets forth, as at December 31, 2001, 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 Beneficial Owner                                                                   | Amount and Nature of
Beneficial Ownership(1) | Percentage
of Class(1)
|------------------------------------------------------------------------------------------------------ | -------------------------------------------- | ----------------------
|Lloyd Olson(2)
RR 8, Box 13 Bjornson Site
Quesnel, BC Canada  V2J 5E6                                  | 2,400,000                                    | 6.5%                  
|Walter Niemi
(Secretary, Treasurer and director)
105 - 2379 Red Bluff Road
Quesnel, BC Canada  V2J 6B9 | 7,200,000                                    | 19.5%                 
|Ken Bergestad
(Vice President and director)
5975 Selkirk Crescent
Prince George, BC Canada  V2N 2G9    | 2,400,000                                    | 6.5%                  
|Robert W. Stark
(Vice President)
2332 Northwood Pulp Road
Prince George, BC Canada  V2A 1K2            | Nil                                          | Nil                   
|Helge Freudentheil
(President and CEO)
23425 Fyfe Road
Prince George, BC Canada  V2N 6H7               | Nil                                          | Nil                   
|Fraser Lawrie
(director)
#104 - 630 Columbia Street
New Westminster, BC Canada V3M 1A5                 | 6,371,247                                    | 17.3%                 
|Robert Fletcher
(director)
#104 - 630 Columbia Street
New Westminster, BC Canada V3M 1A5               | 6,371,247                                    | 17.3%                 
|Cede & Co.
P.O. Box 20
Bowling Green Stn.
New York, NY 10274                                           | 4,526,200                                    | 12.3%                 
|Martha Lappin
10841 Split Oak Lane
Burke, VA 22015                                                     | 2,462,155                                    | 6.7%                  
|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 December 31, 2001.  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.

(2)	Mr. Olson is an employee of our company, but not an officer or a director of our company, nor is he related to any person in management.  Mr. Olson is the Treasurer of Niew Industries Inc., our wholly-owned subsidiary.

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.

Item 12. Certain Relationships and Related Transactions.

Except as otherwise indicated below, we have not been a party to any transaction, proposed transaction, or series of transactions in which the amount involved exceeds $60,000, and in which, to its knowledge, any of its directors, officers, five percent beneficial security holder, or any member of the immediate family of the foregoing persons has had or will have a direct or indirect material interest.

Three directors and officers of our company, Ken Bergestad, Walter Niemi and Lloyd Olson, have advanced as a loan to our company an aggregate of $48,904 for the year ended September 30, 2001 and $199,402 (before repayment) for the year ended September 30, 2000.  Total advances from these individuals outstanding as at September 30, 2001 was $219,821.  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, 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., is the sole director and the Secretary of Energy Medicine Developments Corp.

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, Financial Statement Schedules, and Reports on Form 8-K.

Reports of Form 8-K

On October 23, 2001 (as amended on October 30, 2001 and January 3, 2002), we filed a Form 8-K Current Report, advising of a change in auditor from Heddon Chong to BDO Dunwoody LLP

Financial Statements

Audited Financial Statements by:

Independent Auditors' Report on fiscal 2001, dated January 2, 2002, of BDO Dunwoody LLP

Independent Auditors' Report on fiscal 2000, dated December 15, 2000, of Hedden Chong, Chartered Accountants.

Consolidated Balance Sheets at September 30, 2001 and 2000.

Consolidated Statements of Operations for the years ended September 30, 2001 and 2000 and for the period from January 15, 1997 (incorporation) to September 30, 2001.

Consolidated Statements of Changes in Capital Deficit for the period from January 15, 1997 (incorporation) to September 30, 2001.

Consolidated Statements of Cash Flows for the years ended September 30, 2001 and 2000 and for the period from January 15, 1997 (incorporation) to September 30, 2001.

Summary of Significant Accounting Policies.

Notes to the Consolidated Financial Statements.

Exhibits

Exhibit Number and Exhibit Title

(3)	Articles of Incorporation and Bylaws

**The following exhibits are incorporated by reference from our Form 10-SB Registration Statement, originally filed on April 11, 2000

3.1 Charter

3.2 Articles of Incorporation

3.3 Bylaws

(10) Material Contracts

10.1	Amending Agreement between Ian Westwood and Global Innovative Systems Inc., dated November 22, 2000 (incorporated by reference from our Form 10-KSB Annual Report filed on January 16, 2001)

10.2	Acquisition Agreement between Global Innovative Systems Inc. and Energy Medicine Developments Corp., dated October 2, 2001

10.3	Royalty Agreement between Global Innovative Systems Inc. and Energy Medicine Developments Inc., dated October 4, 2001

10.4	License Termination Agreement between Ian Westwood and Niew Industries Inc., dated September 1, 2001

(21)	Subsidiary

Niew Industries Inc. (100% wholly owned subsidiary)



SIGNATURES

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

GLOBAL INNOVATIVE SYSTEMS INC.

By:  /s/ Helge Freudentheil
Helge Freudentheil, President and CEO
Date: January 15, 2002

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

By:  /s/ Helge Freudentheil
Helge Freudentheil, President and CEO
Date: January 15, 2002

By:  /s/ Ken Bergestad
Ken Bergestad, Vice President and Director
Date: January 15, 2002

By: /s/ Walter Niemi
Walter Niemi, Secretary, Treasurer and Director
Date: January 15, 2002

By:  /s/ Fraser Lawrie
Fraser Lawrie, Director
Date: January 15, 2002

By: /s/ Robert Fletcher
Robert Fletcher, Director
Date: January 15, 2002