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

                                   FORM 10-KSB

(Mark  One)

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

     For  the  fiscal  year  ended  September  30,  2000
                                    --------------------

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

     For  the  transition  period  from          to

     Commission  file  number  000-30299
                               ---------

                         GLOBAL INNOVATIVE SYSTEMS, INC.
                         -------------------------------
                 (Name of small business issuer in its charter)

      NEVADA                                  98-0217653
      ------                                  ----------
  (State or other jurisdiction of           (I.R.S. Employer
   incorporation or organization)            Identification No.)

                             5975 SELKIRK CRESCENT,
                  PRINCE GEORGE, B.C.  CANADA          V2N 2G9
                  ---------------------------          -------
          (Address of principal executive offices)    (Zip Code)

Issuer's  telephone  number  (250)  964-2692
                              ---   --------

Securities  registered  under  Section  12(b)  of  the  Exchange  Act:

     Title of each class          Name of each exchange on which registered

                 NONE
                 ----

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

                         COMMON STOCK, PAR VALUE $0.001
                         ------------------------------
                                (Title of class)


                                (Title of class)

<PAGE>

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

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

     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 price of such common equity, as of
a  specified date within the past 60 days.  (See definition of affiliate in Rule
12b-2  of  the  Exchange  Act.)

Not  Applicable
---------------

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

     Check whether the issuer 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  equity,  as  of  the  latest  practicable  date.

21,700,000  common  shares, par value $0.001 outstanding as of December 31, 2000
--------------------------------------------------------------------------------

                       DOCUMENTS INCORPORATED BY REFERENCE

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

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


<PAGE>

                         GLOBAL INNOVATIVE SYSTEMS, INC.
                          ANNUAL REPORT ON FORM 10-KSB

                                TABLE OF CONTENTS

                                                                         PAGE
                                                                         ----

PART  I                                                                    1
Item  1.     Description  of  Business.                                    1
Item  2.     Description  of  Property.                                   13
Item  3.     Legal  Proceedings.                                          14
Item  4.     Submissions  of  Matters  to  a  Vote  of Security Holders.  14

PART  II                                                                  14
Item  5.     Market  for  Common Equity and Related Stockholder Matters.  14
Item  6.     Management's Discussions and Analysis or Plan of Operation.  15
Item  7.     Financial  Statements.                                       17
Item  8.     Changes  In  and  Disagreements  With Accountants on
             Accounting and Financial  Disclosure.                        34

PART  III                                                                 34
Item  9.     Directors,  Executive  Officers,  Promoters  and
             Control  Persons; Compliance  With  Section  16(a)
             of  the  Exchange  Act.                                      34
Item  10.    Executive  Compensation.                                     36
Item  11.    Security  Ownership  of Certain Beneficial Owners
             and Management.                                              37
Item  12.     Certain  Relationships  and  Related  Transactions.         38
Item  13.     Exhibits  and  Reports  on  Form  8-K.                      39
SIGNATURES                                                                40


<PAGE>
                                     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.

     While  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.

General

     Global  Innovative  Systems  Inc.  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.".  Other  than  the acquisition described herein, we do not have any plans,
proposals,  arrangements  or understandings with respect to future acquisitions.

     Our  financial statements are stated in United States Dollars (US$) and are
prepared  in  accordance  with  United  States  Generally  Accepted  Accounting
Principles.  In  this  Annual  Report,  unless  otherwise  specified, all dollar
amounts  are  expressed  in  United  States  Dollars.  Herein, all references to
"CDN$"  refer to Canadian Dollars and all references to "common shares" refer to
common  shares  in  our  capital  stock.

Business  Development  of  the  Company  of  the  Past  Three  Years

     We  had been inactive since our incorporation until we entered into a share
exchange  agreement dated December 1, 1999 (the "Share Exchange Agreement") with
Niew Industries Inc. ("Niew Industries"), pursuant to which we agreed to acquire
100%  of  the  issued  and  outstanding  shares  from  the  stockholders of Niew
Industries along with amounts owing to these stockholders totalling $420,864, in
exchange  for issuing 12 million of our common shares to the former shareholders
of Niew Industries.  The intent of acquiring the stockholder loans was to settle
the  indebtedness  and  reduce  total  liabilities subsequent to the acquisition
date.  The  transaction  to  acquire Niew Industries closed on January 31, 2000.
Settlement  of  the  loans  to  former  stockholders  of  Niew  Industries  was
conditional  upon closing of the transactions contemplated in the Share Exchange
Agreement.  The  share  exchange resulted in Niew Industries becoming our wholly
owned  subsidiary.  Prior to the share exchange, we did not generate any revenue
but  did  incur  administrative  expenses.

     The  share  exchange with the stockholders of Niew Industries was accounted
for  as a reverse acquisition, since at the completion of the share exchange the
former  stockholders  of  Niew  Industries  controlled  approximately 55% of our
company.  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 since
the  date  of  acquisition.

     Niew  Industries  was  incorporated  on  January 15, 1997 under the British
Columbia  Company  Act.  Niew Industries 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  activity.

<PAGE>

Our  Current  Business

     We  conduct  our  operations through our recently acquired subsidiary, Niew
Industries,  in  British  Columbia,  Canada.  Our  business  objective  is  to
successfully  develop  a  simplified  asphalt  mixing  system  that  is compact,
environmentally  friendly  and easy to move from and to various locations.  Niew
Industries has taken a step towards this goal with the design and development of
the  twin  rotating  asphalt  mixing  system  (the  "Trams  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 setup 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.  Setup 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  setup.
Asphalt  Plant  Control  System  Software

     Asphalt  mixing  plants  are  always 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

<PAGE>

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

     Niew  Industries  has also 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 is not the self-erecting silo that we intend to use in Phase
II  of  the  Trams  System.  The  Silovation  is  designed  to  sit alone on one
tractor-trailer  unit.  The  Trams  System uses a single tractor trailer unit to
contain  a  silo  along  with  a liquid asphalt storage tank, propane tank and a
diesel  tank.  Thus  the  Trams  System  requires  less equipment in the form of
tractor-trailers  than  does  the  Silovation.  However  some  contractors  will
already  have  some of their own equipment, including the tanks mentioned above,
making  the  Silovation  an  efficient  choice.

     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

<PAGE>

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.  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.

     We also 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.

     The  portable  overhead  bin  used  on the Silovation will be sold with the
Trams  System  if  a  customer does not require an asphalt tank.  We believe the
portable  overhead  bin  to  be  a  valuable  product, but to date only one such
product  has  been  sold  - the prototype to Everall Construction.  The portable
overhead  bin  is  adaptable  for use outside of the asphalt industry as a water
storage  container,  to  load  chipped  waste  wood or any other bulk commodity.

     We intend to manufacture the Silovation for commercial sale and accordingly
we  acquired  the  licence  to  the  rights of the Silovation from Mr. Westwood.
However,  we  will  not commence manufacturing of this product until we complete
development  of  Phase  I  and  Phase  II  of  the  Trams  System.

Competitive  Advantages

     In  the  opinion  of management, the objective benefits of the Trams System
includes:  mobility, which lowers costs; productivity; improved product quality;
decreased  environmental  impact;  and  reduced  costs  for  the  customer.

     In large urban areas asphalt plants are located on gravel sources that have
been  appropriately  zoned  for such use, as well as situated on sites where the
aggregate general materials are transported to the site (e.g. barged, trucked or
railed).  These  plants are semi-permanent operations.  For non-urban areas such
as  highways,  airports, mine-sites, small communities and sawmills, portable or
mobile  asphalt  plants can be economically more viable or cost competitive than
stationary  asphalt  plants.

     In  a  conventional  stationary  asphalt plant, the asphalt is mixed in the
asphalt plant which is normally located at a gravel source, but the Trams System
allows  the  asphalt to be mixed onsite if the gravel has been stockpiled by the
project where the finished product is required, assuming that the proper permits
are  obtained  in  advance.

     Because  the  Trams  System  asphalt  plant  is closer to the work-site, we
anticipate  that  the cost of transporting the finished product, the asphalt hot
mix,  to  the  site  where it will be used will be considerably less that if the
asphalt  hot  mix  was transported from a conventional stationary asphalt plant.
We estimate that transportation costs are normally 25-30% of the operating costs
to  manufacture  and  lay  asphalt.  We  anticipate  that  any  savings  on such
transportation  costs  will  be  a  competitive  advantage  in  the  market.

     We  believe that the asphalt industry will find the Trams System attractive
due  to  the  compactness  and  perceived  neatness  of a totally self-contained
asphalt  plant  that can be easily transported with two trucks.  We also believe
that  there  will  be  a  demand for the Trams System because of its operational
performance  in  categories  such  as environmental compliance, quality control,
integration  of electrical and computer programming, increased user friendliness
and  cost  effectiveness.

<PAGE>

Future  Research  and  Development

     Although  we  have  completed  development  of  the  Trams  System  Phase I
prototype,  we identified several areas where improved performance was possible.
These areas included improvements to the asphalt-oil injection system, pollution
control  system,  ramps,  and  the  conveyor  system.  We  have  implemented and
successfully  tested  a  majority  of  these  changes.  One of the last required
improvements  is  the  addition  of  a conventional bag-house system in order to
comply  with  the 2001 British Columbia air pollution regulations imposed by the
British  Columbia  Ministry  of  Environment.  See  "Governmental  Approval  and
Regulation"  below.

     We have plans for the development of a Phase II Trams System.  The Phase II
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.  Once 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.

     After  we complete design, development and testing of our Phase I and Phase
II  Trams  System  prototypes,  we  will  be  required  to:

-     identify  target  markets  and  potential  customers;

-     develop  a  marketing  plan;

-     test  the  Trams System in specific applications with potential customers;

-     commence  commercial  production  of  the  Trams System for sale or lease.

The  Asphalt  Industry  and  Marketing  of  the  Trams  System

     We  estimate  that  there are about eight major asphalt plant manufacturers
situated  in  the  central  and  eastern  United  States.  Together  they  sell
approximately  150  asphalt  plants  per  year  across  North  America.

     We project revenue to be derived from sales of the Trams System, but we are
also  considering  the  possibility  of  leasing  the  Trams System to potential
customers.  We  intend  to market the Trams System to manufacturers and users of
asphalt  plants.

Intellectual  Property

     We  have  filed a patent application for the Trams System in Canada and the
U.S.  under the title "Multiple Drum Mixing System".  On November 27, 1999, Niew
Industries  obtained  from  Walter Niemi, a director of our company, a worldwide
assignment  of  all  patent rights and intellectual property rights to the Trams
System.  We paid consideration of $1.00 for this assignment.  Thus, if we obtain
a  patent,  it  will  be the property of Niew Industries.  On April 19, 1999, we
obtained from Lloyd Olson, an employee of our company, the rights to a copyright
registration in Canada for the Trams System operating software entitled "Asphalt
Plant  Control  System".   We  paid  consideration of $1.00 for this assignment.
This  software  program is not protected by any patents nor do we intend to seek
any  such  patent  protection.  We treat our software program and its associated
technology  as  proprietary  and  all  copyrights  in  such  software  program.
Intellectual  Property  Protection

     We  are  not  aware that our products, or other proprietary rights infringe
the proprietary rights of any third parties.  However, from time to time, we may
receive  notices  from  third  parties  asserting  that  we have infringed their
patents  or  other  intellectual  property  rights. In addition, we may initiate
claims  or  litigation against third parties for infringement of our proprietary

<PAGE>

rights  or to establish the validity of our proprietary rights.  Any such claims
could  be time-consuming, result in costly litigation, cause product development
delays  or  lead  us  to  enter into royalty or licensing agreements rather than
disputing  the  merits  of such claims.  Any such claims, with or without merit,
can be time consuming and expensive to defend.  An adverse outcome in litigation
or  similar  proceedings  could  subject  us to significant liabilities to third
parties,  require expenditure of significant resources to develop non-infringing
technology, require disputed rights to be licensed from others, or require us to
cease  the  marketing  or  use of certain information, any of which could have a
material  adverse  effect  on  our  business,  operating  results  and financial
condition.

Research  and  Development  Expenditures  and  Testing  Activities

     To  date, we have employed a third party evaluator, Source Test Limited, to
test  the Trams System's pollution emissions.  A separate third party evaluator,
Levelton  Engineering Ltd., tested the Trams System aggregate, oil usage and hot
mix  asphalt  cement.

     When  testing,  the mixing system of the Phase I Trams System was set up in
Columbia Bitulithic Ltd.'s Aldergrove, British Columbia pit and used our asphalt
mix.  Columbia  Bitulithic  is  a  British  Columbia  paving  company.  Columbia
Bitulithic  used  the  material  produced  by  the  Trams System to build an all
weather  road in their operations centre in Abbottsford, British Columbia.  They
were  not  active  in  the  research  and  development  of  the  Trams  System.

     Research  and  development  expenditures  are  charged  to  expenses  when
incurred.  Research  and  development costs consist of the cost of materials and
services  consumed, salaries and wages of personnel directly engaged in research
and  development and the costs of patent applications.  The cost of the research
and  development  is  reduced  by  investment  tax credits accrued in respect to
qualifying costs of research and development.  The investment tax credit program
is  available  to qualifying companies as an incentive from the Canadian federal
government  to  carry  on  research and development activities.  Since the Share
Exchange  Agreement resulted in Niew Industries being owned by non-Canadians, it
is  expected  that  Niew  Industries  will no longer qualify for this government
incentive  program.  Research  and  development costs incurred from inception to
September  30,  2000  consist  of  the  following:

<TABLE>
<CAPTION>


                               JAN.  15,  1997
                               (INCORPORATION)
                               TO SEPT. 30, 2000  YEAR ENDED        YEAR ENDED        YEAR ENDED
                                (CUMULATIVE)    SEPT. 30, 2000    SEPT. 30, 1999    SEPT. 30, 1998
                                -------------  ---------------  ----------------  ----------------

<S>                             <C>            <C>              <C>               <C>
                                $    272,954   $         4,244  $        44,627   $       224,083
Materials and supplies . . . .       201,947            66,593           85,782            49,572
Salaries and benefits. . . . .        23,670             9,497            9,443             4,730
Patent applications. . . . . .       (95,486)              Nil          (51,250)          (44,236)
                                -------------  ---------------  ----------------  ----------------
Investment tax credit recovery  $    403,085   $        80,334  $        88,602   $       234,149
------------------------------  =============  ===============  ================  ================
</TABLE>


     Certain  specific scientific or technological objectives were identified at
the  outset  of  research  and  development  activities  in  1999.  We sought to
establish  that  we  could  develop  an  asphalt  manufacturing  plant that: (1)
provides an integrated system that was able to improve dramatically on pollution
control  which  is  virtually  non-existent  in  conventional  systems  without
bag-houses  or  settling  ponds;  (2)  improves  the  durability of the finished
product  by the introduction of a different production process; and (3) improves
in the recovery of fine aggregate in the production process with the result that
the  finished  product  has  a  higher  grade  and  a  longer  life.

Governmental  Approval  and  Regulation

     The  Province  of  British  Columbia's  Ministry  of  Environment  and  its
legislation,  the  Waste  Management Act, specify in strict detail the amount of
emissions permitted from new asphalt plant operations.  The three most important
parameters deal with airborne particulates, organics and carbon monoxide.  These
are  outlined in the Waste Management Act and all asphalt operators are expected
to  submit  stack  emission  tests  to  the Ministry of Environment on an annual
basis.

<PAGE>

     Our Trams System prototype asphalt plant was meant to meet and exceed these
strict  requirements.  The  new  concept and drum technology developed by us was
tested during operational trials in the spring of 1999.  The test results, which
are included below, were obtained without the use of either of the two pollution
control  methods,  the bag-house or the wet scrubber, that are currently used by
the  asphalt  industry:

<TABLE>
<CAPTION>

PARAMETERS       REGULATORY SPECIFICATIONS   TEST RESULT
---------------  -------------------------  -------------
<S>              <C>                        <C>
Particulates. .                  90mg / m3  105.41mg / m3
Organics. . . .                  60mg / m3      24mg / m3
Carbon Monoxide                 200mg / m3     196mg / m3
---------------  -------------------------  -------------
</TABLE>

     The regulations under the Waste Management Act specify that all new asphalt
plants  must  meet  the above specifications immediately while older or existing
plants  must  be  up-graded  to  comply  by  the  year  2001.

     Most asphalt plants only have two means to deal with pollution control; the
wet  scrubber  system  or  a bag-house.  The first system uses recycled water to
reduce dust to water born particulate (mud) and requires at least two settlement
ponds,  one  for  the  mud and one for the recycled water.  The second system or
bag-house  is  a  sophisticated  vacuum  that sucks particulate or dust from the
exhaust  gases  and traps them in cotton bags.  These collected particulates are
eventually  added  back  into  the  mixing  process  to  be  recycled.

     The  bag-house  system will be used on all future Trams Systems, as the wet
scrubber application is becoming out dated and obsolete.  We anticipate that the
use  of  a  bag-house  will  result  in  compliance  with  particulate  emission
requirements  under  all  existing  emission standards.  However, testing of the
Trams  System  with  a  bag-house has not yet been undertaken.  To fit the Trams
System,  the  bag-house's  outer physical structure has been modified to fit the
Trams  System's  frame.  We  have  not  yet  ordered  the  material necessary to
complete  the  inner structure of the bag-house.  The bag-house designed for the
Trams  System  will  be  compatible  to  existing  bag-house units, but smaller.
Smaller  versions  are available from several sources and we do not believe that
obtaining  compatible  bag-houses  will  be problematic.  Further, the bag-house
required  for  the  Trams  System  is  actually less expensive than that used on
larger  units  and  the  cost  of  the Trams System compatible bag-houses is not
excessive.

     The  Trams  System  prototype  results,  described above, were satisfactory
considering  that  the  Trams  System  prototype  passed  all  of  the emissions
standards,  other  than the particulate standard, without the use or application
of  any  form  of  conventional  pollution  control  device.

     The  Trams  System  failed  the regulatory specification for new plants for
particulates  but  we  believe  the  Trams  System would pass in other provinces
because  some  of  these provinces have lower standards.  We believe that with a
bag-house,  which  is  proven technology, the Trams System will meet and surpass
the  Ministry of Environment's stringent specifications.  Without the bag-house,
we were uncertain as to whether the plant would comply with standards.  The test
results were close enough to standards to suggest that alterations including the
bag-house  would help ensure that the applicable standards would be met.  Carbon
monoxide  levels can be reduced without impacting the Trams System's performance
appreciably  by  adjusting  the  burner.

     We  believe  that the Trams System, with its double tapered drums will meet
the  stricter  British  Columbia specifications when the bag-house is completed.
The  results  from  the pollution tests shows how close the Trams System came to
passing  without  either  proven  pollution  system  in place.  Though the Trams
System  failed  its  test for particulates in British Columbia, British Columbia
has  the  most  stringent  emissions  requirements  in  Canada.  In  the  U.S.,
California  and  New  Jersey  are  more stringent than the other states.  In New
Jersey  one  must  use  a  bag-house.  If  the  Trams  System  did  not meet the
applicable  North American provincial and state specifications, our market would
be  narrowed,  but  not  significantly considering the Asian, and South American
markets  which  will  remain  accessible.

<PAGE>

     In  the event of emission level violations, regulators would not levy fines
against us but rather against the contractor who owns or is operating the plant.
We  would  have  to  make  full  disclosure  to  the buyer of the Trams System's
pollution  testing  results  as  each  province  and  state  has  different
specifications.

     According  to  a report done by the Canadian Ministry of Environment, Lands
and  Parks'  Air  Resources Branch from November 22, 1995, entitled "A Technical
Report  for  the  Development  of  Regulations  for Asphalt Paving and Recycling
Plants"  there  are  currently  over  60  asphalt plants in operation in British
Columbia.  The  same  report  shows  that  the other provinces do not have waste
management  acts  similar  to  that  found  in  British  Columbia. Thus, British
Columbia  is  more  stringent  than the other provinces.  The Trams System would
meet  the requirements in the other provinces.  Existing acts in other provinces
are  not  currently  being  upgraded.

     We  are  of  the  view  that,  after  completing a retrofit that includes a
mini-bag-house installation, the Trams System will meet the requirements set out
in  the  Waste  Management  Act  and  can  meet all other current North American
anti-pollution  requirements.

Employees

     As  of  December  31, 2000, we had one full-time employee at our offices in
Prince  George,  British  Columbia,  Canada,  and two full-time employees in our
premises  in  Quesnel,  British  Columbia.

RISK  FACTORS

     An  investment  in  our common shares involves a number of very significant
risks.  You  should  carefully consider the following risks and uncertainties in
addition  to  other  information  in this Annual Report in evaluating us and our
business  before  purchasing  shares  of  common stock.  Our business, operating
result  and  financial  condition  could  be  seriously harmed due to any of the
following  risks.  The  trading  price  of  the shares of our common stock could
decline  due  to  any  of  these  risks,  and you could lose all or part of your
investment.

GLOBAL  IS  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 primarily involved in the
development,  manufacture  and  marketing  of a simplified asphalt mixing system
that  is  intended to be compact, environmentally friendly and easy to mobilize.
We  call our product the Trams System.  As a relatively new company, we have not
started selling our product, and as a result, 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:

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

-     successfully  develop  our  second  prototype  of  the  Trams  System;

-     successfully  develop  market acceptance and a customer base for our Trams
System;  and

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

     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.

<PAGE>

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 $646,341
for  the  period  from  January  15, 1997 (incorporation) to September 30, 2000.
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
our  Trams  System  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 such 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,  2000 financial statements.  To the extent that such expenses are not timely
followed  by  revenues, 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, 2000 of $646,341.  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 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  $550,000  over  the  period ending September 30, 2001 in order to
accomplish  our  goals of designing, developing, manufacturing and marketing the
Trams System.  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 incur unexpected costs in completing the development of our Tram System
or  encounter  any  unexpected  technical  or  other  difficulties;

-     we incur delays and additional expenses as a result of technology failure;

-     we  are  unable  to  create  a substantial market for our Trams System; or

-     we  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.  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  us.  The  issuance  of  additional equity securities by us would
result  in  a  significant  dilution  in  the  equity  interests  of our current
stockholders.  Obtaining  commercial  loans,  assuming  those  loans  would  be
available,  will  increase  our  liabilities and future cash commitments.  If we
were  unable  to obtain financing in the amounts and on terms deemed acceptable,
our  business  and  future  success  may  be  adversely  affected.

<PAGE>

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, 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  material  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.

     If our common shares become publicly traded, 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 TRAMS SYSTEM, 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.  We expect that the Trams
System  and  any similar products we develop will account for a majority, if not
all,  of our revenue for the foreseeable future.  Market acceptance of the Trams
System is, therefore, critical to our future success and our ability to generate
revenues.  Failure to achieve market acceptance of the Trams System, 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  successful  introduction  and market acceptance of the Trams System, 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 Trams
System  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  BUSINESS.

     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
Walter Niemi and Lloyd Olson and our ability to continue to hire and retain such
personnel.  The  loss  of  either  Walter Niemi or Lloyd Olson or any of our key
officers  could  have  a  material  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  Walter  Niemi  and  Lloyd  Olson.

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

<PAGE>

(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 majority (i.e. 51%) of our outstanding voting stock
represent  the  ultimate control over our affairs.  Three stockholders currently
control  approximately  55% 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 who will purchase or lease Trams Systems from
us.  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 its business and financial
condition  and  results  of  operations.

<PAGE>

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:

-     our  ability  to  attract  and  retain  customers  and  maintain  customer
satisfaction;

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

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

-     an  increase  in consumer acceptance of the Trams System, or other systems
and  products  offered  by  us;

-     our  ability  to  upgrade  and  develop  our Trams Systems and attract new
personnel  in  a  timely  and  effective  manner;

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

-     governmental  regulation;

-     general  economic  conditions;  and

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

BECAUSE  OF  THE  TYPE  OF  INDUSTRY WE ARE INVOLVED IN, WE EXPECT TO EXPERIENCE
SEASONALITY  IN  OUR  BUSINESS

     We expect that we will experience seasonality in our business, reflecting a
combination  of  seasonal  fluctuations  in  construction  and  paving projects'
seasonality patterns.  Due to the foregoing factors, one or more future quarters
our operating results may fall below the expectations of securities analysts and
investors.  In  such event, our financial performance would likely be materially
adversely  affected.

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,  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 the Trams
System  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.  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, or
other  products  and  services  offered  by  us.

OUR  FUTURE  REVENUES  ARE  DEPENDENT  ON  THE  ACCEPTANCE  OF  THE TRAMS SYSTEM

     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.  There  can  be no assurance that acceptance and use of the Trams System
will  develop  or that a sufficiently broad base of consumers will use the Trams
System.

<PAGE>

     We  will  rely  on  manufacturers  and  users  of  asphalt  plants who have
historically  used  traditional  means  for asphalt manufacturing.  For us to be
successful,  these  manufacturers  and  users  of asphalt plants must accept and
utilize  our  novel  Trams  System.  In  addition,  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.

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  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,
although  we  have  no  present  understandings,  commitments or agreements with
respect  to any material acquisitions or investments.  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
material  adverse  effect  on  our  business, prospects, financial condition and
results  of  operations.

IF OUR COMMON SHARES ARE TRADED ON A PUBLIC MARKET, THERE MAY BE THE POSSIBILITY
OF  VOLATILE  SHARE  PRICES

     If  listed  for trading on the OTC Bulletin Board, 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  of creditors or otherwise or stock
options  would  likely  result  in a dilution of the value of our common shares.
Moreover,  we  may  seek  authorization to increase the number of our authorized
shares  and  to  sell  additional  securities  and/or  rights  to  purchase such
securities  at  any  time  in  the  future.  Dilution of the value of the common
shares  would  likely  result  from  such  sales.

ITEM  2.     DESCRIPTION  OF  PROPERTY.

     Our  principal  executive  office  is  located  at 5975 Selkirk Crescent in
Prince  George,  British  Columbia in the residence of one of our directors, Ken
Bergestad.  Ken  Bergestad,  one  of  our  directors and officers, provides this
office space to us on a rent free basis and has informed us that the use of this
space  does  not  create  any  hardship  within  his  residence.

     We rent, on a month to month basis, 1500 square feet of space formerly used
by  Niew  Industries  located  at 402 Elm Street, Quesnel, British Columbia, V2J
3W9.  We  pay  the property owner approximately CDN$275 per month for this space
which  is  used primarily as a work shop.  We started using this space in March,
2000.

     An  unrelated  third  party has granted us access to store the Trams System
plant.  Because  the  plant  is  located  on  an  unused  portion of the owner's
property  and  does  not interfere with the owner's business operations, no rent

<PAGE>

has  been requested of us and none has been paid.  Management considers the free
rent  benefit  to  be  insignificant to our company.  There is no guarantee that
this  arrangement  will  continue  in  the  future.

ITEM  3.     LEGAL  PROCEEDINGS.

     We  are not a party to any pending legal action, suit, or proceeding nor is
any  of  our  property  the  subject  of  any  legal  proceeding.

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

     Not  applicable.

                                     PART II

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

     We  are  authorized  to  issue  200,000,000 common shares with par value of
$0.001.  There is no public trading market for our common shares.  We have filed
an  application  to have our common shares quoted on the National Association of
Dealers  Inc.'s  Over-the-Counter  Bulletin  Board.

     As  of  December  31,  2000,  there  were:

-     no  options,  warrants or any other securities which were convertible into
our  common  shares;

-     9,700,000  of  our  common  shares that could be sold pursuant to Rule 144
under  the  Securities  Act  of  1933  if  all  the  conditions of Rule 144 were
satisfied;  and

-     no  common shares that we have agreed to register under the Securities Act
of  1933  for  sale  by  security  holders.

     Our  common  shares  are issued in registered form.  Pacific Stock Transfer
Company,  5844  S.  Pecos  Road,  Suite  D,  Las Vegas, Nevada (telephone: (702)
361-3033,  facsimile (702) 732-7890) is the registrar and transfer agent for our
common  shares.

     On  December  31, 2000, the shareholders' list for our common shares showed
75  registered  shareholders  and  21,700,000  common  shares  outstanding.

     We  have  not  declared  any  dividends  since  incorporation  and  do  not
anticipate  that we will do so in the foreseeable future.  Although there are no
restrictions  that  limit our ability to pay dividends on our common shares, our
intention  is  to  retain  future  earnings  for  use  in our operations and the
expansion  of  our  business.

Recent  Sales  of  Unregistered  Securities

     In  the  past fiscal year, we have sold the following common shares without
registering  such  common  shares  under  the  Securities  Act  of  1933:

     Three individuals, comprising all of the shareholders of Niew Industries, a
British Columbia corporation, sold one hundred percent of the outstanding shares
of  Niew  Industries  and  amounts  owing  to  them  by Niew Industries to us in
exchange  for  12,000,000 of our common shares.  The shares were issued to those
three  individuals  residing  outside  of  the  United  States  in  an "offshore
transaction"  relying  on Regulation S and Section 4(2) of the Securities Act of
1933.  See  Item  1 - "Description of Business" for further details of the share
exchange.  This  transaction  closed  on  January  31,  2000.

<PAGE>

<TABLE>
<CAPTION>

                Niew Industries Shares  (% of Niew Industries)  Shares issued on exchange
                -------------------------------------------------------------------------
<S>                   <C>                  <C>                      <C>

Walter Niemi:          1,290                   60.0                    7,200,000
Ken Bergestad:           430                   20.0                    2,400,000
Lloyd Olson:             430                   20.0                    2,400,000
                       -----                  -----                   ----------
Totals:                2,150                  100.0%                  12,000,000
                       =====                  =====                   ==========
</TABLE>

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

     The  following  discussion should be read in conjunction with our financial
statements  and  related  notes  appearing elsewhere in this Annual Report.  The
following discussion contains forward-looking statements that reflect our plans,
estimates,  assumptions  and  beliefs, and that involve risks and uncertainties.
Our  actual  results  could  differ  materially  from  those  discussed  in such
forward-looking  statements.  Factors  that  could  cause  or contribute to such
differences include, but are not limited to, those discussed below and elsewhere
in this Annual Report, particularly in the section titled "Risk Factors" in Item
1  of  this  Annual  Report.

General

     We were formed in Nevada on September 14, 1995.  We were inactive until the
acquisition of 100% of the issued and outstanding shares of Niew Industries Inc.
(a  company  incorporated  in  British  Columbia  on  January  15,  1997).  That
acquisition  was  completed  by  a  share  exchange  reorganization  with  Niew
Industries Inc. on January 31, 2000.  Since March 23, 1998, Niew Industries Inc.
has  been  in  the  business of developing a twin rotating asphalt mixing system
called  the  Trams  System.  Since  January  31, 2000, our focus has been on the
development  this  twin rotating asphalt mixing system.  Our principal executive
offices  are  located  in  Prince  George,  British  Columbia,  Canada.

Plan  of  Operation

     Our primary objective in the next 12 months will be to complete development
of  the  Phase  I  and  Phase  II of the Trams System for commercial sale and to
implement a sales and marketing program in connection with the sale of the Trams
System.

     As  of  the  present  date,  Phase  I  of the Trams System requires further
development  and testing before it can be made available for commercial release.
We  have not yet started on development of Phase II of the Trans System due to a
lack of capital resources.  In addition to the development and testing work that
has  to  be  performed on both Phase I and Phase II of the Trams System, a sales
and  marketing  campaign  must  be  implemented.

     We  have  also acquired a license to manufacture a self-erecting silo which
is  different  from the self-erecting silo that is going to be used in the Phase
II  of  the  Trams System.  We intend to manufacture this self-erecting silo for
commercial  sale,  but not until we complete development of Phase I and Phase II
of  the  Trams  System.

     Further  development  of  Phase  I  and  Phase  II  of the Trams System was
suspended  in  fiscal 2000 to devote attention to the registration of our common
shares  under  Section  12(g)  of  the  Securities  Exchange  Act of 1934 and to
obtaining  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 have applied to the National Association of
Securities Dealers Inc. to have our common shares quoted on the Over-the-Counter
Bulletin  Board.

     We  anticipate we will be able to complete the 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 below.  In addition, we may modify our
plan  of operations based on the amount of available financing in the event that

<PAGE>

we  cannot  raise the required financing to complete 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 required by our plan of
operations.

     We anticipate incurring 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:

(a)     willingness  of  external  investors to advance capital to us to finance
continued  development  and  production;

(b)     general  economic  conditions,  government environmental regulations and
increased  industry  competition;

(c)     uncertainty  regarding  whether  our  Trams  System can meet new British
Columbia  environmental  regulations,  whether  our Trams System can comply with
environmental regulations in other North American jurisdictions, and whether our
Trams  System  can  continue  to meet new regulatory requirements as they arise;

(d)     whether  there  will be a market for our Phase I or II Trams System once
the  development  is  complete;  and

(e)     whether  demand  for  the  product  that  will  be  adequate  to support
economically  viable  production.

     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
accountant's  report on, and the notes to, the consolidated financial statements
for  the  year  ended  September  30,  2000.

Cash  Requirements

     We  will require a minimum of approximately $550,000 over the period ending
September  30,  2001 in order to accomplish our goals.  The cash requirements of
$550,000  are based on our estimates for operational costs for the period ending
September  30,  2001.  We  estimate  that  approximately $30,000 is required for
further  development  of  Phase  I of the Trams System, $150,000 is required for
development  of  Phase  II  of  the  Trams  System, $120,000 is 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.

     To  date, our operations have been primarily financed by private loans from
our directors and other related parties totaling $698,854 at September 30, 2000,
as  well  as $95,486 of refundable Canadian government investment tax credits on
eligible  research  expenditures.  Since  the  share  exchange  resulted in Niew
Industries  no longer being owned by Canadians, we expect that we will no longer
be  eligible  for  any  further  tax  credits.

     We do not have sufficient funds on hand to complete our Phase I development
but  we  believe  that  we  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 we are
not  successful in raising additional financing, we anticipate that we could not
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
would  occur  until  such  funds were otherwise available externally or from the
proceeds  received  on  sale  of  Phase  I  of  the  Trams  System  prototype.
Alternatively,  we  could  consider a joint venture to proceed with our plans of
operations.

<PAGE>

Research  and  Development

     As  at September 30, 2000, we have expended $403,085 (net of investment tax
credits  of $95,486) on direct research and development on the Trams System.  We
will  continue  to  expend a significant amount of time in the next 12 months on
research  and  development  activities.  These  activities  will  focus  on  the
following  areas:

-     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

-     commencing  development  on  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 another Trams
System.

          The  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 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.

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  selling  these  machines  separately.  When we complete Phase II, we
then intend to locate the Trams System plant at a gravel pit, which location has
already  been  selected,  and  to  record  set  up  time, conduct anti-pollution
equipment  testing,  and  record  promotional  videos.

Personnel

     Over the twelve months ending September 30, 2001, we anticipate an increase
in  the  number  of employees we retain, as we intend to hire two more employees
should  we be in a position to proceed with development of Phase II of the Trams
System  project.

Purchase  or  Sale  of  Equipment

     We  do  not  anticipate  that  we  will  expend  any  significant amount on
equipment  for  our  present  or  future  operations.

ITEM  7.     FINANCIAL  STATEMENTS.

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

     The  consolidated  financial  statements  are attached hereto and are found
immediately following the text of this Annual Report.  The Report of Independent
Accountants  of Hedden Chong, on the audited financial statements for the fiscal
years ended September 30, 2000 and 1999 is included herein immediately preceding
the  audited  financial  statements.

     Our  Consolidated  Audited  Financial  Statements  include:

     Report  of  Independent  Accountants,  dated  December  15,  2000.

     Consolidated  Balance  Sheets  at  September  30,  2000  and  1999.

<PAGE>

     Consolidated  Statements  of  Operations  for the years ended September 30,
2000  and  1999  and  for  the  cumulative  period  from  January  15,  1997
(incorporation)  to  September  30,  2000.

     Consolidated  Statements  of  Changes  in  Stockholders'  Deficit  for  the
cumulative  period  from January 15, 1997 (incorporation) to September 30, 2000.

     Consolidated  Statements  of  Cash Flows for years ended September 30, 2000
and  1999 and for the cumulative period from January 15, 1997 (incorporation) to
September  30,  2000.

     Notes  to  Consolidated  Financial  Statements

     At  September 30, 2000, we were considered a development stage company.  As
a  result  of  our  acquisition  of  Niew  Industries via reverse acquisition on
January  31,  2000,  our financial statements are presented as a continuation of
Niew Industries.  Accordingly, financial information pertaining to periods prior
to  the  acquisition  is  that  of  Niew  Industries.

<PAGE>

                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

                               SEPTEMBER 30, 2000


                                                                          PAGE


REPORT  OF  INDEPENDENT  ACCOUNTANTS                                        F-1

CONSOLIDATED  FINANCIAL  STATEMENTS

     CONSOLIDATED  BALANCE  SHEETS                                          F-2

     CONSOLIDATED  STATEMENTS  OF  OPERATIONS                               F-3

     CONSOLIDATED  STATEMENTS  OF  CHANGES  IN
     STOCKHOLDERS'  DEFICIT                                         F-4  -  F-5

     CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS                              F-6

     NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS                F-7  -  F-13

<PAGE>
                                                                             F-1


                        REPORT OF INDEPENDENT ACCOUNTANTS



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  1999,  the
Consolidated Statements of Operations, Changes in Stockholders' Deficit and Cash
Flows  for  the  years ended September 30, 2000 and 1999 and for the period from
January  15,  1997  (incorporation)  to  September 30, 2000.  These consolidated
financial  statements  are  the responsibility of the Company's management.  Our
responsibility  is  to  express  an  opinion  on  these  consolidated  financial
statements  based  on  our  audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States.  Those standards require that we plan and perform an audit
to obtain reasonable assurance whether the consolidated 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 consolidated
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 1999 and the related
consolidated statements of Operations, Changes in Stockholders' Deficit and Cash
Flows  for  the  years ended September 30, 2000 and 1999 and for the period from
January  15,  1997  (incorporation)  to  September  30,  2000 in conformity with
accounting  principles  generally  accepted  in  the  United  States.

The  accompanying  consolidated financial statements have been prepared assuming
the  Company  will  continue  as a going concern.  As discussed in Note 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/ HEDDON CHONG
BURNABY,  CANADA               CHARTERED  ACCOUNTANTS
DECEMBER  15,  2000


<PAGE>
                                                                             F-2
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

                           CONSOLIDATED BALANCE SHEETS
                            (EXPRESSED IN US DOLLARS)

<TABLE>
<CAPTION>


                                                                                             SEPTEMBER  30,
                                                                                            2000        1999
                                                                                         ----------  ----------
ASSETS
<S>                                                                                      <C>         <C>
Current assets
  Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $     726   $     811
  Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        390       1,100
  Investment tax credits refundable . . . . . . . . . . . . . . . . . . . . . . . . . .          -      97,136
  Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      4,401       5,134
                                                                                         ----------  ----------
                                                                                             5,517     104,181
Fixed assets (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      8,136       9,050
License (Note 5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     50,676           -
                                                                                         ----------  ----------

                                                                                         $  64,329   $ 113,231
                                                                                         =========   ==========

LIABILITIES

Current liabilities
  Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  58,997   $  14,449
  Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     11,462       5,430
  Loan payable to related party (Note 6). . . . . . . . . . . . . . . . . . . . . . . .     32,095      34,074
  Advances from stockholders (Note 7) . . . . . . . . . . . . . . . . . . . . . . . . .    183,850     467,357
                                                                                         ----------  ----------
                                                                                           286,404     521,310
                                                                                         ----------  ----------


STOCKHOLDERS' DEFICIT

Common stock
    Authorized:
       200,000,000 common shares, par value $0.001
    Issued:
         21,700,000 (1999 - 12,000,000) common shares . . . . . . . . . . . . . . . . .     21,700      12,000

Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    410,632           -

Accumulated other comprehensive income
  Foreign currency translation loss . . . . . . . . . . . . . . . . . . . . . . . . . .     (9,927)     (5,751)

Deficit accumulated in the development stage. . . . . . . . . . . . . . . . . . . . . .   (644,480)   (414,328)
                                                                                         ----------  ----------
                                                                                          (222,075)   (408,079)
                                                                                         ----------  ----------

                                                                                         $  64,329   $ 113,231
                                                                                         =========   ==========


The accompanying notes are an integral part of these consolidated financial statements
</TABLE>




<PAGE>
                                                                             F-3
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                            (EXPRESSED IN US DOLLARS)

<TABLE>
<CAPTION>


                                                                                       JANUARY  15,  1997
                                                                                       (INCORPORATION  TO)         YEAR ENDED
                                                                                        SEPTEMBER  30,2000        SEPTEMBER 30,
                                                                                           CUMULATIVE                 2000
----------------------------------------------------------------------------------------  ------------------  -------------------

<S>                                                                                       <C>                 <C>

EXPENSES
  Accounting, audit and legal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $          53,933   $           36,550
  Automotive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             19,343                4,233
  Bank charges and interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              6,873                5,169
  Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             10,064               10,064
  Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              5,377                2,337
  Directors' fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             18,000               18,000
  Insurance, licenses and dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             18,491                8,454
  Office and supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              4,360                1,439
  Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             13,082                1,613
  Research and development (Note 8). . . . . . . . . . . . . . . . . . . . . . . . . . .            403,085               80,334
  Royalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              5,095                5,095
  Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             20,378               20,378
  Telephone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             10,727                3,894
  Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             16,772                1,622
                                                                                          ------------------  -------------------

LOSS BEFORE OTHER ITEMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           (605,580)            (199,182)
                                                                                          ------------------  -------------------

OTHER ITEMS
  Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              4,615                3,810
  Loss on terminated proposed business
       acquisition (Note 8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            (45,376)             (45,376)
                                                                                          ------------------  -------------------
                                                                                                    (40,761)             (41,566)
                                                                                          ------------------  -------------------

NET LOSS FOR THE PERIOD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $        (646,341)  $         (240,748)
                                                                                          ==================  ===================




LOSS PER SHARE - BASIC AND DILUTED . . . . . . . . . . . . . . . . . . . . . . . . . . .                      $            (0.01)
                                                                                                              ===================

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING . . . . . . . . . . . . . . . . . . . . . . .                              18,466,667
                                                                                                              ===================




The accompanying notes are an integral part of these financial statements
                                                                                          YEAR ENDED
                                                                                          SEPTEMBER 30,
                                                                                               1999
                                                                                          -------------

<S>                                                                                       <C>

EXPENSES
  Accounting, audit and legal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  11,539
  Automotive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     11,113
  Bank charges and interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      1,528
  Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          -
  Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      2,203
  Directors' fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          -
  Insurance, licenses and dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      5,115
  Office and supplies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      1,962
  Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      3,027
  Research and development (Note 8). . . . . . . . . . . . . . . . . . . . . . . . . . .     88,602
  Royalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          -
  Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          -
  Telephone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      5,563
  Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     14,643
                                                                                          ----------

LOSS BEFORE OTHER ITEMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (145,295)
                                                                                          ----------

OTHER ITEMS
  Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         76
  Loss on terminated proposed business
       acquisition (Note 8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          -
                                                                                          ----------
                                                                                                 76
                                                                                          ----------

NET LOSS FOR THE PERIOD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(145,219)
                                                                                          ==========



LOSS PER SHARE - BASIC AND DILUTED . . . . . . . . . . . . . . . . . . . . . . . . . . .  $   (0.01)
                                                                                          ==========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING . . . . . . . . . . . . . . . . . . . . . . .  12,000,000
                                                                                          ==========
LOSS PER SHARE - BASIC AND DILUTED

The accompanying notes are an integral part of these financial statements
</TABLE>





<PAGE>
                                                                             F-4
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
                            (EXPRESSED IN US DOLLARS)

<TABLE>
<CAPTION>


                                                                                                           Deficit
                                                                                           Accumulated    Accumulated
                                                         Common Shares        Additional     Other          in the       Total
                                                      ---------------------   Paid-in      Comprehensive  Development Stockholders'
                                                        Number       Amount   Capital        Income         Stage      Deficit
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>           <C>          <C>         <C>             <C>
Balance, September 30, 1999 - Niew Industries Inc.
     carried forward                                     5,000      $    3,265   $       -   $      (5,751)  $(405,593)  $(408,079)

Common stock redeemed at $1 Cdn on October 31, 1999     (2,850)         (1,861)          -           -           1,861       -
                                                    -------------------------------------------------------------------------------
                                                         2,150           1,404           -          (5,751)   (403,732)   (408,079)

Adjustment for the issuance of common stock on
     reverse acquisition                            11,997,850          10,596           -           -         (10,596)       -
                                                    -------------------------------------------------------------------------------
                                                    12,000,000          12,000           -          (5,751)   (414,328)   (408,079)
Adjustment of debts to former stockholders of
     Niew Industries Inc. (Note 3)                      -                -             410,268       -          10,596     420,864

Adjustment for the stockholders' equity of
the Company at the acquisition date (Note 3)         9,700,000           9,700             364       -           -          10,064
                                                    -------------------------------------------------------------------------------
                                                    21,700,000          21,700         410,632      (5,751)   (403,732)     22,849
                                                    -------------------------------------------------------------------------------

     Net loss for the year                              -                -               -           -        (240,748)   (240,748)
     Foreign currency translation loss                  -                -               -          (4,176)      -          (4,176)
                                                    -------------------------------------------------------------------------------
     Total comprehensive loss                           -                -               -          (4,176)   (240,748)   (244,924)
                                                    -------------------------------------------------------------------------------

Balance, September 30, 2000                         21,700,000      $   21,700      $  410,632   $  (9,927)  $(644,480)  $(222,075)
                                                    -------------------------------------------------------------------------------
                                                    -------------------------------------------------------------------------------


The accompanying notes are an integral part of these financial statements
</TABLE>




<PAGE>
                                                                             F-5
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)
<TABLE>
<CAPTION>


CONSOLIDATED  STATEMENTS  OF  CHANGES  IN  STOCKHOLDERS'  DEFICIT
 (EXPRESSED  IN  US  DOLLARS)
                                                                                                                Deficit
                                                                                                   Foreign     Accumulated
                                                                                                  Currency      in  the
                                                                                                  Translation  Development
                                                                            Shares     Amount     Adjustments     Stage
                                                                           --------  ----------  -------------  ----------
<S>                                                                        <C>       <C>         <C>            <C>
Initial capitalization of the company as of  January 15, 1997 . . . . . .      100   $      67   $          -   $       -

Common stock issued at $1 Can April 15, 1998. . . . . . . . . . . . . . .    4,900       3,198              -           -
                                                                           --------  ----------  -------------  ----------
                                                                             5,000       3,265              -           -
                                                                                                 -------------  ----------

Net loss for the year . . . . . . . . . . . . . . . . . . . . . . . . . .                                   -    (260,374)

Foreign currency translation adjustments. . . . . . . . . . . . . . . . .                               8,588           -
                                                                           --------  ----------  -------------  ----------

Comprehensive loss. . . . . . . . . . . . . . . . . . . . . . . . . . . .                               8,588    (260,374)

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

Net loss for the year . . . . . . . . . . . . . . . . . . . . . . . . . .                                   -    (145,219)

Foreign currency translation adjustments. . . . . . . . . . . . . . . . .                             (14,339)          -

Total comprehensive loss. . . . . . . . . . . . . . . . . . . . . . . . .                             (14,339)   (145,219)

Balance, September 30, 1999 . . . . . . . . . . . . . . . . . . . . . . .    5,000   $   3,265   $     (5,751)  $(405,593)
                                                                          ========   =========   =============  ==========


The accompanying notes are an integral part of these financial statements

                                                                             Total
                                                                         Stockholders'
                                                                            Deficit
                                                                         -------------
<S>                                                                        <C>
Initial capitalization of the company as of  January 15, 1997 . . . . . .  $      67

Common stock issued at $1 Can April 15, 1998. . . . . . . . . . . . . . .      3,198
                                                                           ----------
                                                                               3,265
                                                                           ----------

Net loss for the year                                                       (260,374)

Foreign currency translation adjustments                                       8,588
                                                                           ----------

Comprehensive loss                                                          (251,786)
                                                                           ----------

Balance, September 30, 1998 . . . . . . . . . . . . . . . . . . . . . . .   (248,521)
                                                                           ----------

Net loss for the year                                                       (145,219)

Foreign currency translation adjustments                                     (14,339)
                                                                           ----------

Total comprehensive loss                                                    (159,558)
                                                                           ----------

Balance, September 30, 1999 . . . . . . . . . . . . . . . . . . . . . . .  $(408,079)
                                                                           ==========


The accompanying notes are an integral part of these financial statements
</TABLE>




<PAGE>

                                                                             F-6
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (EXPRESSED IN US DOLLARS)

<TABLE>
<CAPTION>

                                                        JANUARY 15, 1997
                                                        (INCORPORATION) TO
                                                        SEPTEMBER 30, 2000                     YEAR ENDED SEPTEMBER 30,
                                                          CUMULATIVE                    2000                        1999
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                    <C>                     <C>

CASH PROVIDED BY (USED IN)
Operating
    Net loss for the period                . . . . . .  $          (646,341)   $          (240,748)    $          (145,219)
    Non cash item
        Depreciation.                                                 5,377                  2,337                   2,203
    (Increase) decrease in current assets
        Receivables . . . . . . . . . .                                (390)                   710                  32,355
        Investment tax credits refundable .                              -                  97,136                 (54,357)
           Prepaid expenses . . . . . . . . . . . . . . .            (4,401)                   733                  (2,526)
    Increase (decrease) in current liabilities
        Accounts payable. . .                                        27,960                 13,511                   5,869
        Accrued liabilities .                                        11,462                  6,032                   2,430
                                                        -------------------     ------------------     -------------------
                                                                   (606,333)              (120,289)               (159,245)
                                                        -------------------     ------------------     -------------------
Financing
    Loan payable to related party . . . . . . . . .                  32,095                 (1,979)                 34,074
    Advances from stockholders.                                     666,759                199,402                 139,258
    Repayments to shareholders.                                     (70,416)               (70,416)                  -
                                                        -------------------     ------------------     -------------------
                                                                    628,438                127,007                 173,332
                                                        -------------------     ------------------     -------------------
Investing
    Cash acquired on reverse acquisition.                            10,064                 10,064                   -
    Purchase of fixed assets.                                       (13,544)                (1,454)                 (3,765)
    Purchase of license .                                           (19,639)               (19,639)                  -
                                                          -------------------     ------------------     -------------------
                                                                    (23,119)               (11,029)                 (3,765)
                                                          -------------------     ------------------     -------------------

INCREASE (DECREASE) IN CASH .   . . . . . . . . . . . . . . . . . .  (1,014)                (4,311)                 10,322

EFFECT OF FOREIGN EXCHANGE ON CASH.                                   1,740                  4,226                 (14,339)

CASH AT BEGINNING OF PERIOD . . . . . . . . . . . . . . . . . . .        -                     811                   4,828
                                                          -------------------     ------------------     -------------------

CASH AT END OF PERIOD . . . . . . . . . . . . . . . . . . $             726       $            726       $             811
                                                          ==================      ==================     ===================

SUPPLEMENTAL INFORMATION

NON CASH INVESTING AND FINANCING ACTIVITIES
Shares of Niew Industries Inc. and loans payable to
stockholders of Niew Industries Inc. acquired for
consideration totaling 12 million shares of common stock . . . . . . . . . . . .  $        420,864       $            -
                                                                                  ================       ===============

LICENSE ACQUIRED BY ISSUANCE OF ACCOUNTS PAYABLE. . . .. . . . . . . . . . . . .  $         31,037       $            -
                                                                                  ================       ===============



The accompanying notes are an integral part of these consolidated financial statements
</TABLE>




<PAGE>
                                                                             F-7
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                            (EXPRESSED IN US DOLLARS)

                           SEPTEMBER 30, 2000 AND 1999


1.     NATURE  OF  BUSINESS  AND  CONTINUING  OPERATIONS

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

NIEW  was  incorporated  on  January 15, 1997 under the British Columbia Company
Act.  The  Company  was  inactive  until  March  23,  1998  when  it  began  the
development  of  a  twin rotating asphalt mixing system.  To date, this has been
Niew's  only  activity.  These  financial statements are expressed in US dollars
and  have  been  prepared  in  accordance  with  accounting principles generally
accepted  in  the  United  States.

These  accompanying  consolidated  financial  statements have been prepared on a
going  concern  basis,  which  contemplates  the  realization  of assets and the
satisfaction  of  liabilities  and commitments in the normal course of business.
As  at  September  30,  2000,  the  Company  has accumulated operating losses of
$646,341 since its inception.  The continuation of the Company is dependent upon
the  continuing  financial  support of creditors, directors and stockholders and
obtaining  long  term  financing  as  well  as  achieving  a profitable level of
operations  through  the  successful  development  of  the twin rotating asphalt
mixing  system.  It  is  the  intention  of  the  Company  to raise a new equity
financing  of  approximately  $550,000 within the upcoming year.  Amounts raised
will  be  used  to  complete the development of the twin rotating asphalt mixing
system  and  then  proceed  into  a  stage  of commercial production.  While the
Company  is  expending  its best efforts to achieve the above plans, there is no
assurance  that any such activity will generate funds that will be available for
operations.

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


2.     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

     INVESTMENT  TAX  CREDIT:    In  1999  and  1998,  the  company  had  made
applications  to  the  Canada  Customs  and Revenue Agency ("CCRA") to claim for
refundable  investment  tax  credits  ("ITCS")  related  to  their  research and
development  activities.  The  ITCs  are  earned  under  a  Canadian  Government
incentive  program  at  a  specified percentage of expenditures that qualify for
this  credit under the Income Tax Act of Canada.  The ITCs, similar in nature to
a  research  grant, are taxable to the Company in the year following the year to
which  the  credit relates.  The Company's estimate of the amount recoverable is
shown  in  the  financial statements as investment tax credits refundable and is
stated  at  the  estimated  realizable  value,  net  of  any reasonably possible
adjustments by CCRA.  Credits earned are recorded as a reduction to research and
development expenses (see Note 8).  The estimate was based on the CCRA's current
assessing  practices.



<PAGE>
                                                                             F-8
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                            (EXPRESSED IN US DOLLARS)

                           SEPTEMBER 30, 2000 AND 1999


2.     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  CONTINUED

     DEPRECIATION:     Fixed  assets  are  recorded  at cost and are depreciated
over  their  estimated  useful  lives  as  follows:

                                                         Rate  per  annum
                                                   -------------------------

     Office  equipment                              20%  declining balance basis
     Machinery and equipment                         20% declining balance basis
     Automotive  equipment                         30%  declining  balance basis

FOREIGN  CURRENCY  TRANSLATION:    As  a  Canadian  company  operating solely in
Canada,  its  functional  currency  is  the Canadian dollar.  These consolidated
financial  statements  have  been  translated  into  United  States  dollars for
consistency  with  other  registrants  of the Securities and Exchange Commission
("SEC") in the United States.  As a result, the assets and liabilities have been
translated  at  the  exchange  rate  in  effect  at  the balance sheet date, and
revenues  and expenses have been translated at the average exchange rate for the
year.  Gains  or  losses  on translation are deferred as a separate component of
stockholders'  deficit.

RESEARCH  AND DEVELOPMENT COSTS:    Expenditures on research and development are
charged to expense when incurred.  Research and development costs consist of the
cost  of  materials  and  services  consumed,  salaries  and  wages of personnel
directly  engaged  in  research  and  development  and  the  costs  of  patent
applications.  The  cost  of  the  research  and  development  is reduced by any
investment  tax  credits  accrued  in  respect  of  those  costs.

USE  OF  ESTIMATES:    The  preparation  of consolidated financial statements in
conformity  with generally accepted accounting principles requires management to
make  estimates  and  assumptions that affect the reported amounts of assets and
liabilities  and  disclosure of contingent assets and liabilities at the date of
the consolidated financial statements and the recognized amounts of revenues and
expenses  during  the  reporting period.  Actual results could differ from those
estimates.

INCOME  TAXES:    The  Company  follows the provisions of Statement of Financial
Accounting  Standards  ("SFAS")  No.  109,  "Accounting for Income Taxes", which
requires  the  Company  to recognize deferred tax liabilities and assets for the
expected  future  tax  consequences  of  events that have been recognized in the
Company's  consolidated  financial statements or tax returns using the liability
method.  Under  this  method, deferred tax liabilities and assets are determined
based  on  the  temporary  differences  between the financial statement carrying
amounts  and  tax  bases  of  assets  and liabilities using enacted tax rates in
effect  in  the  years  in  which  the  differences  are  expected  to  reverse.

COMPREHENSIVE  INCOME:    The  company  has  adopted  SFAS  No. 130.  "Reporting
Comprehensive  Income", which establishes standards for reporting and display of
comprehensive  income,  its components and accumulated balances.  The Company is
disclosing  this  information  on  its  Statement  of  Changes  in Stockholders'
Deficit.  Comprehensive income is comprised of net income (loss) and all changes
to  stockholders'  deficit except those resulting from investments by owners and
distributions  to  owners.


<PAGE>
                                                                             F-9
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                            (EXPRESSED IN US DOLLARS)

                           SEPTEMBER 30, 2000 AND 1999


2.     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  CONTINUED

NEW  ACCOUNTING  PRONOUNCEMENTS:    In  June  1998,  the  Financial  Accounting
Standards  Board  issued SFAS No. 133, Accounting for Derivative Instruments and
Hedging Activities.  SFAS No. 133 requires companies to recognize all derivative
contracts  as  either  assets or liabilities on the balance sheet and to measure
them  at  fair  value.  If  certain  conditions  are  met,  a  derivative may be
specifically  designated  as  a  hedge,  the  objective of which is to match the
timing  of  gain  or  loss  recognition  on  the  hedging  derivative  with  the
recognition  of  (i)  the  changes  in  the  fair  value of the hedged assets or
liability  that  are attributable to the hedged risk or (ii) the earnings effect
of  the  hedged  forecasted  transaction.  For  a derivative not designated as a
hedging  instrument,  the  gain or loss is recognized in income in the period of
change.  SFAS  No.  133  is effective for all quarters of fiscal years beginning
after  June  15,  2000.

Historically,  the  Company  has not entered into derivative contracts either to
hedge existing risks or for speculative purposes.  Accordingly, the Company does
not  expect  adoption  of  the  new  standards  on October 1, 2000 to affect its
financial  statements.

In  April  1998,  the  American Institute of Certified Public Accountants issued
Statement  of  Position  98-5,  "Reporting on the Costs of Start-Up Activities",
("SOP  98-5")  which  provides  guidance  on the financial reporting of start-up
activities and organization costs.  It requires costs of start-up activities and
organization costs to be expensed as incurred.  SOP 98-5 is effective for fiscal
years  beginning  after  December 15, 1998 with initial adoption reported as the
cumulative  effect  of  a  change  in  accounting  principle.  Adoption  of this
standard  did  not  have  a  material  effect  on  the  financial  statements.

     In  1999,  the  Securities  and Exchange Commission issued Staff Accounting
Bulletin  No.  101  dealing  with revenue recognition, which is effective in the
fourth  quarter  of the Company's 2001 fiscal year.  The Company does not expect
its  adoption  to  have a material effect on the Company's financial statements.

     In  March  2000,  the  Financial  Accounting  Standards  Board  issued FASB
Interpretation  No.  44,  "Accounting  for  Certain Transactions Involving Stock
Compensation",  an  interpretation  of  APB  Opinion  No.  25.  The  Company was
required  to  adopt the Interpretation on July 1, 2000.  Among other things, the
Interpretation requires that stock options that have been modified to reduce the
exercise  price be accounted for as variable.  Adoption of this standard did not
have  a  material  effect  on  the  Company's  financial  statements.


3.   ACQUISITION  OF  NIEW  INDUSTRIES  INC.

By  agreement dated December 11, 1999, the Company agreed to acquire 100% of the
issued and outstanding shares, and settle $420,864 owing to the stockholders, of
Niew  Industries  Inc.  in exchange for 12 million common shares of the company.
The  acquisition  closed  on  January  31,  2000.

Effective  as  of  the closing date, the transaction was accounted for using the
purchase  method  of  accounting  as  applicable  for  a  reverse  acquisition.
Following  reverse  acquisition  accounting,  consolidated  financial statements
subsequent  to  closing  of  the  acquisition are presented as a continuation of
NIEW.  The  operations  of  the Company are consolidated with those of NIEW from
the  date  of  the  acquisition.


<PAGE>
                                                                            F-10
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                            (EXPRESSED IN US DOLLARS)

                           SEPTEMBER 30, 2000 AND 1999


3    ACQUISITION  OF  NIEW  INDUSTRIES  INC.  -  CONTINUED

The net assets of the Company at the date of acquisition consisted of $10,064 of
cash  remaining  on its initial capitalization.  No goodwill was recorded on the
transaction.

Since  the  Company  was  inactive  until  the  acquisition  of  NIEW, pro-forma
information  reflecting  the acquisition had it occurred at the beginning of the
earliest  period  presented  would not yield results different from the net loss
and  loss  per  share  presented  on  the  Consolidated Statement of Operations.

<TABLE>
<CAPTION>


4.     FIXED  ASSETS

      2000
      ----
                                  ACCUMULATED      NET
                          COST    DEPRECIATION   BOOK VALUE
                         -------  -------------  -----------
<S>                      <C>      <C>            <C>

Office equipment. . . .  $   269  $         114  $       155
Machinery and equipment    9,832          3,548        6,284
Automotive equipment. .    3,464          1,767        1,697
                         -------  -------------  -----------

                         $13,565  $       5,429  $     8,136
                         =======  =============  ===========
</TABLE>


<TABLE>
<CAPTION>


     1999
     ----

                                    ACCUMULATED      NET
                            COST    DEPRECIATION   BOOK VALUE
                           -------  -------------  -----------
<S>                        <C>      <C>            <C>
  Office equipment. . . .  $   270  $          76  $       194
  Machinery and equipment    8,406          1,983        6,423
  Automotive equipment. .    3,476          1,043        2,433
                           -------  -------------  -----------

                           $12,152  $       3,102  $     9,050
                           =======  =============  ===========
</TABLE>


5.     LICENSE

     By  agreement  dated  November  8,  1999,  the Company agreed to purchase a
license  entitling  it  to manufacture a component known as a "Portable Overhead
Bin".  This  component  may  be  part of the twin rotating asphalt mixing system
that  is currently being developed by the Company.  The Company's main intention
is to manufacture and sell the component as a separate product because it can be
used  with  any  existing asphalt plant.  To acquire the license, the Company is
required to pay a one time payment of $75,000 in Canadian dollars, $30,000 which
has  been  paid  with the balance to be paid by February 28, 2001.  In addition,
the  company  will  be  required  to  pay a royalty based on the number of units
manufactured  in  a calendar year.  The minimum royalty is Cdn. $10,000 for 2000
and  Cdn.  $20,000  for  2001  and  thereafter.

<PAGE>
                                                                            F-11
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                            (EXPRESSED IN US DOLLARS)

                           SEPTEMBER 30, 2000 AND 1999


6.     LOAN  PAYABLE  TO  RELATED  PARTY

The Company has borrowed $32,095 ($47,500 Canadian) from a person related to one
of  the  directors.  The  loan  is  unsecured  and  is without specific terms of
repayment.  Interest is payable at 8%.  Interest of $2,291 was either accrued or
paid  during  the  year.


7.     ADVANCES  FROM  STOCKHOLDERS

     In  connection  with  the acquisition of Niew Industries Inc., the purchase
price  of  12 million common shares included the settlement of outstanding debts
to  stockholders  totaling  $420,864.

     The  remaining  advances  are  unsecured,  do not bear interest and have no
specific  terms  of  repayment.  The  advances  are  summarized  as  follows:
<TABLE>
<CAPTION>



                                2000                    1999
                                -----------------------------
<S>                             <C>                            <C>
  Cash advances to the company  $        245,469    $        464,619
  Repayments . . . . . . . . .           (70,416)                  -
  Reimbursable expenses. . . .             8,797               2,738
                                ----------------    ----------------

                                $        183,850    $        467,357
                                ================    ================

  Average balance for the year  $        119,535    $        403,645
                                ===============     ================
</TABLE>




8.     RESEARCH  AND  DEVELOPMENT  COSTS

The  company  is  in  the  process  of developing a twin rotating asphalt mixing
system.  Costs  incurred  to  date  consist  of  the  following:
<TABLE>
<CAPTION>

                                   JANUARY  15,  1997
                                  (INCORPORATION)  TO
                                  SEPTEMBER  30,  2000             YEAR  ENDED  SEPTEMBER  30,
                                    CUMULATIVE                     2000                  1999
                                   ----------------------------------------------------------------
<S>                                <C>                            <C>                  <C>

  Materials and supplies. . . . .  $  272,954                      $ 4,244              $ 44,627
  Salaries and benefits . . . . .     201,947                       66,593                85,782
  Patent and applications . . . .      23,670                        9,497                 9,443
  Investment tax credits recovery     (95,486)                           -               (51,250)
                                   --------------------------------------------------------------

                                   $  403,085                      $80,334              $ 88,602
                                   ==========                     ========              =========
</TABLE>




<PAGE>
                                                                            F-12
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                            (EXPRESSED IN US DOLLARS)

                           SEPTEMBER 30, 2000 AND 1999


9.     LOSS  ON  TERMINATED  PROPOSED  BUSINESS  ACQUISITION

     During  the  period,  the  Company  advanced  funds  in anticipation of the
acquisition  of  a  business.  The  directors  have  reassessed  the  proposed
acquisition  and have chosen to abandon it.  As a result, the advances have been
written  off.

     The  company  to  which  the  funds  were advanced and the Company have one
common  director.


10.     INCOME  TAX  INFORMATION

The  Company has operating losses of $185,827 available to be carried forward to
reduce  taxable  income  of  future  years  expiring  as  follows:

          2004                         $    22,578
          2005                              53,797
          2007                              81,338
          2020                              28,064

The  Company  has undeducted expenditures for tax purposes of $378,893 available
to  be  carried  forward  indefinitely to reduce taxable income of future years.

     The Company has allowable capital losses of $22,568 available to be carried
forward  to  reduce  taxable  capital  gains  of  future  years.

The tax effect of temporary differences that give rise to the Company's deferred
tax  assets  (liabilities)  are  as  follows:
<TABLE>
<CAPTION>



                                 2000        1999
                              ----------  ----------
<S>                           <C>         <C>
  Tax losses carried forward  $  84,774   $  34,842
  Undeducted expenses. . . .    172,851     164,160
  Fixed assets . . . . . . .      2,470       1,387
  Patents. . . . . . . . . .     10,776       6,466
  Investment tax credits . .          -     (23,380)
  Allowable capital loss . .     10,295           -
  Valuation allowance. . . .   (281,166)   (183,475)
                              ----------  ----------

                              $       -   $       -
                              =========   ==========
</TABLE>





<PAGE>
                                                                            F-13
                         GLOBAL INNOVATIVE SYSTEMS INC.
                          (A DEVELOPMENT STAGE COMPANY)

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
                            (EXPRESSED IN US DOLLARS)

                           SEPTEMBER 30, 2000 AND 1999


10.  INCOME  TAX  INFORMATION  -  CONTINUED

The  provision  for  income  taxes  differs  from  the amount computed using the
federal  statutory  income  tax  rate  as  follows:
<TABLE>
<CAPTION>


                                                     YEAR  ENDED  SEPTEMBER  30,
                                                          2000       1999
                                                        ---------  ---------
<S>                                                     <C>        <C>
  Benefit at Federal Canadian statutory rate . . . . .  $ 70,106   $ 41,800
  Benefit at Provincial statutory rate . . . . . . . .    39,723     23,685
  Reduction due to non deductible portion of loss
    on terminated business acquisition and other items   (12,138)         -
  Increase in valuation allowance. . . . . . . . . . .   (97,691)   (65,485)
                                                        ---------  ---------

                                                        $      -   $      -
                                                        ========   =========
</TABLE>



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


11.     FAIR  VALUE  OF  FINANCIAL  INSTRUMENTS

     The  carrying value of the Company's financial instruments, including cash,
receivables,  accounts  payable  and  accrued  liabilities at September 30, 2000
approximate  their  fair  values due to the short term nature of these financial
statements.

The  fair  value  of  loans  payable  to stockholders and related parties is not
practicable  to  determine.


12.     RELATED  PARTY  TRANSACTIONS

     As  of  the year ended September 30, 1998, the company had advanced $27,827
to  directors  of  the Company.  During the year ended September 30, 1999, these
advances  were  repaid  by  the  directors.




<PAGE>

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

     Not  applicable.
'
                                    PART III

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

     All  of  our  directors  serve  until  the  next  annual general meeting of
shareholders  or  until their successors are elected and qualified, or until the
earlier of death, retirement, resignation or removal.  Subject to any applicable
employment agreement, executive officers serve at the discretion of the board of
directors, and are appointed to serve until the first board of directors meeting
following  the  annual  meeting  of  shareholders.

     Our  directors,  executive  officers and other significant employees, their
ages,  positions  held  and  duration  as  such,  are  as  follows:

<TABLE>
<CAPTION>



                           DATE FIRST ELECTED
NAME                          POSITION HELD            AGE    OR APPOINTED
------------------  ---------------------------------  ---  ----------------
<S>                 <C>                                <C>  <C>

Helge Freudentheil  President and Director              51  January 31, 2000
                    ---------------------------------  ---  ----------------
Ken Bergestad. . .  Vice-President and Director         48  January 31, 2000
                    ---------------------------------  ---  ----------------
Walter R. Niemi. .  Secretary, Treasurer and Director   56  January 31, 2000
                    ---------------------------------  ---  ----------------
Robert W. Stark. .  Vice President and Director         50  January 31, 2000
                    ---------------------------------  ---  ----------------
Lloyd Olson. . . .  Treasurer of Niew Industries        39  January 15, 1997
==================  =================================  ===  ================
</TABLE>



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  and  Director

     Mr.  Helge  Freudentheil is one of our directors and has been our President
since January 31, 2000.  For 10 years prior to joining us, 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 expends approximately 90% of his work efforts to P.G. Machine Works
and the remaining 10% to us.  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

     Ken Bergestad is one of our directors and has been our Vice President since
January  31,  2000.  From  1997  to present, Mr. Bergestad was Secretary of Niew
Industries.  Mr.  Bergestad was instrumental in raising the start-up capital for

<PAGE>

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  from  1994-1997.  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

     Walter  R.  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  and  Director

     Mr.  Stark  is  one  of  our  directors and has been a Vice-President since
January  31,  2000.  Since  1988,  Mr.  Stark  has been self-employed with Krats
Drilling.  He  applies  approximately 90% of his work time to Krats Drilling and
the  remaining 10% to us. 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.

Lloyd  Olson,  Treasurer  Niew  Industries,  Inc.

     Mr.  Olson  has  been a part of Niew Industries since 1997 and has held the
position  of  treasurer  of  Niew  Industries since inception.  Mr. Olson was an
electrical  apprentice  for  Service Electric, Quesnel, B.C. from 1986-1990. 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.  From 1997 to the
present  date,  Mr.  Olson  has  been  the  Treasurer  for  Niew  Industries.

     There  are  no  family  relationships  between  any  of  our  directors and
officers.  There  are  no arrangements or understandings between any two or more
directors  or  executive officers, pursuant to which he/she was selected to be a
director  or  executive  officer.

     None  of  our  directors,  executive officers, promoters or control persons
have  been  involved  in any of the following events during the past five years:

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

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

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

<PAGE>

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

Committees  of  the  Board  of  Directors

     We  do  not  have  an  audit  or  compensation  committee  at  this  time.

Section  16(a)  Beneficial  Ownership  Compliance

     Section  16(a) of the Securities Exchange Act of 1934, as amended, requires
our  executive  officers  and  directors  and persons who own more than 10% of a
registered  class  of our common shares to 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  Commission
regulations  to  furnish  us with copies of all Section 16(a) reports they file.

     To the best of our knowledge, all executive officers, directors and greater
than  10%  shareholders  filed the required reports in a timely manner, with the
exception  of  the  following:

<TABLE>
<CAPTION>



                      NUMBER OF    NUMBER OF TRANSACTIONS NOT  FAILURE TO FILE
NAME                LATE REPORTS   REPORTED ON A TIMELY BASIS  REQUESTED FORMS
------------------  -------------  --------------------------  ----------------
<S>                 <C>            <C>                         <C>

Helge Freudentheil           1(1)                           1              1(1)
                    -------------  --------------------------  ----------------
Robert Stark . . .           1(1)                           1              1(1)
                    -------------  --------------------------  ----------------
Walter Niemi . . .           1(1)                           1              1(1)
                    -------------  --------------------------  ----------------
Lloyd Olson. . . .           1(1)                           1              1(1)
                    -------------  --------------------------  ----------------
Ken Bergestrad . .           1(1)                           1              1(1)
------------------  -------------  --------------------------  ----------------
<FN>

(1)     The  named  officer,  director  or  greater  than  10%  shareholder,  as
applicable,  late  filed a Form 3 - Initial Statement of Beneficial Ownership on
June 27, 2000.  The Company has not received any other reports from any of these
persons  and  cannot therefore determine if such individuals have failed or late
filed  any  applicable  reports.
</TABLE>



ITEM  10.     EXECUTIVE  COMPENSATION.

     No  executive  officer  of  Global  Innovative Systems Inc. received annual
salary  and  bonus in excess of $100,000 for the years ended September 30, 2000,
1999  and  1998.  We  paid the following compensation to our executive officers:
<TABLE>
<CAPTION>



NAME AND PRINCIPAL POSITION                           SALARY PAID
-----------------------------------------  ----------------------------------
<S>                                        <C>

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)
-----------------------------------------  ----------------------------------
</TABLE>



     There  were  no  grants  of stock options or stock appreciation rights made
during the fiscal year ended September 30, 2000 to any of our executive officers
or directors.  There were no stock options outstanding as at September 30, 2000,
and  we  have  not  granted  any stock options to any of our executive officers,
directors,  employees  or  consultants.

<PAGE>

     On July 1, 1996, Legacy Minerals Inc. adopted the Legacy Minerals Inc. 1996
Consultant and Employee Stock Compensation Plan pursuant to Rule 701 promulgated
under the Securities Act of 1933.  The plan authorizes the distribution of up to
1,000,000  shares.  Since  we  are  now a reporting company under the Securities
Exchange  Act  of  1934,  we  can  no  longer grant any options under this plan.

     Other  than as discussed above, 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
$100,000  per  executive  officer.

     There  are no arrangements or plans in which we provide pension, retirement
or  similar  benefits  for  directors  or  executive  officers.  Other  than the
management  agreements  discussed  herein,  we  have no 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  the  board  of  directors  or  a  committee  thereof.

Directors  Compensation

     We  reimburse  our  directors  for  expenses  incurred  in  connection with
attending  board  meetings  and paid director's 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  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.
Other than indicated below, no director received and/or accrued any compensation
for  his or her services as a director, including committee participation and/or
special  assignments.

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

Principal  Stockholders

     The  following  table  sets  forth,  as  of  December  31,  2000,  certain
information  with  respect  to  beneficial ownership of our common stock by each
stockholder known by us to be the beneficial owner of more than 5% of our common
shares and by each of our current directors and executive officers.  Each person
has  sole  voting and investment power with respect to the common shares, except
as  otherwise  indicated.  Beneficial ownership consists of a direct interest in
the  common  shares,  except  as  otherwise  indicated.
<TABLE>
<CAPTION>

                                       AMOUNT AND NATURE      PERCENT OF CLASS
NAME & ADDRESS OF BENEFICIAL OWNER   OF BENEFICIAL OWNER(1)  BENEFICIAL OWNER(1)
-----------------------------------  ----------------------  -------------------
<S>                                  <C>                     <C>

Lloyd Olson(2)
105 - 2379
Bjornson Site
Quesnel, B.C.
Canada  V2J 5E6 . . . . . . . . . .               2,400,000                  11%
                                     ----------------------  -------------------
Walter Niemi
105 - 2379 Red Bluff Road
Quesnel, B.C.
Canada  V2J 6B9 . . . . . . . . . .               7,200,000                  33%
                                     ----------------------  -------------------
Ken Bergestad
5975 Selkirk Crescent
Prince George, B.C.
Canada  V2N 2G9 . . . . . . . . . .               2,400,000                  11%
                                     ----------------------  -------------------
Robert W. Stark
2332 Northwood Pulp Road
Prince George, B.C.
Canada  V2A 1K2 . . . . . . . . . .                    Nil                   Nil
                                     ----------------------  -------------------
Helge Freudentheil
23425 Fyfe Road
Prince George, B.C.
Canada  V2N 6H7 . . . . . . . . . .                    Nil                   Nil
                                     ----------------------  -------------------
Directors and officers as a group .              12,000,000                  55%
-----------------------------------  ----------------------  -------------------
<FN>

(1)     Based  on 21,700,000 shares of common stock issued and outstanding as of
December  31,  2000.  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)     Lloyd Olson is an employee of ours, but is not an officer or a director,
nor  is  he  related  to  any  person  in  management.
</TABLE>


Changes  in  Control

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

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.

     During  the  year  ended  September  30,  1999,  Niew  Industries  borrowed
CDN$50,000  (approximately  $34,000)  from  director Ken Bergestad's father.  We
either  accrued  or  paid him interest of $2,291 during the year ended September
30,  2000.  The  loan  is  unsecured and is without specific terms of repayment.
Interest  is  payable  at  the  rate of eight percent per annum.  The lender has
indicated  that  he  does not expect to request repayment during the next fiscal
year.  As  of  September  30,  2000, there was a principal balance of CDN$47,500
(approximately  $32,000)  outstanding  as we had repaid $1,974 during the fiscal
year.

     Niew  Industries  had previously received loans in fiscal 1999 of $467,357.
Of  this  sum, $450,457 did not bear interest. The balance of $16,900 was repaid
during  fiscal  2000.  These  loans  are unsecured and have no specific terms of
repayment.  In  connection  with  the  Share Exchange Agreement, loans totalling

<PAGE>

$420,864  were  acquired  by  us  and  settled.  In  fiscal  2000, the directors
advanced  a  further  $156,118  (net  of  repayments  of  $70,416)  to  us on an
unsecured,  non-interest  bearing  basis  with  no  terms  of  repayment.

     At September 30, 2000, the balance of loans payable to our stockholders was
as  follows:

Ken  Bergestad     $     75,582
Walter  Niemi            52,978
Lloyd  Olson             55,290
                         ------
                   $    183,850
                   ============

     Niew  Industries  advanced  as  a  non-refundable  payment  of  CDN$66,800
(approximately  $45,000)  to  Remote  Security  Ltd.  in  contemplation  of  an
acquisition  of Remote Security Ltd. a company in which Robert Stark, one of our
directors,  also  serves  as  a  director.  Management  of  Niew  Industries had
investigated  a proposed acquisition of Remote Security Ltd. a Canadian business
involved in the development of a secure locking system for explosives magazines.
Niew  Industries performed its due diligence in connection with the acquisition.
Thereafter,  Niew  Industries'  management re-evaluated the proposal and decided
not  to  pursue the acquisition.  As a result, the initial advances were written
off.  At  the time of the related party transaction, Mr. Stark was a controlling
shareholder  of  Remote  Security  Ltd.  While  he  is  a member of our board of
directors, Mr. Stark has never been a director of Niew Industries.  Thus, he did
not  participate  in  Niew Industries' decision to advance the funds, to abandon
the  acquisition,  or  to  forgive  the  indebtedness.

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

Financial  Statements  Filed  as  Part  of  our  Annual  Report

Report  of  Independent  Accountants,  dated  December  15,  2000.

Consolidated  Balance  Sheets  at  September  30,  2000  and  1999.

Consolidated  Statements  of  Operations  for the years ended September 30,
2000  and  1999  and  for  the  cumulative  period  from  January  15,  1997
(incorporation)  to  September  30,  2000.

Consolidated  Statements of Changes in Stockholders' Deficit for the period
from  January  15,  1997  (incorporation)  to  September  30,  2000.

Consolidated  Statements  of  Cash  Flows for the years ended September 30,
2000  and  1999  and  for  the  cumulative  period  from  January  15,  1997
(incorporation)  to  September  30,  2000.

Notes  to  Consolidated  Financial  Statements

Exhibits  Required  by  Item  601  of  Regulation  S-B

(3)     Articles  of  Incorporation  and  By-laws

     3.1     Charter  (filed  as  exhibit 3(i)  to our Registration Statement on
Form  10SB  on  April  11,  2000,  and  incorporated  herein  by  reference)

     3.2     Articles  of  Incorporation  (filed  as  exhibit  3(ii)  to  our
Registration  Statement  on Form 10SB on April 11, 2000, and incorporated herein
by  reference)

     3.3     Bylaws  (filed  as  exhibit 3(iii) to our Registration Statement on
Form  10SB  on  April  11,  2000,  and  incorporated  herein  by  reference)

(10)     Material  Contracts

10.1     Share Purchase Agreement between Global and Niew Industries Inc., dated
December  1,  1999 (filed as exhibit 10(i) to our Registration Statement on Form
10SB  on  April  11,  2000,  and  incorporated  herein  by  reference)

10.2     Agreement  between  Ian  Westwood  and  Global,  dated November 8, 1999
(filed as exhibit 10(ii) to our Registration Statement on Form 10SB on April 11,
2000,  and  incorporated  herein  by  reference)

10.3     Amending  Agreement between Ian Westwood and Global, dated November 22,
2000

10.4     Assignment  of  Patents  between Niew Industries Inc. and Walter Niemi,
dated  November  7,  1999

10.5     Assignment between Niew Industries and Walter Niemi, dated December 13,
1998

10.6     Assignment  of Copyright between Niew Industries and Lloyd Olson, dated
April  19,  1999

(21)     Subsidiary

     Niew  Industries  Inc.  is  a  100%  wholly  owned  subsidiary  of  ours

<PAGE>
                                   SIGNATURES

     In  accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

     GLOBAL  INNOVATIVE  SYSTEMS,  INC.

     By:  /s/ Helge Freudentheil
          Helge  Freudentheil
          President  and  Director

     Date: January 11, 2001

     In  accordance  with the Exchange Act, this report has been signed below by
the  following  persons on behalf of the registrant and in the capacities and on
the  dates  indicated.

     By:  /s/ Helge Freudentheil
          Helge  Freudentheil
          President  and  Director

     Date: January 11, 2001


     By:  /s/ Ken Bergestad
          Ken  Bergestad
          Vice  President  and  Director

     Date: January 11, 2001

     By:  /s/ Walter Niemi
          Walter  Niemi
          Secretary,  Treasurer  and  Director

     Date: January 11, 2001

     By:  /s/ Robert Stark
          Robert  Stark
          Vice  President  and  Director

     Date: January 11, 2001