UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K/A [X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended 12/31/08 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 333-133961 Globalink, Ltd. -------------------------------------------- (Exact name of registrant as specified in its charter) NEVADA Not applicable ---------------------- ---------------------- (State or other jurisdiction (I.R.S. Employer of incorporation or organization Identification Number) #202 - 426 Main Street Vancouver, B.C. V6A 2T0 --------------------------------------------------- (Address of principal executive offices, Zip Code) (Registrant's telephone number, including area code) (604) 828-8822 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act. [ ] Yes [x] No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. [ ] Yes [ ] No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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. [x] Yes [ ] No Indicate by checkmark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, indefinitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [x] 2 Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [x] Indicate by check mark whether Globalink is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [x] Globalink revenues for its most recent fiscal year were $245,255. The market value of Globalink's voting common stock held by non-affiliates of Globalink was approximately $0.00. The number of shares outstanding of Globalink's only class of common stock, as of December 31, 2008 and February 28, 2010 was 24,785,000 shares and 24,785,000 shares of its common stock, respectively. No documents are incorporated into the text by reference. 3 Globalink, Ltd. Form 10-K/A For the Fiscal Year Ended December 31, 2008 Table of Contents Part I ITEM 1. BUSINESS 4 ITEM 1A. RISK FACTORS 7 ITEM 1B. UNRESOLVED STAFF COMMENTS 7 ITEM 2. PROPERTIES 7 ITEM 3. LEGAL PROCEEDINGS 7 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 7 Part II ITEM 5. MARKET FOR COMPANY'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS 8 ITEM 6. SELECTED FINANCIAL DATA 8 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 9 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 14 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 15 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 35 ITEM 9A. CONTROLS AND PROCEDURES 35 ITEM 9B. OTHER INFORMATION 36 Part III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE GOVERANCE; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT 37 ITEM 11. EXECUTIVE COMPENSATION 39 ITEM 12. SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERS MATTERS 39 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 40 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 41 ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 41 SIGNATURES 42 4 PART I ITEM 1. BUSINESS General The registrant was incorporated in the State of Nevada on February 3, 2006. The registrant has focused its efforts in the Internet Hotel booking services arena. The registrant has developed a proprietary online hotel booking program for connecting users with available rooms in hotels across the world. In order to gain the access to the hotels, the registrant acquired OneWorld Hotel Destination Service Inc in Vancouver, B.C. Canada on October 31, 2008. OneWorld Hotel Destination Service Inc is a hotel booking company which has established strong relationships with major hotel chains such as Radisson, Hilton and Sheraton. Its clients include travel agents in major cities such as Vancouver, Toronto, Calgary, and Montreal. After the acquisition, the registrant intends to put the OneWorld operations into the online platform. Effective October 31, 2008, the registrant issued 2,000,000 shares of common stock and a notes payable to acquire all of the outstanding stock of OneWorld Hotel Destination Services, Inc. Operations Globalink intends to develop and operate an internet hotel booking website to provide online hotel booking services for travel agencies, leisure and small business travelers. This hotel booking website will feature traveler oriented interfaces which will allow travel agencies and travelers to make reservation for the hotel accommodation online. The site will provide easy access to the description of the hotel and real time rates with availability of access 24 hours a day and 7 days a week. The customers can book and confirm their hotel rooms instantaneously from anywhere in the world. This hotel booking website will offer one-stop updated hotel booking and reservation services. The peak season in hotel booking is from November to March and from July to September every year. We will first attract the local customers and hotel suppliers to our Internet hotel booking web site. We will provide a vendor marketplace for the hotel vendors to log in and allow them to post their available hotel rooms & prices on the website. An interface will be provided to each hotel listing their rooms with us so that the hotel management can upload daily the latest rates and latest availability of rooms onto the website. To encourage more hotels to utilize this website, we will waive the membership fee for the hotels to join into this network. We will only charge approximately 10% commission from the hotels if the booking transaction takes place in this hotel booking web site. The customer and business travelers will be able to login to the website to search for the hotel room availability, real-time pricing, 5 hotel information, hotel reservation, and hotel confirmation. Each customer will have their own account to keep track of his travel information. The web site will provide special hot deals and travel packages to the customers. For the return customers, the award points will be earned and credited to their accounts. Discount voucher and free hotel room will be awarded when their points reach the reward level. In order to make our web site a comfortable place for the customers and hotel vendors to use, we will build an underlying technology infrastructure that enables the transactions through our websites to be processed in a quick, reliable, scalable and secure environment. Competition. The online commerce market, particularly over the Internet, is new, rapidly evolving and intensely competitive, and we expect that the competition will intensify in the future. Barriers to entry are minimal, and current and new competitors can launch new websites at a relatively low cost. We believe while we currently may have disadvantages in this market, the growth of this market is able to allow us to take a market share if we can maintain reliable, fast response, and quality service to our customers and hotel suppliers. We will compete on the basis of ease of use, pricing and customer preference. Our competitors are well established, substantially larger and have substantially greater market recognition, greater resources and broader capabilities than we have. There can be no assurance that we will be able to compete successfully against current and future competitors, and competitive pressures faced by Globalink may have a material adverse effect on our business, prospects, financial condition and results of operations. Marketing Strategy Our objective is to make this internet hotel booking web site to gain a market presence and become one of the leading online hotel booking web sites in local and international markets with time. In order to achieve our objective, we need to meet the following events or milestones in the next twelve months: - We must complete the internet hotel booking web site within six months. The activities include purchasing and putting into place the necessary electronic infrastructure to support our website; developing the software and programs to operate both our website and our referral database; and testing and fine tuning the functionality of our website. - We must promote our website. We will pursue an aggressive brand awareness strategy which includes a substantial advertising presence in the media, such as newsprints, online media, and radio and television as well as public billboards. We need to attract an increasingly number of customers to use our web site. 6 - Another major crucial factor to make this web site a success is the strong relationship with the hotel suppliers. We will work closely with the hotel suppliers to give us input to design the easy tools to facilitate suppliers' entry of pricing, availability and description information directly into our marketplace. We intend to first sign up at least few hotel suppliers to use our hotel booking website after the completion of site. Our directors and officers have contacted a few hotel suppliers locally to solicit their interests in using our hotel booking web site. Although we have had preliminary discussions with a few suppliers who had shown interest in our project and although they could materially affect our operations, we currently do not have any affiliation or contractual obligations with these suppliers. We cannot be certain whether any of these companies will use our services. We plan to place the underlying infrastructure and functionality to our websites. The stability of the backbone of the website is important to prevent and minimize the down-time of the web site. Any down-time may cause us to loss the customers and the confidence of the hotel suppliers. It will substantially affect the company and may impair our operation. We will also establish a reliable system to verify the transaction order, providing a comfortable place for the customers and the hotel suppliers to use. For the first year of operation, the marketing costs will depend on the amount of funding raised in this offering. Management is of the opinion that we will need to raise $625,000 to achieve net income producing operations. To achieve brand awareness, we intend to allocate the following amounts: - If $625,000 is raised, we will allocate $125,000 for market and advertising which will consist of minimal local exposure through billboards, television and radio spots, news media and travel magazines. - If $1,250,000 is raised, we will allocate $300,000 for market and advertising which will consist of local exposure through billboards, television and radio spots, news media and travel magazines. Additionally, we can launch separate marketing schemes to different populated cities, not necessarily in the same country. - If $2,500,000 is raised, we will allocate $563,000 for marketing and brand exposure which will include local exposure through billboards, television and radio spots, news media and travel magazines. Additionally, we will launch separate marketing schemes to one or two affluent cities outside of the United States. - If the total offering amount is raised, we will allocate $1,200,000 for marketing and brand exposure which will include local exposure through billboards, television and radio spots, news media and travel magazines. Additionally, we will increase our brand awareness in additional cities 7 Employees We presently have no full-time employees and no part-time employees. We intend to enter into employment agreements with our officers. Terms and conditions of these agreements have not yet been determined. ITEM 1A. RISK FACTORS Not applicable to smaller reporting companies. ITEM 1B. UNRESOLVED STAFF COMMENTS Not applicable ITEM 2. PROPERTIES Our executive offices of approximately 600 square feet are located at 426 Main Street, 2nd Floor, Vancouver, B.C., V6A 2T4. We have a signed sublease for the property with the main tenant with freedom to vacate as desired. The registrant leases its administrative offices for US$938 per month. The lease expires in May 2011. The operating lease expense for the year ended December 31, 2008 was $1,876. Future minimum lease payments are as follows: Fiscal year Ended December 31, 2009 $11,256 2010 11,256 2011 11,256 ------- 33,768 ======= ITEM 3. LEGAL PROCEEDINGS. The registrant is aware of no pending or threatened litigation. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. During the fourth quarter of the fiscal year ended December 31, 2008, no matters were submitted to a vote of Globalink's security holders, through the solicitation of proxies. 8 PART II ITEM 5. MARKET FOR COMPANY'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Item 5(a) a) Market Information. Our common stock is listed on the NASDAQ bulletin board under the symbol GOBK as of December 20, 2007 and the first trade was made on March 6, 2008. The following table sets forth the range of high and low bid quotations for the registrant's common stock. The quotations represent inter- dealer prices without retail markup, markdown or commission, and may not necessarily represent actual transactions. Quarter Ended High Bid Low Bid 3/31/08 1.00 .75 6/30/08 1.20 .80 9/30/08 1.01 .11 12/31/08 .16 .05 b) Holders. At March 31, 2009, there were approximately 62 shareholders of the registrant. c) Dividends. Holders of the registrant's common stock are entitled to receive such dividends as may be declared by its board of directors. No dividends on the registrant's common stock have ever been paid, and the registrant does not anticipate that dividends will be paid on its common stock in the foreseeable future. d) Securities authorized for issuance under equity compensation plans. No securities are authorized for issuance by the registrant under equity compensation plans. e) Performance graph. Not applicable. f) Sale of unregistered securities. None. Item 5(b) Use of Proceeds. Not applicable. Item 5(c) Purchases of Equity Securities by the issuer and affiliated purchasers. None. Item 6. SELECTED FINANCIAL DATA. Not applicable to a smaller reporting company. 9 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Trends and Uncertainties. During 2008, we started generating revenue upon completion of the acquisition of OneWorld Hotel Destination Services, Inc. We acquired all of the common shares of OneWorld for 2,000,000 common shares and a promissory note. In addition, we are seeking to expand our revenue base by adding new customers and increasing our marketing and advertising. We will need net revenues of a minimum of $315,000 over the next twelve months to continue operations. This amount is based on minimum expenditures for wages, marketing, legal and accounting, equipment purchases, to substantially complete our online hotel rooms reservation program website development, office expenses and travel and promotion. We do generate sufficient cash flow to maintain continuous skeleton operations. This is due to our officers and directors agreement to defray cash compensation, the continuation of the development of the website in-house by the directors, the defraying of marketing, promotion and travel and the merger of our offices with OneWorld. OneWorld currently generates sufficient cash flow to maintain its own daily operation. However, in order to realize effective marketing and promotion, Globalink will need to raise the addition capital through the sale of capital stock. The use of funds would be rationed for marketing and promotion purposes, expansion of the OneWorld operation and working capital needs. Failure to expand our revenue base may result in Globalink depleting our available funds and not being able to pay our obligations. There are several known trends that are reasonably likely to have a material effect on our net sales or revenues alongside our income from continuing operations and profitability. We expect to experience significant fluctuations in our future 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 develop and complete the hotel booking website. - Our ability to attract customer to use our web site and maintain user satisfaction; - Our ability to attract hotel suppliers to post their hotel rooms in our web site. - Our ability to maintain our projected 10% commission profit from the hotel suppliers. - Our ability to hire and train qualified personnel. - Our ability to resolve any technical difficulties and system downtime or Internet disconnection. - Governmental regulations on use of Internet as a tool to conduct business transaction. - Change of customer's acceptance to use Internet to book hotel rooms. 10 We may also incur losses for the foreseeable future due to costs and expenses related to: - The implementation of our hotel booking web site business model; - Marketing and other promotional activities; - Competition - The continued development of our website; - High cost to maintain the hotel booking web site, and - Hiring and training new staff for customer services. We cannot be sure that we will be successful in addressing these risks and uncertainties and our failure to do so could have a materially adverse effect on our financial condition. In addition, our operating results are dependent to a large degree upon factors outside of our control. There are no assurances that we will be successful in addressing these risks, and failure to do so may adversely affect our business. Capital and Source of Liquidity. Globalink, Ltd. Prior to the acquisition of OneWorld, all of Globalink's operating capital has either been advanced by current shareholders or from proceeds for the issuance on common shares. For the year ended December 31, 2008, Globalink received advances from shareholders of $3,092. As a result, Globalink had net cash from financing activities of $3,092 for the year ended December 31, 2008. For the year ended December 31, 2008, Globalink acquired capital assets of $7,865 and issued a note payable for the purchase of OneWorld for $469,800 and had purchase effects of the subsidiary of $62,115. As a result, the registrant had cash flows from investing activities of $399,820 for the year ended December 31, 2008. OneWorld Hotel Destination Services, Inc. For the four months ended October 31, 2008, OneWorld repaid $88,234 of its advances from shareholders and paid a cash dividend of $28,108. As a result, OneWorld had cash flows used in financing activities of $116,342 for the three months ended October 31, 2008. For the four months ended October 31, 2008, OneWorld sold capital assets of $1,365 resulting in cash flows from investing activities of $1,365. For the twelve months ended June 30, 2008, OneWorld had an increase in advances from shareholders of $55,058 and paid a cash dividend of $9,834 resulting in cash flows from financing activities of $45,224. For the twelve months ended June 30, 2008, OneWorld purchased capital assets of $2,941 resulting in cash flows used in investing activities of $2,941. 11 For the twelve months ended June 30, 2007, OneWorld repaid advances from shareholders of $9,262 resulting in cash flows used in financing activities of $9,262. For the twelve months ended June 30, 2007, OneWorld purchased capital assets of $3,128 resulting in cash flows used in financing activities of $3,128. Results of Operations Globalink, Ltd. For the year ended December 31, 2008, Globalink revenues of $245,255 with cost of sales of $225,790 resulting in gross margin of $19,465. The net loss for the year ended December 31, 2008 is $72,291. Expenses consisted of wages and salaries of $26,290, exchange losses of $33,375 and other administrative expenses of $36,111. These amounts increased over 2007 due to the acquisition of OneWorld. OneWorld Hotel Destination Services, Inc. For the four months ended October 31, 2008, OneWorld received revenue of $97,996. For the four months ended October 31, 2008, OneWorld incurred expenses of $73,207. These expenses consisted of wages and salaries of $44,366 and other administrative expenses of $28,821. Net income for the period was $19,598. For the twelve months ended June 30, 2008, OneWorld received revenue of $311,342. For the twelve months ended June 30, 2008, OneWorld incurred expenses of $311,992. These expenses consisted of wages and salaries of $162,982 and other administrative expenses of $149,101. Other income received was $137,572. Net income for the period was $119,371. Comparatively, for the twelve months ended June 30, 2007, OneWorld received revenue of $283,551. For the twelve months ended June 30, 2007, OneWorld incurred expenses of $249,606. These expenses consisted of wages and salaries of $133,233 and other administrative expenses of $116,373. Other income received was $51,006. Net income for the period was $94,951. Wages and salaries increased from June 30, 2007 to June 30, 2008 due to increased operations. Other administrative expenses decreased from June 30, 2007 to June 30, 2008 due to management's efforts to limit its expenses. Other income increased from $51,006 in 2007 to $119,371 due to increased operations. We are currently working on the hotel booking website. The initial structure and preliminary functions are done. More work will be required before the site can be used and tested. Actual hotel listings will need to be incorporated. Off-Balance Sheet Arrangements The registrant had no material off-balance sheet arrangements as of December 31, 2008. 12 Contractual Obligations The registrant has no material contractual obligations New Accounting Pronouncements In May 2008, the Financial Accounting Standards Board ("FASB") issued SFAS No. 163, "Accounting for Financial Guarantee Insurance Contracts- and interpretation of FASB Statement No. 60". SFAS No. 163 clarifies how Statement 60 applies to financial guarantee insurance contracts, including the recognition and measurement of premium revenue and claims liabilities. This statement also requires expanded disclosures about financial guarantee insurance contracts. SFAS No. 163 is effective for fiscal years beginning on or after December 15, 2008, and interim periods within those years. SFAS No. 163 has no effect on the registrant's financial position, statements of operations, or cash flows at this time. In May 2008, the Financial Accounting Standards Board ("FASB") issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting Principles". SFAS No. 162 sets forth the level of authority to a given accounting pronouncement or document by category. Where there might be conflicting guidance between two categories, the more authoritative category will prevail. SFAS No. 162 will become effective 60 days after the SEC approves the PCAOB's amendments to AU Section 411 of the AICPA Professional Standards. SFAS No. 162 has no effect on the registrant's financial position, statements of operations, or cash flows at this time. In March 2008, the Financial Accounting Standards Board, or FASB, issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities-an amendment of FASB Statement No. 133. This standard requires companies to provide enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. This Statement is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The registrant has not yet adopted the provisions of SFAS No. 161, but does not expect it to have a material impact on its consolidated financial position, results of operations or cash flows. In December 2007, the SEC issued Staff Accounting Bulletin (SAB) No. 110 regarding the use of a "simplified" method, as discussed in SAB No. 107 (SAB 107), in developing an estimate of expected term of "plain vanilla" share options in accordance with SFAS No. 123 (R), Share-Based Payment. In particular, the staff indicated in SAB 107 that it will accept a company's election to use the simplified method, regardless of whether the company has sufficient information to make more refined estimates of expected term. At the time SAB 107 was issued, the staff believed that more detailed external information about employee exercise behavior (e.g., employee exercise patterns by industry and/or other categories of companies) would, over time, become readily 13 available to companies. Therefore, the staff stated in SAB 107 that it would not expect a company to use the simplified method for share option grants after December 31, 2007. The staff understands that such detailed information about employee exercise behavior may not be widely available by December 31, 2007. Accordingly, the staff will continue to accept, under certain circumstances, the use of the simplified method beyond December 31, 2007. The registrant currently uses the simplified method for "plain vanilla" share options and warrants, and will assess the impact of SAB 110 for fiscal year 2009. It is not believed that this will have an impact on the Company's consolidated financial position, results of operations or cash flows. In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements-an amendment of ARB No. 51. This statement amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. Before this statement was issued, limited guidance existed for reporting noncontrolling interests. As a result, considerable diversity in practice existed. So-called minority interests were reported in the consolidated statement of financial position as liabilities or in the mezzanine section between liabilities and equity. This statement improves comparability by eliminating that diversity. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008 (that is, January 1, 2009, for entities with calendar year-ends). Earlier adoption is prohibited. The effective date of this statement is the same as that of the related Statement 141 (revised 2007). The registrant will adopt this Statement beginning March 1, 2009. It is not believed that this will have an impact on the registrant's consolidated financial position, results of operations or cash flows. In December 2007, the FASB, issued FAS No. 141 (revised 2007), Business Combinations.' This Statement replaces FASB Statement No. 141, Business Combinations, but retains the fundamental requirements in Statement 141. This Statement establishes principles and requirements for how the acquirer: (a) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree; (b) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and (c) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. This statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. An entity may not apply it before that date. The effective date of this statement is the same as that of the related FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements. The Company will adopt this statement beginning March 1, 2009. It is not believed that this will have an impact on the registrant's consolidated financial position, results of operations or cash flows. 14 In February 2007, the FASB, issued SFAS No. 159, The Fair Value Option for Financial Assets and Liabilities-Including an Amendment of FASB Statement No. 115. This standard permits an entity to choose to measure many financial instruments and certain other items at fair value. This option is available to all entities. Most of the provisions in FAS 159 are elective; however, an amendment to FAS 115 Accounting for Certain Investments in Debt and Equity Securities applies to all entities with available for sale or trading securities. Some requirements apply differently to entities that do not report net income. SFAS No. 159 is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of the previous fiscal year provided that the entity makes that choice in the first 120 days of that fiscal year and also elects to apply the provisions of SFAS No. 157 Fair Value Measurements. The registrant will adopt SFAS No. 159 beginning March 1, 2008 and is currently evaluating the potential impact the adoption of this pronouncement will have on its consolidated financial statements. In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements. This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, this statement does not require any new fair value measurements. However, for some entities, the application of this statement will change current practice. This statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Earlier application is encouraged, provided that the reporting entity has not yet issued financial statements for that fiscal year, including financial statements for an interim period within that fiscal year. The registrant will adopt this statement March 1, 2008, and it is not believed that this will have an impact on the registrant's consolidated financial position, results of operations or cash flows. ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk. Globalink does not have any significant market risk exposures. 15 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA GLOBALINK CORP. Index to Financial Statements Page ---------- Report of Independent Registered Public Accounting Firm 16 Balance Sheet December 31, 2008 and OneWorld October 31, 2008, June 30, 2008 and June 30, 2007 17 Statements of Operations for the year ended December 31, 2008 and OneWorld October 31, 2008, June 30, 2008 and June 30, 2007 19 Statement of Stockholders' Deficit for the year ended December 31, 2008 20 Statements of Cash Flows for the year ended December 31, 2008, OneWorld October 31, 2008, June 30, 2008 and June 30, 2007 22 Notes to Financial Statements December 31, 2008 24 16 [Letterhead of Thomas J. Harris, CPA] REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Board of Directors GLOBALINK, LTD. Vancouver, B. C., Canada We have audited the balance sheets of GLOBALINK, LTD. AND SUBSIDIARY, as at DECEMBER 31, 2008 and OneWorld Hotel Destination Service, Inc. at October 31, 2008, June 30, 2008 and 2007, and the statements of earnings and deficit, stockholders' deficiency and cash flows for the periods then ended. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of GLOBALINK LTD. AND SUBSIDIARY, as of December 31, 2008 and OneWorld Hotel Destination Service, Inc. as of October 31, 2008, June 30, 2008 and 2007 and the results of its operations and its cash flows for the periods then ended in conformity with generally accepted accounting principles accepted in the United States of America. Also, management has elected to record the merger with OneWorld showing OneWorld as the predecessor. This change necessitated substantial changes to the operations for prior periods as shown in Note 8. /s/Thomas J. Harris, CPA --------------------------- Thomas J Harris, CPA April 13, 2009 except November 19, for showing of One World as the predecessor 17 Globalink, Ltd. and Subsidiary Consolidated Balance Sheet December 31, 2008 and OneWorld October 31, 2008, June 30, 2008 and June 30, 2007 (Expressed in U.S. Dollars) OneWorld Hotel Destination Services, Inc. ----------------------------------------- 2008** 10/31/08 06/30/08 06/30/07 ASSETS ---- -------- -------- -------- Current assets: Cash $ 579,464 $ 609,764 $ 835,316 $ 759,513 Term deposit - 13,240 15,690 14,076 Accounts receivable trade 109,406 252,698 148,185 261,884 Other Receivable 28,743 24,981 - 2,806 Other Current Assets 22,383 17,223 15,642 19,329 ---------- ---------- ---------- ---------- Total current assets 739,995 928,906 1,014,833 1,057,607 ---------- ---------- ---------- ---------- Fixed assets, net of accumulated depreciation 17,909 8,555 9,192 9,596 ---------- ---------- ---------- ---------- Goodwill 274,449 - - - ---------- ---------- ---------- ---------- TOTAL ASSETS $1,032,353 $ 937,461 $1,024,025 $1,067,203 ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrual $ 338,776 $ 560,262 $ 553,761 $ 756,468 Notes payable OneWorld Acquisition 469,800 - - - Dividends payable - - 19,668 - Other current liabilities 2,974 1,848 3,307 5,568 ---------- ---------- ---------- ---------- Total current liabilities 861,550 562,110 576,736 762,036 ---------- ---------- ---------- ---------- OTHER LIABILITIES: Advances from Shareholders 30,390 - 52,253 - ---------- ---------- ---------- ---------- Total other liabilities 30,390 - 52,253 - ---------- ---------- ---------- ---------- TOTAL LIABILITIES 891,940 562,110 628,989 762,036 ---------- ---------- ---------- ---------- STOCKHOLDERS' EQUITY: Common stock, $.0002 par value, 500,000,000 shares authorized and 24,785,000 shares issue and outstanding 4,957 - - - Common Stock authorized, issued and outstanding 1,000,000 shares 6,362 6,362 6,362 Preferred Stock authorized, issued and outstanding 1,000,000 shares - 6,362 6,362 6,362 Paid-in Surplus 403,243 - - - 18 Retained earnings (267,787) 362,587 382,272 292,403 ---------- ---------- ---------- ---------- Total Stockholders' Equity 140,413 375,351 395,036 305,167 ---------- ---------- ---------- ---------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $1,032,353 $ 937,461 $1,024,025 $1,067,203 ========== ========== ========== ========== The accompanying notes are an integral part of these statements. 19 GLOBALINK, LTD. and Subsidiary Consolidated Statement of Operations December 31, 2008 and OneWorld October 31, 2008, June 30, 2008 and June 30, 2007 (Expressed in U.S. Dollars) OneWorld Hotel Destination Services, Inc. ----------------------------------------- For year For four For twelve For twelve ended Months ended Months ended Months ended 12/31/08 10/31/08 06/30/08 06/30/07 ------------ ------------ ------------ ------------ Revenue $ 38,768 $ 97,996 $ 311,342 $ 283,551 Expenses Wages & salaries 26,290 44,386 162,982 133,233 Expenses from subsidiary 67,915 - - - Other administrative expenses 34,521 28,821 149,010 116,373 ---------- ---------- ---------- ---------- 128,726 73,207 311,992 249,606 ---------- ---------- ---------- ---------- Income (deficit) from operations (89,958) 24,789 (650) 33,945 ---------- ---------- ---------- ---------- Other income and expenses (16,873) (5,191) 137,572 51,006 ---------- ---------- ---------- ---------- Income before income taxes (106,831) 19,598 136,922 84,951 Income tax - - 17,551 14,208 ---------- ---------- ---------- ---------- Income for the period $ (106,831) $ 19,598 $ 119,371 $ 70,743 ========== ========== ========== ========== Basic and Diluted Loss per Share (0.0046) 0.0196 0.1194 0.0707 ========== ========== ========== ========== Weighted Number of Common Shares 23,451,667 1,000,000 1,000,000 1,000,000 ---------- ---------- ---------- ---------- **The December 31, 2008 income includes the two months operations of OneWorld Hotel Destinations, Inc. The accompanying notes are an integral part of these statements. 20 GLOBALINK, LTD. and Subsidiary Consolidated Statement of Stockholders' Equity (Deficit) For The Years Ended December 31, 2008 and 2007 (Expressed in U.S. Dollars) Number of Common Preferred Paid In shares Stock Stock Surplus --------- ------- ---------- ------- Balance - June 30, 2006 2,000,000 $ 6,382 $ 6,382 $ - Net Income 2007 - - - - ----------------------------------------- Balance at June 30, 2007 2,000,000 6,382 6,382 - Dividends paid - - - - Net income 2008 - - - - ------------------------------------------ Balance at June 30, 2008 2,000,000 6,382 6,382 - Effects of merger - - - - Net income July 1, 2008 through October 31, 2008 - - - - ------------------------------------------ Balance at October 31, 2008 2,000,000 $ 6,382 $ 6,382 $ - ========================================== Globalink, Ltd. and Subsidiary Effect of 5 for 1 stock split and Reduction of par value to .0002 22,785,000 4,557 - 223,643 Shares issued in acquisition of OneWorld Hotel Destination Services, Inc. 2,000,000 400 - 179,600 Net Loss for the year ended December 31, 2008 - - - - ------------------------------------------ Balance at December 31, 2008 24,785,000 $ 4,557 $ - $403,243 ========================================== The accompanying notes are an integral part of these statements. 21 GLOBALINK, LTD. and Subsidiary Consolidated Statement of Stockholders' Equity (Deficit) For The Years Ended December 31, 2008 and 2007 (Expressed in U.S. Dollars) Continued Total Retained Stockholders' Earnings Equity -------- ------------- Balance - June 30, 2006 $ 221,660 $ 234,424 Net Income 2007 70,743 70,743 --------------------------- Balance at June 30, 2007 282,403 305,167 Dividends paid (29,502) (29,502) Net income 2008 119,371 118,371 --------------------------- Balance at June 30, 2008 382,272 395,036 Effects of merger (39,283) (39,283) Net income July 1, 2008 through October 31, 2008 19,598 19,598 --------------------------- Balance at October 31, 2008 $ 362,587 $ 375,351 =========================== Globalink, Ltd. and Subsidiary Effect of 5 for 1 stock split and Reduction of par value to .0002 (160,956) 67,244 Shares issued in acquisition of OneWorld Hotel Destination Services, Inc. - 180,000 Net Loss for the year ended December 31, 2008 (106,831) (106,831) --------------------------- Balance at December 31, 2008 $(267,787) $ 140,413 =========================== The accompanying notes are an integral part of these statements. 22 GLOBALINK, LTD. and Subsidiary Consolidated Statement of Cash Flows For the years ended December 31, 2008 and 2007 (Expressed in U.S. Dollars) OneWorld Hotel Destination Services, Inc. ----------------------------------------- For year For four For twelve For twelve ended Months ended Months ended Months ended 12/31/08 10/31/08 06/30/08 06/30/07 ------------ ------------ ------------ ------------ Cash Flows from Operating Activities Profit(loss) for the period $(106,831) $ 10,598 $ 119,371 $ 70,743 Less Depreciation not requiring Use of funds 3,421 2,002 3,344 2,615 Net loss on exchange transactions (16,672) (42,367) - (4,437) Income taxes (paid)/refunded - - 8,179 (8,370) Net changes in working capital balances (Increase)/decrease accounts receivable (109,406) (104,513) 113,699 (105,170) Other Receivable (28,743) - - - (Increase)/decrease in other current assets (22,383) 3,905 (2,877) (1,063) Increase/(decrease) in accounts payable and accruals 341,749 6,502 (202,707) 364,243 (Due to)/refunded government agencies - 1,848 (3,875) 4,092 Directors' services paid in shares - - - - --------- --------- --------- --------- Cash flows provided/(used) in operating activities 60,935 (113,025) 35,134 322,653 --------- --------- --------- --------- Cash Flows from Financing Activities Increase/(decrease) in advances from shareholders 3,092 (88,234) 55,058 (9,282) Cash dividend - (28,108) (9,834) - Share capital issued - - - - --------- --------- --------- --------- Cash flows from financing activities 3,092 (116,342) 45,224 (9,282) --------- --------- --------- --------- Cash Flows from Investing Activities Acquisition of capital assets (7,865) 1,365 (2,941) (3,128) Note payable for purchase of sub 469,800 - - - Purchase effects of subsidiary (27,575) - - - Cash from acquisition of Subsidiary - - - - --------- --------- --------- --------- Cash flows from (used in) Investing activities 434,369 1,365 (2,941) (3,128) --------- --------- --------- --------- Net (Decrease) Increase in Cash And Cash Equivalents 498,387 (228,002) 77,417 310,243 23 Cash and Cash Equivalents at Beginning of Period 81,077 851,006 773,589 463,346 --------- --------- --------- --------- Cash and Cash Equivalents at End of Period $ 579,464 $ 623,004 $ 851,006 $ 773,589 ========= ========= ========= ========= Represented by: Cash 579,464 609,764 835,316 759,513 Term - 13,240 15,690 14,076 --------- --------- --------- --------- $ 579,464 $ 623,004 $ 851,006 $ 773,589 ========= ========= ========= ========= The accompanying notes are an integral part of these statements. 24 GLOBALINK LTD. and Subsidiary Notes to Financial Statements December 31, 2008 (Expressed in U.S. Dollars) 1. Nature of Operations GLOBALINK LTD. was incorporated in the State of Nevada on February 3, 2006. GLOBALINK has focused its efforts in the Internet Hotel booking services arena. The Company has developed a proprietary online hotel booking program for connecting users with available rooms in hotels across the world. In order to gain the access to the hotels, GLOBALINK LTD. acquired OneWorld Hotel Destination Service Inc in Vancouver, B.C. Canada on October 31, 2008. OneWorld Hotel Destination Service Inc is a hotel booking company which has established strong relationships with major hotel chains such as Radisson, Hilton and Sheraton. Its clients include travel agents in major cities such as Vancouver, Toronto, Calgary, and Montreal. After the acquisition the Company intends to put the OneWorld operations into the online platform. - - - Accounting Policies 2. Accounting Policies The financial statements have been prepared in accordance with generally accepted accounting principles accepted in the United States of America and reflect the following policies: - - - a) Translation of foreign currencies Monetary assets and liabilities in foreign currencies are translated into United States dollars at the prevailing year-end exchange rates. Revenue and expense items are translated at the average rates in effect during the month of transaction. Resulting exchange gains and losses on transactions are included in the determination of earnings for the year. The exchange loss for this period from January 1 to December 31, 2008 is $151. b) Financial instruments The company's financial instruments consist of accounts receivable, accounts payable, directors' fees payable and advances from shareholders. It is management's opinion that the company is not exposed to significant interest rate risk arising from these financial instruments and that their carrying values approximate their fair values. 25 GLOBALINK LTD. and Subsidiary Notes to Financial Statements December 31, 2008 (Expressed in U.S. Dollars) c) Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles accepted in the United States of America requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses for the year reported. Actual results could differ from those estimates. d) Stock-based compensation FAS 123(r), Accounting for Stock-based compensation requires companies to record compensation cost for stock-based employee compensation to be measured at the grant date, and not subsequently revised. The company has chosen to continue to account for stock-based compensation using the provisions of FAS 123(r). In addition the company's policy is to account for all stock based transactions in conformance with FAS 123R. e) Income taxes The company utilizes the asset and liability method for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The company provides a valuation allowance on net deferred tax assets when it is more likely than not that such assets will be realized. Currently the Company does not have any proven periods of profitability. With the purchase of OneWorld Hotel Destination Services, Inc., the Company has projected profitability in the following years. When this profitability is realized the company will enact Statements of Financial Accounting Standards regarding Accounting for Income Taxes. f) Basic and diluted loss per share Basic loss per common share is based upon the net loss for the year divided by the weighted average number of common shares outstanding during the year. - - - Such effect was not dilutive in any of the years presented. g) Revenue recognition Revenue is recorded when the corresponding expense can be recognized. Due to this matching principle revenue is reported by the net proceeds of the services performed as required by EIFT 99-19. h) Accounts receivable Trade receivables are carried at original invoice amount. Accounts receivable are written off to bad debt expense using the direct write- 26 GLOBALINK LTD. and Subsidiary Notes to Financial Statements December 31, 2008 (Expressed in U.S. Dollars) off method. Receivables past due for more than 120 days are considered delinquent. Management determines uncollectible accounts by regularly evaluating individual customer receivables and considering a customer's financial condition, credit history, and current economic conditions and by using historical experience applied to an aging of accounts. Recoveries of trade receivables previously written off are recorded when received. 3. Restated statements The financial statements have been revised due to management's determination that the merger of the Company with OneWorld Hotel Destination Services, Inc. which was originally shown without the creation of Goodwill was incorrect. In addition OnewWorld has been changed to the predecessor company. The statements have been revised for the creation of Goodwill. All statements since October 31, 2008, date of merger, have been revised for this correction. The quarterly statements have been restated up to and including September 30, 2009. The following table represents the effects of the restated statements as of December 31, 2008: Restated Original 2008 2008 -------- -------- Sales 247,685 247,685 Loss (106,831) (72,291) Common Stock 4,957 4,957 Paid in Surplus 403,243 128,794 Retained Deficit (267,787) (267,787) Earnings Per Share (0.0046) (0.0031) 4. Fixed assets Furniture, fixtures and equipment are recorded at cost. Depreciation is provided annually at rates calculated to write off the assets over their estimated useful lives as follows, except in the year of acquisition when one half of the rate is used. The Company uses an accelerated method of depreciating their assets over their useful lives. Computer equipment acquired before March 24, 2004 30%, declining balance Computer equipment acquired after March 23, 2004 45%, declining balance Furniture and equipment 20%, declining balance Leasehold improvements 20%, straight line 27 GLOBALINK LTD. and Subsidiary Notes to Financial Statements December 31, 2008 (Expressed in U.S. Dollars) 5. Advances from Shareholders Advances from shareholders are for the reimbursement of expenses incurred on behalf of the company by the three principal shareholders and they bear no interest due. These notes are short term advances which are paid generally within one year. The balance at December 31, 2008 is $30,390. 6. Operating Leases The Company leases its administrative offices for US$938 per month. The lease expires in May 2011. The operating lease expense for the year ended December 31, 2008 was $1,876. Future minimum lease payments are as follows: Fiscal year Ended June 30, 2009 $11,256 2010 11,256 2011 11,256 ------- $33,768 ======= The Company leases a motor vehicle under an operating lease for a term of 48 months from June 21, 2005 at a monthly payment of US$537 excluding taxes. Future minimum payments are as follows: Fiscal year ending June 30, 2009 $6,450 28 GLOBALINK LTD. and Subsidiary Notes to Financial Statements December 31, 2008 (Expressed in U.S. Dollars) Supplemental information - consolidated statements OneWorld Globalink 12/31/08 12/31/08 Eliminations Consolidated -------- -------- ------------ ------------ ASSETS Current Assets: Cash $ 513,856 $ 65,608 - $579,464 Accounts receivable 109,405 - - 109,405 Other receivable 28,743 - - 28,743 Investment in subsidiary - 341,976 (341,976) - Other current assets 22,383 - - 22,383 --------- --------- --------- ---------- Total current assets 674,387 407,584 (341,976) 739,995 Fixed assets, net Of accumulated depreciation 7,379 10,530 - 17,909 Goodwill - 274,449 - 274,449 --------- --------- --------- ---------- TOTAL ASSETS $ 681,766 $ 692,563 $(341,976) $1,032,353 ========= ========= ========= ========== LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities Accounts payable $ 311,377 $ 77,399 $ - $ 388,776 Notes payable - 469,800 - 469,800 Other current liabilities 28,413 4,951 - 33,364 --------- --------- --------- ---------- Total current liabilities 339,790 552,150 - 891,940 Shareholders Equity Common stock 16,400 4,957 (16,400) 4,957 Paid in surplus - 403,243 - 403,243 Retained earnings/(deficit) 325,576 (267,787) (325,576) (267,787) --------- --------- -------- ---------- Total shareholders equity 341,976 140,413 (341,976) 140,413 --------- --------- -------- ---------- TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 681,766 $ 692,563 $(341,976) $1,032,353 ========= ========= ========= ========== January through December 31, 2008 One World** Global Eliminations Consolidated Revenue: 36,768 - - 36,768 Expenses: Wages and salaries 26,290 - - 26,290 Subsidiary expenses - 67,915 - 67,915 Other administrative expenses 11,065 23,456 - 34,521 -------- ---------- ---------- --------- Total expenses 37,355 91,371 - 128,726 -------- ---------- ---------- --------- 29 GLOBALINK LTD. and Subsidiary Notes to Financial Statements December 31, 2008 (Expressed in U.S. Dollars)(continued) Income/(loss) from operations 1,413 (91,371) - (89,958) Other income/(expenses) (16,873) - - (16,873) -------- ---------- ---------- --------- Income before income taxes (15,460) (91,371) - (106,873) Income taxes - - - - -------- ---------- ---------- --------- Net income/(loss) $(15,460) $(91,371) $ - $(106,873) ======== ======== ========== ========= ** The OneWorld income includes only the amounts since acquisition November 1, 2008 through December 31, 2008. 8. Business Combination Effective October 31, 2008, the Company - - - issued 2,000,000 shares of common stock and a notes payable to acquire all of the outstanding stock of OneWorld Hotel Destination Services, Inc. The purchase is being accounted for as an acquisition as required by SFAS No. 141. Due to SFAS No. 141, OneWorld Hotel Destination Services, Inc. is considered the predecessor company. Goodwill has been recorded and listed as another asset. The purchase is being reported and operating as a wholly owned subsidiary of the parent company. Following is the proforma balance sheet and income statement as of the acquisition date, October 31, 2008: OneWorld Globalink 10/31/08 10/31/08 Eliminations Consolidated -------- -------- ----------- ------------ ASSETS Current Assets: Cash $ 623,005 $ 66,080 - $689,085 Accounts receivable 252,698 - - 252,949 Investment in subsidiary - 375,351 375,351 - Other current assets 17,224 - - 17,224 --------- --------- --------- ---------- Total current assets 892,927 441,682 375,351 959,258 Other Assets: Goodwill - 274,449 - 274,449 Other current assets 44,536 11,020 - 55,556 --------- --------- --------- ---------- TOTAL ASSETS $ 937,463 $ 727,151 $ 375,351 $1,289,263 ========= ========= ========= ========== 30 GLOBALINK LTD. and Subsidiary Notes to Financial Statements December 31, 2008 (Expressed in U.S. Dollars) LIABILITIES AND SHAREHOLDERS EQUITY Current Liabilities Accounts payable $ 560,263 $ 1,280 $ - $ 561,543 Other current liabilities 1,849 500,100 - 501,949 --------- --------- --------- ---------- Total current liabilities 562,112 501,380 - 1,063,492 Shareholders Equity Common stock 6,382 4,957 (6,382) 4,957 Paid in surplus - 403,243 - 403,243 Preferred stock 6,382 - (6,382) - Retained earnings/(deficit) 362,587 (182,429) (362,587) (182,429) --------- --------- -------- --------- Total shareholders equity 375,351 225,771 (375,351) 225,771 --------- --------- -------- --------- TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 937,463 $ 727,151 $(375,351) $1,289,263 ========= ========= ========= ========== January through October 31, 2008 One World ** Global Eliminations Consolidated Revenue 97,996 - - 97,996 Expenses: Wages and salaries 44,386 - - 44,386 Other administrative expenses 28,821 8,990 - 37,811 ---------- ---------- ---------- ---------- Total expenses 73,207 8,990 - 82,197 ---------- ---------- ---------- ---------- Income/(loss) from operations 24,789 (8,990) - 15,799 Other income/(expenses) (5,191) 1,088 - (4,103) ---------- ---------- ---------- ---------- Income before income taxes 19,598 (7,902) - 11,696 Income taxes - - - - ---------- ---------- ---------- ---------- Net income/(loss) $ 19,598 $ (7,902) $ - $ 11,696 ---------- ---------- ---------- ---------- ** OneWorld is reported for the four months ended October 31, 2008. 9. Capital Stock Authorized 500,000,000 Common shares with $0.0002 par value Issued 24,785,000 shares to founders. The Company issued 2,625,000 shares for cash of $.0133333 per share in the amount of $35,000 and 1,125,000 shares for services at $.10 in the amount of $112,500 in 2006. 31 GLOBALINK LTD. and Subsidiary Notes to Financial Statements December 31, 2008 (Expressed in U.S. Dollars) The Company also issued 807,000 shares at $.10 in the amount of $80,700 for cash under the filing with the Securities and Exchange Commission of the United States in 2007. The Company has split its common stock on a 5 for 1 basis on July 1, 2008. The Company has issued 2,000,000 shares to Vincent Au in exchange for 100% of his shares in One World Hotel Destination Service, Inc. on October 31, 2008. 10. Net Revenue The Company follows the reporting requirements of EIFT 99-19, which requires revenue to be reported net after costs. Following is the gross revenue and expenses for the period ending December 31, 2008 and 2007. 12/31/2008 12/31/2007 ---------- ---------- Gross Revenue $247,685 $ 0 Cost of Revenue 208,917 0 -------- -------- $ 38,768 0 ======== ======== 11. New accounting pronouncements: In May 2008, the Financial Accounting Standards Board ("FASB") issued SFAS No. 163, "Accounting for Financial Guarantee Insurance Contracts- and interpretation of FASB Statement No. 60". SFAS No. 163 clarifies how Statement 60 applies to financial guarantee insurance contracts, including the recognition and measurement of premium revenue and claims liabilities. This statement also requires expanded disclosures about financial guarantee insurance contracts. SFAS No. 163 is effective for fiscal years beginning on or after December 15, 2008, and interim periods within those years. SFAS No. 163 has no effect on the Company's financial position, statements of operations, or cash flows at this time. In May 2008, the Financial Accounting Standards Board ("FASB") issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting Principles". SFAS No. 162 sets forth the level of authority to a given accounting pronouncement or document by category. Where there might be conflicting guidance between two categories, the more authoritative category will prevail. SFAS No. 162 will become effective 60 days after the SEC approves the PCAOB's amendments to AU Section 411 of the AICPA Professional Standards. SFAS No. 162 has no effect on the Company's financial position, statements of operations, or cash flows at this time. 32 GLOBALINK LTD. and Subsidiary Notes to Financial Statements December 31, 2008 (Expressed in U.S. Dollars) In March 2008, the Financial Accounting Standards Board, or FASB, issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities-an amendment of FASB Statement No. 133. This standard requires companies to provide enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity's financial position, financial performance, and cash flows. This Statement is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The Company has not yet adopted the provisions of SFAS No. 161, but does not expect it to have a material impact on its consolidated financial position, results of operations or cash flows. In December 2007, the SEC issued Staff Accounting Bulletin (SAB) No. 110 regarding the use of a "simplified" method, as discussed in SAB No. 107 (SAB 107), in developing an estimate of expected term of "plain vanilla" share options in accordance with SFAS No. 123 (R), Share-Based Payment. In particular, the staff indicated in SAB 107 that it will accept a company's election to use the simplified method, regardless of whether the company has sufficient information to make more refined estimates of expected term. At the time SAB 107 was issued, the staff believed that more detailed external information about employee exercise behavior (e.g., employee exercise patterns by industry and/or other categories of companies) would, over time, become readily available to companies. Therefore, the staff stated in SAB 107 that it would not expect a company to use the simplified method for share option grants after December 31, 2007. The staff understands that such detailed information about employee exercise behavior may not be widely available by December 31, 2007. Accordingly, the staff will continue to accept, under certain circumstances, the use of the simplified method beyond December 31, 2007. The Company currently uses the simplified method for "plain vanilla" share options and warrants, and will assess the impact of SAB 110 for fiscal year 2009. It is not believed that this will have an impact on the Company's consolidated financial position, results of operations or cash flows. In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements-an amendment of ARB No. 51. This statement amends ARB 51 to establish accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. Before this statement was issued, limited guidance existed for reporting noncontrolling interests. As a result, considerable diversity in practice existed. So-called minority interests were 33 GLOBALINK LTD. and Subsidiary Notes to Financial Statements December 31, 2008 (Expressed in U.S. Dollars) reported in the consolidated statement of financial position as liabilities or in the mezzanine section between liabilities and equity. This statement improves comparability by eliminating that diversity. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008 (that is, January 1, 2009, for entities with calendar year-ends). Earlier adoption is prohibited. The effective date of this statement is the same as that of the related Statement 141 (revised 2007). The Company will adopt this Statement beginning March 1, 2009. It is not believed that this will have an impact on the Company's consolidated financial position, results of operations or cash flows. In December 2007, the FASB, issued FAS No. 141 (revised 2007), Business Combinations.' This Statement replaces FASB Statement No. 141, Business Combinations, but retains the fundamental requirements in Statement 141. This Statement establishes principles and requirements for how the acquirer: (a) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree; (b) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and (c) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. This statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. An entity may not apply it before that date. The effective date of this statement is the same as that of the related FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements. The Company will adopt this statement beginning March 1, 2009. It is not believed that this will have an impact on the Company's consolidated financial position, results of operations or cash flows. In February 2007, the FASB, issued SFAS No. 159, The Fair Value Option for Financial Assets and Liabilities-Including an Amendment of FASB Statement No. 115. This standard permits an entity to choose to measure many financial instruments and certain other items at fair value. This option is available to all entities. Most of the provisions in FAS 159 are elective; however, an amendment to FAS 115 Accounting for Certain Investments in Debt and Equity Securities applies to all entities with available for sale or trading securities. Some requirements apply differently to entities that do not report net income. SFAS No. 159 is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of the previous fiscal year provided that the entity makes that choice in the first 120 days of that fiscal year and also elects to apply the provisions of SFAS No. 157 Fair Value Measurements. The Company will adopt SFAS No. 159 beginning March 1, 2008 and is currently evaluating the potential impact the adoption of this pronouncement will have on its consolidated financial statements. 34 GLOBALINK LTD. and Subsidiary Notes to Financial Statements For The Period from January 1, 2008 to December 31, 2008 (Expressed in U.S. Dollars) In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements. This statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, this statement does not require any new fair value measurements. However, for some entities, the application of this statement will change current practice. This statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Earlier application is encouraged, provided that the reporting entity has not yet issued financial statements for that fiscal year, including financial statements for an interim period within that fiscal year. The Company will adopt this statement March 1, 2008, and it is not believed that this will have an impact on the Company's consolidated financial position, results of operations or cash flows. These new accounting pronouncements are not currently expected to have a material effect on our financial Statements, except as noted above. 35 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None ITEM 9A. CONTROLS AND PROCEDURES. Controls and Procedures. Evaluation of Disclosure Controls and Procedures: We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act that are designed to insure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), or the persons performing similar functions, to allow timely decisions regarding required disclosure. Under the supervision and with the participation of our CEO and CFO, or the persons performing similar functions, our management has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this annual report. Based on that evaluation, our CEO and CFO, or the persons performing similar functions, concluded that our disclosure controls and procedures were not effective as of December 31, 2008. The registrant originally filed its Form 10-K for the year ended December 31, 2008 on April 15, 2009. Miscommunications between the registrant and its experts led to delays in the resolution of SEC comments and the necessity of a revision of the accounting treatment for the acquisition of OneWorld Hotel Destination Service and other related disclosures. Management has implemented additional internal controls to ensure that similar situations do not occur in the future. Management's Annual Report on Internal Control over Financial Reporting: Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is the process designed by and under the supervision of our CEO and CFO, or the persons performing similar functions, to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our financial statements for external reporting in accordance with accounting principles generally accepted in the United States of America. Management has evaluated the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control over Financial Reporting - Guidance for Smaller Public Companies. 36 Under the supervision and with the participation of our CEO and CFO, or the persons performing similar functions, our management has assessed the effectiveness of our internal control over financial reporting as of December 31, 2008, and concluded that it is not effective due to the reasons discussed above. This annual report does not include an attestation report of the registrant's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the registrant's registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the registrant to provide only management's report in this annual report. Evaluation of Changes in Internal Control over Financial Reporting: Under the supervision and with the participation of our CEO and CFO, or those persons performing similar functions, our management has evaluated changes in our internal controls over financial reporting that occurred during the fourth quarter of 2008. Based on that evaluation, our CEO and CFO, or those persons performing similar functions, did not identify any change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B. OTHER INFORMATION. None 37 PART III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. Our bylaws provide that the number of directors who shall constitute the whole board shall be such number as the board of directors shall at the time have designated. We confirm that the number of authorized directors has been set at three (3) pursuant to our bylaws. Each director shall be selected for a term of one year and until his successor is elected and qualified. Vacancies are filled by a majority vote of the remaining directors then in office with the successor elected for the unexpired term and until the successor is elected and qualified. The directors and executive officers are as follows: NAME AGE POSITIONS HELD SINCE Robin Young 66 President/Director Inception to Present Ben Choi 54 Treasurer/Director Inception to Present Daniel Lo 43 Secretary/Director Inception to Present Business Experience of Officers and Directors Robin Young, President and Director, has been the principal of Young Engineering Corporation, an engineering consultant firm for the building industry since 1975. He has also been the president of Landtek Properties Ltd., a development company since 1994 and Coreng Construction Corporation, a company providing project and construction management as well as general contracting from 1976 to 1990. Mr. Young was listed in the "Who's Who in British Columbia" and "International Who's Who of Professionals". Mr. Young received a bachelor of applied science degree in civil engineering from the University of British Columbia in 1963. He conducted his post-graduate studies both at McGill University and at Concordia University and received his master's degree in civil and structural engineering in 1970 from Concordia University. Ben Choi, Treasurer and Director is a software development consultant. From 2001 to present, Mr. Choi has been project manager of NewViews Health Care Consultants Ltd, a company which develops health care software programs. He has also been the project leader of developing Pharmacy Claims Adjudicate Software, a Health Canada, Non-Insurance Health Benefit Pilot project & Medical Transportation Software for Alberta Regional Health Department. Mr. Choi has extensive consulting experiences in the technology fields including network services, hardware and software sales and implementation. Mr. Choi received a 38 Bachelor of Science degree from the University of Winnipeg in 1976. In 1988, he took courses in computer programming and data processing at the University of Alberta. Daniel Lo, Secretary and Director has been the president of LCF Advanced Technology Ltd which is a leading computer hardware solution company in Western Canada since 1996. LCF is an Intel Premier Partner and Microsoft Certified partner. In 1998, Mr. Lo led LCF to become an ISO 2002 company and upgraded the company into the new ISO 2001:2000 standard in 2003. The ISO 2001:2000 standard is an international quality management system which ensures consistency and improvement of working practices, including the products and services product. In 1986, Mr. Lo received his business administration degree in finance from Simon Fraser University, BC. Section 16(a) Beneficial Ownership Reporting Compliance Under Section 16(a) of the Securities Exchange Act of 1934, as amended, an officer, director, or greater-than-10% shareholder of the registrant must file a Form 4 reporting the acquisition or disposition of registrant's equity securities with the Securities and Exchange Commission no later than the end of the second business day after the day the transaction occurred unless certain exceptions apply. Transactions not reported on Form 4 must be reported on Form 5 within 45 days after the end of the registrant's fiscal year. Such persons must also file initial reports of ownership on Form 3 upon becoming an officer, director, or greater-than-10% shareholder. To our knowledge, based solely on a review of the copies of these reports furnished to it, the officers, directors, and greater than 10% beneficial owners complied with all applicable Section 16(a) filing requirements during 2008. Code of Ethics Policy The registrant has prepared but has not yet adopted a code of ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. Corporate Governance. There have been no changes in any state law or other procedures by which security holders may recommend nominees to our board of directors. In addition to having no nominating committee for this purpose, we currently have no specific audit committee and no audit committee financial expert. Based on the fact that our current business affairs are simple, any such committees are excessive and beyond the scope of our business and needs. 39 ITEM 11. EXECUTIVE COMPENSATION Since inception in February 2006, we have issued 375,000 shares of the company securities to each of the president, secretary and treasurer as compensation for their services performed to and on behalf of the company. No executive compensation in cash has been made. We may elect to award a cash bonus to key employees, directors, officers and consultants based on meeting individual and corporate planned objectives. We have not entered into any employment agreements with our officers, however, we estimate that the executive officers will be paid an annual salary of $84,000 each. Option/SAR Grants in the Last Fiscal Year. There have not been any options /SAR grants made by Globalink since inception. Directors Compensation. We do not have any standard arrangements by which directors are compensated for any services provided as a director. No cash has been paid to the directors in their capacity as such. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERS MATTERS The following table sets forth, as of December 31, 2008, the number and percentage of outstanding shares of Globalink common stock owned by (i) each person known to us to beneficially own more than 5% of its outstanding common stock, (ii) each director, (iii) each named executive officer, and (iv) all officers and directors as a group. 40 Name of Beneficial Owners Common Stock Beneficially Owned Percentage(1) Robin Young 3,750,000 15.13% 426 Main Street Suite #202 Vancouver, B.C. V6A 2T4 Ben Choi 3,750,000 15.13% 426 Main Street Suite #202 Vancouver, B.C. V6A 2T4 Daniel Lo 3,750,000 15.13% 333 - 13988 Cambie Road Richmond, B.C. Canada V6V 2K4 Directors and Officers, as a group(3 persons) 11,250,000 15.13% Barry Phillips 3,750,000 15.13% 7903 - 93a Ave. Edmonton, Alberta T6C 1V2 Petula Wong 3,750,000 15.13% Rm C 12/F 55 Tong Mi Road Kowloon, Hong Kong Vincent Au 2,000,000 8.07% 426 Main Street Suite #202 Vancouver, B.C. V6A 2T4 (1) Based upon 24,785,000 issued and outstanding as of December 31, 2008. All the above-named officers and directors would be deemed to be promoters of Globalink. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE Shareholder Advanced. Advances from shareholders are for the reimbursement of expenses incurred on behalf of Globalink by Robin Young and Ben Choi, officers and directors of Globalink and they bear no interest. These notes are short term advances which are paid generally within one year. The balance at December 31, 2008 is $30,390. Director Independence. The registrant's board of directors consists of Robin Young, Ben Choi and Daniel Lo. None of them is independent as such term is defined by a national securities exchange or an inter-dealer quotation system. During 41 the fiscal year ended December 31, 2008, there were no transactions with related persons other than as described in the section above entitled "Item 11. Executive Compensation". ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Audit Fees. We incurred aggregate fees and expenses of $15,000 and $1,750 from Thomas J. Harris, CPA, respectfully for the 2008 and 2007 fiscal years. Such fees included work completed for our annual audit and for the review of our financial statements included in our Forms 10-K and 10-QSB. Tax Fees. We did not incur any aggregate tax fees and expenses from Thomas J. Harris, CPA for the 2008 and 2007 fiscal years for professional services rendered for tax compliance, tax advice, and tax planning. All Other Fees. We incurred audit related fees of $0 and $0 from Thomas J. Harris, CPA during fiscal 2008 and 2007. The Board of Directors, acting as the Audit Committee considered whether, and determined that, the auditor's provision of non-audit services was compatible with maintaining the auditor's independence. All of the services described above for fiscal years 2008 and 2007 were approved by the Board of Directors pursuant to its policies and procedures. We intend to continue using Thomas J. Harris, CPA solely for audit and audit-related services, tax consultation and tax compliance services, and, as needed, for due diligence in acquisitions. ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES (a)(1) List of Financial statements included in Part II hereof Report of Independent Registered Public Accounting Firm Balance Sheet December 31, 2008 and OneWorld October 31, 2008, June 30, 2008 and June 30, 2007 Statements of Operations for the year ended December 31, 2008 and OneWorld October 31, 2008, June 30, 2008 and June 30, 2007 Statement of Stockholders' Deficit for the year ended December 31, 2008 Statements of Cash Flows for the year ended December 31, 2008, OneWorld October 31, 2008, June 30, 2008 and June 30, 2007 Notes to Financial Statements December 31, 2008 (a)(2) List of Financial Statement schedules included in Part IV hereof: None 42 (a)(3) Exhibits The following of exhibits are filed with this report: (31) 302 certifications (32) 906 certifications SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, Globalink has duly caused this Report to be signed on its behalf by the undersigned duly authorized person. Dated: May 25, 2010 /s/Robin Young ------------------------------ By: Robin Young, President/CEO In accordance with the requirements of the Securities Exchange Act of 1934, as amendment, this report has been signed by the following persons in the capacities and on the dates stated. Globalink, Inc. (Registrant) By: /s/Robin Young Dated: May 25, 2010 ---------------------- Robin Young Director, Chief Executive Officer (As a duly authorized officer on behalf of the Registrant and as Principal Executive Officer) By: /s/Ben Choi Dated: May 25, 2010 ---------------------- Ben Choi Chief Financial Officer, Controller and Director By: /s/Daniel Lo Dated: May 25, 2010 ---------------------- Daniel Lo Director