XOTC:GLER Quarterly Report 10-Q Filing - 2/29/2012

Effective Date 2/29/2012

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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

_____________________________________

FORM 10-Q

[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended February 29, 2012


[  ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



Commission File No. 0-31343

_____________________________________

GLOBAL EARTH ENERGY, INC.

(Exact name of registrant as specified in its charter)


Nevada

(State or other jurisdiction of

incorporation or organization)

36-4567500

(I.R.S. Employer Identification Number)

1213 Culberth Drive, Wilmington, North Carolina

(Address of principal executive offices)

28405

(Zip Code)

(910) 616-0077

(registrant’s telephone number, including area code)


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 requirement for the past 90 days.  Yes [X]   No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes [X]  No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check One):

Large accelerated filer [  ]

Accelerated filer [  ]

Non-accelerated filer [  ]

Smaller reporting company [X]


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

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.  At April 18, 2012, the registrant had outstanding 726,798,492 shares of common stock.

 



.


Table of Contents

PART I


Item 1.  Financial Statements.

1

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations.

22

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

23

Item 4.  Controls and Procedures.

23

Item 4(T).  Controls and Procedures.

23

PART II


Item 1.  Legal Proceedings.

25

Item 1a.  Risk Factors.

25

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

25

Item 3.  Defaults Upon Senior Securities.

25

Item 4.  Submission of Matters to a Vote of Security Holders.

25

Item 5.  Other Information.

25

Item 6.  Exhibits.

26




i


PART I – FINANCIAL INFORMATION


Item 1.

Financial Statements.



GLOBAL EARTH ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

Wilmington, North Carolina


FINANCIAL REPORTS

AT

FEBRUARY 29, 2012





GLOBAL EARTH ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

Wilmington, North Carolina



TABLE OF CONTENTS



Consolidated Balance Sheets at  February 29, 2012 (Unaudited)

  and August 31, 2011                                                                                                               1


Consolidated Statements of Operations for the Three and Six Months Ended

  February 29, 2012 and February 28, 2011 and for the Period from the Date

  the Company Re-entered   the Development Stage (March 1, 2010) Through

  February 29, 2012 (Unaudited)

2


Consolidated Statements of Cash Flows for the Six Months Ended February 29, 2012

 and February 28, 2011 and for the Period from the Date the Company  Re-entered the

 Development Stage (March 1, 2010) Through February 29, 2012 (Unaudited)                                 3


Notes to Consolidated Financial Statements

            4 - 22


 
 






GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina

CONSOLIDATED BALANCE SHEETS


    
    
 

(Unaudited)

  
 

February 29,

 

August 31,

 

2012

 

2011

    

ASSETS

   

Current Assets

   

Cash and Cash Equivalents

$         117

 

$         9,574

    

Total Assets

$         117

 

$         9,574

    

LIABILITIES AND STOCKHOLDERS' DEFICIT

   

Current Liabilities

   

Note Payable – Related Party

$    287,500

 

$    236,500

Note Payable

30,000

 

15,000

Convertible Notes Payable, Net of discounts of $-0- and $20,703

7,000

 

6,797

Accrued Expenses

268,784

 

227,743

Due to Joint Venture

101,250

 

101,250

Derivative Liabilities

34,338

 

163,934

Accrued Interest ($533,597 and $415,791  owed to related parties)

535,023

 

416,542

Accrued Compensation – Directors

3,114,248

 

2,809,968

Due to Directors

280

 

400

    

Total Liabilities

4,378,423

 

3,978,134

    

Stockholders' Deficit

   

Common Stock :  $.001 Par; 844,828,987 Shares Authorized;

   

                           726,828,492 and 709,471,574 Issued and

                           726,798,492 and 709,441,574 Outstanding,

                           respectively          

726,829

 

709,472

    

Stock Held in Escrow:  17,755,968 and 104,347,446 Held in Escrow,

                                     Respectively

(79,902)

 

(775,554)

    

Common Stock, Class B:  $.001 Par; 5,171,013 and 50,000,000

              Shares Authorized; -0- Issued and Outstanding, respectively

––

 

    

Preferred Stock, Class A:  $.001 Par; 10,000 Shares Authorized; -0-

                           Issued and Outstanding

––

 

––

    

Preferred Stock, Class B:  $.001 Par; 5,000,000 Shares Authorized;

   

                          3,000,000 Issued and Outstanding,

3,000

 

3,000

Preferred Stock, Class C:  $.001 Par; 15,000,000 Shares

     

               Authorized;  -0-  Issued and Outstanding

––

 

Preferred Stock, Class D:  $.001 Par;  13,000,000 Shares

     

                            Authorized;  -0- Issued and Outstanding

––

 

       

Additional Paid-In-Capital

13,081,703

 

13,642,134

Accumulated Deficit

 (7,419,591)

 

 (7,419,591)

Accumulated Deficit Since Re-Entering the Development Stage

 (10,687,345)

 

 (10,125,021)

Treasury Stock – 30,000 Shares at Cost

 (3,000)

 

 (3,000)

       

Total Stockholders' Deficit

(4,378,306)

 

(3,968,560)

       

Total Liabilities and Stockholders' Deficit

$         117

 

$       9,574


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



- 1 -


GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)



         
     
    

Period From

    

Date of re-entering the Development Stage

 

Three Months Ended

 

Six Months Ended

March 1, 2010

 

February 29,

 

February 28,

 

February 29,

 

February 28,

Through

 

2012

 

2011

 

2012

 

2011

February 29, 2012

         

Revenues, Net

$           ––

 

$           ––

 

$          ––

 

$           ––

$          ––

         

Cost of Goods Sold

 

 

 

         

Gross Profit

 

 

 

         

Expenses

        

Compensation Expense

––

 

––

 

––

 

––

4,082,781

Consulting Fees

152,745

 

219,111

 

430,245

 

511,155

2,790,342

General and Administrative

60,275

 

184,917

 

108,323

 

251,972

1,007,364

Impairment Loss

––

 

––

 

––

 

––

1,273,191

Interest Expense

81,753

 

89,084

 

162,954

 

140,472

611,715

Loss on Conversion

––

 

180,000

 

––

 

180,000

180,000

(Gain) Loss on Derivative

(9,516)

 

162,689

 

(139,198)

 

162,689

725,448

         

Total Expenses

285,257

 

835,801

 

562,324

 

1,246,288

10,670,841

         

Loss from Operations Before

        

  Provision for Taxes

(285,257)

 

(835,801)

 

(562,324)

 

(1,246,288)

(10,670,841)

         

Provision for Taxes

 

 

 

         

Loss from Operations

(285,257)

 

(835,801)

 

(562,324)

 

(1,246,288)

 (10,670,841)

         

Discontinued Operations

        

Loss from Discontinued Operations

 

 

 

 

 

(16,504)

         

Net Loss for the Period

$  (285,257)

 

$  (835,801)

 

$  (562,324)

 

$ (1,246,288)

$  (10,687,345)

         

Weighted Average Number of

        

  Common Shares Outstanding -

        

  Basic and Diluted

726,798,492

 

357,550,875

 

722,143,983

 

259,156,558

 

Net Loss Per Common Share -

        

  Basic and Diluted

 $       (0.00)

 

 $       (0.01)

 

 $       (0.00)

 

 $       (0.01)

 





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



- 2 -


GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)



   
  

Period From

  

Date of re-entering the Development Stage

 

For the Six Months Ended

March 1, 2010

 

February 29,

 

February 28,

Through

 

2012

 

2011

February 29, 2012

     

Cash Flows from Operating Activities

    
     

Net Loss for the Period

$  (562,324)

 

$ (1,246,288)

$  (10,687,345)

     

Non-Cash Adjustments:

    

Bad Debt

––

 

––

66,750

Discontinued Operations

––

 

––

16,504

Imputed Interest on Related Party Note Payable

11,680

 

––

21,015

Preferred Stock Issued in Exchange for Services Rendered

––

 

––

600,000

Common Stock Issued in Exchange for Services Rendered

130,000

 

158,020

1,132,120

Common Stock Issued in Payment of Accrued Expenses

––

 

120,000

Compensation Expense – Stock Option Awards

––

 

––

4,082,781

Impairment Loss

––

 

––

1,273,139

Amortization of Debt Discount

20,703

 

28,585

132,500

Loss on Conversion of Accrued Expenses for Stock Payable

––

 

180,000

180,000

(Gain) Loss on Derivative

(139,198)

 

162,689

725,448

Changes in Assets and Liabilities:

    

Prepaid Expenses

––

 

52,820

110,875

Other Assets

––

 

––

(5,000)

Accrued Expenses

41,041

 

66,450

176,643

Accrued Interest

118,481

 

(585)

217,673

Accrued Compensation – Directors

304,280

 

296,950

1,472,267

     

Net Cash Flows from Operating Activities

(75,337)

 

(181,359)

(484,630)

     

Cash Flows from Investing Activities

    

Cash Paid to Joint Venture

––

 

       (18,750)

             (18,750)

     

Net Cash Flows from Investing Activities

––

 

        (18,750)

  (18,750)


Cash Flows from Financing Activities

    

Cash Proceeds from Convertible Debt

––

 

105,000

132,500

Cash Proceeds from Issuance of Debt

15,000

 

––

30,000

Cash Proceeds from Sale of Stock

––

 

––

72,658

Cash Proceeds from Issuance of Related Party Debt

51,000

 

130,500

294,623

Repayment of Related Party Debt

––

 

––

(20,673)

Advances from (Repayment to) Directors – Net

(120)

 

(13,950)

(5,901)

     

Net Cash Flows from Financing Activities

65,880

 

221,550

503,207

     

Net Change in Cash and Cash Equivalents

(9,457)

 

21,441

(173)

     

Cash and Cash Equivalents - Beginning of Period

9,574

 

70

290

     

Cash and Cash Equivalents - End of Period

$       117

 

$        21,511

$        117

     

Supplemental Disclosures

    

Interest Paid

  $    12,090

 

  $    112,472

  $     147,665

Income Taxes Paid

  $           —

 

  $             —

  $              —

     

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVIES:

    

Net Assets Acquired from Acquisition of 688239 B.C.

  $           —

 

  $           —

$     845,000

Common Stock Issued in Payment of Debt

  $           —

 

  $           —

$     350,435

Investment in Joint Venture & Due to Joint Venture

  $           —

 

$  120,000

$     120,000

Common Stock Issued for Investment in Joint Venture

  $           —

 

$  324,643

$     324,643

Common Stock Issued for Assets and Liabilities Assumed in Merger

  $           —

 

  $           —

$     845,000

Common Stock Issued to Relieve Accrued Expenses

  $           —

 

  $           —

$     136,400

Stock Payable Reclassed to Derivative Due to Tainted Equity

  $    45,700

 

  $           —

$     550,700

Discounts on Debt due to Derivative Liability

  $           —

 

  $           —

$     132,500

Common Stock Issued to Escrow

  $           —

 

  $           —

 $  1,245,117

Conversion of Preferred Stock

  $           —

 

  $           —

$         6,000

Derivative Liability Settled for Common Stock Issued

  $    36,098

 

  $           —

$  1,374,310

Common Stock Issued from Escrow for Conversion of

    

  Convertible Note Payable

$    20,500

 

  $           —

$     129,180




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



- 3 -




GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE A – Basis of Presentation

The condensed consolidated financial statements of Global Earth Energy, Inc. (the “Company”) included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).  Certain information and footnote disclosures normally included in financial statements prepared in conjunction with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the annual audited financial statements and the notes thereto included in the Company’s Form 10-K, and other reports filed with the SEC.


The accompanying unaudited interim financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented.  The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole.  Certain information that is not required for interim financial reporting purposes has been omitted.


The Company has changed its primary business objective from advisory services to the Renewable and Recoverable Energy Markets.  Consequently, the Company changed their name on February 5, 2008 to Global Earth Energy, Inc.


Principles of Consolidation

The consolidated financial statements include the accounts of Global Earth Energy, Inc., and its wholly owned subsidiary; Knightsbridge Corp. (the “Company”).  All significant inter-company balances have been eliminated in consolidation.


Note B -

Summary of Significant Accounting Policies

All significant accounting policies can be viewed on the Company’s annual report filed with the Securities and Exchange Commission.


Note C -  Recently Issued Accounting Standards

In September 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08, Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment. The guidance in ASU 2011-08 is intended to reduce complexity and costs by allowing an entity the option to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it should calculate the fair value of a reporting unit. The amendments also improve previous guidance by expanding upon the examples of events and circumstances that an entity should consider between annual impairment tests in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Also, the amendments improve the examples of events and circumstances that an entity having a reporting unit with a zero or negative carrying amount should consider in determining whether to measure an impairment loss, if any, under the second step of the goodwill impairment test. The amendments in this ASU are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entity’s financial statements for the most recent annual or interim period have not yet been issued. The adoption of this guidance is not expected to have a material impact on the Company’s financial position or results of operations.


- continued -




- 4 -




GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note C -  Recently Issued Accounting Standards - continued

In June 2011, the FASB issued ASU 2011-05, “Comprehensive Income (Topic 220): Presentation of Comprehensive Income”, which is effective for annual reporting periods beginning after December 15, 2011. ASU 2011-05 will become effective for the Company on March 1, 2012. This guidance eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. In addition, items of other comprehensive income that are reclassified to profit or loss are required to be presented separately on the face of the financial statements. This guidance is intended to increase the prominence of other comprehensive income in financial statements by requiring that such amounts be presented either in a single continuous statement of income and comprehensive income or separately in consecutive statements of income and comprehensive income. The adoption of ASU 2011-05 is not expected to have a material impact on our financial position or results of operations.


In May 2011, the FASB issued ASU 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”, which is effective for annual reporting periods beginning after December 15, 2011. This guidance amends certain accounting and disclosure requirements related to fair value measurements. Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity’s use of a nonfinancial asset that is different from the asset’s highest and best use, the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy. ASU 2011-04 will become effective for the Company on March 1, 2012. We are currently evaluating ASU 2011-04 and have not yet determined the impact that adoption will have on our financial statements.


In April 2011, the FASB issued ASU 2011-02, “Receivables (Topic 310): A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring”. This amendment explains which modifications constitute troubled debt restructurings (“TDR”). Under the new guidance, the definition of a troubled debt restructuring remains essentially unchanged, and for a loan modification to be considered a TDR, certain basic criteria must still be met. For public companies, the new guidance is effective for interim and annual periods beginning on or after June 15, 2011, and applies retrospectively to restructuring occurring on or after the beginning of the fiscal year of adoption. This guidance did not have a material impact on its financial statements.


Note D -  Going Concern

The Company’s consolidated financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has reported recurring losses from operations.  As a result, there is an accumulated deficit of $18,106,936 at February 29, 2012.


The Company’s continued existence is dependent upon its ability to raise capital or acquire a marketable company.  The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.




- 5 -




GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note E -  Share Activity

Stock Awards

   On October 18, 2008, Ed Gorman (member of the Board of Directors) was granted as compensation for services options to buy 40,000 shares of the Company’s preferred stock at the last quoted common stock offering price as of that day. A total of 40,000 options were granted at a price of $0.07.  These options were issued in error but were subsequently issued as preferred class A shares (see below).


On November 8, 2009, the Company’s attorney was granted as compensation for services options to buy 1,000,000 shares of the Company’s common stock at the last quoted common stock offering price as of that day. A total of 1,000,000 options were granted at a price of $0.027.


On May 26, 2010, the Board of Directors were each granted as compensation for services options to buy 1,000,000 shares of the Company’s common stock at the last quoted common stock offering price as of that day. A total of 6,000,000 options were granted at a price of $0.076.


On May 26, 2010 the Company’s Chief Financial Officer was granted as compensation for services options to buy 40,000 shares of the Company’s preferred class A stock at the last quoted common stock offering price as of that day times 200.  A total of 40,000 options were granted at a price of $15.20.  


On July 26, 2010, the Company’s President was granted as compensation for services options to buy 325,000 shares of the Company’s preferred class A stock at the last quoted common stock offering price as of that day times 200. A total of 325,000 options were granted at a price of $8.60.


On August 2, 2010, the Company’s attorney was granted as compensation for services warrants to buy 2,000,000 shares of the Company’s common stock at $0.035.  On April 5, 2011 these shares were cancelled and 2,000,000 shares were issued for relief of $11,000 of accrued amounts owed.  The grant date fair value of the shares was equal to the liability relieved.


On August 11, 2011 the four board members were granted as compensation for services options to buy common stock at the last quoted common stock offering price as of that day.  A total of 33,000,000 options were granted at a price of $0.0028. These options vested immediately and have a ten year contractual term.



- continued -





- 6 -




GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note E -  Share Activity – continued

Stock Awards




Common Stock




Shares Under

Option


Weighted

Average

Exercise

Price

 

Exercisable

     

2011

    

Balance - September 1, 2010

9,000,000

$0.027 - $0.076

 

9,000,000

Options Granted

­­­­––

­­­­––

 

­­­­––

Options Exercised

­­­­––

­­­­––

 

­­­­––

Options Forfeited

­­­­––

­­­­––

 

­­­­––

Balance – February 28, 2011

9,000,000

  

9,000,000

     
     

2012

    

Balance - September 1, 2011

42,000,000

$0.027 - $0.076

 

42,000,000

Options Granted

­­­­––

­­­­––

 

­­­­––

Options Exercised

­­­­––

­­­­––

 

­­­­––

Options Forfeited

­­­­––

­­­­––

 

­­­­––

Balance – February 29, 2012

42,000,000

  

42,000,000

     


Stock Awards

Stock Options - Preferred

Stock




Shares Under

Option


Weighted

Average

Exercise

Price

 

Exercisable

     

2012

    

Balance - September 1, 2011

365,000

$8.60 - $15.20

 

365,000

Options Granted

­­­­––

­­­­––

 

­­­­––

Options Exercised

­­­­––

­­­­––

 

­­­­––

Options Forfeited

­­­­––

­­­­––

 

­­­­––

Balance – February 29, 2012

365,000

  

365,000


Common StockOn March 2, 2010, a stockholder that is closely related to Betty-Ann and Sydney Harland (Chairman, and President, CEO and Director, respectively) converted 1,000,000 Preferred Class C shares to 1,000,000 common shares.


- continued -





- 7 -




GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note E -   Share Activity – continued

Common Stock

On April 30, 2010, the Company entered into an agreement with Richard Proulx (Director) as a Contractor.  Pursuant to the agreement the Contractor agrees to assist the Company in Sales for the Company in Quebec, Canada.  The term of the contract is for one year, expiring on April 30, 2011.  In consideration for his services, the Contractor received 2,000,000 common shares on April 30, 2010.  These shares were valued at $28,000 based on the closing price on the date of the grant.


On May 10, 2010, the Company and its wholly owned subsidiary, Global Earth Energy Acquisition Company, entered into an agreement to merge with 688239 B.C. Ltd., a British Columbia Corporation (688239 B.C.).  Pursuant to the agreement the Company issued 65,000,000 common shares to the sole stockholder of 688239 B.C. in exchange for the fair market value of certain assets and liabilities of 688239 B.C. On December 2, 2010 the merger with 688239 B.C. was rescinded and accounted for in the year ended August 31, 2010 (See Note – Discontinued Operations).


On June 22, 2010 the Company agreed to issue Sydney Harland (CEO and Director) 23,500,000 shares common stock in lieu of payment by the Company of $350,435 owed to Mr. Harland, included in due to directors.  The agreement was effective as of May 14, 2010.


On August 31, 2010, the Company resolved to adopt the Non-Employee Consultants Retainer Stock Plan for the Year 2010.  The purpose of the Plan is to enable the Company, to promote the interests of the Company and its stockholders by attracting and retaining non-employee consultants capable of furthering the future success of the Company and by aligning their economic interests more closely with those of the Company’s stockholders, by paying their retainer or fees in the form of shares of the Company’s common stock.  2,000,000 shares of common stock are registered to this plan at an offering price of $.026.  The Plan shall expire on August 31, 2020.


On September 9, 2010 Robert Levitt converted 30,000 Preferred Class A shares to 6,000,000 common shares.


In September of 2010 Norman Reynolds was issued 2,000,000 shares common stock in lieu of payment by the Company for legal services he provided as the Company’s attorney.  These shares were valued at $54,000 based on the value of the shares on the date of grant.


On September 27, 2010 Arthur Kelly and Gloria Leung were granted 2,000,000 and 1,000,000 shares of common stock, respectively for rewriting and updating the Company’s business plan.  These shares were valued at $78,000 based on the closing price on the date of the grant.


On September 27, 2010 Carolyn Merrill was granted 1,000,000 shares common stock from the Company as compensation as the Company’s accountant.  These shares were valued at $16,500 based on the closing price on the date of the grant.  


On October 1, 2010 the Company entered into an agreement with Geoffrey Eiten (Contractor).  Pursuant to the agreement the Contractor agrees to assist the Company in various industrial relations and marketing services. The term of the contract is for three months expiring on January 1, 2011.    In consideration for his services, the Contractor was granted 3,000,000 common shares on September 27, 2010.  These shares were valued at $49,500 based on the fair value of the shares on the grant date.




- continued -




- 8 -





GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note E -   Share Activity – continued

Common Stock

On October 5, 2010, 25,390,685 shares of common stock were placed into escrow pursuant to the convertible note agreement made with Asher Enterprises, Inc. These shares were recorded in Stock Held in Escrow account at a value of $253,907 based on the grant date fair value of the shares.   


During the fiscal year ended August 31, 2011 Robert Levitt agreed to accept 180,000,000 shares in lieu of payment of an accrued balance owed to him of $180,000. The value of the shares to be issued on the date of the agreement was $360,000 causing a loss of $180,000 for the conversion. This stock payable was later re-classed to the derivative liability due to the tainted equity environment and potential inability of the Company to share settle the instrument. As a result, the related value of the stock payable and issuances were re-valued at each issuance date and balance sheet date due to the mark to market requirements for the derivative liability.


On October 12, 2010 Robert Levitt was granted 9,000,000 shares of common stock in partial satisfaction of the 180,000,000 shares owed to him for prior consulting services. The value of the shares issued was $73,800. The related portion of the derivative liability was marked to this value and relieved to APIC upon issuance.  


On November 8, 2010, the Company resolved to adopt the Non-Employee Consultants Retainer Stock Plan for the Year 2010 No. 2.  The purpose of this Plan is to enable the Company, to promote the interests of the Company and its stockholders by attracting and retaining non-employee consultants capable of furthering the future success of the Company and by aligning their economic interests more closely with those of the Company’s stockholders, by paying their retainer or fees in the form of shares of the Company’s common stock.  50,000,000 shares of common stock are registered to this plan at an offering price of $.0029.  The Plan shall expire on November 8, 2020.


On November 8, 2010 Norman Reynolds was granted 6,000,000 shares common stock in lieu of payment by the Company for legal services he provided as the Company’s attorney. These shares were valued at $16,200 based on the value of the shares on the date of grant.


On November 23, 2010, 72,142,973 shares of common stock were granted to five shareholders to acquire 40% of the joint venture as determined pursuant to the joint venture agreement signed November 22, 2010 – see Note G.  Strategic Alliance, George Sinnis, Glenn Sturm, Atlantic Station and Raymond F. Barbush III received 62,642,973; 2,000,000; 500,000; 2,000,000 and 5,000,000 shares respectively. The fair value of the shares based on the agreement date was $324,643 and was capitalized as a part of the joint venture asset.


On October 11, 2010 AGS was granted 10,000,000 shares common stock valued at $110,000 as part of their investment agreement executed October 5, 2010. The shares were expensed upon grant and the agreement was later dissolved.


On December 3, 2010 Robert Levitt received 10,000,000 shares common stock in partial satisfaction of the 180,000,000 shares owed to him for prior consulting services. The value of the shares issued was $179,000. The related portion of the derivative liability was marked to this value and relieved to APIC upon issuance.  



- continued -



- 9 -





GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note E -   Share Activity – continued

Common Stock

On December 9, 2010, 77,200,206 shares of common stock were placed into escrow pursuant to the convertible note agreement made with Asher Enterprises, Inc. These shares were recorded in Stock

                Held in Escrow account at a value of $772,002 based on the grant date fair value of the shares.


On December 21, 2010, Norman Reynolds was granted 6,000,000 shares of common stock in lieu of payment by the Company for legal services he provided as the Company’s attorney.  These shares were valued at $30,000 based on the closing price on the date of the grant.     


On December 21, 2010 Spiros Sinnis was granted 3,600,000 shares of common stock for his consultant work pertaining to the Joint Venture agreement between the Company and Reflora do Brasil.  These shares were valued at $15,120 based on the closing price on the date of the grant.


On January 11, 2011 Robert Levitt was granted 22,000,000 shares of common stock of the 180,000,000 shares owed. The value of the shares issued was $154,000. The related portion of the derivative liability was marked to this value and relieved to APIC upon issuance.  


On January 31, 2011 Norman Reynolds was granted 3,000,000 shares common stock in lieu of payment by the Company for legal services he provided as the Company’s attorney.  These shares were valued at $10,500 based on the closing price on the date of the grant.     


On January 26, 2011 the Company entered into an agreement with Spiros Sinnis (Contractor).  Pursuant to the agreement the Contractor agrees to assist the Company in connection with strategic transactions. The term of the contract is for twelve months expiring on January 26, 2012. In consideration for his services, the Contractor was granted 6,000,000 common shares on January 31, 2011. These shares were valued at $19,200 based on the closing price on the date of the grant. The shares were expensed upon grant due to being fully vested.  


On January 26, 2011 the Company entered into an agreement with Andrew Madenberg (Contractor).  Pursuant to the agreement the Contractor agrees to assist the Company in connection with strategic transactions. The term of the contract is for twelve months expiring on January 26, 2012. In consideration for his services, the Contractor was granted 6,000,000 common shares on January 26, 2011. These shares were valued at $19,200 based on the closing price on the date of the grant. The shares were expensed upon grant due to being fully vested.    


On February 9, 2011 GFC 2005 was granted 7,500,000 shares common stock valued at $34,500 as part of their joint venture agreement executed February 9, 2011. The shares were expensed on the grant date based on the agreement being terminated shortly thereafter.


 On February 10, 2011 Robert Levitt received 15,000,000 shares common stock in partial satisfaction of 180,000,000 shares owed. The value of the shares issued was $315,000. The related portion of the derivative liability was marked to this value and relieved to APIC upon issuance.


On February 25, 2011 Norman Reynolds was granted 3,000,000 shares common stock in lieu of payment by the Company for legal services he provided as the Company’s attorney.  These shares were valued at $30,000 based on the closing price on the date of the grant.  


- continued -

    



- 10 -






GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note E -   Share Activity – continued

Common Stock

On February 25, 2011 Carolyn Merrill was granted 3,000,000 shares of common stock in lieu of payment by the Company for compensation as the Company’s accountant.  These shares were valued at $60,000 based on the closing price on the date of the grant.


On March 2, 2011 Marie Fay was granted 1,300,000 shares common stock for services rendered.  These shares were valued at $13,000 based on the closing price on the date of the grant.


For the quarter ended May 31, 2011 Spiros Sinnis was granted 17,000,000 shares for services rendered in connection with his consultant contract.  These shares were valued at $92,000 based on the closing price on the date of the grants.


For the quarter ended May 31, 2011 Andrew Madenberg was granted 17,000,000 shares for services rendered in connection with his consultant contract.  These shares were valued at $92,000 based on the closing price on the date of the grants.


On February 1, 2011 the Company entered into an agreement with Geoffrey Eiten (Contractor).  Pursuant to the agreement the Contractor agrees to assist the Company in various industrial relations and marketing services. The term of the contract is for six months expiring on August 1, 2011.    In consideration for his services, the Contractor was granted 2,000,000 common shares on February 1, 2011. These shares were valued at $9,200 based on the value of the shares on the grant date.


On May 13, 2011 Norman Reynolds was granted 12,000,000 shares common stock in lieu of payment by the Company for legal services he provided as the Company’s attorney.  These shares were valued at $57,600 based on the closing price on the date of the grant.


On April 27, 2011, 48,712,801 shares of common stock were placed into escrow pursuant to the convertible note agreement made with Asher Enterprises, Inc. These shares were recorded in Stock

               Held in Escrow account at a value of $219,208 based on the grant date fair value of the shares.


On August 2, 2010, the Company’s attorney was granted as compensation for services warrants to buy 2,000,000 shares of the Company’s common stock at $0.035.  On April 5, 2011 these shares were cancelled and 2,000,000 shares were issued for relief of $11,000 of accrued amounts owed.  The grant date fair value of the shares was equal to the liability relieved.


For the quarter ended May 31, 2011 Robert Levitt received 45,000,000 shares common stock in partial satisfaction of 180,000,000 shares owed. The value of the shares issued was $318,500. The related portion of the derivative liability was marked to this value and relieved to APIC upon issuance.    


On May 24, 2011, the Company resolved to adopt the Non-Employee Consultants Retainer Stock Plan for the Year 2011.  The purpose of this Plan is to enable the Company, to promote the interests of the Company and its stockholders by attracting and retaining non-employee consultants capable of furthering the future success of the Company and by aligning their economic interests more closely with those of the Company’s stockholders, by paying their retainer or fees in the form of shares of the Company’s common stock.  100,000,000 shares of common stock are registered to this plan at an offering price of $.004.  The Plan shall expire on May 24, 2021.




-  continued -



- 11 -






GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note E -   Share Activity – continued

For the quarter ended August 31, 2011 Andrew Madenberg was granted 25,000,000 shares for services rendered in connection with his consultant contract.  These shares were valued at $90,000 based on the closing price on the date of the grants.


For the quarter ended August 31, 2011 Spiros Sinnis was granted 25,000,000 shares for services rendered in connection with his consultant contract.  These shares were valued at $90,000 based on the closing price on the date of the grants.


For the quarter ended August 31, 2011 Robert Levitt received 30,000,000 shares common stock in partial satisfaction of 180,000,000 shares owed. The value of the shares issued was $84,000. The related portion of the derivative liability was marked to this value and relieved to APIC upon issuance.


On June 8, 2011 Norman Reynolds was granted 12,000,000 shares of common stock in lieu of payment by the Company for legal services he provided as the Company’s attorney.  These shares were valued at $49,200 based on the closing price on the date of the grant.


On June 8, 2011 Carolyn Merrill was granted 2,000,000 shares of common stock in lieu of payment by the Company for compensation as the Company’s accountant.  These shares were valued at $6,400 based on the closing price on the date of the grant.


On July 18, 2011 the Company entered into an agreement with Daniel Chase (Contractor).  Pursuant to the agreement the Contractor agrees to assist the Company in its coal, oil and gas procedures and protocols . The term of the contract is for six months expiring on January 18, 2012.    In consideration for his services, the Contractor received 49,000,000 common shares on July 18, 2011.  These shares were valued at $147,000 based on the grant date of the shares.


On September 22, 2011, the Company amended their authorized Common Stock Class B to 5,171,013 shares from 50,000,000 shares.  The 44,828,987 Class B shares were transferred to Common Stock Class A thereby increasing Common Stock Class A authorized to 844,828,987.


 On September 5, 2011 the Company entered into an agreement with Makaha Media Corporation (Contractor).  Pursuant to the agreement the Contractor agrees to assist the Company in developing and implementing appropriate plans and means for presenting the Company and its product(s) to the proper industries, establishing an image for the Company and its product(s) and creating the foundation for subsequent marketing efforts.  The term of the contract is for two months expiring on October 31, 2011.  In consideration for their services, the Contractor received 50,000,000 common shares.  These shares were valued at $130,000 based on the grant date of the shares.


On September 20, 2011 the Company entered into an agreement with Strategic Alliance Consulting Group (Contractor).  Pursuant to the agreement the Contractor agreed to retire the 32,642,973 shares Common Stock Class A that they were holding, for consideration of the Company reauthorizing the same amount of shares sometime in the future. The Company recorded the shares as treasury stock based on the value of the shares owed of $47,500 with the offsetting credit to stock payable. The treasury stock were immediately retired and returned to the authorized and unissued pool of shares for the Company. The treasury amount was relieved against common stock and APIC with this retirement. The stock payable was considered a part of the tainted equity environment as a common stock equivalent and re-classed to derivative liability upon being owed. The value of the shares was marked to market on the balance sheet date, see footnote I.

 

continued -



- 12 -





GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note E -   Share Activity – continued

On September 20, 2011, the Company resolved to adopt the Non-Employee Consultants Retainer Stock Plan for the Year 2011, No. 2.  The purpose of this Plan is to enable the Company, to promote the interests of the Company and its stockholders by attracting and retaining non-employee consultants capable of furthering the future success of the Company and by aligning their economic interests more closely with those of the Company’s stockholders, by paying their retainer or fees in the form of shares of the Company’s common stock.  40,000,000 shares of common stock are registered to this plan at an offering price of $.0014.  The Plan shall expire on September 20, 2021.


Preferred Stock

On January 28, 2011, the Company amended their Preferred Stock Class A authorized shares from 1,000,000 shares to 10,000 shares.


On February 28, 2011 the Board of Directors approved the issuance of 2,000,000 Preferred Stock Class B to Betty Harland.  These shares carry 500 to 1 voting rights and are not convertible into common stock. These shares also carry a liquidation preference over common shares. These shares were valued at $600,000 and were expensed upon grant. The shares were valued by a valuation expert on the date of grant. The key inputs in the valuation were related to assigning a value to the control associated with the preferred shares issued. No value was assigned to the liquidation preference of the securities based on the net deficit position of the Company. The valuation expert used industry studies for similar companies which estimated a premium on control equal to 10.05% of the Company’s respective market cap. The other inputs involved in calculating the market cap on the date of grant which was calculated as the shares outstanding multiplied by the shares price on the date of grant. The market cap on the date of grant was found to be approximately $5,969,380 based on this calculation.


Note F – Related Party Transactions

Certain disbursements of the Company have been paid by two directors of the Company therefore; a Due to Directors account has been established.  The balance at February 29, 2012 and August 31, 2011 was $280 and $400, respectively.  


In October 2004, the Company entered into a consulting agreement with its Chairman, Betty-Ann Harland for a five year term, with annual compensation of $220,000 and auto allowance of $12,000.  The accrued consulting fees are accruing interest at 8.75% annually.  On March 24, 2011, the Company extended Ms Harland’s consulting agreement effective October 1, 2009 through October 1, 2011. On December 5, 2011, Mrs. Harland’s contract was extended through October 1, 2015. At February 29, 2012 and August 31, 2011 accrued compensation due to Mrs. Harland was $905,841 and $789,841, respectively.  At February 29, 2012 and August 31, 2011 accrued interest imputed on accrued compensation was $114,390 and $82,297, respectively.


On February 28, 2011 Betty Harland was issued 2,000,000 Preferred Stock Class B (See Note E – Preferred Stock).


On August 25, 2007, the Company entered into a consulting agreement with its CEO, Sydney Harland for a five year term, with annual compensation of $220,000, health benefits of $15,000 and $12,000 auto allowance.  The agreement agrees to pay all accrued compensation from April 2006 and is accruing interest at 8.75% annually.  At February 29, 2012 and August 31, 2011 accrued compensation due to Mr. Harland was $1,276,738 and $1,167,208, respectively.  At February 29, 2012 and August 31, 2011 accrued interest imputed on accrued compensation was $218,103 and $171,427, respectively.


- continued -




- 13 -





GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note F – Related Party Transactions – continued

On August 25, 2007, the Company entered into a consulting agreement with its CFO, Edmund Gorman for a two year term, with annual compensation of $150,000, health benefits of $7,500.  The agreement agrees to pay all accrued compensation from April 2006 and is accruing interest at 8.75% annually.    On March 24, 2011, the Company extended Mr. Gorman’s consulting agreement effective August 25, 2009 through August 25, 2011.  On December 5, 2011, Mr Gorman’s contract was extended through August 27, 2015.  At February 29, 2012 and August 31, 2011 accrued compensation due to Mr. Gorman was $931,669 and $852,919, respectively.  At February 29, 2012 and August 31, 2011 accrued interest imputed on accrued compensation was $201,104 and $162,067, respectively.  


On September 9, 2010 Robert Levitt converted 30,000 Preferred Class A shares to 6,000,000 common shares.


During the fiscal year ended August 31, 2011 Robert Levitt agreed to accept 180,000,000 shares in lieu of payment of an accrued balance owed to him of $180,000. The value of the shares to be issued on the date of the agreement was $360,000 causing a loss of $180,000 for the conversion. This stock payable was later re-classed to the derivative liability due to the tainted equity environment and potential inability of the Company to share settle the instrument. As a result, the related value of the stock payable and issuances were re-valued at each issuance date and balance sheet date due to the mark to market requirements for the derivative liability.


On October 12, 2010 Robert Levitt was granted 9,000,000 shares of common stock in partial satisfaction of the 180,000,000 shares owed to him for prior consulting services. The value of the shares issued was $73,800. The related portion of the derivative liability was marked to this value and relieved to APIC upon issuance.  


For the quarter ended February 28, 2011 Robert Levitt received 47,000,000 shares common stock in partial satisfaction of the 180,000,000 shares owed to him for prior consulting services. The value of the shares issued was $648,000. The related portion of the derivative liability was marked to this value and relieved to APIC upon issuance.  


For the quarter ended May 31, 2011 Robert Levitt received 45,000,000 shares common stock in partial satisfaction of 180,000,000 shares owed. The value of the shares issued was $318,500. The related portion of the derivative liability was marked to this value and relieved to APIC upon issuance.


For the quarter ended August 31, 2011 Robert Levitt received 30,000,000 shares common stock in partial satisfaction of 180,000,000 shares owed. The value of the shares issued was $84,000. The related portion of the derivative liability was marked to this value and relieved to APIC upon issuance.


Note Payable – Related Party balance was $287,500 and $236,500 at February 29, 2012 and August 31, 2011, respectively.  Amounts due are to Robert Levitt for monies loaned to the Company.


Interest expense charged to operations was $162,954 and $140,472, for the six months ended February 29, 2012 and February 28, 2011 respectively.  


        



- 14 -





GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note G – Joint Ventures

   Reflora do Brasil

On November 22, 2010, the Company and Reflora do Brasil, a Brazilian company (“RDB”) executed a Joint Venture Agreement with respect to sale by RDB of carbon credits relating to certain property located in Brazil.  Proceeds from the sale of the Credits brokered by the Company for RDB shall be split as follows: sixty percent (60%) of the proceeds shall be distributed to the owners of the Para
Property, who are represented by RDB, and forty percent (40%) to the Company.   Pursuant to the agreement, the Company issued 9,500,000 shares of common stock valued at $0.0045 per share on November 22, 2010 in addition to those shares listed below.


Strategic Alliance Consulting Group, Ltd. is entitled to compensation from the Company pursuant to the Joint Venture Agreement, as follows:

(a) 62,642,973 shares of the common stock valued at $0.0045 per share of the Company and


 

(b) The sum of $30,000 per month for four months totaling $120,000 which has been recorded as due to joint venture on the balance sheet.  This payment to the Strategic Alliance is compensation to run the business lines to be brought in, (carbon credit deals, soybean, asset backed bonds, Lifecycle partnership) which includes legal costs and other costs involving the stated deals.  The Cash Compensation will be paid by the Company as and when it is able to raise sufficient funds through a private placement of shares of the Global Earth Common Stock pursuant to Regulation D promulgated under the Securities Act of 1933, as amended.  The Company shall immediately begin the preparation of a private placement memorandum for the purpose of raising the cash compensation.  


The total value of the joint venture is $444,643 which is composed of $324,643 in common stock issued and $120,000 in cash to be paid. The Company evaluated these capitalized costs as of August 31, 2011 for impairment and determined at that time that there was no certainty that these costs would be recovered with future cash flows from the joint ventures. As a result, the costs were fully valued with an impairment of $444,643.  Since the impairment on August 31, 2011, there has been no activity on this joint venture.


Note H – Convertible Debentures and Note Payable

   The Company had convertible debentures outstanding as follows:



February 29, 2012

 

Outstanding Balance of Convertible Debenture


Unamortized

Discount

Net of Principal and Unamortized Discount

     
     

April 27, 2011 – Debenture

 

  $    7,000  

$         ––

  $    7,000  

     

Total Convertible Debentures

 

  $    7,000  

$         ––

  $    7,000  

     



- continued -




- 15 -





GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note H – Convertible Debentures and Note Payable – continued


August 31, 2011

 

Outstanding Balance of Convertible Debenture


Unamortized

Discount

Net of Principal and Unamortized Discount

     
     

April 27, 2011 – Debenture

 

  $    27,500

$    20,703

$    6,797

     

Total Convertible Debentures

 

$    27,500

$    20,703

$    6,797

     


 

On April 27, 2011, the Company entered into a securities purchase agreement with Asher Enterprises Inc. for the sale of a $27,500 in a convertible debenture bearing interest at 8% per annum, payable on or before January 31, 2012.  $27,500 was disbursed to the Company on May 13, 2011.


Pursuant to the convertible debenture the investor may convert the debenture into common stock of the Company at a conversion price of 58% of the average price for the lowest three trading prices for the common stock for ten trading days ending one trading day prior to the date of conversion notice sent by the holder to the Company.  


On November 14, 2011, Asher Enterprises elected to convert $8,000 of their note payable into 19,047,619 common shares of the Company.  Asher’s remaining note payable at November 14, 2011 is therefore $19,500. The conversion was in accordance with the convertible note agreement therefore no gain or loss was recorded on the conversion and the converted amount was relieved to common stock and additional paid in capital.  


On December 14, 2011, Asher Enterprises elected to convert $6,000 of their note payable into 33,333,333 common shares of the Company.  Asher’s remaining note payable at December 14, 2011 is therefore $13,500. The conversion was in accordance with the convertible note agreement therefore no gain or loss was recorded on the conversion and the converted amount was relieved to common stock and additional paid in capital.


On December 21, 2011, Asher Enterprises elected to convert $6,500 of their note payable into 34,210,526 common shares of the Company.  Asher’s remaining note payable at December 21, 2011 is therefore $7,000. The conversion was in accordance with the convertible note agreement therefore no gain or loss was recorded on the conversion and the converted amount was relieved to common stock and additional paid in capital.


Note payable at February 29, 2012 and August 31, 2011 consisted of $30,000 and $15,000 due and payable to Marie Fay upon demand.  Interest expense for the six months ended February 29, 2012 and 2010 was $1,200 and $-0-, respectively.



- 16 -





GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note I –

Derivative Liability

The Company evaluated their convertible note agreements pursuant to ASC 815 and due to there being no minimum or fixed conversion price resulting in an indeterminate number of shares to be issued in the future, the Company determined an embedded derivative existed and ASC 815 applied for their convertible note with a balance of $7,000 and $27,500 as of February 29, 2012 and August 31, 2011, respectively.


In accordance with the option allowed in ASC 815, the Company has elected to value the derivatives separately at the fair value on the issuance date using the Black-Scholes valuation model and bifurcate the instruments. The Company valued the embedded derivative within the convertible note using the Black-Scholes valuation model.  The result of the valuation is a derivative liability in the amount of $26,875.  We estimated the fair value of the derivative using the Black-Scholes valuation method with assumptions including: (1) term of 0.17 years; (2) a computed volatility rate of 275.86% (3) a discount rate of 0.01% and (4) zero dividends.  The valuation of this embedded derivative was recorded with an offsetting gain/loss on derivative liability.


In accordance with the option allowed in ASC 815, the Company has elected to value the derivatives separately at the fair value on the issuance date using the Black-Scholes valuation model at the balance sheet date February 29, 2012 and bifurcate the instruments. The Company valued the embedded derivative within the convertible note using the Black-Scholes valuation model.  The result of the valuation is a derivative liability in the amount of $22,174.  We estimated the fair value of the derivative using the Black-Scholes valuation method with assumptions including: (1) term of 0.25 years; (2) a computed volatility rate of 295.38% (3) a discount rate of 0.01% and (4) zero dividends.  The valuation of this embedded derivative was recorded with an offsetting gain/loss on derivative liability.


As previously mentioned $20,500 of the previous convertible debt owed of $27,500 was converted during the period. The embedded derivative related to this portion of the convertible debt was re-valued on the settlement dates using the Black Scholes model to be $36,098. The related portion of the derivative liability was marked to market and re-classed to additional paid in capital with the settlements. We estimated the fair value of the derivative using the Black-Scholes valuation method with assumptions including: (1) term of 0.25 years; (2) a computed volatility rate of 275% (3) a discount rate of 0.01% and (4) zero dividends.  

 

The Company evaluated all convertible debt and outstanding warrants to determine whether these instruments may be tainted from the aforementioned derivative. All warrants outstanding were considered tainted as a result of the tainted equity environment and potential inability of the Company to share settle the instruments. The Company valued these warrants using the Black-Scholes valuation

model.  The result of the valuation is a derivative liability in the amount of $267.  We estimated the fair value of the derivative using the Black-Scholes valuation method with assumptions including: (1) term of 2.7 years; (2) a computed volatility rate of 295.38% (3) a discount rate of 0.41% and (4) zero dividends.  The valuation of these warrants was recorded with an offsetting gain/loss on the derivative liability.


As of February 29, 2012 the Company had 82,642,973 shares owed that were recorded as a part of the derivative liability due to the tainted equity environment. The related portion of the derivative liability was marked to market according to the value of the shares owed on the balance sheet date at $24,793.


- continued -




- 17 -





GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note I –

Derivative Liability - continued



 

Derivative Liability at

August 31, 2011

Reclass from liabilities to derivative liability

Discount on debt with initial valuation

(Gain) Loss on Derivative for the Six Months Ended February 29, 2012

Settled to Additional Paid in  

Capital

Derivative

Balances

At

February 29,

2012

       

Asher– Debentures

$    31,455

$          ––

$     ––

$    13,922

$ (36,098)

$   9,279

       

Tainted Equity

130,000

45,700

––

  (150,908)

––

24,792

       

Warrants Outstanding

2,479

––

––

  (2,212)

––

267

       

Total

$  163,934

$  45,700

   $   ––

 $ (139,198)

$ (36,098)

$  34,338

       


Note J –  Commitments and Contingencies

During the fiscal year ended August 31, 2011, the Company signed an agreement with Robert Levitt to settle the amount due him in the amount of $180,000.  The Company agreed to pay Mr. Levitt 180,000,000 common shares which at the date of the agreement were valued at $0.002 per share, or $360,000, resulting in a loss on conversion of $180,000. 49,000,000 shares were still owed as of February 29, 2012. This stock payable was valued as a part of the derivative liability at February 29, 2012.


On December 2, 2010, the Company, RCI Solar, Inc., and Melvin K. Dick rescinded that certain Plan and Agreement of Triangular Merger Between Global Earth Energy, Inc., Global Earth Energy Acquisition Company and 688239 B.C. Ltd. effective on May 10, 2010.  Although the agreement was dated November 15, 2010, it was not executed by the parties until December 2, 2010.  The rescission agreement dated December 2, 2010, was reported in a current report on Form 8-K filed with the SEC on December 3, 2011.


On March 18, 2011, the Registrant, RCI Solar, Inc., and Melvin K. Dick amended the rescission agreement dated December 2, 2010.

The amendment to the rescission states that Melvin Dick shall be permitted to retain 10,000,000 shares of the Global Earth Common Stock which he received in connection with the Plan of Merger.  The remaining 55,000,000 shares of the Global Earth Common Stock received by Melvin Dick shall be surrendered to the Company and shall be cancelled.  The 10,000,000 shares of the Global Earth Common Stock retained by Melvin Dick shall be delivered to Norman T. Reynolds, Esq., attorney for the Company, who will hold the shares in escrow.  Melvin Dick shall be permitted to sell 500,000 to 1,000,000 shares each month depending how the stock is trading, after complying with the provisions of Rule 144 promulgated under the Securities Act of 1933, as amended.


 - continued -

 



- 18 -





GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note J – Commitments and Contingencies - continued

   On June 16, 2011, the Company acquired a 25% equity ownership in Global Earth Natural Resources Inc., a New Brunswick corporation. The Company provided no consideration for the transfer as the transferor is under common control. The book value of the ownership received was immaterial and therefore there was no related accounting impact from the transfer. This Company has had no material activity since inception.

Note K – Discontinued Operations

On May 10, 2010, the Company acquired all of the agreed upon assets and liabilities of 688239 B.C. Ltd.  The acquired business employs complementary technologies and serves compatible markets compared with Global Earth Energy, Inc.  688239 B.C.’s assets and liabilities were merged into Global Earth Energy Acquisition Company, a wholly owned subsidiary of the Company, a Wyoming corporation. Upon merger the subsidiary changed its name to RCI Solar, Inc.

RCI Solar, Inc. located in Kelowna, British Columbia, Canada is an electrical contracting company.  RCI Solar, Inc. delivers a suite of residential and commercial renewable energy solutions. RCI Solar specializes in Solar Panels, Thermo Energy, and Wind Turbines.  Management has over 30 years experience in the industry and have become a partner both in business and in research and development.  Consideration from the National Research Centre of Canada and ecoEnergy Canada has helped RCI Solar position itself to explore new opportunities.  These opportunities will help the Company further define and develop our solutions as a leader in Renewable and Recoverable Energy Markets.  RCI Solar is experiencing steady growth and has completed several deployments throughout Western Canada.  New contracts are anticipated throughout various communities in several Canadian provinces.

In exchange for the assets and liabilities of 688239 B.C., the Company issued 65,000,000 shares common stock at a value of $845,000.


Due to the difficulties encountered in completing the audit of 688239 B.C., filed on Form 8-Ka, item 9.01, on August 16, 2010 and continued difficulties experienced during the preparation of the subsidiary’s accounting records included in the Company’s annual report on Form 10-K for fiscal year 2010, the parties to the Plan of Merger desired to rescind the Plan of Merger (the “Rescission”). On December 2, 2010 the parties to the Plan of Merger executed the Rescission. As a result, Global Earth has agreed to transfer to Melvin Dick all of Global Earth’s interest in the 5,000 shares of the Class A Common Stock of 688239 B.C. which Melvin Dick previously agreed to deliver to Global Earth


The amendment to the rescission states that Melvin Dick shall be permitted to retain 10,000,000 shares of the Global Earth Common Stock which he received in connection with the Plan of Merger.  The remaining 55,000,000 shares of the Global Earth Common Stock received by Melvin Dick shall be surrendered to the Company and shall be cancelled.  The 10,000,000 shares of the Global Earth Common Stock retained by Melvin Dick shall be delivered to Norman T. Reynolds, Esq., attorney for the Company, who will hold the shares in escrow.  Melvin Dick shall be permitted to sell 500,000 to 1,000,000 shares each month depending how the stock is trading, after complying with the provisions of Rule 144 promulgated under the Securities Act of 1933, as amended.


- continued -




- 19 -





GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note K – Discontinued Operations - continued

In compliance with authoritative literature, “ASC 855, Subsequent Events,” Management determined that the events leading up to the Rescission and the execution thereof on December 2, 2010, would fit the definition of a subsequent event that provides additional evidence about conditions that existed at the date of the balance sheet. In accordance with authoritative literature, this type of subsequent event is recognized in the financial statements as if it occurred on the Company’s balance sheet date.


As a result, the Company has recognized an impairment loss from the rescission of $828,496. The net operating results of 688239 B.C. Ltd. have been presented as discontinued operations in the Company’s statement of operations for the year ended August 31, 2010.

The following table provides the details of those discontinued operations:


Discontinued Operations of Subsidiary 688239 B.C.

  
   

For the Period May 10, 2010 Through August 31, 2010

     

Revenue

  

 $      130,836

 

Cost of Goods Sold

  

77,613

 
     

Gross Profit

  

53,223

 
     

G&A Expense

  

69,727

 
     

Operating Loss

  

16,504

 
     

Net Loss

  

 $        16,504

 





- 20 -






GLOBAL EARTH ENERGY, INC.

(A Development Stage Company)

Wilmington, North Carolina



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note L – Fair Value

The Company has categorized its assets and liabilities recorded at fair value based upon the fair value hierarchy specified by GAAP.  All assets and liabilities are recorded at historical cost which approximates fair value, and therefore, no items were valued according to these inputs.


   The levels of fair value hierarchy are as follows:


·

Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access;


·

Level 2 inputs utilize other-than-quoted prices that are observable, either directly or indirectly.  Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs such as interest rates and yield curves that are observable at commonly quoted intervals; and


·

Level 3 inputs are unobservable and are typically based on our own assumptions, including situations where there is little, if any, market activity.


In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, the Company categorizes such financial asset or liability based on the lowest level input that is significant to the fair value measurement in its entirety.  Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.


Both observable and unobservable inputs may be used to determine the fair value of positions that are classified within the Level 3 category.  All assets and liabilities are at cost which approximates fair value and there are not items that were required to be valued on a non-recurring basis.


The following liability was valued at fair value as of February 29, 2012 and August 31, 2011. No other items were valued at fair value on a recurring basis as of February 29, 2012 or August 31, 2011.


February 29, 2012

 

Fair Value Measurements Using

 

Carrying

    
 

Value

Level 1

Level 2

Level 3

Total

      

Derivative Liablilities

$   34,338

$      ––

$      ––

$   34,338

$   34,338

      

Total

 

$      ––

$      ––

$   34,338

$   34,338



August 31, 2011

 

Fair Value Measurements Using

 

Carrying

    
 

Value

Level 1

Level 2

Level 3

Total

      

Derivative Liablilities

$  163,934

$      ––

$      ––

$  163,934

$  163,934

      

Total

 

$      ––

$      ––

$  163,934

$  163,934





- 21 -




Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion reflects our plan of operation.  This discussion should be read in conjunction with the financial statements which are attached to this report.  This discussion contains forward-looking statements, including statements regarding our expected financial position, business and financing plans.  These statements involve risks and uncertainties.  Our actual results could differ materially from the results described in or implied by these forward-looking statements as a result of various factors, including those discussed below and elsewhere in this report.

Results of Operations

Three Months Ended February 29, 2012 Compared With Three Months Ended February 28, 2011

Net Revenue for each of the three months ended February 29, 2012 and February 28, 2011 was $-0-.  Net loss for the three months ended February 29, 2012 was $285,257 compared to net loss of $835,801 for the three months ended February 28, 2011

Expenses have decreased by $550,544 for the second three months of our current fiscal year from $835,801 for the three months ended February 28, 2011 to $285,257 for the three months ended February 29, 2012.  The decrease can be attributed to a decrease in consulting fees of $66,366 from $219,111 to $152,745, a decrease in general and administrative expenses of $124,642 from $184,917 to $60,275, a decrease in interest expense of $7,331 from $89,084 to $81,753. The Company also had a decrease in loss on derivative of $172,205 from $162,689 to ($9,516) and a decrease in loss on conversion of $180,000 from $180,000 to $-0-.

Six Months Ended February 29, 2012 Compared With Six Months Ended February 28, 2011

Net Revenue for each of the six months ended February 29, 2012 and February 28, 2011 was $-0-.  Net loss for the six months ended February 29, 2012 was $562,324 compared to net loss of $1,246,288 for the six months ended February 28, 2011.

Expenses have decreased by $683,964 for the six months of our current fiscal year from $1,246,288 for the six months ended February 28, 2011 to $562,324 for the six months ended February 29, 2012.  The decrease can be attributed to a decrease in consulting fees of $80,910 from $511,155 to $430,245, a decrease in general and administrative expenses of $143,649 from $251,972 to $108,323, a increase in interest expense of $22,482 from $140,472 to $162,954 is due to the registrant having insufficient revenues. The Company also had a decrease in loss on derivative of $301,887 from $162,689 to ($139,198) and a decrease in loss on conversion of $180,000 from $180,000 to $-0-.

Liquidity and Capital Resources

Our operations used approximately $75,337 in cash for the six months ended February 29, 2012.  Cash required during the six months ended February 29, 2012 came principally from cash proceeds from issuance of debt of $66,000 for the six months ended February 29, 2012.

Our operations used approximately $181,359 in cash for the six months ended February 28, 2011.  Cash required during the six months ended February 28, 2011 came principally from cash proceeds from issuance of debt of $235,500 for the six months ended February 28, 2011.

Special Note Regarding Forward-Looking Statements

In this report, we make a number of statements, referred to as “forward-looking statements” which are intended to convey our expectations or predictions regarding the occurrence of possible future events or the existence of trends and factors that may impact our future plans and operating results.  We note, however, that these forward-looking statements are derived, in part, from various assumptions and analyses we have made in the context of our current business plan and information currently available to Global Earth Energy and in light of our experience and perceptions of historical trends, current conditions and expected future developments and other factors we believe to be appropriate under the circumstances.



- 22 -


 

You can generally identify forward-looking statements through words and phrases such as “seek,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “budget,” “project,” “may be,” “may continue,” “may likely result,” and similar expressions.  When reading any forward-looking statement you should remain mindful that all forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of Global Earth Energy, and that actual results or developments may vary substantially from those expected as expressed in or implied by that statement for a number of reasons or factors, including those relating to:

·

Whether or not markets for our proposed products develop and, if they do develop, the pace at which they develop;

·

Our ability to attract and retain qualified personnel to implement our growth strategies;

·

Our ability to fund our financing needs;

·

Competitive factors;

·

General economic conditions; and

·

Changes in our business plan and corporate strategies.

Each forward-looking statement should be read in context with, and with an understanding of, the various other disclosures concerning Global Earth Energy and our business made elsewhere in this report.  You should not place undue reliance on any forward-looking statement as a prediction of actual results or developments.  We are not obligated to update or revise any forward-looking statement contained in this report to reflect new events or circumstances unless and to the extent required by applicable law.

Item 3.

Quantitative and Qualitative Disclosures about Market Risk.

We conduct all of our transactions, including those with foreign suppliers and customers, in U.S. dollars. We are therefore not directly subject to the risks of foreign currency fluctuations and do not hedge or otherwise deal in currency instruments in an attempt to minimize such risks.  Demand from foreign customers and the ability or willingness of foreign suppliers to perform their obligations to us may be affected by the relative change in value of such customer or supplier's domestic currency to the value of the U.S. dollar.  Furthermore, changes in the relative value of the U.S. dollar may change the price of our products relative to the prices of our foreign competitors.

Item 4.

Controls and Procedures.

See Item 4(T) below.

Item 4(T).

Controls and Procedures.

The term disclosure controls and procedures means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act (15 U.S.C. 78a, et seq.) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.



- 23 -


The term internal control over financial reporting is defined as a process designed by, or under the supervision of, the issuer’s principal executive and principal financial officers, or persons performing similar functions, and effected by the issuer’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

·

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the issuer;

·

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the issuer; and

·

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer’s assets that could have a material effect on the financial statements.

Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls and procedures or our internal controls over financial reporting will prevent all error and all fraud.  A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.  Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs.  Because of inherent limitations in all control systems, internal control over financial reporting may not prevent or detect misstatements, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the registrant have been detected.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Evaluation of Disclosure and Controls and Procedures.  Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act.  Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States.  We carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report.  The evaluation was undertaken in consultation with our accounting personnel.  Based on that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are currently ineffective.  Each of the factors identified in the 10K filed with the Securities and Exchange Commission on December 14, 2011 have remained unresolved and have been considered to be material weaknesses in our controls. The following conditions that indicated that our internal control over financial reporting and our disclosure controls and procedures remain ineffective:

·

Accounts payable and accrued expenses are inadequately being maintained as there is no policy for unpaid invoice documentation.


·

Reconciliations of shares outstanding between the accounting records and the stock transfer agent are not performed timely.


·

The Company has a material weakness in providing GAAP compliant financial statement disclosures without external assistance.


·

The Company lacks proper segregation of duties.



- 24 -


Changes in Internal Controls over Financial Reporting.  There were no changes in the internal controls over our financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  The matters that management identified in the 10K filed with the Securities and Exchange Commission on December 14, 2011 continue to be unresolved and still are considered material weaknesses in our internal control over financial reporting.

This 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 report.


PART II – OTHER INFORMATION

Item 1.

Legal Proceedings.

None.

Item 1A.

Risk Factors.

Not applicable.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

None that have not already been reported.

Item 3.

Defaults Upon Senior Securities.

Not applicable.

Item 4.

Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 5.

Other Information.

Not applicable.



- 25 -


Item 6.

Exhibits.

Exhibit No.

Identification of Exhibit

3.1**

Articles of Incorporation filed on April 11, 2000, filed as Exhibit 1 to the registrant’s Current Report on Form 10SB12G on August 15, 2000, Commission File Number 000-31343.

3.2**

Bylaws approved January 31, 1997, filed as Exhibit 2 to the registrant’s Current Report on Form 10SB12G on August 15, 2000, Commission File Number 000-31343.

3.3**

Certificate of Amendment to the Articles of Incorporation filed with the Secretary of State of Nevada on February 5, 2008, filed as Exhibit 3.1 to the registrant’s Current Report on Form 8-K on April 4, 2008, Commission File Number 000-31343.

4.0**

Global Earth Energy, Inc. Amended and Restated Certificate of Designation for the Series A Preferred Stock filed with the Secretary of State of Nevada on January 31, 2011, filed as Exhibit 4.0 to the registrant’s Current Report on Form 8-K on January 31, 2011, Commission File Number 000-31343.

10.1**

Rescission of Plan and Agreement of Triangular Merger Between Global Earth Energy, Inc. and RCI Solar, Inc., executed on December 2, 2010, between Global Earth Energy, Inc., RCI Solar, Inc., and Melvin K. Dick, filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on December 3, 2010, Commission File Number 000-31343.

10.2**

Joint Venture Agreement dated January 10, 2011 between LifeCycle Investments, L.L.C. and Global Earth Energy, Inc., filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on January 12, 2011, Commission File Number 000-31343.

10.3**

Asher Enterprises Inc. Securities Purchase Agreement, executed on December 6, 2010, between Global Earth Energy, Inc. and Asher Enterprises, Inc., filed as Exhibit 10.21 to the registrant’s Annual Report on Form 10-K/A on January 18, 2011, Commission File Number 000-31343.

10.4**

Asher Enterprises Inc. Convertible Promissory Note, executed on December 6, 2010, between Global Earth Energy, Inc. and Asher Enterprises, Inc., filed as Exhibit 10.22 to the registrant’s Annual Report on Form 10-K/A on January 18, 2011, Commission File Number 000-31343.

10.5**

Memorandum of Understanding dated January 26, 2011, between Global Earth Energy, Inc. and LB Tim Co., Ltd., a South Korean corporation, filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on January 31, 2011, Commission File Number 000-31343.

10.6**

Consulting Agreement dated as of January 26, 2011 between Global Earth Energy, Inc. and Spiros Sinnis, filed as Exhibit 10.2 to the registrant’s Current Report on Form 8-K on January 31, 2011, Commission File Number 000-31343.

10.7**

Consulting Agreement dated as of January 26, 2011, between Global Earth Energy, Inc. and Andrew L. Madenberg, filed as Exhibit 10.3 to the registrant’s Current Report on Form 8-K on January 31, 2011, Commission File Number 000-31343.

10.8**

Joint Venture Agreement dated February 9, 2011, between Global Earth Energy, Inc. and GFC 2005, filed as Exhibit 10.3 to the registrant’s Current Report on Form 8-K on February 10, 2011, Commission File Number 000-31343.

10.9**

Memorandum of Understanding dated February 22, 2011, between Global Earth Energy, Inc. and Wins International Co., Ltd., filed as Exhibit 10.3 to the registrant’s Current Report on Form 8-K on February 22, 2011, Commission File Number 000-31343.

10.10**

Joint Venture Agreement dated February 22, 2011, between Global Earth Energy, Inc. and Innovated Concepts of Ethanol Corp., filed as Exhibit 10.3 to the registrant’s Current Report on Form 8-K on February 22, 2011, Commission File Number 000-31343.

10.11**

Agreement for the Sale and Purchase of Coal dated February 22, 2011, between Global Earth Energy, Inc. and Wins International Co., Ltd., filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on February 23, 2011, Commission File Number 000-31343.

10.12**

Joint Venture Agreement dated February 24, 2011, between Global Earth Energy, Inc. and Biosynergies Lubbock, LLC, filed as Exhibit 10.3 to the registrant’s Current Report on Form 8-K on February 25, 2011, Commission File Number 000-31343.

10.13**

Amended Rescission of Plan and Agreement of Triangular Merger Between Global Earth Energy, Inc. and RCI Solar, Inc., executed on March 18, 2011, between Global Earth Energy, Inc., RCI Solar, Inc., and Melvin K. Dick, filed as Exhibit 10.3 to the registrant’s Current Report on Form 8-K on March 22, 2011, Commission File Number 000-31343.

10.14**

Regulations of Global Earth Natural Resources, L.L.C., dated May 23, 2011, filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on May 24, 2011, Commission File Number 000-31343.



- 26 -





10.15**

Firm Corporate Offer for International Coal Sales dated April 4, 2011 between Modern Coal, LLC, a Texas limited liability company, and Advent Enterprises Inc., filed as Exhibit 10.2 to the registrant’s Current Report on Form 8-K on May 24, 2011, Commission File Number 000-31343.

10.16**

Certificate of Formation of Global Earth Natural Resources, L.L.C., a Texas limited liability company, dated May 23, 2011, filed as Exhibit 10.3 to the registrant’s Current Report on Form 8-K on May 24, 2011, Commission File Number 000-31343.

10.17**

Amended Rescission of Plan and Agreement of Triangular Merger Between Global Earth Energy, Inc. and RCI Solar, Inc., executed on March 18, 2011, between Global Earth Energy, Inc., RCI Solar, Inc., and Melvin K. Dick, filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on March 22, 2011, Commission File Number 000-31343.

10.18**

Amendment to Memorandum of Understanding between Global Earth Energy, Inc. and L. B. Tim Co., Ltd., dated March 23, 2011, filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on April 8, 2011, Commission File Number 000-31343.

10.19**

Termination notice with respect to the Bio Lubbock Joint Venture Agreement, received on March 29, 2011, filed as Exhibit 10.2 to the registrant’s Current Report on Form 8-K on April 8, 2011, Commission File Number 000-31343.

10.20**

Joint Venture Agreement dated April 7, 2011, between Global Earth Energy, Inc. and Modern Coal, LLC, filed as Exhibit 10.3 to the registrant’s Current Report on Form 8-K on April 8, 2011, Commission File Number 000-31343.

10.21**

Management Agreement dated October 1, 2004, between the registrant and Betty Harland, filed as Exhibit 10.4 to the registrant’s Annual Report on Form 10-KSB on January 30, 2006, Commission File Number 000-31343.

10.22**

Employment Agreement dated August 25, 2007, between the registrant and Sydney A. Harland, filed as Exhibit 10.22 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.23**

Employment Agreement dated August 25, 2007, between the registrant and Edmund J. Gorman, filed as Exhibit 10.23 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.24**

Amended Management Agreement effective October 1, 2009, between the registrant and Betty Harland, filed as Exhibit 10.24 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.25**

Amended Employment Agreement effective August 25, 2009, between the registrant and Edmund J. Gorman, filed as Exhibit 10.25 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.26**

Amended Charter of the Audit Committee of Global Earth Energy, Inc., filed as Exhibit 10.26 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.27**

Amended Code of Business Conduct of Global Earth Energy, Inc., filed as Exhibit 10.27 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.28**

Amended Code of Ethics for Senior Executive Officers and Senior Financial Officers of Global Earth Energy, Inc., filed as Exhibit 10.28 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.29**

Amended Charter of the Compensation Committee of Global Earth Energy, Inc., filed as Exhibit 10.29 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.30**

Amended Corporate Governance Principles of the Board of Directors of Global Earth Energy, Inc., filed as Exhibit 10.30 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.31**

Amended Charter of the Executive Committee of the Board of Directors of Global Earth Energy, Inc. , filed as Exhibit 10.31 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.32**

Amended Charter of the Governance and Nominating Committee of Global Earth Energy, Inc., filed as Exhibit 10.32 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.



- 27 -





10.33**

Amended Charter of the Governance and Nominating Committee of Global Earth Energy, Inc., filed as Exhibit 10.32 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.34**

Amended Charter of the Finance Committee of Global Earth Energy, Inc., filed as Exhibit 10.33 to the registrant’s Annual Report on Form 10-K/A, Amendment No. 2, on March 25, 2011, Commission File Number 000-31343.

10.35**

Termination of Joint Venture Agreement dated November 8, 2011, between LifeCycle Investments, L.L.C. and Global Earth Energy, Inc. , filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K on November 8, 2011, Commission File Number 000-31343.

16.0**

Letter From Predecessor Independent Registered Public Accounting Firm, dated March 4, 2011, filed as Exhibit 16.0 to the registrant’s Current Report on Form 8-K/A on March 10, 2011, Commission File Number 000-31343.

31.1*

Certification of Sydney A. Harland, Chief Executive Officer of Global Earth Energy, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002.

31.2*

Certification of Edmund J. Gorman, Chief Financial Officer and Principal Accounting Officer of Global Earth Energy, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §302 of the Sarbanes-Oxley Act of 2002.

32.1*

Certification of Sydney A. Harland, Chief Executive Officer of Global Earth Energy, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.

32.2*

Certification of Edmund J. Gorman, Chief Financial Officer and Principal Accounting Officer of Global Earth Energy, Inc., pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002.

99.1**

Press release issued on February 10, 2011, with respect to the Joint Venture Agreement between Global Earth Energy, Inc. and GFC 2005, dated February 9, 2011, filed as Exhibit 99.1 to the registrant’s Current Report on Form 8-K on February 10, 2011, Commission File Number 000-31343.

99.2**

Press release issued on February 22, 2011, with respect to the Memorandum of Understanding dated February 22, 2011, between Global Earth Energy, Inc. and Wins International Co., Ltd., filed as Exhibit 99.1 to the registrant’s Current Report on Form 8-K on February 22, 2011, Commission File Number 000-31343.

99.3**

Press release issued on February 23, 2011, with respect to the Joint Venture Agreement between Global Earth Energy, Inc. and Innovated Concepts of Ethanol Corp., dated February 22, 2011, filed as Exhibit 99.1 to the registrant’s Current Report on Form 8-K on February 23, 2011, Commission File Number 000-31343.

99.4**

Press release issued on February 24, 2011, with respect to the Joint Venture Agreement between Global Earth Energy, Inc. and Biosynergies Lubbock, LLC., dated February 24, 2011, filed as Exhibit 99.1 to the registrant’s Current Report on Form 8-K on February 25, 2011, Commission File Number 000-31343.

99.5**

Press release issued on March 21, 2011, with respect to the Amended Rescission of Plan and Agreement of Triangular Merger Between Global Earth Energy, Inc. and RCI Solar, Inc., executed on March 18, 2011, between Global Earth Energy, Inc., RCI Solar, Inc., and Melvin K. Dick, filed as Exhibit 99.1 to the registrant’s Current Report on Form 8-K on March 22, 2011, Commission File Number 000-31343.

99.6**

Press release issued on May 20, 2011, with respect to Firm Corporate Offer for International Coal Sales dated April 4, 2011 between Modern Coal, LLC, a Texas limited liability company, and Advent Enterprises Inc., filed as Exhibit 99.1 to the registrant’s Current Report on Form 8-K on May 24, 2011, Commission File Number 000-31343.

99.7**

Press release issued on March 21, 2011, with respect to the Amended Rescission of Plan and Agreement of Triangular Merger Between Global Earth Energy, Inc. and RCI Solar, Inc., executed on March 18, 2011, between Global Earth Energy, Inc., RCI Solar, Inc., and Melvin K. Dick, filed as Exhibit 99.1 to the registrant’s Current Report on Form 8-K on March 22, 2011, Commission File Number 000-31343.

99.8**

Press release issued on April 7, 2011, with respect to the Joint Venture Agreement between Global Earth Energy, Inc. and Modern Coal, LLC, dated April 7, 2011, filed as Exhibit 99.1 to the registrant’s Current Report on Form 8-K on April 8, 2011, Commission File Number 000-31343.

____________

*

Filed herewith.

**

Previously filed.


- 28 -


 

SIGNATURES

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

GLOBAL EARTH ENERGY, INC.

Date: April 23, 2012.

By /s/ Sydney A. Harland

    Sydney A. Harland, Chief Executive Officer



By /s/ Edmund J. Gorman

    Edmund J. Gorman, Chief Financial Officer and
   Principal Accounting Officer


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

Signature

 

Title

 

Date

/s/ Sydney A. Harland

 

Chief Executive Officer and Director

 

April 23, 2012

/s/ Edmund J. Gorman

 

Chief Financial Officer, Principal Accounting Officer, and Director

 

April 23, 2012




- 29 -


 



XOTC:GLER Quarterly Report 10-Q Filling

XOTC:GLER Stock - Get Quarterly Report SEC Filing of XOTC:GLER stocks, including company profile, shares outstanding, strategy, business segments, operations, officers, consolidated financial statements, financial notes and ownership information.

XOTC:GLER Quarterly Report 10-Q Filing - 2/29/2012
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