GLOBALINK, LTD.

Oneworld, a former subsidiary of the Company carrying on the business of internet hotel booking services, was experiencing declining revenue.  In September 2016, the board of directors of the Company determined that the costs and expenses required to rebuild OneWorld’s online booking platform and undertake the marketing efforts it believed were necessary to increase revenue did not warrant the investment. As a result, the Company decided to dispose of this section of business and focus on its gingko plantation business in China.

The Company entered into an agreement (the “Agreement”) with Vincent Au, the former owner of Oneworld, to sell 100% of Oneworld back to him for a consideration of $16,700 (C$22,000). The sale was effective as of September 30, 2016 (the “Effective Date”). Pursuant to the Agreement, all revenues generated from the operations of OneWorld, whether prior to or after the Effective Date will be retained by OneWorld, and all liabilities and obligations of OneWorld incurred prior to the Effective Date are the responsibility of OneWorld.

ASC 360-10-45-9 requires that a long-lived asset (disposal group) to be sold shall be classified as held for sale in the period in which a set of criteria have been met, including criteria that the sale of the asset (disposal group) is probable and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. This criteria was achieved on September 30, 2016. Additionally, the discontinued operations are comprised of the entirety of the hotel booking service segment. Lastly, for comparability purposes certain prior period line items relating to the assets held for sale have been reclassified and presented as discontinued operations for all periods presented in the accompanying consolidated statements of net loss and comprehensive operations and the consolidated balance sheets.

Globalink, Ltd. conducts business through its two wholly owned subsidiaries Globalink (Xuzhou) Bio-Technology Co., Ltd. (“Globalink Xuzhou”) and Globalink (Zhejiang) Bio-Technology Co. Ltd. (“Globalink Zhejiang” and, together with Globalink Xuzhou, our “PRC Subsidiaries”), which are incorporated in the PRC. Our business is involved in agriculture, which includes (i) the development and operation of a ginkgo tree plantation in the PRC, the business of which is the cultivation and sale of dried ginkgo leaves to manufacturers of ginkgo extract, the principal ingredient of ginkgo-based herbal supplement products that have gained popularity around the world, and (ii) research and development, cultivation, extraction, and application of gingko trees and other economic plants.

For the nine months ended September 30, 2016, we paid accounting and legal expenses of $95,231, amortization expenses of $2,188, and director and management fees of $45,000.  We had a foreign exchange loss of $246, paid investor relations expenses of $65,533, and paid research and development expenses of $31,420.  We paid rent expenses of $14,552, salaries and benefits of $100,144, and stock-based compensation of $115,504.  We paid telephone expenses of $1,639, travel expenses of $19,565, transfer agent and filing fees of $36,373, other general and administrative expenses of $21,891, and had a write-off of growing crops of $2,071, resulting in total general and administrative expenses of $551,357.  We recorded a loss on the disposal of OneWorld of $289,873 and recorded income from discontinued operations of $4,045.  We had an exchange difference on translating foreign operations of $1,727, resulting in a comprehensive loss of $835,458 for the nine months ended September 30, 2016.