6-K 1 peaksoft_financials.txt PEAKSOFT MULTINET CORP. FORM 52-109F1 - CERTIFICATION OF INTERIM FILINGS I, TIMOTHY W. METZ, CEO/DIRECTOR OF PEAKSOFT MULTINET CORP., certify that: 1. I have reviewed the interim filings (as this term is defined in Multilateral Instrument 52-109 CERTIFICATION OF DISCLOSURE IN ISSUERS' ANNUAL AND INTERIM FILINGS) of PEAKSOFT MULTINET CORP (the issuer) for the period ending 30 JUNE 2007 ; 2. Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings; 3. Based on my knowledge, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date and for the periods presented in the interim filings; 4. The issuer's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures and internal control over financial reporting for the issuer, and we have: (a) designed such disclosure controls and procedures, or caused them to be designed under our supervision, to provide reasonable assurance that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which the interim filings are being prepared; (b) designed such internal control over financial reporting, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP; and (c) evaluated the effectiveness of the issuer's disclosure controls and procedures as of the end of the period covered by the interim filings and have caused the issuer to disclose in the interim MD&A our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by the interim filings based on such evaluation; and 5. I have caused the issuer to disclose in the interim MD&A any change in the issuer's internal control over financial reporting that occurred during the issuer's most recent interim period that has materially affected, or is reasonably likely to materially affect, the issuer's internal control over financial reporting. 15 August 2007 "T.W. Metz" (signed) _______________________ [Signature] CEO/Director 1 FORM 52-109F1 - CERTIFICATION OF INTERIM FILINGS I, TIMOTHY W. METZ, PRESIDENT & CHIEF EXECUTIVE OFFICER ACTING AS CHIEF FINANCIAL OFFICER OF PEAKSOFT MULTINET CORP., certify that: 1. I have reviewed the interim filings (as this term is defined in Multilateral Instrument 52-109 CERTIFICATION OF DISCLOSURE IN ISSUERS' ANNUAL AND INTERIM FILINGS) of PEAKSOFT MULTINET CORP (the issuer) for the period ending 30 JUNE 2007 ; 2. Based on my knowledge, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings; 3. Based on my knowledge, the interim financial statements together with the other financial information included in the interim filings fairly present in all material respects the financial condition, results of operations and cash flows of the issuer, as of the date and for the periods presented in the interim filings; 4. The issuer's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures and internal control over financial reporting for the issuer, and we have: (d) designed such disclosure controls and procedures, or caused them to be designed under our supervision, to provide reasonable assurance that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which the interim filings are being prepared; (e) designed such internal control over financial reporting, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP; and (f) evaluated the effectiveness of the issuer's disclosure controls and procedures as of the end of the period covered by the interim filings and have caused the issuer to disclose in the interim MD&A our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by the interim filings based on such evaluation; and 5. I have caused the issuer to disclose in the interim MD&A any change in the issuer's internal control over financial reporting that occurred during the issuer's most recent interim period that has materially affected, or is reasonably likely to materially affect, the issuer's internal control over financial reporting. 15 August 2007 "T.W. Metz" (signed) _______________________ [Signature] President & Chief Executive Officer (acting as Chief Financial Officer for the purpose of this certification) 2 PEAKSOFT MULTINET CORP. CONSOLIDATED FINANCIAL STATEMENTS & REPORT FOR THE QUARTER ENDED 30 June 2007 (Prepared by Management - Unaudited) 3 June 30, 2007 LETTER TO SHAREHOLDERS Dear Shareholders; As previously reported, a lack of operating capital made it necessary for the Company to cease all marketing and sales activities in May 2001. The Company expects that no sales or marketing activities will take place until the Company either obtains sufficient operating capital to execute its sales and marketing initiatives or finalizes a merger/acquisition transaction. The discussions with a Japanese corporation regarding a potential merger with a designee of theirs have continued through-out the period. We are at the point of refilling applications with the Securities Commissions of the Provinces of British Columbia, Alberta and Ontario for revocation of the Cease Trade Orders in anticipation of the proposed merger. On 6 November 2005, the Company entered into a Promissory Note loan agreement with the Japanese corporation. The loans resulted from the interest by the Japanese and the Company to have PeakSoft Multinet Corp merge with an affiliate of the Japanese corporation. Accordingly, the Japanese corporation has advanced funds to PeakSoft for day to day operations until the merger decision is made. Upon closing of the potential merger, it is anticipated that CDN$ 125,000 of the amount advanced will apply to the purchase price. It is also anticipated that any amounts in excess of the $125,000 will be converted to common shares at CDN$0.26 per share. Interest accrues at a nominal interest rate per annum and the principle amount of the loan is secured by the pledge of shares in PeakSoft that I own. The interest accrued and charged will also be applied to the purchase price of PeakSoft. All of this naturally will be subject to the approval of the shareholders and regulatory agencies. Completion of the transaction with Alma Inc. and the companies associated with it is subject to a number of uncertainties and conditions. The transaction cannot close until a number of orders have been made by the Securities Commissions of the Provinces of British Columbia, Alberta and Ontario, and until it has been approved by PeakSoft's shareholders. There can be no assurance that this transaction will be completed as proposed or at all. Sincerely yours, "T.W. Metz" (signed) -------------------------- Timothy W. Metz Chairman and Chief Executive Officer 15 August 2007 4 MANAGEMENT'S DISCUSSION AND ANALYSIS Three Month Period Ended June 30, 2007 Compared to Period Ended June 30, 2006 The following discussion should be read in conjunction with the financial statements and the notes thereto: General and administrative expenses decreased from CDN $112,907 in 2006 to CDN $97,693 in 2007, a decrease of $15,214 or 13.47%. Selling and marketing expenses remained at CDN $0 for the quarter ended June 30, 2007 as it was in the comparable period in 2006. This was due to management's focus on merger/acquisition activities and the cessation of marketing and sales activities. Research and development expenses remained at CDN$0 for the quarter ended June 30, 2007. This was due to management's focus on merger/acquisition activities and the cessation of research and development activities. Amortization remained at CDN $0 for the quarter ended June 30, 2007. No new fixed assets were acquired. The loss per common share remained unchanged at CDN $.05 per share for the quarter ended June 30, 2007 as it did in the period ending June 30, 2006. The loss for the third quarter ended June 30, 2007 was CDN $188,411, down from CDN $203,626 in 2006, a decrease of 7.37%. LIQUIDITY AND CAPITAL RESOURCES As of June 30, 2007, the Company had a cash balance of CDN $219. Capital assets remained at CDN $0 for the period ended June 30, 2007 as it was in the comparable period in 2006 due to all capital assets being transferred to Peak.com Inc., which was sold to IncuLab in November 2000. Net assets decreased to CDN $219 for the period ended June 30, 2007 from CDN $330 for the period June 30, 2006. Loans payable and long-term debt increased from CDN $865,502 for the period ended June 30, 2006 to CDN $10,698,436 in the comparable period of 2007. This increase was primarily due to interest accrued on notes payable along with accrued salary expense. 5 MANAGEMENT'S DISCUSSION AND ANALYSIS Nine Month Period Ended June 30, 2007 Compared to the Nine Month Period Ended June 30, 2006: General and administrative expenses increased from CDN $321,988 in 2006 to CDN $406,924 in 2007, an increase of CDN $84,936 or 26.38%. This increase was primarily due to an adjustment to salaries payable from the year 2003 recorded in the past quarter ending March 31, 2007 Selling and marketing expenses remained at CDN $0 for the nine months ended June 30, 2007 as it was in the comparable period in 2006. This was due to management's focus on merger/acquisition activities and the cessation of marketing and sales activities. Research and development expenses remained at CDN $0 for the nine months ended June 30, 2007 as it was in the comparable period in 2006. This was due to management's focus on merger/acquisition activities and the cessation of research and development activities. Amortization remained at CDN$0 for the nine months ended June 30, 2007. No new fixed assets were acquired. The loss per common share increased from CDN $0.16 per share for the nine months ended June 30, 2006 to CDN $.18 per share for the nine months ended June 30, 2007. The loss for the nine months ended June 30, 2007 was CDN $679,080 up from CDN $594,144 for the nine months ended June 30, 2006, an increase of 14.29%. 6 NOTICE TO READER We, the management, have compiled the consolidated balance sheet of PeakSoft Multinet Corp. as at 30 June 2007 and the consolidated statements of operations and deficit and changes in cash flows for the quarter then ended. We have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of such information nor attempted to determine whether the statements contain departures from Canadian generally accepted accounting principles. Readers are cautioned that these statements may not be appropriate for their purposes. Our auditor has not reviewed these financial statements. /s/T. W. Metz ------------- Timothy W. Metz President/CEO/Chairman Bellingham, WA, U.S.A. 15 August 2007 7 CONSOLIDATED BALANCE SHEET (IN CANADIAN DOLLARS) (Prepared by Management - Unaudited) June 30, 2007 and 2006 --------------------------------------------------------------------------------------------------------------------- Quarter Quarter Year Ended Ended Ended 30 Jun 30 Jun 30 Sep 2007 2006 2006 $ $ $ --------------------------------------------------------------------------------------------------------------------- ASSETS CURRENT ASSETS: Cash 219 330 302 --------------------------------------------------------------------------------------------------------- 219 330 302 ========================================================================================================= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities 85,646 88,459 65,520 Salaries payable 405,505 359,911 392,014 --------------------------------------------------------------------------------------------------------- 491,151 448,370 457,534 LONG TERM LIABILITIES: Loans payable 7,931,200 7,315,732 7,668,966 Other Long-Term debt 2,767,236 2,549,770 2,384,090 --------------------------------------------------------------------------------------------------------- 10,698,436 9,865,502 10,053,056 --------------------------------------------------------------------------------------------------------- 11,189,587 10,313,872 10,510,590 ========================================================================================================= SHAREHOLDERS' EQUITY: Share capital 9,019,271 9,019,271 9,019,271 Accumulated deficit 20,208,639 19,332,813 19,529,559 --------------------------------------------------------------------------------------------------------- (11,189,368) (10,313,542) (10,510,288) --------------------------------------------------------------------------------------------------------------------- 219 330 302 ===================================================================================================================== 8 CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT (IN CANADIAN DOLLARS) (Prepared by Management - Unaudited) June 30, 2007 and 2006 ---------------------------------------------------------------------------------------------------------------------------- Quarter Quarter Nine Months Nine Months Ended Ended Ended Ended 30 Jun 30 Jun 30 Jun 30 Jun 2007 2006 2007 2006 $ $ $ $ ---------------------------------------------------------------------------------------------------------------------------- SALES - - - - COST OF GOODS SOLD - - - - ---------------------------------------------------------------------------------------------------------------------------- - - - - OPERATING EXPENSES: General and administration 97,693 112,907 406,924 321,988 Selling and marketing - - - - Research and development - - - - Amortization - - - - -------------------------------------------------------------------------------------------------------------- 97,693 112,907 406,924 321,988 ---------------------------------------------------------------------------------------------------------------------------- Earnings (loss) before the undernoted (97,693) (112,907) (406,924) (321,988) Interest on short-term notes (90,719) (90,719) (272,156) (272,156) Debt settlement with creditors - - - - ---------------------------------------------------------------------------------------------------------------------------- EARNINGS (LOSS) FROM OPERATIONS (188,411) (203,626) (679,080) (594,144) ---------------------------------------------------------------------------------------------------------------------------- LOSS 188,411 203,626 679,080 594,144 Accumulated deficit, beginning of period 20,020,227 19,129,187 19,529,559 18,738,669 ---------------------------------------------------------------------------------------------------------------------------- Accumulated deficit, end of period 20,208,639 19,332,813 20,208,639 19,332,813 ============================================================================================================================ Loss per common share 0.05 0.05 0.18 0.16 Shares Outstanding 3,830,974 3,830,974 3,830,974 3,830,974 9 STATEMENT OF CHANGES IN FINANCIAL POSITION (IN CANADIAN DOLLARS) (Prepared by Management - Unaudited) June 30, 2007 and 2006 ---------------------------------------------------------------------------------------------------------------------------------- Quarter Quarter Nine Months Nine Months Ended Ended Ended Ended 30 Jun 30 Jun 30 Jun 30 Jun 2007 2006 2007 2006 $ $ $ $ --------------------------------------------------------------------------------------------------------------------------------- Cash provided by (used in): Operations: Net earnings (loss) (188,411) (203,626) (679,080) (594,144) Items not involving cash: Amortization - - - 0 Change in non-cash operating 188,387 203,601 678,996 594,040 working capital ------------------------------------------------------------------------------------------------------------------- (24) (25) (83) (104) ------------------------------------------------------------------------------------------------------------------- Financing: Increase (decrease) in Obligation under capital leases - - - - Issuance of notes payable - - - - Issuance of share capital - - - - ------------------------------------------------------------------------------------------------------------------- - - - - ------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) in cash position (24) (25) (83) (104) Cash, beginning of period 243 355 302 434 --------------------------------------------------------------------------------------------------------------------------------- Cash, end of period 219 330 219 330 =================================================================================================================================

10 PEAKSOFT MULTINET CORPORATION CONSOLIDATED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (PREPARED BY MANAGEMENT - UNAUDITED) NINE MONTHS ENDED 30 JUNE 2007 AND 2006 The Company is incorporated under the Laws of Alberta, Canada and its principal business activities are providing Internet software to corporate and individual users, and providing Internet portal facilities. 1. CONTINUING OPERATIONS: These consolidated financial statements have been prepared using generally accepted accounting principles that are applicable to a going concern, not withstanding that the Company incurred significant operating losses in the current and prior years. This basis of preparation may be inappropriate because significant doubt exists about the appropriateness of the going concern assumption. The Company's ability to continue as a going concern is dependent upon obtaining additional external financing and on the attainment of profitable operations. Management is of the opinion that external financing will remain in place and that additional external financing will be obtained to enable the execution of its plan to concentrate on providing software for vertical markets. For this reason, the financial statements do not reflect adjustments in the carrying values of the assets and liabilities, the reported revenues and expenses and the balance sheet classifications used that would be necessary if the going concern assumption were not appropriate. 2. SIGNIFICANT ACCOUNTING POLICIES: (a) PRINCIPLES OF CONSOLIDATION: The consolidated financial statements include the accounts of the Company and its wholly owned American subsidiary, PeakSoft Multinet Corp.-USA. All significant inter-company transactions and balances have been eliminated on consolidation. (b) REVENUE RECOGNITION: Revenue from product sales is recognized as the products are sold and title to the product is transferred. Revenue from service contracts is recognized when the work is completed. (c) FOREIGN CURRENCY TRANSLATION: Foreign currency transactions entered into directly by the Company as well as the financial statements of the integrated foreign operations are translated using the temporal method. Under this method, monetary assets and liabilities are translated at year-end exchange rates. Other balance sheet items are translated at historical exchange rates. Income statement items are translated at average rates of exchange prevailing during the year except for depreciation expense, which is translated at historical rates. Translation gains and losses are included in income except for unrealized gains and losses arising from the translation of long-term monetary assets and liabilities which are deferred and amortized over the remaining lives of related items. (d) RESEARCH AND DEVELOPMENT: Research costs are charged to operations as incurred. Development costs are charged to operations as incurred unless they meet the criteria for deferral under generally accepted accounting principles. (e) USE OF ESTIMATES: The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant areas requiring the use of management estimates relate to the determination of net recoverable value of assets, in particular as it relates to acquired research and development, useful lives for amortization, recognition of revenue and the determination of deferred revenue. (f) FINANCIAL INSTRUMENTS: The Company has applied retroactively the new accounting standard with respect to the presentation of financial instruments. 11 PEAKSOFT MULTINET CORPORATION CONSOLIDATED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (PREPARED BY MANAGEMENT - UNAUDITED) NINE MONTHS ENDED 30 JUNE 2007 AND 2006 3. NOTES PAYABLE: 2007 2006 $ $ --------------------------- Notes payable inclusive of interest 7,931,200 7,315,732 Promissory Note 308,516 243,989 --------------------------- 8,239,716 7,559,721 --------------------------- The note payable bears interest at 12% per annum with interest paid quarterly and no specific repayment terms. On 06 November 2005, the Company entered into a Promissory Note loan agreement with a Japanese corporation. The loans resulted from the interest by the two parties to have PeakSoft Multinet Corp. merge with an affiliate of the Japanese corporation. Accordingly, the Japanese corporation has advanced funds to PeakSoft Multinet Corp. for day to day operations until the merger decision is made. Upon closing of the merger, the initial CDN$125,000 loan will be applied to the purchase price of PeakSoft. Any amounts in excess of the $125,000 will converted to common shares at $0.26 per share. Interest accrues at a nominal interest rate per annum and the principal amount of the loan is secured by the pledge of shares in PeakSoft Multinet Corp, owned by the President. The interest accrued and charged will also be applied to the purchase price of PeakSoft Multinet 4. FAIR VALUE OF FINANCIAL INSTRUMENTS: The methods and assumptions used to estimate the fair value of each class of financial instruments for which it is practical to estimate a value are as follows: (a) SHORT-TERM FINANCIAL ASSETS AND LIABILITIES: The carrying amount of these financial assets and liabilities are a reasonable estimate of the fair values because of the short maturity of these instruments. Short-term financial assets comprise cash and accounts receivable. Short-term financial liabilities comprise accounts payable and accrued liabilities. (b) LONG-TERM FINANCIAL LIABILITIES: The carrying value of long-term financial assets and liabilities are a reasonable estimate of the fair values. 5. LOSS PER COMMON SHARE: Loss per common share is based on the weighted average number of common shares outstanding during the year. 12 PEAKSOFT MULTINET CORPORATION CONSOLIDATED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (PREPARED BY MANAGEMENT - UNAUDITED) NINE MONTHS ENDED 30 JUNE 2007 AND 2006 6. SHARE CAPITAL:TED][GRAPHIC OMITTED] SHARES AMOUNT # $ AUTHORIZED: Unlimited voting common shares without par value ISSUED: Balance, 01 October 1994 82,036 94,580 Issued amount year ended 30 September 1995: Issued to founders 293,018 -- Issued for cash 324,287 948,865 Issue for services and technology 19,407 45,700 Less share issuance costs -- (193,278) Issued amount year ended 30 September 1996: Issued for cash 143,893 667,500 Issued for services and technology 213,026 1,835,537 Issued amount year ended 30 September 1997: Issued for cash 443,158 2,496,498 Issued for services and technology 11,855 75,969 Less share issuance costs -- (191,916) Issued amount year ended 30 September 1998: Issued for cash 211,497 623,281 Issued amount year ended 30 September 1999: Issued for cash 2,052,743 2,981,847 Less share issuance costs -- (429,128) Issued amount year ended 30 September 2000: Issued for services 36,054 63,816 -------------------------- Balance, 31 December 2006, 2005, 2004, 2003, 2002, 2001 3,830,974 9,019,271 ========================== 13

PEAKSOFT MULTINET CORPORATION CONSOLIDATED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (PREPARED BY MANAGEMENT - UNAUDITED) NINE MONTHS ENDED 30 JUNE 2007 AND 2006 7. RELATED PARTY TRANSACTIONS: The following are related party transactions, not already disclosed elsewhere in the notes to the financial statements for the first Nine Months ended June 30, 2007 and 2007: 2007 2006 $ $ Salaries to directors and officers: 362,747 280,370 Interest accrued on notes due to shareholders: 272,516 272,156 ---------------------- 635,263 552,526 ====================== These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by related parties. 8. UNITED STATES GAAP RECONCILIATION: The consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") in Canada. These principles differ in the following material respects from those in the United States as summarized below: (a) LOSS AND LOSS PER SHARE FOR THE NINE MONTHS ENDED JUNE 30, 2007 AND 2006: 2007 2006 $ $ ------------------------ Loss in accordance with Canadian GAAP 679,080 594,144 ======================== Loss in accordance with United States GAAP 679,080 594,144 Loss per common share $0.18 $ 0.16 ------------------------ Weighted average number of shares used for calculation 3,830,974 3,830,974 ------------------------ (b) BALANCE SHEET: The amounts in the consolidated balance sheet that differ from those reported under Canadian GAAP are as follows: 30 JUNE 2007 30 JUNE 2006 CANADIAN UNITED STATES CANADIAN UNITED STATES GAAP GAAP GAAP GAAP $ $ $ $ ------------------------------------------------------------------ ~~Accumulated deficit 20,208,639 19,497,951 19,332,813 18,622,125 ==================================================================~~

14 PEAKSOFT MULTINET CORPORATION CONSOLIDATED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (PREPARED BY MANAGEMENT - UNAUDITED) NINE MONTHS ENDED 30 JUNE 2007 AND 2006 (c) STATEMENT OF CASH FLOWS: Cash used in operations and cash provided by financing activities would decrease by 2007 - $ nil and 2006 - $ nil. (d) RESEARCH AND DEVELOPMENT: In accordance with United States GAAP, research and development costs, including the costs of research and development acquired in a business combination is charged to operations as it is incurred. (e) STOCK BASED COMPENSATION: The Company records compensation expense for United States GAAP purposes following the intrinsic value principles of Accounting Principles Board Opinion 25, "Accounting for Stock Issued to Employees" (APB 25) in accounting for the options issued under the Company's stock option plan. Under APB 25, no compensation expense has been recognized for its stock based compensation plans. The Company has elected the disclosure provisions of Statement of Financial Accounting Standards No. 123 ("FAS 123"), "Accounting for Stock-Based Compensation," for United States GAAP purposes. Had compensation cost for the Company's stock option plan been determined based on the fair value at the grant date for awards under those plans consistent with the measurement provisions of FAS 123, the Company's loss and loss per share under United States GAAP would have been adjusted as follows: 2007 2006 $ $ -------------------------------- Loss - as reported 679,080 594,144 Loss per common share - as reported 0.18 0.16 Loss per common share - adjusted 0.18 0.16 The fair value of each option grant is estimated on the date of the grant using the following assumptions: 2007 2006 --------------------------------- Expected dividend yield 0% 0% Expected stock price volatility n/a. n/a. Risk-free interest rate n/a. n/a. Expected life of options n/a. n/a. 15 PEAKSOFT MULTINET CORPORATION CONSOLIDATED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (PREPARED BY MANAGEMENT - UNAUDITED) NINE MONTHS ENDED 30 JUNE 2007 AND 2006 (f) TAXATION: For U.S. GAAP purposes, income taxes are accounted for in accordance with Statement of Financial Accounting Standards No. 109 ("FAS 109"), "Accounting for Income Taxes." FAS 109 requires the asset and liability method whereby deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing asset and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided on deferred tax assets to the extent it is not more likely than not that such deferred tax assets will be realized. Under FAS 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. 9. COMMITMENTS: The Company has committed to reimbursing an officer for salaries unpaid. The amount recorded in the account is USD $2,512,473. The committed salary for the 2007 fiscal year is USD $343,665. 10. INCOME TAXES: The Company has non-capital losses from foreign and Canadian operation available for offset against future taxable income totaling approximately USD $5,200,000 in the United States and CDN $10,000,000 in Canada. The following is subject to regulatory and shareholder approval: (a) The Company has resolved to convert certain debts for shares at CDN $0.26 per share. If the shares for debt arrangement were to be in effect at this quarter end, the liabilities and shareholders' equity on the balance sheet would approximately be as follows: 2007 2006 $ $ ------------------------------- Liabilities - - Shareholder's Equity Share Capital 18,038,542 18,038,542 Accumulated Deficiency (20,208,639) (19,332,813) ------------------------------- (2,170,097) (1,294,271) =============================== (b) Subsequent to the approval and issuance of the shares pursuant to the shares for debt conversions, the Company will have 26,973,525 shares outstanding. 16 COMPANY INFORMATION: Corporate Headquarters PeakSoft Multinet Corp 3930 Meridian Street, Suite C117 Bellingham, WA 98226 USA Tel: (360) 961-1419 Investor Relations PeakSoft Multinet Corp. (360) 961-1419 Stock Listing PeakSoft Multinet Corp. common stock is listed on the TSX-V - NEX under the symbol PKS.H Auditor Gordon K. W. Gee, Chartered Accountant #601 - 325 Howe Street Vancouver, BC V6C 1Z7 Tel: (604) 273-7575 Fax: (604) 273-8475 Corporate Counsel Calvin Patterson Barristers & Solicitors Suite 107 - 20644 Eastleigh Crescent Langley, BC V3A 4C4 Tel: (604)-533-4708 Fax: (604)-533-4758 Transfer Agent Computershare Trust Company of Canada, Calgary, Alberta Directors Timothy W. Metz, Chairman of the Board Simon Arnison, Director Jesyka Anne Clarkson, Director Management Timothy W. Metz, Chief Executive Officer and President 17

PEAKSOFT MULTINET CORP 6-K