6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2020

Commission File Number: 000-52145

DIGATRADE FINANCIAL CORP

(Translation of registrant's name into English)

1500 West Georgia Street, Suite 1300

Vancouver, BC V6G-2Z6

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

[ X] Form 20-F   [   ] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): []

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): []

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [] No [ x ]

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 000-52145

SUBMITTED HEREWITH

DIGATRADE FILES Q2.2020 FINANCIAL STATEMENTS & MDA

For Immediate Release

Vancouver, British Columbia – July 28, 2020 – DIGATRADE FINANCIAL CORP (OTC.PK: DIGAF) a financial technology “Fintech” company today announced it has filed the Q2.2020 financial statements and MDA for period ended June 30, 2020 on Sedar and Edgar XBRL.

Forward-Looking Information

This press release contains certain “forward-looking information”. All statements, other than statements of historical fact, that address activities, events or development that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the company based on information currently available to the Company. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the possibility of unanticipated costs and expenses. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the company disclaims any intent or obligation to update any forward-looking information whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Digatrade Financial Corp  (Registrant)
Date: July 28, 2020	By:	/s/ Brad J. Moynes
		Brad J. Moynes
		Title: CEO

EX-99.1

  Exhibit 99.1

Digatrade Financial Corp.

June 30, 2020

(Expressed in Canadian Dollars)

Unaudited Interim Consolidated Financial Statements

	Page
Notice of No Auditor Review of Interim Consolidated Financial Statements	2
Unaudited Interim Consolidated Balance Sheets	3
Unaudited Interim Consolidated Statement of Equity	4
Unaudited Interim Consolidated Statements of Operations and Deficit	5
Unaudited Interim Consolidated Statements of Cash Flows	6
Notes to the Unaudited Interim Consolidated Financial Statements	7

Notice of No Auditor Review of Interim Consolidated Financial Statements

Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the interim consolidated financial statements they must be accompanied by a notice indicating that the interim consolidated financial statements have not been reviewed by an auditor.

The accompanying unaudited interim consolidated financial statements of the Company for the three months ended June 30, 2020 have been prepared by, and are the responsibility of, the Company’s management.

The Company’s independent auditor has not performed a review of these interim consolidated financial statements in accordance with standards established by the Chartered Public Accountants of Canada for a review of interim consolidated financial statements by an entity’s auditor.

“Bradley J. Moynes”

Bradley J. Moynes

President, Director & CEO

“Tyrone Docherty”

Tyrone Docherty

Director

2

DIGATRADE FINANCIAL CORP.

Interim Consolidated Balance Sheets

Unaudited – prepared by management

 (Expressed in Canadian Dollars)

	Note	June 30, 2020	December 31, 2019
		$	$
ASSETS
CURRENT
Cash		64,519	113,156
GST Recoverable		25,089	13,655
Deferred Loss on Derivatives	6	429,885	150,851
		519,493	277,662
Intangible Assets	4	29,840	26,761
		549,333	304,423
LIABILITIES
CURRENT
Trade and Other Payables	5	179,307	122,276
Loan payable	4	26,600	26,565
Convertible Promissory Notes – Liability Component	6	56,500	50,593
Derivative Liability	6	971,162	370,194
Promissory Notes	6	172,458	165,698
Total Liabilities		1,406,027	735,326
SHAREHOLDERS' (DEFICIENCY) EQUITY
Share Capital	7	8,189,754	7,460,158
Reserves		60,000	60,000
Accumulated Deficit		(8,908,957)	(7,793,332)
Total Equity (Deficiency) Attributable to Shareholders		(659,203)	(273,174)
Non-controlling interest	4	(197,491)	(157,729)
		549,333	304,423

Nature and Continuance of Operations (Note 1)

Approved on Behalf of the Board:

“Bradley J. Moynes”	“Tyrone Docherty”
Bradley J. Moynes Chairman, President, Director and CEO	Tyrone Docherty Chairman & Director

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

3

DIGATRADE FINANCIAL CORP.

Interim Consolidated Statement of Changes in Shareholders’ Equity

Unaudited – prepared by management

 (Expressed in Canadian Dollars)

	Note	Number of common shares	Number of Class “B” Common Shares	Share capital	Contributed Surplus	Deficit	Total Shareholders’ Deficiency	Non-Controlling Interest
`				$	$	$	$
Balance, December 31, 2018		226,411,904	100,000	6,047,999	-	(6,298,936)	(250,937)	-
Class B Common Shares Issued	7(b)(i)	-	1,000,000	100	-	-	100	-
Shares issued pursuant to conversion of Convertible Promissory Notes	7(b)(ii)	75,839,973	-	458,757	-	-	458,757	-
Incorporation of Controlled Subsidiary	4	-	-	-	-	-	-	342
Stock-based Compensation	7(c)	-	-	-	60,000	-	60,000	-
Net loss for the period		-	-	-	-	(612,458)	(612,458)	(12,139)
Balance, June 30, 2019		302,251,877	1,100,000	6,506,856	60,000	(6,911,394)	(344,538)	(11,797)-
Balance, December 31, 2019		582,564,926	1,100,000	7,460,158	60,000	(7,793,332)	(273,174)	(157,729)
Class B Common Shares Issued	7(b)(i)	-	1,000,000	100	-	-	100	-
Shares issued Conversion Convertible Promissory Notes	7(b)(iii)	634,625,154	-	729,496	-	-	729,496	-
Adjustment to Incorporation of Controlled Subsidiary	4	-	-	-	-	-	-	3,079
Net Comprehensive Loss		-	-	-	-	(1,115,625)	(1,115,625)	(42,841)
Balance, June 30, 2020		1,217,190,080	2,100,000	8,189,754	60,000	(8,908,957)	(659,203)	(197,491)

Authorized Share Capital (Note 9(a))

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

4

DIGATRADE FINANCIAL CORP.

(Formerly “Bit-X Financial Corporation”)

Interim Consolidated Statements of Operations, Comprehensive Loss and Deficit

Unaudited – prepared by management

 (Expressed in Canadian Dollars)

	Three Months ended		Six Months Ended
Three Months ended	June 30,	June 30,	June 30,	June 30,
	2020	2019	2020	2019
	$	$	$	$
EXPENSES
Note
Accounting, Audit and Legal	46,633	63,546	71,924	98,364
Consulting Expense	49,901	111,399	122,786	205,042
Finders Fees	-	34,182	-	54,746
Filing and Transfer Agent Fees	6,287	10,285	12,572	14,660
Management Fees	41,046	57,593	105,566	101,510
Stock-based Compensation	-	-	-	60,000
Travel and Administration Expenses	502	21,045	903	24,272
Marketing	118	15,312	4,516	30,933
Investor Relations Expense	-	20,096	-	20,096
Project Development Costs	18,831	-	36,355	-
	163,318	333,458	354,622	609,623
PROFIT (LOSS) BEFORE OTHER ITEMS	(163,318)	(333,458)	(354,622)	(609,623)
Foreign Exchange (Loss) Gain	2,439	16,272	(9,722)	19,681
Accretion Expense	(37,354)	-	(95943)	-
Interest Expense	(8,292)	(21,665)	(13,868)	34,655
Change in Fair Value on Derivative Instruments	(627,202)	-	(684,311)	-
NET PROFIT (LOSS) FOR THE PERIOD	(833,727)	(338,851)	(1,158,466)	(624,597)
Other Comprehensive Income			-	-
NET COMPREHENSIVE LOSS FOR THE PERIOD	(833,727)	(338,851)	(1,158,466)	(624,597)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO:
Shareholders of the Company	(810,199)	(326,712)	(1,115,625)	(612,458)
Non-Controlling Interest	(23,528)	(12,139)	(42,841)	(12,139)
POST-SHARE CONSOLIDATION (Note 10(b)(i))
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING	897,334,479	252,435,755	897,334,479	252,435,755
BASIC AND DILUTED (LOSS) PROFIT PER SHARE	$(0.0009)	$(0.001)	$(0.012)	$(0.01)

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

5

DIGATRADE FINANCIAL CORP.

Interim Consolidated Statements of Cash Flows

Unaudited – prepared by management

 (Expressed in Canadian Dollars)

	Three Months ended		Six Months Ended
	June 30,	June 30,	June 30,	June 30,
	2020	2019	2020	2019
	$	$	$	$
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net Profit (Loss) for the Period	(833,727)	(338,851)	(1,158,466)	(624,597)
Non-Cash Items
Unrealized foreign exchange (gains) losses	25	(3,464)	11,703	(17,438)
Realized foreign exchange (gains) losses on conversion of Convertible Promissory Notes	-	7,302	-	10,404
Amortization of prepaid expenses	-	9,458	-	19,927
Common Stock issued on conversion of Promissory Notes	477,394	-	729,496
Accretion Expense	37,354	-	95,943
Change in Valuation of Derivative Instruments	145,263	-	-45,136
Stock-based Compensation	-	-	-	60,000
Interest Accrued on Convertible Promissory Notes	8,292	3,493	13,868	16,419
Changes in Non-Cash Working Capital Accounts
GST Payable (Recoverable)	(3,830)	(3,151)	(11,434)	(5,709)
Accounts Payable and Accrued Liabilities	49,552	720	57,031	(21,798)
	(119,677)	(324,493)	(306,995)	(562,792)
FINANCING ACTIVITIES
Net Proceeds Received on Issuance of Promissory Notes	178,729	267,160	258,223	509,848
Advances from minority interest	-	30	35	30
Promissory Notes Repaid	-	-	-	(33596)
Proceeds on issuance of Class B Common Shares	100	-	100	100
	178,829	267,190	258,358	476,382
NET (DECREASE) INCREASE IN CASH	59,152	(57,303)	(48,637)	(86,410)
Cash (Bank Indebtedness), Beginning of the Period	5367	464,703	113,156	493,810
CASH, END OF THE PERIOD	64,519	407,400	64,519	407,400

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

6

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 1 – NATURE AND CONTINUANCE OF OPERATIONS

Digatrade Financial Corp. (the “Company”) is governed by the Business Corporations Act (British Columbia). The head office, principal address, and records office of the Company are located at 1500 West Georgia Street, Suite 1300, Vancouver, British Columbia, Canada, V6C 2Z6. The Company's common shares are listed on the NASDAQ Over-the-Counter Board (“OTCB”) exchange under the symbol "DIGAF".

In March 2015, the Company entered into an agreement with Mega Ideas Holdings Limited, dba ANX (“ANX”), a company incorporated and existing under the laws of Hong Kong. ANX owns a proprietary trading platform and provides operational support specializing in blockchain development services and exchange and transaction services for crypto-currencies. Effective October 17, 2018 the Company closed the online retail trading platform and shared liquidity order book with ANX International owing to low transaction volumes. The Company will continue to offer OTC trading for institutional customers and accredited traders while continuing to seek new opportunities within the blockchain and the financial technology sector.

In February 2019, the Company entered into a Definitive Agreement with Securter Inc. (“Securter”), a private Canadian corporation that is developing a proprietary, patent-pending credit card payment platform to significantly increase the security of online credit card payment processing (Note 5).

These unaudited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards on the basis that the Company is a going concern and will be able to meet its obligations and continue its operations for its next fiscal year. Several conditions as set out below cast uncertainties on the Company’s ability to continue as a going concern.

The Company’s ability to continue as a going concern is dependent upon the financial support from its creditors, shareholders, and related parties, its ability to obtain financing for its development projects, and upon the attainment of future profitable operations.

The Company has not yet achieved profitable operations and has accumulated losses of $8,908,957since inception and working capital deficiency of $886,534as at June 30, 2020. Accordingly, the Company will need to raise additional funds through future issuance of securities or debt financing. Although the Company has raised funds in the past, there can be no assurance the Company will be able to raise sufficient funds in the future, in which case the Company may be unable to meet its obligations as they come due in the normal course of business. It is not possible to predict whether financing efforts will be successful or if the Company will attain a profitable level of operations.

The current cash resources are not adequate to pay the Company’s accounts payable and to meet its minimum commitments at the date of these consolidated financial statements, including planned corporate and administrative expenses, and other project implementation costs, accordingly, there is significant doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not give effect to adjustments that would be necessary to the carrying amounts and classifications of assets and liabilities should the Company be unable to continue as a going concern.

7

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

a)

Basis of Presentation

These consolidated financial statements have been prepared on a historical cost basis except for financial instruments classified as available-for-sale that have been measured at fair value. Cost is the fair value of the consideration given in exchange for net assets.

b)

Statement of Compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These consolidated financial statements were approved and authorized for issue by the Board of Directors on July 22, 2020.

c)

Basis of Consolidation

These consolidated financial statements include the accounts of the Company and its subsidiaries (collectively, the “Company”). Intercompany balances and transactions are eliminated in preparing the consolidated financial statements. The following companies have been consolidated within these consolidated financial statements:

Entity	Country of Incorporation	Voting Control	Functional Currency
Digatrade Financial Corp.	Canada	Parent Company	Canadian Dollar
Digatrade Limited	Canada	100%	Canadian Dollar
Digatrade (UK) Limited	United Kingdom	100%	Pounds Sterling
Digatrade Limited	USA	100%	US Dollar
Securter Systems Inc	Canada	79% (Note 5)	Canadian Dollar

d)

Foreign Currency

These consolidated financial statements are presented in Canadian dollars, which is also the functional currency of the parent company. Each subsidiary determines its own functional currency (Note 2(c)) and items included in the financial statements of each subsidiary are measured using that functional currency.

i.

Transactions and Balances in Foreign Currencies

Foreign currency transactions are translated into the functional currency of the respective entity using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items at year-end exchange rates are recognized in profit or loss. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and are not retranslated. Non-monetary items measured at fair value are translated using the exchange rate at the date when fair value was determined.

ii.

Foreign Operations

On consolidation, the assets and liabilities of foreign operations are translated into Canadian dollars at the exchange rate prevailing at the reporting date and their revenues and expenses are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on the translation are recognized in other comprehensive income and accumulated in the currency translation reserve in equity. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognized in earnings and recognized as part of the gain or loss on disposal.

8

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)

e)

Financing and Finder’s Fees

Financing and finder’s fees relating to financial instruments with a term of one year or less are expensed in the period incurred. For financial instruments with a term of over one year, the fees are netted against the financial instruments and amortized over the term of the financial instruments.

f)

Share Capital

The Company records proceeds from share issuances, net of commissions and issuance costs.  Shares issued for other than cash consideration are valued at either: (i) the fair value of the asset acquired or the fair value of the liability extinguished at the measurement date under current market conditions, or (ii) the quoted price on the Over-the-Counter Bulletin Board in the United States based on the earliest of: the date the shares are issued, or the date the agreement to issue the shares is reached.

g)

Loss per Share

Basic loss per share is calculated by dividing net loss by the weighted average number of common shares issued and outstanding during the reporting period. Diluted loss per share is the same as basic loss per share, as the issuance of shares on the exercise of stock options and share purchase warrants is anti-dilutive.

h)

Share-Based Payments

The fair value method of accounting is used for share-based payment transactions. Under this method, the cost of stock options and other share-based payments is recorded based on the estimated fair value using the Black-Scholes option-pricing model at the grant date and charged to profit over the vesting period. The amount recognized as an expense is adjusted to reflect the number of equity instruments expected to vest.

Upon the exercise of stock options and other share-based payments, consideration received on the exercise of these equity instruments is recorded as share capital and the related share-based payment reserve is transferred to share capital. The fair value of unexercised equity instruments are transferred from reserve to retained earnings upon expiry.

i)

Income Taxes

Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity.

i.

Current Income Tax

Current income tax assets and liabilities comprise those claims from, or obligations to, fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the consolidated financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

9

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)

ii.

Deferred Income Tax

Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are always provided for in full.

Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future taxable income. Deferred tax assets and liabilities are offset only when the Company has a right and intention to offset current tax assets and liabilities from the same taxation authority.

Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in profit or loss, except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively.

j)

Revenue Recognition

Revenue is comprised of consulting fees and commissions earned on trades executed on the digital currency trading platform. Consulting fee income is recognized as the consulting services are provided. Commission is considered earned when a trade is completed by the Company’s customers. As the platform is not yet fully live, commissions and consulting fees earned have been accounted for as a recovery of development costs incurred.

k)

Financial Instruments

Commencing January 1, 2018, the Company adopted IFRS 9. The adoption of this new accounting standard did not have material impact to the Company’s consolidated financial statements.

IFRS 9 covers classification and measurement of financial assets. It replaces the multiple category and measurement models in IAS 39 Financial Instruments. The new standard contains three classifications for financial assets: measured at amortized cost, fair value through other comprehensive income (“FVTOCI”), and fair value through profit and loss (“FVTPL”). The new standard eliminates the previous IAS 39 categories of held to maturity, loan and receivables, and available for sale.

Recognition and Measurement for debt instruments with a new mixed measurement model having only two categories: amortized cost and fair value through profit or loss. Requirements for financial liabilities are largely carried forward from the existing requirements in IAS 39 except that fair value changes due to credit risk for liabilities designated at fair value through profit and loss are generally recorded in other comprehensive income.

Following is the new accounting policy for financial instruments under IFRS 9:

(i)

Classification

The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by- instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL.

10

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)

The following table shows the original classification under IAS 39 and the new classification under IFRS 9:

Financial assets	Classification under IAS 39	Classification under IFRS 9
Cash	FVTPL	Amortized cost
Accounts receivable	Notes and receivable	Amortized cost
Derivative assets	FVTPL	FVTPL
Financial liabilities	Classification under IAS 39	Classification under IFRS 9
Accounts payable and accrued liabilities	Other financial liabilities	Other financial liabilities
Short-term loan	Other financial liabilities	Other financial liabilities
Due to related parties	Other financial liabilities	Other financial liabilities
Derivative liabilities	FVTPL	FVTPL

There were no adjustments to the carrying amounts of financial instruments as a result of the change in classification from IAS39 to IFRS 9.

(ii)                  

Measurement

Financial assets and liabilities at amortized cost

Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment.

Financial assets and liabilities at FVTPL

Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the Consolidated Statements of Comprehensive Income. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the Consolidated Statements of Comprehensive Income in the period in which they arise.

(ii)

Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to twelve month expected credit losses. The Company shall recognize in the Consolidated Statements of Comprehensive Income, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized.

l)

Non-Controlling Interest

Non-controlling interest in the Company’s less than wholly owned subsidiary is classified as a separate component of equity. On initial recognition, non-controlling interest is measured at the fair value of the non-controlling entity’s contribution into the related subsidiary. Subsequent to the original transaction date, adjustments are made to the carrying amount of non-controlling interest for the non-controlling interest’s share of changes to the subsidiary’s equity.

11

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)

m)

Accounting Standards Effective January 1, 2019

IFRS 16 – Leases

IFRS 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, unless the lease term is 12 months or less or the underlying asset has a low value. Lessor accounting remains largely unchanged from IAS 17 “Leases”, and the distinction between operating and finance leases is retained. The standard is effective for annual periods beginning on or after January 1, 2019. The Company has determined that this standard did not have any impact on its consolidated financial statements.

NOTE 3 – SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

In the application of the Company’s accounting policies which are described in Note 2, management is required to make judgments, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Significant judgments, estimates, and assumptions that have the most significant effect on the amounts recognized in the consolidated financial statements are described below.

Deferred Tax Assets

Deferred tax assets, including those arising from unutilized tax losses, require management to assess the likelihood that the Company will generate sufficient taxable earnings in future periods in order to utilize recognized deferred tax assets. Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. In addition, future changes in tax laws could limit the ability of the Company to obtain tax deductions in future periods. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred tax assets recorded at the reporting date could be impacted.

Share-based Compensation

The fair value of share-based compensation is subject to the limitations of the Black-Scholes option pricing model that incorporates market data and involves uncertainty in estimates used by management in the assumptions. Because the Black-Scholes option pricing model requires the input of highly subjective assumptions, including the volatility of share prices, changes in subjective input assumptions can materially affect the fair value estimate.

Impairment of Intangible Assets

An impairment loss is recognized for the amount by which the asset’s or cash generating unit’s carrying amount exceeds its recoverable amount. To determine the recoverable amount, management estimates expected future cash flows from each asset or cash-generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. In the process of measuring expected future cash flows, management makes assumptions about future operating results. In addition, when determining the applicable discount rate, estimation is involved in determining the appropriate adjustments to market risk and asset-specific risk factors. These assumptions relate to future events and circumstances. Actual results may vary and may cause significant adjustments to the Company’s assets within the next financial year

12

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 4 – SECURTER SYSTEMS INC.

On February 26, 2019, the Company entered into an agreement with Securter Inc., in terms of which a newly formed corporation, Securter Systems Inc. (“SSI”) would acquire all the assets and liabilities of Securter Inc. Upon incorporation, SSI issued 25,937,594 Class A common shares to the shareholders of Securter Inc. and 100,000 Class B common shares to the Company. Each Class B common share is non-participating and carries 1,000 votes. The Company shall have the right to purchase up to 30.3% Class A common shares of SSI at a price of US$0.23 per share for a total purchase consideration of up to US$3,000,000.

During the six months ended June 30, 2020, certain adjustments to the value of the assets transferred to SSI upon incorporation totalling $3,078 were recognized.

During the six months ended June 30, 2020 a further 472,612 class A common shares of Securter Systems Inc. were issued to the Company. As at June 30, 2020, SSI had 26,624,115 Class A Common Shares issued and outstanding whereby the Company held 686,520 of Class A Shares of SSI. Together with the Company’s holding in Class B common shares, the Company held a voting interest of 79.5% and participating economic interest of 2.58% as at June 30, 2020.

The following is the summarized statement of financial position of Securter Systems Inc. as at June 30, 2020 and December 31, 2019:

	June 30, 2020	December 31, 2019
		$
Current
Assets	33,378	79
Liabilities	(51,653)	-
Total Current Net Assets	(18,275)	79
Non-Current
Assets	29,840	26,761
Liabilities	(26,600)	(26,565)
Total Non-Current Net Assets	3,240	196
Total Net Equity by Shareholders	(15,035)	275

The following is the summarized comprehensive loss of Securter Systems Inc. for the period from inception to the year ended December 31, 2019 and for the six months ended June 30, 2020.

	$
Net Loss for the period from inception to the year ended December 31, 2019	158,844
Net Loss for the six months ended June 30, 2020	47,386
	206,230

13

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 5 – TRADE AND OTHER PAYABLES

As at June 30, 2020 and December 31, 2019, the Company had the following amounts due to creditors:

	June 30, 2020	December 31, 2019
	$	$
Trade Payables	31,089	32,276
Accrued Liabilities	148,218	90,000
	179,307	122,276

NOTE 6 – CONVERTIBLE PROMISSORY NOTES

	Promissory Note	Convertible Promissory Note - Liability Component	Derivative Liability	Deferred Derivative Loss (Increase)	Totall
	$	$	$	$	$
Balance December 31, 2017	241,517	1,340,978	-	-	1,582,495
Proceeds net of transaction costs	-	440,587	1,576,119	(1,221,660)	795,046
Repayments	(31,762)	-	-	-	(31,762)
Conversions	-	(1,718,320)	(38,794)	-	(1757,114)
Fair value change	-	-	(803,986)	269,868	(534,118)
Interest expense	-	19,649	-	-	19,649
Accretion expense	-	7,039	-	-	7,039
Foreign exchange (gain) loss	-	(64,392)	-	-	(64,392)
Balance December 31, 2018	209,755	25,541	733,339	(951,792)	16,843
Proceeds net of transaction costs	-	13,328	1,517,944	(958,883)	572,389
Repayments	(33,596)	-	-	-	(33,596)
Conversions	-	(191,566)	(1,545,331)	356,990	(1,379,907)
Fair value change	-	-	(335,758)	1,402,834	1,067,076
Interest expense	-	58,470	-	-	58,470
Accretion expense	-	146,624	-	-	146,624
Foreign exchange (gain) loss	(10,461)	(1,804)	-	-	(12,265)
Balance December 31, 2019	165,698	50,593	370,194	(150,851)	435,634
Proceeds net of transaction costs	-	6,774	805,968	-554,519	258,223
Conversions	-	(419,134)	(166,673)	(143,689)	(729,496)
Fair value change	-	303,195	(38,327)	419,174	684,042
Interest expense	-	13,868	-	-	13,868
Accretion expense	-	96,212	-	-	96,212
Foreign exchange (gain) loss	6,759	4,992	-	-	11,751
Balance June 30, 2020	172,457	56,500	971,162	(429,885)	770,234

14

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 6 – CONVERTIBLE PROMISSORY NOTES (Continued)

The convertible bonds consisted of a liability component (“financial liability”) and an embedded derivative conversion feature (“derivative liability”) and contra asset account of deferred derivative loss due to significant amount of fair value of the derivative liability at inception in excess of the net proceeds. The net proceeds of these convertible bonds were first allocated to the fair value of the derivative liability. As the fair value of the derivative liability at inception exceeds the net proceeds, the indication of significant loss at inception exists. As a result, nominal values of US$1,000 per newly issued convertible bonds were allocated to the financial liability. The remaining balance was set up as deferred derivative loss as a contra asset account. The deferred derivative losses were then amortized to profit and loss over the life of the convertible bonds. Subsequent changes in fair value of the conversion feature were recognized at FVTPL (Note 2(k)).

a)

During the six months ended June 30, 2020, the Company issued certain convertible promissory notes. At inception, the net proceeds of $258,233 (US$194,925 or gross proceeds of US$209,500 net of US$13,775 cash discount and transaction costs) were allocated to the derivative liability at $805,967 related to the conversion feature which was determined using the Black-Scholes option pricing model. The remaining balance of the net proceeds were then allocated to nominal values of $6,774 (U$1,000 per each convertible bond issued in 2020) and deferred derivative loss, a contra asset account of $554,518.

b)

During the six months ended June 30, 2020, the Company recognized through profit and loss the fair value change on the derivative liability and the amortization of the deferred derivative loss of $684042 (December 31, 2019 - $1,067,076). As at June 30, 2020, the fair value of the derivative liability related to the conversion feature of $971,162 (December 31, 2019 - $370,194) was determined using the Black-Scholes option pricing model based on the following assumptions: share price ranging from US$0.0006 to US$0.002; risk-free rate ranging from 0.25%; stock price volatility ranging from 238.3 to 295.1%; dividend yield of 0%; and expected life of conversion features ranging from 0.13 to .98 years.

c)

During the six months ended June 30, 2020, promissory notes with a face value of US$245,395 were converted into 634,625,154 common shares of the Company with a fair value of $729,396. (2019 - promissory notes with a face value of US$591,316 were converted into 356,153,022 common shares of the Company with a fair value of $1,379,907).

NOTE 7 – SHARE CAPITAL

a)

Authorized Capital

Unlimited number of common shares, participating, voting (voting right of 1 vote per share), with no par value.

2,100,000 Class “B” common shares, non-participating, voting (voting right of 1,000 votes per share), with no par value.

15

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 7 – SHARE CAPITAL (continued)

b)

Issued and Outstanding Common Shares

i.

On October 10, 2018, the Company passed a resolution authorizing the creation of a new 100,000 Class “B” common shares with the following characteristics: non-participating, no par value, and with the voting right of 1,000 votes per share.

On the same day, the Company issued 100,000 Class “B” common shares at $0.001 per share for total proceeds of $100 to a shareholder who is also a Director and Officer of the Company

On January 2, 2019, the Company passed a resolution to increase the authorized number of Class “B” common shares from 100,000 to 1,100,000.

On the same day, the Company issued 1,000,000 Class “B” common shares at $0.0001 per share for total proceeds of $100 to a shareholder who is also a Director and Officer of the Company.

On April 14, 2020, the Company passed a resolution to increase the authorized number of Class “B” common shares from 1,100,000 to 2,100,000. On the same day, the Company issued 1,000,000 Class “B” common shares at $0.0001 per share for total proceeds of $100 to a shareholder who is also a Director and Officer of the Company.

ii.

During the six months ended June 30, 2019, the Company converted promissory notes with face value of US$414,009 into 75,839,973 common shares of the Company. $458,757 were allocated to the share capital related to these promissory note conversions

iii.

During the six months ended June 30, 2020, the Company issued 634,625,154 common shares of the Company with a fair value of $729,496 pursuant to the conversion of certain convertible promissory notes.

c)

Share-Based Payments

During the six months ended June 30, 2019, the Company granted 10 million share purchase options at an exercise price of U$0.006 without any specified expiration date. The Company estimated the share-based compensation at $60,000 using Black-Scholes with the assumptions of risk free rate of 1.68%, volatility of 268% and option life of 7 years.

d)

Share Purchase Warrants

The Company had no share purchase warrants outstanding for the years ended December 31, 2019, 2018, and 2017.

16

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 7 – SHARE CAPITAL (continued)

e)

Share Options

On February 14, 2019, the Company granted 5,750,000 stock options to directors of the Company and 4,250,000 stock options to consultants. The options have an exercise price of US$0.006 and expire on February 14, 2027.

The continuity of share options for the three months ended June 30, 2020 is summarized below:

Expiry Date	Exercise Price	January 1, 2020	Granted	Exercised	Cancelled	June 30, 2020
February 14, 2027	$US0.006	-	10,000,000	-	-	10,000,000

The Company did not have any share options in issue prior to January 1, 2019.

f)

Escrow Shares

On September 19, 2014, the Company entered into an escrow agreement with a creditor. The Company agreed to pay the creditor $2,500 upon signing of the agreement and to issue 1,500 shares to be held in escrow. The Company was obligated to pay the creditor a further $7,334 (US$6,687) forty-five days after the Company’s stock becomes DWAC- eligible. On December 22, 2016, the Company paid $5,374 (US$4,000) and the creditor agreed to release these shares from escrow.

As of June 30, 2020, 2019, the 1,500 shares were held in trust by the corporate lawyer and have not been returned to the Company’s Treasury.

NOTE 8 – COMMITMENTS

a)

Crypto Currency Deposit and Exchange Services

On June 30, 2015, the Company entered into an agreement with Mega Idea Holdings Limited, dba ANX (“ANX”), to provide Crypto-currency deposit and exchange services. Pursuant to the terms of the agreement, the Company is required to pay monthly maintenance fees of US$10,000 for maintenance and support of the exchange platform. The agreement with ANX was for a term of three years.

On April 7, 2017 (the “effective date”), the Company entered into a revised agreement with ANX. Pursuant to the terms of the revised agreement, the Company was required to pay monthly maintenance fees of US$1,500 for the first six months commencing the first month after the effective date, and US$5,000 thereafter. The revised agreement with ANX was for a term of two years.

On October 15, 2018, the Company and ANX agreed to terminate the Crypto Currency Deposit and Exchange Services Agreement. The Company paid ANX $32,770 (US$25,000) in full settlement of all outstanding liabilities and realized a gain of $7,158 on the termination of the agreement

17

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 8 – COMMITMENTS (continued)

b)

Consulting Contracts

i.

On June 1, 2018 the Company entered into a consulting agreement for the provision of strategic business advisory services for a period of one year. The Company agreed to issue a convertible promissory note in the amount of US$50,000 and pay the consultant US$10,000 per month. (Notes 9(e)).

ii.

On October 22, 2018, the Company entered into a consulting contract with a Director for the provision of strategic business advisory services for a period of four months. The Company agreed to pay the Director $2,500 per month.

c)

Finder Fee Agreement

On June 24, 2020, the Company entered into a Finders Fee Agreement with an unrelated third party. The Company agreed to pay a finders fee in the amount of 2% of the gross amount of any debt or equity investment from a party introduced by the third party.

NOTE 9 – RELATED PARTIES TRANSACTIONS

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed. Details of transactions between the Company and other related parties, in addition to those transactions disclosed elsewhere in these consolidated financial statements, are described below. All related party transactions were in the ordinary course of business and were measured at their exchange amounts.

b)            

Compensation of Key Management Personnel

The Company incurred management fees for services provided by key management personnel for the three months ended June 30, 2020 and 2019 as described below.

	Three Months ended		Six Months Ended
	June 30,	June 30,	June 30,	June 30,
	2020	2019	2020	2019
	$	$	$	$
Management Fees	41,046	57,593	105,566	101,510
Stock-based Compensation	-	-	-	30,000
	41,046	57,593	105,566	131,510

18

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 10 – SUBSEQUENT EVENTS

a)

Issuance of Convertible Promissory Note

On July 6, 202, the Company issued a convertible promissory note in the amount of US$33,000. At inception, the net proceeds of $40,609 (US$30,000)) were allocated to the derivative liability at $89,588, related to the conversion feature which was determined using the Black-Scholes option pricing model. The remaining balance of the net proceeds were then allocated to nominal values of $1,354 (U$1,000) and deferred derivative loss, a contra asset account in the amount of $550,334.

b)

Issuance of Securter Systems Inc. Class A Common Shares

On July 8, 2020, 163,472 class A common shares of Securter Systems Inc. were issued to shareholders whereby 173,913 of these shares were issued to the Company. The Company held a voting interest of 79.2% and a participating economic interest of 3.19% after these issuances.

c)

2020 COVID-19 Pandemic

The outbreak of the COVID-19 virus and the worldwide pandemic has impacted the Company’s plans and activities. The Company may face disruption to operations, supply chain delays, travel and trade restrictions, and impacts on economic activity in affected countries or regions can be expected and are difficult to quantify. Regional disease outbreaks and pandemics represent a serious threat to hiring and maintaining a skilled workforce and could be a major health-care challenge for the Company. There can be no assurance that the Company’s personnel will not be impacted by these regional disease outbreaks and pandemics and ultimately that the Company would see its workforce productivity reduced or incur increased medical costs and insurance premiums as a result of these health risks.

In addition, the pandemic has created a dramatic slowdown in the global economy. The duration of the outbreak and the resulting travel restrictions, social distancing recommendations, government response actions, business disruptions and business closures may have an impact on the Company’s operations and access to capital. There can be no assurance that the Company will not be impacted by adverse consequences that may be brought about by the pandemic’s impact on global industrial and financial markets which may reduce prices in general, share prices and financial liquidity thereby severely limiting access to essential capital.

NOTE 11 – FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company is exposed to various risks in relation to financial instruments. The Company’s financial assets and liabilities by category are summarized in Note 2(k). The Company’s risk management is coordinated in close co-operation with the board of directors and focuses on actively securing the Company’s short to medium-term cash flows and raising financing for the Company’s capital expenditure program. The Company does not actively engage in the trading of financial assets for speculative purposes.

The most significant financial risks to which the Company is exposed are as follows:

a)

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company is dependent upon the availability of credit from its suppliers and its ability to generate sufficient funds from equity and debt financing to meet current and future obligations. The Company has a working capital deficiency of $530,302as at June 30, 2020. There can be no assurance that such debt or equity financing will be available to the Company.

19

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 11 – FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)

b)

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as the interest rates associated with the convertible promissory notes are fixed.

c)

Credit Risk

Credit risk is the risk of loss associated with a counter party’s inability to fulfill its payment obligations. As the Company is in the development stage and has not yet commenced commercial production or sales, it is not exposed to significant credit risk.

d)

Foreign Exchange Risk

Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk to the extent it incurs currency exchange platform service and development expenditures and operating costs in foreign currencies including the U.S. Dollar. The Company does not hedge its exposure to fluctuations in the related foreign exchange rates.

e)

Fair Values

The Company uses the following hierarchy for determining fair value measurements:

Level 1: 

Quoted prices in active markets for identical assets or liabilities.

Level 2: 

Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: 

Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement. The Company’s financial instruments were measured at fair value using Level 1 valuation technique during the three months ended June 30, 2020 and during the years ended December 31, 2019, 2018 and 2017. The carrying values of the Company’s financial assets and liabilities approximate their fair values.

20

DIGATRADE FINANCIAL CORP.

Notes to the Interim Consolidated Financial Statements

June 30, 2020

(Expressed in Canadian Dollars)

NOTE 12 – CAPITAL MANAGEMENT

The Company’s objective for managing its capital structure is to safeguard the Company’s ability to continue as a going concern and to ensure it has the financial capacity, liquidity and flexibility to fund its ongoing operations and capital expenditures.

The Company manages its share capital as capital, which as at June 30, 2020, amounted to $8,189,654. At this time, the Company’s access to the debt market is limited and it relies on equity issuances and the support of shareholders to fund the development of its trading platform. The Company monitors capital to maintain a sufficient working capital position to fund annualized administrative expenses and capital investments.

As at June 30, 2020, the Company had a working capital deficiency of 886,534. The Company will issue shares and may from time to time adjust its capital spending to maintain or adjust the capital structure. There can be no assurance that the Company will be able to obtain debt or equity capital in the case of operating cash deficits.

The Company’s share capital is not subject to external restrictions. The Company has not paid or declared any dividends since the date of incorporation, nor are any contemplated in the foreseeable future. There were no changes in the Company’s approach to capital management during the three months ended June 30, 2020.

21

EX-99.2

Form 52-109FV2

Certification of Interim Filings

Venture Issuer Basic Certificate

I, Brad J. Moynes, Chief Financial Officer of Digatrade Financial Corp., certify the following:

1. 

Review:I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Digatrade Financial Corp. (the “issuer”) for the interim period ended June 30, 2020

2. 

No misrepresentations:Based on my knowledge, having exercised reasonable diligence, 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. 

Fair presentation:Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

Date: July 28, 2020

/s/ Brad J. Moynes

-------------------------

Brad J. Moynes

Chief Financial Officer

NOTE TO READER

In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of

i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

ii) a process 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.

The issuer’s certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.

EX-99.3

  Exhibit 99.3

Form 52-109FV2

Certification of Interim Filings

Venture Issuer Basic Certificate

I, Brad J. Moynes, Chief Executive Officer of Digatrade Financial Corp., certify the following:

1. 

Review:I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Digatrade Financial Corp. (the “issuer”) for the interim period ended June 30, 2020

2. 

No misrepresentations:Based on my knowledge, having exercised reasonable diligence, 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. 

Fair presentation:Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

Date: July 28, 2020

/s/ Brad J. Moynes

-------------------------

Brad Moynes

Chief Executive Officer

NOTE TO READER

In contrast to the certificate required for non-venture issuers under National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (NI 52-109), this Venture Issuer Basic Certificate does not include representations relating to the establishment and maintenance of disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as defined in NI 52-109. In particular, the certifying officers filing this certificate are not making any representations relating to the establishment and maintenance of

i) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

ii) a process 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.

The issuer’s certifying officers are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in this certificate. Investors should be aware that inherent limitations on the ability of certifying officers of a venture issuer to design and implement on a cost effective basis DC&P and ICFR as defined in NI 52-109 may result in additional risks to the quality, reliability, transparency and timeliness of interim and annual filings and other reports provided under securities legislation.

EX-99.4

  Exhibit 99.4

Form 51-102F3

Material Change Report

Item 1

Name and Address of Company

Digatrade Financial Corp.

1500 West Georgia Street, Suite 1300

Vancouver, BC V6G-2Z6

Item 2

Date of Material Change

July 28, 2020

Item 3

News Release

July 28, 2020

Dissemination via Sedar and under Form 6-K on Edgar

Item 4

Summary of Material Change

DIGATRADE FINANCIAL CORP FILES Q2.2020 FINANCIAL STATEMENTS

Item 5

Full Description of Material Change

5.1                       

Full Description of Material Change

Vancouver, British Columbia – July 28, 2020 – DIGATRADE FINANCIAL CORP (OTC.PK: DIGAF) a financial technology “Fintech” company today announced it has filed the Q2.2020 financial statements and MDA for period ended June 30, 2020 on Sedar and Edgar XBRL.

5.2                       

Disclosure for Restructuring Transactions

None

Item 6

Reliance on subsection 7.1(2) of National Instrument 51-102

None

Item 7

Omitted Information

None

Item 8

Executive Officer

Brad J. Moynes, CEO

+1(604) 200-0071

Item 9

Date of Report

July 28, 2020

EX-99.5

Exhibit 99.5

  _____________________________________________________________________________________

DIGATRADE FILES Q2-2020 FINANCIAL STATEMENTS & MDA

_____________________________________________________________________________________

Vancouver, British Columbia / ACCESSWIRE / July 27th, 2020 - DIGATRADE FINANCIAL CORP (OTCPK: DIGAF), www.DigatradeFinancial.com, a financial technology services company, today announced that its Q2 financial statements have been filed on Sedar and Edgar XBRL for period ended June 30, 2020.

More information will be made available when it materializes.

ABOUT DIGATRADE

DIGATRADE is a Financial Technology “fintech” services company. Digatrade is developing various payment industry process improvements that are proprietary. They represent a next generation platform for security and convenience in a variety of modalities, including online credit card payment system, globally, through its new subsidiary; Securter Systems, Inc. Digatrade is targeting numerous fintech service licensing vehicles, also including blockchain derived applications. Digatrade Financial Corp. is located in Vancouver, British Columbia, and publicly listed on the OTC.PK under the trading symbol DIGAF.  DIGAF is a reporting issuer in the Province of British Columbia, Canada with the British Columbia Securities Commission "BCSC" and in the United States with the Securities Exchange Commission "SEC".

ABOUT SECURTER

Securter Systems, Inc. is a subsidiary of Digatrade Financial Corp. that is developing proprietary, patent-pending credit card payment platform innovations to increase the security of online credit card payment processing, globally. Securter technology reduces immense losses by financial institutions and merchants that arise from fraudulent credit card use. Securter technology also protects cardholder privacy by eliminating the need to distribute credit card details to multiple commercial 3rd parties, where such information is ordinarily stored, becoming vulnerable to theft or manipulation. Securter technology can and will be integrated into complementary payment methods and fintech protocols, including cryptocurrency and other blockchain derivatives to come for independent platforms. Securter has internal R&D capability and management as well as external fintech business relationships to support Digatrade’s overall business mission.

a)

CORPORATE CONTACT INFORMATION:

Digatrade Financial Corp

1500 West Georgia Street, 1300

Vancouver, BC V6G 2Z6 Canada

Tel: +1(604) 200-0071

Fax: +1(604) 200-0072

www.DigatradeFinancial.com

I

Forward-Looking Information

This press release contains certain “forward-looking information”. All statements, other than statements of historical fact, that address activities, events or development that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information. This forward-looking information reflects the current expectations or beliefs of the company based on information currently available to the Company. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, the possibility of unanticipated costs and expenses. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the company disclaims any intent or obligation to update any forward-looking information whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2020
Document And Entity Information
Entity Registrant Name	Digatrade Financial Corp
Entity Central Index Key	0001369128
Document Type	6-K
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

XML

Interim Consolidated Balance Sheets - CAD ($)	Jun. 30, 2020	Dec. 31, 2019
Current
Cash	$ 64,519	$ 113,156
GST recoverable	25,089	13,655
Deferred loss on derivatives	429,885	150,851
Total current assets	519,493	277,662
Intangible assets	29,840	26,761
Total assets	549,333	304,423
Current
Trade and other payables	179,307	122,276
Loan payable	26,600	26,565
Convertible promissory notes - liability component	56,500	50,593
Derivative liability	971,162	370,194
Promissory notes	172,458	165,698
Total liabilities	1,406,027	735,326
SHAREHOLDERS' (DEFICIENCY) EQUITY
Share capital	8,189,754	7,460,158
Reserves	60,000	60,000
Accumulated deficit	(8,908,957)	(7,793,332)
Total equity (deficiency) attributable to shareholders	(659,203)	(273,174)
Non-controlling interest	(197,491)	(157,729)
Total liabilities and shareholders' equity (deficiency)	$ 549,333	$ 304,423

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Interim Consolidated Statement of Changes in Shareholders' Equity - CAD ($)	Common Shares	Class "B" Common Shares	Share Capital	Contributed Surplus	Deficit	Total	Non-Controlling Interest
Beginning balance, shares at Dec. 31, 2018	226,411,904	100,000
Beginning balance, amount at Dec. 31, 2018			$ 6,047,999	$ 0	$ (6,298,936)	$ (250,937)	$ 0
Class B common shares issued, shares		1,000,000
Class B common shares issued, amount			100			100
Shares issued pursuant to conversion of convertible promissory notes, shares	75,839,973
Shares issued pursuant to conversion of convertible promissory notes, amount			458,757			458,757
Incorporation of controlled subsidiary							342
Stock-based compensation				60,000		60,000
Net loss for the period					(612,458)	(612,458)	(12,139)
Ending balance, shares at Jun. 30, 2019	302,251,877	1,100,000
Ending balance, amount at Jun. 30, 2019			6,506,856	60,000	(6,911,394)	(344,538)	(11,797)
Beginning balance, shares at Dec. 31, 2019	582,564,926	1,100,000
Beginning balance, amount at Dec. 31, 2019			7,460,158	60,000	(7,793,332)	(273,174)	(157,729)
Class B common shares issued, shares		1,000,000
Class B common shares issued, amount			100			100
Shares issued pursuant to conversion of convertible promissory notes, shares	634,625,154
Shares issued pursuant to conversion of convertible promissory notes, amount			729,496			729,496
Incorporation of controlled subsidiary							3,079
Stock-based compensation						0
Net loss for the period					(1,115,625)	(1,115,625)	(42,841)
Ending balance, shares at Jun. 30, 2020	1,217,190,080	2,100,000
Ending balance, amount at Jun. 30, 2020			$ 8,189,754	$ 60,000	$ (8,908,957)	$ (659,203)	$ (197,491)

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Interim Consolidated Statements of Operations, Comprehensive Loss and Deficit - CAD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
EXPENSES
Accounting, audit, and legal	$ 46,633	$ 63,546	$ 71,924	$ 98,364
Consulting expense	49,901	111,399	122,786	205,042
Finders fees	0	34,182	0	54,746
Filing and transfer agent fees	6,287	10,285	12,572	14,660
Management fees	41,046	57,593	105,566	101,510
Stock-based compensation	0	0	0	60,000
Travel and administration expenses	502	21,045	903	24,272
Marketing	118	15,312	4,516	30,933
Investor relations expense	0	20,096	0	20,096
Project development costs	18,831	0	36,355	0
Total expenses	163,318	333,458	354,622	609,623
Profit (loss) before other items	(163,318)	(333,458)	(354,622)	(609,623)
Foreign exchange (loss) gain	2,439	16,272	(9,722)	19,681
Accretion expense	(37,354)	0	(95,943)	0
Interest expense	(8,292)	(21,665)	(13,868)	(34,655)
Change in fair value on derivative instruments	(627,202)	0	(684,311)	0
Net profit (loss) for the period	(833,727)	(338,851)	(1,158,466)	(624,597)
Other comprehensive income	0	0	0	0
Net comprehensive loss for the period	(833,727)	(338,851)	(1,158,466)	(624,597)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO:
Shareholders of the Company	(810,199)	(326,712)	(1,115,625)	(612,458)
Non-controlling interest	$ (23,528)	$ (12,139)	$ (42,841)	$ (12,139)
Weighted average number of shares outstanding	897,334,479	252,435,755	897,334,479	252,435,755
Basic and diluted (loss) profit per share	$ (0.0009)	$ (0.001)	$ (0.012)	$ (0.01)

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Interim Consolidated Statements of Cash Flows - CAD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CASH PROVIDED BY (USED IN): OPERATING ACTIVITIES
Net profit (loss) for the period	$ (833,727)	$ (338,851)	$ (1,158,466)	$ (624,597)
Non-Cash Items
Unrealized foreign exchange (gains) losses	25	(3,464)	11,703	(17,438)
Realized foreign exchange (gains) losses on conversion of convertible promissory notes	0	7,302	0	10,404
Amortization of prepaid expenses	0	9,458	0	19,927
Common stock issued on conversion of promissory notes	477,394	0	729,496	0
Accretion expense	37,354	0	95,943	0
Change in valuation of derivative instruments	145,263	0	(45,136)	0
Stock-based compensation	0	0	0	60,000
Interest accrued on convertible promissory notes	8,292	3,493	13,868	16,419
GST payable (recoverable)	(3,830)	(3,151)	(11,434)	(5,709)
Accounts payable and accrued liabilities	49,552	720	57,031	(21,798)
Cash flows provided by (used for) operating activities	(119,677)	(324,493)	(306,995)	(562,792)
CASH PROVIDED BY (USED IN): FINANCING ACTIVITIES
Net proceeds received on issuance of promissory notes	178,729	267,160	258,223	509,848
Advances from minority interest	0	30	35	30
Promissory notes repaid	0	0	0	(33,596)
Proceeds on issuance of Class B common shares	100	0	100	100
Cash flows provided by (used for) financing activities	178,829	267,190	258,358	476,382
Net (decrease) increase in cash	59,152	(57,303)	(48,637)	(86,410)
Cash (bank indebtedness), beginning of the period	5,367	464,703	113,156	493,810
Cash, end of the period	$ 64,519	$ 407,400	$ 64,519	$ 407,400

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NATURE AND CONTINUANCE OF OPERATIONS

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

NATURE AND CONTINUANCE OF OPERATIONS

Digatrade Financial Corp. (the “Company”) is governed by the Business Corporations Act (British Columbia). The head office, principal address, and records office of the Company are located at 1500 West Georgia Street, Suite 1300, Vancouver, British Columbia, Canada, V6C 2Z6. The Company's common shares are listed on the NASDAQ Over-the-Counter Board (“OTCB”) exchange under the symbol "DIGAF".

In March 2015, the Company entered into an agreement with Mega Ideas Holdings Limited, dba ANX (“ANX”), a company incorporated and existing under the laws of Hong Kong. ANX owns a proprietary trading platform and provides operational support specializing in blockchain development services and exchange and transaction services for crypto-currencies. Effective October 17, 2018 the Company closed the online retail trading platform and shared liquidity order book with ANX International owing to low transaction volumes. The Company will continue to offer OTC trading for institutional customers and accredited traders while continuing to seek new opportunities within the blockchain and the financial technology sector.

In February 2019, the Company entered into a Definitive Agreement with Securter Inc. (“Securter”), a private Canadian corporation that is developing a proprietary, patent-pending credit card payment platform to significantly increase the security of online credit card payment processing (Note 5).

These unaudited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards on the basis that the Company is a going concern and will be able to meet its obligations and continue its operations for its next fiscal year. Several conditions as set out below cast uncertainties on the Company’s ability to continue as a going concern.

The Company’s ability to continue as a going concern is dependent upon the financial support from its creditors, shareholders, and related parties, its ability to obtain financing for its development projects, and upon the attainment of future profitable operations.

The Company has not yet achieved profitable operations and has accumulated losses of $8,908,957 since inception and working capital deficiency of $886,534 as at June 30, 2020. Accordingly, the Company will need to raise additional funds through future issuance of securities or debt financing. Although the Company has raised funds in the past, there can be no assurance the Company will be able to raise sufficient funds in the future, in which case the Company may be unable to meet its obligations as they come due in the normal course of business. It is not possible to predict whether financing efforts will be successful or if the Company will attain a profitable level of operations.

The current cash resources are not adequate to pay the Company’s accounts payable and to meet its minimum commitments at the date of these consolidated financial statements, including planned corporate and administrative expenses, and other project implementation costs, accordingly, there is significant doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not give effect to adjustments that would be necessary to the carrying amounts and classifications of assets and liabilities should the Company be unable to continue as a going concern.

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Presentation

These consolidated financial statements have been prepared on a historical cost basis except for financial instruments classified as available-for-sale that have been measured at fair value. Cost is the fair value of the consideration given in exchange for net assets.

b) Statement of Compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These consolidated financial statements were approved and authorized for issue by the Board of Directors on July 22, 2020.

c) Basis of Consolidation

These consolidated financial statements include the accounts of the Company and its subsidiaries (collectively, the “Company”). Intercompany balances and transactions are eliminated in preparing the consolidated financial statements. The following companies have been consolidated within these consolidated financial statements:

Entity	Country of Incorporation	Voting Control		Functional Currency
Digatrade Financial Corp.	Canada		Parent Company	Canadian Dollar
Digatrade Limited	Canada		100%	Canadian Dollar
Digatrade (UK) Limited	United Kingdom		100%	Pounds Sterling
Digatrade Limited	USA		100%	US Dollar
Securter Systems Inc	Canada		79% (Note 5)	Canadian Dollar

d) Foreign Currency

These consolidated financial statements are presented in Canadian dollars, which is also the functional currency of the parent company. Each subsidiary determines its own functional currency (Note 2(c)) and items included in the financial statements of each subsidiary are measured using that functional currency.

i. Transactions and Balances in Foreign Currencies

Foreign currency transactions are translated into the functional currency of the respective entity using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items at year-end exchange rates are recognized in profit or loss. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and are not retranslated. Non-monetary items measured at fair value are translated using the exchange rate at the date when fair value was determined.

ii. Foreign Operations

On consolidation, the assets and liabilities of foreign operations are translated into Canadian dollars at the exchange rate prevailing at the reporting date and their revenues and expenses are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on the translation are recognized in other comprehensive income and accumulated in the currency translation reserve in equity. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognized in earnings and recognized as part of the gain or loss on disposal.

e) Financing and Finder’s Fees

Financing and finder’s fees relating to financial instruments with a term of one year or less are expensed in the period incurred. For financial instruments with a term of over one year, the fees are netted against the financial instruments and amortized over the term of the financial instruments.

f) Share Capital

The Company records proceeds from share issuances, net of commissions and issuance costs.  Shares issued for other than cash consideration are valued at either: (i) the fair value of the asset acquired or the fair value of the liability extinguished at the measurement date under current market conditions, or (ii) the quoted price on the Over-the-Counter Bulletin Board in the United States based on the earliest of: the date the shares are issued, or the date the agreement to issue the shares is reached.

g) Loss per Share

Basic loss per share is calculated by dividing net loss by the weighted average number of common shares issued and outstanding during the reporting period. Diluted loss per share is the same as basic loss per share, as the issuance of shares on the exercise of stock options and share purchase warrants is anti-dilutive.

h) Share-Based Payments

The fair value method of accounting is used for share-based payment transactions. Under this method, the cost of stock options and other share-based payments is recorded based on the estimated fair value using the Black-Scholes option-pricing model at the grant date and charged to profit over the vesting period. The amount recognized as an expense is adjusted to reflect the number of equity instruments expected to vest.

Upon the exercise of stock options and other share-based payments, consideration received on the exercise of these equity instruments is recorded as share capital and the related share-based payment reserve is transferred to share capital. The fair value of unexercised equity instruments are transferred from reserve to retained earnings upon expiry.

i) Income Taxes

Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity.

i. Current Income Tax

Current income tax assets and liabilities comprise those claims from, or obligations to, fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the consolidated financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

ii. Deferred Income Tax

Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are always provided for in full.

Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future taxable income. Deferred tax assets and liabilities are offset only when the Company has a right and intention to offset current tax assets and liabilities from the same taxation authority.

Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in profit or loss, except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively.

j) Revenue Recognition

Revenue is comprised of consulting fees and commissions earned on trades executed on the digital currency trading platform. Consulting fee income is recognized as the consulting services are provided. Commission is considered earned when a trade is completed by the Company’s customers. As the platform is not yet fully live, commissions and consulting fees earned have been accounted for as a recovery of development costs incurred.

k) Financial Instruments

Commencing January 1, 2018, the Company adopted IFRS 9. The adoption of this new accounting standard did not have material impact to the Company’s consolidated financial statements.

IFRS 9 covers classification and measurement of financial assets. It replaces the multiple category and measurement models in IAS 39 Financial Instruments. The new standard contains three classifications for financial assets: measured at amortized cost, fair value through other comprehensive income (“FVTOCI”), and fair value through profit and loss (“FVTPL”). The new standard eliminates the previous IAS 39 categories of held to maturity, loan and receivables, and available for sale.

Recognition and Measurement for debt instruments with a new mixed measurement model having only two categories: amortized cost and fair value through profit or loss. Requirements for financial liabilities are largely carried forward from the existing requirements in IAS 39 except that fair value changes due to credit risk for liabilities designated at fair value through profit and loss are generally recorded in other comprehensive income.

Following is the new accounting policy for financial instruments under IFRS 9:

(i) Classification

The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by- instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL.

The following table shows the original classification under IAS 39 and the new classification under IFRS 9:

Financial assets	Classification under IAS 39	Classification under IFRS 9
Cash	FVTPL	Amortized cost
Accounts receivable	Notes and receivable	Amortized cost
Derivative assets	FVTPL	FVTPL
Financial liabilities	Classification under IAS 39	Classification under IFRS 9
Accounts payable and accrued liabilities	Other financial liabilities	Other financial liabilities
Short-term loan	Other financial liabilities	Other financial liabilities
Due to related parties	Other financial liabilities	Other financial liabilities
Derivative liabilities	FVTPL	FVTPL

There were no adjustments to the carrying amounts of financial instruments as a result of the change in classification from IAS39 to IFRS 9.

(ii)                   Measurement

Financial assets and liabilities at amortized cost

Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment.

Financial assets and liabilities at FVTPL

Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the Consolidated Statements of Comprehensive Income. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the Consolidated Statements of Comprehensive Income in the period in which they arise.

(ii) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to twelve month expected credit losses. The Company shall recognize in the Consolidated Statements of Comprehensive Income, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized.

l) Non-Controlling Interest

Non-controlling interest in the Company’s less than wholly owned subsidiary is classified as a separate component of equity. On initial recognition, non-controlling interest is measured at the fair value of the non-controlling entity’s contribution into the related subsidiary. Subsequent to the original transaction date, adjustments are made to the carrying amount of non-controlling interest for the non-controlling interest’s share of changes to the subsidiary’s equity.

m) Accounting Standards Effective January 1, 2019

IFRS 16 – Leases

IFRS 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, unless the lease term is 12 months or less or the underlying asset has a low value. Lessor accounting remains largely unchanged from IAS 17 “Leases”, and the distinction between operating and finance leases is retained. The standard is effective for annual periods beginning on or after January 1, 2019. The Company has determined that this standard did not have any impact on its consolidated financial statements.

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SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

In the application of the Company’s accounting policies which are described in Note 2, management is required to make judgments, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Significant judgments, estimates, and assumptions that have the most significant effect on the amounts recognized in the consolidated financial statements are described below.

Deferred Tax Assets

Deferred tax assets, including those arising from unutilized tax losses, require management to assess the likelihood that the Company will generate sufficient taxable earnings in future periods in order to utilize recognized deferred tax assets. Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. In addition, future changes in tax laws could limit the ability of the Company to obtain tax deductions in future periods. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred tax assets recorded at the reporting date could be impacted.

Share-based Compensation

The fair value of share-based compensation is subject to the limitations of the Black-Scholes option pricing model that incorporates market data and involves uncertainty in estimates used by management in the assumptions. Because the Black-Scholes option pricing model requires the input of highly subjective assumptions, including the volatility of share prices, changes in subjective input assumptions can materially affect the fair value estimate.

Impairment of Intangible Assets

An impairment loss is recognized for the amount by which the asset’s or cash generating unit’s carrying amount exceeds its recoverable amount. To determine the recoverable amount, management estimates expected future cash flows from each asset or cash-generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. In the process of measuring expected future cash flows, management makes assumptions about future operating results. In addition, when determining the applicable discount rate, estimation is involved in determining the appropriate adjustments to market risk and asset-specific risk factors. These assumptions relate to future events and circumstances. Actual results may vary and may cause significant adjustments to the Company’s assets within the next financial year

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SECURTER SYSTEMS INC.

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

SECURTER SYSTEMS INC.

On February 26, 2019, the Company entered into an agreement with Securter Inc., in terms of which a newly formed corporation, Securter Systems Inc. (“SSI”) would acquire all the assets and liabilities of Securter Inc. Upon incorporation, SSI issued 25,937,594 Class A common shares to the shareholders of Securter Inc. and 100,000 Class B common shares to the Company. Each Class B common share is non-participating and carries 1,000 votes. The Company shall have the right to purchase up to 30.3% Class A common shares of SSI at a price of US$0.23 per share for a total purchase consideration of up to US$3,000,000.

During the six months ended June 30, 2020, certain adjustments to the value of the assets transferred to SSI upon incorporation totalling $3,078 were recognized.

During the six months ended June 30, 2020 a further 472,612 class A common shares of Securter Systems Inc. were issued to the Company. As at June 30, 2020, SSI had 26,624,115 Class A Common Shares issued and outstanding whereby the Company held 686,520 of Class A Shares of SSI. Together with the Company’s holding in Class B common shares, the Company held a voting interest of 79.5% and participating economic interest of 2.58% as at June 30, 2020. 

The following is the summarized statement of financial position of Securter Systems Inc. as at June 30, 2020 and December 31, 2019:

	June 30, 2020			December 31, 2019
		$			$
Current
Assets		33,378			79
Liabilities		(51,653	)		—
Total Current Net Assets		(18,275	)		79
Non-Current
Assets		29,840			26,761
Liabilities		(26,600	)		(26,565	)
Total Non-Current Net Assets		3,240			196
Total Net Equity by Shareholders		(15,035	)		275

The following is the summarized comprehensive loss of Securter Systems Inc. for the period from inception to the year ended December 31, 2019 and for the six months ended June 30, 2020.

	$
Net Loss for the period from inception to the year ended December 31, 2019		158,844
Net Loss for the six months ended June 30, 2020		47,386
		206,230

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TRADE AND OTHER PAYABLES

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

TRADE AND OTHER PAYABLES

As at June 30, 2020 and December 31, 2019, the Company had the following amounts due to creditors:

	June 30, 2020		December 31, 2019
		$		$
Trade Payables		31,089		32,276
Accrued Liabilities		148,218		90,000
		179,307		122,276

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CONVERTIBLE PROMISSORY NOTES

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

CONVERTIBLE PROMISSORY NOTES

	Promissory Note			Convertible Promissory Note - Liability Component			Derivative Liability			Deferred Derivative Loss (Increase)			Total
		$			$			$			$			$
Balance December 31, 2017		241,517			1,340,978			—			—			1,582,495
Proceeds net of transaction costs		—			440,587			1,576,119			(1,221,660	)		795,046
Repayments		(31,762	)		—			—			—			(31,762	)
Conversions		—			(1,718,320	)		(38,794	)		—			(1757,114	)
Fair value change		—			—			(803,986	)		269,868			(534,118	)
Interest expense		—			19,649			—			—			19,649
Accretion expense		—			7,039			—			—			7,039
Foreign exchange (gain) loss		—			(64,392	)		—			—			(64,392	)
Balance December 31, 2018		209,755			25,541			733,339			(951,792	)		16,843
Proceeds net of transaction costs		—			13,328			1,517,944			(958,883	)		572,389
Repayments		(33,596	)		—			—			—			(33,596	)
Conversions		—			(191,566	)		(1,545,331	)		356,990			(1,379,907	)
Fair value change		—			—			(335,758	)		1,402,834			1,067,076
Interest expense		—			58,470			—			—			58,470
Accretion expense		—			146,624			—			—			146,624
Foreign exchange (gain) loss		(10,461	)		(1,804	)		—			—			(12,265	)
Balance December 31, 2019		165,698			50,593			370,194			(150,851	)		435,634
Proceeds net of transaction costs		—			6,774			805,968			-554,519			258,223
Conversions		—			(419,134	)		(166,673	)		(143,689	)		(729,496	)
Fair value change		—			303,195			(38,327	)		419,174			684,042
Interest expense		—			13,868			—			—			13,868
Accretion expense		—			96,212			—			—			96,212
Foreign exchange (gain) loss		6,759			4,992			—			—			11,751
Balance June 30, 2020		172,457			56,500			971,162			(429,885	)		770,234

The convertible bonds consisted of a liability component (“financial liability”) and an embedded derivative conversion feature (“derivative liability”) and contra asset account of deferred derivative loss due to significant amount of fair value of the derivative liability at inception in excess of the net proceeds. The net proceeds of these convertible bonds were first allocated to the fair value of the derivative liability. As the fair value of the derivative liability at inception exceeds the net proceeds, the indication of significant loss at inception exists. As a result, nominal values of US$1,000 per newly issued convertible bonds were allocated to the financial liability. The remaining balance was set up as deferred derivative loss as a contra asset account. The deferred derivative losses were then amortized to profit and loss over the life of the convertible bonds. Subsequent changes in fair value of the conversion feature were recognized at FVTPL (Note 2(k)).

a) During the six months ended June 30, 2020, the Company issued certain convertible promissory notes. At inception, the net proceeds of $258,233 (US$194,925 or gross proceeds of US$209,500 net of US$13,775 cash discount and transaction costs) were allocated to the derivative liability at $805,967 related to the conversion feature which was determined using the Black-Scholes option pricing model. The remaining balance of the net proceeds were then allocated to nominal values of $6,774 (U$1,000 per each convertible bond issued in 2020) and deferred derivative loss, a contra asset account of $554,518.

b) During the six months ended June 30, 2020, the Company recognized through profit and loss the fair value change on the derivative liability and the amortization of the deferred derivative loss of $684042 (December 31, 2019 - $1,067,076). As at June 30, 2020, the fair value of the derivative liability related to the conversion feature of $971,162 (December 31, 2019 - $370,194) was determined using the Black-Scholes option pricing model based on the following assumptions: share price ranging from US$0.0006 to US$0.002; risk-free rate ranging from 0.25%; stock price volatility ranging from 238.3 to 295.1%; dividend yield of 0%; and expected life of conversion features ranging from 0.13 to .98 years.

c) During the six months ended June 30, 2020, promissory notes with a face value of US$245,395 were converted into 634,625,154 common shares of the Company with a fair value of $729,396. (2019 - promissory notes with a face value of US$591,316 were converted into 356,153,022 common shares of the Company with a fair value of $1,379,907).

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SHARE CAPITAL

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

SHARE CAPITAL

a) Authorized Capital

Unlimited number of common shares, participating, voting (voting right of 1 vote per share), with no par value.

2,100,000 Class “B” common shares, non-participating, voting (voting right of 1,000 votes per share), with no par value.

b) Issued and Outstanding Common Shares

i. On October 10, 2018, the Company passed a resolution authorizing the creation of a new 100,000 Class “B” common shares with the following characteristics: non-participating, no par value, and with the voting right of 1,000 votes per share.

On the same day, the Company issued 100,000 Class “B” common shares at $0.001 per share for total proceeds of $100 to a shareholder who is also a Director and Officer of the Company

On January 2, 2019, the Company passed a resolution to increase the authorized number of Class “B” common shares from 100,000 to 1,100,000.

On the same day, the Company issued 1,000,000 Class “B” common shares at $0.0001 per share for total proceeds of $100 to a shareholder who is also a Director and Officer of the Company.

On April 14, 2020, the Company passed a resolution to increase the authorized number of Class “B” common shares from 1,100,000 to 2,100,000. On the same day, the Company issued 1,000,000 Class “B” common shares at $0.0001 per share for total proceeds of $100 to a shareholder who is also a Director and Officer of the Company.

ii. During the six months ended June 30, 2019, the Company converted promissory notes with face value of US$414,009 into 75,839,973 common shares of the Company. $458,757 were allocated to the share capital related to these promissory note conversions

iii. During the six months ended June 30, 2020, the Company issued 634,625,154 common shares of the Company with a fair value of $729,496 pursuant to the conversion of certain convertible promissory notes.

c) Share-Based Payments

During the six months ended June 30, 2019, the Company granted 10 million share purchase options at an exercise price of U$0.006 without any specified expiration date. The Company estimated the share-based compensation at $60,000 using Black-Scholes with the assumptions of risk free rate of 1.68%, volatility of 268% and option life of 7 years.

d) Share Purchase Warrants

The Company had no share purchase warrants outstanding for the years ended December 31, 2019, 2018, and 2017.

e) Share Options

On February 14, 2019, the Company granted 5,750,000 stock options to directors of the Company and 4,250,000 stock options to consultants. The options have an exercise price of US$0.006 and expire on February 14, 2027.

The continuity of share options for the three months ended June 30, 2020 is summarized below:

Expiry Date	Exercise Price		January 1, 2020		Granted		Exercised		Cancelled		June 30, 2020
February 14, 2027	$	US0.006		—		10,000,000		—		—		10,000,000

The Company did not have any share options in issue prior to January 1, 2019.

f) Escrow Shares

On September 19, 2014, the Company entered into an escrow agreement with a creditor. The Company agreed to pay the creditor $2,500 upon signing of the agreement and to issue 1,500 shares to be held in escrow. The Company was obligated to pay the creditor a further $7,334 (US$6,687) forty-five days after the Company’s stock becomes DWAC- eligible. On December 22, 2016, the Company paid $5,374 (US$4,000) and the creditor agreed to release these shares from escrow.

As of June 30, 2020, 2019, the 1,500 shares were held in trust by the corporate lawyer and have not been returned to the Company’s Treasury.

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COMMITMENTS

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

COMMITMENTS

a) Crypto Currency Deposit and Exchange Services

On June 30, 2015, the Company entered into an agreement with Mega Idea Holdings Limited, dba ANX (“ANX”), to provide Crypto-currency deposit and exchange services. Pursuant to the terms of the agreement, the Company is required to pay monthly maintenance fees of US$10,000 for maintenance and support of the exchange platform. The agreement with ANX was for a term of three years.

On April 7, 2017 (the “effective date”), the Company entered into a revised agreement with ANX. Pursuant to the terms of the revised agreement, the Company was required to pay monthly maintenance fees of US$1,500 for the first six months commencing the first month after the effective date, and US$5,000 thereafter. The revised agreement with ANX was for a term of two years.

On October 15, 2018, the Company and ANX agreed to terminate the Crypto Currency Deposit and Exchange Services Agreement. The Company paid ANX $32,770 (US$25,000) in full settlement of all outstanding liabilities and realized a gain of $7,158 on the termination of the agreement

b) Consulting Contracts

i. On June 1, 2018 the Company entered into a consulting agreement for the provision of strategic business advisory services for a period of one year. The Company agreed to issue a convertible promissory note in the amount of US$50,000 and pay the consultant US$10,000 per month. (Notes 9(e)).

ii. On October 22, 2018, the Company entered into a consulting contract with a Director for the provision of strategic business advisory services for a period of four months. The Company agreed to pay the Director $2,500 per month.

c) Finder Fee Agreement

On June 24, 2020, the Company entered into a Finders Fee Agreement with an unrelated third party. The Company agreed to pay a finders fee in the amount of 2% of the gross amount of any debt or equity investment from a party introduced by the third party.

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RELATED PARTIES TRANSACTIONS

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

RELATED PARTIES TRANSACTIONS

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed. Details of transactions between the Company and other related parties, in addition to those transactions disclosed elsewhere in these consolidated financial statements, are described below. All related party transactions were in the ordinary course of business and were measured at their exchange amounts.

b)             Compensation of Key Management Personnel

The Company incurred management fees for services provided by key management personnel for the three months ended June 30, 2020 and 2019 as described below.

	Three Months ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2020		2019		2020		2019
		$		$		$		$
Management Fees		41,046		57,593		105,566		101,510
Stock-based Compensation		—		—		—		30,000
		41,046		57,593		105,566		131,510

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

SUBSEQUENT EVENTS

a) Issuance of Convertible Promissory Note

On July 6, 202, the Company issued a convertible promissory note in the amount of US$33,000. At inception, the net proceeds of $40,609 (US$30,000)) were allocated to the derivative liability at $89,588, related to the conversion feature which was determined using the Black-Scholes option pricing model. The remaining balance of the net proceeds were then allocated to nominal values of $1,354 (U$1,000) and deferred derivative loss, a contra asset account in the amount of $550,334.

b) Issuance of Securter Systems Inc. Class A Common Shares

On July 8, 2020, 163,472 class A common shares of Securter Systems Inc. were issued to shareholders whereby 173,913 of these shares were issued to the Company. The Company held a voting interest of 79.2% and a participating economic interest of 3.19% after these issuances.

c) 2020 COVID-19 Pandemic

The outbreak of the COVID-19 virus and the worldwide pandemic has impacted the Company’s plans and activities. The Company may face disruption to operations, supply chain delays, travel and trade restrictions, and impacts on economic activity in affected countries or regions can be expected and are difficult to quantify. Regional disease outbreaks and pandemics represent a serious threat to hiring and maintaining a skilled workforce and could be a major health-care challenge for the Company. There can be no assurance that the Company’s personnel will not be impacted by these regional disease outbreaks and pandemics and ultimately that the Company would see its workforce productivity reduced or incur increased medical costs and insurance premiums as a result of these health risks.

In addition, the pandemic has created a dramatic slowdown in the global economy. The duration of the outbreak and the resulting travel restrictions, social distancing recommendations, government response actions, business disruptions and business closures may have an impact on the Company’s operations and access to capital. There can be no assurance that the Company will not be impacted by adverse consequences that may be brought about by the pandemic’s impact on global industrial and financial markets which may reduce prices in general, share prices and financial liquidity thereby severely limiting access to essential capital.

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FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company is exposed to various risks in relation to financial instruments. The Company’s financial assets and liabilities by category are summarized in Note 2(k). The Company’s risk management is coordinated in close co-operation with the board of directors and focuses on actively securing the Company’s short to medium-term cash flows and raising financing for the Company’s capital expenditure program. The Company does not actively engage in the trading of financial assets for speculative purposes.

The most significant financial risks to which the Company is exposed are as follows:

a) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company is dependent upon the availability of credit from its suppliers and its ability to generate sufficient funds from equity and debt financing to meet current and future obligations. The Company has a working capital deficiency of $530,302 as at June 30, 2020. There can be no assurance that such debt or equity financing will be available to the Company.

b) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is not exposed to significant interest rate risk as the interest rates associated with the convertible promissory notes are fixed.

c) Credit Risk

Credit risk is the risk of loss associated with a counter party’s inability to fulfill its payment obligations. As the Company is in the development stage and has not yet commenced commercial production or sales, it is not exposed to significant credit risk.

d) Foreign Exchange Risk

Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk to the extent it incurs currency exchange platform service and development expenditures and operating costs in foreign currencies including the U.S. Dollar. The Company does not hedge its exposure to fluctuations in the related foreign exchange rates.

e) Fair Values

The Company uses the following hierarchy for determining fair value measurements:

Level 1:  Quoted prices in active markets for identical assets or liabilities.

Level 2:  Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3:  Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement. The Company’s financial instruments were measured at fair value using Level 1 valuation technique during the three months ended June 30, 2020 and during the years ended December 31, 2019, 2018 and 2017. The carrying values of the Company’s financial assets and liabilities approximate their fair values.

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CAPITAL MANAGEMENT

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

CAPITAL MANAGEMENT

The Company’s objective for managing its capital structure is to safeguard the Company’s ability to continue as a going concern and to ensure it has the financial capacity, liquidity and flexibility to fund its ongoing operations and capital expenditures.

The Company manages its share capital as capital, which as at June 30, 2020, amounted to $8,189,654. At this time, the Company’s access to the debt market is limited and it relies on equity issuances and the support of shareholders to fund the development of its trading platform. The Company monitors capital to maintain a sufficient working capital position to fund annualized administrative expenses and capital investments.

As at June 30, 2020, the Company had a working capital deficiency of 886,534. The Company will issue shares and may from time to time adjust its capital spending to maintain or adjust the capital structure. There can be no assurance that the Company will be able to obtain debt or equity capital in the case of operating cash deficits.

The Company’s share capital is not subject to external restrictions. The Company has not paid or declared any dividends since the date of incorporation, nor are any contemplated in the foreseeable future. There were no changes in the Company’s approach to capital management during the three months ended June 30, 2020.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Basis of Presentation

These consolidated financial statements have been prepared on a historical cost basis except for financial instruments classified as available-for-sale that have been measured at fair value. Cost is the fair value of the consideration given in exchange for net assets.

Statement of Compliance

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These consolidated financial statements were approved and authorized for issue by the Board of Directors on July 22, 2020.

Basis of Consolidation

These consolidated financial statements include the accounts of the Company and its subsidiaries (collectively, the “Company”). Intercompany balances and transactions are eliminated in preparing the consolidated financial statements. The following companies have been consolidated within these consolidated financial statements:

Entity	Country of Incorporation	Voting Control		Functional Currency
Digatrade Financial Corp.	Canada		Parent Company	Canadian Dollar
Digatrade Limited	Canada		100%	Canadian Dollar
Digatrade (UK) Limited	United Kingdom		100%	Pounds Sterling
Digatrade Limited	USA		100%	US Dollar
Securter Systems Inc	Canada		79% (Note 5)	Canadian Dollar

Foreign Currency

These consolidated financial statements are presented in Canadian dollars, which is also the functional currency of the parent company. Each subsidiary determines its own functional currency (Note 2(c)) and items included in the financial statements of each subsidiary are measured using that functional currency.

i. Transactions and Balances in Foreign Currencies

Foreign currency transactions are translated into the functional currency of the respective entity using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items at year-end exchange rates are recognized in profit or loss. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and are not retranslated. Non-monetary items measured at fair value are translated using the exchange rate at the date when fair value was determined.

ii. Foreign Operations

On consolidation, the assets and liabilities of foreign operations are translated into Canadian dollars at the exchange rate prevailing at the reporting date and their revenues and expenses are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on the translation are recognized in other comprehensive income and accumulated in the currency translation reserve in equity. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognized in earnings and recognized as part of the gain or loss on disposal.

Financing and Finder's Fees

Financing and finder’s fees relating to financial instruments with a term of one year or less are expensed in the period incurred. For financial instruments with a term of over one year, the fees are netted against the financial instruments and amortized over the term of the financial instruments.

Share Capital

The Company records proceeds from share issuances, net of commissions and issuance costs.  Shares issued for other than cash consideration are valued at either: (i) the fair value of the asset acquired or the fair value of the liability extinguished at the measurement date under current market conditions, or (ii) the quoted price on the Over-the-Counter Bulletin Board in the United States based on the earliest of: the date the shares are issued, or the date the agreement to issue the shares is reached.

Loss per Share

Basic loss per share is calculated by dividing net loss by the weighted average number of common shares issued and outstanding during the reporting period. Diluted loss per share is the same as basic loss per share, as the issuance of shares on the exercise of stock options and share purchase warrants is anti-dilutive.

Share-Based Payments

The fair value method of accounting is used for share-based payment transactions. Under this method, the cost of stock options and other share-based payments is recorded based on the estimated fair value using the Black-Scholes option-pricing model at the grant date and charged to profit over the vesting period. The amount recognized as an expense is adjusted to reflect the number of equity instruments expected to vest.

Upon the exercise of stock options and other share-based payments, consideration received on the exercise of these equity instruments is recorded as share capital and the related share-based payment reserve is transferred to share capital. The fair value of unexercised equity instruments are transferred from reserve to retained earnings upon expiry.

Income Taxes

Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity.

i. Current Income Tax

Current income tax assets and liabilities comprise those claims from, or obligations to, fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the consolidated financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

ii. Deferred Income Tax

Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are always provided for in full.

Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future taxable income. Deferred tax assets and liabilities are offset only when the Company has a right and intention to offset current tax assets and liabilities from the same taxation authority.

Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in profit or loss, except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively.

Revenue Recognition

Revenue is comprised of consulting fees and commissions earned on trades executed on the digital currency trading platform. Consulting fee income is recognized as the consulting services are provided. Commission is considered earned when a trade is completed by the Company’s customers. As the platform is not yet fully live, commissions and consulting fees earned have been accounted for as a recovery of development costs incurred.

Financial Instruments

Commencing January 1, 2018, the Company adopted IFRS 9. The adoption of this new accounting standard did not have material impact to the Company’s consolidated financial statements.

IFRS 9 covers classification and measurement of financial assets. It replaces the multiple category and measurement models in IAS 39 Financial Instruments. The new standard contains three classifications for financial assets: measured at amortized cost, fair value through other comprehensive income (“FVTOCI”), and fair value through profit and loss (“FVTPL”). The new standard eliminates the previous IAS 39 categories of held to maturity, loan and receivables, and available for sale.

Recognition and Measurement for debt instruments with a new mixed measurement model having only two categories: amortized cost and fair value through profit or loss. Requirements for financial liabilities are largely carried forward from the existing requirements in IAS 39 except that fair value changes due to credit risk for liabilities designated at fair value through profit and loss are generally recorded in other comprehensive income.

Following is the new accounting policy for financial instruments under IFRS 9:

(i) Classification

The Company determines the classification of financial assets at initial recognition. The classification of debt instruments is driven by the Company’s business model for managing the financial assets and their contractual cash flow characteristics. Equity instruments that are held for trading are classified as FVTPL. For other equity instruments, on the day of acquisition the Company can make an irrevocable election (on an instrument-by- instrument basis) to designate them as at FVTOCI. Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or if the Company has opted to measure them at FVTPL.

The following table shows the original classification under IAS 39 and the new classification under IFRS 9:

Financial assets	Classification under IAS 39	Classification under IFRS 9
Cash	FVTPL	Amortized cost
Accounts receivable	Notes and receivable	Amortized cost
Derivative assets	FVTPL	FVTPL
Financial liabilities	Classification under IAS 39	Classification under IFRS 9
Accounts payable and accrued liabilities	Other financial liabilities	Other financial liabilities
Short-term loan	Other financial liabilities	Other financial liabilities
Due to related parties	Other financial liabilities	Other financial liabilities
Derivative liabilities	FVTPL	FVTPL

There were no adjustments to the carrying amounts of financial instruments as a result of the change in classification from IAS39 to IFRS 9.

(ii)                   Measurement

Financial assets and liabilities at amortized cost

Financial assets and liabilities at amortized cost are initially recognized at fair value plus or minus transaction costs, respectively, and subsequently carried at amortized cost less any impairment.

Financial assets and liabilities at FVTPL

Financial assets and liabilities carried at FVTPL are initially recorded at fair value and transaction costs are expensed in the Consolidated Statements of Comprehensive Income. Realized and unrealized gains and losses arising from changes in the fair value of the financial assets and liabilities held at FVTPL are included in the Consolidated Statements of Comprehensive Income in the period in which they arise.

(ii) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the Company measures the loss allowance for the financial asset at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for the financial asset at an amount equal to twelve month expected credit losses. The Company shall recognize in the Consolidated Statements of Comprehensive Income, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized.

Non-Controlling Interest

Non-controlling interest in the Company’s less than wholly owned subsidiary is classified as a separate component of equity. On initial recognition, non-controlling interest is measured at the fair value of the non-controlling entity’s contribution into the related subsidiary. Subsequent to the original transaction date, adjustments are made to the carrying amount of non-controlling interest for the non-controlling interest’s share of changes to the subsidiary’s equity.

Accounting Standards Effective January 1, 2019

IFRS 16 – Leases

IFRS 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, unless the lease term is 12 months or less or the underlying asset has a low value. Lessor accounting remains largely unchanged from IAS 17 “Leases”, and the distinction between operating and finance leases is retained. The standard is effective for annual periods beginning on or after January 1, 2019. The Company has determined that this standard did not have any impact on its consolidated financial statements.

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SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Subsidiaries

Entity	Country of Incorporation	Voting Control		Functional Currency
Digatrade Financial Corp.	Canada		Parent Company	Canadian Dollar
Digatrade Limited	Canada		100%	Canadian Dollar
Digatrade (UK) Limited	United Kingdom		100%	Pounds Sterling
Digatrade Limited	USA		100%	US Dollar
Securter Systems Inc	Canada		79% (Note 5)	Canadian Dollar

New classifications under IFRS 9

Financial assets	Classification under IAS 39	Classification under IFRS 9
Cash	FVTPL	Amortized cost
Accounts receivable	Notes and receivable	Amortized cost
Derivative assets	FVTPL	FVTPL
Financial liabilities	Classification under IAS 39	Classification under IFRS 9
Accounts payable and accrued liabilities	Other financial liabilities	Other financial liabilities
Short-term loan	Other financial liabilities	Other financial liabilities
Due to related parties	Other financial liabilities	Other financial liabilities
Derivative liabilities	FVTPL	FVTPL

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SECURTER SYSTEMS INC. (Tables)

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Summarized financial statements of Securter Systems Inc.

The following is the summarized statement of financial position of Securter Systems Inc. as at June 30, 2020 and December 31, 2019:

	June 30, 2020			December 31, 2019
		$			$
Current
Assets		33,378			79
Liabilities		(51,653	)		—
Total Current Net Assets		(18,275	)		79
Non-Current
Assets		29,840			26,761
Liabilities		(26,600	)		(26,565	)
Total Non-Current Net Assets		3,240			196
Total Net Equity by Shareholders		(15,035	)		275

The following is the summarized comprehensive loss of Securter Systems Inc. for the period from inception to the year ended December 31, 2019 and for the six months ended June 30, 2020.

	$
Net Loss for the period from inception to the year ended December 31, 2019		158,844
Net Loss for the six months ended June 30, 2020		47,386
		206,230

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TRADE AND OTHER PAYABLES (Tables)

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Trade and other paybles

	June 30, 2020		December 31, 2019
		$		$
Trade Payables		31,089		32,276
Accrued Liabilities		148,218		90,000
		179,307		122,276

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CONVERTIBLE PROMISSORY NOTES (Tables)

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Convertible promissory notes

	Promissory Note			Convertible Promissory Note - Liability Component			Derivative Liability			Deferred Derivative Loss (Increase)			Total
		$			$			$			$			$
Balance December 31, 2017		241,517			1,340,978			—			—			1,582,495
Proceeds net of transaction costs		—			440,587			1,576,119			(1,221,660	)		795,046
Repayments		(31,762	)		—			—			—			(31,762	)
Conversions		—			(1,718,320	)		(38,794	)		—			(1757,114	)
Fair value change		—			—			(803,986	)		269,868			(534,118	)
Interest expense		—			19,649			—			—			19,649
Accretion expense		—			7,039			—			—			7,039
Foreign exchange (gain) loss		—			(64,392	)		—			—			(64,392	)
Balance December 31, 2018		209,755			25,541			733,339			(951,792	)		16,843
Proceeds net of transaction costs		—			13,328			1,517,944			(958,883	)		572,389
Repayments		(33,596	)		—			—			—			(33,596	)
Conversions		—			(191,566	)		(1,545,331	)		356,990			(1,379,907	)
Fair value change		—			—			(335,758	)		1,402,834			1,067,076
Interest expense		—			58,470			—			—			58,470
Accretion expense		—			146,624			—			—			146,624
Foreign exchange (gain) loss		(10,461	)		(1,804	)		—			—			(12,265	)
Balance December 31, 2019		165,698			50,593			370,194			(150,851	)		435,634
Proceeds net of transaction costs		—			6,774			805,968			-554,519			258,223
Conversions		—			(419,134	)		(166,673	)		(143,689	)		(729,496	)
Fair value change		—			303,195			(38,327	)		419,174			684,042
Interest expense		—			13,868			—			—			13,868
Accretion expense		—			96,212			—			—			96,212
Foreign exchange (gain) loss		6,759			4,992			—			—			11,751
Balance June 30, 2020		172,457			56,500			971,162			(429,885	)		770,234

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SHARE CAPITAL (Tables)

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Stock option activity

Expiry Date	Exercise Price		January 1, 2020		Granted		Exercised		Cancelled		June 30, 2020
February 14, 2027	$	US0.006		—		10,000,000		—		—		10,000,000

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RELATED PARTIES TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Management fees and share-based payments

	Three Months ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2020		2019		2020		2019
		$		$		$		$
Management Fees		41,046		57,593		105,566		101,510
Stock-based Compensation		—		—		—		30,000
		41,046		57,593		105,566		131,510

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NATURE AND CONTINUANCE OF OPERATIONS (Details Narrative) - CAD ($)	Jun. 30, 2020	Dec. 31, 2019
Nature And Continuance Of Operations
Accumulated losses	$ (8,908,957)	$ (7,793,332)
Working capital deficit	$ (886,534)

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SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Jun. 30, 2020
Parent Company
Disclosure of subsidiaries [line items]
Entity	Digatrade Financial Corp.
Country of incorporation	Canada
Holding interest	100.00%
Functional currency	Canadian Dollar
Subsidiary 1
Disclosure of subsidiaries [line items]
Entity	Digatrade Limited
Country of incorporation	Canada
Holding interest	100.00%
Functional currency	Canadian Dollar
Subsidiary 2
Disclosure of subsidiaries [line items]
Entity	Digatrade (UK) Limited
Country of incorporation	United Kingdom
Holding interest	100.00%
Functional currency	Pounds Sterling
Subsidiary 3
Disclosure of subsidiaries [line items]
Entity	Digatrade Limited
Country of incorporation	USA
Holding interest	100.00%
Functional currency	US Dollar
Subsidiary 4
Disclosure of subsidiaries [line items]
Entity	Securter Systems Inc.
Country of incorporation	Canada
Holding interest	79.00%
Functional currency	Canadian Dollar

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SIGNIFICANT ACCOUNTING POLICIES (Details 1)	6 Months Ended
	Jun. 30, 2020
Accounts Payable and Accrued Liabilities
DisclosureOfChangesInClassificationsLineItems [Line Items]
Classification under IAS 39	Other financial liabilities
Classification under IFRS 9	Other financial liabilities
Short-Term Loan
DisclosureOfChangesInClassificationsLineItems [Line Items]
Classification under IAS 39	Other financial liabilities
Classification under IFRS 9	Other financial liabilities
Due to Related Parties
DisclosureOfChangesInClassificationsLineItems [Line Items]
Classification under IAS 39	Other financial liabilities
Classification under IFRS 9	Other financial liabilities
Derivative Liabilities
DisclosureOfChangesInClassificationsLineItems [Line Items]
Classification under IAS 39	FVTPL
Classification under IFRS 9	FVTPL
Cash
DisclosureOfChangesInClassificationsLineItems [Line Items]
Classification under IAS 39	FVTPL
Classification under IFRS 9	Amortized cost
Accounts Receivable
DisclosureOfChangesInClassificationsLineItems [Line Items]
Classification under IAS 39	Notes and receivable
Classification under IFRS 9	Amortized cost
Derivative Assets
DisclosureOfChangesInClassificationsLineItems [Line Items]
Classification under IAS 39	FVTPL
Classification under IFRS 9	FVTPL

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SECURTER SYSTEMS INC. (Details) - CAD ($)	Jun. 30, 2020	Dec. 31, 2019
Securter Systems Inc.
Current assets	$ 33,378	$ 79
Current liabilities	(51,653)	0
Total current net assets	(18,275)	79
Non-current assets	29,840	26,761
Non-current liabilities	(26,600)	(26,565)
Total non-current net assets	3,240	196
Total net equity by shareholders	$ (15,035)	$ 275

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SECURTER SYSTEMS INC. (Details 1) - CAD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Securter Systems Inc.
Net loss	$ 47,386	$ 158,843

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TRADE AND OTHER PAYABLES (Details) - CAD ($)	Jun. 30, 2020	Dec. 31, 2019
Trade and other payables [abstract]
Trade payables	$ 31,089	$ 32,276
Accrued liabilities	148,218	90,000
Trade and other payables	$ 179,307	$ 122,276

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CONVERTIBLE PROMISSORY NOTES (Details) - CAD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
DisclosureOfConvertiblePromissoryNotesLineItems [Line Items]
Convertible promissory notes, beginning			$ 435,634	$ 16,843	$ 16,843	$ 1,582,495
Proceeds net of transaction costs			258,223		572,389	795,046
Repayments					(33,596)	(31,762)
Conversions			(729,496)		(1,379,907)	(1,757,114)
Fair value change	$ 627,202	$ 0	684,311	0	1,067,076	(534,118)
Interest expense			13,868		58,470	19,649
Accretion expense	37,354	$ 0	95,943	0	146,624	7,039
Foreign exchange (gain) loss			11,751		(12,265)	(64,392)
Convertible promissory notes, ending	770,234		770,234		435,634	16,843
Promissory Note
DisclosureOfConvertiblePromissoryNotesLineItems [Line Items]
Convertible promissory notes, beginning			165,698	209,755	209,755	241,517
Proceeds net of transaction costs			0		0	0
Repayments					(33,596)	(31,762)
Conversions			0		0	0
Fair value change			0		0	0
Interest expense			0		0	0
Accretion expense			0		0	0
Foreign exchange (gain) loss			6,759		(10,461)	0
Convertible promissory notes, ending	172,457		172,457		165,698	209,755
Convertible Promissory Note - Liability Component
DisclosureOfConvertiblePromissoryNotesLineItems [Line Items]
Convertible promissory notes, beginning			50,593	25,541	25,541	1,340,978
Proceeds net of transaction costs			6,774		13,328	440,587
Repayments					0	0
Conversions			(419,134)		(191,566)	(1,718,320)
Fair value change			303,195		0	0
Interest expense			13,868		58,470	19,649
Accretion expense			96,212		146,624	7,039
Foreign exchange (gain) loss			4,992		(1,804)	(64,392)
Convertible promissory notes, ending	56,500		56,500		50,593	25,541
Derivative Liability
DisclosureOfConvertiblePromissoryNotesLineItems [Line Items]
Convertible promissory notes, beginning			370,194	733,339	733,339	0
Proceeds net of transaction costs			805,968		1,517,944	1,576,119
Repayments					0	0
Conversions			(166,673)		(1,545,331)	(38,794)
Fair value change			(38,327)		(335,758)	(803,986)
Interest expense			0		0	0
Accretion expense			0		0	0
Foreign exchange (gain) loss			0		0	0
Convertible promissory notes, ending	971,162		971,162		370,194	733,339
Deferred Derivative Loss (Increase)
DisclosureOfConvertiblePromissoryNotesLineItems [Line Items]
Convertible promissory notes, beginning			(150,851)	$ (951,792)	(951,792)	0
Proceeds net of transaction costs			(554,519)		(958,883)	(1,221,660)
Repayments					0	0
Conversions			(143,689)		356,990	0
Fair value change			419,174		1,402,834	269,868
Interest expense			0		0	0
Accretion expense			0		0	0
Foreign exchange (gain) loss			0		0	0
Convertible promissory notes, ending	$ (429,885)		$ (429,885)		$ (150,851)	$ (951,792)

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SHARE CAPITAL (Details)	6 Months Ended
	Jun. 30, 2020 shares $ / shares
Share Capital Abstract
Exercise price | $ / shares	$ .006
Stock options outstanding, beginning	0
Granted	10,000,000
Exercised	0
Cancelled	0
Stock options outstanding, ending	10,000,000

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RELATED PARTIES TRANSACTIONS (Details) - CAD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Related Parties Transactions
Management fees	$ 41,046	$ 57,593	$ 105,566	$ 101,510
Stock-based compensation	0	0	0	30,000
Total	$ 41,046	$ 57,593	$ 105,566	$ 131,510

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CAPITAL MANAGEMENT (Details Narrative) - CAD ($)	Jun. 30, 2020	Dec. 31, 2019
Capital Management
Share capital	$ 8,189,754	$ 7,460,158
Working capital deficit	$ (886,534)