10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

Amendment No. 1

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from ____________ to . ____________

Commission File Number 333-248929

TEGO CYBER INC.

(Exact name of registrant as specified in its charter)

Nevada	84-2678167
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

8565 South Eastern Avenue, Suite 150

Las Vegas, Nevada, 89123

(Address of Principal Executive Offices) (Zip Code)

(855) 939-0100

(Registrant’s Telephone Number, Including Area Code)

Not applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class Trading Symbol(s) Name of the principal U.S. market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐     No ☒.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒     No ☐ 

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

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

As of February 14, 2022, there were 25,096,044 shares of common stock issued and outstanding, par value $0.001 per share.

EXPLANATORY NOTE

Tego Cyber Inc. is filing this Amendment No. 1 on Form 10-Q/A for the period ended December 31, 2021, as filed with the Securities and Exchange Commission (the “SEC”) on February 14, 2022 (the “Original Filing”). 

The purpose of this Amendment No. 1 on Form 10-Q/A is to amend the disclosures contained in Item 4 - Controls and Procedures as provided in the Original Filing, and expand the disclosures to explain why Company controls and procedures are ineffective and management's plans for their remediation.  For convenience and ease of reference, the Company is filing this Form 10-Q/A in its entirety with all applicable changes and unless otherwise stated, all information contained in this amendment is as of February 14, 2022, the filing date of the Original Filing. Except as stated herein, this Form 10-Q/A does not reflect events or transactions occurring after such filing date or modify or update those disclosures in the original Form 10-Q that may have been affected by events or transactions occurring subsequent to such filing date.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information included in this Quarterly Report on Form 10-Q and other filings of the Registrant under the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as information communicated orally or in writing between the dates of such filings, contains or may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements in this Quarterly Report on Form 10-Q, including without limitation, statements related to our plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from expected results. Among these risks, trends and uncertainties are the availability of working capital to fund our operations, the competitive market in which we operate, the efficient and uninterrupted operation of our computer and communications systems, our ability to generate a profit and execute our business plan, the retention of key personnel, our ability to protect and defend our intellectual property, the effects of governmental regulation, and other risks identified in the Registrant’s filings with the Securities and Exchange Commission from time to time.

In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of such terms or other comparable terminology. Although the Registrant believes that the expectations reflected in the forward-looking statements contained herein are reasonable, the Registrant cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither the Registrant, nor any other person, assumes responsibility for the accuracy and completeness of such statements. The Registrant is under no duty to update any of the forward-looking statements contained herein after the date of this Quarterly Report on Form 10-Q.

2

TEGO CYBER INC.

FORM 10-Q

DECEMBER 31, 2021

INDEX

		Page
Part I – Financial Information
Item 1.	Financial Statements (Unaudited)	F-1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	4
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	9
Item 4.	Controls and Procedures	9
Part II – Other Information
Item 1.	Legal Proceedings	10
Item 1A.	Risk Factors	10
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	10
Item 3.	Defaults Upon Senior Securities	10
Item 4.	Mine Safety Disclosures	10
Item 5.	Other Information	11
Item 6.	Exhibits	11
Signatures		12
Certifications		13

3

PART I – FINANCIAL INFORMATION

Item 1. Financial Information
Interim Condensed Balance Sheet	F-2
Interim Condensed Statement of Operations and Comprehensive Loss	F-3
Interim Condensed Statement of Changes in Shareholders’ Equity	F-4
Interim Condensed Statement of Cash Flows	F-5
Notes to Interim Condensed Financial Statements	F-6

F-1

TEGO CYBER INC.

INTERIM CONDENSED BALANCE SHEET

AS AT DECEMBER 31, 2021 AND JUNE 30, 2021

(Expressed in US Dollars)

(Unaudited)

	December 31, 2021			June 30, 2021
ASSETS
Current assets
Cash	$	990,261		$	583,015
Accounts receivable		1,150			1,450
Prepaid expenses		148,611			113,462
Total current assets		1,140,022			697,927
Computer equipment, net		854			-
Software		242,173			75,750
TOTAL ASSETS	$	1,383,049		$	773,677
LIABILITIES & SHAREHOLDERS’ DEFICIT
Current liabilities
Accounts payable and accrued liabilities	$	17,068		$	23,010
Convertible debts		-			22,621
TOTAL LIABILITIES		17,068			45,631
SHAREHOLDERS’ EQUITY
Common shares 50,000,000 shares authorized $0.001 par value 24,996,044 shares issued and outstanding at December 31, 2021 18,296,511 shares issued and outstanding at June 30, 2021		24,996			18,297
Additional paid in capital		3,377,599			1,720,631
Subscriptions receivable		-			(10,500	)
Accumulated deficit		(2,036,614	)		(1,000,382	)
TOTAL SHAREHOLDERS’ EQUITY		1,365,981			728,046
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,383,049		$	773,677

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

F-2

TEGO CYBER INC.

INTERIM CONDENSED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE PERIODS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in US Dollars)

(Unaudited)

	3-Months Ended December 31, 2021			3-Months Ended December 31, 2020			6-Months Ended December 31, 2021			6-Months Ended December 31, 2020
REVENUE
Consulting fees	$	1,050		$	900		$	1,050		$	3,800
OPERATING EXPENSES
Adverting and promotion		31,404			4,375			90,283			19,545
Amortization		324			-			324			-
Contractors and consultants		127,968			-			240,251			-
Interest and bank charges		2,638			918			5,736			1,733
Insurance		6,920			-			6,920			-
Investor relations and shareholder communication		58,152			2,749			120,928			2,749
Legal and accounting		97,509			50,500			152,007			83,990
Management fees		50,000			31,000			127,500			56,500
Office and administration		(2,930	)		1,163			4,447			2,250
Software subscription and platform costs		21,924			-			34,390			-
Subscriptions & dues		45			165			3,156			296
Transfer agent and filing fees		3,590			4,675			21,204			8,996
Travel, meals & entertainment		5,837			346			12,340			492
Wages & benefits		124,772			-			151,664			-
TOTAL OPERATING EXPENSES		528,153			95,891			971,150			176,551
LOSS FROM OPERATIONS		(527,103	)		(94,991	)		(970,100	)		(172,751	)
OTHER INCOME (EXPENSE)
Accretion expense		(36,917	)		(12,511	)		(66,132	)		(12,511	)
Financing fees		-			(11,484	)		-			(11,484	)
TOTAL OTHER INCOME (EXPENSE)		(36,917	)		(23,995	)		(66,132	)		(23,995	)
NET LOSS	$	(564,020	)	$	(118,986	)	$	(1,036,232	)	$	(196,746	)
BASIC AND DILUTED LOSS PER COMMON SHARE	$	(0.03	)	$	(0.01	)	$	(0.05	)	$	(0.02	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING		19,387,699			12,926,758			20,763,618			12,872,693

The accompanying notes are an integral part of these financial statements

F-3

TEGO CYBER INC.

INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE PERIODS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in US Dollars)

(Unaudited)

	Number of Shares		Common Stock Amount		Additional Paid-In Capital		Subscriptions Receivable			Accumulated Deficit			Total Shareholders' Equity
Balance, June 30, 2020		12,406,236	$	12,406	$	175,906	$	(24,500	)	$	(77,202	) )	$	86,610
Private placement		554,000		554		37,946		22,500			-			61,000
Shares issued as transaction costs for convertible debts		110,000		110		10,890		-			-			11,000
Equity portion of convertible debts		-		-		81,961		-			-			81,961
Warrants issued with convertible debts		-		-		46,898		-			-			46,898
Net loss for the year ended June 30, 2021		-		-		-		-			(196,746	) )		(196,746	)
Balance, December 31, 2020		13,070,236	$	13,070	$	353,601	$	(2,000	)	$	(273,948	) )	$	90,723
Balance, June 30, 2021		18,296,511	$	18,297	$	1,720,631	$	(10,500	)	$	(1,000,382	)	$	728,046
Shares issued for cash		5,558,810		5,559		1,409,143		10,500			-			1,425,202
Shares issued for services		68,673		68		51,221		-			-			51,289
Shares issued for settlement of debt		937,151		937		92,778		-			-			93,715
Shares issued as prepaid expenses		134,899		135		103,826		-			-			103,961
Net loss for period		-		-		-		-			(1,036,232	)		(1,036,232	)
Balance, December 31, 2021		24,996,044	$	24,996	$	3,377,599	$	-		$	(2,036,614	)	$	1,365,981

The accompanying notes are an integral part of these financial statements

F-4

TEGO CYBER INC.

INTERIM CONDENSED STATEMENT OF CASH FLOWS

FOR THE PERIODS ENDED DECEMBER 31, 2021 AND DECEMBER 31, 2020

(Expressed in US Dollars)

(Unaudited)

	Six-Months Ended December 31, 2021			Six-Months Ended December 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss for the period	$	(1,036,232	)	$	(196,746	)
Items not affecting cash
Amortization		324			-
Shares issued for services		51,289			-
Interest on short term debt		4,962			-
Accretion expense on convertible debts		66,132			12,511
Financing fees		-			11,484
Changes in non-cash working capital items:
Accounts receivable		300			(1,000	)
Prepaid expenses		68,812			-
Accounts payable and accrued liabilities		(7,650	)		16,287
NET CASH USED IN OPERATING ACTIVITIES		(852,063	)		(157,464	)
CASH FLOWS FROM INVESTING ACTIVITIES
Computer equipment		(1,178	)		-
Software		(164,715	)		(24,250	)
NET CASH USED IN INVESTING ACTIVITIES		(165,893	)		(24,250	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from shares issued		1,425,202			61,000
Proceeds from issuance of convertible debt		-			150,000
Convertible debt issuance costs		-			(15,000	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		1,425,202			196,000
NET INCREASE (DECREASE) IN CASH		407,246			14,286
CASH AT BEGINNING OF THE PERIOD		583,015			81,872
CASH AT END OF THE PERIOD	$	990,261		$	96,158
Non-cash investing and financing activities:
Software included in accounts payable and accrued liabilities	$	1,708		$	5,000
Shares issued for prepaid expenses	$	103,961		$	-
Shares issued for settlement of debt	$	93,715		$	-
Shares issued with convertible debt	$	-		$	11,000
Warrants issued with convertible debt	$	-		$	46,898
Equity portion of convertible debts	$	-		$	81,961

F-5

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

Tego Cyber Inc. (the “Company”) was incorporated on September 6, 2019 in the State of Nevada. The Company was created to capitalize on the emerging cyber threat intelligence market. It has developed a cyber threat intelligence application that integrates with top end security platforms to gather, analyze, then proactively identify threats to an enterprise network. The Tego Guardian Threat Intelligence Platform takes in vetted and curated threat data and after utilizing a proprietary process, the platform compiles, analyzes, and then delivers that data to an enterprise network in a format that is timely, informative, and relevant. The threat data provides additional context including specific details needed to identify and counteract threats so that security teams can spend less time searching for disparate information. The first version of the application integrated with the widely accepted Splunk SIEM to provide real-time threat intelligence to macro enterprises using the Splunk architecture. The Company plans on developing future versions of the Tego Guardian app for integration with other established SIEM systems and platforms including: Elastic, IBM QRadar, AT&T Cybersecurity, Exabeam, and Google Chronical. The Company also offer advanced cybersecurity consulting services including vulnerability assessments, penetration testing, vCISO services, dark web monitoring, cybersecurity policy creation and employee training.

The Company’s head office is at at 8565 S. Eastern Ave. #150, Las Vegas, Nevada, 89123.

NOTE 2 – BASIS OF PRESENTATION

The accompanying interim condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to US GAAP rules and regulations for presentation of interim financial information. Therefore, the unaudited interim condensed financial statements should be read in conjunction with the financial statements and the notes thereto, included in the Company’s audited financial statements for the year ended June 30, 2021. Current and future financial statements may not be directly comparable to the Company’s historical financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended June 30, 2021. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended December 31, 2021 are not necessarily indicative of the results that may be expected for the year ending June 30, 2022.

NOTE 3 – GOING CONCERN UNCERTAINTY

The accompanying unaudited interim financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of the business. The Company has incurred material losses from operations and has an accumulated deficit. At December 31, 2021, the Company had a working capital surplus of $1,122,954 and has an accumulated deficit of $2,036,614. For the period ended December 31, 2021, the Company sustained net losses and generated negative cash flows from operations. In March 2020, the World Health Organization recognized the outbreak of COVID-19 as a global pandemic. The COVID-19 pandemic and government actions implemented to contain the further spread of COVID-19 have severely restricted economic activity around the world. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern. These adjustments could be material. The Company’s continuation as a going concern is contingent upon its ability to earn adequate revenues from operations and to obtain additional financing. There is no assurance that the Company will be able to obtain such financings or obtain them on favorable terms.

NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies is presented to assist in understanding the interim condensed financial statements. The interim condensed financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to US GAAP and have been consistently applied in the preparation of the interim condensed financial statements.

F-6

Basis of Preparation

The accompanying interim condensed financial statements have been prepared to present the balance sheet, the statement of operations and comprehensive loss, statement of changes in shareholders’ equity and statement of cash flows of the Company for the six month period ended December 31, 2021, and have been prepared in accordance with US GAAP.

Use of Estimates

In preparing the interim condensed financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the interim condensed financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and accounts receivable. As at December 31, 2021, substantially all of the Company’s cash was held by major financial institutions located in the United States, which management believes are of high credit quality. With respect to accounts receivable, the Company extended credit based on an evaluation of the customer’s financial condition. The Company generally did not require collateral for accounts receivable and maintained an allowance for doubtful accounts of accounts receivable if necessary.

Cash

Cash consists of cash held at major financial institutions and is subject to insignificant risk of changes in value.

Receivables and Allowance for Doubtful Accounts

Trade accounts receivable are recorded at net realizable value and do not bear interest. No allowance for doubtful accounts was made during the six month period ended December 31, 2021, based on management’s best estimate of the amount of probable credit losses in accounts receivable. The Company evaluates its allowance for doubtful accounts based upon knowledge of its customers and their compliance with credit terms. The evaluation process includes a review of customers’ accounts on a regular basis. The review process evaluates all account balances with amounts outstanding for more than 60 days and other specific amounts for which information obtained indicates that the balance may be uncollectible. As of December 31, 2021, there was no allowance for doubtful accounts and the Company does not have any off-balance-sheet credit exposure related to its customers.

Software

Software is stated at cost less accumulated amortization and is depreciated using the straight-line method over the estimated useful life of the asset. The estimated useful life of the asset is 5 years and is not depreciated until it is available for use by the Company.

Leases

The Company determines if an arrangement is a lease at inception. Operating and financing right-of-use assets and lease liabilities are included on the balance sheet. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, based on the information available at the commencement date, in determining the present value of future lease payments. Right-of-use assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Operating lease expenses are recognized on a straight-line basis over the term of the lease, consisting of interest accrued on the lease liability and depreciation of the right-of-use asset. The lease terms may include options to extend or terminate the lease is it is reasonably certain the Company will exercise that option.

F-7

Fair Value of Financial Instruments

Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, adopted January 1, 2008, defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The Company’s financial instruments include cash, current receivables and payables, convertible debts, and warrants. These financial instruments are measured at their respective fair values.

The three levels are defined as follows:

Level 1 - inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value.

For cash, accounts receivable, accounts payable and due to related parties, it is management’s opinion that the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their stated interest rate approximates current rates available.

For convertible debts, the carrying values, excluding any unamortized discounts, approximate the respective fair value. The convertible debts have been discounted to reflect their net present value as at December 31, 2021. The carrying values of embedded conversion features not considered to be derivative instruments were determined by allocating the remaining carrying value of the convertible debt after deducting the estimated carrying value of the liability portion.

Estimating fair value for warrants require determining the most appropriate valuation model which is dependent on the terms and conditions of the grant. This estimate requires determining the most appropriate inputs to the valuation model including the expected life of the warrant, volatility, dividend yield, and rate of forfeitures and making assumptions about them.

Revenue Recognition

Revenue from providing consulting and management services is recognized in a manner that reasonably reflects the delivery of services to customers in return for expected consideration and includes the following elements:

- executed contracts with the Company’s customers that it believes are legally enforceable;

- identification of performance obligations in the respective contract;

- determination of the transaction price for each performance obligation in the respective contract;

- allocation of the transaction price to each performance obligation; and

- recognition of revenue only when the Company satisfies each performance obligation.

These five elements as applied to the Company’s consulting services results in revenue recorded as services are provided.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes pursuant to ASC 740 “Income Taxes”. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. The provision for income taxes represents current taxes payable net of the change during the period in deferred tax assets and liabilities.

F-8

Foreign Currency Translation

The Company’s functional and reporting currency is United States dollars (“USD”). The Company maintains its financial statements in the functional currency. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet dates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income (loss).

Earnings (Loss) per Share

Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. If applicable, diluted earnings (loss) per share assume the conversion, exercise or issuance of all common stock instruments unless the effect is to reduce a loss or increase earnings per share. The Company had no dilutive securities for the three-month and six-month period ended December 31, 2021.

Recently Issued Accounting Pronouncements

Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) did not or are not expected to have a material impact on the Company's present or future financial statements.

NOTE 5 – SOFTWARE

Balance, June 30, 2020	$	21,500
Additions		54,250
Depreciation		-
Balance, June 30, 2021		75,750
Additions		166,423
Depreciation		-
Balance, December 31, 2021	$	242,173

As at December 31, 2021, the software is not in use and no depreciation has been recorded.

NOTE 6 – RELATED PARTY TRANSACTIONS

Related party transactions are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Related parties are natural persons or other entities that have the ability, directly, or indirectly, to control another party or exercise significant influence over the party in making financial and operating decisions. Related parties include other parties that are subject to common control or that are subject to common significant influences.

F-9

During the six-month period ended December 31, 2021, there were transactions incurred between the Company and Shannon Wilkinson, Director, CEO, CFO, Secretary and Treasurer of the Company, for management fees of $45,000 (December 31, 2020 - $56,500) and net wages of $43,505 (December 31, 2020 - $Nil).

During the six-month period ended December 31, 2021, there were transactions incurred between the Company and Troy Wilkinson, Director and President of the Company, for management fees of $70,000 (December 31, 2020 - $Nil).

During the six-month period ended December 31, 2021, there were transactions incurred between the Company and Chris White, Director and CISO of the Company, for management fees of $12,500 (December 31, 2020 - $Nil) and net wages of $24,511 (December 31, 2020 - $Nil).

NOTE 7 – COMMON SHARES

Common Stock

At December 31, 2021, the Company’s authorized capital consisted of 50,000,000 of common shares with a $0.001 par value and 24,996,044 shares were issued and outstanding.

During the six-month period ended December 31, 2021, the Company incurred the following transactions:

During the six-month period ended December 31, 2021, the Company completed various private placements whereby a total of 5,458,810 common shares were issued at a price of $0.25 and 100,000 common shares were issued at a price of $0.50 per share for a total value of $1,425,202.

During the six-month period ended December 31, 2021, the Company issued 68,673 common shares for services valued at $51,289.

During the six-month period ended December 31, 2021, the Company issued 134,899 common shares valued at $103,961 for prepaid contractor and consultant expenses.

On December 31, 2021, the Company issued 937,151 common shares for the conversion of debt at a conversion price of $0.10 per share for a total value of $93,715. (Note 8)

During the six-month period ended December 31, 2020, the Company incurred the following transactions:

During the period from July 2, 2020 to July 31, 2020, the Company completed various private placements whereby a total of 500,000 common shares were issued at a price of $0.05 per share for a total value of $25,000.

During the period from November 24, 2020 to December 11, 2020, the Company completed various private placements whereby a total of 54,000 common shares were issued at a price of $0.25 per share for a total value of $13,500.

On December 28, 2020, the Company issued 110,000 shares to a non-related party at a price of $0.10 per share for a total value of $11,000 as commitment shares in exchange for services related to the issuance of convertible debt on Note 8 (c).

Warrants

On December 28, 2020, the Company granted 1,100,000 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (b)). The warrants were valued at $145,744 using the Black Scholes Option Pricing Model.

On March 25, 2021, the Company granted 1,100,000 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (c)). The warrants were valued at $147,266 using the Black Scholes Option Pricing Model.

F-10

On April 22, 2021, the Company granted 506,838 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (a)). The warrants were valued at $399,087 using the Black Scholes Option Pricing Model.

On April 28, 2021, the Company granted 307,408 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (a)). The warrants were valued at $196,399 using the Black Scholes Option Pricing Model.

The Black Scholes Option Pricing Model assumptions used in the valuation of the warrants are outlined below. The stock price was based on recent issuances. Expected life was based on the expiry date of the warrants as the Company did not have historical exercise data of such warrants.

	June 30, 2021
Stock price	$0.85 - $0.25
Risk-free interest rate	0.13%-0.17		%
Expected life	2 Years
Expected dividend rate		0
Expected volatility	102.03% - 206.63		%

Continuity of the Company’s common stock purchase warrants issued and outstanding is as follows:

	Number of Warrants		Weighted Average Exercise Price
Outstanding, June 30, 2020		-	$	-
Granted		3,014,246		0.25
Exercised		-		-
Expired		-		-
Outstanding, June 30, 2021 and December 31, 2021		3,014,246	$	0.25

As at December 31, 2021, the weighted average remaining contractual life of warrants outstanding was 0.71 years with an intrinsic value of $0.25.

NOTE 8 – CONVERTIBLE DEBTS

(a)

On November 10, 2020, the Company issued a convertible debt in the principal amount of $20,000 each in exchange for cash. The convertible debt is unsecured, bears interest at 8% per annum compounded on the basis of a 365-day year and actual days lapsed, is convertible at $0.10 per 1 common share, and has a maturity date of May 10, 2021. The carrying value of beneficial conversion features not considered to be derivative instruments were determined by allocating the intrinsic value of the conversion features from proceeds. As a result, total proceeds of $20,000 were allocated to the beneficial conversion feature, recorded as equity portions of convertible debt and there were no remaining proceeds available for allocation to the liability portion of the convertible debt. The convertible debt was discounted by the amounts allocated to the conversion features.

On April 22, 2021, the Company renegotiated the terms of the convertible debt in exchange for a new convertible debt in the principal amount of $55,245 at $50,684, with $4,561 original issue discount, for additional cash proceeds of $30,000 and surrender of the convertible note previously issued. In connection with the note, the Company issued 506,838 warrants exercisable at $0.25 per share, expiring on April 22, 2023. The warrants were calculated to have a relative fair value of $44,088. The convertible debt is unsecured, bears interest at 8% per annum compounded on the basis of a 365-day year and actual days elapsed, is convertible at $0.10 per 1 common share, and matures on January 22, 2022. The terms of the new convertible debt were substantially different and deemed extinguished resulting in a gain of $18,049 recorded on extinguishment of convertible debt.

F-11

	The proceeds were allocated between the convertible debt and warrants on a relative fair value basis, and the issuance costs were proportioned accordingly. The fair value of the convertible debt was calculated using the present value of the debt and related interest at 12% incremental borrowing rate as the discount rate. The warrants were valued using the Black Scholes Option Pricing Model (Note 7).
	The carrying value of beneficial conversion feature not considered to be a derivative instrument was determined by allocating $5,912 for the intrinsic value of the conversion features from the remaining proceeds allocated to the convertible debt after deducting the amount allocated to the warrants. As such, there were no remaining proceeds available for allocating to the liability portion of the convertible debt.
	On December 31, 2021 the outstanding balance of the convertible debt and accrued interest was converted in exchange for 583,936 common shares at a conversion price of $0.10 per share for a total value of $58,394. As at December 31, 2021, the carrying value of this convertible debt was $nil (June 30, 2021 - $14,374).
(b)	On November 10, 2020, the Company issued a convertible debt in the principal amount of $20,000 each in exchange for cash. The convertible debt is unsecured, bears interest at 8% per annum compounded on the basis of a 365-day year and actual days lapsed, is convertible at $0.10 per 1 common share, and has a maturity date of May 10, 2021. The carrying value of beneficial conversion features not considered to be derivative instruments were determined by allocating the intrinsic value of the conversion features from proceeds. As a result, total proceeds of $20,000 were allocated to the beneficial conversion feature, recorded as equity portions of convertible debt and there were no remaining proceeds available for allocation to the liability portion of the convertible debt. The convertible debt was discounted by the amounts allocated to the conversion features.
	On April 28, 2021, the Company renegotiated the terms of the convertible debt in exchange for a new convertible debt in the principal amount of $33,508 at $30,741, with $2,767 original issue discount, for additional cash proceeds of $10,000 and surrender of the convertible note previously issued. In connection with the note, the Company issued 307,408 warrants exercisable at $0.25 per share, expiring on April 28, 2023. The warrants were calculated to have a relative fair value of $25,745. The convertible debt is unsecured, bears interest at 8% per annum compounded on the basis of a 365-day year and actual days elapsed, is convertible at $0.10 per 1 common share, and matures on January 28, 2022. The terms of the new convertible debt were substantially different and deemed extinguished resulting in a gain of $18,682 recorded on extinguishment of convertible debt.
	The proceeds were allocated between the convertible debt and warrants on a relative fair value basis, and the issuance costs were proportioned accordingly. The fair value of the convertible debt was calculated using the present value of the debt and related interest at 12% incremental borrowing rate as the discount rate. The warrants were valued using the Black Scholes Option Pricing Model (Note 7).
	The carrying value of beneficial conversion features not considered to be derivative instruments was determined by allocating $4,255 for the intrinsic value of the conversion features from the remaining proceeds allocated to the convertible debt after deducting the amount allocated to the warrants. As such, there were no remaining proceeds available for allocating to the liability portion of the convertible debt.
	On December 31, 2021 the outstanding balance of the convertible debt and accrued interest was converted in exchange for 353,215 common shares at a conversion price of $0.10 per share for a total value of $35,322. As at December 31, 2021, the carrying value of this convertible debt was $nil (June 30, 2021 - $8,247).

NOTE 9 – COMMITMENTS AND CONTINGENCIES

The Company leases its corporate office located at 8565 S. Eastern Ave. #150, Las Vegas, Nevada. The initial lease term is for 12 months commencing on September 8, 2019 after which the term is on a month-to-month basis. After the initial term, the Company may cancel the lease agreement at any time by providing 30 days written notice. The Company has elected the short-term lease practical expedient of 12 months and has not recorded a lease.

F-12

NOTE 10 – INCOME TAXES

As of December 31, 2021, the Company was in a loss position; therefore, no deferred tax liability was recognized related to the undistributed earnings subject to withholding tax.

Net operating loss carry forward of the Company, amounted to $1,709,060 for the six month period ended December 31, 2021 (June 30, 2021 - $741,817). The net operating loss carry forwards are available to be utilized against future taxable income for years through calendar year 2041. In assessing the reliability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled projected future taxable income, and tax planning strategies in making this assessment.

NOTE 11 – SUBSEQUENT EVENTS

On January 1, 2022 the Company issued 100,000 common shares to a consultant at a price of $0.65 per share for a total value of $65,000.

F-13

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

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed financial statements and related notes included in this Quarterly Report on Form 10-Q.

Overview                           

We were incorporated in the State of Nevada on September 6, 2019. We have developed a cyber threat intelligence application that integrates with top end security platforms to gather, analyze, then proactively identify threats to an enterprise network. The Tego Guardian app takes in vetted and curated threat data and through a proprietary process compiles, analyzes, and delivers that data to an enterprise network in a format that is timely, informative and relevant. The first version of the Tego Guardian app integrates with the Splunk SIEM (Security Information and Event Management) platform. Splunk is a recognized industry leader in data analytics and has an established user base of over 15,000 enterprise clients including 90 of the Fortune 100 companies. The Tego Guardian app will be marketed as a value-add enhancement to an existing Splunk SIEM environment. Tego Guardian adds value by providing data enrichment: a detailed ‘who, what, when and where’ of any potential cyberthreat within an enterprise network environment. Other similar applications identify that something is ‘bad’ but do not provide any additional context, so it is up to the enterprise’s cybersecurity team to analyze the threat data to establish which threats need to be acted upon. It is then up to the enterprise’s cybersecurity team to analyze the threat data to establish which threats need to be acted upon. Tego Guardian automates this process thereby saving the enterprise time and money. The Tego Guardian app is now available to Splunk SIEM platform users via direct download through Splunk’s app store: Splunkbase. Tego Cyber plans to develop future versions of the Tego Guardian app for integration with other leading SIEM platforms including Elastic, Devo, IBM QRadar, AT&T Cybersecurity, Exabeam and Google Chronical. The goal is to have a version of the Tego Guardian available for integration with these SIEM platforms within the next two years. For more information, please visit www.tegocyber.com.

Results of Operations for the three months ended December 31, 2021 and December 31, 2020

Revenues

We are in development stage and only generated $1,050 in consulting revenue for the three month period ended December 31, 2021 compared to $900 consulting revenue for the three month period ended December 31, 2020.

Operating Expenses

We incurred total operating expenses of $528,153 for the three month period ended December 31, 2021 compared to $95,891 total operating expenses for the three month period ended December 31, 2020. All of these expenses related to the development of our threat intelligence application and administrative expenses.

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Net Loss

We incurred a net loss of $564,020 for the three month period ended December 31, 2021 compared to a net loss of $118,986 for the three month period ended December 31, 2020.

Results of Operations for the six months ended December 31, 2021 and December 31, 2020

Revenues

We are in development stage and only generated $1,050 in consulting revenue for the six month period ended December 31, 2021 compared to $3,800 consulting revenue for the six month period ended December 31, 2020.

Operating Expenses

We incurred total operating expenses of $970,100 for the six month period ended December 31, 2021 compared to $172,751 total operating expenses for the six month period ended December 31, 2020. All of these expenses related to the development of our threat intelligence application and administrative expenses.

Net Loss

We incurred a net loss of $1,036,232 for the six month period ended December 31, 2021 compared to a net loss of $196,746 for the six month period ended December 31, 2020.

Liquidity and Capital Resources

As at December 31, 2021, we have a working capital surplus of $1,122,954, an accumulated net loss of $2,036,614 and have earned limited revenue to cover operating costs. We have $990,261 cash on hand and our burn rate is approximately $100,000 per month. Presently, our operations are being funded by funds raised through the sales of our common stock and we believe our current available capital resources are sufficient to sustain our operations for a minimum of nine months. We intend to fund future operations through equity financing arrangements. The ability for us to execute our business plan is dependent upon, among other things, obtaining additional financing to continue operations. In response to these issues, management intends to raise additional funds through public or private placement offerings. These factors, among others, raise substantial doubt about our ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Cash Flow from Operating Activities

For the six months ended December 31, 2021, the cash flows used in our operating activities was $852,063 compared to $157,464 for the six months ended December 31, 2020.

Cash Flow from Investing Activities

For the six months ended December 31, 2021, the net cash used in investing activities was $165,893 compared to $24,250 for the six months ended December 31, 2020.

Cash Flow from Financing Activities

For the six months ended December 31, 2021, the net cash provided by financing activities was $1,425,202 compared to $196,000 for the six months ended December 31, 2020. The cash flow provided by financing activities is related to proceeds received from sales of our common stock.

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Going Concern

We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.

Contractual Obligations

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Future Financings 

We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities.

Expected Purchase or Sale of Significant Equipment

We do not anticipate the purchase or sale of any significant equipment, as such items are not required by us at this time or in the next twelve months.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Disagreements with Accountants on Accounting and Financial Disclosure

In connection with the review of our financial statements for the six months ended December 31, 2021, there were no disagreements on any matter of accounting principles or practices, financial statement disclosures, or scope or procedures, which disagreements if not resolved to their satisfaction would have caused them to make reference in connection with Harbourside CPA’s opinion to the subject matter of the disagreement.

In connection with our financial statements for the six months ended December 31, 2021, there have been no reportable events with the Company as set forth in Item 304(a)(1)(v) of Regulation S-K.

Critical Accounting Policies

This summary of significant accounting policies is presented to assist in understanding the financial statements. The financial statements and notes are representations of our management, who are responsible for their integrity and objectivity. These accounting policies conform to US GAAP and have been consistently applied in the preparation of the financial statements.

Basis of Preparation

The accompanying financial statements have been prepared to present the statements of financial position, the statements of operations and comprehensive loss, statements of changes in shareholders’ deficit and cash flows for the six months ended December 31, 2021 and December 31, 2020, and have been prepared in accordance with US GAAP.

Use of Estimates

In preparing financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates.

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Concentrations of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and accounts receivable. During the six month period ended December 31, 2021, all of our cash was held by major financial institutions located in the United States, which management believes are of high credit quality. With respect to accounts receivable, we extended credit based on an evaluation of the customer’s financial condition. We generally do not require collateral for accounts receivable and maintained an allowance for doubtful accounts of accounts receivable if necessary.

Cash

Cash consists of cash held at major financial institutions and is subject to insignificant risk of changes in value.

Receivables and Allowance for Doubtful Accounts

Trade accounts receivable are recorded at net realizable value and do not bear interest. No allowance for doubtful accounts was made during the six month period ended December 31, 2021, based on management’s best estimate of the amount of probable credit losses in accounts receivable. We evaluate our allowance for doubtful accounts based upon knowledge of our customers and their compliance with credit terms. The evaluation process includes a review of customers’ accounts on a regular basis. The review process evaluates all account balances with amounts outstanding for more than 60 days and other specific amounts for which information obtained indicates that the balance may be uncollectible. As of December 31, 2021, there was no allowance for doubtful accounts and we do not have any off-balance-sheet credit exposure related to its customers.

Fair Value of Financial Instruments

Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, adopted January 1, 2008, defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. Our financial instruments include cash, current receivables and payables. These financial instruments are measured at their respective fair values. The three levels are defined as follows:

Level 1 - inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value.

For cash, accounts receivables, subscription receivables, and accounts payable and accrued liabilities, it is management’s opinion that the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their stated interest rate approximates current rates available.

Management believes it is not practical to estimate the fair value of related party receivables and payables because the transactions cannot be assumed to have been consummated at arm’s length, the terms are not deemed to be market terms, there are no quoted values available for these instruments, and an independent valuation would not be practical due to the lack of data regarding similar instruments, if any, and the associated potential costs.

7

Revenue Recognition

Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Topic 606”), was adopted by us as of September 6, 2019 (date of incorporation). Our revenue recognition disclosure reflects its updated accounting policies that are affected by this new standard. We applied the “modified retrospective” transition method for open contracts for the implementation of Topic 606. As revenues are and have been primarily from consulting services, and we have no significant post-delivery obligations, this new standard did not result in a material recognition of revenue on our accompanying financial statements for the cumulative impact of applying this new standard. We made no adjustments to its previously reported total revenues, as those periods continue to be presented in accordance with its historical accounting practices under Topic 605, Revenue Recognition.

Revenue from providing consulting services under Topic 606 is recognized in a manner that reasonably reflects the delivery of services to customers in return for expected consideration and includes the following elements:

- executed contracts with our customers that it believes are legally enforceable;

- identification of performance obligations in the respective contract;

- determination of the transaction price for each performance obligation in the respective contract;

- allocation of the transaction price to each performance obligation; and

- recognition of revenue only when we satisfy each performance obligation.

These five elements as applied to our consulting and management services results in revenue recorded as services are provided.

Income Taxes

We use the asset and liability method of accounting for income taxes pursuant to ASC 740 “Income Taxes”. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are provided for deferred tax assets if it is more likely than not these items will either expire before we are able to realize their benefits, or that future deductibility is uncertain. The provision for income taxes represents current taxes payable net of the change during the period in deferred tax assets and liabilities.

Foreign Currency Translation

Our functional and reporting currency is United States dollars (“USD”). We maintain our financial statements in the functional currency. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet dates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income (loss) for the respective periods.

Earnings per Share

Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. If applicable, diluted earnings per share assume the conversion, exercise or issuance of all common stock instruments unless the effect is to reduce a loss or increase earnings per share. We had no dilutive securities as of December 31, 2021.

Recently Issued Accounting Pronouncements

In June 2018, the Financial Accounting Standards Board (the “FASB”) issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”, to include share-based payment transactions for acquiring goods and services from nonemployees. ASU 2018-07 simplifies the accounting for nonemployee share-based payments, aligning it more closely with the accounting for employee awards. These changes become effective for our fiscal year beginning July 1, 2020. Early application is permitted. At this time, we do not expect this standard to affect our financial position, results of operations or cash flows and disclosures.

8

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) did not or are not expected to have a material impact on our present or future financial statements.

Effect of Covid-19 Outbreak on Business Operations

In December 2019, Covid-19 was first identified, and in March 2020, the World Health Organization categorized Covid-19 as a pandemic. The Covid-19 pandemic is affecting our customers, service providers and employees, and the ultimate impacts of Covid-19 on our business, results of operations, liquidity and prospects are not fully known at this time. However, the Covid-19 outbreak has had a relatively minimal impact on our business to date. We currently do not anticipate any significant asset impairments resulting from the Covid-19 pandemic. We believe that we have the resources required to attain our growth objectives and to meet any unforeseen difficulties resulting from the Covid-19 pandemic. However, we will continue to closely monitor the Covid-19 pandemic and its impact on our business in the coming months. There have been recent spikes in Covid-19 cases, and some health experts have predicted that the Covid-19 pandemic will worsen during the winter months.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 4. Controls and Procedures.

(a)Evaluation of Disclosure Controls and Procedures

We conducted an evaluation, under the supervision and with the participation of our management, of the effectiveness of the design and operation of our disclosure controls and procedures. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended (“Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures also include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our principal executive and principal financial officers concluded as of December 31, 2021 that our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses in our internal controls over financial reporting discussed immediately below.

Identified Material Weakness

A material weakness in our internal control over financial reporting is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.

Management identified the following material weakness during its assessment of internal controls over financial reporting, which are primarily due to the size of the Company and available resources:

Personnel:  We do not employ a full time Chief Financial Officer. Shannon Wilkinson serves as both Chief Executive Officer and Chief Financial Officer. We utilize a consultant to assist with our financial reporting. There are limited personnel to assist with the accounting and financial reporting function, which results in: (i) a lack of segregation of duties and (ii) controls that may not be adequately designed or operating effectively. Despite the existence of material weaknesses, the Company believes the financial information presented herein is materially correct and fairly presents the financial position and operating results of the three and six months ended December 31, 2021, in accordance with GAAP. During 2022, the Company intends to seek qualified accounting staff to expand its internal accounting and reporting functions.

Audit Committee: We do not yet have an audit committee, and we lack a financial expert. During 2022-2023, the Board expects to appoint an Audit Committee and to identify a committee Chairman who is an “audit committee financial expert” as defined by the Securities and Exchange Commission (“SEC”) and as adopted under the Sarbanes-Oxley Act of 2002.

(b) Management's Report on Internal Control Over Financial Reporting.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is a process designed by, or under the supervision of, our CEO and CFO, or persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America (GAAP). Our internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that receipts and expenditures of the Company are being made only in accordance with authorization of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2021. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in the 2013 Internal Control-Integrated Framework. Based on its evaluation, management has concluded that the Company’s internal control over financial reporting was not effective as of December 31, 2021.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. A control system, no matter how well designed and operated can provide only reasonable, but not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their cost.

(c) Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting subsequent to the six month period ended December 31, 2021, which were identified in connection with our management’s evaluation required by paragraph (d) of rules 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

We are not required by current SEC rules to include an auditor's attestation report. Our registered public accounting firm has not attested to Management's reports on our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may become subject to various legal proceedings that are incidental to the ordinary conduct of its business. Although we cannot accurately predict the amount of any liability that may ultimately arise with respect to any of these matters, it makes provision for potential liabilities when it deems them probable and reasonably estimable. These provisions are based on current information and legal advice and may be adjusted from time to time according to developments.

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest. 

Item 1A. Risk Factors.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

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

During the six-month period ended December 31, 2021, the Company completed various private placements whereby a total of 5,458,810 common shares were issued at a price of $0.25 and 100,000 common shares were issued at a price of $0.50 per share for a total value of $1,425,202.

During the six-month period ended December 31, 2021, the Company issued 68,673 common shares for services valued at $51,289.

During the six-month period ended December 31, 2021, the Company issued 134,899 common shares valued at $103,961 for prepaid contractor and consultant expenses.

During the six month period ended December 31, 2021, the Company issued 937,151 common shares for the conversion of debt at a conversion price of $0.10 per share for a total value of $93,715.

Item 3. Defaults Upon Senior Securities. 

None.

Item 4. Mine Safety Disclosures.

N/A.

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Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit Number	Description of Exhibit
3.1	Articles of Incorporation filed with the Nevada Secretary of State on September 6, 2019	Previously filed with the SEC on September 21, 2020, as an exhibit to our S-1 Registration Statement
3.2	Bylaws	Previously filed with the SEC on September 21, 2020 as an exhibit to our S-1 Registration Statement.
10.1	Compilation of Website or Software Development Agreement and Addendum between Company and CISTCK dated June 4, 2020	Previously filed with the SEC on October 27, 2020 as an exhibit to our amendment to our S-1 Registration Statement.
10.2	Compilation of Master Services Agreement between Company and IONnovate, LLC	Previously filed with the SEC on September 16, 2021 as an exhibit to Form 8-K.
31.1	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith.
31.2	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith.
32.1	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith.
101.INS*	XBRL Instance Document	Filed herewith.
101.SCH*	XBRL Taxonomy Extension Schema Document	Filed herewith.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document	Filed herewith.
101.LAB*	XBRL Taxonomy Extension Labels Linkbase Document	Filed herewith.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document	Filed herewith.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document	Filed herewith.

*	Filed herewith.
**	Furnished herewith.

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SIGNATURES

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

	Tego Cyber Inc.
Date: May 2, 2022	By:	/s/ Shannon Wilkinson
		Shannon Wilkinson
		Chief Executive Officer (Principal Executive Officer), and Chief Financial Officer (Principal Financial and Principal Accounting Officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATION OF

PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Shannon Wilkinson, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q/A of the Registrant for the period ended December 31, 2021;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	As the Registrant’s certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.	Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.	Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. As the Registrant’s certifying officer, I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant auditors and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

	Tego Cyber Inc.
Date: May 2, 2022	By:	/s/ Shannon Wilkinson
	Name:	Shannon Wilkinson
	Title:	Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF

PRINCIPAL ACCOUNTING OFFICER

PURSUANT TO SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Shannon Wilkinson, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q/A of the Registrant for the period ended December 31, 2021;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	As the Registrant’s certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.	Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.	Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. As the Registrant’s certifying officer, I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant auditors and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

	Tego Cyber Inc.
Date: May 2, 2022	By:	/s/ Shannon Wilkinson
	Name:	Shannon Wilkinson
	Title:	Chief Financial Officer (Principal Financial and Principal Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Tego Cyber Inc. (the “Company”) on Form 10-Q/A for the quarterly period ended December 31, 2021, as filed with the Securities and Exchange Commission (the “Report”), I, Shannon Wilkinson, the Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial and Accounting Officer), certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2)	To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

	Tego Cyber Inc.
Date: May 2, 2022
	By:	/s/ Shannon Wilkinson
	Name:	Shannon Wilkinson
	Title:	Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial and Principal Accounting Officer)

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Cover - shares	6 Months Ended
	Dec. 31, 2021	Feb. 14, 2022
Cover [Abstract]
Entity Registrant Name	TEGO CYBER INC.
Entity Central Index Key	0001815632
Document Type	10-Q/A
Amendment Flag	true
Current Fiscal Year End Date	--06-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	No
Document Period End Date	Dec. 31, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Entity Common Stock Shares Outstanding		25,096,044
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity File Number	333-248929
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	84-2678167
Entity Address Address Line 1	8565 South Eastern Avenue
Entity Address Address Line 2	Suite 150
Entity Address City Or Town	Las Vegas
Entity Address State Or Province	NV
Entity Address Postal Zip Code	89123
City Area Code	855
Local Phone Number	939-0100
Amendment Description	Tego Cyber Inc. is filing this Amendment No. 1 on Form 10-Q/A for the period ended December 31, 2021, as filed with the Securities and Exchange Commission (the “SEC”) on February 14, 2022 (the “Original Filing”).   The purpose of this Amendment No. 1 on Form 10-Q/A is to amend the disclosures contained in Item 4 - Controls and Procedures as provided in the Original Filing, and expand the disclosures to explain why Company controls and procedures are ineffective and management's plans for their remediation.  For convenience and ease of reference, the Company is filing this Form 10-Q/A in its entirety with all applicable changes and unless otherwise stated, all information contained in this amendment is as of February 14, 2022, the filing date of the Original Filing. Except as stated herein, this Form 10-Q/A does not reflect events or transactions occurring after such filing date or modify or update those disclosures in the original Form 10-Q that may have been affected by events or transactions occurring subsequent to such filing date.

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INTERIM CONDENSED BALANCE SHEET - USD ($)	Dec. 31, 2021	Jun. 30, 2021
Current Assets
Cash	$ 990,261	$ 583,015
Accounts Receivable	1,150	1,450
Prepaid Expenses	148,611	113,462
Total Current Assets	1,140,022	697,927
Computer Equipment, Net	854	0
Software	242,173	75,750
Total Assets	1,383,049	773,677
Current Liabilities
Accounts Payable And Accrued Liabilities	17,068	23,010
Convertible Debts	0	22,621
Total Liabilities	17,068	45,631
Shareholders' Equity
Common Shares 50,000,000 Shares Authorized $0.001 Par Value 24,996,044 Shares Issued And Outstanding At December 31, 2021 18,296,511 Shares Issued And Outstanding At June 30, 2021	24,996	18,297
Additional Paid In Capital	3,377,599	1,720,631
Subscriptions Receivable	0	(10,500)
Accumulated Deficit	(2,036,614)	(1,000,382)
Total Shareholders' Equity	1,365,981	728,046
Total Liabilities Shareholders Equity	$ 1,383,049	$ 773,677

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INTERIM CONDENSED BALANCE SHEET (Parenthetical) - $ / shares	Dec. 31, 2021	Jun. 30, 2021
INTERIM CONDENSED BALANCE SHEET
Common Stock, Authorized	50,000,000	50,000,000
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Issued	24,996,044	18,296,511
Common Stock, Outstanding	24,966,044	18,296,511

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INTERIM CONDENSED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Revenue
Consulting Fees	$ 1,050	$ 900	$ 1,050	$ 3,800
Operating Expenses
Adverting And Promotion	31,404	4,375	90,283	19,545
Amortization	324	0	324	0
Contractors And Consultants	127,968	0	240,251	0
Interest And Bank Charges	2,638	918	5,736	1,733
Insurance	6,920	0	6,920	0
Investor Relations And Shareholder Communication	58,152	2,749	120,928	2,749
Legal And Accounting	97,509	50,500	152,007	83,990
Management Fees	50,000	31,000	127,500	56,500
Office And Administration	2,930	1,163	4,447	2,250
Software Subscription And Platform Costs	21,924	0	34,390	0
Subscriptions & Dues	45	165	3,156	296
Transfer Agent And Filing Fees	3,590	4,675	21,204	8,996
Travel, Meals & Entertainment	5,837	346	12,340	492
Wages & Benefits	124,772	0	151,664	0
Total Operating Expenses	528,153	95,891	971,150	176,551
Loss From Operations	(527,103)	(94,991)	(970,100)	(172,751)
Other Income (expense)
Accretion Expense	(36,917)	(12,511)	(66,132)	(12,511)
Financing Fees	0	(11,484)	0	(11,484)
Total Other Income (expense)	(36,917)	(23,995)	(66,132)	(23,995)
Net Loss	$ (564,020)	$ (118,986)	$ (1,036,232)	$ (196,746)
Basic And Diluted Loss Per Common Share	$ (0.03)	$ (0.01)	$ (0.05)	$ (0.02)
Weighted Average Number Of Common Shares Outstanding	19,387,699	12,926,758	20,763,618	12,872,693

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INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Subscription Receivable	Accumulated Deficit
Balance, Shares at Jun. 30, 2020		12,406,236
Balance, Amount at Jun. 30, 2020	$ 86,610	$ 12,406	$ 175,906	$ (24,500)	$ (77,202)
Private Placement, Shares		554,000
Private Placement, Amount	61,000	$ 554	37,946	22,500	0
Shares Issued As Transaction Costs For Convertible Debts, Shares		110,000
Shares Issued As Transaction Costs For Convertible Debts, Amount	11,000	$ 110	10,890	0	0
Equity Portion Of Convertible Debts	81,961	0	81,961	0	0
Warrants Issued With Convertible Debts	46,898	0	46,898	0	0
Net Loss For The Year Ended June 30, 2021	(196,746)	$ 0	0	0	(196,746)
Balance, Shares at Dec. 31, 2020		13,070,236
Balance, Amount at Dec. 31, 2020	90,723	$ 13,070	353,601	(2,000)	(273,948)
Balance, Shares at Jun. 30, 2021		18,296,511
Balance, Amount at Jun. 30, 2021	728,046	$ 18,297	1,720,631	(10,500)	(1,000,382)
Shares Issued As Transaction Costs For Convertible Debts, Amount	0
Equity Portion Of Convertible Debts	0
Warrants Issued With Convertible Debts	0
Net Loss For The Year Ended June 30, 2021	(1,036,232)	$ 0	0	0	(1,036,232)
Shares Issued For Cash, Shares		5,558,810
Shares Issued For Cash, Amount	1,425,202	$ 5,559	1,409,143	10,500	0
Shares Issued For Services, Shares		68,673
Shares Issued For Services, Amount	51,289	$ 68	51,221	0	0
Shares Issued For Settlement Of Debt, Shares		937,151
Shares Issued For Settlement Of Debt, Amount	93,715	$ 937	92,778	0	0
Shares Issued As Prepaid Expenses, Shares		134,899
Shares Issued As Prepaid Expenses, Amount	103,961	$ 135	103,826	0	0
Balance, Shares at Dec. 31, 2021		24,996,044
Balance, Amount at Dec. 31, 2021	$ 1,365,981	$ 24,996	$ 3,377,599	$ 0	$ (2,036,614)

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INTERIM CONDENSED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash Flows From Operating Activities
Net Loss For The Period	$ (1,036,232)	$ (196,746)
Items Not Affecting Cash
Amortization	324	0
Shares Issued For Services	51,289	0
Interest On Short Term Debt	4,962	0
Accretion Expense On Convertible Debts	66,132	12,511
Financing Fees	0	11,484
Changes In Non-cash Working Capital Items:
Accounts Receivable	300	(1,000)
Prepaid Expenses	68,812	0
Accounts Payable And Accrued Liabilities	(7,650)	16,287
Net Cash Used In Operating Activities	(852,063)	(157,464)
Cash Flows From Investing Activities
Computer Equipment	(1,178)	0
Software	(164,715)	(24,250)
Net Cash Used In Investing Activities	(165,893)	(24,250)
Cash Flows From Financing Activities
Proceeds From Shares Issued	1,425,202	61,000
Proceeds From Issuance Of Convertible Debt	0	150,000
Convertible Debt Issuance Costs	0	(15,000)
Net Cash Provided By Financing Activities	1,425,202	196,000
Net Increase (decrease) In Cash	407,246	14,286
Cash At Beginning Of The Period	583,015	81,872
Cash At End Of The Period	990,261	96,158
Non-cash Investing And Financing Activities:
Software Included In Accounts Payable And Accrued Liabilities	1,708	5,000
Shares Issued For Prepaid Expenses	103,961	0
Shares Issued For Settlement Of Debt	93,715	0
Shares Issued With Convertible Debt	0	11,000
Warrants Issued With Convertible Debt	0	46,898
Equity Portion Of Convertible Debts	$ 0	$ 81,961

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ORGANIZATION AND DESCRIPTION OF BUSINESS

6 Months Ended

Dec. 31, 2021

ORGANIZATION AND DESCRIPTION OF BUSINESS

1. Organization And Description Of Business

NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS

Tego Cyber Inc. (the “Company”) was incorporated on September 6, 2019 in the State of Nevada. The Company was created to capitalize on the emerging cyber threat intelligence market. It has developed a cyber threat intelligence application that integrates with top end security platforms to gather, analyze, then proactively identify threats to an enterprise network. The Tego Guardian Threat Intelligence Platform takes in vetted and curated threat data and after utilizing a proprietary process, the platform compiles, analyzes, and then delivers that data to an enterprise network in a format that is timely, informative, and relevant. The threat data provides additional context including specific details needed to identify and counteract threats so that security teams can spend less time searching for disparate information. The first version of the application integrated with the widely accepted Splunk SIEM to provide real-time threat intelligence to macro enterprises using the Splunk architecture. The Company plans on developing future versions of the Tego Guardian app for integration with other established SIEM systems and platforms including: Elastic, IBM QRadar, AT&T Cybersecurity, Exabeam, and Google Chronical. The Company also offer advanced cybersecurity consulting services including vulnerability assessments, penetration testing, vCISO services, dark web monitoring, cybersecurity policy creation and employee training.

The Company’s head office is at at 8565 S. Eastern Ave. #150, Las Vegas, Nevada, 89123.

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BASIS OF PRESENTATION

6 Months Ended

Dec. 31, 2021

BASIS OF PRESENTATION

2. Basis Of Presentation

NOTE 2 – BASIS OF PRESENTATION

The accompanying interim condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”).

Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to US GAAP rules and regulations for presentation of interim financial information. Therefore, the unaudited interim condensed financial statements should be read in conjunction with the financial statements and the notes thereto, included in the Company’s audited financial statements for the year ended June 30, 2021. Current and future financial statements may not be directly comparable to the Company’s historical financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended June 30, 2021. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the six months ended December 31, 2021 are not necessarily indicative of the results that may be expected for the year ending June 30, 2022.

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GOING CONCERN UNCERTAINTY

6 Months Ended

Dec. 31, 2021

GOING CONCERN UNCERTAINTY

3. Going Concern Uncertainty

NOTE 3 – GOING CONCERN UNCERTAINTY

The accompanying unaudited interim financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of the business. The Company has incurred material losses from operations and has an accumulated deficit. At December 31, 2021, the Company had a working capital surplus of $1,122,954 and has an accumulated deficit of $2,036,614. For the period ended December 31, 2021, the Company sustained net losses and generated negative cash flows from operations. In March 2020, the World Health Organization recognized the outbreak of COVID-19 as a global pandemic. The COVID-19 pandemic and government actions implemented to contain the further spread of COVID-19 have severely restricted economic activity around the world. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern. These adjustments could be material. The Company’s continuation as a going concern is contingent upon its ability to earn adequate revenues from operations and to obtain additional financing. There is no assurance that the Company will be able to obtain such financings or obtain them on favorable terms.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Dec. 31, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4. Summary Of Significant Accounting Policies

NOTE 4 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies is presented to assist in understanding the interim condensed financial statements. The interim condensed financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to US GAAP and have been consistently applied in the preparation of the interim condensed financial statements.

Basis of Preparation

The accompanying interim condensed financial statements have been prepared to present the balance sheet, the statement of operations and comprehensive loss, statement of changes in shareholders’ equity and statement of cash flows of the Company for the six month period ended December 31, 2021, and have been prepared in accordance with US GAAP.

Use of Estimates

In preparing the interim condensed financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the interim condensed financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and accounts receivable. As at December 31, 2021, substantially all of the Company’s cash was held by major financial institutions located in the United States, which management believes are of high credit quality. With respect to accounts receivable, the Company extended credit based on an evaluation of the customer’s financial condition. The Company generally did not require collateral for accounts receivable and maintained an allowance for doubtful accounts of accounts receivable if necessary.

Cash

Cash consists of cash held at major financial institutions and is subject to insignificant risk of changes in value.

Receivables and Allowance for Doubtful Accounts

Trade accounts receivable are recorded at net realizable value and do not bear interest. No allowance for doubtful accounts was made during the six month period ended December 31, 2021, based on management’s best estimate of the amount of probable credit losses in accounts receivable. The Company evaluates its allowance for doubtful accounts based upon knowledge of its customers and their compliance with credit terms. The evaluation process includes a review of customers’ accounts on a regular basis. The review process evaluates all account balances with amounts outstanding for more than 60 days and other specific amounts for which information obtained indicates that the balance may be uncollectible. As of December 31, 2021, there was no allowance for doubtful accounts and the Company does not have any off-balance-sheet credit exposure related to its customers.

Software

Software is stated at cost less accumulated amortization and is depreciated using the straight-line method over the estimated useful life of the asset. The estimated useful life of the asset is 5 years and is not depreciated until it is available for use by the Company.

Leases

The Company determines if an arrangement is a lease at inception. Operating and financing right-of-use assets and lease liabilities are included on the balance sheet. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, based on the information available at the commencement date, in determining the present value of future lease payments. Right-of-use assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Operating lease expenses are recognized on a straight-line basis over the term of the lease, consisting of interest accrued on the lease liability and depreciation of the right-of-use asset. The lease terms may include options to extend or terminate the lease is it is reasonably certain the Company will exercise that option.

Fair Value of Financial Instruments

Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, adopted January 1, 2008, defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The Company’s financial instruments include cash, current receivables and payables, convertible debts, and warrants. These financial instruments are measured at their respective fair values.

The three levels are defined as follows:

Level 1 - inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value.

For cash, accounts receivable, accounts payable and due to related parties, it is management’s opinion that the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their stated interest rate approximates current rates available.

For convertible debts, the carrying values, excluding any unamortized discounts, approximate the respective fair value. The convertible debts have been discounted to reflect their net present value as at December 31, 2021. The carrying values of embedded conversion features not considered to be derivative instruments were determined by allocating the remaining carrying value of the convertible debt after deducting the estimated carrying value of the liability portion.

Estimating fair value for warrants require determining the most appropriate valuation model which is dependent on the terms and conditions of the grant. This estimate requires determining the most appropriate inputs to the valuation model including the expected life of the warrant, volatility, dividend yield, and rate of forfeitures and making assumptions about them.

Revenue Recognition

Revenue from providing consulting and management services is recognized in a manner that reasonably reflects the delivery of services to customers in return for expected consideration and includes the following elements:

- executed contracts with the Company’s customers that it believes are legally enforceable;

- identification of performance obligations in the respective contract;

- determination of the transaction price for each performance obligation in the respective contract;

- allocation of the transaction price to each performance obligation; and

- recognition of revenue only when the Company satisfies each performance obligation.

These five elements as applied to the Company’s consulting services results in revenue recorded as services are provided.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes pursuant to ASC 740 “Income Taxes”. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. The provision for income taxes represents current taxes payable net of the change during the period in deferred tax assets and liabilities.

Foreign Currency Translation

The Company’s functional and reporting currency is United States dollars (“USD”). The Company maintains its financial statements in the functional currency. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet dates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income (loss).

Earnings (Loss) per Share

Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. If applicable, diluted earnings (loss) per share assume the conversion, exercise or issuance of all common stock instruments unless the effect is to reduce a loss or increase earnings per share. The Company had no dilutive securities for the three-month and six-month period ended December 31, 2021.

Recently Issued Accounting Pronouncements

Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) did not or are not expected to have a material impact on the Company's present or future financial statements.

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SOFTWARE

6 Months Ended

Dec. 31, 2021

SOFTWARE

5. Software

NOTE 5 – SOFTWARE

Balance, June 30, 2020	$	21,500
Additions		54,250
Depreciation		-
Balance, June 30, 2021		75,750
Additions		166,423
Depreciation		-
Balance, December 31, 2021	$	242,173

As at December 31, 2021, the software is not in use and no depreciation has been recorded.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Dec. 31, 2021

RELATED PARTY TRANSACTIONS

6. Related Party Transactions

NOTE 6 – RELATED PARTY TRANSACTIONS

Related party transactions are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Related parties are natural persons or other entities that have the ability, directly, or indirectly, to control another party or exercise significant influence over the party in making financial and operating decisions. Related parties include other parties that are subject to common control or that are subject to common significant influences.

During the six-month period ended December 31, 2021, there were transactions incurred between the Company and Shannon Wilkinson, Director, CEO, CFO, Secretary and Treasurer of the Company, for management fees of $45,000 (December 31, 2020 - $56,500) and net wages of $43,505 (December 31, 2020 - $Nil).

During the six-month period ended December 31, 2021, there were transactions incurred between the Company and Troy Wilkinson, Director and President of the Company, for management fees of $70,000 (December 31, 2020 - $Nil).

During the six-month period ended December 31, 2021, there were transactions incurred between the Company and Chris White, Director and CISO of the Company, for management fees of $12,500 (December 31, 2020 - $Nil) and net wages of $24,511 (December 31, 2020 - $Nil).

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COMMON SHARES

6 Months Ended

Dec. 31, 2021

Shareholders' Equity

7. Common Shares

NOTE 7 – COMMON SHARES

Common Stock

At December 31, 2021, the Company’s authorized capital consisted of 50,000,000 of common shares with a $0.001 par value and 24,996,044 shares were issued and outstanding.

During the six-month period ended December 31, 2021, the Company incurred the following transactions:

During the six-month period ended December 31, 2021, the Company completed various private placements whereby a total of 5,458,810 common shares were issued at a price of $0.25 and 100,000 common shares were issued at a price of $0.50 per share for a total value of $1,425,202.

During the six-month period ended December 31, 2021, the Company issued 68,673 common shares for services valued at $51,289.

During the six-month period ended December 31, 2021, the Company issued 134,899 common shares valued at $103,961 for prepaid contractor and consultant expenses.

On December 31, 2021, the Company issued 937,151 common shares for the conversion of debt at a conversion price of $0.10 per share for a total value of $93,715. (Note 8)

During the six-month period ended December 31, 2020, the Company incurred the following transactions:

During the period from July 2, 2020 to July 31, 2020, the Company completed various private placements whereby a total of 500,000 common shares were issued at a price of $0.05 per share for a total value of $25,000.

During the period from November 24, 2020 to December 11, 2020, the Company completed various private placements whereby a total of 54,000 common shares were issued at a price of $0.25 per share for a total value of $13,500.

On December 28, 2020, the Company issued 110,000 shares to a non-related party at a price of $0.10 per share for a total value of $11,000 as commitment shares in exchange for services related to the issuance of convertible debt on Note 8 (c).

Warrants

On December 28, 2020, the Company granted 1,100,000 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (b)). The warrants were valued at $145,744 using the Black Scholes Option Pricing Model.

On March 25, 2021, the Company granted 1,100,000 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (c)). The warrants were valued at $147,266 using the Black Scholes Option Pricing Model.

On April 22, 2021, the Company granted 506,838 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (a)). The warrants were valued at $399,087 using the Black Scholes Option Pricing Model.

On April 28, 2021, the Company granted 307,408 warrants with a contractual life of two years and exercise price of $0.25 per share to a lender as part of the convertible debt financing transaction (Note 8 (a)). The warrants were valued at $196,399 using the Black Scholes Option Pricing Model.

The Black Scholes Option Pricing Model assumptions used in the valuation of the warrants are outlined below. The stock price was based on recent issuances. Expected life was based on the expiry date of the warrants as the Company did not have historical exercise data of such warrants.

	June 30, 2021
Stock price	$0.85 - $0.25
Risk-free interest rate	0.13%-0.17		%
Expected life	2 Years
Expected dividend rate		0
Expected volatility	102.03% - 206.63		%

Continuity of the Company’s common stock purchase warrants issued and outstanding is as follows:

	Number of Warrants		Weighted Average Exercise Price
Outstanding, June 30, 2020		-	$	-
Granted		3,014,246		0.25
Exercised		-		-
Expired		-		-
Outstanding, June 30, 2021 and December 31, 2021		3,014,246	$	0.25

As at December 31, 2021, the weighted average remaining contractual life of warrants outstanding was 0.71 years with an intrinsic value of $0.25.

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COVERTIBLE DEBTS

6 Months Ended

Dec. 31, 2021

COVERTIBLE DEBTS

8. Covertible Debts

NOTE 8 – CONVERTIBLE DEBTS

(a)

On November 10, 2020, the Company issued a convertible debt in the principal amount of $20,000 each in exchange for cash. The convertible debt is unsecured, bears interest at 8% per annum compounded on the basis of a 365-day year and actual days lapsed, is convertible at $0.10 per 1 common share, and has a maturity date of May 10, 2021. The carrying value of beneficial conversion features not considered to be derivative instruments were determined by allocating the intrinsic value of the conversion features from proceeds. As a result, total proceeds of $20,000 were allocated to the beneficial conversion feature, recorded as equity portions of convertible debt and there were no remaining proceeds available for allocation to the liability portion of the convertible debt. The convertible debt was discounted by the amounts allocated to the conversion features.

On April 22, 2021, the Company renegotiated the terms of the convertible debt in exchange for a new convertible debt in the principal amount of $55,245 at $50,684, with $4,561 original issue discount, for additional cash proceeds of $30,000 and surrender of the convertible note previously issued. In connection with the note, the Company issued 506,838 warrants exercisable at $0.25 per share, expiring on April 22, 2023. The warrants were calculated to have a relative fair value of $44,088. The convertible debt is unsecured, bears interest at 8% per annum compounded on the basis of a 365-day year and actual days elapsed, is convertible at $0.10 per 1 common share, and matures on January 22, 2022. The terms of the new convertible debt were substantially different and deemed extinguished resulting in a gain of $18,049 recorded on extinguishment of convertible debt.

	The proceeds were allocated between the convertible debt and warrants on a relative fair value basis, and the issuance costs were proportioned accordingly. The fair value of the convertible debt was calculated using the present value of the debt and related interest at 12% incremental borrowing rate as the discount rate. The warrants were valued using the Black Scholes Option Pricing Model (Note 7).
	The carrying value of beneficial conversion feature not considered to be a derivative instrument was determined by allocating $5,912 for the intrinsic value of the conversion features from the remaining proceeds allocated to the convertible debt after deducting the amount allocated to the warrants. As such, there were no remaining proceeds available for allocating to the liability portion of the convertible debt.
	On December 31, 2021 the outstanding balance of the convertible debt and accrued interest was converted in exchange for 583,936 common shares at a conversion price of $0.10 per share for a total value of $58,394. As at December 31, 2021, the carrying value of this convertible debt was $nil (June 30, 2021 - $14,374).
(b)	On November 10, 2020, the Company issued a convertible debt in the principal amount of $20,000 each in exchange for cash. The convertible debt is unsecured, bears interest at 8% per annum compounded on the basis of a 365-day year and actual days lapsed, is convertible at $0.10 per 1 common share, and has a maturity date of May 10, 2021. The carrying value of beneficial conversion features not considered to be derivative instruments were determined by allocating the intrinsic value of the conversion features from proceeds. As a result, total proceeds of $20,000 were allocated to the beneficial conversion feature, recorded as equity portions of convertible debt and there were no remaining proceeds available for allocation to the liability portion of the convertible debt. The convertible debt was discounted by the amounts allocated to the conversion features.
	On April 28, 2021, the Company renegotiated the terms of the convertible debt in exchange for a new convertible debt in the principal amount of $33,508 at $30,741, with $2,767 original issue discount, for additional cash proceeds of $10,000 and surrender of the convertible note previously issued. In connection with the note, the Company issued 307,408 warrants exercisable at $0.25 per share, expiring on April 28, 2023. The warrants were calculated to have a relative fair value of $25,745. The convertible debt is unsecured, bears interest at 8% per annum compounded on the basis of a 365-day year and actual days elapsed, is convertible at $0.10 per 1 common share, and matures on January 28, 2022. The terms of the new convertible debt were substantially different and deemed extinguished resulting in a gain of $18,682 recorded on extinguishment of convertible debt.
	The proceeds were allocated between the convertible debt and warrants on a relative fair value basis, and the issuance costs were proportioned accordingly. The fair value of the convertible debt was calculated using the present value of the debt and related interest at 12% incremental borrowing rate as the discount rate. The warrants were valued using the Black Scholes Option Pricing Model (Note 7).
	The carrying value of beneficial conversion features not considered to be derivative instruments was determined by allocating $4,255 for the intrinsic value of the conversion features from the remaining proceeds allocated to the convertible debt after deducting the amount allocated to the warrants. As such, there were no remaining proceeds available for allocating to the liability portion of the convertible debt.
	On December 31, 2021 the outstanding balance of the convertible debt and accrued interest was converted in exchange for 353,215 common shares at a conversion price of $0.10 per share for a total value of $35,322. As at December 31, 2021, the carrying value of this convertible debt was $nil (June 30, 2021 - $8,247).

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Dec. 31, 2021

COMMITMENTS AND CONTINGENCIES

9. Commitments And Contingencies

NOTE 9 – COMMITMENTS AND CONTINGENCIES

The Company leases its corporate office located at 8565 S. Eastern Ave. #150, Las Vegas, Nevada. The initial lease term is for 12 months commencing on September 8, 2019 after which the term is on a month-to-month basis. After the initial term, the Company may cancel the lease agreement at any time by providing 30 days written notice. The Company has elected the short-term lease practical expedient of 12 months and has not recorded a lease.

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INCOME TAXES

6 Months Ended

Dec. 31, 2021

INCOME TAXES

10. Income Taxes

NOTE 10 – INCOME TAXES

As of December 31, 2021, the Company was in a loss position; therefore, no deferred tax liability was recognized related to the undistributed earnings subject to withholding tax.

Net operating loss carry forward of the Company, amounted to $1,709,060 for the six month period ended December 31, 2021 (June 30, 2021 - $741,817). The net operating loss carry forwards are available to be utilized against future taxable income for years through calendar year 2041. In assessing the reliability of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled projected future taxable income, and tax planning strategies in making this assessment.

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SUBSEQUENT EVENTS

6 Months Ended

Dec. 31, 2021

SUBSEQUENT EVENTS

11. Subsequent Events

NOTE 11 – SUBSEQUENT EVENTS

On January 1, 2022 the Company issued 100,000 common shares to a consultant at a price of $0.65 per share for a total value of $65,000.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Dec. 31, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis Of Preparation

The accompanying interim condensed financial statements have been prepared to present the balance sheet, the statement of operations and comprehensive loss, statement of changes in shareholders’ equity and statement of cash flows of the Company for the six month period ended December 31, 2021, and have been prepared in accordance with US GAAP.

Use Of Estimates

In preparing the interim condensed financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the interim condensed financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made. However, actual results could differ materially from those estimates.

Concentrations Of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and accounts receivable. As at December 31, 2021, substantially all of the Company’s cash was held by major financial institutions located in the United States, which management believes are of high credit quality. With respect to accounts receivable, the Company extended credit based on an evaluation of the customer’s financial condition. The Company generally did not require collateral for accounts receivable and maintained an allowance for doubtful accounts of accounts receivable if necessary.

Cash

Cash consists of cash held at major financial institutions and is subject to insignificant risk of changes in value.

Receivables And Allowance For Doubtful Accounts

Trade accounts receivable are recorded at net realizable value and do not bear interest. No allowance for doubtful accounts was made during the six month period ended December 31, 2021, based on management’s best estimate of the amount of probable credit losses in accounts receivable. The Company evaluates its allowance for doubtful accounts based upon knowledge of its customers and their compliance with credit terms. The evaluation process includes a review of customers’ accounts on a regular basis. The review process evaluates all account balances with amounts outstanding for more than 60 days and other specific amounts for which information obtained indicates that the balance may be uncollectible. As of December 31, 2021, there was no allowance for doubtful accounts and the Company does not have any off-balance-sheet credit exposure related to its customers.

Software

Software is stated at cost less accumulated amortization and is depreciated using the straight-line method over the estimated useful life of the asset. The estimated useful life of the asset is 5 years and is not depreciated until it is available for use by the Company.

Leases

The Company determines if an arrangement is a lease at inception. Operating and financing right-of-use assets and lease liabilities are included on the balance sheet. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate, based on the information available at the commencement date, in determining the present value of future lease payments. Right-of-use assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Operating lease expenses are recognized on a straight-line basis over the term of the lease, consisting of interest accrued on the lease liability and depreciation of the right-of-use asset. The lease terms may include options to extend or terminate the lease is it is reasonably certain the Company will exercise that option.

Fair Value Of Financial Instruments

Accounting Standards Codification (“ASC”) 820 “Fair Value Measurements and Disclosures”, adopted January 1, 2008, defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The Company’s financial instruments include cash, current receivables and payables, convertible debts, and warrants. These financial instruments are measured at their respective fair values.

The three levels are defined as follows:

Level 1 - inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value.

For cash, accounts receivable, accounts payable and due to related parties, it is management’s opinion that the carrying values are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their stated interest rate approximates current rates available.

For convertible debts, the carrying values, excluding any unamortized discounts, approximate the respective fair value. The convertible debts have been discounted to reflect their net present value as at December 31, 2021. The carrying values of embedded conversion features not considered to be derivative instruments were determined by allocating the remaining carrying value of the convertible debt after deducting the estimated carrying value of the liability portion.

Estimating fair value for warrants require determining the most appropriate valuation model which is dependent on the terms and conditions of the grant. This estimate requires determining the most appropriate inputs to the valuation model including the expected life of the warrant, volatility, dividend yield, and rate of forfeitures and making assumptions about them.

Revenue Recognition

Revenue from providing consulting and management services is recognized in a manner that reasonably reflects the delivery of services to customers in return for expected consideration and includes the following elements:

- executed contracts with the Company’s customers that it believes are legally enforceable;

- identification of performance obligations in the respective contract;

- determination of the transaction price for each performance obligation in the respective contract;

- allocation of the transaction price to each performance obligation; and

- recognition of revenue only when the Company satisfies each performance obligation.

These five elements as applied to the Company’s consulting services results in revenue recorded as services are provided.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes pursuant to ASC 740 “Income Taxes”. ASC 740 requires an asset and liability approach for financial accounting and reporting for income taxes and allows recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. The provision for income taxes represents current taxes payable net of the change during the period in deferred tax assets and liabilities.

Foreign Currency Translation

The Company’s functional and reporting currency is United States dollars (“USD”). The Company maintains its financial statements in the functional currency. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet dates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income (loss).

Earnings (loss) Per Share

Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. If applicable, diluted earnings (loss) per share assume the conversion, exercise or issuance of all common stock instruments unless the effect is to reduce a loss or increase earnings per share. The Company had no dilutive securities for the three-month and six-month period ended December 31, 2021.

Recently Issued Accounting Pronouncements

Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force) did not or are not expected to have a material impact on the Company's present or future financial statements.

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SOFTWARE (Tables)

6 Months Ended

Dec. 31, 2021

SOFTWARE

Software

Balance, June 30, 2020	$	21,500
Additions		54,250
Depreciation		-
Balance, June 30, 2021		75,750
Additions		166,423
Depreciation		-
Balance, December 31, 2021	$	242,173

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COMMON SHARES (Tables)

6 Months Ended

Dec. 31, 2021

Shareholders' Equity

Warrant Assumptions

	June 30, 2021
Stock price	$0.85 - $0.25
Risk-free interest rate	0.13%-0.17		%
Expected life	2 Years
Expected dividend rate		0
Expected volatility	102.03% - 206.63		%

Warrant Activity

	Number of Warrants		Weighted Average Exercise Price
Outstanding, June 30, 2020		-	$	-
Granted		3,014,246		0.25
Exercised		-		-
Expired		-		-
Outstanding, June 30, 2021 and December 31, 2021		3,014,246	$	0.25

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GOING CONCERN UNCERTAINTY (Details Narrative) - USD ($)	Dec. 31, 2021	Jun. 30, 2021
GOING CONCERN UNCERTAINTY
Working Capital (deficit)	$ (1,122,954)
Accumulated Deficit	$ (2,036,614)	$ (1,000,382)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	6 Months Ended
	Dec. 31, 2021 USD ($)
Allowance For Doubtful Accounts	$ 0
Software [Member]
Estimated Useful Life	5 years

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SOFTWARE (Details) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2021	Jun. 30, 2021
SOFTWARE
Software, Beginning	$ 75,750	$ 21,500
Additions	166,423	54,250
Depreciation	0	0
Software, Ending	$ 242,173	$ 75,750

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RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Chris White [Member]
Management Fees	$ 12,500	$ 0
Net Wages	24,511	0
Shannon Wilkinson [Member]
Management Fees	45,000	56,500
Net Wages	43,505	0
Troy Wilkinson [Member]
Management Fees	$ 70,000	$ 0

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COMMON SHARES (Details)	12 Months Ended
	Jun. 30, 2021 $ / shares
Expected Life	2 years
Expected Dividend Rate	0.00%
Maximum [Member]
Stock Price	$ 0.25
Risk-free Interest Rate	0.17%
Expected Volatility	102.03%
Minimum [Member]
Stock Price	$ 0.85
Risk-free Interest Rate	0.13%
Expected Volatility	206.63%

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COMMON SHARES (Details 1)	6 Months Ended
	Dec. 31, 2021 $ / shares shares
Shareholders' Equity
Number Of Warrants Outstanding, Beginning | shares	0
Number Of Warrants Granted | shares	3,014,246
Number Of Warrants Exercised | shares	0
Number Of Warrants Expired | shares	0
Number Of Warrants Outstanding, Ending | shares	3,014,246
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 0
Weighted Average Exercise Price Granted | $ / shares	0.25
Weighted Average Exercise Price Exercised | $ / shares	0
Weighted Average Exercise Price Expired | $ / shares	0
Weighted Average Exercise Price Outstanding, Ending | $ / shares	$ 0.25

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COMMON SHARES (Details Narrative) - USD ($)					1 Months Ended		6 Months Ended
	Apr. 28, 2021	Apr. 22, 2021	Mar. 25, 2021	Dec. 28, 2020	Dec. 11, 2020	Jul. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021
Common Stock, Authorized							50,000,000		50,000,000
Common Stock, Par Value							$ 0.001		$ 0.001
Common Stock, Issued							24,996,044		18,296,511
Common Stock, Outstanding							24,966,044		18,296,511
Number Of Warrants Granted							3,014,246
Weighted Average Exercise Price Granted							$ 0.25
Common Stock Shares Issued For Services, Value							$ 51,289
Common Stock Shares Issued For Contractor And Consultant, Value								$ 61,000
Warrant [Member]
Number Of Warrants Granted	307,408	506,838	1,100,000	1,100,000
Weighted Average Exercise Price Granted	$ 0.25	$ 0.25	$ 0.25	$ 0.25
Weighted Average Remaining Contractual Life Of Warrants Outstanding	2 years	2 years	2 years	2 years			8 months 15 days
Fair Value Of Warrant Granted	$ 196,399	$ 399,087	$ 147,266	$ 145,744
Intrinsic Value							$ 0.25
Common Shares [Member]
Stock Issued					54,000	500,000	100,000
Share Price					$ 0.25	$ 0.05	$ 0.50
Proceeds From Share Issued					$ 13,500	$ 25,000	$ 1,425,202
Debt Conversion Price							$ 0.10
Conversion Of Common Stock Shares Issued							937,151
Conversion Of Common Stock Value							$ 93,715
Common Stock Shares Issued For Services							68,673
Common Stock Shares Issued For Services, Value							$ 51,289
Common Stock Shares Issued For Contractor And Consultant							134,899
Common Stock Shares Issued For Contractor And Consultant, Value							$ 103,961
Common Shares [Member] | Non-Related Party [Member]
Stock Issued				110,000
Share Price				$ 0.10
Proceeds From Share Issued				$ 11,000
Common Shares [Member] | Private Placement [Member]
Stock Issued							5,458,810
Share Price							$ 0.25

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COVERTIBLE DEBTS (Details Narrative) - USD ($)		1 Months Ended		6 Months Ended		12 Months Ended
	Nov. 10, 2020	Apr. 28, 2021	Apr. 22, 2021	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021
Total Proceeds Issued A Convertible Debt				$ 0	$ 150,000
Convertible Debt [Member]
Convertible Debt In Exchange For Cash	$ 20,000		$ 55,245
Convertible Debt In Exchange For Cash, Fair Value			50,684
Additional Cash Proceeds			$ 30,000
Warrants Issued			506,838
Warrant Exercisable			$ 0.25
Original Issue Discount			$ 4,561
Convertible Interest Rate	8.00%		8.00%
Total Proceeds Issued A Convertible Debt	$ 20,000
Fair Value			$ 44,088
Extinguishment Of Convertible Debt			$ 18,049
Beneficial Conversion Features				5,912
Carrying Value Of Convertible Debt				$ 0		$ 14,374
Conversion Price				$ 0.10
Conversion Of Common Stock Value				$ 58,394
Conversion Of Common Stock Shares Issued				583,936
Convertible Debt One [Member]
Convertible Debt In Exchange For Cash	$ 20,000	$ 33,508
Convertible Debt In Exchange For Cash, Fair Value		30,741
Additional Cash Proceeds		$ 10,000
Warrants Issued		307,408
Warrant Exercisable		$ 0.25
Original Issue Discount		$ 2,767
Convertible Interest Rate	8.00%	8.00%
Total Proceeds Issued A Convertible Debt	$ 20,000
Fair Value		$ 25,745
Extinguishment Of Convertible Debt		$ 18,682
Beneficial Conversion Features				$ 4,255
Carrying Value Of Convertible Debt				$ 0		$ 8,247
Conversion Price				$ 0.10
Conversion Of Common Stock Value				$ 35,322
Conversion Of Common Stock Shares Issued				353,215
Debt Instrument Interest Rate				12.00%

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INCOME TAXES (Details Narrative) - USD ($)	Dec. 31, 2021	Jun. 30, 2021
INCOME TAXES
Net Operating Loss Carry Forward	$ 1,709,060	$ 741,817

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SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member]	Jan. 01, 2022 USD ($) $ / shares shares
Proceeds From Share Issued | $	$ 65,000
Stock Issued | shares	100,000
Share Price | $ / shares	$ 0.65