UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

           |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                 For the quarterly period ended January 31, 2007

                                       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: 333-127170

                                NITAR TECH CORP.
             (Exact name of Registrant as specified in its charter)

           DELAWARE                                      98-0476582
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

                          2283 ARGENTIA SQUARE, UNIT #8
                      MISSISSAUGA, ONTARIO, CANADA, L5N 5Z2
          (Address of principal executive offices, including zip code)

                           (905) 824-5306 [ EXT. 201]
              (Registrant's telephone number, including area code)


Check 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 [X]           No [ ]

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


The number of shares of the Registrant's common stock issued and outstanding at
February 26, 2007, was 11,051,118.

Transitional Small Business Disclosure Format:   Yes [ ]   No [X]



<PAGE>





                                TABLE OF CONTENTS

                                                                            PAGE



                                     PART I
                              FINANCIAL INFORMATION

Item 1.    Condensed Financial Statements                                      3
Item 2.    Management's Discussion And Analysis Of
           Financial Condition And Results Of Operations                      17
Item 3.    Controls and Procedures                                            23

                                     PART II
                                OTHER INFORMATION

Item 1.    Legal Proceedings                                                  23
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds        23
Item 3.    Defaults Upon Senior Securities                                    23
Item 4.    Submission of Matters to a Vote of Security Holders                23
Item 5.    Other Information                                                  23
Item 6.    Exhibits and Reports on Form 8-K                                   23
           Signatures                                                         23
           Certificates                                                       24










<PAGE>


<TABLE>
<CAPTION>



                         NITAR TECH CORP. AND SUBSIDIARY
                      Consolidated Condensed Balance Sheets



                                                                         31-Jan-07      31-Jul-06
                                                                        -----------    -----------
                                                                        (unaudited)
                                     ASSETS

Current Assets
<S>                                                                     <C>            <C>
         Cash and Cash Equivalents                                      $       100    $       100
         Accounts Receivable - Net of Allowance for Doubtful Accounts         3,203          8,555
         Prepaid Expenses                                                       123            513
         Deferred Tax Asset                                                      --             --
                                                                        -----------    -----------
Total Current Assets                                                    $     3,426    $     9,168

         Property and Equipment - Net of Accumulated Depreciation            29,941         35,240
         Software Development Costs - Net of Accumulated Amortization       270,867        340,826
         Deferred Financing Costs                                           330,745        505,096
                                                                        -----------    -----------
Total Assets                                                            $   634,979    $   890,330
                                                                        ===========    ===========

                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
         Bank Overdraft                                                 $    33,625    $    41,197
         Accounts Payable & Accrued Liabilities                             107,758         95,797

                                                                        -----------    -----------
Total Current Liabilities                                               $   141,383    $   136,994

Other Liabilities
         Deferred Tax Liability                                         $        --    $        --
         Shareholder Advances                                                    --             --
                                                                        -----------    -----------
Total Liabilities                                                       $   141,383    $   136,994

Shareholders' Equity
         Common Stock, $0.001 par value 50,000,000 shares authorized
               - 11,051,118 shares issued and outstanding               $    11,051    $    11,051
         Additional Paid In Capital                                       1,083,491        927,989
         Retained Earnings                                                 (656,695)      (323,645)
         Accumulated Comprehensive Income                                    55,749        137,941
                                                                        -----------    -----------
Total Shareholders' Equity                                              $   493,596    $   753,336
                                                                        -----------    -----------
Total Liabilities and Shareholders' Equity                              $   634,979    $   890,330
                                                                        ===========    ===========
</TABLE>



                                      -3-
<PAGE>

<TABLE>
<CAPTION>



                         NITAR TECH CORP. AND SUBSIDIARY
                 Consolidated Condensed Statement of Operations

                                                             Three Months Ended January 31,
                                                                  2007            2006
                                                              ------------    ------------
                                                               (unaudited)
Net Revenues:
<S>                                                           <C>             <C>
          Consulting                                          $     25,704    $     39,097
          Software Licensing Fees                                    9,108          27,172
                                                              ------------    ------------
          Total Net Revenues                                  $     34,812    $     66,269

 Cost of Revenues and Operating Expenses:
          Cost of Revenues                                    $     46,406    $     41,816
          Sales and Marketing                                       21,900           9,770
          General and Administrative                                32,357          44,290
          Depreciation and Amortization                             29,820          27,931
                                                              ------------    ------------
          Total Cost of Revenues and Operating Expenses       $    130,483    $    123,807
                                                              ------------    ------------
 Operating (Loss) Income from Operations                      $    (95,671)   $    (57,538)

          Interest Expenses                                         79,367             618
                                                              ------------    ------------
 (Loss) Income Before Income Taxes                            $   (175,038)   $    (58,156)

          (Benefit From) Provision for Income Taxes                     --         (14,539)
                                                              ------------    ------------
 Net (Loss) Income                                            $   (175,038)   $    (43,617)
                                                              ============    ============

 Comprehensive Income
          Foreign Currency Translation Income                       23,727          24,183
                                                              ------------    ------------
 Total Comprehensive Income (Loss)                            $   (151,311)   $    (19,434)
                                                              ============    ============

 Net (Loss) Income Per Share - Basic and Diluted              $      (0.01)   $      (0.00)
                                                              ============    ============

 Weighted Average Shares Outstanding - Basic and Diluted        11,051,118      11,051,118
                                                              ============    ============
</TABLE>


                                      -4-
<PAGE>

<TABLE>
<CAPTION>


                         NITAR TECH CORP. AND SUBSIDIARY
                 Consolidated Condensed Statement of Operations

                                                            Six Months Ended January 31,
                                                               2007             2006
                                                           ------------    ------------
                                                           (unaudited)
Net Revenues:
<S>                                                       <C>             <C>
         Consulting                                       $     60,218    $    108,670
         Software Licensing Fees                                12,410          40,565
                                                          ------------    ------------
         Total Net Revenues                               $     72,628    $    149,235

Cost of Revenues and Operating Expenses:
         Cost of Revenues                                 $     94,010    $     87,990
         Sales and Marketing                                    22,219          35,131
         General and Administrative                             67,220          76,568
         Depreciation and Amortization                          61,413          55,413
                                                          ------------    ------------
         Total Cost of Revenues and Operating Expenses    $    244,862    $    255,102
                                                          ------------    ------------
Operating (Loss) Income from Operations                   $   (172,234)   $   (105,867)

         Interest Expenses                                     160,816           1,120
                                                          ------------    ------------
(Loss) Income Before Income Taxes                         $   (333,050)   $   (106,987)

         (Benefit From) Provision for Income Taxes                  --         (26,709)
                                                          ------------    ------------
Net (Loss) Income                                         $   (333,050)   $    (80,278)
                                                          ============    ============

Comprehensive Income
         Foreign Currency Translation Income                    12,534          62,320
                                                          ------------    ------------
Total Comprehensive Income (Loss)                         $   (320,516)   $    (17,958)
                                                          ============    ============

Net (Loss) Income Per Share - Basic and Diluted           $      (0.03)   $      (0.00)
                                                          ============    ============

Weighted Average Shares Outstanding - Basic and Diluted     11,051,118      11,051,118
                                                          ============    ============
</TABLE>


                                      -5-
<PAGE>

<TABLE>
<CAPTION>

                         NITAR TECH CORP. AND SUBSIDIARY
                 Consolidated Condensed Statement of Cash Flows

                                                         31-Jan-07    31-Jul-06
                                                         ---------    ---------
                                                         (unaudited)
 CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                      <C>          <C>
      Net Income (Loss)                                  $(333,050)   $(380,928)

      Non-Cash Adjustments
           Contributed Services by Shareholders             93,287       59,110
           Depreciation and Amortization Expense            61,413      246,287
           Bad Debt Expense                                     --        1,946

      Changes in Operating Assets and Liabilities
           Accounts Receivable                               5,352       (3,791)
           Prepaid Expenses                                    390        4,362
           Deferred Tax Asset                                   --        3,681
           Accounts Payable & Accrued Liabilities           11,961       67,573
           Deferred Tax Liability                               --      (36,880)
                                                         ---------    ---------
NET CASH FLOWS FROM OPERATING ACTIVITIES                 $(160,646)   $ (38,640)
                                                         ---------    ---------

                                                         ---------    ---------
NET CASH FROM INVESTING ACTIVITIES                       $      --    $      --
                                                         ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
      Bank Advances and Repayments                          (7,572)      41,197
      Repayment to Stockholders                                 --         (500)
                                                         ---------    ---------
NET CASH FLOWS FROM FINANCING ACTIVITIES                 $  (7,572)   $  40,697
                                                         ---------    ---------

 EFFECT OF EXCHANGE RATE CHANGES ON
      CASH AND CASH EQUIVALENTS                              9,598       (2,542)
                                                         ---------    ---------

NET CHANGE IN CASH AND CASH EQUIVALENTS                  $(158,621)   $    (485)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                 100          585
                                                         ---------    ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD                 $(158,521)   $     100
                                                         =========    =========

================================================================================

SUPPLEMENTAL DISCLOSURES
     Interest Paid                                       $ 160,816    $   2,851
     Income Taxes Paid                                          --           --
                                                         =========    =========

     NON-CASH INVESTING AND FINANCING ACTIVITIES:
     Contributed Services by Stockholders                $  93,287    $  59,110
     Contributed Assets by Stockholders                         --       33,379
                                                         =========    =========
</TABLE>



                                      -6-
<PAGE>


1.   INCORPORATION

     Nitar Tech. Corp., ("The Company") was formed on January 12, 2004, under
     the laws of the State of Delaware. On July 24, 2004, the Company acquired
     all of the outstanding shares of Labtech Systems Inc., (an Ontario Canada
     Corporation) in a reverse merger in exchange for approximately 67% of the
     outstanding stock of the Company. The Company had no operating activities
     prior to the reverse merger. Accordingly, Labtech Systems Inc. is
     considered the accounting acquirer under a reverse merger. The reverse
     merger transaction has been accounted for as a recapitalization of Labtech
     Systems Inc. Accordingly, the historical operations of Labtech Systems Inc.
     are presented in the accompanying financial statements as the historical
     operations of the Company for all periods presented. The shareholders of
     Labtech Systems Inc. received 7,030,000 of common shares of Nitar Tech.
     Corp. in connection with the reverse merger. These shares are considered as
     if they were issued prior to July 31, 2003.

     The Company's operations include the selling of computer software licensing
     agreements for their internet-based software products and computer software
     professional services consulting practice. The Company maintains its
     offices in Mississauga, Ontario, Canada.


2.   SIGNIFICANT ACCOUNTING POLICIES

     a.   PRINCIPLES OF CONSOLIDATION
          The consolidated financial statements include the accounts of Nitar
          Tech Corp. and its majority owned subsidiary. All significant
          intercompany balances and transactions have been eliminated in
          consolidation.

     b.   USE OF ESTIMATES
          The preparation of these financial statements in conformity with
          accounting principles generally accepted in the United States of
          America requires management to make estimates and assumptions that
          affect the reported amounts of assets and liabilities and disclosure
          of contingent assets and liabilities at the date of consolidated
          financial statements, and the reported amounts of revenues and
          expenses during the reporting period.

     c.   CASH AND CASH EQUIVALENTS
          Cash and cash equivalents include time deposits, certificates of
          deposit, and all highly liquid debt instruments with original
          maturities of three months or less.

     d.   ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS
          Accounts receivable are reported net of an allowance for doubtful
          accounts. The Company estimates the allowance based on its analysis of
          specific balances, taking into consideration the age of the past due
          account and anticipated collections resulting from legal issues. An
          account is considered past due after thirty (30) days from the invoice
          date. Based on these factors, there was an allowance for doubtful
          accounts of $0 and $0 at July 31, 2006 and 2005, respectively. Changes
          to the allowance for doubtful accounts are charged to expense and
          reduced by charge-offs, net of recoveries.

     e.   PROPERTY, EQUIPMENT, AND DEPRECIATION
          Property and Equipment are presented at original cost, less
          accumulated depreciation. Depreciation is computed using the declining
          balance at the following annual rates for the following applicable
          asset classes:

               o    Computer Hardware           - 30% declining balance

               o    Furniture and Equipment     - 20% declining balance

               o    Leasehold Improvements      - straight-line over three years



                                      -7-
<PAGE>


          The cost of significant improvements to property and equipment are
          capitalized. Maintenance and repairs are charged to expense as
          incurred. Upon sale or retirement of property and equipment, the cost
          and related depreciation are eliminated from the accounts and any
          resulting gain or loss is recognized.

     f.   SOFTWARE DEVELOPMENT COSTS
          The Company accounts for the costs of software to be marketed in
          compliance with Statement of Financial Accounting Standards No. 86,
          "Accounting for Costs of Computer Software to be Sold, Leased or
          Otherwise Marketed." Software development costs are expensed as
          incurred until technological feasibility of the product is
          established. Once technological feasibility is achieved, direct
          production costs (including labor directly associated with the
          development projects), indirect costs (including allocated fringe
          benefits, payroll taxes, facilities costs, and management
          supervision), and other direct costs (including costs of outside
          consultants, purchased software to be included in the software product
          being developed, travel expenses, material and supplies, and other
          direct costs) are capitalized until the product is available for
          general release to customers. The Company amortizes capitalized costs
          on a product-by-product basis. Amortization for each period is the
          greater of the amount computed using (i) the straight-line basis over
          the estimated product life (generally from 36 to 60 months), or (ii)
          the ratio of current revenues to total projected product revenues. The
          Company did not capitalize any software development costs for the
          quarters ending January 31, 2007 and 2006, respectively.

          SFAS No. 2, ACCOUNTING FOR RESEARCH AND DEVELOPMENT COSTS, established
          accounting and reporting standards for research and development. In
          accordance with SFAS No. 2, costs we incur to enhance our existing
          products after general release to the public (bug fixes) are expensed
          in the period they are incurred and included in research and
          development costs. Research and development costs incurred prior to
          determination of technological feasibility and marketability and after
          general release to the public and charged to expense were $0 for the
          six months ended January 31, 2007 and 2006.

          The Company currently has available for general release to customers
          two products. The first product developed by the Company was
          DyanmicHub, which was fully developed in 1998 and fully amortized by
          December 31, 2003. All of the Company's licensing fee revenue was from
          the selling of licenses for DyanmicHub. The second product developed
          by the Company was Choozemail, which was fully developed on August 1,
          2004 and available for general release to customers on their website.
          However, the Company has not actively pursued selling the product and
          is waiting on the commercial rollout of the product pending additional
          financing. As of January 31, 2007, the Company has not sold any
          licenses for Choozemail.

          The Company periodically reviews the carrying value of capitalized
          software development costs. Impairments are recognized in the results
          of operations when the expected future undiscounted operating cash
          flow derived from the capitalized software is less than its carrying
          value. No charges for impairment were required in the quarters ending
          January 31, 2007 and 2006, respectively.

     g.   DEFERRED FINANCING COSTS
          The Company amortizes deferred financing costs over the effective
          period of the financing. As of this January 31, 2007 the Company's
          effective period of financing has not started and the Company did not
          begin amortizing these capitalized fees.

     h.   INCOME TAXES
          The Company accounts for income taxes in accordance with SFAS No. 109,
          "Accounting for Income Taxes," using the asset and liability approach,
          which requires recognition of deferred tax liabilities and assets for
          the expected future tax consequences of temporary differences between
          the carrying amounts and the tax basis of such assets and liabilities.
          This method utilizes enacted statutory tax rates in effect for the
          year in which the temporary differences are expected to reverse and
          gives immediate effect to changes in income tax rates upon enactment.
          Deferred tax assets are recognized, net of any valuation allowance,
          for temporary differences and net operating loss and tax credit carry
          forwards. Deferred income tax expense represents the change in net
          deferred assets and liability balances.


                                      -8-
<PAGE>


     i.   REVENUE RECOGNITION
          Substantially all of the Company's revenues are derived from two
          primary sources: licensing of software and providing professional
          services. The Company's software is sold through licensing agreements
          that are on a month-to-month basis. The software licensing agreements
          have been accounted for under revenue recognition principles in
          accordance with the guidance provided by Staff Accounting Bulletin
          ("SAB") No. 104, "Revenue Recognition." In addition, the Company has
          applied the provisions of the Emerging Task Force ("EITF") No. 00-03,
          "Application of AICPA SOP No. 97-2 to Arrangements that Include the
          Right to Use Software Stored on Another Entity's Hardware," to the
          Company's software licensing agreements. The Company's licensing
          agreements with customers generally include a software license, which
          includes use of software and hosting services and professional
          services, as described below. The fees related to these
          multiple-element arrangements are allocated to the individual elements
          in accordance with EITF 00-21, "Revenue Arrangements with Multiple
          Deliverables," based upon verifiable, objective evidence of the fair
          values of each accounting unit. Professional services revenue consists
          of fees charged for product set-up and training and consulting
          services, which are determinable based upon vendor specific evidence
          of fair value. Professional service revenue is recognized as the
          professional services are delivered provided all other revenue
          recognition requirements are met.

     j.   ADVERTISING COSTS
          The Company expenses advertising costs as they are incurred.
          Advertising expenses for the six months ended January 31, 2007 and
          2006 were $22,219 and $35,131, respectively.

     k.   FINANCIAL INSTRUMENTS
          The Company's financial instruments consist of cash, accounts
          receivable, and accounts payable. It is management's opinion that the
          Company is not exposed to significant interest or credit risks arising
          from these financial instruments. The fair value of these financial
          instruments approximates their carrying value.

     l.   FOREIGN CURRENCY TRANSLATION
          The functional currency of the Company is the local currency where the
          Company operates. The financial statements of the Company have been
          translated into U.S. dollars in accordance with Statement of Financial
          Accounting Standards ("SFAS") No. 52, "Foreign Currency Translation."
          All balance sheet accounts have been translated using the exchange
          rates in effect at the balance sheet date. The income and cash flow
          statements amounts have been translated using the weighted average
          exchange rate for the year. Foreign currency cash flows are translated
          at the weighted average rate of exchange in effect during the period
          due to the minimal fluctuation in the currency exchange rates during
          the period. Management believes that substantially the same results
          would be derived if foreign cash flows were translated at the rates in
          effect at the time of the cash flows

          Accumulated net translation adjustments have been reported separately
          in Other Comprehensive Loss in the financial statements. Foreign
          currency translation adjustments resulted in income of $12,534 and
          $62,320 for the six months ending January 31, 2007 and 2006,
          respectively. Foreign currency transaction gains and (losses)
          resulting from exchange rate fluctuations on transactions denominated
          in a currency other than the functional currency totaled approximately
          $223 and ($68) in the six months ending January 31, 2007 and 2006,
          respectively, and are included in General and Administrative Expenses
          in the accompanying consolidated statement of operations.

     m.   EARNINGS PER SHARE
          Earnings per share of common stock are computed in accordance with
          SFAS No, 128, "Earnings per Share." Basic earnings per share are
          computed by dividing income or loss available to common shareholders
          by the weighted-average number of common shares outstanding for each
          period. Diluted earnings per share is the same as basic earnings per
          share since no common stock equivalents were outstanding for the
          quarters ending January 31, 2007 and 2006.


                                      -9-
<PAGE>


     n.   RECLASSIFICATIONS
          Certain amounts in the prior year financial statements have been
          reclassified to conform with the current year presentation.

     o.   RECENT ACCOUNTING PRONOUNCEMENTS

          o    In June 2005, the FASB EITF reached a consensus on EITF Issue No.
               05-6 "Determining the Amortization Period for Leasehold
               Improvements Purchased or Acquired after Lease Inception in a
               Business Combination." This EITF issue provides guidance on the
               amortization period for leasehold improvements acquired in a
               business combination and the amortization period of leasehold
               improvements that are placed in service significantly after and
               not contemplated at the beginning of the lease term. The guidance
               contained in EITF No. 05-6 was effective for periods beginning
               after June 29, 2005. The adoption of EITF No. 05-6 did not have a
               material effect on the Company's results of operations, cash
               flows, or financial condition.

          o    In May 2005, the FASB issued Statement of Financial Accounting
               Standards ("SFAS") No. 154, Accounting Changes and Error
               Corrections. SFAS No. 154 replaces APB No. 20, Accounting
               Changes, and SFAS No. 3, Reporting Accounting Changes in Interim
               Financial Statements, and establishes retrospective application
               as the required method for reporting a change in accounting
               principle. SFAS No. 154 provides guidance for determining whether
               retrospective application of a change in accounting principle is
               impracticable and for reporting a change when retrospective
               application is impracticable. The reporting of a correction of an
               error by restating previously issued financial statements is also
               addressed. SFAS No. 154 is effective for accounting changes and
               corrections of errors made in fiscal years beginning after
               December 15, 2005. The adoption of SFAS No. 154 will have a
               material effect on the Company's results of operations, cash
               flows, or financial condition.

          o    In December 2004, the FASB issued SFAS No. 153, "Exchanges of
               Non-monetary Assets - an amendment of APB Opinion No. 29". SFAS
               No. 153 eliminates the exception from fair value measurement for
               non-monetary exchanges of similar productive assets, and replaces
               it with an exception for exchanges that do not have commercial
               substance. SFAS No. 153 was effective for non-monetary asset
               exchanges occurring in fiscal periods beginning after June 15,
               2005. The adoption of SFAS No. 153 did not have a material effect
               on the Company's results of operations, cash flows, or financial
               condition.

          o    In December 2004, the FASB issued Staff Position No. 109-1,
               "Application of FASB Statement No. 109, Accounting for Income
               Taxes, to the Tax Deduction on Qualified Production Activities
               Provided by the American Jobs Creation Act of 2004." FSP 109-1
               clarifies that the manufacturer's deduction provided for under
               the American Jobs Creation Act of 2004 should be accounted for as
               a special deduction in accordance with SFAS No. 109 and not as a
               tax rate reduction. The adoption of FSP No. 109-1 did not have a
               material effect on the Company's results of operations, cash
               flows, or financial condition.

          o    In November 2004, the FASB issued SFAS No. 151, "Inventory Costs
               - an amendment of ARB No. 43, Chapter 4." SFAS No. 151 amends
               previous accounting guidance regarding allocation of fixed
               production costs to inventory and the recognition of overheads
               and other expenses. SFAS No. 151 was effective for fiscal years
               beginning after June 15, 2005. The adoption of SFAS No. 151 did
               not have a material effect on the Company's results of
               operations, cash flows, or financial condition.


                                      -10-
<PAGE>





3.   PROPERTY AND EQUIPMENT

     Property and equipment consisted of the following:

     -------------------------------------------- ------------- --------------
     January 31,                                         2007           2006
     -------------------------------------------- ------------- --------------

     Computer Hardware                                $24,637        $24,156
     Leasehold Improvements                             4,017              -
     Furniture & Fixtures                              32,820          6,258
     -------------------------------------------- ------------- --------------
                                                      $64,237        $27,744
     Less:  Accumulated Depreciation                   34,296         22,915
     -------------------------------------------- ------------- --------------

     Net Property and Equipment                      $ 29,941        $ 4,829
     -------------------------------------------- ------------- --------------

     Depreciation expense for the six months ended January 31, 2007 and 2006 was
     $4,761 and $675, respectively.


4.   SOFTWARE DEVELOPMENT COSTS

     Software development costs incurred during the six months ended January 31,
     2007 and 2006 were as follows:

     --------------------------------------------- ------------- ---------------
     January 31,                                          2007            2006

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

     Gross Software Development Costs                $ 545,200       $ 561,526
     Less: Accumulated Amortization                    274,333         168,451
     --------------------------------------------- ------------- ---------------

     Net Software Development Costs                  $ 270,867       $ 393,075
     --------------------------------------------- ------------- ---------------


     The Company recorded amortization of capitalized software development costs
     of $56,652 and $54,738 for the six months ended January 31, 2007 and 2006,
     respectively. Estimated aggregate minimum amortization expenses for each of
     the next five years are as follows:


     ------------------- ----------- ----------- ---------- ---------- ---------
     Six Months Ending:     2008        2009       2010       2011        2012
     January 31,
     ------------------- ----------- ----------- ---------- ---------- ---------

                          $104,809    $104,809    $  --      $ --       $  --
     ------------------- ----------- ----------- ---------- ---------- ---------


5.   DEFERRED FINANCING COSTS

     No additional deferred financing costs were incurred during the six months
     ended January 31, 2007.


     ------------------------------------------ -------------- --------------
     Six Months Ending: January 31,                     2007           2006

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

     Deferred Financing Costs                      $ 610,606      $ 628,902
     Less: Accumulated Amortization                  276,861              -
     ------------------------------------------ -------------- --------------

     Net Deferred Financing Costs                  $ 330,745      $ 628,902
     ------------------------------------------ -------------- --------------


                                      -11-
<PAGE>



     The Company recorded amortization of capitalized deferred financing costs
     of $158,621 and $0 for the six months ended January 31, 2007 and 2006,
     respectively. Estimated aggregate minimum amortization expenses for each of
     the next five years are as follows:


     -------------------- ----------- ---------- --------- ---------- ---------
      Ending: January 31,      2008       2009     2010        2011      2012
     -------------------- ----------- ---------- --------- ---------- ---------

                           $159,366     $   --    $  --        $  --     $  --

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



6.   BANK OVERDRAFT

     In connection with the Company's checking account, the Company has a bank
     overdraft protection loan available up to approximately $42,283 at January
     31, 2007. The bank overdraft balance was $33,525 and $14,447 at January 31,
     2007 and 2006, respectively. The interest rate on the bank overdraft
     protection loan is the Canadian prime rate plus 0.25%, which was 6.25% and
     4.50% at January 31, 2007 and 2006, respectively. Interest expense for the
     quarters ended six months ended January 31, 2007 and 2006 was $2,195 and
     $1,120, respectively. The bank overdraft protection loan is personally
     guaranteed by two principal shareholders of the Company.


7.   RELATED PARTY TRANSACTIONS

     During the six months ended January 31, 2007 and 2006, principal
     stockholders of the Company contributed their services to the Company. The
     Company imputed the value of their contributed services at market rates in
     the amounts of $9,028 and $8,600, respectively. The contributed services
     were expensed with general and administrative expenses and an addition to
     Additional-Paid-In-Capital. In addition, the Company rented office space
     from a principal stockholder on a month-to-month basis for $0 and $4,016
     during the six months ended January 31, 2007 and 2006.

     Advances from Stockholders' are advances and payments from principal
     stockholders of the Company. The notes are unsecured and contain no formal
     repayment terms; however interest amounting to $0 and $0 at January 31,
     2007 and 2006, respectively, has been imputed in the accompanying
     consolidated financial statements. There were no outstanding advances from
     Shareholders' as at January 31, 2007 and 2006, respectively.

     The Company engages the consulting services of Kanak Consulting and Next
     Technology. Principle stockholders of the Company are principle
     stockholders of Kanak Consulting and Next Technology. The related parties
     charge market rates to the Company, and in return, earn consulting fees for
     the Company inclusive of professional consulting and software development.
     The total amounts invoiced to the Company by Kanak Consulting and Next
     Technologies for the six months ending January 31, 2007 and 2006,
     respectively, are as follows:



     -------------------------------------- ----------------- ------------------
     January 31,                                       2007               2006
     -------------------------------------- ----------------- ------------------

     Consulting Fees:
              Kanak Consulting                      $                $  37,294
                                                38,975
              Next Technology                        38,975             36,501
     -------------------------------------- ----------------- ------------------
                                                          $          $  73,795
     Total Related Party Fees                        77,950
     -------------------------------------- ----------------- ------------------



                                      -12-
<PAGE>


8.   INCOME TAXES

     The consolidated provision for income taxes for the six months ending
     January 31, 2007 and 2006, respectively, consists of the following:

     -------------------------------------------- ------------ -------------
     Six Months Ended: January 31,                      2007          2006
     -------------------------------------------- ------------ -------------

     Current Tax Expense
              United States Tax Expense              $    --       $    --
              Canadian Tax Expense                        --            --
     -------------------------------------------- ------------ -------------
     -------------------------------------------- ------------ -------------

     Deferred Tax Benefit
              United States Tax Expense              $    --       $    --
              Canadian Tax Benefit                        --            --
     -------------------------------------------- ------------ -------------
     -------------------------------------------- ------------ -------------
                                                     $    --       $    --
     Income Tax Benefit
     -------------------------------------------- ------------ -------------

     The provision for income taxes differs from that computed by applying the
     Canadian federal statutory rates to income before income tax expense, as
     indicated in the following analysis:

     -------------------------------------------- -------------- --------------
     Six Months Ended: January 31,                        2007           2006
     -------------------------------------------- -------------- --------------

     Canadian Statutory Income Taxes at
              36% and 37%, respectively                      $         $   --
                                                            --
     Application of the Canadian
     Small Business Deduction Credit                        --             --
     -------------------------------------------- -------------- --------------
     -------------------------------------------- -------------- --------------
                                                       $    --         $   --
     Income Tax Benefit
     -------------------------------------------- -------------- --------------

     A cumulative net deferred tax liability is included on the balance sheet.
     The components of the deferred tax liability at January 31, 2007 and 2006,
     respectively, are as follows:

     --------------------------------------------------- ------------ ----------
     Six Months Ended: January 31,                           2007         2006
     --------------------------------------------------- ------------ ----------

     Current Deferred Tax Assets Consisted of:
              Net Operating Loss - Carryforwards          $ 132,561    $  3,681
              Deferred Tax Valuation Allowance                   --           --
     --------------------------------------------------- ------------ ----------
     --------------------------------------------------- ------------ ----------

     Total Current Deferred Tax Assets                    $ 132,561   $ (12,298)

     Current Deferred Tax Liabilities Consisted of:
                Difference in Amortization Methods of
                   Software Development Costs                    --           --
     --------------------------------------------------- ------------ ----------
     --------------------------------------------------- ------------ ----------

     Net Current Deferred Tax Asset                      $  132,561     $(8,617)
     --------------------------------------------------- ------------ ----------

     The noncurrent component of deferred income tax liability recognized in the
     balance sheets represents the difference in amortization methods of
     software development costs. Deferred liability income tax was $0 and
     ($26,709) at January 31, 2007 and 2006, respectively.

     The Company has $132,561 of net operating loss carryforwards available as
     of January 31, 2007. The carryforwards expire in varying amounts in 2009
     through 2016.


                                      -13-
<PAGE>



9.   STANDBY EQUITY DISTRIBUTION AGREEMENT

     In July 2005, the Company entered into a Standby Equity Distribution
     Agreement with Cornell Capital Partners, L.P. Under the Standby Equity
     Distribution Agreement ("SEDA"), the Company can require Cornell Capital
     Partners, L.P., through its general partner, Yorkville Advisors, LLC, to
     purchase up to $35,000,000 of its common stock over a two-year period.
     These funds can be drawn at the company's discretion based upon funding
     requirements, subject to an effective registration of the Company's shares
     with the SEC. The SEDA establishes what is sometimes termed an "equity line
     of credit" or an "equity draw-down facility." The $35,000,000 facility may
     be drawn-down upon by the Company in installments, the maximum amount of
     each of which is limited to $500,000 and is limited to $2,000,000 per
     month. For each share of common stock purchased under the SEDA, Cornell
     Capital Partners, L.P. will pay 98% of the lowest volume weighted average
     price ("VWAP") of the Company's shares during the five trading days
     following the Company's draw-down notice to Cornell Capital Partners, L.P.
     The VWAP that will be used in the calculation will be that reported by
     Bloomberg, LLC, a third-party reporting service. In general, the VWAP
     represents the sum of the value of all the sales of the Company's common
     stock for a given day (the total shares sold in each trade times the sales
     price per share of the common stock for that trade), divided by the total
     number of shares sold on that day.


     The Company is not obligated to draw down on the SEDA facility, but
     subsequent to the registration of the Company's common stock to be issued
     under the SEDA, and upon the satisfaction by the Company of normal
     conditions for this type of transaction, the Company has the right to
     require Cornell Capital Partners, L.P. to purchase its common shares under
     the SEDA, subject to the beneficial ownership limitations described
     elsewhere in this note. The registration statement for the shares issuable
     under the SEDA remains pending with the SEC. The Company cannot predict
     when, if ever, such registration statement will be declared effective.


     In connection with the EDA, the Company issued to Cornell Capital Partners,
     L.P. 268,182 shares of its common stock and paid a due diligence fee of
     $2,500. The Company is also committed to pay Cornell Capital Partners, L.P.
     an amount equal to 5% of each purchase of its common stock made by Cornell
     Capital Partners, L.P. under the SEDA. This additional fee has the effect
     of a lower purchase price paid by Cornell Capital Partners, L.P. for the
     Company's stock. The Company also paid Yorkville Advisors Management, LLC,
     the investment manager for Cornell Capital Partners, L.P., for legal
     expenses fee of $15,000, and on each sale under the SEDA, the Company will
     pay an additional structuring fee of $500 to Yorkville Advisors Management,
     LLC. Upon completion of the SEDA agreement, the Company issued to Cornell
     Capital Partners, L.P. shares of the Company's common stock in an amount
     equal to $590,000 divided by the closing bid price of the Company's common
     stock as quoted by Bloomberg, L.P. five days immediately following notice
     date. The Company valued the common shares issued to Cornell Capital
     Partners, L.P. at the fair market value on the dates of grant, or $2.19 per
     share. The commitment fee was deemed a deferred debt offering cost and is
     being amortized as a financing expense over the effective period of 24
     months. As of this date the Company's registration was not yet declared
     effective and the Company did not begin amortizing the commitment fee.


     During the term of the SEDA, the Company's officers and directors have
     agreed not to sell any of their shares of the Company's common stock,
     except to the extent permitted under Rule 144. The number of shares of the
     Company's common stock issuable to Cornell Capital Partners, L.P. under the
     Standby Equity Distribution Agreement is subject to a 9.9% cap on the
     beneficial ownership that Cornell Capital Partners, L.P. and its affiliates
     may have at the time of each installment (beneficial ownership is to be
     calculated in accordance with Section 13(d) of the Exchange Act).


     During the two years in which the Company can access the SEDA, without
     Cornell Capital Partners, L.P.'s consent, the Company cannot:

     1.   Issue or sell shares of its common or preferred stock, or any warrant
          option or right to acquire shares of its common stock, without
          consideration or for a per share consideration less than the bid price
          for our shares on the date of issuance, or


                                      -14-
<PAGE>


     2.   File a registration statement on Form S-8 except to register up to
          20,000,000 shares of its common stock to be issued under a stock
          incentive plan to our non-executive employees, provided that such
          shares are not issued without consideration or for a consideration
          less than the closing bid price of its common stock on the day of
          issuance, and that the registration statement is not filed prior to 90
          days after May 31, 2005.


10.  BUSINESS SEGMENTS AND OTHER REVENUE INFORMATION

     The Company operated in two principal business segments. The Company's
     reportable business segments are the selling of computer software licensing
     agreements for their internet-based software products and computer software
     professional services consulting practice. In addition, the Company reports
     certain administrative activities under the corporate segment. The
     accounting policies of the reportable business segments are the same as
     those described in Note 2: Significant Accounting Policies. The Company
     evaluates segment performance based on net income (loss). The Company's
     revenues were from external customers; no transactions between segments
     were recorded in the amounts shown in the following schedule.
<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------
FOR THREE MONTHS ENDING           SOFTWARE                                      TOTAL
JANUARY 31, 2007               LICENSING FEES   CONSULTING     CORPORATE     CONSOLIDATED
-----------------------------------------------------------------------------------------
<S>                             <C>            <C>            <C>            <C>
Revenues                        $     9,108    $    25,704    $        --    $    34,812
Cost of Revenues                    (31,092)       (15,314)            --        (46,406)
Sales and Marketing                 (21,900)            --             --        (21,900)
General and Administrative           (1,618)        (4,854)       (25,886)       (32,357)
Depreciation and Amortization       (27,919)            --         (1,901)       (29,820)
Interest Expense                         --             --        (79,367)       (79,367)
(Benefit From)Provision for              --             --             --             --
  Income Taxes
-----------------------------------------------------------------------------------------
NET INCOME (LOSS)               $   (73,421)   $     5,536    $  (107,154)   $  (175,038)
-----------------------------------------------------------------------------------------

CAPITAL EXPENDITURES                     --             --             --             --
-----------------------------------------------------------------------------------------
TOTAL ASSETS                    $   270,867    $        --    $   364,012    $   634,879
-----------------------------------------------------------------------------------------



-----------------------------------------------------------------------------------------
FOR THREE MONTHS ENDING                                        SOFTWARE         TOTAL
JANUARY 31, 2006                LICENSING FEES  CONSULTING     CORPORATE     CONSOLIDATED
-----------------------------------------------------------------------------------------
Revenues                        $    27,172    $    39,097    $        --    $    66,269
Cost of Revenues                    (28,017)       (13,799)            --        (41,816)
Sales and Marketing                  (9,770)            --             --         (9,770)
General and Administrative           (6,644)        (7,751)       (29,896)       (44,290)
Depreciation and Amortization       (27,603)            --           (328)       (27,931)
Interest Expense                         --             --           (618)          (618)
(Benefit From) Provision for         11,215         (4,387)         7,710         14,539
  Income Taxes
-----------------------------------------------------------------------------------------
NET INCOME (LOSS)               $   (33,646)   $    13,160    $   (23,131)   $   (43,617)
-----------------------------------------------------------------------------------------

CAPITAL EXPENDITURES                     --             --             --             --
-----------------------------------------------------------------------------------------
TOTAL ASSETS                    $   393,075    $        --    $   648,939    $ 1,042,014
-----------------------------------------------------------------------------------------
</TABLE>


     Revenues from three customers were $29,994 or 85% of the Company's total
     revenues for the three months ending January 31, 2007. Revenues from three
     customers during the three months ending January 31, 2006 were
     approximately $52,051 or 80%.

     All of the Company's revenues were from Canada and the United States.
     Revenues from Canada and the United States for the three months ending
     January 31, 2007 were $10,890 and $24,430, respectively. For the three
     months ending January 31, 2006, revenues from Canada and the United States
     were $25,283 and $40,424, respectively. Revenues are attributed to
     countries based on the location of the customers.


                                      -15-
<PAGE>

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------
FOR SIX MONTHS ENDING                                          SOFTWARE         TOTAL
JANUARY 31, 2007                LICENSING FEES  CONSULTING     CORPORATE     CONSOLIDATED
-----------------------------------------------------------------------------------------
<S>                             <C>            <C>            <C>            <C>
Revenues                        $    12,410    $    60,218    $        --    $    72,628
Cost of Revenues                    (62,987)       (31,023)            --        (94,010)
Sales and Marketing                 (22,219)            --             --        (22,219)
General and Administrative           (3,361)       (10,083)       (53,776)       (67,220)
Depreciation and Amortization       (56,652)            --         (4,761)       (61,413)
Interest Expense                         --             --       (160,816)      (160,816)
(Benefit From) Provision for             --             --             --             --
  Income Taxes
-----------------------------------------------------------------------------------------
NET INCOME (LOSS)               $  (132,809)   $    19,112    $  (219,353)   $  (333,050)
-----------------------------------------------------------------------------------------

CAPITAL EXPENDITURES                     --             --             --             --
-----------------------------------------------------------------------------------------
TOTAL ASSETS                    $   270,867    $        --    $   364,012    $   634,879
-----------------------------------------------------------------------------------------




-----------------------------------------------------------------------------------------
FOR SIX MONTHS ENDING                                            SOFTWARE       TOTAL
JANUARY 31, 2006                LICENSING FEES  CONSULTING      CORPORATE    CONSOLIDATED
-----------------------------------------------------------------------------------------
Revenues                        $    40,565    $   108,670    $        --    $   149,235
Cost of Revenues                    (58,953)       (29,037)            --        (87,990)
Sales and Marketing                 (35,131)            --             --        (35,131)
General and Administrative          (11,485)       (13,399)       (51,683)       (76,568)
Depreciation and Amortization       (54,738)            --           (795)       (55,533)
Interest Expense                         --             --         (1,120)        (1,120)
(Benefit From) Provision for         29,860        (16,397)        13,366         26,829
  Income Taxes
-----------------------------------------------------------------------------------------
NET INCOME (LOSS)               $   (89,883)   $    49,837    $   (40,233)   $   (80,278)
-----------------------------------------------------------------------------------------

CAPITAL EXPENDITURES                     --             --             --             --
-----------------------------------------------------------------------------------------
TOTAL ASSETS                    $   393,075    $        --    $   648,939    $ 1,042,014
-----------------------------------------------------------------------------------------
</TABLE>



     Revenues from two customers were $52,757 or 74% of the Company's total
     revenues for the six months ending January 31, 2007. Revenues from two
     customers during the six months ending January 31, 2006 were approximately
     $119,234 or 79%.

     All of the Company's revenues were from Canada and the United States.
     Revenues from Canada and the United States for the six months ending
     January 31, 2007 were $16,464 and $55,120, respectively. For the six months
     ending January 31, 2006, revenues from Canada and the United States were
     $38,046 and $112,466, respectively. Revenues are attributed to countries
     based on the location of the customers. All long-lived assets of the
     Company are located within Canada.

11.  SUBSEQUENT EVENTS

     LEASES - During March 2006, the Company entered into a five-year building
     lease with an unrelated entity, with monthly rent of $1,815. The lease
     includes annual increases for each of the remaining four years of the
     primary lease term of 3%, commencing on the annual renewal date of March
     1st. Future minimum lease payments for the five years succeeding June 30,
     2005 are as follows:

            2007        2008       2009         2010        2011        TOTAL
     -------------------------------------------------------------------------
         $22,475     $23,226    $23,977      $24,728      $2,066      $96,472
     =========================================================================

     This rental agreement contributed to rental expense for the six month
     period ended January 31, 2006 in the amount of $8,393. There was no rental
     expense in the three months ended January 31, 2006 related to this
     agreement.


                                      -16-
<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

FORWARD-LOOKING STATEMENTS

To the extent that the information presented in this Quarterly Report on Form
10-QSB for the quarter ended January 31, 2007, discusses financial projections,
information or expectations about our products or markets, or otherwise makes
statements about future events, such statements are forward-looking. We are
making these forward-looking statements in reliance on the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Although we
believe that the expectations reflected in these forward-looking statements are
based on reasonable assumptions, there are a number of risks and uncertainties
that could cause actual results to differ materially from such forward-looking
statements. These risks and uncertainties are described, among other places in
this Quarterly Report, in this "Management's Discussion And Analysis Of
Financial Condition And Results Of Operations." In addition, we disclaim any
obligations to update any forward-looking statements to reflect events or
circumstances after the date of this Quarterly Report. When considering such
forward-looking statements, you should keep in mind the risks referenced above
and the other cautionary statements in this Quarterly Report.

RESULTS OF OPERATIONS

THREE MONTH PERIOD ENDED JANUARY 31, 2007 COMPARED TO THE SAME PERIOD
ENDED JANUARY 31, 2006

REVENUES During the three months ended January 31, 2007 the Company generated $
34,812 in revenue from the sale of consulting and software licensing fees versus
$66,269 in revenue from consulting and software licensing fees in the same three
month period ended January 31, 2006. From a revenue source perspective, the
majority of this revenue was consulting related, $25,704 or 73.8% of total
revenues, while DynamicHub related revenue was $9,108 or 27.2% of total
revenues. In the three months ended January 31, 2006, $39,097, or 59.0% of
revenue was generated from consulting work and DynamicHub revenues were $27,172
or 41.0% of total revenues. In both current and prior year periods there were no
licensing fees generated by the choozmail(C) product line. Revenues for
choozmail are anticipated to commence shortly after investor financing has been
secured, currently anticipated being either 3RD or 4TH quarter of fiscal 2007.

During the 2ND quarter of fiscal 2007, the revenue decrease over the prior year
was a direct result of reduction in consulting opportunities. This decrease was
directly related to one US based customer that contributed $22,619 in the three
month period ended January 31, 2007. Revenue generated with the same customer
during the three months ended January 31, 2006, amounted to $38,766, which is
the main reason for the revenue discrepancy. Additional growth from consulting
can be achieved before additional personnel will be required. The main reason
for the enhanced focus is to generate as much cash flow as possible in order to
maintain minimal break-even cash flow, in order to continue operations until
such time as the Company can successfully complete investment financing, which
will allow it to execute the full marketing and promotion necessary to
materially grow the DynamicHub and choozmail(C) product lines. The Company is
working hard to continue to mine new consulting opportunities in order to
generate organic cash flow on a quick and consistent basis.


                                      -17-
<PAGE>


COST OF REVENUES Cost of revenues for the three month period ended January 31,
2007 was $46,406, which consisted primarily of fees paid to consultants of
$38,975. In the period ended January 31, 2006, cost of revenues was $41,816 and
consisted of the same cost elements. The principal cost of revenue item in the
first quarter of fiscal 2006 consisted of fees paid to consulting services staff
of $37,614. The primary drivers for the overall increase in cost of revenues for
the three months ended January 31, 2007, versus the three months ended January
31, 2006, were due to increased consulting fees of $ 1,361 as well as due to
increased internet service provider costs of $3,698, related to one-time set-up
charges and enhanced service requirements to expansion of the development centre
located off-site at the service provider site. The reason for the increase in
consulting fees for the three months ended January 31, 2007, was due to an
increase in rates for the consultants in the current quarter versus the rates
paid for the three months ended January 31, 2006. The overall cost of sales for
the quarter ended January 31, 2007, is expected to remain relatively stable for
the balance of the year, or unless the Company can generate investment funding
which would materially affect and significantly increase due to the investment
at that time in both development centre and production facility to handle the
license sales transactions.

SALES AND MARKETING Total sales and marketing expenses for the three months
ended January 31, 2007 were $21,900 versus $9,770 in the three months ended
January 31, 2006. The major reason for the increase was due to primarily to
increased frequency in airfares for travel to the United States and South
America relating to advertising and promotional costs for the choozmail product
line in order to meet with clients and promote the product lines, as occurred in
the three months ended January 31, 2006.

GENERAL AND ADMINISTRATIVE In the three months ended January 31, 2007, general
and administrative expenses were $32,357 versus $44,290 for the three month
period ended January 31, 2006. Overall the total expenses were comparable to the
prior quarter with the main expenditures related to professional fees and office
related facility costs. Professional fees were incurred for financing
initiatives and SEC registrations and filings. Also a bad debt reserve of $5,138
was charged to expense in the quarter ended January 31, 2006, in connection to a
receivership with one of the Company's clients that has since gone into
receivership. Other increased expense drivers in the prior year's quarter was
also one-time set-up fees for new office telephone system and purchase and
programming of security for the Company's head office.

DEPRECIATION AND AMORTIZATION Our depreciation and amortization for the three
months ended January 31, 2007 versus the three months ended January 31, 2006
increased from $27,931 to $29,820. The three months ended January 31, 2007
included amortization of leasehold improvements related to the Company's move to
new commercial space facilities in March 2006.

OTHER INCOME/EXPENSES In the quarter ended January 31, 2007, the Company
expensed $79,367 in interest expense which was significantly higher than the
$618 expensed in the quarter ended January 31, 2006. In the three months ended
January 31, 2007, the continuation of the initiation of amortization of deferred
financing costs that occurred during the first quarter of the fiscal year,
commenced as the Company successfully registered with the SEC and NASD. This
registration initialized amortization of the deferred financing costs on a
two-year straight-line basis, and included $78,170 in the current quarter
accounting for the significant and material variance versus the three month
period ended January 31, 2006.

INCOME TAXES During the three month period ended January 31, 2007, there was no
recorded benefit or liability from income taxes of as compared to the three
months ended January 31, 2006 where we incurred a benefit for income taxes of
$14,539. This change was the result of the increase in the operating losses
generated during the current quarter versus the taxable income generated for the
three months ended January 31, 2006. The difference between amortization methods
of software development costs and deferred financing costs between tax and book
also contributed to the variance.

NET LOSS The Company recorded a net loss for the three months ended January 31,
2007 of $175,038 versus a net loss of $43,617 for the same period in the
previous year.

LIQUIDITY AND CAPITAL RESOURCES

At January 31, 2007, the Company's need for cash included satisfying $141,283 of
current liabilities, which consisted of accounts payable and accrued liabilities
of $107,758 and bank indebtedness in the form of a bank overdraft of $33,525. At
January 31, 2007, the Company had a working capital deficiency of $137,957. The
Company did have available to it additional bank overdraft access of
approximately $8,750.

Our ability to continue as a going concern is dependent on the Company's ability
to raise additional funding from expansion of our bank facility, an equity
injection, and increased sales revenue. At January 31, 2007, the Company had a
cash overdraft of $42,500. In addition, certain shareholders have also supported
the Company by foregoing salaries and expense reimbursement from time-to-time or
converting shareholders loans to equity. While there is no legal commitment for
them to do so, the Company believes that certain shareholders will continue to
support the Company in a similar manner.

The Company anticipates that its cash needs over the next 12 months will be met
by primarily from a combination of profits, available bank overdraft, and
investment funding.

If the Company is unable to obtain additional funding sources of debt and equity
capital, then the failure to obtain this funding will have a material adverse
effect on the Company's business and this may force the Company to reorganize,
or to reduce the cost of all operations to a lower level of expenditure which
may have the effect of reducing the Company's expected revenues and net income
during the current fiscal year.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.


                                      -18-
<PAGE>


RESULTS OF OPERATIONS

SIX MONTH PERIOD ENDED JANUARY 31, 2007 COMPARED TO THE SAME PERIOD ENDED
JANUARY 31, 2006

REVENUES

During the six months ended January 31, 2007 the Company generated $71,584 in
revenue from the sale of consulting and software licensing fees versus $150,212
in revenue from consulting and software licensing fees in the same three month
period ended January 31, 2006. From a revenue source perspective, the majority
of this revenue was consulting related, $60,218 or 82.9% of total revenues,
while DynamicHub related revenue was $12,410 or 17.1% of total revenues. In the
six months ended January 31, 2006, $108,670, or 72.8% of revenue was generated
from consulting work and DynamicHub revenues were $40,565 or 27.2% of total
revenues. In both current and prior year periods there were no licensing fees
generated by the choozmail(C) product line. Revenues for choozmail are
anticipated to commence shortly after investor financing has been secured,
currently anticipated to be during the 3RD or 4TH quarter of the current fiscal
year.

During the six months of fiscal 2007, the revenue decrease over the prior year
was a direct result of reduction in consulting opportunities. This decrease was
directly related to one US based customer that contributed $109,600 in the six
month period ended January 31, 2006. Revenue generated with the same customer
during the six months ended January 31, 2007, amounted to $0, which is the main
reason for the revenue discrepancy. This loss of revenue has been partially
offset by revenue generated by a new US based customer who has contributed
$30,465 so far in the current fiscal year. Additional growth from consulting can
be achieved before additional personnel will be required. The main reason for
the enhanced focus is to generate as much cash flow as possible in order to
maintain minimal break-even cash flow, in order to continue operations until
such time as the Company can successfully complete investment financing, which
will allow it to execute the full marketing and promotion necessary to
materially grow the DynamicHub and choozmail(C) product lines.

COST OF REVENUES

Cost of revenues for the six month period ended January 31, 2007 was $94,010,
which consisted primarily of fees paid to consultants of $79,086. In the period
ended January 31, 2006, cost of revenues was $87,990 and consisted of the same
cost elements. The principal cost of revenue item in the first six months of
fiscal 2006 consisted of fees paid to consulting services staff of $75,493. The
primary drivers for the overall increase in cost of revenues for the six months
ended January 31, 2007, versus the six months ended January 31, 2006, were due
to increased consulting fees of $3,593 and increased internet service provider
costs of $2,991, related to one-time set-up charges and expanded services at the
development off-site data centre where the Company houses its computers. The
reason for the increase in consulting fees for the six months ended January 31,
2007, was due to an increase in rates for the consultants in the current year
versus the rates paid for during the six months ended January 31, 2005. The
overall cost of sales for the six months ended January 31, 2007, is expected to
remain relatively stable for the balance of the year, or unless the Company can
generate investment funding which would materially affect and significantly
increase due to the investment at that time in both development centre and
production facility to handle the license sales transactions.

SALES AND MARKETING

Total sales and marketing expenses for the six months ended January 31, 2007
were $22,219 versus $35,131 in the six months ended January 31, 2006. The major
reason for the decrease was due to primarily to reduction in airfares for travel
to the United States and South America relating to advertising and promotional
costs for the choozmail product line in order to meet with clients and promote
the product lines, as occurred in the three months ended January 31, 2006. The
previous year also reflected significant promotional investment in trade shows
and sponsorships which have not been entered into during the first six months of
the current year.


                                      -19-
<PAGE>


GENERAL AND ADMINISTRATIVE

In the six months ended January 31, 2007, general and administrative expenses
were $67,220 versus $76,568 for the six month period ended January 31, 2006.
Overall the total expenses were comparable to the prior quarter with the main
expenditures related to professional fees and office related facility costs
slightly less in the current period versus the same period a year ago.
Professional fees continue to be incurred for financing initiatives and SEC
registrations and filings.

DEPRECIATION AND AMORTIZATION

Our depreciation and amortization for the six months ended January 31, 2007
versus the six months ended January 31, 2006 increased from $55,413 to $65,264.
The six months ended January 31, 2007 included amortization of leasehold
improvements related to the Company's move to new commercial space facilities in
March 2006, that were not incurred in the same period a year ago.

OTHER INCOME/EXPENSES

In the six months ended January 31, 2007, the Company expensed $160,816 in
interest expense which was significantly higher than the $1,120 expensed in the
six months ended January 31, 2006. In the six months ended January 31, 2007, the
initiation of amortization of deferred financing costs commenced as the Company
successfully registered with the SEC and NASD. This registration initialized
amortization of the deferred financing costs on a two-year straight-line basis,
and included $ 158,621 in the current six month period accounting for the
significant and material variance versus the six month period ended January 31,
2006.

INCOME TAXES

During the six month period ended January 31, 2007, there was no recorded
benefit or liability from income taxes of as compared to the six months ended
January 31, 2006 where we incurred a benefit for income taxes of $26,709. This
change was the result of the increase in the operating losses generated during
the current six month period versus the taxable income generated for the six
months ended January 31, 2006. The difference between amortization methods of
software development costs and deferred financing costs between tax and book
also contributed to the variance.

NET LOSS

The Company recorded a net loss for the six months ended January 31, 2007 of
$333,050 versus a net loss of $80,278 for the same period in the previous year.

LIQUIDITY AND CAPITAL RESOURCES

At January 31, 2007, the Company's need for cash included satisfying $141,283 of
current liabilities, which consisted of accounts payable and accrued liabilities
of $107,758 and bank indebtedness in the form of a bank overdraft of $33,525. At
January 31, 2007, the Company had a working capital deficiency of $137,957. The
Company did have available to it additional bank overdraft access of
approximately $8,750.


                                      -20-
<PAGE>


Our ability to continue as a going concern is dependent on the Company's ability
to raise additional funding from expansion of our bank facility, an equity
injection, and increased sales revenue. At January 31, 2007, the Company had a
cash overdraft of $42,500. In addition, certain shareholders have also supported
the Company by foregoing salaries and expense reimbursement from time-to-time or
converting shareholders loans to equity. While there is no legal commitment for
them to do so, the Company believes that certain shareholders will continue to
support the Company in a similar manner.

The Company anticipates that its cash needs over the next 12 months will be met
by primarily from a combination of profits, available bank overdraft, and
investment funding.

If the Company is unable to obtain additional funding sources of debt and equity
capital, then the failure to obtain this funding will have a material adverse
effect on the Company's business and this may force the Company to reorganize,
or to reduce the cost of all operations to a lower level of expenditure which
may have the effect of reducing the Company's expected revenues and net income
during the current fiscal year.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

ITEM 3. CONTROLS AND PROCEDURES


     (a)  Evaluation of Disclosure Controls and Procedures. Our Chief Executive
          Officer and Chief Financial Officer evaluated the effectiveness of our
          disclosure controls and procedures (as defined in Rule 13a-14(c) under
          the Securities Exchange Act of 1934) as of the end of the period ended
          January 31, 2007. Based on this evaluation, our Chief Executive
          Officer and Chief Financial Officer have concluded that our controls
          and procedures are effective in providing reasonable assurance that
          the information required to be disclosed in this report is accurate
          and complete and has been recorded, processed, summarized and reported
          within the time period required for the filing of this report.

     (b)  Changes in internal controls. There was no change in our internal
          controls or in other factors that could affect these controls during
          our last fiscal quarter that has materially affected, or is reasonably
          likely to materially affect, our internal control over financial
          reporting.




                                      -21-
<PAGE>






PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS None


ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None

ITEM 5. OTHER INFORMATION
These quarterly and year-to-date financial statements have not been reviewed by
our external auditors.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a)   Exhibits
The following exhibits are filed as a part of this report on Form 10-QSB:

EXHIBIT NO.                  DESCRIPTION
31.1          Rule 13(a)-14(a)/15(d)-14(a) Certification of
              Chief Executive Officer
31.2          Rule 13(a)-14(a)/15(d)-14(a) Certification of
              Chief Financial Officer
32.1          Section 1350 Certification of Chief Executive Officer
32.2          Section 1350 Certification of Chief Financial Officer

(b) Reports on Form 8-K

                  On March 7, 2006, the Company filed a current report on Form
                  8-K dated March 6, 2006 reporting that the Company had
                  terminated the Letter of Intent dated December 22, 2004 to
                  acquire Connect Education Systems, Inc.


                  On February 14, 2006, the Company filed a current report on
                  Form 8-K dated February 13, 2006 reporting that the Company
                  had finalized an Agreement with AAA Wiscousin. As a partner
                  with AAA's "Show Your Card & Save" program, CHOOZMAIL is being
                  offered to all AAA Wisconsin members with a view to provide
                  AAA members the ability to participate on the internet with a
                  secure communications solution that focuses on the family and
                  children's safety and security.


                                   SIGNATURES


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

       Dated: February 26, 2007          Nitar Tech Corp.

                                         By: /s/ Luiz O. Brasil
                                         ---------------------------------------
                                                Luiz O. Brasil
                                                President


                                      -22-