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 October 31, 2006

                                       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 ROAD, 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
December 5, 2006, was 11,051,118.

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


                                        1
<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE
                                                                            ----

                                     PART I
                              FINANCIAL INFORMATION

Item 1.    Condensed Financial Statements                                      4
Item 2.    Management's Discussion And Analysis Of Financial Condition
           And Results Of Operations                                          17
Item 3.    Controls and Procedures                                            20

                                     PART II
                                OTHER INFORMATION

Item 1.    Legal Proceedings                                                  21
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds        21
Item 3.    Defaults Upon Senior Securities                                    21
Item 4.    Submission of Matters to a Vote of Security Holders                21
Item 5.    Other Information                                                  21
Item 6.    Exhibits and Reports on Form 8-K                                   21


                                        2
<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.   CONDENSED FINANCIAL STATEMENTS                                    PAGE
                                                                            ----

Condensed Consolidated Balance Sheets                                          4

Condensed Consolidated Statements of Operations                                5

Condensed Consolidated Statements of Cash Flows                                6

Notes to Condensed Consolidated Financial Statements                      7 - 16


                                        3
<PAGE>

                         NITAR TECH CORP. AND SUBSIDIARY
                      CONSOLIDATED CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                           31-OCT-06         31-Jul-06
                                                                          -----------       -----------
                                                                          [UNAUDITED]
<S>                                                                       <C>               <C>
                                               ASSETS
CURRENT ASSETS
      Cash and Cash Equivalents                                           $        89       $       100
      Accounts Receivable - Net of Allowance for Doubtful Accounts              3,771             8,555
      Prepaid Expenses                                                            323               513
      Deferred Tax Asset                                                           --                --
                                                                          -----------       -----------
TOTAL CURRENT ASSETS                                                      $     4,183       $     9,168
      Property and Equipment - Net of Accumulated Depreciation                 33,536            35,240
      Software Development Costs - Net of Accumulated Amortization            314,427           340,826
      Deferred Financing Costs                                                429,327           505,096
                                                                          -----------       -----------
TOTAL ASSETS                                                              $   781,473       $   890,330
                                                                          ===========       ===========
                                LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
      Bank Overdraft                                                      $    37,081       $    41,197
      Accounts Payable & Accrued Liabilities                                  100,307            95,797
                                                                          -----------       -----------
TOTAL CURRENT LIABILITIES                                                 $   137,388       $   136,994

OTHER LIABILITIES
      Deferred Tax Liability                                              $        --       $        --
      Shareholder Advances                                                         --                --
                                                                          -----------       -----------
TOTAL LIABILITIES                                                         $   137,388       $   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                                              995,206           927,989
      Accumulated Earnings (Deficit)                                         (488,920)         (323,645)
      Accumulated Comprehensive Income                                        126,748           137,941
                                                                          -----------       -----------
TOTAL SHAREHOLDERS' EQUITY                                                $   644,085       $   753,336
                                                                          -----------       -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                $   781,473       $   890,330
                                                                          ===========       ===========
</TABLE>


                                        4
<PAGE>

                         NITAR TECH CORP. AND SUBSIDIARY
                 CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                                              THREE MONTHS ENDED OCTOBER 31,
                                                                 2006               2005
                                                             ------------       ------------
                                                              [UNAUDITED]
<S>                                                          <C>                <C>
NET REVENUES:
      Consulting                                             $     34,641       $     69,934
      Software Licensing Fees                                       6,835             13,629
                                                             ------------       ------------
TOTAL NET REVENUES                                           $     41,476       $     83,563

COST OF REVENUES AND OPERATING EXPENSES:
      Cost of Revenues                                       $     47,619       $     46,550
      Sales and Marketing                                          11,142             25,454
      General and Administrative                                   34,900             32,665
      Depreciation and Amortization                                31,617             27,729
                                                             ------------       ------------
TOTAL COST OF REVENUES AND OPERATING EXPENSES                $    125,278       $    132,398
                                                             ------------       ------------
OPERATING (LOSS) INCOME FROM OPERATIONS                      $    (83,802)      $    (48,835)
      Interest Expenses                                            81,473                507
                                                             ------------       ------------
(LOSS) INCOME BEFORE INCOME TAXES                            $   (165,275)      $    (49,342)

      (Benefit From) Provision for Income Taxes                        --            (12,298)
                                                             ------------       ------------
NET (LOSS) INCOME                                            $   (165,275)      $    (37,044)
                                                             ============       ============
COMPREHENSIVE INCOME
      Foreign Currency Translation Income                         (11,193)           101,961
                                                             ------------       ------------
TOTAL COMPREHENSIVE INCOME (LOSS)                            $   (176,468)      $     64,917
                                                             ============       ============
Net (Loss) Income Per Share - Basic and Diluted              $      (0.02)      $       0.01
                                                             ============       ============
Weighted Average Shares Outstanding - Basic and Diluted        11,051,118         11,051,118
                                                             ============       ============
</TABLE>


                                        5
<PAGE>

                         NITAR TECH CORP. AND SUBSIDIARY
                 CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                                           31-OCT-06         31-Jul-06
                                                          -----------       -----------
                                                          [UNAUDITED]
<S>                                                       <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
      Net Income (Loss)                                   $  (165,275)      $  (380,928)
      NON-CASH ADJUSTMENTS
            Contributed Services by Shareholders               67,217            59,110
            Depreciation and Amortization Expense             112,094           246,287
            Bad Debt Expense                                       --             1,946
      CHANGES IN OPERATING ASSETS AND LIABILITIES
            Accounts Receivable                                 4,784            (3,791)
            Prepaid Expenses                                      190             4,362
            Deferred Tax Asset                                     --             3,681
            Accounts Payable & Accrued Liabilities              4,510            67,573
            Deferred Tax Liability                                 --           (36,880)
                                                          -----------       -----------
NET CASH FLOWS FROM OPERATING ACTIVITIES                  $    23,520       $   (38,640)
                                                          -----------       -----------
CASH FLOWS FROM INVESTING ACTIVITIES:                     $        --       $        --
                                                          -----------       -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
      Net Advance (Repayment) from Bank Indebtedness           (4,116)           41,197
      Advances from Shareholders                                   --              (500)
                                                          -----------       -----------
NET CASH FLOWS FROM FINANCING ACTIVITIES                  $    (4,116)      $    40,697
                                                          -----------       -----------
EFFECT OF EXCHANGE RATE CHANGES ON
      CASH AND CASH EQUIVALENTS                               (19,415)           (2,542)
                                                          -----------       -----------
NET CHANGE IN CASH AND CASH EQUIVALENTS                   $       (11)      $      (485)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                    100               585
                                                          -----------       -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                  $        89       $       100
                                                          ===========       ===========
SUPPLEMENTAL DISCLOSURES
      Interest Paid                                       $       995       $       507
      Income Taxes Paid                                            --                --
                                                          ===========       ===========
NON-CASH INVESTING AND FINANCING ACTIVITIES:
      Contributed Services by Stockholders                $    67,217       $    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 October 31, 2006 and 2005,
            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 quarters ended October 31, 2006
            and 2005.

            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 October 31, 2006, 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 October 31, 2006 and 2005, respectively.

      G.    DEFERRED FINANCING COSTS

            The Company amortizes deferred financing costs over the effective
            period of the financing. As of this September 30, 2005 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 quarters ended October 31, 2006 and
            2005 were $11,142 and $25,454, 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
            $23,865 and $101,961 for the quarters ending October 31, 2006 and
            2005, 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 $13 and $11 in the quarters ending October 31, 2006
            and 2005, respectively, and are included in General and
            Administrative Expenses in the accompanying consolidated statement
            of operations.


                                       9
<PAGE>

      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 October 31, 2006 and 2005.

      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.


                                       10
<PAGE>

                  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.

3.    PROPERTY AND EQUIPMENT

      Property and equipment consisted of the following:

      ==========================================================================
      October 31,                                             2006         2005
      --------------------------------------------------------------------------
      Computer Hardware                                   $ 25,985     $ 22,036
      Leasehold Improvements                                 4,237           --
      Furniture & Fixtures                                  34,015        5,708
      --------------------------------------------------------------------------
                                                          $ 64,237     $ 27,744
      Less: Accumulated Depreciation                        30,701       23,035
      --------------------------------------------------------------------------
      Net Property and Equipment                          $ 33,536     $  4,709
      ==========================================================================

      Depreciation expense for the quarters ended October 31, 2006 and 2005 was
      $2,875 and $349, respectively.

4.    SOFTWARE DEVELOPMENT COSTS

      Software development costs incurred during the quarters ended October 31,
      2006 and 2005 were as follows:

      ==========================================================================
      October 31,                                             2006         2005
      --------------------------------------------------------------------------
      Gross Software Development Costs                    $575,008     $512,235
      Less: Accumulated Amortization                       260,581      128,059
      --------------------------------------------------------------------------
      Net Software Development Costs                      $314.427     $384,176
      ==========================================================================

      The Company recorded amortization of capitalized software development
      costs of $112,095 and $27,729 for the quarters ended October 31, 2006 and
      2005, respectively. Estimated aggregate minimum amortization expenses for
      each of the next five years are as follows:

      ==========================================================================
      Year Ending: July 31,      2007       2008      2009      2010      2011
      --------------------------------------------------------------------------
                             $104,809   $104,809   $104809   $    --   $    --
      ==========================================================================

5.    DEFERRED FINANCING COSTS

      No additional deferred financing costs were incurred during the quarter
      ended October 31, 2006.

      ==========================================================================
      Year Ending: July 31,                                   2006         2005
      --------------------------------------------------------------------------
      Deferred Financing Costs                            $643,990     $573,687
      Less: Accumulated Amortization                       162,629           --
      --------------------------------------------------------------------------
      Net Deferred Financing Costs                        $481,361     $573,687
      ==========================================================================


                                       11
<PAGE>

      The Company recorded amortization of capitalized software development
      costs of $90,255 and $0 for the quarters ended October 31, 2006 and 2005,
      respectively. Estimated aggregate minimum amortization expenses for each
      of the next five years are as follows:

      ==========================================================================
      Year Ending: July 31,      2007       2008      2009      2010      2011
      --------------------------------------------------------------------------
                             $321,995   $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 $42,414 at October
      31, 2006. The bank overdraft balance was $37,081 and $6,626 at October 31,
      2006 and 2005, 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 October 31, 2006 and 2005, respectively. Interest expense for the
      quarters ended October 31, 2006 and 2005 was $994 and $507, respectively.
      The bank overdraft protection loan is personally guaranteed by two
      principal shareholders of the Company.

7.    RELATED PARTY TRANSACTIONS

      During the quarters ended October 31, 2006 and 2005, 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 years ended October 31, 2006 and 2005.

      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 $145 at October 31,
      2006 and 2005, respectively, has been imputed in the accompanying
      consolidated financial statements. Advances from Shareholders' at October
      31, 2006 and 2005 were $0 and $500, 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 quarters ending October 31, 2006 and 2005,
      respectively, are as follows:

      ==========================================================================
      October 31,                                             2006         2005
      --------------------------------------------------------------------------
      Consulting Fees:
            Kanak Consulting                              $            $ 16,671
                                                                         20,062
            Next Technology                               $ 20,062       21,672
      --------------------------------------------------------------------------
      Total Related Party Fees                            $ 40,125     $ 38,343
      ==========================================================================


                                       12
<PAGE>

8.    INCOME TAXES

      The consolidated provision for income taxes for the quarters ending
      October 31, 2006 and 2005, respectively, consists of the following:

      ==========================================================================
      Quarter Ended: October 31,                              2006         2005
      --------------------------------------------------------------------------
      Current Tax Expense
            United States Tax Expense                     $     --     $     --
            Canadian Tax Expense                                --           --
      --------------------------------------------------------------------------
      Deferred Tax Benefit
            United States Tax Expense                     $     --     $     --
            Canadian Tax Benefit                                --      (12,298)
      --------------------------------------------------------------------------
      Income Tax Benefit                                  $     --     $(12,298)
      ==========================================================================

      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:

      ==========================================================================
      Quarter Ended: October 31,                              2006         2005
      --------------------------------------------------------------------------
      Canadian Statutory Income Taxes at
            36% and 37%, respectively                            $     $(12,298)
      Application of the Canadian Small
            Business Deduction Credit                           --           --
      --------------------------------------------------------------------------
      Income Tax Benefit                                  $     --     $(12,298)
      ==========================================================================

      A cumulative net deferred tax liability is included on the balance sheet.
      The components of the deferred tax liability at October 31, 2006 and 2005,
      respectively, are as follows:

      ==========================================================================
      Quarter Ended: October 31,                              2006         2005
      --------------------------------------------------------------------------
      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. De

      The Company has $132,561 of net operating loss carryforwards available as
      of October 31, 2006. 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>
----------------------------------------------------------------------------------------------------------
                                          SOFTWARE                                               TOTAL
FOR QUARTER ENDING OCTOBER 31, 2006    LICENSING FEES      CONSULTING         CORPORATE       CONSOLIDATED
----------------------------------------------------------------------------------------------------------
<S>                                     <C>               <C>               <C>               <C>
Revenues                                $      6,835      $     34,641      $         --      $     41,476
Cost of Revenues                              (7,494)          (40,125)               --           (47,619)
Sales and Marketing                          (11,142)               --                --           (11,142)
General and Administrative                    (1,745)           (5,235)          (27,920)          (34,900)
Depreciation and Amortization                (28,743)               --            (2,875)          (31,618)
Interest Expense                                  --                --           (81,472)          (81,472)
(Benefit From) Provision for
Income Taxes                                      --                --                --                --
----------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)                       $    (42,289)     $    (10,719)     $   (112,267)     $   (165,275)
----------------------------------------------------------------------------------------------------------
CAPITAL EXPENDITURES                              --                --                --                --
----------------------------------------------------------------------------------------------------------
TOTAL ASSETS                            $    351,734      $         --      $    429,739      $    781,473
==========================================================================================================

<CAPTION>
----------------------------------------------------------------------------------------------------------
                                          SOFTWARE                                               TOTAL
FOR QUARTER ENDING OCTOBER 31, 2005    LICENSING FEES      CONSULTING         CORPORATE       CONSOLIDATED
----------------------------------------------------------------------------------------------------------
<S>                                     <C>               <C>               <C>               <C>
Revenues                                $     13,629      $     69,934      $         --      $     83,563
Cost of Revenues                             (30,258)          (16,293)               --           (46,550)
Sales and Marketing                          (25,454)               --           (25,454)
General and Administrative                    (4,900)           (5,716)          (22,049)          (32,665)
Depreciation and Amortization                (27,380)               --              (349)          (27,729)
Interest Expense                                  --                --              (507)             (507)
(Benefit From) Provision for
Income Taxes                                  18,534           (11,945)            5,709            12,298
----------------------------------------------------------------------------------------------------------
NET INCOME (LOSS)                       $    (55,828)     $     35,980      $    (17,196)     $    (37,044)
----------------------------------------------------------------------------------------------------------
CAPITAL EXPENDITURES                              --                --                --                --
----------------------------------------------------------------------------------------------------------
TOTAL ASSETS                            $    376,066      $         --      $    514,264      $    890,330
==========================================================================================================
</TABLE>


                                       15
<PAGE>

      Revenues from two customers were $38,850 or 91% of the Company's total
      revenues for the quarter ending October 31, 2006. Revenues from two
      customers during the quarter ending October 31, 2005 were approximately
      $87,211 or 89%.

      All of the Company's revenues were from Canada and the United States.
      Revenues from Canada and the United States for the quarter ending October
      31, 2006 were $5,900 and $31,957, respectively. For the quarter ending
      October 31, 2005, revenues from Canada and the United States were $12,335
      and $70,482, respectively. Revenues are attributed to countries based on
      the location of the customers. All long-lived assets of the Company are
      located within Canada.


                                       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 October 31, 2006, 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 OCTOBER 31, 2006 COMPARED TO THE SAME PERIOD ENDED
OCTOBER 31, 2005

Revenues

During the three months ended October 31, 2006 the Company generated $41,475 in
revenue from the sale of consulting and software licensing fees versus $83,563
in revenue from consulting and software licensing fees in the same three month
period ended October 31, 2005. From a revenue source perspective, the majority
of this revenue was consulting related, $34,641 or 84% of total revenues, while
DynamicHub related revenue was $6,835 or 16% of total revenues. In the three
months ended October 31, 2005, $69,344, or 84% of revenue was generated from
consulting work and DynamicHub revenues were $13,629 or 16% 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 early 2ND quarter of fiscal 2007.

During the 1ST 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 $82,333 in the three
month period ended October 31, 2005. Revenue generated with the same customer
during the three months ended October 31, 2006, amounted to $35,173, 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.


                                       17
<PAGE>

Cost of Revenues

Cost of revenues for the three month period ended October 31, 2006 was $47,619,
which consisted primarily of fees paid to consultants of $40,125. In the period
ended October 31, 2005, cost of revenues was $46,550 and consisted of the same
cost elements. The principal cost of revenue item in the first quarter of fiscal
2005 consisted of fees paid to consulting services staff of $38,215. The primary
drivers for the overall increase in cost of revenues for the three months ended
October 31, 2006, versus the three months ended October 31, 2005, were due to
increased consulting fees of $1,910 offset partially by decreased internet
service provider costs of $760, related to one-time set-up charges. The reason
for the increase in consulting fees for the three months ended October 31, 2006,
was due to an increase in rates for the consultants in the current quarter
versus the rates paid for the three months ended October 31, 2005. The overall
cost of sales for the quarter ended October 31, 2006, 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.

Sales and Marketing

Total sales and marketing expenses for the three months ended October 31, 2006
were $11,142 versus $25,454 in the three months ended October 31, 2005. 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 October 31,
2005.

General and Administrative

In the three months ended October 31, 2006, general and administrative expenses
were $34,900 versus $32,665 for the three month period ended October 31, 2005.
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.

Depreciation and Amortization

Our depreciation and amortization for the three months ended October 31, 2006
versus the three months ended October 31, 2005 increased from $27,729 to
$31,618. The three months ended October 31, 2006 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 October 31, 2006, the Company expensed $81,472 in interest
expense which was higher than the $507 expensed in the quarter ended October 31,
2005. In the three months ended October 31, 2006, 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 $80,477
in the current quarter accounting for the significant and material variance
versus the three month period ended October 31, 2005.


                                       18
<PAGE>

Income Taxes

During the three month period ended October 31, 2006, there was no recorded
benefit or liability from income taxes of as compared to the three months ended
October 31, 2005 where we incurred a benefit for income taxes of $12,298. 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 October 31, 2005. 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 October 31, 2006 of
$168,894 versus a net loss of $37,044 for the same period in the previous year.

LIQUIDITY AND CAPITAL RESOURCES

At October 31, 2006, the Company's need for cash included satisfying $137,236 of
current liabilities, which consisted of accounts payable and accrued liabilities
of $100,155 and bank indebtedness in the form of a bank overdraft of $37,081. At
October 31, 2006, the Company had a working capital deficiency of $133,205. The
Company did have available to it additional bank overdraft access of
approximately $3,500.

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 October 31, 2006, the Company had a
cash overdraft availability of $45,000. 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.


                                       19
<PAGE>

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 October 31, 2006. 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.


                                       20
<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

None

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.


                                       21
<PAGE>

                                   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: December 5, 2006             Nitar Tech Corp.


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


                                       22