---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2010

or

[   ]  TRANSITION REPORT UNDER SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________________ to
______________________

Commission File Number 333-168784

TRANSAKT LTD.(Exact name of registrant as specified in its charter)

|Alberta, Canada                                                                                        | N/A                                    
|------------------------------------------------------------------------------------------------------ | ---------------------------------------
|(State or other jurisdiction of incorporation or
      organization)                                   | (IRS Employer Identification
      No.)
|                                                                                                       |                                        
|No.3, Lane 141, Sec. 3, Beishen Rd., Shenkeng Township
      
      Taipei County 222, Taiwan (R.O.C.) | N/A                                    
|(Address of principal executive offices)                                                               | (Zip Code)                             

886-2-26624343
  (Registrants telephone number, including area code)

N/A(Former name, former address and
former fiscal year, if changed since last report)

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

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such
files).[   ] YES    [   ] NO

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

Large accelerated filer [   ]
    
    Accelerated
      filer                  
      [   ]Non-accelerated filer   [   ]
    (Do not check if a smaller
      reporting company)
    Smaller reporting company
[X]


Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act [   ]
YES    [X] NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCYPROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court.[   ]
YES    [   ] NO

---

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date.
102,645,120 common shares issued and outstanding as of November 15, 2010

---

PART 1  FINANCIAL INFORMATION

Item 1. Financial Statements.

Our unaudited interim financial statements for the nine month
  period ended September 30, 2010 form part of this quarterly report. They are
  stated in United States Dollars (US$) and are prepared in accordance with United
  States generally accepted accounting principles. These interim unaudited financial
  statements should be read in conjunction with the companys audited financial
  statements and the 20-F for the year ended December 31, 2009.

TRANSAKT LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30,
2010

CONTENTS

|                                                      | Page         
|----------------------------------------------------- | -------------
|                                                      |              
|FINANCIAL STATEMENTS                                  |              
|                                                      |              
|Condensed
      Consolidated Balance Sheets           | F-1          
|                                                      |              
|Condensed
      Consolidated Statements of Operations | F-2          
|                                                      |              
|Condensed
      Consolidated Statements of Cash Flows | F-3          
|                                                      |              
|Notes
      to Financial Statements                   | F-4
      - 8

---

TRANSAKT LTD.CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                 |   | September 30, |   |   | December 31, |  
|------------------------------------------------------------------------------------------------------------------------------------------------ | - | ------------- | - | - | ------------ | -
|                                                                                                                                                 |   | 2010          |   |   | 2009         |  
|ASSETS                                                                                                                                           |   | (Unaudited)   |   |   |              |  
|Current Assets                                                                                                                                   |   |               |   |   |              |  
|Cash and cash equivalents                                                                                                                        | $ | 779,340       |   | $ | 874,418      |  
|Restricted cash                                                                                                                                  |   | 455,848       |   |   | 498,540      |  
|Accounts receivable, net                                                                                                                         |   | 2,748,092     |   |   | 2,049,995    |  
|Inventory                                                                                                                                        |   | 1,560,475     |   |   | 1,373,516    |  
|Other receivable, net                                                                                                                            |   | 8,902         |   |   | 6,278        |  
|Prepaid
      expenses                                                                                                                           |   | 81,441        |   |   | 51,196       |  
|Investments                                                                                                                                      |   | -             |   |   | 50,915       |  
|Total Current Assets                                                                                                                             |   | 5,634,098     |   |   | 4,904,858    |  
|                                                                                                                                                 |   |               |   |   |              |  
|Property & Equipment, net                                                                                                                        |   | 1,824         |   |   | 3,130        |  
|                                                                                                                                                 |   |               |   |   |              |  
|Deposits                                                                                                                                         |   | 44,611        |   |   | 72,891       |  
|                                                                                                                                                 |   |               |   |   |              |  
|Total Assets                                                                                                                                     | $ | 5,680,533     |   | $ | 4,980,879    |  
|                                                                                                                                                 |   |               |   |   |              |  
|LIABILITIES AND
      STOCKHOLDERS' EQUITY                                                                                                       |   |               |   |   |              |  
|Current Liabilities                                                                                                                              |   |               |   |   |              |  
|Accounts
      payable and accrued expenses                                                                                                      | $ | 1,915,217     |   | $ | 1,161,586    |  
|Bank loans                                                                                                                                       |   | 1,832,433     |   |   | 2,083,361    |  
|Loan
      payable to related party                                                                                                              |   | 679,213       |   |   | 495,625      |  
|Total Current Liabilities                                                                                                                        |   | 4,426,863     |   |   | 3,740,572    |  
|                                                                                                                                                 |   |               |   |   |              |  
|Non-current Liabilities                                                                                                                          |   |               |   |   |              |  
|Unsecured convertible notes
      payable,           net
      of unamortized discounts of $4,916 and $10,541                                    |   | 25,084        |   |   | 19,459       |  
|                                                                                                                                                 |   |               |   |   |              |  
|Stockholders' Equity                                                                                                                             |   |               |   |   |              |  
|Common stock,
      300,000,000 shares authorized for
      issuance,           $0.001par
      value, 102,645,120 shares issued and outstanding |   | 3,260,018     |   |   | 3,260,018    |  
|Preferred stock, 200,000,000
      shares authorized for
      issuance,           $0.001par
      value, 0 shares issued and outstanding        |   | -             |   |   | -            |  
|Additional paid-in
      capital                                                                                                                 |   | 15,000        |   |   | 15,000       |  
|Other
      comprehensive income (loss)                                                                                                          |   | 45,229        |   |   | (15,278      | )
|Accumulated deficit                                                                                                                              |   | (2,091,661    | ) |   | (2,038,892   | )
|Total
      Stockholders' Equity                                                                                                                 |   | 1,228,586     |   |   | 1,220,848    |  
|                                                                                                                                                 |   |               |   |   |              |  
|Total Liabilities and
      Stockholders' Equity                                                                                                 | $ | 5,680,533     |   | $ | 4,980,879    |  

The Accompanying Notes Are an Integral Part of the Financial
Statements.

F-1

---

TRANSAKT LTD.CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)

|                                                                                  |   | Nine
      Months Ended |   |   | Three
      Months Ended |  
|--------------------------------------------------------------------------------- | - | ----------------------- | - | - | ------------------------ | -
|                                                                                  |   | September 30,           |   |   | September 30,            |  
|                                                                                  |   | 2010                    |   |   | 2009                     |  
|Revenues:                                                                         |   |                         |   |   |                          |  
|Sales of goods, net                                                               | $ | 9,450,054               |   | $ | 7,823,341                |  
|Total revenues                                                                    |   | 9,450,054               |   |   | 7,823,341                |  
|                                                                                  |   |                         |   |   |                          |  
|Operating costs and expenses:                                                     |   |                         |   |   |                          |  
|Cost of sales                                                                     |   | 8,837,942               |   |   | 7,470,626                |  
|Selling,
      general and             administrative
      expenses              |   | 695,751                 |   |   | 691,910                  |  
|                                                                                  |   |                         |   |   |                          |  
|Loss from
      operations                                                        |   | (83,639                 | ) |   | (339,195                 | )
|                                                                                  |   |                         |   |   |                          |  
|Other
      income (expense)                                                      |   |                         |   |   |                          |  
|Interest income                                                                   |   | 1,294                   |   |   | 465                      |  
|Investment
      income                                                           |   | 3,213                   |   |   | 153                      |  
|Currency exchange
      gain (loss)                                               |   | 90,957                  |   |   | (10,900                  | )
|Interest
      expense                                                            |   | (64,594                 | ) |   | (61,103                  | )
|Total
      other income 
                                      
      (expenses) |   | 30,869                  |   |   | (71,385                  | )
|                                                                                  |   |                         |   |   |                          |  
|Loss before income
      taxes                                                    |   | (52,769                 | ) |   | (410,580                 | )
|                                                                                  |   |                         |   |   |                          |  
|                                                                                  |   |                         |   |   |                          |  
|Provision
      for income taxes                                                  |   | -                       |   |   | 1,292                    |  
|                                                                                  |   |                         |   |   |                          |  
|Net
      loss                                                                    | $ | (52,769                 | ) | $ | (411,872                 | )
|                                                                                  |   |                         |   |   |                          |  
|Loss
      per share:                                                             |   |                         |   |   |                          |  
|Basic and diluted
      loss per share                                            | $ | (0.00                   | ) | $ | (0.00                    | )
|                                                                                  |   |                         |   |   |                          |  
|Weighted
      average number of             shares
      outstanding:            |   |                         |   |   |                          |  
|Basic
      and diluted                                                           |   | 102,645,120             |   |   | 102,645,120              |  

The Accompanying Notes Are an Integral Part of the Financial
Statements.

F-2

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TRANSAKT LTD.CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)

|                                                                                                                        |   | Nine Months Ended |  
|----------------------------------------------------------------------------------------------------------------------- | - | ----------------- | -
|                                                                                                                        |   | September 30,     |  
|                                                                                                                        |   | 2010              |  
|Cash flows from operating activities                                                                                    |   |                   |  
|Net loss                                                                                                                | $ | (52,769           | )
|Adjustments
      to reconcile net income to net cash                
      provided by (used in) operating activities: |   |                   |  
|Gain on sales of short-term
      Investment                                                                            |   | (3,213            | )
|Depreciation
      expense                                                                                              |   | 1,445             |  
|Amortization of debt discount
      attributable to convertible             
      debentures                           |   | 5,589             |  
|Changes in
      assets and liabilities:                                                                                |   |                   |  
|(Increase)
      in accounts receivable                                                                                 |   | (581,408          | )
|(Increase)
      Decrease in inventory                                                                                  |   | (113,443          | )
|(Increase)
      Decrease in other receivables                                                                          |   | (2,258            | )
|(Increase)
      in prepaid expense                                                                                     |   | (27,121           | )
|(Increase)
      Decrease in deposits                                                                                   |   | 30,902            |  
|Increase
      in accounts payable and accrued expenses                                                                 |   | 683,836           |  
|Net
      cash provided by (used in) operating activities                                                               |   | (58,440           | )
|                                                                                                                        |   |                   |  
|Cash flows from investing activities                                                                                    |   |                   |  
|Decrease
      in restricted cash                                                                                       |   | 67,538            |  
|Proceeds from sale of investments                                                                                       |   | 55,892            |  
|Net
      cash provided by investing activities                                                                         |   | 123,430           |  
|                                                                                                                        |   |                   |  
|Cash flows from financing activities                                                                                    |   |                   |  
|Proceeds from bank loans                                                                                                |   | 1,645,179         |  
|Repayment
      of bank loans                                                                                           |   | (1,998,732        | )
|Due from related party                                                                                                  |   | 148,519           |  
|Net proceeds
      from issuance of convertible debentures                                                              |   | -                 |  
|Net
      cash used in financing activities                                                                             |   | (205,034          | )
|                                                                                                                        |   |                   |  
|Effect of exchange rate changes on cash and cash equivalents                                                            |   | 44,966            |  
|                                                                                                                        |   |                   |  
|Net increase (decrease) in cash and cash equivalents                                                                    |   | (95,078           | )
|                                                                                                                        |   |                   |  
|Cash and cash equivalents                                                                                               |   |                   |  
|Beginning                                                                                                               |   | 874,418           |  
|Ending                                                                                                                  | $ | 779,340           |  
|                                                                                                                        |   |                   |  
|Supplemental disclosure of cash flows                                                                                   |   |                   |  
|Cash paid
      during the year for:                                                                                    |   |                   |  
|Income tax                                                                                                              | $ | -                 |  
|Interest
      expense                                                                                                  | $ | 66,000            |  

The Accompanying Notes Are an Integral Part of the Financial
Statements.

F-3

---

TRANSAKT LTD.NOTES TO THE UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTSSeptember 30, 2010

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally accepted accounting
principles in the United States (GAAP) for interim financial reporting and in
accordance with instructions for Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, the unaudited condensed consolidated financial
statements contained in this report reflect all adjustments that are normal and
recurring in nature and considered necessary for a fair presentation of the
financial position and the results of operations for the interim periods
presented. The year-end condensed balance sheet data was derived from audited
financial statements, but does not include all disclosures required by GAAP. The
results of operations for the interim period are not necessarily indicative of
the results expected for the full year. These unaudited, condensed consolidated
financial statements, footnote disclosures and other information should be read
in conjunction with the financial statements and the notes thereto included in
the Companys Annual Report for the year ended December 31, 2009.

Organization

TransAKT Ltd. (the Company) was incorporated under the laws
of the Province of Alberta on June 3, 1997. The Company completed the
acquisition of Green Point Resources Inc. on October 18, 2000 whereby it became
a publicly traded company listed on the Canadian Venture Exchange. In 2004 the
Company voluntarily delisted from the TSX Venture Exchange and retained a
listing on the Over the Counter Bulletin Board in the United States.

In October 2004 the Company purchased certain assets of IP
Mental Inc., a Taiwan based Voice over Internet Protocol (VoIP) company. The
company name was changed from TransAKT Corp. to TransAKT Ltd. on September 29,
2006. The Company designs and develops Voice over Internet Protocol (VoIP)
solutions and mobile payment terminals for the consumer electronics
industry.

On November 15, 2006 TransAKT Ltd and the shareholders of
Taiwan Halee International Co. Ltd. (HTT), entered into a Share Exchange
Agreement in which TransAKT Ltd. acquired 100% of Taiwan Halee International Co.
Ltd.s outstanding common stock. HTT was incorporated under the laws of Republic
of China in 1985. HTT is engaged in designing, manufacturing and distribution of
Taiwan telecommunications equipment. The acquisition has been accounted for as a
reverse acquisition under the purchase method of accounting. Accordingly, the
merger of the two companies has been recorded as a recapitalization of HTT, with
HTT being treated as the continuing entity.

On August 12, 2010, the Company filed the Registration
Statement (Form S-4) in connection with the continuation of the Company from
Alberta to Nevada. Based upon the number of common shares of TransAKT Ltd., a
Nevada corporation (TransAKT Nevada), to be issued to the shareholders of
TransAKT Ltd., an Alberta corporation (TransAKT Alberta), on a one-for-one
basis upon completion of the Continuation and based on 102,645,120 shares of
common stock of TransAKT Ltd., an Alberta corporation, issued and outstanding as
of August 12, 2010.

F-4

---

The Articles of Conversion of TransAKT Nevada provides that the
authorized capital of the TransAKT will be 300,000,000 shares of common stock,
par value $0.001 per share and 200,000,000 shares of preferred stock, par value
$0.001 per share.

Principles of Consolidation

The consolidated financial statements include the accounts of
TransAKT Holdings Limited and its wholly owned subsidiaries Taiwan Halee
International Co. Ltd. and TransAKT Taiwan Limited, collectively referred to
within as the Company. All material intercompany accounts, transactions and
profits have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with
generally accepted accounting principles in the United States (GAAP) requires
management to make certain estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.

Statement of Cash Flows

In accordance with generally accepted accounting principles
(GAAP), cash flows from the Companys operations are based upon the local
currencies. As a result, amounts related to assets and liabilities reported on
the statement of cash flows will not necessarily agree with changes in the
corresponding balances on the balance sheet.

Cash and Cash Equivalents

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

Allowance for Doubtful Accounts

The Company maintains reserves for potential credit losses on
accounts receivable. Management reviews the composition of accounts receivable
and analyzes historical bad debts, customer concentrations, customer credit
worthiness, current economic trends and changes in customer payment patterns to
evaluate the adequacy of these reserves. Allowance for doubtful debts amounted
to $200,237 and $190,402 as at September 30, 2010 and December 31, 2009,
respectively.

Inventory

Inventories are valued at the lower of cost (determined on a
weighted average basis) or market. The Management compares the cost of
inventories with the market value and allowance is made for writing down their
inventories to market value, if lower. As of September 30, 2010 and December 31,
2009, inventory consisted only of finished goods.

Recent Accounting Pronouncements

In January 2010, the FASB issued Accounting Standards Update
(ASU) No. 2010-06, Improving Disclosures about Fair Value Measurements
, which, among other things, amends Accounting Standards Topic 820 Fair Value
Measurements and Disclosures (ASC 820) to require entities to separately
present purchases, sales, issuances, and settlements in their reconciliation of
Level 3 fair value measurements

F-5

---

(i.e., to present such items on a gross basis rather than on a
net basis), and which clarifies existing disclosure requirements provided by ASC
820 regarding the level of disaggregation and the inputs and valuation
techniques used to measure fair value for measurements that fall within either
Level 2 or Level 3 of the fair value hierarchy. ASU No. 2010-06 is effective for
interim and annual periods beginning after December 15, 2009, except for the
disclosures about purchases, sales, issuances, and settlements in the roll
forward of activity in Level 3 fair value measurements which are effective for
fiscal years beginning after December 15, 2010 and for interim periods within
those fiscal years. The Companys adoption of this standard had no impact on its
consolidated financial position, results of operations or cash flows.

In April 2010, the FASB issued ASU No. 2010-17Revenue
RecognitionMilestone Method (Topic 605), which provides guidance on the
criteria that should be met for determining whether the milestone method of
revenue recognition is appropriate. A vendor can recognize consideration that is
contingent upon achievement of a milestone in its entirety as revenue in the
period in which the milestone is achieved only if the milestone meets all
criteria to be considered substantive. A milestone should be considered
substantive in its entirety. An individual milestone may not be bifurcated. The
amendments in this Update are effective on a prospective basis for milestones
achieved in fiscal years, and interim periods within those years, beginning on
or after June 15, 2010. The Companys adoption of this standard had no impact on
its financial position, results of operations or cash flows.

Going Concern

The Company has incurred a net loss of $411,872 and $52,769
during the nine-month periods ended September 30, 2009 and 2010, respectively,
and has an accumulated deficit of $2,091,661 as of September 30, 2010.

The accompanying consolidated financial statements have been
prepared assuming that the Company will continue as a going concern. This basis
of accounting contemplates the recovery of the Companys assets and the
satisfaction of liabilities in the normal course of business. This presentation
presumes funds will be available to finance ongoing research and development,
operations and capital expenditures and permit the realization of assets and the
payment of liabilities in the normal course of operations for the foreseeable
future.

The ability of the Company to continue research and development
projects and realize the capitalized value of proprietary technologies and
related assets is dependent upon future commercial success of the technologies
and raising sufficient funds to continue research and development as well as to
effectively market its products. Through September 30, 2010, the Company has not
realized commercial success of the technologies, nor have they raised sufficient
funds to continue research and development or to market its products.

There can be no assurances that there will be adequate
financing available to the Company and the consolidated financial statements do
not include any adjustments to reflect the possible future effects on the
recoverability and classification of assets or the amounts and classification of
liabilities that may result from the outcome of this uncertainty.

The Company has taken certain restructuring steps to provide
the necessary capital to continue its operations. These steps included: (1)
Tightly budgeting and controlling all expenses; (2) Expanding the companys
operations into China, expanding product lines and recruiting a strong sales
team to significantly increase sales revenue and profit in next year; (3) The
Company plans to continue actively seeing additional funding opportunities to
improve and expand upon our product lines.

F-6

---

NOTE 2 - RELATED PARTY TRANSACTIONS

Loan Payable to Related Parties

The Companys officers and shareholders have advanced funds to
the Company for working capital purpose. The Company has not entered into any
agreement on the repayment terms for these advances. As of September 30, 2010
and December 31, 2009, there were $618,813 and $435,225 advances outstanding,
respectively.

The Company also had loans payable to five shareholders
amounted to $60,400 as of September 30, 2010 and December 31, 2009. The
unsecured loans bear interest at the rate of 12% per annum, and due on 2010.

NOTE 3 - LOANS PAYABLE

The Company has loan payable amounting to $1,832,433 as of
September 30, 2010 from several commercial banks in Taiwan. The loans are
partially secured by certificate of deposits for $455,848 and accounts
receivable. The loans payable at September 30, 2010 comprised of the following:

InterestNature
      
      Due on
      
      
      per Annum
      
      
      AmountSecured note payable from a bank
      
      1/31/2011
      
      
      5.20%
      
      
      30,342Secured note payable from a bank
      
      12/8/2010
      
      
      5.20%
      
      
      91,579Secured note payable from a bank
      
      1/21/2011
      
      
      5.20%
      
      
      23,250Secured note payable from a bank
      
      3/2/2011
      
      
      5.20%
      
      
      75,053Secured note payable from a bank
      
      3/9/2011
      
      
      5.20%
      
      
      82,700Secured note payable from a bank
      
      12/28/2010
      
      
      2.88%
      
      
      159,450Secured note payable from a bank
      
      2/27/2011
      
      
      6.20%
      
      
      35,460Secured note payable from a bank
      
      11/12/2010
      
      
      5.00%
      
      
      39,000Secured note payable from a bank
      
      11/12/2010
      
      
      5.00%
      
      
      26,892Secured note payable from a bank
      
      11/11/2010
      
      
      5.00%
      
      
      40,100Secured note payable from a bank
      
      12/17/2010
      
      
      5.00%
      
      
      40,300Secured note payable from a bank
      
      12/23/2010
      
      
      5.00%
      
      
      51,840Secured note payable from a bank
      
      12/27/2010
      
      
      5.00%
      
      
      40,500Secured note payable from a bank
      
      1/14/2011
      
      
      5.00%
      
      
      51,290Secured note payable from a bank
      
      2/18/2011
      
      
      5.00%
      
      
      40,500Secured note payable from a bank
      
      2/25/2011
      
      
      5.00%
      
      
      25,920Secured note payable from a bank
      
      2/25/2011
      
      
      5.00%
      
      
      30,600Secured note payable from a bank
      
      1/5/2011
      
      
      1.4757%
      
      
      471,167Secured note payable from a bank
      
      11/18/2010
      
      
      2.4257%
      
      
      312,590Secured note payable from a bank
      
      3/21/2011
      
      
      2.4101%
      
      
      163,000Total
      
      
      
      
      $
      1,832,433Current portion
      
      
      1,832,433Long-term portion
      
      **$**
      -


F-7

---

NOTE 4 - OTHER COMPREHENSIVE INCOME

Balances of related after-tax components comprising accumulated
other comprehensive income (loss), included in stockholders equity, at
September 30, 2010 and December 31, 2009 are as follows:

Foreign CurrencyTranslationAdjustmentBalance at December 31, 2008
    
    $
    61,162Change for 2009
    
    
    (
      76,440
    )Balance at December 31, 2009
    
    
    ( 15,278
    )Change for nine months ended September 30, 2010
    
    
    60,507Balance at September 30, 2010
    
    $
    45,229


NOTE 5 - FAIR VALUE MEASUREMENTS

Generally accepted accounting principles (GAAP) utilizes a fair
value hierarchy that prioritizes the inputs to valuation techniques used to
measure fair value into three broad levels. The fair value hierarchy gives the
highest priority to observable quoted prices (unadjusted) in active markets for
identical assets and liabilities and the lowest priority to unobservable
inputs.

As of December 31, 2009, the Company had $50,915, respectively,
in Level 1 investments in the form of mutual funds.

NOTE 6 - PRIVATE PLACEMENT OF CONVERTIBLE NOTES

12% Unsecured Convertible Promissory Notes dated May 29,
2009

On May 29, 2009, the Company issued $30,000 convertible
promissory notes due May 29, 2011 with interest at 12% per annum due upon
maturity. The note is convertible at any time after the first anniversary after
the closing date, at the holders option, into shares of the Companys common
stock at a price of $0.02 per share. At maturity, any accrued and unpaid
interest, is payable to the holder.

In accordance with ASC 470-20, the Company recognized an
embedded beneficial conversion feature present in the note. The Company
allocated a portion of the proceeds equal to the intrinsic value of that feature
to additional paid-in capital. The Company recognized and measured an aggregate
of $15,000 of the proceeds, which is equal to the intrinsic value of the
embedded beneficial conversion feature, to additional paid-in capital and a
discount against the note. The debt discount attributed to the beneficial
conversion feature is amortized over the notes maturity period (two years) as
interest expense.

The Company recorded the intrinsic value of the embedded
beneficial conversion feature ($15,000) to debt discount which will be amortized
to interest expense over the term of the note. Amortization of $5,625 and $2,568
were recorded for the nine month periods ended September 30, 2010 and 2009,
respectively.

F-8

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******

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

Forward-Looking Statements

This quarterly report contains forward-looking statements.
These statements relate to future events or our future financial performance. In
some cases, you can identify forward-looking statements by terminology such as
"may", "should", "expects", "plans", "anticipates", "believes", "estimates",
"predicts", "potential" or "continue" or the negative of these terms or other
comparable terminology. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors, including the risks in the
section entitled "Risk Factors" that may cause our or our industry's actual
results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. Except as required by
applicable law and including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform these
statements to actual results.

Our unaudited interim financial statements are stated in United
  States dollars and are prepared in accordance with United States generally accepted
  accounting principles. The following discussion should be read in conjunction
  with our companys audited financial statements and 20-F for the year ended
  December 31, 2009 and unaudited interim financial statements and the related
  notes that appear elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all references
  to "common stock" refer to common shares in the capital of our company
  and the terms "we", "us" and "our" mean TransAKT
  Holdings Limited and its wholly owned subsidiaries Taiwan Halee International
  Co. Ltd. and TransAKT Taiwan Limited.

General Overview

TransAKT Ltd. was incorporated in the Province of British
Columbia on December 10, 1996 as Green Point Resources Inc. On October 18, 2000,
we changed our name to Wildcard Wireless Solutions Inc. On June 30, 2001, we
filed Articles of Continuance in the Province of Alberta and became an Alberta
corporation. On that same day, we conducted an amalgamation with Wildcard
Communications Canada Inc., an Alberta corporation, our wholly-owned subsidiary,
wherein Wildcard Communications Canada was merged into Wildcard Wireless
Solutions Inc. On June 20, 2003, we changed our name to TransAKT Corp. We
changed our name from TransAKT Corp. to TransAKT Ltd. on July 12, 2006.

We have operated principally as a research and development
company since our inception. Initial seed capital has been directed toward areas
of product research and development, patent filings and administration. We
initially focused on the research, design, development and manufacturing of
mobile payment terminals. However, the sale of these payment terminals reached
its end-of life due to changes in cellular phone regulations and limited
acceptance in the marketplace. In October 2004, we purchased the existing
business and certain assets of IP Mental Inc., a Taiwan-based Voice over
Internet Protocol (VoIP) hardware and software provider. On November 15, 2006,
we acquired Taiwan Halee International Co. Ltd. (HTT), a Taiwan-based leading
designer, manufacturer and distributor of telecommunications equipment,
including specialized VoIP-compatible phone systems. These acquisitions were
intended to enable us to remain competitive in the marketplace. Our current
business is the design, development and manufacturing of telecommunications
equipment, including VoIP compatible telephone systems and multi-line cordless
telephone systems.

On November 15, 2006, we acquired HTT, for the sum of USD$5,000,000.
  The purchase price was paid by the delivery to the shareholders of HTT of: (i)
  USD$200,000 in cash; (ii) USD$300,000 in a promissory note from us due in cash
  six (6) months after closing; (iii) 50,000,000 of our common voting shares,
  with a deemed value of USD$0.09 per share; and (iv) 5,000,000 of our common
  voting shares issued to Mr. James Wu as performance-based compensation. Other
  than the acquisitions of IP Mental Inc. and HTT, we have generally only had
  capital expenditures on computer equipment, tools and dies, patents, and trademarks.

3

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We have mainly financed our operations through the use of debt
  and the issuance of equity in private placements. In October 2006, we repaid
  a loan we took against inventory produced to fund our first commercial run of
  our payment terminals. We settled the loan for USD$90,000 using funds raised
  from the private placement of our shares. In the short-term and until our sales
  are sufficient to fund operations, we will continue to finance our operations
  through debt or equity financing.

Our Current Business

We began operations in 1997 and commercialized our first
product line of wireless point-of-sale terminals in April 2003. With the use of
cellular phones, these terminals allow merchants to accept payments anywhere,
anytime. In October 2004, through the acquisition of the business and certain
assets of IP Mental Inc., we entered the VoIP business. We currently offer a
range of telecommunications products including VoIP equipment and advanced
multi-line cordless phone systems.

We have operated principally as a research and development
company since our inception. Initial seed capital has been directed toward areas
of product research and development, patent filings and administration. We have
now completed development of our initial products and have entered into the
sales and distribution phase. Our current business is the design, development
and manufacturing of mobile wireless solutions and telecommunications equipment
and solutions for enterprise and consumer markets including VoIP solutions in
Taiwan and the Far East. In 2010, our business will include the design,
manufacturing, and distribution of telecommunications equipment, including
specialized VoIP compatible phone systems and multi-line cordless telephone
systems, and the distribution of name brand telecommunications equipment
including Panasonic, Sanyo, Siemens, etc. in Taiwan and the Far East.

We currently generate revenues, at least in part, through the
distribution of name brand products in Taiwan. Our management believes that this
provides us with an insiders view of some of the latest developments and trends
in technology and design. It also may provide us with relationships that can be
utilized for globalizing some of our new products. For example, we have formed a
partnership with SANYO to develop a Wi-Fi phone and a GSM/Wi-Fi dual mode
phone.

We do not rely on a single revenue base or third parties for
revenue generation. We also have kept our marketing, allowances or rebates to a
minimum. Our management believes that these factors will allow us to effectively
compete in the industry and minimize our costs, thereby allowing us to focus on
intellectual property development.

The VoIP industry is relatively young and several of the more
well-known players have much greater resources than we do. They have used their
resources to get their name out to the public and become leaders in the
industry. Some of the more well-known companies are Vonage, Packet 8, and Net 2
Phone. Our current share of the global VoIP market is negligible.

Our main focus is on telecommunications equipment, including
VoIP hardware and multi-line cordless telephone systems. We also plan to
distribute other name-brand telecommunications equipment in Taiwan, China and
other regions throughout Asia. These areas are marked by strong competition and
rapid change. The following summarizes our current competitors.

Cash Requirements

We generated negative cash flow from operations of $58,440 for
  the period ended September 30, 2010. We continue to be dependent on the proceeds
  of equity and non-equity financing to fund our operations. No assurances can
  be given that our actual cash requirements will fall within our budget, that
  anticipated revenues will be realized when needed, that lines of credit will
  be available to us if required, or that additional capital will be available
  to us. We anticipate that over the next twelve months, we will need a minimum
  of $3,000,000 to sustain operations and market our products effectively.

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Results of Operations for the Three Months Ended
September 30, 2010 and 2009

Our operating results for the three months ended September 30,
2010 and 2009 are summarized as follows:

Three Months ended September 30,
      2010 ($)
      Three Months ended September 30,
      2009 ($)Operating Revenues
    3,227,947
    2,166,038Operating Costs and expenses
    3,266,743
    2,361,781Income (loss) from Operations
    (38,796)
    (195,743)Other Income (Expenses)
    (43,537)
    (5,157)Provision for Income Taxes
    -
    10Net Income (loss)
    (82,332)
    (200,928)Net Loss per share (basic and diluted)
    (0.00)
    (0.00)


Revenues and Cost of Sales

Revenues for the three months ended September 30, 2010
increased by $1,061,909 to $3,227,947 compared to $2,166,038 for the same period
in 2009. The increase was due to the overall economic recovery in 2010. Cost of
sales for the three months ended September 30, 2010 totaled $3,023,128 or
approximately 93.65% of net sales compared to $2,102,749 or approximately 97.08%
for the three months ended September 30, 2009. The increase was due to decreased
purchase costs from major vendors for the three month ended September 30, 2010,
compared to the same period in 2009.

Operating Expenses

Operating expenses for the three months ended September 30,
2010 totaled $243,615 or approximately 7.55% of net sales compared to $259,032
or approximately 11.96% for the three months ended September 30, 2009, an
decrease of $15,417. The decrease in operating expenses was primarily due to a
decrease in professional fees, which is partially offset by an increase in rent
expenses.

Income (Loss) from Operations

Loss from operations for the three months ended September 30,
2010 totaled $(38,796) or approximately (1.20)% of sales compared to $(195,743)
or approximately (9.04)% of sales for the three months ended September 30, 2009,
a decrease of $ 156,947. The decrease in loss from operations was primarily due
to increased gross margin.

Other Income (expenses)

Other expenses increased approximately $(38,362) to $(43,537)
for the three months ended September 30, 2010 from $(5,175) for the same period
in 2009. The increase in net other expenses was primarily due to the increase in
currency exchange loss and interest expense.

Net Income (Loss)

Loss for the three months ended September 30, 2010 totaled
$(82,332) compared to $(200,928) for the three months ended September 30, 2009,
an decrease of $118,596. The decrease in net loss was primarily due to the
reasons described above.

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Results of Operations for the Nine Months Ended September
30, 2010 and 2009

Our operating results for the nine months ended September 30,
2010 and 2009 are summarized as follows:

Nine Months ended September 30,
      2010 ($)
      Nine Months ended September 30,
      2009 ($)Operating Revenues
    9,450,045
    7,823,341Operating Costs and expenses
    8,162,536
    5,800,755Income (loss) from Operations
    (83,639)
    (339,195)Other Income (Expenses)
    30,869
    (71,385)Provision for Income Taxes
    -
    1,292Net Income (loss)
      (52,769)
    (411,872)Net Loss per share (basic and diluted)
    (0.00)
    (0.00)


Revenues and Cost of Sales

Revenues for the nine months ended September 30, 2010 increased
by $1,626,713,804 to $9,450,054 compared to $7,823,341 for the same period in
2009. The increase was due to the overall economic recovery in 2010. Cost of
sales for the nine months ended September 30, 2010 totaled $8,837,942 or
approximately 93.52% of net sales compared to $7,470,626 or approximately 95.49%
for the nine months ended September 30, 2009. The increase was due to decreased
purchase costs from major vendors for the nine month ended September 30, 2010,
compared to the same period in 2009.

Operating Expenses

Operating expenses for the nine months ended September 30, 2010
totaled $695,751 or approximately 7.36% of net sales compared to $691,910 or
approximately 8.84% for the nine months ended September 30, 2009, an increase of
$3,841. The increase in operating expenses was primarily due to increases in
rent and professional fees, which is partially offset by decreases in payroll
and traveling expenses.

Income (Loss) from Operations

Loss from operations for the nine months ended September 30,
2010 totaled $(83,639) or approximately (0.89)% of sales compared to $(143,452)
or approximately (4.34)% of sales for the nine months ended September 30, 2009,
a decrease of $ 255,556. The decrease in loss from operations was primarily due
to increased gross margin, which is partially offset by the increase in
operating expenses.

Other Income (expenses)

Other income (expenses) increased approximately $ 102,254 to
$30,869 for the nine months ended September 30, 2010 from $(71,385) for the same
period in 2009. The increase in other income (expenses) was primarily due to the
increase in currency exchange gain, which is partially offset by the increase in
interest expense.

Net Income (Loss)

Loss for the nine months ended September 30, 2010 totaled
$(52,769) compared to $(411,872) for the nine months ended September 30, 2009,
an decrease of $359,103. The decrease in net loss was primarily due to the
reasons described above.

The accompanying consolidated financial statements have been
prepared assuming that the Company will continue as a going concern. This basis
of accounting contemplates the recovery of the Companys assets and the
satisfaction

6

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of liabilities in the normal course of business. This
presentation presumes funds will be available to finance ongoing research and
development, operations and capital expenditures and permit the realization of
assets and the payment of liabilities in the normal course of operations for the
foreseeable future.

The ability of the Company to continue research and development
projects and realize the capitalized value of proprietary technologies and
related assets is dependent upon future commercial success of the technologies
and raising sufficient funds to continue research and development as well as to
effectively market its products. Through September 30, 2010, the Company has not
realized commercial success of the technologies, nor have they raised sufficient
funds to continue research and development or to market its products.

There can be no assurances that there will be adequate
financing available to the Company and the consolidated financial statements do
not include any adjustments to reflect the possible future effects on the
recoverability and classification of assets or the amounts and classification of
liabilities that may result from the outcome of this uncertainty.

The Company has taken certain restructuring steps to provide
the necessary capital to continue its operations. These steps included: (1)
Tightly budgeting and controlling all expenses; (2) Expanding the companys
operations into China, expanding product lines and recruiting a strong sales
team to significantly increase sales revenue and profit in 2011; (3) The Company
plans to continue actively seeing additional funding opportunities to improve
and expand upon our product lines.

Liquidity and Capital Resources

Our financial position as at September 30, 2010 and September
30, 2009 and the changes for the periods then ended are as follows:

|Working Capital              |   |                    |  |   |                   | 
|---------------------------- | - | ------------------ |  | - | ----------------- | 
|                             |   | As at              |  |   | As at             | 
|                             |   | September 30, 2010 |  |   | December 31, 2009 | 
|Current Assets               | $ | 5,634,098          |  | $ | 4,904,858         | 
|Current Liabilities          | $ | 4,426,863          |  | $ | 3,740,572         | 
|Working Capital (Deficiency) | $ | 1,207,235          |  | $ | 1,164,286         | 

Our working capital surplus decreased from $1,164,286 at December
  31, 2009 to $1,207,235 at September 30, 2010 primarily as a result of increases
  in inventory, accounts receivable and prepaid expenses, and decreases in bank
  loans, which is partially offset by decreases in cash and cash equivalents,
  restricted cash, and investments, and increases in accounts payable and accrued
  expenses, and loan payable to related party.

|Cash Flows                                                               |   |               |   |   |               |  
|------------------------------------------------------------------------ | - | ------------- | - | - | ------------- | -
|                                                                         |   | Nine Months   |   |   | Nine Months   |  
|                                                                         |   | Ended         |   |   | Ended         |  
|                                                                         |   | September 30, |   |   | September 30, |  
|                                                                         |   | 2010          |   |   | 2009          |  
|Net cash provided by (used
      in) Operating Activities                | $ | (58,440       | ) | $ | 1,197,563     |  
|Net cash provided by (used in) Investing
      Activities                | $ | 123,430       |   | $ | 207,804       |  
|Net cash provided by (used
      in) Financing Activities                | $ | (205,034      | ) | $ | (506,784      | )
|Increase (Decrease) in Cash and Cash
      Equivalents during the Period | $ | (95,078       | ) | $ | 926,248       |  
|Cash, Beginning of Period                                                | $ | 874,418       |   | $ | 205,658       |  
|Cash, End of Period                                                      | $ | 779,340       |   | $ | 1,131,906     |  

Critical Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of
TransAKT Holdings Limited and its wholly owned subsidiaries Taiwan Halee
International Co. Ltd. and TransAKT Taiwan Limited, collectively referred to
within as the Company. All material intercompany accounts, transactions and
profits have been eliminated in consolidation.

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Exchange Gain (Loss):

The transactions of TransAKT Holdings Limited, Taiwan Halee
International Co. Ltd. and TransAKT Taiwan Limited were denominated in foreign
currency and were recorded in Taiwan Dollar (TWD) and Canadian Dollar (CAD) at
the rates of exchange in effect when the transactions occur. Exchange gains and
losses are recognized for the different foreign exchange rates applied when the
foreign currency assets and liabilities are settled.

Translation Adjustment

The accompanying consolidated financial statements have been
translated and presented in United States Dollars ($), while the Companys
functional currency is the Taiwan and Canadian dollar.

The accounts of TransAKT Holdings Limited, Taiwan Halee
International Co. Ltd. and TransAKT Taiwan Limited were maintained, and its
financial statements were expressed, in CAD and TWD. In accordance with ASC 830,
Foreign Currency Matters, the Company translates the assets and liabilities into
U.S. dollar ($) using the rate of exchange prevailing at the balance sheet date
and the statements of operations and cash flows are translated at an average
rate during the reporting period. Adjustments resulting from the translation
from TWD and CAD into U.S. dollar are recorded in stockholders equity as part
of accumulated other comprehensive income.

Use of Estimates

The preparation of financial statements in conformity with
generally accepted accounting principles in the United States (GAAP) requires
management to make certain estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.

Revenue Recognition

The Companys revenue recognition policies are in compliance
with Staff Accounting Bulletin (SAB) 104. Revenues are recognized when finished
products are shipped to unaffiliated customers and both title and the risks and
rewards of ownership are transferred and collectibility is reasonably assured.

The Companys revenues are recorded upon confirmed acceptance
after inspection by the customers of the Company.

Going Concern

The accompanying consolidated financial statements have been
prepared assuming that the company will continue as a going concern. This basis
of accounting contemplates the recovery of the companys assets and the
satisfaction of liabilities in the normal course of business. This presentation
presumes funds will be available to finance ongoing research and development,
operations and capital expenditures and permit the realization of assets and the
payment of liabilities in the normal course of operations for the foreseeable
future.

The ability of the company to continue research and development
projects and realize the capitalized value of proprietary technologies and
related assets is dependent upon future commercial success of the technologies
and raising sufficient funds to continue research and development as well as to
effectively market its products. Through September 30, 2010, the company has not
realized commercial success of the technologies, nor have they raised sufficient
funds to continue research and development or to market its products.

There can be no assurances that there will be adequate
financing available to the company and the consolidated financial statements do
not include any adjustments to reflect the possible future effects on the
recoverability and classification of assets or the amounts and classification of
liabilities that may result from the outcome of this uncertainty.

The company has taken certain restructuring steps to provide
the necessary capital to continue its operations. These steps included: (1)
Tightly budgeting and controlling all expenses; (2) Expanding the companys
operations into

8

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China, expanding product lines and recruiting a strong sales
team to significantly increase sales revenue and profit in 2010; (3) The company
plans to continue actively seeing additional funding opportunities to improve
and expand upon our product lines.

At this time, we cannot provide investors with any assurance
that we will be able to raise sufficient funding from the sale of our common
stock or through a loan from our directors, shareholders or investors to meet
our obligations over the next twelve months. We do not have any further
arrangements in place for any future debt or equity financing.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our reports
filed under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms, and that such information
is accumulated and communicated to our management, including our president (also
our principal executive officer and our principal financial officer and
principal accounting officer) to allow for timely decisions regarding required
disclosure.

As of the end of the quarter covered by this report, we carried
out an evaluation, under the supervision and with the participation of our
president (also our principal executive officer and our principal financial
officer and principal accounting officer), of the effectiveness of the design
and operation of our disclosure controls and procedures. Based on the foregoing,
our president (also our principal executive officer and our principal financial
officer and principal accounting officer) concluded that our disclosure controls
and procedures were effective in providing reasonable assurance in the
reliability of our financial reports as of the end of the period covered by this
quarterly report.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal controls over
financial reporting that occurred during the quarter ended September 30, 2010
that have materially or are reasonably likely to materially affect, our internal
controls over financial reporting.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

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

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Item 1A. Risk Factors

Risks Related to our Business

Risks Relating to Our Stock

We Have a History of Operating Losses Which May Affect
Our Ability to Continue Operations.

We sustained operating losses for of $83,639 for the period
ended September 30, 2010 . If we are unable to achieve profitability or to raise
sufficient capital to carry out our business plan, we may not be able to
continue operations.

We Have a Limited Operating History and Are Still Proving
the Viability of Our Products and Business Model, and thus, We May Be Unable to
Sustain Operations and You May Lose Your Entire Investment.

Since inception, we have been primarily focused on research and
development. In April 2003, our products became commercially available and in
2006, we significantly changed our product line. We are still adding to our
product line and are in the process of proving the viability of our products and
business model. If our business model proves unsuccessful or our products prove
unviable, we may not be able to sustain operations and our ability to raise
additional funding may be jeopardized.

Our Competition Has Greater Resources Than We Do and Can
Respond More Quickly to Changes in Our Industry Which Could Adversely Affect our
Ability to Compete.

Communications-based businesses are intensely competitive and
involve a high degree of risk. Public acceptance of our products may never reach
the magnitude required for us to achieve commercial profitability.

Many of our existing competitors, as well as a number of
potential new competitors have longer operating histories, greater name
recognition, larger customer bases and significantly greater financial,
technical and marketing resources than us. These factors may allow them to
respond more quickly than us to new or emerging technologies and changes in
customer requirements. It may also allow them to devote greater resources than
we can to the development, promotion and sale of their products and services.
Such competitors may also engage in more extensive research and development,
undertake more far-reaching marketing campaigns, adopt more aggressive pricing
policies and make more attractive offers to existing and potential employees,
strategic partners, advertisers and Internet publishers. In addition, current
and potential competitors have established or may establish cooperative
relationships among themselves or with third parties to increase the quality and
commercial viability of their products or services.

Volatility of Global Economic Conditions May Affect Our
Ability to Raise Capital and our Product Costs Which May Affect Our Ability to
Continue Operations.

Our revenues, profitability, future growth, and the carrying
value of our assets are substantially dependent on prevailing global economic
conditions, generally, and on fluctuations in specific factors such as exchange
rates, rates of inflation, governmental stability and the occurrence of
economically disruptive events, such as war or natural or industrial disaster.
Our ability to borrow and to obtain additional capital on attractive terms is
also substantially dependent upon these factors. The negative impact of these
factors on sales orders originating from an affected country would have an
adverse effect on our borrowing capacity, revenues, profitability and cash flows
from operations. For example, unfavorable changes in exchange rates can increase
the cost of our products and reduce revenues, resulting in reduced
profitability. In the event that our profitability is reduced and we are unable
to maintain our profit margins, our ability to raise or to borrow capital may
decrease. In addition, as has been recently experienced, general downturns in
the technology sector worldwide have made fundraising difficult. Since the
marketing of our products will require us to raise additional capital, such
downturns may have an adverse affect on our ability to continue operations and
to effectively market our products.

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We are Dependent on Key Personnel Who Have Extensive
Knowledge of Our Products and Business and thus, the Loss of One or More of
These Individuals May Adversely Affect Our Business.

We are heavily dependent upon the expertise of our management
and certain other key officers and directors who have extensive knowledge of our
products and our operations, and the loss of one or more of these individuals
could have a material adverse effect on our business. We do not maintain
key-person insurance policies on any of our executive officers. Since we are a
technology driven company, our future success also depends on our ability to
continue to attract, retain, and motivate highly skilled employees in the
telecommunications technology sector, and in the technology sector, generally.
Competition for employees in our industry is intense. We may be unable to retain
key employees or to attract, assimilate, or retain other highly qualified
employees in the future. We currently have employment agreements with our key
executive officers, engineers and other key employees. These contracts are for
five year terms and include non-competition clauses.

If We Are Unable to Respond To the Rapid Technological
Change in Our Industry, Our Products Could Become Obsolete and We May Be Unable
to Compete, Resulting In the Termination of Our Operations.

The communications technology industry is characterized by
rapid and significant technological change. Many communication applications have
a short life cycle. For example, our former payment system technologies product
lines became obsolete and reached their end-of-life. Furthermore, due to changes
in governmental policy, the cellular phones that our products were designed to
work with have become obsolete. Going forward, our main products will be in the
areas of telecommunications equipment, including VoIP hardware, HTTs USB Dongle
designed for use with Skype, HTTs SkyDECT, HTTs EZDECT advanced multi-line
cordless telephone systems, etc. We also plan to distribute other name-brand
telecommunications equipment in Taiwan, China and other regions throughout Asia.
Our future success will depend in large part on our ability to continue to
respond to such changes. If we are unable to respond to such changes and/or new
or improved competing technology is developed, our technology may be rendered
non-competitive. In the event that we are unable to respond to these changes,
our ability to raise capital to carry out our business plan may be severely
restricted. In addition, our profitability may decrease as any existing
inventory may need to be sold at a discount. In this event, our cash flow and
liquidity would also be decreased.

Government Regulation Could Adversely Affect Our Ability
to Sell Our Products.

Laws and regulations directly applicable to communications,
commerce and advertising are becoming more prevalent. In addition, the growth
and development of the communications industry may prompt calls for more
stringent consumer protection laws, both in Canada and abroad, that may impose
additional burdens on companies. Recently, the United States government mandated
wireless number portability for all new cell phones allowing consumers to keep
their existing phone numbers when changing carriers. The implementation of
wireless number portability rendered several then popular cellular phone models
obsolete. In the event that a phone model that our unit attaches to is rendered
obsolete by regulations such as wireless number portability, our sales and
inventory values would be adversely affected. In addition, to the extent that
regulatory bodies impose restrictions on VoIP, our ability to compete with major
telecommunication companies would be effected. The result would be decreased
profitability, which may adversely affect our share price.

Government regulations could also potentially slow down our
expansion plans. We may be required to obtain approval of our products from
several regulatory agencies. Regulatory approval processes can be onerous and
slow, and could adversely affect our ability to meet our financial projections.
Further, compliance with different national standards may require additional
capital investments and testing. If we are unable to obtain such financing or to
obtain any necessary approvals, our business could be adversely impacted.

We Will Need Additional Funds In Order to Implement Our
Intended Projects and There Is No Assurance That Such Funds Will Be Available
As, If and When Needed, Which May Adversely Affect Our Operations.

We generated negative cash flow from operations of $58,440 for
the period ended September 30, 2010, and a positive cash flow from operations of
$1,197,563 for the period ended September 30, 2009. Although our operating
activities generated net proceeds in fiscal 2009, we continue to be dependent on
the proceeds of equity and non-equity financing to fund our operations. No
assurances can be given that our actual cash requirements will fall

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within our budget, that anticipated revenues will be realized
when needed, that lines of credit will be available to us if required, or that
additional capital will be available to us. We anticipate that over the next
twelve months, we will need a minimum of $3,000,000 to sustain operations and
market our products effectively.

Failure to obtain such additional funds on terms and conditions
that we deem acceptable may materially and adversely affect our ability to
effectively market and distribute our products, resulting in decreased revenues
which may also result in a decreased share price.

The Market Price of Our Common Shares Has Been and Will
In All Likelihood Continue To Be Volatile, Which May Adversely Affect the Value
of Your Investment.

The market price of our common shares has fluctuated over a
wide range and it is likely that the price of our common stock will continue to
fluctuate in the future. Announcements regarding acquisitions, the status of
corporate collaborations, regulatory approvals or other developments by us or
our competitors could have a significant impact on the market price of our
common shares.

Our shares currently trade on the Over-the-Counter Bulletin
Board (OTCC.BB) with limited activity. If this market is not sustained or we
are unable to satisfy any future trading criteria that may be imposed by the
Financial Industry Regulation Authority (FINRA) on our market makers or by the
Securities and Exchange Commission (SEC) on us, there may not be any liquidity
for our shares. Whats more, we have not generated any profit from the sale of
our products to date. These factors could have a negative impact on the
liquidity of any investment made in our stock.

The Value and Transferability of Our Shares May Be
Adversely Impacted By the Penny Stock Rules.

Holders of our common stock in the United States may experience
substantial difficulty in selling their securities as a result of the penny
stock rules. Our common stock is subject to the penny stock rules propagated by
the Securities SEC, which impose additional sales practice requirements on
broker-dealers who sell such securities to persons other than established
customers and accredited investors. Accredited investors generally include
institutions with assets in excess of $5,000,000 or individuals with net worth
in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
with their spouse. For transactions covered by the rule, the broker-dealer must
make a special suitability determination for the purchaser and transaction prior
to the sale. Consequently, the rule may affect the ability of broker-dealers to
sell our securities and also may affect the ability of purchasers of our stock
to sell their shares in the secondary market. It may also cause fewer
broker-dealers to make a market in our stock.

The Large Number of Shares Eligible for Future Sale by
Existing Shareholders May Adversely Affect the Market Price for Our Common
Shares.

Future sales of substantial amounts of our common shares in the
public market, or the perception that such sales could occur, could adversely
affect the market price of our common shares. At September 30, 2010, we had
102,645,120 common shares outstanding. On that date, we had no common shares
reserved for issuance under our stock option plan; and no common shares reserved
for issuance under the warrants issued pursuant to various private placements.

No prediction can be made as to the effect, if any, that sales
of shares of our common stock or the availability of such shares for sale will
have on the market prices of our common stock.

We Have Limited Sales of Products to Date and No
Assurance Can Be Given That Our Products Will Be Widely Accepted In the
Marketplace, Which May Adversely Affect Your Investment.

Our future sales, and therefore, our cash flow, income, and
ultimate success, are highly dependent on success in marketing our products and
consumer acceptance of those products. If our products are not widely accepted
or we are unable to market our products effectively, we may face reduced share
prices, decreased profitability, and decreased cash flow.

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There Is A Limited Public Market for Our Common Shares At
This Time In the United States Which May Affect Your Ability to Sell Our
Stock.

Our shares currently trade on the OTCC.BB with limited trading.
If this market is not sustained or we are unable to satisfy any future trading
criteria that may be imposed on our market makers by the Financial Industry
Regulations Authority (FINRA) or by the SEC on us, there may not be any
liquidity for our shares. We have generated only limited revenue from the sale
of our products to date. These factors could have a negative impact on the
liquidity of any investment made in our stock.

You Should Not Expect to Receive Dividends.

We have never paid any cash dividends on shares of our capital
stock, and we do not anticipate that we will pay any dividends in the
foreseeable future. Our current business plan is to retain any future earnings
to finance the expansion of our business. Any future determination to pay cash
dividends will be at the discretion of our board of directors, and will be
dependent upon our consolidated financial condition, results of operations,
capital requirements, and such other factors that our board of directors may
deem relevant at that time.

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

None.

Item 3. Default upon Senior Securities

None.

Item 4. [Removed and Reserved]

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit Number
      Description(3)
      Articles of Incorporation
          and By-laws3.1
      (i)Articles of Amalgamation
          (Incorporated by reference to our Annual Report on Form 20-F filed on
          June 29, 2010)3.2
      (ii)Bylaws (Incorporated
          by reference to our Annual Report on Form 20-F filed on June 29, 2010)3(a)
      See Exhibit 3.1 and 3.2 (Incorporated
          by reference to the Exhibits filed with our Form 20-F filed on September
          16, 20 03).(10)
      Material Contracts10.1
      Form of Loan Agreement and
          Promissory Note (Incorporated by reference to our Annual Report on Form
          20-F filed on June 29, 2010)(31)
      Rule 13a-14(a)/15d-14(a)
          Certifications31.1*
      Section
          302 Certification under Sarbanes-Oxley Act of 2002 (Principal Executive
          Officer)


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31.2*
      Section
          302 Certification under Sarbanes-Oxley Act of 2002 (Principal Financial
          Officer and Principal Accounting Officer)(32)
      Section 1350 Certifications32.1*
      Section
          906 Certification under Sarbanes-Oxley Act of 2002 (Principal Executive
          Officer)32.2*
      Section
          906 Certification under Sarbanes-Oxley Act of 2002 (Principal Financial
          Officer and Principal Accounting Officer)


* Filed herewith.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

|                         | TRANSAKT LTD.                                                            
|------------------------ | -------------------------------------------------------------------------
|                         | (Registrant)                                                             
|                         |                                                                          
|                         |                                                                          
|Dated: November 15, 2010 | /s/
      James Wu                                                       
|                         | James Wu                                                                 
|                         | President and Chief Executive Officer
      (Principal Executive Officer)
|                         |                                                                          
|                         |                                                                          
|                         |                                                                          
|Dated: November 15, 2010 | /s/
      Taifen Day                                                     
|                         | Taifen Day                                                               
|                         | Chief Financial Officer (Principal Financial
      Officer and Principal 
|                         | Accounting Officer)                                                      

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