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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the Quarterly Period Ended September 30, 2021

☐ 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 333-208978

TrueNorth Quantum, Inc.

(Exact name of registrant issuer as specified in its charter)

Nevada		98-1253258
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

5428 South Regal Street #30954, Spokane, WA 99223

(Address of principal executive offices, including zip code)

Registrant’s phone number, including area code (647) 400-6927

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
N/A		N/A		N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding twelve months (or shorter period that the registrant was required to submit such files).

Yes ☐ No ☒

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

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

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

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

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to 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.

Class		Outstanding at November 12, 2021
Common Stock, $0.0001 par value		151,043,725

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION

ITEM 1.	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:	3

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	13

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	16

ITEM 4.	CONTROLS AND PROCEDURES	16

PART II	OTHER INFORMATION

ITEM 1	LEGAL PROCEEDINGS	17

ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	17

ITEM 3	DEFAULTS UPON SENIOR SECURITIES	17

ITEM 4	MINE SAFETY DISCLOSURES	17

ITEM 5	OTHER INFORMATION	17

ITEM 6	EXHIBITS	17

SIGNATURES		18

PART I — FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TrueNorth Quantum, Inc.

(fka United Royale Holdings Corp.)

Interim Financial Statements

(Unaudited)

Table of Contents

		Page
Condensed consolidated balance sheets at September 30, 2021 and December 31, 2020		4
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2021 and 2020		5
Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the three and nine months ended September 30, 2021 and 2020		6
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020		7
Notes to the Condensed Consolidated Financial Statements		8

TrueNorth Quantum Inc.

Condensed Consolidated Balance Sheets

(Unaudited)


	September 30,			December 31,
	2021			2020
ASSETS
Current Assets:
Cash and cash equivalents	$	–		$	6,731
Prepaid expenses and other receivables		3,500			21,756
Total Current Assets		3,500			28,487

Non-current assets from discontinued operation		–			41,691
TOTAL ASSETS	$	3,500		$	70,178

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable and accrued liabilities		834			31,533
Due to related party		43,295			49,744
Current liabilities from discontinued operation		–			23,128
Total Current Liabilities		44,129			104,405

Total Liabilities		44,129			104,405

Stockholders' Equity (Deficit):
Preferred stock, $0.0001 par value, 200,000,000 shares authorized, none issued and outstanding		–			–
Common stock, $0.0001 par value, 600,000,000 shares authorized, 141,990,387 shares issued and outstanding		14,199			14,199
Additional paid-in capital		873,597			789,468
Accumulated other comprehensive income		–			1,477
Accumulated deficit		(928,425	)		(839,371	)
Total Stockholders' Equity (Deficit)		(40,629	)		(34,227	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	3,500		$	70,178

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

TrueNorth Quantum Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)


	Three Months Ended						Nine months ended
	September 30,						September 30,
	2021			2020			2021			2020

Revenues	$	–		$	–		$	–		$	–

Operating Expenses
General and administrative		47,395			17,044			72,631			86,880
Total Operating Expenses		47,395			17,044			72,631			86,880

Loss from operations		(47,395	)		(17,044	)		(72,631	)		(86,880	)

Loss from continuing operation		(47,395	)		(17,044	)		(72,631	)		(86,880	)

Loss from discontinued operations
Loss from discontinued operations		–			(1,061	)		(8,062	)		(3,437	)
Loss from disposal of subsidiaries		–			–			(8,361	)		–
Loss from discontinued operations		–			(1,061	)		(16,423	)		(3,437	)

Net Loss	$	(47,395	)	$	(18,105	)	$	(89,054	)	$	(90,317	)

Other Comprehensive Income (loss)
Realized foreign currency translation due to disposal of subsidiaries		–			–			(482	)		–
Foreign currency translation loss		–			1,810			(995	)		(1,046	)
Comprehensive loss	$	(47,395	)	$	(16,295	)	$	(90,531	)	$	(91,363	)

Net Loss Per Common Share: Basic and Diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Weighted Average Number of Common Shares Outstanding: Basic and Diluted		141,990,387			464,667,527			141,990,387			664,499,399

See accompanying notes to the unaudited consolidated financial statements.

TrueNorth Quantum Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

(Unaudited)

Nine months ended September 30, 2021


							Accumulated
					Additional		other
	Common stock				paid-in		comprehensive			Accumulated
	Shares		Amount		capital		Income (loss)			Deficit			Total

Balance, December 31, 2020		141,990,387	$	14,199	$	789,468	$	1,477		$	(839,371	)	$	(34,227	)

Disposal of subsidiaries		–		–		–		(482	)		–			(482	)
Foreign currency translation		–		–		–		(995	)		–			(995	)
Net loss for the period		–		–		–		–			(35,444	)		(35,444	)

Balance, March 31, 2021		141,990,387	$	14,199	$	789,468	$	–		$	(874,815	)	$	(71,148	)

Debt forgiveness		–		–		84,129		–			–			84,129
Net loss for the period		–		–		–		–			(6,215	)		(6,215	)

Balance, June 30, 2021		141,990,387	$	14,199	$	873,597	$	–		$	(881,030	)	$	6,766

Net loss for the period		–		–		–		–			(47,395	)		(47,395	)

Balance, September 30, 2021		141,990,387	$	14,199	$	873,597	$	–		$	(928,425	)	$	(40,629	)

Nine months ended September 30, 2020

	Common Stock				Additional		Accumulated other						Total
	Number of Shares		Amount		paid-in capital		comprehensive loss			Accumulated Deficit			Stockholders’ Equity
Balance as of December 31, 2019		141,990,387	$	14,199	$	789,468	$	953		$	(712,303	)	$	92,317
Net loss		–		–		–		–			(48,357	)		(48,357	)
Foreign currency translation		–		–		–		(3,254	)		–			(3,254	)

Balance as of March 31, 2020		141,990,387	$	14,199	$	789,468	$	(2,301	)	$	(760,660	)		40,706

Net loss		–		–		–		–			(23,855	)		(23,855	)
Foreign currency translation		–		–		–		398			–			398

Balance as of June 30, 2020		141,990,387	$	14,199	$	789,468	$	(1,903	)	$	(784,515	)	$	17,249

Net loss		–		–		–		–			(18,105	)		(18,105	)
Foreign currency translation		–		–		–		1,809			–			1,809

Balance as of September 30, 2020		141,990,387	$	14,199	$	789,468	$	(94	)	$	(802,620	)	$	953

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

TrueNorth Quantum Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Nine months ended
	September 30,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(89,054	)	$	(90,317	)
Accounts receivable - related party
Depreciation expense		–			2,569
Loss on disposal of subsidiaries		8,361			–
Changes in operating assets and liabilities:
Prepaid expenses		18,256			10,947
Accounts payable and accrued liabilities		(30,699	)		(7,365	)
Lease liabilities		–			(1,790	)
Discontinued assets and liabilities		8,725			–
Net Cash Used in Operating Activities		(84,411	)		(85,956	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of biological assets		–			(4,548	)
Net cash used in Investing Activities		–			(4,548	)

CASH FLOWS FROM FINANCING ACTIVITIES
Advance from related party		77,680			34,557
Net cash provided by Financing Activities		77,680			34,557

Effect of exchange rate changes in cash and cash equivalents		–			(186	)

Net cash decrease for period		(6,731	)		(56,133	)
Cash at beginning of period		6,731			63,839
Cash at end of period	$	–		$	7,706

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes	$	–		$	–
Cash paid for interest	$	–		$	–

NON CASH INVESTING AND FINANCING ACTIVITIES
Initial recognition of operating lease right-of-use assets and operating lease obligations	$	–		$	21,330
Reversal Adjustment for operating lease right-of-use and operating lease obligation	$	–		$	17,105
Debt forgiveness	$	84,129		$	–

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

TrueNorth Quantum Inc.

Notes to the Condensed Consolidated Financial Statements

September 30, 2021

(Unaudited)

1.	DESCRIPTION OF BUSINESS

Organization

TrueNorth Quantum, Inc., formerly United Royale Holdings Corp., (“the Company”, “TNQ”, “we”, “us” or “our”) was incorporated under the laws of the State of Nevada on June 23, 2015 to offer planting and cultivation services to land owners in regards to the planting and cultivation of Aquilaria Subintegra & Aquilaria Sinensis trees. On February 15, 2017, we changed our name from Bosy Holdings Corp. to United Royale Holdings Corp. to facilitate our re-branding efforts and develop and enhance our business.

On September 30, 2018, the Company and Mr. CHEN Zheru, representing the sole shareholder of IV Enterprises Development Limited, a Seychelles corporation (“IVED”), entered into a Sale and Purchase Agreement, pursuant to which the Company acquired 100% (one hundred percent) of the shareholding of IVED. IVED provides tree nurseries, including planting, cultivation and inoculation services through its wholly-owned subsidiary, Oudh Tech Sdn Bhd, in Malaysia. The acquisition is completed on September 30, 2018.

On March 30, 2021, the Company and Mr. Li Gongming (“Mr. Li”), the director of the Company, signed an instrument of transfer, pursuant to which Mr. Li acquired 100% (one hundred percent) of the shareholding of IVED. The consideration was set at $1, same as the consideration that the Company acquired IVED in 2018.

Our Board of Directors, Li Gongming, Teoh Kooi Sooi and Soh Khay Wee resigned from the board of directors on April 7, 2021. On the same day, Teoh Kooi Sooi resigned from the roles of Chief Executive Officer, Chief Financial Officer and Treasurer of the Company, David Edwin Evans resigned from the role of Chief Operation Officer of the Company, Liao Lin resigned from the role of Chief Sales Officer of the Company, Jaya C Rajamanickam resigned from the role of President of the Company while Feliana Binti Johny resigned from the role of Secretary of the Company.

On April 7, 2021, Mr. Gary Bartholomew was appointed as the Director, Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer of the Company.

On April 22, 2021, CyberNorth Ventures Inc. acquired an aggregate of 109,423,767 shares of Common Stock of the Company, representing approximately 77.6% of the issued and outstanding shares of Common Stock of the Company as of such date, from the previous majority shareholders of the Company. As a result of such acquisition CyberNorth Ventures Inc. is able to unilaterally control the election of our board of directors, all matters upon which shareholder approval is required and, ultimately, the direction of our Company. CyberNorth Ventures Inc. is wholly owned by our director, Gary Bartholomew.

On October 4, 2021, the Company amended its Articles of Incorporation to (i) change its name to TrueNorth Quantum Inc. and (ii) designate its Series A Preferred Stock.

On October 20, 2021, the board of directors of the Company appointed Witold (Wit) Ostrenko as a director of the Company, and appointed Brad Herr as the Company’s Chief Financial Officer.

On October 29, 2021, the Company closed its acquisition of TrueNorth Quantum Inc. (“TNQ”), a corporation existing under the laws of the Province of Alberta, Canada pursuant to the Exchange Agreement, Support Agreement and Trust Agreement disclosed in the Company’s Current Report filed October 13, 2021.

On November 8, 2021, the board of directors of the Company appointed William Douglas (Doug) Beynon and David Mironov as directors of the Company.

Description of Business

TNQ is a technology company that has developed an enterprise platform providing security, connectivity and systems compatibility for existing financial institution’s back and front office. This includes integration into major Banks systems from compliance to customer information, including their trading platforms. The TNQ technology (“Northern Shield”) utilizes quantum cryptography (or Quantum key distribution) to secure the clients private key to their crypto assets and this key is held within the trusted Bank environment with the potential to be insured against cyberattack and theft.

Northern Shield enables banks to “institutionalize” crypto currencies the blockchain market. Crypto currencies such as Bitcoin were originally designed to “decentralize” currency. However, the Northern Shield will provide the vehicle for integration to applications and utility for digital wallets inbound and outbound. Northern Shield is a custody solution with insurance. Currently, crypto holders have an account at the crypto-exchange where they invested in that crypto currency. Our solution enables major banks to possess custody on behalf of their clients providing flexibility to trade on multiple exchanges with access to financial and payment networks in a secure and insured account.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (“GAAP”), and the instructions to Form 10-Q and Rule 8 of Regulation S-X. Certain information and note disclosures normally included in audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.

In the opinion of management, the balance sheet as of September 30, 2021 which has been derived from unaudited financial statements and these unaudited condensed consolidated financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended September 30, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year ending December 31, 2021 or for any future period.

These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the Management’s Discussion and the audited financial statements and notes thereto included in the Form 10-K for the year ended December 31, 2020.

The accompanying financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances were eliminated in consolidation. As of September 30, 2021, there was no subsidiary held by the Company (see Note 7).

Use of estimates

Management uses estimates and assumptions in preparing these financial statements in accordance with US GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities in the balance sheet, and the reported revenue and expenses during the periods reported. Actual results may differ from these estimates.

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. During the nine months ended September 30, 2021, the Company incurred a net loss of $89,054 and used cash in operations of $84,411. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on the Company’s December 31, 2020 financial statements, has expressed substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

The Company’s ability to continue as a going concern is dependent upon improving its profitability and the continuing financial support from its shareholders. Management believes the existing shareholders or external financing will provide the additional cash to meet the Company’s obligations as they become due. Despite the amount of funds that we have raised, no assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stockholders, in the case of equity financing.

Cash and cash equivalents

Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.

Fair value of financial instruments

The carrying value of the Company’s financial instruments: cash and cash equivalents, prepayments, amount due to a director and accrued liabilities approximate at their fair values because of the short-term nature of these financial instruments.

The Company follows the guidance of the ASC Topic 820-10, “Fair Value Measurements and Disclosures” (“ASC 820-10”), with respect to financial assets and liabilities that are measured at fair value. ASC 820-10 establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows:

Level 1 : Observable inputs such as quoted prices in active markets;

Level 2 : Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3 : Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions information regarding the impact of the adoption of ASC 842 on the Company’s financial statements.

Recent accounting pronouncements

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

3.	PREPAID EXPENSES AND OTHER RECEIVABLES

The prepaid expenses as of September 30, 2021 included OTCQB annual fee of $3,500, while the prepaid expenses as of December 31, 2020 included OTCQB annual fee of $14,000, deposit of $600 and $6,410 in transfer agent and our consultancy firm.

4.	ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

The accounts payable and accrued liabilities as of September 30, 2021 included legal and transfer agent fee of $834, while the accrued liabilities as of December 31, 2020 included the auditor’s fee of $4,750, predecessor auditor consent fee of $5,000 and professional fee to our consulting service provider of $19,231.

5.	AMOUNT DUE TO RELATED PARTY

As of September 30, 2021, and December 31, 2020, our directors and major shareholder has loaned to the Company $43,295 and $49,744 as working capital, respectively. This loan is unsecured, non-interest bearing and due on demand. During the nine months ended September 30, 2021, directors advanced $77,680 to the Company and due to director of $84,129 was forgiven.

6.	STOCKHOLDERS’ EQUITY

As of September 30, 2021, and December 31, 2020, there were 141,990,387 shares of common stock issued and outstanding.

There were no stock options, warrants or other potentially dilutive securities outstanding as of September 30, 2021.

7.	DISCONTINUED OPERATIONS

On March 30, 2021, the Company has signed an instrument of transfer with our director, Mr. Li Gongming. Beginning on January 1, 2020, the Company historical financial results for periods prior to the above transaction have been reflected in our statement of income, retrospectively, as discontinued operations. Additionally, the related assets and liabilities associated with the discontinued operations in the prior year balance sheet are classified as discontinued operations. As such, as of September 30, 2021, the Company accounted for all of its assets, liabilities and results of operations up to March 30, 2021 as discontinued operations.

The following table shows the results of operations of the Company for three and nine months ended September 30, 2021 and 2020 which are included in the loss from discontinued operations:

Schedule of discontinued operations
	Three Months Ended					Nine months ended
	September 30,					September 30,
	2021		2020			2021			2020

Revenue	$	–	$	–		$	–		$	–
General and administrative		–		1,061			8,062			3,437
Loss from operations		–		(1,061	)		(8,062	)		(3,437	)
Other income (expense)		–		–			–			–
Loss before income tax		–		(1,061	)		(8,062	)		(3,437	)
Income tax expense (refund)		–		–			–			–
Net loss from discontinued operations	$	–	$	(1,061	)	$	(8,062	)	$	(3,437	)

The following table shows the loss from disposal of subsidiaries from carrying amounts of the major classes of assets and liabilities as of March 30, 2021:

	March 30,
	2021

Current Assets
Cash and cash equivalents	$	1,692
Prepaid expenses		724
Plant and equipment, net		1,116
Biological Assets		38,651
Amount due to director		(19,800	)
Accounts payable and accrued expenses		(14,504	)
Realized foreign currency translation due to disposal of subsidiaries		482
Loss from disposal of subsidiaries	$	8,361

8.	SUBSEQUENT EVENTS

On September 3, 2021, the Company’s sole director and shareholder holding a majority of the Company’s voting stock approved the following actions by written consent: change of the Company’s name to TrueNorth Quantum, Inc., designation of one share of Series A Preferred Stock with special voting rights, and approval of a stock incentive plan and deferred stock unit plan.

On October 4, 2021, the Company amended its Articles of Incorporation to (i) change its name to TrueNorth Quantum Inc. and (ii) designate its Series A Preferred Stock.

On October 20, 2021, the board of directors of the Company appointed Witold (Wit) Ostrenko as a director of the Company, and appointed Brad Herr as the Company’s Chief Financial Officer.

On November 5, 2021, TrueNorth Quantum, Inc., a Nevada corporation formerly known as United Royale Holdings Corp. (the “Company”) dismissed Zia Masood Kiani & Co. (“ZMKC”) as the Company’s independent registered public accounting firm. Following a careful deliberation, on November 5, 2021, the Company engaged BF Borger CPA PC (“BFB”) as the Company’s independent registered public accounting firm.

On November 8, 2021, the board of directors of the Company appointed William Douglas (Doug) Beynon and David Mironov as directors of the Company.

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

The information contained in this quarter report on Form 10-Q is intended to update the information contained in our Form 10-K dated March 29, 2021, for the year ended December 31, 2020 and presumes that readers have access to, and will have read, the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other information contained in such Form 10-K. The following discussion and analysis also should be read together with our financial statements and the notes to the financial statements included elsewhere in this Form 10-Q.

The following discussion contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements appear in a number of places in this Report, including, without limitation, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements are not guarantees of future performance and involve risks, uncertainties and requirements that are difficult to predict or are beyond our control. Forward-looking statements speak only as of the date of this quarterly report. You should not put undue reliance on any forward-looking statements. We strongly encourage investors to carefully read the factors described in our Form 10-K dated March 29, 2021, in the section entitled “Risk Factors” for a description of certain risks that could, among other things, cause actual results to differ from these forward-looking statements. We assume no responsibility to update the forward-looking statements contained in this transition report on Form 10-Q. The following should also be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto that appear elsewhere in this report.

Company Overview

TrueNorth Quantum Inc. (formerly United Royale Holdings Corp.) (the “Company”, “TrueNorth”) was incorporated under the laws of the State of Nevada on June 23, 2015 to offer planting and cultivation services to land owners in regards to the planting and cultivation of Aquilaria Subintegra & Aquilaria Sinensis trees. On February 15, 2017, we changed our name from Bosy Holdings Corp. to United Royale Holdings Corp. to facilitate our re-branding efforts and develop and enhance our business.

The Company’s products include a highly scalable, institutional-grade cloud platform called the Northern Shield that enables the rapid build and scale of decentralized applications across many industries. The Northern Shield is the convergence of Security, Blockchain, AI, and Big Data into a single platform we call Web 3.0. The Company has started to work with application development companies to adapt or build their application using the Northern Shield. The Northern Shield is offered as a Platform as a Service (PaaS) offering a complex and highly secured and managed system reducing the cost of industry scale application development for disruption in Healthcare, Fintech, AgTech, and Wellness. These industries are transforming to a decentralized architecture enabling the Northern Shield to disrupt the way business is done today. The Company has numerous engagements to build applications using the Northern Shield, allowing for highly secured and insured capability with a global scale running on the blockchain. In addition to offering the Northern Shield as a PaaS, we offer full application development to the business that has the disruptive idea but needs a strong technical partner to implement their decentralized vision. This contract software development service is offered on a fixed price basis based on the Statement of Work mutually agreed to in a services contract.

On April 7, 2021, Mr. Gary Bartholomew was appointed as the Director, Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer of the Company.

On October 4, 2021, the Company amended its Articles of Incorporation to (i) change its name to TrueNorth Quantum Inc. and (ii) designate its Series A Preferred Stock.

On October 20, 2021, the board of directors of the Company appointed Witold (Wit) Ostrenko as a director of the Company, and appointed Brad Herr as the Company’s Chief Financial Officer.

On November 8, 2021, the board of directors of the Company appointed William Douglas (Doug) Beynon and David Mironov as directors of the Company.

Results of Operation

For the three months ended September 30, 2021 and 2020

Revenues

We have not generated any revenue for the three months ended September 30, 2021 and 2020.

General and administrative expenses

We incurred a total of $47,395 and $17,044 general and administrative expenses during the three months ended September 30, 2021 and 2020 respectively. The general and administrative expenses are mainly comprised of Form 10-Q review fee, consulting fee, legal fee, transfer agent fee and Edgar filing fee. The increase of general and administrative expenses is due to an increase in professional fee.

Loss from discontinued operations

For the three months ended September 30, 2021 and 2020, loss from discontinued operations of $0 and $1,061 consisted of the results of operations of the disposed subsidiaries.

Net loss

For three months ended September 30, 2021 and 2020, we had generated no revenues. We incurred a total net loss of $47,395 and $18,105 for the three months ended September 30, 2021 and 2020, respectively.

For the nine months ended September 30, 2021 and 2020

Revenues

We have not generated any revenue for the nine months ended September 30, 2021 and 2020.

General and administrative expenses

We incurred a total of $72,631 and $86,880 general and administrative expenses during the nine months ended September 30, 2021 and 2020 respectively. The general and administrative expenses are mainly comprised of Form 10-Q review fee, consulting fee, legal fee, transfer agent fee and Edgar filing fee. The decrease of general and administrative expenses is due to a decrease in salary payout offset by an increase in professional fees.

Loss from discontinued operations

For the nine months ended September 30, 2021 and 2020, loss from discontinued operations of $8,062 and $3,437 consisted of the results of operations of the disposed subsidiaries and loss form disposal of subsidiaries of $8,361 and $0, respectively.

Net loss

For nine months ended September 30, 2021 and 2020, we had generated no revenues. We incurred a total net loss of $41,659 and net loss of $72,211 for the nine months ended September 30, 2021 and 2020 respectively.

Liquidity and Capital Resources

Cash Used in Operating Activities

For the nine months ended September 30, 2021 and 2020, the cash flows used in operating activities was $84,411 and $85,956 respectively. The cash used from operating activities for the nine months ended September 30, 2021 and 2020, was primarily attributed to net loss of $89,054 and $90,317, respectively.

Cash Used in Investing Activities

For the nine months ended September 30, 2021 and 2020, the Company used $0 and $4,548 for purchase of biological assets, respectively.

Cash Provided by Financing Activities

For the nine months ended September 30, 2021 and 2020, the cash flows provided by financial activities was $77,680 and $34,557 respectively, consists of advances from directors.

Off-balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders as of September 30, 2021.

Contractual Obligations

None.

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.

Use of Estimates

The preparation of 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 the financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

Item 3 Quantitative and Qualitative Disclosures About Market Risk.

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item.

Item 4 Controls and Procedures.

Evaluation of Disclosure Controls and Procedures:

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of September 30, 2021. This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2021, our disclosure controls and procedures were not effective due to the presence of material weaknesses in internal control over financial reporting.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. Management has identified the following material weaknesses which have caused management to conclude that, as of September 30, 2021 our disclosure controls and procedures were not effective: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines.

Changes in Internal Control over Financial Reporting:

There were no changes in our internal control over financial reporting during the quarter ending September 30, 2021, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

We know of no materials, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any beneficial shareholder are an adverse party or has a material interest adverse to us.

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information.

None.

ITEM 6. Exhibits

2.1		TrueNorth Canadian Exchange Agreement (2)
2.2		TrueNorth Non-Canadian Exchange Agreement (2)
3(i).1		Articles of Incorporation, as amended (1)
3(i).2		Certificate of Amendment (2)
3(ii).1		Bylaws, as amended (1)
10.1		TrueNorth Trust Agreement (2)
10.2		TrueNorth Support Agreement (2)
10.3		Incentive Stock Option Plan (2)
10.4		Deferred Stock Unit Plan (2)
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 and Chief Financial Officer.
101.INS*		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*		Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set.

* Filed herewith

** Furnished herewith

(1) Previously filed as an exhibit to the Company’s Form 8-K filed with SEC on February 15, 2018 and incorporated herein by reference.

(2) Previously filed as an exhibit to the Company’s Form 8-K filed with SEC on October 13, 2021 and incorporated herein by reference.

SIGNATURES

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

	TrueNorth Quantum Inc.

Date: November 24, 2021

	By:	*/s/ Gary Bartholomew*
	Title:	Chief Executive Officer, (Principal Executive Officer)

TrueNorth Quantum Inc. 10-Q