~~0001164888 KBPH:AmericaMember 2020-03-31~~

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM ~~10-Q/A~~10-Q

~~Amendment No. 1~~

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

EXCHANGE ACT OF 1934

For the quarterly period ended ~~June 30,~~ December 31, 2021

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

EXCHANGE ACT OF 1934

For the transition period from: _____________ to _____________

KYTO TECHNOLOGY AND LIFE SCIENCE, INC.

(Exact name of registrant as specified in its charter)

delaware	000-50390	65-1086538
(State or Other Jurisdiction	(Commission	(I.R.S. Employer
of Incorporation)	File Number)	Identification No.)

13050 Paloma Road, Los Altos Hills, CA 94022

(Address of Principal Executive Office) (Zip Code)

(650) 204 7896

(Registrant’s telephone number, including area code)

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

Title of each class		Trading Symbol		Exchange
Common stock		KBPH		OTC QB

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 (ss. 232.405 of this chapter) during the preceding 12 (or for such shorter period that the registrant was required to submit such files). ~~☐Yes~~ ☒ Yes ☐ No

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

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Yes ☒ No

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

13,287,621 ~~13,287,621~~Common Shares - ~~$.01~~$0.01 Par Value - as of ~~September 28, 2021~~February 18, 2022

~~EXPLANATORY NOTE~~

~~This~~ ~~Amendment No. 1~~ (the “Amendment”) to the Quarterly Report on Form 10-Q of KYTO TECHNOLOGY AND LIFE SCIENCE, INC (the “Company”) for the quarter ended June 30, 2021, originally filed with the Securities and Exchange Commission on October 01, 2021 (the “Original Form 10-Q”) is being filed to complete the filing by tagging the Original Form 10-Q for iXBRL which not originally included as a result of technical difficulties

~~KYTO~~Kyto Technology and Life Science, Inc.

For the quarterly period ended ~~June 30,~~December 31, 2021

INDEX

	PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	3

	Condensed Statements of ~~Asset~~Assets and Liabilities as of ~~June 30,~~December 31, 2021 (Unaudited) and March 31, 2021	3

	Unaudited Condensed Statements of Operations for the Three Months and Nine Months Ended ~~June 30,~~December 31, 2021 and 2020	4

	Unaudited Condensed Statements of Changes in Net Assets for the Three Months and Nine Months Ended ~~June 30,~~December 31, 2021 and 2020	5

	Unaudited Condensed Statements of Cash Flows for the ~~Three~~Nine Months Ended ~~June 30,~~December 31, 2021 and 2020	6

	~~Condensed Schedule of Investments as of June 30, 2021 (Unaudited) and March 31, 2021~~	7

	Condensed Schedule of Investments as of December 31, 2021 (Unaudited) and March 31, 2021	8

	Notes to Unaudited Interim Condensed Financial Statements	1213

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	2529

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	2933

Item 4.	Controls and Procedures.	2933

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings.	3035

Item 1A.	Risk Factors.	3035

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	3035

Item 3.	Defaults Upon Senior Securities.	3035

Item 4.	Mine Safety Disclosures	3035

Item 5.	Other Information	3035

Item 6.	Exhibits	3035

	~~Signatures~~	32
	Signatures	37

PART I - FINANCIAL INFORMATION

ITEM 1.

~~ITEM 1.~~

FINANCIAL STATEMENTS

Kyto Technology and Life Science, Inc.

Condensed ~~Statements~~Statement of Assets and Liabilities

	June 30,			March 31,			December 31,			March 31,
	2021			2021			2021			2021
	(Unaudited)						(Unaudited)
ASSETS
Investments at fair value (cost of $6,952,145 and $5,686,545, respectively)	$	8,140,007		$	6,821,407
Investments at fair value (cost of $8,926,469 and $5,686,545, respectively)							$	12,156,511		$	6,821,407
Cash		481,506			1,437,868			608,223			1,437,868
Deferred offering costs		170,889			169,891
Other assets								293,564			169,891
Total Assets	$	8,792,402		$	8,429,166		$	13,058,298		$	8,429,166

LIABILITIES

Liabilities
Accounts payable and accrued liabilities	$	182,951		$	193,141		$	63,675		$	193,141
Accrued liabilities - related parties		72,205			51,420			83,000			51,420
Common stock subscription liability		-			1,191,442			-			1,191,442
Total Liabilities		255,156			1,436,003			146,675			1,436,003

Commitments and Contingencies (Note 3)		-			-			-			-

Net Assets
Preferred stock authorized but not designated, $.01 par value 19,800,000 shares, NaN issued and outstanding as of June 30, 2021 and March 31, 2021, respectively		-			-
Series A preferred convertible stock, $.01 par value, 4,200,000 shares designated, 4,200,000 issued and outstanding as of June 30, 2021 and March 31, 2021, respectively		42,001			42,001
Series B preferred convertible stock, $0.01 par value, 6,000,000 shares designated, 4,320,156 and 3,628,906 issued and outstanding as of June 30, 2021 and March 31, 2021, respectively		43,202			36,289
Preferred stock authorized but not designated, $0.01 par value 16,800,000 shares, NaN issued or outstanding as of December 31, 2021 and March 31, 2021, respectively								-			-
Class A (including Class A-1 and A-2) preferred convertible stock, $0.01 par value, 4,200,000 shares designated, 4,200,000 issued and outstanding as of December 31, 2021 and March 31, 2021, respectively; aggregate liquidation preference of $6,720,000 at December 31, 2021 and March 31, 2021, respectively								42,001			42,001
Class B (including Class B-1, B-2 and B-3) preferred convertible stock, $0.01 par value, 9,000,000 shares designated, 8,087,656 and 3,628,906 issued and outstanding as of December 31, 2021 and March 31, 2021, respectively, aggregate liquidation preference of $6,951,945 at December 31, 2021 and $2,903,125 at March 31, 2021, respectively								80,877			36,289
Preferred stock, value		-			-
Common stock, $.01 par value, 40,000,000 shares authorized, 13,268,871 and 9,983,082 issued and outstanding as of June 30, 2021 and March 31 2021, respectively		132,689			99,831
Common stock, $0.01 par value, 40,000,000 shares authorized, 13,287,621 and 9,983,082 issued and outstanding as of December 31, 2021 and March 31 2021, respectively								132,876			99,831
Additional paid-in capital		41,610,332			39,772,228			44,630,564			39,772,228
Accumulated deficit		(33,290,978	)		(32,957,186	)		(31,974,695	)		(32,957,186	)

Total Net Assets		8,537,246			6,993,163			12,911,623			6,993,163

Total Liabilities and Net Assets	$	8,792,402		$	8,429,166		$	13,058,298		$	8,429,166

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

Kyto Technology and Life Science, Inc.

Condensed Statement of Operations

(Unaudited)

	2021			2020			2021			2020
	For the Three months ended December 31,						For the Nine months ended December 31,
	2021			2020			2021			2020

INVESTMENT INCOME

Interest and other income	$	-		$	5		$	-		$	505

Total investment income		-			5			-			505

EXPENSES
Professional fees		98,241			91,669			371,600			168,212
Other operating expenses		273,473			241,047			741,089			363,983
Total expenses		371,714			332,716			1,112,689			532,195

Net investment loss		(371,714	)		(332,711	)		(1,112,689	)		(531,690	)

Net change in unrealized gain on investments		691,864			328,694			2,095,180			806,942

Net increase (decrease) in net assets resulting from operations		320,150			(4,017	)		982,491			275,252

Less: dividends attributable to Class B-1, B-2 and B-3		(131,999 )			-			(482,693)			-
Less: dividends attributable to Class B-1, B-2 and B-3 Preferred Stock (see Note 2 (I))		(131,999	)		-			(482,693	)		-

Net increase (decrease) in net assets resulting from operations attributable to Common Shareholders	$	188,151		$	(4,017	)	$	499,798		$	275,252

Basic earnings per Common Share,
Net increase in net assets resulting from operations per common share	$	0.01		$	-		$	0.04		$	0.04

Weighted average common shares outstanding		13,287,621			8,528,007			13,273,038			6,737,152

Fully-diluted earnings per Common Share,
Net increase in net assets resulting from operations per common share	$	0.01		$	-		$	0.02		$	0.02

Weighted average common shares outstanding		23,516,038			19,272,128			22,400,260			17,142,683

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

Kyto Technology and Life Science, Inc.

Condensed ~~Statements~~Statement of ~~Operations~~Changes in Net Assets for the Three and Nine months ended December 31, 2021

(Unaudited)

1 2
For the three months ended June 30,
2021 2020
INVESTMENT INCOME

Interest and other income $ - $ -

Total investment income - -

EXPENSES
Professional fees 166,954 12,938
Other operating expenses 219,838 25,930

Total expenses 386,792 38,868

Net investment loss (386,792 ) (38,868 )

Net change in unrealized gain from investments 53,000 -

Net decrease in net assets resulting from operations $ (333,792 ) $ (38,868 )

Loss per Common Share, Basic and Fully diluted
Net decrease in net assets resulting from operations per common share $ (0.03 ) $ (0.01 )

Weighted average common shares outstanding 13,268,871 5,836,832

	Preferred A (Including Class A-1, A-2)		Preferred A Stock (Including Class A-1, A-2)		Preferred B (Including Class B-1, B-2, B-3)		Preferred B Stock (Including Class B-1, B-2, B-3)		Common		Common Stock		Additional Paid-in		Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Capital		Deficit			Total
Three months ended December 31, 2021
Balance, September 30, 2021		4,200,000	$	42,001		5,911,406	$	59,114		13,287,621	$	132,876	$	42,878,748	$	(32,294,845	)	$	10,817,894
Net increase in net assets resulting from operations		-		-		-		-		-		-		-		320,150			320,150
Sale of Class B-3 Preferred stock at $0.80 per share		-		-		2,176,250		21,763		-		-		1,719,237		-			1,741,000
Sale of Common stock
Sale of common stock $0.40 per share, shares
Exercise of stock options
Exercise of stock options, shares
Common stock issued for warrants and options exercise
Common stock issued for warrants and options exercise, shares
Compensation expense from stock options		-		-		-		-		-		-		32,579		-			32,579

Balance, December 31, 2021		4,200,000	$	42,001		8,087,656	$	80,877		13,287,621	$	132,876	$	44,630,564	$	(31,974,695	)	$	12,911,623

Nine months ended December 31, 2021
Balance, March 31, 2021		4,200,000	$	42,001		3,628,906	$	36,289		9,983,082	$	99,831	$	39,772,228	$	(32,957,186	)	$	6,993,163
Net increase in net assets resulting from operations		-		-		-		-		-		-		-		982,491			982,491
Sale of Class B-1 and B-3 Preferred stock at $0.80 per share		-		-		4,458,750		44,588		-		-		3,522,413		-			3,567,001
Sale of Common stock at $0.40 per share		-		-		-		-		3,285,789		32,858		1,281,459		-			1,314,317
Exercise of stock options		-		-		-		-		18,750		187		431		-			618
Compensation expense from stock options		-		-		-		-		-		-		54,033		-			54,033

Balance, December 31, 2021		4,200,000	$	42,001		8,087,656	$	80,877		13,287,621	$	132,876	$	44,630,564	$	(31,974,695	)	$	12,911,623

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

Kyto Technology and Life Science, Inc.

Condensed ~~Statements~~Statement of Changes in Net Assets for the Three and Nine months ended December 31, 2020

~~( Unaudited)~~(Unaudited)

Preferred A Preferred B Common Additional
Preferred A
Stock
Preferred B Stock Common Stock Paid-in Accumulated
Shares Amount Shares Amount Shares Amount Capital Deficit Total
Balance, March 31, 2020 4,200,000 $ 42,001 812,500 $ 8,125 5,836,832 $ 58,368 $ 35,943,369 $ (33,384,252 ) $ 2,667,611
Net decrease in net assets resulting from operations (38,868 ) (38,868 )
Sale of Series B Preferred stock at $0.80 per share

-
468,750 4,063 - 370,937 375,000
Sale of common stock at $0.40 per share
Sale of common stock at $0.40 per share, shares
Compensation expense from stock options 1,048 1,048

Balance, June 30, 2020 4,200,000 $ 42,001 1,281,250 $ 12,188 5,836,832 $ 58,368 $ 36,315,354 $ (33,423,120 ) $ 3,004,791

Balance, March 31, 2021 4,200,000 $ 42,001 3,628,906 $ 36,289 9,983,082 $ 99,831 $ 39,772,228 $ (32,957,186 ) $ 6,993,163
Balance 4,200,000 $ 42,001 3,628,906 $ 36,289 9,983,082 $ 99,831 $ 39,772,228 $ (32,957,186 ) $ 6,993,163
Net decrease in net assets resulting from operations (333,792 ) (333,792 )
Sale of Series B Preferred stock at $0.80 per share

-
691,250 6,913 546,089 553,002
Sale of common stock at $0.40 per share 3,285,789 32,858 1,281,458 1,314,316
Compensation expense from stock options 10,557 10,557

Balance, June 30, 2021 4,200,000 $ 42,001 4,320,156 $ 43,202 13,268,871 $ 132,689 $ 41,610,332 $ (33,290,978 ) $ 8,537,246
Balance 4,200,000 $ 42,001 4,320,156 $ 43,202 13,268,871 $ 132,689 $ 41,610,332 $ (33,290,978 ) $ 8,537,246

	Preferred A		Preferred A Shares		Preferred B		Preferred B Shares		Common		Common Stock		Additional Paid-in		Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Capital		Deficit			Total

Three months ended December 31, 2020
Balance, September 30, 2020		4,200,000	$	42,001		2,337,500	$	23,375		5,836,832	$	58,368	$	37,211,970	$	(33,104,983	)	$	4,230,731
Net decrease in net assets resulting from operations		-		-		-		-		-		-		-		(4,017	)		(4,017	)
Sale of Class B Preferred stock at $0.80 per share		-		-		753,906		7,539		-		-		595,586		-			603,125
Common stock issued for warrants and options exercise		-		-		-		-		3,965,000		39,650		1,526,580		-			1,566,230
Compensation expense from stock options		-		-		-		-		-		-		3,474		-			3,474

Balance, December 31, 2020		4,200,000	$	42,001		3,091,406	$	30,914		9,801,832	$	98,018	$	39,337,610	$	(33,109,000	)	$	6,399,543

Nine months ended December 31, 2020
Balance, March 31, 2020		4,200,000	$	42,001		812,500	$	8,125		5,836,832	$	58,368	$	35,943,369	$	(33,384,252	)	$	2,667,611
Net increase in net assets resulting from operations		-		-		-		-		-		-		-		275,252			275,252
Net increase (decrease) in net assets resulting from operations		-		-		-		-		-		-		-		275,252			275,252
Sale of Class B Preferred stock at $0.80 per share		-		-		2,278,906		22,789		-		-		1,850,336		-			1,873,125
Sale of Class B, B-1 and B-3 Preferred stock		-		-		2,278,906		22,789		-		-		1,850,336		-			1,873,125
Common stock issued for warrants and options exercise		-		-		-		-		3,965,000		39,650		1,526,579		-			1,566,229
Compensation expense from stock options		-		-		-		-		-		-		17,326		-			17,326

Balance, December 31, 2020		4,200,000	$	42,001		3,091,406	$	30,914		9,801,832	$	98,018	$	39,337,610	$	(33,109,000	)	$	6,399,543

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

Kyto Technology and Life Science, Inc.

Condensed ~~Statements~~Statement of Cash Flows

(Unaudited)

							2021			2020
		1			2		Nine months months ended
	Three months ended June 30,						December 31,
	2021			2020			2021			2020

Operating activities:
Net decrease in net assets resulting from operations	$	(333,792	)	$	(38,868	)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash used in operating activities
Net increase in net assets resulting from operations							$	982,491		$	275,252
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities
Net change in unrealized gain on investments		(53,000	)		-			(2,095,180	)		(806,942	)
Stock option compensation expenses		10,557			1,048
Stock option compensation expense								54,033			17,326
Change in operating assets and liabilities
Other current assets		-			500
Deferred fundraising expenses		(998	)		-
Other assets								(123,673	)		500
Accounts payable and accrued liabilities		(10,190	)		2,643			(129,466	)		47,708
Accrued liabilities to related parties		20,785			2,250			31,580			-
Purchase of investments		(1,265,600	)		(250,000	)
Purchases of investments								(3,328,478	)		(2,410,000	)
Proceeds from sale of investments								88,554			-
Net cash used in operating activities		(1,632,238	)		(282,427	)		(4,520,139	)		(2,876,156	)

Cash flows from financing activities:
Sale of Common Stock		122,874			-
Sale of Series B Preferred stock		553,002			375,000
Sale of Common stock in connection with preference rights (see Note 6)								122,875			-
Sale of Common stock from exercise of warrants and stock options								618			1,566,229
Sale of Class B-1 Preferred stock								1,626,000			1,873,125
Sale of Class B-3 Preferred stock								1,941,001			-
Deferred fundraising expenses								-			(36,409	)
Receipt of SBA loan								-			1,000
Advances from related party								-			2,250
Net cash provided by financing activities		675,876			375,000			3,690,494			3,406,195

Net increase/(decrease) in cash		(956,362	)		92,573			(829,645	)		530,039

Cash, beginning of period		1,437,868			33,756			1,437,868			33,756

Cash, end of period	$	481,506		$	126,329		$	608,223		$	563,795

Supplemental cash flow information
Interest paid	$	-		$	-
Taxes paid	$	800		$	800		$	800		$	800
Supplemental schedule of noncash financing activities:
Conversion of common stock subscription liability to common stock	$	1,191,442		$	-		$	1,191,442		$	-

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

~~Kyto Technology and Life Science, Inc.~~

~~Condensed Schedule of Investments as of June 30, 2021~~

~~(Unaudited)~~

Portfolio Company Industry Investment Cost Fair value
% of net
assets (a)

Convertible loan investments
Abfero Pharmaceuticals Inc Life science Convertible Note, 6% due, December 2022 $ 100,000 $ 101,118 1.2%
Abfero Pharmaceuticals Inc Life science Convertible Note, 6% due, December 2022 $ 100,000 $ 101,118 1.2%
Achelios Therapeutics Inc. Life science Convertible Note, 8% due, December 2021 100,000 123,167 1.4%
Achelios Therapeutics Inc. Life science Convertible Note, 8% due December 2021 25,000 29,532 0.3%
Achelios Therapeutics Inc. Life science Convertible Note, 8% due December 2021 50,000 55,578 0.7%
Achelios Therapeutics Inc. Life science Convertible Note Sidecar, 25% discount. No interest 50,000 50,000 0.6%
AOA DX Inc Life science Convertible Note, 4%, due May 2024 100,000 100,559 1.2%
Avisi Technologies Inc Life science Convertible Note, 8% due July 2022 50,000 53,671 0.6%
Basepaws Inc Life science Convertible Note, 1% due April 2020 50,000 162,444 1.9%
Beam Semiconductor Inc Technology Convertible Note, 8% due April 2022 150,000 174,033 2.0%
Beam Semiconductor Inc Technology Convertible Note, 8% due March 2021 50,000 55,282 0.6%
Beam Semiconductor Inc Technology Convertible Note, 8% due March 2022 100,000 101,688 1.2%
Corinnova Inc Life science Convertible Note, 6% due December 2024 100,000 103,699 1.2%
Cyberdontics Inc Life science Convertible Note, 8% due September 2022 30,000 34,366 0.4%
Cyberdontics Inc Life science Convertible Note, 8% due February 2023 35,000 38,751 0.5%
Cyberdontics Inc Life science Convertible Note, 0% no due date 35,000 36,995 0.4%
Deep Blue Medical Advances Inc Life science Convertible Note, 6% due June 2022 50,000 51,595 0.6%
Every Key Inc Technology Convertible Note, 5% due December 2023 100,000 107,767 1.3%
Identical Inc Life science Convertible Note, 2% due May 2022 100,000 101,271 1.2%
INBay Technology Inc Technology Convertible Note, 12% due October 2020 50,000 66,077 0.8%
INBay Technology Inc Technology Convertible Note, 12% due July 2021 30,000 37,121 0.4%
INBay Technology Inc Technology Convertible Note, 12% due February 2022 50,000 58,137 0.7%
INBay Technology Inc Technology Convertible Note, 12% due December 2022 40,000 42,748 0.5%
INBay Technology Inc Technology Convertible Note, 12% due December 2023 50,000 51,414 0.6%
Iris R&D Group Inc Technology Convertible Note, 8% May 2023 50,000 50,438 0.6%
Kiana Analytics Inc Technology Convertible Note, 3% December 2022 100,000 101,570 1.2%
Kitotech Medical Inc Life science Convertible Note, 6% due December 2020 100,000 244,629 2.9%
Kitotech Medical Inc Life science Convertible Note, 6% due November 2022 75,000 84,761 1.0%
Lifewave Biomedical Inc Life science Convertible Note, 6% due December 2020 30,000 33,279 0.4%
Lifewave Biomedical Inc Life science Convertible Note, 6% due December 2020 70,000 75,857 0.9%
Lifewave Biomedical Inc Life science Convertible Note, 6% due December 2021 50,000 50,403 0.6%
mmTron Inc Technology Convertible Note, 4% due April 2023 100,000 100,022 1.2%
Navaux Inc Life science Convertible Note, 6% due December 2023 60,000 61,933 0.7%
Neuro42 Inc. Life science Convertible Note, 8% due December 2023 50,000 51,556 0.6%
Octagon Therapeutics Inc Life science Convertible Note, 5% due June 2021 50,000 51,719 0.6%
Octagon Therapeutics Inc Life science Convertible Note, 5% due June 2021 50,000 51,589 0.6%
Perikinetics Inc Life science Convertible Note, 6% due May 2022 100,000 103,814 1.2%
Preview Medical Inc Life science Convertible Note, 7% due January 2023 100,000 103,184 1.2%
SageMedic Corp Life science Convertible Note, 8% April 2021 plus warrants 50,000 58,877 0.7%
SageMedic Corp Life science Convertible Note, 8% December 2022 plus warrants 75,000 78,436 0.9%
Sensing Electromagnetic Plus Corp Technology Convertible Note, Fully reserved 50,000 1 0.0%
Sensing Electromagnetic Plus Corp Technology Convertible Note, Fully reserved 11,048 1 0.0%
Single Pass Inc Life science Convertible Note, 6% April 2024 50,000 50,214 0.6%
Valfix Medical Inc Life science Convertible Note, 8% December 2021 50,000 53,507 0.6%
Xpan Inc Life science Convertible Note, 8% due March 2022 50,000 55,293 0.6%
Xpan Inc Life science Convertible Note, 8% due June 2022 25,000 27,044 0.3%
Xpan Inc Life science Convertible Note, 8% due June 2022 25,000 27,035 0.3%
Total convertible loan investments $ 2,866,048 $ 3,252,175 38.1%
United States $ 2,046,048 $ 2,342,246 27.4%
Canada 470,000 525,419 6.2%
Rest of World 350,000 384,510 4.5%
Total convertible loan investments $ 2,866,048 $ 3,252,175 38.1%

~~Continued on next page~~

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

~~Continued from previous page~~

~~Kyto Technology and Life Science, Inc.~~

~~Condensed Schedule of Investments as of June 30, 2021~~

~~(Unaudited)~~

Portfolio Company Industry Investment Cost Fair value % of net assets (a)
Preferred stock investments
Altis Biosystems Life science 22,028 shares of Series Seed Preferred $ 50,000 $ 50,000 0.6%
Astrocyte Pharmaceuticals Inc Life science 260,756 shares of Series A Preferred 100,000 104,778 1.2%
Cnote Group, Inc Fintech 84,655 shares of series Seed-2 Preferred (converted SAFE) 51,500 59,783 0.7%
Cnote Group, Inc Fintech 93,807 shares of Series Seed-3 Preferred (converted note) 50,000 66,247 0.8%
Colabs Inc Life science 147,058 shares of Series A-1 Preferred 50,000 50,000 0.6%
Connectus Services Ltd Technology 31,348 shares of Series Seed Preferred 100,000 100,000 1.2%
Deep Blue Medical Advances Inc Life science 10,474 shares of Series A Preferred 49,996 49,996 0.6%
Eumentis Thereapeutics Inc Life science 85,009 shares of Series A Preferred 100,000 100,000 1.2%
FemtoDX Inc Life science 42,436 shares of Series A Preferred 100,000 159,835 1.9%
Healionics Corporation Life science 35,075 of Series A-1 Preferred 100,000 100,000 1.2%
i-Lumen Scientific Inc. Life science 50,000 shares of Series A Preferred plus warrants 50,000 50,000 0.6%
i-Lumen Scientific Inc. Life science 50,000 shares of Series A Preferred plus warrants 50,000 50,000 0.6%
Inhalon Biopharma Inc Life science 18,843 shares of Series Seed Preferred 99,997 99,997 1.2%
Light Line Medical Inc Life science 62,849 shares of Series Seed Preferred (converted note) 30,000 38,031 0.4%
Light Line Medical Inc Life science 141,871 shares of Series Seed Preferred (converted note) 70,000 106,049 1.2%
Light Line Medical Inc Life science 40,323 shares of Series Seed preferred 25,000 25,000 0.3%
Light Line Medical Inc Life science 72,464 shares of Series A Preferred plus warants 50,000 50,000 0.6%
Lowell Therapeutics Inc Life science 20,000 shares of Series A Preferred 50,000 50,000 0.6%
Lowell Therapeutics Inc Life science 20,000 shares of Series A Preferred 50,000 50,000 0.6%
Makani Science Inc Life science 172,413 shares of Series Seed Preferred 50,000 50,000 0.6%
Micronic Technologies Inc Technology 51,929 shares of Series Seed-1 Preferred plus warrants 100,000 100,000 1.2%
Neuroflow Inc Life science 98,684 shares of Series Seed -2 Preferred 150,000 224,998 2.6%
Neuroflow Inc Life science 20,429 shares of Series B Preferred 100,000 212,497 2.5%
New View Surgical, Inc. Life science 53,825 shares of Series A-1 Preferred 75,000 75,000 0.9%
Orion Biotechnology Inc Life science 5,824 shares of Series A Preferred 100,000 100,000 1.2%
Otomagnetics Inc Life science 16,538 shares of Series A-1 Preferred plus warrants 100,000 100,000 1.2%
Promaxo Life science 104,248 shares of Series B-1 Preferred, (converted note) 250,000 531,738 6.2%
Seal Rock Therapeutics, Inc. Life science 68,075 shares of Series Seed Preferred, (converted note) 78,000 80,329 0.9%
Shyft (FKA Crater Group Inc) Technology 42,657 shares of Series A-1 Preferred (converted note) 51,500 97,940 1.1%
Shyft (FKA Crater Group Inc) Technology 28,147 shares of Series A Preferred (converted note) 50,000 64,626 0.8%
Shyft (FKA Crater Group Inc) Technology 21,774 shares of Series A-1 Preferred (plus warrants) 50,000 50,000 0.6%
Trellis Bioscience LLC Life science 50,000 shares of Series B Preferred plus warrants 50,000 50,000 0.6%
Trellis Bioscience LLC Life science 50,000 shares of Series B Preferred plus warrants 50,000 50,000 0.6%
Trellis Bioscience LLC Life science 100,000 shares of Series B Preferred plus warrants 100,000 100,000 1.2%
Valfix Medical Inc Life science 27,217 shares of Series Seed Preferred 50,000 50,000 0.6%
Visgenx Inc Life science 7,833 shares of Series Seed-1 Preferred (converted note) 30,000 46,352 0.5%
Visgenx Inc Life science 4,132 shares of Series Seed Preferred (converted note) 25,000 25,648 0.3%
Visgenx Inc Life science 2,480 shares of Series Seed Preferred (converted note) 15,003 15,393 0.2%
Total Preferred stock investments $ 2,700,997 $ 3,384,237 39.6%
United States $ 2,450,997 $ 3,134,237 36.7%
Canada 200,000 200,000 2.3%
Rest of World 50,000 50,000 0.6%
Total Preferred stock investments $ 2,700,997 $ 3,384,237 39.6%

Common stock investments
BendaRX Corp Life science 12,500 Common shares $ 100,000 $ 150,000 1.8%
BendaRX Corp Life science 12,500 Common shares 100,000 150,000 1.8%
Boardwalk Tech Technology 75,000 Common shares 65,600 65,600 0.8%
Boardwalk Tech Technology 150,000 Common shares 73,500 91,995 1.1%
Sanaby Health Sponsor LLC Life science 50,000 Common shares 100,000 100,000 1.2%
Total Common stock investments $ 439,100 $ 557,595 6.5%
United States $ 239,100 $ 257,595 3.0%
Canada 200,000 300,000 3.5%
Rest of World - - 0.0%
Total Common stock investments $ 439,100 $ 557,595 6.5%

SAFE investments
Infinidome Ltd Technology SAFE $ 50,000 $ 50,000 0.6%
Infinidome Ltd Technology SAFE 50,000 50,000 0.6%
Madorra Inc Life science SAFE 100,000 100,000 1.2%
Mitre Medical Corp Life science SAFE 75,000 75,000 0.9%
Mitre Medical Corp Life science SAFE 50,000 50,000 0.6%
Orion Biotechnology Inc. Life science SAFE 100,000 100,000 1.2%
Total SAFE investments $ 425,000 $ 425,000 5.0%
United States 125,000 125,000 1.5%
Canada 100,000 100,000 1.2%
Rest of World 200,000 200,000 2.3%
Total SAFE investments $ 425,000 $ 425,000 5.0%

~~Continued on next page~~

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

~~Continued from previous page~~

Kyto Technology and Life Science, Inc.

~~Condensed~~ Schedule of Investments as of ~~June 30, 2021~~

~~(Unaudited)~~

Portfolio Company Industry Investment Cost Fair value % of net assets (a)
Other investments
Enduralock LLC Technology 34.1 Series A-1 Ownership Units $ 30,000 $ 30,000 0.4%
Enduralock LLC Technology 39.7 Series A-1 Ownership Units 35,000 35,000 0.4%
Exodos Life Sciences LP Life science Class A-1 Preferred Ownership Units 206,000 206,000 2.4%
Green Sun Medical LLC Life science 2,193 Class A-1 Ownership units 50,000 50,000 0.6%
Green Sun Medical LLC Life science 1,096 Class A-1 Ownership units 25,000 25,000 0.3%
Green Sun Medical LLC Life science 1,096 Class A-1 Ownership units 25,000 25,000 0.3%
Green Sun Medical LLC Life science 4,386 Class A-1 Ownership units 100,000 100,000 1.2%
Riso Capital Fund I, LP Technology Ownership units 50,000 50,000 0.6%
Total other investments $ 521,000 $ 521,000 6.1%
United States $ 521,000 $ 521,000 6.1%
Canada - - 0.0%
Rest of World - - 0.0%
Total other investments $ 521,000 $ 521,000 6.1%

Total investments
United States 5,382,145 6,380,078 74.7%
Canada 970,000 1,125,419 13.2%
Rest of World 600,000 634,510 7.4%
Total other investments $ 6,952,145 $ 8,140,007 95.3%

(a) based on total net assets of $ 8,537,246

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

~~Kyto Technology and Life Science, Inc.~~

~~Condensed Schedule of Investments as of March~~December 31, 2021

(Unaudited)

Portfolio Company Industry Investment Cost Fair value % of net assets (b)
Convertible loan investments
Achelios Therapeutics Inc. Life science Convertible Note, 8% due, December 2021 $ 100,000 �� $ 121,173 1.7%
Achelios Therapeutics Inc. Life science Convertible Note, 8% due December 2021 25,000 29,033 0.4%
Achelios Therapeutics Inc. Life science Convertible Note, 8% due December 2021 50,000 54,581 0.8%
Avisi Technologies Inc Life science Convertible Note, 8% due July 2022 50,000 52,674 0.8%
Basepaws Inc Life science Convertible Note, 1% due April 2020 50,000 162,319 2.3%
Beam Semiconductor Inc Technology Convertible Note, 8% due April 2022 150,000 171,041 2.4%
Beam Semiconductor Inc Technology Convertible Note, 8% due March 2021 50,000 54,285 0.8%
Corinnova Inc Life science Convertible Note, 6% due December 2024 100,000 102,318 1.5%
Cyberdontics Inc Life science Convertible Note, 8% due September 2022 30,000 33,768 0.5%
Cyberdontics Inc Life science Convertible Note, 8% due February 2023 35,000 38,053 0.5%
Cyberdontics Inc Life science Convertible Note, 0% no due date 35,000 36,296 0.5%
Deep Blue Medical Advances Inc Life science Convertible Note, 6% due June 2022 50,000 50,863 0.7%
Every Key Inc Technology Convertible Note, 5% due December 2023 100,000 106,521 1.5%
Identical Inc Life science Convertible Note, 2% due May 2022 100,000 100,844 1.4%
INBay Technology Inc Technology Convertible Note, 12% due October 2020 50,000 59,721 0.9%
INBay Technology Inc Technology Convertible Note, 12% due July 2021 30,000 34,149 0.5%
INBay Technology Inc Technology Convertible Note, 12% due February 2022 50,000 56,641 0.8%
INBay Technology Inc Technology Convertible Note, 12% due December 2022 40,000 41,552 0.6%
Kiana Analytics Inc Technology Convertible Note, 3% December 2022 100,000 100,847 1.4%
Kitotech Medical Inc Life science Convertible Note, 6% due December 2020 100,000 243,133 3.5%
Kitotech Medical Inc Life science Convertible Note, 6% due November 2022 75,000 83,738 1.2%
Lifewave Biomedical Inc Life science Convertible Note, 6% due December 2020 30,000 32,831 0.5%
Lifewave Biomedical Inc Life science Convertible Note, 6% due December 2020 70,000 74,810 1.1%
Navaux Inc Life science Convertible Note, 6% due December 2023 60,000 61,036 0.9%
Neuro42 Inc. Life science Convertible Note, 8% due December 2023 50,000 50,559 0.7%
Octagon Therapeutics Inc Life science Convertible Note, 5% due June 2021 50,000 51,110 0.7%
Octagon Therapeutics Inc Life science Convertible Note, 5% due June 2021 50,000 50,966 0.7%
Perikinetics Inc Life science Convertible Note, 6% due May 2022 100,000 102,318 1.5%
Preview Medical Inc Life science Convertible Note, 7% due January 2023 100,000 101,918 1.5%
SageMedic Corp Life science Convertible Note, 8% April 2021 plus warrants 50,000 57,879 0.8%
SageMedic Corp Life science Convertible Note, 8% December 2022 plus warrants 75,000 77,088 1.1%
Sensing Electromagnetic Plus Corp Technology Convertible Note, Fully reserved 50,000 1 0.0%
Sensing Electromagnetic Plus Corp Technology Convertible Note, Fully reserved 11,048 1 0.0%
Valfix Medical Inc Life science Convertible Note, 8% December 2021 50,000 52,510 0.8%
Xpan Inc Life science Convertible Note, 8% due March 2022 50,000 54,296 0.8%
Xpan Inc Life science Convertible Note, 8% due June 2022 25,000 26,545 0.4%
Xpan Inc Life science Convertible Note, 8% due June 2022 25,000 26,540 0.4%
Total Convertible loan investments $ 2,216,048 $ 2,553,954 36.5%
United States $ 1,596,048 $ 1,868,557 26.7%
Canada 370,000 407,561 5.8%
Rest of World 250,000 277,836 4.0%
Total Convertible loan investments $ 2,216,048 $ 2,553,954 36.5%

	Portfolio Company		Industry	Investment	Cost		Fair value		% of net assets (a)
Convertible loan investments
	Abfero Pharmaceuticals Inc		Life science	Convertible Note, 6% due, December 2022	$	11,447	$	15,589		0.1	%
( i )	Achelios Therapeutics Inc.		Life science	Convertible Note, 8% due, December 2021		100,000		127,200		1.0	%
( i )	Achelios Therapeutics Inc.		Life science	Convertible Note, 8% due December 2021		25,000		30,540		0.2	%
( i )	Achelios Therapeutics Inc.		Life science	Convertible Note, 8% due December 2021		50,000		57,595		0.4	%
( i )	Achelios Therapeutics Inc.		Life science	Convertible Note Sidecar, 25% discount. No interest		50,000		50,000		0.4	%
	AOA DX Inc		Life science	Convertible Note, 4%, due May 2024		100,000		102,575		0.8	%
	Avisi Technologies Inc		Life science	Convertible Note, 8% due July 2022		50,000		55,688		0.4	%
	Basepaws Inc		Life science	Convertible Note, 1% due April 2020		50,000		244,980		1.9	%
	Basepaws Inc		Life science	Convertible Note, 6% due October 2023		150,000		150,000		1.2	%
( i )	Beam Semiconductor Inc	*	Technology	Convertible Note, 8% due April 2022		150,000		180,082		1.4	%
( i )	Beam Semiconductor Inc	*	Technology	Convertible Note, 8% due March 2021		50,000		57,299		0.4	%
( i )	Beam Semiconductor Inc	*	Technology	Convertible Note, 8% due March 2022		100,000		105,721		0.8	%
	CoLabs Inc		Life science	Convertible Note, 6% due February 2023		50,000		51,060		0.4	%
	Corinnova Inc		Life science	Convertible Note, 6% due December 2024		100,000		106,723		0.8	%
	Corinnova Inc		Life science	Convertible Note, 6% due December 2024		50,000		50,921		0.4	%
*	Cyberdontics Inc	*	Life science	Convertible Note, 8% due September 2022		30,000		71,733		0.6	%
*	Cyberdontics Inc	*	Life science	Convertible Note, 8% due February 2023		35,000		83,689		0.6	%
*	Cyberdontics Inc	*	Life science	Convertible Note, 0% no due date		35,000		35,000		0.3	%
	Deep Blue Medical Advances Inc		Life science	Convertible Note, 6% due June 2022		50,000		53,107		0.4	%
	Deep Blue Medical Advances Inc		Life science	Convertible Note, 6% due June 2022		50,000		50,181		0.4	%
	Every Key Inc		Technology	Convertible Note, 5% due December 2023		100,000		110,288		0.9	%
	Femto DX Inc.		Life science	Convertible Note, 12% due December 2022		100,000		100,526		0.8	%
	Identical Inc		Life science	Convertible Note, 2% due May 2022		100,000		102,279		0.8	%
( i )*	INBay Technology Inc	*	Technology	Convertible Note, 12% due October 2020		50,000		69,101		0.5	%
( i )*	INBay Technology Inc	*	Technology	Convertible Note, 12% due July 2021		30,000		38,936		0.3	%
( i )*	INBay Technology Inc	*	Technology	Convertible Note, 12% due February 2022		50,000		61,162		0.5	%
( i )*	INBay Technology Inc	*	Technology	Convertible Note, 12% due December 2022		40,000		45,168		0.3	%
( i )*	INBay Technology Inc	*	Technology	Convertible Note, 12% due December 2023		50,000		54,437		0.4	%
( i )*	INBay Technology Inc	*	Technology	Convertible Note, 12% due December 2023		25,000		25,001		0.2	%
*	Iris R&D Group Inc	*	Technology	Convertible Note, 8% May 2023		50,000		52,455		0.4	%
	Kiana Analytics Inc		Technology	Convertible Note, 3% December 2022		100,000		103,082		0.8	%
	Kitotech Medical Inc		Life science	Convertible Note, 6% due December 2020		100,000		247,654		1.9	%
	Kitotech Medical Inc		Life science	Convertible Note, 6% due November 2022		75,000		87,030		0.7	%
	Lifewave Biomedical Inc		Life science	Convertible Note, 6% due December 2020		30,000		34,187		0.3	%
	Lifewave Biomedical Inc		Life science	Convertible Note, 6% due December 2020		70,000		77,974		0.6	%
	Lifewave Biomedical Inc		Life science	Convertible Note, 6% due December 2021		50,000		51,915		0.4	%
	Lowell Therapeutics Inc		Life science	Convertible Note, 8% no due date		27,491		28,509		0.2	%
	mmTron Inc		Technology	Convertible Note, 4% due April 2023		100,000		102,038		0.8	%
	Navaux Inc		Life science	Convertible Note, 6% due December 2023		60,000		63,748		0.5	%
	Neuro42 Inc.		Life science	Convertible Note, 8% due December 2023		50,000		53,573		0.4	%
	Neuro42 Inc.		Life science	Convertible Note, 5% due November 2023		150,000		150,801		1.2	%
	Octagon Therapeutics Inc		Life science	Convertible Note, 5% due June 2021		50,000		52,979		0.4	%
	Octagon Therapeutics Inc		Life science	Convertible Note, 5% due June 2021		50,000		52,849		0.4	%
	Perikinetics Inc		Life science	Convertible Note, 6% due May 2022		100,000		106,838		0.8	%
	Preview Medical Inc		Life science	Convertible Note, 7% due May 2022		50,000		50,278		0.4	%
	Preview Medical Inc		Life science	Convertible Note, 7% due January 2023		100,000		106,712		0.8	%
	Promaxo Inc		Life science	Convertible note, 5% due July 2022		100,000		185,136		1.4	%
	Rheos Inc		Life science	Convertible note, 8% due August 2026		100,000		103,090		0.8	%
	Saccharo Inc		Life science	Convertible note, 7% due September 2022		50,000		51,697		0.4	%
	SageMedic Corp		Life science	Convertible Note, 8% April 2021 plus warrants		50,000		60,893		0.5	%
	SageMedic Corp		Life science	Convertible Note, 8% December 2022 plus warrants		75,000		81,460		0.6	%
	Seal Rock Therapeutics Inc		Life science	Convertible Note , 6% due June 2023		100,000		100,000		0.8	%
	Sensing Electromagnetic Plus Corp		Technology	Convertible Note, Fully reserved		50,000		1		0.0	%
	Sensing Electromagnetic Plus Corp		Technology	Convertible Note, Fully reserved		11,048		1		0.0	%
	Shyft (FKA Crater Group Inc)		Technology	Convertible Note, 6% due April 2023		100,000		100,000		0.8	%
	Single Pass Inc		Life science	Convertible Note, 6% April 2024		50,000		51,726		0.4	%
*	Valfix Medical Inc	*	Life science	Convertible Note, 8% December 2021		50,000		123,160		1.0	%
*	Xpan Inc	*	Life science	Convertible Note, 8% due March 2022		50,000		57,310		0.4	%
*	Xpan Inc	*	Life science	Convertible Note, 8% due June 2022		25,000		28,052		0.2	%
*	Xpan Inc	*	Life science	Convertible Note, 8% due June 2022		25,000		28,047		0.2	%
Total Convertible loan investments					$	3,879,986	$	4,679,776		36.2	%
	United States				$	3,034,986	$	3,563,423		27.6	%
	Canada					495,000		650,091		5.0	%
	Rest of World					350,000		466,262		3.6	%
Total Convertible loan investments					$	3,879,986	$	4,679,776		36.2	%

Continued onto next page

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

~~Continued from previous page~~

Kyto Technology and Life Science, Inc.

~~Condensed~~ Schedule of Investments as of ~~March~~December 31, 2021 ~~- continued~~

(Unaudited)

Preferred stock investments
Altis Biosystems Life science 22,028 shares of Series Seed Preferred $ 50,000 $ 50,000 0.7%
Astrocyte Pharmaceuticals Inc Life science 260,756 shares of Series A Preferred 100,000 100,000 1.4%
Cnote Group, Inc Fintech 84,655 shares of series Seed-2 Preferred (converted SAFE) 51,500 59,783 0.9%
Cnote Group, Inc Fintech 93,807 shares of Series Seed-3 Preferred (converted note) 50,000 66,247 0.9%
Colabs Inc Life science 147,058 shares of Series A-1 Preferred 50,000 50,000 0.7%
Connectus Services Ltd Technology 31,348 shares of Series Seed Preferred 100,000 100,000 1.4%
Deep Blue Medical Advances Inc Life science 10,474 shares of Series A Preferred 49,997 49,997 0.7%
Eumentis Thereapeutics Inc Life science 85,009 shares of Series A Preferred 100,000 100,000 1.4%
FemtoDX Inc Life science 42,436 shares of Series A Preferred 100,000 159,835 2.3%
i-Lumen Scientific Inc. Life science 50,000 shares of Series A Preferred plus warrants 50,000 50,000 0.7%
i-Lumen Scientific Inc. Life science 50,000 shares of Series A Preferred plus warrants 50,000 50,000 0.7%
Inhalon Biopharma Inc Life science 18,843 shares of Series Seed Preferred 99,997 99,997 1.4%
Light Line Medical Inc Life science 62,849 shares of Series Seed Preferred (converted note) 30,000 38,031 0.5%
Light Line Medical Inc Life science 141,871 shares of Series Seed Preferred (converted note) 70,000 106,049 1.5%
Light Line Medical Inc Life science 40,323 shares of Series Seed preferred 25,000 25,000 0.4%
Light Line Medical Inc Life science 72,464 shares of Series A Preferred plus warants 50,000 50,000 0.7%
Lowell Therapeutics Inc Life science 20,000 shares of Series A Preferred 50,000 50,000 0.7%
Lowell Therapeutics Inc Life science 20,000 shares of Series A Preferred 50,000 50,000 0.7%
Micronic Technologies Inc Technology 51,929 shares of Series Seed-1 Preferred plus warrants 100,000 100,000 1.4%
Neuroflow Inc Life science 98,684 shares of Series Seed -2 Preferred 150,000 224,998 3.2%
Neuroflow Inc Life science 20,429 shares of Series B Preferred 100,000 212,497 3.0%
New View Surgical, Inc. Life science 53,825 shares of Series A-1 Preferred 75,000 75,000 1.1%
Otomagnetics Inc Life science 16,538 shares of Series A-1 Preferred plus warrants 100,000 100,000 1.4%
Promaxo Life science 104,248 shares of Series B-1 Preferred, (converted note) 250,000 531,738 7.6%
Seal Rock Therapeutics, Inc. Life science 68,075 shares of Series Seed Preferred, (converted note) 78,000 80,329 1.1%
Shyft (FKA Crater Group Inc) Technology 42,657 shares of Series A-1 Preferred 51,500 97,940 1.4%
Shyft (FKA Crater Group Inc) Technology 28,147 shares of Series A Preferred (converted note) 50,000 64,626 0.9%
Shyft (FKA Crater Group Inc) Technology 21,774 shares of Series A-1 Preferred (converted note) 50,000 50,000 0.7%
Trellis Bioscience LLC Life science 50,000 shares of Series B Preferred plus warrants 50,000 50,000 0.7%
Trellis Bioscience LLC Life science 50,000 shares of Series B Preferred plus warrants 50,000 50,000 0.7%
Trellis Bioscience LLC Life science 100,000 shares of Series B Preferred plus warrants 100,000 100,000 1.4%
Valfix Medical Inc Life science 27,217 shares of Series Seed Preferred 50,000 50,000 0.7%
Visgenx Inc Life science 7,833 shares of Series Seed-1 Preferred (converted note) 30,000 46,352 0.7%
Visgenx Inc Life science 4,132 shares of Series Seed Preferred (converted note) 25,000 25,648 0.4%
Visgenx Inc Life science 2,480 shares of Series Seed Preferred (converted note) 15,003 15,392 0.2%
Total Preferred stock investments $ 2,450,997 $ 3,129,458 44.8%
United States $ 2,300,997 $ 2,979,458 42.6%
Canada 100,000 100,000 1.4%
Rest of World 50,000 50,000 0.7%
Total Preferred stock investments $ 2,450,997 $ 3,129,458 44.8%

Common stock investments
BendaRX Corp Life science 12,500 Common shares $ 100,000 $ 150,000 2.1%
BendaRX Corp Life science 12,500 Common shares 100,000 150,000 2.1%
Boardwalk Tech Technology 150,000 Common shares 73,500 91,995 1.3%
Total common stock investments $ 273,500 $ 391,995 5.6%
United States $ 73,500 $ 91,995 1.3%
Canada 200,000 300,000 4.3%
Rest of World - - 0.0%
Total common stock investments $ 273,500 $ 391,995 5.6%

SAFE investments
Infinidome Ltd Technology SAFE $ 50,000 $ 50,000 0.7%
Infinidome Ltd Technology SAFE 50,000 50,000 0.7%
Mitre Medical Corp Life science SAFE 75,000 75,000 1.1%
Mitre Medical Corp Life science SAFE 50,000 50,000 0.7%
Orion Biotechnology Inc. Life science SAFE 100,000 100,000 1.4%
Total SAFE investments $ 325,000 $ 325,000 4.6%
United States $ 125,000 $ 125,000 1.8%
Canada 100,000 100,000 1.4%
Rest of World 100,000 100,000 1.4%
Total SAFE investments $ 325,000 $ 325,000 4.6%

Other investments
Enduralock LLC Technology 34.1 Series A-1 Ownership Units $ 30,000 $ 30,000 0.4%
Enduralock LLC Technology 39.7 Series A-1 Ownership Units 35,000 35,000 0.5%
Exodos Life Sciences LP Life science Class A-1 Preferred Ownership Units 206,000 206,000 2.9%
Green Sun Medical LLC Life science 2,193 Class A-1 Ownership units 50,000 50,000 0.7%
Green Sun Medical LLC Life science 1,096 Class A-1 Ownership units 25,000 25,000 0.4%
Green Sun Medical LLC Life science 1,096 Class A-1 Ownership units 25,000 25,000 0.4%
Riso Capital Fund I, LP Technology Ownership units 50,000 50,000 0.7%
Total other investments $ 421,000 $ 421,000 6.0%
United States $ 421,000 $ 421,000 6.0%
Canada - - 0.0%
Rest of World - - 0.0%
Total Other investments $ 421,000 $ 421,000 6.0%

Total investments $ 5,686,545 $ 6,821,407 97.5%
United States $ 4,516,545 $ 5,486,010 78.4%
Canada 770,000 907,561 13.0%
Rest of World 400,000 427,836 6.1%
Total investments $ 5,686,545 $ 6,821,407 97.5%

( b ) based on total net assets of $ 6,993,163

	Portfolio Company		Industry	Investment	Cost		Fair value		% of net assets (a)
Preferred stock investments
	Altis Biosystems		Life science	22,028 shares of Series Seed Preferred	$	50,000	$	50,000	0.4	%
	Astrocyte Pharmaceuticals Inc		Life science	260,756 shares of Series A Preferred		100,000		100,000	0.8	%
	Cnote Group, Inc		Fintech	84,655 shares of series Seed-2 Preferred (converted SAFE)		51,500		59,783	0.5	%
	Cnote Group, Inc		Fintech	93,807 shares of Series Seed-3 Preferred (converted note)		50,000		66,247	0.5	%
	Colabs Inc		Life science	147,058 shares of Series A-1 Preferred		50,000		50,000	0.4	%
*	Connectus Services Ltd	*	Technology	31,348 shares of Series Seed Preferred		100,000		100,000	0.8	%
	Deep Blue Medical Advances Inc		Life science	10,474 shares of Series A Preferred		49,996		49,997	0.4	%
	Distasense Inc (FKA Life Detection Technologies Inc		Life science	117,813 shares of Series C Preferred		50,000		50,000	0.4	%
	Eumentis Thereapeutics Inc		Life science	85,009 shares of Series A Preferred		100,000		100,000	0.8	%
	FemtoDX Inc		Life science	42,436 shares of Series A Preferred		100,000		290,046	2.2	%
	Healionics Corporation		Life science	35,075 of Series A-1 Preferred		100,000		100,000	0.8	%
	i-Lumen Scientific Inc.		Life science	50,000 shares of Series A Preferred plus warrants		50,000		50,000	0.4	%
	i-Lumen Scientific Inc.		Life science	50,000 shares of Series A Preferred plus warrants		50,000		50,000	0.4	%
	Inhalon Biopharma Inc		Life science	18,843 shares of Series Seed Preferred		99,997		256,198	2.0	%
	Kitotech Medical Inc		Life science	49,027shares of Series B Preferred		74,998		74,998	0.6	%
	Light Line Medical Inc		Life science	62,849 shares of Series Seed Preferred (converted note)		30,000		38,031	0.3	%
	Light Line Medical Inc		Life science	141,871 shares of Series Seed Preferred (converted note)		70,000		106,049	0.8	%
	Light Line Medical Inc		Life science	40,323 shares of Series Seed preferred		25,000		25,000	0.2	%
	Light Line Medical Inc		Life science	72,464 shares of Series A Preferred plus warrants		50,000		50,000	0.4	%
	Lowell Therapeutics Inc		Life science	20,000 shares of Series A Preferred		50,000		50,000	0.4	%
	Lowell Therapeutics Inc		Life science	20,000 shares of Series A Preferred		50,000		50,000	0.4	%
	Lowell Therapeutics Inc		Life science	25,000 shares of Series B Preferred		100,000		100,001	0.8	%
	Makani Science Inc		Life science	172,413 shares of Series Seed Preferred		50,000		50,000	0.4	%
	Micronic Technologies Inc		Technology	51,929 shares of Series Seed-1 Preferred plus warrants		100,000		100,000	0.8	%
	Nanochon Inc		Life science	200,401 shares of Series Seed Preferred		50,000		50,000	0.4	%
	Neuroflow Inc		Life science	98,684 shares of Series Seed -2 Preferred		150,000		540,053	4.2	%
	Neuroflow Inc		Life science	20,429 shares of Series B Preferred		100,000		136,829	1.1	%
	New View Surgical, Inc.		Life science	53,825 shares of Series A-1 Preferred		75,000		75,000	0.6	%
	New View Surgical, Inc.		Life science	58,220 shares of Series A-1 Preferred		100,000		100,000	0.8	%
*	Orion Biotechnology Inc	*	Life science	5,824 shares of Series A Preferred		100,000		100,000	0.8	%
	Otomagnetics Inc		Life science	16,538 shares of Series A-1 Preferred		100,000		100,000	0.8	%
	Partheous Inc		Life science	50,000 shares of Series A Preferred		50,000		50,000	0.4	%
	Promaxo		Life science	104,248 shares of Series B-1 Preferred, (converted note)		250,000		1,034,684	8.0	%
	SageMedic Corp		Life science	12,717 shares of Series A Preferred		10,389		10,389	0.1	%
	Seal Rock Therapeutics, Inc.		Life science	68,075 shares of Series Seed Preferred, (converted note)		78,000		199,375	1.5	%
	Shyft (FKA Crater Group Inc)		Technology	42,657 shares of Series A-1 Preferred (converted note)		51,500		107,059	0.8	%
	Shyft (FKA Crater Group Inc)		Technology	28,147 shares of Series A Preferred (converted note)		50,000		91,771	0.7	%
	Shyft (FKA Crater Group Inc)		Technology	21,774 shares of Series A-1 Preferred plus warrants		50,000		70,990	0.5	%
( i )	Trellis Bioscience LLC		Life science	50,000 shares of Series B Preferred plus warrants		50,000		50,000	0.4	%
( i )	Trellis Bioscience LLC		Life science	50,000 shares of Series B Preferred plus warrants		50,000		50,000	0.4	%
( i )	Trellis Bioscience LLC		Life science	100,000 shares of Series B Preferred plus warrants		100,000		100,000	0.8	%
	Trio Labs Inc		Life science	29,809 shares of Series Seed Preferred		50,000		50,000	0.4	%
*	Valfix Medical Inc	*	Life science	27,217 shares of Series Seed Preferred		50,000		105,607	0.8	%
	Vesteck Inc		Life science	34,783 shares of Series A preferred		100,000		100,000	0.8	%
	Visgenx Inc		Life science	7,833 shares of Series Seed-1 Preferred (converted note)		30,000		46,352	0.4	%
	Visgenx Inc		Life science	4,132 shares of Series Seed Preferred (converted note)		25,000		25,648	0.2	%
	Visgenx Inc		Life science	2,480 shares of Series Seed Preferred (converted note)		15,003		15,391	0.1	%
Total Preferred stock investments					$	3,286,383	$	5,225,498	40.5	%
	United States				$	3,036,383	$	4,919,891	38.2	%
	Canada					200,000		200,000	1.5	%
	Rest of World					50,000		105,607	0.8	%
Total Preferred stock investments					$	3,286,383	$	5,225,498	40.5	%

Common stock investments
*	BendaRX Corp	*	Life science	12,500 Common shares	$	100,000	$	150,000	1.2	%
*	BendaRX Corp	*	Life science	12,500 Common shares		100,000		150,000	1.2	%
	Kuantsol Inc		Technology	133.333 Common shares		25,000		25,000	0.2	%
Total Common stock investments					$	225,000	$	325,000	2.5	%
	United States				$	25,000	$	25,000	0.2	%
	Canada					200,000		300,000	2.3	%
	Rest of World					-		-	0.0	%
Total Common stock investments					$	225,000	$	325,000	2.5	%

Continued to next page

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

Kyto Technology and Life Science, Inc.

Schedule of Investments as of December 31, 2021

(Unaudited)

	Portfolio Company		Industry	Investment	Cost		Fair value		% of net assets (a)
Public common stock investments
	Boardwalk Tech		Technology	75,000 Common shares	$	65,600	$	70,000	0.5	%
	Boardwalk Tech		Technology	150,000 Common shares		73,500		86,505	0.7	%
	Sanaby Health Acquisition Corp 1		Life science	50,000 Common shares		100,000		473,732	3.7	%
Total Public common stock investments					$	239,100	$	630,237	4.9	%
	United States				$	239,100	$	630,237	4.9	%
	Canada					-		-	0.0	%
	Rest of World					-		-	0.0	%
Total Public common stock investments					$	239,100	$	630,237	4.9	%

SAFE investments
	AOA DX inc		Life science	SAFE	$	50,000	$	50,000	0.4	%
*	Infinidome Ltd	*	Technology	SAFE		50,000		50,000	0.4	%
*	Infinidome Ltd	*	Technology	SAFE		50,000		50,000	0.4	%
*	Infinidome Ltd	*	Technology	SAFE		100,000		100,000	0.8	%
*	Madorra Inc	*	Life science	SAFE		100,000		100,000	0.8	%
	Mitre Medical Corp		Life science	SAFE		75,000		75,000	0.6	%
	Mitre Medical Corp		Life science	SAFE		50,000		50,000	0.4	%
*	Orion Biotechnology Inc.	*	Life science	SAFE		100,000		100,000	0.8	%
*	Polymertal Ltd	*	Technology	SAFE		150,000		150,000	1.2	%
Total SAFE investments					$	725,000	$	725,000	5.6	%
	United States					175,000		175,000	1.3	%
	Canada					100,000		100,000	0.8	%
	Rest of World					450,000		450,000	3.5	%
Total SAFE investments					$	725,000	$	725,000	5.6	%

Other investments
	Enduralock LLC		Technology	34.1 Series A-1 Ownership Units	$	30,000	$	30,000	0.2	%
	Enduralock LLC		Technology	39.7 Series A-1 Ownership Units		35,000		35,000	0.3	%
	Exodos Life Sciences LP		Life science	Class A-1 Preferred Ownership Units		206,000		206,000	1.6	%
	Green Sun Medical LLC		Life science	2,193 Class A-1 Ownership units		50,000		50,000	0.4	%
	Green Sun Medical LLC		Life science	1,096 Class A-1 Ownership units		25,000		25,000	0.2	%
	Green Sun Medical LLC		Life science	1,096 Class A-1 Ownership units		25,000		25,000	0.2	%
	Green Sun Medical LLC		Life science	4,386 Class A-1 Ownership units		100,000		100,000	0.8	%
	Riso Capital Fund I, LP		Technology	Ownership units		50,000		50,000	0.4	%
	Riso Capital Fund I, LP		Technology	Ownership units		50,000		50,000	0.4	%
Total Other investments					$	571,000	$	571,000	4.4	%
	United States				$	521,000	$	571,000	4.4	%
	Canada					-		-	0.0	%
	Rest of World					50,000		-	0.0	%
Total Other investments					$	571,000	$	571,000	4.4	%

Total investments					$	8,926,469	$	12,156,511	94.2	%
	United States				$	7,031,469	$	9,884,551	76.6	%
	Canada					995,000		1,250,091	9.7	%
	Rest of World					900,000		1,021,869	7.9	%
Total investments					$	8,926,469	$	12,156,511	94.2	%
	(a) based on total net assets of $ 12,911,623
( i )	Kyto management sit on the Board of these companies.
*	These companies are headquartered outside of the US.

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

Kyto Technology and Life Science, Inc.

Schedule of Investments as of March 31, 2021

(Unaudited)

	Portfolio Company		Industry	Investment	Cost		Fair value		% of net assets (a)
Convertible loan investments
( i )	Achelios Therapeutics Inc.		Life science	Convertible Note, 8% due, December 2021	$	100,000	$	121,173		1.7	%
( i )	Achelios Therapeutics Inc.		Life science	Convertible Note, 8% due December 2021		25,000		29,033		0.4	%
( i )	Achelios Therapeutics Inc.		Life science	Convertible Note, 8% due December 2021		50,000		54,581		0.8	%
	Avisi Technologies Inc		Life science	Convertible Note, 8% due July 2022		50,000		52,674		0.8	%
	Basepaws Inc		Life science	Convertible Note, 1% due April 2020		50,000		162,319		2.3	%
( i )	Beam Semiconductor Inc	*	Technology	Convertible Note, 8% due April 2022		150,000		171,041		2.4	%
( i )	Beam Semiconductor Inc	*	Technology	Convertible Note, 8% due March 2021		50,000		54,285		0.8	%
	Corinnova Inc		Life science	Convertible Note, 6% due December 2024		100,000		102,318		1.5	%
	Cyberdontics Inc	*	Life science	Convertible Note, 8% due September 2022		30,000		33,768		0.5	%
	Cyberdontics Inc	*	Life science	Convertible Note, 8% due February 2023	��	35,000		38,053		0.5	%
	Cyberdontics Inc	*	Life science	Convertible Note, 0% no due date		35,000		36,296		0.5	%
	Deep Blue Medical Advances Inc		Life science	Convertible Note, 6% due June 2022		50,000		50,863		0.7	%
	Every Key Inc		Technology	Convertible Note, 5% due December 2023		100,000		106,521		1.5	%
	Identical Inc		Life science	Convertible Note, 2% due May 2022		100,000		100,844		1.4	%
	INBay Technology Inc	*	Technology	Convertible Note, 12% due October 2020		50,000		59,721		0.9	%
	INBay Technology Inc	*	Technology	Convertible Note, 12% due July 2021		30,000		34,149		0.5	%
	INBay Technology Inc	*	Technology	Convertible Note, 12% due February 2022		50,000		56,640		0.8	%
	INBay Technology Inc	*	Technology	Convertible Note, 12% due December 2022		40,000		41,552		0.6	%
	Kiana Analytics Inc		Technology	Convertible Note, 3% December 2022		100,000		100,847		1.4	%
	Kitotech Medical Inc		Life science	Convertible Note, 6% due December 2020		100,000		243,133		3.5	%
	Kitotech Medical Inc		Life science	Convertible Note, 6% due November 2022		75,000		83,738		1.2	%
	Lifewave Biomedical Inc		Life science	Convertible Note, 6% due December 2020		30,000		32,830		0.5	%
	Lifewave Biomedical Inc		Life science	Convertible Note, 6% due December 2020		70,000		74,810		1.1	%
	Navaux Inc		Life science	Convertible Note, 6% due December 2023		60,000		61,036		0.9	%
	Neuro42 Inc.		Life science	Convertible Note, 8% due December 2023		50,000		50,559		0.7	%
	Octagon Therapeutics Inc		Life science	Convertible Note, 5% due June 2021		50,000		51,110		0.7	%
	Octagon Therapeutics Inc		Life science	Convertible Note, 5% due June 2021		50,000		50,966		0.7	%
	Perikinetics Inc		Life science	Convertible Note, 6% due May 2022		100,000		102,318		1.5	%
	Preview Medical Inc		Life science	Convertible Note, 7% due January 2023		100,000		101,918		1.5	%
	SageMedic Corp		Life science	Convertible Note, 8% April 2021 plus warrants		50,000		57,879		0.8	%
	SageMedic Corp		Life science	Convertible Note, 8% December 2022 plus warrants		75,000		77,086		1.1	%
	Sensing Electromagnetic Plus Corp		Technology	Convertible Note, Fully reserved		50,000		1		0.0	%
	Sensing Electromagnetic Plus Corp		Technology	Convertible Note, Fully reserved		11,048		1		0.0	%
	Valfix Medical Inc	*	Life science	Convertible Note, 8% December 2021		50,000		52,510		0.8	%
	Xpan Inc	*	Life science	Convertible Note, 8% due March 2022		50,000		54,296		0.8	%
	Xpan Inc	*	Life science	Convertible Note, 8% due June 2022		25,000		26,545		0.4	%
	Xpan Inc	*	Life science	Convertible Note, 8% due June 2022		25,000		26,540		0.4	%
Total Convertible loan investments					$	2,216,048	$	2,553,954		36.5	%
	United States				$	1,596,048	$	1,868,557		26.7	%
	Canada					370,000		407,561		5.8	%
	Rest of World					250,000		277,836		4.0	%
Total Convertible loan investments					$	2,216,048	$	2,553,954		36.5	%

Preferred stock investments
	Altis Biosystems		Life science	22,028 shares of Series Seed Preferred	$	50,000	$	50,000		0.7	%
	Astrocyte Pharmaceuticals Inc		Life science	260,756 shares of Series A Preferred		100,000		100,000		1.4	%
	Cnote Group, Inc		Fintech	84,655 shares of series Seed-2 Preferred (converted SAFE)		51,500		59,783		0.9	%
	Cnote Group, Inc		Fintech	93,807 shares of Series Seed-3 Preferred (converted note)		50,000		66,247		0.9	%
	Colabs Inc		Life science	147,058 shares of Series A-1 Preferred		50,000		50,000		0.7	%
	Connectus Services Ltd	*	Technology	31,348 shares of Series Seed Preferred		100,000		100,000		1.4	%
	Deep Blue Medical Advances Inc		Life science	10,474 shares of Series A Preferred		49,997		49,997		0.7	%
	Eumentis Thereapeutics Inc		Life science	85,009 shares of Series A Preferred		100,000		100,000		1.4	%
	FemtoDX Inc		Life science	42,436 shares of Series A Preferred		100,000		159,835		2.3	%
	i-Lumen Scientific Inc.		Life science	50,000 shares of Series A Preferred plus warrants		50,000		50,000		0.7	%
	i-Lumen Scientific Inc.		Life science	50,000 shares of Series A Preferred plus warrants		50,000		50,000		0.7	%
	Inhalon Biopharma Inc		Life science	18,843 shares of Series Seed Preferred		99,997		99,997		1.4	%
	Light Line Medical Inc		Life science	62,849 shares of Series Seed Preferred (converted note)		30,000		38,031		0.5	%
	Light Line Medical Inc		Life science	141,871 shares of Series Seed Preferred (converted note)		70,000		106,049		1.5	%
	Light Line Medical Inc		Life science	40,323 shares of Series Seed preferred		25,000		25,000		0.4	%
	Light Line Medical Inc		Life science	72,464 shares of Series A Preferred plus warrants		50,000		50,000		0.7	%
	Lowell Therapeutics Inc		Life science	20,000 shares of Series A Preferred		50,000		50,000		0.7	%
	Lowell Therapeutics Inc		Life science	20,000 shares of Series A Preferred		50,000		50,000		0.7	%
	Micronic Technologies Inc		Technology	51,929 shares of Series Seed-1 Preferred plus warrants		100,000		100,000		1.4	%
	Neuroflow Inc		Life science	98,684 shares of Series Seed -2 Preferred		150,000		224,998		3.2	%
	Neuroflow Inc		Life science	20,429 shares of Series B Preferred		100,000		212,497		3.0	%
	New View Surgical, Inc.		Life science	53,825 shares of Series A-1 Preferred		75,000		75,000		1.1	%

Continued to next page

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

Kyto Technology and Life Science, Inc.

Schedule of Investments as of March 31, 2021

(Unaudited)

	Portfolio Company		Industry	Investment	Cost		Fair value		% of net assets (a)
Preferred stock investments (continued)
	Otomagnetics Inc		Life science	16,538 shares of Series A-1 Preferred plus warrants	$	100,000	$	100,000	1.4	%
	Promaxo		Life science	104,248 shares of Series B-1 Preferred, (converted note)		250,000		531,738	7.6	%
	Seal Rock Therapeutics, Inc.		Life science	68,075 shares of Series Seed Preferred, (converted note)		78,000		80,329	1.1	%
	Shyft (FKA Crater Group Inc)		Technology	42,657 shares of Series A-1 Preferred		51,500		97,940	1.4	%
	Shyft (FKA Crater Group Inc)		Technology	28,147 shares of Series A Preferred (converted note)		50,000		64,626	0.9	%
	Shyft (FKA Crater Group Inc)		Technology	21,774 shares of Series A-1 Preferred (converted note)		50,000		50,000	0.7	%
( i )	Trellis Bioscience LLC		Life science	50,000 shares of Series B Preferred plus warrants		50,000		50,000	0.7	%
( i )	Trellis Bioscience LLC		Life science	50,000 shares of Series B Preferred plus warrants		50,000		50,000	0.7	%
( i )	Trellis Bioscience LLC		Life science	100,000 shares of Series B Preferred plus warrants		100,000		100,000	1.4	%
	Valfix Medical Inc	*	Life science	27,217 shares of Series Seed Preferred		50,000		50,000	0.7	%
	Visgenx Inc		Life science	7,833 shares of Series Seed-1 Preferred (converted note)		30,000		46,352	0.7	%
	Visgenx Inc		Life science	4,132 shares of Series Seed Preferred (converted note)		25,000		25,648	0.4	%
	Visgenx Inc		Life science	2,480 shares of Series Seed Preferred (converted note)		15,003		15,391	0.2	%
Total Preferred stock investments					$	2,450,997	$	3,129,458	44.8	%
	United States				$	2,300,997	$	2,979,458	42.6	%
	Canada					100,000		100,000	1.4	%
	Rest of World					50,000		50,000	0.7	%
Total Preferred stock investments					$	2,450,997	$	3,129,458	44.8	%

Common stock investments
	BendaRX Corp	*	Life science	12,500 Common shares	$	100,000	$	150,000	2.1	%
	BendaRX Corp	*	Life science	12,500 Common shares		100,000		150,000	2.1	%
	Boardwalk Tech		Technology	150,000 Common shares		73,500		91,995	1.3	%
Total Common stock investments					$	273,500	$	391,995	5.6	%
	United States				$	73,500	$	91,995	1.3	%
	Canada					200,000		300,000	4.3	%
	Rest of World					-		-	0.0	%
Total Common stock investments					$	273,500	$	391,995	5.6	%

SAFE investments
	Infinidome Ltd	*	Technology	SAFE	$	50,000	$	50,000	0.7	%
	Infinidome Ltd	*	Technology	SAFE		50,000		50,000	0.7	%
	Mitre Medical Corp		Life science	SAFE		75,000		75,000	1.1	%
	Mitre Medical Corp		Life science	SAFE		50,000		50,000	0.7	%
	Orion Biotechnology Inc.	*	Life science	SAFE		100,000		100,000	1.4	%
Total SAFE investments					$	325,000	$	325,000	4.6	%
	United States				$	125,000	$	125,000	1.8	%
	Canada					100,000		100,000	1.4	%
	Rest of World					100,000		100,000	1.4	%
Total SAFE investments					$	325,000	$	325,000	4.6	%

Other investments
	Enduralock LLC		Technology	34.1 Series A-1 Ownership Units	$	30,000	$	30,000	0.4	%
	Enduralock LLC		Technology	39.7 Series A-1 Ownership Units		35,000		35,000	0.5	%
( i )	Exodos Life Sciences LP		Life science	Class A-1 Preferred Ownership Units		206,000		206,000	2.9	%
	Green Sun Medical LLC		Life science	2,193 Class A-1 Ownership units		50,000		50,000	0.7	%
	Green Sun Medical LLC		Life science	1,096 Class A-1 Ownership units		25,000		25,000	0.4	%
	Green Sun Medical LLC		Life science	1,096 Class A-1 Ownership units		25,000		25,000	0.4	%
	Riso Capital Fund I, LP		Technology	Ownership units		50,000		50,000	0.7	%
Total Other investments					$	421,000	$	421,000	6.0	%
	United States				$	421,000	$	421,000	6.0	%
	Canada					-		-	0.0	%
	Rest of World					-		-	0.0	%
Total Other investments					$	421,000	$	421,000	6.0	%

Total investments					$	5,686,545	$	6,821,407	97.5	%
	United States				$	4,516,545	$	5,486,010	78.4	%
	Canada					770,000		907,561	13.0	%
	Rest of World					400,000		427,836	6.1	%
Total investments					$	5,686,545	$	6,821,407	97.5	%

	(a) based on total net assets of $ 6,993,163
( i )	Kyto management sit on the Board of these companies.
*	These companies are headquartered outside of the US.

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

~~KYTO TECHNOLOGY AND LIFE SCIENCE INC.~~Kyto Technology and Life Science, Inc.

Notes to Unaudited Condensed Financial Statements

~~NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS~~December 31, 2021

~~June 30, 2021~~

NOTE 1 – DESCRIPTION OF BUSINESS

Kyto Technology and Life Science, Inc. (the “Company”) was formed as a Florida corporation on March 5, 1999 under the name of B Twelve, Inc. In August, 2002, the Company changed its name from B Twelve, Inc. to Kyto BioPharma Inc. and in May 2018, the name was changed again to Kyto Technology and Life Science, Inc. In July 2019, the Company was re-incorporated as a Delaware company. The Company operates virtually, from public locations or the homes of its officers, and does not currently lease any office space.

The Company was originally formed to acquire and develop proprietary drugs for the treatment of cancer, arthritis, and other autoimmune diseases and had been evaluating a number of strategies. As of March 31, 2018, the Company had accumulated a deficit of $32,380,746 from all prior operations. In April 2018, the Board adopted a new business plan focused on the development of early-stage technology and life science businesses through early-stage investment funding. The Company has recruited a number of experienced investment consultants from a network that includes angel investors, corporate managers, sophisticated early-stage investors and successful entrepreneurs with experience across a number of technology and life science products and markets, and relies on input from these advisors in conducting due diligence and making investment decisions. In order to offset the risk in early-stage investing, the Company works with angel investment groups and other sophisticated investors and participates only after these groups have completed due diligence and committed to invest, in effect becoming lead investors. The Company then completes its own due diligence and invests under identical terms as the lead investors. The Company will do follow-on investments in existing portfolio companies, assuming adequate progress, when portfolio companies initiate new financing rounds. The Company currently does not typically invest more than $250,000 in any single investment. Generally, the Company’s investments represent less than 5%5% ownership interests, and the Company therefore has no effective control or influence over the management or commercial decisions of the companies in which it invests. The Company plans to generate revenue from realized gains from the sale of the businesses in which it has invested, or some or all of its shareholdings in those cases where portfolio companies go public. Generally, it is expected that investments will be realized from an exit within a period of four to five years following initial investment. Such exits or liquidity events are outside the Company’s control and depend on merger and acquisition (“M&A”) transactions or an initial public offering (“IPO”) which may result in cash or equity proceeds. ~~Accordingly, it is difficult to forecast revenue, net income, and cash flow.~~ Other than making its initial and, potentially, follow-on investments in its portfolio companies, the Company does not provide any financial support to any of its investees.

The Company has one regular employee – the CEO, ~~Mr,~~Mr. Paul Russo. Prior to December 31, 2020, he was acting as a consultant to the Company and did not receive contractual compensation for his services in the form of cash. As of January 1, 2021, Mr. Russo was engaged as an employee of the Company at a salary of $400,000 per annum of which $~~60%~~100,000 ~~is paid monthly,~~ and $300,000 was earned in the three months and nine months ended December 31, 2021, respectively, of which a balance of $80,000 was deferred at December 31, 2021.No consulting fees and no options were granted to be paid once the Company lists and starts trading on the Nasdaq exchange. The full terms of Mr. Russo’s employment are described in an engagement letter filed on Form 8-K on February 1, 2021, which was approved by the Compensation committee of the Board of Directors on that date.him during these periods. During the three months ~~ended June 30, 2021, Mr. Russo received $80,000~~ ~~gross payroll,~~ 0 ~~consulting fees~~ and 0 ~~options were granted. During the three~~nine months ended ~~June 30,~~December 31, 2020, Mr. Russo received 0no payroll or consulting fees, ,however in the three and nine months ended December 31, 2020, he received a bonus of $050,000 and was granted options ~~were granted~~ to ~~him.~~purchase 215,000shares of Common stock.

The Company has created a portfolio of minority investments in early-stage start-up companies and derives its revenue opportunity from the sale of those investments. Such sales are outside the Company’s control and depend on M&A transactions or IPOs which may result in cash or equity proceeds. Accordingly, it is difficult to forecast revenue, net income, and cash flow. As of ~~the date of this filing,~~December 31, 2021, the Company had approximately $~~500,000~~600,000 of cash to cover its operating expenses, and new investment requirements and is continuing to raise additional funding on a recurring monthly basis. If successful, it will have sufficient funding for further investments and ongoing operations. However, there is no assurance that the Company will be able to raise sufficient cash to cover its requirements on attractive terms, if at all, and whether it will be able to continue as a going concern. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed interim financial statements have been prepared assuming the Company will continue to operate as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. Stay at home orders and general economic uncertainties arising out of the current Covid-19 epidemic have created additional delays and uncertainty. To date there has been no disruption to the Company’s business operations, although some of its portfolio investment companies report delays in their programs.

At March 31, 2020, management determined that the Company was an investment company for purposes of ~~ASC~~Accounting Standards Codification Topic 946,Financial Services—Investment Companies (ASC Topic 946) disclosure, and ~~committed to follow~~adopted the specialized accounting and reporting guidance contained therein. Accordingly, a new company, Kyto Investments, Inc. (“KI”) was incorporated in Delaware in December 2020 in preparation for a restructuring and an N-2 Registration Statement filed in March 2021 for review by the ~~SEC.~~Securities and Exchange Commission (the “SEC”). KI is an internally managed, closed-end investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Immediately upon effectiveness of this N-2 Registration Statement, the Company will merge with KI and the Company will be the surviving entity. As of the completion of the merger, the Company will constitute a “successor issuer” for the purposes of Rule 414 under the Securities Act and may continue the current offering by filing post-effective amendments to the Registration Statements. Prior to the merger, the Company had fewer than 100 ~~non affiliated~~non-affiliated investors and filed under the 1934 Act relying on exemption Rule ~~3( c )(1)~~3(c)(1).

As a BDC, the Company will be required to comply with certain regulatory requirements. The Company also intends to elect to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). As a RIC, the Company is required to comply with additional regulatory requirements. The Company has prepared and submitted sequentially two N-2 Registration Statements to the SEC for review but has not yet received final approval of its registration as at the filing date of this report.

NOTE 2 - BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

(A) BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which the Company considers necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three months and nine months ended ~~June 30,~~December 31, 2021 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. The condensed balance sheet as of March 31, 2021 was derived from the audited financial statements at that date, but does not include all the information and footnotes required by U.S. GAAP. The information contained in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements of the Company for the year ended March 31, 2021, included in the Annual Report on Form 10-K as filed with the ~~Securities and Exchange Commission (the “SEC”)~~SEC on August 10, 2021.

The Company’s condensed interim financial statements are prepared in accordance with U.S. ~~generally accepted accounting principles (GAAP),~~GAAP, which requires the use of estimates, assumptions and the exercise of subjective judgment as to future uncertainties. Actual results could differ from those estimates, assumptions, and judgments. Significant items subject to such estimates will include determining the fair value of investments, revenue recognition, income tax uncertainties, stock-based compensation, and other contingencies.

The Company’s financial statements are prepared using the specialized accounting principles of ~~Accounting Standards Codification~~ASC Topic ~~946, Financial Services—Investment Companies (ASC Topic 946).~~946. In accordance with this specialized accounting guidance, the Company recognizes and carries all of its investments at fair value with changes in fair value recognized in earnings. Additionally, the Company will not apply consolidation or equity method of accounting to its investments. The ~~Company carries its liabilities at amounts payable, net~~carrying amount of ~~unamortized premiums or discounts. The Company does not currently plan~~the Company’s financial instruments such as cash and payables approximates fair value due to ~~elect to carry its liabilities at fair value.~~the short maturity of such instruments. Net assets are calculated as the carrying amounts of assets, including the fair value of investments, less the carrying amounts of its liabilities.

(B) RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company’s previously issued financial statements as of and for three and six months ended September 30, 2021 and the three months ended June 30, 2021 have been restated to reflect the dividends attributable for the Class B-1, B-2 and B-3 Preferred Stock. The Class B-1, B-2 and B-3 Preferred Stock have cumulative dividends amounting to $98,968 and $350,694 for three and six months ended September 30, 2021, respectively, and $251,726 for the three months ended June 30, 2021. Previously, the Company did not present the cumulative dividends attributable to Class B-1, B-2 and B-3 Preferred Stock in its calculation of earnings (loss) per common share. To correct this misstatement, the Company has included dividends attributable to Class B-1, B-2 and B-3 Preferred Stock for the three and six months ended September 30, 2021 and three months ended June 30, 2021, in its calculation of earnings (loss) per common share below, resulting in a decrease of net income and increase in net loss attributable to common shareholders. There has been no change in the Company’s total assets, liabilities or operating results.

The correction of the errors is as follows:

SCHEDULE OF CORRECTION OF THE ERRORS


	For the three months ended						For the six months ended
	September 30, 2021			June 30, 2021			September 30, 2021
Net increase (decrease) in net assets resulting from operations	$	996,133		$	(333,792	)	$	662,341
Less: Dividends attributable to Class B-1, B-2 & B-3 stockholders		(98,968	)		(251,726	)		(350,694	)
Net increase (decrease) in net assets resulting from operations attributable to Common Shareholders (as restated)	$	897,165		$	(585,518	)	$	311,647

As restated:
Weighted Average Common Shares		13,273,871			13,268,871			13,270,794
Weighted Average Fully Diluted Shares		27,500,194			13,268,871			22,228,602
Basic Earnings (Loss) per common share	$	0.07		$	(0.04	)	$	0.02
Diluted Earnings (Loss) per common share	$	0.04		$	(0.04	)	$	0.01

As reported:
Weighted Average Common Shares		13,271,996			13,268,871			13,269,764
Weighted Average Fully Diluted Shares		27,338,695			13,268,871			26,263,218
Basic Earnings (Loss) per common share	$	0.08		$	(0.03	)	$	0.05
Diluted Earnings (Loss) per common share	$	0.04		$	(0.03	)	$	0.03

~~(B)~~ (C) INVESTMENT TRANSACTIONS AND NET REALIZED AND UNREALIZED GAIN OR LOSS ON INVESTMENTS

The Company generates increases or decreases in its net assets from the sale of complete or partial investments following a merger or acquisition (“M&A”) transaction or restructuring or from the revaluation of portfolio company investments to recognize changes in their fair value, either upwards or downwards. As a minority early-stage investor, the Company does not have the ability to manage the timing or acceptance of liquidity events that will realize its investments, nor the ability to predict when they may happen, although as a general guideline, it would expect such events to occur approximately four to five years after its investments are made. The Company ~~will record~~records the ~~changes in value~~realized gains and losses from investment activities upon completion of sale and receipt of net proceeds, after deducting related transaction ~~expenses as realized gains or losses.~~expenses. Realized gains or losses on the sale of investments, or upon the determination that an investment balance, or portion thereof, is not recoverable, are calculated using the specific identification method. The Company measures realized gains or losses by calculating the difference between the net proceeds from the repayment or sale and the cost basis of the investment. Net change in unrealized appreciation or depreciation reflects the change in the fair values of the Company’s portfolio investments during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized. The Company is in ~~regular~~periodic contact with the management of its portfolio investment companies to provide a basis for valuation ~~changes or impairment reviews.~~changes. The Company does not expect to receive interest and principal repayments on its convertible notes and generally expects these notes to convert into equity securities upon completion of qualified subsequent financings. Accrued interest is ~~then~~ recorded as an adjustment to the fair ~~value.~~value of the convertible notes.

~~(C)~~ (D) INCOME TAXES

The Company accounts for income taxes under the Financial Accounting Standards Accounting Standard Codification Topic 740 “Accounting for Income Taxes” (“Topic 740”). Under Topic 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under Topic 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period, which includes the enactment date.

~~(D)~~ (E) USE OF ESTIMATES

In preparing financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the period presented. Actual results may differ from these estimates.

Significant estimates during the three months and nine months ended ~~June 30,~~December 31, 2021 and ~~June 30, 2020~~March 31, 2021 include the valuation of the investment portfolio, deferred tax assets, tax valuation allowance, stock options and warrants.

~~(E)~~

(F) CASH AND CASH EQUIVALENTS

The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. There were 0 cash equivalents at ~~June 30,~~December 31, 2021 and March 31, 2021, respectively.

(G) CONCENTRATIONS

~~(F) CONCENTRATIONS~~

The Company maintains its cash in bank checking and deposit accounts, which, at times, may exceed federally insured limits. As of ~~June 30,~~December 31, 2021, and March 31, 2021, the Company’s bank balance exceeded the federally insured limit by approximately $~~230,000~~360,000 and $1.2 million, respectively. The Company has not experienced any losses in such accounts through ~~June 30,~~December 31, 2021.

~~(G)~~(H) STOCK-BASED COMPENSATION

Financial Accounting Standards Board Accounting Standards Codification Topic 718, ~~“Stock~~“Stock Compensation” requires generally that all equity awards granted to employees and consultants be accounted for at fair value. This fair value is measured at grant date for stock settled awards, and at subsequent exercise or settlement for cash-settled awards. Under this method, the Company records an expense equal to the fair value of the options or warrants issued. The fair value is computed using the Black Scholes options pricing model. The Company granted consultants and advisors ~~250,000~~1,550,000 and ~~120,000~~217,500 options ~~to consultants and advisors~~ during the three months ended ~~June 30,~~December 31, 2021 and ~~June 30,~~December 31, 2020, and 2,290,000 and 847,500 options during the nine months ended December 31, 2021 and December 31, 2020, respectively.

~~(H)~~(I) NET ~~LOSS~~EARNINGS (LOSS) PER COMMON SHARE

In accordance with Statement of Financial Accounting Standards Accounting Standard Codification Topic 260, “Earnings per Share”, the Company uses the two-class method to compute net income (loss) per common share because the Company has issued securities, other than common stock, that contractually entitle the holders to participate in dividends and earnings of the Company. The two-class method requires earnings for the period to be allocated between common stock and participating securities based upon their respective rights to receive distributed and undistributed earnings. Holders of Class B-1, B-2 and B-3 of the Company’s convertible preferred stock are entitled to participate in distributions, when and if declared by the board of directors, that are made to common stockholders and, as a result, are considered participating securities. As of December 31, 2021, convertible preferred stock dividends totaling $482,693 were accumulated and in arrears. As the Company’s Board of Directors had not declared such dividends payable, the Company has not recognized such dividend payable liability as of December 31, 2021, and will not recognize such dividend liability until they are declared by the Company’s Board of Directors. Notwithstanding, the Company has presented such dividend value as a component of the net increase (decrease) in net assets resulting from operations attributable to common shareholders in the calculation of basic and diluted earnings (loss) per common share.

Under the two-class method, for periods with net income, basic net income per share of common stock is computed by dividing the net income ~~less preferred dividends for the period~~attributable to shares of common stock by the weighted average number of shares of common stock outstanding during the period. Net income attributable to shares ~~outstanding. Diluted earnings per share~~of common stock is computed by ~~dividing~~subtracting from net income ~~less preferred dividends~~the portion of current period earnings that participating securities would have been entitled to receive pursuant to their dividend rights had all of the period’s earnings been distributed. No such adjustment to earnings is made during periods with a net loss as the holders of the participating securities have no contractual obligation to fund losses. Diluted net income per share of common stock is computed under the two-class method by using the weighted average number of ~~common~~ shares ~~outstanding including the effect~~ of common stock ~~equivalents. Common stock equivalents, consisting~~outstanding plus the potential dilutive effects of ~~preferred stock,~~ stock options, warrants and ~~warrants, have not been included~~non-participating convertible preferred shares (Class A and B). In addition, the Company analyzes the potential dilutive effect of the outstanding convertible securities under the if-converted method when calculating diluted income per share of common stock in which it is assumed that the ~~calculation,~~outstanding convertible securities convert into common stock at the beginning of the period or date of issuance, if the convertible security was issued during the period. The Company reports the more dilutive of the approaches (two-class or if-converted) as ~~their effect is anti-dilutive for~~its diluted net income per share of common stock during the ~~periods presented.~~ period.

The following table sets out the number of shares used in calculating ~~fully- diluted EPS using the if-converted method.~~fully-diluted earnings per common share:

SCHEDULE OF EARNINGS PER SHARE

Weighted average method

Number of shares used in calculating fully diluted earnings per common shares (two-class method)

~~Class of shares~~	~~Three months ended~~ ~~June 30, 2021~~
~~Common Stock~~		~~13,268,871~~
~~Common stock subscribed not issued~~		-
~~Series A preferred stock~~		~~4,200,000~~	*
~~Series B preferred stock~~		~~4,320,156~~	*
~~Options~~		~~2,759,250~~	*
~~Warrants~~		~~1,596,667~~	*

~~Total shares used in calculating fully-diluted EPS~~		~~13,268,871~~

*	~~These shares excluded from the calculation of fully-diluted EPS as the result would be anti-dilutive.~~

	Three months to December 31, 2021		Nine months to December 31, 2021
Common stock		13,287,621		13,273,038
Class A Preferred Stock		4,200,000		4,200,000
Class B Preferred Stock		286,250		286,250
Options		4,145,500		3,044,305
Warrants		1,596,667		1,596,667

Total shares used in calculating fully-diluted earnings per common share, two-class method		23,516,038		22,400,260

Weighted average method

Number of shares used in calculating fully diluted earnings per common shares (if-converted method)

	Three months to December 31, 2020		Nine months to December 31, 2020
Common stock		8,528,007		5,836,831
Class A Preferred Stock		4,200,000		4,200,000
Class B Preferred Stock		2,789,954		1,933,912
Options		2,157,500		1,842,873
Warrants		1,596,667		3,329,067

Total shares used in calculating fully-diluted earnings per common share, if-converted method		19,272,128		17,142,683

~~(I )~~ (J) INVESTMENT AND VALUATION OF INVESTMENT AT FAIR VALUE

The Company reviews the performance of its investments based on available information, including management reports, press releases, web site announcements and progress reports, third party equity updates, management interviews and, where accessible, financial reports, to determine their ~~current and future potential value and liquidity.~~fair values. In the event that ~~Management~~management considers the fair value of an investment to be ~~impaired,~~greater or less than the ~~carrying~~current book value, of the ~~investment~~difference will be ~~written down by an impairment charge to reflect Management’s estimated valuation. The Company recognized impairment~~reflected as unrealized gains or losses in investments in the statements of ~~one of its investments which was written down by $61,046~~ ~~in September 2019. The Company has not experienced any other impairment write-downs in any prior or subsequent periods.~~operations.

The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures”, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing USU.S. GAAP that require the use of fair value measurements which establishes a framework for measuring fair value and expands disclosure about such fair value measurements.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is an exchange price notion under which fair value is the price in an orderly transaction between market participants to sell an asset or transfer a liability in the market in which the reporting entity would transact for the asset or liability.

The Company has established procedures to estimate the fair value of its investments which the Company’s board of directors has reviewed and approved. The Company ~~will use~~uses observable market data to estimate the fair value of investments to the extent that market data is available. In the absence of quoted market prices in active markets, or quoted market prices for similar assets or in markets that are not active, the Company ~~will use~~uses the valuation methodologies described below with unobservable data based on the best available information in the circumstances, which incorporates the Company’s assumptions about the factors that a market participant would use to value the asset.

For investments for which quoted market prices are not available, which ~~will~~ comprise most of our investment portfolio, fair value ~~will be~~is estimated by using the income, market, or back-solve approach. The income approach is based on the assumption that value is created by the expectation of future benefits discounted to a current value and the fair value estimate is the amount an investor would be willing to pay to receive those future benefits. The market approach compares recent comparable transactions to the investment. The back solve method involves comparing available data over a period of time and inferring a new valuation based on changes from a known starting point, for example the cost of an investment. Adjustments are made for any dissimilarity between the comparable transactions and the investments. These valuation methodologies involve a significant degree of judgment on the part of our management and board.

In determining the appropriate fair value of an investment using these approaches, the most significant information and assumptions may include, as applicable: available current market data, including relevant and applicable comparable market transactions, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the investment’s ability to make payments, its earnings and discounted cash flows, the markets in which the company does business, comparisons of financial ratios of peer companies that are public, merger and acquisition ~~comparables,~~comparable, the principal market and enterprise values, environmental factors, subsequent financings by the portfolio investment, among other factors.

The estimated fair values ~~will~~do not necessarily represent the amounts that may be ultimately realized due to the occurrence or nonoccurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of the valuation of the investments, the estimate of fair values may differ significantly from the value that would have been used had a broader market for the investments existed.

The authoritative accounting guidance prioritizes the use of market-based inputs over entity-specific inputs and establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation. The three levels of valuation hierarchy are defined as follows:

Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data

Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. Most of the Company’s investments are Level 3.

Critical accounting policies and practices are the policies that are both most important to the portrayal of ~~our~~the Company’s financial condition and results, and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about matters that are inherently uncertain. These include estimates of the fair value of ~~our~~ Level 3 investments and other estimates that affect the reported amounts of assets and liabilities as of the date of the ~~consolidated~~ financial statements and the reported amounts of certain revenues and expenses during the reporting period. It is likely that changes in these estimates will occur in the near term. ~~Our~~The Company’s estimates are inherently subjective in nature and actual results could differ materially from such estimates. See “Note 1 – Significant Accounting Policies” to our financial statements as of March 31, 2021, as filed with the SEC on August 10, 2021, for further detail regarding our critical accounting policies and recently issued or adopted accounting pronouncements.

(K) ~~(J)~~ RECENT ACCOUNTING PRONOUNCEMENTS

Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

~~(K) DEFERRED OFFERING COSTS~~(L) OTHER ASSETS

Other assets principally include deferred offering costs. Since April 2019, the Company has conducted a series of sales of common and preferred stock to fund its ongoing investment program and cost of operations. Typically, it expects that ~~this~~raising capital through the sale of any series of securities, from start to finish, may take from six to nine months and in order to match the cost and benefits of this process, the Company adopted a policy of capitalizing direct expenses incurred in the course of ~~fund~~ raising capital, with the intention of netting accumulated expenses against proceeds from sale of equity, and reporting the net funds raised at the close. Direct expenses include legal fees, investor relations fees, investor roadshows and meeting expenses, and related filing and printing fees. At ~~June~~December 31, 2021 and March 31, 2021, the Company had deferred $~~170,889~~293,564 and $169,891, respectively, of such expenses, relating to the preparation and filing of an N-2 Registration Statement.

NOTE 3 – COMMITMENTS AND CONTINGENCIES

The Company has no commitments or contingencies as of the date of this filing. The Company may be subject to litigation during the normal course of business but has not received any such claims to date.

NOTE 4 - RELATED PARTY TRANSACTIONS

At ~~June 30,~~December 31, 2021 and March 31, 2021, the Company had accrued and owed $~~72,205~~83,000 and $51,420, respectively, to officers of the Company for deferred payroll and consulting service fees.

At ~~June 30,~~December 31, 2021, officers or directors of the Company held board positions at ~~three~~four portfolio companies: ~~InBay~~Beam Semiconductor Inc., Achelios Therapeutics Inc., Trellis Bioscience LLC and INBay Technology Inc. At March 31, 2021, officers or directors of the Company held board positions at four portfolio companies: Beam Semiconductor Inc., Achelios Therapeutics Inc., Trellis Bioscience LLC and Exodos Life Sciences ~~LP, and Achelios Therapeutics Inc.~~LP.

NOTE 5 – INVESTMENTS

The following table summarizes the Company’s investment portfolio at ~~June 30,~~December 31, 2021 and March 31, 2021.

SUMMARY OF INVESTMENT PORTFOLIO

	December 31, 2021				March 31, 2021
Number of portfolio companies		69				51
Fair value	$	12,156,511			$	6,821,407
Cost		8,926,469				5,686,545

% of portfolio at fair value
Convertible notes		4,679,776	38.4	%		2,553,954	37.4	%
Preferred stock		5,225,498	43.0	%		3,129,458	45.9	%
Common stock		955,237	7.9	%		391,995	5.7	%
SAFE		725,000	6.0	%		325,000	4.8	%
Other ownership units		571,000	4.7	%		421,000	6.2	%
Total	$	12,156,511	100.0	%	$	6,821,407	100.0	%

A SAFE is a Simple Agreement for Future Equity in the form of a warrant to purchase equity stock in a future priced round.

June 30,
2021
March 31, 2021
Number of portfolio companies 60 51
Fair value $ 8,140,007 $ 6,821,407
Cost 6,952,145 5,686,545

% of portfolio at fair value
Convertible notes 3,252,175 40 % 2,553,954 37 %
Preferrred stock 3,384,237 42 % 3,129,458 46 %
Common stock 557,595 7 % 391,995 6 %
SAFE 425,000 5 % 325,000 5 %
Other ownership units 521,000 6 % 421,000 6 %
Total $ 8,140,007 100 % $ 6,821,407 100 %

Our investment portfolio represents approximately 9594% and 97% of our net assets at ~~June 30,~~December 31, 2021 and ~~98%~~ at March 31, ~~2021.~~2021, respectively. Investments in early-stage ~~start up~~start-up private operating entities are valued based on available metrics, such as relevant market multiples and comparable company valuations, company specific-financial data including subsequent financings, actual and projected results, and independent third-party valuation estimates.

~~SCHEDULE OF INVESTMENTS~~

As of June 30, 2021
Fair Value Valuation Approach/ Technique Unobservable Inputs Range/ Weighted Average

Convertible notes $ 3,252,175 Market approach Precedent and follow-on transactions N/A
Preferred stock in private companies 3,384,237 Market approach Precedent and follow-on transactions N/A
Common stock in private companies 400,000 Market approach Precedent and follow-on transactions N/A
SAFE 425,000 Market approach Precedent and follow-on transactions N/A
Other investments 521,000 Market approach Precedent and follow-on transactions N/A
Total Investments $ 7,982,412

As of March 31, 2021
Fair Value
Valuation
Approach/
Technique
Unobservable Inputs Range/ Weighted Average

Convertible notes $ 2,553,954 Market approach Precedent and follow-on transactions N/A
Preferred stock in private companies 3,129,458 Market approach Precedent and follow-on transactions N/A
Common stock in private companies 300,000 Market approach Precedent and follow-on transactions N/A
SAFE 325,000 Market approach Precedent and follow-on transactions N/A
Other investments 421,000 Market approach Precedent and follow-on transactions N/A
Total Investments $ 6,729,412

~~The following table presents fair value measurements of investments, by major class, as of June 30, 2021 and March 31, 2021, according to the fair value hierarchy:~~

~~SCHEDULE OF INVESTMENTS AT FAIR VALUE MEASUREMENTS OF INVESTMENTS~~

As of June 30, 2021
Quoted prices in active markets for identical securities Significant other observable inputs Significant other inputs
Description (Level 1) (Level 2) (Level 3) Total
Investments at Fair Value
Private Portfolio Companies
Convertible notes $ - $ - $ 3,252,175 $ 3,252,175
Preferred stock - - 3,384,237 3,384,237
Common stock - - 400,000 400,000
SAFEs - - 425,000 425,000
Other ownership interests - - 521,000 521,000
- - 7,982,412 7,982,412
Public Portfolio Companies
Common stock 157,595 - - 157,595

Total Investments at Fair value $ 157,595 $ - $ 7,982,412 $ 8,140,007

As of March 31, 2021
Description Level 1 Level 2 Level 3 Total
March 31, 2021
Investments at Fair Value
Private Portfolio Companies
Convertible notes $ - $ - $ 2,553,954 $ 2,553,954
Preferred stock - - 3,129,458 3,129,458
Common stock - - 300,000 300,000
SAFEs - - 325,000 325,000
Other ownership interests - - 421,000 421,000
- - 6,729,412 6,729,412

Public Portfolio Companies
Common stock 91,995 - - 91,995

Total Investments at Fair value $ 91,995 $ - $ 6,729,412 $ 6,821,407

~~As of June 30, 2021 and March 31, 2021, all our investments were treated as Level 3 with the exception of one which was invested in common stock of a public company and treated as Level 1.~~

Significant Unobservable Inputs for Level 3 Assets and Liabilities

In accordance with FASB ASC 820, Fair Value Management, the tables ~~above~~below provide quantitative information about the Company’s fair value measurements of its Level 3 assets as of ~~June 30,~~December 31, 2021 and March 31, 2021. In addition to the techniques and inputs noted in the tables above, according to the Company’s valuation policy, the Company may also use other valuation techniques and methodologies when determining the Company’s fair value measurements. The tables below are not meant to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements. To the extent an unobservable input is not reflected in the tables below, such input is deemed insignificant with respect to the Company’s Level 3 fair value measurements. Significant changes in the inputs in isolation would result in a significant change in the fair value measurement, depending on the materiality of the investment.

The following table summarizes the valuation techniques and significant unobservable inputs used for investments that are categorized within Level 3 of the fair value hierarchy as of December 31, 2021 and March 31, 2021:

SCHEDULE OF INVESTMENTS

As of December 31, 2021

Fair Value

Valuation Approach/ Technique

Unobservable Inputs

Range/ Weighted
Average

Convertible notes: Basepaws Inc

394,980

Market approach based on indicative term sheet and last round of financing

As if converted note and Series A term sheet of $37.5 million

Various

Convertible notes: Cyberdontics Inc

190,422

Valuation based on indicative securities transaction using a backsolve calculation to approximate value.

Market cap of $12 million on current SAFE offering applied to cap table

Various

Convertible notes: Promaxo Inc

185,136

Market approach based on available comparables and financial performance

Conversion prospects, market yield, remaining maturity

5% yield

Convertible notes: Other

3,909,238

Market approach based on available comparables and financial performance

Conversion prospects, market yield, remaining maturity

1-12% yield

Preferred stock in private company: Inhalon Inc

256,198

Valuation based on indicative securities transaction using a backsolve calculation to approximate value.

Market cap of $40 million on current note offering, and cap table

Various

Preferred stock in private company: Neuroflow Inc

676,882

Valuation based on indicative securities transaction using a backsolve calculation to approximate value.

Weighting applied to $17 million valuation and 6-7x forecast revenue

Various

Preferred stock in private company: Valfix Inc

105,607

Valuation based on indicative securities transaction using a backsolve calculation to approximate value.

Market value of $29.5 million invested capital applied to cap table

Various

Preferred stock in private companies Shyft Moving Inc

269,820

Market approach based on indicative term sheet and last round of financing

50/50 weighting to prior A-3 preferred and indicated pre Series B price. Forecast revenue from investor deck and 75% percentile for public company peer valuation ratios

Based on Series B valuation of $80 million

Preferred stock in private companies: Seal Rock Therapeutics Inc

199,375

Market approach based on indicative term sheet and last round of financing

50/50 weighting to prior series seed preferred and indicated note price. 75% percentile for public company peer valuation ratios

Based on new note indication of $80 million

Preferred stock in private companies: Femto DX Inc

290,046

Market approach based on indicative term sheet and last round of financing

50/50 weighting to prior series B-2 preferred price and public market. 75% percentile for public company peer valuation ratios

Based on Series B valuation of $170 million

Preferred stock in private companies: Promaxo Inc

1,034,684

Market approach based on available comparables and financial performance

a) Last round of financing for series B-2 price, 118% change in enterprise value at 75th percentile; b) revenue multiples 2021 13.3x 2022 9.3x

0%-168.3%

0.6x - 27.7x

0.5x - 59.4x

Preferred stock in private companies: Other

2,392,886

Market approach based on available comparables and financial performance

Market approach based on available information from portfolio companies

Various

Common stock in private companies

325,000

Market approach based on available comparables and financial performance

Historic or projected revenue and/or EBITDA multiples discounted for lack of marketability

Various

SAFE

725,000

Market approach based on available comparables and financial performance

Precedent and follow-on transactions adjusted for marketability

Various

Total Investments

10,955,274

	As of March 31, 2021
	Fair Value		Valuation Approach/ Technique	Unobservable Inputs	Range/ Weighted Average

Convertible notes: Kitotech Medical Inc		326,871	Market approach based on available comparables and financial performance	Market cap of $28.51 million a public company 75th percentile as if converted 2020 note	Range : $28.514 million

Convertible notes		2,227,083	Market approach based on available comparables and financial performance	Conversion prospects, market yield, remaining maturity	1-12% yield

Preferred stock in private companies: Femto DX Inc		159,835	Market approach based on available comparables and financial performance	Based on Series B financing and public company peer multiples using 50:50 percentile	Market value of invested capital $58.66 million

Preferred stock in private companies: Neuroflow Inc		437,495	Market approach based on available comparables and financial performance	Based on Series Seed 2 and last round of financing - Series B	Market value of invested capital $57.98 million

Preferred stock in private companies: other		2,532,128	Market approach based on available comparables and financial performance	Market approach based on available information from portfolio companies	Various

Common stock in private companies		300,000	Market approach based on available comparables and financial performance	Historic or projected revenue and/or EBITDA multiples	Various

SAFE		325,000	Market approach based on available comparables and financial performance	Precedent and follow-on transactions adjusted for marketability	Various

Other investments		421,000	Market approach based on available comparables and financial performance	Precedent and follow-on transactions adjusted for marketability	Various
Total Investments		6,729,412

The following table presents fair value measurements of investments, by major class, as of December 31, 2021, and March 31, 2021, according to the fair value hierarchy:

SCHEDULE OF INVESTMENTS AT FAIR VALUE MEASUREMENTS OF INVESTMENTS

Description	(Level 1)		(Level 2)		(Level 3)		Total
	As of December 31, 2021
	Quoted prices in active markets for identical securities		Significant other observable inputs		Significant unobservable inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments at Fair Value
Private Portfolio Companies
Convertible notes	$	-	$	-	$	4,679,776	$	4,679,776
Preferred stock		-		-		5,225,498		5,225,498
Common stock		-		-		325,000		325,000
SAFEs		-		-		725,000		725,000
		-		-		10,955,274		10,955,274
Public Portfolio Companies
Common stock		630,237		-		-		630,237

Total Investments at Fair value	$	630,237	$	-	$	10,955,274	$	11,585,511

All investments were treated as Level 3 at December 31, 2021 with the exception of four companies, two of which are invested in common stock of the public companies and treated as Level 1 and two of which valued at net asset value (NAV) as practical expedient and valued at $571,000.

Description	(Level 1)		(Level 2)		(Level 3)		Total
	As of March 31, 2021
Description	Level 1		Level 2		Level 3		Total
March 31, 2021
Investments at Fair Value
Private Portfolio Companies
Convertible notes	$	-	$	-	$	2,553,954	$	2,553,954
Preferred stock		-		-		3,129,458		3,129,458
Common stock		-		-		300,000		300,000
SAFEs		-		-		325,000		325,000
Other ownership interests		-		-		421,000		421,000
		-		-		6,729,412		6,729,412

Public Portfolio Companies
Common stock		91,995		-		-		91,995

Total Investments at Fair value	$	91,995	$	-	$	6,729,412	$	6,821,407

We focus on making our investments in the United States, Canada, and Israel. All investments are made and reported in USU.S. dollars. Assets that are denominated in foreign currencies are translated into U.S. dollars at closing rates of exchange on the date of valuation. Transactions during the year are translated at the rate of exchange prevailing on the date of the transaction. The Company does not isolate that portion of results of operations resulting from the changes in foreign exchange rates on securities from fluctuations resulting from changes in market prices of such securities. Such foreign currency translation gains and losses are included in the net realized gains or losses from investments and net changes in unrealized gain or losses from investments on the statement of operations.

SCHEDULE OF INVESTMENTS IN UNREALIZED GAIN OR LOSSES FOREIGN EXCHANGE RATES ON SECURITIES

America Canada Rest of World Total
Fair value March 31, 2021 $ 5,486,011 $ 907,560 $ 427,836 $ 6,821,407
New investments 865,600 200,000 200,000 1,265,600
Proceeds from sale of investments - - - -
Realized gains - - - -
Change in value of investments 28,467 17,859 6,674 53,000
Fair value June 30, 2021 $ 6,380,078 $ 1,125,419 $ 634,510 $ 8,140,007

	America			Canada		Rest of World		Total
Fair value beginning of year March 31, 2021	$	5,486,011		$	907,560	$	427,836	$	6,821,407
New investments		2,653,478			225,000		450,000		3,328,478
Proceeds from sale of investments		(88,554	)		-		-		(88,554	)
Net change in unrealized gains included in condensed Statements of Operations		1,833,616			117,531		144,033		2,095,180
Fair value end of nine months December 31, 2021	$	9,884,551		$	1,250,091	$	1,021,869	$	12,156,511
Changes in unrealized gains or losses for the period included in Condensed Statement of Operations for assets held at the end of the reporting period.								$	2,095,180

	America		Canada		Rest of World		Total
Fair value beginning of year March 31, 2020	$	2,170,499	$	245,000	$	250,000	$	2,665,499
New investments		1,935,000		425,000		50,000		2,410,000
Net change in unrealized gains included in condensed Statements of Operations		656,188		129,374		21,381		806,943
Fair value end of nine months December 31, 2020	$	4,761,687	$	799,374	$	321,381	$	5,882,442
Changes in unrealized gains or losses for the period included in Condensed Statement of Operations for assets held at the end of the reporting period.							$	806,943

America Canada Rest of World Total
Fair value beginning of year March 31, 2020 $ 2,170,499 $ 245,000 $ 250,000 $ 2,665,499
New investments 200,000 50,000 - 250,000
Proceeds from sale of investments - - - -
Realized gains - - - -
Change in value of investments - - - -
Fair value June 30, 2020 $ 2,370,499 $ 295,000 $ 250,000 $ 2,915,499

Working on the experience of our technical advisors, we limit our investments to fintech, technology, and life sciences.

Fintech Technology Life science Total
Fair value March 31, 2021 $ 126,030 $ 1,394,318 $ 5,301,059 $ 6,821,407
New investments - 365,600 900,000 1,265,600
Proceeds from sale of investments - - - -
Realized gains - - - -
Change in value of investments - 21,541 31,459 53,000
Fair value June 30, 2021 $ 126,030 $ 1,781,459 $ 6,232,518 $ 8,140,007

	Fintech		Technology		Life science			Total
Fair value beginning of year March 31, 2021	$	126,030	$	1,394,318	$	5,301,059		$	6,821,407
New investments		-		815,600		2,512,878			3,328,478
Proceeds from sale of investments		-		-		(88,554	)		(88,554	)
Net change in unrealized gains included in condensed Statements of Operations		-		61,179		2,034,001			2,095,180
Fair value end of nine months December 31, 2021	$	126,030	$	2,271,097	$	9,759,384		$	12,156,511
Changes in unrealized gains or losses for the period included in Condensed Statement of Operations for assets held at the end of the reporting period.								$	2,095,180

Fintech Technology Life science Total
Fair value March 31, 2020 $ 101,500 $ 685,002 $ 1,878,997 $ 2,665,499
New investments - - 250,000 250,000
Proceeds from sale of investments - - - -
Realized gains - - - -
Change in value of investments - - - -
Fair value June 30, 2020 $ 101,500 $ 685,002 $ 2,128,997 $ 2,915,499

	Fintech		Technology		Life science		Total
Fair value beginning of year March 31, 2020	$	101,500	$	685,002	$	1,878,997	$	2,665,499
Fair value beginning	$	101,500	$	685,002	$	1,878,997	$	2,665,499
New investments		-		325,000		2,085,000		2,410,000
Net change in unrealized gains included in condensed Statements of Operations		24,530		74,158		708,255		806,943
Fair value end of nine months December 31, 2020	$	126,030	$	1,084,160	$	4,672,252	$	5,882,442
Fair value ending	$	126,030	$	1,084,160	$	4,672,252	$	5,882,442
Changes in unrealized gains or losses for the period included in Condensed Statement of Operations for assets held at the end of the reporting period.							$	806,943

We invest in early-stage private companies developing products or solutions in the fields of fintech, technology and life sciences. Typically, we are investing in interest bearing notes that may be convertible into equity securities upon the completion of qualified subsequent financings, preferred stock, SAFEs or other forms of ownership. Typically notes carry a ~~two year~~two-year term and are then rolled over for additional periods if no other maturity triggers have been achieved. If a convertible note investment were, in our judgment, to become impaired, we would reverse the accrued interest and adjust the valuation to reflect management’s assessment of fair value. If a convertible note investment exceeds its maturity date we ~~usually~~ would request the portfolio company to document an extension, as well as consider whether the overdue note, along with all other available performance data and management reviews lead us to consider whether there should be an adjustment in fair value ~~to reflect impairment~~ of the investment. There were no transfers into or out of Level 3 during the three and nine months ended December 31, 2021 and December 31, 2020.

SCHEDULE OF ADJUSTMENT IN FAIR VALUE TO REFLECT IMPAIRMENT OF INVESTMENT

	Convertible notes		Preferred stock		Common stock		SAFEs		Other ownership interests		Total		Convertible notes			Preferred stock		Common stock		SAFEs		Other ownership interests		Total

Fair value March 31, 2021	$	2,553,954	$	3,129,458	$	391,995	$	325,000	$	421,000	$	6,821,407	$	2,553,954		$	3,129,458	$	391,995	$	325,000	$	421,000	$	6,821,407
Conversions into preferred stock		-		-		-		-		-		-
New investments		650,000		250,000		165,600		100,000		100,000		1,265,600		1,752,491			835,387		190,600		400,000		150,000		3,328,478
Proceeds from sale of investments		-		-		-		-		-		-		(88,554	)				-		-		-		(88,554	)
Realized gains		-		-		-		-		-		-
Change in value of investments		48,221		4,779		-		-		-		53,000
Fair value June 30, 2021	$	3,252,175	$	3,384,237	$	557,595	$	425,000	$	521,000	$	8,140,007
Unrealized gains included in condensed Statements of Operations														461,885			1,260,653		372,642		-		-		2,095,180
Fair value December 31, 2021													$	4,679,776		$	5,225,498	$	955,237	$	725,000	$	571,000	$	12,156,511

Convertible notes Preferred stock Common stock SAFEs Other ownership interests Total

Fair value March 31, 2020 $ 1,528,002 $ 701,497 $ 126,500 $ 73,500 $ 236,000 $ 2,665,499
Conversions into preferred stock 50,000 100,000 - - 100,000 250,000
New investments - - - - - -
Proceeds from sale of investments - - - - - -
Realized gains - - - - - -
Change in value of investments - - - - - -
Fair value June 30, 2020 $ 1,578,002 $ 801,497 $ 126,500 $ 73,500 $ 336,000 $ 2,915,499

	Convertible notes			Preferred stock		Common stock		SAFEs			Other ownership interests		Total

Fair value March 31, 2020	$	1,528,002		$	701,497	$	126,500	$	73,500		$	236,000	$	2,665,499
Fair value, beginning	$	1,528,002		$	701,497	$	126,500	$	73,500		$	236,000	$	2,665,499
Conversions into preferred stock		(597,984	)		678,313		-		(80,329	)		-		-
New investments		935,000			1,025,000		200,000		150,000			100,000		2,410,000
Unrealized gains included in condensed Statements of Operations		556,954			67,665		65,495		81,829			35,000		806,943
Fair value December 31, 2020	$	2,421,972		$	2,472,475	$	391,995	$	225,000		$	371,000	$	5,882,442
Fair value, ending	$	2,421,972		$	2,472,475	$	391,995	$	225,000		$	371,000	$	5,882,442

NOTE 6–6 – EQUITY

~~(A)~~

~~PREFERRED STOCK~~

A) PREFERRED STOCK

~~Series~~Class A

The Company has sold 4,200,000 ~~Series~~Class A Stock Units (“Units”) consisting of one share of ~~Series~~Class A Preferred Stock (“Class A”) designated at a par value of $0.01 per share and one warrant to purchase a share of Common Stock at $0.80 per share. The Units were sold in a private placement to accredited investors. The ~~Series~~Class A ~~Preferred Stock~~ will be converted into shares of Common Stock upon listing of the Company on Nasdaq or NYSE. In the event of any liquidation or winding up of the Company, the holders of the ~~Series~~Class A shall be entitled to receive in preference to the holders of shares of Common Stock a per share amount equal to two times ~~(2 X)~~(2x) their original purchase price plus any declared but unpaid ~~dividends (the Liquidation Preference).~~dividends. All share issuances and obligations are recognized on the books and stock register.

On March 2, 2021, in preparation for an intended IPO, the Company made an offer to all its preferred ~~shareholders~~stockholders to protect them against the possibility that the IPO price might be less than their preferred stock price. Accordingly, ~~Series~~Class A-1 Preferred Stock and ~~Series~~Class A-2 Preferred Stock were created, and the holders of ~~Series~~Class A ~~Preferred Stock~~ were granted an opportunity to purchase shares of Common Stock at $0.40 per share. If ~~shareholders~~Class A stockholders purchased at least $6,000 of Common Stock, their ~~Series~~shares of Class A Preferred Stock were exchanged for ~~Series~~shares of Class A-1 Preferred Stock which is guaranteed to convert into shares of Common Stock at the same price as the IPO price, and if ~~shareholders~~stockholders purchased a pro-rated amount of Common Stock, their ~~Series~~shares of Class A Preferred Stock were exchanged for ~~Series~~Class A-2 Preferred Stock which in turn is convertible into shares of Common Stock at a discount of ~~10%~~10% to the IPO price. In all other respects the ~~Series~~Class A-1 Preferred Stock and ~~Series~~Class A-2 Preferred Stock ~~has~~have the same rights and obligations as the ~~Series~~Class A Preferred Stock. As of ~~June 30,~~December 31, 2021, 1,437,500 shares of ~~Series~~Class A Preferred Stock had been exchanged for ~~Series~~Class A-1 Preferred Stock, and 2,212,500 shares of ~~Series~~Class A Preferred Stock had been exchanged for ~~Series~~Class A-2 Preferred Stock, respectively, leaving outstanding 550,000 shares of ~~Series A Preferred Stock (“Series A”) designated at a par value of $0.01~~ ~~per share.~~Class A.

~~Series~~Class B

There are ~~also~~ ~~6,000,000~~9,000,000 shares of ~~Series~~Class B Preferred Stock (“~~Series~~Class B”) authorized designated at a par value of $0.01per share. This designation includes Classes B, B-1, B-2, and B-3. The ~~Series~~Class B ~~can~~will be converted into shares of Common Stock upon listing of the Company on ~~Nasdaq.~~Nasdaq or NYSE. In the event of any liquidation or winding up of the Company, the holders of the ~~Series~~Class B shall be entitled to receive in preference to the holders of Common Shares and ~~Series~~Class A Preferred Stock, a per share amount equal to ~~two~~one times ~~(2 X)~~(1x) their original purchase price plus any declared but unpaid ~~dividends (the Liquidation Preference).~~dividends. The holders of ~~Series~~Class B shall be entitled to receive ~~out of any funds of the Corporation at a time legally available for the declaration of~~ dividends either first or simultaneously with dividends ~~at a cumulative rate of~~ ~~10%~~ ~~under such terms and conditions as the Board shall prescribe, provided, however, that in the event dividends shall be~~ declared, ~~dividends on issued and outstanding Series B shall be payable before any dividends shall be declared~~set apart or paid, ~~upon or set apart for the Common~~on Junior Stock. ~~At June 30, 2021, the Company had sold~~ ~~4,320,156~~ ~~shares of Series B for proceeds of $3,456,124~~.

On March 2, 2021, in preparation for an intended future IPO, the Company made an offer to all its preferred ~~shareholders~~stockholders to protect them against the possibility that the IPO price might be less than their preferred stock price. Accordingly, ~~Series~~Class B-1 and ~~Series~~Class B-2 Preferred Stock (“~~Series~~Class B-1” and ~~“Series~~“Class B-2”, respectively) were created, and the holders of the ~~Series~~Class B were granted an opportunity to purchase shares of Common Stock at $0.40 per share. If ~~shareholders~~stockholders purchased at least $6,000 of ~~common stock,~~Common Stock, their ~~Series~~Class B were exchanged for ~~Series~~Class B-1 which is guaranteed to convert into shares of Common Stock at the same price as the IPO price, and if ~~shareholders~~stockholders purchased a pro-rated amount of ~~common stock~~Common Stock their ~~Series~~Class B were exchanged for ~~Series~~Class B-2 which converts into shares of Common Stock at a discount of ~~10%~~10% to the IPO price. The Class B-1 and B-2 accrue a dividend of 10% per annum payable only in the event of an IPO or liquidation event in common stock assuming it was first converted into B-1 or B-2 as the case may be at the Original Issue Price. In all other respects, the ~~Series~~Class B-1 and ~~Series~~Class B-2 have the same rights and obligations as the ~~Series~~Class B. At ~~June 30,~~December 31, 2021, ~~1,857,656~~1,166,406 shares of ~~Series~~Class B had been exchanged for ~~Series~~Class B-1, and 2,176,250 shares of ~~Series~~Class B had been exchanged for ~~Series~~Class B-2, respectively, leaving outstanding 286,250 shares of ~~Series~~Class B. During the three and nine month periods ended December 31, 2021, the Company sold 2,176,250 and 4,458,750 shares of Class B-1 Preferred Stock for $1,741,000 and $3,567,001, respectively.

As of December 31, 2021, the Company authorized 3,000,000 shares of Class B-3 Preferred (“Class B-3”). The Certificate of Designation of the Class B-3 shares was filed with the Delaware Secretary of State on October 5, 2021. The Class B-3 will be offered for $0.80 per share and have a cumulative dividend of 10% per annum payable only when as and if declared by the Board. The remaining terms and conditions are substantially the same as for all other Class B shares, including mandatory conversion upon a majority vote of the Class B-3 stockholders, closing of a qualified financing of at least $10 million, or listing on NYSE or NASDAQ. As of the date of this filing, the board of directors has not declared any dividends.

~~The Company sold~~ ~~691,250~~ ~~shares of Series B-1 in the three months ended June 30, 2021 and is still selling Series B-1 shares as at the date of this report.~~

B) COMMON STOCK

The Company has authorized 40,000,000 shares of common stock at a par value of $0.01 per share. As of ~~June 30,~~December 31, 2021, and March 31, 2021 a total of ~~13,268,871~~13,287,621 and 9,983,082 shares of the Company’s common stock were issued and outstanding, respectively.

During the three ~~months~~and nine month periods ended ~~June 30,~~December 31, 2021, in connection with the amendment of Preferred Stock rights described in A) Preferred Stock above, the Company ~~issued~~had sold ~~307,178~~0and 3,285,789 shares of Common Stock for $~~122,876~~0 ~~in connection with the amendment~~ and $1,314,317, of ~~preferred stock described in section A above. Also, during the year ended March 31, 2021 a total of~~ ~~2,978,611~~ ~~shares of Common Stock were subscribed under this program for a total consideration of~~which $1,191,442 ~~which~~ was received and accrued as ~~stock~~ subscription liability at March 31, ~~2021, pending final closing of the round which occurred in April 2021, at which time these shares were recognized as fully-issued shares of common stock.~~2021.

D)During each of the three and nine month periods ended December 31, 2021, the Company issued 0and 18,750 shares of Common Stock for $0 and $618, respectively, in connection with the exercise of stock options.

C) STOCK OPTIONS

In April 2018, the Board approved the introduction of the Kyto Technology and Life Science, Inc. Incentive Stock Option Plan (“the 2018 Plan”) reserving 2,697,085 shares for issuance to employees, consultants and directors, with the objective of securing the benefit of services for stock options rather than cash salaries.

In July 2019, the Board approved the introduction of the Kyto Technology and Life Science 2019 Stock Option and Incentive Plan (“2019 Plan”), and reserved 2 million shares for issuance to directors, officers, consultants, and advisors. Options granted under the 2019 Plan expire May 21, ~~2029~~.2029.

In December 2020, the Board approved ~~the introduction of~~ the Kyto Technology and Life Science 2020 Non Qualified Stock Option Plan (“2020 Plan”), and reserved 2 million shares for issuance to directors, officers, consultants and advisors. Options granted under the 2020 Plan expire December 16, 2030. On December 20, 2021, the Board approved the creation of the 2021 Stock and Incentive Plan and reserved 2,000,000 shares of common stock as a pool for the grant of stock options.

During the three months ended ~~June 30,~~December 31, 2021, and ~~June 30,~~December 31, 2020, the Company issued a total of ~~250,000~~750,000 and ~~120,000~~217,500 non-qualified stock options, respectively, to consultants and advisors vesting over terms of two years. During the corresponding nine months ended December 31, 2021, and December 31, 2020, the Company issued a total of ~~two~~2,290,000 and 847,500 ~~years.~~non-qualified stock options, respectively.

SCHEDULE OF OPTIONS VESTED

	Number of options granted			Weighted average exercise price		��	Weighted average remaining life years
Outstanding March 31, 2021		2,634,250		$	0.05			8.13
Granted		2,290,000			0.07			9.67
Exercised		(18,750	)		(0.03	)		-
Cancelled		-			-			-
Outstanding December 31, 2021		4,905,500		$	0.06			8.71

Exercisable December 31, 2021		2,791,705		$	0.05			8.90

Number of options granted Weighted average exercise price Weighted average remaining life years
Outstanding March 31, 2021 2,634,250 $ 0.05 8.13
Granted 250,000 0.07 9.82
Exercised - - -
Cancelled - - -
Outstanding June 30, 2021 2,884,250 $ 0.05 8.53

Exercisable June 30, 2021 1,782,610 $ 0.04 8.05

In connection with the grant of stock options the Company ~~recognises~~recognizes the value of the related option expense using the Black Scholes model, with appropriate assumptions for option life, stock value, risk free interest rate, volatility, and cancellations.

SCHEDULE OF FAIR VALUE ASSUMPTIONS - STOCK OPTIONS

June 30, 2021 March 31, 2021
Stock Price at grant date $ 0.070 $ 0.033 - $ 0.078
Exercise Price $ 0.070 $ 0.033 - $ 0.078
Term in Years 0 - 2.00 0 - 2.00
Volatility assumed 196 % 71% - 196%
Annual dividend rate 0.0 % 0.0 %
Risk free discount rate 0.12 % 0.12% - 2.0%

	December 31, 2021			March 31, 2021
Stock Price at grant date	$	0.07			$0.033 - $ 0.078
Exercise Price	$	0.07			$0.033 - $ 0.078
Term in Years		0 - 2.00			0 - 2.00
Volatility assumed		196	%		71% - 196%
Annual dividend rate		0.0	%		0.0	%
Risk free discount rate		0.12	%		0.12% - 2.0%

The compensation expense calculated at time of grant is ~~amortised~~recognized over the vesting period for the options granted. During the three and nine months ended ~~June 30,~~December 31, 2021, the Company recognized $32,579and $54,033 respectively, as stock-based compensation expense. For the corresponding three and nine months ended December 31, 2020, the Company ~~amortized~~recognized $~~10,557~~3,474 and $~~1,048~~17,326, ~~respectively, as option expense.~~ respectively.

The intrinsic value of outstanding options at ~~June 30,~~December 31, 2021 was $~~63,274~~62,580, and $~~45,011~~56,987 of the option expense upon grant remained ~~unamortized~~unrecognized at ~~June 30,~~December 31, 2021 with a remaining vesting period of ~~1.39~~1.13 years.

E)D) WARRANTS

In conjunction with the sale of ~~stock~~Class A Stock Units, the Company issued 4,200,000 warrants to purchase common stock at a price of $1.20 per share for a period of three years. The Company did not bifurcate the value of the warrants as the fair value of the warrant was determined to be de minimis. The Company has not issued any warrants since September 2019. At December 31, 2021 and March 31, 2021 the fair value of the warrants was de minimis.

~~three~~SCHEDULE OF WARRANTS ~~years.~~

	Number of warrants			Weighted average exercise price		Weighted average remaining life in years
Outstanding March 31, 2020		4,200,000		$	1.20		2.9
Granted		-			-		-
Exercised		(2,603,333	)	$	0.60		-
Cancelled		-			-		-
Outstanding December 31, 2020		1,596,667		$	1.20		2.2

Exercisable March 31, 2020		4,200,000		$	1.20		2.9
Exercisable December 31, 2020		1,596,667		$	1.20		1.4

	Number of warrants		Weighted average exercise price		Weighted average remaining life in years
Outstanding March 31, 2021		1,596,667	$	1.20		1.4
Granted		-		-		-
Exercised		-		-		-
Cancelled		-		-		-
Outstanding December 31, 2021		1,596,667	$	1.20		0.6

Exercisable March 31, 2021		1,596,667	$	1.20		1.4
Exercisable December 31, 2021		1,596,667	$	1.20		0.6

The Company values the warrants using the Black Scholes model, with appropriate assumptions for warrant life, stock value, risk free interest rate, and volatility. The assumptions used for warrant valuation were as follows:

SCHEDULE OF ~~WARRANTS~~FAIR VALUE ASSUMPTIONS - STOCK OPTIONS

Number of warrants Weighted average
exercise price Weighted average remaining life in years
Outstanding March 31, 2021 1,596,667 $ 1.20 1.4
Granted -
Exercised - -
Cancelled - -
Outstanding June 30, 2021 1,596,667 $ 1.20 1.1

Exercisable June 30, 2021 1,596,667 $ 1.20 1.1

	December 31, 2021
Stock Price at grant date	$	0.006
Exercise Price	$	1.200
Term in Years		3
Volatility assumed		73	%
Annual dividend rate		0.0	%
Risk free discount rate		1.79	%

~~The intrinsic value of outstanding warrants at June 30, 2021 was~~ ~~zero~~.

NOTE 7 – FINANCIAL HIGHLIGHTS

SCHEDULE OF FINANCIAL HIGHLIGHTS

Per share data ( a)
Per share data (a)							Three months ended December 31, 2021			Three months ended December 31, 2020			Nine months ended December 31, 2021			Nine months ended December 31, 2020
	June 30, 2021			March 31, 2021
Net asset value	$	0.64		$	1.03		$	0.97		$	0.75		$	0.97		$	0.95
Net increase (decrease) in net assets	$	(0.03	)	$	0.06
Net unrealized gain (loss) on investments	$	0.00		$	0.18

Net investment loss							$	(0.03	)	$	(0.04	)	$	(0.08	)	$	(0.08	)

Net unrealized gain on investments							$	0.05		$	0.04		$	0.16		$	0.12

Net increase in net assets							$	0.02		$	-		$	0.07		$	0.04

Ratios and Supplemental Data

Net assets, end of period	$	8,537,246		$	6,993,163		$	12,911,623		$	6,399,543		$	12,911,623		$	6,399,543

Weighted average common shares outstanding, end of period		13,268,871			5,836,832			13,287,621			8,528,007			13,273,038			6,737,152

Total operating expenses/net assets		4.5	%		11.0	%		2.9	%		5.2	%		8.6	%		8.3	%

Net increase (decrease) in net assets		(3.9)	%		6.1	%
Net investment loss/net assets								(2.9	)%		(5.2	)%		(8.6	)%		(8.3	)%

Total return		(0.9)	%		1.2	%		2.5	%		(0.1	)%		7.6	%		4.3	%

(a)

Per share data is based on the weighted average number of common shares outstanding at the end of the period.

NOTE 8 - SUBSEQUENT EVENTS

Subsequent to ~~June 30,~~February 21, 2021, the Company has ~~sold~~collected more than $~~1,274,000~~800,000 from the sale of ~~shares of Series B-1 Preferred~~ stock since December 31, 2021, and ~~issued~~ ~~18,750~~ ~~shares of Common Stock, and invested~~spent $~~952,000~~400,000 ~~in additional~~on new investments.

~~ITEM 2.~~

~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS~~

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

PLAN OF OPERATIONS

The Company was originally formed to acquire and develop proprietary drugs for the treatment of cancer, arthritis, and other autoimmune diseases and had been evaluating a number of strategies. ~~As of March 31, 2018, the Company had accumulated a deficit of $32,380,746 from all prior operations.~~ In April 2018, the Board adopted a new business plan focused on the development of ~~early stage~~early-stage technology and life science businesses through early stage investment funding. The Company has recruited a number of experienced investment consultants from a network that includes angel investors, corporate managers, sophisticated early stage investors and successful entrepreneurs with experience across a number of technology and life science products and markets, and relies on input from these advisors in conducting due diligence and making investment decisions. In order to offset the risk in early-stage investing, the Company works with angel investment groups and other sophisticated investors and participates only after these groups have completed due diligence and committed to invest, in effect becoming lead investors. The Company then completes its own due diligence and invests under identical terms as the lead investors. The Company will do follow-on investments in existing portfolio companies, assuming adequate progress, when portfolio companies initiate new financing rounds. The Company currently does not typically invest more than $250,000 in any single investment. Generally, the Company’s investments represent less than 5% ownership interests, and the Company therefore has no effective control or influence over the management or commercial decisions of the companies in which it invests. The Company plans to generate revenue from realized gains from the sale of the businesses in which it has invested, or some or all of its shareholdings in those cases where portfolio companies go public. Generally, it is expected that investments will be realized from an exit within a period of four to five years following initial investment. Such exits or liquidity events are outside the Company’s control and depend on merger and acquisition (“M&A”) transactions or an initial public offering (“IPO”) which may result in cash or equity proceeds. Accordingly, it is difficult to forecast revenue, net income, and cash flow. Other than making its initial and, potentially, follow-on investments in its portfolio companies, the Company does not provide any financial support to any of its investees.

The Company has one regular employee – the CEO, Mr, Paul Russo. Prior to December 31, 2020, he was acting as a consultant to the Company and did not receive contractual compensation for his services in the form of cash. As of January 1, 2021, Mr. Russo was engaged as an employee of the Company at a salary of $400,000 per annum of which ~~60% is paid monthly,~~$100,000 and ~~the balance deferred to be paid once the Company lists and starts trading on the Nasdaq exchange. The full terms of Mr. Russo’s employment are described~~$300,000 was earned in ~~an engagement letter filed on Form 8-K on February 1, 2021, which was approved by the Compensation committee of the Board of Directors on that date. During~~ the three months and nine months ended ~~June 30,~~December 31, 2021, ~~Mr. Russo received~~respectively, of which a balance of $80,000 ~~gross payroll, no~~was deferred at December 31, 2021. No consulting fees and no options were ~~granted.~~granted to him during these periods. During the three months and nine months ended ~~June 30,~~December 31, 2020, Mr. Russo received no payroll or consulting fees, however in the three and nonine months ended December 31, 2020, he received a bonus of $50,000 and was granted options ~~were granted~~ to ~~him.~~purchase 215,000 shares of Common stock.

The Company has created a portfolio of minority investments in early-stage start-up companies and derives its revenue opportunity from the sale of those investments. Such sales are outside the Company’s control and depend on M&A transactions or IPOs which may result in cash or equity proceeds. Accordingly, it is difficult to forecast revenue, net income, and cash flow. As of ~~the date of this filing,~~December 31, 2021, the Company had approximately $600,000 of cash to cover its operating expenses, and new investment requirements, and is continuing to raise additional funding on a recurring monthly basis. If successful, it will have sufficient funding for further investments and ongoing operations. However, there is no assurance that the Company will be able to raise sufficient cash to cover its requirements on attractive terms, if at all, and whether it will be able to continue as a going concern. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Stay at home orders and general economic uncertainties arising out of the current Covid-19 epidemic have created additional delays and uncertainty. To date there has been no disruption to the Company’s business operations, although some of its portfolio investment companies report delays in their programs.

At March 31, 2020, management determined that the Company was an investment company for purposes of ASC 946 disclosure, and committed to follow the specialized accounting and reporting guidance contained therein. Accordingly, a new company, Kyto Investments, Inc. (“KI”) was incorporated in Delaware in December 2020 in preparation for a restructuring and an N-2 Registration Statement filed in March 2021 for review by the SEC. KI is an internally managed, closed-end investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). Immediately upon effectiveness of this N-2 Registration Statement, the Company will merge with KI and the Company will be the surviving entity. As of the completion of the merger, the Company will constitute a “successor issuer” for the purposes of Rule 414 under the Securities Act and may continue the current offering by filing post-effective amendments to the Registration Statements. Prior to the merger, the Company had fewer than 100 ~~non affiliated~~non-affiliated investors and filed under the 1934 Act relying on exemption Rule 3( c )(1).

Results of Operations

Revenue: In the three months and nine months ended ~~June 30,~~December 31, 2021 the Company reported no realized investment income as there were no liquidity events related to its investment portfolio. The Company reported $691,864 and ~~June 30,~~$2,095,180 of net change in unrealized gains from investments respectively, in these periods. In the three months and nine months ended December 31, 2020 the Company reported no realized investment income as there were no liquidity events related to its investment portfolio. The Company reported ~~$53,000~~$328,694 and $0$806,942 of net change in unrealized gains from investments respectively, ~~for the three months ended June 30, 2021 and 2020.~~in these same periods.

Professional fees: In the three months and nine months ended ~~June 30,~~December 31, 2021, ~~and June 30, 2020,~~ the Company reported ~~$166,954~~$98,241 and ~~$12,938,~~$371,600, respectively, of professional fees, mainly for legal and accounting services. In the corresponding three months and nine months ended December 31, 2020 the Company reported $91,669 and $168,212, respectively.

Other ~~Operating~~operating expenses: Other operating expenses include payroll, consulting, and travel and conference fees associated with ~~fund~~ raising capital and review of investment deal-flow. In the three months and nine months ended ~~June 30,~~December 31, 2021, the Company incurred other operating expenses of $273,473 and ~~June 30,~~$741,089, respectively. In the corresponding three months and nine months ended December 31, 2020, the Company incurred other operating expenses of ~~$219,838~~$241,047 and ~~$25,930,~~$363,983, respectively.

For the three months and nine months ended ~~June 30,~~December 31, 2021, ~~and 2020,~~ the Company’s net ~~decrease~~increase in net assets resulting from operations was ~~$333,792~~$188,151 and ~~$38,868,~~$499,798, respectively. For the corresponding three months and nine months ended December 31, 2020, the Company’s net increase (decrease) in net assets resulting from operations was ($4,017) and $275,252, respectively.

During the three and nine months ended ~~June 30,~~December 31, 2021, the Company was subject to shelter in place regulations imposed by the State of California in mitigation of the spread of the Corona 19 virus. Since the Company does not have any dedicated office space and works virtually from the homes of its officers, there was no major disruption in working routines which continued by video and teleconference. Uncertainty arising from Covid 19 created a ~~slow down~~slow-down in the rate at which the Company was able to raise ~~Series~~Class B funding, and thereby continue to make investments, however the Company did see a reduction in travel and investor relations expenses during the period. The Company has more than 60 discrete investments in a range of different industry and geographic segments, many of which are in the life science and medical space. While there is clearly a risk that our portfolio companies may be adversely affected in their ability to raise future funding or do business, there have been no management reports revealing major problems and some of our portfolio companies may actually benefit from new opportunities created. We believe that our policy of spreading our investments in relatively small amounts over a large number of portfolio companies helps mitigate some of the risk that might be suffered by any of our investments.

Liquidity, ~~and~~ Capital Resources and Going Concern

The Company had net assets of ~~$8,537,246~~$12,911,623 and $6,993,163 at ~~June 30,~~December 31, 2021 and March 31, 2021, respectively. Cash was ~~$481,506~~$608,223 and $1,437,868 at ~~June 30,~~December 31, 2021 and March 31, 2021, respectively.

26The Company’s condensed interim financial statements are prepared in accordance with U.S. GAAP, which requires the use of estimates, assumptions and the exercise of subjective judgment as to future uncertainties. Actual results could differ from those estimates, assumptions, and judgments. Significant items subject to such estimates will include determining the fair value of investments, revenue recognition, income tax uncertainties, stock-based compensation, and other contingencies.

The Company has created a portfolio of minority investments in early-stage start-up companies and derives its revenue opportunity from the sale of those investments. Such sales are outside the Company’s control and depend on M&A transactions or IPOs which may result in cash or equity proceeds. Accordingly, it is difficult to forecast revenue, net income, and cash flow. As of December 31, 2021, the Company had approximately $600,000 of cash to cover its operating expenses, and new investment requirements and is continuing to raise additional funding on a recurring monthly basis. If successful, it will have sufficient funding for further investments and ongoing operations. However, there is no assurance that the Company will be able to raise sufficient cash to cover its requirements on attractive terms, if at all, and whether it will be able to continue as a going concern. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed interim financial statements have been prepared assuming the Company will continue to operate as a going concern and do not include any adjustments that might result from the outcome of this uncertainty. Stay at home orders and general economic uncertainties arising out of the current Covid-19 epidemic have created additional delays and uncertainty. To date there has been no disruption to the Company’s business operations, although some of its portfolio investment companies report delays in their programs.

Cash from operating activities

The Company used net cash of ~~$1,632,238~~$4,520,139 in operating activities during the ~~three~~nine months ended ~~June 30,~~December 31, 2021 compared to ~~$282,427~~$2,876,156 used for the ~~three~~nine months ended ~~June 30,~~December 31, 2020. ~~Main~~The main reasons for the higher level in 2021 were an increase in investments in portfolio companies and increased professional fees and operating expenses.

Cash from investing activities

No cash was used in investing activities.

Cash from financing activities

The Company had a net cash inflow from financing activities of ~~$675,876~~$3,690,494 in the ~~three~~nine months ended ~~June 30,~~December 31, 2021 compared to ~~$375,000~~$3,406,195 in the ~~three~~nine months ended ~~June 30,~~December 31, 2020. This inflow included ~~$553,002~~$3,567,001 proceeds from the sale of ~~Series~~Class B preferred stock (including B-1 and ~~$122,874~~B-3), and $122,875 proceeds from the sale of common stock, respectively, in the ~~three~~nine months ended ~~June 30,~~December 31, 2021, compared to ~~$375,000~~$1,873,125 from the sale of ~~Series~~Class B preferred stock, and $1,566,229 proceeds from the sale of common stock, respectively, in the corresponding nine month prior ~~period.~~period ended December 31, 2020.

The Company’s plan of operations for the next twelve months is to continue to focus its efforts on finding new sources of capital by means of private placements, and to use this capital to fund additional investments as they become available, and to cover operating expenses. The Company is planning to uplift from OTC to the NASDAQ market, and raise additional funding from an initial public offering (“IPO)” for which as an initial step it has submitted an N-2 filing to the SEC for review.

CRITICAL ACCOUNTING POLICIES

USE OF ESTIMATES

Significant estimates at ~~June 30,~~December 31, 2021 and March 31, 2021 include the valuation of investments, deferred tax assets, tax allowance, stock options and warrants.

INVESTMENT AND VALUATION OF INVESTMENT AT FAIR VALUE

The Company reviews the performance of ~~the underlying~~its investments based on available information, including management reports, press releases, web site announcements and progress reports, third party equity updates, ~~subsequent financing transactions,~~ management interviews and, where accessible, financial reports, to determine their ~~current and future potential value and liquidity.~~fair values. In the event that Management considers the fair value of an investment to be ~~impaired,~~greater or less than the ~~carrying~~current book value, of the ~~investment~~difference will be ~~written down by an impairment charge to reflect Management’s estimated valuation. The Company recognized impairment~~reflected as unrealized gains or losses in investments in the statements of ~~one of its investments which was written down by $61,046 in September, 2019. The Company has not experienced any other impairment write-downs in any prior or subsequent periods.~~operations.

The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures”, for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing US GAAP that require the use of fair value measurements which establishes a framework for measuring fair value and expands disclosure about such fair value measurements.

The Company has established procedures to estimate the fair value of its investments which the Company’s board of directors has reviewed and approved. The Company ~~will use~~uses observable market data to estimate the fair value of investments to the extent that market data is available. In the absence of quoted market prices in active markets, or quoted market prices for similar assets or in markets that are not active, the Company ~~will use~~uses the valuation methodologies described below with unobservable data based on the best available information in the circumstances, which incorporates the ~~company’s~~Company’s assumptions about the factors that a market participant would use to value the asset.

For investments for which quoted market prices are not available, which ~~will~~ comprise most of our investment portfolio, fair value ~~will be~~is estimated by using the income, market, or ~~market~~back-solve approach. The income approach is based on the assumption that value is created by the expectation of future benefits discounted to a current value and the fair value estimate is the amount an investor would be willing to pay to receive those future benefits. The market approach compares recent comparable transactions to the investment. The back solve method involves comparing available data over a period of time and inferring a new valuation based on changes from a known starting point, for example the cost of an investment. Adjustments are made for any dissimilarity between the comparable transactions and the investments. These valuation methodologies involve a significant degree of judgment on the part of our management and board.

In determining the appropriate fair value of an investment using these approaches, the most significant information and ~~assumption~~assumptions may include, as applicable: available current market data, including relevant and applicable comparable market transactions, applicable market yields and multiples, security covenants, call protection provisions, information rights, the nature and realizable value of any collateral, the ~~portfolio company’s~~investment’s ability to make payments, its earnings and discounted cash flows, the markets in which the ~~portfolio~~ company does business, comparisons of financial ratios of peer companies that are public, merger and acquisition ~~comparable,~~comparables, the principal market and enterprise values, environmental factors, ~~financing transactions~~subsequent financings by the portfolio ~~company,~~investment, among other factors.

~~Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities~~

~~Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data~~

~~Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions. Most of our investments fall into this category.~~

RECENT ACCOUNTING PRONOUNCEMENTS

Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

OFF-BALANCE SHEET ARRANGEMENTS

As of the date of this Quarterly Report on Form 10-Q, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

IMPACT OF INFLATION

The Company does not foresee any implications being created by the current rate of inflation.

CONTRACTUAL OBLIGATION

The Company has no contractual obligations outside the normal course of business with its vendors, advisors, and consultants.

~~ITEM 3.~~

~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for smaller reporting company.

~~ITEM 4.~~

~~CONTROLS AND PROCEDURES~~

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that material information required to be disclosed in our periodic reports filed under the Securities Exchange Act of 1934, as amended, or 1934 Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and to ensure that such information is accumulated and communicated to our management, including our chief executive officer/chief financial officer (principal financial officer) as appropriate, to allow timely decisions regarding required disclosure. During the three months ended ~~June 30,~~December 31, 2021 we carried out an evaluation, under the supervision and with the participation of our management, including the principal executive officer and the principal financial officer (principal financial officer), of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13(a)-15(e) under the 1934 Act. Based on this evaluation, because of the Company’s limited resources and limited number of employees, management concluded that our disclosure controls and procedures were ineffective as of ~~June 30,~~December 31, 2021. Notwithstanding this conclusion, we believe that our unaudited condensed financial statements contained in this Quarterly Report fairly present our financial position, results of operations and cash flows for the periods covered thereby in all material respects.

Management’s Report on Internal Control over Financial Reporting

With the participation of our Chief Executive Officer and Chief Financial Officer (principal financial officer), our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of ~~June 30,~~December 31, 2021 based on the framework in Internal Controls—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our evaluation and the material weaknesses described below, management concluded that the Company did not maintain effective internal control over financial reporting as of ~~June 30,~~December 31, 2021 based on the COSO framework criteria. Management has identified control deficiencies regarding the lack of segregation of duties and the need for a stronger internal control environment. Management of the Company believes that these material weaknesses are due to the small size of the Company’s accounting staff. The small size of the Company’s accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit of such remediation. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of external legal and accounting professionals. As we grow, we expect to increase our number of employees, which will enable us to implement adequate segregation of duties within the internal control framework. In addition, we have identified the following material weaknesses: (i) the Company utilizes accounting software that does not prevent erroneous or unauthorized changes to previous reporting periods and/or can be adjusted so as not to provide an adequate audit trail of entries made in the accounting software, and (ii) we have identified a material weakness in our internal controls relating to the accounting of transactions that are either highly complex and/or unusual in nature. ~~In such instances, we seek to augment our internal accounting capabilities by obtaining assistance from third-parties who have greater expertise in such areas.~~

~~These~~During the quarter ended December 31, 2021, we discovered our internal control ~~deficiencies could~~over financial reporting did not result in ~~a misstatement of account balances that would result in a reasonable possibility that~~the proper accounting for earnings per share for the three months ended June 30, 2021 and the three and six months ended September 30, 2021, which we determined to be a material ~~misstatement to our financial statements may not be prevented or detected on a timely basis.~~weakness. Accordingly, we have determined that these control deficiencies as described above together constitute a material weakness. However, management believes that despite our material weaknesses, our financial statements for the ~~year~~three and nine month periods ended ~~June 30,~~December 31, 2021 are fairly stated, in all material respects, in accordance with USU.S. GAAP.

Limitations on Effectiveness of Controls and Procedures

Our management, including our Chief Executive Officer and Chief Financial Officer (principal financial officer), does not expect that our disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

PART II. OTHER INFORMATION

~~ITEM 1.~~

~~LEGAL PROCEEDINGS~~

ITEM 1. LEGAL PROCEEDINGS

None

~~ITEM 1A.~~

~~RISK FACTORS.~~

ITEM 1A. RISK FACTORS.

Not required for smaller reporting company.

~~ITEM 2.~~

~~UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.~~

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

The ~~Corporation filed a certificate~~Company has issued certificates of ~~Designation in April 2021~~designation for ~~the issue of~~ up to ~~3,200,000~~9 million shares of Series B-1, ~~Preferred stock to accredited investors under Section 4(2) or Rule 506~~B-2, and B-3 of Regulation D of the Securities Act 1933. As of the filing date, the Corporation had sold a total of 3,200,000 shares of Series B-1 Preferred stock to accredited investors. The Company will use the net proceeds for investment purposes and operating expenses.which 8,087,656 were subscribed through December 31, 2021.

~~ITEM 3.~~

~~DEFAULTS UPON SENIOR SECURITIES~~

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

~~ITEM 4.~~

~~MINE SAFETY DISCLOSURES~~

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

~~OTHER INFORMATION~~

None

~~ITEM 6.~~

~~EXHIBITS~~

ITEM 6. EXHIBITS

Index to Exhibits on page 13

INDEX TO EXHIBITS

EXHIBIT NUMBER		DESCRIPTION

3 (i) (a)		Articles of Incorporation of Kyto BioPharma Inc.

3(i) (b)		Articles of Amendment changing name to Kyto Technology and Life Science Inc *

3(ii)		Bylaws of Kyto Technology and Life Science Inc. **

3.4		Delaware incorporation and revised articles of incorporation **

18.1		Auditors preferability letter re adoption of ASC 946***

31.1		Section 302 certification of principal executive officer and principal financial & accounting officer

32.1		Certification pursuant to 18 USC Section 1350 adopted pursuant to section 906 of the Sarbanes Oxley Act of 2002 of the principal executive officer and principal financial accounting officer

~~101.ins~~		Inline XBRL Instance Document*
~~101.sch~~		Inline XBRL Taxonomy Schema*
~~101.cal~~		Inline XBRL Taxonomy Calculation Linkbase*
~~101.def~~		Inline XBRL Taxonomy Definition Linkbase*
~~101.lab~~		Inline XBRL Taxonomy Label Linkbase*
~~101.pre~~		Inline XBRL Taxonomy Presentation Linkbase*
~~104~~		Cover Page Interactive Data File – (formatted in Inline XBRL and contained in Exhibit 101)*

*	Filed as Exhibit to Company’s Form 10-SB on September 12, 2003 with the Securities and Exchange Commission.
**	Previously filed with Form 8-K on July 17, 2019.
***	Filed as Exhibit with Form 10-K on July 2, 2020.

SIGNATURES

In accordance with 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.

	Kyto Technology and Life Science, Inc.

	By:	/s/ Paul Russo
		Paul Russo
		Chief Executive Officer, principal executive officer,

Date: February 22, 2022

~~Date: October 06, 2021~~

SIGNATURES

In accordance with 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.

	Kyto Technology and Life Science, Inc.

	By:	/s/ Simon Westbrook
		Simon Westbrook
		Principal financial and accounting officer

Date: February 22, 2022

~~Date: October 06, 2021~~

		1			2
	For the three months ended June 30,
	2021			2020
INVESTMENT INCOME

Interest and other income	$	-		$	-

Total investment income		-			-

EXPENSES
Professional fees		166,954			12,938
Other operating expenses		219,838			25,930

Total expenses		386,792			38,868

Net investment loss		(386,792	)		(38,868	)

Net change in unrealized gain from investments		53,000			-

Net decrease in net assets resulting from operations	$	(333,792	)	$	(38,868	)

Loss per Common Share, Basic and Fully diluted
Net decrease in net assets resulting from operations per common share	$	(0.03	)	$	(0.01	)

Weighted average common shares outstanding		13,268,871			5,836,832

			Preferred A				Preferred B				Common		Additional
	Preferred A		Stock		Preferred B		Stock		Common		Stock		Paid-in		Accumulated
	Shares		Amount		Shares		Amount		Shares		Amount		Capital		Deficit			Total
Balance, March 31, 2020		4,200,000	$	42,001		812,500	$	8,125		5,836,832	$	58,368	$	35,943,369	$	(33,384,252	)	$	2,667,611
Net decrease in net assets resulting from operations																(38,868	)		(38,868	)
Sale of Series B Preferred stock at $0.80 per share				-		468,750		4,063				-		370,937					375,000
Sale of common stock at $0.40 per share
Sale of common stock at $0.40 per share, shares
Compensation expense from stock options														1,048					1,048

Balance, June 30, 2020		4,200,000	$	42,001		1,281,250	$	12,188		5,836,832	$	58,368	$	36,315,354	$	(33,423,120	)	$	3,004,791

Balance, March 31, 2021		4,200,000	$	42,001		3,628,906	$	36,289		9,983,082	$	99,831	$	39,772,228	$	(32,957,186	)	$	6,993,163
Balance		4,200,000	$	42,001		3,628,906	$	36,289		9,983,082	$	99,831	$	39,772,228	$	(32,957,186	)	$	6,993,163
Net decrease in net assets resulting from operations																(333,792	)		(333,792	)
Sale of Series B Preferred stock at $0.80 per share				-		691,250		6,913						546,089					553,002
Sale of common stock at $0.40 per share										3,285,789		32,858		1,281,458					1,314,316
Compensation expense from stock options														10,557					10,557

Balance, June 30, 2021		4,200,000	$	42,001		4,320,156	$	43,202		13,268,871	$	132,689	$	41,610,332	$	(33,290,978	)	$	8,537,246
Balance		4,200,000	$	42,001		4,320,156	$	43,202		13,268,871	$	132,689	$	41,610,332	$	(33,290,978	)	$	8,537,246

Portfolio Company	Industry		Investment	Cost		Fair value		% of net assets (a)
Other investments
Enduralock LLC	Technology		34.1 Series A-1 Ownership Units	$	30,000	$	30,000	0.4%
Enduralock LLC	Technology		39.7 Series A-1 Ownership Units		35,000		35,000	0.4%
Exodos Life Sciences LP	Life science		Class A-1 Preferred Ownership Units		206,000		206,000	2.4%
Green Sun Medical LLC	Life science		2,193 Class A-1 Ownership units		50,000		50,000	0.6%
Green Sun Medical LLC	Life science		1,096 Class A-1 Ownership units		25,000		25,000	0.3%
Green Sun Medical LLC	Life science		1,096 Class A-1 Ownership units		25,000		25,000	0.3%
Green Sun Medical LLC	Life science		4,386 Class A-1 Ownership units		100,000		100,000	1.2%
Riso Capital Fund I, LP	Technology		Ownership units		50,000		50,000	0.6%
Total other investments				$	521,000	$	521,000	6.1%
	United States			$	521,000	$	521,000	6.1%
	Canada				-		-	0.0%
	Rest of World				-		-	0.0%
Total other investments				$	521,000	$	521,000	6.1%

Total investments
United States					5,382,145		6,380,078	74.7%
Canada					970,000		1,125,419	13.2%
Rest of World					600,000		634,510	7.4%
Total other investments				$	6,952,145	$	8,140,007	95.3%

(a) based on total net assets of	$	8,537,246

	As of June 30, 2021
	Quoted prices in active markets for identical securities		Significant other observable inputs		Significant other inputs
Description	(Level 1)		(Level 2)		(Level 3)		Total
Investments at Fair Value
Private Portfolio Companies
Convertible notes	$	-	$	-	$	3,252,175	$	3,252,175
Preferred stock		-		-		3,384,237		3,384,237
Common stock		-		-		400,000		400,000
SAFEs		-		-		425,000		425,000
Other ownership interests		-		-		521,000		521,000
		-		-		7,982,412		7,982,412
Public Portfolio Companies
Common stock		157,595		-		-		157,595

Total Investments at Fair value	$	157,595	$	-	$	7,982,412	$	8,140,007

	Number of options granted		Weighted average exercise price		Weighted average remaining life years
Outstanding March 31, 2021		2,634,250	$	0.05		8.13
Granted		250,000		0.07		9.82
Exercised		-		-		-
Cancelled		-		-		-
Outstanding June 30, 2021		2,884,250	$	0.05		8.53

Exercisable June 30, 2021		1,782,610	$	0.04		8.05