Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review.
Amended and Restated Form 10-Q for the Three and Nine Months Ended March 31,
2022
On September 26, 2022, the management of Tego Cyber Inc. (the "Company") in
consultation with BF Borgers ("Borgers"), the Company's new independent
registered public accounting firm, concluded that the Company's previously
issued unaudited financial statements for the three and nine months ended March
31, 2022 should be restated and no longer be relied upon. In connection with
preparing the Company's audited financial statements for the year ended June 30,
2022, the Company discovered and an error relating to the accounting treatment
of the Company's non-qualified stock options which were granted during the three
months ended March 31, 2022. The shared based compensation expense recorded in
that period was calculated on the assumption that the first tranche of the
non-qualified stock options had vested. This was not the case as the first
tranche of the non-qualified stock options do not vest until January 1, 2023,
therefore there was to be no share based compensation expense for the three
month period ended March 31, 2022. Accordingly, the Company intends to restate
the aforementioned financial statements by amending its quarterly reports on
Form 10-Q for the quarter ended March 31, 2022 as soon as reasonably
practicable. The Company expects to file an amended quarterly report on or
before September 28, 2022 (the "Amendment").
The impact of this restatement on the Company's unaudited financial statements
for the three and nine months ended March 31, 2022 will be a reduction to the
additional paid in capital of $386,449, a reduction to the accumulated deficit
of $386,499, a reduction to the share based compensation expense of $386,499 and
a reduction to the loss from operations of $386,449.
No other changes have been made to the original filings. The Amendment to the
respective filing does not reflect events that have occurred after the original
filing of the Form 10-Q or modify or update the disclosures presented therein,
except to reflect the amendments described above.
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