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U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

~~FORM~~Form 10-Q

~~[X]~~ ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES ~~EXCHANGE ACT OF 1934.~~

~~For~~EXCHANGE ~~the~~ACT ~~quarterly~~OF ~~period ended: June 30, 2020~~1934

~~[ ] TRANSITION~~For ~~REPORT~~the ~~UNDER~~quarterly ~~SECTION~~period 13ended: ORMarch 1531, ~~(d) OF THE SECURITIES EXCHANGE ACT OF 1934~~2021

~~For~~☐ ~~the~~TRANSITION ~~transition~~REPORT ~~period~~UNDER ~~from:~~SECTION ~~________~~13 toOR ~~_________~~15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from: ______ to ______

333-90031

Commission file number

Northstar Electronics, Inc.

Exact name of small business issuer as specified in its charter

Delaware

33-0803434

State or other jurisdiction

of organization

IRS Employee incorporation

or Identification No.

~~2020~~355 ~~General~~Burrard ~~Booth Blvd~~Street, ~~Unit~~Suite ~~230,~~1000

~~Virginia Beach~~Vancouver, VABC, ~~USA~~Canada V6C ~~23454~~2G8

Address of principal executive offices and Zip Code

Issuer's telephone number (~~780~~778) ~~660 0937~~881-5544

~~Issuer's~~Indicate ~~telephone~~by ~~number~~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

~~Former~~Indicate ~~name,~~by ~~former~~check ~~address~~mark whether the registrant has submitted electronically and ~~former~~posted ~~fiscal~~on ~~year~~its corporate Web site, if ~~changed~~any, ~~since~~every ~~last~~Interactive ~~report~~Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☐ Yes ☒ No

~~Check whether the issuer (~~1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or 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~~Indicate ~~[X] No[ ]~~by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or smaller reporting 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. (Check one):

~~Indicate~~Large ~~by check mark whether the registrant is a large~~ accelerated filer, an☐ ~~accelerated~~Accelerated filer, a☐ ~~non~~Non-accelerated filer, a☒ ~~smaller~~Smaller reporting company, or☒ ~~emerging~~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. (Check one):~~☐

~~Large~~Indicate ~~accelerated~~by ~~Filer~~check [mark ]whether ~~Accelerated~~the ~~Filer~~registrant [is ]a ~~Non-accelerated~~shell ~~filer~~company ~~[X] Smaller reporting Company [X]~~ (Doas ~~not~~defined ~~check~~in ifRule a12b-2 ~~smaller~~of ~~reporting~~the ~~company~~Act). ☐ ~~Emerging~~Yes ☒ ~~growth company [ ]~~No

Indicate bythe ~~check~~number ~~mark~~of ~~whether~~shares outstanding of each of the ~~registrant~~issuer’s isclasses aof ~~shell~~common ~~company~~stock, (as ~~defined~~of inthe ~~Rule~~latest ~~12b-2~~practicable date. Common shares as of ~~the~~September ~~Exchange~~21, ~~Act)~~2021: 127,838,231

[ ]Yes [X] No

Applicable only to issuers involved in bankruptcy proceedings during the preceding five years:

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.

Yes[ ] No [ ] Not Applicable [X]

Applicable only to corporate issuers:

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

Common shares as of September 30, 2020: 127,838,231

Transitional Small Business Disclosure Format (check one):

Yes [ ] No [X]

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION	4
Item 1. Financial Statements	4
Interim Consolidated Balance Sheets	4
Condensed Consolidated Balance Sheets	4
Interim Consolidated Statements of Operations	5
Condensed Consolidated Statements of Operations	5
Interim Consolidated Statement of Changes in Stockholders’ Deficit	6
Condensed Consolidated Statement of Changes in Stockholders’ Deficit	6
Interim Consolidated Statements of Cash Flows	7
Condensed Consolidated Statements of Cash Flows	7
Notes to the Interim Consolidated Financial Statements	8
Notes to the Condensed Consolidated Financial Statements	8
Item 2. Management's Discussion and Analysis or Plan of Operation.	10
Item 3. Controls and Procedures	11
PART II - OTHER INFORMATION	1213
Item 1. Legal Proceedings.	1213
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	1213
Item 3. Defaults Upon Senior Securities.	1213
Item 4. Submission of Matters to a Vote of Security Holders.	1213
Item 5. Other Information.	1213
Item 6. Exhibits.	1213
SIGNATURES	1314

PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

NORTHSTAR ELECTRONICS, INC.

Interim Consolidated Balance Sheets

U.S. Dollars

	June 30 2020		December 31 2019
	March 31 2021		December 31 2020
	unaudited		audited
Assets
Current
Cash	$	3019,~~567~~210	$	4021,~~261~~596
Total assets	$	30,567	$	40,261
Total Assets	$	19,210	$	21,596
Liabilities
Current
Accounts payable and accrued liabilities	$	1881,~~247,040~~092	$	1880,~~220,792~~436
Loans payable		442,916		442,916
Due to director		612,642		616,159
Due to directors and a former director		949,252		949,852
Legal liability		3,~~002~~129,~~658~~268		3,~~100~~136,~~221~~886
Total liabilities		5,~~305~~402,~~256~~528		5,~~380~~410,~~088~~090
Stockholders’ Deficit
Authorized:
200,000,000 Common shares authorized, with a par value of $0.0001, 127,838,231 Common shares issued and outstanding (127,838,231 - December 31, 2020)		12,784		12,784
200,000,000 Common shares with a par value of $0.0001 each
20,000,000 Preferred shares authorized, with a par value of $0.0001597,716 Preferred series A, B and C shares issued and outstanding (597,716 - December 31, 2020)		404,299		404,299
20,000,000 Preferred shares with a par value of $0.0001 each
Issued and outstanding:
127,838,231 Common shares (127,838,231 - December 31, 2019)		12,784		12,784
597,716 Preferred series A, B and C shares (597,716 - December 31, 2019)		404,299		404,299
Additional paid-in capital		8,608,875		8,608,875
Accumulated deficit		(14,~~300~~409,~~647~~276)		(14,~~365~~414,~~785~~452)
Total stockholders’ deficit		(5,~~274~~383,~~689~~318)		(5,~~339~~388,~~827~~494)
Total liabilities and stockholders’ deficit	$	3019,~~567~~210	$	4021,~~261~~596

Nature of operations and going concern (~~note~~Note 1)

See notes to the ~~interim~~condensed consolidated financial statements

NORTHSTAR ELECTRONICS, INC.

Interim Consolidated Statements of Operations

Three ~~and Six~~ Months Ended ~~June~~March 3031, ~~2020~~2021 and ~~2019~~2020

Unaudited

U.S. Dollars

	Three Months				Six Months
	2021		2020
	2020		2019		2020		2019
EXPENSES
EXPENSES
Administration	$	-	$	15,000
Management fees	$	-	$	30,000	$	-	$	60,000
Professional fees		-		2,126
Administrative fees		-		15,000		15,000		30,750
Management fees		-		-
Professional fees		7,482		(229)		9,608		13,069
Engineering		-		-
Foreign exchange (gain) loss		120,191		69,602		(143,293)		127,489
Rent		276		2,250
Engineering research and development		-		11,375		-		22,625
Investor relations		-		-
Investor relations		-		3,520		-		6,895
Office		955		1,910
Interest		23,520		24,165		47,764		48,330
Foreign exchange (gain) loss		(6,407)		(263,484)
Marketing and sales		-		-		-		-
Interest		-		24,244
Office		1,623		18,026		5,783		19,944
Total expenses		(5,176)		(217,954)
Total expenses (income)		152,816		171,459		(65,138)		329,102
Net income (loss) for the period	$	5,176	$	217,954
Net income (loss) for the period	$	(152,816)	$	(171,459)	$	65,138	$	(329,102)
Basic and diluted gain (loss) per common share	$	0.00	$	(0.00)
Basic and diluted earnings (loss) per common share	$	(0.00)	$	(0.00)	$	0.00	$	(0.00)
Weighted average number of shares outstanding		127,838,231		127,838,231
Weighted average number of shares outstanding		127,838,231		127,838,231		127,838,231		127,838,231

See notes to the ~~interim~~condensed consolidated financial statements

NORTHSTAR ELECTRONICS, INC.

Interim Consolidated Statement of Changes in Stockholders’ Deficit

Three Months Ended ~~June~~March 3031, ~~2020~~2021

Unaudited

U.S. Dollars

	Number of Shares	Par Value		~~Additional Paid-In Capital~~	Additional Paid-In Capital	~~Accumulated Deficit~~	~~Preferred~~Subscriptions ~~Shares~~receivable		~~Total Stockholders’ Deficit~~	Accumulated Deficit		Preferred Shares		Total Stockholders’ Deficit
Balance December 31, 2019	127,838,231	$ 12,784		$ 8,608,875		$ (14,365,785)	$ 404,299		$ (5,339,827)
Balance, December 31, 2017	98,579,815	$	9,858		$	8,333,396	$	(5,035)		$	(13,527,495)	$	404,299	$	(4,784,977)
Net income (loss)	-	-		-		65,138	-		65,138
Issued for services	1,000,000		100			9,900		-			-		-		10,000
Balance June 30, 2020	127,838,231	$ 12,784		$ 8,608,875		$ (14,300,647)	$ 404,299		$ (5,274,689)
Issuance for cash	28,258,416		2,826			265,579		-			-		-		268,405
Subscription collected	-		-			-		5,035			-		-		5,035
Net loss	-		-			-		-			(257,946)		-		(257,946)
Balance, December 31, 2018	127,838,231	$	12,784		$	8,608,875	$	-		$	(13,785,441)	$	404,299	$	(4,759,483)
Net loss	-		-			-		-			(580,344)		-		(580,344)
Balance, December 31, 2019	127,838,231	$	12,784		$	8,608,875	$	-		$	(14,365,785)	$	404,299	$	(5,339,827)
Net loss	-		-			-		-			(48,667)		-		(48,667)
Balance, December 31, 2020	127,838,231	$	12,784		$	8,608,875	$	-		$	(14,414,452)	$	404,299	$	(5,388,494)
Net gain	-		-			-		-			5,176		-		5,176
Balance, March 31, 2021	127,838,231	$	12,784		$	8,608,875	$	-		$	(14,409,276)	$	404,299	$	(5,383,318

See notes to the ~~interim~~condensed consolidated financial statements

NORTHSTAR ELECTRONICS, INC.

Interim Consolidated Statements of Cash Flows

~~Six~~Three Months Ended ~~June~~March 3031, ~~2020~~2021 and ~~2019~~2020

Unaudited

U.S. Dollars

	2020		2019
	2021		2020
Operating Activities
Net income (loss)	$	655,~~138~~176	$	~~(329~~217,~~102)~~954
Items not involving cash
Foreign exchange (gain) loss		(~~145~~6,~~327~~407)		~~122~~(263,~~138~~024)
Non-cash interest		47,764		48,330
Accrued interest		-		24,244
Changes in non-cash working capital
Changes in operating assets and liabilities		26(1,~~248~~155)		3013,~~000~~769
Net cash used in operating activities		(62,~~177~~386)		(~~128~~7,~~634~~057)
Financing Activities
Decrease in cash		(2,386)		(7,057)
Due to directors		(3,517)		40,252
Cash, beginning		21,596		40,261
Net cash provided by financing activities		(3,517)		40,252
Cash, ending	$	19,210	$	33,204
Decrease in cash		(9,694)		(88,382)
Cash, beginning		40,261		170,831
Cash, ending	$	30,567	$	82,449

See notes to the ~~interim~~condensed consolidated financial statements

NORTHSTAR ELECTRONICS, INC.

Notes to ~~Interim~~Condensed Consolidated Financial Statements

~~Six~~Nine Months ~~ended~~Ended ~~June~~March 3031, ~~2020~~2021

Unaudited

U.S. Dollars

1. NATURE OF OPERATIONS AND ABILITY TO CONTINUE AS A GOING CONCERN

Northstar Electronics, Inc. (the “Company”) was incorporated on May 11, 1998 in the state of Delaware. The Company is doing research and development on single engine aircrafts for business use.

The Company's business activities are conducted in Canada. However, the financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) with all figures translated into United States dollars for financial reporting purposes.

These unaudited consolidated interim financial statements have been prepared by management in accordance with GAAP for interim financial information, are condensed and do not include all disclosures required for annual financial statements. The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the Company’s ~~audited~~ consolidated ~~financial~~yearend ~~statements filed as part of the Company’s~~ December 31, ~~2019~~2020 ~~Form~~financial ~~10-K~~statements prepared without audit.

The Company is in the process of regenerating its operations. The results of operations for the ~~six~~three months ended ~~June~~March 3031, ~~2020~~2021 are not necessarily indicative of the results to be expected for the entire fiscal year. The accompanying interim consolidated financial statements have been prepared assuming the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the ~~six~~three months ~~ended~~to ~~June~~March 3031, ~~2020,~~2021 the Company incurred a net ~~income~~cash outflow of $652,~~138~~386 and at ~~June~~March 3031, ~~2020~~2021 had a working capital deficiency of $5,~~274~~383,~~689~~318.

Management has undertaken initiatives for the Company to continue as a going concern,; for example: ~~the~~management ~~Company~~ is ~~attempting~~in totalks ~~secure~~with ana ~~equity~~consulting ~~financing~~group inout ~~the~~of ~~short~~Ottawa, ~~term.~~Canada ~~Management~~about istaking ~~unable~~over tothe ~~predict~~Airplane ~~the~~manufacturing ~~results~~opportunity ofit ~~its~~has ~~initiatives~~been atworking on this ~~time.~~past ~~These~~number ~~factors~~of ~~raise~~years. Management ~~substantial~~is ~~doubt~~unable ~~about~~to predict the ~~ability~~results of ~~the~~its ~~Company~~initiatives toat ~~continue~~this ~~as a going concern~~time.

Should management be unsuccessful in its initiative to finance its operations, the Company’s ability to continue as a going concern is not certain. These financial statements do not give effect to any adjustments to the amounts and classifications of assets and liabilities which might be necessary should the Company be unable to continue its operations as a going concern.

2.See ~~SHARE~~also ~~CAPITAL~~Note 5

~~WARRANTS~~8

~~During the six months ended June 30, 2020, 1,495,000 warrants expired unexercised~~2. AsRELATED atPARTY ~~June 30, 2020, there were 13,964,148 warrants outstanding.~~ TRANSACTIONS

8a)The amount of $949,252 due to directors and a former director of the Company have no specific terms of repayment, is non-interest bearing and unsecured. See note 5 - subsequent event

3.b)The ~~LEGAL~~Company ~~LIABILITY~~accrued management fees of $nil in total to directors of the Company for their services as officers of the Company during the three months ended March 31, 2021 (2020: $nil).

During 2000 to 2008, the Company’s former subsidiaries Northstar Technical Inc. (“NTI”) and Northstar Network Ltd. (“NNL”) received funding from Atlantic Canada Opportunities Agency (“ACOA”) to fund their projects. In accordance with agreements signed between NTI, NNL and the Company, the Company was jointly and severally liable for the obligations. In 2013, ACOA filed claims against NTI, NNL and the Company for repayments of advances due to events of default. The advance and interests ACOA claims totaled CAD$3~~,079,475 ($2,259,718)~~. Further, the claim amount bears a daily interest of $358 from February 15, 2013 to settlement. During the six months ended June 30, 2020, the Company recorded interest expenses of $47,764 (June 30 2019-$48,330).CONTINGENCIES

4During 2000 to 2008, the Company’s former subsidiaries Northstar Technical Inc. ~~RELATED~~(“NTI”) ~~PARTY~~and ~~TRANSACTIONS~~Northstar Network Ltd. (“NNL”) received funding from Atlantic Canada Opportunities Agency (“ACOA”) to fund their projects. In 2013, ACOA filed claims against NTI, NNL and the Company for repayments of advances due to events of default. The advance and interests ACOA claims totaled CAD$3,079,475. In accordance with agreements signed between NTI, NNL and the Company, the Company was jointly and severally liable for the obligations. Further, the claim amount bears a daily interest of CAD$358 from February 15, 2013 to settlement. During the three months ended March 31, 2021, the Company the Company has ceased recording interest expenses (2019: $24,244).

~~During~~4. ~~the~~NEW ~~six~~ACCOUNTING ~~months ended June 30, 2020, the Company accrued management fees payable of $nil in total to a director of the Company (June 30, 2019 - $60,000).~~ PRONOUNCEMENTS

AtManagement ~~June~~does ~~30,~~not ~~2020,~~believe ~~there~~that isany arecently ~~balance~~issued ofbut ~~$612,642~~not ~~(December~~yet ~~31,~~effective ~~2019:~~accounting ~~$616,159)~~pronouncements ~~owing~~if tocurrently aadopted ~~director~~would ofhave ~~the~~a ~~Company~~material ~~for~~effect ~~management~~on ~~fees~~the ~~and~~accompanying ~~expenses~~consolidated ~~reimbursement.~~financial ~~These amounts are not secured and are without terms of repayment~~statements.

5. ~~NEW~~SUBSEQUENT ~~ACCOUNTING PRONOUNCEMENTS~~EVENT

~~Management~~The ~~does~~Company ~~not~~has ~~believe~~negotiated ~~that~~to ~~any~~settle ~~recently~~$949,252 ~~issued~~in ~~but~~debts ~~not~~owing ~~yet~~to ~~effective~~a ~~accounting~~director ~~pronouncements~~and ifto ~~currently~~current ~~adopted~~directors ~~would~~for ~~have~~the aissuance ~~material~~of ~~effect~~up onto ~~the~~46,500,000 ~~accompanying~~shares ~~consolidated~~of ~~financial~~common ~~statements~~stock, subject to regulatory approval.

5.Certain ~~SUBSEQUENT~~of ~~EVENT~~the creditors and the Company have agreed to settle their debts for the issuance of 10,168,720 shares of common stock valued at $21,928.

~~In September 2020, another 13,134,208 warrants expired unexercised.~~9

9Item 2. Management's Discussion and Analysis or Plan of Operation.

~~Item~~The 2.following ~~Management's~~discussion ~~Discussion~~should be read in conjunction with the accompanying unaudited consolidated financial information for the three month periods ended March 31, 2021and March 31, 2020 prepared by management and ~~Analysis~~the orconsolidated ~~Plan~~financial ofstatements ~~Operation~~for the year ended December 31, 2020, prepared by management without audit.

~~The~~Special ~~following~~Note ~~discussion~~Regarding ~~should~~Forward beLooking read in conjunction with the accompanying unaudited consolidated financial information for the six month periods ended June 30, 2020 and June 30, 2019 prepared by management and the consolidated financial statements for the year ended December 31, 2019 as presented in the Form 10K as filed.Statements

~~Special~~Certain ~~Note~~statements ~~Regarding~~in ~~Forward~~this ~~Looking~~report ~~Statements~~and elsewhere (such as in other filings by the Company with the Securities and Exchange Commission ("SEC"), press releases, presentations by the Company of its management and oral statements) may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and "should," and variations of these words and similar expressions, are intended to identify these forward-looking statements. Actual results may materially differ from any forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures and constantly changing technology and market acceptance of the Company's products and services. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

~~Certain~~The ~~statements in this report and elsewhere (such as in other filings by the~~ Company with the Securities and Exchange Commission ("SEC"), press releases, presentations by the Company of its management and oral statements) may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and "should," and variations of these words and similar expressions, are intended to identify these forward-looking statements. Actual results may materially differ from any forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures and constantly changing technology and market acceptance of the Company'’s products and services. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.Services

The Company’s ~~Services~~has continued working on an agreement to purchase the worldwide rights to manufacture a single engine Turbo Prop airplane with industrial applications from a subsidiary of a large international aerospace company. Unfortunately, the Company was unable to obtain suitable financing for its projected plans, the agreement has not materialize and the project has been abandoned. The Company has a further agreement to retain up to a 31.5% interest in the project with an engineering firm that has expressed further interest in the project.

WeResults ~~continue~~of ~~to move in a new direction whereby we intend to build our own systems in the civilian aviation sector. We believe that this affords improved control over our business outcomes.~~Operations

~~The~~Comparison ~~Company~~of isthe ~~currently~~three ~~working~~months onended ~~plans~~March to31, ~~obtain~~2021 ~~ownership rights to a single engine turbo prop airplane~~ with ~~industrial applications. If successful, we intend to manufacture~~ the ~~airplane~~three ~~and~~months ~~market~~ended itMarch ~~internationally. We also intend to provide Maintenance~~31, ~~Repair and Overhaul (MRO) services in close proximity to customers~~2020. The Company’s wholly owned subsidiary, National Five Holding Ltd, is a 95% shareholder of Northstar Sealand Enterprises Ltd. (NSEL). The constituent parts of NSEL have experience in working on certified commercial aircraft and government military contracts and have access to an established aircraft parts manufacturing facility.

~~Results~~The ofnet ~~Operations~~gain for the three-month period ended March 31, 2021, was $5,176 compared to $217,954 for the three months ended March 31, 2020. The positive net operating result was in large part due to foreign exchange fluctuations.

Comparison of ~~the~~Financial ~~three~~Position ~~and~~at ~~six~~March ~~months ended June 30~~31, ~~2020~~2021 with ~~the~~March ~~three and six months ended June 30~~31, ~~2019:~~2020

The ~~net~~Company’s ~~loss~~working ~~for~~capital ~~the~~deficiency ~~three~~at ~~month~~March ~~period ended June 30~~31, ~~2020~~2021 was $~~(152~~5,~~816)~~383,318, ~~compared~~with tocurrent aliabilities ~~net loss~~ of $~~(171~~5,~~459) for the three months ended June 30~~402,528, ~~2019.~~which ~~The~~are ~~Company~~in ~~reduced~~excess ~~its~~of ~~management~~current ~~and~~assets ~~administration~~of ~~fees to~~ $~~nil (June 30~~19, ~~2019 $45,000) while it searched for new management to conduct its affairs~~210. AAt ~~recovery~~December of31, ~~foreign~~2020 ~~exchange during~~ the ~~three~~Company ~~months~~had ~~significantly~~a ~~reduced~~working ~~the~~capital ~~loss~~deficiency ~~for~~of ~~the period~~$5,388,494.

The net income for the six month period ended June 30, 2020 was $65,138, compared to a net loss of $(329,102) for the six months ended June 30, 2019. The Company reduced its management and administration fees to $15,000 (June 30, 2019 $90,750) while it searched for new management to conduct its affairs. A recovery of foreign exchange during the period significantly reduced the loss for the period.10

~~Comparison~~Critical ofAccounting ~~Financial~~Policies ~~Position~~and ~~at June 30, 2020 with December 31, 2019~~Estimates

~~The~~We ~~Company’s~~have ~~working~~adopted ~~capital~~various ~~deficiency~~accounting ~~decreased~~policies atthat ~~June~~govern ~~30,~~the ~~2020~~application toof ~~$5,274,689~~accounting ~~with~~principles ~~current~~generally ~~liabilities~~accepted in the United States of ~~$5,305,256~~America ~~which~~in the preparation of our financial statements. Our significant accounting policies are described in ~~excess~~the offootnotes ~~current~~to ~~assets~~our ofannual ~~$30,567.~~financial Atstatements at December 31, ~~2019~~2020. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.

10Although these estimates are based on our knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Certain accounting policies involve significant judgments and assumptions by us and have a material impact on our financial condition and results. Management believes its critical accounting policies reflect its most significant estimates and assumptions used in the presentation of our financial statements. Our critical accounting policies include revenue recognition, accounting for stock based compensation and the evaluation of the recoverability of long-lived and intangible assets. We do not have off-balance sheet arrangements, financings or other relationships with unconsolidated entities or other persons, also known as “special purpose entities”.

~~Company~~Liquidity ~~had~~and aCapital ~~working capital deficiency of $5,339,827. See also contingent liabilities, note 3 to the financial statements for the six months ended June 30, 2020.~~Resources

~~Critical~~Cash ~~Accounting~~outflow ~~Policies~~for the first quarter ended March 31, 2021 was $2,386 compared to an outflow of cash of $7,057 in the comparative prior quarter March 31, 2020. In the quarter, the Company received $0 ($0 in the comparative prior quarter) from equity funding and ~~Estimates~~received $0 (received $0 in the comparative quarter) long term debt leaving cash on hand at March 31, 2021 of $19,210 compared to cash on hand of $21,596 at December 31, 2020. Until the Company receives revenues from new contracts it will be dependent upon equity (subject to regulatory approval) and loan financings to compensate for the outflow of cash anticipated from operations.

WeAt ~~have~~this adopted various accounting policies that govern the application of accounting principles generally accepted in the United States of America in the preparation of our financial statements. Our significant accounting policies are described in the footnotes to our annual financial statements at December 31time, ~~2019.~~no ~~The~~commitment ~~preparation~~for offunding ~~financial~~has ~~statements~~been inmade ~~conformity with accounting principles generally accepted in the United States of America requires us~~ to ~~make estimates and assumptions that affect~~ the ~~amounts reported in the financial statements and accompanying notes~~Company.

~~Although~~The ~~these~~Company’s ~~estimates~~continued operations are ~~based~~dependent onupon ~~our~~obtaining ~~knowledge~~revenues ~~of current events and actions it may undertake in the future, they may ultimately differ~~ from ~~actual~~outside ~~results.~~sources Certain accounting policies involve significant judgments and assumptions by us and have a material impact on our financial condition and results. Management believes its critical accounting policies reflect its most significant estimates and assumptions used in the presentation of our financial statements. Our critical accounting policies include revenue recognition, accounting for stock based compensation and the evaluation of the recoverability of long-lived and intangible assets. We do not have off-balance sheet arrangements, financings or ~~other~~raising ~~relationships~~additional ~~with~~funds ~~unconsolidated~~through ~~entities~~debt or ~~other~~equity ~~persons, also known as “special purpose entities”~~financing.

~~Liquidity~~Item ~~and~~3. ~~Capital~~Controls ~~Resources~~and Procedures

~~Cash outflow from operations for the six months ended June 30, 2020 was $~~(~~6,177~~a) Evaluation ~~compared to an outflow~~ of ~~cash~~disclosure ofcontrols ~~$(128,634) in the comparative prior six months ended June 30, 2019. During the current period, the Company received $0 ($0 in the comparative prior period) from equity funding~~ and received $0 (received $0 in the comparative period) long term debt leaving cash on hand at June 30, 2020 of $30,567 compared to cash on hand of $40,261 at December 31, 2019. Until the Company receives revenues from its new potential business it will be dependent upon equity funding and loan financings to compensate for the outflow of cash anticipated from operations. procedures

AtBased ~~this~~on ~~time,~~the ~~although~~evaluation of the Company's isdisclosure controls and procedures (as defined in ~~discussions~~Rules ~~with~~13a-14(c) ~~potential~~and ~~equity~~15d-14(c) ~~investing~~under ~~companies~~the Securities Exchange Act of 1934) as of the date of this Quarterly Report on Form 10-Q, noour ~~commitment~~chief ~~for~~executive ~~funding~~officer and chief financial officer has ~~yet~~concluded ~~been~~that ~~made~~our disclosure controls and procedures are designed to ensure that the ~~Company~~information we are required to disclose in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and are operating in an effective manner. The disclosure controls were not effective at March 31, 2021.

~~The Company’s continued operations are dependent upon obtaining revenues from outside sources or raising additional funds through debt or equity financing.~~11

~~Item~~(b) Changes 3.in ~~Controls~~internal ~~and Procedures~~controls

~~(a) Evaluation~~There ofwere ~~disclosure~~no changes in our internal controls ~~and~~or ~~procedures~~in other factors that could affect these controls subsequent to the date of their most recent evaluation.

Based on the evaluation of the Company's disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934) as of the date of this Quarterly Report on Form 10-Q, our chief executive officer and chief financial officer has concluded that our disclosure controls and procedures are designed to ensure that the information we are required to disclose in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and are operating in an effective manner. The disclosure controls were not effective at June 30, 2020.12

~~(b) Changes~~PART inII ~~internal~~- ~~controls~~OTHER INFORMATION

~~There~~Item ~~were~~1. noLegal ~~changes in our internal controls or in other factors that could affect these controls subsequent to the date of their most recent evaluation~~Proceedings.

11No change since previous filing.

~~PART~~Item II2. -Unregistered ~~OTHER~~Sales ~~INFORMATION~~of Equity Securities and Use of Proceeds.

~~Item 1~~None. ~~Legal Proceedings.~~

NoItem ~~change~~3. ~~since~~Defaults ~~previous~~Upon ~~filing~~Senior Securities.

~~Item~~No 2.change ~~Unregistered~~since ~~Sales~~previous ~~of Equity Securities and Use of Proceeds~~filing.

~~None~~Item 4. Submission of Matters to a Vote of Security Holders.

~~Item~~No 3.change ~~Defaults~~since ~~Upon~~previous ~~Senior Securities~~filing.

NoItem ~~change~~5. ~~since~~Other ~~previous filing~~Information.

~~Item~~No 4.change ~~Submission~~since ofprevious ~~Matters to a Vote of Security Holders~~filing.

NoItem ~~change~~6. ~~since previous filing~~Exhibits.

~~Item~~No 5.change ~~Other~~since ~~Information~~previous filing.

~~No change since previous filing.~~13

~~Item 6. Exhibits.~~SIGNATURES

NoIn ~~change~~accordance ~~since~~with ~~previous~~the ~~filing~~requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

September 21, 2021	Northstar Electronics, Inc.
	(Registrant)


	By: /s/ Howard Nash
	Howard Nash, President and acting Chief Financial Officer

~~SIGNATURES~~14

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

October 12, 2020	Northstar Electronics, Inc.
	(Registrant)
	By: /s/ Wilson Russell
	Wilson Russell, PhD, President and Chief Financial Officer

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