CYTTA CORP.

^{The Company has entered into an Agreement with Doctor Direct Inc. to market the Cytta Connect technology into various medical vertical submarkets.   As of June 29th}, 2014 Cytta through the Doctor Direct marketing program had entered into two contracts to supply the Cytta Connect system to two family practices in Las Vegas.  The initial systems were supplied to the two practices and preliminary presentations to their clients had begun.  As of today’s date the specific backend for the medical groups has been completed and the initial client rollout is proceeding with the first devices now in the hands of the initial patients/clients.

In the ordinary course of our business, we may from time to time become subject to routine litigation or administrative proceedings which are incidental to our business, including non-material litigation from terminated officers, employees and or consultants. We were a party to a non-material lawsuit in which the Company had filed extensive cross complaints.  The Company settled with one of the Complainants (Mr. Howdy Kabrins) for a minor number of shares and cancellation of shares previously issued to him. The other two Complainants, (Mr. Stephen Spalding and Mr. Michael Stiege) complaints were Dismissed with prejudice and we secured Judgment against each of them and their Companies on our Cross Complaints.  Counsel for the Company is applying to Court to determine the quantum of damages which the Company will be receiving.

On July 9th, 2014 the Company entered into a Letter of Intent with EraStar, Inc., a Las Vegas based marketing business, to merge the two Companies. The Letter of Intent is not binding on either party; however the two Companies continue to move towards the execution of a final definitive merger agreement.

b)

^{On August 18th}, 2014 the Company entered into an agreement with Mr. William Nance to provide general accounting and audit advice to the Company and to assist management in conducting an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, and further advising management as to whether the financial and accounting information relating to us, required to be disclosed in our Securities and Exchange Commission (“SEC”) reports (i) is recorded, processed, summarized and reported accurately and appropriately and (ii) is accumulated and communicated to our management, appropriately and in the correct form to allow timely decisions regarding required disclosure.  Mr. Nance has been so advising the Company and its Officers since that date.

^{As of May 12th}, 2014 the Company has returned 4,997,000 common share certificates to our transfer agent, Island Stock Transfer for cancellation and has noted this on our June 30, 2014 Interim Financial Statements.  Island has advised the Company that additional documentation will be required, which the Company is in the process of preparing.  The Company anticipates that the cancellation, and subsequent reduction in issued common shares, will occur before the year end of September 30, 2014.