Amendment to Quarterly Report - Form 10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act Of 1934

For the quarterly period end March 31, 2023

☐	Transition Report Under Section 13 or 15(d) of the Securities Exchange Act Of 1934

For the transition period from __________ to __________

Commission File Number: None

VIRTUAL INTERACTIVE TECHNOLOGIES CORP.

(Exact name of registrant as specified in its charter)

nevada		36-4752858
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

600 17^th Street, Suite 2800 South

Denver, CO80202

(Address of principal executive offices, including Zip Code)

(303)228-7120

(Issuer's telephone number, including area code)

Check whether the issuer (1) has filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a small reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "non-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 checkmark 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 ☐

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None		N/A		N/A

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

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 8,312,784shares of common stock as of May 15, 2023.

This Amendment No.1 to Quarterly Report on Form 10-Q/A (this "Amended Report") is filed with the Securities and Exchange Commission to amend the Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023 (the "Original 10-Q") of Business First Bancshares, Inc., solely to furnish XBRL (eXtensible Business Reporting Language) documents under Exhibit 101. As permitted by Rule 405(a)(2)(ii) of Regulation S-T, Exhibit 101 was required to be filed by amendment within 30 days of the original filing date of the Original 10-Q.

Except for the foregoing, this Amended Report speaks as of the filing date of the Original 10-Q and does not update or discuss any other developments after the date of the Original 10-Q. This Amended Report restates only those portions of the Original 10-Q affected by the above changes.

Virtual Interactive Technologies Corp.

Index

	Page
Part I. Financial Information
Item 1. Financial Statements
Unaudited Condensed Consolidated Balance Sheets (Restated)	3
Unaudited Condensed Consolidated Statements of Operations (Restated)	4
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Restated)	5
Unaudited Condensed Consolidated Statements of Cash Flows (Restated)	7
Notes to Unaudited Condensed Consolidated Financial Statements (Restated)	8-14
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	15-16
Item 4. Controls and Procedures	16
Part II. Other Information
Item 6. Exhibits	17
Part III. Signatures	18

Virtual Interactive Technologies Corp.

Condensed Consolidated Balance Sheets

As of March 31, 2023 and September 30, 2022 (Restated)

(UNAUDITED)

		March 31, 2023			September 30, 2022
					(Restated)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	2,571			$	36,378
Royalties receivable			125,991				105,856
Interest receivable			5,334				4,586
Note receivable			25,000				25,000
Prepaid expenses			1,222,229				1,956,215
Total current assets			1,381,125				2,128,035
TOTAL ASSETS		$	1,381,125			$	2,128,035
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable and accrued liabilities		$	73,068			$	34,591
Note payable, related party			741,030				741,030
Interest payable, related party			251,577				223,940
Convertible notes payable, net of discounts			470,000				262,686
Interest payable			65,770				34,129
Total current liabilities			1,601,445				1,296,376
LONG-TERM LIABILITIES:
Note payable			10,000				10,000
Interest payable			2,420				2,121
Total long-term liabilities			12,420				12,121
Total liabilities			1,613,865				1,308,497
Commitments and contingencies			-				-
STOCKHOLDERS' EQUITY (DEFICIT)
Series A Preferred Stock, $ 0.01par value; 10,000,000authorized; 50,000shares issued and outstanding			500				500
Series B Convertible Preferred Stock $ 0.01par value; 10,000,000authorized; 270,612shares issued and outstanding			2,706				2,706
Common stock, $ 0.001par value; 90,000,000shares authorized, 8,312,784shares issued and 8,271,534shares outstanding at March 31, 2023, and 8,100,284shares issued and 8,059,034outstanding as of September 30, 2022			8,271				8,059
Additional paid-in-capital			8,271,118				7,595,246
Treasury stock (41,250shares, $0cost)			-				-
Accumulated deficit			(8,515,335	)			(6,786,973	)
Total stockholders' equity (deficit)			(232,740	)			819,538
Total liabilities and stockholders' equity (deficit)		$	1,381,125			$	2,128,035

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

Virtual Interactive Technologies Corp.

Condensed Consolidated Statements of Operations

For the three and six months ended March 31, 2023 and 2022 (Restated)

(UNAUDITED)

		For the three months ended,			For the six months ended,
		March 31,			March 31,			March 31,			March 31,
		2023			2022			2023			2022
								(Restated)			(Restated)
Revenue - royalties		$	33,373			$	29,638			$	53,385			$	51,908
Operating expenses:
Professional fees			739,494				72,581				1,452,417				231,693
Marketing and advertising			-				40,603				48,042				75,603
General, administrative and selling			1,126				2,604				5,164				6,301
Total operating expenses			740,620				115,788				1,505,623				313,597
Loss from operations			(707,247	)			(86,150	)			(1,452,238	)			(261,689	)
Other income (expense)
Other income			370				444				748				898
Amortization of debt discount			(94,457	)			(96,376	)			(207,314	)			(192,439	)
Interest expense, related party			(13,666	)			(13,136	)			(27,637	)			(28,288	)
Interest expense			(25,792	)			(8,547	)			(41,937	)			(16,042	)
Gain (loss) from foreign currency transactions			46				(194	)			16				(573	)
Total other income (expense)			(133,499	)			(117,809	)			(276,124	)			(236,444	)
Net loss		$	(840,746	)		$	(203,959	)		$	(1,728,362	)		$	(498,133	)
Loss per share - basic and diluted		$	(0.10	)		$	(0.03	)		$	(0.21	)		$	(0.07	)
Weighted average number of shares outstanding - basic and diluted			8,312,784				6,963,492				8,280,504				6,940,772

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

Virtual Interactive Technologies Corp.

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

For the three and six months ended March 31, 2023 and 2022 (Restated)

(UNAUDITED)

For the three months ended March 31, 2023

		Preferred Stock									Additional			Treasury						Total Stockholders'
		Series A			Series B Convertible			Common Stock			Paid In			Stock			Accumulated			Equity
		Shares			Par Value			Shares			Par Value			Shares			Par Value			Capital			Shares			Cost			Deficit			(Deficit)
Balance December 31, 2022 (Restated)			50,000			$	500				270,612			$	2,706				8,271,534			$	8,271			$	8,271,118				41,250			$	-			$	(7,674,589	)		$	608,006
Net loss			-				-				-				-				-				-				-				-				-				(840,746	)			(840,746	)
Balance, March 31, 2023 (Restated)			50,000			$	500				270,612			$	2,706				8,271,534			$	8,271			$	8,271,118				41,250			$	-			$	(8,515,335	)		$	(232,740	)

For the three months ended March 31, 2022

		Preferred Stock									Additional			Treasury						Total
		Series A			Series B Convertible			Common Stock			Paid In			Stock			Accumulated			Stockholders'
		Shares			Par Value			Shares			Par Value			Shares			Par Value			Capital			Shares			Par Value			Deficit			Deficit
Balance December 31, 2021 (Restated)			50,000			$	500				595,612			$	5,956				6,960,284			$	6,960			$	4,611,287				-			$	-			$	(5,425,128	)		$	(800,425	)
Stock issued for commitment fee debt discount on note payable			-				-				-				-				82,500				83				206,167				-				-				-				206,250
Redemption of previously issued commitment shares			-				-				-				-				(41,250	)			(41	)			41				41,250				-				-				-
Net loss			-				-				-				-				-				-				-				-				-				(203,959	)			(203,959	)
Balance, March 31, 2022 (Restated)			50,000			$	500				595,612			$	5,956				7,001,534			$	7,002			$	4,817,495				41,250			$	-			$	(5,629,087	)		$	(798,134	)

For the six months ended March 31, 2023

		Preferred Stock									Additional			Treasury						Total Stockholders'
		Series A			Series B Convertible			Common Stock			Paid In			Stock			Accumulated			Equity
		Shares			Par Value			Shares			Par Value			Shares			Par Value			Capital			Shares			Cost			Deficit			(Deficit)
Balance September 30, 2022 (Restated)			50,000			$	500				270,612			$	2,706				8,059,034			$	8,059			$	7,595,246				41,250			$	-			$	(6,786,973	)		$	819,538
Common Stock issued for services			-				-				-				-				12,500				12				14,863				-				-				-				14,875
Common stock issued for prepaid services			-				-				-				200,000				200			297,800			-				-				-							298,000
Warrants issued for prepaid services			-				-				-				-				-				-				363,209				-				-				-				363,209
Net loss			-				-				-				-				-				-				-				-				-				(1,728,362	)			(1,728,362	)
Balance, March 31, 2023 (Restated)			50,000			$	500				270,612			$	2,706				8,271,534			$	8,271			$	8,271,118				41,250			$	-			$	(8,515,335	)		$	(232,740	)

For the six months ended March 31, 2022

		Preferred Stock									Additional			Treasury						Total
		Series A			Series B Convertible			Common Stock			Paid In			Stock			Accumulated			Stockholders'
		Shares			Par Value			Shares			Par Value			Shares			Par Value			Capital			Shares			Par Value			Deficit			Deficit
Balance September 30, 2021 (Restated)			50,000			$	500				595,612			$	5,956				6,900,284			$	6,900			$	4,518,347				-			$	-			$	(5,130,954	)		$	(599,251	)
Stock issued for services			-				-				-				-				60,000				60				92,940				-				-				-				93,000
Stock issued for commitment fee debt discount on note payable			-				-				-				-				82,500				83				206,167				-				-				-				206,250
Redemption of previously issued commitment shares			-				-				-				-				(41,250	)			(41	)			41				41,250				-				-				-
Net loss (Restated)			-				-				-				-				-				-				-				-				-				(498,133	)			(498,133	)
Balance, March 31, 2022 (Restated)			50,000			$	500				595,612			$	5,956				7,001,534			$	7,002			$	4,817,495				41,250			$	-			$	(5,629,087	)		$	(798,134	)

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

Virtual Interactive Technologies Corp.

Condensed Consolidated Statements of Cash flows

For the Six Months Ended March 31, 2023 and 2022 (Restated)

(UNAUDITED)

		For the six months ended,
		March 31,			March 31,
		2023			2022
		(Restated)			(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(1,728,362	)		$	(498,133	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock issued for services			14,875				93,000
Debt discount amortization			207,314				192,439
Amortization of prepaid stock-based compensation			1,395,195				-
Changes in operating assets and operating liabilities:
Interest receivable			(748	)			(898	)
Royalty receivable			(20,135	)			12,504
Accounts payable and accrued liabilities			38,477				(30,414	)
Accrued interest payable, related parties			27,637				28,288
Accrued interest payable			31,940				1,274
Net cash used in operating activities			(33,807	)			(201,940	)
CASH FLOWS FROM INVESTING ACTIVITIES:			-				-
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable			-				217,375
Payment on notes payable, related parties			-				(235,000	)
Net cash used in financing activities			-				(17,625	)
Net change in cash and cash equivalents			(33,807	)			(219,565	)
Cash and cash equivalents, beginning of period			36,378				251,064
Cash and cash equivalents, end of period		$	2,571			$	31,499
Supplemental disclosure of cash flow information:
Interest paid		$	10,000			$	14,769
Income taxes paid		$	-			$	-
Non-cash Investing and Financing Activities:
Debt discount on notes payable		$	-			$	17,625
Stock issued for commitment fee debt discount on note payable		$	-			$	206,250
Common stock issued for prepaid services		$	298,000			$	-
Warrants issued for prepaid services		$	363,209			$	-

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

VIRTUAL INTERACTIVE TECHNOLOGIES CORP.

Notes to Restated Unaudited Condensed Consolidated Financial Statements

For the Six Months Ended

March 31, 2023 (Restated)

Note 1. Basis of Presentation

While the information presented in the accompanying March 31, 2023 financial statements is unaudited and condensed, it includes all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the periods presented in accordance with the accounting principles generally accepted in the United States of America ("US GAAP"). In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted. These financial statements should be read in conjunction with the Company's September 30, 2022 audited financial statements (and notes thereto). Operating results for the three and six months ended March 31, 2023 are not necessarily indicative of the results that can be expected for the year ending September 30, 2023.

The accompanying unaudited condensed consolidated financial statements herein contain the operations of Virtual Interactive Technologies Corp. (OTCPINK: VRVR), and its wholly-owned subsidiaries Advanced Interactive Gaming Inc. ("AIG Inc.") and Advanced Interactive Gaming Ltd. ("AIG Ltd") (collectively, the "Company" or "VIT"). All significant intercompany amounts have been eliminated.

Note 2. Business (Restated)

Nature of Operations

The Company is a next generation game and metaverse developer that creates immersion experiences by harnessing the latest technologies, including Blockchain and digital assets. The Company's newly launched brand, Extrosive, is building a metaverse that replaces traditional boring financial experiences with a new paradigm, "global Prosperity space" (gPs). This new asset class dynamically augments global and local realities and builds communities of aligned financial values, virtuous economies, and a trusted network. The result would be a metaverse game for the glamourous world of Wall Street, High-Speed trading involving community building, quantified self, and NFTs - a pure adrenal rush! In addition, the Company continues to build on its successful catalog that includes Carmageddon Max Damage, Carmageddon Crashers, Interplanetary: Enhanced Edition, Catch & Release, and Worbitol. The Company also entered into a joint development partnership with Duane Lee "Dog" Chapman, of the "Dog The Bounty Hunter" fame, to develop and promote multiple games across several platforms. For more information, please visit www.vrvrcorp.com.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimated.

Cash Equivalents

The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. The Company had nocash equivalents at March 31, 2023 or September 30, 2022.

Fair Value of Financial Instruments

The Company accounts for fair value measurements in accordance with accounting standard ASC 820-10-50, "Fair Value Measurements." ASC 820 defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures. The three levels are defined as follows:

	-	Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
	-	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
	-	Level 3 inputs to valuation methodology are unobservable and significant to the fair measurement.

The Company's financial instruments consist of cash, royalties receivable, notes receivable and related accrued interest receivable, accounts payable and accrued expenses, and notes payable and related accrued interest payable. The carrying value of these financial instruments approximates fair value due to the short-term nature of the instruments.

Net Income (Loss) Per Share

In accordance with ASC 260 "Earnings per Share," the basic net income (loss) per share ("EPS") is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding adjusted on an "if-converted" basis (for convertible preferred stock). During the three and six months ended March 31, 2023 and 2022, the Company had 270,612and 595,612shares, respectively, of Series B Convertible Preferred stock issued and outstanding that are convertible into shares of common stock on a one-for-one basis. In addition, during the three and six month ended March 31, 2023 and 2022, the Company had 1,300,000and -0- warrants outstanding respectively. These potentially dilutive securities were excluded from the EPS computation due to their anti-dilutive effect resulting from the Company's net losses during the three and six months ended March 31, 2023 and 2022.

Foreign Currency

The Company's functional currency is the US dollar. With the exception of stockholders' equity (deficit), all transactions that are originally denominated in foreign currency are translated to US dollars by our international customers, on a monthly basis, when recognized by them and prior to paying royalties to the Company. All royalty revenues that are received and recognized by the Company are recorded in US dollars.

Foreign currency translation gains/losses are recorded in other accumulated comprehensive income ("AOCI") based on exchange rates prevalent on reporting dates for balance sheet items, and at weighted average exchange rates during the reporting period for the statement of operations. Foreign currency transaction gains/losses are recorded as other income (expense) in the period of settlement. No AOCI items were present during the three and six months ended March 31, 2023 and 2022, as all financial statement items were denominated in the US dollar. (Losses) gains from foreign currency transactions during the three months ended March 31, 2023 and 2022 totaled $46and ($194), respectively. (Losses) gains from foreign currency transactions during the six months ended March 31, 2023 and 2022 totaled $16and ($573), respectively.

Concentration of Credit Risk

Some of our US dollar balances are held in a Bermuda bank that is not insured. As of March 31, 2023 and September 30, 2022, uninsured deposits in the Bermuda bank totaled $250and $20,495, respectively. Our management believes that the financial institution is financially sound, and the risk of loss is low. The Company is in the process of migrating all of its banking to the institutions in the United States, which are insured by the FDIC up to $250,000.

Revenue Recognition

The Company follows the guidance contained in ASC 606, "Revenue Recognition." The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of goods of services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 outlines the following five-step revenue recognition model (along with other guidance impacted by this standard): (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; (5) recognize revenue when or as the entity satisfies a performance obligation.

Revenue - Royalties (Restated)

The Company enters into agreements with third-party developers that require us to make payments for game development and production services. In exchange for our payments, we receive the exclusive publishing and distribution rights to the finished game titles as well as, in some cases, the underlying intellectual property rights. The Company has several contracts with video game developers that entitle us to royalty streams as a percentage of revenues generated by the game sales, which vary from contract to contract. As of March 31, 2023, the Company has four royalty contracts with three developers that are generating royalty revenue.

Once a game has been developed and has met the terms of the underlying royalty agreement, the game is released for commercial sales. Per each contract, the Company will receive reports on a regular basis from the game developers' sales platforms that identify the amount of game sales, from which consideration expected to be collected from the commercial customers is computed based on the applicable royalty percentages. Royalty revenue is based on a percentage of net receipts as defined in each customer agreement and is recognized in accordance with the sale-based royalty provisions of ASC 606, which requires revenue recognition after the subsequent sales occur. The Company's performance obligation under each royalty contract as an investor in the game is complete once funds are advanced to the gaming developer. Subsequent consideration is then received by the Company from the developers in the amount of the Company's percentage fee of royalty income (net receipts) received by the customer. Net receipts include all gross revenues received by the customer as a result of sales of the games or related exploitation less certain taxes, refunds, manufacturing costs, freight, and other items specified in the underlying contract.

During the three months ended March 31, 2023 and 2022, the Company recognized revenue from royalties of $33,373and $29,638, respectively. During the six months ended March 31, 2023 and 2022, the Company recognized revenue from royalties of $53,385and $51,908, respectively.

Royalties Receivable - (Restated)

The Company provides an allowance for doubtful accounts equal to the estimated uncollectible royalties. The Company's estimate is based on historical collection experience and a review of the current status of royalties receivable. It is reasonably possible that the Company's estimate of the allowance for doubtful accounts will change and that losses ultimately incurred could differ materially from the amounts estimated in determining the allowance. The Company had royalties receivable of $125,991and $105,856at March 31, 2023 and September 30, 2022, respectively, and has determined that no allowance is necessary.

Going Concern

The accompanying consolidated financial statements have been prepared in conformity with US GAAP, which contemplates the Company's continuation as a going concern. The Company has not established profitable operations and has incurred significant losses since its inception. The Company's plan is to grow significantly over the next few years through strategic game development partnerships, through internal game development and through the acquisition of independent game development companies globally.

The Company has taken much of the cash flow from its first royalty agreement and has invested in royalty agreements for the development of several other video games. By continuing to reinvest these royalties into agreements to develop new games, along with actively managing corporate overhead, management's plan is to substantially increase its video game royalty portfolio and cash flow over the next several years. The Company intends to continue to grow its game portfolio over the next several years, focusing on console games, virtual reality games and mobile games.

There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or debt financing necessary to support its working capital requirements. To the extent that funds generated from operations and any private placements, public offerings and/or debt financing are insufficient, the Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available to the Company, it may be required to curtail or cease its operations.

Due to uncertainties related to these matters, there exists a substantial doubt about the ability of the Company to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

New Accounting Pronouncements

The Company has evaluated all recently issued or enacted accounting pronouncements, and has determined that all such pronouncements either do not apply or their impact is insignificant to the financial statements.

Note 3 - Restatement

Restatement Effect on Previously Issued Financial Statements

In connection with the preparation of the March 31, 2022 consolidated financial statements, the Company determined that there was an error with respect to recognizing 2022 and 2021 revenue in the correct fiscal period. Accordingly, the Company restated its unaudited condensed consolidated financial statements for the six months ended March 31, 2022 as shown in the tables below.

		For the Year Ended
		March 31, 2023
Consolidated Statement of Operations		As Reported			Adjustment			Restated
Revenue - royalties		$	75,597			$	(22,212	)		$	53,385
Loss from operations			(1,430,026	)			(22,212	)			(1,452,238	)
Net loss			(1,706,150	)			(22,212	)			(1,728,362	)

		For the Year Ended
		March 31, 2022
Consolidated Statement of Operations		As Reported			Adjustment			Restated
Revenue - royalties		$	60,030			$	(8,122	)		$	53,385
Loss from operations			(253,567	)			(8,122	)			(261,689	)
Net loss			(490,011	)			(8,122	)			(498,133	)

		For the Six Months Ended March 31, 2023
Consolidated Statement of Cash Flows		Reported			Adjustment			Restated
Net loss		$	(1,706,150	)		$	(22,212	)		$	(1,728,362	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Royalties receivable			(42,347	)			22,212				(20,135	)

		For the Six Months Ended March 31, 2022
Consolidated Statement of Cash Flows		Reported			Adjustment			Restated
Net loss		$	(490,011	)		$	(8,122	)		$	(498,133	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Royalties receivable			4,382				8,122				12,504

Note 4. Stockholders' Equity (Deficit)

The Company's common stock is quoted under the symbol "VRVR" on the OTC Pink tier operated by OTC Markets Group, Inc. To date, an active trading market for the Company's common stock has not developed.

Treasury Stock

The Company accounts for treasury stock using the cost method. During the three months ended June 30, 2022, the Company acquired 41,250shares at $0cost of its then-issued and outstanding common stock pursuant to a claw-back provision in one of its notes payable (Note 4). At March 31, 2023 and September 30, 2022, the Company held these shares in treasury.

Common Stock

The Company is authorized to issue 90,000,000shares of common stock at par value of $0.001. At March 31, 2023, the Company had 8,312,784shares issued and 8,271,534shares outstanding, with 41,250shares held as treasury stock. At September 30, 2022, the Company had 8,100,284shares issued and 8,059,034shares outstanding, with 41,250shares held as treasury stock.

On August 16, 2022, the Company entered into a one-year agreement with two groups to assist the Company with creating interactive gaming and entertainment experiences, including metaverse, utilizing blockchain and Non-Fungible Tokens, as well as assisting the Company with investor and public relations. As part of the agreement, each group received 225,000shares which were valued at $2.10per share and a total expense of $945,000was recorded as prepaid expense and will be amortized over the life of the contract. Total expense recognized for the three months ended March 31, 2023 was $233,014. Total expense recognized for the six months ended March 31, 2023 was $471,205. As of March 31, 2023, total prepaid stock expense amortized was $587,712, resulting in $357,288remaining prepaid expense.

On October 26, 2022, the Company entered into a one-year agreement with a group to assist the Company with creating a customized positive investment image and communicate that image to the investment community. As part of the agreement, they received 200,000shares which were valued at $1.49per share and a total of $298,000was recorded as prepaid expense and will be amortized over the life of the contract. The total expense recognized for the three months ended March 31, 2023 was $73,479. Total expense recognized for the six months ended March 31, 2023 was $127,364resulting in $170,636remaining prepaid expense.

On November 28, 2022, the Company entered into a four-month agreement with a group to assist the Company with product awareness program and to conduct customer lead generation activities. Under the agreement the Company agreed to issue the group 12,500shares during each month of the agreement. During the three months ended December 31, 2022, the Company issued 12,500shares of common stock, which were valued at $1.19per share. The total expense recognized for the three months ended December 31, 2022 was $14,875. Work on this contract was temporarily paused after one month so no further payments were made, and the Company is currently renegotiating the contract with the vendor.

Preferred Stock

The Company is authorized to issue 10,000,000each of Series A and B preferred shares at a par value of $0.01. Series A preferred shares are not convertible, whereas Series B preferred shares are convertible into common stock on a one-for-one basis at the option of the holder and there is no redemption feature.

At March 31, 2023 and September 30, 2022, the Company had 270,612shares of Series B convertible preferred stock issued and outstanding.

Warrants

In connection with the August 16, 2022 agreements under "Common Stock" above, the Company issued one-year warrant to purchase 225,000common shares at $1.00and a two-year warrant to purchase 225,000common shares at $1.00. On the date of the grant, the Company elected to treat the warrants as a single award, and valued the warrants of 1and 2years, expected volatility of 109.88%, risk-free rate of 3.28% and no dividend yield. The total expense of $1,127,722is being amortized over the life of the contract and a total of $317,172was recognized for the three months ended March 31, 2023.A total of $641,392was recognized for the six months ended March 31, 2023 resulting in $486,330remaining as prepaid expense at March 31, 2023.

In connection with the October 26, 2022 agreement under "Common Stock" above, the Company issued a one-year warrant to purchase 200,000common shares at $1.00and a two-year warrant to purchase 200,000common shares at $1.00. On the date of the grant, the Company elected to treat the warrants as a single award, and valued the warrants at $363,209using the Black-Scholes option pricing model with the following assumptions: expected life of the options of 1and 2years, expected volatility of 111.16%, risk-free rate of 4.75% and no dividend yield. The total expense of $363,209is being amortized over the life of the contract and a total of $89,559was recognized for the three months ended March 31, 2023. A total of $155,234was recognized for the six months ended March 31, 2023, resulting in $207,975remaining as prepaid expense at March 31, 2023.

The following table reflects a summary of Common Stock warrants outstanding and warrant activity during the year ended March 31, 2023:

		Underlying Shares			Weighted Average Exercise Price			Weighted Average Term (Years)
Warrants outstanding at September 30, 2022			900,000				1.00				1.38
Granted			400,000				1.00				1.07
Exercised			-				-				-
Forfeited			-				-				-
Warrants outstanding and exercisable at March 31, 2023			1,300,000			$	1.00				0.94

The intrinsic value of warrants outstanding as of March 31, 2023 was $-0-, as the exercise price exceeded the Company's stock price.

Note 5. Notes and Convertible Notes Payable

On March 20, 2019, an unrelated individual loaned VRVR $10,000. The note carries a 6% interest rate and was initially payable March 20, 2020, and then amended on July 27, 2022 to mature on March 20, 2024. The maturity date has been extended to March 20, 2025. As of March 31, 2023 and September 30, 2022, the note balance was $10,000, and accrued interest on the note totaled $2,420and $2,121, respectively.

On September 23, 2021, an unrelated third party loaned VRVR $235,000that consisted of cash received by the Company in the amount of $217,375and an original issue discount of $17,625. This discount was amortized over the life of the note commencing October 1, 2021. The note carried a 12.5% annual interest rate and matured on March 23, 2022. Under the terms of the agreement, the Company paid any accrued interest on a monthly basis. In addition, under the terms of the agreement, the Company issued 82,500commitment shares to the holder at $2.00per share and an expense of $165,000was applied as an additional discount to the note and amortized over the life of the note. The Company had the right to redeem 41,250of the commitment shares if the note was repaid on or before the maturity date. On September 30, 2021, principal and accrued interest totaled $235,000and $571, respectively. On March 23, 2022, the note payable balance of $235,000and unpaid interest of $1,958were repaid in full in the amount of $236,958. During the period of October 1, 2021 through March 23, 2022, interest payments totaling $12,811were made, resulting in $14,769total interest payments during the nine months ended June 30, 2022, and $0principal and interest balances at June 30, 2022. As a result of this repayment, 41,250of the commitment shares were redeemed at $0cost and are being held in treasury.

On March 15, 2022, an unrelated third party loaned VRVR $235,000that consisted of cash received by the Company in the amount of $217,375and an original issue discount of $17,625. This discount is being amortized over the life of the note commencing March 15, 2022. The note carries a 15% annual interest rate and matures on March 15, 2023. As of March 31, 2023 and September 30, 2022, the note balance was $235,000and $235,000, respectively, and the accrued interest was $36,796and $19,218, respectively. The note is convertible at a price of $1.25per share. As of March 15, 2023, the note was in default. On March 28, 2023, the Company paid $5,000to extend the maturity date to May 31, 2023. This fee is included in interest expense on the statements of operations.

On March 21, 2022, an unrelated third party, loaned VRVR $235,000that consisted of cash received by the Company, on April 4, 2022, in the amount of $217,375and an original issue discount of $17,625. This discount is being amortized over the life of the note commencing March 15, 2022. The note carries a 12% annual interest rate and matures on March 21, 2023. As of March 31, 2023 and September 30, 2022, the note balance was $235,000and $235,000, respectively, and the accrued interest was $28,974and $14,911, respectively. The note is convertible at a price of $1.25per share. As of March 15, 2023, the note was in default. On March 28, 2023, the Company paid $5,000to extend the maturity date to May 31, 2023. This fee is included in interest expense on the statements of operations.

Debt discount amortization on the above notes totaled $94,457and $96,376during the three months ended March 31, 2023 and 2022, respectively. Debt discount amortization on the above notes totaled $207,314and $192,439during the six months ended March 31, 2023 and 2022, respectively. Total unamortized debt discount totaled $0and $207,314at March 31, 2023 and September 31, 2022, respectively.

Note 6. Related Party Transactions

Note Payable, Related Party

On March 29, 2018, the Company issued a $750,000, unsecured promissory note to the Company's CEO for a potential acquisition and working capital. The note carries an interest rate of 6% per annum, compounding annually, and matured on December 31, 2022. All principal and interest were due at maturity and there was no prepayment penalty for early repayment of the note. As of March 31, 2023 and September 30, 2022, total balance on the debt was $741,030and accrued interest totaled $251,577and $223,940, respectively. As of December 31, 2022, the note was in default. The Company is currently negotiating new terms for this note.

Note 7. Note Receivable

On December 11, 2019, the Company issued a $25,000, unsecured promissory note receivable to a non-related entity. The note carries an interest rate of 6% per annum and is due on demand. As of March 31, 2023 and September 30, 2022 accrued interest was $5,334and $4,586, respectively.

Note 8. Subsequent Events

The Company has evaluated other events subsequent to the balance sheet date through the date these financial statements were issued and determined that there are no events requiring disclosure.

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement about Forward-Looking Statements

This Form 10-Q/A contains forward-looking statements regarding future events and the Company's future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). These statements are based on current expectations, estimates, forecasts, and projections about the industry in which the Company operates and the beliefs and assumptions of the Company's management. Words such as "hopes," "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "may," variations of such words, and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of the Company's future financial performance, and other characterizations of future events or circumstances are forward-looking statements.

The Company is under no duty to update any of these forward-looking statements after the date of this report. You should not place undue reliance on these forward-looking statements.

EXECUTIVE OVERVIEW

Virtual Interactive Technologies Corp. (OTCPINK: VRVR) ("VIT") or ("the Company") is a next generation game and metaverse developer that creates immersion experiences by harnessing the latest technologies, including Blockchain and digital assets. The Company's newly launched brand, Extrosive, is building a metaverse that replaces traditional boring financial experiences with a new paradigm, "global Prosperity space" (gPs). This new asset class dynamically augments global and local realities and builds communities of aligned financial values, virtuous economies, and a trusted network. The result would be a metaverse game for the glamourous world of Wall Street, High-Speed trading involving community building, quantified self, and NFTs - a pure adrenal rush! In addition, the Company continues to build on its successful catalog that includes Carmageddon Max Damage, Carmageddon Crashers, Interplanetary: Enhanced Edition, Catch & Release, and Worbitol. The Company also entered into a joint development partnership with Duane Lee "Dog" Chapman, of the "Dog The Bounty Hunter" fame, to develop and promote multiple games across several platforms. For more information, please visit www.vrvrcorp.com.

Results of Operations

The following discussion involves the results of operations for the three and six months ended March 31, 2023 and March 31, 2022.

.

For the Three Months Ended March 31, 2023 and 2022

Revenue increased slightly from $29,638 for the three months ended March 31, 2022 to $33,373 for the three months ended March 31, 2023. Revenue was derived from royalty interests in five games, Carmageddon Max Damage, Carmageddon Crashers, Catch & Release, Interplanetary: Enhanced Edition and Worbital.

Operating expense for the three months ended March 31, 2023 and 2022 was $740,620 and $115,788, respectively. This increase was primarily due to professional fees incurred through issuances of stock and warrants that were associated with three vendor contracts.

Other income (expense) for the three months ended March 31, 2023 and 2022 was ($133,499) and ($117,809), respectively. This increase in expense was mainly due to interest expense in the current period of $25,792 versus $8,547 for the three month period ended March 31, 2022. Interest expense on related party debt recorded for the three months ended March 31, 2023 and 2022 was $13,666 and $13,136, respectively. Non cash transactions associated with the amortization of debt discount for the three months ended March 31, 2023 were $94,457 versus $96,376 for the three months ended March 31, 2022.

For the three months ended March 31, 2023 we recorded a net loss of $840,746. For the three months ended March 31, 2022, we recorded a net loss of $203,959. The increase in loss of $636,787 was mainly associated with the decrease in revenue, additional general and administrative expenses related to stock based compensation identified above, and interest expense associated with our convertible notes payable.

For the Six Months Ended March 31, 2023 and 2022

Revenue decreased from $51,908 for the six months ended March 31, 2022 to $53,385 for the six months ended March 31, 2023. Revenue was derived from royalty interests in five games, Carmageddon Max Damage, Carmageddon Crashers, Catch & Release, Interplanetary: Enhanced Edition and Worbital.

Operating expense for the six months ended March 31, 2023 and 2022 was $1,505,623 and $313,597, respectively. This increase was primarily due to professional fees incurred through issuances of stock and warrants that were associated with three vendor contracts.

Other income (expense) for the six months ended March 31, 2023 and 2022 was ($276,124) and ($236,444), respectively. This increase in expense was mainly due to interest expense in the current period of $41,937 versus $16,042 for the six month period ended March 31, 2022. Interest expense on related party debt recorded for the six months ended March 31, 2023 and 2022 was $27,637 and $28,288, respectively. Non cash transactions associated with the amortization of debt discount for the six months ended March 31, 2023 were $207,314 versus $192,439 for the six months ended March 31, 2022.

For the six months ended March 31, 2023 we recorded a net loss of $1,728,362. For the six months ended March 31, 2022, we recorded a net loss of $498,133. The increase in loss of $1,230,229 was mainly associated with the decrease in revenue, additional general and administrative expenses identified above, and interest expense associated with our convertible notes payable.

Liquidity and Capital Resources

As of March 31, 2023, we had cash and cash equivalents of $2,571. As of September 30, 2022, we had cash and cash equivalents of $36,378. Working capital was $(220,320) as of March 31, 2023 compared to $831,659 at September 30, 2022. The decrease in working capital of $1,051,979 was primarily the result of vendor contracts associated with stock and warrants issued for services. The respective expense was recorded as a prepaid asset and amortized over the life of the contract.

Cash Flows from Operating Activities:

Net cash used in operating activities for the six months ended March 31, 2023 and 2022 was $33,807 and $201,940, respectively. The change over the two periods presented was $168,133.

Changes in operating activities for the six months ended March 31, 2023 included increases in accounts payable of $38,477, interest receivable of $748, royalties receivable of $20,135, interest payable, related party of $27,637, and interest payable of $31,940. The Company also had non-cash expenses of $14,875 in stock issued for services, $1,395,195 in amortization of stock and warrants issued for prepaid services, and debt discount amortization of $207,314.

Changes in operating activities for the six months ended March 31, 2022 included increases in interest receivable of $898, interest payable, related party of $28,288, and interest payable of $1,274, as well as a decrease in royalty receivable of $12,504. The Company also had non-cash expenses of $93,000 in amortization of stock issued for prepaid services and debt discount amortization of $192,439.

Cash Flows from Investing Activities:

The Company had no cash flows from investing activities during the six months ended March 31, 2023 or 2022.

Cash Flows from Financing Activities:

Net cash used in financing activities for the six months ended March 31, 2023 and 2022 was $0 and $17,625, respectively. The change over the two periods presented was $17,625, and is due to repayments on notes payable, related parties totaling $235,000 offset by proceeds from notes payable totaling $217,375 during the six months ended March 31, 2022. No cash flows from financing activities in the six months ended March 31, 2023.

ITEM 4.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of our disclosure controls and procedures as of March 31, 2023. This evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive and Financial Officer.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in our company's reports filed under the Securities Exchange Act of 1934 is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Based upon that evaluation, our Chief Executive and Financial Officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during the three months ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

Item 6. Exhibits

Exhibits

3.1		Articles of Incorporation (1)
3.2		Amended Articles of Incorporation (1)
3.3		Bylaws (1)
31.1*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act
31.2*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act
32.1*		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act
32.2*		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

(1) Incorporated by reference to the same exhibit filed with the Company's registration statement on Form S-1 (File #333-190265).

* Provided herewith

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant has caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized on the 15th day of April 2024.

	VIRTUAL INTERACTIVE TECHNOLGIES CORP.
	By:	/s/ Jason D. Garber
		Jason D. Garber
		Principal Executive Officer
	By:	/s/ James W. Creamer III
		James W. Creamer III
		Principal Financial and Accounting Officer

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