Titan Trading Analytics 20F 2006 Annual report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 20-F

¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934

xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended:October 31, 2005

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

¨ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to ______________

Commission file number: 000-25289

TITAN TRADING ANALYTICS INC.
(Exact name of Registrant as specified in its charter)

Alberta, Canada
(Jurisdiction of incorporation or organization)

751, 815 – 8^th Avenue SW, Calgary, Alberta, Canada, T2P 3P2
(Address of principal executive offices)

Securities registered or to be registered pursuant to Section 12(b) of the Act.


Title of each class	Name of each exchange on
	which registered
N/A	N/A

Securities registered or to be registered pursuant to Section 12(g) of the Act.

Common Shares Without Par Value
(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

None
(Title of Class)

The number of common shares outstanding as of October 31, 2005: 22,646,399

Indicate by check mark if the registrant is a well-known seasoned issuer as defined in Rule 405 if the Securities Act. Yes¨ Nox

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes¨ Nox

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. Yesx No¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer ¨

Accelerated Filer ¨

Non-accelerated filer x

Indicate by check mark which financial statement item the registrant has elected to follow. Item 17x Item 18 ¨

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes¨ Nox

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(3) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes¨ No¨

TABLE OF CONTENTS

Titan Trading Analytics Inc.
Form 20-F Annual Report

Table of Contents


Section		Page

PART I
ITEM 1:	IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS	1
ITEM 2:	OFFER STATISTICS AND EXPECTED TIMETABLE	1
ITEM 3:	KEY INFORMATION	1
A.	Selected Financial Data	1
B.	Capitalization and Indebtedness	2
C.	Reasons for the Offer and Use of Proceeds	2
D.	Risk Factors	2
ITEM 4:	INFORMATION ON THE COMPANY	7
A.	History and Development of the Company	7
B.	Business Overview	8
C.	Organizational Structure	14
D.	Property, Plants and Equipment	15
ITEM 4A:	UNRESOLVED STAFF COMMENTS	15
ITEM 5:	OPERATING AND FINANCIAL REVIEW AND PROSPECTS	15
A.	Operating Results	16
B.	Liquidity and Capital Resources	17
C.	Research and Development, Patents and Licenses, etc	19
D.	Trend Information	19
E.	Off-balance Sheet Arrangements	19
F.	Tabular Disclosure of Contractual Obligations	19
ITEM 6:	DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES	19
A.	Directors and Senior Management	19
B.	Compensation	20
C.	Board Practices	21
D.	Employees	25
E.	Share Ownership	25
ITEM 7:	MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS	26
A.	Major Shareholders	26
B.	Related Party Transactions	28
C.	Interests of Experts and Counsel	29
ITEM 8:	FINANCIAL INFORMATION	29
A.	Consolidated Statements and Other Financial Information	29
B.	Significant Changes	30
ITEM 9:	THE OFFER AND LISTING	30
A.	Offer and Listing Details	30
B.	Plan of Distribution	31
C.	Markets	31
D.	Selling Shareholders	31
E.	Dilution	31
F.	Expenses of the Issue	31
ITEM 10:	ADDITIONAL INFORMATION	32
A.	Share Capital	32
B.	Articles of Incorporation	32
C.	Material Contracts	33
D.	Exchange Controls	34
E.	Taxation	34


F.	Dividends and Paying Agents	43
G.	Statement by Expert	43
H.	Documents on Display	43
I.	Subsidiary Information	43
ITEM 11:	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	43
ITEM 12:	DESCRIPTIONS OF SECURITIES OTHER THAN EQUITY SECURITIES	43

PART II
ITEM 13:	DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES	44
ITEM 14:	MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS	44
ITEM 15:	CONTROLS AND PROCEDURES	44
A.	Disclosure Controls and Procedures	44
B.	Management / Annual Report on Internal Controls over Financial Reporting	44
C.	Attestation Report of the Registered Public Accounting Firm	44
D.	Changes in Internal Control Over Financial Reporting	44
ITEM 16A:	AUDIT COMMITTEE FINANCIAL EXPERT	44
ITEM 16B:	CODE OF ETHICS	44
ITEM 16C:	PRINCIPAL ACCOUNTANT FEES AND SERVICES	45
ITEM 16D:	EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES	45
ITEM 16E:	PURCHASE OF EQUITY SECURITIES BY AFFILIATED PURCHASES	45

PART III
ITEM 17:	FINANCIAL STATEMENTS	47
ITEM 18:	FINANCIAL STATEMENTS	70
ITEM 19:	EXHIBITS	70

NOTE REGARDING FORWARD–LOOKING STATEMENTS

Certain statements in this document constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Such statements are included, among other places, in this document und er the headings “Business Overview”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Trend Information”. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. These include, but are not limited to, our history of losses and likelihood of continued losses, our need for additional financing, our desire to acquire certain rights and interests to our software, the potential effect and impact of certain United States and Canadian securities laws on our business activities, the control certain shareholders exercise over us, competition, the market acceptance of our software, our ability to develop and release new software products and services, our dependence upon key personnel, our lack of an experienced sales staff or marketing personnel, the nature of our business, the volatility of the price for our common shares, potential product liability claims, our need for improved intellectual property protection, our common shares being deemed a “penny stock” under United States securities laws, and the potential inability for United States investors to enforce United States judgments against us or our officers or directors and the effect of our PFIC (as defined below) status on our United States shareholders. Additional information concerning these and other factors that could affect our operations or financial results are included in this document under “Item 3.D. – Risk Factors”. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance and achievements or other future events. We are under no duty to update any of our forward-looking statements after the date of this report. You should not place undue reliance on such fo rward-looking statements.

CURRENCY AND EXCHANGE RATES

The following table sets out the exchange rates, based on the noon buying rates in New York City for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York, for the conversion of Canadian dollars into United States dollars in effect at the end of the following periods, and the average exchange rates (based on the average of the exchange rates on the last day of each month in such periods) and the range of high and low exchange rates for such periods.


	Year Ended October 31,

	2005	2004	2003	2002	2001	2000

Average for Period	0.8213	0.7634	0.6880	0.6354	0.6513	0.6792

The following table sets out the high and low exchange rates for one Cdn$ expressed in terms of one US$ in effect at the end of the following periods.

U.S. Dollars Per Canadian Dollar


	October	November	December	January	February	March
	2005	2005	2005	2006	2006	2006
High for the Month	0.8579	0.8579	0.8690	0.8744	0.8788	0.8834
Low for the Month	0.8413	0.8361	0.8521	0.8528	0.8638	0.8531

As of April 26, 2006, the noon rate of exchange, as reported by the Federal Reserve Bank of New York for the conversion of United States dollars into Canadian dollars was US$0.8872 (US$1.00 = CDN$1.1271).

In this Form 20-F, unless otherwise specified, all monetary amounts are expressed in Canadian dollars.

References to “Titan”, the “Company”, “we” and “us” are references to Titan Trading Analytics Inc.

PART I

ITEM 1: IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS

Not applicable.

ITEM 2: OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3: KEY INFORMATION

A. Selected Financial Data

The following tables set forth our financial data for our fiscal years ended October 31, 2005, 2004, 2003, 2002, and 2001. We derived all figures from our financial statements, which were audited by our independent auditors. This information should be read in conjunction with our financial statements included in this annual report.

Our financial statements included in this annual report and in the table set forth below have been prepared in accordance with generally accepted accounting principles in Canada, which may differ from United States generally accepted accounting principles. A reconciliation to United States generally accepted accounting principles is included in Note 14 to our audited financial statements.


	FISCAL YEAR ENDED:
	OCT 31, 2005	OCT 31, 2004	OCT 31, 2003	OCT 31, 2002	OCT 31, 2001
REVENUE	-	-	-	$44,935	$52,696
EXPENSES	$1,343,289	$457,589	$162,137	$705,997	$718,987
INTEREST/OTHER INCOME	-	-	-	$581	$11,802
NET LOSS FOR YEAR CDN GAAP	$1,343,289	$457,589	$162,137	$661,062	$666,291
NET LOSS FOR YEAR US GAAP	$1,343,289	$457,589	$162,137	$661,062	$666,291
NET LOSS PER SHARE CDN GAAP	($0.07)	($0.04)	($0.02)	($0.07)	($0.07)
NET LOSS PER SHARE, BASIC AND DILUTED, US GAAP	($0.07)	($0.04)	($0.02)	($0.10)	($0.10)
NET WORKING CAPITAL	($76,993)	($324,246)	($213,012)	($50,865)	$348,457
TOTAL ASSETS CDN GAAP	$213,066	$93,453	$16,328	$8,115	$647,904
TOTAL ASSETS US GAAP	$213,066	$93,453	$16,328	$8,115	$647,904

Page 1 of 71


NET ASSETS	($45,994)	($305,191)	($208,002)	($45,865)	$615,197
CAPITAL STOCK	$5,293,505	$3,948,594	$3,715,938	$3,715,938	$3,715,938
SHARES OUTSTANDING	22,646,399	13,024,965	9,812,966	9,812,966	9,812,966
LONG-TERM OBLIGATIONS	NIL	NIL	NIL	NIL	NIL

We have not, since our incorporation, paid any dividends on any of its shares and presently has no intention of paying dividends. The future dividend policy will be determined by the Board of Directors on the basis of earnings, financial requirements and other relevant factors.

B. Capitalization and Indebtedness

Not applicable.

C. Reasons for the Offer and Use of Proceeds

Not applicable.

D. Risk Factors

The risk factors set forth below are believed to be important in that they may have a material impact upon our future financial performance and could cause actual results to differ materially from those expressed in any forward-looking statement we make. All material risk factors known to us are discussed below, however, note that unknown factors, not discussed in this filing, could also have a material adverse effect on our actual financial and other results.

We have had a history of losses and there is a likelihood of continuing operating losses.

We were incorporated on November 30, 1993, commenced operations in May 1994 and have yet to establish profitable business operations. To date, we have been largely engaged in product research and development and establishing a marketing strategy. Our accumulated deficit through October 31, 2005 is $5,791,418. Our initial products and planned services are just beginning to become available for market release and sale. We thus have a limited operating history and are expected to continue to incur losses and negative cash flow in the immediate future as these new products and services are completed and marketed. Our ability to succeed depends upon us achieving positive cash flow, failing which we will have to seek additional financing, and there can be no assurance that any additional financing will be available on acceptable terms, or at all.

We will need additional financing to fund our operations in the future.

As at October 31, 2005, we had $109,191 cash and receivables totaling $72,172.

We will need additional financing to fund our operations in the future. There can be no assurance that we will be successful in raising additional funds or that additional financing, if any, can be obtained on terms acceptable to us. Such financing, to the extent that it is available may result in substantial dilution to our shareholders. To the extent such financing is not available, we may not be able to, or may be delayed in, continuing to commercialize our software products and services, and we may have to curtail our operations.

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Certain of our software is licensed and we may encounter difficulties in acquiring the rights to such software.

Our business plan is currently based on the exploitation of certain automated trade selection and order entry software (the “TOPS Technology”) to which we hold an exclusive use license and a third-party revenue interest from Cignal Technologies LLC, a Rhode Island limited liability company owned and operated by Mr. Philip Carrozza (“Cignal”), a director and officer of Titan, who has an option to acquire from the Company up to 2.2% of our common shares, and who has developed an automated trading platform using and further developing the TOPS Technology. We rely upon Cignal’s continued licensing of the TOPS Technology to us. The interest of Cignal may differ from ours and Cignal could violate our agreement with them by, among other things, failing to continue to license to us in the jurisdictions we currently hold the rights to the sale and distribution of the TOPS Technology.

If Cignal violates our agreement, we may have to resort to litigation to enforce our rights. The litigation could result in the disruption of our business, diversion of our resources and the incurrence of substantial costs.

In February 2006, we entered into a Software Transfer Agreement with Phillip Carrozza and Cignal, with respect to the transfer of certain trading models, suitable for stocks or futures and software-based formulas that implement the trading models and their accompanying indicators. Pursuant to the Software Transfer Agreement, we will issue to Cignal and Mr. Carrozza a total of 3,000,000 common shares, 1,000,000 of which will be issued on closing and the remaining 2,000,000 will be issued in 1,000,000 increments in each of 2007 and 2008. Cignal was also granted 1,000,000 performance warrants. The Software Transfer Agreement provides Cignal with a right of first refusal, in the event that we become insolvent, to match a proposed sale of the software to a third party.

We have also entered into a Software Transfer Agreement with Michael Gossland, a director and officer of Titan, with respect to the transfer of certain executable programs and software-based formulas. Pursuant to the Software Transfer Agreement, we will issue Mr. Gossland 1,500,000 common shares and 1,000,000 performance warrants. The Software Transfer Agreement provides Mr. Gossland with a right of first refusal, in the event that we become insolvent, to match a proposed sale of the software to a third party.

A total of 1,000,000 of the performance warrants issued to Cignal, Mr. Carrozza and Mr. Gossland are exercisable at a price of $0.50 per share for a six month period commencing November 1, 2007 and the remaining 1,000,000 performance warrants are exercisable at a price of $1.00 per share for a six month period commencing November 1, 2008. The release of these warrants is conditional upon the 20 day average stock price on these dates being no less than $1.00 and $2.00 per share, respectively.

In connection with the Software Transfer Agreements, we have entered into consulting agreements with each of Cignal Technologies and Michael Gossland, whereby they will provide consulting services to us until October 31, 2008.

The newly completed software transfer agreements are subject to shareholder and regulatory approval of the transfers of the software and the issuance of securities, and upon such approval the TOPS Technology licensing agreement will terminate and give us full ownership of the software developed to date as well as into the future. All of the securities issued in connection with the software transfer agreement are subject to a four month hold period.

The Software Transfer Agreements will be tabled for approval by our shareholders at the annual and special meeting scheduled for May 5, 2006.

Certain of our software will be used in United States and Canadian financial markets and may result in increased regulation of our business activities.

The manner in which we market, sell and derive revenues from our automated trade selection and order entry software may result in certain United States securities laws regulating our activities, namely the

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Investment Company Act of 1940, as amended, the Investment Advisors Act of 1940, as amended, and federal and state broker-dealer laws. If we decide to engage in business activities that are regulated by any of such laws, our legal and other compliance costs associated with operating our business will likely increase significantly.

Certain of our shareholders may exercise control over matters voted upon by our shareholders.

Certain of our officers, directors and entities affiliated with us together beneficially owned a significant portion of our outstanding common shares as of April 26, 2006. These shareholders are able to exercise significant influence over matters requiring shareholder approval, including the election of directors and the approval of mergers, consolidations and sales of our assets. This fact may prevent or discourage tender offers for our common shares.

We are in an early stage of development and there is no assurance of market acceptance of our software.

Our revenue model is to exploit automated trade selection and order entry software in which we own certain rights, as well as our wholly owned trading analytics software, as follows:

•

by establishing a profitable trading operation; and/or

•

by licensing software and providing support services to third parties.

We are currently exploring several opportunities; however, there can be no assurance we will be successful in our efforts.

Our products and services face significant competition in the marketplace.

A number of our competitors have substantially greater financial, technical and marketing resources. In addition, the market for our software products continues to develop, and additional competitors with substantially greater financial, technical and marketing resources may enter the market and competition may intensify. Current or future competitors may develop software products that are superior to our software products or achieve greater market acceptance.

We will depend on the timely development and release of new software products and services.

The achievement of our business objectives and our future operating results is dependent upon completion and execution of our marketing strategies and on the continued development and successful deployment of our trading software products and services. Timing in this regard is crucial, as other similar services that reach the market prior to ours may capture a significant portion of market share. There can be no assurance that the timing of our business plan will allow us to achieve profitability in our operations.

We depend on key personnel.

We depend on key personnel whose loss of service would have an adverse effect. We depend on our Chief Technology Officer, Mr. Gossland, and our Director of U.S. Trading Operations, Mr. Carrozza, for the success of our intended business plan. We do have formal employment agreements with Mr. Gossland and Mr. Carrozza. The loss of their services would have a materially adverse effect upon our future operating profits and prospects.

We do not have experienced sales staff or marketing personnel.

We do not have experienced sales staff or marketing personnel to promote the product. We plan to market our software and services through direct sales efforts and word-of-mouth. We do not presently have in-

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house staffing of experienced sales and marketing personnel. There can be noassurance that we will be able to attract and retain the necessary personnel as and when required. We may not be able to address all potential markets adequately, without first establishing indirect distribution channels through distributors and selling agents, and there can be no assurance that we will be able to establish or maintain these channels cost effectively.

We intend to develop a securities trading business that may result in us incurring significant trading losses.

In the future, we plan to establish proprietary in-house trading activities, most likely through a subsidiary company or partnership arrangement. Such trading activity will involve a risk that we incur trading losses. Investors, partners and subscribers must expect trading losses in actual trading operations and potentially wide fluctuations in monthly trading performance. This presents an ongoing legal and financial risk, notwithstanding the protection we are afforded by the careful use of industry standard legal disclaimers.

Our wholly owned subsidiary may not be able to raise sufficient funds.

On January 19, 2005, we established our wholly owned subsidiary, Titan Trading GP Inc. under the laws of the province of Alberta (“Titan GP”). Titan GP is the general partner for Titan Trading Limited Partnership 1 (“TTLP1”), a limited partnership formed on February 14, 2005 under the laws of the province of Alberta. It is Titan GP’s responsibility, as the general partner of TTLP1, to manage its operations which will consist of raising financing by admitting limited partners to TTLP1 and using such financing to make trades employing our TOPS software and the N1 Expert System. The profits from this proposed trading activity will be distributed among Titan GP and the limited partners based on terms and conditions which are common for equity funds. We cannot assure you that Titan GP will be able to manage successful fund raising for TTPL1 and the failure to raise sufficient funding on a timely basis could cause TTLP1 to re duce or terminate its proposed plan of business. Even if sufficient funds are raised, there are no assurances that Titan GP will be able to manage TTLP1 to make a return for its limited partners.

On January 18, 2006, we formed Titan Trading Limited Partnership 2 (“TTLP2”), under the laws of the province of Alberta. Titan GP is the general partner for TTLP2. It is Titan GP’s responsibility, as the general partner for TTLP2 to manage its operations which will consist of raising financing by admitting limited partners to TTLP2 and using such financing to make trades employing our TOPS software and the NI Expert System. The profits, if any, from this proposed trading activity will be distributed among Titan GP and the limited partners based on terms and conditions which are common for equity funds. We cannot assure you that Titan GP will be able to manage successful fund raising for TTPL2 and the failure to raise sufficient funding on a timely basis could cause TTLP2 to reduce or terminate its proposed plan of business. Even if sufficient funds are raised, there are no assurances that Titan GP will be able t o manage TTLP2 to make a return for its limited partners.

Our intellectual property may not be appropriately protected and we may be infringing upon the proprietary rights of third parties.

With the exception of Mr. Carrozza and Mr. Gossland, we have not entered into agreements with any employees or consultants where such individuals have agreed to assign to us their proprietary rights to inventions or improvements to our products while employed by us, and no employee has entered into any form of non-competition agreement with us. If certain of our employees were to terminate their employment with us and compete directly against us, our business, results of operations and prospects would be significantly adversely affected.

Competitors may be able to copy our software technology. We have not filed for patent or copyright protection of our products nor has such protection been sought for software we have acquired certain rights to.

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We depend on our ability to protect the core proprietary software technologies we have developed or acquired certain rights to. In this regard, we rely on a combination of trade secrets, technical complexity, common law copyright and trademark protection, licensing agreements, password protection and software encryption schemes, as well as on the physical security of our source code. Despite these measures and precautions, it may be possible for an unauthorized third-party to copy our core technologies and offer them to the marketplace as its own, or to use a core technology and not pay for it. To date, we have not sought to obtain copyright registration or patent protection for any of our software products, though we may do so in the future. There can be no assurance, however, that such registration will be granted if applied for. Also, certain aspects of our software products are not subject to intellectual property protection in law, and to the extent such protection might be available, practical and legal distinctions may apply in different jurisdictions. In addition, there can be no assurance that competitors will not develop similar technology, products and services, and if they do, this could reduce the value of our proprietary technology and our ability to effectively compete.

Although we believe that we have the right to use all of the intellectual property incorporated in our software products, third parties may claim that our software products violate their proprietary rights, including copyrights and patents. The cost of litigation necessary to defend our right to use the intellectual property incorporated in our software products may be prohibitive. If any such claims are made and found to be valid or we determine it prudent to settle any such claims, we mayhave to re-engineer our software products or obtain licenses from third parties to continue offering our software products or in whole or in part cease using such technology. Any efforts to re-engineer our software products or obtain licenses from third parties or cease using such technology may not be successful and could substantially increase our costs and have a material adverse effect on our business, financial condition and results of operations.

As a developing company, the market price of our shares may be volatile.

Factors such as news announcements on our financial position, financial results and business developments, technical developments and innovations, competitors or third parties, industry developments in high-technology companies in general or securities trading software companies and securities trading platforms more particularly, on general stock market conditions, changes in interest rates or general economic conditions, unexpected and extreme general stock market price and volume fluctuations, or a lack of share volume liquidity, may individually or collectively have the effect of causing substantial fluctuations in the traded price of our common shares. Changes in the trading price of our shares may be unrelated to our performance or future prospects. In addition, investors in our shares may lose their entire investment if we incur large trading losses or if we fail in our business.

During the 2005 fiscal year, the closing price of our common shares as traded on the TSX Venture Exchange ranged from $0.08 to $0.44.

Our stock is ‘thinly-traded’ meaning that the number of persons interested in purchasing our common stock at or near ask prices may be relatively small.

Titan common stock is “thinly-traded” on the Over-the-Counter Bulletin Board, meaning that the number of persons interested in purchasing our common stock at or near ask prices at any given time may be relatively small or non-existent. This situation is attributable to a number of factors, including the fact that Titan is a small company which is relatively unknown to stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume, and that even if Titan came to the attention of such persons, they tend to be risk-averse and would be reluctant to follow an unproven development stage company such as Titan or purchase or recommend the purchase of Titan’s shares until such time as it became more seasoned and viable. As a consequence, there may be periods of several days or more when trading activity in our common stock is minimal or non-existent. We cannot give any assu rance that a broader or more active public trading market for our common stock will develop or be sustained, or that current trading levels will be sustained. Due to these conditions, we can give no assurance that holders of our common shares will be able to sell their shares at or near ask prices or at all if they desire to liquidate their shares.

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We may be subject to product liability claims.

We do not maintain product liability insurance against defects in the general performance of our software products. There can be no assurance that we will not be exposed to potential product liability claims in all markets in which we may sell or license our products or offer our services.

Our stock may be deemed a penny stock and additional disclosure requirements may be imposed when trading our common shares.

If the trading price of our common shares is less than US$5.00 per share, trading in our common shares would be subject to the requirements of certain rules promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which require additional disclosure by broker-dealers in connection with any trades involving a stock defined as a “penny stock”. A broker-dealer is required to deliver to a customer information regarding the risks of investing in penny stocks, its offer and bid prices for the penny stock and the amount of compensation received by the broker-dealer with respect to such transaction. The additional burdens imposed upon broker-dealers may discourage broker-dealers from effecting transactions in our common shares, which could reduce the liquidity of our common shares and thereby have a material adverse effect on the trading market for our securities.

A third-party may be unable to enforce U.S. judgments against us or our officers and directors.

We are incorporated under the laws of Alberta, Canada and, all of our directors and officers, with the exception of Mr. Carrozza, are residents of Canada. Consequently, it may be difficult for United States investors to effect service of process within the United States upon us or upon those directors or officers who are not residents of the United States, or to realize in the United States upon judgments of United States courts predicated upon civil liabilities under the Exchange Act. A judgmentof a U.S. court predicated solely upon such civil liabilities may be enforceable in Canada by a Canadian court if the U.S. court in which the judgment was obtained had jurisdiction, as determined by the Canadian court, in the matter. There is substantial doubt whether an original action could be brought successfully in Canada against any of such persons or us predicated solely upon such civil liabilities.

Our U.S. shareholders may face adverse tax consequences resulting from our PFIC status.

We believe that we qualify as a passive foreign investment Company (“PFIC”) for the fiscal year ended October 31, 2005, and may qualify as a PFIC in the future with respect to our U.S. shareholders because our only source of income is interest, a passive source of income under the PFIC rules.

See “Item 10.E. Taxation - United States Federal Income Tax Consequences” for a more detailed discussion of material United States federal income tax consequences for U.S. shareholders.

ITEM 4: INFORMATION ON THE COMPANY

A. History and Development of the Company

We were incorporated and validly exist as a corporation under a former Companies Act, as that term is defined in the Business Corporations Act (British Columbia), on November 30, 1993 under the name “KBK No. 24 Ventures Ltd.” We changed our name to “Titan Trading Analytics Inc.” by filing of an amendment to our Articles of Incorporation on November 14, 1994. We continued the Company under the Business Corporations Act (Alberta) on April 26, 2005. Our registered and records office is located at 751, 815 – 8^th Avenue SW, Calgary, Alberta, T2P 3P2. Our telephone number is (403) 543-2185.

On November 23, 1994, we incorporated Titan Trading Corp. under a former Companies Act, as that term is defined in the Business Corporations Act (British Columbia), as a wholly owned subsidiary. This subsidiary was originally incorporated with a view to eventually forming a separate trading business, but to

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date has conducted no business. It has no income, expenses, assets or liabilities and is presently an inactive subsidiary.

Titan also has a wholly owned subsidiary, Titan Trading GP Inc. (“Titan GP”), a corporation established under the laws of Alberta, which is the general partner for Titan Trading Limited Partnership 1 (“TTLP1”), a limited partnership formed on February 14, 2005 and Titan Trading Limited Partnership 2 (“TTLP2”) a limited partnership formed on January 18, 2006. Both limited partnerships were formed under the under the laws of Alberta. TTLP1 and TTLP2 are funds which are currently raising financing by offering limited partnership interests. Titan GP will receive a management fee and a share in the distributions and the carried interest with the limited partners. The purpose of TTLP1 and TTLP2 is to raise financing and then trade the funds using our Titan Order Processing Software (“TOPS”) and the N1 Expert System software.

Further, Titan has two wholly owned subsidiaries, Titan Trading USA, LLC (“Titan USA”), which is a Delaware LLC licensed to do business in New York and Florida and Titan Holdings USA, LLC (“Titan Holdings”), which is a Florida LLC. Thepurpose of Titan USA is raise financing from US subscribers and then trade the funds using our Titan Order Processing Software (“TOPS”) and the N1 Expert System software.

We have not been involved in any bankruptcy, receivership or similar proceedings, nor have we been a party to any material reclassification, merger, consolidation or purchase or sale of a significant amount of assets.

Our principal capital expenditures and divestitures during the last three financial years are as follows:


	2005	2004	2003
Purchase (sale) of property and equipment	$20,666	$18,292	$1,776

There are no principal capital expenditures currently in progress or anticipated.

There are no divestitures currently in progress.

There has been no indication of any public takeover offers by third parties in respect of our common shares or by us in respect of other companies’ shares during the last or in the current financial year.

B. Business Overview

The Company is a financial software developer that has developed market timing, trading analytics and automated trading execution software. The Company has yet to establish profitable business operations and has remained in research and development mode since its incorporation on November 30, 1993. Beginning in 1994 and continuing through 1995, Titan was generally focused on the development of initial software products and therefore conducted few trading or trade-testing activities. From 1996 through to 2002, Titan developed several software trading products including: (a) currency trading signals via fax, (b) VirtualTrader, a discretionary training and testing software, (c) the “Big Board” trading model, a proprietary setup of indicators and trading screens for discretionary trading, (d) Titan Market Commentary, a web-based stock commentary subscription service, and (e) Titan Market Watch, a web-based stock trading presentation package. In June 2003, Titan acquired rights to certain automated trading and analytic software (the “TOPS Technology”) from Cignal Technologies, LLC (“Cignal”) and has developed an automated trading platform using and further developing the TOPS Technology. Cignal is owned by Mr. Philip Carrozza, Titan’s US Director of Trading Operations. The Company did not have any revenues in 2005,2004 and 2003.

Pursuant to an agreement dated June 6, 2003 (the “License Agreement”), Cignal agreed to provide an exclusive 99-year license to the Company of the TOPS Technology and a 25% interest in all net profits third parties (subject to certain licenses being exempt) realize from the use of the TOPS Technology. In

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consideration therefore, the Company agreed to fund all future development costs associated with the TOPS Technology and development of related products. The Company is required to fund successive six month budgets (each budget not to exceed $100,000) relating to proposed developments of the TOPS Technology and related products, failing which Cignal may terminate the license. Pursuant to a related agreement among Dr. Ken Powell, Mr. Thomas Kreilein and Mr. Phillip Carrozza dated June 3, 2003, Dr. Powell and Mr. Kreilein agreed to transfer certain common shares and grant an option to purchase additional common shares of the Company to Mr. Carrozza as an inducement to enter into this License Agreement. This agreement purported to provide Mr. Carrozza with the right to terminate the License Agreement if certain trading price benchmarks of the common shares were not met. None of these benchmarks were met but the License Agreement was not terminated within the required time per iods.

In November 2004, the Company opened an office in West Palm Beach, Florida to be used as a base for Titan’s US trading operations. Mr. Carrozza is a registered broker in Florida, and has eighteen years experience and is the chief trading architect behind the Company’s trading logic for Titan’s Order Processing Software (TOPS). The Company intends to establish a presence in the United States which we expect will facilitate the Company’s business objectives and enable the Company to introduce TOPS to the trading community. The office also provides a training location for Titan’s future business partners.

In December 2005, the Company announced a joint venture agreement between its wholly owned subsidiary, Titan USA, and a leading financial institution to begin a 90 day beta test of its proprietary TOPS software. Profits from this venture will be split on a 50-50 basis, and a longer-term arrangement is expected to be negotiated subsequent to the end of the test period.

In January 2006, David Terk CPA, B.Sc. was appointed Chief Financial Officer of Titan USA, and the Company entered into a consulting agreement with Tony Robinson, who will assist Titan USA with foreign exchange trading and risk management.

In connection with the Software Transfer Agreements, we have entered into consulting agreements with each of Cignal and Michael Gossland, whereby they will provide consulting services to us until October 31, 2008.

The newly completed software transfer agreements are subject to shareholder and regulatory approval of the transfers of the software and the issuance of securities, and upon such approval the License Agreement licensing agreement will terminate and give us full ownership of the software developed to date as well as into the future. All of the securities issued in connection with the Software Transfer Agreement are subject to a four month hold period.

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The Software Transfer Agreements will be tabled for approval by our shareholders at the annual and special meeting scheduled for May 5, 2006.

Also in February 2006, the Company announced it had completed the initial phase of development of its own proprietary market data analysis platform, TickAnalyst. TickAnalyst includes a real-time tick-based database, as well as QuickTick Charting, and other components. TickAnalyst will be tested in-house by Titan USA, using both blackbox (fully automated) and grey box (partially automated) trading of stocks and world currencies.

The new TickAnalyst software will provide significant improvements to Titan’s existing proprietary trading operation software, TOPS, which is currently based on a third-party trading platform. The third-party platform will be replaced by Titan’s TickAnalyst.

QuickTick Charting is expected to offer very fast charts for any trading symbol within its supported exchanges as well as other capabilities designed with the grey-box trader in mind. After testing is complete, Titan will explore various avenues in which the QuickTick Charting system may be made available for use by other trading firms or groups of individual traders for a monthly fee.

Titan currently has two distinct trading software products to offer its customers, each of which presents our Company with a potential source of sales and revenues. These products are known as: 1) the N1Expert Trading System and 2) Titan’s Order Processing Software, or TOPS.

The Company’s wholly owned market timing software, N1Expert, relies upon the application of artificial intelligence (“AI”) to stock index trading, using neural networks and expert systems. Neural networks constitute an AI-based mathematical pattern recognition technique that allows software to mimic the information processing functions of humans. The software is “taught” to recognize complex patterns through trial and error, without being programmed with specific preconceived rules. This pattern recognition ability allows the software to generate buy and sell signals on the S&P 500 futures contracts to trade large swings on the S&P 500 stock index.

The automated trading platform, TOPS, which the Company has certain rights to pursuant to the License Agreement with Cignal, may conceptually be divided into two parts:

•Trading system software; and

•Automatic order execution software

These parts, when assembled with other components form a complete automated trading system, are capable of transforming real-time market data into executed trading orders.

The trading system controls the trading decisions while monitoring the data arriving from the real-time data feed and looking for the pre-defined patterns of movement in price, volume, and time. When a particular pattern is found, a trading signal is generated.

The automatic order execution software is responsible for processing the trading signals and turning them into online trading orders. The orders are sent over the Internet to trade execution engines, currently RediPlus and RealTick. The software can operate in simulation mode, where no orders are actually placed, in semi-automatic mode, where orders require a manual confirmation step, or in fully automatic mode, where orders are executed without any operator intervention.

Titan holds an exclusive use license and a third-party revenue interest in the TOPS Technology and plans to exploit this Technology and Titan’s wholly owned proprietary software in two ways:

by establishing a profitable trading operation; and

by marketing and licensing software to third parties.

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The Company has yet to establish a profitable trading or licensing support business and focused its attention on development of such a system during 2005. The target market for the business is institutional, high net worth individual investors and trading firms seeking a better than average return on investment and trading returns in their portfolios. The immediate market is primarily in Canada and the United States. Once Titan is generating revenue in these areas it is intended that the business be expanded to Europe and the Far East. Competitors include many other firms that offer trading systems. Titan believes that few of these competitors incorporate a multi-timeframe analysis the way Titan does and none would deliver signals generated by the same algorithm.

The Company is a reporting issuer in Canada and trades in Canada on the TSX Venture Exchange under the symbol “TTA”. The Company is subject to the reporting requirements of the Exchange Act, and is quoted on the Over-the-Counter Bulletin Board under the symbol “TITAF”.

We presently have $80,644 cash on hand. We need to raise additional financing by way of private placements in order to continue to develop and exploit our technology as planned.

Marketing and Sales Strategy

The Company’s business strategy is to market and license its stock market timing software as an automated trading platform, directly to trading firms, institutional investors, and active traders. Additionally, Titan expects to conduct trading operations on its own behalf, in joint ventures, or in partnership with other investors. Sales will be conducted by direct selling and referrals. The selling proposition is that the software and service improves trading results in two ways: (1) on the basis that the trading behaviour of the system is modelled after the trading behaviour of an experienced human trader who has shown profitable trading results over time; and (2) the software delivers more of such trading signals per unit time for a trader to review and act upon than would be possible if the trader were acting without the benefit of the software. During 2004 the Company began beta testing and trading in a third party account of a shareholder of Titan. In additi on, pursuant to a personal arrangement, Mr. Philip Carrozza, now Director of US Trading Operations, began trading an account for the same third party using the Technology. As the Company had no agreement in place with this third party to be compensated for these trading activities, the trading results are not reflected in the Company’s financial results. It is the Company’s intention to use this trading performance to attract paying clients.

The main focus for 2005 has been to market and license to other trading firms, and utilize for the Company’s trading operations, the Company’s stock market timing software and the TOPS Technology. The Company has also formed TTLP1 and TTLP2 as Limited Partnerships which will raise funds in order for it to use our automated trading programs to make trades with the raised funds.

Principal Products and Services

The main focus of our present business plan is to market and license, or utilize for our own trading operations, stock market timing software and the Technology. In order to effectively execute on our business plan, we are in the process of acquiring the TOPS Technology.

Our N1Expert stock market timing software relies upon the application of artificial intelligence (“AI”) to stock index trading, using a neural network and an expert system. The N1Expert has been used to trade a third party account since April 8, 2003 and has generated a profit of approximately US $130,000 on an initial capital requirement of approximately US $60,000. We are preparing deployment of this trading system on additional accounts as soon as final arrangements can be made.

The automated trading platform, for which we have certain rights to pursuant to license from Cignal, may be conceptually divided into two parts:

•

trading system software; and

•

automatic order execution software.

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These parts when assembled with other components form a complete automated trading system capable of transforming real-time market data into executed trading orders. The additional components are the third party applications of TradeStation and either RediPlus or RealTick. TradeStation is a third party analytical framework, much like Excel is a third party analytical framework, but TradeStation is designed for real-time traders. RediPlus and RealTick are trading programs that expose Active X Automation to programs such as TOPS to permit automated trade execution.

The trading system software controls the trading decisions by monitoring the data arriving from the real-time data feed and looking for predefined patterns of movement in price, volume and time. When a particular pattern is found, a trading signal is generated.

The automatic order execution software (TOPS) is responsible for processing the trading signals and turning them into online trading orders. The orders are sent over the Internet to trade execution engines. Currently the execution engines we use are RediPlus and RealTick. The software can operate in simulation mode, where no orders are actually placed, in semi-automatic mode, where orders require a manual confirmation step, or in fully automatic mode, where orders are executed without any operator intervention.

Version 1 of our automatic order execution software is now completed and is undergoing adjustments to its operating configuration. TOPS is currently the subject of a licensing arrangement with Cignal Technologies described below. N1Expert is wholly owned by Titan.

Intellectual Property Rights

Our ability to compete effectively depends in part on our ability to protect our core software technology. We rely on the following for protection of our technology: (1) trade secrets; (2) technical complexity; (3) common law copyright and trademark protection; (4) password protection; (5) software encryption schemes; and (6) the physical security of our source code.

Despite these measures and precautions, it may be possible for unauthorized third parties to reverse engineer aspects of our products. We have not attempted to obtain copyright registration for any of our software products, though we may do so in the future. There can be no assurance, however, that registration will be granted if applied for. Moreover, certain aspects of our software products are not subject to intellectual property protection in law, and to the extent that protection is available, its extent may differ from one jurisdiction to another.

We have not applied for patents to date under Canadian or United States law. Management believes there are patentable elements of the online trading analytics program and may decide to file for patentprotection depending on financial resources available. There can be no assurance that such filings, if any, will be successful in securing a patent.

Trading and Testing Activities

Beginning in 1994 and continuing through 1995, we were generally focused on the initial development of our software products and, therefore, did few trading or trade testing activities. From 1996 through 2002, we developed several products: (1) the VirtualTrader software – discretionary training and testing software; (2) the “Big-Board” trading method – a setup of indicators and trading screens for discretionary trading; (3) Titan Market Commentary – a web-based stock commentary subscription service; and (4) Titan Market Watch – a web-based stock charting presentation package. However, none of these products are currently offered for sale or license. Commencing in 2003, we began testing our market timing software and the automated trading software to which we obtained certain rights via our License Agreement. N1 Expert, which was originally developed in 1995, was revived and improved upon for use in Titan’s ov erall trading activities.

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The N1Expert was traded from April 2003 to November 2005, TOPS has been developed and traded in a test account originally funded by a shareholder of the Company.

The Company expended all of its efforts in 2004 towards developing the trading software to be ready for full use. On February 22, 2005, Titan announced the release of the first version of its automated trading platform known as TOPS which will greatly assist traders with trading activities. This TOPS trading platform has been used by Mr. Carrozza, at the Company’s US trading office. On December 15, 2004, the Company began trading in its own account and over a sixty day period had an annualized return of 116%. These results were obtained in the TOPS account. These results refer specifically to a test period of 60 days starting December 15, 2004.

QuickTick Charting is expected to offer very fast charts for any trading symbol within its supported exchanges as well as other capabilities designed with the grey-box trader in mind. Titan’s Director of US After testing is complete, Titan will explore various avenues in which the QuickTick Charting system may be made available for use by other trading firms or groups of individual traders for a monthly fee.

Status of New Products or Services

Titan is constantly refining its trading software to maintain its integrity and marketability. As a result, we will be continuing to incur development costs. Subject to available financing, we anticipate spending approximately $120,000 over the next year on our development efforts. No new products, however, other than those described in this annual report, have been announced to the public.

Competition

The financial services market is intensely competitive and characterized by the frequent entry of new competitors and introductions of new software programs, features and technical innovations. Numerous competitors are already established in this marketplace. There can be no assurance that we will be successful in our efforts, or, if successful, that we will have the resources to sustain any early growth or market penetration we may achieve.

Our principal competitive advantage lies in the unique multi-timeframe system logic comprising the core of the TOPS Technology. Although similar analysis can be done by a properly trained human trader, once automated, a computer can find a much larger number of signals and execute them more efficiently. Management is not aware of any competitors using the same or similar software logic. A second advantage is that we utilize low cost order execution platforms without high start-up or ongoing monthly operational costs.

There are large numbers of established financial trading and trading software companies. Many are larger than us, have longer operating histories, more established track records, greater name recognition, a larger installed base of customers, and greater financial, technical, sales, marketing and other resources. Moreover, if we achieve significant success in penetrating the financial software market, financially stronger companies may seek to enter this market and compete for market share.

The market for online trading of stocks and related services accessible to personal computer users is changing rapidly. The applications growth and emergence of the Internet as a low-cost source of worldwide financial market data, subscriptions, trade execution and research services, has alreadythreatened the existence of established data and information vendors, as well as full-service brokers. This creates technical, competitive and business trends, the outcomes of which are uncertain.

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Management and Employees

We do not have employees other than our directors, officers and consultants.

Our President and Chief Executive Officer, Dr. Kenneth W. Powell, devotes approximately 10% of his business time to our affairs. We also retain Michael Gossland, our Secretary and Chief Technology Officer, to provide software development services on a full-time month-to-month basis. He may cease providing such services to us without notice. Margo Kaufmann resigned from her position as Chief Financial Officer on June 21, 2005. Titan has not entered into any consulting or management agreements with Dr. Powell. Titan has entered into consulting agreements with each of Cignal and Mr. Gossland. David Terk was appointed the Chief Financial Officer of Titan USA January 6, 2006. Titan USA has entered into a consulting agreement with Tony Robinson to assist Titan USA with foreign exchange trading and risk management.

Government Regulation

To date, governmental regulations have not materially restricted the use or expansion of the Internet. However, the legal and regulatory environment that pertains to the Internet is uncertain is changing. Some of the new and existing laws which may affect our operations are in the areas of:

•Sales and other taxes;

•User privacy;

•Pricing controls;

•Characteristics and quality of products and services;

•Consumer protection;

•Cross-border commerce;

•Libel and defamation;

•Copyright, trademark and patent infringement; and

•Other claims based on the nature and content of Internet materials.

These new and existing laws may impact our ability to market our products and services offered on our website in accordance with our business plans.

We may have to qualify to do business in other jurisdictions. If we make sales of our products or services, we anticipate that sales and our customers will be in multiple states and foreign countries. As our customers may reside in such states and foreign countries, such jurisdictions may claim that we are required to qualify to do business in each such state and foreign country. Failure to qualify in a jurisdiction where required to do so could subject us to taxes and penalties.

If we are successful raising funds and begin trading operations with these funds, we may fall under the provisions of the Investment Company Act of 1940 and other United States and Canadian rules and regulations governing investment companies, investment advisors and broker-dealers. In such case, we may incur significantly higher reporting and regulatory compliance costs. We did not generate revenues in the fiscal year ended October 31, 2005, October 31, 2004 and October 31, 2003. Our records do not permit us to include a breakdown of total revenues by category of activity and geographic market for any of the fiscal years ended October 31, 2005, October 31, 2004 and October 31, 2003. Based upon the information available to us, we believe that most of our customers were located in the United States during the fiscal years ended October 31, 2005, October 31, 2004 and October 31, 2003.

C. Organizational Structure

We have four wholly owned subsidiaries, Titan Trading Corp., a corporation formed under the laws of the province of British Columbia, Canada, Titan Trading GP Inc., a corporation formed under the laws of Alberta and extra-provincially registered in British Columbia, the general partner for TTLP1 and TTLP2, limited partnerships recently formed under the laws of Alberta, Titan Trading USA, LLC, a Delaware LLC

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licensed to do business in New York and Florida and Titan Holdings USA, LLC, a Florida LLC. TTLP2 and Titan Holdings USA, LLC were formed subsequent to 2005 year-end.

D. Property, Plants and Equipment

We utilize about 650 square feet of office space in Edmonton, Alberta and Boca Raton, Florida. We have rent obligations of $2,400.00 per month. Our office expenses total approximately $5,000.00 per month. With the exception of computer equipment located in Edmonton, Alberta, Nanaimo, British Columbia, Boca Raton, Florida and the U.K., we currently do not have any property, plant or equipment located elsewhere.

ITEM 4A: UNRESOLVED STAFF COMMENTS

N/A

ITEM 5: OPERATING AND FINANCIAL REVIEW AND PROSPECTS

The following should be read in conjunction with our audited financial statements and related notes accompanying this annual report. They have been prepared in accordance with Canadian generally accepted accounting principles. Reference should be made to Note 14 to our audited financial statements which provide reconciliation to U.S. generally accepted accounting principles.

Critical Accounting Policies

The preparation of these consolidated financial statements and related disclosures in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of these financial statements, and revenue and expenses during the period reported. Estimates include allowance for doubtful accounts, valuation of the note receivable, estimated useful life of intangible assets, deferred costs and capital assets, provisions for contingent liabilities, measurement of stock-based compensation, valuation allowance for future tax assets, and revenue for other product revenue using the percentage of completion method, and reflect management’s best estimates. By their nature, these estimates are subject to uncertainty and the effect on the financial statements of changes in estimates in future periods could be significant. Estimates and assumptions are revi ewed periodically and the effects of revisions are reflected in the period that they are determined to be necessary.

The Company has identified the following critical accounting policies that affect the more significant estimates and judgments used in preparation of its consolidated financial statements.

Research and Development Costs

All research and development costs are expensed as incurred except those that qualify under the Financial Accounting Standards Board Statement (“SFAS”) No. 86, “Accounting for the Costs of Computer Software to be Sold, Leased or Otherwise Marketed”. Research and development costs incurred prior to the establishment of the technological feasibility of a particular software project are expensed as incurred. Software development costs, including costs associated with coding and testing of project related software, are capitalized subsequent to when the technological feasibility of a project is established.

Capitalized costs are amortized commencing in the period of the product’s commercial release. The determination of whether a project is technically feasible involves establishing, at a minimum, that the Company has a detailed, documented and consistent product and program design, including high risk development issues related to the project, with the necessary resources to complete the project. If a detailed program design is not used, technological feasibility will be established when a product design or working model of the software model, consistent with the product design, is complete and tested.

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Stock-based Compensation Plan

As permitted under SFAS No. 123, “Accounting for Stock-Based Compensation”, regarding the accounting for the grant of employee and director stock options, the Company has elected to use the intrinsic value method, following Accounting Principles Board (“APB”) No. 25, “Accounting for Stock Issued to Employees”, and related interpretations.

The Company has a stock-based compensation plan, which is further described in note 7 to the Company’s consolidated financial statements. The Company has elected to account for stock options by measuring compensation expense as the excess, if any, of the quoted market value of the stock at the date of grant over the exercise price. Any consideration paid by employees on exercise of stock options or purchase of stock is credited to share capital. If stock or stock options are repurchased from employees, the excess of the consideration paid over the carrying amount of the stock or stock option cancelled is charged to retained earnings.

Operating Results

Fiscal Year Ended October 31, 2005 Compared to Fiscal Year Ended October 31, 2004

We incurred a net loss of $1,343,289 for the twelve-month period ended October 31, 2005, as compared to a net loss of $457,589 for the comparative period of 2004. The increase in net loss in the 2005 fiscal year reflected an increase in research and development costs relating to further development of the software trading programs and increased professional fees relating to financial reporting requirements for multi-jurisdiction filings and accounting fees.

During the fiscal year 2005, the Company focused on the further development of the software trading programs, re-writing code in preparation for the commencement of beta testing and trading in a third party account with its trading software. Research and development increased by $469,642 over the prior year to $609,130, in comparison to $139,488 for the year ended October 31, 2004.

Professional fees increased relating to the formation of a limited partnership to raise funding for the trading program as well as additional costs relating to financial reporting requirements for the multi-jurisdiction filings as well as costs related to private placement financings. Professional fees for the year ending October 31, 2005 were $139,207, in comparison to $120,299 for the same period ending October 31, 2004.

Amortization expense for the year ended October 31, 2005 was $8,722, in comparison to $4,247 for the fiscal year 2004.

All general and administrative expenses increased due to the increased activity on the development of the trading software programs.

Ms. Margo Kaufmann resigned as Chief Financial Officer on June 21, 2005.

The Company has not experienced any large fluctuations from quarter to quarter during 2005.

Fiscal Year Ended October 31, 2004 Compared to Fiscal Year Ended October 31, 2003

We incurred a net loss of $457,589 for the twelve-month period ended October 31, 2004, as compared to a net loss of $162,137 for the comparative period of 2003. The increase in net loss in the 2004 fiscal year reflected an increase in research and development costs relating to further development of the software trading programs and increased professional fees relating to financial reporting requirements for multi-jurisdiction filings and accounting fees.

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Professional fees increased significantly with new financial reporting requirements for the multi-jurisdiction filings. The Company retained an accounting firm, rather than an in-house accountant to prepare the yearly financial statements in 2004. Professional fees for the year ending October 31, 2004 were $120,299, in comparison to $25,244 for he same period ending October 31, 2003.

Amortization expense for the year ended October 31, 2004 was $4,247, in comparison to $1,766 for 2003.

In addition, pursuant to a personal arrangement, Mr. Philip Carrozza, Director of US Trading Operations, began trading an account for the same third party using the Technology. As the Company had no agreement in place with this third party to be compensated for these trading activities, the trading results are not reflected in the financial results. It is the Company’s intention to use this trading performance to attract paying clients.

The Company has not experienced any large fluctuations from quarter to quarter during 2004.

B. Liquidity and Capital Resources

Since our incorporation, we have financed our operations almost exclusively through the sale of our common shares. We expect to finance operations through the sale of common shares in the foreseeable future. There is no assurance that we will be successful in arranging financing on acceptable terms or at all.

As at October 31, 2005, we had $109,191 cash and receivables of $72,172 as compared to no cash and receivables of $74,398 at our prior fiscal year end.

During 2005, the Company completed five private placements and three debt conversions of common shares, as described below:

Equity Placements 2005

In October 2005, the Company issued 1,509,026 units at $0.18 per unit, for total cash and debt settlement proceeds of $271,625. Each unit consisted of one common share and one-half of a common share purchase warrant. Of the net proceeds, $253, 517 and $18, 108 have been allocated to the common shares and warrants, respectively. Each of the 754,514 warrants entitled the holder to purchase one common share at $0.30 per share, until expiry on October 13, 2007.

In May 2005, the Company issued 1,167,000 units at $0.20 per unit, for aggregate proceeds of $233,400. Each unit consisted of one common share and one-half of a common share purchase warrant. Of the net proceeds, $207,726 and $25,674 have been allocated to the common shares and warrants, respectively. Each of the 583,000 warrants entitled the holder to purchase one common share at $0.27 per share, until expiry on May 19, 2006. A director of the Company subscribed for 200,000 units of the placement.

In March 2005, the Company issued 1,000,000 units for the aggregate proceeds of $120,000 (US$100,000). The 1,000,000 units issued had a subscription price of $0.12 (US$0.10) per unit. Each unit consisted of one common share and one-half of a purchase warrant. Of the net proceeds, $83,000 and $37,000 have been allocated to the common shares and warrants, respectively. Each warrant entitles the holder thereof to purchase one common share of the Company for a price of $0.18 (US$0.15) until one year after the closing date. The subscriber to the private placement was a private investment group from the United Sates.

In February 2005, the Company issued 1,453,333 units at $0.15 per unit, for aggregate proceeds of $218,000. Each unit consisted of one common share and one common share purchase warrant. Of the net proceeds, $171,494 and $46,506 have been allocated to the common shares and warrants respectively. Each warrant entitles the holder to purchase one common share at $0.20 per share in year one and $0.25 per share in year two, until expiry on February 14, 2007.

In November 2004, the Company issued 1,363,667 units at $0.15 per unit, for aggregate proceeds of $204,550. Each unit consists of one common share and one common share purchase warrant, Of the net proceeds, $177,277 and $27,273 have been allocated to the common shares and warrants respectively. Each

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warrant entitles the holder to purchase one common share at $0.20 per share in year one and $0.25 in year two, until expiry on November 30, 2006.

In October 2005, 100,000 units at $0.15 per unit (paid-in amounts) were returned to treasury, 100,000 warrants at $0.20 per share were cancelled and 759,999 warrants with an exercise price of $0.20 expired. The value of the warrants that were cancelled and expired of $21,440 has been transferred to contribute surplus. These shares and warrants were originally issued on February 2005. The Company used the Black-Scholes option pricing model to calculate fair value of the warrants issued.

Shares for debt conversion 2005

In August 2005, the Company completed a shares for debt transaction in the amount of $262,500, where 1,050,000 common shares in the capital of the Company were issued at a deemed price of $0.25 to a director of the Company for the cancellation of debt with respect to the purchase of technology software from Cignal Technologies, LLC.

In January 2005, the Company issued 1,748,408 common shares at a deemed value of $0.12 per share in exchange for the settlement of $209,809 of loans and advances. Of the common shares issued, 742,533 common shares were issued to settle $89,104 of loans and advances from an officer and director of the Company.

The issue costs relating to the 2005 share placements totaled $77,652.

Equity placements 2004

During 2004, the Company completed three placements of common shares and immediately detachable purchase warrants, as described below:

On March 16, 2004, the Company issued 1,240,000 common shares and 1,240,000 detachable warrants for proceeds of $124,000. Of the net proceeds, $64, 480 and $59,520 have been allocated to common shares and warrants, respectively. The warrants, which have an exercise price of $0.12, are immediately exercisable and expire on March 16, 2006.

On August 30, 2004, the Company issued 1,212,000 common shares and 1,212,000 detachable warrants for proceeds of $121,000. of the net proceeds, $82,216 and $38,784 have been allocated to common shares and warrants, respectively. The warrants, which have an exercise price of $0.12, are immediately exercisable and expire on March 16, 2006.

On October 22, 2004, the Company issued 759,999 common shares and 759,999 detachable warrants for proceeds of $114,000. Of the net proceeds, $95,760 and $18,240 have been allocated to common shares and warrants, respectively. The warrants, which have an exercise price of $0.20, are immediately exercisable and expire on October 2, 2005.

The issue costs relating to these placements totaled $9,800.

In order to fund operations for the next 12-month period, sufficient funds will need to be raised through private placements. Upon completion of our business plan we expect to raise additional funds to support the current and future operations over a longer period. Our continuation as a going concern is dependent upon our ability to obtain equity capital and financing for working capital requirements. We have incurred significant operating losses to date and we cannot predict if ever we will earn operating income. As a result, there can be no assurance that we will be successful in raising additional funds or that additional financing, if any, can be obtained on terms acceptable to us. Such financing, to the extent that it is available may result in substantial dilution to our shareholders. To the extent such financing is not available, we may not be able to, or may bedelayed in, continuing to commercialize our software products and services, and we may have to curtail our operations. In the event that future financings are not available at terms acceptable to us, the Company believes it has sufficient funds to continue for the next twelve months with a significant reduction in operations.

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C. Research and Development, Patents and Licenses, etc.

For a description of our research and development activities, please see “Item 4.B. – Business Overview”.

D. Trend Information

With the exception of the information disclosed in “Item 3.D. – Risk Factors”, we do not know of any trends or uncertainties that are likely to have a material effect on the Company or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

E. Off-balance Sheet Arrangements

We do not have any off-balance sheet arrangements that require disclosure under this Item 5.

F. Tabular Disclosure of Contractual Obligations

We currently have no contractual obligations that require disclosure under this Item 5.

ITEM 6: DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. Directors and Senior Management

As of October 31, 2005, our directors were as follows:


Name of Director	Age
Dr. Kenneth Powell	61
Michael Gossland	51
Philip S. Carrozza	44
Robert Roddick	61
Richard Sharples	68

As of October 31, 2005, our executive officers were as follows:


Executive Officers	Age	Office
Dr. Kenneth W. Powell	61	President and Chief Executive Officer
Michael Gossland	51	Secretary and Chief Technology Officer
David Terk	33	Chief Financial Officer of Titan USA

In January 2006, David Terk was appointed Chief Financial Officer of Titan USA.

The following describes the business experience of our directors and executive officers, including other directorships held in reporting companies:

Kenneth W. Powell, DDS, B.Sc., is a graduate of the University of Alberta, holding Bachelor of Science (1966) and Doctor of Dentistry (1970) degrees. Since 1970, he has been a self-employed dentist with a dental practice in the Edmonton, Alberta area. Since December 2002, Dr. Powell has acted as President, Chief Executive Officer and a director of Titan, as well as a director and the Chief Financial Officer of Firestone Ventures Inc., a junior mining exploration company that is reporting in British Columbia and Alberta and trades on the TSX Venture Exchange.

Michael Gossland, M.Sc., P.Eng., is our Chief Technology Officer, Secretary and a director. Mr. Gossland has held such positions since 1994. In 1976, he was awarded the Harrington Prize for academic excellence in physics, and he received his Master of Science degree from the University of Saskatchewan in 1978. In

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1989, he obtained his designation as a Professional Engineer - Electrical Branch (Association of Professional Engineers of Ontario). From 1986 to 1991, Mr. Gossland was Software Project Manager for Sciex, a division of MDS Health Group Inc. of Toronto, Ontario. In 2004, he joined APEG of BC and transferred his Professional Engineering License from Ontario to British Columbia.

Philip S. Carrozza II is our Director of U.S. Trading Operations and the President of Cignal, from which in June 2003 we have obtained certain rights with respect to certain automated trading platform technology. Mr. Carrozza acquired his professional broker’s license in 1987. From 1993 until 1999 when he founded Cignal, he worked with several major trading forms in New York and the Bahamas. Mr. Carrozza is also an attorney and a member of the Massachusetts State Bar.

Robert F. Roddick, Q.C.has been a partner with Roddick, Scott & Johnson, Barristers and Solicitors, for over five years.

Richard J. Sharples,former partner and manager of a large furniture store in Terrace, British Columbia, and President of Hetake Holdings Ltd. for over five years.

David Terk, Mr. Terk holds a Certified Public Accountant’s license in the State of New York, and a Bachelor of Science in Accounting from the University of Maryland. After three years in the field of public accounting, Mr. Terk entered the equity trading industry in 1997. Mr. Terk formed the private equity trading firm Valkyrie Management Corporation, where he actively traded equities. In 1998, Mr. Terk helped create Livetrade.com/Alex Moore Inc. Livetrade became one of the first companies to bring direct access Level 2 trading to the Internet. It was there Mr. Terk earned his series 27 license and served as the company’s Financial Operations Principal.

There are no arrangements or understandings between any of our directors or executive officers, pursuant to which they were selected to be a director or executive officer, nor are there any family relationships among any of our directors or officers.

B. Compensation

We are required, under applicable securities legislation in Canada, to disclose to our shareholders details of compensation paid to individual(s) who were acting as, or were acting in a capacity similar to, a chief executive officer or chief financial officer and the three most highly compensated executive officers whose total salary and bonus exceeded $150,000 per annum (the “Named Executive Officers”). The following fairly reflects the annual compensation for services in all capacities to the Company and its subsidiaries in respect of the Company’s Named Executive Officer in our fiscal year ended October 31, 2005.

Dr. Kenneth Powell – President, Chief Executive Officer, Acting Chief Financial Officer – $60,000

We are required, under applicable securities legislation in Canada, to disclose to our shareholders details of compensation paid to our directors. The following fairly reflects all material information regarding compensation paid to our directors in our fiscal year ended October 31, 2005.

In the most recently completed financial year, the Company paid no cash compensation (including salaries, director’s fees, commissions, bonuses paid for services rendered, bonuses paid for services rendered in a previous year and any compensation other than bonuses earned by the directors for services rendered) to the directors for services rendered in their capacity as directors other than reimbursement of reasonable expenses.

During the fiscal year ended October 31, 2005, the Company paid consulting fees to the following directors for services provided to the Company in the normal course of operations of the business:

Mr. Michael Gossland – $120,000

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Mr. Philip Carrozza – $120,000

On December 22, 2003, options with an exercise price of $0.10 and an expiry date of December 22, 2008 were granted to the following directors:

Mr. Michael Gossland – 500,000 options

Mr. Philip Carrozza – 500,000 options

Dr. Kenneth Powell – 400,000 options

On February 16, 2005, options with an exercise price of $0.155 and an expiry date of February 16, 2010 were granted to the following directors and/or officers:

Mr. Robert Roddick – 50,000 options

Mr. Michael Gossland – 10,000 options

Ms. Margo Kaufmann – 15,000 options⁽¹⁾

On March 1, 2005, options with an exercise price of $0.25 and an expiry date of March 1, 2010 were granted to the following directors and/or officers:

Mr. Michael Gossland – 120,000 options

Mr. Phillip Carrozza – 120,000 options

Mr. Kenneth Powell – 120,000 options

Ms. Margo Kaufmann – 185,000 options⁽¹⁾

Mr. Robert Roddick – 25,000 options

On July 5, 2005, options with an exercise price of $0.135 and an expiry date of July 5, 2010 were granted to the following director:

Mr. Richard Sharples – 50,000 options

(1)

Options granted to Ms. Margo Kaufmann expired on March 16, 2006.

C. Board Practices

Dr. Powell, Mr. Gossland and Mr. Carrozza have acted as our directors since December 23, 2002, September 15, 1995, and June 6, 2003, respectively. All such individuals were re-elected as directors atour annual general meeting of shareholders held on April 22, 2005. Mr. Roddick was appointed a director on November 29, 2004, and Mr. Sharples was elected as a director at our Annual and Special Meeting of Shareholders held on April 22, 2005.

The directors hold office until the next annual general meeting of the shareholders, at which time they may stand for re-election, or their earlier resignation or removal. We are required to hold an annual general meeting once in every calendar year and not longer than fifteen months from the last annual general meeting.

No directors or officers have service contracts with us, nor are they entitled to any termination benefits, except for the consulting agreements entered into in February 2006, with each of Cignal and Michael Gossland, whereby they will provide consulting services to us until October 31, 2008.

As of April 26, 2006, our audit committee was comprised of Mr. Gossland, Mr. Roddick and Mr. Sharples. Mr. Roddick was appointed a Director and member of the Audit Committee on November 29, 2004. Mr. Sharples was appointed a Director and member of the Audit Committee on April 22, 2005.

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The audit committee is responsible for, among other things, monitoring the integrity and adequacy of our financial information, and for recommending to our board of directors their selection of independent auditors for us.

The Audit Committee of the Company currently consists of Messrs. Gossland, Sharples, and Roddick. Mr. Roddick and Mr. Sharples are independent members of the audit committee, and all members are financially literate. Mr. Roddick has been designated a financial expert. The charter of the Company’s audit committee is as follows:

Mandate

The primary function of the audit committee (the “Committee”) is to assist the board of directors of the Company (the “Titan Directors”) in fulfilling its financial oversight responsibilities by reviewing the financial reports and other financial information provided by the Company to regulatory authorities and shareholders, the Company’s systems of internal controls regarding finance and accounting, and the Company’s auditing, accounting and financial reporting processes. Consistent with this function, the Committee will encourage continuous improvement of, and should foster adherence to, the Company’s policies, procedures and practices at all levels. The Committee’s primary duties and responsibilities are to:

Serve as an independent and objective party to monitor the Company’s financial reporting and internal control system and review the Company’s financial statements.

Review and appraise the performance of the Company’s external auditors.

Provide an open avenue of communication among the Company’s auditors, financial and senior management and the Titan Directors.

II.

Composition

The Committee shall be comprised of three directors as determined by the Titan Directors, the majority of whom shall be independent directors, pursuant to the policies of the TSX Venture Exchange.

At least one member of the Committee shall have accounting or related financial management expertise. It is the goal of the Company that all members of the Committee are financially literate. All members of the Committee that are not financially literate will work towards becoming financially literate to obtain a working familiarity with basic finance and accounting practices. For the purposes of the Company’s Charter, the definition of “financially literate” is the ability to read and understand a set of financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that can presumably be expected to be raised by the Company’s financial statements.

The members of the Committee shall be elected by the Titan Directors at its first meeting following the annual shareholders’ meeting. Unless a Chair is elected by the Titan Directors, the members of the Committee may designate a Chair by a majority vote of the full Committee membership.

III.

Meetings

The Committee shall meet a least twice annually, or more frequently as circumstances dictate. As part of its job to foster open communication, the Committee will meet at least annually with management and the external auditors in separate sessions.

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The minutes of the Committee meetings shall accurately record the decisions reached and shall be distributed to the Audit Committee members with copies to the Titan Directors, the Chief Financial Officer or such other officer acting in the capacity and the external auditor.

IV.

Responsibilities and Duties

To fulfill its responsibilities and duties, the Committee shall:

Documents/Reports Review

Review and update the Charter annually.

Review the Company’s financial statements, MD&A and any annual and interim earnings, press releases before the Company publicly discloses this information and any reports or other financial information (including quarterly financial statements), which are submitted to any governmental body, or to the public, including any certification, report, opinion, or review rendered by the external auditors.

External Auditors

Require the external auditors to report directly to the Committee.

Review annually the performance of the external auditors who shall be ultimately accountable to the Titan Directors and the Committee as representatives of the shareholders of the Company.

Obtain annually, a formal written statement of external auditors setting forth all relationships between the external auditors and the Company and confirming their independence from the Company.

Review and discuss with the external auditors any disclosed relationships or services that may impact the objectivity and independence of the external auditors.

Take, or recommend that the Titan Directors take, appropriate action to oversee the independence of the external auditors.

Recommend to the Titan Directors the selection and, where applicable, the replacement of the external auditors nominated annually for shareholder approval and the compensation of the external auditors.

Review with management and the external auditors the terms of the external auditors’ engagement letter.

10.

At each meeting, consult with the external auditors, without the presence of management, about the quality of the Company’s accounting principles, internal controls and the completeness and accuracy of the Company’s financial statements.

11.

Review and approve the Company's hiring policies regarding partners, employees and former partners and employees of the present and former external auditors of the Company.

12.

Review with management and the external auditors the audit plan for the year-end financial statements and intended template for such statements.

13.

Review and pre-approve all audit and audit-related services and the fees and other compensation related thereto, and any non-audit services, provided by the Company’s

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external auditors. The pre-approval requirement is waived with respect to the provision of non-audit services if:

(i)

the aggregate amount of all such non-audit services provided to the Company constitutes not more than five percent of the total amount of revenues paid by the Company to its external auditors during the fiscal year in which the non-audit services are provided;

(ii)

such services were not recognized by the Company at the time of the engagement to be non-audit services; and

(iii)

such services are promptly brought to the attention of the Committee by the Company and approved prior to the completion of the audit by the Committee or by one or more members of the Committee who are members of Titan Directors to whom authority to grant such approvals has been delegated by the Committee.

Provided the pre-approval of the non-audit services is presented to the Committee's first scheduled meeting following such approval, such authority may be delegated by the Committee to one or more independent members of the Committee.

Financial Reporting Processes

14.

In consultation with the external auditors, review with management the integrity of the Company's financial reporting process, both internal and external.

15.

Consider the external auditors’ judgments about the quality and appropriateness of the Company’s accounting principles as applied in its financial reporting.

16.

Consider and approve, if appropriate, changes to the Company’s auditing and accounting principles and practices as suggested by the external auditors and management.

17.

Review significant judgments made by management in the preparation of the financial statements and the view of the external auditors as to appropriateness of such judgments.

18.

Following completion of the annual audit, review separately with management and the external auditors any significant difficulties encountered during the course of the audit, including any restrictions on the scope of work or access to required information.

19.

Review any significant disagreement among management and the external auditors regarding financial reporting.

20.

Review with the external auditors and management the extent to which changes and improvements in financial or accounting practices have been implemented.

21.

Review certification process.

22.

Establish procedures for:

(i)

the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls, or auditing matters; and

(ii)

the confidential, anonymous submission by employees of the Company of concerns regarding questionable accounting or auditing matters.

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Other

23.

Review any related-party transactions.

Authority

The Committee may:

(a)

engage independent outside counsel and other advisors as it determines necessary to carry out its duties;

(b)

set and pay the compensation for any advisors employed by the Committee; and

(c)

communicate directly with the internal and external auditors.

The Committee shall have unrestricted access to the Company’s personnel and documents and will be provided with the resources necessary to carry out its responsibilities.

We have not appointed a remuneration committee.

D. Employees

We do not have any employees, as all services are contracted to consultants. We have 5 consultants in Canada, 5 consultants in the United States and 1 consultant in the United Kingdom.

E. Share Ownership

As of April 26, 2006, we had 28,237,629 common shares issued and outstanding. As of April 26, 2006, our directors and officers beneficially owned the following number of our common shares:


Name	Number of Common Shares Beneficially Owned	Percentage of Outstanding Common Shares
Kenneth Powell	8,782,557⁽¹⁾	28.89%
Philip S. Carrozza	2,170,000⁽²⁾	7.52%
Michael Gossland	1,565,093⁽³⁾	5.35%
Robert F. Roddick	161,667⁽⁴⁾	0.57%
David Terk	150,000⁽⁵⁾	0.53%
Richard Sharples	50,000⁽⁶⁾	0.18%
All officers and directors as a group	12,879,317	43.04%

Notes:

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common shares held in escrow by TTN Escrow Capital Corp.; (F)117,000 common shares that are held by Cameron Powell, the son of Dr. Powell; (G) 10,000 common shares underlying warrants that are exercisable any time after June 15, 2005 at an exercise price of $0.20 per common share until February 14, 2006 and then at $0.25 until February 14, 2007, held by Cameron Powell, the son of Dr. Powell; (H) 117,000 common shares that are held by Carson Powell, the son of Dr. Powell; (I) 10,000 common shares underlying warrants that are exercisable any time after June 15, 2005 at an exercise price of $0.20 per common share until February 14, 2006 and then at $0.25 until February 14, 2007, held by Carson Powell, the son of Dr. Powell; (J) 1,696,600 common shares that are held by Karen Powell, the wife of Dr. Powell; (K) 200,000 common shares underlying warrants that are exercisable any time after June 15, 2005 at an exercise price of $0.20 per common share until February 14, 2006 and then at $0.25 until February 14, 2007, held by Karen Powell, the wife of Dr. Powell; (L) 100,000 common shares underlying warrants that are immediately exercisable at an exercise price of $0.27 per common share and expire on May 19, 2006; (M) 468,958 common shares underlying warrants that are immediately exercisable at an exercise price of $0.30 per common share and expire on October 13, 2007; and (N) 150,000 common shares underlying warrants that are immediately exercisable at an exercise price of $0.30 per common share until February 1, 2007 and then at $0.40 until February 1, 2008.

(2)

(3)

Includes (A) 500,000 common shares issuable pursuant to stock options granted under our stock option plan that are vested and fully exercisable at an exercise price of $0.10 per share and expire December 22, 2008; (B) 410,593 common shares issuable pursuant to stock options granted under the stock option plan that vest over an 18-month period commencing February 16, 2005 and are exercisable at an exercise price of $0.155 per share and expire February 16, 2010; (C) 120,000 common shares issuable pursuant to stock options granted under the stock option plan that vest over an 18-month period commencing March 1, 2005 and are exercisable at an exercise price of $0.25 per share and expire March 1, 2010; (D) 17,000 common shares held in a registered education savings plan for the benefit of Mr. Gossland’s children where Mr. Gossland has a power of attorney; and (E) 517,500 common shares held by Sybille Gossland, the wife of Mr. Goss land.

(4)

Includes (A) 50,000 common shares issuable pursuant to stock options granted under our stock option plan that vest over an 18-month period commencing February 16, 2005 and are exercisable at an exercise price of $0.155 per share and expire February 16, 2010; and (B) 25,000 common shares issuable pursuant to stock options granted under the stock option plan that vest over an 18-month period commencing March 1, 2005 and are exercisable at an exercise price of $0.25 per share until March 1, 2010; and (C) 66,667 common shares underlying warrants that are exercisable any time after June 15, 2005 at an exercise price of $0.20 per common share until February 14, 2006 and then at $0.25 until February 14, 2007.

(5)

Includes 50,000 common shares underlying warrants that are exercisable any time after February 1, 2006 at an exercise price of $0.30 per common share until February 1, 2007 and then at $0.40 until February 1, 2008

(6)

Includes 50,000 common shares issuable pursuant to stock options granted under our stock option plan that vest over an 18-month period commencing July 5, 2005 and are exercisable at an exercise price of $0.135 per share and expire July 5, 2010.

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ITEM 7: MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

A. Major Shareholders

As of April 26, 2006, we had 28,237,629 common shares issued and outstanding. As of April 26, 2006, the following shareholders beneficially owned greater than five percent (5%) of our common shares:


Name	Number of Common Shares Beneficially Owned	Percentage of Outstanding Common Shares
Kenneth Powell	8,782,557⁽¹⁾	28.89%
Phillip Carrozza	2,170,000⁽²⁾	7.52%
Karen Powell	1,896,600⁽³⁾	6.67%
Michael Gossland	1,565,093⁽⁴⁾	5.35%

Notes:

(1) Includes (A) 400,000 common shares issuable pursuant to stock options granted under our stock option plan that are vested and fully exercisable at an exercise price of $0.10 per share and expire December 22, 2008; (B) 120,000 common shares issuable pursuant to stock options granted under the stock option plan that vest over an 18-month period commencing March 1, 2005 and are exercisable at an exercise price of $0.25 per share until March 1, 2010; (C) 400,000 common shares underlying warrants that are exercisable any time after March 31, 2005 at an exercise price of $0.20 per common share until November 30, 2005 and then at $0.25 until November 30, 2006; (D) 300,000 common shares underlying warrants that are exercisable any time after June 15, 2005 at an exercise price of $0.20 per common share until February 14, 2006 and then at $0.25 until February 14, 2007; (E) 1,200,000 common shares held in escrow by TTN Escrow Capital Corp.; (F) 117,000 common shares that are held by Cameron Powell, the son of Dr. Powell; (G) 10,000 common shares underlying warrants that are exercisable any time after June 15, 2005 at an exercise price of $0.20 per common share until February 14, 2006 and then at $0.25 until February 14, 2007, held by Cameron Powell, the son of Dr. Powell; (H) 117,000 common shares that are held by Carson Powell, the son of Dr. Powell; (I) 10,000 common shares underlying warrants that are exercisable any time after June 15, 2005 at an exercise price of $0.20 per common share until February 14, 2006 and then at $0.25 until February 14, 2007, held by Carson Powell, the son of Dr. Powell; (J) 1,696,600 common shares that are held by Karen Powell, the wife of Dr. Powell; (K) 200,000 common shares underlying warrants that are exercisable any time after June 15, 2005 at an exercise price of $0.20 per common share until February 14, 2006 and then at $0.25 until Feb ruary 14, 2007, held by Karen Powell, the wife of Dr. Powell; (L) 100,000 common shares underlying warrants that are immediately exercisable at an exercise price of $0.27 per common share and expire on May 19, 2006; (M) 468,958 common shares underlying warrants that are immediately exercisable at an exercise price of $0.30 per common share and expire on October 13, 2007; and (N) 150,000 common shares underlying warrants that are immediately exercisable at an exercise price of $0.30 per common share until February 1, 2007 and then at $0.40 until February 1, 2008.

(2)

(3)

Includes 200,000 common shares underlying warrants that are exercisable any time after June 15, 2005 at an exercise price of $0.20 per common share until February 14, 2006 and then at $0.25 until February 14, 2007.

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(4)

We are authorized to issue an unlimited number of common shares and an unlimited number of preferred shares without par value.

Each of our issued common shares entitles the holder to one vote in a general meeting of shareholders. There are no disproportionate or weighted voting privileges. Our significant shareholders do not have different voting privileges as compared to our other shareholders.

The preferred shares may from time to time be issued in one or more series. The directors may fix from time to time before such issue, the number of preferred shares which is to comprise each series and the designation, rights, privileges, restrictions and conditions attaching to each series of preferred shares including, any voting rights, the rate or amount of dividends or the method of calculating dividends, the dates of payment thereof, the terms and conditions of redemption, purchase and conversion if any, and any sinking fund or other provisions. The preferred shares are non-voting.

Of our 69 registered shareholders as at April 26, 2006, 51 were Canadian residents representing 24,008,462 common shares or 85% of our 28,237,629 issued and outstanding common shares as of that date.

We are not controlled directly or indirectly by any other corporation or any other foreign government or by any other natural or legal person, severally or jointly.

There are no arrangements known to us, the operation of which at a subsequent date, may result in a change in our control.

B. Related Party Transactions

The related party transactions are in the normal course of operations and are recorded at the exchange amount.

Pursuant to an agreement dated June 6, 2003 (the “License Agreement”), Cignal, which is owned and operated by a director and officer of the Company, Mr. Philip Carrozza, agreed to provide an exclusive 99-year license to the Company for the TOPS Technology and a 25% interest in all net profits third parties (subject to certain licenses being exempt) realize from the use of the TOPS Technology. In consideration therefore, the Company agreed to fund all future development costs associated with the TOPS Technology and development of related products. The Company is required to fund successive six month budgets (each budget not to exceed $100,000) relating to proposed developments of the Technology and related products, failing which Cignal may terminate the license. Pursuant to a related agreement among Dr. Ken Powell, Mr. Thomas Kreilein and Mr. Phillip Carrozza dated June 3, 2003, Dr. Powell and Mr. Kreilein agreed to transfer certain common shares and grant an option with respect to additional common shares of the Company to Mr. Carrozza as an inducement to enter into this License Agreement. This agreement purported to provide Mr. Carrozza with the right to terminate the License Agreement if certain trading price benchmarks of the common shares were not met. None of these benchmarks were met but the License Agreement was not terminated within the required time periods.

On November 4, 2004, the Company entered into a transaction to purchase the TOPS Technology from Cignal and paid Mr. Carrozza an amount of $62,335. However, the transaction was not completed and the

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paid amount was classified as a receivable. If the transaction is not restructured or is otherwise not completed in the near-term, the amount will be repaid to the Company.

In February 2006, we entered into a Software Transfer Agreement with Phillip Carrozza, a director of Titan, and Cignal, a company wholly-owned by Mr. Carrozza, with respect to the transfer of certain trading models, suitable for stocks or futures and software-based formulas that implement the trading models and their accompanying indicators. Pursuant to the Software Transfer Agreement, we will issue to Cignal and Mr. Carrozza a total of 3,000,000 common shares, 1,000,000 of which common shares will be issued on closing and the remaining 2,000,000 common shares to be issued in 1,000,000 share increments in each of 2007 and 2008 and 1,000,000 performance warrants. The Software Transfer Agreement provides Cignal with a right of first refusal, in the event that we become insolvent, to match a proposed sale of the software to a third party.

A total of 1,000,000 of the performance warrants issued to Cignal, Mr. Carrozza and Mr. Gossland are exercisable at a price of $0.50 per share for a six month period commencing November 1, 2007 and the remaining 1,000,000 performance warrants are exercisable at a price of $1.00 per share for a six month period commencing November 1, 2008. The release of these warrants is conditional upon the 20 day average stock price on these dates as reported by the TSX Venture Exchange being no less than $1.00 and $2.00 per share respectively.

The newly completed software transfer agreements are subject to shareholder and regulatory approval of the transfers of the software and the issuance of securities, and upon such approval the Licensing Agreement will terminate and give us full ownership of the software developed to date as well as into the future. All of the securities issued in connection with the software transfer agreements are subject to a four month hold period.

The Software Transfer Agreements will be tabled for approval by our shareholders at the annual and special meeting scheduled for May 5, 2006.

Management fees and research and development costs of $715,145 (2004 - $200,250) were paid to officers and directors of the Company during 2005.

As at October 31, 2005, $20,559 was due an officer and director; such amount was unsecured and non-interest bearing. Subsequent to fiscal year end 2005, this amount was repaid by the Company.

Our directors or officers must disclose in writing to us the nature and extent of any interest they have in a material contract, or proposed material contract, with us. Such disclosure must be made immediately after the director or officer becomes aware of the contract or proposed contract. A director who is required to disclose an interest in a material contract or proposed material contract may not vote on any resolution to approve the contract except in very limited circumstances.

C. Interests of Experts and Counsel

Not applicable.

ITEM 8: FINANCIAL INFORMATION

A. Consolidated Statements and Other Financial Information

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Our financial statements are set forth under “Item 17. – Financial Statements”.

Legal Proceedings

To the best of our knowledge, there are no material legal or arbitration proceedings which may have or have had in the recent past significant effects on our financial position, which includes any governmental proceedings pending or known to be contemplated.

We have never paid any dividends, and any earnings in the foreseeable future will be re-invested in our development. Under the Business Corporations Act (Alberta), the directors of a Company who vote for, or consent to, a resolution authorizing the payment of a dividend if a Company is insolvent or the payment renders the Company insolvent are jointly and severally liable to the Company to restore to the Company any loss or damage suffered by the Company as a result.

B. Significant Changes

There have been no significant changes since the date of the audited financial statements included herein other than those disclosed herein. See “Item 5.B. – Liquidity and Capital Resources”.

ITEM 9: THE OFFER AND LISTING

A. Offer and Listing Details

Our common shares trade on the TSX Venture Exchange under symbol “TTA” and on the Over-The-Counter Bulletin Board under symbol “TITAF”. Our shares have traded on the TSX Venture Exchange,and on its predecessors, the Canadian Venture Exchange, and the Vancouver Stock Exchange. The following table sets forth the high and low closing prices in Canadian funds of our common shares traded on these Canadian exchanges:


Period	High	Low

Fiscal Year

November 1, 2000 to October 31, 2001	$1.20	$0.20
November 1, 2001 to October 31, 2002	$0.32	$0.03
November 1, 2002 to October 31, 2003	$0.22	$0.02
November 1, 2003 to October 31, 2004	$0.26	$0.08
November 1, 2004 to October 31, 2005	$0.44	$0.085

Fiscal Quarter

November 2003 to January 2004	$0.15	$0.08
February 2004 to April 2004	$0.185	$0.11
May 2004 to July 2004	$0.26	$0.15
August 2004 to October 2004	$0.18	$0.105
November 2004 to January 2005	$0.145	$0.085
February 2005 to April 2005	$0.44	$0.145
May 2005 to July 2005	$0.25	$0.085
August 2005 to October 2005	$0.22	$0.13
November 2005 to January 2006	$0.21	$0.14
February 2006 to April 26, 2006	$0.37	$0.11

Month

October 2005	$0.22	$0.13

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November 2005	$0.21	$0.16
December 2005	$0.18	$0.15
January 2006	$0.175	$0.14
February 2006	$0.185	$0.11
March 2006	$0.22	$0.15
April 1 – 26, 2006	$0.37	$0.24

Our common shares have been quoted for trading on the Over-The-Counter Bulletin Board since January 12, 2000. The following table sets forth the high and low closing prices in United States funds of our common shares traded on the Over-The-Counter Bulletin Board:


Period	High	Low

Fiscal Year

November 1, 2000 to October 31, 2001	$0.875	$0.13
November 1, 2001 to October 31, 2002	$0.25	$0.02
November 1, 2002 to October 31, 2003	$0.15	$0.01
November 1, 2003 to October 31, 2004	$0.15	$0.06
November 1, 2004 to October 31, 2005	$0.38	$0.06

Fiscal Quarter

November 2003 to January 2004	$0.15	$0.06
February 2004 to April 2004	$0.14	$0.06
May 2004 to July 2004	$0.15	$0.08
August 2004 to October 2004	$0.15	$0.13
November 2004 to January 2005	$0.08	$0.06
February 2005 to April 2005	$0.48	$0.06
May 2005 to July 2005	$0.22	$0.06
August 2005 to October 2005	$0.19	$0.092
November 2005 to January 2006	$0.19	$0.105
February 2006 to April 26, 2006	$0.335	$0.13

Month	High	Low
October 2005	$0.19	$0.095
November 2005	$0.175	$0.15
December 2005	$0.19	$0.124
January 2006	$0.153	$0.105
February 2006	$0.167	$0.15
March 2006	$0.20	$0.13
April 1 – 26, 2006	$0.335	$0.209

B. Plan of Distribution

Not applicable.

C. Markets

D. Selling Shareholders

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Not applicable.

E. Dilution

Not applicable.

F. Expenses of the Issue

Not applicable.

ITEM 10: ADDITIONAL INFORMATION

A. Share Capital

Not applicable.

B. Articles of Incorporation

We were duly incorporated and validly exist as a corporation under the Business Corporations Act (Alberta). Pursuant to the provisions of the Business Corporations Act (Alberta), a Company may conduct any business that it is not restricted by the terms of its articles or bylaws from conducting. Our articles and bylaws contain no such restrictions.

Our directors are required to disclose to the board of directors the nature and extent of their interest in any proposed transaction or contract and must thereafter refrain from voting in respect thereof. An interested director may be counted in the quorum when a determination as to such director’s remuneration is being considered but may not vote in respect thereof. The directors have an unlimited power to borrow money, issue debt obligations and mortgage or charge our assets provided such actions are conducted bona fide and in our best interests. There are no mandatory retirement ages for directors or any required shareholdings.

All holders of common shares are entitled to receive dividends out of assets legally available therefore at such times and in such amounts as the board of directors may from time to time determine. All holders of common shares will share equally on a per share basis in any dividend declared by the board of directors. The dividend entitlement time limit will be fixed by the board of directors at the time any such dividend is declared. Each outstanding common share is entitled to one vote on all matters submitted to a vote of our shareholders in general meeting. There are no cumulative voting rights attached to any of our shares and, accordingly, the holders of more than half of the shares represented at a general meeting can elect all of the directors to be elected in a general meeting. All directors stand for re-election annually. Upon any liquidation, dissolution or winding up, all common shareholders are entitled to shar e ratably in all net assets available for distribution after payment to creditors. The common shares are not convertible or redeemable and have no preemptive, subscription or conversion rights. In the event of a merger or consolidation, all common shareholders will be entitled to receive the same per share consideration.

The rights of shareholders may only be altered by the shareholders passing a special resolution at a general meeting. A special resolution may only be passed when it has been circulated to all shareholders by way of an information circular and then must be passed by two-thirds of the votes cast at the general meeting.

The board of directors may call annual and extraordinary general meetings when required. One or more shareholders holding in aggregate five percent or more of our issued shares may requisition an extraordinary meeting and the directors are required to call such meeting within 21 days of such requisition. Only registered shareholders or persons duly appointed by proxy may be admitted to meetings unless otherwise permitted by the chairman of the meeting.

There are no national limitations or restrictions on the right to own our common shares.

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There are no provisions in our bylaws or articles of association that would have the effect of delaying, deferring or preventing a change in control.

There are no provisions in our bylaws or articles of incorporation that establish any threshold for disclosure of ownership. However, the Alberta and British Columbia Securities Commissions require that persons that are the registered owners of, and/or have voting control over 10% or more of our common shares must file insider reports disclosing securities holdings.

C. Material Contracts

Pursuant to a License Agreement dated June 6, 2003, Cignal agreed to provide an exclusive 99-year license to the Company of the TOPS Technology and a 25% interest in all net profits third parties (subject to certain licenses being exempt) realize from the use of the TOPS Technology. In consideration therefore, the Company agreed to fund all future development costs associated with the TOPS Technology and development of related products. The Company is required to fund successive six month budgets (each budget not to exceed $100,000) relating to proposed developments of the TOPS Technology and related products, failing which Cignal may terminate the license. Pursuant to a related agreement among Dr. Ken Powell, Mr. Thomas Kreilein and Mr. Phillip Carrozza dated June 3, 2003, Dr. Powell and Mr. Kreilein agreed to transfer certain common shares and grant an option over additional common shares of the Company to Mr. Carrozza as an inducement to enter int o this License Agreement. This agreement purported to provide Mr. Carrozza with the right to terminate the License Agreement if certain trading price benchmarks of the common shares were not met. None of these benchmarks were met but the License Agreement was not terminated within the required time periods.

On November 4, 2004, the Company entered into a transaction to purchase the TOPS Technology from Cignal and paid Mr. Carrozza an amount of $62,335. However, the transaction was not completed and the paid amount was classified as a receivable. If the transaction is not restructured or is otherwise not completed in the near-term, the amount will be repaid to the Company.

A total of 1,000,000 of the performance warrants issued to Cignal, Mr. Carrozza and Mr. Gossland are exercisable at a price of $0.50 per share for a six month period commencing November 1, 2007 and the remaining 1,000,000 performance warrants are exercisable at a price of $1.00 per share for a six month period commencing November 1, 2008. The release of these warrants is conditional upon the 20 day average stock price on these dates as reported by the TSX Venture Exchange being no less than $1.00 and $2.00 per share respectively.

The newly completed Software Transfer Agreements are subject to shareholder and regulatory approval of the transfers of the software and the issuance of securities, and upon such approval the Licensing

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Agreement will terminate and give us full ownership of the software developed to date as well as into the future. All of the securities issued in connection with the Software Transfer Agreements are subject to a four month hold period.

The Software Transfer Agreements will be tabled for approval by our shareholders at the annual and special meeting scheduled for May 5, 2006.

D. Exchange Controls

There is no law or governmental decree or regulation in Canada that restricts the export or import of capital, or affects the remittance of dividends, interest or other payments to a non-resident holder of common shares, other than withholding tax requirements. See “Item 10.E. – Taxation”.

There is no limitation imposed by Canadian law or by our constituent documents on the right of a nonresident to hold or vote common shares, other than those that are provided in the Investment Canada Act (Canada). The following summarizes the principal features of the Investment Canada Act (Canada).

The Investment Canada Act (Canada) requires certain "non-Canadian" individuals, governments, corporation or other entities who wish to acquire a "Canadian business" (as defined in the Investment Canada Act), or establish a "new Canadian business" (as defined in the Investment Canada Act) to file either a notification or an application for review with a governmental agency known as "Investment Canada". The Investment Canada Act requires that certain acquisition of control of Canadian business by a "non-Canadian" must be reviewed and approved by the Minister responsible for the Investment Canada Act on the basis that the Minister is satisfied that the acquisition is "likely to be of net benefit to Canada", having regard to criteria set forth in the Investment Canada Act. Only acquisitions of control are reviewable under the Investment Canada Act; however, the Investment Canada Act provid es detailed rules for the determination of whether control has been acquired and, pursuant to those rules, the acquisition of one-third or more of the voting shares of a corporation may, in some circumstances, be considered to constitute an acquisition of control. Certain reviewable acquisitions of control may not be implemented before being approved by the Minister; if the Minister does not ultimately approve a reviewable acquisition, which has been completed, the acquired Canadian business must be divested. Failure to comply with the review provisions of the Investment Canada Act could result in, amongst other things, an injunction or a court order directing disposition of assets of shares.

E. Taxation

A brief description of certain provisions of the tax treaty between Canada and the United States is included below, together with a brief outline of certain taxes, including withholding provisions, to which United States security holders are subject under existing laws and regulations of Canada. The consequences, if any, of provincial, state and local taxes are not considered.

The following information is general and security holders should seek the advice of their own tax advisors, tax counsel or accountants with respect to the applicability or effect on their own individual circumstances of the matters referred to herein and of any provincial, state or local taxes.

Certain Canadian Federal Income Tax Consequences

The discussion under this heading summarizes the principal Canadian federal income tax consequences of acquiring, holding and disposing of our common shares for a shareholder of us who is not a resident of Canada but is a resident of the United States and who will acquire and hold our common shares as capital property for the purposes of theIncome Tax Act (Canada) (“Canadian Tax Act”). This summary does not apply to a shareholder who carries on business in Canada through a “permanent establishment” or is otherwise situated in Canada or performs independent personal services in Canada through a fixed base in Canada if the shareholder’s holding in us is effectively connected with such permanent establishment or fixed base. This summary is based on the provisions of the Canadian Tax Act and the regulations

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thereunder and on an understanding of the administrative practices of Canada Revenue Agency, and takes into account all specific proposals to amend the Canadian Tax Act or regulations made by the Minister of Finance of Canada as of the date hereof. It has been assumed that there will be no other relevant amendment of any governing law although no assurance can be given in this respect. This discussion is general only and is not a substitute for independent advice from a shareholder’s own Canadian and U.S. tax advisors.

The provisions of the Canadian Tax Act are subject to income tax treaties to which Canada is a party, including the Canada-United States Income Tax Convention (1980), as amended (“Convention”).

Dividends on Common Shares and Other Income

Under the Canadian Tax Act, a non-resident of Canada is generally subject to Canadian withholding tax at the rate of 25 percent on dividends paid or deemed to have been paid to him or her by a corporation resident in Canada. The Convention limits the rate to 15 percent if the shareholder is a resident of the United States and the dividends are beneficially owned by and paid to such shareholder, and to 5 percent if the shareholder is also a corporation that is the beneficial owner of the dividends and owns at least 10 percent of the voting stock of the payor corporation.

The amount of a stock dividend (for tax purposes) would generally be equal to the amount by which the paid up or stated capital of the Company has increased by reason of the payment of such dividend. We will furnish additional tax information to shareholders in the event of such a dividend.

The tax payable on dividends is to be withheld at source by the Company or people acting on its behalf. The Company is liable for the amount of the tax, penalties and interest if it fails to so withhold. The taxpayer is liable in any event if the Company fails to withhold.

Dispositions of Common Shares

Under the Canadian Tax Act, a taxpayer’s capital gain or capital loss from a disposition of a common share of a Company is the amount, if any, by which his or her proceeds of disposition exceed (or are exceeded by, respectively) the aggregate of his or her adjusted cost base of the share and reasonable expenses of disposition. The capital gain or loss must be computed in Canadian currency using a weighted average adjusted cost base for identical properties. Fifty percent of a capital gain is included in income and taxed at ordinary Canadian tax rates. The amount by which a shareholder’s capital loss exceeds the capital gain in a year may be deducted from a capital gain realized by the shareholder in the three previous years or any subsequent year, subject to certain restrictions in the case of a corporate shareholder.

Under the Canadian Tax Act, a non-resident of Canada is subject to Canadian tax on taxable capital gains, and may realize an allowable capital loss on a disposition of “taxable Canadian property.” Our common shares will constitute taxable Canadian property if at any time in the five years immediately preceding the disposition of 25% or more of the issued shares of any class of capital stock of the Company that issued the shares were owned by persons with whom the taxpayer did not deal at arm’s length or the taxpayer together with all such persons did not deal at arm’s length and in certain other circumstances.

The Convention relieves United States residents from liability for Canadian tax on capital gains derived on a disposition of shares unless the value of the shares is derived principally from “real property” situated in Canada.

U.S. Federal Income Tax Consequences

The following is a general discussion of certain possible U.S. federal income tax consequences, under current law, generally applicable to a U.S. Holder (as hereinafter defined) of our common shares. This discussion is of a general nature only and does not take into account the particular facts and circumstances, with respect to U.S. federal income tax issues, of any particular U.S. Holder. In addition, this discussion

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does not cover any state, local or foreign tax consequences. (See “Taxation – Canadian Federal Income Tax Consequences” above).

The following discussion is based upon the sections of the Internal Revenue Code of 1986, as amended (“Code”), Treasury Regulations, published Internal Revenue Service (“IRS”) rulings, published administrative positions of the IRS and court decisions that are currently applicable, any or all of which could be materially and adversely changed, possibly on a retroactive basis, at any time and which are subject to differing interpretations. This discussion does not consider the potential effects, both adverse and beneficial, of any proposed legislation which, if enacted, could be applied, possibly on a retroactive basis, at any time.

This discussion is for general information only and it is not intended to be, nor should it be construed to be, legal or tax advice to any U.S. Holder or prospective U.S. Holder of our common shares, and no opinion or representation with respect to the U.S. federal income tax consequences to any such U.S. Holder or prospective U.S. Holder is made. Accordingly, U.S. Holders and prospective U.S. Holders of our common shares should consult their own financial advisor, legal counsel or accountant regarding the U.S. federal, state, local and foreign tax consequences of purchasing, owning and disposing of our common shares.

Circular 230 Disclosure

Any tax statement made herein regarding any U.S. federal tax is not intended or written to be used, and cannot be used, by any taxpayer for purposes of avoiding any penalties. Any such statement herein is written in connection with the marketing or promotion of the transaction to which the statement relates. Each taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

U.S. Holders.

As used herein, a “U.S. Holder” means a holder of our common shares who is (i) a citizen or individual resident of the U.S., (ii) a corporation created or organized in or under the laws of the U.S. or of any political subdivision thereof, (iii) an estate whose income is taxable in the U.S. irrespective of source or (iv) a trust if (A) a court within the United States is able to exercise primary supervision over the trust’s administration and one or more United States persons have the authority to control all of its substantial decisions or (B) the trust was in existence on August 20, 1996 and has properly elected under applicable Treasury Regulations to continue to be treated as a United States person. If a partnership or other “pass-through” entity treated as a partnership for U.S. federal income tax purposes holds our common shares, the U.S. federal income tax treatment of the partners or owners of such partners hip or other pass-through entity generally will depend on the status of such partners or owners and the activities of such partnership or pass-through entity.

Persons Not Covered.

This summary does not address the U.S. federal income tax consequences to persons (including persons who are U.S. Holders) subject to special provisions of U.S. federal income tax law, including (i) persons who are tax-exempt organizations, qualified retirement plans, individual retirement accounts and other tax-deferred accounts, financial institutions, insurance companies, real estate investment trusts, regulated investment companies, or brokers, dealers or traders in securities, (ii) persons who have a “functional currency” other than the U.S. dollar, (iii) persons subject to the alternative minimum tax, (xi) persons who own their common shares as part of a straddle, hedging, conversion transaction, constructive sale or other arrangement involving more than one position, (iv) persons who acquired their common shares through the exercise of employee stock options or otherwise as compensation for services, (v) persons that own an int erest in an entity that owns common shares, (vi) persons who own, exercise or dispose of any options, warrants or other rights to acquire common shares, (vii) persons who are partners or owners of partnerships or other pass-through entities or (viii) persons who own their common shares other than as a capital asset within the meaning of Section 1221 of the Code.

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Distribution on Our Common Shares.

General Rules. U.S. Holders receiving distributions (including constructive distributions) with respect to our common shares are required to include in gross income as a dividend for U.S. federal income tax purposes the gross amount of such distributions (without reduction for any Canadian income tax withheld from such distributions), equal to the U.S. dollar value of such distributions on the date of receipt (based on the exchange rate on such date), to the extent that we have current or accumulated earnings and profits. To the extent that distributions from us exceed our current or accumulated earnings and profits, such distributions will be treated first as a return of capital, to the extent of the U.S. Holder’s adjusted basis in the common shares, and thereafter as gain from the sale or exchange of our common shares. (See more detailed discussion at “Disposition of Our Common Shares” below). Any Canadian tax wit hheld from a distribution by us may be credited, subject to certain limitations, against the U.S. Holder’s U.S. federal income tax liability or, alternatively, may be deducted in computing the U.S. Holder's U.S. federal taxable income by those who itemize deductions. (See more detailed discussion at “Foreign Tax Credit” below).

Currency Gain or Loss. In the case of foreign currency received as a distribution that is not converted by the recipient into U.S. dollars on the date of receipt, a U.S. Holder will have a tax basis in the foreign currency equal to its U.S. dollar value on the date of receipt. Generally any gain or loss recognized upon a subsequent sale or other disposition of the foreign currency, including the exchange for U.S. dollars, will be ordinary income or loss. However, a U.S. Holder that is an individual and whose realized gain does not exceed $200 will not recognize that gain, to the extent that there are no expenses associated with the transaction that meet the requirements for deductibility as a trade or business expense (other than travel expenses in connection with a business trip) or as an expense for the production of income.

Dividend not Eligible for Reduced Tax Rate. For taxable years beginning after December 31, 2002 and before January 1, 2009, dividends received by U.S. Holders that are individuals, estates or trusts from “qualified foreign corporations,” as defined in Section 1(h)(11) of the Code, generally are taxed at the same preferential tax rates applicable to long-term capital gains. Although not free from doubt, it appears that we would be a “qualified foreign corporation,” as defined in Section 1(h)(11) of the Code if we were not a Passive Foreign Investment Company (“PFIC”). A corporation that is properly described as a “Foreign Personal Holding Company” (prior to repeal of these rules for taxable years of U.S. Holders beginning after December 31, 2004), a “Foreign Investment Company” (prior to repeal of these rules for taxable years of U.S. Holders beginning after December 31, 2004) or a PFIC, each as defined below, for its taxable year during which it pays a dividend, or for its immediately preceding taxable year, will not be treated as a “qualifying foreign corporation” and dividends received by U.S. Holders that are individuals, estates or trusts generally will be subject to U.S. federal income tax at ordinary income tax rates (and not at the preferential tax rates applicable to long-term capital gains).

Dividends not Eligible for Dividends Received Deduction. Dividends paid on our common shares generally will not be eligible for the “dividends received deduction” allowed to corporate shareholders receiving dividends from certain U.S. corporations. Under certain circumstances, a U.S. Holder that is a corporation and that owns shares representing at least 10% of the total voting power and the total value of our outstanding shares may be entitled to a 70% deduction of the “U.S. source” portion of dividends received from us (unless we qualify as a “Foreign Personal Holding Company” or a “Passive Foreign Investment Company” as defined below). The availability of the dividends received deduction is subject to several complex limitations that are beyond the scope of this discussion, and U.S. Holders of our common shares should consult their own financial advisor, legal counse l or accountant regarding the dividends received deduction.

Dividend Paid to Shareholder who Made QEF Election may be Exempt from Tax. Generally, shareholders are not subject to additional income taxation on distributions made by a PFIC to the extent of the shareholder’s basis in the corporation’s shares if a Qualified Electing Fund (“QEF”) election is in effect. (Please see the QEF election discussion below.) A shareholder’s basis in this situation is usually equal to the cost of purchasing the shares plus the amount of the corporation’s income that was reported on the shareholder’s return pursuant to the QEF election less any prior distributions made by the corporation to the shareholder. Again, these rules are subject to several exceptions that are beyond the scope of this

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discussion, and U.S. Holders of our common shares should consult their own financial advisor, legal counsel or accountant regarding whether dividends paid by us to them will be exempt from federal income tax if a QEF election is made.

Disposition of Our Common Shares.

General Rule. A U.S. Holder will recognize gain or loss upon the sale or other taxable disposition of our common shares equal to the difference, if any, between (i) the amount of cash plus the fair market value of any property received, and (ii) the shareholder’s tax basis in our common shares. This gain or loss will be capital gain or loss if the common shares are a capital asset in the hands of the U.S. Holder, which will be long-term capital gain or loss if our common shares are held for more than one year.

Reduced Tax Rate. Preferential tax rates apply to long-term capital gains of U.S. Holders that are individuals, estates or trusts. There are currently no preferential tax rates for long-term capital gains for a U.S. Holder that is a corporation (other than a corporation subject to Subchapter S of the Code). Deductions for net capital losses are subject to significant limitations. For U.S. Holders that are not corporations, any unused portion of such net capital loss may be carried over to be used in later tax years until such net capital loss is thereby exhausted. For U.S. Holders that are corporations (other than corporations subject to Subchapter S of the Code), an unused net capital loss may be carried back three years and carried forward five years from the loss year to be offset against capital gains until such net capital loss is thereby exhausted. Sales of PFIC stock are not eligible for the reduced long-term capital gains rates t hat are usually applicable to sales of stock unless the shareholder made a QEF election regarding such shares. As discussed below, we believe we are a PFIC.

Management Believes Company is a Passive Foreign Investment Company.

General Discussion. We believe that we qualify as a PFIC, within the meaning of Sections 1291 through 1298 of the Code, for the fiscal year ended October 31, 2004, may have qualified as a PFIC in prior years and may qualify as a PFIC in subsequent years. A U.S. Holder who holds stock in a foreign corporation during any year in which such corporation qualifies as a PFIC is subject to U.S. federal income taxation under one of three alternative tax regimes at the election of each such U.S. Holder. The following is a discussion of these three alternative tax regimes. In addition, special rules apply if a foreign corporation qualifies as both a PFIC and a “controlled foreign corporation” (as defined below) and a U.S. Holder owns, actually or constructively, 10 % or more of the total combined voting power of all classes of stock entitled to vote of such foreign corporation (See more detailed discussion at “Controlled Fore ign Corporation” below).

Definition of PFIC. Section 1297 of the Code defines a PFIC as a corporation that is not formed in the U.S. and, for any taxable year, either (a) 75% or more of its gross income is “passive income” or (b) the average percentage, by fair market value (or, if the corporation is not publicly traded and either is a controlled foreign corporation or makes an election, by adjusted tax basis), of its assets that produce or are held for the production of “passive income” is 50% or more. “Passive income” includes, for example, dividends, interest, certain rents and royalties, certain gains from the sale of stock and securities, and certain gains from commodities transactions. However, gains resulting from commodities transactions are generally excluded from the definition of passive income if “substantially all” of a merchant’s, producer’s or handler’s business is as an active merchant, producer or handler of such commodities. For purposes of the PFIC income test and the assets test, if a foreign corporation owns (directly or indirectly) at least 25% by value of the stock of another corporation, such foreign corporation shall be treated as if it (a) held a proportionate share of the assets of such other corporation, and (b) received directly its proportionate share of the income of such other corporation. Also, for purposes of such PFIC tests, passive income does not include any interest, dividends, rents or royalties that are received or accrued from a “related” person to the extent such amount is properly allocable to the income of such related person which is not passive income. For these purposes, a person is related with respect to a foreign corporation if such person “controls” the foreign corporation or is controlled by the foreign corporation or by the same persons that control the foreign corporation. For these purposes, “control 8; means ownership, directly or indirectly, of stock possessing more than 50% of the total voting power of all classes of stock entitled to vote or of the total

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value of stock of a corporation. As stated above, we believe we satisfied both the 75% passive income and the 50% passive assets tests during the fiscal year ended on October 31, 2004 and anticipate meeting both of these tests in the fiscal year that will end on October 31, 2005. There can be no assurance that our determination concerning our PFIC status will not be challenged.

Generally Applicable PFIC Rules. If a U.S. Holder does not make a timely election to be taxed in conformity with the Mark-to-Market rules or the QEF rules (discussed below) during a year in which it holds (or is deemed to have held) shares issued by us while we are a PFIC (a “Non-Electing U.S. Holder”), then special taxation rules under Section 1291 of the Code will apply to (i) gains realized on the disposition (or deemed to be realized by reasons of a pledge) of the U.S. Holder’s common shares and (ii) certain “excess distributions” (generally, distributions received in the current taxable year that are in excess of 125% of the average distributions received during the three preceding years or, if shorter, the U.S. Holder’s holding period) by us.

A Non-Electing U.S. Holder generally would be required to pro rate all gains realized on the disposition of his common shares and all excess distributions on his common shares over the entire holding period for the common shares. All gains or excess distributions allocated to prior years of the U.S. Holder (other than years prior to our first taxable year during such U.S. Holder’s holding period and beginning after January 1, 1987 for which we were a PFIC) would be taxed at the highest tax rate for each such prior year applicable to ordinary income. The Non-Electing U.S. Holder also would be liable for interest on the foregoing tax liability for each such prior year calculated as if such liability had been due with respect to each such prior year. A Non-Electing U.S. Holder that is not a corporation must treat this interest charge as “personal interest” which, as discussed above, is wholly nondeductible. The balance of the gain o r the excess distribution will be treated as ordinary income in the year of the disposition or distribution, and no interest charge will be incurred with respect to such balance.

If we are a PFIC for any taxable year during which a Non-Electing U.S. Holder holds our common shares, then we will continue to be treated as a PFIC with respect to such common shares, even if we are no longer definitionally a PFIC. A Non-Electing U.S. Holder may terminate this deemed PFIC status by electing to recognize gain (which will be taxed under the rules discussed above for Non-Electing U.S. Holders) as if such common shares had been sold on the last day of the last taxable year for which it was a PFIC.

Mark-to-Market Election. Effective for tax years of U.S. Holders beginning after December 31, 1997, U.S. Holders who hold, actually or constructively, marketable stock (as specifically defined in the Treasury Regulations) of a foreign corporation that qualifies as a PFIC may annually elect to mark such stock to the market (a “mark-to-market election”). If such an election is made, such U.S. Holder will generally not be subject to the special taxation rules of Section 1291 discussed above. However, if the mark-to-market election is made by a Non-Electing U.S. Holder after the beginning of the holding period for the PFIC stock, then the Section 1291 rules will apply to certain dispositions of, distributions on and other amounts taxable with respect to our common shares. A U.S. Holder who makes the mark-to market election will include in income for the taxable year for which the election was made an am ount equal to the excess, if any, of the fair market value of our common shares as of the close of such tax year over such U.S. Holder’s adjusted basis in such common shares. In addition, the U.S. Holder is allowed a deduction for the lesser of (i) the excess, if any, of such U.S. Holder’s adjusted tax basis in the common shares over the fair market value of such shares as of the close of the tax year, or (ii) the excess, if any, of (A) the mark-to-market gains for our common shares included by such U.S. Holder for prior tax years, including any amount which would have been included for any prior tax year but for the Section 1291 interest on tax deferral rules discussed above with respect to Non-Electing U.S. Holders, over (B) the mark-to-market losses for shares that were allowed as deductions for prior tax years. A U.S. Holder’s adjusted tax basis in our common shares will be adjusted to reflect the amount included in or deducted from income as a result of a mark-to-market election. A mark-t o-market election applies to the taxable year in which the election is made and to each subsequent taxable year, unless our common shares cease to be marketable, as specifically defined, or the IRS consents to revocation of the election.

QEF Election. A U.S. Holder who elects in a timely manner to treat us as a QEF (an “Electing U.S. Holder”) will be subject, under Section 1293 of the Code, to current U.S. federal income tax for any taxable

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year in which we qualify as a PFIC on the U.S. Holder’s pro rata share of our (i) “net capital gain” (the excess of net long-term capital gain over net short-term capital loss), which will be taxed as long-term capital gain to the Electing U.S. Holder and (ii) “ordinary earnings” (the excess of earnings and profits over net capital gain), which will be taxed as ordinary income to the Electing U.S. Holder, in each case, for the shareholder’s taxable year in which (or with which) our taxable year ends, regardless of whether such amounts are actually distributed.

The effective QEF election also allows the Electing U.S. Holder to (i) generally treat any gain realized on the disposition of his common shares (or deemed to be realized on the pledge of his shares) as capital gain; (ii) treat his share of our net capital gain, if any, as long-term capital gain instead of ordinary income; and (iii) either avoid interest charges resulting from PFIC status altogether, or make an annual election, subject to certain limitations, to defer payment of current taxes on his share of our annual realized net capital gain and ordinary earnings subject, however, to an interest charge. If the Electing U.S. Holder is not a corporation, such an interest charge would be treated as “personal interest” that is not deductible.

The procedure a U.S. Holder must comply with in making an effective QEF election, and the U.S. federal income tax consequences of the QEF election, will depend on whether the year of the election is the first year in the U.S. Holder’s holding period in which we are a PFIC. If the U.S. Holder makes a QEF election in such first year,i.e., a timely QEF election, then the U.S. Holder may make the QEF election by simply filing the appropriate QEF election documents at the time the U.S. Holder files his tax return for such first year. However, if we qualified as a PFIC in a prior year, then in addition to filing the QEF election documents, the U.S. Holder must elect to recognize (i) under the rules of Section 1291 of the Code (discussed herein), any gain that he would otherwise recognize if the U.S. Holder sold his stock on the qualification date or (ii) if we are a controlled foreign corporation, the U.S. Holder 46;s pro rata share of our post-1986 earnings and profits as of the qualification date. The qualification date is the first day of our first tax year in which we qualified as a QEF with respect to such U.S. Holder. The elections to recognize such gain or earnings and profits can only be made if such U.S. Holder’s holding period for our common shares includes the qualification date. By electing to recognize such gain or earnings and profits, the U.S. Holder will be deemed to have made a timely QEF election. A U.S. Holder who made elections to recognize gain or earnings and profits after May 1, 1992 and before January 27, 1997 may, under certain circumstances, elect to change such U.S. Holder’s qualification date to the first day of the first QEF year. U.S. Holders are urged to consult a tax advisor regarding the availability of and procedure for electing to recognize gain or earnings and profits under the foregoing rules. In addition to the above rules, under very limited circumstances, a U.S. Holde r may make a retroactive QEF election if such U.S. Holder failed to file the QEF election documents in a timely manner.

A QEF election, once made with respect to us, applies to the tax year for which it was made and to all subsequent tax years, unless the election is invalidated or terminated, or the IRS consents to revocation of the election. If a QEF election is made by a U.S. Holder and we cease to qualify as a PFIC in a subsequent tax year, the QEF election will remain in effect, although not applicable, during those tax years in which we do not qualify as a PFIC. Therefore, if we again qualify as a PFIC in a subsequent tax year, the QEF election will be effective and the U.S. Holder will be subject to the rules described above for Electing U.S. Holders in such tax year and any subsequent tax years in which we qualify as a PFIC. In addition, the QEF election remains in effect, although not applicable, with respect to an Electing U.S. Holder even after such U.S. Holder disposes of all of his or its direct and indirect interest in our shares. Therefore, if suc h U.S. Holder reacquires an interest in us, that U.S. Holder will be subject to the rules described above for Electing U.S. Holders for each tax year in which we qualify as a PFIC.

Generally, shareholders do not make a QEF election unless they have sufficient information to determine their proportionate shares of a corporation’s net capital gain and ordinary earnings. We have not calculated these amounts for any shareholder and do not anticipate making these calculations in the foreseeable future. Therefore, U.S. Holders of our common shares should consult their own financial advisor, legal counsel or accountant regarding the QEF election before making this election regarding our shares.

Other PFIC Rules. Under Section 1291(f) of the Code, the IRS has issued Proposed Treasury Regulations that, subject to certain exceptions, would treat as taxable certain transfers of PFIC stock by Non-Electing

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U.S. Holders that are generally not otherwise taxed, such as gifts, exchanges pursuant to corporate reorganizations, and transfers at death. Generally, in such cases the basis of our common shares in the hands of the transferee and the basis of any property received in the exchange for those common shares would be increased by the amount of gain recognized. However, the specific U.S. federal income tax consequences to the U.S. Holder and the transferee may vary based on the manner in which the common shares are transferred.

Certain special, generally adverse, rules will apply with respect to our common shares while we are a PFIC whether or not it is treated as a QEF. For example under Section 1298(b)(6) of the Code, a U.S. Holder who uses PFIC stock as security for a loan (including a margin loan) will, except as may be provided in regulations, be treated as having made a taxable disposition of such shares.

The PFIC rules are very complicated, and U.S. Holders should consult their own financial advisor, legal counsel or accountant regarding the PFIC rules, including the advisability of and procedure for making a QEF election or a mark-to-mark election, and how these rules may impact their U.S. federal income tax situation.

Foreign Tax Credit.

A U.S. Holder who pays (or has withheld from distributions) Canadian or other foreign income tax with respect to the ownership of our common shares may be entitled, at the option of the U.S. Holder, to either receive a deduction or a tax credit for U.S. federal income tax purposes with respect to such foreign tax paid or withheld. Generally, it will be more advantageous to claim a credit because a credit reduces U.S. federal income taxes on a dollar-for-dollar basis, while a deduction merely reduces the taxpayer’s income subject to U.S. federal income tax. This election is made on a year-by-year basis and applies to all foreign taxes paid by (or withheld from distributions to) the U.S. Holder during that year.

There are significant and complex limitations that apply to the foreign tax credit, among which is the general limitation that the credit cannot exceed the proportionate share of the U.S. Holder’s U.S. income tax liability that the U.S. Holder’s “foreign source” income bears to his or its worldwide taxable income. In applying this limitation, the various items of income and deduction must be classified as either “foreign source” or “U.S. source.” Complex rules govern this classification process. In addition, this limitation is calculated separately with respect to specific classes or “baskets” of income, such as “passive income,” “high withholding tax interest,” “financial services income,” “shipping income,” and certain other classifications of income. Foreign taxes assigned to a particular class of income generally cannot offset United States tax on income assigned to another class. For tax years of U.S. Holders beginning after October 22, 2004, unused foreign tax credits can generally be carried back one year and forward ten years. Dividends distributed by us will generally constitute “foreign source” income, and will be classified as “passive income” or, in the case of certain U.S. Holders, “financial services income” for these purposes.

In addition, U.S. Holders that are corporations and that own 10% or more of our voting stock may be entitled to an “indirect” foreign tax credit under Section 902 of the Code with respect to the payment of dividends by us under certain circumstances and subject to complex rules and limitations.The availability of the foreign tax credit and the application of the limitations with respect to the foreign tax credit are fact specific, and each U.S. Holder of our common shares should consult their own financial advisor, legal counsel or accountant regarding the foreign tax credit rules.

Information Reporting; Backup Withholding.

Certain information reporting and backup withholding rules may apply with respect to certain payments related to our common shares. In particular, a payor or middleman within the U.S., or in certain cases outside the U.S., will be required to withhold 28% (which rate is scheduled for periodic adjustment) of any payments to a U.S. Holder of our common shares of dividends on, or proceeds from the sale of, such common shares within the U.S., if a U.S. Holder fails to furnish its correct taxpayer identification number (generally on Form W-9) or otherwise fails to comply with, or establish an exemption from, the backup withholding tax requirements. Any amounts withheld under the U.S. backup withholding tax rules will be

Page 41 of 71

allowed as a refund or a credit against the U.S. Holder’s U.S. federal income tax liability, provided the required information is furnished to the IRS.U.S. Holders should consult their own financial advisor, legal counsel or accountant regarding the information reporting and backup withholding rules applicable to our common shares.

Other Considerations for U.S. Holders.

In the following circumstances, the above sections of this discussion may not describe the U.S. federal income tax consequences to U.S. Holders resulting from the ownership and disposition of our common shares of:

Foreign Personal Holding Company. These rules are repealed for tax years of U.S. Holders beginning after December 31, 2004 .. If at any time during a taxable year (a) more than 50% of the total voting power or the total value of our outstanding shares is owned, directly or indirectly, by five or fewer individuals who are citizens or residents of the U.S. and (b) 60% (or 50% in certain cases) or more of our gross income for such year is “foreign personal holding Company income” as defined in Section 553 of the Code (e.g., dividends, interest, royalties, certain gains from the sale of stock and securities, and certain gains from commodities transactions), we may be treated as a “Foreign Personal Holding Company” (“FPHC”) In that event, U.S. Holders of our common shares would be required to include in gross income for such year their allocable portions of such “foreign personal holding Company income” to the extent we do not actually distribute such income.

We do not believe that we currently qualify as a FPHC although there can be no assurance that we will not be considered a FPHC for the current taxable year.

Foreign Investment Company. These rules are repealed for tax years of U.S. Holders beginning after December 31, 2004 .. If (a) 50% or more of the total voting power or the total value of our outstanding shares is owned, directly or indirectly, by citizens or residents of the U.S., U.S. partnerships or corporations, or U.S. estates or trusts (as defined by the Code Section 7701(a)(30)), and (b) we are found to be engaged primarily in the business of investing, reinvesting, or trading in securities, commodities, or any interest therein, we may be treated as a "Foreign Investment Company" (“FIC”) as defined in Section 1246 of the Code, causing all or part of any gain realized by a U.S. Holder selling or exchanging our common shares to be treated as ordinary income rather than capital gain.

We do not believe that we currently qualify as a FIC although there can be no assurance that we will not be considered a FIC for the current taxable year.

Controlled Foreign Corporation. If more than 50% of the total voting power or the total value of our outstanding shares is owned, directly or indirectly, by citizens or residents of the U.S., U.S. partnerships or corporations, or U.S. estates or trusts (as defined by the Code Section 7701(a)(30)), each of which own, directly or indirectly, 10% or more of the total voting power of our outstanding shares (each a “10% Shareholder”), we could be treated as a “Controlled Foreign Corporation” (“CFC”) under Section 957 of the Code.

The classification of us as a CFC would effect many complex results, including that 10% Shareholders of us would generally (i) be treated as having received a current distribution of our “Subpart F income” and (ii) would also be subject to current U.S. federal income tax on their pro rata shares of our earnings invested in “U.S. property.” The foreign tax credit may reduce the U.S. federal income tax on these amounts for such 10% Shareholders (See more detailed discussion at “Foreign Tax Credit” above). In addition, under Section 1248 of the Code, gain from the sale or other taxable disposition of our common shares by a U.S. Holder that is or was a 10% Shareholder at any time during the five-year period ending with the sale is treated as a dividend to the extent of our earnings and profits attributable to the common shares sold or exchanged.

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If we are classified as both a PFIC and a CFC, we generally will not be treated as a PFIC with respect to 10% Shareholders. This rule generally will be effective for taxable years of 10% Shareholders beginning after 1997 and for taxable years of us ending with or within such taxable years of 10% Shareholders.

We do not believe that we currently qualify as a CFC. However, there can be no assurance that we will not be considered a CFC for the current or any future taxable year.The CFC rules are very complicated, and U.S. Holders should consult their own financial advisor, legal counsel or accountant regarding the CFC rules and how these rules may impact their U.S. federal income tax situation.

F. Dividends and Paying Agents

Not applicable.

G. Statement by Expert

Not applicable.

H. Documents on Display

We are required to file reports with the Securities Commissions in the province of British Columbia and the province of Alberta electronically through the Canadian System for Electronic Document Analysis and Retrieval (SEDAR), which can be viewed atwww.sedar.com.

We are subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and we file reports, registration statements and other information with the SEC. Our reports, registration statements and other information can be inspected and copies at the public reference facilities maintained by the SEC at the following locations:


Judiciary Plaza Room 1024 Washington, DC 20549	500 West Madison Suite 1400 Chicago, IL 60661

Copies of these materials can also be obtained by mail at prescribed rates from the Public Reference Section of the SEC, 450 Fifth Street, NW, Washington, DC 20549 or by calling the SEC at 1-800-SEC-0330.

I. Subsidiary Information

Not applicable.

ITEM 11: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Because our current cash is held in Canadian dollars, our financial results are expressed in Canadian dollars and our operations are primarily paid for in Canadian dollars, we are not subject to foreign currency fluctuations that would have any material affect on our financial position or results of operations. Also, because of the status of our operations, we do not believe that we are exposed to interest rate risk, commodity price risk or any other relevant market risk at this time.

We do not engage in currency speculation. Our trading activities do not involve money market holdings.

ITEM 12: DESCRIPTIONS OF SECURITIES OTHER THAN EQUITY SECURITIES

Not applicable.

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PART II

ITEM 13: DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

There have been no defaults, arrearages or delinquencies with respect to indebtedness or the payment of dividends,.

ITEM 14: MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

There have been no material modifications to our common shares.

ITEM 15: CONTROLS AND PROCEDURES

A. Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our President and Chief Executive Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures under the Exchange Act. Based upon that evaluation, the President and Chief Executive Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in timely alerting us to the material information relating to us (or our consolidated subsidiaries) required to be included in the reports we file or submit under the Exchange Act.

B. Management/Annual Report on Internal Controls over Financial Reporting

N/A

C. Attestation Report of the Registered Public Accounting Firm

N/A

D. Changes in Internal Control Over Financial Reporting

During the period covered by this report, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Margo Kaufmann resigned as Chief Financial Officer of our company on June 21, 2005.

David Terk was appointed Chief Financial Officer of Titan USA on January 6, 2006.

ITEM 16A: AUDIT COMMITTEE FINANCIAL EXPERT

Prior to the filing of this report, our board of directors had made the determination that two audit committee financial experts, Mr. Robert F. Roddick and Mr. Richard J. Sharples, serve on the audit committee. Also, we believe that Mr. Roddick and Mr. Sharples are “independent” under Rule 4200(a)(15) of the National Association of Securities Dealers listing standards, as such standards may be amended and modified.

ITEM 16B: CODE OF ETHICS

Our board of directors has not adopted a code of ethics that applies to our executive officers as such a code is not required under applicable Canadian laws.

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ITEM 16C: PRINCIPAL ACCOUNTANT FEES AND SERVICES

Deloitte & Touche, LLP (“Deloitte”), audited our financial statements for the years ended October 31, 2005, and 2004.

Audit Fees

Fees billed by Deloitte for professional services totaled $60,000 for the year ended October 31, 2005, and $30,000 for the year ended October 31, 2004. Such fees include fees associated with the audit of our annual financial statements or services that are normally provided by our auditors in connection with statutory and regulatory filings or engagements for those fiscal years.

Audit–Related Fees

None.

Tax Fees

Fees for tax services by Deloitte, including fees for review of our consolidated federal income tax return, totaled $1,500 for the 2005 tax year and $1,500 for the 2004 tax year.

All other Fees

During the fiscal years ended October 31, 2005 and October 31, 2004, Deloitte did not bill for any products or services other than as described above.

Our audit committee pre-approves audit engagement terms and fees prior to the commencement of any audit work, other than that which may be necessary for our independent registered chartered accountants to prepare the proposed audit approach, scope and fee estimates. Our independent auditors annually submit a written proposal that details all audit and audit related services. Audit fees are fixed and contained in the proposal, and the audit committee reviews the nature and dollar value of services provided under such proposal. Any revisions to such proposal after the engagement has begun are reviewed and pre-approved by our audit committee.

There were no fees in 2005 and 2004 that were not pre-approved by our audit committee. All services described above under the captions “Audit Fees”, “Audit-Related Fees” and “Tax Fees” were approved by our audit committee pursuant to SEC Regulation S-X, Rule 2-01(c)(7)(i).

ITEM 16D: EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

Not applicable.

ITEM 16E: PURCHASES OF EQUITY SECURITIES BY AFFILIATED PURCHASERS


	(a) Total Number of Shares (or Units) Purchased	(b) Average Price Paid per Share (or Units)	(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
November 1, 2004 to November 30, 2004	508,500⁽¹⁾	$0.127	Nil	400,000⁽²⁾
December 1, 2004 to December 31, 2004	200,000⁽³⁾	-	Nil	Nil
January 1, 2005 – January 31, 2005	742,533⁽⁴⁾	$0.12	742,533⁽⁴⁾	Nil

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February 1, 2005 to February 28, 2005	366,667⁽⁵⁾	$0.168	366,667⁽⁵⁾	842,260⁽⁶⁾
March 1, 2005 to March 31, 2005	Nil	$0.25	Nil	570,000⁽⁷⁾
April 1, 2005 to April 30, 2005	Nil	N/A	Nil	Nil
May 1, 2005 to May 31, 2005	200,000⁽⁸⁾	$0.235	200,000⁽⁸⁾	100,000⁽⁸⁾
June 1, 2005 to June 30, 2005	Nil	N/A	Nil	Nil
July 1, 2005 to July 31, 2005	250,000⁽³⁾	$0.135	Nil	50,000⁽⁹⁾
August 1, 2005 to August 31, 2005	1,050,000⁽⁹⁾	$0.25	1,050,000⁽⁹⁾	Nil
September 1, 2005 to September 30, 2005	Nil	N/A	Nil	Nil
October 1, 2005 to October 31, 2005	937,916⁽¹¹⁾	$0.24	937,916⁽¹¹⁾	468,958⁽¹¹⁾

Notes:

(1)

Open market transactions.

(2)

400,000 common shares underlying warrants that are exercisable at an exercise price of $0.20 per common share on or before November 30, 2005 and at $0.25 on or before November 30, 2006.

(3)

Private transfer.

(4)

742,533 common shares issuable pursuant to a debt settlement transaction. The total debt extinguished was $209,809. The common shares in the capital of the Company were issued at a deemed price of $0.12. The transaction was publicly announced on January 10, 2005.

(5)

366,667 common shares issued pursuant to a private placement at $0.15 per share. The private placement was publicly announced on February 16, 2005.

(6)

Includes 475,593 common shares issuable pursuant to stock options granted under our stock option plan of which 237,796 are vested and fully exercisable, 118,898 will vest on February 16, 2005 and the remaining 118,899 will vest August 16, 2006 all exercisable at an exercise of $0.155 per share and expire February 10, 2010 and 366,667 common shares underlying warrants that are exercisable at an exercise price of $0.20 per common share on or before February 14, 2006, and at $0.25 on or before February 14, 2007. The grant of options was publicly announced February 16, 2005.

(7)

570,000 common shares issuable pursuant to stock options granted under our stock option plan of which 285,000 are vested and fully exercisable, 142,500 will vest on March 1, 2006 and the remaining 142,500 will vest September 1, 2006 all exercisable at an exercise price of $0.25 per share and expire March 1, 2010. The grant of options was publicly announced March 1, 2005.

(8)

200,000 common shares issued pursuant to a private placement at $0.20, and 100,000 common shares underlying warrants that are immediately exercisable at an exercise price of $0.27 per common share and expire May 19, 2006. The private placement was publicly announced on May 19, 2005.

(9)

50,000 common shares issuable pursuant to stock options granted under the Issuer’s stock option plan of which 12,500 are vested and fully exercisable, 12,500 will vest on January 5, 2006, 12,500 will vest on July 5, 2006 and the remaining 12,500 will vest January 5, 2007 all exercisable at an exercise price of $0.135 per share and expire July 5, 2010. The grant of options was publicly announced July 5, 2005.

(10)

1,050,000 common shares issuable pursuant to a debt settlement transaction. The total debt extinguished was $262,500. The common shares in the capital of the Company were issued at a deemed price of $0.25. The transaction was publicly announced on August 5, 2005.

(11)

937,916 common shares issued pursuant to a private placement at $0.18, and 468,958 common shares underlying warrants that are immediately exercisable at an exercise price of $0.30 per common share and expire October 13, 2007. The private placement was publicly announced on October 14, 2005.

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PART III

ITEM 17: FINANCIAL STATEMENTS

Our audited consolidated financial statements include:

•

our balance sheets as at October 31, 2005 and October 31, 2004;

•

statements of operations and deficit for the periods ended October 31, 2005, 2004 and 2003;

•

statements of cash flows for the periods ended October 31, 2005, 2004 and 2003;

The consolidated financial statements as at and for the years ended October 31, 2005 and October 31, 2004 were audited by Deloitte & Touche LLP, our Independent Registered Chartered Accountants.

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in Canada and are reconciled to United States generally accepted accounting principles in Note 14. All figures are expressed in Canadian dollars.

Page 47 of 71

Deloitte & Touche LLP

2000 Manulife Place

10180 - 101 Street

Edmonton AB T5J 4E4

Canada

Tel: (780) 421-3611

Fax: (780) 421-3782

www.deloitte.ca

Report of Independent Registered Chartered Accountants

To the Shareholders of

Titan Trading Analytics Inc.

We have audited the consolidated balance sheets of Titan Trading Analytics Inc. as at October 31, 2005 and October 31, 2004, and the consolidated statements of operations and deficit and consolidated statements of cash flows for each of the years in the three-year period ended October 31, 2005. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards and auditing standards generally accepted in the United States of America. These standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the Company as at October 31, 2005 and 2004, and the results of its operations and its cash flows for the three-year period ended October 31, 2005, in accordance with Canadian generally accepted accounting principles. As required by the British Columbia Company Act, we report that in our opinion, these principles have been applied on a consistent basis.

The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly we express no such opinion.

On February 24, 2006, we reported separately to the shareholders of the Company on financial statements for the same period prepared in accordance with Canadian generally accepted accounting principles, which excluded Note 14 on Reconciliation to Accounting Principles Generally Accepted in the United States.

(signed)“Deloitte & Touche LLP”

Independent Registered Chartered Accountants

Edmonton, Alberta, Canada

February 24, 2006

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Comments by Independent Chartered Accountants for U.S. Readers on Canada – U.S. Reporting Differences

The standards of the Public Company Accounting Oversight Board (United States) require the addition of an explanatory paragraph when the financial statements are affected by conditions and events that cast substantial doubt on the Company's ability to continue as a going concern, such as those described in Note 1 to the financial statements. Although we conducted our audits in accordance with both Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States), our report to the shareholders dated February 24, 2006 is expressed in accordance with Canadian reporting standards which do not permit a reference to such conditions and events in the auditors’ report when these are adequately disclosed in the financial statements.

The standards of the Public Company Accounting Oversight Board (United States) also require the addition of an explanatory paragraph (following the opinion paragraph) outlining changes in accounting principles that have been implemented in the Company’s financial statements. As discussed in Note 2 to the consolidated financial statements the Company has adopted CICA handbook section 3780, accounting for stock-based compensation. Our report to the shareholders, dated February 24, 2006, is expressed in accordance with Canadian reporting standards, which do not require a reference to such changes in accounting principles in the auditors’ report when the change is properly accounted for and adequately disclosed in the financial statements.

(signed)“Deloitte & Touche LLP”

Independent Registered Chartered Accountants

Edmonton, Alberta, Canada

February 24, 2006

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TITAN TRADING ANALYTICS INC.
(Incorporated under the laws of Alberta)
Consolidated Balance Sheets
October 31, 2005

	2005	2004

ASSETS

CURRENT
Cash and cash equivalents	$ 109,191	$ -
Goods and services tax receivable	9,437	11,663
Deposit on technology software (Note 4)	62,735	62,735
Prepaid expenses	704	-
	182,067	74,398

PROPERTY AND EQUIPMENT (Note 5)	30,999	19,055
	$ 213,066	$ 93,453
LIABILITIES

CURRENT	��
Bank indebtedness	$ -	$ 2,236
Accounts payable and accrued liabilities	167,701	172,446
Loans and advances (Note 6)	91,359	223,962
	259,060	398,644
CAPITAL DEFICIENCY

Share capital (Note 7)	5,293,505	3,948,594
Contributed surplus (Note 7)	222,894	11,200
Warrants (Note 7)	229,025	116,544
Deficit	(5,791,418)	(4,381,529)
	(45,994)	(305,191)
	$ 213,066	$ 93,453
Continuing Operations (Note 1)

APPROVED BY THE BOARD
Signed "Richard Sharples", Director
Signed "Robert F. Roddick", Director
TITAN TRADING ANALYTICS INC.

Page 50 of 71


(Incorporated under the laws of Alberta)
Consolidated Statements of Operations and Deficit
Year ended October 31, 2005

	2005	2004	2003
Software and subscription sales	$ -	$ -	$ -
EXPENSES
Advertising and marketing	19,315	7,939	1,236
Amortization	8,722	4,247	1,766
Bank charges and interest	1,752	1,414	1,289
Business development fees	101,982	-	-
Loss on foreign exchange	47	-	-
Management, consulting and
administration fees (Note 9)	238,423	112,720	110,586
Office, telephone and miscellaneous	48,520	20,401	3,748
Professional fees	139,207	120,299	25,244
Rent	29,770	11,738	-
Research and development expenses (Note 9)	609,130	139,488	-
Salaries and benefits	-	-	507
Shareholder communications	112,660	19,616	14,331
Travel	33,761	19,727	3,430
	1,343,289	457,589	162,137
NET LOSS FOR THE YEAR	(1,343,289)	(457,589)	(162,137)
DEFICIT, BEGINNING OF YEAR	(4,381,529)	(3,923,940)	(3,761,803)
PRIOR PERIOD ADJUSTMENT (Note 2)	(66,600)	-	-
DEFICIT, BEGINNING OF YEAR (restated)	(4,448,129)	-	-
DEFICIT, END OF YEAR	$(5,791,418)	$(4,381,529)	$(3,923,940)

BASIC AND DILUTED LOSS PER SHARE	$ (0.07)	$ (0.04)	$ (0.02)
WEIGHTED AVERAGE NUMBER OF
SHARES USED TO CALCULATE
BASIC AND DILUTED LOSS
PER SHARE	18,397,266	10,809,501	9,812,966

Page 51 of 71


TITAN TRADING ANALYTICS INC.
(Incorporated under the laws of Alberta)
Consolidated Statement of Cash Flows
Year ended October 31, 2005

	2005	2004	2003
OPERATING
Net loss for the year	$(1,343,289)	$(457,589)	$(162,137)
Adjustments for non-cash items
Amortization	8,722	4,247	1,766
Research and development expenses (Note 9)	262,500	-	-
Share option expense (Note 7)	123,654	11,200	-

Net changes in non-cash working capital balances
Goods and services tax receivable	2,226	(1,048)	(8,319)
Prepaid expenses	(704)	-	-
Accounts payable and accrued liabilities	(4,745)	136,500	(18,034)
	(951,636)	(306,690)	(186,724)
INVESTING
Loan receivable	-	(62,735)	-
Purchase of property and equipment	(20,666)	(18,292)	(1,776)
	(20,666)	(81,027)	(1,776)
FINANCING
Issue of common shares and warrants net of issue costs	1,021,523	349,200	-
Redemption of common shares	(15,000)	-	-
Loans and advances	77,206	35,578	188,384
	1,083,729	384,778	188,384
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS	111,427	(2,939)	(116)
(BANK INDEBTEDNESS) CASH AND CASH
EQUIVALENTS, BEGINNING OF YEAR	(2,236)	703	819
CASH AND CASH EQUIVALENTS
(BANK INDEBTEDNESS), END OF YEAR	$ 109,191	$ (2,236)	$ 703
CASH USED IN OPERATING ACTIVITIES
Bank charges and interest	$ 1,752	$ 1,414	$ 1,289

Page 52 of 71

TITAN TRADING ANALYTICS INC.

(Incorporated under the laws of Alberta)

Notes to the Consolidated Financial Statements

Year ended October 31, 2005

CONTINUING OPERATIONS

The consolidated financial statements of Titan Trading Analytics Inc. (“Titan” or the “Company”) have been prepared on the basis of accounting principles applicable to a going concern, which assumes that the Company will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business.

Several adverse conditions cast doubt on the validity of this assumption. The Company has incurred significant operating losses over the past several fiscal years, has no revenue in 2005 and has a working capital deficiency of $76,993 (2004 - $324,246).

Management has evaluated the Company’s alternatives to enable it to pay its liabilities as they become due and payable in the current year, reduce operating losses and obtain additional or new financing in order to advance its business plan. Alternatives being considered by management include, among others, completing a private placement (Note 12), obtaining financing from new lenders and the issuance of additional equity. The Company believes these measures will provide liquidity for it to continue as a going concern throughout fiscal 2006. However, management can provide no assurance with regard thereto.

These consolidated financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate because management believes that the actions already taken or planned will mitigate the adverse conditions and events that raise doubts about the validity of the going concern assumption used in preparing these consolidated financial statements.

If the going concern assumption were not appropriate for these consolidated financial statements, then adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used.

CHANGE IN ACCOUNTING POLICY

Effective November 1, 2004, the Company retroactively, without restatement, adopted the fair value based method of accounting for share based compensation issued to employees, as recommended by the Canadian Institute of Chartered Accountants. As such, awards of share options result in compensation expense and a credit to contributed surplus when share options are granted. The fair value of the options will be calculated using the Black-Scholes option pricing model. Any consideration paid on exercise of share options is credited to share capital. The current year’s opening deficit balance and contributed surplus balance have been increased by $66,600 to account for the fair value of employee stock options granted in the prior year. If the fair value of the stock options granted had been accounted for using the fair value method in the prior year, the reported net loss would have increased from $ 457,589 to $524,189, and the basic and fully diluted loss per common share would have increased from $0.04 to $0.05. There were no share options issued prior to October 31, 2002.

Page 53 of 71

SIGNIFICANT ACCOUNTING POLICIES

These consolidated financial statements are prepared in accordance with accounting principles generally accepted in Canada.

Consolidation

These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Titan Trading GP Inc., Titan Trading Corp. and Titan Trading USA, LLC which were formed during fiscal year 2005. The amounts are in the normal course of business and are recorded at the current exchange rate. All inter-company balances and transactions have been eliminated on consolidation.

Research and development

Research costs are expensed when incurred. Development costs are expensed when incurred prior to the establishment of technical feasibility. Subsequent to the establishment of technical feasibility, the costs associated with the development of a commercial product for which adequate resources exist to market the product or a product to be used internally are capitalized as software and systems development. Capitalization of development costs ceases when the product is available for general release to customers or once internal utilization commences.

Software and systems development

Software and systems development costs are amortized on a product-by-product basis at the greater of (i) the ratio of gross revenues over aggregate anticipated gross revenues or (ii) straight-line over the remaining estimated economic life of the related products. The estimated economic life of the Company's products does not exceed three years.

Property and equipment

Computer equipment is recorded at cost and is amortized at 30% declining balance per annum.

Office furniture is recorded at cost and is amortized at 20% declining balance per annum.

The Company makes periodic reviews for impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when undiscounted future cash flows expected to result from the use of an asset and its eventual disposition are less than its carrying amount.

Future income taxes

The Company follows the liability method of accounting for income taxes. Under this method, current income taxes are recognized for the estimated income taxes payable for the current year. Future income tax assets and liabilities are recognized for temporary differences between the tax and accounting bases of assets and liabilities. Future tax assets, if any, are recognized only to the extent that, in the opinion of management, it is more likely than not that the future income tax assets will be realized.

Page 54 of 71

SIGNIFICANT ACCOUNTING POLICIES (continued)

Software and subscription sales

Revenue arising from software and subscription sales is recognized at the time of the sale unless the Company is obligated to provide services in the future, in which case a portion of the revenue is deferred until the services have been performed.

Foreign currency translation

The functional currency of the Company is the Canadian dollar. Monetary assets and liabilities denominated in currencies other than the Canadian dollar are translated using the rate of exchange prevailing at the balance sheet date. Revenues and expenses and other assets and liabilities are translated using the exchange rate prevailing on the transaction date. Gains and losses on translation are included in operations.

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates used by management include valuation allowances for future income taxes, useful lives for the amortization of capital assets and the fair value of financial instruments.

Cash and cash equivalents

Cash and cash equivalents includes highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Investments with an original maturity of more than three months are not included in cash and cash equivalents.

Loss per share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share assumes the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect on earnings per share. The dilutive effect of outstanding options and warrants and their equivalents is reflected in diluted earnings per share by application of the treasury stock method.

Stock-based compensation

The Company has a stock-based compensation plan, which is described in Note 7.

Page 55 of 71

DEPOSIT ON TECHNOLOGY SOFTWARE

This amount was characterized as a loan receivable from a director in 2004. During 2005, the Company commenced negotiations to purchase intellectual property from the director. If an agreement is not reached, the amount will be refundable to the Company. The amount is unsecured and non-interest bearing.

PROPERTY AND EQUIPMENT


		2005			2004
		Accumulated	Net Book		Accumulated	Net Book
	Cost	Amortization	Value	Cost	Amortization	Value

Computer
equipment	$ 50,843	$ 21,546	$ 29,297	$ 32,068	$ 13,013	$ 19,055
Office furniture
Software	1,891	189	1,702	-	-	-
development
costs	947,877	947,877	-	947,877	947,877	-
	$ 1,000,611	$ 969,612	$ 30,999	$ 979,945	$ 960,890	$ 19,055

LOANS AND ADVANCES

Amounts due are non-interest bearing, unsecured and have no fixed terms of repayment. Included in $91,359 (2004 - $223,962) is $20,559 (2004 - $103,256) due to a director of the Company and his associated company.

Page 56 of 71

SHARE CAPITAL


	2005		2004		2003
	Shares	Amount	Shares	Amount	Shares	Amount
Unlimited number of
common shares and
unlimited number of
preferred shares

Issued and
outstanding,
beginning of year	13,024,965	$ 3,948,594	9,812,966	$ 3,715,938	9,812,966	$ 3,715,938

Private placements	5,455,110	878,014	3,211,999	242,456	-	-
Exercise of warrants	430,000	72,240	-	-	-	-
Shares issued for debt	3,736,324	472,309	-	-	-	-
Share issuance costs	-	(77,652)	-	(9,800)	-	-
Issued and
outstanding,
end of year	22,646,399	$ 5,293,505	13,024,965	$ 3,948,594	9,812,966	$ 3,715,938

Stock option plan - employees

Awards of share options to employees result in compensation expense and a credit to contributed surplus when share options are granted. The fair value of the options are calculated using the Black-Scholes option pricing model. Any consideration paid on exercise of share options is credited to share capital.

Stock option plan - non-employees

In accordance with CICA Handbook Section 3870, compensation for costs for stock options issued to non-employees result in a charge to the income statement expense associated with the service provided and a credit to contributed surplus when share options are granted. The fair value of the options are calculated using the Black-Scholes option pricing model.

At October 31, 2005, no preferred shares have been issued.

At October 31, 2005, 1,500,000 common shares were held in escrow. The release from escrow is based upon the passage of time.

Page 57 of 71

SHARE CAPITAL (continued)

The Company has options outstanding under the stock option plan as follows:


	2005		2004
		Weighted-		Weighted-
		Average		Average
	Common	Exercise	Common	Exercise
	Shares	Price	Shares	Price

Outstanding at beginning of period	1,700,000	$ 0.10	360,000	$ 0.25

Granted	1,810,593	0.22	2,050,000	0.10
Cancelled or expired	(25,000)	0.25	(710,000)	0.10
Outstanding at end of period	3,485,593	0.16	1,700,000	0.10
Exercisable at end of period	2,580,296	0.14	1,700,000	0.10

The following table summarizes information on share options outstanding and executable at October 31, 2005:


Share options outstanding and exercisable
		Weighted-
		Average
		Remaining
	Number	Contractual
Exercise Price	Outstanding	Life (years)
$ 0.100	1,500,000	3.1
$ 0.120	200,000	3.5
$ 0.155	510,593	4.3
$ 0.250	1,225,000	4.3
$ 0.135	50,000	4.8
$ 0.160	3,485,593	4.0

In accordance with CICA Handbook Section 3870, compensation for costs for stock options issued will be calculated using the Black-Scholes option pricing model. During fiscal year ended October 31, 2005, 1,810,593 options were granted to employees and consultants of the Company and 25,000 options were cancelled, resulting in an additional charge to management and consulting fees and contributed surplus of $123,654 (2004 - $11,200). During the 2004 fiscal year, the Company issued 1,850,000 options on December 22, 2003, to employees and 200,000 options on May 10, 2004, to consultants of the Company.

Page 58 of 71

SHARE CAPITAL (continued)

The increase to contributed surplus in 2005 is due to the change in accounting policy of $66,600 as disclosed in Note 2, $123,654 noted above and $21,440 relating to the expired and cancelled warrants in the year.

The Company uses the Black-Scholes option pricing model to value the options at each grant date under the following weighted-average assumptions:



	2005

Weighted-average grant date fair value per share option	$ 0.09
Expected dividend rate	0%
Expected volatility	144.63%
Risk-free interest rate	4%
Expected life of options in years	5 years

The amounts estimated according to the Black-Scholes option pricing model may not be indicative of the actual values realized upon the exercise of these options by the holders.

During the year, the Company issued share purchase warrants on a one-to-one basis with the private placements of common shares which are summarized below:


	2005		2004		2003
Warrants	Warrants	Amount	Warrants	Amount	Warrants	Amount
Issued and
outstanding,
beginning of year	$ 3,211,999	$ 116,544	-	$ -	-	$ -
Equity placements	4,655,014	154,561	3,211,999	116,544	-	-
Exercised	(430,000)	(20,640)	-	-	-	-
Expired and cancelled	(859,999)	(21,440)	-	-	-	-
Issued and
outstanding,
end of year	$ 6,577,014	$ 229,025	3,211,999	$116,544	$ -	$ -

At the warrant holder’s option and upon payment of the exercise price by the holder, the warrants may be exchanged for an equal number of common shares of the Company. During current fiscal year ended October 31, 2005, a total of 430,000 warrants were exercised into common shares at $0.12 per share, for aggregate proceeds of $51,600. The value of the warrants exercised of $20,640 was transferred to share capital.

Page 59 of 71

SHARE CAPITAL (continued)

The following table summarizes information on warrants outstanding at October 31, 2005:


Exercise Prices	Number Outstanding	Expiry Date
$0.12	810,000	March 16, 2006
$0.12	1,212,000	March 16, 2006
$0.20	1,363,667	November 30, 2006
$0.20	1,353,333	February 14, 2007
$0.18	250,000	February 28, 2006
$0.18	250,000	March 14, 2006
$0.27	583,500	May 19, 2006
$0.30	754,514	October 13, 2007
	6,577,014

Equity placements 2005

During 2005, the Company completed five private placements and three debt conversions of common shares:

October 2005, the Company issued 1,509,026 units at $0.18 per unit, for total cash and debt settlement proceeds of $271,625. Each unit consisted of one common share and one-half of a common share purchase warrant. Of the net proceeds, $253,517 and $18,108 have been allocated to the common shares and warrants respectively. Each of the 754,514 warrants entitled the holder to purchase one common share at $0.30 per share, until expiry on October 13, 2007.

ii)

May 2005, the Company issued 1,167,000 units at $0.20 per unit, for aggregate proceeds of $233,400. Each unit consisted of one common share and one-half of a common share purchase warrant. Of the net proceeds, $207,726 and $25,674 have been allocated to the common shares and warrants respectively. Each of the 583,500 warrants entitles the holder to purchase one common share at $0.27 per share, until expiry on May 19, 2006. A director of the Company subscribed for 200,000 units of the placement.

iii)

March 2005, the Company issued 1,000,000 units for an amount of $120,000 (US$100,000). The 1,000,000 units issued had a subscription price of $0.12 (US$0.10) per unit. Each unit consisted of one common share and one-half of a purchase warrant. Of the net proceeds $83,000 and $37,000 have been allocated to the common shares and warrants respectively. Each whole warrant entitles the holder thereof to purchase one common share of the Company for a price of $0.18 (US$0.15) until one year after the closing date. The subscriber to the private placement was a private investment group from the United States.

Page 60 of 71

SHARE CAPITAL (continued)

iv)

February 2005, the Company issued 1,453,333 units at $0.15 per unit, for aggregate proceeds of $218,000. Each unit consisted of one common share and one common share purchase warrant. Of the net proceeds, $171,494 and $46,506 have been allocated to the common shares and warrants respectively. Each warrant entitles the holder to purchase one common share at $0.20 per share in year one and $0.25 per share in year two, until expiry on February 14, 2007.

November 2004, the Company issued 1,363,667 units at $0.15 per unit, for aggregate proceeds of $204,550. Each unit consists of one common share and one common share purchase warrant. Of the net proceeds, $177,277 and $27,273 have been allocated to the common shares and warrants respectively. Each warrant entitles the holder to purchase one common share at $0.20 per share in year one and $0.25 in year two, until expiry on November 30, 2006.

October 2005, 100,000 units at $0.15 per unit (paid-in amounts) were returned to treasury, 100,000 warrants at $0.20 per share were cancelled and 759,999 warrants with an exercise price of $0.20 expired. The value of the warrants that were cancelled and expired of $21,440 has been transferred to contributed surplus. These shares and warrants were originally issued in February 2005. The Company used the Black-Scholes option pricing model to calculate the fair value of the warrants issued.

Shares for debt conversion 2005

August 2005, the Company completed a Shares for Debt transaction in the amount of $262,500, where 1,050,000 common shares in the capital of the Company were issued at a deemed price of $0.25 to a director of the Company for debt related to the purchase of technology software from Cignal Technologies, LLC.

ii)

January 2005, the Company issued 1,748,408 common shares at a deemed value of $0.12 per share in exchange for the settlement of $209,809 of loans and advances. Of the common shares issued, 742,533 common shares were issued to settle $89,104 of loans and advances from an officer and director of the Company.

The issue costs relating to the 2005 share placements totaled $77,652.

Equity placements 2004

During 2004, the Company completed three placements of common shares and immediately detachable purchase warrants, as described below:

On March 16, 2004, the Company issued 1,240,000 common shares and 1,240,000 detachable warrants for proceeds of $124,000. Of the net proceeds, $64,480 and $59,520 have been allocated to common shares and warrants, respectively. The warrants, which have an exercise price of $0.12, are immediately exercisable and expire on March 16, 2006.

Page 61 of 71

SHARE CAPITAL (continued)

ii)

On August 30, 2004, the Company issued 1,212,000 common shares and 1,212,000 detachable warrants for proceeds of $121,000. Of the net proceeds, $82,216 and $38,784 have been allocated to common shares and warrants, respectively. The warrants, which have an exercise price of $0.12, are immediately exercisable and expire on March 16, 2006.

iii)

The issue costs relating to these placements totaled $9,800.

FUTURE INCOME TAXES

The tax effect of significant temporary differences is as follows:


	2005	2004

Operating loss carry-forwards	$ 1,249,000	$ 1,222,000
Future income tax assets before valuation allowance	1,249,000	1,222,000
Valuation allowance	(1,249,000)	(1,222,000)
Future income tax assets	-	-
Net future income tax liabilities	$ -	$ -

Page 62 of 71

FUTURE INCOME TAXES (continued)

The Company has determined that realization is not more likely than not, and therefore, a full valuation allowance against the future income tax assets has been recorded. The consolidated financial statements do not reflect the potential tax reductions which may be available through the application of losses of approximately $3,715,834 carried forward against future years' earnings otherwise subject to income taxes.

The losses expire as follows:


2006				$ 597,931
2007				725,175
2008				585,785
2009				447,548
2010				185,347
2014				458,893
2015				715,155
				$ 3,715,834

RELATED PARTY TRANSACTIONS

Included in the consolidated financial statements are the following transactions with officers, directors and related individuals not disclosed elsewhere:


	2005	2004	2003

Management, consulting and administration fees	$ 114,769	$ 80,520	$ 110,586
Research and development expenses	600,376	120,000	-
Loans receivable (Note 4)	-	62,735	-
Loans and advances (Note 6)	20,559	103,256	-

At October 31, 2005, $20,559 (2004 - $103,256) due to an officer and director is included in loans and advances. The related party transactions are in the normal course of operations and are recorded at the exchange amount, and are unsecured and non-interest bearing.

Page 63 of 71

10.

FINANCIAL INSTRUMENTS

The Company's financial instruments consist of cash and cash equivalents, goods and services tax receivable, accounts payable and loans and advances. It is management's opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying values due to their short-term nature. The Company is exposed to currency risk as a result of its operations in the United States. The Company does not use derivative financial instruments to reduce its exposure to fluctuations in foreign exchange rates.

11.

SEGMENTED INFORMATION

The Company did not generate any revenues in the current year. All of the Company’s property and equipment is located in Canada, the United States and the United Kingdom.

12.

SUBSEQUENT EVENTS

Subject to regulatory approval, in February 2006 the Company announced that it had entered into a Software Transfer Agreement with Phillip Carrozza, a director of Titan, and Cignal Technologies, LLC, a company wholly-owned by Mr. Carrozza with respect to the transfer of certain trading models, suitable for stocks or futures and software based formulas that implement the trading models and their accompanying indicators. Pursuant to the Software Transfer Agreement, Titan will issue to Cignal Technologies and Mr. Carrozza a total of 3,000,000 common shares, 1,000,000 of which common shares will be issued on closing and the remaining 2,000,000 common shares to be warrants. The Software Transfer Agreement provides Cignal Technologies with the right of first refusal in the event that Titan becomes insolvent to match a proposed sale of the software to a third party.

Titan has also entered into a Software Transfer Agreement with Michael Gossland, a director and officer of Titan, with respect to the transfer of certain executable programs and software based formulas. Pursuant to the Software Transfer Agreement, Titan will issue to Mr. Gossland 1,500,000 common shares and 1,000,000 performance warrants. The Software Transfer Agreement provides Mr. Gossland with a right of first refusal in the event that Titan becomes insolvent to match a proposed sale of the software to a third party.

In February 2006, Titan closed an expedited private placement, raising gross proceeds of $636,461, consisting of the issuance of 3,535,897 units at $0.18 per unit. Each unit consisted of one common share and one-half of one common share purchase warrants. The warrants are exercisable at a price of $0.30 for the first 12 months from the date of issuance thereof, and at a price of $0.40 for the next 12 months, and will expire February 1, 2008.

Page 64 of 71

13.

LOSS PER COMMON SHARE

Loss per common share is calculated using the weighted-average number of common shares outstanding during the year, which was 18,397,266 (2004 – 10,809,501).

The inclusion of the Company’s stock options and share purchase warrants in the computation of diluted loss per common share would have an anti-dilutive effect on loss per common share and is therefore excluded from the computation. Consequently, there is no difference between basic loss per common share and diluted loss per common share.

14.

RECONCILIATION TO ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES

The Company prepares its consolidated financial statements in accordance with Canadian generally accepted accounting principles. There are no material variations between the financial position of the Company as at October 31, 2005 and 2004 and the results of operations and cash flows for the three years then ended under Canadian generally accepted accounting principles and United States generally accepted accounting principles (“U.S. GAAP”), except as follows:

Consolidated statement of Cash flows

Under U.S. GAAP Cash and Cash equivalents for the statement of cash flows does not include bank indebtedness. At the 2004 year end the Company had bank indebtedness amounting $2,236 which would have been shown as a financing cash flow under U.S. GAAP, resulting in the cash reconciled to at the end of 2004 being nil and not ($2,236) as disclosed in the Canadian financial statements.

Escrow shares

Under U.S. GAAP, 1,500,000 common shares held in escrow were considered contingent shares until 2002, at which time the release from escrow is based upon the passage of time. When these shares are released from escrow, to the extent their fair market value exceeds their issuance price, compensation expense will be recognized by the Company.

Page 65 of 71

14.

RECONCILIATION TO ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES (continued)

Loss per share

Under U.S. GAAP, the loss per share is calculated on the basis that the weighted average number of shares outstanding during the year excludes shares which are considered contingent shares. On that basis:


	2005	2004	2003

Weighted average number of
shares outstanding	18,397,266	10,809,501	9,812,966
Net loss per share	$ (0.07)	$ (0.04)	$ (0.02)

Warrants

Under U.S. GAAP, Emerging Issues Task Force 00-19 and APB Opinion 14, the fair value of warrants issued would be recorded as a reduction to the proceeds from the issuance of common shares, with the offset to additional paid-in capital. The warrants have been presented as a separate component of shareholders’ equity for Canadian GAAP purposes.

Comprehensive income

SFAS No. 130 establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. The Company has no comprehensive income items, other than net loss, in any of the periods presented.

Research and development

Under U.S. GAAP, all development costs are expensed as incurred. Under Canadian GAAP, development costs that meet generally accepted criteria for deferral are capitalized and amortized. As at October 31, 2005 and 2004 the Company had not deferred any development costs.

Furthermore, under U.S. GAAP, acquired in-process research and development is written off at the time of acquisition and no future income taxes are recognized on this asset. Under Canadian GAAP, acquired in-process research and development is capitalized and amortized over its estimated useful life. Future income taxes are recognized at the acquisition date on that asset.

Page 66 of 71

14.

RECONCILIATION TO ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES (continued)

New Accounting Standards

SFAS 151

In November 2004, the FASB issued SFAS No. 151, "Inventory Costs, an amendment of ARB No. 43, Chapter 4", which amends Chapter 4 of ARB No. 43 that deals with inventory pricing. The Statement clarifies the accounting for abnormal amounts of idle facility expenses, freight, handling costs, and spoilage. Under previous guidance, paragraph 5 of ARB No. 43, chapter 4, items such as idle facility expense, excessive spoilage, double freight, and rehandling costs might be considered to be so abnormal, under certain circumstances, as to require treatment as current period charges. This Statement eliminates the criterion of "so abnormal" and requires that those items be recognized as current period charges. Also, this Statement requires that allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities. This Statement is effective for inventory costs inc urred during fiscal years beginning after June 15, 2005, although earlier application is permitted for fiscal years beginning after the dale of issuance of this Statement. Retroactive application is not permitted. The Company does not expect the impact of this Statement to be material.

SFAS 153

In December 2004, the FASB issued SFAS No. 153, "Exchanges of Non-monetary Assets", an amendment of APB No. 29. This Statement amends Opinion 29 to eliminate the exception for non-monetary exchanges of similar productive assets and replaces it with a general exception for exchanges of non-monetary assets that do not have commercial substance. The Statement specifies that a non-monetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. This Statement is effective for non-monetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Earlier application is permitted for non-monetary asset exchanges occurring in fiscal periods beginning after the date this Statement is issued. Retroactive application is not permitted. The Company does not expect the impact of this Statement to be material.

SFAS 154

In May 2005, the FASB issued SFAS No. 154, “Accounting Changes and Error Corrections—a replacement of APB Opinion No. 20 and FASB Statement No. 3”. This statement changes the requirements for the accounting for and reporting of a change in accounting principle and applies to all voluntary changes in accounting principle. This Statement requires retrospective application to prior periods’ financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. When it is impracticable to determine the cumulative effect of applying a change in accounting principle to all prior periods, this Statement requires that the new accounting principle be applied as if it were adopted prospectively from the earliest date practicable. This Statement is effective for accounting changes and correction of errors made in fiscal years beginning after Dece mber 15, 2005. The Company does not expect the impact of this Statement to be material.

Page 67 of 71

14.

RECONCILIATION TO ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES (continued)

SFAS 155

In February 2006, the FASB issued SFAS No. 155, “Accounting for Certain Hybrid Financial Instruments—an amendment of FASB Statements No. 133 and 140”. This Statement amends FASB Statements No. 133, Accounting for Derivative Instruments and Hedging Activities, and No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. This Statement resolves issues addressed in Statement 133 Implementation Issue No. D1, “Application of Statement 133 to Beneficial Interests in Securitized Financial Assets.” This Statement: permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative, clarifies which interest-only strips and principal-only strips are not subject to the requirements of Statement 133, establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid finan cial instruments that contain an embedded derivative requiring bifurcation, clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives and amends Statement 140 to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. This Statement is effective for all financial instruments acquired or issued after the beginning of an entity’s first fiscal year that begins after September 15, 2006. The Company does not expect the impact of this Statement to be material.

SFAS 156

In March 2006, the FASB issued SFAS No. 156, “Accounting for Servicing of Financial Assets—an amendment of FASB Statement No. 140”. This Statement amends FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, with respect to the accounting for separately recognized servicing assets and servicing liabilities. This Statement requires an entity to recognize a servicing asset or servicing liability each time it undertakes an obligation to service a financial asset by entering into a servicing contract. An entity should adopt this Statement as of the beginning of its first fiscal year that begins after September 15, 2006. Earlier adoption is permitted as of the beginning of an entity’s fiscal year. The Company does not expect the impact of this Standard to be material.

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14.

RECONCILIATION TO ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES (continued)

FASB EXPOSURE DRAFT "FAIR VALUE MEASUREMENTS

In June 2004, the FASB issued an exposure draft of a proposed Statement, "Fair Value Measurements" to provide guidance on how to measure the fair value of financial and non-financial assets and liabilities when required by other authoritative accounting pronouncements. The proposed statement attempts to address concerns about the ability to develop reliable estimates of fair value and inconsistencies in fair value guidance provided by current U.S. GAAP, by creating a framework that clarifies the fair value objective and its application in GAAP.

In addition, the proposal expands disclosures required about the use of fair value to re-measure assets and liabilities. The standard would be effective for financial statements issued for fiscal years beginning after June 15, 2005. The Company does not expect the impact of this Standard to be material.

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ITEM 18: FINANCIAL STATEMENTS

See “Item 17 – Financial Statements”

ITEM 19: EXHIBITS


Exhibit No.		Description
1.1*		Certificate of Incorporation of KBK No. 24 Ventures Ltd.
1.2*		Certificate of Change of Name of KBK No. 24 Ventures Ltd. to Titan Trading Analytics Inc.
1.3***		Articles of Continuance – Alberta Business Corporations Act
4.1*		Escrow Agreement dated January 5, 1996 among The Montreal Trust Company of Canada, Titan Trading Analytics Inc. and TTN Escrow Capital Corp.
4.2**		Licensing Agreement dated June 6, 2003 between Titan Trading Analytics Inc. and Cignal Technologies LLC
4.3**		Letter Agreement dated June 3, 2003 between Dr. Powell, Mr. Kreilein and Mr. Carrozza
8.1		List of Subsidiaries
12.1		Section 302 Certification - Certification of the Chief Executive Officer of the Corporation pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
12.2		Section 302 Certification - Certification of the Chief Financial Officer of the Corporation pursuant to Rule 13a-14(a) of the Securities Exchange Act 1934
13.1		Section 906 Certification - Certification of the Chief Executive Officer of the Corporation pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code
13.2		Section 906 – Certification - Certification of the Chief Financial Officer of the Corporation pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code

________________
* Incorporated by reference to our registration statement on Form 20-F filed with the SEC on June 30, 1999.

** Incorporated by reference to our registration statement on Form 20-F filed with the SEC on May 28, 2004.

*** Incorporated by reference to our registration statement on Form 20-F filed with the SEC on May 17, 2005.

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.


	TITAN TRADING ANALYTICS INC.

	Dated: April 26, 2006

	By:	/s/ Ken Powell
	Dr. Kenneth W. Powell, President and Chief
	Executive Officer

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EXHIBIT INDEX


Exhibit No.		Description
1.1*		Certificate of Incorporation of KBK No. 24 Ventures Ltd.
1.2*		Certificate of Change of Name of KBK No. 24 Ventures Ltd. to Titan Trading Analytics Inc.
1.3***		Articles of Continuance – Alberta Business Corporations Act
4.1*		Escrow Agreement dated January 5, 1996 among The Montreal Trust Company of Canada, Titan Trading Analytics Inc. and TTN Escrow Capital Corp.
4.2**		Licensing Agreement dated June 6, 2003 between Titan Trading Analytics Inc. and Cignal Technologies LLC
4.3**		Letter Agreement dated June 3, 2003 between Dr. Powell, Mr. Kreilein and Mr. Carrozza
8.1		List of Subsidiaries
12.1		Section 302 Certification - Certification of the Chief Executive Officer of the Corporation pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934
12.2		Section 302 Certification - Certification of the Chief Financial Officer of the Corporation pursuant to Rule 13a-14(a) of the Securities Exchange Act 1934
13.1		Section 906 Certification - Certification of the Chief Executive Officer of the Corporation pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code
13.2		Section 906 – Certification - Certification of the Chief Financial Officer of the Corporation pursuant to Rule 13a-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code

________________
* Incorporated by reference to our registration statement on Form 20-F filed with the SEC on June 30, 1999.

** Incorporated by reference to our registration statement on Form 20-F filed with the SEC on May, 28, 2004.

*** Incorporated by reference to our registration statement on Form 20-F filed with the SEC on May 17, 2005.

Page 71 of 71

Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability	8th grade Avg

Titan Trading Analytics (TTA) Inactive 20-F2006 FY Annual report (foreign)

Content analysis