U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON,
                                   D.C. 20549

                                  FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
     OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2010

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE TRANSITION PERIOD FROM   N/A    to   N/A

                        333-90031 Commission file number

                          NORTHSTAR ELECTRONICS, INC.

        Exact name of small business issuer as specified in its charter

                                    DELAWARE
                  State or other jurisdiction of organization

                                  #33-0803434
                   IRS Number or Employee  Identification No.

SUITE # 410 - 409 GRANVILLE STREET, VANCOUVER, BRITISH COLUMBIA, CANADA V6C 1T2
                     Address of principal executive offices

                                 (604) 685-0364
                           Issuer's telephone number

                                NOT APPLICABLE

         Former name, former address and former fiscal year, if changed
                               since last report

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. YES[X]   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 [X]NON-ACCELERATED FILER

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). [ ]Yes [X]NO

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



Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes[] No[] NOT APPLICABLE

Applicable only to corporate issuers

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date. COMMON SHARES AS OF JUNE 30, 2010:
35,142,688

Transitional Small Business Disclosure Format (check one): Yes[]  NO[X]

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS UNAUDITED - PREPARED BY MANAGEMENT

NORTHSTAR ELECTRONICS, INC. Consolidated Financial Statements Consolidated
Balance Sheets at June 30, 2010 and at December 31, 2009 Consolidated Statements
of Operations for the Three and Six Months Ended June 30, 2010 and 2009
Consolidated Statements of Changes in Stockholders' Equity for the Six Months
Ended June 30, 2010 Consolidated Statements of Cash Flows for the Three and Six
Months Ended June 30, 2010 and 2009 Notes to Consolidated Financial Statements

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

ITEM 3. CONTROLS AND PROCEDURES

PART II     OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

ITEM 5. OTHER INFORMATION

ITEM 6. EXHIBITS

SIGNATURES

 NORTHSTAR ELECTRONICS, INC. Consolidated Balance Sheets - U.S. Dollars
                                                                    JUNE 30
December 31


(US Dollars)                                                                   2010            2009
                                                                                                 
                                                                             UNAUDITED         audited
ASSETS

CURRENT
  Cash and cash equivalents                                             $       40,892  $      108,486
  Accounts receivable                                                          112,555         208,973
  Investment tax credits receivable                                              -               -
  Inventory                                                                    128,322         132,367
  Prepaid expenses                                                             128,338          44,156
                                                                        --------------------------------
                                                                               410,107         493,982
DEFERRED CONTRACT COSTS                                                         79,732         193,464
INTANGIBLE ASSET                                                                12,328          14,333
EQUIPMENT                                                                       48,131          57,835
                                                                        --------------------------------
                                                                        $      550,298  $      759,614
                                                                        ================================
LIABILITIES

CURRENT
  Accounts payable and accrued liabilities                              $    1,753,248  $    1,623,875
  Loans payable                                                                188,409         193,161
  Due to Cabot Management Limited                                               51,195          52,078
  Due to Directors                                                           1,117,079       1,205,743
  Deferred revenue                                                             159,717         273,518
  Current portion of  long-term debt                                           967,661       1,339,568
                                                                        --------------------------------
                                                                             4,237,309       4,687,943
LONG-TERM DEBT                                                                 651,495         708,490
                                                                        --------------------------------
                                                                             4,888,804       5,396,433
                                                                        ================================
STOCKHOLDERS' DEFICIT
Authorized:
  100,000,000 Common shares with a par value of $0.0001 each
    20,000,000 Preferred shares with a par value of $0.0001 each
Issued and outstanding:
   35,142,688  Common shares (31,939,070 - December 31, 2009)                    3,504           3,194
        408,000 Preferred series A shares (348,000 - December 31, 2009)        342,772         285,600
ADDITIONAL PAID-IN CAPITAL                                                   5,651,382       5,174,173
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)                                (390,423)       (457,939)
ACCUMULATED DEFICIT                                                         (9,945,741)     (9,641,847)
                                                                        ---------------------------------
                                                                            (4,338,506)     (4,636,819)
                                                                        ---------------------------------
                                                                        $      550,298  $      759,614
                                                                        =================================
See notes to the consolidated financial statements


                          NORTHSTAR ELECTRONICS, INC.
                     Consolidated Statements of Operations
               Three and Six Months Ended June 30, 2010 and 2009
                                   Unaudited
                                  U.S.Dollars

                                               Three Months                Six Months
                                              --------------              ---------------
                                          2010          2009            2010           2009
                                          ---------------------------------------------------
Sales                                     $953,099   $879,565          $2,239,071 $1,382,396
Cost of goods sold                         686,244    677,368           1,676,082    995,744
                                           --------------------------------------------------
Gross margin                               266,855    202,197             562,989    386,652
Recovery of development costs                    0          0                   0          0
Other income (expense)                      (7,122)   (12,442)                  0          0
                                           --------------------------------------------------
                                           259,733    189,755             562,989    386,652
                                           --------------------------------------------------
EXPENSES
Salaries                                   215,263    201,989             432,186    377,499
Management and administration fees          45,000     45,000              90,000     93,090
Financial consulting                         4,500          0               6,000      5,000
Professional fees                            2,920     42,946              10,826     49,072
Rent                                        27,606     30,404              62,971     63,468
Research and development                         0          0                   0          0
Investor relations                          16,802          0              23,552     12,500
Office and administration                   33,140     30,436              70,857     57,428
Travel and business development             18,750      2,072              34,102     14,517
Interest on debt                            83,031     89,565             100,992    168,282
Telephone and utilities                      7,625      9,018              14,836     16,275
Amortization                                 4,715     28,800               9,595     31,934
Finance fees                               (19,994)    10,430              10,967     11,430
                                           --------------------------------------------------
Total expenses                             439,358    490,660             866,884    900,495
                                           --------------------------------------------------
Net loss for period                      $(179,625) $(300,905)          $(303,895) $(513,843)
                                          ===================================================
Net loss per share                       $   (0.01) $   (0.01)          $   (0.00) $   (0.00)
                                          ===================================================
Weighted average number of shares
outstanding                              33,629,875 30,322,737         34,358,568   30,171,273
                                         =====================================================

            See notes to the consolidated financial statements





                          NORTHSTAR ELECTRONICS, INC.
           Consolidated Statement of Changes in Stockholders' Equity
                        Six  Months Ended June 30, 2010
                                   Unaudited
                                  U.S. Dollars

  		                            Additional       Other
                                            Paid in        Comprehensive    Accumulated   Total Stockholder
                     Shares      Amount     Capital         Income           Deficit         (Deficit)
 -----------------------------------------------------------------------------------------------------------
Balance
December 31,
2009                31,939,070    $3,194    $5,174,173    $(457,939)   $(9,641,846)        $(4,922,418)

Net loss for
six months                 -           -             -             -      (303,895)           (303,895)

Currency
translation
adjustment                 -           -             -        67,516             -              67,516

Issuance of
common stock:
- for conversion     160,000           16           32,812         -             -              32,828
- for loan payable    30,000            3            6,597         -             -               6,600
- for prepaid
  expense            508,844           51           96,949         -             -              97,000
- for cash         2,100,000          210          284,790         -             -             285,000
- for services       304,774           30           56,061         -             -              56,091
--------------------------------------------------------------------------------------------------------------
Balance
June 30,2010      35,042,688       $3,504       $5,651,382 $(390,423)  $(9,945,741)        $(4,681,278)
--------------------------------------------------------------------------------------------------------------
Series A shares of preferred stock -balance December 31, 2009                                  285,600
Series A shares of preferred stock - converted                                                 (32,828)
Series A shares of preferred stock - subscribed                                                 90,000
-------------------------------------------------------------------------------------------------------------
Total stockholders' equity (deficit) June 30, 2010                                          $(4,338,506)
=============================================================================================================

               See notes to the consolidated financial statements










NORTHSTAR ELECTRONICS, INC.
Consolidated Statements of Cash Flows
Six Months Ended June 30, 2010 and 2009
Unaudited
U.S.Dollars

                                                                  2010                2009
Operating Activities
  Net income (loss)                                              $(303,895)      $(513,843)
  Adjustments to reconcile net income (loss) to net
   cash used by operating activities:
      Amortization                                                   9,595          31,934
      Write down of deferred start up costs                        113,698          30,167
                  Issuance of common stock for services             56,091          11,432
  Changes in operating assets and liabilities                      175,507          52,567
                                                                  -------------------------
Net cash (used) provided by operating activities                    50,996        (387,743)
                                                                  -------------------------
Investing Activities
  Property and equipment disposal (purchase)                        1,197           (8,194)
                                                                  -------------------------
Net cash (used) provided by investing activities                    1,197           (8,194)
                                                                  -------------------------
Financing Activities
  Issuance of common shares for cash (net of costs)               375,000           61,500
  Increase (repayment) of long term debt                         (405,761)         115,916
  Advances from (repayment to) directors                          (86,727)         143,289
Net cash (used) provided by financing activities                 (117,488)         320,705
                                                                 --------------------------
Effect of foreign exchange on translation                          (2,299)         (72,076)
                                                                 --------------------------
Inflow (outflow) of cash                                          (67,594)        (147,308)
Cash, beginning of period                                         108,486          210,348
                                                                 --------------------------
Cash, end of period                                             $  40,892         $ 63,040
                                                                 --------------------------

Supplemental information
   Interest paid                                                $ 100,992        $168,282
   Shares issued for prepaid expense                            $  97,000        $      0
   Shares issued for loan repayment                             $   6,600        $      0
   Corporate income taxes paid                                  $       0        $      0

               See notes to the consolidated financial statements








                                                                                 

                         NORTHSTAR ELECTRONICS, INC.
                   Notes to Consolidated Financial Statements
                         Six Months Ended June 30, 2010
                                   Unaudited
                                  U.S. Dollars

1.    NATURE OF OPERATIONS AND ABILITY TO CONTINUE AS A GOING CONCERN
These   consolidated  financial  statements  include  the  accounts  of  Northstar
Electronics,  Inc.  ("the  Company")  and  its wholly owned subsidiaries Northstar
Technical  Inc.  ("NTI")  and Northstar Network  Ltd.  ("NNL").  The  Company  was
incorporated May 11, 1998 in  the  State  of  Delaware and had no operations other
than organizational activities prior to the January 2000 merger with NTI described
as follows: On January 26, 2000 the Company completed  the  acquisition of 100% of
the shares of NTI. The Company, with the former shareholders  of  NTI  receiving a
majority  of  the  total  shares  then issued and outstanding, effected the merger
through  the issuance of 4,901,481 shares  of  common  stock  from  treasury.  The
transaction  has  been  accounted  for  as  a  reverse  takeover  resulting in the
consolidated  financial  statements  including  the results of operations  of  the
acquired   subsidiary  prior  to  the  merger.  All  intercompany   balances   and
transactions are eliminated.

The Company's  business  activities  are conducted principally in Canada but these
financial  statements  are  prepared  in  accordance  with  accounting  principles
generally accepted in the United States with  all  figures  translated into United
States dollars for reporting purposes.

These unaudited consolidated interim financial statements have  been  prepared  by
management  in  accordance  with  accounting  principles generally accepted in the
United States for interim financial information,  are condensed and do not include
all  disclosures required for annual financial statements.  The  organization  and
business  of  the  Company,  accounting policies followed by the Company and other
information are contained in the  notes  to  the  Company's  audited  consolidated
financial statements filed as part of the Company's December 31, 2009 Form 10-K.

In  the  opinion  of the Company's management, this consolidated interim financial
information reflects  all  adjustments  necessary  to present fairly the Company's
consolidated financial position at June 30, 2010 and  the  consolidated results of
operations and the consolidated cash flows for the six months  then ended. For the
six months ended June 30, 2010: 100% of the Company's revenues were generated from
contracts  with  two  major  customers.  The Company is continually marketing  its
services for new and follow on contracts.

The  results  of  operations  for the six months  ended  June  30,  2010  are  not
necessarily indicative of the results  to  be expected for the entire fiscal year.
The accompanying consolidated financial statements have been prepared assuming the
Company will continue as a going concern, which  contemplates  the  realization of
assets  and  satisfaction of liabilities in the normal course of business.  During
the six months to June 30, 2010 the Company incurred a net loss of $303,895 and at
June 30, 2010  had  a working capital deficiency (an excess of current liabilities
over current assets) of $3,827,202 (December 31,



2009: $4,193,961), including  $967,661  of  long  term  debt  due  within one year
(December 31, 2009: $1,339,568).

Management has undertaken initiatives for the Company to continue as a going
concern, for example: the Company is negotiating to secure an equity financing in
the short term and is in discussions with several financing firms. The Company
also expects to increase revenues contract sales. As well, the Company continues
to seek manufacturing assembly contracts to increase revenue. These initiatives
are in recognition that the Company to continue as a going concern must generate
sufficient cash flow to cover its obligations and expenses. In addition,
management believes these initiatives can provide the Company with a solid base
for profitable operations, positive cash flows and reasonable growth. Management
is unable to predict the results of its initiatives at this time. Should
management be unsuccessful in its initiative to finance its operations the
Company's ability to continue as a going concern, is not certain. These financial
statements do not give effect to any adjustments to the amounts and
classifications of assets and liabilities which might be necessary should the
Company be unable to continue its operations as a going concern.

2.    SHARE CAPITAL
During the six months ended June 30, 2010 the following capital transactions
occurred:

COMMON STOCK

January 1 to March 31, 2010:

For services: 178,810 shares fairly valued at $32,191 - the market value of those
services

For cash: 1,100,000 shares fairly valued for cash of $160,000.
For conversion of Preferred shares: 160,000 fairly valued for cash of $32,828
April 1 to June 30, 2010:

For services: 125,964 shares fairly valued at $23,900 - the market value of those
services

For cash: 1,000,000 shares fairly valued for cash of $125,000.

For prepaid expenses: 508,844 shares fairly valued at $97,000 - the market value
of those expenses

For reduction of a loan payable: 30,000 shares fairly valued at $6,600 - the
amount of the loan repaid

PREFERRED STOCK

For cash: 408,000 series A shares of preferred stock for $342,772 (inclusive of
100,000 shares for $90,000 received during the three months ended March 31, 2010).
The preferred shares bear interest at 10% per annum paid semi annually not in
advance and are convertible to shares of common stock of the Company after two
years from receipt of funds at a 20% discount to the then current market price of
the Company's common stock. The preferred shares may be converted after six months
and before two years under similar terms but with a 15% discount to market. At
June 30, 2010 the Company had received $342,772 for 408,000 preferred shares but
had not issued the shares.







3.    LONG TERM DEBT

Balance owing December 31, 2009                              $2,048,058
Repayment                                                      (405,761)
Effect of foreign exchange on translation to US                 (23,141)
                                                             ------------
Balance due June 30, 2010                                     1,619,156
Less current portion                                           (967,661)
                                                             ------------
                                                            $   651,495
                                                            =============

4.    REVENUE
                                                Six months      Six months
                                                  2010              2009
                                                -------------------------
Revenue consists of:
Product sales                                   $       0      $   39,393
Contract sales                                  2,239,071       1,343,003
Government assistance                                   0               0
Other                                              (7,122)              0
                                                --------------------------
                                              $ 2,231,949     $  1,382,396
                                              =============================

5.    CONTINGENCIES

(i)       The Company is a defendant in a lawsuit commenced against them in 1999
by their former master distributor.  The former distributor has alleged that the
Company interfered with the ability of the former distributor to sell products.
The Company has filed a counter claim for monies owing by the former distributor
to the Company. There has been no action from either side to date.

(ii)    The  Company  is  contingently  liable  to  repay $1,997,144 in assistance
received under the Atlantic Innovation Fund. The assistance  is repayable annually
at  the  rate  of 5% of gross revenues from sales of products resulting  from  the
Company's Aquacom  research  and  development  project.  Gross  revenues are to be
calculated  for  the  fiscal  year  immediately  preceding  the  due date  of  the
respective  payment. Repayment is to continue until the assistance  is  repaid  in
full. At June 30, 2010 the Company has accrued $52,531 as repayable.

6.    NEW ACCOUNTING PRONOUNCEMENTS

Management does not believe that any recently issued but not yet effective
accounting pronouncements, if currently adopted, would have a material effect on
the accompanying consolidated financial statements.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

The following  discussion  should  be  read  in  conjunction with the accompanying
unaudited consolidated financial information for the  three  and six month periods
ended  June  30,  2010  and June 30, 2009 prepared by management and  the  audited
consolidated financial statements for the twelve months ended December 31, 2009 as
presented in the Company's Form 10K as filed.



Although the Company has  experienced  a  net  loss  this quarter, it continues to
expend effort to secure additional contracts for the manufacture  and  assembly of
military/government  systems,  submarine  command and control consoles, multi-mode
fiber optic cables, precision, machined parts  and  other components for aerospace
and defense systems.

The  Company  believes  that  its overall business prospects  look  promising  and
anticipates increased revenues in the near to medium future.

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

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

THE COMPANY'S SERVICES

The Company, through its subsidiaries is an underwater sonar technology developer,
a defense electronics contract manufacturer (CM)  and a defense systems integrator
(DSI).

UNDERWATER SONAR PRODUCTS AND TECHNOLOGIES

A) PROJECT X

The  company is seeking arrangements with Lockheed Martin  Canada  to  market  the
prototype  units  developed  in conjunction with the original Lockheed development
team. Production of this unit is anticipated in 2011.

B) DEFENSE SONAR SYSTEMS

The Company is a subcontractor on Lockheed Martin's anti-terrorism Swimmer
Detection System (SDS). The SDS is a wide band high frequency sonar system
designed specifically to detect and classify underwater terrorist threats. The
design and technology is applicable to innovative military sonar products.

DEFENSE CONTRACT MANUFACTURING

The  Company, with its updated facilities,completed further reviews  for
opportunities on submarine  console work from Lockheed Martin Manassas  for
approximately 20 consoles. Final bid submission was  made  during the quarter with
anticipated contract award taking place in the following quarter. Separately, the
bid for component manufacture of aircraft access doors for new  water  bomber
aircraft construction moved to final stages.



The Company's wholly owned subsidiary,  Northstar  Network Ltd.,continued work
on the Master Purchase Order for the Wing Assembly Upgrade Components  for  the
P-3 ORION aircraft from Lockheed Martin Aeronautics totaling US$6,807,191.
Approximately  two-thirds of this contract has been completed. The  Company  is
manufacturing components  for  new production service life extension kits for
this Lockheed Martin Service Life Extension  Program. These components will
add more than 15,000 flying hours to each aircraft, representing 15 to 20
additional years of service for this critical maritime patrol and reconnaissance
resource.

In addition to the P3 Project, work was in full development for the
manufacture/assembly   of  the  new  prototype  Machine  Control  Console  for
L3 Communication MAPPS Ltd. for the Canadian Navy Frigate Upgrade program.  The
first shipset was delivered during  the  quarter.  Over 60 units will be
delivered under this contract.

SYSTEMS INTEGRATION

The Company continues to enhance its  approach  to  securing  and  executing large
defense contracts by bringing together affiliate companies. The overall  affiliate
capability, which is substantial, is presented to the prime contractors. Marketing
efforts   continue  in  this  area  to  broaden  our  exposure  for  manufacturing
opportunities.

The aforementioned  P3 ORION Master Purchase Order and the L3 Communications MAPPS
Ltd. contract are examples  of  how  Systems  Integration  works  for us. In these
projects, six subcontractors carry out various tasks, with Northstar  bringing all
component parts together for engineering, testing, quality control and delivery to
the customer.

RESULTS OF OPERATIONS

Comparison  of  the three and six months ended June 30, 2010 with the three  and
six months ended June 30, 2009:

Gross revenues from  sales,  miscellaneous  income  and recovery of research and
development  for  the  three  month  period ended June 30,  2010  were  $945,977
compared to $867,123 in the comparative prior three month period. Gross revenues
from sales, miscellaneous income and recovery  of  research  and development for
the six month period ended June 30, 2010 were $2,239,071 compared  to $1,382,396
in the comparative prior six month period.

Sales  revenue  for the three month period ended June 30, 2010 was $953,099  (8%
increase) compared  to  $879,565 of sales revenue recorded during the same three
month period of the prior  year.  This comparative increase is the direct result
of the Lockheed Martin P3 and  the  L3  Communication  MAPPS  contracts.   Sales
revenue  for  the  six  month  period  ended  June  30, 2010 was $2,239,071 (62%
increase) comparable to $1,382,396 in the prior period.  Gross margins decreased
3% from $386,652 (28%) in the prior six month period to $562,989  (25%)  in  the
current six month period.




The  net  loss  for  the  three  month period ended June 30, 2010 was $(179,625)
(40.3% decrease) compared to a net loss of $(300,905) for the three months ended
June 30, 2009.  The reduction in the  loss  resulted  from the small increase in
gross  margin and further streamlining of operational expenditures  during  this
period.

Salaries  increased  to $432,186 for the six months ended June 30, 2010 compared
to salaries of $377,499 for the comparative prior six months ended June 30, 2009
as the Company expanded  its  workforce  in  anticipation  of increased contract
sales.  Salaries may increase with new projects anticipated  in  the aeronautics
area, commensurate with corresponding increases in revenues.

Travel  and  business  development  costs  were  $34,102 for the six months  and
$14,517 for the comparative prior period ended June  30,  2009  as  the  Company
invested  in  travel to meetings to increase its customer awareness.  Additional
travel costs were associated with production review requirements.

The Company is actively pursuing contracts for its sonar capabilities in
military and anti terrorist applications. For its efforts pursuing opportunities
in land-based military applications over the past year, on June 3, a Letter of
Intent was signed with DEW Engineering and Development of Ottawa, ON and our
subsidiary, Northstar Network Ltd. (NNL).  This agreement provides for
collaboration between NNL and DEW on a number of Canadian defense projects with
potential expenditures up to $16M over the next several years for the
manufacture/assembly of material components for land-based, military armoured
vehicles.

In other manufacturing areas, the Company commenced production work for
mechanical locking devices for a marine design and supply company.  Successful
completion of this work could open a new area of marine business development for
Northstar.

Cost recoveries  of  $nil  are  comparable  to $nil recovered in the comparative
prior six month period.

COMPARISON OF FINANCIAL POSITION AT JUNE 30, 2010 WITH DECEMBER 31, 2009

The Company's working capital deficiency increased  at June 30, 2010 to $3,827,202
with current liabilities of $4,237,309 which are in excess  of  current  assets of
$410,107.  At  December  31, 2009 the Company had a working capital deficiency  of
$2,424,049.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

We  have  adopted various accounting  policies  that  govern  the  application  of
accounting  principles  generally  accepted in the United States of America in the
preparation of our financial statements.  Our  significant accounting policies are
described  in the footnotes to our annual financial  statements  at  December  31,
2009. The preparation  of  financial  statements  in  conformity  with  accounting
principles generally accepted in the United States of America requires us  to make
estimates  and  assumptions  that  affect  the  amounts  reported in the financial
statements and accompanying notes.



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

LIQUIDITY AND CAPITAL RESOURCES

The Company has increased its shareholders'  deficit as a result of its efforts to
increase its business activity and customer base.  Cash outflow for the six months
ended June 30, 2010 was $(67,594) compared to a cash  outflow of $(147,308) in the
comparative prior six month period. During the six months  ended June 30, 2010 the
Company received $375,000 from equity funding and paid out $405,761 to reduce long
term debt leaving cash on hand at June 30, 2010 of $40,892  compared  to  cash  on
hand of $108,486 at December 31, 2009.

Until  the  Company  receives  revenues  from  new  contracts and/or increases its
product sales revenue, it will be dependent upon equity  and  loan  financings  to
compensate for the outflow of cash anticipated from operations.

The  Company is preparing a private placement preferred share offering pursuant to
Regulations  D and S with the expectation of obtaining up to $5,000,000. Any funds
so raised are  targeted  for  contract financing, product development, facilities,
marketing and general working capital. At this time, no commitment for funding has
been made to the Company.

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

ITEM 3. CONTROLS AND PROCEDURES

(a)  Evaluation of disclosure controls and procedures
Based on the evaluation of the Company's disclosure controls and procedures (as
defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of
1934) as of the date of this Quarterly Report on Form 10-QSB, our chief executive
officer and chief financial officer has concluded that our disclosure controls and
procedures are designed to ensure that the information we are required to disclose
in the reports we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the SEC's rules and
forms and are operating in an effective manner.

(b)  Changes in internal controls




There were no changes in our internal controls or in other factors that could
affect these controls subsequent to the date of their most recent evaluation.



                          PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

No change since previous filing.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Options Granted                   Date     Exercise Price  Expiry Date
Nil

Warrants Issued
During the six month period ended June 30, 2010 the Company issued nil share purchase
warrants.

Common Stock Issued               Date                        Consideration
----------------------------------------------------------------------------------------
1,075,000                    January, 2010         cash of $157,500
10,345                       January, 2010         services valued at $3,000
160,000                      February, 2010        conversion of 40,000 preferred shares for $32,191
46,778                       February, 2010        services valued at $12,541
121,687                      March, 2010           services valued at $16,650
25,000                       March, 2010           cash of $2,500
1,000,000                    April 27, 2010        cash of $125,000
108,277                      April 27, 2010        services and expenses valued at $19,900
30,000                       May 12, 2010          repayment of loan in the amount of $6,600
26,531                       June 2, 2010          expenses valued at $6,000
500,000                      June 16, 2010         expenses valued at $95,000

Preferred Stock Subscribed
100,000 series A shares, for cash of $90,000, convertible to shares of common stock -
proceeds were used in working capital.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

No change since previous filing.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

No change since previous filing.

ITEM 5. OTHER INFORMATION.

No change since previous filing


ITEM 6. EXHIBITS

Exhibit 31.1 - CERTIFICATION SECTION 302

Exhibit 32.1 CERTIFICATION SECTION 906





SIGNATURES

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

August 16, 2010     Northstar Electronics, Inc.
                     (Registrant)

                 By: /s/ Wilson Russell
                 Wilson Russell, PhD, President and Chief Financial Officer