Property and equipment, net, is comprised of the following:

Depreciation expenses were $2,103$0 and $0$543 for the ninethree months ended May 31,November 30, 2018 and 2017.

On November 14, 2018, the Company had a change of control. Property and equipment in the amounts of $8,204 have been written off and recorded for the three months ended November 30, 2018. See Note 7 - Change of Control.

NOTE 5 – INTANGIBLE ASSETS

Intangible assets consisted of the following:

Amortization expenses were $1,299$0 and $0$433 for the ninethree months ended May 31,November 30, 2018 and 2017.

9 |PageOn November 14, 2018, the Company had a change of control. Intangible assets in in the balance of $3,468 have been written off and recorded for the three months ended November 30, 2018. See Note 7 - Change of Control.

NOTE 6 – CAPTIAL STOCK

The Company has 75,000,000 shares of common stock authorized with a par value of $0.001 per share.

On September 12, 2016, the Company issued 5,000,000 shares of common stock at $0.001 per share for a proceed of $5,000.

For the year period ended August 31, 2017, the Company issued 1,340,000 shares of common stock at $0.02 per share for a proceed of $26,800.

As of May 31,November 30, 2018, the Company had 6,340,000 shares issued and outstanding.

11

Cannis, Inc.

(F/K/A: Zartex, Inc.)

Notes to the Financial Statements

(Unaudited)

NOTE 7 – CHANGE OF CONTROL

Effective November 14, 2018, the Company, Mr. Aleksandr Zausaev (“Seller”) and Mr. Eu Boon Ching (“Buyer”) entered into a Security Purchase Agreement (SPA). Pursuant to the SPA, Buyer acquired from Seller 5,000,000 shares of common stock of the Company.

In addition, Mr. Ching acquired an additional 1,335,000 shares of common stock of the Company from certain other shareholders of the Company pursuant to a separate stock purchase agreement. The total number of shares of common stock acquired by Mr. Ching is 6,335,000, and all such shares now held by Mr. Ching are “restricted” and/or “control” securities. Mr. Ching is the Company’s sole officer and director.

Simultaneously, Mr. Zausaev forgave $35,236 of related party debt. The Company relinquished all its assets to settle all its liabilities during the change of control transaction. In connection with these transactions, the Company has ceased its prior operations and is now a “Shell company”.

NOTE 8 – RELATED PARTY TRANSACTIONSLOANS

With respect to the change of control, Mr. Zausaev, resigned in all officer and director capacities from the Company and Mr. Ching was appointed the sole officer and sole director of the Company. Mr. Zausaev forgave $35,236 of related party debt owed to him.

In support of the Company’s efforts and cash requirements, it may rely onMr. Ching advanced $4,100 through CannisApp Sdn Bhd, a Malaysian company (“CannisApp”), to support the Company’s operations. Mr. Ching is the chief executive officer (CEO) of CannisApp. These amounts represented advances from related parties until such time that the Company can support its operations or attains adequate financing through salespaid in satisfaction of its equity or traditional debt financing.liabilities. There iswas no formal written commitment for continued support by officers, directors,Mr. Ching or other minority shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances arewere considered temporary in nature and have not been formalized by a promissory note. The outstanding payable owed to CannisApp was $4,100 as of November 30, 2018. The amount is non-interest bearing and due on demand without maturity date.

Since August 17, 2016 (Inception) through May 31, 2018 the Company’s sole officer and director, Mr. Aleksandr Zausaev, has loaned the Company from time to time to pay for incorporation costs and operating expenses. As of May 31, 2018, the outstanding payable amount to Mr Zausaev was $29,302.

Mr. Zausaev also provides services to the Company for which he was compensated. As of May 31, 2018, the outstanding accounts payable amount to Mr. Zausaev was $9,757 The amounts above are non-interest bearing, due upon demand and unsecured.

NOTE 89 – INCOME TAX

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (“Tax Reform Act”). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. As a result of the reduction in the U.S. corporate income tax rate from 34%35% to 21% under the Tax Reform Act, the Company revalued its ending net deferred tax assets. In addition, net operating losses (NOL) arising after December 31, 2017 can be carryforward indefinitely while limiting the NOL deduction for a given year to 80% of taxable income.

As of May 31,November 30, 2018, the Company had net operating loss carry forwards of $42,769$35,900 that may be available to reduce future years’ taxable income through 2038.income. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a full valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

12

Cannis, Inc.

(F/K/A: Zartex, Inc.)

Notes to the Financial Statements

(Unaudited)

NOTE 910 - CONCENTRATIONSSUBSEQUENT EVENT

The Company has only one supplier who is the sole officer and majority shareholder of the Company with outstanding accounts payable of $9,757 (100%) at May 31, 2018.

NOTE 10 - SUBSEQUENT EVENTS

The Company has evaluatedevaluates subsequent events from May 31, 2018 tothat have occurred after the balance sheet date but before the financial statements were issued and has determinedare issued. Based on this evaluation, the Company concluded that there are no itemsthe following subsequent event require disclosure to disclose.the financial statements.

On December 6, 2018, the Company amended its Articles of Incorporation with the Nevada Secretary of State to change its name to Cannis, Inc.

10 |Page13

FORWARD LOOKING STATEMENTSSTATEMENT NOTICE

Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

Financial information contained in this quarterly report and in our unaudited interim financial statements is stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.

GENERAL

We were incorporated in the State of Nevada on August 17, 2016 under the name Zartex, Inc. On December 6, 2018, we changed our name to Cannis, Inc.  From inception until November 14, 2018, the Company’s principal business consisted of software development.

Effective November 14, 2018, a change of control occurred with respect to Zartex, Inc. (“Company”). Pursuant to a Securities Purchase Agreement entered into by and among the Company, Mr. Aleksandr Zausaev (“Seller”) and Mr. Eu Boon Ching (“Buyer”), Buyer acquired from Seller 5,000,000 shares of common stock of Company. In addition, pursuant to a separate Stock Purchase Agreement by and among Mr. Ching, as buyer, and certain other shareholders of the Company, Mr. Ching acquired an additional 1,335,000 shares of common stock of the Company. The total number of shares of common stock acquired by Mr. Ching is 6,335,000, and all such shares now held by Mr. Ching are “restricted” and/or “control” securities.

On the closing of the above transaction, Mr. Zausaev, the then sole officer and director of the Company, resigned in all officer and director capacities from the Company and Mr. Ching was appointed the sole officer of the Company (Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer) and a sole Director of the Company. At closing, the Company assigned all of its assets to Mr. Zausaev in exchange for certain considerations including his cancellation and waiver of all outstanding liabilities of the Company in favor of the former sole officer and director.

Effective immediately at closing, the Company permanently ceased its previous operating activities of software development. Consequently, the Company is now a shell company seeking to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders.

As mentioned above, on December 6, 2018, the Company amended its Articles of Incorporation with the Nevada Secretary of State to effect the name change of the Company to Cannis, Inc. (“Corporate Action”). On November 29, 2018, our majority stockholder, holding 99% of our outstanding voting securities approved the Corporate Action.

14

DESCRIPTION OF BUSINESS

We are a software company and deliver the services for garment distribution industry. Our main service is the IT product for garment retailers. We deliver a software product (to which we may refer as a program, a web-engine or an application), the visible part of which we plan to design in a form of a web catalogue. With many offers in the garment industry producers and retailers might experience difficulties in delivering their offer to their potential customers. Customers might feel insecure about how their actual size matches to the size of clothing displayed on the retailer’s or producer’s website. We expect that employment of our program can make it easier to advertise and sell garment items, for retailers, select and buy, for garment buyers.

Our main customers are online and real stores involved in clothing distribution to whom we plan to sell our software and customize precisely to their needs. The users of the application who are the retailers’ customers are our indirect customers whom we do not charge for using the software. We deliver our software together with the buyers aligned website which holds a catalogue of various brands clothing items listed in it. For the users, our application within the website will perform only informing functions with the possibility to reserve the items chosen in the most convenient outlet, with the most reasonable price (to the user’s mind). Our software has programming engine which can be used many times for our customers. We sell the software and the service of software customization for every potential client. The software cannot be used separately from software customization because of garment retailers have their individual products, prices, service etc. Our software is an application which can be used in our customers’ web-catalogs or on any supported devices. We retain the rights to use our software with to use the “Match Me” software and its feature in our future product offerings.

In order to gain our customer’s awareness, we come to the market with highly adaptive web engine which might be tweaked to the needs of the end user. We expect that coding a mobile application might give our software wider popularity among customers. The mobile application might be used as both a mobile version of the web catalogue and a measuring device. The mobile application will use the algorithm of the Rule of Perspective to compare clothing sizes on the store to those of the customers. Provided that a customer takes a photo of a real size object, adjusts it to fit the marked frame in the application it displays if the chosen garment can fit the customer.

11 |Page

Our application users may also enable “Match Me” feature which we plan to deliver within the application. “Match Me” is expected to use the algorithm of analyzing the data provided by user in order to make lists of clothing styles (with actual items from the stores that we plan to partner up with), and the information concerning the price, the brand, the store to be on display. It is quite obvious that people stick to a clothing style due to the preferences in music (for instance, rock listeners are likely to wear leather), movies (some people might copy the styles of the favorite actors in certain films) health style (people involved in yoga might prefer natural materials to synthetic ones) and other preferences. Enabling “Match Me” feature, a user goes through a simple multiple-choice questionnaire including the questions about the preferences, actual season and mood in order to receive the possible clothing combinations.  The engine of our web catalogue is supposed to be built in the way that it displays garment items regardless the brand awareness, which may help small brands and individual designers to make their way to general public. We expect that our program can also inspire the competition between retailers, which may result in a number of various offers for clothing buyers, thus helping us to receive awareness and to involve as many retailers in our project as possible.

Provided that retailers show their interest in our program, we may come to a certain retailer outlet with an additional item - “Match Me Box”, a computerized installment. We plan to configure the “Match Me Box” in a similar way that “Match Me” feature of the application works. This “Match Me Box” is schemed to be installed in shopping centres for the customers, who have a certain idea (or no ideas) of what to acquire but feel disoriented by the overwhelming number of outlets in a store.

RESULTS OF OPERATIONOPERATIONS

As of May 31,THREE MONTHS PERIOD ENDED NOVEMBER 30, 2018 we have accumulated a deficit of $42,769. We anticipate that we will continue to incur losses in the next 12 months. Our financial statements have been prepared assuming that we will continue as a going concern.  We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.COMPARED TO THE THREE MONTHS PERIOD ENDED NOVEMBER 30, 2017

Three Month Period Ended May 31, 2018 compared to Three Month Period Ended May 31, 2017  Revenues

Revenue

During the three months ended May 31,November 30, 2018 the Company hasand November 30, 2017, respectively, we did not generatedhave any revenue from operations.

Operating Expenses

During the three months ended November 30, 2018, we incurred general and administrative expenses of $21,458, compared to $16,300$7,796 in such expenses during the three months ended November 30, 2017, an increase of $13,662 from the prior year. The increase in general and administrative expenses is due to $11,672 in property and equipment and intangible assets write-off due to the change of control of the Company. Our loss from operations for the three months ended May 31, 2017.

Operating Expenses

During the three-months period ended May 31, 2018, we incurred $13,311 in general and administrative expenses compared to $6,964 during three-month period ended May 31, 2017. General and administrative and professional fee expenses incurred generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting and developmental costs.

Our net loss for the three-months period ended May 31,November 30, 2018 was $13,311$21,458 compared to net loss of $163 during three-month period ended May 31, 2017.

Nine Month Period Ended May 31, 2018 compared to Nine Month Period Ended May 31, 2017  

Revenue

During the nine months ended May 31, 2018, the Company has not generated any revenue compared to $21,300 during nine-month period ended May 31, 2017.

Operating Expenses

During the nine-months period ended May 31, 2018, we incurred $24,073 in general and administrative expenses compared to $17,266 in general and administrative expenses and $10,000 in software development cost during nine-month period ended May 31, 2017. General and administrative and professional fee expenses incurred generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting and developmental costs.

Our net loss for the nine-months period ended May 31, 2018 was $24,073 compared to 16,465 during nine-month period ended May 31, 2017.

12 |Page

LIQUIDITY AND CAPITAL RESOURCES

As at May 31, 2018 our total assets were $30,087 compared to $40,125 in total assets at August 31, 2017.  The decrease in total assets was due to decrease in cash. As at May 31, 2018, our current liabilities were $41,056.

Stockholders’ equity was $13,104 as of August 31, 2017 compared to stockholders’ deficit of $10,969 as of May 31, 2018.

Cash Flows from Operating Activities

For the nine-months period ended May 31, 2018, net cash flows used in operating activities was $19,148 consisting of net loss of $24,073, with an increase in accounts payable of $1,997 and increase in depreciation and amortization expenses of $2,928; as compared to net cash flows used in operating activities of $14,965 consisting net loss of $16,465 with an increase in accounts payable of $1,500$7,796 for the same period ended in 2017.last year.

Cash Flows from Investing ActivitiesOther Income

During the three months ended November 30, 2018, we had a forgiveness of debt by the Company’s former sole officer and director and controlling shareholder in the amount of $35,236 in connection with the change of control which occurred on November 14, 2018. During the three months ended November 30, 2017, we did not have a similar forgiveness of related party debt.

ForNet Income/(Loss)

During the ninethree months period ended May 31,November 30, 2018 cash flows used in investing activities was $0 as compared to $3,500 used in investing activitiesand November 30, 2017, respectively, we generated have a net income of $13,778 and a net loss of $7,796, for purchases of equipment same period ended in 2017.reasons discussed above.

Cash Flows from Financing Activities

Cash flows provided by financing activities during the nine-months period ended May 31, 2018 was $12,038 consisting entirely of loan from shareholder as compared to net cash provided by financing activities of $49,899 consisting $31,800 as proceeds from stock issuance and $18,099 as loan from shareholder for the same period in 2017.

PLAN OF OPERATIONLIQUIDITY AND FUNDINGCAPITAL RESOURCES

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

Existing working capital, further advances by related party and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next twelve months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business;business and (iii)(ii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

As at November 30, 2018, our working capital deficit was $4,100 compared with a working capital deficit of $29,550 as at August 31, 2018. The decrease for the current period is due to the forgiveness of related party debt by the Company’s former sole officer, director and controlling shareholder. As a result, the Company has cash used in operating activities of $14,639 for the three months ended November 30, 2018 as compared to $5,120 for the same period in 2017.

.  

During the three months period ending November 30, 2018, the Company received a loan from an affiliate of the Company’s current sole officer and director and controlling shareholder in the amount of $4,100 and repaid $6,900 to the Company’s former sole officer, director and controlling shareholder. As a result, the Company has cash used in financing activities of $2,800 for the three months ended November 30, 2018.

There were 6,340,000 shares of common stock issued and outstanding as of August 31, 2018 and November 30, 2018, respectively.

GOING CONCERN

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company currently has no assets, no business or recurring income which raises substantial doubt about its ability to continue as a going concern.

The ability to continue as a going concern is dependent upon the Company’s ability to merger with or acquire profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. There is no assurance that this series of events will be satisfactorily completed.

OFF-BALANCE SHEET ARRANGEMENTSARANGEMENTS

As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

13 |Page

GOING CONCERN

The independent auditors' report accompanying our August 31, 2017 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company iswe are not required to provide information required by this Item.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure ControlsOur management is responsible for establishing and Procedures

Ourmaintaining a system of disclosure controls and procedures are(as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms offorms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the Securitiesreports that it files or submits under the Exchange Act is accumulated and Exchange Commission. Ourcommunicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was conducted under the supervision and accounting officer have reviewedwith the participation of our management of the effectiveness of our “disclosure controlsthe design and procedures” (as defined in the Securities Exchange Actoperation of 1934 Rules 13(a)-15(e) and 15(d)-15(e)) within the end of the period covered by this Quarterly Report on Form 10-Q and have concluded that theour disclosure controls and procedures areas of November 30, 2018 Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that material information relatingrequired to be disclosed in the Companyreports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in a timely manner.

15

Changes in Internal Controls over Financial Reporting

There have been

SEC rules and forms. Management also confirmed that there was no changeschange in the Company'sour internal control over financial reporting during the last quarterlythree-month period covered by this reportended November 30, 2018 that havehas materially affected, or areis reasonably likely to materially affect, the Company'sour internal control over financial reporting.

ITEM 1. LEGAL PROCEEDINGSWe know of no material, existing or pending legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation.  There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

Management is

As a "smaller reporting company" as defined by Item 10 of Regulation S-K, we are not aware of any legal proceedings contemplatedrequired to provide information required by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.Item.

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

No equity securities were sold during the nine-month period ended May 31, 2018.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

No senior securities were issued and outstanding during the nine-month period ended May 31, 2018.

14 |Page

Not applicable to our Company.

ITEM 5. OTHER INFORMATIONNone

None.

ITEM 6. EXHIBITSThe following exhibits are included as part of this report by reference:

Exhibits:

31.1		Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
31.2		Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
32.1		Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.

31.1 32.2

Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)

32.1 Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 20022002.

101.INS  XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document17

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

In accordance withPursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.