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INKY

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

(Unaudited) 

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

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INKY

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS

For the sixthree months ended May 31, 2021February 28, 2022

Note 1 — Description of Organization and Business Operations

Inky is a startup corporation, registered under the laws in the State of Nevada on June 12, 2018. InkyThe company (“we,” “us,” or the “Company”) develops, publishesplans to develop, publish and marketsmarket mobile software application for smartphones and tablet devices (“Apps”). It is an “AR”‘augmented reality’ (AR) app aiming to help users decide what and where to ink without having to regret the tattoo after the fact. The app includes a selection of tattoo sketches by different artists that can be virtually placed via smartphone-powered augmented reality.AR. A user gets to try on a virtual tattoo on their fleshbody in real-time.

Our principal executive office is located at 24 Penteliss, Limassol 4102, Cyprus.

The Company’s functional and reporting currency is the U.S. dollar.

Note 2 – Going Concern

The accompanying unaudited condensed financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. As a startup company, the Company had no revenues and incurred losses as of May 31, 2021.February 28, 2022. The Company currently has limited working capital and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it will be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

At this time any results of financial impact of the COVID-19 pandemic cannot be reasonably estimated now but it may have a material adverse impact on our business, financial condition and results of operations.

Note 3 — Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC"), including the instructions to Form 10-Q and Regulation S-X. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"), have been condensed or omitted from these statements pursuant to such rules and regulations and, accordingly, they do not include all the information and notes necessary for comprehensive financial statements and should be read in conjunction with our audited financial statements  included in our Annual Report on Form 10-K for the year ended November 30, 2020.2021.

In the opinion of management, all adjustments (consisting of normal accruals) considered for a fair presentation have been included. The Company’s year-end is November 30.

INKY

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS

For the sixthree months ended May 31, 2021February 28, 2022

Note 3 — Summary of Significant Accounting Policies (cont.)

Net Income (Loss) Per Common Share

The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. As of May 31,February 28, 20212022 and 2020,021, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares of common stock and then share in the earnings of the Company. As a result, diluted loss per share is the same as basic loss per share for the periods presented.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the Company’s 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.

CCashash and Cash Equivalents

The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had $1,631$114 of cash and cash equivalents as of May 31, 2021February 28, 2022 ($11,312114 as of November 30, 2020)2021).

IIncomencome Taxes

The Company follows the asset and liability method of accounting for income taxes under FASB ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. There were no unrecognized tax benefits as of May 31, 2021.February 28, 2022. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of May 31, 2021,February 28, 2022, and November 30, 2020,2021, no amounts have been accrued for the payment of interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

INKY

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS

For the sixthree months ended May 31, 2021February 28, 2022

Note 3 — Summary of Significant Accounting Policies (cont.)

Research and Development Policy

ASC 730, “Research and Development”, addresses the proper accounting and reporting for research and development costs. It identifies those activities that are to be identified as research and development, the elements of costs that shall be identified with research and development activities, the accounting for these costs, and the financial statement disclosures related to them. Costs and expenses that can be clearly identified as research and development are charged to expense as incurred.

Software Development Policy

The Company follows the provisions of ASC 985, “Software”, which requires that all costs relating to the purchase or internal development and production of software products to be sold, leased or otherwise marketed, be expensed in the period incurred unless the requirements for technological feasibility have been established.

RRecentecent Accounting Pronouncements

The Company reviews new accounting standards as issued. Management has not identified any new standards that it believes will have a significant impact on the Company’s financial statements.

Note 4 – Stockholders’ Equity

Upon formation the total number of shares of all classes of stock which the Company is authorized to issue is Seventy-Five Million (75,000,000) shares of Common Stock, par value $0.001 per share.

During the yearthree months ended November 30, 2020,February 28, 2021, the Company issued 654,200370,156 shares of common stock for cash proceeds of $19,626 at $0.03 per share.

During the six months ended May 31, 2021, the Company issued 437,823 shares of common stock for cash proceeds of $13,134$11,104 at $0.03 per share.

There were 5,092,023 and 4,654,2005,092,023 shares of common stock issued and outstanding as of May 31, 2021,February 28, 2022, and November 30, 2020,2021, respectively.

Note 5 — Related Party Transactions

During the year ended November 30, 2020, the Company’s director loaned to the Company $10,869.

During the six months period ended May 31, 2021, the Company’s director loaned to the Company $199.$10,849. 

During the three months period ended February 28, 2022, the Company’s director loaned to the Company $1,619. 

As of May 31, 2021,February 28, 2022, our sole director has loaned to the Company $27,744.$40,013. This loan is unsecured, non-interest bearing and due on demand.

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INKY

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS

For the sixthree months ended May 31, 2021

February 28, 2022

Note 6 — Prepaid Expenses

As of May 31, 2021,February 28, 2022, the prepaid balance was was as follows:

Note 7 – Subsequent Events

The Company has evaluated all subsequent events through the date when the financial statements were issued to determine if they must be reported.  The Company determined that there were no reportable subsequent events to disclose in these financial statements.

Overview

Inky is a company,was incorporated in the State of Nevada on June 12, 2018. InkyThe Company (“we,” “us,” or the “Company”) develops, publishes and markets mobile software application for smartphones and tablet devices (“Apps”). Inky is engaged in mobile applications development. Inky facilitateshelps the User decidingdecide what and where they want to ink without having to actually commence the tattoo procedure. Theget an actual tattoo. User simply utilizes Inky to have preview of a proposed tattoo. Then the tattoo technician utilizes the User phone’s camera to position and overlay the proposed tattoo. Users will be able to download our ApplicationApp through direct-to-consumer digital storefronts, such as the Apple App Store and Google Play Market.

We plan to generate revenue from sales, or downloads, of our App and from advertisements published on our ad supported app titles.

The member of our management has accumulated significant experience, knowledge and contacts across the key disciplines in the digital and mobile industries. This encompasses digital and social media sales, advertising, operations, and technology and product development and deployment. We expect to leverage management’s industry experience and contacts to our advantage.

Sales, Marketing and Distribution

We plan to market, sell and distribute our Inky Apps exclusively through Apple’s App Store and through the Google Play Store, the largest direct-to-consumer digital storefronts. We expect that a majority of our revenues will be derived from sales on the Apple App Store.

Competition

Developing and distributing Apps is a highly competitive business, characterized by frequent product introductions and rapidly emerging new platforms, technologies and storefronts. With respect to competing for consumers of our app, we will compete primarily on the basis of app quality, brand and customer reviews. We will compete for promotional and digital storefront placement based on these factors, as well as our relationship with the storefront owner, historical performance, perception of sales potential and relationships with licensors of brands, properties and other content.

We believe that our small size will provide us a competitive edge for the time being and allow us to make quick decisions as to product development to take advantage of consumer preferences at a particular point in time.

With respect to our App, we compete with a continually increasing number of companies, including industry leaders such as Activision, DeNA, Electronic Arts (EA Mobile), Apploft, GREE, GungHo Online Entertainment, King Digital Entertainment, Nexon, Warner Brothers and Zynga and many well-funded private companies, including Kabam, Machine Zone, Rovio, Storm 8/Team Lava and Supercell. We could also face increased competition if large companies with significant online presences such as Apple, Google, Amazon, Facebook or Yahoo, choose to enter or expand in the apps space or develop competing apps. One of the main competitors is the InkHunter, whose prototype application is similar to ours. But we believe we are also a good competitor.

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In addition, given the open nature of the development and distribution for smartphones and tablets, we also compete or will compete with a vast number of small companies and individuals in all of our segments who are able to create and launch Apps and other content for these devices using relatively limited resources and with relatively limited start-up time or expertise.

Most of our competitors and our potential competitors have one or more advantages over us, including:

· significantly greater financial and personnel resources;

· stronger brand and consumer recognition;

· the capacity to leverage their marketing expenditures across a broader portfolio of mobile and non-mobile products;

· more substantial intellectual property of their own;

· lower labor and development costs and better overall economies of scale; and

· broader distribution and presence.

Government Regulation

We are subject to various federal, state and international laws and regulations that affect our business, including those relating to the privacy and security of customer and employee personal information and those relating to the Internet, behavioral tracking, mobile applications, advertising and marketing activities, and sweepstakes and contests. Additional laws in all of these areas are likely to be passed in the future, which could result in significant limitations on or changes to the ways in which we can collect, use, host, store or transmit the personal information and data of our customers or employees, communicate with our customers, and deliver products and services, may significantly increase our compliance costs. As our business expands to include new uses or collection of data that are subject to privacy or security regulations, our compliance requirements and costs will increase and we may be subject to increased regulatory scrutiny.

Employees

We are a start-up company and currently have one employee only - Ioanna Kallidou, our president, treasurer, secretary and director. We intend to outsource any additional services if the business requires.

Results of Operations for the Three Months Ended May 31, 2021February 28, 2022 and 2020:2021:

During the three months ended May 31,February 28, 2022 and 2021, and 2020, we have not generated any revenues.

Our net loss for the three-month period ended May 31,February 28, 2022 and 2021, was $11,501 and 2020, were $1,842 and $6,289 accordingly.$2,697 respectively. This was due to an increase in our general and administrative expenses related to operations of the Company. The decrease in operating expenses is due to a decrease in audit fees.

Results of Operations for the Six Months Ended May 31, 2021Liquidity and 2020:

During the six months ended May 31, 2021 and 2020, we have not generated any revenues.Capital Resources

OurNet cash flows used in operating activities for the three months ended February 28, 2022, consisted of a net loss of $11,501, prepaid expenses of $325, accrued payroll of $10,500 and accounts payable of $943. Net cash flows used in operating activities for the six-month periodthree months ended May 31,February 28, 2021, consisted of a net loss of $2,697 and 2020, were $4,539prepaid expenses $18,800.

Net cash flows provided by financing activities for the three months ended February 28, 2022, consisted of related-party loans of $1,619. Net cash flows provided by financial activities for the three months ended February 28, 2021, consisted of related-party loans of $199 and $12,992 accordingly. This was due to our general and administrative expenses related to operationssale of the Company. common stock of $11,104.The decrease in operating expenses is due to a decrease in audit fees.

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Liquidity and Capital Resources

Net cash flows used in operating activities for the six months ended May 31, 2021, consisted of a net loss of ($4,539) and prepaid expenses ($18,475). Net cash flows used in operating activities for the six months ended May 31, 2020, consisted of a net loss ($12,992) and accounts payable $3,175.

Net cash flows provided by financing activities for the six months ended May 31, 2021, consisted of related-party loans for $199 and sale of common stock for $13,134. Net cash flows provided by financial activities for the six months ended May 31, 2020, consisted of related-party loans for $8,000 and sale of common stock for $2,400.

Off-Balance Sheet Arrangements

As of May 31, 2021,February 28, 2022, we did not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations liquidity, capital expenditures or capital resources.

Limited Operating History and Need for Additional Capital

There is no historical financial information about us upon which to base an evaluation of our performance. We are in start-up stage operations and have generated limited revenues. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.

We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

Not Applicable.

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation as of May 31, 2021,February 28, 2022, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, who are one and the same, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(f) and 15d–15(e)). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

During the period ending May 31, 2021,February 28, 2022, there were no pending or threatened legal actions against us.

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As a smaller reporting company, we are not required to provide the information required by this Item.

Not Applicable.

Not Applicable.

Not Applicable.

There is no other information required to be disclosed under this item that has not previously been reported.

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SIGNATURES

Pursuant 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.

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