The accompanying notes are an integral part of these
condensed unaudited financial statements.
The accompanying notes are an integral part of these
condensed unaudited financial statements.
The accompanying notes are an integral part of these
condensed unaudited financial statements.
NOTES TO THE CONDENSED
UNAUDITED FINANCIAL STATEMENTS
For the three months
ended February 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. The company (“we,” “us,”
or the “Company”) plans to develop, publish and market mobile software application for smartphones and tablet devices (“Apps”).
It is an ‘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
AR. A user gets to try on a virtual tattoo on their body 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 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, 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 three months
ended February 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 February
28, 2022 and 2021, 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.
Cash 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 $114 of cash and cash equivalents as of February 28, 2022 ($114 as of November 30, 2021).
Income
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 February 28, 2022. The Company
recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of February 28, 2022, and November
30, 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 three months
ended February 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.
Recent 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 three months ended February 28, 2021, the Company issued 370,156 shares of common stock for cash proceeds of $11,104 at $0.03 per
share.
There
were 5,092,023 and 5,092,023 shares of common stock issued and outstanding as of February 28, 2022, and November 30, 2021, respectively.
Note 5 —
Related Party Transactions
During
the year ended November 30, 2021, the Company’s director loaned to the Company $10,849.
During
the three months period ended February 28, 2022, the Company’s director loaned to the Company $1,619.
As
of February 28, 2022, our sole director has loaned to the Company $40,013. This loan is unsecured, non-interest bearing and due on demand.
12
INKY
NOTES TO THE CONDENSED
UNAUDITED FINANCIAL STATEMENTS
For the three months
ended February 28, 2022
Note 6 — Prepaid Expenses
As
of February 28, 2022, the prepaid balance was as follows:
|
|
As of February
28, 2022 |
|
|
|
Application development |
$ |
18,800 |
Prepaid business license fees |
|
217 |
Total prepaid expenses |
$ |
19,017 |
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.