M2i Global, Inc. 10-K

Item 8. Financial Statements and Supplementary Data 8 INKY FINANCIAL STATEMENTS TABLE OF CONTENTS Page Report of Independent Registered Public Accounting Firm 10 Balance Sheets as of November 30, 2020 and 2019 11 Statements of Operations for the years ended November 30, 2020 and 2019 12 Statement of Stockholders ’ Deficit as of November 30, 2020 and 2019 13 Statements of Cash Flows for the years ended November 30, 2020 and 2019 14 Notes to the Audited Financial Statements 15 9 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM _______________________________________________________________________________________________________ To the Board of Directors and Stockholders INKY Inc. Opinion on the Financial Statements We have audited the accompanying balance sheets of INKY Inc. (the Company) as of November 30, 2020 and 2019, and the related statements of operations, changes in stockholders ' equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of November 30, 2020 and 2019, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Consideration of the Company ' s Ability to Continue as a Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has suffered losses and has minimal operations which raise substantial doubt about its ability to continue as a going concern. Management ’ s plans in regard to these matters are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis for Opinion These financial statements are the responsibility of the Company ' s management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company ’ s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. /s/ Pinnacle Accountancy Group of Utah We have served as the Company ’ s auditor since 2019. Pinnacle Accountancy Group of Utah (a dba of Heaton & Company, PLLC) Farmington, Utah February 1, 2021 10 INKY BALANCE SHEETS As of November 30, 2020 As of November 30, 2019 ASSETS CURRENT ASSETS Cash and cash equivalent $ 11,312 $ 391 Prepaid expenses 379 — Total Current Assets 11,691 391 TOTAL ASSETS $ 11,691 $ 391 LIABILITIES AND STOCKHOLDERS ’ DEFICIT LIABILITIES Current Liabilities Related-party loan $ 27,545 $ 16,676 Total Current Liabilities 27,545 16,676 Total Liabilities 27,545 16,676 STOCKHOLDERS ’ DEFICIT Common stock, $0.001 par value, 75,000,000 shares authorized; 4,654,200 and 4,000,000 shares issued and outstanding as of November 30, 2020 and 2019, respectively 4,654 4,000 Additional paid-in capital 18,972 — Accumulated deficit (39,480) (20,285) Total stockholders ’ deficit (15,854) (16,285) TOTAL LIABILITIES AND STOCKHOLDERS ’ DEFICIT $ 11,691 $ 391 The accompanying notes are an integral part of these audited financial statements. 1 1 INKY STATEMENTS OF OPERATIONS For the year ended November 30, 2020 For the year ended November 30, 2019 EXPENSES General and administrative expenses $ 19,195 15,385 Total expenses 19,195 15,385 INCOME (LOSS) BEFORE TAX PROVISION $ (19,195) (15,385) INCOME TAX PROVISION $ — — NET INCOME (LOSS) $ (19,195) (15,385) WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED 4,111,800 4,000,000 BASIC AND DILUTED NET LOSS PER SHARE $ (0.00) (0.00) The accompanying notes are an integral part of these audited financial statements. 1 2 INKY STATEMENT OF CHANGES IN STOCKHOLDER S ’ DEFICIT For the years ended November 30, 2020 and 2019 Common stock Additional Total paid-in Accumulated stockholders ’ Shares Amount capital deficit deficit Balance, November 30, 2018 4,000,000 $ 4,000 $ — $ (4,900) $ (900) Net income (loss) — — — (15,385) (15,385) Balance, November 30, 2019 4,000,000 $ 4,000 $ — $ (20,285) $ (16,285) Issuance of common stock for cash 654,200 654 18,972 — 19,626 Net income (loss) — — — (19,195) (19,195) Balance, November 30, 2020 4,654,200 $ 4,654 $ 18,972 $ (39,480) $ (15,854) The accompanying notes are an integral part of these audited financial statements. 1 3 INKY STATEMENTS OF CASH FLOWS As of November 30, 2020 As of November 30, 2019 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) $ (19,195) $ (15,385) Adjustments to reconcile net loss to net cash used in operating activities: Prepaid rent — 1,950 Prepaid expenses (379) — Accounts payable — (2,000) Net cash flows used in operating activities (19,574) (15,435) CASH FLOWS FROM FINANCING ACTIVITIES Related-party loan 10,869 10,676 Proceeds from sell of common stock 19,626 — Net cash flows provided by financing activities $ 30,495 $ 10,676 NET DECREASE IN CASH $ 10,921 $ (4,759) CASH, BEGINNING OF PERIOD $ 391 $ 5,150 CASH, END OF PERIOD $ 11,312 $ 391 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for interest $ — $ — Cash paid for income tax $ — $ — The accompanying notes are an integral part of these audited financial statements. 1 4 INKY NOTES TO THE AUDITED FINANCIAL STATEMENTS NOVEMBER 30, 2020 AND 2019 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. Inky ( “ we, ” “ us, ” or the “ Company ” ) develops, publishes and markets mobile software application for smartphones and tablet devices ( “ Apps ” ). Inky is engaged in the mobile applications develop ment area. Inky is an “ 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 designs by different tattoo artists that can be tested virtually via the automation of smartphone-powered augmented reality placing pixels on your flesh 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 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 November 3 0 , 20 20 . 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 financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America ( “ U.S. GAAP ” ) and pursuant to the rules and regulations of the SEC. 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. 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 November 30, 2020 and 2019, 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. 1 5 INKY NOTES TO THE AUDITED FINANCIAL STATEMENTS Note 3 — Summary of Significant Accounting Policies (cont.) 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 $11,312 of cash and cash equivalents as of November 30, 2020 ($391 as of November 30, 2019). 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 November 30, 2020. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of November 30, 2020 and 2019, 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. 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 year ended November 30, 2020, the Company issued 654,200 shares of common stock for cash proceeds of $19,626 at $0.03 per share. There were 4,654,200 and 4,000,000 shares of common stock issued and outstanding as of November 30, 2020 and 2019, respectively. 1 6 INKY NOTES TO THE AUDITED FINANCIAL STATEMENTS Note 5 — Related Party Transactions During the year ended November 30, 2019, the Company ’ s director loaned to the Company $10,676. During the year ended November 30, 2020, the Company ’ s director loaned to the Company $10,869. As of November 30, 2020, our sole director has loaned to the Company $27,545. This loan is unsecured, non-interest bearing and due on demand. Note 6 – Income Tax Provision Deferred Tax Assets As of November 30, 2020, the Company had net operating loss ( “ NOL ” ) carry – forwards for Federal income tax purposes of $39,480. No tax benefit has been recorded with respect to these net operating loss carry-forwards in the accompanying financial statements as the management of the Company believes that the realization of the Company ’ s net deferred tax assets of approximately $8,291 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance. Deferred tax assets consist primarily of the tax effect of NOL carry-forwards which was used to offset tax payable from prior year ’ s operations. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realization. The current valuation of tax allowance is n/a as of November 30, 2020 and 2019. Components of deferred tax assets are as follows: For the Year Ended November 30, 2020 For the Year Ended November 30, 2019 Net Deferred Tax Asset Non-Current: Net Operating Loss Carry-Forward $ 39,480 $ 20,285 Effective tax rate 21 % 21 % Expected Income Tax Benefit from NOL Carry-Forward 8,291 4,260 Less: Valuation Allowance (8,291) (4,260) Deferred Tax Asset, Net of Valuation Allowance $ - $ - Income Tax Provision in the Statement of Operations A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income taxes is as follows: For the Year Ended November 30, 2020 Federal statutory income tax rate 21 % Increase (reduction) in income tax provision resulting from: Net Operating Loss (NOL) carry-forward (21) % Effective income tax rate 0 % 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 other than those described below. During December 2020 the Company issued 181,823 shares of common stock for cash proceeds of $5,455 at $0.03 per share. During January 2021 the Company issued 122,000 shares of common stock for cash proceeds of $3,660 at $0.03 per share. 1 7 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure There was a change in auditors from KSP Group Inc to Heaton & Company, PLLC in December 2019. The change was made with no disagreements between the parties.