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Item 8. Financial Statements and Supplementary Data

2022-02-28 compared with 2021-02-02 · 189 added, 115 removed, 93 unchanged (77% of the section changed)

Financial Statements and Supplementary Data

Financial Statements and Supplementary

FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm ( PCAOB ID:

Balance Sheets as of November 30, 2021 and 2020

Statements of Operations for the years ended November 30, 2021 and 2020

Statement of Stockholders Deficit as of November 30, 2020 and 2019

Statements of Changes in Stockholders’ Deficit as of November 30, 2021 and 2020

Statements of Cash Flows for the years ended November 30, 2021 and 2020

Notes to the Audited Financial Statements

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

_______________________________________________________________________________________________________

To the Board of Directors and Stockholders INKY Inc.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING

To the Board of Directors and Stockholders

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.

We have audited the accompanying balance sheets

(the Company) as of November 30, 2021 and 2020, 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, 2021 and 2020, 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 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

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.

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

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

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

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.

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 audits provide a reasonable basis for our opinion.

/s/ Pinnacle Accountancy Group of Utah

13 unchanged sentences

Current Liabilities

Accounts payable

Related-party loan

2 unchanged sentences

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

Common stock, $ 0.001 par value, 75,000,000

shares authorized;

5,092,023 and 4,654,200 shares issued

and outstanding as of November 30, 2021 and 2020, respectively

Additional paid-in capital

2 unchanged sentences

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

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

The accompanying notes are an integral part of these

financial statements.

STATEMENTS OF OPERATIONS

For the year ended

November 30, 2021

4 unchanged sentences

INCOME (LOSS) BEFORE TAX PROVISION

INCOME TAX PROVISION

NET INCOME (LOSS)

INCOME TAX EXPENSE

WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED

BASIC AND DILUTED NET LOSS PER SHARE

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

STATEMENT OF CHANGES IN STOCKHOLDER S DEFICIT

The accompanying notes are an integral part of these

financial statements.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

For the years ended November 30, 2021 and 2020

Additional paid-in capital

stockholders’

Balance, November 30, 2019

Issuance of common stock

Net income (loss)

3 unchanged sentences

Balance, November 30, 2021

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

The accompanying notes are an integral part of these

financial statements.

STATEMENTS OF CASH FLOWS

As of November 30,

November 30, 2021

November 30, 2020

CASH FLOWS FROM OPERATING ACTIVITIES

5 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from sale of common stock

Related-party loan

Proceeds from sell of common stock

Net cash flows provided by financing activities

NET DECREASE IN CASH

NET INCRESE (DECREASE) IN CASH

CASH, BEGINNING OF PERIOD

3 unchanged sentences

Cash paid for income tax

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

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.

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.

The accompanying notes are an integral part of these

financial statements.

NOTES TO THE FINANCIAL

NOVEMBER 30, 2021

Note 1 — Description of Organization

and Business Operations

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

A user gets to try on a virtual tattoo on their body in real-time.

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

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

Going Concern

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 30, 2021.

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

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.

anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses.

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.

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.

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.

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.

NOTES TO THE FINANCIAL

NOVEMBER 30, 2021

Note 3 — Summary of Significant

Accounting Policies (cont.)

(Loss) Per Common Share

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, 2021 and 2 020, 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.

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.

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).

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.

Cash Equivalents

Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents.

had $114 of cash and cash equivalents as of November 30, 2021 ($11,312 as of November 30, 2020).

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.

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, 2021.

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.

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.

recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense.

As of November 30, 2021, and November

30, 2020, 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.

NOTES TO THE FINANCIAL

NOVEMBER 30, 2021

Note 3 — Summary of Significant

Accounting Policies (cont.)

and Development Policy

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.

Development Policy

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.

Accounting Pronouncements

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.

Stockholders’ Equity

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.

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.

the year ended November 30, 2021, the Company issued 437,823 shares of common stock for cash proceeds of $13,134 at $0.03 per share.

were 5,092,023 and 4,654,200 shares of common stock issued and outstanding as of November 30, 2021, and 2020, respectively.

Related Party Transaction s

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

the year ended November 30, 2021, the Company’s director loaned to the Company $10,849.

of November 30, 2021, our sole director has loaned to the Company $38,394.

This loan is unsecured, non-interest bearing and due on demand.

Note 6 Income Tax Provision

NOTES TO THE FINANCIAL

NOVEMBER 30, 2021

Note 6 — Prepaid Expenses

of November 30, 2021, the prepaid balance was as follows:

As of November

Application development

Prepaid business license fees

Total prepaid expenses

Note 7 – 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.

As of November 30, 2021, the Company

had net operating loss (“NOL”) carry–forwards for Federal income tax purposes of $57,317.

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 $12,037 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:

current valuation of tax allowance is $12,037 and $8,291 as of November 30, 2021 and 2020, respectively.

Components of deferred tax assets

are as follows:

For the Year Ended

8 unchanged sentences

Deferred Tax Asset, Net of Valuation Allowance

NOTES TO THE FINANCIAL

NOVEMBER 30, 2021

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:

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

5 unchanged sentences

Note 8 – 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.

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.

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.

Changes in and Disagreements with Accountants

on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data