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 ( PCAOB ID: 6117 ) 10 Balance Sheets as of November 30, 2021 and 2020 11 Statements of Operations for the years ended November 30, 2021 and 2020 12 Statements of Changes in Stockholders’ Deficit as of November 30, 2021 and 2020 13 Statements of Cash Flows for the years ended November 30, 2021 and 2020 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, 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 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 audits provide 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 11, 2022 10 INKY BALANCE SHEETS As of November 30, 2021 As of November 30, 2020 ASSETS CURRENT ASSETS Cash and cash equivalent $ 114 $ 11,312 Prepaid expenses 19,342 379 Total Current Assets 19,456 11,691 TOTAL ASSETS $ 19,456 $ 11,691 LIABILITIES AND STOCKHOLDERS’ DEFICIT LIABILITIES Current Liabilities Accounts payable 1,619 — Related-party loan 38,394 27,545 Total Current Liabilities 40,013 27,545 Total Liabilities 40,013 27,545 STOCKHOLDERS’ DEFICIT 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 5,092 4,654 Additional paid-in capital 31,668 18,972 Accumulated deficit ( 57,317 ) ( 39,480 ) Total stockholders’ deficit ( 20,557 ) ( 15,854 ) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 19,456 $ 11,691 The accompanying notes are an integral part of these financial statements. 11 INKY STATEMENTS OF OPERATIONS For the year ended November 30, 2021 For the year ended November 30, 2020 EXPENSES General and administrative expenses $ 17,837 $ 19,195 Total expenses 17,837 19,195 INCOME (LOSS) BEFORE TAX PROVISION $ ( 17,837 ) $ ( 19,195 ) INCOME TAX EXPENSE - - NET LOSS $ ( 17,837 ) $ ( 19,195 ) WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED 5,092,023 4,111,800 BASIC AND DILUTED NET LOSS PER SHARE $ ( 0.00 ) $ ( 0.00 ) The accompanying notes are an integral part of these financial statements. 12 INKY STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT For the years ended November 30, 2021 and 2020 Common stock Additional paid-in capital Accumulated deficit Total stockholders’ deficit Shares Amount Balance, November 30, 2019 4,000,000 $ 4,000 $ — $ ( 20,285 ) $ ( 16,285 ) Issuance of common stock 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 ) Issuance of common stock for cash 437,823 438 12,696 — 13,134 Net income (loss) — — — ( 17,837 ) ( 17,837 ) Balance, November 30, 2021 5,092,023 $ 5,092 $ 31,668 $ ( 57,317 ) $ ( 20,557 ) The accompanying notes are an integral part of these financial statements. 13 INKY STATEMENTS OF CASH FLOWS November 30, 2021 November 30, 2020 CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) $ ( 17,837 ) $ ( 19,195 ) Adjustments to reconcile net loss to net cash used in operating activities: Prepaid expenses ( 18,963 ) ( 379 ) Accounts payable 1,619 — Net cash flows used in operating activities ( 35,181 ) ( 19,574 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from sale of common stock 13,134 19,626 Related-party loan 10,849 10,869 Net cash flows provided by financing activities $ 23,983 $ 30,495 NET INCRESE (DECREASE) IN CASH $ ( 11,198 ) $ 10,921 CASH, BEGINNING OF PERIOD $ 11,312 $ 391 CASH, END OF PERIOD $ 114 $ 11,312 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for interest $ — $ — Cash paid for income tax $ — $ — The accompanying notes are an integral part of these financial statements. 14 INKY NOTES TO THE FINANCIAL STATEMENTS NOVEMBER 30, 2021 AND 2020 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 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 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. 15 INKY NOTES TO THE FINANCIAL STATEMENTS NOVEMBER 30, 2021 AND 2020 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 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. U se 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 November 30, 2021 ($11,312 as of November 30, 2020). 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, 2021. The Company 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. 16 INKY NOTES TO THE FINANCIAL STATEMENTS NOVEMBER 30, 2021 AND 2020 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 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. During 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. There were 5,092,023 and 4,654,200 shares of common stock issued and outstanding as of November 30, 2021, and 2020, respectively. Note 5 — Related Party Transaction s During the year ended November 30, 2020, the Company’s director loaned to the Company $10,869. During the year ended November 30, 2021, the Company’s director loaned to the Company $10,849. As 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. 17 INKY NOTES TO THE FINANCIAL STATEMENTS NOVEMBER 30, 2021 AND 2020 Note 6 — Prepaid Expenses As of November 30, 2021, the prepaid balance was as follows: As of November 30, 2021 Application development $ 18,800 Prepaid business license fees 542 Total prepaid expenses $ 19,342 Note 7 – Income Tax Provision Deferred Tax Assets 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 $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 November 30, 2021 For the Year Ended November 30, 2020 Net Deferred Tax Asset Non-Current: Net Operating Loss Carry-Forward $ 57,317 $ 39,480 Effective tax rate 21 % 21 % Expected Income Tax Benefit from NOL Carry-Forward 12,037 8,291 Less: Valuation Allowance ( 12,037 ) ( 8,291 ) Deferred Tax Asset, Net of Valuation Allowance $ - $ - 18 INKY NOTES TO THE FINANCIAL STATEMENTS NOVEMBER 30, 2021 AND 2020 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, 2021 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 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. 19 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.