INKY INC. Management report and analysis of the financial situation and operating results. (Form 10-Q)

Insight

Inky was incorporated into the state of nevada on June 12, 2018. The Company (“we”, “us” or the “Company”) is engaged in the development of mobile applications. Inky helps the user decide what and where they want to ink without having to get a tattoo. The user simply uses Inky to preview a proposed tattoo. Next, the tattoo artist uses the user’s phone camera to position and overlay the proposed tattoo. Users will be able to download our app through direct-to-consumer digital storefronts, such as the Apple App Store and Google Play Market.

We expect to generate revenue from sales or downloads of our app and advertisements posted on our ad-supported app titles.

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

Sales, Marketing and Distribution

We plan to market, sell and distribute our Ink Applications exclusively by Apple App Store and through the Google Play Store, the largest direct-to-consumer digital storefronts. We expect a majority of our revenue to come from sales on the Apple App Store.

Competition

Application development and distribution is a highly competitive business characterized by frequent product introductions and the rapid emergence of new platforms, technologies and storefronts. When it comes to competition for our app consumers, we will compete primarily on the basis of app quality, brand, and customer reviews. We will compete for placement of the promotional and digital storefront based on these factors, as well as our relationship with the storefront owner, historical performance, perceived sales potential, and relationships with brand licensors. , properties and other content.

We believe that our small size will provide us with a competitive advantage at the moment and allow us to make quick decisions on product development to take advantage of consumer preferences at any given time.

When it comes to our app, we compete with an ever-growing number of companies, including industry leaders such as Activision, DeNA, Electronic Arts (EA Mobile), Apploft, GREE, GungHo Online Entertainment , King digital entertainmentNexon, Warner Brothers and Zynga and many well-funded private companies including Kabam, Machine area, Rovio, Storm 8/Team Lava and Supercell. We may also face increased competition if large companies with a significant online presence such as Apple, Google, Amazon, Facebook or Yahoo choose to enter or expand into the app space or develop competing apps. One of the main competitors is the InkHunter, whose prototype application is similar to ours. But we believe that we are also a good competitor.

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

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

· significantly greater financial and human resources;

· increased brand and consumer awareness;

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

· more intellectual property of their own;

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

· wider 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 personal customer and employee 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 enacted in the future, which could result in significant limitations or changes to how we may collect, use, host, store or transmit our personal information and data. customers or employees, communicating with our customers and providing products and services, can significantly increase our compliance costs. As our business expands to include new uses or collections of data 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 – Ioanna Kallidou, our President, Treasurer, Secretary and Director. We intend to outsource any additional services should the business require it.

Results of operations for the three months ended May 31, 2022 and 2021:

In the three months ended May 31, 2022 and 2021, we generated no revenue.

Our net loss for the three-month period ended May 31, 2022 and 2021, was $12,770
and $1,842 respectively. This is due to an increase in personnel costs.

Results of operations for the six months ended May 31, 2022 and 2021:

In the six months ended May 31, 2022 and 2021, we generated no revenue.

Our net loss for the six-month period ended May 31, 2022 and 2021, was $24,271
and $4,539 respectively. This is due to an increase in personnel costs.

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                        Liquidity and Capital Resources

Net cash flows used in operating activities for the six months ended May 31, 2022consisted of a net loss of $24,271prepaid expenses of $488accumulated payroll of $21,000 and accounts payable $1,164. Net cash flows used in operating activities for the six months ended May 31, 2021consisted of a net loss of $4,539 and prepaid expenses $18,475.

Net cash flow generated by financing activities for the six months ended May 31, 2022consisted of loans to related parties of $1,619. Net cash flow generated by financial activities for the six months ended May 31, 2021consisted of loans to related parties of $199 and the sale of common shares of $13,134.

Off-balance sheet arrangements

From May 31, 2022we 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 our financial condition, our revenues or expenses, our results of operations, our liquidity , our capital expenditures or our capital resources.

Limited operating history and need for Additional capital

There is no historical financial information about us on which to base an assessment of our performance. We are in the start-up phase and have generated limited income. Our business is subject to risks inherent in establishing a new business venture, including limited capital resources and possible cost overruns due to increased prices and costs of 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 business. Equity financing could result in additional dilution for existing shareholders.

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