INKY INC. Management report and analysis of the financial situation and operating results. (Form 10-Q)
Inky was incorporated into the
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
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 ,
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.
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.
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
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Our net loss for the three-month period ended
Results of operations for the six months ended
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Our net loss for the six-month period ended
15 Liquidity and Capital Resources
Net cash flows used in operating activities for the six months ended
Net cash flow generated by financing activities for the six months ended
Off-balance sheet arrangements
Limited operating history and need for
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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