SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K

(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                    For the fiscal year ended March 31, 2010

                                       OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

         For the transition period from ______________ to ______________

                        Commission File Number 000-53274


                           KRYPTIC ENTERTAINMENT INC.
             (Exact name of registrant as specified in its charter)

           NEVADA                                                83-0510954
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

Suite 208, 800 N. Rainbow Blvd. Las Vegas, NV                      89107
  (Address of principal executive offices)                       (Zip Code)

        Registrant's telephone number, including area code: 702.460.6392

         Securities registered under Section 12(b) of the Exchange Act:

Title of each class                   Name of each exchange on which registered
-------------------                   -----------------------------------------
      None                                               None

         Securities registered under Section 12(g) of the Exchange Act:

                         Common Stock, $0.001 Par Value
                                (Title of class)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation  S-B is not  contained  in  this  form,  and no  disclosure  will  be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information  statements  incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. [X]

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated filer, a non-accelerated  filer, or a smaller reporting company. See
the definitions of "large accelerated  filer,"  "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer [ ]                        Accelerated filer [ ]
Non-accelerated filer [ ]                          Smaller reporting company [X]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [X] No [ ]

Aggregate market value of the voting common equity at September 30, 2009 held by
non-affiliates  (computed by  reference to the price at which the common  equity
was sold): $49,950.00

Number of common voting shares outstanding as of June 3, 2010: 5,499,000
<PAGE>
                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

PART I
Item 1.  Description of Business and Risk Factors                              3
Item 2.  Properties                                                           16
Item 3.  Legal Proceedings                                                    16

PART II
Item 5.  Market For Registrant's Common Equity and Related Stockholder
         Matters                                                              16
Item 7.  Plan of Operation                                                    18
Item 8.  Financial Statements and Supplementary Data                          20
Item 9.  Changes in and Disagreements With Accountants on Accounting and
         Financial Disclosure                                                 21
Item 9A. Controls and Procedures                                              21
Item 9B. Other Information                                                    23

PART III
Item 10. Directors, Executive Officers, Promoters and Control Persons         23
Item 11. Executive Compensation                                               24
Item 12. Security Ownership of Certain Beneficial Owners and Management       26
Item 13. Certain Relationships, Related Transactions and Director
         Independence                                                         27
Item 14. Principal Accountant Fees and Services                               27
Item 15. Exhibits and 8-K Filings                                             28

Signatures                                                                    29

                                       2
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                                     PART I

ITEM 1. DESCRIPTION OF BUSINESS.

Kryptic Entertainment Inc. was incorporated on October 11, 2007, in the State of
Nevada.  Our  principal  executive  offices are located Suite 208, 800 N Rainbow
Blvd, Las Vegas,  NV, 89107.  Our telephone  number is (702) 460-6392.  We are a
development  stage company with no revenue and limited  operations to date.  Our
common stock is quoted on the OTC Bulletin Board under the symbol "KTCE".

Since  incorporation,  we have  not made any  significant  purchases  or sale of
assets,   nor  have  we  been   involved  in  any   mergers,   acquisitions   or
consolidations.  We have never declared bankruptcy, or been in receivership, and
have never been involved in any legal action or proceedings.

PRINCIPAL PRODUCTS AND SERVICES

Our company's  business is focused on the development and sale of internet based
interactive  entertainment  games  for  use by the  general  public.  Video  and
interactive  entertainment games are currently played by a large majority of the
American population and represent a rapidly growing and profitable industry.  We
are in the early stages of developing our first game that we have named "Krypton
Jam". We currently have no revenues and no user  subscriptions  for our game. We
anticipate  that we will not have a  commercial  product for at least 24 months,
dependent on the successful raise of approximately  $2.5-3 million in additional
financing to complete development of a demonstration model and then commercially
launch our game.

Krypton  Jam is planned  to  provide an  engaging  online  game  experience  not
currently  available  in the  interactive  video  gaming  industry.  It is being
designed to be a massive  multiplayer  online game  ("MMOG") that will blend the
characteristics  of fantasy and sports in an engaging  and intense  environment.
MMOG games are recognized for their peculiar  combination of "escapist  fantasy"
and "social realism" in settings and the building of  relationships,  status and
solidarity. We believe MMOG games will continue to experience significant growth
and represent the next watershed in electronic games for the following reasons:

     *    The games offer  regular  content  updates with  changing  story lines
          through downloads and flexible architecture,  keeping the game dynamic
          and fresh for players
     *    The games  extend  the  realism  of game  play  through  cutting  edge
          technology,  which makes the player feel they are actually part of the
          environment
     *    The games create new  opportunities  to foster  competition and mutual
          aid, by  engaging  mutual  friends or players in a  `combat',  team or
          support situation
     *    The  games  present  a  compelling  new  social  environment,  and  an
          opportunity  to meet  new  friends  and  share  similar  mind  frames,
          existence, and survival techniques.
     *    The games offer a recurring revenue source for game companies

When complete,  Kyrpton Jam will be competing in the entertainment  industry for
the leisure time and discretionary spending of consumers with all other forms of
entertainment  media.  Our competitors vary in size and cost structure from very
small companies with limited resources to very large,  diversified  corporations
with greater financial and marketing  resources than ours. We are considered the
smallest as we do not currently have a commercial product yet available for sale
or use.  Our  business is driven by hit titles,  which will require us to invest
significantly in production and in marketing. Our direct competition in the MMOG
market  segment is highly  competitive  and  characterized  by frequent  product
introductions,  new business  models and new  platforms.  As the  proportion  of
households  with an  internet  broadband  connection  increases,  we expect  new
competitors  to enter the market  and  existing  competitors  to  allocate  more
resources toward developing online games. As a result, we expect  competition in
the online games market segment to intensify.

We  will be  competing  with  large  multi  national  public  companies  such as
Microsoft,  Nintendo and Sony, who develop and mass market their own proprietary
hardware  platforms for a large variety of games and publish  software for their
respective  systems.  Our current and potential  competitors in the online games
market segment include major media companies,  traditional video game publishing
companies,  and companies that  specialize in online games.  In the mid and long
session  MMOG  online  game  segment,  which our  product  is planned  for,  our

                                       3
<PAGE>
competitors include Electronic Arts, Jagex,  Midway, NC Soft, Ankama Games, Sony
and Vivendi. Hits have captured a significant  percentage of overall subscribers
and this trend is expected to continue.  Blizzard  Entertainment,  a division of
Vivendi is the largest  competitor in the MMOG market segment with its Wizard of
Warcraft game.

In order  for our  company  and our game to be  successful  we must  play  close
attention  to all of our direct and indirect  competitors.  We plan on carefully
investigating the competition and their respective games on a regular basis, and
carefully  analyze the positive and negative  elements of their games,  pricing,
and possible threats to us. If we fail to do so, our business will likely fail.

In order for our game to be a success, it also must offer:

     *    Differentiated  & Dynamic  Quality Content - Krypton Jam is planned to
          offer a visual  experience like no other.  Attention to detail will be
          essential to ensure that the characters and environment look on par if
          not superior to other games of its caliber. At the same time, the game
          must continue to develop a story that is extremely  interesting to its
          players. The content will be dynamic with twists in the story and game
          that will keep  players  engaged.  This will become more  important as
          additional competitors enter the market with similar games.
     *    Empowerment - The target  audience must feel that they have a `say' in
          what  happens  to the  characters  in the game,  giving the player the
          illusion and pleasure of taking action without having to deal with the
          responsibility  and repercussions of such actions.  We plan on setting
          up chat  rooms on the  Krypton  Jam web site that will  encourage  the
          audience to talk about  their  experiences  and share  thoughts on the
          game, thus capturing their loyalty and making the site a part of their
          daily lives so the characters become "real" to them.
     *    Entertainment  -  The  target  audience  needs  to  be  drawn  to  the
          experience,  and made to forget  about the  reality  around them while
          they focus on the new  cyber-world  that Krypton Jam presents to them.
          The  experience  needs to be  commanding so that it becomes a topic of
          conversation among the consumers' friends and colleagues.
     *    Customer  Focused - We plan to provide  content updates to Krypton Jam
          to provide an ongoing captive  experience for the user and ensure that
          they  leave  the  game  happy,  keen  to  relate  their  entertainment
          experience  to all their  friends  and  anxious to log-on to enjoy the
          next competition,  hopefully bringing friends to share the experience.
          Customer  complaints or suggestions  will be dealt with to the best of
          our ability to ensure customer satisfaction, thus encouraging positive
          word of mouth recommendations of our product.

We believe Krypton Jam, when completed,  will potentially  provide the user with
an  experience  of true team play,  combining  fast-paced  fantasy  quest  style
adventure and sports action,  without the extreme  violence and death typical of
most  currently  available  games.  Our genre was  designed to support  positive
messages and resolution of conflict  through team work. The ultimate goal of the
game is winning  the title of "Master of the  Kryptic  Realms" by  competing  in
quests and against  various  creatures on the basketball  court.  Each character
within  Krypton Jam will have its own  strengths and  weaknesses,  abilities and
magic. A diversified team will be required for any given competitor to win. Each
court will have  different  attributes  and obstacles to challenge or assist the
players.  As the  tournament  progresses,  the  challenges  and geography of the
courts will become increasingly complex. The quests will allow players to obtain
new powers that are not initially  accessible  when creating  their  characters,
giving  advantages  to those  characters  that  succeed on both the court and on
daring  quests.  We are  also  planning  to add  new  characters,  environments,
story-line  twists and secrets on a regular basis to keep the game fresh for the
players,  and  interactive  social  chat  rooms to avoid the  downfalls  of many
previous on-line  multi-player games, which typically become redundant and stale
for the users over time.

We must complete 2 remaining major  development  milestones  prior to having our
game  available for  commercial  sale.  Our DVD trailer,  the first  development
milestone,  was  completed and uploaded to our website prior during our previous
fiscal year ended March 31, 2009. The trailer contains  summary  representations
of our proposed game,  characters and realm development.  We believe the trailer
provides a visually engaging and dynamic  representation through motion graphics
and special  effects to  illustrate  the key  components  and  processes  of the
Krypton  Jam  game.  We are  using  it for  presentations  to the  industry  and
financial community to attract financing and gain feedback on our concept.

                                       4
<PAGE>
Our next major  development  milestone is the playable demo.  Development of the
playable demo is dependent on the successful raise of additional  financing.  We
require approximately  $900,000 for successful completion of this milestone (See
"Plan of  Operation").  The  development  and completion of the playable demo is
anticipated to take  approximately 12 months from the date we obtain  financing.
The most  important  initial  aspect of playable  demo phase is  selection  of a
suitable  back-end game engine. A cost-effective  and robust game engine will be
critical to the success of the playable demo to ensure it meets the complexities
of our title in-game graphics, and character/realm/quest complexities associated
with a sports-based fantasy game.

Subsequent  to the  completion  of the playable  demo,  we will require at least
$1.5-2  million and 12 months for the  development  and production of our actual
game. This task is also highly dependent on the third party  development team we
ultimately  choose,  and it must  include  an  experienced  group  of  creative,
production,  and technical  professionals.  A third party  development team will
assemble  the  necessary  creative  elements to complete  our game using,  where
appropriate, outside programmers, artists, animators,  scriptwriters,  musicians
and songwriters,  sound effects and special effects experts, and sound and video
studios. Because we are at least 12 months away from starting the development of
the actual game, any significant change in these  circumstances could materially
impact  our  ability  to  complete  the  game,  our  cash  requirements  and our
operations.

As of the date hereof,  we have not been  successful  in raising the  additional
funding necessary to complete the remaining  milestones.  Historically,  we have
been able to raise a limited amount of capital through private placements of our
equity stock,  but we are uncertain  about our continued  ability to raise funds
privately.  The recent credit crisis has only made our situation more difficult,
because  investors who were  historically  receptive to startup  situations have
become  reluctant to invest in this  environment.  Our current cash balances are
only sufficient to meet our regulatory  obligations for this annual report.  Our
President and Director has  indicated  that he will provide  unsecured  loans to
meet only our basic  operating and  regulatory  obligations  for the next fiscal
year.

On November  5, 2009 Mr.  John  Lagourgue  resigned  as our  President,  CEO and
Director.  Mr. Shan Qiang, our Secretary Treasurer and Director agreed to assume
these  duties and became our sole  Officer  and  Director.  Concurrent  with his
appointment,  he has been  analyzing the various  alternatives  available to our
company to ensure our survival and to preserve our  shareholder's  investment in
our common  shares.  This  analysis has included  sourcing  additional  forms of
financing to continue our business as is, or mergers and/or  acquisitions  which
would likely involve a change of business.  At this stage in our operations,  we
believe either course is acceptable,  as our operations have not been profitable
and  our  future  prospects  for  our  business  are not  good  without  further
significant financing.

We anticipate that any new acquisition or business  opportunities  identified by
our company  will  require  significant  additional  financing.  There can be no
assurance,  however,  that we will be able to acquire the financing necessary to
enable us to pursue our plan of operation.  If our company  requires  additional
financing and we are unable to acquire such funds, our business may fail.

In   implementing  a  structure  for  a  particular   business   acquisition  or
opportunity, we may become a party to a merger,  consolidation,  reorganization,
joint venture, or licensing agreement with another corporation or entity. We may
also acquire stock or assets of an existing business. Upon the consummation of a
transaction,  it is  likely  that our  present  management  will no longer be in
control of our company and our existing  business  will close down. In addition,
it is likely that our officers and  directors  will, as part of the terms of the
acquisition transaction,  resign and be replaced by one or more new officers and
directors.

We  anticipate  that  the  selection  of a  business  opportunity  in  which  to
participate  will be  complex  and  without  certainty  of  success.  Management
believes  that  there are  numerous  firms in  various  industries  seeking  the
perceived  benefits  of  being  a  publicly  registered  corporation.   Business
opportunities  may be  available  in many  different  industries  and at various
stages  of  development,  all  of  which  will  make  the  task  of  comparative
investigation and analysis of such business  opportunities  extremely  difficult
and complex.

We may seek a business  opportunity  with entities who have  recently  commenced
operations,  or entities who wish to utilize the public  marketplace in order to
raise additional capital in order to expand business development activities,  to
develop a new  product  or  service,  or for other  corporate  purposes.  We may

                                       5
<PAGE>
acquire assets and establish wholly-owned  subsidiaries in various businesses or
acquire existing businesses as subsidiaries.

Mr.  Qiang  is  undertaking   the  search  for  and  analysis  of  new  business
opportunities.  He  is  not a  professional  business  analyst.  In  seeking  or
analyzing prospective business opportunities, Mr. Qiang may utilize the services
of outside  consultants or advisors.  At this stage, we can provide no assurance
that  we  will  be  able  to  locate  compatible  business  opportunities,  what
additional  financing we will require to complete a  combination  or merger with
another business  opportunity,  or whether the opportunity's  operations will be
profitable.  Further,  we believe  that our company  may have more  difficulties
raising capital for our existing  business than for a new business  opportunity.
We have not yet entered into preliminary  negotiations with prospective business
entities or formal written agreements for a business combination or opportunity.
If any such  agreement  is reached,  we intend to disclose  such an agreement by
filing a current report on Form 8-K with the Securities and Exchange Commission.

If we are  unable to  secure  adequate  capital  to  continue  our  business  or
alternatively, complete a merger or acquisition, our shareholders will lose some
or all of their investment and our business will likely fail.

PATENT, TRADEMARK,  LICENSE & FRANCHISE RESTRICTIONS AND CONTRACTUAL OBLIGATIONS
& CONCESSIONS

We  currently  do not  own any  intellectual  property  have  not  obtained  any
copyrights, patents or trademarks in respect of any intellectual property. We do
not anticipate copyrighting or trade marking any assets over the next 12 months,
unless  circumstances  change as a result of a merger  or  acquisition  of a new
business opportunity.

We have not entered into any franchise  agreements or other  contracts that have
given, or could give rise to obligations or concessions.

EXISTING OR PROBABLE GOVERNMENT REGULATIONS

There  are  no  existing  government  regulations,  nor  are  we  aware  of  any
regulations  being  contemplated,  that would  adversely  affect our  ability to
operate.  There may regulations  that apply to new  acquisitions or mergers with
another unrelated business.

RESEARCH AND DEVELOPMENT ACTIVITIES AND COSTS

We currently  lack  financing to undertake  software  development  activities to
complete our playable demo and commercial game. Should we be successful, we plan
to  immediately  commence with the  development  of the playable  demo.  Further
software  development  activities are planned for the following year to complete
actual game  development.  If we are not successful in raising financing for our
game, an acquisition or merger with another business opportunity may necessitate
the need for research and development activities related to the business.

COMPLIANCE WITH ENVIRONMENTAL LAWS

We are not aware of any  environmental  laws that have been enacted,  nor are we
aware of any such laws being  contemplated  for the future,  that address issues
specific  to  our  existing  business.  There  may be  laws  that  apply  to new
acquisitions or mergers with another unrelated business.

FACILITIES

We rent executive office facilities  located at Suite 208, 800 N. Rainbow Blvd.,
Las Vegas,  NV,  89107.  This is a shared office  facility,  which offers office
space and  secretarial  and  administrative  services for $150  monthly.  We may
cancel  upon 30  days  written  notice.  This  location  serves  as our  primary
executive offices. Mr. Qiang also works from his residence in China at no charge
to our company.  We do not foresee any changes to these  arrangements  unless we
obtain  suitable  financing to continue  with our existing  business or until we
merge with or acquire another business.

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<PAGE>
EMPLOYEES

Mr Qiang,  our sole  officer and  director,  is  responsible  for all  planning,
developing and  operational  duties,  and will continue to do so until we either
obtain  suitable  financing to continue with and expand our business or until we
merge or acquire a new  business.  Human  resource  planning  will be part of an
ongoing  process that will include  regular  evaluation  of our  operations  and
revenue realization.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements

RISK FACTORS

You  should  carefully  consider  the  following  risk  factors  and  all  other
information  contained herein as well as the information included in this Annual
Report in evaluating  our business and  prospects.  The risks and  uncertainties
described  below are not the only  ones we face.  Additional  unknown  risks and
uncertainties,  or that we currently believe are immaterial, may also impair our
business  operations.  If any of the  following  risks  occur,  our business and
financial  results  could be harmed.  You should refer to the other  information
contained in this Annual  Report,  including  our financial  statements  and the
related notes.

Much of the information included in this Annual Report includes or is based upon
estimates,    projections   or   other   "forward-looking    statements".   Such
forward-looking  statements  include any projections or estimates made by us and
our  management  in  connection  with  our  business  operations.   While  these
forward-looking  statements,  and any assumptions upon which they are based, are
made in good faith and reflect our current  judgment  regarding the direction of
our business, actual results will almost always vary, sometimes materially, from
any  estimates,   predictions,   projections,   assumptions,   or  other  future
performance   suggested   herein.   We   undertake  no   obligation   to  update
forward-looking  statements to reflect events or  circumstances  occurring after
the date of such statements.

Such  estimates,  projections  or  other  "forward-looking  statements"  involve
various risks and  uncertainties  as outlined  below. We caution readers of this
quarterly report that important  factors in some cases have affected and, in the
future,  could  materially  affect  actual  results and cause actual  results to
differ materially from the results expressed in any such estimates,  projections
or other  "forward-looking  statements".  In evaluating us, our business and any
investment  in our business,  readers  should  carefully  consider the following
factors.

RISKS ASSOCIATED WITH OUR EXISTING BUSINESS

WE HAVE NO OPERATING HISTORY AND HAVE MAINTAINED  LOSSES SINCE INCEPTION,  WHICH
WE EXPECT TO CONTINUE INTO THE FUTURE.

We were incorporated on October 11, 2007, and have very limited  operations.  We
have not realized any revenues to date. Our proposed video game product is under
development and is not ready for commercial  sale. We have no operating  history
at all upon which an  evaluation  of our future  success or failure can be made.
Our net loss from  inception  to March 31,  2010 is $  (73,211).  Based upon our
proposed plans, we expect to incur operating losses in future periods. This will
happen  because there are  substantial  costs and expenses  associated  with the
development,  marketing and distribution of our product. We may fail to generate
revenues  in  the  future.  If  we  cannot  attract  a  significant   number  of
subscribers, we will not be able to generate any significant revenues or income.
Failure to generate revenues will cause us to go out of business because we will
not have the money to pay our ongoing expenses.

In particular, additional capital may be required in the event that:

     -    the actual expenditures required to be made are at or above the higher
          range of our estimated expenditures;
     -    we incur unexpected costs in completing the development of our product
          or encounter any unexpected difficulties;

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     -    we incur delays and additional  expenses related to the development of
          our product or a commercial market for our product;
     -    we are unable to create a substantial market for our products; or
     -    we incur any significant unanticipated expenses.

The occurrence of any of the  aforementioned  events could adversely  affect our
ability to meet our business plans and achieve a profitable level of operations.

IF WE ARE UNABLE TO OBTAIN THE  NECESSARY  FINANCING TO  IMPLEMENT  OUR BUSINESS
PLAN WE WILL NOT HAVE THE MONEY TO PAY OUR ONGOING EXPENSES AND WE MAY GO OUT OF
BUSINESS.

Because we have not generated any revenue from our business, and we are at least
24 months away from being in a position to  generate  revenues,  we will need to
raise  significant,  additional funds for the future development of our business
and to respond to  unanticipated  requirements  or  expenses.  Our current  cash
balances are only sufficient to meet our regulatory  obligations for this annual
report.  Our  President  and  Director has  indicated  that he will only provide
unsecured loans to meet only our basic operating and regulatory  obligations for
the next fiscal year.

Our ability to  successfully  develop our product and to eventually  produce and
sell it to generate operating revenues also depends on our ability to obtain the
necessary  financing  to  implement  our  business  plan.  Given that we have no
operating  history,  no revenues and only losses to date,  we may not be able to
achieve this goal, and if this occurs we will not be able to pay our development
and  marketing  costs  and  we may go out of  business.  We may  need  to  issue
additional  equity  securities in the future to raise the necessary funds. We do
not currently have any arrangements for additional  financing and we can provide
no  assurance  to  investors  we will be able to find such  financing if further
funding is required. Obtaining additional financing would be subject to a number
of factors,  including  investor  acceptance  of our planned  video game and our
business model. The issuance of additional  equity securities by us would result
in a significant  dilution in the equity interests of our current  stockholders.
The resale of shares by our existing  shareholders  pursuant to this  prospectus
may result in significant downward pressure on the price of our common stock and
cause  negative  impact on our  ability to sell  additional  equity  securities.
Obtaining loans will increase our liabilities and future cash  commitments,  and
there can be no assurance that we will even have  sufficient  funds to repay our
future  indebtedness  or that we will not default on our future debts if we were
able to even obtain loans.

There  can be no  assurance  that  capital  will  continue  to be  available  if
necessary to meet future funding needs or, if the capital is available,  that it
will be on terms  acceptable to us. If we are unable to obtain  financing in the
amounts and on terms deemed  acceptable to us, we may be forced to scale back or
cease  operations,  which  might  result  in the  loss  of  some  or all of your
investment in our common stock.

IF OUR ESTIMATES  RELATED TO  EXPENDITURES  ARE ERRONEOUS OUR BUSINESS WILL FAIL
AND YOU WILL LOSE YOUR ENTIRE INVESTMENT.

Our success is dependent in part upon the accuracy of our management's estimates
of  expenditures,  which  includes an additional  $2.5-3 million to complete the
development  our game for  commercial  use. If such  estimates  are erroneous or
inaccurate we may not be able to carry out our business plan,  which could, in a
worst-case  scenario,  result in the failure of our business and you losing your
entire investment.

OUR BUSINESS  MODEL MAY NOT BE  SUFFICIENT TO ENSURE OUR SUCCESS IN OUR INTENDED
MARKET

Our  survival  is  currently  dependent  upon the success of our efforts to gain
market  acceptance  of one online  video game that will  ultimately  represent a
small sector in our targeted  industry when it is  completed.  Should our target
market not be as  responsive to subscribe to our game as we  anticipate,  we may
not have in place alternate products or services that we can offer to ensure our
survival.

While  many  new  products  such  at one  that  we are  planning  are  regularly
introduced,  only a  relatively  small  number  of "hit"  titles  account  for a
significant  portion of net  revenue in our  industry.  Our product may not be a
"hit",  or competitors may develop titles that imitate or compete with our "hit"
title,  and take sales away from us or reduce our ability to command  profitable
revenue streams for our game. Hit products published by our competitors may take

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a larger share of consumer  spending than we  anticipate,  which could cause our
game revenues to fall below our  expectations.  If our competitors  develop more
successful  products or offer competitive  products at lower price, our revenue,
margins, and profitability will decline.

PRODUCT DEVELOPMENT SCHEDULES ARE LONG AND FREQUENTLY UNPREDICTABLE,  AND WE MAY
EXPERIENCE  DELAYS IN INTRODUCING  OUR PRODUCT,  WHICH MAY ADVERSELY  AFFECT OUR
REVENUES.

The  development  cycle for products  such as that we are  planning is long.  We
currently  believe that the cycle for Krypton Jam will take at least  another 24
months.  In addition,  the creative  process  inherent in video game development
makes the length of the development  cycle difficult to predict.  As a result we
may experience  delays in introducing  our product.  If an  unanticipated  delay
affects the release of our online  video  game,  we may not achieve  anticipated
revenues.  Revenues will also be adversely affected if the game is delayed until
after an important selling season or if market interest in the subject matter of
our game declines from what we believe it is at present.  A delay in introducing
a new video game could also  require us to spend more  development  resources to
complete the game,  which would  increase  our costs and lower our  margins,  or
cause us to experience losses.

TECHNOLOGY  CHANGES  RAPIDLY IN OUR  BUSINESS  AND IF WE FAIL TO  ANTICIPATE  OR
SUCCESSFULLY  IMPLEMENT NEW  TECHNOLOGIES OR THE MANNER IN WHICH PEOPLE PLAY OUR
GAME, THE QUALITY,  TIMELINESS AND  COMPETITIVENESS OF OUR PRODUCTS AND SERVICES
WILL SUFFER.

Rapid  technology  changes in our industry  require us to anticipate,  sometimes
years in advance,  which technologies we must implement and take advantage of in
order to make our products and services competitive in the market. Therefore, we
must start our product  development with a range of technical  development goals
that we hope to be able to achieve.  We may not be able to achieve  these goals,
or our competition may be able to achieve them more quickly and effectively than
we can.  In either  case,  our  products  and  services  may be  technologically
inferior to our competitors', less appealing to consumers, or both. If we cannot
achieve our  technology  goals within the original  development  schedule of our
products and services,  then we may delay their  release until these  technology
goals  can be  achieved,  which may delay or reduce  revenue  and  increase  our
development expenses.  Alternatively,  we may increase the resources employed in
research and  development  in an attempt to accelerate  our  development  of new
technologies,  either to preserve our product or service  launch  schedule or to
keep up with our competition, which would increase our development expenses. Any
such failure to adapt to, and appropriately  allocate resources among,  emerging
technologies  would harm our competitive  position,  reduce our market share and
significantly increase the time we take to bring our product to market.

WE WILL BE  DEPENDENT  ON THIRD  PARTIES TO DEVELOP  OUR  PLAYABLE  DEMO AND OUR
ONLINE  VIDEO GAME.  ANY INCREASE IN THE AMOUNTS WE HAVE TO PAY TO HAVE OUR GAME
DEVELOPED OR ANY DELAY OR INTERRUPTION  IN PRODUCTION  WOULD  NEGATIVELY  AFFECT
BOTH  OUR  ABILITY  TO MAKE A TIMELY  INTRODUCTION,  GENERATE  REVENUES  AND OUR
RESULTS OF OPERATIONS.

We are planning to use third  parties to develop  Krypton Jam. We will have less
control over third parties because we cannot control their  personnel,  schedule
or  resources.  Any of these  factors could cause a game not to meet our quality
standards  or  expectations,  or not to be  completed on time or at all. If this
happens, we could lose anticipated revenues, or our entire investment in Krypton
Jam.

IF WE ARE UNABLE TO COMPLETE THE DEVELOPMENT OF OUR ONINE VIDEO GAME WE WILL NOT
BE ABLE TO GENERATE REVENUES AND YOU WILL LOSE YOUR INVESTMENT.

We have not completed development of Krypton Jam program and we have no revenues
from the sale or use of our online  video  game.  The  success  of our  proposed
business  will depend on the  completion  and the  acceptance of our game by the
general public.  Achieving such acceptance  will require  significant  marketing
investment.  Our game,  once  developed  and tested,  may not be accepted by our
customers at sufficient levels to support our operations and build our business.
If Krypton Jam is not accepted at sufficient levels, our business will fail.

OUR ONLINE VIDEO GAME,  WHEN  DEVELOPED,  MAY CONTAIN  DEFECTS THAT WILL MAKE IT
MORE DIFFICULT FOR US TO ESTABLISH AND MAINTAIN CUSTOMERS.

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<PAGE>
Despite testing during  development,  Krypton Jam may contain  undetected design
faults and software  errors,  or "bugs," that are  discovered  only after it has
been  played by  customers.  Any such  default or error  could  cause  delays in
delivering our product or require design  modifications.  These could  adversely
affect our  competitive  position  and cause us to lose  potential  customers or
opportunities.  In  addition,  Krypton  Jam has yet to  gain  acceptance  in the
market, and any delays or defects would likely have a more detrimental impact on
our business than if we were a more established company.

WE  CURRENTLY  HAVE  NO  PROTECTION  BY ANY  TRADEMARKS,  PATENTS  AND/OR  OTHER
INTELLECTUAL   PROPERTY   REGISTRATIONS.   IF  WE  ARE  UNABLE  TO  PROTECT  OUR
INTELLECTUAL PROPERTY RIGHTS, OUR PROPOSED BUSINESS WILL FAIL.

We have not applied for any  trademark,  patent or other  intellectual  property
registration  with any  governmental  agency  for our  name or for our  software
product. At present we are planning to enter into non-disclosure agreements with
employees to protect our technology.  Despite our  precautions  taken to protect
our proposed software programs,  unauthorized  parties may attempt in the future
to  reverse  engineer,  copy or  obtain  and use our  video  game.  If they  are
successful we could lose our technology or they could develop similar  programs,
which could create more competition for us and even cause our proposed  business
operations to fail.

WE DEPEND TO A SIGNIFICANT  EXTENT ON CERTAIN KEY PERSONNEL,  THE LOSS OF ANY OF
WHOM MAY MATERIALLY AND ADVERSELY AFFECT OUR COMPANY.

Currently,  we have only one employee who is also our sole officer and director.
We depend entirely on Mr. Qiang for all of our operations. The loss of Mr. Qiang
will  have a  substantial  negative  effect  on our  company  and may  cause our
business to fail.  Mr. Qiang has not been  compensated  for their services since
our  incorporation,  and  it  is  highly  unlikely  that  he  will  receive  any
compensation unless and until we generate substantial revenues. There is intense
competition for skilled  personnel and there can be no assurance that we will be
able to attract and retain qualified  personnel on acceptable terms. The loss of
Mr.  Qiang's  services could prevent us from  completing the  development of our
product and  developing  revenues.  In the event of the loss of services of such
personnel, no assurance can be given that we will be able to obtain the services
of adequate replacement personnel.

We do not have any  employment  agreements or maintain key person life insurance
policies  on our  officer  and  director.  We do not  anticipate  entering  into
employment agreements with him or acquiring key man insurance in the foreseeable
future.

WE HAVE LIMITED BUSINESS, SALES AND MARKETING EXPERIENCE IN OUR INDUSTRY.

We have not  completed the  development  of our product and have yet to generate
revenues.  Our officer and director has no prior online video game  marketing or
selling industry experience.  While we have plans for marketing and sales, there
can be no  assurance  that  such  efforts  will be  successful.  There can be no
assurance that our video game will gain wide  acceptance in its target market or
that we will be able to effectively market our product.

WE MAY NOT BE ABLE TO COMPETE EFFECTIVELY AGAINST OUR COMPETITORS.

The  interactive  entertainment  video game and  software  industry is intensely
competitive and new interactive  entertainment  software  products and platforms
are regularly introduced. Our competitors vary in size from small companies with
limited  resources  to  very  large  corporations  with  significantly   greater
financial,  marketing,  and product development resources than we have. We would
be considered one of the smallest with no commercial products at present. Due to
their  greater  resources,  our  competitors  can spend  more  money and time on
developing and testing products,  undertake more extensive marketing  campaigns,
adopt more aggressive  pricing  policies,  and pay more to third-party  software
developers than we can. In addition,  competitors  with larger product lines and
popular titles typically have greater leverage with retailers, distributors, and
other  customers who may be willing to promote titles with less consumer  appeal
in return for access to such  competitor's  most popular titles. We believe that
the main competitive factors in the interactive  entertainment software industry
include: product features and playability; brand name recognition; compatibility
of products with popular platforms;  access to distribution channels; quality of
products;  ease of use;  price;  marketing  support;  and  quality  of  customer
service.

We will be competing with Microsoft, Nintendo and Sony, who publish software for
their respective  systems.  We also compete with numerous  companies licensed by
the platform  manufacturers to develop or publish software products for use with

                                       10
<PAGE>
their respective systems.  These competitors include Activision,  Atari, Capcom,
Electronic Arts, Konami,  Namco, SCi Entertainment,  Sega, Take-Two  Interactive
Software,  THQ, Ubisoft Entertainment and Vivendi Universal Games, among others.
We face additional  competition from the entry of new companies into our market,
including  large  diversified  entertainment  companies.  We believe  that large
diversified entertainment,  cable and telecommunications  companies, in addition
to large  software  companies,  are  increasing  their focus on the  interactive
entertainment  software market,  which will likely result in  consolidation  and
greater competition.

Our current and potential competitors in the online games market segment include
major  media  companies,   traditional  video  game  publishing  companies,  and
companies  that  specialize  in online games.  Competitors  in the short session
games segment  include MSN,  Popcap,  Real, AOL and Yahoo!.  In the mid and long
session  MMOG  online  game  segment,  which our  product  is planned  for,  our
competitors include Electronic Arts, Jagex,  Midway, NC Soft, Ankama Games, Sony
and Vivendi. Hits have captured a significant  percentage of overall subscribers
and this trend is expected to continue.  Blizzard  Entertainment,  a division of
Vivendi is the largest  competitor in the MMOG market segment with its Wizard of
Warcraft  game  with  in  excess  of  11.5  million  subscribers,   which  is  a
significantly larger market share than its next largest competitor.

The barriers to entry in the internet based interactive  entertainment industry,
in which we are planning to operate,  are also much lower  because  there are no
publishing   agreements   with  or   royalties   to  be  paid  to  the  hardware
manufacturers.

If we are unable to compete successfully,  we could lose sales and market share.
We also could  experience  difficulty  hiring and retaining  qualified  software
developers and other employees.  Any of these consequences  would  significantly
harm our business,  results of operations and financial condition.  There can be
no assurance that we will be able to effectively compete with our competitors or
that their  present and future  offerings  would render our product  obsolete or
noncompetitive.  This intense  competition may have a material adverse effect on
our results of operations and financial  condition and prevent us from achieving
profitable sales levels of our product.

FUTURE  REGULATION  OF THE  INTERNET  AND PRODUCT  CONTENT  COULD  RESTRICT  OUR
BUSINESS,  PREVENT  US FROM  OFFERING  SERVICE  OR  INCREASE  OUR  COST OF DOING
BUSINESS.

At present there are few laws,  regulations or rulings that specifically address
access to or commerce on the Internet.  We are unable to predict the impact,  if
any, that future  legislation,  legal  decisions or  regulations  concerning the
Internet  may  have  on  our  business,  financial  condition,  and  results  of
operations.  Regulation may be targeted towards,  among other things,  assessing
access or settlement charges, imposing taxes related to internet communications,
restricting  content,  imposing  tariffs  or  regulations  based  on  encryption
concerns or the  characteristics  and quality of products and  services,  any of
which could  restrict our business or increase our cost of doing  business.  The
increasing  growth and popularity of the Internet and related services  heighten
the risk that governments or other legislative  bodies will seek to regulate the
service,  which could have a material adverse effect on our business,  financial
condition and operating results.

Legislation is continually  being introduced that may affect both the content of
our product and its distribution.  In the United States, the federal and several
state governments are continually  considering content  restrictions on products
such as our proposed  product,  as well as  restrictions on distribution of such
products.  For example,  recent  legislation has been adopted in several states,
and could be proposed at the federal  level,  that prohibits the sale of certain
games (e.g.,  violent  games or those with "M  (Mature)"  or "AO (Adults  Only)"
ratings) to minors.  Any one or more of these factors could harm our business by
limiting  the  products we are able to offer to our  customers,  by limiting the
size  of  the  potential  market  for  our  products,  and by  requiring  costly
additional differentiation between products for different territories to address
varying regulations.

OUR OFFICERS AND  DIRECTORS ARE ENGAGED IN OTHER  ACTIVITIES  AND MAY NOT DEVOTE
SUFFICIENT  TIME TO OUR  AFFAIRS,  WHICH  MAY  AFFECT  OUR  ABILITY  TO  CONDUCT
OPERATIONS AND GENERATE REVENUES.

Our  officer and  director  has  existing  responsibilities  and has  additional
responsibilities to provide management and services to other entities. Mr. Qiang
is also a Senior  Designer & Project Manager for VDZ  International  in Beijing,
China.  We  expect  Mr.  Qiang  to  spend  approximately  25 hours a week on the
business of our company.  As a result,  demands for the time and attention  from
Mr. Qiang from our company and other  entities  may conflict  from time to time.
Because we rely primarily on Mr. Qiang to maintain our business  contacts and to

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<PAGE>
promote our product,  his limited devotion of time and attention to our business
may hurt the operation of our business.

OUR INDEPENDENT  AUDITORS' REPORT STATES THAT THERE IS A SUBSTANTIAL  DOUBT THAT
WE WILL BE ABLE TO CONTINUE AS A GOING CONCERN.

Our  independent  auditors,  Weinberg & Baer LLC,  state in their audit  report,
dated May 21, 2010 and included herein, that we are a development stage company,
have no established  source of revenue and are dependent on our ability to raise
capital from shareholders or other sources to sustain  operations.  As a result,
there  is a  substantial  doubt  that we will  be  able to  continue  as a going
concern.

This qualification clearly highlights that we will, in all likelihood,  continue
to incur expenses without significant revenues into the foreseeable future until
our product gains significant  popularity.  Our only source of funds to date has
been the sale of our common stock and unsecured loans from Mr. Qiang. Because we
cannot  currently assure anyone that we will be able to generate enough interest
in our product, or that we will be able to generate any significant  revenues or
income, the identification of new sources equity financing becomes significantly
more difficult.  If we are successful in closing on any new financing,  existing
investors  will  experience  substantial  dilution.  The  ability to obtain debt
financing is also severely impacted, and likely not even feasible, given that we
do not have revenues or profits to pay interest or repay principal.

As a result,  if we are unable to obtain  additional  financing at this stage in
our  operations,  our  business  will  fail and you may lose some or all of your
investment in our common stock.

INVESTORS WILL HAVE LITTLE VOICE  REGARDING THE MANAGEMENT OF KRYPTIC DUE TO THE
LARGE  OWNERSHIP  POSITION HELD BY OUR EXISTING  MANAGEMENT AND THUS IT WOULD BE
DIFFICULT FOR NEW INVESTORS TO MAKE CHANGES IN OUR OPERATIONS OR MANAGEMENT, AND
THEREFORE, SHAREHOLDERS WOULD BE SUBJECT TO DECISIONS MADE BY MANAGEMENT AND THE
MAJORITY SHAREHOLDERS, INCLUDING THE ELECTION OF DIRECTORS.

Mr. Qiang  directly  owns  4,500,000  shares or 81.83% of the total of 5,499,000
issued and outstanding  shares of Kryptic's common stock and is in a position to
continue to control Kryptic. Such control may be risky to the investor,  because
our company's  operations  are dependent on one person who could lack ability or
interest in pursuing our  operations.  In such event,  our business may fail and
you may lose your entire  investment.  Moreover,  investors  will not be able to
effect a change in the company's board of directors, business or management.

RISKS ASSOCIATED WITH MERGING WITH OR ACQUIRING A NEW BUSINESS OPPORTUNITY

WE WILL  REQUIRE  ADDITIONAL  FINANCING.  INADEQUATE  FINANCING  MAY  IMPAIR OUR
ABILITY TO COMPETE IN THE MARKETPLACE WHICH MAY RESULT IN THE DISSOLUTION OF OUR
COMPANY.

We require  additional  financing to complete a suitable  merger or  combination
with a  business  opportunity.  Further,  we  anticipate  that we will  not have
sufficient capital to fund our ongoing operations for the next twelve months. We
may  be  required  to  raise  additional  financing  for a  particular  business
combination  or business  opportunity.  We would  likely  secure any  additional
financing necessary through a private placement of our common shares.

There  can be no  assurance  that,  if  required,  any  such  financing  will be
available upon terms and  conditions  acceptable to us, if at all. Our inability
to obtain additional financing in a sufficient amount when needed and upon terms
and conditions  acceptable to us could have a materially adverse effect upon our
company.  There  can be no  assurance  that  such  funds  will be  available  or
available on terms satisfactory to us. If additional funds are raised by issuing
equity securities, further dilution to existing or future shareholders is likely
to result.  If adequate funds are not available on acceptable terms when needed,
we may be required to delay,  scale back or  eliminate  the  development  of any
business  opportunity that we acquire.  Inadequate funding could also impair our
ability to compete in the  marketplace,  which may result in the  dissolution of
our company.

WE HAVE A LIMITED  OPERATING  HISTORY AND IF WE ARE NOT SUCCESSFUL IN CONTINUING
TO GROW OUR  BUSINESS,  THEN WE MAY HAVE TO SCALE BACK OR EVEN CEASE OUR ONGOING
BUSINESS OPERATIONS.

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<PAGE>
We have a  limited  operating  history  on  which to base an  evaluation  of our
business and prospects.  Our prospects must be considered in light of the risks,
uncertainties,  expenses and  difficulties  frequently  encountered by companies
seeking to acquire or establish a new business opportunity.  Some of these risks
and  uncertainties  relate to our ability to  identify,  secure and  complete an
acquisition of a suitable business opportunity.

We cannot be sure  that we will be  successful  in  addressing  these  risks and
uncertainties and our failure to do so could have a materially adverse effect on
our financial condition.  In addition,  our operating results are dependent to a
large degree upon factors  outside of our control.  There are no assurances that
we will be  successful  in  addressing  these  risks,  and  failure to do so may
adversely affect our business.

It is unlikely that we will generate any or significant revenues while we seek a
suitable business opportunity. Our short and long-term prospects depend upon our
ability to select and secure a suitable business opportunity. In order for us to
make a profit, we will need to successfully  acquire a new business  opportunity
in order to  generate  revenues  in an  amount  sufficient  to cover any and all
future costs and expenses in connection with any such business opportunity. Even
if we become  profitable,  we may not  sustain  or  increase  our  profits  on a
quarterly or annual basis in the future.

SCARCITY OF AND COMPETITION FOR BUSINESS  OPPORTUNITIES AND COMBINATIONS,  PLACE
OUR COMPANY AT A  COMPETITIVE  DISADVANTAGE  IN  IDENTIFYING  POSSIBLE  BUSINESS
OPPORTUNITIES AND SUCCESSFULLY COMPLETING A BUSINESS COMBINATION.

We are, and will continue to be, an insignificant  participant  amongst numerous
other companies seeking a suitable business opportunity or business combination.
A large number of established  and  well-financed  entities,  including  venture
capital firms, are actively seeking suitable business  opportunities or business
combinations,  which may also be desirable  target  candidates for us. Virtually
all such entities have  significantly  greater  financial  resources,  technical
expertise and managerial  capabilities  than we do. We are,  consequently,  at a
competitive  disadvantage in identifying  possible  business  opportunities  and
successfully  completing  a  business  combination.  We will also  compete  with
numerous other small public companies seeking suitable business opportunities or
business combinations.

THE SUCCESS OF A POTENTIAL  MERGER OR COMBINATION  WILL DEPEND TO A GREAT EXTENT
ON THE OPERATIONS, FINANCIAL CONDITION AND MANAGEMENT OF ANY IDENTIFIED BUSINESS
OPPORTUNITY.

The success of a potential  merger or combination  will depend to a great extent
on the operations, financial condition and management of any identified business
opportunity.  While we intend to seek  business  opportunities  and/or  business
combinations with entities which have established operating histories,  there is
no assurance that we will  successfully  locate business  opportunities  meeting
such criteria. In the event that we complete a business combination or otherwise
acquire a business  opportunity,  the success of our operations may be dependent
upon management of the successor firm or venture  partner firm,  together with a
number of other factors beyond our control.

We currently have no arrangement,  agreement,  or understanding  with respect to
acquiring a business  opportunity or engaging in a business combination with any
private entity. There can be no assurance that we will successfully identify and
evaluate  suitable  business  opportunities or conclude a business  combination.
There is no assurance  that we will be able to negotiate  the  acquisition  of a
business opportunity or a business combination on terms favorable to us. We have
not established a specific  length of operating  history or a specified level of
earnings,  assets,  net worth or other  criteria  which we will require a target
business opportunity to have achieved, and without which we would not consider a
business combination in any form with such business opportunity. Accordingly, we
may enter into a business  combination  with a  business  opportunity  having no
significant  operating  history,  losses,  limited or no potential for earnings,
limited assets, negative net worth or other negative characteristics.

PROBABLE   CHANGE  IN  CONTROL  AND  MANAGEMENT  MAY  REDUCE  OR  ELIMINATE  THE
PARTICIPATION OF OUR PRESENT OFFICERS AND DIRECTORS IN THE FUTURE AFFAIRS OF OUR
COMPANY.

A business  combination or acquisition of a business  opportunity  involving the
issuance  of our  common  shares  may  result  in new or  incoming  shareholders
obtaining a controlling  interest in our company.  Any such business combination
or acquisition of a business  opportunity may require  management of our company
to sell or transfer all or a portion of the common  shares in the capital of our

                                       13
<PAGE>
company  that  they hold or resign as  members  of our Board of  Directors.  The
resulting  change in our control  could  result in removal of one or more of our
present officers and directors, and a corresponding reduction in, or elimination
of, their participation in the future affairs of our company.

REQUIREMENT   OF  AUDITED   FINANCIAL   STATEMENTS  MAY  DISQUALIFY  A  BUSINESS
OPPORTUNITY.

Management  believes that any potential  business  opportunity or target company
must provide audited  financial  statements for review and for the protection of
all parties to the business  acquisition or combination.  One or more attractive
business  opportunities  may forego a business  combination  with us rather than
incur the expenses associated with preparing audited financial statements.

A FAILURE TO MANAGE GROWTH EFFECTIVELY COULD HAVE A MATERIALLY ADVERSE EFFECT ON
OUR BUSINESS.

Our ability to achieve any growth upon the  acquisition  of a suitable  business
opportunity or business  combination  will be dependent upon a number of factors
including,  but not  limited  to,  our  ability  to hire,  train and  assimilate
management and other employees and the adequacy of our financial  resources.  In
addition,  there can be no assurance that we will be able to manage successfully
any business opportunity or business combination.  Failure to manage anticipated
growth effectively and efficiently could have a materially adverse effect on our
business.

RISKS ASSOCIATED WITH OUR COMMON STOCK

DIFFICULTY  FOR  KRYPTIC  STOCKHOLDERS  TO RESELL  THEIR  STOCK DUE TO A LACK OF
PUBLIC TRADING MARKET

There is presently no active public trading market for our common stock,  and it
is unlikely that an active public trading market can be established or sustained
in the foreseeable future. Until there is an established trading market, holders
of our  common  stock may find it  difficult  to sell  their  stock or to obtain
accurate  quotations  for the price of the  common  stock.  If a market  for our
common stock does develop, our stock price may be volatile.

BROKER-DEALERS  MAY BE  DISCOURAGED  FROM EFFECTING  TRANSACTIONS  IN OUR SHARES
BECAUSE  THEY ARE  CONSIDERED  PENNY  STOCKS AND ARE  SUBJECT TO THE PENNY STOCK
RULES.

Rules 15g-1 through 15g-9 promulgated under the Securities  Exchange Act of 1934
impose sales practice and disclosure  requirements  on NASD  broker-dealers  who
make a market in "penny stocks". A penny stock generally includes any non-Nasdaq
equity security that has a market price of less than $5.00 per share.  Purchases
and sales of our shares are generally facilitated by NASD broker-dealers who act
as market makers for our shares.  The  additional  sales practice and disclosure
requirements  imposed upon  broker-dealers  may discourage  broker-dealers  from
effecting  transactions  in our shares,  which could  severely  limit the market
liquidity  of the shares  and  impede  the sale of our  shares in the  secondary
market.

Under the penny stock regulations, a broker-dealer selling penny stock to anyone
other than an  established  customer or  "accredited  investor"  (generally,  an
individual with net worth in excess of $1,000,000 or an annual income  exceeding
$200,000,  or  $300,000  together  with his or her  spouse)  must make a special
suitability  determination  for the purchaser  and must receive the  purchaser's
written consent to the transaction  prior to sale,  unless the  broker-dealer or
the transaction is otherwise exempt.

In addition,  the penny stock regulations  require the broker-dealer to deliver,
prior to any transaction involving a penny stock, a disclosure schedule prepared
by the Commission  relating to the penny stock market,  unless the broker-dealer
or the  transaction is otherwise  exempt.  A  broker-dealer  is also required to
disclose   commissions   payable  to  the   broker-dealer   and  the  registered
representative   and  current   quotations  for  the  securities.   Finally,   a
broker-dealer  is required to send monthly  statements  disclosing  recent price
information  with  respect to the penny stock held in a  customer's  account and
information with respect to the limited market in penny stocks.

WE ARE SUBJECT TO THE PERIODIC REPORTING REQUIREMENTS OF THE SECURITIES EXCHANGE
ACT OF 1934,  WHICH REQUIRES US TO INCUR AUDIT FEES AND LEGAL FEES IN CONNECTION
WITH THE  PREPARATION OF SUCH REPORTS.  THESE  ADDITIONAL  COSTS WILL NEGATIVELY
AFFECT OUR ABILITY TO EARN A PROFIT.

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<PAGE>
We are  required to file  periodic  reports  with the  Securities  and  Exchange
Commission  pursuant to the  Securities  Exchange  Act of 1934 and the rules and
regulations  thereunder.  In  order  to  comply  with  such  requirements,   our
independent  registered auditors review our financial  statements on a quarterly
basis and audit our financial statements on an annual basis. Moreover, our legal
counsel will have to review and assist in the  preparation of such reports.  The
costs  charged by these  professionals  for such  services  cannot be accurately
predicted  because factors such as the number and type of  transactions  that we
engage in and the  complexity  of our  reports  will have a major  affect on the
amount  of  time  to be  spent  by our  auditors  and  attorneys.  However,  the
incurrence of such costs will obviously be an expense to our operations and thus
have a negative effect on our ability to meet our overhead requirements and earn
a profit.

INVESTORS THAT NEED TO RELY ON DIVIDEND INCOME OR LIQUIDITY  SHOULD NOT PURCHASE
SHARES OF OUR COMMON STOCK.

We have not  declared  or paid any  dividends  on our  common  stock  since  our
inception,  and  we  do  not  anticipate  paying  any  such  dividends  for  the
foreseeable  future.  Investors that need to rely on dividend  income should not
invest in our common  stock,  as any income would only come from any rise in the
market  price  of our  common  stock,  which  is  uncertain  and  unpredictable.
Investors  that require  liquidity  should also not invest in our common  stock.
There is no established trading market and should one develop, it will likely be
volatile and subject to minimal trading volumes.

BECAUSE WE CAN ISSUE ADDITIONAL SHARES OF COMMON STOCK, PURCHASERS OF OUR COMMON
STOCK MAY INCUR IMMEDIATE DILUTION AND MAY EXPERIENCE FURTHER DILUTION.

We are authorized to issue up to 75,000,000  shares of common stock. At present,
there are 5,499,000 common shares issued and outstanding. Our Board of Directors
has the authority to cause us to issue additional shares of common stock without
consent  of  any  of  our  stockholders.   Consequently,  the  stockholders  may
experience more dilution in their ownership of Kryptic in the future.

SINCE OUR OFFICERS AND DIRECTORS OWN A SIGNIFICANT  PERCENTAGE OF OUR ISSUED AND
OUTSTANDING  COMMON  STOCK,  ANY  FUTURE  SALES OF THEIR  SHARES MAY RESULT IN A
DECREASE  IN THE PRICE OF OUR  COMMON  STOCK AND THE VALUE OF OUR  STOCKHOLDER'S
INVESTMENT

Our  officer  and  director,  currently  owns  4,500,000  shares of the total of
5,499,000  issued and outstanding  shares of our common stock. He owns 81.83% of
our total outstanding common shares.  These shares are currently restricted from
trading  and Rule 144,  these  shares will only be  available  for resale to the
public if:

     *    We are no longer a shell company as defined under section 12b-2 of the
          Exchange  Act. A "shell  company"  is defined as a company  with no or
          nominal operations, and with no or nominal assets or assets consisting
          solely of cash and cash equivalents.
     *    We have  filed  all  Exchange  Act  reports  required  for the past 12
          months; and
     *    If  applicable,  at least one year has  elapsed  from the time that we
          file current Form 10  information on Form 8-K changing our status from
          a shell company to an entity that is not a shell company.

At present we are considered to be a shell company under the Exchange Act. If we
meet the requirements in the future,  our officer and director would be entitled
to sell  within any three  month  period a number of shares that does not exceed
the greater of: 1% of the number of shares of our common stock then  outstanding
which, in this case,  will currently  equate to  approximately  54,900 shares in
aggregate;  or the average weekly trading volume of Kryptic Entertainment common
stock during the four calendar  weeks,  preceding the filing of a notice on Form
144 with  respect to the sale for sales  exceeding  5,000 shares or an aggregate
sale price in excess of $50,000.  If fewer shares at lesser  value are sold,  no
Form 144 is required.

The  possibility  of future sales of  significant  amounts of shares held by him
could decrease the market price of our common stock if the marketplace  does not
orderly adjust to the increase in shares in the market.  In such case, the value
of your investment in us will decrease.

OTHER RISKS

ALL OF OUR ASSETS AND OUR OFFICERS AND DIRECTORS ARE LOCATED IN CHINA.  THIS MAY
CAUSE  ANY  ATTEMPTS  TO  ENFORCE  LIABILITIES  UNDER  THE U.S.  SECURITIES  AND
BANKRUPTCY LAWS TO BE VERY DIFFICULT.

                                       15
<PAGE>
Currently,  all of our assets and our officer and  director is located in China,
and this is likely to remain so for at least the next 12 months.  Therefore, any
investor  that  attempts  to enforce  against  the company or against any of our
officers and directors  liabilities  that accrue under U.S.  securities  laws or
bankruptcy  laws will face the  difficulty of complying with local laws in these
countries,  with regards to enforcement of foreign judgments. This could make it
impracticable or uneconomic to enforce such liabilities.

ITEM 2. DESCRIPTION OF PROPERTY.

We do not own  any  property,  real  or  otherwise.  We  rent  executive  office
facilities located at Suite 208, 800 N. Rainbow Blvd, Las Vegas, NV, 89107. This
is a shared  office  facility,  which offers  office space and  secretarial  and
administrative  services  for $150  monthly.  We may cancel upon 30 days written
notice.  This  location  will serve as our  primary  executive  offices  for the
foreseeable  future.  Mr.  Qiang also works  from his  residence  in China at no
charge to our company.  We plan on contracting  all of our software  development
activities  with third  parties  for at least the next 12 months,  so we have no
requirement  for  additional  facilities  for  these  operations.  We have  also
obtained  host web  server  space for our  website  with a third  party  hosting
business at minimal cost.

Unless we  merge,  acquire  or start a new  business,  we  believe  our  current
premises are adequate for our current  operations and we do not anticipate  that
we will require any additional premises in the foreseeable future.

We do not have any investments or interests in any real estate. Our company does
not invest in real estate  mortgages,  nor does it invest in  securities  of, or
interests in, persons primarily engaged in real estate activities.

ITEM 3. LEGAL PROCEEDINGS.

We  are  not a  party  to  any  legal  proceedings,  nor  are  we  aware  of any
contemplated or pending legal proceedings against us.

                                     PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

In the United States,  our common shares are traded on the National  Association
of  Securities  Dealers  Inc. OTC Bulletin  Board under the symbol  "KTCE".  Our
common shares are not yet actively traded.

Of the  5,499,000  shares  of  common  stock  outstanding  as of June  3,  2010,
4,500,000  shares were owned by our sole officer and  director,  and may only be
resold in compliance  with Rule 144 of the  Securities  Act of 1933 and are also
subject to the volume and trading limitations of Rule 144 of the Act.

We have no outstanding options or warrants, or other securities convertible into
common stock.

At June 3, 2010 there were 18 holders of record.

Routh Stock Transfer, Suite 200, 6860 N. Dallas Parkway, Plano, Texas, USA 75024
is the registrar and transfer agent for our common shares. Their phone number is
(972) 381-2782 and their fax number is (972) 381-2783.

RULES GOVERNING  LOW-PRICE STOCKS THAT MAY AFFECT OUR  SHAREHOLDERS'  ABILITY TO
RESELL SHARES OF OUR COMMON STOCK

Quotations on the OTCBB reflect  inter-dealer  prices,  without retail  mark-up,
markdown or commission and may not reflect actual transactions. Our common stock
is subject  to certain  rules  adopted  by the SEC that  regulate  broker-dealer
practices  in  connection  with  transactions  in "penny  stocks".  Penny stocks
generally are securities with a price of less than $5.00,  other than securities
registered  on  certain  national  exchanges  or  quoted on the  Nasdaq  system,
provided  that  the  exchange  or  system  provides  current  price  and  volume

                                       16
<PAGE>
information with respect to transaction in such securities. The additional sales
practice  and  disclosure  requirements  imposed  upon  broker-dealers  are  may
discourage  broker-dealers from effecting transactions in our shares which could
severely  limit the  market  liquidity  of the shares and impede the sale of our
shares in the secondary market.

The penny stock rules require broker-dealers,  prior to a transaction in a penny
stock  not  otherwise  exempt  from the  rules,  to make a  special  suitability
determination  for the purchaser to receive the  purchaser's  written consent to
the transaction prior to sale, to deliver standardized risk disclosure documents
prepared by the SEC that provides  information about penny stocks and the nature
and  level of risks in the  penny  stock  market.  The  broker-dealer  must also
provide the customer with current bid and offer  quotations for the penny stock.
In addition,  the penny stock regulations  require the broker-dealer to deliver,
prior to any transaction involving a penny stock, a disclosure schedule prepared
by the SEC relating to the penny stock market,  unless the  broker-dealer or the
transaction is otherwise  exempt.  A broker-dealer  is also required to disclose
commissions  payable to the broker-dealer and the registered  representative and
current  quotations for the securities.  Finally, a broker-dealer is required to
send monthly statements  disclosing recent price information with respect to the
penny stock held in a  customer's  account and  information  with respect to the
limited market in penny stocks.

DIVIDENDS

We have not declared any cash  dividends,  nor do we intend to do so. We are not
subject to any legal  restrictions  respecting the payment of dividends,  except
that they may not be paid to render us insolvent.  Dividend policy will be based
on our cash  resources and needs and it is  anticipated  that all available cash
will be needed for our operations in the foreseeable future.

RECENT SALES OF UNREGISTERED SECURITIES

We have sold  securities  within the past three years  without  registering  the
securities under the Securities Act of 1933 on two separate occasions.

On October 11, 2007 Mr. John  Lagourgue,  our President and Director,  purchased
3,000,000  shares of our common  stock for $0.002 per share or an  aggregate  of
$6,000.  On  November  24,  2007 Mr. Shan Qiang,  our  Secretary  Treasurer  and
Director, purchased 1,500,000 shares of our common stock for $0.002 per share or
an aggregate of $3,000.  No underwriters  were used, and no commissions or other
remuneration was paid except to Kryptic. The securities were sold in an offshore
transaction  relying on Rule 903 of Regulation S of the  Securities Act of 1933.
Mr.  Lagourgue  and Mr.  Qiang are not U.S.  persons  as that term is defined in
Regulation  S. No directed  selling  efforts  were made in the United  States by
Kryptic,  any  distributor,  any of their  respective  affiliates  or any person
acting on behalf of any of the  foregoing.  We are subject to Category 3 of Rule
903 of Regulation S and  accordingly  we implemented  the offering  restrictions
required by Category 3 of Rule 903 of  Regulation S by including a legend on all
offering  materials  and  documents  which  stated that the shares have not been
registered  under the  Securities  Act of 1933 and may not be offered or sold in
the United States or to US persons  unless the shares are  registered  under the
Securities Act of 1933, or an exemption from the  registration  requirements  of
the  Securities Act of 1933 is available.  The offering  materials and documents
also  contained a statement that hedging  transactions  involving the shares may
not be conducted  unless in  compliance  with the  Securities  Act of 1933.  The
shares continue to be subject to Rule 144 of the Securities Act of 1933.

On March 15, 2008 we accepted  subscription  agreements that sold 999,000 common
shares to the following 38  subscribers  at an offering price of $0.05 per share
for  gross  offering  proceeds  of  $49,950.  This was an  offshore  transaction
pursuant to  Regulation S of the  Securities  Act.  The  offering  price for the
offshore  transactions  was  established  on an  arbitrary  basis.  All  of  the
following persons are not U.S. persons,  as the term is defined under Regulation
S and the sales of our common stock to the following person are made in offshore
transactions  as the term is  defined  under  Regulation  S. No  direct  selling
efforts were made in the United States by Kryptic,  any distributor,  any of our
respective  affiliates,  or any person acting on behalf of any of the foregoing.
We are  subject to Category 3 of Rule 903 of  Regulation  S and  accordingly  we
implemented  the  offering  restrictions  required  by Category 3 of Rule 903 of
Regulation S by including a legend on all offering materials and documents which
stated that the shares have not been registered under the SECURITIES ACT OF 1933
and may not be offered or sold in the United  States or to U.S.  persons  unless
the shares are registered under the SECURITIES ACT OF 1933, if an exemption from
registration  requirements  of the  SECURITIES  ACT OF  1933 is  available.  The

                                       17
<PAGE>
offering  materials  and  documents  also  contained  a statement  that  hedging
transactions involving the shares may not be conducted unless in compliance with
the SECURITIES ACT OF 1933.

No  underwriters  were used, and no commissions or other  remuneration  was paid
except to the company for any of the above noted.

SALE OF REGISTERED SECURITIES AND USE OF PROCEEDS

None.

DESCRIPTION OF SECURITIES

COMMON STOCK

We are authorized to issue 75,000,000 shares of common stock with a par value of
$0.001.  We are not  authorized to issue shares of preferred  stock.  At June 3,
2010 there were  5,499,000  common  shares  outstanding.  There are no warrants,
options or convertible securities outstanding. Upon liquidation,  dissolution or
winding up of the corporation, the holders of common stock are entitled to share
ratably in all net assets  available  for  distribution  to  stockholders  after
payment to creditors.  The common stock is not convertible or redeemable and has
no  preemptive,  subscription  or conversion  rights.  There are no  conversion,
redemption,  sinking fund or similar provisions regarding the common stock. Each
outstanding  share of  common  stock  is  entitled  to one  vote on all  matters
submitted to a vote of stockholders. There are no cumulative voting rights.

Each  stockholder is entitled to receive the dividends as may be declared by our
board of directors  out of funds legally  available  for  dividends  and, in the
event of liquidation,  to share pro rata in any distribution of our assets after
payment of  liabilities.  Our board of directors  is not  obligated to declare a
dividend. Any future dividends will be subject to the discretion of our board of
directors  and will  depend  upon,  among other  things,  future  earnings,  the
operating  and  financial  condition of our company,  its capital  requirements,
general business  conditions and other pertinent factors.  It is not anticipated
that dividends will be paid in the foreseeable future.

There are no  provisions  in our  articles of  incorporation  or our bylaws that
would delay, defer or prevent a change in control of our company.

ITEM 7. PLAN OF OPERATION.

The following discussion of the plan of operation,  financial condition, results
of  operations,  cash flows and  changes in  financial  position  of our Company
should be read in  conjunction  with our most recent  financial  statements  and
notes appearing elsewhere in this Form 10-K.

Our  immediate  priority is to secure  suitable  financing to continue  with our
existing business and the development of our playable demo for the game. This is
critical to to ensure our survival and to preserve our shareholder's  investment
in our common shares. We currently have a working capital deficit. If we are not
successful  in the short run, our director has  indicated  that he is willing to
lend our company  minimum  funds to enable us meet our  statutory  corporate and
reporting  obligations  for the next 12 months  through  unsecured,  no interest
loans.

We believe we require a minimum of $940,000 in additional  financing to continue
with our  business  and develop our  playable  demo over a  successive  12 month
period from receipt, which would be expended as follows:

General and administrative                                              $ 70,000
Legal and accounting                                                      40,000
Identify/research/purchase game engine                                   350,000
Purchase computer hardware and peripherals                               100,000
Purchase software for game engine creation, developers to identify
 pending game engine selected (Licensed Software Packages)                30,000

                                       18
<PAGE>
Third party developers required to modify game engine to meet
 standards for online & console based demo for Krypton Jam

    (Specified Software will enable developers to create a specified
    playable demo illustrating 3 dimensional game play ie: reduced
    version of game play to include 3 characters/players, game design
    sports action, 3 realms, in-game elements and design to include
    levels, character abilities, obstacles/quests,
    graphics/interface, physical impacts, environment impacts,
    scoring/victory. (Human Resources - 5 developers budgeted for
    60,000/year)                                                         300,000

Render & output for online version for testing purposes                   50,000
                                                                        --------
                                                                        $940,000
                                                                        ========

Concurrent with our search for additional  financing for our existing  business,
we are also actively seeking business  opportunities  with established  business
entities  for the  merger of a target  business  with our  company.  In  certain
instances,  a target  business may wish to become a subsidiary of our company or
may wish to contribute  assets to our company  rather than merge.  We anticipate
that any new acquisition or business  opportunities  by our company will require
additional financing and that we will close our existing business.  There can be
no assurance,  however,  that we will be able to acquire the financing necessary
to  enable  us to  pursue  this new plan.  If our  company  requires  additional
financing and we are unable to acquire such funds, our business may fail.

We may seek a business  opportunity  with entities who have  recently  commenced
operations,  or entities who wish to utilize the public  marketplace in order to
raise additional capital in order to expand business development activities,  to
develop a new  product  or  service,  or for other  corporate  purposes.  We may
acquire assets and establish wholly-owned  subsidiaries in various businesses or
acquire existing businesses as subsidiaries.

At this stage, we cannot  quantify what additional  financing we will require to
complete a combination or merger with another business  opportunity,  or whether
the opportunity's operations will be profitable.

RESULTS OF OPERATIONS

Our company  posted losses of $18,875 for the year ended March 31, 2010 compared
to $52,521 for the year ended March 31, 2009.  From  inception to March 31, 2010
we have incurred losses of $73,211.  The principal  components of our losses for
fiscal 2010 include $17,375 of general and  administrative  costs and $1,500 for
amortization   of  our  website.   In  2009  our  loss   included   general  and
administrative costs of $21,721, DVD and game based development costs of $29,300
and  amortization  of our website of $1,500.  Our 2009 general &  administrative
expense  totals  include   $12,972  for  the   preparation  and  filing  of  our
registration statement.

LIQUIDITY AND CASH RESOURCES

At March 31,  2010 we had a working  capital  deficit  of  $15,636  compared  to
working capital of $1,739 at March 31, 2009. The deficit  includes $18,500 owing
to our director.  The amount is unsecured,  bears no interest,  and is repayable
within 12 months only if there is sufficient cash to do so. At March 31, 2010 we
had $3,614 in cash.

Because we have little  remaining  cash and not  generated  any revenue from our
business we need to raise  additional  funds for the future  development  of our
business and to respond to  unanticipated  requirements or expenses.  Other than
limited loans from our director to continue with our statutory  requirements for
the next 12 months,  we do not currently have any arrangements for financing and
we can provide no assurance to investors we will be able to find such financing.
There can be no assurance that additional  financing will be available to us, or
on terms that are acceptable.  Consequently,  we may not be able to proceed with
our intended business plans and our business will then likely fail.

PRODUCT RESEARCH AND DEVELOPMENT

We plan to develop the playable  demo for our game over the next 12 months if we
are successful in raising sufficient financing to do so. Our cost estimates were
discussed  previously  within this  section of our annual  report.  If we merge,
enter into,  or acquire a new  business we may  undertake  product  research and
development related to the new business.

                                       19
<PAGE>
PURCHASE OF SIGNIFICANT EQUIPMENT

As discussed previously in our 12 month Plan of Operations,  we plan to purchase
approximately $480,000 of computer hardware,  peripherals, and licensed software
for the  development  of our playable  demo.  This includes  $350,000 for a game
engine.  This  equipment  may  also be used for the  development  of our game in
future  periods.  The purchase of this  equipment is dependent on the successful
raise of suitable financing.  If we merge, enter into, or acquire a new business
we may commit to equipment purchases related to the new business.

EMPLOYEES

Currently our only employees are our directors and officers,  If we merge, enter
into, or acquire a new business we may hire additional employees.  We may hire 1
or 2 additional  administrative  and support  employees if we are  successful in
raising  sufficient  financing  to develop  our  playable  demo over the next 12
months.

GOING CONCERN

We have  historically  incurred losses.  Because of these historical  losses, we
will require additional working capital to develop our business  operations.  We
do not anticipate  that we will derive any revenues from  operations  unless and
until we obtain additional financing to continue with our business or we acquire
a new business opportunity.  We have historically raised working capital through
the sale of equity  securities and small loans from our Director,  but there can
be no  assurance  that we will be able to  continue  to do so.  There  can be no
assurance  that we can do so or that,  even if we are successful in doing so, we
will be able to operate profitably.

Due to the uncertainty of our ability to meet our current operating expenses and
game development expenses noted above, our independent auditors have included in
their  report on our annual  financial  statements  for the year ended March 31,
2010, an explanatory  paragraph regarding concerns about our ability to continue
as a going concern. Our financial statements contain additional note disclosures
describing the  circumstances  that lead to this  disclosure by our  independent
auditors.

There are no  assurances  that we will be able to either (1)  achieve a level of
revenues  adequate  to generate  sufficient  cash flow from  operations;  or (2)
obtain additional financing through private placements,  public offerings and/or
bank financings necessary to support our working capital requirements.  As noted
herein, we are pursuing various financing alternatives to meet our immediate and
long-term  financial  requirements.  There can be no assurance  that  additional
financing  will be available to us when needed or, if available,  that it can be
obtained  on  commercially  reasonable  terms.  If we are not able to obtain the
additional  financing  on a timely  basis,  we will be  unable  to  conduct  our
operations as planned,  and we will not be able to meet our other obligations as
they become due. In such event,  we will be forced to scale down or perhaps even
cease our operations.

OFF-BALANCE SHEET ARRANGEMENTS

There are no off-balance sheet  arrangements that have, or are reasonably likely
to have,  a current  or future  effect on our  financial  condition,  changes in
financial  condition,  revenues or expenses,  results of operations,  liquidity,
capital expenditures or capital resources that is material to investors.

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

We  believe  our  market  risk  exposures  arise  primarily  from  exposures  to
fluctuations  in interest rates and exchange  rates.  We presently only transact
business in US Dollars.  We believe that the exchange rate risk  surrounding the
future  transactions of the Company will not materially or adversely  affect our
future earnings, unless we aquire or merge with a business that is significantly
dependent on foreign exchange transactions,  floating interest rate debt or some
other factor. We do not use derivative1 financial instruments to manage risks or
for speculative or trading purposes.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The  financial  statements  required by this Item begin on Page F-1 of this Form
10-K, and include:

     *    the report of independent accountants
     *    balance sheets as of March 31, 2010 and March 31, 2009
     *    statements of operations, cash flows and stockholders' equity from the
          incorporation date to March 31, 2010
     *    notes to the financial statements

                                       20
<PAGE>
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES

A) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We are required to maintain disclosure controls and procedures,  as such term is
defined in Rule 13a-15(e)  under the Securities  Exchange Act of 1934,  that are
designed to ensure that information required to be disclosed in our Exchange Act
reports is recorded, processed,  summarized and reported within the time periods
specified in the SEC rules and forms,  and that such  information is accumulated
and  communicated to our management,  including our CEO and CFO, to allow timely
decisions  regarding required  disclosure.  As of March 31, 2010 we conducted an
evaluation,  under the  supervision,  and with the  participation of our CEO and
CFO, of the effectiveness of the design and operation of our disclosure controls
and  procedures.  Based on this  evaluation,  our CEO and CFO concluded that our
disclosure  controls and procedures  were not effective as described below under
"Material Weaknesses".

Management  does not expect that our Disclosure  Controls and internal  controls
will  prevent  all errors and all fraud.  A control  system,  no matter how well
conceived and operated,  can provide only  reasonable,  not absolute,  assurance
that the  objectives  of the control  system are met.  Further,  the design of a
control  system must reflect the fact that there are resource  constraints,  and
the benefits of controls must be considered relative to their costs.  Because of
the inherent  limitations in all control systems,  no evaluation of controls can
provide  absolute  assurance that all control issues and instances of fraud,  if
any, within the Company have been detected.  These inherent  limitations include
the  realities  that  judgments  in  decision-making  can be  faulty,  and  that
breakdowns  can  occur  because  of a  simple  error or  mistake.  Additionally,
controls  can be  circumvented  by the  individual  acts  of  some  persons,  by
collusion  of two or more  people,  or by  management  or board  override of the
control.

The  design  of any  system  of  controls  also is  based in part  upon  certain
assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving  its stated goals under all  potential
future conditions;  over time, controls may become inadequate because of changes
in conditions,  or the degree of compliance  with the policies or procedures may
deteriorate.  Because of the inherent  limitations in a  cost-effective  control
system, misstatements due to error or fraud may occur and not be detected.

   MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal
control over financial  reporting.  Internal control over financial reporting is
defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange
Act of 1934 as a process designed by, or under the supervision of, the company's
CEO and CFO and effected by the  company's  board of directors,  management  and
other personnel,  to provide reasonable  assurance  regarding the reliability of
financial  reporting and the  preparation  of financial  statements for external
purposes in accordance  with  accounting  principles  generally  accepted in the
United States of America and includes those policies and procedures that:

     *    Pertain  to the  maintenance  of  records  that in  reasonable  detail
          accurately and fairly reflect the transactions and dispositions of the
          assets of the company;
     *    Provide  reasonable   assurance  that  transactions  are  recorded  as
          necessary to permit preparation of financial  statements in accordance
          with accounting  principles generally accepted in the United States of
          America and that  receipts and  expenditures  of the company are being
          made  only  in  accordance  with   authorizations  of  management  and
          directors of the company; and

                                       21
<PAGE>
     *    Provide reasonable  assurance regarding prevention or timely detection
          of  unauthorized  acquisition,  use or  disposition  of the  company's
          assets that could have a material effect on the financial statements.

Because of its inherent  limitations,  internal control over financial reporting
may not  prevent  or detect  misstatements.  Projections  of any  evaluation  of
effectiveness to future periods are subject to the risk that controls may become
inadequate  because of changes in  conditions,  or that the degree of compliance
with the policies or procedures may  deteriorate.  All internal control systems,
no matter how well designed,  have inherent limitations.  Therefore,  even those
systems  determined to be effective can provide only  reasonable  assurance with
respect to financial  statement  preparation  and  presentation.  Because of the
inherent  limitations  of  internal  control,  there  is a  risk  that  material
misstatements  may not be  prevented  or detected on a timely  basis by internal
control over financial reporting.  However, these inherent limitations are known
features of the financial reporting process. Therefore, it is possible to design
into the process safeguards to reduce, though not eliminate, this risk.

As of March 31, 2010  management  assessed  the  effectiveness  of our  internal
control over financial  reporting  based on the criteria for effective  internal
control over financial  reporting  established  in Internal  Control--Integrated
Framework  issued by the Committee of Sponsoring  Organizations  of the Treadway
Commission  ("COSO") and SEC guidance on conducting such  assessments.  Based on
that evaluation,  they concluded that, during the period covered by this report,
such  internal  controls  and  procedures  were  not  effective  to  detect  the
inappropriate  application of US GAAP rules as more fully described below.  This
was due to deficiencies  that existed in the design or operation of our internal
controls over financial  reporting that adversely affected our internal controls
and that may be considered to be material weaknesses.

IDENTIFIED WEAKNESSES

The matters  involving  internal  controls and  procedures  that our  management
considered to be material  weaknesses  under the standards of the Public Company
Accounting  Oversight Board was the lack of a functioning audit committee due to
a lack of a majority of independent  members and a lack of a majority of outside
directors on our board of directors,  resulting in ineffective  oversight in the
establishment and monitoring of required internal controls and procedures.  This
material  weaknesses  was  identified by our  management in connection  with the
review of our financial statements as of March 31, 2010.

Management also believes that the lack of a functioning  audit committee and the
lack of a majority of outside  directors  on our board of  directors  results in
ineffective  oversight in the  establishment and monitoring of required internal
controls and  procedures,  which could result in a material  misstatement in our
financial statements in future periods.

MANAGEMENT'S REMEDIATION INITIATIVES

In  an  effort  to  remediate  the  identified  material  weaknesses  and  other
deficiencies  and enhance our  internal  controls,  we have  initiated a plan to
appoint one or more outside  directors  to our board of  directors  who shall be
appointed to an audit committee resulting in a fully functioning audit committee
who will undertake the oversight in the establishment and monitoring of required
internal  controls and procedures such as reviewing and approving  estimates and
assumptions made by management.

Management  believes that the appointment of one or more outside directors,  who
shall be appointed to a fully functioning audit committee,  will remedy the lack
of a functioning  audit committee and a lack of a majority of outside  directors
on  our  Board.  While  we  are  actively  seeking  outside  members,  including
candidates with accounting  experience,  we cannot provide any assurance that we
will be successful.  Given the size of our company, lack of revenues and current
lack of financing to continue with our business, it is unlikely that anyone will
agree to join our Board until general  economic  conditions and our own business
prospects improve significantly.

                                       22
<PAGE>
CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

There was no change in our  internal  controls  over  financial  reporting  that
occurred  during  the  period  covered  by this  report,  which  has  materially
affected,  or is reasonably likely to materially  affect,  our internal controls
over financial reporting.

This  annual  report  does not include an  attestation  report of the  Company's
registered  public  accounting  firm regarding  internal  control over financial
reporting.  Management's  report was not subject to attestation by the Company's
registered  public  accounting  firm pursuant to temporary rules of the SEC that
permit the  Company  to  provide  only the  management's  report in this  annual
report.

ITEM 9B. OTHER INFORMATION

None

                                    PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS

All  directors of our company  hold office until the next annual  meeting of the
stockholders  or until their  successors  have been elected and  qualified.  The
officers of our company are  appointed by our board of directors and hold office
until their  death,  resignation  or removal  from  office.  Our  directors  and
executive  officers,  their ages,  positions  held, and duration as such, are as
follows:

                                                              Date First Elected
    Name            Position Held with the Company      Age      or Appointed
    ----            ------------------------------      ---      ------------

Shan Qiang       President, CEO, Secretary, Treasurer,   41     October 30, 2007
                 CFO and Director

BUSINESS EXPERIENCE

The following is a brief  account of the  education  and business  experience of
each  director  and  executive  officer  during at least  the past  five  years,
indicating each person's business  experience,  principal  occupation during the
period,  and the name and principal business of the organization by which he was
employed.

MR. SHAN QIANG, SECRETARY TREASURER, CFO, MEMBER OF THE BOARD OF DIRECTORS

Mr.  Qiang has been serving as our  Secretary,  CFO and a member of our Board of
Directors  since  October 30, 2007. He has served as our President and CEO since
November 5, 2009,  concurrent with the  resignation of Mr. John  Lagourgue.  The
term of his office is for one year and is renewable on an annual basis.

He is the currently the Senior Designer & Project Manager for VDZ  International
in  Beijing,  China.  He has  acted in this  position  since  June  2004.  He is
responsible  for all computer  drafting,  3D  rendering,  design  proposals  and
government  submissions for the company. From February 2000 to April 2004 he was
the Project  Manager,  for Digital Xtong  Industrial in Beijing,  China.  He was
responsible for managing for multiplayer  PlayStation games, including game play
implementation and design using proprietary software tools. His responsibilities
included  management of the lead designers and  programmers  and overseeing game
play functionality under tight deadlines. He also planned, designed, modeled and
textured  demonstration models. From January 1997 to December 1999 he acted as a
game play consultant for Gai Nyen Dynasty Games, in Hong Kong, China. He created
software  modules to manage script content and  implemented  design tools to aid
the scripting team. He developed  written  tutorials for  communicating  in-game
standards  and toolset  specific for the game engine team.  He also designed the
core game play mechanics,  laid out and implemented all game levels, and managed
all in game assets.

He is fluent in Java, C/C++,  Visual Basic, LUA, Unreal Script, NWN Script, Maya
Embedded  Language,  Lingo,  python,  HTML, PHP, JSP, XML, WML, ASP,  JavaScript
programming languages for Windows,  Linux, Apple operating system platforms.  He
is also fluent with many off the shelf and proprietary  graphic,  automation and
audio software tools.

                                       23
<PAGE>
He received a Bachelor Degree of Architecture in 1992 from the JinLin  Institute
of Architectural Engineering in the JiLin Province of China.

Mr. Qiang is  currently  devoting  approximately  25 hours a week of his time to
Kryptic,  and is  planning  to  continue  to do so during  the next 12 months of
operation.

He is not an officer or director of any  reporting  company  that files  annual,
quarterly,  or periodic  reports with the United States  Securities and Exchange
Commission.

COMMITTEES OF THE BOARD

We do not have an audit or compensation committee at this time.

AUDIT COMMITTEE FINANCIAL EXPERT

We currenly do not have an audit committee  financial  expert, or an independent
audit committee expert on our Board of Directors.

FAMILY RELATIONSHIPS

There are no family relationships.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

Our director,  executive officer and control person has not been involved in any
of the following events during the past five years:

     1.   any bankruptcy petition filed by or against any business of which such
          person was a general  partner or executive  officer either at the time
          of the bankruptcy or within two years prior to that time;
     2.   any conviction in a criminal  proceeding or being subject to a pending
          criminal  proceeding  (excluding  traffic  violations  and other minor
          offenses);
     3.   being  subject to any order,  judgment,  or decree,  not  subsequently
          reversed,   suspended   or   vacated,   of  any  court  of   competent
          jurisdiction,   permanently   or   temporarily   enjoining,   barring,
          suspending  or  otherwise  limiting  his  involvement  in any  type of
          business, securities or banking activities; or
     4.   being found by a court of competent  jurisdiction (in a civil action),
          the  Commission or the Commodity  Futures  Trading  Commission to have
          violated a federal or state  securities  or  commodities  law, and the
          judgment has not been reversed, suspended, or vacated.

CONFLICT OF INTEREST

None of our officers or directors are subject to a conflict of interest.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING

Section 16(a) of the Securities  Exchange Act of 1934, as amended,  requires our
executive  officers  and  directors  and  persons  who own  more  than  10% of a
registered  class of our  equity  securities  to file  with the  Securities  and
Exchange  Commission  initial  statements  of beneficial  ownership,  reports of
changes in ownership and annual reports concerning their ownership of our common
stock and other equity securities,  on Forms 3, 4 and 5 respectively.  Executive
officers,  directors  and  greater  than 10%  shareholders  are  required by the
Securities and Exchange Commission  regulations to furnish us with copies of all
Section 16(a) reports they file.

To the best of our knowledge,  our executive officer and director filed his Form
3 and Form 4 reports on a timely basis.

ITEM 11. EXECUTIVE COMPENSATION.

The following table sets forth  information with respect to compensation paid by
us to our officers from our date of incorporation on September 17, 2007 to March
31, 2010.

                                       24
<PAGE>
<TABLE>
<CAPTION>
                                                                                            Change in
                                                                                             Pension
                                                                                             Value &
                                                                              Non-Equity   Nonqualified
                                                                              Incentive     Deferred       All
  Name and                                                                       Plan        Compen-      Other
 Principal                                                Stock      Option    Compen-       sation       Compen-
  Position                 Year   Salary($)  Bonus($)   Awards($)   Awards($)  sation($)    Earnings($)  sation($)  Totals($)
------------               ----   ---------  --------   ---------   ---------  ---------    -----------  ---------  ---------
<S>                        <C>       <C>       <C>          <C>        <C>        <C>           <C>         <C>        <C>
Shan Qiang (1)           2010       0         0           0           0          0             0           0          0
President, CEO           2009       0         0           0           0          0             0           0          0
Secretary                2008       0         0           0           0          0             0           0          0
Treasurer

John Lagourgue (1)       2010       0         0           0           0          0             0           0          0
President & CEO          2009       0         0           0           0          0             0           0          0
                         2008       0         0           0           0          0             0           0          0
</TABLE>

----------
(1)  John  Lagougue  resigned  as  President  & CEO on  November 5, 2009 and was
     concurrently replaced by Mr. Shan Qiang.

Since our date of incorporation to the date hereof,  our executive officers have
not received and are not accruing any compensation. The officers anticipate that
they will not receive,  accrue, earn, be paid or awarded any compensation during
the first year of operations.  We have not entered into any employment agreement
or consulting agreement with our directors and executive officers.

The following table sets forth  information with respect to compensation paid by
us to our  directors  from our date of  incorporation  on September  17, 2007 to
March 31, 2010.

DIRECTOR COMPENSATION TABLE

<TABLE>
<CAPTION>
                                                                     Change in
                                                                      Pension
                    Fees                                             Value and
                   Earned                           Non-Equity      Nonqualified     All
                     or                              Incentive        Deferred      Other
                   Paid in    Stock      Option        Plan         Compensation   Compen-
    Name           Cash($)   Awards($)  Awards($)  Compensation($)   Earnings($)   sation($)  Total($)
    ----           -------   ---------  ---------  ---------------   -----------   ---------  --------
<S>                   <C>       <C>        <C>           <C>             <C>          <C>        <C>
Shan Qiang            0          0          0             0               0            0         0

John Lagourgue (1)    0          0          0             0               0            0         0
</TABLE>

----------
(1)  John Lagourgue resigned as a Director on November 5, 2009.

All compensation received by the officers and directors has been disclosed.

OPTION/SAR GRANTS

There are no stock option, retirement,  pension, or profit sharing plans for the
benefit of our officers and directors.

                                       25
<PAGE>
LONG-TERM INCENTIVE PLAN AWARDS

We do not have any long-term incentive plans.

DIRECTORS COMPENSATION

We have no formal plan for  compensating  our  directors  for their  services in
their  capacity  as  directors.  Directors  are  entitled to  reimbursement  for
reasonable travel and other  out-of-pocket  expenses incurred in connection with
attendance  at meetings of our board of  directors.  The board of directors  may
award special  remuneration to any director  undertaking any special services on
behalf of our company  other than  services  ordinarily  required of a director.
Since  inception to the date hereof,  no director  received  and/or  accrued any
compensation  for  his  or  her  services  as a  director,  including  committee
participation and/or special assignments.

The  Executive  Officers  have not received any  compensation  since the date of
incorporation of our Company, and we did not accrue any compensation.  There are
no securities authorized for issuance under any equity compensation plan, or any
options, warrants, or rights to purchase our common stock.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

The  following  table sets forth  certain  information,  as of June 3, 2010 with
respect to any person  (including  any "group",  as that term is used in Section
13(d)(3) of the  Securities  Exchange  Act of 1934,  as amended  (the  "Exchange
Act")) who is known to the Company to be the beneficial  owner of more than five
percent of any class of the Company's voting securities,  and as to those shares
of the Company's equity securities  beneficially owned by each its director, the
executive  officers  of the  company  and  all of its  directors  and  executive
officers of the Company and all of its  directors  and  executive  officers as a
group.  Unless otherwise  specified in the table below, such information,  other
than information  with respect to the directors and officers of the Company,  is
based  on a  review  of  statements  filed,  with the  Securities  and  Exchange
commission (the "Commission") pursuant to Sections 13 (d), 13 (f), and 13 (g) of
the Exchange Act with respect to the Company's Common Stock. As of June 3, 2010,
there were 5,499,000 shares of Common Stock outstanding.

The  number  of  shares of Common  Stock  beneficially  owned by each  person is
determined  under  the  rules  of the  Commission  and  the  information  is not
necessarily indicative of beneficial ownership for any other purpose. Under such
rules, beneficial ownership includes any shares as to which such person has sole
or  shared  voting  power or  investment  power  and also any  shares  which the
individual  has the  right to  acquire  within 60 days  after  the date  hereof,
through  the  exercise  of any stock  option,  warrant  or other  right.  Unless
otherwise indicated, each person has sole investment and voting power (or shares
such power with his or her spouse)  with  respect to the shares set forth in the
following table. The inclusion  herein of any shares deemed  beneficially  owned
does not constitute an admission of beneficial ownership of those shares.

The table also shows the number of shares  beneficially owned as of June 3, 2010
by each of the individual  directors and executive officers and by all directors
and executive officers as a group.

                                                         Amount and
                                                         Nature of     Percent
Title of                                                 Beneficial       of
 Class    Name and Address of Beneficial Owner           Ownership     Class(2)
 -----    ------------------------------------           ---------     --------
Common    Shan Qiang                                     4,500,000      81.83%
          No 21, Xikanghutong, Chaoyang District
          Changchun City, China 130021

Common    Directors and officers as a group(1)           4,500,000      81.83%

----------
1.   Represents beneficial ownership
2.   Based on the total of 5,499,000  outstanding  common  shares as of the date
     hereof

Percent of  Ownership  is  calculated  in  accordance  with the  Securities  and
Exchange Commission's Rule 13(d) - 13(d)(1)

                                       26
<PAGE>
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

Other  than the  transactions  discussed  below,  we have not  entered  into any
transaction  nor are  there any  proposed  transactions  in which any  director,
executive officer,  shareholder of Kryptic or any member of the immediate family
of  any of the  foregoing  had or is to  have  a  direct  or  indirect  material
interest.

In early 2008, our Officers and Directors estimate they spent  approximately 180
hours on research and  execution of a Krypton Jam game  development  plan.  They
provided these services free of charge.  This plan includes a detailed  overview
related to  storyline,  in-game  character  and realm  development,  game engine
timeline,  and  unique  game  features.  The plan was  developed  to  provide an
internal road map for the overall game  development  plan and a clear  direction
for the next steps of engaging a creative  development  firm for the creation of
the DVD trailer.

On October 11, 2007 Mr. John Lagourgue  purchased 3,000,000 shares of our common
stock for $0.002 per share,  or for an aggregate of  $6,000.00.  On November 24,
2007 Mr. Shan Qiang  purchased  1,500,000  shares of our common stock for $0.002
per share, or for an aggregate of $3,000.00.

On November 6, 2009 Mr. Qiang  acquired  3,000,000  common  shares from Mr. John
Lagourgue,  a  former  director  and  officer  of  the  Issuer,  for  the  total
consideration of US$6,000,  pursuant to the terms of a share purchase agreement.
The  consideration  for the  acquisition was paid from the personal funds of Mr.
Qiang.

All of these shares  continue to be subject to Rule 144 of the Securities Act of
1933.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

AUDIT FEES.

The aggregate fees billed by our auditors,  for professional  services  rendered
for the audit of our annual  financial  statements  for the year ended March 31,
2010 and 2009, and for the reviews of the financial  statements  included in our
Quarterly  Reports on Form 10-Q  during  that fiscal year were $6,850 and $6,900
respectively.  2009  includes the  aggregate  fees billed by our  auditors,  for
professional  services  rendered  for  the  re-audit  of  our  annual  financial
statements  for the year  ended  March 31,  2009  because  of the  PCAOB  ruling
regarding Moore and Associates, Chartered, were $2,500.

AUDIT RELATED FEES.

We incurred nil fees to auditors  for audit  related fees during the fiscal year
ended March 31, 2010 and 2009.

TAX FEES.

We  incurred  $250 in fees to  auditors  for tax  compliance,  tax advice or tax
compliance services for each of the fiscal years ended March 31, 2010 and 2009.

ALL OTHER FEES.

We did not incur any other fees billed by auditors for services  rendered to our
Company,  other than the  services  covered in "Audit  Fees" for the fiscal year
ended March 31, 2010 and 2009.

The Board of  Directors  has  considered  whether  the  provision  of  non-audit
services is compatible with maintaining the principal accountant's independence.

                                       27
<PAGE>
ITEM 15. EXHIBITS.

3.1      Articles of Incorporation*

3.2      By-laws*

31.1     Section 302 Certification - Chief Executive and Financial Officer

32.1     Certification  Pursuant to 18 U.S.C.  Section 1350, as adopted pursuant
         to Section 906 of the  Sarbanes-Oxley Act of 2002 - Chief Executive and
         Financial Officer.

----------
*    Incorporated  by reference to our S-1  Registration  Statement filed on May
     23, 2008, SEC File Number 333-151141.


                                       28
<PAGE>
                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned,  thereunto duly authorized,  on this 3rd day of June,
2010

                                     KRYPTIC ENTERTAINMENT INC.


Date: June 3, 2010                   By: /s/ Shan Qiang
                                        ----------------------------------------
                                     Name:  Shan Qiang
                                     Title: President, CEO, Secretary Treasurer
                                            and Director
                                            (Principal Executive, Accounting and
                                            Financial Officer)



                                       29
<PAGE>
                    REPORT OF REGISTERED INDEPENDENT AUDITORS


To the Board of Directors and Stockholders
of Kryptic Entertainment, Inc.:

We have audited the accompanying balance sheets of Kryptic  Entertainment,  Inc.
(a Nevada  corporation in the development  stage) as of March 31, 2010 and 2009,
and the related statement of operations,  stockholders'  equity,  and cash flows
for the periods ended March 31, 2010 and 2009, and from  inception  (October 11,
2007) through March 31, 2010. These financial  statements are the responsibility
of the  Company's  management.  Our  responsibility  is to express an opinion on
these financial statements based on our audit.

We  conducted  our audit in  accordance  with  standards  of the Public  Company
Accounting  Oversight Board (United States of America).  Those standards require
that we plan and perform the audit to obtain reasonable  assurance about whether
the financial statements are free of material  misstatement.  The Company is not
required  to have,  nor were we engaged  to  perform,  an audit of its  internal
control over financial reporting.  Our audit included  consideration of internal
control over financial  reporting as a basis for designing audit procedures that
are appropriate in the  circumstances,  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. An audit includes examining,
on a  test  basis,  evidence  supporting  the  amounts  and  disclosures  in the
financial statements. An audit also includes assessing the accounting principles
used and  significant  estimates made by  management,  as well as evaluating the
overall financial statement  presentation.  We believe that our audit provides a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Kryptic Entertainment,  Inc. as
of March 31, 2010 and 2009, and the results of its operations and its cash flows
for the periods ended March 31, 2010 and 2009, and from  inception  (October 11,
2007) through March 31, 2010, in conformity with accounting principles generally
accepted in the United States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 3 to the
financial  statements,  the  Company is in the  development  stage,  and has not
established any source of revenue to cover its operating  costs. As such, it has
incurred an operating loss since inception.  Further,  as of March 31, 2010, the
cash  resources of the Company were  insufficient  to meet its planned  business
objectives.  These and other factors raise substantial doubt about the Company's
ability to  continue  as a going  concern.  Management's  plan  regarding  these
matters is also described in Note 3 to the financial  statements.  The financial
statements do not include any adjustments  that might result from the outcome of
this uncertainty.

Respectfully submitted,


/s/ Weinberg & Baer LLC
----------------------------------
Weinberg & Baer LLC
Baltimore, Maryland
May 21, 2010

                                      F-1
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                            March 31,          March 31,
                                                              2010               2009
                                                            --------           --------
<S>                                                         <C>                <C>
ASSETS

Current assets
  Cash and bank accounts                                    $  3,614           $  2,489
                                                            --------           --------

      Total current assets                                     3,614              2,489

Website, net of accumulated amortization (Note 7)              1,375              2,875
                                                            --------           --------

Total assets                                                $  4,989           $  5,364
                                                            ========           ========

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities
  Accounts payable and accrued liabilities                  $    750           $    750
  Due to director (Note 5)                                    18,500                 --
                                                            --------           --------

      Total current liabilities                               19,250                750
                                                            --------           --------
Stockholders' deficit (Note 4,5)
  Authorized:
    75,000,000 common shares
    Par value $0.001
  Issued and outstanding:
    5,499,000 common shares                                    5,499              5,499
  Additional paid-in capital                                  53,451             53,451
  Deficit accumulated during the development stage           (73,211)           (54,336)
                                                            --------           --------

Total stockholders' deficit                                  (14,261)             4,614
                                                            --------           --------

Total liabilities and stockholders' deficit                 $  4,989           $  5,364
                                                            ========           ========
</TABLE>


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

                                      F-2
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                                            Date of
                                                                                        Incorporation on
                                                 Year Ended           Year Ended       October 11, 2007 to
                                                  March 31,            March 31,            March 31,
                                                    2010                 2009                 2010
                                                 ----------           ----------           ----------
<S>                                              <C>                  <C>                  <C>
REVENUE                                          $       --           $       --           $       --
                                                 ----------           ----------           ----------
OPERATING EXPENSES
  Amortization                                        1,500                1,500                3,125
  Game development costs                                 --               29,300               29,300
  General & administrative                           17,375               21,721               40,166
  Organization                                           --                   --                  620
                                                 ----------           ----------           ----------
Loss before income taxes                            (18,875)             (52,521)             (73,211)

Provision for income taxes                               --                   --                   --
                                                 ----------           ----------           ----------

Net loss                                         $  (18,875)          $  (52,521)          $  (73,211)
                                                 ==========           ==========           ==========

Basic and diluted loss per Common share (1)

Weighted average number of common shares
 outstanding (Note 4)                             5,499,000            5,499,000
                                                 ==========           ==========
</TABLE>


----------
(1) less than $0.01


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

                                      F-3
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                       STATEMENTS OF STOCKHOLDERS' DEFICIT

<TABLE>
<CAPTION>
                                                                                Deficit
                                                                              Accumulated
                                          Common Stock          Additional     During the        Total
                                      --------------------       Paid in      Development     Stockholders'
                                      Shares        Amount       Capital         Stage           Equity
                                      ------        ------       -------         -----           ------
<S>                                 <C>          <C>            <C>              <C>            <C>
Inception, October 11, 2007                --      $    --      $     --       $      --        $     --

Initial capitalization, sale of
 common stock to Director on
 October 11, 2007                   3,000,000        3,000         3,000                           6,000

Sale of common stock to Director
 on November 24, 2007               1,500,000        1,500         1,500                           3,000

Private placement closed
 March 15, 2008                       999,000          999        48,951                          49,950

Net loss for the period                    --           --            --          (1,815)         (1,815)
                                    ---------      -------      --------       ---------        --------
Balance March 31, 2008              5,499,000        5,499        53,451          (1,815)         57,135


Net loss for the year                      --           --            --         (52,521)        (52,521)
                                    ---------      -------      --------       ---------        --------
Balance March 31, 2009              5,499,000        5,499        53,451         (54,336)          4,614

Net loss for the year                      --           --            --         (18,875)        (18,875)
                                    ---------      -------      --------       ---------        --------

Balance March 31, 2010              5,499,000      $ 5,499      $ 53,451       $ (73,211)       $(14,261)
                                    =========      =======      ========       =========        ========
</TABLE>


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

                                      F-4
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                               Date of
                                                                                           Incorporation on
                                                        Year Ended         Year Ended     October 11, 2007 to
                                                         March 31,          March 31,          March 31,
                                                           2010               2009               2010
                                                         --------           --------           --------
<S>                                                      <C>                <C>                <C>
OPERATING ACTIVITIES
  Net loss for the period                                $(18,875)          $(52,521)          $(73,211)
  Adjustments To Reconcile Net Loss To Net
   Cash Used In Operating Activities
     Amortization expense                                   1,500              1,500              3,125
  Changes in operating assets and liabilities:
     Accounts payable and accrued liabilities                  --               (750)               750
                                                         --------           --------           --------

Net cash used for operating activities                    (17,375)           (51,771)           (69,336)
                                                         --------           --------           --------
INVESTING ACTIVITIES
  Website                                                      --                 --             (4,500)
                                                         --------           --------           --------

Net cash used for investing activities                         --                 --             (4,500)
                                                         --------           --------           --------
FINANCING ACTIVITIES
  Due to director                                          18,500                 --             18,500
  Proceeds from issuance of common stock                       --                 --             58,950
                                                         --------           --------           --------

Net cash provided by financing activities                  18,500                 --             77,450
                                                         --------           --------           --------

Increase (decrease) in cash during the period               1,125            (51,771)             3,614

Cash, beginning of the period                               2,489             54,260                 --
                                                         --------           --------           --------

Cash, end of the period                                  $  3,614           $  2,489           $  3,614
                                                         ========           ========           ========

Supplemental disclosure with respect to cash flows:
  Cash paid for income taxes                             $     --           $     --           $     --
  Cash paid for interest                                 $     --           $     --           $     --
</TABLE>


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

                                      F-5
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 2010


NOTE 1. GENERAL ORGANIZATION AND BUSINESS

The Company was originally incorporated under the laws of the state of Nevada on
October  11,  2007.  The  Company has limited  operations  and is  considered  a
development stage company, and has had no revenues from operations to date.

Initial operations have included organization,  capital formation, target market
identification,  and marketing plans. Management is planning to develop and then
market an internet based online video game to prospective users.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES

The relevant  accounting  policies and procedures are listed below.  The company
has adopted a March 31 year end.

ACCOUNTING BASIS

The basis is generally accepted accounting principles.

EARNINGS PER SHARE

The basic earnings  (loss) per share is calculated by dividing the Company's net
income available to common shareholders by the weighted average number of common
shares during the year. The diluted  earnings  (loss) per share is calculated by
dividing the Company's net income (loss) available to common shareholders by the
diluted  weighted  average  number of shares  outstanding  during the year.  The
diluted  weighted  average  number of shares  outstanding  is the basic weighted
number  of  shares  adjusted  as of the  first of the  year for any  potentially
dilutive debt or equity.

The Company has not issued any options or warrants or similar  securities  since
inception.

DIVIDENDS

The Company has not yet adopted any policy  regarding  payment of dividends.  No
dividends have been paid during the periods shown.

CASH AND BANK ACCOUNTS

The Company's bank account is not FDIC insured.

                                      F-6
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 2010


NOTE 2. (CONTINUED)

FOREIGN CURRENCY TRANSLATION

The Company has adopted the US dollar as its functional  and reporting  currency
because all of its transactions are denominated in US currency.

CASH EQUIVALENTS

The Company  considers  all highly  liquid  investments  with  maturity of three
months or less when purchased to be cash equivalents.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The  Company  estimates  the  fair  value of  financial  instruments  using  the
available market  information and valuation  methods.  Considerable  judgment is
required in estimating fair value. Accordingly,  the estimates of fair value may
not be indicative  of the amounts the Company could realize in a current  market
exchange.  As of March 31, 2010 the carrying  value of accrued  liabilities  and
amounts due to a director  approximated  fair value due to the short-term nature
and maturity of these instruments.

INCOME TAXES

A deferred  tax asset or liability  is recorded  for all  temporary  differences
between  financial  and tax  reporting  and net  operating  loss  carryforwards.
Deferred tax expense  (benefit)  results from the net change  during the year of
deferred tax assets and liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion, or all of the deferred
tax  assets,  will not be  realized.  Deferred  tax assets and  liabilities  are
adjusted  for the  effects  of  changes  in tax  laws  and  rates on the date of
enactment.

USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  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 revenue and expenses during
the reporting period. Actual results could differ from those estimates.

WEBSITE COSTS

Website costs consist of software development costs, which represent capitalized
costs  of  design,  configuration,  coding,  installation  and  testing  of  the
Company's website up to its initial implementation. Upon implementation in March
2008, the asset is being amortized to expense over its estimated  useful life of

                                      F-7
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 2010


NOTE  2. (CONTINUED)

three years using the straight-line method. Ongoing website  post-implementation
costs of operation,  including  training and  application  maintenance,  will be
charged to expense as incurred. See Note 7.

NOTE 3. GOING CONCERN

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a going  concern,  which  contemplates,  among other
things,  the realization of assets and satisfaction of liabilities in the normal
course of business.  The Company has net losses for the period from inception to
March 31, 2010 of $73,211.  The Company intends to fund operations through sales
and equity financing arrangements, which may be insufficient to fund its capital
expenditures,  working  capital  and other cash  requirements  through  the next
fiscal year ending March 31, 2011.

The  ability of the Company to emerge from the  development  stage is  dependent
upon the  Company's  successful  efforts to raise  sufficient  capital  and then
attaining profitable operations.  In response to these problems,  management has
planned the following actions:

     *    The  Company  has cleared a  Registration  Statement  with the SEC and
          obtained a trading symbol to trade its common shares on the OTCBB.

     *    Management intends to raise additional funds through public or private
          placement offerings.

     *    Management is currently formulating plans to develop an internet based
          online  video  game to  generate  sales.  There can be no  assurances,
          however,  that  management's  expectations  of  future  sales  will be
          realized.

These factors, among others, raise substantial doubt about the Company's ability
to continue as a going concern.  These  financial  statements do not include any
adjustments that might result from the outcome of this uncertainty.

                                      F-8
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 2010


NOTE 4. STOCKHOLDERS' EQUITY

AUTHORIZED

The Company is authorized to issue 75,000,000  shares of $0.001 par value common
stock. All common stock shares have equal voting rights,  are non-assessable and
have one vote per share.  Voting rights are not cumulative and,  therefore,  the
holders of more than 50% of the common  stock  could,  if they  choose to do so,
elect all of the directors of the Company.

ISSUED AND OUTSTANDING

On October 11, 2007  (inception),  the Company issued 3,000,000 common shares to
its President and Director for cash of $6,000. See Note 5.

On November 24, 2007 the Company issued 1,500,000 common shares to its Secretary
Treasurer and Director for cash of $3,000. See Note 5.

On March 15, 2008,  the Company  closed a private  placement for 999,000  common
shares at a price of $0.05 per share,  or an aggregate  of $49,950.  The Company
accepted subscriptions from 38 offshore non-affiliated investors.

NOTE 5. RELATED PARTY TRANSACTIONS

The Company neither owns nor leases any real or personal property. The Company's
officer and director  provides  office  space free of charge.  He is involved in
other  business  activities  and may,  in the future,  become  involved in other
business  opportunities.  If a specific business  opportunity becomes available,
such  persons  may face a conflict  in  selecting  between the Company and their
other  business  interests.  The  Company  has not  formulated  a policy for the
resolution of such conflicts.

The amount due to a director of $18,500 has no  repayment  terms,  is  unsecured
without interest and is for  reimbursement of company  incorporation and general
operating  expenses.  The  company  plans to pay the  amount  within the next 12
months, if it has sufficient cash to do so.

On October 11, 2007 and November  24, 2007,  the Company  issued  3,000,000  and
1,500,000  shares of its common stock  respectively to its Directors for cash of
$9,000. See Note 4.

                                      F-9
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 2010


NOTE 6. INCOME TAXES

Net  deferred  tax assets are $nil  ($4,719 and $13,130 as of March 31, 2010 and
2009, respectively,  less valuation allowances in the same amounts). Realization
of deferred tax assets is dependent upon sufficient future taxable income during
the period that deductible temporary differences and carry-forwards are expected
to be available to reduce taxable income.  As the achievement of required future
taxable income is uncertain,  the Company  recorded a 100% valuation  allowance.
Management  believes  it is likely  that any  deferred  tax  assets  will not be
realized.

As of its last fiscal  year end,  the  Company  has a net  operating  loss carry
forward of approximately  $73,211 of which $1,815 will expire by March 31, 2028,
$52,521 by March 31, 2029 and the balance of $18,875 by March 31, 2030.

NOTE 7. WEBSITE

                                      Accumulated
                          Cost        amortization        Net book value
                          ----        ------------        --------------

     Website costs       $4,500         $3,125               $1,375
                         ======         ======               ======

Website costs are amortized on a straight line basis over 3 years, its estimated
useful life.

NOTE 8. OPERATING LEASES AND OTHER COMMITMENTS

The  Company   currently  has  no  operating  lease  commitments  or  any  other
commitments.

NOTE 9. RECENT ACCOUNTING PRONOUNCEMENTS

In April 2009, the FASB issued FSP No. FAS 157-4,  "Determining  Fair Value When
the Volume and Level of Activity for the Asset or Liability  Have  Significantly
Decreased and Identifying  Transactions That Are Not Orderly" ("FSP FAS 157-4"),
codified  in  FASB  ASC  820-10-65,   which  provides  additional  guidance  for
estimating fair value in accordance with ASC 820-10 when the volume and level of
activity for an asset or liability have significantly  decreased.  ASC 820-10-65
also includes guidance on identifying  circumstances that indicate a transaction
is not  orderly.  The  adoption of ASC  820-10-65  did not have an impact on the
Company's results of operations or financial condition.

                                      F-10
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 2010


NOTE 9. (CONTINUED)

In May 2009,  the FASB issued SFAS No. 165,  "Subsequent  Events"  ("SFAS  165")
codified in FASB ASC  855-10-05,  which provides  guidance to establish  general
standards  of  accounting  for and  disclosures  of events  that occur after the
balance sheet date but before  financial  statements are issued or are available
to be issued.  FASB ASC  855-10-05 is effective  for interim and annual  periods
ending after June 15, 2009.  FASB ASC 855-10-05  requires  that public  entities
evaluate  subsequent  events through the date that the financial  statements are
issued.

In June 2009,  the FASB  issued  SFAS No.  166,  "Accounting  for  Transfers  of
Financial  Assets - an  amendment  of FASB  Statement  No.  140"  ("SFAS  166"),
codified as FASB ASC 860,  which requires  entities to provide more  information
regarding  sales of  securitized  financial  assets  and  similar  transactions,
particularly  if the  entity has  continuing  exposure  to the risks  related to
transferred  financial  assets.  FASB  ASC  860  eliminates  the  concept  of  a
"qualifying  special-purpose entity," changes the requirements for derecognizing
financial assets and requires additional disclosures.  FASB ASC 860 is effective
for fiscal years beginning after November 15, 2009. The adoption of FASB ASC 860
did not  have  an  impact  on the  Company's  financial  condition,  results  of
operations or cash flows.

In June 2009, the FASB issued SFAS No. 167,  "Amendments to FASB  Interpretation
No.  46(R)"  ("SFAS  167"),  codified as FASB ASC 810-10,  which  modifies how a
company  determines when an entity that is insufficiently  capitalized or is not
controlled  through voting (or similar rights) should be consolidated.  FASB ASC
810-10  clarifies  that the  determination  of whether a company is  required to
consolidate an entity is based on, among other things,  an entity's  purpose and
design and a company's  ability to direct the activities of the entity that most
significantly impact the entity's economic performance. FASB ASC 810-10 requires
an ongoing  reassessment  of whether a company is the primary  beneficiary  of a
variable interest entity. FASB ASC 810-10 also requires  additional  disclosures
about a company's  involvement in variable interest entities and any significant
changes in risk exposure due to that  involvement.  FASB ASC 810-10 is effective
for fiscal years  beginning  after  November 15, 2009.  The adoption of FASB ASC
810-10 did not have an impact on the Company's financial  condition,  results of
operations or cash flows.

In June  2009,  the FASB  issued  FASB ASC 105,  Generally  Accepted  Accounting
Principles,  which establishes the FASB Accounting Standards Codification as the
sole source of authoritative generally accepted accounting principles.  Pursuant

                                      F-11
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS
                                 March 31, 2010


NOTE 9. (CONTINUED)

to the  provisions  of FASB ASC 105, we have updated  references  to GAAP in our
financial statements.  The adoption of FASB ASC 105 did not impact the Company's
financial position or results of operations.


                                      F-12