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, 2009

                                       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  held by  non-affiliates
computed  by  reference  to the price at which the common  equity was sold as of
June 1, 2009: $49,950.00

Number of common voting shares outstanding as of June 1, 2009: 5,499,000
<PAGE>
                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

PART I
Item 1.  Description of Business and Risk Factors                              3
Item 2.  Properties                                                           18
Item 3.  Legal Proceedings                                                    18
Item 4.  Submission of Matters to a Vote of Security Holders                  18

PART II
Item 5.  Market For Registrant's Common Equity and Related Stockholder
         Matters                                                              19
Item 7.  Plan of Operation                                                    21
Item 8.  Financial Statements and Supplementary Data                          23
Item 9.  Changes in and Disagreements With Accountants on Accounting and
         Financial Disclosure                                                 23
Item 9A. Controls and Procedures                                              23
Item 9B. Other Information                                                    24

PART III
Item 10. Directors, Executive Officers, Promoters and Control Persons         24
Item 11. Executive Compensation                                               27
Item 12. Security Ownership of Certain Beneficial Owners and Management       28
Item 13. Certain Relationships, Related Transactions and Director
         Independence                                                         29
Item 14. Principal Accountant Fees and Services                               29
Item 15. Exhibits and 8-K Filings                                             30

Signatures                                                                    31

                                       2
<PAGE>
                                     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.  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.

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 to our 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.

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  nonexistent  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.

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. We
are also designing our game for  multiplayer  online action to capitalize on the
interactive and social  elements of gaming.  MMOG games involve role playing and
multiple  players  participating  simultaneously.  Players are  represented by a
pre-configured  avatar,  which is controlled by the player.  Typical  activities
involve  exploration  of  a  three-dimensional  landscape,   encountering  other
characters,  communicating,  competition  and team play. They are recognized for
their  peculiar  combination  of  "escapist  fantasy"  and  "social  realism" in
settings and the building of  relationships,  status and solidarity.  The player
group meets through in-game communication systems, and devise strategies for how
they will complete the challenge.

We believe  Krypton Jam will  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

                                       3
<PAGE>
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 are focusing on online  internet based gaming because users can use their own
PC's and broadband internet connections without the need for additional hardware
requirements  such as a Play Station or Xbox.  We can also then develop our game
for commercial use without having to align  ourselves with one of these hardware
suppliers or designing our game to fit their particular standards.  The internet
is also better suited to role playing games  because  gamers can connect  online
with multiple people from multiple geographic regions in the world. For example,
a user in Texas can play  online  against a team of youth  anywhere  else in the
country or the world.

When we  complete  the  development  and  production  of Kypton  Jam, we plan to
initially  focus  our  marketing  efforts  in the  United  States.  Our  website
www.krypticentertainment.com  and www.kryptonjam.com  will ultimately be used as
the primary method to distribute our game and any other key  components.  We are
initially  planning to generate user  revenues  through  monthly  subscriptions,
which is now the current industry pricing standard.  The game will be priced for
mass market use so that everyone with an interest in  interactive  online gaming
can subscribe to the program. We plan to target youth between the ages of 14 and
25 years of age,  and  believe  our  game  will  appeal  to both  genders.  This
demographic is currently fueling significant  interest in fantasy  entertainment
and the increasing sales of sports-based video games (such as NBA Live 2008, NBA
Street Homecourt, and NCAA March Madness 2007). We believe that our high-action,
team  play  approach  may also  capture  the  interest  of  pre-teens  and older
children.  This  may  be  further  enforced  by  parents  looking  for  engaging
entertainment  for their  children,  without  the  violence  that has  become so
commonplace in mainstream games.

These planned distribution and revenue models may undergo significant revisions,
as we get  closer  to  launching  our  commercial  game.  At this  stage  in our
development,  there can be no assurance that we will be successful in generating
revenues from our game, or that users will be receptive to playing Krypton Jam.

THE MARKET

We  consider  our  proposed  business  to be part of the  overall  entertainment
industry.  At the most  fundamental  level,  our product,  when completed,  will
compete with other forms of entertainment for the leisure time and discretionary
spending of consumers. With continuing growth in broadband Internet subscribers,
together with better networking  technology and multimedia encoding  techniques,
it is becoming  increasingly  feasible to provide the same if not better quality
entertainment  through the Internet than was previously  seen, heard and/or felt
only through other more conventional distribution mediums such as game consoles.

Video games are played by a large majority of the general  American  population.
Despite general  conceptions that game players are generally children and teens,
the Entertainment  Software  Association  (www.esa.com)  found that current user
demographics, which directly apply to our proposed business, show that:

     *    Sixty-seven  percent of American  households  play  computer and video
          games.
     *    The average game PLAYER is 35 years old and has been playing games for
          12 years.
     *    Thirty-five  percent of American  parents say they play  computer  and
          video games.  Further, 80 percent of gamer parents say they play video
          games with their kids.  Sixty-six  percent feel that playing games has
          brought their families closer together.
     *    Forty-nine percent of game players say they play online internet based
          games one or more hours per week, which is up from 31 percent in 2002.
          Fifty six percent of online  game  players are male and 44 percent are
          female.

Total US software  sales include  revenues  generated  from online games and the
highly successful massive  multiplayer  online games ("MMOG") segment,  which we
are  planning to  develop.  According  to a recent  2008  PricewaterhouseCoopers
report,  PWC predicts the worldwide games market to reach $68.3 Billion in 2012.
(http://iesherpa.blogspot.com/2008/07/pricewaterhousecoopers-predicts.htmlU.S.)
Online  games are expected to see the biggest  gains  through  2011.  Online and

                                       4
<PAGE>
wireless  games are forecast to experience  annual growth of 16.9 percent and 19
percent respectively.  Online will increase from $6.6 billion last year to $14.4
billion  in 2012,  while  wireless  games  increase  from $5.6  billion to $13.5
billion in the same time frame.  MMOGchart.com  has also  published data showing
average yearly growth in total MMOG subscriptions since 2004 is 17.3%.

According to a Strategy  Analytics  online game forecast dated October 30, 2008,
the PC and video game  industry has seen stellar  growth in recent years both in
the offline and online world. According to their estimates,  global online games
revenues  are set to reach  $11.8  billion  by 2012 - equal to a 17.5%  compound
annual  growth rate in the  2008-2012  forecast  period.  Online  games  formats
include  Electronic   Sell-Through  (EST),  Online  Subscription   Services  and
Massively Multiplayer Online Games (MMOG)

(http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=4278)

According to a recent Entertainment Software Association (http://www.theesa.com)
report on Sales,  Demographics  and Usage  Data,  MMOG  related  games  comprise
approximately 28% of the online internet based games universe.  The remainder is
puzzles, board games and shockwave mini games that generally short session games
played by one individual and very short in duration.  MMOG games  generally host
several to many simultaneous  players organized into teams involving longer term
action or quests.  We consider  our proposed  game  falling  into this  category
because it involves a sports team play based basketball game.

According to  MMOGchart.com,  as of April 2008,  94.2% of the MMOG of the market
falls into the genre  category  of fantasy  role  playing,  3.7% in sci-fi  role
playing  (including  superheroes),  0.2% in combat simulation / FPS, and 1.9% in
the social / other  category.  Highly  successful and "hit" MMOG games,  such as
World of WarCraft,  are very  carefully  designed to take full  advantage of the
respective genre and demographic  market  characteristics.  In order to maintain
player  interest  in the game  (and  thereby  preserve  revenue  streams),  MMOG
producers  regularly  introduce  new  features,  such as special  challenges  or
quests,  or new areas of the  environment to explore.  Most new features  merely
provide an  additional - optional -  diversionary  task for players.  Others can
cause  significant  changes to the game. For example,  the producers of World of
Warcraft  introduced an "illness",  obtained by being  splattered  with infected
blood when killing a particular creature.

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,  by offering  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 an  attractive  new and recurring  revenue  source for
          game  companies,  as evidenced by the top  performers  who attain many
          subscribers  in  their   compelling   games  (see   "Competition   and
          Competitive Strategy" below)

COMPETITION AND COMPETITIVE STRATEGY

We do not yet have a  commercial  product  available  for sale.  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. We
compete with venture capital funded  start-ups,  traditional  independent  video
game  publishers,  hardware and  software  manufacturers,  casual  entertainment
websites,  social networking  websites,  mobile games developers,  foreign games
developers and large publicly held media companies.

                                       5
<PAGE>
Our competitors with greater  resources are able to spend more time and money on
concept and focus testing, game development,  product testing and marketing. Our
business is driven by hit titles,  which will require us to invest significantly
in  production  and in marketing.  It is also  characterized  by the  continuous
introduction of innovative new titles and the  development of new  technologies.
Competition  is also based on product  quality and  features,  timing of product
releases,  brand-name  recognition,   quality  of  in-game  content,  access  to
distribution  channels,  effectiveness  of  marketing  and price.  In  addition,
regardless of our competitor's  financial resources or size, our success depends
on our ability to successfully execute our competitive strategies.

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.  Each of these competitors also has the financial resources
to  withstand   significant  price   competition  and  to  implement   extensive
advertising  campaigns,  particularly for prime-time  television  spots. We also
will compete with numerous companies licensed by these platform manufacturers to
develop or publish  software  products  for use with their  respective  systems.
These competitors include Activision,  Atari,  Capcom,  Electronic Arts, Konami,
Namco, SCi Entertainment,  Sega,  Take-Two  Interactive  Software,  THQ, Ubisoft
Entertainment and Universal Games, among others. We face additional  competition
from the entry of new companies  into our market,  including  large  diversified
entertainment  companies  that have begun to develop  games based upon their own
highly  recognizable  brands,  and,  as a result,  stand to become  more  direct
competitors.  Disney Interactive Studios recently expanded its internal software
game  publishing  efforts and Viacom has  expanded  its  efforts in  interactive
entertainment software publishing.

ONLINE GAMES AND MMOG'S

Our direct  competition  in the MMOG online games market  segment is also highly
competitive and  characterized by frequent product  introductions,  new business
models and new platforms.  The barriers to entry in the online games segment are
significantly  less onerous,  due to the lack of the  requirement for a specific
hardware platform. The game player's personal computer and a high speed internet
connection  serve  as the  platform.  As the  proportion  of  households  with a
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.

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.  According to ibtimes.com,  Wizard of Warcraft had  approximately
11.5 million  subscribers as of December  2008.  This is in excess of 65% of the
total current subscriber market.

KEY SUCCESS FACTORS

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.

For game development to be successful,  we must either build our own or contract
with a development  team that is comprised of a creative,  experienced  group of
game designers and programmers that can set Krypton Jam apart from its potential
competition,  with  expertise  in state  of the art  design  and  implementation
skills.  Our  research  to-date  suggests  that  Krypton  Jam's   fantasy/sports
environment  represents an emerging genre.  Many of these industry leaders noted
herein  currently  do not  offer  the  unique  game  experience  that we plan to
provide.  Furthermore, the industry is now saturated with violence and unhealthy
characteristics. We believe the attributes of Krypton Jam will promote teamwork,
fast-paced sports/team play action and visual intensity without violence.

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

                                       6
<PAGE>
     *    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.

     *    Empowering - 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.

     *    Entertaining  -  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.

Because  of our small size and lack of  revenues  relative  to our  competition,
Krypton Jam must be priced competitively when it is completed.  In order for the
game and company to be successful, we will first need to alert our target market
about Krypton Jam among the vast  selection of other titles in the market.  This
will require  significant  advertising or a partnership  with a distributor that
believes in the  potential in the game and has the creative  marketing  clout to
draw attention to the game.

SALES STRATEGY

We are  still  in the  planning  and  formulation  stages  with  respect  to the
development and commercialization of our product.  Provided we are successful in
raising  additional  financing,  we would  still be at least 24 months away from
being in a position to generate revenues from our game.

We plan on pricing Krypton Jam  competitively  on a monthly  subscription  basis
when it is ready  for  sale.  Even  though  average  pricing  for  online  games
currently  ranges  between  $5-20 /per  game/per  month,  we believe  prices and
subscription rates will decline in the future due to increasing competition,  so
we will likely receive less when our game is ready to play commercially.  We are
designing  the game and our website so that users can download the game software
directly from the website.  Our website will also include capabilities to accept
and account  for user  subscriptions.  We also plan on offering no charge  trial
period to entice users and using  advertising  targeted to our target  market to
attract subscribers.

In addition to our corporate  information and other standard sections  contained
on our company website at www.krypticentertainment.com,  we plan to use our site
as a major `hub' for our game storyline,  character  development,  new character
releases, current game trends, new game capabilities and concepts. In the future
when we  commercialize  the game, we also plan to include an online  `community'
aspect,  where forums,  news rooms and `chats' will be available for players and
prospects to discuss the game, share stories and playing techniques. By creating
a `community'  aspect around  www.krypticentertainment.com  our site will become
known  as  a  place  to  look  not  only  for  upcoming   events,   tours,   and
promotions/contests,  but  also a  domain  for  people  to  share  strategy  and
techniques and exchange ideas.

DISTRIBUTION OF PRODUCTS OR SERVICES

We are  planning to  distribute  our game online  over the  internet.  We do not
anticipate  any other form of  distribution  at this time.  Player access to the
game will be downloaded from the Kryptic Jam game servers,  which we will either

                                       7
<PAGE>
own or lease. The actual game software will be kept on servers, and will we will
charge players for access.

This business model is rapidly  becoming the  distribution  method of choice for
smaller gaming  companies,  due to the  proliferation  of residential  broadband
penetration,  inexpensive  computer  software and graphics  packages,  and loyal
online gamers seeking fresh content.  Online,  internet based platforms  reduces
significant  costs  associated  with  setting  up and  maintaining  conventional
distribution channels such as retail sales. Under conventional channels, revenue
streams for the  producing  game title  company are also reduced by  significant
margins or markups  given to the  wholesaler  and  retail  distributors.  Retail
distributors generally also insist on implementation of their own sales programs
with little or no input from the producer,  particularly  small produces such as
our  company.  Online  distribution  directly to the game player also allows for
significantly  greater  flexibility in managing sequels and/or second additions,
without the permission of wholesale or retail partners or  distribution  channel
agreements.

SOURCES AND AVAILABILITY OF PRODUCTS AND SUPPLIES

There are no constraints on the sources or availability of products and supplies
related to our  business.  We are  planning to hire third party  contractors  to
complete the development of the playable demo and actual game platform.

Our next major  development  milestone is the playable  demo. We currently  lack
financial  resources  to  undertake  the  third  party  aspects  of  this  task.
Development  of the  playable  demo is  dependent  on the  successful  raise  of
additional  financing.  Our officers and directors plan to commence with several
phases of this development that do not require third party  contractors over the
next  4-6  months.  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.

Game engines are the core software  component of our online game,  providing the
underlying technologies to run the Kypton Jam game on multiple desktop operating
systems such as Linux, Mac OS X, and Microdoft  Windows.  The core functionality
typically provided by a game engine includes a rendering engine ("renderer") for
graphics, a physics engine and collision detection, sound, scripting, animation,
artificial intelligence,  networking,  streaming, memory management,  threading,
and a scene graph.  COLLISION  DETECTION  involves  algorithms  for checking for
collision,  i.e.  intersection,  of two  given  solids.  A  PHYSICS  ENGINE is a
computer  program that simulates  physics models,  using variables such as mass,
velocity,  friction and wind  resistance.  It can  simulate and predict  effects
under different  conditions that would  approximate what happens in real life or
in a fantasy world. The scene graph is a structure that arranges the logical and
spatial  representation  of  a  graphical  scene.  Each  application  is  highly
important as it relates to the other,  and to the overall game engine  itself to
ensure  realistic  player  interaction.  The process of game development will be
largely  determined by the correct decision in purchasing an exceptional  engine
for our  title.  Examples  of a few game  engine  companies  researched  to-date
include: Heroengine.com,  Gamebryo.com,  Realmcrafter.com.  A more comprehensive
and in depth game  engine  research is  required  prior to engaging  any company
offering such a service.

Subsequent  to  the  completion  of  the  playable  demo,  the  development  and
production  of our  actual  game is  highly  dependent  on the  third  party  we
ultimately  choose,  and it must  include  an  experienced  group  of  creative,
production,  and technical  professionals.  Our officers and  directors  will be
responsible  for the entire  development  and production  process  including the
supervision and coordination of internal and external resources. The 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.  The software  contractors that we choose
must be highly experienced with:

     -    Internet and website software design and applications
     -    Platform, Application, and User-Written Architecture Software
     -    The use of PhP, CURL, Maya 3D programming languages
     -    CGI, PowerBuilder,  XVT, MS Visual C++, Xt Intrinsics, Xlib, UIM/X, MS
          Windows (3.1), SYBASE, Transact-SQL, Excelerator

                                       8
<PAGE>
     -    Coding,  Compilation,  Documentation,  Integration,  Software  Testing
          enablers.
     -    The use of  MySQL  and ER  (Entity  Relationship)  Modelling  database
          programming language

We currently do not anticipate any supply or manpower  availability  constraints
with respect to  identifying  and choosing  any of the  contractors  we require.
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.

DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS

We plan on selling our products and services  directly to end use consumers over
the internet.  Our intended offering is also priced for mass market consumption.
Therefore,  we do not anticipate dependence on one or a few major customers into
the foreseeable future.

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.
Interactive  entertainment  software is susceptible  to piracy and  unauthorized
copying.  Our primary  protection  against  unauthorized  use,  duplication  and
distribution  of our products is copyright and trademark  protection of our game
and any related elements and enforcement to protect these  interests.  As we get
closer to developing our game, we plan to copyright and trademark the following:

     *    Trademarks  associated  with  elements  of the game,  such as the game
          logo;
     *    Trademarks under which the game is marketed;
     *    the copyrights for the game software, including the game's audiovisual
          elements

We do not anticipate  copyrighting or  trademarking  any assets over the next 12
months. We plan to register copyrights and trademarks in countries where we sell
our game.  We may seek other  protection  over these  assets if we have the cash
resources to do so. .

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.

USE OF THE INTERNET FOR SALES OF OUR PRODUCTS

Due to the increasing  popularity and use of the Internet, it is possible that a
number of laws and  regulations  may be adopted  with  respect  to the  Internet
generally,  covering issues such as user privacy,  pricing,  and characteristics
and quality of products and services.  Similarly,  the growth and development of
the market for Internet  commerce may prompt calls for more  stringent  consumer
protection laws that may impose additional burdens on those companies conducting
business over the  Internet.  The adoption of any such laws or  regulations  may
decrease the growth of commerce  over the  Internet,  increase our cost of doing
business or otherwise have a harmful effect on our business.

To date,  governmental  regulations  have not  materially  restricted the use or
expansion of the Internet.  However,  the legal and regulatory  environment that
pertains to the Internet is uncertain and may change.  New laws may cover issues
that include:

     *    sales and other taxes;
     *    user privacy;
     *    pricing controls;
     *    characteristics and quality of products and services;
     *    consumer protection;
     *    libel and defamation;

                                       9
<PAGE>
     *    copyright, trademark and patent infringement; and
     *    other claims based on the nature and content of Internet materials.

These new laws may impact our  ability to market our  product  and  services  in
accordance with our business plan.

Legislation  is also  continually  being  introduced  that may  affect  both the
content of video games and their distribution. In the United States, the federal
and several state governments are continually  considering content restrictions.
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  subscribers,  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.

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.

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 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. Lagourgue and Mr. Qiang also work from their respective
residences in Canada and China at no charge to our company. If we are successful
in obtaining  additional  financing,  we plan on contracting all of our software
development  activities with third parties for at least the next 12 months, thus
we believe we will have no further  requirements  for additional  facilities for
these operations.

EMPLOYEES

Kryptic has no employees at the present time.  Our officers and  directors,  are
responsible  for all  planning,  developing  and  operational  duties,  and will
continue  to do so  throughout  the  early  stages  of our  growth.  We  have no
intention  of  hiring  employees  until  we have  sufficient  financing  for the
completion of our playable  demo.  Our officers and directors are planning to do
whatever  work is required  until our  business  reaches this  milestone.  Human
resource  planning will be part of an ongoing  process that will include regular
evaluation of our operations and revenue realization.

Over the next 12 months, Mr. John Lagourgue will be primarily responsible for:

     -    General management of our company's operations
     -    Ensuring the game development plan is on budget and on schedule
     -    Hiring and management of contractors and employees for development and
          completion of the playable demo
     -    Researching  and  identifying  the most  effective game engine for our
          playable demo and full game
     -    Management and direction of financing activities

Mr. Shan Qiang will be responsible for:

     -    Preparing and updating our website
     -    Financing activities
     -    Daily administration and bookkeeping activities

                                       10
<PAGE>
     -    Researching  and  identifying  the most  effective game engine for our
          playable demo and full game
     -    Identify, interview and select software developers for playable demo
     -    Researching  all  technical  variables  of  Game  Engine  relating  to
          software programming
     -    Developing programming schedule for playable demo
     -    Implementation of the game engine into software platform.

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,  2009 is $  (54,336).  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;

                                       11
<PAGE>
     -    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 (See "Description of Business".) 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"

                                       12
<PAGE>
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
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.

                                       13
<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 two  employees  and they  are  also our  officers  and
directors.  We depend  entirely on Mr.  Lagourgue  and Mr.  Qiang for all of our
operations. The loss of either person will have a substantial negative effect on
our company  and may cause our  business to fail.  Neither of our  officers  and
directors has been compensated for their services since our  incorporation,  and
it is highly unlikely that they 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 either Mr. Lagourgue
or 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 officers  and  directors.  We do not  anticipate  entering  into
employment   agreements  with  them  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 officers and directors  have 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.

                                       14
<PAGE>
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
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.

The persons serving as our officers and directors have existing responsibilities
and have additional responsibilities to provide management and services to other

                                       15
<PAGE>
entities.  Mr.  LaGourgue,  our President and director,  is also an  independent
consultant  to the oil and gas  industry  in  Alberta,  Canada.  We  expect  Mr.
LaGourgue to spend  approximately 25 hours a week on the business of our company
and up to 40 hours should we be successful in raising additional financing.  Mr.
Qiang,  our  Secretary  Treasurer  and one of our  directors,  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 our directors and officers
from our company and other  entities may conflict from time to time.  Because we
rely  primarily on our directors and officers to maintain our business  contacts
and to promote our product,  their 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, Moore and Associates,  Chartered, state in their audit
report, dated June 1, 2009 and included with this prospectus,  that since 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,  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. Because we cannot assure anyone at this stage
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 is  significantly  more  difficult,  and if we are
successful in closing on any new financing,  existing  investors will experience
substantially  more  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.

Officers and directors  directly own 4,500,000  shares of the total of 5,499,000
issued and outstanding shares of Kryptic's common stock and are in a position to
continue to control  Kryptic.  Of these 5,499,000  shares,  Mr.  LaGourgue,  our
President,  owns 3,000,000 shares and Mr. Qiang, our Secretary Treasurer and CFO
owns 1,500,000  shares.  Collectively  they own 81.83% of our total  outstanding
common shares.  Such control may be risky to the investor  because our company's
operations  are  dependent  on a very few  people  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 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

                                       16
<PAGE>
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.

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 officers  and  directors,  currently  own  4,500,000  shares of the total of
5,499,000 issued and outstanding  shares of our common stock.  Collectively they
own 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:

                                       17
<PAGE>
     *    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  officers  and  directors  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 them
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 CANADA AND
CHINA.  THIS MAY  CAUSE  ANY  ATTEMPTS  TO  ENFORCE  LIABILITIES  UNDER THE U.S.
SECURITIES AND BANKRUPTCY LAWS TO BE VERY DIFFICULT.

Currently,  all of our assets and each of our officers and directors are located
in  Canada  and  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. Lagourgue and Mr. Qiang also work from their respective
residences  in  Canada  and  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  contracted to maintain and host web server
space for our website with a third party hosting business at minimal cost.

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.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

                                       18
<PAGE>
                                     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".

Of the  5,499,000  shares  of  common  stock  outstanding  as of June  1,  2009,
4,500,000 shares were owned by our officers,  directors and affiliates,  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 1, 2009 there were 31 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
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.

                                       19
<PAGE>
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
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 1,
2009 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,

                                       20
<PAGE>
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. MANAGEMENT'S 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 less than $2,000 in working capital.  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
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
                                                                        ========

RESULTS OF OPERATIONS

Our company  posted losses of $52,521 for the year ended March 31, 2009 compared
to $1,815 from inception to March 31, 2008.  From inception to March 31, 2009 we
have  incurred  losses of $54,336.  The  principal  components of our losses for
fiscal 2009 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, 2009 we had working  capital of $1,739 compared to $52,760 at March
31, 2008. At March 31, 2009 we had $2,489 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

                               21
<PAGE>
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.

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.

EMPLOYEES

Currently our only employees are our directors and officers.  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. 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,
2009, 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.

We intend to raise  additional  working  capital  as and when we need it through
private placements, public offerings and/or bank financing. 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.

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.

                               22
<PAGE>
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 derivative 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 sheet as of March 31, 2009

     *    statements of operations,  cash flows and stockholders'
          equity from the incorporation date to March 31, 2009

     *    notes to the financial statements

ITEM  9. CHANGES  IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
         FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES.

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
principal  executive  and  principal  financial  officers  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
     *    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.

                                       23
<PAGE>
As of March 31, 2009  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.

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 Chief Executive Officer in connection
with the review of our financial statements as of March 31, 2009.

Management  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.

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

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.

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.

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

                                       24
<PAGE>
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
    ----            ------------------------------      ---      ------------

John Lagourgue   President, CEO and Director            40     October 11, 2007

Shan Qiang       Secretary Treasurer, CFO and Director  40     October 30, 2007

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. JOHN LAGOURGUE, PRESIDENT, CEO, MEMBER OF THE BOARD OF DIRECTORS

Mr. John  Lagourgue  has been serving as our President and a member of our Board
of Directors  since October 11, 2007. The term of his office is for one year and
is renewable on an annual basis.

From August 2003 to the present Mr. Lagourgue has been self employed,  providing
contract  consulting  services  to oil  and gas  service  companies  located  in
Alberta, British Columbia, and Saskatchewan,  Canada. He specializes in sourcing
and selling  tubular  products.  From February 2003 to June 2003 he acted as the
Project Liaison for Project San Francisco (Rwanda),  Zambia UAB HIV Research for
the  University of Alabama.  He was the liaison  between two HIV and  Behavioral
Research sites that offered couples'  voluntary  counseling and testing,  family
planning,  and a Phase I AIDS vaccine  clinical  trial.  He was  responsible for
managing, training, and data tracking of successful client recruitment rates for
the teams, financial and logistical administration,  new site construction plans
and oversight,  and operational  relationships with Ministry of Health officials
and various funding agencies.

From December 2000 to February 2003 he was the National  Account Manager for EMC
Corporation in McLean,  Virginia.  He was one of a team of four Account Managers
supporting  American  Online,  which at the time was EMC's  largest  client with
annual revenues exceeding $50 million for EMC's storage hardware,  software, and
services.  He was responsible for sales quotas, new client  prospecting,  demand
creation,  presenting lease and financial  proposals,  presenting  technical and
financial benefits to win new business,  and management of implementation of new
systems.  He managed a technical team of over 30 engineers across the U.S.A. for
AOL's  multiple  data centers,  and created and  implemented  integration  plans
according  to  customer  specifications.  He also  managed the  turnaround  of a
division of EMC supporting AOL's Streaming  Services division (supports CNN, AOL
Music,  Warner Bros. These streaming  services included online delivery of music
channels, advertisements,  video on demand, movie trailers, and other content to
subscribers.

He received a BA Finance  with Honors from the  University  of Hawaii,  Manoa in
1993.

He is  currently  devoting  approximately  30  hours a week  of his  time to our
company,  and is  planning to devote 40 hours per week if  necessary  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.

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. 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

                                       25
<PAGE>
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.

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 directors,  executive officers and control persons have 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

                                       26
<PAGE>
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  officers and directors filed their
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, 2009.

SUMMARY COMPENSATION TABLE

<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>
John Lagourgue             2009       0         0           0           0          0             0           0          0
President & CEO            2008       0         0           0           0          0             0           0          0

Shan Qiang                 2009       0         0           0           0          0             0           0          0
Secretary, Treasurer, CFO  2008       0         0           0           0          0             0           0          0
</TABLE>

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, 2009.

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>
John Lagourgue        0          0          0             0               0            0         0

Shan Qiang            0          0          0             0               0            0         0
</TABLE>

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

                                       27
<PAGE>
OPTION/SAR GRANTS

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

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 1, 2009 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 1, 2009,
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 1, 2009
by each of the individual  directors and executive officers and by all directors
and executive officers as a group.

                                       28
<PAGE>
                                                          Amount and
                                                          Nature of     Percent
Title of                                                  Beneficial       of
  Class    Name and Address of Beneficial Owner           Ownership     Class(2)
  -----    ------------------------------------           ---------     --------
 Common    John Lagourgue                                 3,000,000      54.55%
           201, 2307 - 14 Street SW
           Calgary, AB, Canada T2T 3T5

 Common    Shan Qiang
           No 21, Xikanghutong, Chaoyang District         1,500,000      27.28%
           Changchun City, China 130021

 Common    Directors and officers as a group of two(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)

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.

The 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,
2009 and 2008, and for the reviews of the financial  statements  included in our
Quarterly  Reports on Form 10-Q  during  that fiscal year were $6,900 and $2,500
respectively.

AUDIT RELATED FEES

We incurred nil fees to auditors  for audit  related fees during the fiscal year
ended March 31, 2009 and 2008.

                                       29
<PAGE>
TAX FEES

We  incurred  nil  fees  to  auditors  for tax  compliance,  tax  advice  or tax
compliance services during the fiscal year ended March 31, 2009 and 2008.

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, 2009 and 2008.

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

ITEM 15. EXHIBITS.

 3.1    Articles of Incorporation*
 3.2    By-laws*
31.1    Section 302 Certification - Chief Executive Officer
31.2    Section 302 Certification - Chief 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 Officer.
32.2    Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
        Section 906 of the Sarbanes-Oxley Act of 2002 - Chief Financial Officer.

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

                                       30
<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 1st day of June,
2009.

                             KRYPTIC ENTERTAINMENT INC.


Date: June 1, 2009           By: /s/ John Lagourgue
                                ------------------------------------------------
                             Name:  John Lagourgue
                             Title: President, CEO, and Director
                                    (Principal Executive Officer)


Date: June 1, 2009           By: /s/ Shan Qiang
                                ------------------------------------------------
                             Name:  Shan Qiang
                             Title: Secretary Treasurer and Director
                                    (Principal Accounting and Financial Officer)

                                       31
<PAGE>
MOORE & ASSOCIATES, CHARTERED
  ACCOUNTANTS AND ADVISORS
     PCAOB REGISTERED


             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors
Kryptic Entertainment Inc.
(A Development Stage Company)

We have audited the accompanying balance sheets of Kryptic Entertainment Inc. (A
Development  Stage  Company)  as of March 31, 2009 and March 31,  2008,  and the
related  statements of operations,  stockholders'  equity and cash flows for the
year ended March 31, 2009 and since inception October 11, 2007 through March 31,
2008 and since  inception  on October 11, 2007  through  March 31,  2009.  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 audits.

We conduct  our  audits in  accordance  with  standards  of the  Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and  perform  the  audits to  obtain  reasonable  assurance  about  whether  the
financial  statements  are free of  material  misstatement.  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
audits provide 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. (A
Development  Stage  Company)  as of March 31, 2009 and March 31,  2008,  and the
related  statements of operations,  stockholders'  equity and cash flows for the
year ended March 31, 2009 and since inception October 11, 2007 through March 31,
2008 and since  inception  on  October  11,  2007  through  March 31,  2009,  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 has an accumulated deficit of $54,336,  which
raises  substantial  doubt about its  ability to  continue  as a going  concern.
Management's  plans  concerning  these matters are also described in Note 3. The
financial  statements do not include any adjustments  that might result from the
outcome of this uncertainty.


/s/ Moore & Associates, Chartered
------------------------------------------
Moore & Associates, Chartered
Las Vegas, Nevada
June 1, 2009


 6490 West Desert Inn Rd, Las Vegas, NV 89146 (702) 253-7499 Fax (702) 253-7501

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

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                            March 31,          March 31,
                                                              2009               2008
                                                            --------           --------
<S>                                                         <C>                <C>
ASSETS

Current assets
  Cash and bank accounts                                    $  2,489           $ 54,260
                                                            --------           --------

      Total current assets                                     2,489             54,260

Website, net of accumulated amortization (Note 7)              2,875              4,375
                                                            --------           --------

Total assets                                                $  5,364           $ 58,635
                                                            ========           ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued liabilities                  $    750           $  1,500
                                                            --------           --------

      Total current liabilities                                  750              1,500
                                                            --------           --------

Stockholders' equity (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           (54,336)            (1,815)
                                                            --------           --------

      Total stockholders' equity                               4,614             57,135
                                                            --------           --------

Total liabilities and stockholders' equity                  $  5,364           $ 58,635
                                                            ========           ========
</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                Date of
                                                                Incorporation on       Incorporation on
                                             Year Ended       October 11, 2007 to    October 11, 2007 to
                                              March 31,            March 31,              March 31,
                                                2009                 2008                   2009
                                             ----------           ----------             ----------
<S>                                          <C>                  <C>                    <C>
REVENUE                                      $       --           $       --             $       --
                                             ----------           ----------             ----------

OPERATING EXPENSES
  Amortization                                    1,500                  125                  1,625
  Game development costs                         29,300                   --                 29,300
  General & administrative                       21,721                1,070                 22,791
  Organization                                       --                  620                    620
                                             ----------           ----------             ----------
Loss before income taxes                        (52,521)              (1,815)               (54,336)

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

Net loss                                     $  (52,521)          $   (1,815)            $  (54,336)
                                             ==========           ==========             ==========

Basic and diluted loss per
Common share (1)

Weighted average number of
 common shares outstanding (Note 4)           5,499,000            4,209,209
                                             ==========           ==========
</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' EQUITY

<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
                                    =========      =======      ========       =========        ========
</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                Date of
                                                                         Incorporation on       Incorporation on
                                                      Year Ended       October 11, 2007 to    October 11, 2007 to
                                                       March 31,            March 31,              March 31,
                                                         2009                 2008                   2009
                                                       --------             --------               --------
<S>                                                    <C>                  <C>                    <C>
OPERATING ACTIVITIES
  Net loss for the period                              $(52,521)            $ (1,815)              $(54,336)
  Adjustments To Reconcile Net Loss To Net
   Cash Used In Operating Activities
     Amortization expense                                 1,500                  125                  1,625
  Changes in operating assets and liabilities:
     Accounts payable and accrued liabilities              (750)               1,500                    750
                                                       --------             --------               --------

Net cash used in operating activities                   (51,771)                (190)               (51,961)
                                                       --------             --------               --------

INVESTING ACTIVITIES
  Website                                                    --               (4,500)                (4,500)
                                                       --------             --------               --------

Net cash used in investing activities                        --               (4,500)                (4,500)
                                                       --------             --------               --------

FINANCING ACTIVITIES
  Proceeds from issuance of common stock                     --               58,950                 58,950
                                                       --------             --------               --------

Net cash provided by financing activities                    --               58,950                 58,950
                                                       --------             --------               --------

(Decrease) increase in cash during the period           (51,771)              54,260                  2,489

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

Cash, end of the period                                $  2,489             $ 54,260               $  2,489
                                                       ========             ========               ========

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, 2009


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 in accordance with SFAS
#7, 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. See Note 5.

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

In February  1997,  the FASB issued SFAS No. 128,  "Earnings  Per Share",  which
specifies the computation, presentation and disclosure requirements for earnings
(loss) per share for entities  with  publicly  held common  stock.  SFAS No. 128
supersedes the provisions of APB No. 15, and requires the  presentation of basic
earnings (loss) per share and diluted earnings (loss) per share. The Company has
adopted the provisions of SFAS No. 128 effective its inception.

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.

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

                                 March 31, 2009


NOTE 2. (CONTINUED)

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.

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.

INCOME TAXES

Income taxes are provided in accordance  with Statement of Financial  accounting
Standards No. 109 (SFAS 109),  Accounting for 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 of all of the deferred
tax assets will 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

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

                                 March 31, 2009


NOTE 2. (CONTINUED)

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
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, 2009 of $54,336.  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, 2010.

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.

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

                                 March 31, 2009


NOTE 3. (CONTINUED)

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.

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's  neither  owns nor  leases  any real or  personal  property.  The
Company's  Directors  provides  office  space free of charge.  The  officers and
directors of the Company are 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.

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, 2009


NOTE 6. INCOME TAXES

Net  deferred  tax  assets  are $nil.  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 March 31,  2009,  the Company the Company has a net  operating  loss carry
forward of approximately  $54,336, of which $1,815 will expire by March 31, 2028
and the balance of $52,521 by March 31, 2029.

The Company has not filed its federal tax returns since inception.

NOTE 7. WEBSITE

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

Website costs          $4,500         $1,625                $2,875
                       ======         ======                ======

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").
FSP FAS 157-4 provides  guidance on estimating  fair value when market  activity
has  decreased   and  on   identifying   transactions   that  are  not  orderly.
Additionally,  entities are  required to disclose in interim and annual  periods
the inputs and  valuation  techniques  used to measure  fair value.  This FSP is
effective for interim and annual periods ending after June 15, 2009. The Company
does not expect the adoption of FSP FAS 157-4 will have a material impact on its
financial condition or results of operation.

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

                                 March 31, 2009


NOTE 9. (CONTINUED)

In October 2008, the FASB issued FSP No. FAS 157-3,  "Determining the Fair Value
of a Financial  Asset When the Market for That Asset is Not  Active,"  ("FSP FAS
157-3"), which clarifies application of SFAS 157 in a market that is not active.
FSP FAS 157-3 was effective  upon  issuance,  including  prior periods for which
financial  statements have not been issued. The adoption of FSP FAS 157-3 had no
impact on the  Company's  results of  operations,  financial  condition  or cash
flows.

In  December  2008,  the  FASB  issued  FSP  No.  FAS  140-4  and  FIN  46(R)-8,
"Disclosures  by Public  Entities  (Enterprises)  about  Transfers  of Financial
Assets and Interests in Variable Interest  Entities." This  disclosure-only  FSP
improves the  transparency of transfers of financial  assets and an enterprise's
involvement   with   variable   interest    entities,    including    qualifying
special-purpose  entities.  This FSP is effective for the first reporting period
(interim or annual)  ending after  December 15, 2008,  with earlier  application
encouraged. The Company adopted this FSP effective January 1, 2009. The adoption
of the FSP had no impact  on the  Company's  results  of  operations,  financial
condition or cash flows.

In December 2008, the FASB issued FSP No. FAS 132(R)-1,  "Employers' Disclosures
about Postretirement Benefit Plan Assets" ("FSP FAS 132(R)-1"). FSP FAS 132(R)-1
requires   additional  fair  value  disclosures  about  employers'  pension  and
postretirement  benefit plan assets  consistent with guidance  contained in SFAS
157. Specifically,  employers will be required to disclose information about how
investment  allocation decisions are made, the fair value of each major category
of plan assets and information about the inputs and valuation techniques used to
develop the fair value  measurements  of plan assets.  This FSP is effective for
fiscal  years ending  after  December 15, 2009.  The Company does not expect the
adoption of FSP FAS 132(R)-1 will have an impact on its  financial  condition or
results of operation.

In September  2008, the FASB issued  exposure  drafts that eliminate  qualifying
special  purpose  entities  from the guidance of SFAS No. 140,  "Accounting  for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities,"
and FASB  Interpretation 46 (revised December 2003),  "Consolidation of Variable
Interest  Entities  - an  interpretation  of ARB  No.  51,"  as  well  as  other
modifications. While the proposed revised pronouncements have not been finalized
and the proposals are subject to further public comment, the Company anticipates

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

                                 March 31, 2009


NOTE 9. (CONTINUED)

the changes will not have a any impact on the  Company's  financial  statements.
The changes would be effective March 1, 2010, on a prospective basis.

In June 2008,  the FASB  issued FASB Staff  Position  EITF  03-6-1,  DETERMINING
WHETHER   INSTRUMENTS   GRANTED  IN   SHARE-BASED   PAYMENT   TRANSACTIONS   ARE
PARTICIPATING SECURITIES, ("FSP EITF 03-6-1"). FSP EITF 03-6-1 addresses whether
instruments  granted  in  share-based  payment  transactions  are  participating
securities  prior  to  vesting,  and  therefore  need  to  be  included  in  the
computation  of earnings  per share under the  two-class  method as described in
FASB Statement of Financial  Accounting Standards No. 128, "Earnings per Share."
FSP EITF 03-6-1 is effective  for financial  statements  issued for fiscal years
beginning on or after December 15, 2008 and earlier  adoption is prohibited.  We
are not required to adopt FSP EITF  03-6-1;  neither do we believe that FSP EITF
03-6-1  would not have any effect on our  consolidated  financial  position  and
results of operations if adopted.

In May 2008, the Financial  Accounting  Standards Board ("FASB") issued SFAS No.
163, "Accounting for Financial Guarantee Insurance Contracts-and  interpretation
of FASB  Statement  No. 60".  SFAS No. 163 clarifies how Statement 60 applies to
financial   guarantee  insurance   contracts,   including  the  recognition  and
measurement  of premium  revenue and claims  liabilities.  This  statement  also
requires expanded  disclosures about financial  guarantee  insurance  contracts.
SFAS No. 163 is effective  for fiscal years  beginning on or after  December 15,
2008, and interim periods within those years.  SFAS No. 163 has no effect on the
Company's  financial position,  statements of operations,  or cash flows at this
time.

In May 2008, the Financial  Accounting  Standards Board ("FASB") issued SFAS No.
162, "The Hierarchy of Generally Accepted Accounting  Principles".  SFAS No. 162
sets  forth  the  level of  authority  to a given  accounting  pronouncement  or
document by  category.  Where there might be  conflicting  guidance  between two
categories,  the more  authoritative  category will  prevail.  SFAS No. 162 will
become  effective 60 days after the SEC approves  the PCAOB's  amendments  to AU
Section 411 of the AICPA Professional  Standards.  SFAS No. 162 has no effect on
the Company's  financial  position,  statements of operations,  or cash flows at
this time.

In March 2008, the Financial  Accounting  Standards Board, or FASB,  issued SFAS
No. 161,  Disclosures  about Derivative  Instruments and Hedging  Activities--an
amendment of FASB Statement No. 133. This standard requires companies to provide

                                      F-12
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS

                                 March 31, 2009


NOTE 9. (CONTINUED)

enhanced   disclosures   about  (a)  how  and  why  an  entity  uses  derivative
instruments,  (b) how  derivative  instruments  and  related  hedged  items  are
accounted for under Statement 133 and its related  interpretations,  and (c) how
derivative  instruments  and related  hedged items affect an entity's  financial
position, financial performance, and cash flows. This Statement is effective for
financial statements issued for fiscal years and interim periods beginning after
November 15, 2008, with early  application  encouraged.  The Company has not yet
adopted  the  provisions  of SFAS No.  161,  but does not  expect it to have any
impact on its  consolidated  financial  position,  results of operations or cash
flows.

In  December  2007,  the SEC  issued  Staff  Accounting  Bulletin  (SAB) No. 110
regarding  the use of a  "simplified"  method,  as discussed in SAB No. 107 (SAB
107),  in  developing  an  estimate of expected  term of "plain  vanilla"  share
options in accordance with SFAS No. 123 (R), Share-Based Payment. In particular,
the staff  indicated in SAB 107 that it will accept a company's  election to use
the  simplified  method,  regardless  of  whether  the  company  has  sufficient
information to make more refined estimates of expected term. At the time SAB 107
was issued,  the staff believed that more detailed  external  information  about
employee exercise behavior (e.g.,  employee exercise patterns by industry and/or
other categories of companies)  would,  over time,  become readily  available to
companies.  Therefore,  the staff  stated in SAB 107 that it would not  expect a
company to use the simplified  method for share option grants after December 31,
2007.  The staff  understands  that such  detailed  information  about  employee
exercise behavior may not be widely available by December 31, 2007. Accordingly,
the staff will continue to accept, under certain  circumstances,  the use of the
simplified  method  beyond  December 31, 2007.  The Company  currently  uses the
simplified  method for "plain  vanilla"  share  options and  warrants,  and will
assess the impact of SAB 110 for fiscal year 2009.  It is not believed that this
will have an impact on the Company's consolidated financial position, results of
operations or cash flows.

In December  2007,  the FASB issued SFAS No. 160,  Noncontrolling  Interests  in
Consolidated  Financial  Statements--an  amendment of ARB No. 51. This statement
amends  ARB  51  to  establish   accounting  and  reporting  standards  for  the
noncontrolling  interest  in a  subsidiary  and  for  the  deconsolidation  of a
subsidiary.  It clarifies that a  noncontrolling  interest in a subsidiary is an
ownership interest in the consolidated  entity that should be reported as equity
in the  consolidated  financial  statements.  Before this  statement was issued,
limited guidance existed for reporting  noncontrolling  interests.  As a result,
considerable  diversity in practice existed.  So-called  minority interests were
reported in the consolidated  statement of financial  position as liabilities or

                                      F-13
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS

                                 March 31, 2009


NOTE 9. (CONTINUED)

in the mezzanine section between liabilities and equity. This statement improves
comparability  by eliminating  that  diversity.  This statement is effective for
fiscal years,  and interim  periods  within those fiscal years,  beginning on or
after  December 15, 2008 (that is,  January 1, 2009,  for entities with calendar
year-ends). Earlier adoption is prohibited. The effective date of this statement
is the same as that of the related  Statement  141 (revised  2007).  The Company
will adopt this Statement  beginning March 1, 2009. It is not believed that this
will have an impact on the Company's consolidated financial position, results of
operations or cash flows.

In  December  2007,  the FASB,  issued  FAS No.  141  (revised  2007),  Business
Combinations'.   This  Statement  replaces  FASB  Statement  No.  141,  Business
Combinations,  but retains the  fundamental  requirements in Statement 141. This
Statement  establishes  principles and  requirements  for how the acquirer:  (a)
recognizes  and measures in its financial  statements  the  identifiable  assets
acquired,  the  liabilities  assumed,  and any  noncontrolling  interest  in the
acquiree;  (b)  recognizes  and measures  the goodwill  acquired in the business
combination  or a  gain  from  a  bargain  purchase;  and  (c)  determines  what
information to disclose to enable users of the financial  statements to evaluate
the nature and financial  effects of the business  combination.  This  statement
applies prospectively to business combinations for which the acquisition date is
on or after the beginning of the first annual  reporting  period beginning on or
after  December  15,  2008.  An entity may not apply it before  that  date.  The
effective  date of this  statement  is the  same  as  that of the  related  FASB
Statement  No.  160,   Noncontrolling   Interests  in   Consolidated   Financial
Statements. The Company will adopt this statement beginning March 1, 2009. It is
not  believed  that  this will  have an  impact  on the  Company's  consolidated
financial position, results of operations or cash flows.

                                      F-14