UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

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

                       For the quarter ended June 30, 2008

                                       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 333-151141


                           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: 702-948-5013

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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 [ ]

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 [ ]

Number of shares  outstanding  of the  registrant's  class of common stock as of
July 23, 2008: 5,499,000

Authorized share capital of the registrant:  75,000,000 common shares, par value
of $0.001

The Company  recorded  $nil sales  revenue for the three  months  ended June 30,
2008.
<PAGE>
                           FORWARD-LOOKING STATEMENTS

THIS QUARTERLY REPORT ON FORM 10-Q CONTAINS  PREDICTIONS,  PROJECTIONS AND OTHER
STATEMENTS ABOUT THE FUTURE THAT ARE INTENDED TO BE "FORWARD-LOOKING STATEMENTS"
WITHIN THE MEANING OF SECTION 21E OF THE  SECURITIES  EXCHANGE  ACT OF 1934,  AS
AMENDED (COLLECTIVELY, "FORWARD-LOOKING STATEMENTS"). FORWARD-LOOKING STATEMENTS
INVOLVE  RISKS AND  UNCERTAINTIES.  A NUMBER OF  IMPORTANT  FACTORS  COULD CAUSE
ACTUAL  RESULTS  TO  DIFFER   MATERIALLY  FROM  THOSE  IN  THE   FORWARD-LOOKING
STATEMENTS. IN ASSESSING FORWARD-LOOKING  STATEMENTS CONTAINED IN THIS QUARTERLY
REPORT  ON FORM  10-Q,  READERS  ARE  URGED  TO READ  CAREFULLY  ALL  CAUTIONARY
STATEMENTS  - INCLUDING  THOSE  CONTAINED  IN OTHER  SECTIONS OF THIS  QUARTERLY
REPORT ON FORM 10-Q.  AMONG SAID  RISKS AND  UNCERTAINTIES  IS THE RISK THAT THE
COMPANY WILL NOT SUCCESSFULLY  EXECUTE ITS BUSINESS PLAN, THAT ITS MANAGEMENT IS
ADEQUATE TO CARRY OUT ITS BUSINESS PLAN AND THAT THERE WILL BE ADEQUATE  CAPITAL
OR THEY MAY BE UNSUCCESSUFL FOR TECHNICAL, ECONOMIC OR OTHER REASONS.

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                                                                     Page Number
                                                                     -----------

     Balance Sheets.................................................       3

     Statements of Operations.......................................       4

     Statement of Stockholder's Equity..............................       5

     Statements of Cash Flows.......................................       6

     Notes to the Financial Statements.............................        7

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

                                 BALANCE SHEETS
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

                                                            June 30,           March 31,
                                                              2008               2008
                                                            --------           --------
                                                           (unaudited)
<S>                                                         <C>                <C>
ASSETS

Current assets
  Cash                                                      $ 48,465           $ 54,260
                                                            --------           --------

      Total current assets                                    48,465             54,260

Website, net of accumulated amortization (Note 7)              4,000              4,375
                                                            --------           --------

Total assets                                                $ 52,465           $ 58,635
                                                            ========           ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued liabilities                  $  4,500           $  1,500
  Due to director (Note 5)                                       414                 --
                                                            --------           --------

      Total current liabilities                                4,914              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           (11,399)            (1,815)
                                                            --------           --------

Total stockholders' equity                                    47,551             57,135
                                                            --------           --------

Total liabilities and stockholders' equity                  $ 52,465           $ 58,635
                                                            ========           ========
</TABLE>


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

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

                            STATEMENTS OF OPERATIONS
                                   (unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                           Date of
                                                    Three Months       Incorporation on
                                                       Ended          October 11, 2007 to
                                                      June 30,             June 30,
                                                        2008                 2008
                                                     ----------           ----------
<S>                                                  <C>                  <C>
REVENUE                                              $       --           $       --
                                                     ----------           ----------
OPERATING EXPENSES
  Amortization                                              375                  500
  Game development costs                                  3,000                3,000
  General & Administrative                                6,209                7,279
  Organization                                               --                  620
                                                     ----------           ----------
Loss before income taxes                                 (9,584)             (11,399)

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

Net loss                                             $   (9,584)          $  (11,399)
                                                     ==========           ==========

Basic and diluted loss per Common share (1)          $       --
                                                     ==========
Weighted average number of common shares
 outstanding (Note 4)                                 5,499,000
                                                     ==========
</TABLE>


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

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

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

                       STATEMENTS OF STOCKHOLDERS' EQUITY
                                   (unaudited)
--------------------------------------------------------------------------------

<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>
Incorporation, 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 period                     --          --            --          (9,584)         (9,584)
                                     ---------      ------       -------        --------         -------

Balance June 30, 2008                5,499,000      $5,499       $53,451        $(11,399)        $47,551
                                     =========      ======       =======        ========         =======
</TABLE>


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

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

                            STATEMENTS OF CASH FLOWS
                                   (unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                  Date of
                                                           Three Months       Incorporation on
                                                              Ended          October 11, 2007 to
                                                             June 30,             June 30,
                                                               2008                 2008
                                                             --------             --------
<S>                                                          <C>                  <C>
OPERATING ACTIVITIES
  Net loss for the period                                    $ (9,584)            $(11,399)
  Adjustments To Reconcile Net Loss To Net Cash
   Used In Operating Activities
     Amortization expense                                         375                  500
  Changes in operating assets and liabilities:
     Accounts payable and accrued liabilities                   3,000                4,500
     Due to director                                              414                  414
                                                             --------             --------

Net cash used in operating activities                          (5,795)              (5,985)
                                                             --------             --------
INVESTING ACTIVITIES
  Website                                                          --               (4,500)
                                                             --------             --------

Net cash used in investing activities                              --               (4,500)
                                                             --------             --------
FINANCING ACTIVITIES
  Proceeds from issuance of common stock                           --               58,950
                                                             --------             --------

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

(Decrease) increase in cash during the period                  (5,795)              48,465

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

Cash, end of the period                                      $ 48,465             $ 48,465
                                                             ========             ========
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.

                                       6
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2008
                                   (unaudited)
--------------------------------------------------------------------------------

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.

                                       7
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2008
                                   (unaudited)
--------------------------------------------------------------------------------

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 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
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.

                                       8
<PAGE>
                            KRYTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2008
                                   (unaudited)
--------------------------------------------------------------------------------

NOTE 2. (CONTINUED)

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 incorporation
to March 31, 2008 of $11,399.  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, 2009.

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 completed a Registration Statement with the SEC.

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

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

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

                                       9
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2008
                                   (unaudited)
--------------------------------------------------------------------------------

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.

The  amount due to a  director  of $414 has no  repayment  terms,  is  unsecured
without interest and is for reimbursement of company incorporation expenses. The
company plans to pay the amount within the next quarter.

                                       10
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 2008
                                   (unaudited)
--------------------------------------------------------------------------------

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,  2008,  the Company has a net  operating  loss carry  forward of
approximately  $1,815,  which  will  expire 20 years  from the date the loss was
incurred.

NOTE 7. WEBSITE

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

Website costs          $4,500            $500                  $4,000
                       ======            ====                  ======

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.

                                       11
<PAGE>
ITEM 2. MANAGEMENT'S PLAN OF OPERATION

GENERAL OVERVIEW

Kryptic  Entertainment Inc. (referred to in this prospectus as "Kryptic",  "us",
"we" and "our") 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) 948-5013.  As of the date of this
prospectus,  we are a  development  stage  company  with no revenue  and limited
operations to date.

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". To
date, we have only developed the overall storyline and initial renderings of our
game storyboard development,  along the logo for our brand. 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 36 months, and currently estimate that we
will  require in excess of $2.5-3  million in  additional  financing to complete
development and then subsequently launch our game.

We must  complete  3 major  development  milestones  prior  to  having  our game
available for commercial  sale and use. First, we are planning to complete a DVD
based video trailer over the next 8-9 months of our operations. The objective is
to  provide a  visually  engaging  and  dynamic  representation  through  motion
graphics and special  effects to illustrate  the key components and processes of
the Krypton Jam game. The trailer will contain  summary  representations  of our
proposed  game,   characters  and  realm   development   that  we  can  use  for
presentations  to the industry and  financial  community.  It will also serve to
give us  valuable  feedback  on our concept  from our own  website  viewers.  We
believe we have sufficient  funding for our first year operations and completion
of this task. We will then need to secure the additional  financing to develop a
playable  demonstration  model,  and then the commercial game over the following
minimum 26 month period.

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.  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 is being designed
to support  positive  messages and resolution of conflict through team work. The
ultimate goal of the game is winning the title of "Master of the Kryptic Realms"
by competing in quests and against  various  creatures on the basketball  court.
Each character  within  Krypton Jam will have its own strengths and  weaknesses,
abilities  and  magic.  A  diversified  team  will be  required  for  any  given
competitor to win. Each court will have  different  attributes  and obstacles to
challenge or assist the players.  As the tournament  progresses,  the challenges
and geography of the courts will become  increasingly  complex.  The quests will
allow  players to obtain  new  powers  that are not  initially  accessible  when
creating their characters, giving advantages to those characters that succeed on
both the court and on daring quests. We are also planning to add new characters,
environments,  story-line twists and secrets on a regular basis to keep the game
fresh for the players,  and interactive social chat rooms to avoid the downfalls
of many previous on-line  multi-player  games,  which typically become redundant
and stale for the users over time.

We 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.

                                       12
<PAGE>
Since  incorporation,  we have  not made any  significant  purchases  or sale of
assets,   nor  have  we  been   involved  in  any   mergers,   acquisitions   or
consolidations.  Kryptic Entertainment has never declared bankruptcy,  has never
been in  receivership,  and has  never  been  involved  in any  legal  action or
proceedings.

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-Q; and our S-1 filed on May 23, 2008.

We are a  development  stage  company with very limited  operations  to date, no
revenue,  very limited financial backing and few assets.  Our plan of operations
over the next 12 months is to gain support for our concept and raise  sufficient
suitable financing to commence with the development of our playable demo for our
Krypton Jam online MMOG game. In order to achieve our plan, we have  established
the following goals over the next 12 months:

     *    Create and execute a DVD trailer  which  illustrates  our game concept
          within 10 Months
     *    Upload our trailer on our company website after completion
     *    Secure additional  suitable  financing to continue into the next phase
          our game development (ie:Playable Demo)
     *    Research  & select of most  effective  game  engine  for  Krypton  Jam
          requirements
     *    Upon selection of game engine,  interview programming  specialists who
          have experience with specific coding  languages to develop and support
          the game engine

During the first stages of our company's growth, our officers and directors will
be responsible for executing the business plan at no charge.  Since we intend to
operate with very limited  administrative  support,  the officers and  directors
will continue to be responsible for  administering  the company for at least the
first  year of  operations.  Management  has no  intention  at this time to hire
additional  employees  during  the  first  year of  operations.  Due to  limited
financial  resources,  each of the management team will dedicate between 25 - 30
hours per week, to ensure all operations are executed.

Our first quarter budget (May - July 2008) was  originally  disclosed in our S-1
as follows:

                       Description                        Amount
                       -----------                        ------

               Legal/accounting *                         $ 1,500
               Transfer agent *                             1,500
               Office rental *                                450
               Office expenses & miscellaneous *            1,000
               Storyline development                        3,500
               Storyboard development                       1,000
                                                          -------
               TOTAL                                      $ 8,950
                                                          =======

Please  refer  to  the  budget  above.  In  addition  to  corporate  maintenance
expenditures (noted with an '*') we planned the following major activities:

     *    Obtain quotes from companies to produce our DVD trailer,  based on our
          budget, timeline and creative expectations.
     *    Work with the successful  contractor to complete a detailed  storyline
          based on our Krypton Jam Business & Game Development Plan
     *    On completion of the storyline,  create a story board identifying each
          of the actions to be included in each frame of  Storyline.  This story
          board is a series of sketches  showing  each shot of the DVD  Trailer,
          with  dialogue  and scene number  notations.  This is used to plot the
          sequence of the DVD.

                                       13
<PAGE>
As of the date  hereof,  we are in the  third  month of our first  quarter  with
respect to our plan. We have chosen a Canadian  company to produce our storyline
and trailer based on the concept  developed by our officers and  directors.  The
outcome will encompass a detailed storyline, completed game elements, our unique
game features,  stylistic in-game movement patterns,  game development strategy,
market analysis,  and competition.  It will also detail how the game player will
interact with the game, the fantasty  realms a player would expect to encounter,
character  feature sets, and the  circumstances of why special  character powers
are deployed in the game. We have paid $3,000 to date for this activity.

We anticipate that the story board will be developed early in the second quarter
at a cost approximating our original budget.

RESULTS OF OPERATIONS

Our company  posted  losses of $9,584 for the first quarter ended June 30, 2008.
Comparisons  are not meaningful as our company was  incorporated  on October 11,
2007.  From inception to June 30, 2008 we have incurred  losses of $11,399.  The
principal  component  of our losses  for the three  months  ended June 30,  2008
included  general  and   administrative   costs  of  $6,209,   preliminary  game
development  costs of $3,000 and  amortization of our website of $375. Our first
quarter administrative  expenses include costs for our registration statement of
$5,412.

LIQUIDITY AND CASH RESOURCES

At June 30, 2008, we had working capital of $43,551 compared to $52,760 at March
31,  2008.  We opened the first  quarter  with  $54,260 in cash.  As of the date
hereof, we have approximately  $43,500.  Our budgeted  expenditures for the next
9-10 months, which includes the production of the DVD trailer, are approximately
$38,000.

Because we have not generated any revenue from our business, and we are at least
36 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  will be  extinguished  within the next 9-10 months  provided we do not
have any unanticipated expenses. 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.

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<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our business is not  currently  subject to market  risk.  All of our business is
currently conducted in US dollars,  which is our functional currency. We have no
debt and are not subject to any interest rate risk.

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF EFFECTIVENESS OF DISCLOSURE CONTROLS AND PROCEDURES

As  required  by Rule  13a-15  under the 1934 Act,  as of the end of the  period
covered by this quarterly report,  being the fiscal quarter ended June 30, 2008,
we have  carried  out an  evaluation  of the  effectiveness  of the  design  and
operation of our disclosure controls and procedures. This evaluation was carried
out  under  the  supervision  and  with  the  participation  of our  management,
including our Chief Executive  Officer and Chief Financial  Officer.  Based upon
the results of that evaluation,  our Chief Executive Officer and Chief Financial
Officer  have  concluded  that,  as of the  end of the  period  covered  by this
quarterly  report,  our disclosure  controls and  procedures  were effective and
provide reasonable assurance that material information related to our company is
recorded, processed and reported in a timely manner.

Our management,  with the participation of our Chief Executive Officer and Chief
Financial  Officer,  is  responsible  for the design of internal  controls  over
financial  reporting.  The fundamental  issue is to ensure all  transactions are
properly authorized and identified and entered into a well-designed,  robust and
clearly  understood  system on a timely  basis to minimize  risk of  inaccuracy,
failure to fairly reflect  transactions,  failure to fairly record  transactions
necessary to present  financial  statements  in accordance  with the U.S.  GAAP,
unauthorized  receipts and  expenditures  or the inability to provide  assurance
that  unauthorized  acquisitions or dispositions of assets can be detected.  The
small size of our company makes the  identification  and  authorization  process
relatively  simple and efficient and a process for reviewing  internal  controls
over financial  reporting has been  developed.  To the extent possible given our
company's small size, the internal control  procedures provide for separation of
duties for handling,  approving and coding invoices,  entering transactions into
the accounts,  writing  checks and requests for wire  transfers.  As of June 30,
2008, our Chief Executive  Officer and Chief Financial Officer conclude that our
system of internal  controls is adequate and comparable to those of issuers of a
similar  size and  nature.  There were no  significant  changes to our  internal
controls or in other  factors that could  significantly  affect  these  controls
during the most recent  quarter ended June 30, 2008,  including any  significant
deficiencies  or material  weaknesses  of internal  controls  that would require
corrective action.

MANAGEMENT'S REPORT ON INTERNAL CONTROLS OVER FINANCIAL REPORTING

Management is responsible for  establishing  and maintaining  adequate  internal
control  over our  financial  reporting.  Our system of  internal  control  over
financial  reporting is designed to provide reasonable  assurance  regarding the
reliability of financial  reporting and the preparation of financial  statements
for external purposes in accordance with the U.S. GAAP.  Because of its inherent
limitations, internal control over financial reporting may not prevent or detect
misstatements.  Also,  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.

INHERENT LIMITATIONS OF INTERNAL CONTROLS

Our internal control over financial  reporting is designed to provide reasonable
assurance  regarding the reliability of financial  reporting and the preparation
of financial  statements for external purposes in accordance with the U.S. GAAP.
Our internal  control  over  financial  reporting  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 our
          assets;
     *    provide  reasonable   assurance  that  transactions  are  recorded  as
          necessary to permit preparation of financial  statements in accordance
          with the U.S. GAAP, and that our receipts and  expenditures  are being
          made only in accordance  with  authorizations  of our  management  and
          directors; and

                                       15
<PAGE>
     *    provide reasonable  assurance regarding prevention or timely detection
          of  unauthorized  acquisition,  use, or disposition of our assets that
          could have a material effect on the financial statements.

Management does not expect that our internal controls will prevent or detect all
errors  and all  fraud.  A control  system,  no  matter  how well  designed  and
operated,  can  provide  only  reasonable,  not  absolute,  assurance  that  the
objectives  of the  control  system  are met.  Further,  the design of a control
system  must  reflect  the fact that  there are  resource  constraints,  and the
benefits of controls must be considered relative to their costs.  Because of the
inherent  limitations in all control systems, no evaluation of internal controls
can provide  absolute  assurance that all control issues and instances of fraud,
if any,  have been  detected.  Also,  any  evaluation  of the  effectiveness  of
controls in future periods are subject to the risk that those internal  controls
may become  inadequate  because of changes in business  conditions,  or that the
degree of compliance with the policies or procedures may deteriorate.

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

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

None.

ITEM 5. OTHER INFORMATION

On  June 9,  2008  the SEC  declared  our  registration  statement  on Form  S-1
effective,  which  registered  999,000  common  shares  for  resale  held  by 39
non-affiliated investors..

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Pursuant to Rule 601 of Regulation  SK, the following  exhibits are included
herein or incorporated by reference.

  Exhibit
  Number                                Description
  ------                                -----------
    3.1        Articles of Incorporation*
    3.2        By-laws*
   31.1        Certification of CEO Pursuant to 18 U.S.C. ss. 1350, Section 302
   31.2        Certification  of CFO Pursuant to 18 U.S.C. ss. 1350, Section 302
   32.1        Certification  Pursuant  to 18 U.S.C.  ss.1350,  Section 906
   32.2        Certification  Pursuant  to 18 U.S.C.  ss. 1350, Section 906

----------
*    Incorporated by reference to our S-1 A/2 and SB-2  Registration  Statement,
     File Number 333-151141.

(b) Reports on Form 8-K

None.

                                       16
<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 23rd day of July,
2008.

                               KRYPTIC ENTERTAINMENT INC.


Date: July 23, 2008            By: /s/ John Lagourgue
                                  ----------------------------------------------
                               Name: John Lagourgue
                               Title: President/CEO, Principal Executive Officer


Date:  July 23, 2008           By: /s/ Shan Qiang
                                  ----------------------------------------------
                               Name:  Shan Qiang
                               Title: Secretary Treasurer, Principal Financial
                                      and Accounting Officer

                                       17