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 December 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 000-52374


                           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
January 28, 2010: 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 nine months ended  December 31,
2009.
<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

     Statements of Stockholders' Deficit............................      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>
                                                           December 31,        March 31,
                                                              2009               2009
                                                            --------           --------
                                                           (unaudited)
<S>                                                         <C>                <C>
ASSETS

Current assets
  Cash                                                      $  5,663           $  2,489
                                                            --------           --------

      Total current assets                                     5,663              2,489

Website, net of accumulated amortization (Note 7)              1,750              2,875
                                                            --------           --------

Total assets                                                $  7,413           $  5,364
                                                            ========           ========

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities
  Accounts payable and accrued liabilities                  $  1,500           $    750
  Due to director                                             18,500                 --
                                                            --------           --------

Total current liabilities                                     20,000                750
                                                            --------           --------

Stockholders' deficit (Note 4,5)
  Authorized:
    75,000,000 common shares
    Par value $0.001
  Issued and outstanding:
    5,499,000 common shares                                    5,499              5,499
  Additional paid-in capital                                  53,451             53,451
  Deficit accumulated during the development stage           (71,537)           (54,336)
                                                            --------           --------

Total stockholders' deficit                                  (12,587)             4,614
                                                            --------           --------

Total liabilities and stockholders' deficit                 $  7,413           $  5,364
                                                            ========           ========
</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
                                                                                                      Incorporation on
                             3 Months Ended    3 Months Ended    9 Months Ended    9 Months Ended    October 11, 2007 to
                               December 31,      December 31,      December 31,      December 31,        December 31,
                                  2009              2008              2009              2008                2009
                               ----------        ----------        ----------        ----------          ----------
<S>                            <C>               <C>               <C>               <C>                 <C>
REVENUE                        $       --        $       --        $       --        $       --          $       --
                               ----------        ----------        ----------        ----------          ----------
OPERATING EXPENSES
  Amortization                        375               375             1,125             1,125               2,750
  Game development costs               --            21,100                --            24,100              29,300
  General & administrative          6,419             2,674            16,076            20,477              38,867
  Organization                         --                --                --                --                 620
                               ----------        ----------        ----------        ----------          ----------
Loss before income taxes           (6,794)          (24,149)          (17,201)          (45,702)            (71,537)

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

Net loss                       $   (6,794)       $  (24,149)       $  (17,201)       $  (45,702)         $  (71,537)
                               ==========        ==========        ==========        ==========          ==========

Basic and diluted loss per
 common share (1)              $       --        $       --        $       --        $       --
                               ==========        ==========        ==========        ==========
Weighted average number
of common shares
outstanding (Note 4)            5,499,000         5,499,000         5,499,000         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' DEFICIT
                                   (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>
Inception, October 11, 2007                --      $    --      $     --       $      --        $     --

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

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

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

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


Net loss for the year                      --           --            --         (52,521)        (52,521)
                                    ---------      -------      --------       ---------        --------

Balance March 31, 2009              5,499,000        5,499        53,451         (54,336)          4,614
                                    ---------      -------      --------       ---------        --------

Net loss for the period                    --           --            --         (17,201)        (17,201)
                                    ---------      -------      --------       ---------        --------

Balance December 31, 2009           5,499,000      $ 5,499      $ 53,451       $ (71,537)       $(12,587)
                                    =========      =======      ========       =========        ========
</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
                                                            Nine Months        Nine Months     Incorporation on
                                                              Ended              Ended        October 11, 2007 to
                                                            December 31,       December 31,       December 31,
                                                               2009               2008               2009
                                                             --------           --------           --------
<S>                                                          <C>                <C>                <C>
OPERATING ACTIVITIES
  Net loss for the period                                    $(17,201)          $(45,702)          $(71,537)
  Adjustments To Reconcile Net Loss To Net
   Cash Used In Operating Activities
     Amortization expense                                       1,125              1,125              2,750
  Changes in operating assets and liabilities:
     Accounts payable and accrued liabilities                     750                (80)             1,500
     Due to director                                           18,500               (150)            18,500
                                                             --------           --------           --------

Net cash provided by (used in) operating activities             3,174            (44,807)           (48,787)
                                                             --------           --------           --------
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
                                                             --------           --------           --------

Increase (decrease) in cash during the period                   3,174            (44,807)             5,663

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

Cash, end of the period                                      $  5,663           $  9,453           $  5,663

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
                                December 31, 2009
                                   (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 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.

These interim  financial  statements of the Company as of December 31, 2009, and
for the periods ended,  and cumulative  from  inception,  are unaudited.  In the
opinion of management, the interim financial statements include all adjustments,
consisting of only normal recurring adjustments, necessary to present fairly the
Company's  financial  position as of December 31,  2009,  and the results of its
operations  and its cash flows for the periods  ended  December  31,  2009,  and
cumulative from inception.  These results are not necessarily  indicative of the
results  expected for the calendar year ending March 31, 2010. The  accompanying
financial  statements and notes thereto do not reflect all disclosures  required
under accounting  principles  generally accepted in the United States.  Refer to
the Company's audited financial  statements as of March 31, 2009, filed with the
SEC, for additional information, including significant accounting policies.

NOTE  2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES

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

ACCOUNTING BASIS

The basis is generally accepted accounting principles.

EARNINGS PER SHARE

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

                                       7
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2009
                                   (unaudited)


NOTE 2. (CONTINUED)

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

DIVIDENDS

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

CASH AND BANK ACCOUNTS

The Company's bank account is not FDIC insured.

FOREIGN CURRENCY TRANSLATION

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

CASH EQUIVALENTS

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

FAIR VALUE OF FINANCIAL INSTRUMENTS

The  Company  estimates  the  fair  value of  financial  instruments  using  the
available market  information and valuation  methods.  Considerable  judgment is
required in estimating fair value. Accordingly,  the estimates of fair value may
not be indicative  of the amounts the Company could realize in a current  market
exchange. As of December 31, 2009, the carrying value of accrued liabilities and
amounts due to a director  approximated  fair value due to the short-term nature
and maturity of these instruments.

INCOME TAXES

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

Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management,  it is more likely than not that some portion 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

                                       8
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2009
                                   (unaudited)


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
December 31, 2009 of $71,537.  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.

                                       9
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2009
                                   (unaudited)


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.

The amount due to a director of $18,500 has no  repayment  terms,  is  unsecured
without interest and is for  reimbursement of company  incorporation and general

                                       10
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2009
                                   (unaudited)


NOTE 5. (CONTINUED)

operating  expenses.  The  company  plans to pay the  amount  within the next 12
months, if it has sufficient cash to do so.

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

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 its last fiscal  year end,  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.

NOTE 7. WEBSITE

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

Website costs          $4,500               $2,750                 $1,750
                       ======               ======                 ======

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. SUBSEQUENT EVENTS

The Company  evaluated  events  occurring  between  the  balance  sheet date and
January 28, 2010, the date the financial  statements  were issued and there were
no significant events.

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

GENERAL OVERVIEW

Kryptic Entertainment Inc. (referred to 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.  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". 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 next 3-6 months.  On November
5, 2009,  Mr. John  Lagourgue  resigned as our President and a Director.  He was
replaced by Mr. Qiang,  who became our President and sole Director,  in addition
to his existing position of Secretary Treasurer and CFO. Mr. Qiang 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
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

                                       12
<PAGE>
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.

Our 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.

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; our S-1 filed on May 23, 2008, and
our 10K/A for March 31, 2009 filed on October 2, 2009.

We are a  development  stage  company with very limited  operations  to date, no
revenue,  very limited financial backing and few assets. During the first stages
of our  company's  growth,  our  officers  and  directors  are  responsible  for
executing  our business plan at no charge.  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
little 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 fiscal year
through unsecured, no interest loans.

We believe we require a minimum of $900,000 in  additional  financing to develop
our playable demo over a successive 12 month period from receipt, which would be
expended as follows:

Additional general and administrative costs                            $  70,000
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
                                                                        --------
                                                                        $900,000
                                                                        ========

RESULTS OF OPERATIONS

Our company  posted  losses of $17,201 for nine months  ended  December 31, 2009
compared to $45,702 for the  comparable  period.  From inception to December 31,
2009 we have incurred losses of $71,537.  The principal components of our losses
for the nine months ended December 31, 2009 included general and  administrative
costs of $16,076 and  amortization  of our website of $1,125.  This  compares to
$20,477 in general and admin expenses,  $24,100 for game  development and $1,125
for website amortization during the nine months ended December 31, 2008.

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<PAGE>
LIQUIDITY AND CASH RESOURCES

At December  31, 2009 we had a working  capital  deficit of $14,337  compared to
working capital of $1,739 at March 31, 2009. This deficit includes $18,500 owing
to our  director,  which we intend to repay  within the next 12 months if we are
successful  in raising  additional  financing.  At December 31, 2009 we had only
$5,663 in cash.

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 funding for the future development of our business
and to respond to unanticipated  requirements or expenses. 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.
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.  Obtaining  suitable  financing  has  also  become
particularly  challenging with the current credit and monetary  crisis.  In this
environment,  it is highly  unlikely that we will be successful in obtaining the
necessary  financing on a timely basis to continue with the  development  of our
game.

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.

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 DISCLOSURE CONTROLS AND PROCEDURES

We are required to maintain disclosure controls and procedures,  as such term is
defined in Rule 13a-15(e)  under the Securities  Exchange Act of 1934,  that are
designed to ensure that information required to be disclosed in our Exchange Act
reports is recorded, processed,  summarized and reported within the time periods
specified in the SEC rules and forms,  and that such  information is accumulated
and  communicated to our management,  including our CEO and CFO, to allow timely
decisions regarding required disclosure. As of December 31, 2009 we conducted an
evaluation,  under the  supervision,  and with the  participation of our CEO and
CFO, of the effectiveness of the design and operation of our disclosure controls
and  procedures.  Based on this  evaluation,  our CEO and CFO concluded that our
disclosure  controls and procedures  were not effective as described below under
"Material Weaknesses".

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

                                       14
<PAGE>
controls  can be  circumvented  by the  individual  acts  of  some  persons,  by
collusion  of two or more  people,  or by  management  or board  override of the
control.

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

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

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

Pertain to the maintenance of records that in reasonable  detail  accurately and
fairly reflect the  transactions  and dispositions of the assets of the company;
provide  reasonable  assurance  that  transactions  are recorded as necessary to
permit  preparation  of  financial  statements  in  accordance  with  accounting
principles  generally accepted in the United States of America and that receipts
and  expenditures  of the  company  are  being  made  only  in  accordance  with
authorizations  of  management  and  directors  of  the  company;   and  provide
reasonable  assurance  regarding  prevention or timely detection of unauthorized
acquisition,  use or  disposition  of the  company's  assets  that  could have a
material effect on the financial statements.

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

As of December 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.

                                       15
<PAGE>
IDENTIFIED WEAKNESSES

The matters  involving  internal  controls and  procedures  that our  management
considered to be material  weaknesses  under the standards of the Public Company
Accounting  Oversight Board was the lack of a functioning audit committee due to
a lack of a majority of independent  members and a lack of a majority of outside
directors on our board of directors,  resulting in ineffective  oversight in the
establishment and monitoring of required internal controls and procedures.  This
material  weaknesses  was  identified by our  management in connection  with the
review of our financial statements as of December 31, 2009.

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

MANAGEMENT'S REMEDIATION INITIATIVES

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

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

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

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

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

                           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.

                                       16
<PAGE>
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5. OTHER INFORMATION

On November  5, 2009 Mr.  John  Lagourgue  resigned  as our  President,  CEO and
Director.  Mr.  Shan Qiang  assumed  his  positions  and  currently  acts as our
President,  Secretary  Treasurer,  CFO and sole  Director.  Concurrent  with his
resignation,  Mr. Lagourgue agreed to sell all of his common shares to Mr. Qiang
in a private sale  transaction.  Mr. Qiang now holds 4,500,000 common shares, or
81.83% of our total outstanding common shares.

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 Pursuant to 18 U.S.C. ss. 1350, Section 302
   32.1        Certification  Pursuant  to 18 U.S.C.  ss.1350, Section 906

----------
*    Incorporated by reference to our S-1  Registration  Statement,  File Number
     333-151141

(b) Reports on Form 8-K

8-K filed August 6, 2009 and  amendments  thereto filed August 27, and September
8, 2009,  disclosing  the dismissal of Moore and  Associates  Chartered/Seale  &
Beers CPA's as our external  auditor and the appointment of Alan Weinberg CPA as
our new external auditor.

8-K filed November 6, 2009  disclosing the  resignation of Mr. John Lagourgue as
President and Director and appointment of Mr. Shan Qiang as President.

                                       17
<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  2nd day of
February, 2010.

                                      KRYPTIC ENTERTAINMENT INC.


Date: February 2, 2010                By: /s/ Shan Qiang
                                         ---------------------------------------
                                      Name:  Shan Qiang
                                      Title: President, CEO, Secretary Treasurer
                                             Principal Executive, Financial and
                                             Accounting Officer


                                       18