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, 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 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 23, 2009: 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,
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

                                                     December 31,      March 31,
                                                        2008             2008
                                                      --------         --------
                                                     (unaudited)
ASSETS

Current assets
  Cash                                                $  9,453         $ 54,260
  Prepaid expense                                           80               --
                                                      --------         --------

      Total current assets                               9,533           54,260

Website, net of accumulated amortization (Note 7)        3,250            4,375
                                                      --------         --------

Total assets                                          $ 12,783         $ 58,635
                                                      ========         ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued liabilities            $  1,350         $  1,500
                                                      --------         --------

Total current liabilities                                1,350            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     (47,517)          (1,815)
                                                      --------         --------

Total stockholders' equity                              11,433           57,135
                                                      --------         --------

Total liabilities and stockholders' equity            $ 12,783         $ 58,635
                                                      ========         ========

                 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               Date of
                                   Three Months          Nine Months        Incorporation on      Incorporation on
                                      Ended                Ended           October 11, 2007 to   October 11, 2007 to
                                    December 31,         December 31,         December 31,          December 31,
                                       2008                 2008                 2007                  2008
                                    ----------           ----------           ----------            ----------
<S>                                 <C>                  <C>                  <C>                   <C>
REVENUE                             $       --           $       --           $       --            $       --
                                    ----------           ----------           ----------            ----------
OPERATING EXPENSES
  Amortization                             375                1,125                   --                 1,250
  Game development costs                21,100               24,100                   --                24,100
  General & Administrative               2,674               20,477                  653                21,547
  Organization                              --                   --                  620                   620
                                    ----------           ----------           ----------            ----------
Loss before income taxes               (24,149)             (45,702)              (1,273)              (47,517)

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

Net loss                            $  (24,149)          $  (45,702)          $   (1,273)           $  (47,517)
                                    ==========           ==========           ==========            ==========

Basic and diluted loss per
Common share (1)

Weighted average number
of common shares
outstanding (Note 4)                 5,499,000            5,499,000            3,461,538
                                    ==========           ==========           ==========
</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                     --          --            --         (45,702)        (45,702)
                                     ---------      ------       -------        --------        --------

Balance December 31, 2008            5,499,000      $5,499       $53,451        $(47,517)        $11,433
                                     =========      ======       =======        ========         =======
</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               Date of
                                                        Nine Months        Incorporation on      Incorporatin on
                                                          Ended           October 11, 2007 to   October 11, 2007 to
                                                        December 31,         December 31,          December 31,
                                                           2008                 2007                  2008
                                                         --------             --------              --------
<S>                                                      <C>                  <C>                   <C>
OPERATING ACTIVITIES
  Net loss for the period                                $(45,702)            $ (1,273)             $(47,517)
  Adjustments To Reconcile Net Loss To Net
   Cash Used In Operating Activities
     Amortization expense                                   1,125                   --                 1,250
  Changes in operating assets and liabilities:
     Prepaid expense                                          (80)                  --                   (80)
     Accounts payable and accrued liabilities                (150)                  --                 1,350
                                                         --------             --------              --------

Net cash used in operating activities                     (44,807)              (1,273)              (44,997)
                                                         --------             --------              --------
INVESTING ACTIVITIES
  Website                                                      --                   --                (4,500)
                                                         --------             --------              --------

Net cash used in investing activities                          --                   --                (4,500)
                                                         --------             --------              --------
FINANCING ACTIVITIES
  Proceeds from issuance of common stock                       --                9,000                58,950
                                                         --------             --------              --------

Net cash provided by financing activities                      --                9,000                58,950
                                                         --------             --------              --------

(Decrease) increase in cash during the period             (44,807)               7,727                 9,453

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

Cash, end of the period                                  $  9,453             $  7,727              $  9,453
                                                         ========             ========              ========

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, 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
                                December 31, 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
                                December 31, 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 December 31, 2008 of $47,517.  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 and its
          common shares are quoted for trading on the OTCBB

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

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

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

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

                                       10
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 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         $1,250              $3,250
                            ======         ======              ======

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 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". To
date, we have developed:

     *    the overall storyline
     *    initial renderings of our game storyboard development
     *    the logo for our brand.
     *    realm  and  character  descriptions  for the  production  of our video
          trailer

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.

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 $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. The first is a DVD based video trailer,
which we plan on  completing  by February  2009.  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

                                       12
<PAGE>
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 24
month period.

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 12 month plan of
operations  as disclosed in our S-1 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.  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.

As of the date hereof,  we are in the 8th month of our plan. We have accelerated
the  development  of the DVD  trailer to give us  additional  time to attempt to
obtain second round financing for the development and  commercialization  of the
game.  The trailer will be completed in February  2009 and we believe it will be
slightly over budget.  The realm and character  descriptions for the trailer are
completed and we have also completed the detailed story line.

We believe completion of the trailer is crucial to obtain additional  financing,
as it is designed to highlight  the  operational  aspects and  appearance of the
planned game.  We  accelerated  completion  of the trailer  because we will need
additional  time to secure  financing in this very difficult  credit and finance
environment. We are also suspending all other operational activities, other than
corporate  maintenance and regulatory  compliance,  to preserve our very limited
cash resources.

RESULTS OF OPERATIONS

Our company  posted  losses of $24,149 for the third quarter and $45,702 for the
nine months ended  December  31, 2008.  Comparisons  are not  meaningful  as our
company was  incorporated  on October 11, 2007.  From  inception to December 31,
2008 we have incurred losses of $47,517.  The principal  component of our losses
for the nine months ended December 31, 2008 included general and  administrative
costs of $20,477, preliminary game development costs of $24,100 and amortization
of our website of $1,125. As previously discussed, we accelerated the production
of the DVD  trailer  to enable us to  commence  earlier  with our  second  round
financing activities. Administrative expenses include costs for our registration
statement of $12,972, which is approximately $1,600 over budget.

LIQUIDITY AND CASH RESOURCES

At December 31, 2008,  we had working  capital of $8,183  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  $9,453. Our revised budgeted expenditures for the
next 3-6 months are approximately $10,000.

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 funding for the future development of our business

                                       13
<PAGE>
and to  respond  to  unanticipated  requirements  or  expenses.  This has 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.  Our current cash  balances  under our revised  plan of operation  will be
extinguished   within  the  next  3-6  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  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.

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  Securities and Exchange Act of 1934, as of
December 31, 2008, we have carried out an evaluation of the effectiveness of the
design and operation of our company's  disclosure controls and procedures.  This
evaluation was carried out under the supervision and with the  participation  of
our company's  management,  being our company's President  (Principal  Executive
Officer) and Treasurer (Principal Accounting Officer). Based upon the results of
that  evaluation,  our company's  President  (Principal  Executive  Officer) and
Treasurer (Principal Accounting Officer) have concluded that, as of December 31,
2008,  our  company's  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 company's  management,  with the  participation of our President  (Principal
Executive Officer) and Treasurer (Principal  Accounting Officer), is responsible
for the design of internal  controls over financial  reporting.  The fundamental
issue is to ensure all  transactions  are properly  authorized,  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 generally accepted account principles,  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

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<PAGE>
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 December 31, 2008, our company's
President  (Principal  Executive  Officer) and Treasurer  (Principal  Accounting
Officer) conclude that our company's system of internal controls is adequate and
comparable to those of issuers of a similar size and nature.

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

There were no significant changes to our company's internal controls or in other
factors that could significantly affect these controls subsequent to the date of
their evaluation,  including any significant deficiencies or material weaknesses
of internal controls that would require corrective action.

                           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

None.

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.

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<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  26th day of
January 2009.

                               KRYPTIC ENTERTAINMENT INC.


Date: January 26, 2009         By: /s/ John Lagourgue
                                  ----------------------------------------------
                               Name: John Lagourgue
                               Title: President/CEO, Principal Executive Officer


Date: January 26, 2009         By: /s/ Shan Qiang
                                  ----------------------------------------------
                               Name:  Shan Qiang
                               Title: Secretary Treasurer, Principal Financial
                                      and Accounting Officer

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