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, 2010

                                       OR

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

           For the transition period from __________ to ______________

                        Commission File Number 000-52374

                           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)

                                  702-948-5013
              (Registrant's telephone number, including area code)

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 31, 2011: 5,499,000

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

The Company  recorded $nil sales revenue for the three months ended December 31,
2010.
<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,
                                                              2010               2010
                                                            --------           --------
                                                           (unaudited)        (audited)
<S>                                                         <C>                <C>
ASSETS

Current assets
  Cash                                                      $  3,644           $  3,614
                                                            --------           --------
      Total current assets                                     3,644              3,614

Website, net of accumulated amortization (Note 7)                250              1,375
                                                            --------           --------

      Total assets                                          $  3,894           $  4,989
                                                            ========           ========

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities
  Accounts payable and accrued liabilities                  $  3,750           $    750
  Due to director                                             27,500             18,500
                                                            --------           --------
      Total current liabilities                               31,250             19,250
                                                            --------           --------
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           (86,306)           (73,211)
                                                            --------           --------
      Total stockholders' deficit                            (27,356)           (14,261)
                                                            --------           --------

      Total liabilities and stockholders' deficit           $  3,894           $  4,989
                                                            ========           ========
</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,
                                              2010            2009            2010            2009              2010
                                           ----------      ----------      ----------      ----------        ----------
<S>                                        <C>             <C>             <C>             <C>               <C>
REVENUE                                    $       --      $       --      $       --      $       --        $       --
                                           ----------      ----------      ----------      ----------        ----------

OPERATING EXPENSES
  Amortization                                    375             375           1,125           1,125             4,250
  Game development costs                           --              --              --              --            29,300
  General & administrative                      3,247           6,419          11,970          16,076            52,136
  Organization                                     --              --              --              --               620
                                           ----------      ----------      ----------      ----------        ----------
Loss before income taxes                       (3,622)         (6,794)        (13,095)        (17,201)          (86,306)

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

Net loss                                   $   (3,622)     $   (6,794)     $  (13,095)     $  (17,201)       $  (86,306)
                                           ==========      ==========      ==========      ==========        ==========
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           Deficit
                                       ------         ------          -------          -----           -------
<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 year                       --              --              --         (52,521)         (52,521)
                                     ---------       ---------       ---------       ---------        ---------
Balance March 31, 2009               5,499,000           5,499          53,451         (54,336)           4,614

Net loss for the year                       --              --              --         (18,875)         (18,875)
                                     ---------       ---------       ---------       ---------        ---------
Balance March 31, 2010               5,499,000           5,499          53,451         (73,211)         (14,261)

Net loss for the period                     --              --              --         (13,095)         (13,095)
                                     ---------       ---------       ---------       ---------        ---------

Balance December 31, 2010            5,499,000       $   5,499       $  53,451       $ (86,306)       $ (27,356)
                                     =========       =========       =========       =========        =========
</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,
                                                            2010             2009              2010
                                                          --------         --------          --------
<S>                                                       <C>              <C>               <C>
OPERATING ACTIVITIES
  Net loss for the period                                 $(13,095)        $(17,201)         $(86,306)

Adjustments to Reconcile Net Loss to Net Cash
 Used forOperating Activities
   Amortization expense                                      1,125            1,125             4,250

Changes in operating assets and liabilities:
  Accounts payable and accrued liabilities                   3,000              750             3,750
                                                          --------         --------          --------

           Net cash used for operating activities           (8,970)         (15,326)          (78,306)
                                                          --------         --------          --------
INVESTING ACTIVITIES
  Website                                                       --               --            (4,500)
                                                          --------         --------          --------

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

FINANCING ACTIVITIES
  Due to director                                            9,000           18,500            27,500
  Proceeds from issuance of common stock                        --               --            58,950
                                                          --------         --------          --------

           Net cash provided by financing activities         9,000           18,500            86,450
                                                          --------         --------          --------

Increase (decrease) in cash during the period                   30            3,174             3,644

Cash, beginning of the period                                3,614            2,489                --
                                                          --------         --------          --------

Cash, end of the period                                   $  3,644         $  5,663          $  3,644
                                                          ========         ========          ========
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, 2010
                                   (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.

These unaudited  interim  financial  statements have been prepared in accordance
with  United  States  generally  accepted  accounting   principles  for  interim
reporting,  and in accordance with the  requirements of this Quarterly Report on
Form 10-Q. The balance sheet as of March 31, 2010  presented in these  financial
statements,  has been derived from the Company's  audited  balance sheet for the
fiscal  year ended  March 31,  2010.  In the  opinion of  management,  all known
adjustments  have  been made  (which  consist  primarily  of  normal,  recurring
accruals and estimates,  and assumptions  that impact the financial  statements)
for fair  presentation.  These unaudited interim financial  statements should be
read in conjunction with the audited financial  statements and related footnotes
included  within the  Company's  Annual  Report on Form 10-K for the fiscal year
ended March 31,  2010.  Operating  results  for the three and nine months  ended
December  31, 2010 are not  necessarily  indicative  of the results  that may be
expected for the year ending March 31, 2011.

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


                                       7
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2010
                                   (unaudited)


NOTE 2. (CONTINUED)

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

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

CASH AND BANK ACCOUNTS
The Company's bank account is not FDIC insured.

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, 2010, the carrying value of accrued liabilities and
amounts due to a director  approximated  fair value due to the short-term nature
and maturity of these instruments.

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

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

USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make

                                       8
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2010
                                   (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, 2010 of $86,306.  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
fiscal year ending March 31, 2011.

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

     *    The  Company  has cleared a  Registration  Statement  with the SEC and
          obtained a trading symbol to trade its common shares on the OTCBB.
     *    Management intends to raise additional funds through public or private
          placement offerings.
     *    Management is currently formulating plans to develop an internet based
          online  video  game to  generate  sales.  There can be no  assurances,
          however,  that  management's  expectations  of  future  sales  will be
          realized.

                                       9
<PAGE>
                           KRYPTIC ENTERTAINMENT INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                                December 31, 2010
                                   (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)  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 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  Director  provides  office  space free of  charge.  The  officer  and
director 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 $27,500 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, 2010
                                   (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  $73,211 of which $1,815 will expire by March 31, 2028,
$52,521 by March 31, 2029 and the balance of $18,875 by March 31, 2030.

NOTE 7. WEBSITE

                                        Accumulated
                         Cost           amortization        Net book value
                         ----           ------------        --------------
Website costs           $4,500            $4,250                $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. 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.

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.

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.

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.  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
common stock,  but we are uncertain  about our continued  ability to raise funds
privately.  The recent credit crisis has only made our situation more difficult,
because  investors who were  historically  receptive to startup  situations have
become  reluctant to invest in this  environment.  Our current cash balances are
limited. Our President and Director has indicated that he will provide unsecured
loans to meet only our basic  operating and regulatory  obligations for the next
fiscal year.

He is  continuing  to seek  additional  financing,  and  analyzing  the  various
alternatives  available to our  company,  to ensure our survival and to preserve
our  shareholder's  investment in our common shares.  This analysis has included
sourcing  additional  forms of  financing  to  continue  our  business as is, or
mergers and/or acquisitions which would likely involve a change of business.  At
this stage in our  operations,  we believe either course is  acceptable,  as our
operations  have not been  profitable and our future  prospects for our business
are not good without further significant financing.

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 10K for March 31, 2010.

                                       12
<PAGE>
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 ensure our survival and to preserve our shareholder's  investment in
our common  shares.  If we are not successful in the short run, our director has
indicated that he is willing to lend our company minimum funds to enable us meet
our statutory corporate and reporting obligations for the next 12 months through
unsecured, no interest loans.

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

General and administrative                                             $ 70,000
Legal and accounting                                                     40,000
Identify/research/purchase game engine                                  350,000
Purchase computer hardware and peripherals                              100,000
Purchase software for game engine creation, developers to identify
 pending game engine selected  (Licensed Software Packages)              30,000
Third party developers required to modify game engine to meet
 standards for online & console based demo for Krypton Jam
(Specified  Software will enable  developers  to create a specified
 playable demo illustrating 3 dimensional game play ie: reduced
 version of game play to include 3  characters/players, game design
 sports action, 3 realms, in-game elements and design to include levels,
 character abilities, obstacles/quests, graphics/interface, physical
 impacts, environment impacts, scoring/victory. (Human Resources -
 5 developers budgeted for 60,000/year)                                 300,000
Render & output for online version for testing purposes                  50,000
                                                                       --------
                                                                       $940,000

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

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

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

RESULTS OF OPERATIONS

Our company  posted  losses of $13,095 for nine months  ended  December 31, 2010
compared to $17,201 for the  comparable  period.  From inception to December 31,
2010 we have incurred losses of $86,306.  The principal components of our losses
for the nine months ended December 31, 2010 included general and  administrative
costs of $11,970 and  amortization  of our website of $1,125.  This  compares to
$16,076 in general and admin expenses and $1,125 for website amortization during
the nine months ended December 31, 2009.

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<PAGE>
LIQUIDITY AND CASH RESOURCES

At December  31, 2010 we had a working  capital  deficit of $27,606  compared to
$15,636 at March 31, 2010. This deficit  includes $27,500 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, 2010 we had only $3,644 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 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

We are required to maintain  disclosure  controls and procedures,  as 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,  to allow timely  decisions  regarding  required
disclosure.  As  of  December  31,  2010  we  conducted  an  evaluation  of  the
effectiveness  of the  design  and  operation  of our  disclosure  controls  and
procedures.  Based on this evaluation, our Officer concluded that our disclosure
controls and procedures were not effective as described below under  "Identified
Weaknesses".

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) 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.

As of December 31, 2010 management  assessed the  effectiveness  of our internal
control over financial  reporting  based on the criteria for effective  internal
control over financial  reporting  established  in Internal  Control--Integrated
Framework  issued by the Committee of Sponsoring  Organizations  of the Treadway

                                       14
<PAGE>
Commission  ("COSO") and SEC guidance on conducting such  assessments.  Based on
that evaluation,  they concluded that, during the period covered by this report,
such  internal  controls  and  procedures  were  not  effective  to  detect  the
inappropriate  application of US GAAP rules as more fully described below.  This
was due to deficiencies  that existed in the design or operation of our internal
controls over financial  reporting that adversely affected our internal controls
and that may be considered to be material weaknesses.

IDENTIFIED WEAKNESSES

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

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

MANAGEMENT'S REMEDIATION INITIATIVES

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

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

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

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<PAGE>
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 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

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  31st day of
January, 2011.

                                    KRYPTIC ENTERTAINMENT INC.


Date: January 31, 2011              By: /s/ Shan Qiang
                                        ----------------------------------------
                                    Name: Shan Qiang
                                    Title: President, CEO, Secretary Treasurer
                                           Principal executive, financial and
                                           accounting officer

                                       17