EDGAR 10-K Filing

Company CIK: 1714379
Filing Year: 2021
Filename: 1714379_10-K_2021_0001493152-21-023560.json

---

ITEM 1. BUSINESS
ITEM 1. BUSINESS
Fact, Inc. (“We” or the “Company” as the context may require) was established under the laws of the State of Nevada on February 17, 2017 as Tiburon International Trading Corporation (“Tiburon”). Tiburon was established as a development stage company focusing its business on the distribution of air infiltration valves manufactured in China to markets in Europe and in the Commonwealth of Independent States (CIS). On October 5, 2020, Kryptos Art Technologies, Inc. (“Kryptos”), an Ontario corporation purchased 50,000,000 shares of the Company’s common stock from Yun Cai, who was the Chief Executive Officer, President, Chief Financial Officer and Sole Director of Tiburon.
The Company is winding down operations of the historic Tiburon business, which has largely been curtailed by prior management because of COVID-19 and lack of capital necessary for expansion of the website and product offerings. Kryptos had been working on a technology designed to detect and eliminate fraud in the art world. Kryptos has assigned all of its technological know-how in this area to the Company which we will pursue as our primary business operations.
In connection this new line of business, we have entered into and are negotiating a series of development and consulting agreements with software and hardware developers to complete the development of our products. The Company expects to enter into a license agreement to utilize fraud detection technology in the art area. The Company expects to enter into such license agreement with an award winning forensic ballistic technology company that revolutionized the Criminal Justice system’s approach to ballistics.
FACT stands for Forensic Asset Certification Technology. FACT is creating technology to utilize white light interferometry to bring forensic technology to the art world. FACT takes a non-destructive 3D digital fingerprint of the art using over 100,000 unique images. These scans, measured at two (2) microns, equal to 1/50th of a human hair, are unable to be reproduced or forged. Scans are compared to one another by a computer algorithm to verify the paintings or other assets authenticity.
All data is stored securely on the block-chain for real time collection management. We are currently developing a front-end user interface as well as modifying existing ballistics firmware for a comprehensive verification, tracking and reporting system. A workable prototype (the “Prototype”) is expected to be ready during the Company’s second quarter ending July 31, 2022.
We plan to market to various channels in different capacities including, but not limited to, subscription models, leasing models, and individual point of sale models. The fees for our different models will range from a flat fee to a percentage of sales fee. We are hopeful the Company will commence its marketing efforts in the Company’s second quarter ending April 30, 2022, with the hope that the product may launch by the end of the Company’s second quarter ending July 31, 2022.
Our products are not yet commercially available and we do not expect them to be commercially available until at least the end of the second quarter of 2022 if ever. We expect to continue to incur significant expenses and increasing operating losses for the foreseeable future, which may fluctuate significantly from quarter-to-quarter and year-to-year. We anticipate that our expenses will increase substantially as we:
■ continue research and development of our existing product prototypes;
■ seek to discover and develop additional products with our technology;
■ establish a commercialization infrastructure and scale up our manufacturing and distribution capabilities to commercialize any of our products;
■ seek to comply with regulatory standards and laws;
■ maintain, leverage and expand our intellectual property portfolio;
■ hire manufacturing, engineering and other personnel to support our products development and future commercialization efforts;
■ add operational, financial and management information systems and personnel; and
■ incur additional legal, accounting and other expenses in operating as a public company.
JOBS Act
As a company with less than $1.0 billion in revenue during our last fiscal year, we qualify as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act, or the JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (or the “Securities Act”), for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.
An emerging growth company may also take advantage of reduced reporting requirements that are otherwise applicable to public companies. These provisions include, but are not limited to:
■ we may present only two years of audited financial statements and only two years of related Management’s Discussion and Analysis of Financial Condition and Results of Operations;
■ not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended, or the Sarbanes-Oxley Act;
■ reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; and
■ exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
We may take advantage of these provisions until the last day of our fiscal year following the fifth anniversary of the date of the first sale of our common equity securities pursuant to an effective registration statement under the Securities Act, which such fifth anniversary will occur in 2021. However, if certain events occur prior to the end of such five-year period, including if we become a “large accelerated filer,” our annual gross revenues exceed $1.0 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period.
We have elected to take advantage of certain of the reduced disclosure obligations regarding executive compensation in this prospectus and, as long as we continue to qualify as an emerging growth company, we may elect to take advantage of this and other reduced burdens in future filings. As a result, the information that we provide to our stockholders may be different than you might receive from other public reporting companies in which you hold equity interests.
We are also a “smaller reporting company,” as defined under SEC Regulation S-K. As such, we also are exempt from the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act and also are subject to less extensive disclosure requirements regarding executive compensation in our periodic reports and proxy statements. We will continue to be deemed a smaller reporting company until our public float exceeds $75 million on the last day of our second fiscal quarter in the preceding fiscal year.
Recent Developments
On December 31, 2020, Kryptos Art Technologies, Inc. (“Kryptos”), an entity controlled by Brian McWilliams, transferred 2,000,000 shares of common stock to Ceres Capital Holdings, LLC (“Ceres”). Ceres is controlled by Patricia Trompeter. Additionally, on December 31, 2020, Kryptos cancelled 15,750,000 shares of common stock.
On January 14, 2021, Julie-Myers Wood was appointed as a Director of Fact, Inc. (the “Company”).
On March 22, 2021, Brian McWilliams resigned as Chief Executive Officer of Fact, Inc. (the “Company”). Mr. McWilliams’s resignation shall be effective immediately. Mr. McWilliams also resigned as a member of the board of directors of the Company.
On March 22, 2021, Patricia Trompeter was appointed to fill the vacancy of Chief Executive Officer of the Company. Ms. Trompeter’s appointment is effective immediately.

---

ITEM 1A. RISK FACTORS
ITEM 1A. RISK FACTORS
This section is not required for smaller reporting companies.

---

ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B. UNRESOLVED STAFF COMMENTS
This section is not required for smaller reporting companies.

---

ITEM 2. PROPERTIES
ITEM 2. PROPERTIES
The Company does not own any property.

---

ITEM 3. LEGAL PROCEEDINGS
ITEM 3. LEGAL PROCEEDINGS
The Company is not a party to any other pending material legal proceeding. To the knowledge of management, no federal, state or local governmental agency is presently contemplating any proceeding against the Company. To the knowledge of management, no director, executive officer or affiliate of the Company, any owner of record or beneficially of more than five percent of the Company’s Common Stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding.

---

ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II

---

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Holders
As of September 16, 2021, we had approximately 14 active holders of our common stock. The number of active holders of record was determined from the records of our transfer agent and does not include beneficial owners of common stock whose shares are held in the names of various security brokers, dealers, and registered clearing agencies. Our transfer agent is Action Stock Transfer Corporation.
Dividend Policy
We have not declared any dividends to date. We have no present intention of paying any cash dividends on our common stock in the foreseeable future, as we intend to use earnings, if any, to generate growth. The payment of dividends, if any, in the future, rests within the discretion of our Board of Directors and will depend, among other things, upon our earnings, capital requirements and our financial condition, as well as other relevant factors. There are no restrictions in our Certificate of Incorporation or Bylaws that restrict us from declaring dividends.
Equity Compensation Plan Information
We currently do not have any equity compensation plan.
Recent Sales of Unregistered Securities
On November 20, 2020, Fact, Inc. a Nevada Corporation (the “Company”) and Oasis Capital, LLC (“Oasis”) entered into a Securities Purchase Agreement (the “Note Purchase Agreement”) pursuant to which the Company agreed to sell and Oasis agreed to purchase $730,000 principal amount of convertible promissory notes (the “Note”) for a purchase price of $610,000 which includes a 20% original issue discount and $10,000 of expenses. On November 20, 2020, Oasis has funded $250,000 (the “First Tranche”) as of November 19, 2020, and the Company has in turn agreed to issue to Oasis a note in the principal amount of $310,000. Under the Note Purchase Agreement, the Company will sell Oasis an additional promissory note in the principal amount of $420,000 and issue an additional note for a purchase price of $350,000 (the “Second Tranche”) upon the Company’s filing of a registration statement with the Securities and Exchange Commission (the “SEC”), pursuant to the registration rights agreement (the “Registration Rights Agreement”) entered into by and between the Company. The maturity date for each of the First Tranche and the Second Tranche is six (6) months from the date on which Oasis funds the respective portion of the Note. The interest rate of the Note is 10% annum. The Note is convertible into shares of the Company’s common stock, par value $.001 (the “Common Stock”) at the option of the holder.
In addition, in connection with the Note Purchase Agreement, the Company issued to Oasis 100,000 shares of Common Stock and a five year warrant (the “Warrant”) to purchase up to 291,775 shares of Common Stock at a price equal to $1.10 per share.
On January 19, 2021, the Company issued to MSW PROJECTS LTD 50,000 shares of Common Stock.
On February 9, 2021, the Company issued to MSW PROJECTS LTD 100,000 shares of Common Stock.
On March 24, 2021, the Company issued to SAX INC 100,000 shares of Common Stock.

---

ITEM 6. SELECTED FINANCIAL DATA
ITEM 6. SELECTED FINANCIAL DATA
This section is not required for smaller reporting companies.

---

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
The following discussion and analysis should be read together with our consolidated financial statements and the related notes appearing elsewhere in this Report. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. See “Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions associated with these statements. Actual results and the timing of events could differ materially from those discussed in our forward-looking statements as a result of many factors, including those set forth under “Risk Factors” and elsewhere in this Report.
Overview
The Company was established under the laws of the State of Nevada on February 17, 2017 as Tiburon International Trading Corp. Tiburon was established as a development stage company focusing its business on the distribution of air infiltration valves manufactured in China to markets in Europe and in the Commonwealth of Independent States (CIS). On October 5, 2020, Kryptos Art Technologies, Inc. (“Kryptos”), an Ontario corporation purchased 2,500,000 shares of Tiburon from Yun Cai, who was the Chief Executive Officer, President, Chief Financial Officer and Sole Director of Tiburon. As a result of this sale, Kryptos became the majority shareholder of Tiburon. The shares owned by Kryptos represented approximately 71.87% of Tiburon’s outstanding common stock. The purchase price was $232,467. The funds were funds of Kryptos. Kryptos is controlled by recently-departed Company CEO, Brian McWilliams.
Mr. McWilliams was appointed the Company’s Chief Executive Officer on October 5, 2020. On October 8, 2020, Kryptos, as the holder of approximately 71% of the voting stock of the Company executed a shareholder consent to effect a name change of the Tiburon to Fact, Inc. Under Mr. McWilliams’ management, the Company wound down operations of the historic Tiburon business, which has largely been curtailed by prior management because of COVID-19 and lack of capital necessary for expansion of the website and product offerings. Kryptos had been working on a technology designed to detect and eliminate fraud in the art world. Kryptos has assigned all of its technological know-how in this area to the Company which we will pursue as our primary business operations. In connection therewith, the Company has entered into and is negotiating a series of development and consulting agreements with software and hardware developers to complete the development of our products. The Company expects to enter into a license agreement to utilize fraud detection technology in the art area. The Company expects to enter into such license agreement with an award winning forensic ballistic technology company that revolutionized the Criminal Justice system’s approach to ballistics.
On October 8, 2020, Kryptos, as the holder of approximately 71% of the voting stock of Tiburon, executed a shareholder consent to effect a name change of Tiburon to Fact, Inc. FACT is a leading innovator of bringing forensic technology to the art world. FACT stands for Forensic Asset Certification Technology. Using white light interferometry, FACT takes a non-destructive 3D digital fingerprint of the art using over 100,000 unique images. These scans, measured at two (2) microns, equal to 1/50th of a human hair, are unable to be reproduced or forged. Scans are compared to one another by a computer algorithm to verify the paintings authenticity.
All data is stored securely on the block-chain for real time collection management. We are currently developing a front-end user interface as well as modifying existing ballistics firmware for a comprehensive verification, tracking and reporting system. A workable prototype (the “Prototype”) is expected to be ready during the Company’s second quarter ending July 31, 2020.
We plan to market to various channels in different capacities including, but not limited to, subscription models, leasing models, and individual point of sale models. The fees for our different models will range from a flat fee to a percentage of sales fee. We are hopeful the Company will commence its marketing efforts in the Company’s first quarter ending April 30, 2022, with the hope that the product may launch by the end of the Company’s second quarter ending July 31, 2022.
On March 22, 2021, Mr. McWilliams left the Company and was replaced by Ms. Patricia Trompeter as Chief Executive Officer.
Research and Development
Research and development expenses consists of costs incurred while performing research and development activities to discover and develop our product. This includes conducting studies and trials, manufacturing development efforts and activities. We recognize research and development expenses as they are incurred. Our research and development expense primarily consist of:
■ forensic technology product testing and regulatory-related costs;
■ expenses incurred under agreements with investigative sites and consultants that conduct our product testing;
■ manufacturing and testing costs and related supplies and materials;
■ employee-related expenses, including salaries, benefits, travel and stock-based compensation; and
■ facility expenses dedicated to research and development.
We typically use our employee, consultant and infrastructure resources across our development programs. We track outsourced development costs by product or development program, but we do not allocate personnel costs, other internal costs or external consultant costs to specific product or development programs.
Substantially all of our research and development expenses to date have been incurred in connection with our product. We expect our research and development expenses to increase significantly for the foreseeable future as we advance an increased number of our product through development. The successful development of product is highly uncertain. At this time, we cannot reasonably estimate the nature, timing or costs required to complete the remaining development of any product. This is due to the numerous risks and uncertainties associated with the development of product.
We do not expect any of our products to be commercially available until the end of the Company’s second quarter ending July 31, 2022. We expect to continue to incur significant expenses and increasing operating losses for the foreseeable future, which may fluctuate significantly from quarter-to-quarter and year-to-year. We anticipate that our expenses will increase substantially as we:
■ continue research and development, including development of our existing product;
■ seek to discover and develop additional product;
■ establish a commercialization infrastructure and scale up our manufacturing and distribution capabilities to commercialize any of our product for which we may obtain regulatory approval;
■ seek to comply with regulatory standards and laws;
■ maintain, leverage and expand our intellectual property portfolio;
■ hire manufacturing, scientific and other personnel to support our product development and future commercialization efforts;
■ add operational, financial and management information systems and personnel; and
■ incur additional legal, accounting and other expenses in operating as a public company.
Results of Operations for years ended January 31, 2021 and 2020
The following tables set forth certain selected condensed statement of operations data for the periods indicated in dollars. In addition, we note that the period-to-period comparison may not be indicative of future performance as they relate to the Company’s historic business.
Year ended
January 31 Variation
$ %
Revenue $ - $ 4,500
Cost of Goods sold $ - $ 2,700
Gross Profit $ - $ 1,800
Operating Expenses $ 447,374 $ 25,585
Income (loss) from operations $ 1,260,691 $ 23,785
Net Loss per common Share $ 0.02 $ 0.01
Revenues
During the year ended January 31, 2021, the Company did not generate any revenue compared to $4,500 during the year ended January 31, 2020. The cost of revenue was $0.
A workable Prototype is expected to be ready during the Company’s first quarter ending April 30, 2022, with rollout starting by the end of the Company’s second quarter ending July 31, 2022. Revenue are expected to be generated, although there can be no assurance, from several key channels as outlined below.
FACT will be marketed to five (5) main channels with a variety of ancillary packages:
(1) Financial Markets - Art Insurance & Art Secured Lending
(2) Sales Markets - Auction Houses, Art Dealers, & Gallery Sales
(3) Logistics Markets - Shipping/Transport Companies, Storage facilities, & Ancillary Services
(4) Collectors Market - Private Museums, Institutions & Collectors
(5) Individual Market - Scans at an select FACT location
FACT is hopeful that it will also have an ancillary channel: Leasing of FACT device and software to clients who want unlimited on demand scans which can be added on any of the above subscription packages.
Each channel will be priced in a different capacity to reflect the service provided to such channel. Revenues are expected from the following areas:
● Individual scans - Scans for individuals who want one or two time FACT Scans.
● Salesman Package - These are scans that would be purchased by Auction houses, dealers, and gallery owners to verify that the painting is authentic as well as verification in the shipping/logistics process.
● Financial package - Art Insurers and Art Secured Lenders would use FACT to ensure that the painting they are inuring/lending against is not a forgery. In addition, if the painting is held as collateral, the owner can make sure that the painting returned is authenticated.
● Logistics package - Warehouse and Shipping experts who specialize in art would use the FACT system to verify the painting that left point A is the same that arrived at point B. In addition, FACT’s GPS system provides real time location tracking.
● Collectors package - Private museums, Foundations, & Institution Collectors would use the FACT system to authenticate a piece of art that for example was loaned to a museum for an exhibit.
Operation, General and Administrative Expenses
General and administrative expenses for the years ended January 31, 2021 and 2020 totaled $447,374 and $25,585, respectively, representing a 1600% increase. The increases are primarily attributed to expenses related to consulting fees and legal fees.
Liquidity and Capital Resources
Initially, we anticipate the Company will be funded from investors, through the sale of debt or equity securities.
On November 20, 2020, Fact, Inc. the Company and Oasis Capital, LLC (“Oasis”) entered into a Securities Purchase Agreement (the “Note Purchase Agreement”) pursuant to which the Company agreed to sell and Oasis agreed to purchase $730,000 principal amount of convertible promissory notes (the “Note”) for a purchase price of $610,000 which includes a 20% original issue discount and $10,000 of expenses. On November 20, 2020, Oasis funded $250,000 (the “First Tranche”) and the Company in turn agreed to issue to Oasis a note in the principal amount of $310,000. Under the Note Purchase Agreement, the Company will sell Oasis an additional promissory note in the principal amount of $420,000 and issue an additional note for a purchase price of $350,000 (the “Second Tranche”) upon the Company’s filing of a registration statement with the Securities and Exchange Commission (the “SEC”), pursuant to the registration rights agreement (the “Registration Rights Agreement”) entered into by and between the Company. The maturity date for each of the First Tranche and the Second Tranche is six (6) months from the date on which Oasis funds the respective portion of the Note. The interest rate of the Note is 10% annum. The Note is convertible into shares of the Company’s common stock, par value $.001 (the “Common Stock”) at the option of the holder. The “Conversion Price” per share shall be the lesser of (i) $2.00 per share and (ii) 65% of the lowest traded price of the Common Stock as reported on the Trading Market during the 30 consecutive Trading Day (as defined in the Note Purchase Agreement) period ending and including the Trading Day immediately preceding the delivery or deemed delivery of the applicable Notice of Conversion.
In addition, in connection with the Note Purchase Agreement, the Company issued to Oasis 100,000 shares of Common Stock and a five year warrant (the “Warrant”) to purchase up to 291,775 shares of Common Stock at a price equal to $1.10 per share.
On November 20, 2020, the Company and Oasis entered into an Equity Purchase Agreement (the “Equity Purchase Agreement”)”), whereby Oasis has committed to purchase $10,000,000 worth of Common Stock, as requested by the Company (the “Equity Line”). The Company’s ability to draw upon the Equity Line is subject to the effectiveness of a registration statement with the SEC and certain other contingencies. The Company entered into the Registration Rights Agreement with Oasis pursuant to the Equity Purchase Agreement..
In connection with the EPA, the Company issued to Oasis an aggregate amount of 250,000 shares of Common Stock, of which 100,000 shares will be restricted until Oasis funds at least $1,000,000 under the Equity Line. Purchases made under the EPA will be made at a 15% discount under market price. Market price under the Equity Purchase Agreement is defined as 85% of the lowest traded price during the five consecutive trading days following the date Oasis receives the shares.
We may raise additional funds through the sale of debt and/or equity in the future.
We anticipate that material expenditures in the next six (6) months will include development costs for the software and the firmware as well purchases of the hardware. The Company estimates that development of the Prototype should cost approximately $500,000 to $700,000 in upfront software and firmware development costs. The Company also anticipates it will require several pieces of hardware, including, but not limited to, an interferometer, scanning arms, vans, computers, monitors, and other related items. The Company anticipates costs of approximately $2,000,000 with associated hard assets. We are in the process of selecting a software development firm to assist us with the prototype.
While we are hopeful that the initial capital expenditures will be covered by investor funds (see the description of the Equity Purchase Agreement above for detailed explanation), ongoing cash flows from operations will fund future expenditures. We anticipate that future expenditures post product launch by the end of the Company’s second quarter ending July 31, 2022, will include normal expenses from operations, including, but not limited to, salaries, R&D, PP&E purchases, and marketing expenses. We anticipate there will be ongoing research and software development as the Company expands into future lines of business such as other collectibles.
Cash flows from operations are expected to commence at the beginning of the Company’s second fiscal quarter ending July 31, 2022, slowly increasing at a slight percentage until the end of the Company’s 2022 year end. The Company expects its operations to result in negative net cash flow throughout the Company’s 2022 end. Towards the end of 2022, the Company expects to increase net cash flow due to an anticipated increase in the Company’s expected revenue and a decrease in its expected R&D expenditures for the Company’s fourth quarter of 2022, as compared to the Company’s expected revenue and R&D expenditures, respectively, for the Company’s first quarter ending April 30, 2022. There can be no assurances that the Company will achieve any revenues in 2022.
Cash Flows
For the year ended January 31, 2021, net cash flows used in operating activities were negative as the company entered into contracts to develop the software and there were no associated revenues. As a startup - the product is in development and therefore the company did not recognize any revenue during this time.
Off Balance Sheet Arrangements
As of the date of this Annual Report, we do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
Significant Accounting Policies
For a discussion of the Company’s significant accounting policies please refer to Note 3 of the Company’s financial statements included herein.
Revenue Recognition
We adopted Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, and all related interpretations for recognition of our revenue. Previously we recorded revenue based on ASC Topic 605. Adoption of new accounting standard did not have any material impact on our reported revenue.
Basic and Diluted Income (Loss) Per Share
The Company computes income (loss) per share in accordance with FASB ASC 260 “Earnings per Share”. Basic loss per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. As of January 31, 2021, there were no potentially dilutive debt or equity instruments issued or outstanding.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company’s bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At January 31, 2021, the Company’s bank deposits did not exceed the insured amounts.
Stock-Based Compensation
As of January 31, 2021, the Company has not issued any stock-based payments to its employees.
Stock-based compensation is accounted for at fair value in accordance with ASC 718, when applicable. To date, the Company has not adopted a stock option plan and has not granted any stock options.
Use of Estimates
Preparing 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, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions.
Income Taxes
The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
COVID-19
The novel coronavirus (“COVID-19”) was first identified in late 2019. COVID-19 spread rapidly throughout the world and, in March 2020, the World Health Organization (“WHO”) characterized COVID-19 as a pandemic. COVID-19 is a pandemic of respiratory disease spreading from person-to-person that poses a serious public health risk. It has significantly disrupted supply chains and businesses around the world. The extent and duration of the COVID-19 impact on our operations and financial position is highly uncertain.
Management continues to closely monitor and evaluate the impact of the COVID-19 pandemic on the Company’s operations and will take, the necessary actions to right-size the business in this environment, which is evolving daily. Some potential actions include, but are not limited to, modified work schedules as well as appropriate adjustments to the operating expenditures and capital spending plans.
The Company is not able to predict the ultimate impact that COVID -19 will have on its new business; however, if the current economic conditions continue, the Company will be forced to significantly scale back its business operations and its growth plans, and could ultimately have a significant negative impact on the Company.
Recently Issued Accounting Pronouncements
The Company has no material items to report at this time.

---

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
This section is not required for smaller reporting companies.

---

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
All financial information required by this Item is attached hereto at the end of this report beginning on page and is hereby incorporated by reference.

---

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.

---

ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A. CONTROLS AND PROCEDURES
Management’s Report on Internal Control over Financial Reporting
The Company’s management, with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as that term is defined in Rule 13a-15(e)) as of January 31, 2021, the end of the period covered by this Annual Report on Form 10-K.
Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer (Principal Financial and Accounting Officer) concluded that, as of January 31, 2021, our internal control over financial reporting was not effective as of the end of the period covered to ensure that information required to be disclosed in our reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated to the Company’s management, including its principal executive officer and its principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Principal Executive Officer, and our Principal Financial and Accounting Officer, to allow timely decisions regarding required disclosure.
During 2022, we identified material weaknesses in our internal control over financial reporting, which are disclosed in our annual report on Form 10-K filed with the SEC.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting that occurred during the last fiscal quarter, (i.e., the year ended January 31, 2021), that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

---

ITEM 9B. OTHER INFORMATION
ITEM 9B. OTHER INFORMATION
None.
PART III

---

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT
EXECUTIVE OFFICERS, DIRECTORS AND KEY EMPLOYEES
The following table sets forth the names and ages of the members of our Board of Directors and our executive officers and the positions held by each. There are no family relationships among any of our Directors and Executive Officers.
Name
Age
Position(s)
Patricia Trompeter
Chief Executive Officer, Chief Financial Officer, and Director
Julie Myers-Wood
Director
Anne Imelda-Radice
Director
JD Malat
Director
Michael Barnes
Director
Patricia Trompeter has been the Chief Executive Officer since March 22, 2021 and the Chief Financial Officer since November 17, 2020. Ms. Trompeter is 53 years old. Ms. Trompeter sits on the board of directors of Liquid Therapy Innovations, a privately held company. Liquid Therapy Innovations is a wholesale manufacturer of sublingual strips for the health and wellness industry. Ms. Trompeter is the Chief Operating Officer of Webbs Hill Partners, LLP (“Webbs Hill”) which she co-founded in 2019. Webbs Hill is a micro investment venture capital firm focused on the manufacturing, financial, and digital investments industries. Prior to co-founding Webbs Hill, Ms. Trompeter took time to focus on philanthropic opportunities and family. Prior to that, Ms. Trompeter spent more than thirteen years in the financial services industry with GE capital rising to the position of Chief Financial Officer of IT Solutions, North America (“IT Solutions”), a division of GE Capital. Prior to serving as the CFO of IT Solutions, Ms. Trompeter served as the Controller of the entire business of IT Solutions. Ms. Trompeter has a Bachelor of Science in Finance & Economics and Management Information Systems from Marquette University.
Julie Myers-Wood has been a director since January 14, 2021. Ms. Wood is 51 years old. Ms. Wood has been the president of Guidepost Solutions, LLC (“Guidepost”) since 2014. Guidepost is a global team of investigators, experienced security and technology consultants, and compliance and monitoring experts. Ms. Wood co-founded Immigration and Custom Solutions, LLC in 2008 and served as the president until 2012. Prior to that, Ms. Wood worked for the U.S. Department of Homeland Security as an Assistant Secretary of Homeland Security from 2006 to 2008. Ms. Wood worked in the White House as a special assistant to the President of the United States from 2004 to 2005. From 2003 to 2004, Ms. Wood worked for the U.S. Department of Commerce as an Assistant Secretary for the Bureau of Industry and Security. Ms. Wood has a J.D. from Cornell Law School and a B.A. from Baylor University.
JD Malat is one of the world’s most respected and influential art dealers, described as ‘the best connected man in London’ by The Times, and ‘London’s most in demand guru’ by Metro Newspaper. For more than 15 years he has built a clientele of high-profile clients, including Kate Moss, Bono and Madonna. Mr. Malat trained at Sotheby’s curating impressive collections with the collaboration of various world famous museums and foundations such as The Heydar Aliyev Center in Azerbaijan. In 2007, he redesigned the art-on-display for the opening of the Théâtre Mogador in Paris, and the following year achieved a significant career milestone, acquiring and selling two late-period Picasso paintings in the middle of the 2008 Recession. Now the Founder and CEO of JD Malat Gallery in London, Mr. Malat has taken his vision for contemporary art curatorship and materialized it into his own calm and inviting creative oasis. JD Malat Gallery held its grand opening in 2018, with a mission to promote emerging and established artists. Featuring a broad spectrum of talent and media including conceptual, installation, and light art as well as sculptures and paintings, the JD Malat Gallery offers a constantly changing space, promoting artistic progression, cultural interaction and inclusivity within the art community.
Anne Imelda-Radice has impressed a permanent mark on art and humanities programs across the United States. She has dedicated decades pairing her passion for art with her financial competencies to direct funds to important art collections, films, and archives showcased by museums, libraries and exhibition spaces throughout the country. Whether in service at the National Endowment for Humanities, as the Director of Public Programs; the National Endowment for the Arts, as its Acting Chairman or as the Director of the Institute of Museum and Library Services, Ms. Radice has held leading roles in grant making, strategic planning and implementation of programs to protect and conserve art and archives. Her career has led to many revered positions including Director of the National Museum of Women in the Arts in Washington and Executive Director of the American Folk-Art Museum in New York. She has served highly respected government positions including curator for The Architect of the US Capitol, Acting Chairman for the National Endowment for the Arts, and Chief Arts Advisor for the U.S. Information Agency. In 2006, Ms. Radice was appointed Director of The Institute of Museum and Library Services by President George W. Bush and unanimously confirmed by the US Senate. By invitation, she continued through President Barack Obama’s Administration. Between 2006 and 2010, Ms. Radice approved and managed over $1 billion in grants to museums and libraries throughout the United States. For her devotion to bringing culture to all U.S. citizens, in 2008 Ms. Radice received the Presidential Citizen’s Medal - the second highest honor an American citizen can receive. She has additionally received several other accolades including the Forbes Medal (AIC) and Chairman’s Medal (NEA).
Michael Barnes has been a sought-after manager, business advisor, and marketing agent in the Sports, Arts and Entertainment industries for more than twenty years. His high-profile client roster includes Olympic gold medalists, Hall of Fame athletes, best-selling authors and respected speakers. After earning his MA in Economic History, and JD with an emphasis in Intellectual Property, Mr. Barnes launched his career applying his legal expertise to represent his clients. In 1996, he co-founded Rutherford & Barnes, a leading firm providing an array of client management services including business ventures, estates, sponsorships, speaking engagements, and licensing and accounting needs. As President, Mr. Barnes always ensures the company strives to provide all clients with the guidance they require to excel. He also serves as a consultant with Anders CPAs and Advisors, teaches Sports Law at Southeast Missouri State University, and is a frequent lecturer on sports and entertainment management.
Audit Committee
The company does not have an audit committee financial expert. We do not have an audit committee financial expert because we believe the cost related to retaining a financial expert at this time is prohibitive. Further, because we have no operations, at the present time, we believe the services of a financial expert are not warranted.
Compensation Committee
The company does not have a compensation committee.
Nomination and Corporate Governance Committee
The company does not have a nomination and corporate governance committee.
Director or Officer Involvement in Certain Legal Proceedings
Our directors and executive officers were not involved in any legal proceedings as described in Item 401(f) of Regulation S-K in the past ten years.
Board Leadership Structure and Role in Risk Oversight
At this time, the Advisory Board will assist with the strategic direction of the Company. We have not had any formal meetings however we plan to schedule meetings in 2022.
Code of Ethics
We have recently adopted a Code of Ethics that applies to our principal executive officers and principal financial officer, principal accounting officer or controller, or persons performing similar functions and also to other employees.
Employment Agreements
There are currently no employment agreements.
Risk Management
Not Applicable
Director Independence
Currently, Patricia Trompeter would not qualify as an independent director . There are 4 other directors who would qualify as independent - Ms. Myer-Woods, Mr. Malat, Mr. Barnes and Ms. Radice.

---

ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION
The following table sets forth all compensation earned in respect of our chief executive officer for our last three completed fiscal years.
SUMMARY COMPENSATION TABLE
The following information is furnished for the years ended January 31, 2021 and 2020or our executive officer.
Name and Principal Position Year Salary
($) Bonus
($) Option
Awards
($)
Non-Equity
Incentive Plan
Compensation
($)
Change in
Pension
Value
and Non-
Qualified
Deferred
Compensation
Earnings
($)
All Other
Compensation
($)
Total
($)
Patricia Trompeter $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Yun Cai $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

---

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information with respect to the beneficial ownership of our common stock as of January 31 2021, for:
■ each of our current directors and executive officers;
■ all of our current directors and executive officers as a group; and
■ each person, or group of affiliated persons, who beneficially owned more than 5% of our common stock; and
■ all directors and executive officers as a group.
Except as indicated by the footnotes below, we believe, based on information furnished to us, that the persons and entities named in the table below have sole voting and sole investment power with respect to all shares of common stock that they beneficially owned, subject to applicable community property laws.
Our calculation of the percentage of beneficial ownership is based on 54,166,680 shares of common stock outstanding as of September 17, 2021. We have determined beneficial ownership in accordance with the rules of the SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Under Rule 13d-3 of the Exchange Act of 1934, as amended (the “Exchange Act”), a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise has or shares: (i) voting power, which includes the power to vote or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person or persons, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person or persons (and only such person or persons) by reason of these acquisition rights.
Name and Address Common Stock Owned Number of
Shares Exercisable Within 60 Days
Percentage of Common Stock
Executive Officers and Directors
Patricia Trompeter(1) 2,000,000
3.69 %
Julie Myers-Wood -20,000 *
.037 %
Anne Radice 20,000 *
.037 %
JD Malat 20,000 *
.037 %
Micahel Barnes 20,000 *
.037 %
Officers and Directors as a group (2 individuals) 2,080,000
3.84 %
Beneficial owners of more than 5%
Victoria Glynn(2) 30,000,000
55.38 %
* To be issued Dec 31, 2021
(1) Includes 2,000,000 shares owned by Ceres Capital Holdings, LLC, which is controlled by Patricia Trompeter.
(2) Includes 30,000,000 shares owned by Victoria Glynn.

---

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The following is a description of the transactions and series of similar transactions, since January 31, 2021, that we were a participant or will be a participant, in which:
■ transactions in which the amount involved exceeds the lesser of $120,000 or one percent of the average of the smaller reporting company’s total assets at year-end for the last two completed fiscal years; and
■ any of our directors, executive officers, holders of more than 5% of our capital stock (which we refer to as “5% stockholders”) or any member of their immediate family had or will have a direct or indirect material interest, other than compensation arrangements with directors and executive officers.
Yun Cai loaned the Company $20,663 to pay for incorporation costs and operating expenses. As part of the transaction between Yun Cai, the former CEO, and Kryptos, Kryptos is controlled by our recently-departed CEO, Brian McWilliams. Mr. Cai paid for the auditor’s review fees by depositing money into the bank account of the Company and forgiving the loan.
On December 31, 2020, Kryptos cancelled 15,750,000 shares of common stock and transferred 2,000,000 shares of common stock to Ceres Capital Holdings, LLC (“Ceres”). Ceres is controlled by Patricia Trompeter, the Company’s current CEO.

---

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Year ended January 31, 2021 Year ended January 31, 2020
Audit fees $ 12,550 $ 13,050
Audit related fees $ 1,500 $ -
All other fees $ $ -
Total: $ 14,050 $ 13,050
PART IV

---

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS
31.1*
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a)
32.1*
Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002
32.2*
Certification of Principal Accounting Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
101.INS
XBRL Instance
101.SCH
XBRL Taxonomy Extension Schema
101.CAL
XBRL Taxonomy Extension Calculation
101.DEF
XBRL Taxonomy Extension Definition
101.LAB
XBRL Taxonomy Extension Labels
101.PRE
XBRL Taxonomy Extension Presentation
* Filed herewith