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Kinetic (KNIT)

Document and Entity Information

Document and Entity Information9 Months Ended
Jun. 30, 2018USD ($)shares
Document And Entity Information
Entity Registrant NameKinetic Group Inc.
Entity Central Index Key1,696,195
Document Type10-Q
Document Period End DateJun. 30,
2018
Amendment Flagfalse
Current Fiscal Year End Date--09-30
Is Entity a Well-known Seasoned Issuer?No
Is Entity a Voluntary Filer?No
Is Entity's Reporting Status Current?Yes
Entity Filer CategorySmaller Reporting Company
Entity Public Float | $ $ 39,125
Entity Common Stock, Shares Outstanding | shares4,960,000
Document Fiscal Period FocusQ3
Document Fiscal Year Focus2,017

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)Jun. 30, 2018Sep. 30, 2017
Current Assets:
Cash $ 8,103 $ 28,695
Accounts receivable5,550 1,500
Prepaid expenses1,175 175
Total current assets14,848 30,370
Property and equipment, net2,092 3,541
Software, net208 2,079
Total Assets17,128 35,990
Current Liabilities:
Accounts payable and accrued liabilities275 7,502
Accounts payable - related parties17,477 25,000
Payroll taxes payable508 0
Clients’ deposits4,000 0
Total current liabilities22,260 32,502
Total Liabilities22,260 32,502
Common stock, par value $0.001 per share, 75,000,000 shares authorized; 4,960,000 and 4,780,000 shares issued and outstanding as of June 30, 2018 and September 30,2017, respectively4,960 4,780
Additional paid-in capital, includes $31,000 of forgiven debt by related parties as of June 30, 2018 and $0 as of September 30, 201770,665 33,495
Accumulated deficit(80,757)(34,787)
Total stockholders' equity (deficit)(5,132)3,488
Total Liabilities and Stockholder's Equity (Deficit) $ 17,128 $ 35,990

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / sharesJun. 30, 2018Sep. 30, 2017
Statement of Financial Position [Abstract]
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized75,000,000 75,000,000
Common stock, issued4,960,000 4,780,000
Common stock, outstanding4,960,000 4,780,000

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)3 Months Ended9 Months Ended
Jun. 30, 2018Jun. 30, 2017Jun. 30, 2018Jun. 30, 2017
Income Statement [Abstract]
Revenue $ 16,000 $ 7,500 $ 41,950 $ 23,750
Cost of revenue2,800 1,500 8,500 5,536
Gross profit13,200 6,000 33,450 18,214
Operating Expenses:
Compensation – officers13,050 1,500 17,602 3,600
Professional fees4,500 3,000 12,150 11,200
Salaries9,710 0 12,957 0
General and administrative12,478 16,214 36,711 26,579
Total operating expenses                  39,738 20,714 79,420 41,379
Income (Loss) from Operations(26,538)(14,714)(45,970)(23,165)
Income tax provision0 0 0 0
Net Income (Loss) $ (26,538) $ (14,714) $ (45,970) $ (23,165)
Net income per common share - Basic and Diluted $ 0.01 $ 0 $ 0.01 $ 0.01
Outstanding - Basic and Diluted4,902,637 4,347,363 4,820,879 3,282,454

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)9 Months Ended
Jun. 30, 2018Jun. 30, 2017
Operating Activities:
Net Income (Loss) $ (45,970) $ (23,165)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation3,320 1,449
Changes in Operating Assets and Liabilities-
Accounts receivable(4,050)(2,000)
Prepaid expenses(1,000)(175)
Accounts payable and accrued liabilities(7,227)11,383
Accounts payable - related party23,477 9,000
Payroll taxes payable508 0
Clients’ deposits4,000 0
Net Cash Provided (Used) by Operating Activities(26,942)(3,508)
Investing  Activities:
Acquisition of property and equipment0 (5,144)
Net Cash Used in Investing Activities0 (5,144)
Financing Activities:
Proceeds from issuance of common stock6,350 35,525
Net Cash Provided by Financing Activities6,350 35,525
Net Change in Cash(20,592)26,873
Cash - Beginning of Period28,695 13,425
Cash - End of Period8,103 40,298
Cash paid during the period for:
Interest0 0
Income tax paid0 0
Accrued compensation-officers-forgiven and contributed to capital31,000 0
Restricted common stock canceled and proceeds contributed to capital $ 2,750 $ 0

Note 1

Note 1 9 Months Ended
Jun. 30, 2018
Notes to Financial Statements
Note 1 Note 1 – Organization and Operations Kinetic Group Inc., a Nevada corporation, (the
“Company”) was formed under the laws of the State of Nevada on June 6, 2014. Kinetic Group Inc. is a full service
integrated digital marketing agency. The company offers a full range of web services, including web marketing services, social
and viral marketing campaigns, search engine optimization consulting, custom web design, website usability consulting and web analytics
implementation. The Company generate revenue from sales of its marketing services made directly to small and medium business customers. On March 23, 2018, the Company formed a wholly
owned subsidiary, Kinetic Development Inc., an Ontario, Canada Corporation (“KDI”). The subsidiary was incorporated
to facilitate payroll transactions for the employees.

Note 2

Note 2 9 Months Ended
Jun. 30, 2018
Notes to Financial Statements
Note 2 Note 2 – Summary of Significant Accounting
Policies Basis of Presentation – Unaudited Interim Financial
Information The accompanying unaudited interim financial
statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States
of America (“U.S. GAAP”) for interim financial information, and with the rules and regulations of the United States
Securities and Exchange Commission (“SEC”) to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include
all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements
furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary
to a fair statement of the results for the interim periods presented. Unaudited interim results are not necessarily indicative
of the results for the full fiscal year. These unaudited interim financial statements should be read in conjunction with the financial
statements of the Company for the year ended September 30, 2017 and notes thereto contained in the information as part of the Company’s
Annual Report on the Form 10-K filed with Securities and Exchange Commission on December 22, 2017. Principle of consolidation The accompanying consolidated financial statements
include all of the accounts of the Company as of June 30, 2018 and 2017 and as of September 30, 2017, and for the three and nine
months ended June 30, 2018 and 2017. KDI is included as of June 30, 2018 and for the period from March 23, 2018 (date of formation)
through June 30, 2018. All intercompany balances and transactions have been eliminated. Development Stage company Kinetic Group Inc. is a development stage company
as defined by section 915-10-20 of the FASB Accounting Standards Codification. Although the Company has recognized nominal
amounts of revenue, it is still devoting substantially all of its efforts on establishing the business. All losses accumulated
since Inception (June 4, 2014) have been considered as part of the Company’s development stage activities. In June 2014, the FASB issued ASU No. 2014-10,
Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable
Interest Entities Guidance in Topic 810, Consolidation. The amendments in this Update remove the definition
of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial
reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments
eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income,
cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description
of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no
longer a development stage entity that in prior years it had been in the development stage. For public business entities, those amendments
are effective for annual reporting periods beginning after December 15, 2014, and interim periods therein. Kinetic Group has elected
to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial
Reporting Requirements. The adoption of this ASU allows the company to remove the inception to date information and all references
to development stage. Use of Estimates and Assumptions and
Critical Accounting Estimates and Assumptions
(i)
Assumption as a going concern .
(ii)
Allowance for doubtful accounts
(iii) Valuation allowance for deferred tax assets: These significant accounting estimates or assumptions
bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates
or assumptions are difficult to measure or value. Management bases its estimates on historical
experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole
under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities
that are not readily apparent from other sources. Management regularly evaluates the key factors and assumptions used to develop
the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable
assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Fair Value of Financial Instruments The Company follows paragraph 825-10-50-10
of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37
of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial
instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted
in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in
fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the
inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the
highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to
unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:
Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.
Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.
Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data. Financial assets are considered Level 3 when
their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one
significant model assumption or input is unobservable. The fair value hierarchy gives the highest
priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable
inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above,
the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The carrying amount of the Company’s
financial assets and liabilities, such as cash, prepaid expenses, accounts payable and accrued expenses, approximate their fair
value because of the short maturity of those instruments. Transactions involving related parties cannot
be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not
exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were
consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated. Cash Equivalents The Company considers all highly liquid investments with a maturity
of three months or less to be cash and cash equivalents. Property and Equipment Property and equipment are recorded at cost.
Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred.
Depreciation is calculated using the straight-line method over the estimated useful lives,
which range from Related Parties The Company follows subtopic 850-10 of the
FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.
Pursuant to Section 850-10-20 the related parties include: a. affiliates of the Company; b. entities for which investments
in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection
of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit
of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal
owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls
or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties
might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the
management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties
and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully
pursuing its own separate interests. The financial statements shall include disclosures
of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the
ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of financial statements
is not required in those statements. The disclosures shall include: a. the
nature of the relationship(s) involved; b. a description of the transactions, including transactions to which no amounts or nominal
amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary
to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions
for each of the periods for which income statements are presented and the effects of any change in the method of establishing the
terms from that used in the preceding period; and d. amounts due from or to related parties as of the date of each
balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Commitments and Contingencies The Company follows subtopic 450-20 of the
FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date
the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more
future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves
an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted
claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims
as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates
that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated
liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material
loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent
liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally
not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe,
based upon information available at this time that these matters will have a material adverse effect on the Company’s financial
position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely
affect the Company’s business, financial position, and results of operations or cash flows. Revenue Recognition The Company applies paragraph 605-10-S99-1
of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized
or realizable and earned. The Company considers revenue realized or realizable
and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been
shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability
is reasonably assured. The Company derives its revenues from sales
contracts with its customer with revenues being generated upon rendering of services. Persuasive evidence of an arrangement
is demonstrated via invoice; service is considered provided when the service is delivered to the customers; and the sales price
to the customer is fixed upon acceptance of the purchase order and there is no separate sales rebate, discount, or volume incentive. Income Tax Provision The Company accounts for income taxes under
Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and
liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted
tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation
allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax
rates is recognized in the statements of operations in the period that includes the enactment date. The Company adopted the provisions of paragraph
740-10-25-13 of the FASB Accounting Standards Codification. Paragraph 740-10-25-13 addresses the determination of whether
tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph
740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that
the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial
statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood
of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification,
interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The estimated future tax effects of temporary
differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit
carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance
sheets and provides valuation allowances as management deems necessary. Management makes judgments as to the interpretation
of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the
Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion,
adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates,
additional allowances or reversals of reserves may be necessary. Uncertain Tax Positions The Company did not take any uncertain tax
positions and had no unrecognized tax liabilities or benefits in accordance with the provisions of Section 740-10-25 at
June 30, 2018 and 2017. Earnings per Share Earnings Per Share is the amount
of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per
share. Pursuant to ASC Paragraphs 260-10-45-10 through 260-10-45-16 Basic EPS
shall be computed by dividing income available to common stockholders (the numerator) by the weighted-average number of common
shares outstanding (the denominator) during the period. Income available to common
stockholders shall be computed by deducting both the dividends declared in the period on preferred stock (whether or not paid)
and the dividends accumulated for the period on cumulative preferred stock (whether or not earned) from income from continuing
operations (if that amount appears in the income statement) and also from net income. The computation of diluted EPS is similar
to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that
would have been outstanding if the dilutive potential common shares had been issued Pursuant to ASC Paragraphs 260-10-45-45-21
through 260-10-45-45-23 Diluted EPS shall be based on the most advantageous conversion rate or
exercise price from the standpoint of the security holder. Equivalents of options and warrants include
non-vested stock granted to employees, stock purchase contracts, and partially paid stock subscriptions (see paragraph 260–10–55–23).
Anti-dilutive contracts, such as purchased put options and purchased call options, shall be excluded from diluted EPS. Under
the treasury stock method: a. Exercise of options and warrants shall be assumed at the beginning of the period (or at time
of issuance, if later) and common shares shall be assumed to be issued. b. The proceeds from exercise shall be assumed to
be used to purchase common stock at the average market price during the period. (See paragraphs 260-10-45-29 and 260-10-55-4 through
55-5.) c. The incremental shares (the difference between the number of shares assumed issued and the number of shares assumed
purchased) shall be included in the denominator of the diluted EPS computation. There were no potentially debt or equity instruments
issued and outstanding at any time during the periods ended June 30, 2018 and 2017. Cash Flows Reporting The Company adopted paragraph 230-10-45-24
of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether
they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect
or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards
Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from
operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals
of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating
cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the
current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies
is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately
provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant
to paragraph 830-230-45-1 of the FASB Accounting Standards Codification. Subsequent Events The Company follows the guidance in Section
855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent
events through the date when the financial statements were issued. Recently Issued Accounting Pronouncements Management does not believe that any recently
issued, but not yet effective accounting pronouncements, if adopted, will have a material effect on the accompanying financial
statements.

Note 3

Note 3 9 Months Ended
Jun. 30, 2018
Notes to Financial Statements
Note 3 Note 3 – Going Concern The accompanying financial statements have
been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization
of assets, and liquidation of liabilities in the normal course of business. As reflected in the accompanying financial
statements, the Company had accumulated deficit at June 30, 2018, which raise substantial doubt about the Company’s ability
to continue as a going concern. The Company is attempting to generate sufficient
revenue; however, the Company’s cash position may not be sufficient to support the Company’s daily operations. Management intends to raise additional funds
by way of a private or public offering. While the Company believes in the viability of its strategy to continue operations
and generate sufficient revenue and in its ability to raise additional funds, there can be no assurances to that effect.
The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its
business plan and generate sufficient revenue and its ability to raise additional funds by way of a public or private offering. The financial statements do not include any
adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities
that might be necessary if the Company is unable to continue as a going concern.

Note 4

Note 4 9 Months Ended
Jun. 30, 2018
Notes to Financial Statements
Note 4 Note 4 – Property and Equipment Property and equipment at June 30, 2018 and September 30,
2017 consisted of the following:
Estimated Useful Lives (Years)
June 30, 2018
September 30, 2017
Computer equipment 5 $ 5,832 $ 5,832
Less accumulated depreciation (3,740) (2,291)
Computer equipment, net 2,092 3,541
Software 1 2,495 2,495
Less accumulated amortization (2,287) (416)
Software, net 208 2,079
Total property and equipment, net $ 2,300 $ 5,620 Depreciation expense Depreciation expense for the nine-months ended June 30, 2018
and the year ended September 30, 2017 was $3,320 and $2,349, respectively.

Note 5

Note 5 9 Months Ended
Jun. 30, 2018
Notes to Financial Statements
Note 5 Note 5 – Related Party Transactions On March 12, 2018,
the Board of Directors of the Company appointed Mr. Timothy Barker to serve as the Company’s President. In connection
with his appointment as President, the Company entered into a consulting agreement with Mr. Barker. The consulting agreement
provides that Mr. Barker will receive compensation in the amount of $48,000 per year, payable monthly. The term of the agreement
is for one year. On March 12, 2018,
Mr.Yaroslav Startsev, President, Chief Executive Officer and member of the Board of Directors of the Company resigned from his
position as President of the Company. He will continue serving as the Company’s Chief Executive Officer and a member of the
Board of Directors concentrating his efforts on the company’s daily operations, and marketing and technology sides of the
Company’s business. Mr. Startsev will continue to be compensated pursuant to the terms of his existing consulting agreement
with the Company, which is consistent with the Company’s consulting agreements with other similarly situated executives. Consulting services from President, Chief
Executive Officer, Secretary and Treasurer and Chief Financial Officer Consulting services provided by the President,
Chief Executive Officer, and Chief Financial Officer, Secretary and Treasurer for the nine months ended June 30, 2018 and the year
ended September 30, 2017 were as follows:
For the Nine Months Ended June 30, 2018
For the Year Ended September 30, 2017
President $ 14,452 $ -
Chief Executive Officer 4,500 6,000
Chief Financial Officer, Secretary and Treasurer 4,500 6,000
$ 23,452 * $ 12,000 * *
- During the nine-month period ended June 30, 2018, $5,850 of these related parties consulting services was recognized in cost
of revenues and $3,150 in officers’ compensation within operating expenses. During the year ended September 30, 2017, $7,350
of these related parties consulting services was recognized in cost of revenues and $4,650 in officers’ compensation within
operating expenses. Debt Settlement As of March 31, 2018 the Company owed
to the Company’s officers, Mr. Yaroslav Startsev and Mr. Nikolai Kuzmin, Thirty One Thousand Dollars ($31,000) (the “Debt”)
for management consulting fees incurred by the Company in accordance with the effective Management Consulting Agreements between
the Company and its officers. The Company’s officers agreed
to donate the Debt to the Company’s contributed capital in full satisfaction of the
Debt, effective March 31, 2018. This Debt settlement improved the Company’s financial position and increased its working
capital. The Company’s officers released and forever discharged the Company, its successors and assigns from all manner of
actions, suits, debts due, accounts, bonds, contracts, claims and demands whatsoever which against the Company they ever had or
now have in connection to the Debt. Accounts Payable – Related Parties As of June 30, 2018 and September 30, 2017
the Company owed its directors and officers $17,477 and $25,000 respectively. These amounts represent unpaid consulting fees and
cash advances as of the end of the reporting period.

Note 6

Note 6 9 Months Ended
Jun. 30, 2018
Notes to Financial Statements
Note 6 Note 6 – Stockholders’ Equity
(Deficit) Shares authorized Upon formation the total number of shares of
all classes of stock which the Company is authorized to issue is seventy-five million (75,000,000) shares of common stock, par
value $0.001 per share. Unregistered shares of common stock In August 2015, the Company sold 2,750,000
shares of its common stock at par to its directors for $2,750 in cash. On March 27, 2018 the Board of Directors
of the Company approved the Stock Cancellation Agreements with Yaroslav Startsev (1,500,000 shares) and Nikolai Kuzmin (1,250,000
shares) canceling their shares with the Company in exchange for the Company agreeing to accept new subscription agreements. The
Company retained the subscription funds paid by Yaroslav Startsev and Nikolai Kuzmin for the cancelled shares of Common Stock as
contributed capital to the Company. As of March 28, 2018, the Company received
subscription agreements and subscription funds representing an aggregate of 1,300,000 shares of Common Stock from Yaroslav Startsev
for $1,300 and 1,050,000 shares of Common stock from Nikolai Kuzmin for $1,050 which certificates shall bear an appropriate restricted
legend under the Securities Act of 1933, as amended. As of March 28, 2018 the Company also
received a subscription agreement and subscription funds from Timothy Barker representing 400,000 shares of Common Stock for $400
which shall bear an appropriate restricted legend under the Securities Act of 1933 as amended. The above transactions were undertaken
to allow share ownership for all the officer and directors of the Company while no resulting in any dilution to the public shareholders
or the Company. The above transactions were exempt under Section 4(a)2 of the Securities Act of 1933 as amended. The following table represents a summary
of the restricted stock cancellation and issuance during the nine months ended June 30, 2018:
Name and Title of Balance Number of Shares Balance
Title of Class Beneficial Owner September 30, 2017 Canceled Issued June 30, 2018
Common T.Barker, President - 400,000 400,000
Common Y.Startsev, C.E.O. 1,500,000 (1,500,000) 1,300,000 1,300,000
Common N.Kuzmin, C.F.O. 1,250,000 (1,250,000) 1,050,000 1,050,000
Total Number of Shares: 2,750,000 (2,750,000) 2,750,000 2,750,000 Registered shares of common stock During the year ended September 30, 2017, the
Company’s Registration Statement on the Form S-1 filed with the Securities and Exchange Commission was declared effective.
In April 2017, the Company completed the sale of 2,030,000 shares of common stock at $0.0175 per share for total proceeds of $35,525
pursuant to this Registration Statement. Regulation D Offering On April 9, 2018 the Company filed with the
Securities and Exchange Commission a notice of an exempt offering of the Company’s securities on the Form D (the “Offering”).
The Company is offering 10,000,000 Shares under the Offering at a price of $0.02 per Share for an aggregate Offering price of US
$200,000. The Securities are being offered by the Company through its officers and directors on a "best efforts" basis,
pursuant to a non-public offering exemption from the registration requirements imposed by the Securities Act of 1933, under Regulation
D, Rule 506, as amended ("1933 Act"). The Securities are not
being registered and may not be sold unless they are registered under applicable Federal and State securities laws or an exemption
from such laws is available. As of June 30, 2018 the Company sold 180,000
shares of common stock for total proceeds of $3,600 pursuant to this Offering.

Note 7

Note 7 9 Months Ended
Jun. 30, 2018
Notes to Financial Statements
Note 7 Note 7 – Subsequent Events In accordance with ASC 855-10 we have
analyzed our operations subsequent to June 30, 2018 to August 8, 2018, the date of these financial statement were issued, and have
determined that we do not have any material subsequent events to disclose in these financial statements other than the events discussed
above.