Notes to the Financial Statements
Nine months ended February 28, 2023
Note 1 – ORGANIZATION AND NATURE OF BUSINESS
Linktory Inc. was incorporated in the State of Nevada on March
31, 2021. Our company is a new venture, which intends to specialize in the creation, development, optimization and implementation
of a complex product for the development of a service sector (restaurants, cafes, night clubs, karaoke, hotels, museums, etc.) by creating
highly functional chatbots in popular messengers, such as Telegram and Facebook Messenger. In the future, we also plan to implement our
product in other messengers: WhatsApp, Viber, WeChat etc.
Our principal place of business is located Bulevardi Deshmoret e Kombit,
Twin Tower, Tirana, Albania 1001 is provided to us on a rent -free basis by our sole officer and director. Our telephone number is +17026604903.
Note 2 – GOING CONCERN
The accompanying financial statements have been prepared in conformity
with generally accepted accounting principles in the United States of America (“GAAP”), which contemplate continuation of
the Company as a going concern. The Company has an accumulated deficit of $65,609 from Inception on March 31, 2021 ending February 28,
2023. The Company has negative working capital $(50,891) as of February 28, 2023. The Company currently has losses and has not completed
its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. Therefore,
there is substantial doubt about the Company’s ability to continue as a going concern. Management anticipates that the Company will
be dependent, for the near future, on additional investment capital to fund operating expenses. The Company intends to position itself
so that it will be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances
that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.
Note 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying financial statements have been prepared in accordance
with the rules and regulations (Regulation S-X) of the Securities and Exchange Commission (the “SEC”). In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results
of operations indicative of the operating results that may be expected for the year from Inception on March 31, 2021 ended February 28,
2023.
Revenue
In accordance with ASC 606, revenue is measured based on a consideration
specified with a customer and recognized when we satisfy the performance obligation specified with a customer.
During the nine months ended February 28, 2023, we generated total
revenue of $8,905.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments
Financial Accounting Standards Board (“FASB”) Accounting
Standards Codification (“ASC”) Topic 820 "Fair Value Measurement" defines fair value as the exchange price that
would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability
in an orderly transaction between market participants on the measurement date. The standards apply to recurring and nonrecurring fair
value measurements of financial and non-financial assets and liabilities. The Company determines the fair values of its assets and liabilities
based on a fair value hierarchy that includes Three levels of inputs that may be used to measure fair value.
For The Three levels are defined as follows:
| Level 1: |
defined as observable inputs such as quoted prices in active markets; |
| Level 2: |
defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and |
| Level 3: |
defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
Due to its short-term nature, the carrying value of receivables, accounts
payable, and advances approximated fair value at February 28, 2023.
Income Taxes
Income taxes are computed using the asset and liability method. Under
the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial
reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance
is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.
Long-Lived Assets – Intangible Assets
We account for our intangible assets in accordance with ASC Subtopic
350-30, General Intangibles Other Than Goodwill, and ASC Subtopic 360-10-05, Accounting for the Impairment or Disposal of Long-Lived Assets.
ASC Subtopic 350-30 requires assets to be measured based on the fair value of the consideration given or the fair value of the assets
(or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. Further, ASC Subtopic 350-30 requires
an intangible asset to be amortized over its useful life and for the useful life to be evaluated every reporting period to determine whether
events or circumstances warrant a revision to the remaining period of amortization. If the estimate of useful life is changed the remaining
carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Costs of internally developing,
maintaining, or restoring intangible assets are recognized as an expense when incurred.
Basic 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 February 28, 2023, there were no potentially dilutive debt or equity instruments issued or outstanding.
Recent Accounting Pronouncements
We have reviewed all the recently issued, but not yet effective, accounting
pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.
Risks and Uncertainties
The extent of the impact of the coronavirus ("COVID-19")
outbreak on the financial performance of the Company will depend on future developments, including the duration and spread of the outbreak
and related advisories and restrictions and the impact of COVID-19 on the overall economy, all of which are highly uncertain and cannot
be predicted. If the overall economy is impacted for an extended period, the Company’s future operating results may be materially
adversely affected.
The ultimate impact of the COVID-19 pandemic on the Company’s
operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including
the duration of the COVID-19 outbreak, new information which may emerge concerning the severity of the COVID-19 pandemic, and any additional
preventative and protective actions that governments, or the Company, may direct, which may result in an extended period of continued
business disruption, reduced customer traffic and reduced operations. Any resulting financial impact cannot be reasonably estimated at
this time but is anticipated to have a material adverse impact on our business, financial condition and results of operations.
Management expects that its business will be impacted
to some degree, but the significance of the impact of the COVID-19 outbreak on the Company’s business and the duration for which
it may have an impact cannot be determined at this time.
Financial Statement Reclassification
Certain account balances from prior periods have
been reclassified in these financial statements to conform to current period classifications.
Note 4 – COMMON STOCK
The Company has 75,000,000,
$0.0001 par value shares of voting
common stock authorized.
All shares of common stock have voting rights and are identical. All
holders of shares of common stock shall at every meeting of the stockholders be entitled to one vote for each share of the capital stock
held by such stockholder.
On April 2, 2021, the Company issued 3,500,000 shares of common stock
as a consideration to all the Company’s needs to sole officer, director, and related party, Granit Gjoni, at par value of $0.0001
per share or $350.
During second quarter ended November 30, 2021 the Company issued 300,000
common shares at $0.01 per share to four shareholders in consideration of $3,000.
During third quarter ended February 28, 2022 the Company issued 1,845,000
common shares at $0.01 per share to 24 shareholders in consideration of $18,450.
During fourth quarter ended May 31, 2022 the Company
issued 275,000 common shares at $0.01 per share to 4 shareholders in consideration of $2,750.
As of February 28, 2023 the company had 5,920,000 shares issued and
outstanding.
Note 5 – WEBSITE AND CHATBOT DEVELOPMENT COSTS
The Company purchased and possesses an asset in a form of an operative website
and two highly functional chat-bots. The Company purchased the website and two chat-bots for $15,000 on May 31, 2021. Next period we plan
to include amortization of the asset using straight-line formula over its five-year useful life or $3,000 per year. As of May 31, 2022
ending February 28, 2023, amortization expense was $5,250.
Balance as of February 28, 2023 as follows:
| Schedule of intangible assets | |
| |
| Website Development | |
$ | 15,000 | |
| Amortization Expense | |
| 5,250 | |
| Intangible Asset (net) | |
$ | 9,750 | |
Note 6 – COMMITMENTS AND CONTINGENCIES
Our sole officer and director, Granit Gjoni, has agreed to provide
his own premise for office needs. He will not take any fee for these premises; it is for free use.
Note 7 – RELATED PARTY TRANSACTIONS
The sole officer and director, Granit Gjoni, is the only related party
with whom the Company had transactions with during the period from inception on March 31, 2021 through February 28, 2023 Mr. Gjoni paid
$20,791 for operating expenses on behalf of the Company. The amount due to the related party is unsecured and non-interest bearing with
no set terms of repayment.
Mr. Gjoni currently devotes approximately thirty hours per week to
manage our affairs. Under a Consulting Agreement, our officer and director is entitled to $700 per month in cash compensation but this
amount is being deferred until the Company is in a position to start payments. In addition, Mr. Gjoni is reimbursed for any out-of-pocket
expenses that he incurs on our behalf. From the beginning of his contract on May 1, 2021 ended February 28, 2023, Mr. Gjoni earned $15,400
of compensation for accrued wages.
As of May 31, 2021, Mr. Gjoni had stock compensation in the amount
of $350 that he paid for company's expenses during Incorporation, for that he received 3,500,000 of common shares.
Note 8 – SUBSEQUENT EVENTS
In accordance with SFAS 165 (ASC 855-10) the Company has analyzed its
operations subsequent to February 28, 2023 to the date these financial statements were issued and has determined that it does not have
any material subsequent events to disclose in these financial statements.
Management expects that its business will be impacted to some degree,
but the significance of the impact of the COVID-19 outbreak on the Company’s business and the duration for which it may have an
impact cannot be determined at this time.