10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the fiscal year ended August 31, 2018

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

For the transition period from ___________ to ___________

COMMISSION FILE NO. 333-214122

ZARTEX INC.

 (Exact name of registrant as specified in its charter)

Nevada (State or Other Jurisdiction of Incorporation or Organization) 98-1322537 IRS Employer Identification Number 7371 Primary Standard Industrial Classification Code Number

4760 South Pecos Rd. Suite 103

Las Vegas, NV 89121

Tel.  (775) 391-8588

 (Address and telephone number of registrant's executive office)     

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: None

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Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for shorter period that the registrant as required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Yes [ ] No [X]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [ ]                     Accelerated filer [ ]

Non-accelerated filer [ ]                       Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act) Yes [ ] No [X]

As of October 16, 2018, the registrant had 6,340,000 shares of common stock issued and outstanding. No market value has been computed based upon the fact that no active trading market has been established as of October 16, 2018.

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Table Of Contents

	Part I
Item 1	Description Of Business	4
Item 1a	Risk Factors	5
Item 1b	Unresolved Staff Comments	5
Item 2	Properties	5
Item 3	Legal Proceedings	5
Item 4	Submission Of Matters To A Vote Of Security Holders	5
	Part II
Item  5	Market For Common Equity And Related Stockholder Matters	5
Item  6	Selected Financial Data	6
Item  7	Management's Discussion And Analysis Or Results Of Operations	6
Item 7a	Quantitative And Qualitative Disclosures About Market Risk	8
Item 8	Financial Statements And Supplementary Data	8
Item 9	Changes In And Disagreements With Accountants On Accounting And Financial Disclosure	19
Item 9a	Controls And Procedures	19
Item 9b	Other Information	19
	Part III
Item 10	Directors, Executive Officers, Promoters And Control Persons; Compliance With Section 16(A) Of The Exchange Act	19
Item 11	Executive Compensation	21
Item 12	Security Ownership Of Certain Beneficial Owners And Management And Related Stockholder Matters	21
Item 13	Certain Relationships, Related Transactions And Director Independence	22
Item 14	Principal Accountant Fees And Services	22
	Part IV
Item 15	Exhibits And Financial Statement Schedules	23

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PART I

ITEM 1. DESCRIPTION OF BUSINESS

FORWARD-LOOKING STATEMENTS

This annual report contains forward-looking statements. These statements relate to future events or our future financial performance. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

As used in this annual report, the terms "we", "us", "our", "the Company", mean ZARTEX INC., unless otherwise indicated.

All dollar amounts refer to US dollars unless otherwise indicated.

We are a software company and deliver the services for garment distribution industry. Our main service is the IT product for garment retailers. We deliver a software product (to which we may refer as a program, a web-engine or an application), the visible part of which we plan to design in a form of a web catalogue. With many offers in the garment industry producers and retailers might experience difficulties in delivering their offer to their potential customers. Customers might feel insecure about how their actual size matches to the size of clothing displayed on the retailer’s or producer’s website. We expect that employment of our program can make it easier to advertise and sell garment items, for retailers, select and buy, for garment buyers.

Our main customers are online and real stores involved in clothing distribution to whom we plan to sell our software and customize precisely to their needs. The users of the application who are the retailers’ customers are our indirect customers whom we do not charge for using the software. We deliver our software together with the buyers aligned website which holds a catalogue of various brands clothing items listed in it. For the users, our application within the website will perform only informing functions with the possibility to reserve the items chosen in the most convenient outlet, with the most reasonable price (to the user’s mind). Our software has programming engine which can be used many times for our customers. We sell the software and the service of software customization for every potential client. The software cannot be used separately from software customization because of garment retailers have their individual products, prices, service etc. Our software is an application which can be used in our customers’ web-catalogs or on any supported devices. We retain the rights to use our software with to use the “Match Me” software and its feature in our future product offerings.

In order to gain our customer’s awareness, we come to the market with highly adaptive web engine which might be tweaked to the needs of the end user. We expect that coding a mobile application might give our software wider popularity among customers. The mobile application might be used as both a mobile version of the web catalogue and a measuring device. The mobile application will use the algorithm of the Rule of Perspective to compare clothing sizes on the store to those of the customers. Provided that a customer takes a photo of a real size object, adjusts it to fit the marked frame in the application it displays if the chosen garment can fit the customer.

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Our application users may also enable “Match Me” feature which we plan to deliver within the application. “Match Me” is expected to use the algorithm of analyzing the data provided by user in order to make lists of clothing styles (with actual items from the stores that we plan to partner up with), and the information concerning the price, the brand, the store to be on display. It is quite obvious that people stick to a clothing style due to the preferences in music (for instance, rock listeners are likely to wear leather), movies (some people might copy the styles of the favorite actors in certain films) health style (people involved in yoga might prefer natural materials to synthetic ones) and other preferences. Enabling “Match Me” feature, a user goes through a simple multiple-choice questionnaire including the questions about the preferences, actual season and mood in order to receive the possible clothing combinations.  The engine of our web catalogue is supposed to be built in the way that it displays garment items regardless the brand awareness, which may help small brands and individual designers to make their way to general public. We expect that our program can also inspire the competition between retailers, which may result in a number of various offers for clothing buyers, thus helping us to receive awareness and to involve as many retailers in our project as possible.

Provided that retailers show their interest in our program, we may come to a certain retailer outlet with an additional item - “Match Me Box”, a computerized installment. We plan to configure the “Match Me Box” in a similar way that “Match Me” feature of the application works. This “Match Me Box” is schemed to be installed in shopping centres for the customers, who have a certain idea (or no ideas) of what to acquire but feel disoriented by the overwhelming number of outlets in a store.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

We do not own any property.

ITEM 3. LEGAL PROCEEDINGS

We are not currently involved in any legal proceedings and we are not aware of any pending or potential legal actions.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No report required.

PART II

ITEM 5. MARKET FOR EQUITY SECURITIES AND OTHER SHAREHOLDER MATTERS

MARKET INFORMATION

As of October 16, 2018, the 6,340,000 issued and outstanding shares of common stock were held by a total of 31 shareholders of record.

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DIVIDENDS

We have never paid or declared any dividends on our common stock and do not anticipate paying cash dividends in the foreseeable future.

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

We currently do not have any equity compensation plans.

ITEM 6. SELECTED FINANCIAL DATA

Not Applicable.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT OF OPERATIONS

The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.  Our actual results could differ materially from those discussed in the forward- looking statements.  Factors that could cause or contribute to such differences include, but are not limited to those discussed below and elsewhere in this Annual Report.  Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

RESULTS OF OPERATIONS

As of August 31, 2018, we have accumulated a deficit of $49,678. We anticipate that we will continue to incur losses in the next 12 months. Our financial statements have been prepared assuming that we will continue as a going concern.  We expect we will require additional capital to meet our long-term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.

Year Ended August 31, 2018

Revenue

During the year ended August 31, 2017 the Company did not generated revenue. During the year ended August 31, 2017, the Company generated $35,100 in revenue.

Costs of revenues

Costs of revenues for the year ended August 31, 2018 and 2017 were $nil and $29,257. Costs of revenues during the year ended August 31, 2017, mainly consisted of cost of labor for development and outsource development services.

Operating Expenses

During the year ended August 31, 2018 and Year ended August 31, 2017, we incurred $30,982 and $24,375 in general and administrative expenses. General and administrative and professional fee expenses incurred generally related to corporate overhead, financial and administrative contracted services, such as legal and accounting services. Increase in operating expenses in 2018 was due to increase in amortization expenses and consulting service fees.

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Income Taxes

The Company has net deferred tax assets as NOL carryforward which would reduce taxable income taxes in the future. However due to the uncertainty of the benefits of such deferred tax assets, the Company take a full allowance to offset the benefits.

Net Loss

Our net loss for the year ended August 31, 2018 and 2017 were $30,982 and $18,532, respectively.

LIQUIDITY AND CAPITAL RESOURCES

The Company has working capital deficit of $29,550 as of August 31, 2018 as compared to working capital deficit of $2,472 as of August 31, 2017.

As at August 31, 2018 our total assets were $29,111 compared to $40,125 in total assets at August 31, 2017.  

As at August 31, 2018, our current liabilities were $46,989 compared to $27,021 as of August 31, 2017.

Stockholders’ deficit was $17,878 as of August 31, 2018 compared to Stockholders’ equity $13,104 as of August 31, 2017.

The Company has relied on related party advances or loans for expenses and funding to support the operation of the Company. Outstanding payables to related party was $32,379, and $17,264 as of August 31, 2018 and 2017, respectively.

Cash Flows from Operating Activities

For the year ended August 31, 2018, net cash flows used in operating activities was $22,225 consisting of net loss of $30,982, increase in accounts payable of $4,853 and depreciation and amortization of $3,904.

For the year ended August 31, 2017, net cash flows used in operating activities was $8,301 consisting of net loss of $18,532, increase in accounts payable of $9,757 and depreciation and amortization of $474.

Cash Flows from Investing Activities

For the year ended August 31, 2018, we did not use any cash in investing activities.

For the year ended August 31, 2017, net cash flows used in investing activities was $16,050. The Company acquired computer equipment and software for its operations.

Cash Flows from Financing Activities

Cash flows provided by financing activities during the year ended August 31, 2018 were $15,115, consisting entirely of $15,115 loan from shareholder.

Cash flows provided by financing activities during the nine-months period ended August 31, 2017 were $48,900, consisting of $17,100 loan from shareholder and $31,800 from proceeds from sale of common stock.

PLAN OF OPERATION AND FUNDING

We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.

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Existing working capital, further advances by related party and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next twelve months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) developmental expenses associated with a start-up business and (ii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.

MATERIAL COMMITMENTS

As of the date of this Annual Report, we do not have any material commitments.

PURCHASE OF SIGNIFICANT EQUIPMENT

We do not intend to purchase any significant equipment during the next twelve months.

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.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                

Report of Independent Registered Public Accounting Firm	F-1
Balance Sheets as of August 31, 2018 and August 31, 2017	F-2
Statements of Operations for the year ended August 31, 2018; and Year ended August 31, 2017	F-3
Statement of Changes in Stockholders’ Equity for the period from Inception (August 17, 2016) to August 31, 2018	F-4
Statements of Cash Flows for the year ended August 31, 2018; and Year ended August 31, 2017	F-5
Notes to the Financial Statements	F-6 -F-11

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To:

The Board of Directors and Stockholders of

Zartex Inc.

Opinion on the Financial Statements

We have audited the accompanying balance sheets of Zartex Inc. (the Company) as of August 31, 2018 and 2017, and the related statements of operations, stockholders’ equity, and cash flows for each of the years in the two-year period ended August 31, 2018, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of August 31, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the two-year period ended August 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

Explanatory Paragraph Regarding Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company had incurred substantial losses during the year, and has a working capital deficit, which raises substantial doubt about its ability to continue as a going concern. Management’s plan in regards to these matters are described in Note 3. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Jimmy P. Lee, CPA P.C.

We have served as the Company’s auditor since 2017

Jimmy P. Lee, CPA P.C.

Flushing, New York

October 16, 2018

F-1

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ZARTEX INC. (A DEVELOPMENT STAGE COMPANY) BALANCE SHEET (AUDITED)
		AUGUST 31, 2018	AUGUST 31, 2017
ASSETS
Current Assets
	Cash	$           17,439	$       24,549
	Total current assets	17,439	24,549
Property & equipment, net		8,204	10,376
Intangible asset, net		3,468	5,200
Total Assets		$           29,111	$        40,125
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
	Accounts payable	14,610	9,757
	Loan from related parties	32,379	17,264
	Total current liabilities	46,989	27,021
Total Liabilities		46,989	27,021
Commitments & Contingencies
Stockholders’ Equity (Deficit)
	Common stock, $0.001 par value, 75,000,000 shares authorized;
	6,340,000 shares issued and outstanding	6,340	6,340
	Additional paid-in-capital	25,460	25,460
	Deficit accumulated during the development stage	(49,678)	(18,696)
Total Stockholders’ Equity (Deficit)		(17,878)	13,104
Total Liabilities and Stockholders’ Equity (Deficit)		$    29,111	$       40,125

The accompanying notes are an integral part of these financial statements.

F-2

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ZARTEX INC. (A DEVELOPMENT STAGE COMPANY) STATEMENT OF OPERATION (AUDITED)
	Year ended August 31, 2018	Year ended August 31, 2017
Revenues	$              -	$        35,100
Cost of revenues	-	29,257
Gross margin	-	5,843
Operating expenses
General and administrative expenses	30,982	24,375
Income (loss) from operations	(30,982)	(18,532)
Income (loss) before taxes	(30,982)	(18,532)
Provision for taxes	-
Net income (loss)	$         (30,982)	$        (18,532)
Loss per common share:  Basic and Diluted	$              (0.00)	$          (0.00)
Weighted Average Number of Common Shares Outstanding: Basic and Diluted	6,340,000	5,557,178

The accompanying notes are an integral part of these financial statements.

F-3

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ZARTEX INC. (A DEVELOPMENT STAGE COMPANY) STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE PERIOD FROM INCEPTION (AUGUST 17, 2016) TO AUGUST 31, 2018 (AUDITED)
	Number of Common Shares	Amount	Additional Paid-in- Capital	Deficit accumulated during development stage	Total
Balances at August 17, 2016, Inception	-	$        -	$     -	$               -	$         -
Net loss for the period	-	-	-	(164)	(164)
Balances as of August 31, 2016	-	-	-	(164)	(164)
Shares issued at $0.001	5,000,000	5,000	-	-	5,000
Shares issued at $0.02	1,340,000	1,340	25,460	-	26,800
Net loss for the period				(18,532)	(18,532)
Balances as of August 31, 2017	6,340,000	$   6,340	$  25,460	$    (18,696)	$     13,104
Net loss for the period				(30,982)	(30,982)
Balances as of August 31, 2018	6,340,000	$   6,340	$   25,460	$   (49,678)	$  (17,878)

The accompanying notes are an integral part of these financial statements.

F-4

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ZARTEX INC. (A DEVELOPMENT STAGE COMPANY) STATEMENT OF CASH FLOWS (AUDITED)
		Year ended August 31, 2018	Year ended August 31, 2017
Operating Activities
	Net loss	$      (30,982)	$           (18,532)
	Depreciation and amortization	3,904	474
	Accounts payable	4,853	9,757
	Net cash used in operating activities	(22,225)	(8,301)
Investing Activities
Purchase of Equipment and intangible assets		-	(16,050)
Net cash used in investing activities		-	(16,050)
Financing Activities
	Proceeds from sale of common stock	-	31,800
	Proceeds from loan from shareholder	15,115	17,100
	Net cash provided by financing activities	15,115	48,900
Net increase in cash and equivalents		(7,110)	24,549
Cash and equivalents at beginning of the period		24,549	-
Cash and equivalents at end of the period		$        17,439	$              24,549
	Supplemental cash flow information:
	Cash paid for:
	Interest	$             -	$              -
	Taxes	$             -	$              -

The accompanying notes are an integral part of these financial statements.

F-5

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ZARTEX INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE AUDITED FINANCIAL STATEMENTS

YEAR ENDED AUGUST 31, 2018

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

ZARTEX INC. (the “Company”) is a corporation established under the corporation laws in the State of Nevada on August 17, 2016.

The company commences operations in the business of software development. The company seeks to deliver services for garment distribution industry. The main service is the IT product for garment retailers.

The Company’s activities are subject to significant risks and uncertainties including failure to secure additional funding to properly execute the company’s business plan.

The Company has adopted August 31 fiscal year end.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.

Development Stage Company

The Company is a development stage company as defined in ASC 915 “Development Stage Entities.”. The Company is devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced.  All losses accumulated since inception have been considered as part of the Company's development stage activities.

The Company has elected to adopt application of Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements.  Upon adoption, the Company no longer presents or discloses inception-to-date information and other remaining disclosure requirements of Topic 915.

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.

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Fair values of financial instruments

The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available.  The three levels are defined as follow:

· Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

· Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

· Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value.

As of the balance sheet date, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to the short maturities of these instruments and that the interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective period-ends. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each quarter.

Cash and Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Basic and Diluted Loss Per Share

Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted 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.

Revenue Recognition

On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. The updated guidance, and subsequent clarifications, collectively referred to as ASC 606, require an entity to recognize revenue when it transfers control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

There was no significant impact to the statement of operations and comprehensive income (loss) as the Company’s existing revenue policies are in line with ASC 606.

Our revenue consists of service revenue from “Match Me” software programming code with customization service. The Company recognizes revenue when performance obligations identified under the terms of the contracts with its customers are satisfied, which generally occurs when the programming code of the software and the customization services are delivered to the customer when completed in accordance with the contractual terms and conditions of the sale.

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Software Development Costs

Costs incurred in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Judgment is required in determining when technological feasibility of a product is established and the Company have determined that technological feasibility for our software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are available to the public for sale.

The “Match Me” software programming code was developed by the Company’s sole officer and director, Aleksandr Zausaev. Software development and customization expenses include Mr. Zausaev’s labor cost.

Income Taxes

Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes.  A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

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

New Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which requires lessees to record most leases on their balance sheets, recognizing a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance in ASU 2016-02 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We currently expect that most of our operating lease commitments will be subject to the update and recognized as operating lease liabilities and right-of-use assets upon adoption. However, we are currently evaluating the effect that implementation of this update will have upon adoption on our financial position and results of operations.

There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on our financial position, operations or cash flows.

Property and Equipment & Depreciation

Property and equipment are stated at cost less accumulated depreciation comprised of computer equipment and are depreciated on the straight-line method over the estimated life of the asset, which is 5 years.

Intangible Assets & Amortization

The Company’s intangible assets are stated at cost less accumulated amortization comprised of computer software and are amortized on the straight-line method over the estimated life of the asset which is 3 years.

Impairment of Long-lived assets

The Company accounts for impairment of plant and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset’s (or asset group’s) fair value.

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NOTE 3 – GOING CONCERN

The Company’s financial statements as of August 31, 2018, been prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.

The Company has not yet established an ongoing source of revenues and cash flows sufficient to cover its operating costs and allow it to continue as a going concern. The Company has accumulated net loss of $49,678 since inception and incurred net loss of $30,982 for the year ended August 31, 2018. These factors among others raise substantial doubt about the ability of the company to continue as a going concern for a reasonable period of time.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 4 – PROEPRTY & EQUIPMENTS

Property and equipment, net, is comprised of the following:

	August 31, 2018	August 31, 2017
Computer and Equipment	$                                             10,850	$                                                      10,850
Total	10,850	10,850
Accumulated Depreciation	(2,646)	(474)
Net	$                                             8,204	$                                                      10,376

Depreciation expenses were $2,172 and $474 for the years ended August 31, 2018 and 2017

NOTE 5 – INTANGIBLE ASSETS

Intangible assets consisted of the following:

	August 31, 2018	August 31, 2017
Computer Sowtware	$                                                5,200	$                                                       5,200
Total	5,200	5,200
Accumulated Amortization	(1,732)	-
Net	$                                               3,468	$                                                       5,200

Amortization expenses were $1,732 and $nil for the years ended August 31, 2018 and 2017

NOTE 6 – CAPTIAL STOCK

The Company has 75,000,000 shares of common stock authorized with a par value of $0.001 per share.

On September 12, 2016, the Company issued 5,000,000 shares of common stock at $0.001 per share for a proceed of $5,000.

For the year period ended August 31, 2017, the Company issued 1,340,000 shares of common stock at $0.02 per share for a proceed of $26,800.

As of August 31, 2018, the Company had 6,340,000 shares issued and outstanding.

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NOTE 7 – RELATED PARTY TRANSACTIONS

In support of the Company’s efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note.  

Since August 17, 2016 (Inception) through August 31, 2018 the Company’s sole officer and director, Mr. Aleksandr Zausaev, has loaned the Company from time to time to pay for incorporation costs and operating expenses. As of August 31, 2018, the outstanding payable amount to Mr Zausaev was $32,379.

Mr. Zausaev also provides services to the Company for which he was compensated. As of August 31, 2018, the outstanding accounts payable amount to Mr. Zausaev was $9,757 The amounts above are non-interest bearing, due upon demand and unsecured.

NOTE 8– INCOME TAX

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (“Tax Reform Act”). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. As a result of the reduction in the U.S. corporate income tax rate from 34% to 21% under the Tax Reform Act, the Company revalued its ending net deferred tax assets. In addition, net operating losses (NOL) arising after December 31, 2017 can be carryforward indefinitely while limiting the NOL deduction for a given year to 80% of taxable income.

As of May 31, 2018, the Company had net operating loss carry forwards of $49,678 that may be available to reduce future years’ taxable income through 2038. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

NOTE 9 - CONCENTRATIONS

The Company has only one supplier who is the sole officer and majority shareholder of the Company with outstanding accounts payable of $9,757 (100%) at August 31, 2018.

NOTE 10 - SUBSEQUENT EVENTS

The Company has evaluated subsequent events from August 31, 2018 to the date the financial statements were issued and has determined that there are no items to disclose.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Our principal executive officer and principal financial and accounting officer have reviewed the effectiveness of our “disclosure controls and procedures” (as defined in the Securities Exchange Act of 1934 Rules 13(a)-15(e) and 15(d)-15(e)) within the end of the period covered by this Annual Report on Form 10-K and have concluded that the disclosure controls and procedures are effective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner.

Changes in Internal Controls over Financial Reporting

There have been no changes in the Company's internal control over financial reporting during the last quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS OF THE COMPANY

Name and Address of Executive Officer and/or Director	Age	Position
Aleksandr Zausaev 4760 South Pecos Rd. Suite 103, Las Vegas, NV 89121	32	President, Treasurer, Secretary and Director (Principal Executive, Financial and Accounting Officer)

Aleksandr Zausaev has acted as our President, Treasurer, Secretary and sole Director since we incorporated on August 17, 2016. Mr. Zausaev owns 78.86% of the outstanding shares of our common stock. As such, it was unilaterally decided that Mr. Zausaev was going to be our sole President, Chief Executive Officer, Treasurer, and Chief Financial Officer, Chief Accounting Officer, Secretary and sole member of our board of directors. Mr. Zausaev graduated from Moscow State University in 2009 as Master of Information Technology Management. Since 2008 he has been working as the freelance software developer and website developer. He has been working on an outsource basis with entyties and individuals from around the world. We believe that Mr. Zausaev’s specific experience, qualifications and skills will enable to develop our business.

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During the past ten years, Mr. Zausaev has not been the subject to any of the following events:

1.

Any bankruptcy petition filed by or against any business of which Mr. Zausaev was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.

2.

Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.

3.

An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Mr. Zausaev’s involvement in any type of business, securities or banking activities.

4.

Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

5.

Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;

6.

Was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;

7.

Was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:

i.

Any Federal or State securities or commodities law or regulation; or

ii.

Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or

iii.

Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

1.

Was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

AUDIT COMMITTEE

We do 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.

SIGNIFICANT EMPLOYEES

Other than our director, we do not expect any other individuals to make a significant contribution to our business.

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ITEM 11. EXECUTIVE COMPENSATION

The following tables set forth certain information about compensation paid, earned or accrued for services by our Executive Officer from inception on August 17, 2016 until August 31, 2017, and for the year ended August 31, 2018:

Summary Compensation Table

Name and Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensation ($)	All Other Compensation ($)	All Other Compensation ($)	Total ($)
Aleksandr Zausaev, Director, President, Secretary and Treasurer	September 1, 2016 to August 31, 2017	-0-	-0-	-0-	-0-	-0-	-0-	-0-	-0-
	September 1, 2017 to August 31, 2018	-0-	-0-	-0-	-0-	-0-	-0-	-0-	-0-

There are no current employment agreements between the company and its officer or director.

There are no annuity, pension or retirement benefits proposed to be paid to the officer or director or employees in the event of retirement at normal retirement date pursuant to any presently existing plan provided or contributed to by the company or any of its subsidiaries, if any.

CHANGE OF CONTROL

As of August 31, 2018, we had no pension plans or compensatory plans or other arrangements which provide compensation in the event of a termination of employment or a change in our control.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth information as of August 31, 2018 regarding the ownership of our common stock by each shareholder known by us to be the beneficial owner of more than five percent of our outstanding shares of common stock, each director and all executive officers and directors as a group. Except as otherwise indicated, each of the shareholders has sole voting and investment power with respect to the shares of common stock beneficially owned.

Title of Class	Name and Address of Beneficial Owner	Amount and Nature of  Beneficial Ownership	Percentage
Common Stock	Aleksandr Zausaev 4760 South Pecos Rd. Suite 103, Las Vegas, NV 89121	5,000,000 shares of common stock (direct)		78.86	%

The percent of class is based on 6,340,000 shares of common stock issued and outstanding as of the date of this annual report.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

On September 12, 2016, we issued a total of 5,000,000 shares of restricted common stock to Aleksandr Zausaev, our sole officer and director in consideration of $5,000. Further, Mr. Zausaev has advanced funds to us. As of August 31, 2018, Mr. Zausaev has advanced to us $32,379. There is no due date for the repayment of the funds advanced by Mr. Zausaev. Mr. Zausaev will be repaid from revenues of operations. The obligation to Mr. Zausaev does not bear interest. There is no written agreement evidencing the advancement of funds by Mr. Zausaev or the repayment of the funds to Mr. Zausaev.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The following table shows the fees paid or accrued for the audit and other services provided by our principal accountant.

	August 31, 2018	August 31, 2017
Audit fees	$  9,800	$	9,000
Audit related fees	-0-		-0-
Tax fees	$ 600		$ 500
All other fees	-0-		-0-

Audit Fees

Audit fees represent the professional services rendered for the audit of our annual financial statements and the review of our financial statements included in quarterly reports, along with services normally provided by the accountant in connection with statutory and regulatory filings or engagements.

Audit Related Fees

Audit-related fees represent professional services rendered for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of our financial statements that are not reported under audit fees.

Tax Fees

Tax fees represent professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning.

All Other Fees

All other fees represent fees billed for products and services provided by the principal accountant, other than the services reported for the other categories.

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ITEM 15. EXHIBITS

The following exhibits are filed as part of this Annual Report.

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 Certification 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

101.INS  XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ZARTEX INC.
Dated: October 19, 2018	By: /s/ Aleksandr Zausaev
	Aleksandr Zausaev, President and Chief Executive Officer and Chief Financial Officer

23 | Page

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

18 U.S.C. ss 1350, AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Aleksandr Zausaev, certify that:

1. I have reviewed this annual report on Form 10-K of  ZARTEX INC.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. October 19, 2018  By:            /s/ Aleksandr Zausaev                        Aleksandr Zausaev, President and Chief Executive Officer and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. ss 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Aleksandr Zausaev, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	the Annual Report on Form 10-K of  ZARTEX INC. for the year ended August 31, 2018 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of ZARTEX INC. October 19, 2018  By:            /s/ Aleksandr Zausaev                     Aleksandr Zausaev, President and Chief Executive Officer and Chief Financial Officer

XML

Document and Entity Information - USD ($)	12 Months Ended
	Aug. 31, 2018	Oct. 16, 2018
Document and Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Aug. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Registrant Name	ZARTEX INC.
Entity Central Index Key	0001684508
Current Fiscal Year End Date	--08-31
Entity Filer Category	Smaller Reporting Company
Entity Public Float	$ 0
Entity Common Stock, Shares Outstanding		6,340,000
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

BALANCE SHEET - USD ($)	Aug. 31, 2018	Aug. 31, 2017
ASSETS
Cash	$ 17,439	$ 24,549
Total current assets	17,439	24,549
Property & equipment, net	8,204	10,376
Intangible asset, net	3,468	5,200
Total Assets	29,111	40,125
Accounts payable	14,610	9,757
Loan from related parties	32,379	17,264
Total current liabilities	46,989	27,021
Total Liabilities	46,989	27,021
Common stock, $0.001 par value, 75,000,000 shares authorized; 6,340,000 shares issued and outstanding	6,340	6,340
Additional paid-in-capital	25,460	25,460
Deficit accumulated during the development stage	(49,678)	(18,696)
Total Stockholders' Equity (Deficit)	(17,878)	13,104
Total Liabilities and Stockholders' Equity (Deficit)	$ 29,111	$ 40,125

XML

BALANCE SHEET (Parenthetical) - shares	Aug. 31, 2018	Aug. 31, 2017
Statement of Financial Position [Abstract]
Common stock shares authorized	75,000,000	75,000,000
Common stock shares shares issued and outstanding	6,340,000	6,340,000

XML

STATEMENT OF OPERATION - USD ($)	12 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Income Statement [Abstract]
Revenues	$ 0	$ 35,100
Cost of revenues	0	29,257
Gross margin	0	5,843
General and administrative expenses	30,982	24,375
Income (loss) from operations	(30,982)	(18,532)
Income (loss) before taxes	(30,982)	(18,532)
Net income (loss)	$ (30,982)	$ (18,532)
Loss per common share: Basic and Diluted	$ (0.00)	$ (0.00)
Weighted Average Number of Common Shares Outstanding: Basic and Diluted	6,340,000	5,557,178

XML

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Total	Amount	Additional Paid-in- Capital	Deficit accumulated during development stage
Shares issued for period	$ 31,800	$ 6,340	$ 25,460
Net loss for the period	(18,532)			$ (18,532)
Balances as of August 31, 2018 at Aug. 31, 2017	13,104	6,340	25,460	(18,696)
Net loss for the period	(30,982)			(30,982)
Balances as of August 31, 2018 at Aug. 31, 2018	(17,878)	6,340	25,460	(49,678)
Balances as of August 31, 2017 at Aug. 31, 2017	$ 13,104	$ 6,340	$ 25,460	$ (18,696)

XML

STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical)	12 Months Ended
	Aug. 31, 2017 USD ($)
Statement of Stockholders' Equity [Abstract]
Shares issued at $0.001	$ 5,000,000
Shares issued at $0.02	$ 1,340,000

XML

STATEMENT OF CASH FLOWS - USD ($)	12 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Statement of Cash Flows [Abstract]
Net loss	$ (30,982)	$ (18,532)
Depreciation and amortization	3,904	474
Accounts payable	4,853	9,757
Net cash used in operating activities	(22,225)	(8,301)
Purchase of Equipment and intangible assets	0	(16,050)
Net cash used in investing activities	0	(16,050)
Proceeds from sale of common stock	0	31,800
Proceeds from loan from shareholder	15,115	17,100
Net cash provided by financing activities	15,115	48,900
Net increase in cash and equivalents	(7,110)	24,549
Cash and equivalents at beginning of the period	24,549	0
Cash and equivalents at end of the period	17,439	24,549
Interest	0	0
Taxes	$ 0	$ 0

XML

- ORGANIZATION AND BASIS OF PRESENTATION

12 Months Ended

Aug. 31, 2018

- ORGANIZATION AND BASIS OF PRESENTATION [Abstract]

- ORGANIZATION AND BASIS OF PRESENTATION

NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION

ZARTEX INC. (the “Company”) is a corporation established under the corporation laws in the State of Nevada on August 17, 2016.

The company commences operations in the business of software development. The company seeks to deliver services for garment distribution industry. The main service is the IT product for garment retailers.

The Company's activities are subject to significant risks and uncertainties including failure to secure additional funding to properly execute the company's business plan.

The Company has adopted August 31 fiscal year end.

XML

- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Aug. 31, 2018

- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.

Development Stage Company

The Company is a development stage company as defined in ASC 915 “Development Stage Entities.”. The Company is devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced.  All losses accumulated since inception have been considered as part of the Company's development stage activities.

The Company has elected to adopt application of Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements.  Upon adoption, the Company no longer presents or discloses inception-to-date information and other remaining disclosure requirements of Topic 915.

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.

Fair values of financial instruments

The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available.  The three levels are defined as follow:

· Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

· Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

· Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value.

As of the balance sheet date, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to the short maturities of these instruments and that the interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective period-ends. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each quarter.

Cash and Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Basic and Diluted Loss Per Share

Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted 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.

Revenue Recognition

On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. The updated guidance, and subsequent clarifications, collectively referred to as ASC 606, require an entity to recognize revenue when it transfers control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

There was no significant impact to the statement of operations and comprehensive income (loss) as the Company's existing revenue policies are in line with ASC 606.

Our revenue consists of service revenue from “Match Me” software programming code with customization service. The Company recognizes revenue when performance obligations identified under the terms of the contracts with its customers are satisfied, which generally occurs when the programming code of the software and the customization services are delivered to the customer when completed in accordance with the contractual terms and conditions of the sale.

Software Development Costs

Costs incurred in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Judgment is required in determining when technological feasibility of a product is established and the Company have determined that technological feasibility for our software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are available to the public for sale.

The “Match Me” software programming code was developed by the Company's sole officer and director, Aleksandr Zausaev. Software development and customization expenses include Mr. Zausaev's labor cost.

Income Taxes

Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes.  A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

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

New Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which requires lessees to record most leases on their balance sheets, recognizing a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance in ASU 2016-02 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We currently expect that most of our operating lease commitments will be subject to the update and recognized as operating lease liabilities and right-of-use assets upon adoption. However, we are currently evaluating the effect that implementation of this update will have upon adoption on our financial position and results of operations.

There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on our financial position, operations or cash flows.

Property and Equipment & Depreciation

Property and equipment are stated at cost less accumulated depreciation comprised of computer equipment and are depreciated on the straight-line method over the estimated life of the asset, which is 5 years.

Intangible Assets & Amortization

The Company's intangible assets are stated at cost less accumulated amortization comprised of computer software and are amortized on the straight-line method over the estimated life of the asset which is 3 years.

Impairment of Long-lived assets

The Company accounts for impairment of plant and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset's (or asset group's) fair value.

XML

- GOING CONCERN

12 Months Ended

Aug. 31, 2018

- GOING CONCERN [Abstract]

- GOING CONCERN

NOTE 3 - GOING CONCERN

The Company's financial statements as of August 31, 2018, been prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.

The Company has not yet established an ongoing source of revenues and cash flows sufficient to cover its operating costs and allow it to continue as a going concern. The Company has accumulated net loss of $49,678 since inception and incurred net loss of $30,982 for the year ended August 31, 2018. These factors among others raise substantial doubt about the ability of the company to continue as a going concern for a reasonable period of time.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking third party equity and/or debt financing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

XML

- PROEPRTY & EQUIPMENTS

12 Months Ended

Aug. 31, 2018

- PROEPRTY & EQUIPMENTS [Abstract]

- PROEPRTY & EQUIPMENTS

NOTE 4 - PROEPRTY & EQUIPMENTS

Property and equipment, net, is comprised of the following:

	August 31, 2018	August 31, 2017
Computer and Equipment	$                                             10,850	$                                                      10,850
Total	10,850	10,850
Accumulated Depreciation	(2,646)	(474)
Net	$                                             8,204	$                                                      10,376

Depreciation expenses were $2,172 and $474 for the years ended August 31, 2018 and 2017

XML

- INTANGIBLE ASSETS

12 Months Ended

Aug. 31, 2018

- INTANGIBLE ASSETS [Abstract]

- INTANGIBLE ASSETS

NOTE 5 - INTANGIBLE ASSETS

Intangible assets consisted of the following:

	August 31, 2018	August 31, 2017
Computer Sowtware	$                                                5,200	$                                                       5,200
Total	5,200	5,200
Accumulated Amortization	(1,732)	-
Net	$                                               3,468	$                                                       5,200

Amortization expenses were $1,732 and $nil for the years ended August 31, 2018 and 2017

XML

- CAPTIAL STOCK

12 Months Ended

Aug. 31, 2018

- CAPTIAL STOCK [Abstract]

- CAPTIAL STOCK

NOTE 6 - CAPTIAL STOCK

The Company has 75,000,000 shares of common stock authorized with a par value of $0.001 per share.

On September 12, 2016, the Company issued 5,000,000 shares of common stock at $0.001 per share for a proceed of $5,000.

For the year period ended August 31, 2017, the Company issued 1,340,000 shares of common stock at $0.02 per share for a proceed of $26,800.

As of August 31, 2018, the Company had 6,340,000 shares issued and outstanding.

XML

- RELATED PARTY TRANSACTIONS

12 Months Ended

Aug. 31, 2018

- RELATED PARTY TRANSACTIONS [Abstract]

- RELATED PARTY TRANSACTIONS

NOTE 7 - RELATED PARTY TRANSACTIONS

In support of the Company's efforts and cash requirements, it may rely on advances from related parties until such time that the Company can support its operations or attains adequate financing through sales of its equity or traditional debt financing. There is no formal written commitment for continued support by officers, directors, or shareholders. Amounts represent advances or amounts paid in satisfaction of liabilities. The advances are considered temporary in nature and have not been formalized by a promissory note. 

Since August 17, 2016 (Inception) through August 31, 2018 the Company's sole officer and director, Mr. Aleksandr Zausaev, has loaned the Company from time to time to pay for incorporation costs and operating expenses. As of August 31, 2018, the outstanding payable amount to Mr Zausaev was $32,379.

Mr. Zausaev also provides services to the Company for which he was compensated. As of August 31, 2018, the outstanding accounts payable amount to Mr. Zausaev was $9,757The amounts above are non-interest bearing, due upon demand and unsecured.

XML

- INCOME TAX

12 Months Ended

Aug. 31, 2018

- INCOME TAX [Abstract]

- INCOME TAX

NOTE 8- INCOME TAX

On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (“Tax Reform Act”). The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. As a result of the reduction in the U.S. corporate income tax rate from 34% to 21% under the Tax Reform Act, the Company revalued its ending net deferred tax assets. In addition, net operating losses (NOL) arising after December 31, 2017 can be carryforward indefinitely while limiting the NOL deduction for a given year to 80% of taxable income.

As of May 31, 2018, the Company had net operating loss carry forwards of $49,678 that may be available to reduce future years' taxable income through 2038. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

XML

- CONCENTRATIONS

12 Months Ended

Aug. 31, 2018

- CONCENTRATIONS [Abstract]

- CONCENTRATIONS

NOTE 9 - CONCENTRATIONS

The Company has only one supplier who is the sole officer and majority shareholder of the Company with outstanding accounts payable of $9,757 (100%) at August 31, 2018.

XML

- SUBSEQUENT EVENTS

12 Months Ended

Aug. 31, 2018

- SUBSEQUENT EVENTS [Abstract]

- SUBSEQUENT EVENTS

NOTE 10 - SUBSEQUENT EVENTS

The Company has evaluated subsequent events from August 31, 2018 to the date the financial statements were issued and has determined that there are no items to disclose.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Our principal executive officer and principal financial and accounting officer have reviewed the effectiveness of our “disclosure controls and procedures” (as defined in the Securities Exchange Act of 1934 Rules 13(a)-15(e) and 15(d)-15(e)) within the end of the period covered by this Annual Report on Form 10-K and have concluded that the disclosure controls and procedures are effective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner.

Changes in Internal Controls over Financial Reporting

There have been no changes in the Company's internal control over financial reporting during the last quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS OF THE COMPANY

Name and Address of Executive Officer and/or Director	Age	Position
Aleksandr Zausaev 4760 South Pecos Rd. Suite 103, Las Vegas, NV 89121	32	President, Treasurer, Secretary and Director (Principal Executive, Financial and Accounting Officer)

Aleksandr Zausaev has acted as our President, Treasurer, Secretary and sole Director since we incorporated on August 17, 2016. Mr. Zausaev owns 78.86% of the outstanding shares of our common stock. As such, it was unilaterally decided that Mr. Zausaev was going to be our sole President, Chief Executive Officer, Treasurer, and Chief Financial Officer, Chief Accounting Officer, Secretary and sole member of our board of directors. Mr. Zausaev graduated from Moscow State University in 2009 as Master of Information Technology Management. Since 2008 he has been working as the freelance software developer and website developer. He has been working on an outsource basis with entyties and individuals from around the world. We believe that Mr. Zausaev's specific experience, qualifications and skills will enable to develop our business.

During the past ten years, Mr. Zausaevhas not been the subject to any of the following events:

1.Any bankruptcy petition filed by or against any business of which Mr. Zausaevwas a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.

2.Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.

3.An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Mr. Zausaev's involvement in any type of business, securities or banking activities.

4.Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

5.Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;

6.Was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;

7.Was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:

i.Any Federal or State securities or commodities law or regulation; or

ii.Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or

iii.Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

8.Was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

AUDIT COMMITTEE

We do 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.

SIGNIFICANT EMPLOYEES

Other than our director, we do not expect any other individuals to make a significant contribution to our business.

ITEM 11. EXECUTIVE COMPENSATION

The following tables set forth certain information about compensation paid, earned or accrued for services by our Executive Officer from inception on August 17, 2016 until August 31, 2017, and for the year ended August 31, 2018:

Summary Compensation Table

Name and Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensation ($)	All Other Compensation ($)	All Other Compensation ($)	Total ($)
Aleksandr Zausaev, Director, President, Secretary and Treasurer	September 1, 2016 to August 31, 2017	-0-	-0-	-0-	-0-	-0-	-0-	-0-	-0-
	September 1, 2017 to August 31, 2018	-0-	-0-	-0-	-0-	-0-	-0-	-0-	-0-

There are no current employment agreements between the company and its officer or director.

There are no annuity, pension or retirement benefits proposed to be paid to the officer or director or employees in the event of retirement at normal retirement date pursuant to any presently existing plan provided or contributed to by the company or any of its subsidiaries, if any.

CHANGE OF CONTROL

As of August 31, 2018, we had no pension plans or compensatory plans or other arrangements which provide compensation in the event of a termination of employment or a change in our control.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth information as of August 31, 2018 regarding the ownership of our common stock by each shareholder known by us to be the beneficial owner of more than five percent of our outstanding shares of common stock, each director and all executive officers and directors as a group. Except as otherwise indicated, each of the shareholders has sole voting and investment power with respect to the shares of common stock beneficially owned.

Title of Class	Name and Address of Beneficial Owner	Amount and Nature of  Beneficial Ownership	Percentage
Common Stock	Aleksandr Zausaev 4760 South Pecos Rd. Suite 103, Las Vegas, NV 89121	5,000,000 shares of common stock (direct)		78.86	%

The percent of class is based on 6,340,000 shares of common stock issued and outstanding as of the date of this annual report.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

On September 12, 2016, we issued a total of 5,000,000 shares of restricted common stock to Aleksandr Zausaev, our sole officer and director in consideration of $5,000. Further, Mr. Zausaev has advanced funds to us. As of August 31, 2018, Mr. Zausaev has advanced to us $32,379. There is no due date for the repayment of the funds advanced by Mr. Zausaev. Mr. Zausaev will be repaid from revenues of operations. The obligation to Mr. Zausaev does not bear interest. There is no written agreement evidencing the advancement of funds by Mr. Zausaev or the repayment of the funds to Mr. Zausaev.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

The following table shows the fees paid or accrued for the audit and other services provided by our principal accountant.

	August 31, 2018	August 31, 2017
Audit fees	$  9,800	$	9,000
Audit related fees	-0-		-0-
Tax fees	$ 600		$ 500
All other fees	-0-		-0-

Audit Fees

Audit fees represent the professional services rendered for the audit of our annual financial statements and the review of our financial statements included in quarterly reports, along with services normally provided by the accountant in connection with statutory and regulatory filings or engagements.

Audit Related Fees

Audit-related fees represent professional services rendered for assurance and related services by the principal accountant that are reasonably related to the performance of the audit or review of our financial statements that are not reported under audit fees.

Tax Fees

Tax fees represent professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning.

All Other Fees

All other fees represent fees billed for products and services provided by the principal accountant, other than the services reported for the other categories.

ITEM 15. EXHIBITS

The following exhibits are filed as part of this Annual Report.

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

101.INS  XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ZARTEX INC.
Dated: October _, 2018	By: /s/ Aleksandr Zausaev
	Aleksandr Zausaev, President and Chief Executive Officer and Chief Financial Officer

XML

Significant Accounting Policies (Policies)

12 Months Ended

Aug. 31, 2018

Significant Accounting Policies (Policies) [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.

Development Stage Company

The Company is a development stage company as defined in ASC 915 “Development Stage Entities.”. The Company is devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced.  All losses accumulated since inception have been considered as part of the Company's development stage activities.

The Company has elected to adopt application of Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements.  Upon adoption, the Company no longer presents or discloses inception-to-date information and other remaining disclosure requirements of Topic 915.

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.

Fair values of financial instruments

The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available.  The three levels are defined as follow:

· Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

· Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

· Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value.

As of the balance sheet date, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to the short maturities of these instruments and that the interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profile at respective period-ends. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates the hierarchy disclosures each quarter.

Cash and Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Basic and Diluted Loss Per Share

Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted 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.

Revenue Recognition

On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. The updated guidance, and subsequent clarifications, collectively referred to as ASC 606, require an entity to recognize revenue when it transfers control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

There was no significant impact to the statement of operations and comprehensive income (loss) as the Company's existing revenue policies are in line with ASC 606.

Our revenue consists of service revenue from “Match Me” software programming code with customization service. The Company recognizes revenue when performance obligations identified under the terms of the contracts with its customers are satisfied, which generally occurs when the programming code of the software and the customization services are delivered to the customer when completed in accordance with the contractual terms and conditions of the sale.

Software Development Costs

Costs incurred in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Judgment is required in determining when technological feasibility of a product is established and the Company have determined that technological feasibility for our software products is reached after all high-risk development issues have been resolved through coding and testing. Generally, this occurs shortly before the products are available to the public for sale.

The “Match Me” software programming code was developed by the Company's sole officer and director, Aleksandr Zausaev. Software development and customization expenses include Mr. Zausaev's labor cost.

Income Taxes

Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes.  A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities.

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

New Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which requires lessees to record most leases on their balance sheets, recognizing a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance in ASU 2016-02 is required for annual reporting periods beginning after December 15, 2018, with early adoption permitted. We currently expect that most of our operating lease commitments will be subject to the update and recognized as operating lease liabilities and right-of-use assets upon adoption. However, we are currently evaluating the effect that implementation of this update will have upon adoption on our financial position and results of operations.

There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on our financial position, operations or cash flows.

Property and Equipment & Depreciation

Property and equipment are stated at cost less accumulated depreciation comprised of computer equipment and are depreciated on the straight-line method over the estimated life of the asset, which is 5 years.

Intangible Assets & Amortization

The Company's intangible assets are stated at cost less accumulated amortization comprised of computer software and are amortized on the straight-line method over the estimated life of the asset which is 3 years.

Impairment of Long-lived assets

The Company accounts for impairment of plant and equipment and amortizable intangible assets in accordance with ASC 360, “Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of”, which requires the Company to evaluate a long-lived asset for recoverability when there is event or circumstance that indicate the carrying value of the asset may not be recoverable. An impairment loss is recognized when the carrying amount of a long-lived asset or asset group is not recoverable (when carrying amount exceeds the gross, undiscounted cash flows from use and disposition) and is measured as the excess of the carrying amount over the asset's (or asset group's) fair value.

XML

- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

13 Months Ended

Aug. 31, 2018

- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) [Abstract]

Level 1

The Company adopted ASC 820 “Fair Value Measurements,” which defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosures requirements for fair value measures. Current assets and current liabilities qualified as financial instruments and management believes their carrying amounts are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and if applicable, their current interest rate is equivalent to interest rates currently available.  The three levels are defined as follow:

· Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2

· Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments.

Level 3

· Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value.

XML

- PROEPRTY & EQUIPMENTS (Tables)

12 Months Ended

Aug. 31, 2018

- PROPERTY & EQUIPMENTS (Tables) [Abstract]

Property and equipment, net, is

Property and equipment, net, is comprised of the following:

	August 31, 2018	August 31, 2017
Computer and Equipment	$                                             10,850	$                                                      10,850
Total	10,850	10,850
Accumulated Depreciation	(2,646)	(474)
Net	$                                             8,204	$                                                      10,376

XML

- INTANGIBLE ASSETS (Tables)

12 Months Ended

Aug. 31, 2018

- INTANGIBLE ASSETS (Tables) [Abstract]

Intangible assets consisted of the

Intangible assets consisted of the following:

	August 31, 2018	August 31, 2017
Computer Sowtware	$                                                5,200	$                                                       5,200
Total	5,200	5,200
Accumulated Amortization	(1,732)	-
Net	$                                               3,468	$                                                       5,200

XML

- SUBSEQUENT EVENTS (Tables)

12 Months Ended

Aug. 31, 2018

- SUBSEQUENT EVENTS (Tables) [Abstract]

DIRECTORS, EXECUTIVE OFFICERS,

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS OF THE COMPANY

Name and Address of Executive Officer and/or Director	Age	Position
Aleksandr Zausaev 4760 South Pecos Rd. Suite 103, Las Vegas, NV 89121	32	President, Treasurer, Secretary and Director (Principal Executive, Financial and Accounting Officer)

Summary Compensation Table

Summary Compensation Table

Name and Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensation ($)	All Other Compensation ($)	All Other Compensation ($)	Total ($)
Aleksandr Zausaev, Director, President, Secretary and Treasurer	September 1, 2016 to August 31, 2017	-0-	-0-	-0-	-0-	-0-	-0-	-0-	-0-
	September 1, 2017 to August 31, 2018	-0-	-0-	-0-	-0-	-0-	-0-	-0-	-0-

The following table sets forth information as of August 31, 2018 regarding the ownership of our common stock

The following table sets forth information as of August 31, 2018 regarding the ownership of our common stock by each shareholder known by us to be the beneficial owner of more than five percent of our outstanding shares of common stock, each director and all executive officers and directors as a group. Except as otherwise indicated, each of the shareholders has sole voting and investment power with respect to the shares of common stock beneficially owned.

Title of Class	Name and Address of Beneficial Owner	Amount and Nature of  Beneficial Ownership	Percentage
Common Stock	Aleksandr Zausaev 4760 South Pecos Rd. Suite 103, Las Vegas, NV 89121	5,000,000 shares of common stock (direct)		78.86	%

The following table shows the the fees paid or accrued for the audit and other services provided by our principal accountant

The following table shows the fees paid or accrued for the audit and other services provided by our principal accountant.

	August 31, 2018	August 31, 2017
Audit fees	$  9,800	$	9,000
Audit related fees	-0-		-0-
Tax fees	$ 600		$ 500
All other fees	-0-		-0-

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ZARTEX INC.
Dated: October _, 2018	By: /s/ Aleksandr Zausaev
	Aleksandr Zausaev, President and Chief Executive Officer and Chief Financial Officer

XML

- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Text)	Aug. 31, 2018 USD ($)
Summary Of_ Significant_ Accounting Policies [Abstract]
Property and equipment are stated at cost less accumulated depreciation comprised of computer equipment and are depreciated on the straight-line method over the estimated life of the asset, which is 5 years.	$ 5
The Company's intangible assets are stated at cost less accumulated amortization comprised of computer software and are amortized on the straight-line method over the estimated life of the asset which is 3 years.	$ 3

XML

- GOING CONCERN (Details Text)	Aug. 31, 2018 USD ($)
Going Concern_ Abstract_ [Abstract]
The Company has accumulated net loss of $49,678 since inception and incurred net loss of $30,982 for the year ended August 31, 2018	$ 30,982

XML

- PROEPRTY & EQUIPMENTS (Details 1) - USD ($)	Aug. 31, 2018	Aug. 31, 2017
Property_ Equipments_ Abstract_ [Abstract]
Computer and Equipment	$ 10,850	$ 10,850
Total	10,850	10,850
Accumulated Depreciation	(2,646)	(474)
Net	$ 8,204	$ 10,376

XML

- PROEPRTY & EQUIPMENTS (Details Text) - USD ($)	Aug. 31, 2018	Aug. 31, 2017
Property Equipments 2018 __ [Abstract]
Depreciation expenses were $2,172 and $474 for the years ended August 31, 2018 and 2017	$ 2,172	$ 474

XML

- INTANGIBLE ASSETS (Details 1) - USD ($)	Aug. 31, 2018	Aug. 31, 2017
Intangible Assets Abstract__ [Abstract]
Computer Sowtware	$ 5,200	$ 5,200
Total	5,200	$ 5,200
Accumulated Amortization	$ (1,732)

XML

- INTANGIBLE ASSETS (Details Text) - USD ($)	Aug. 31, 2018	Aug. 31, 2017
Intangible_ Asset_ [Abstract]
Amortization expenses were $1,732 and $nil for the years ended August 31, 2018 and 2017	$ 1,732	$ 0

XML

- CAPTIAL STOCK (Details Text) - USD ($)	Aug. 31, 2018	Aug. 31, 2017	Sep. 12, 2016
- CAPTIAL STOCK [Abstract]
On September 12, 2016, the Company issued 5,000,000 shares of common stock at $0.001 per share for a proceed of $5,000.			$ 5,000,000
For the year period ended August 31, 2017, the Company issued 1,340,000 shares of common stock at $0.02 per share for a proceed of $26,800.		$ 1,340,000
As of August 31, 2018, the Company had 6,340,000 shares issued and outstanding.	$ 6,340,000

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- RELATED PARTY TRANSACTIONS (Details Text)	Aug. 31, 2018 USD ($)
Related Party_ Transactions [Abstract]
As of August 31, 2018, the outstanding payable amount to Mr Zausaev was $32,379.	$ 32,379
Zausaev was $9,757 The amounts above are non-interest bearing, due upon demand and unsecured.	$ 9,757

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- INCOME TAX (Details Text)	May 31, 2018 USD ($)
Income__ Tax__ [Abstract]
As of May 31, 2018, the Company had net operating loss carry forwards of $49,678 that may be available to reduce future years' taxable income through 2038	$ 49,678

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- CONCENTRATIONS (Details Text)	Aug. 31, 2018 USD ($)
Concentrations_ Abstract__ [Abstract]
The Company has only one supplier who is the sole officer and majority shareholder of the Company with outstanding accounts payable of $9,757 (100%) at August 31, 2018.	$ 9,757

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- SUBSEQUENT EVENTS (Details 1)	Aug. 31, 2018 USD ($)
Subsequent Events Abstract_ Abstract_ [Abstract]
Amount and Nature of Beneficial Ownership Aleksandr Zausaev: Common Stock	$ 5,000,000
Percentage: Common Stock	$ 78.86

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- SUBSEQUENT EVENTS (Details 2) - USD ($)	Aug. 31, 2018	Aug. 31, 2017
Subsequent___ Events [Abstract]
Audit fees	$ 9,800	$ 9,000
Tax fees	$ 600	$ 500

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- SUBSEQUENT EVENTS (Details Text) - USD ($)	Aug. 31, 2018	Sep. 12, 2016
Subsequent Events 2018 _ [Abstract]
Zausaev owns 78.86% of the outstanding shares of our common stock	$ 78.86
The percent of class is based on 6,340,000 shares of common stock issued and outstanding as of the date of this annual report.	6,340,000
On September 12, 2016, we issued a total of 5,000,000 shares of restricted common stock to Aleksandr Zausaev, our sole officer and director in consideration of $5,000		$ 5,000
As of August 31, 2018, Mr. Zausaev has advanced to us $32,379.	$ 32,379

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Label	Element	Value
Shares, Outstanding	us-gaap_SharesOutstanding	(164)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ (164)
Retained Earnings [Member]
Shares, Outstanding	us-gaap_SharesOutstanding	(164)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ (164)