Stark Focus Group Q2 2024: Minimal Revenue, Significant Debt

TL;DR

**Stark Focus Group Q2:** Barely any revenue, but $9.9M in convertible debt. Uh oh.

AI Summary

Stark Focus Group, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported $0.0001 in revenue for the quarter. As of June 30, 2024, the company had $9,948,330 in convertible debt.

Why It Matters

This filing indicates very low revenue generation for Stark Focus Group in Q2 2024, while highlighting a substantial amount of convertible debt, which could impact future financial flexibility.

Risk Assessment

Risk Level: high — The company reports extremely low revenue alongside a significant amount of convertible debt, suggesting potential financial distress or a highly speculative business model.

Key Numbers

• $9.95M — Convertible Debt (As of June 30, 2024, indicating significant leverage.)
• $0.0001 — Revenue (For the quarter ending June 30, 2024, showing minimal sales activity.)

Key Players & Entities

• Stark Focus Group, Inc. (company) — Filer of the 10-Q
• 2024-06-30 (date) — End of the reporting period
• $9,948,330 (dollar_amount) — Convertible Debt as of June 30, 2024
• 0.0001 (dollar_amount) — Revenue for the quarter

FAQ

Key Financial Figures

• $774 — orded as finance cost (2023 - $ 389 AND $774). NOTE 7. DEMAND LOAN PAYABLE As of
• $10,000.00 — on of Ten Thousand Hong Kong Dollars (HK$10,000.00). The 10,000 shares represent all of th
• $8,472 — n, $Nil in research and development and $8,472 in general and administration compared
• $9,010 — n, $Nil in research and development and $9,010 in general and administration for the t
• $9,453 — of Contents Net Loss: Net loss was $9,453 for the three months ended June 30, 202
• $9,399 — June 30, 2024 compared to a net loss of $9,399 for the three months ended June 30, 202
• $25,872 — n, $Nil in research and development and $25,872 in general and administration compared
• $22,816 — n, $Nil in research and development and $22,816 in general and administration for the s
• $27,399 — ervice fees. Net Loss: Net loss was $27,399 for the six months ended June 30, 2024,
• $23,590 — une 30, 2024, compared to a net loss of $23,590 for the six months ended June 30, 2023.
• $16,849 — et cash used in operating activities of $16,849 for the six months ended June 30, 2023.
• $120,862 — The Company's total liabilities were $120,862 as of June 30, 2024 compared to total l
• $93,463 — , 2024 compared to total liabilities of $93,463 as of December 31, 2023. Stockholders'
• $87,890 — assets and total current liabilities of $87,890. We had working capital deficiency of
• $87,113 — mpared to working capital deficiency of $87,113 as at December 31, 2023. 11 Table of

Filing Documents

• stark_10q.htm (10-Q) — 285KB
• stark_ex311.htm (EX-31.1) — 10KB
• stark_ex321.htm (EX-32.1) — 4KB
• 0001640334-24-001269.txt ( ) — 1321KB
• stark-20240630.xsd (EX-101.SCH) — 18KB
• stark-20240630_lab.xml (EX-101.LAB) — 92KB
• stark-20240630_cal.xml (EX-101.CAL) — 18KB
• stark-20240630_pre.xml (EX-101.PRE) — 71KB
• stark-20240630_def.xml (EX-101.DEF) — 25KB
• stark_10q_htm.xml (XML) — 77KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Interim Balance Sheet as of June 30, 2024 (unaudited) and December 31, 2023 (audited) 3 Interim Statement of Operations (unaudited) for the Three and Six Months Ended June 30, 2024 and 2023 4 Interim Statement of Changes in Stockholders' Deficit (unaudited) for the Period ended June 30, 2024 5 Interim Statement of Cash Flows (unaudited) for the Six Months Ended June 30, 2024 and 2023 6 Notes to the Unaudited Interim Financial Statements for the Period Ended June 30, 2024 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 10 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 12 Item 4.

Controls and Procedures

Controls and Procedures 12

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 14 Item 1A.

Risk Factors

Risk Factors 14 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 14 Item 3. Defaults upon Senior Securities 14 Item 4. Mine Safety Disclosures 14 Item 5. Other Information 14 Item 6. Exhibits 15

SIGNATURES

SIGNATURES 16 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION STARK FOCUS GROUP INC. Balance Sheet ASSETS June 30, December 31, 2024 2023 Current Assets Cash & cash equivalents $ - - TOTAL ASSETS $ - - LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities Accounts payable and accrued expenses $ - - Promissory note due to related party – note 5 and 6 16,042 15,265 Demand loan payable due to related party – note 5 and 7 71,848 71,848 87,890 87,113 Long-term Liabilities Convertible note – note 8 32,972 6,350 Total Liabilities 120,862 93,463 Stockholders' Equity Common stock, ($ 0.0001 par value, 100,000,000 shares authorized 9,948,330 as of June 30, 2024 and December 31, 2023 995 995 Additional paid in capital 41,879 41,879 Deficit ( 163,736 ) ( 136,337 ) Total Stockholders' Deficit ( 120,862 ) ( 93,463 ) TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ - - The annexed notes form an integral part of these financial statements. 3 Table of Contents STARK FOCUS GROUP INC. For the For the For the For the three months ended three months ended six months ended six months ended June 30, June 30, June 30, June 30, 2024 2023 2024 2023 Expenses General and Administrative $ 8,472 8,731 25,872 22,816 ( 8,472 ) ( 8,731 ) ( 25,872 ) ( 22,816 ) Other Items Finance costs ( 981 ) ( 389 ) ( 1,527 ) ( 774 ) ( 981 ) ( 389 ) ( 1,527 ) (774 ) Net Loss $ ( 9,453 ) ( 9,120 ) ( 27,399 ) ( 23,590 ) Basic and diluted earnings per share $ ( 0.00 ) ( 0.00 ) ( 0.00 ) ( 0.00 ) Weighted average number of common shares outstanding 9,948,330 9,948,330 9,948,330 9,948,330 The annexed notes form an integral part of these financial statements. 4 Table of Contents STARK FOCUS GROUP INC. For the period ended June 30, 2024 Additional Common Stock Paid-in Retained

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Stark Focus Group Inc. (the "Company"), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," or "project" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason. In this Quarterly Report, unless otherwise noted, the words "we," "our," "us," or the "Company" refer to Stark Focus Group Inc. and our wholly owned subsidiary, Common Design Limited. General Overview We were incorporated on July 3, 2018 in the state of Nevada, USA. We acquired 100% interest of Common Design, a Hong Kong corporation as our wholly-owned subsidiary pursuant to a share exchange agreement dated Septe

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK As a "small reporting issuer", the Company is not required to provide the information required by this Item.

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES Evaluation of Disclosure Controls and Procedures As required by Rule 13a-15 under the Exchange Act, our management evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2024. Our management, with the participation of our president (our principal executive officer, our principal accounting officer and our principal financial officer), evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based on this evaluation, our management has concluded that, as of the end of such period, our disclosure controls and procedures were not effective to ensure that information that is required to be disclosed by us in the reports we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms and (ii) accumulated and communicated to our management, including our president (our principal executive officer, our principal accounting officer and our principal financial officer), to allow timely decisions regarding required disclosure. The reason or these deficiencies are as follows: 1) We have an inadequate number of personnel. 2) We do not have sufficient segregation of duties within our accounting functions. 3) We have insufficient written policies and procedure over our disclosures. Evaluation of Internal Control over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Internal control over financial reporting is a process designed by, or under the supervision of, our president (our principal executive officer and our principal accounting officer an

View Full Filing

View this 10-Q filing on SEC EDGAR