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 September 20, 2019.
Common Design was a start-up wholesale clothing supplier, established on April
10, 2019, specializing in the supply and trading of niche apparel for
distribution to markets worldwide. With operating headquarters located in Hong
Kong, Common Design was primarily focused on sourcing and marketing a diverse
portfolio of dress up, casual and athletic apparel products to its global
clients.
On August 9, 2021 we entered into a share purchase agreement wherein the Company
is to sell its 10,000 shares of its wholly owned subsidiary, Common Design
Limited of Hong Kong, for a consideration of Ten Thousand Hong Kong Dollars
(HK$10,000.00). The 10,000 shares represent all of the issued and outstanding
shares of Common Design Limited. The transaction was consummated on September 9,
2021.
On July 18, 2022, we announced that we were entering into the Drone / Unmanned
Aerial Vehicles market with the launch of a new brand, RevoluDrones. We expected
our initial range of drone models to be ready for commercial release in an
estimated timeframe of 4 to 6 months and be made available to consumers directly
via our website (www.Revoludrones.com) and selected retail channels.
Results of Operations
Three months ended September 30, 2022, compared to the three months ended
September 30 , 2021:
Revenues and Sale Expenses:
We generated $Nil in revenues and incurred $Nil in cost of sales for the three
months ended September 30, 2022 and 2021. During the quarter ended September 30,
2021, we sold our 100% interest of our wholly subsidiary, Common Design Limited,
and the operations of Common Design have been shown on the March 31, 2021
operations statement as loss on discontinued operations.
Other Operating and General and Administrative Expenses:
During the three months ended September 30, 2022, we incurred expenses of $2,691
in advertising and promotion, $9,500 in research and development and $7,614 in
general and administration compared to $Nil in advertising and promotion, $Nil
in research and development and $11,047 in general and administration for the
three months ended September 30, 2021. General and administrative expenses
primarily consist of legal, accounting, consulting and other professional
service fees.
Net Loss:
Net loss was $20,117 for the three months ended September 30, 2022 compared to a
net loss of $10,146 for the three months ended September 30, 2021.
11
Table of Contents
Nine months ended September 30, 2022 compared to the nine months ended September
30, 2021
Revenues and Sale Expenses:
We generated $Nil in revenues and incurred $Nil in cost of sales for the nine
months ended September 30, 2022 and 2021. During the quarter ended September 30,
2021, we sold our 100% interest of our wholly subsidiary, Common Design Limited,
and the operations of Common Design have been shown on the March 31, 2021
operations statement as loss on discontinued operations.
Other Operating and General and Administrative Expenses:
During the nine months ended September 30, 2022, we incurred expenses of $2,691
in advertising and promotion, $9,500 in research and development and $20,006 in
general and administration compared to $Nil in advertising and promotion, $Nil
in research and development and $46,885 in general and administration for the
nine months ended September 30, 2021. General and administrative expenses
primarily consist of legal, accounting, consulting and other professional
service fees.
Net Loss:
Net loss was $32,509 for the nine months ended September 30, 2022, compared to a
net loss of $45,555 for the nine months ended September 30, 2021.
Cash Used in Operating Activities
Net cash used in operating activities for the nine months ended September 30,
2022 was $35,149 compared to net cash used in operating activities of $58,424
for the nine months ended September 30, 2021.
Cash Provided by Financing Activities
Net cash provided by financing activities for the nine months ended September
30, 2022, was $35,149 consisting of loan from third parties compared to net cash
provided by financing activities of $69,964 consisting of advance from related
party for the nine months ended September 30, 2021.
Total Assets:
The Company's total assets were $9,889 as at September 30, 2022 and $Nil as at
December 31, 2021.
Total Liabilities:
The Company's total liabilities were $54,528 as at September 30, 2022 compared
to total liabilities of $12,130 as at December 31, 2021.
Stockholders' Deficit:
The Company's shareholders' deficit was $44,639 as at September 30, 2022
compared to a shareholder's deficit of $12,130 as at at as as at December 31,
2021.
Liquidity and Capital Resources
As at September 30, 2022, we had $9,889 in current assets and total current
liabilities of $54,528.
We had working capital deficiency of $44,639 as at September 30, 2022 compared
to working capital deficiency of $12,130 as at December 31, 2021.
12
Table of Contents
Capital Resources
We anticipate we will need $75,000 for operations for the next 12 months, which
includes $5,000 for advertising and promotion; $20,000 for research and
development; $12,500 for selling, general and administrative purposes; $22,500
for professional fees, including legal and audit fees; $5,000 for consulting
fees; and $10,000 for working capital. Based on the foregoing, our cash on hand
will not be adequate to satisfy our ongoing cash requirements.
Future Financings
We anticipate we will need additional financing to fund our business operations
in the future and will primarily rely on equity sales of our common stock and
loans from related parties. We presently do not have any arrangements or
commitments for additional financing in place. There is no assurance that we
will achieve additional financing by either sales of our equity securities or by
debt financing. In addition, issuances of additional shares will result in
dilution to our existing stockholders.
Off-Balance Sheet Arrangements
As of September 30, 2022, we did not have any off-balance sheet arrangements
that have or are reasonably likely to have a current or future effect on our
financial conditions, changes in financial conditions, revenues or expenses,
results of operations, liquidity capital expenditures, or capital resources that
is material to investors.
Contractual Obligations and Commitments
As of September 30, 2022, we did not have any contractual obligations and
commitments.
© Edgar Online, source Glimpses