0001640334-22-001698.txt : 20220811 0001640334-22-001698.hdr.sgml : 20220811 20220810173236 ACCESSION NUMBER: 0001640334-22-001698 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 39 CONFORMED PERIOD OF REPORT: 20220630 FILED AS OF DATE: 20220811 DATE AS OF CHANGE: 20220810 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Stark Focus Group, Inc. CENTRAL INDEX KEY: 0001794942 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-APPAREL, PIECE GOODS & NOTIONS [5130] IRS NUMBER: 320610316 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-237100 FILM NUMBER: 221152900 BUSINESS ADDRESS: STREET 1: SUITE 3001, 505 6TH STREET SW CITY: CALGARY STATE: A0 ZIP: T2P 1X5 BUSINESS PHONE: (403) 237-8330 MAIL ADDRESS: STREET 1: SUITE 3001, 505 6TH STREET SW CITY: CALGARY STATE: A0 ZIP: T2P 1X5 10-Q 1 stark_10q.htm FORM 10-Q stark_10q.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  

 

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022

 

     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

  

For the transition period from                            to                              

 

Commission file number 333-237100

 

STARK FOCUS GROUP INC.

(Exact name of registrant as specified in its charter)

 

Nevada

(State or other jurisdiction of incorporation or organization)

 

38 S Federal Highway #10-199

Dania Beach, FL 33004

 (Address of principal executive offices, including zip code.)

 

 (352) 562 - 0289

(Telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

None

None

None

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days. Yes ☒      NO ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).Yes ☒ NO ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated Filer

Smaller reporting company

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES NO ☒

 

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:  9,948,330 shares as of August 11, 2022.

 

 

 

 

TABLE OF CONTENTS

 

PART I – FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements

 

 

Unaudited Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021

3

 

Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021

4

 

Unaudited Consolidated Statements of Changes in Stockholders’ Deficit

5

 

Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021

6

 

Notes to The Unaudited Consolidated Financial Statements

7

 

 

 

Item 2.

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

11

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

13

 

 

 

Item 4.

Controls and Procedures

13

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

15

 

 

 

Item 1A.

Risk Factors

15

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

15

 

 

 

Item 3.

Defaults upon Senior Securities

15

 

 

 

Item 4.

Mine Safety Disclosures

15

 

 

 

Item 5.

Other Information

15

 

 

 

Item 6.

Exhibits

15

 

 

 

 

SIGNATURES

16

 

 
2

Table of Contents

 

PART I. FINANCIAL INFORMATION

 

STARK FOCUS GROUP INC.

Balance Sheet

(Unaudited) 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash & Cash Equivalents

 

$-

 

 

$-

 

TOTAL ASSETS

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$100

 

 

$6,063

 

Demand loan payable – Note 7

 

 

24,422

 

 

 

6,067

 

Total Liabilities

 

 

24,522

 

 

 

12,130

 

 

 

 

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

Common stock, ($0.0001 par value, 100,000,000 shares authorized

 

 

 

 

 

 

 

 

9,948,330 as of June 30, 2022 and December 31, 2021

 

 

995

 

 

 

995

 

Additional Paid in Capital

 

 

41,879

 

 

 

41,879

 

Accumulated deficit

 

 

(67,396)

 

 

(55,004)

Total Stockholders’ Deficit

 

 

(24,522)

 

 

(12,130)

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES & STOCKHOLDERS’ DEFICIT

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

The annexed notes form an integral part of these financial statements.

 

 

 

 

 

 

 

 

 

 
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STARK FOCUS GROUP INC.

Statement of Operations

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 For the three months ended

 

 

For the three

 months ended

 

 

 For the six months ended

 

 

For the six months

ended

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, General & Administrative Expenses

 

$9,010

 

 

 

21,582

 

 

 

12,392

 

 

 

35,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(9,010)

 

 

(21,582)

 

 

(12,392)

 

 

(35,836)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

 

-

 

 

 

455

 

 

 

-

 

 

 

(431)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

$(9,010)

 

 

(21,127)

 

 

(12,392)

 

 

(36,267)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share

 

$(0.00)

 

 

(0.01)

 

 

(0.00)

 

 

(0.01)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

9,948,330

 

 

 

10,220,830

 

 

 

9,948,330

 

 

 

10,220,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The annexed notes form an integral part of these financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
4

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STARK FOCUS GROUP INC.

Statement of Changes in Stockholders’ Deficit

For the period ended June 30, 2022 and June 30, 2021

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Accumulated

 

 

 

 

 

Shares

 

 

Amount

($)

 

 

Capital

($)

 

 

Deficit

($)

 

 

Total

($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2020

 

 

10,220,830

 

 

 

1,022

 

 

 

43,026

 

 

 

(99,852)

 

 

(55,804)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(36,267)

 

 

(36,267)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2021

 

 

10,220,830

 

 

 

1,022

 

 

 

43,026

 

 

 

(136,119)

 

 

(92,071)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2021

 

 

9,948,330

 

 

 

995

 

 

 

41,879

 

 

 

(55,004)

 

 

(12,130)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,392)

 

 

(12,392)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, June 30, 2022

 

 

9,948,330

 

 

 

995

 

 

 

41,879

 

 

 

(67,396)

 

 

(24,522)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The annexed notes form an integral part of these financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
5

Table of Contents

 

STARK FOCUS GROUP INC.

Statements of Cash Flows

(Unaudited)

 

 

 

 

 

 

 

 

 

For the

 

 

For the

 

 

 

six months ended

 

 

six months ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$(12,392)

 

 

(36,267)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 

(5,963)

 

 

(4,002)

Net cash used in operating activities

 

 

(18,355)

 

 

(40,269)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Advance from related party

 

 

-

 

 

 

40,721

 

Loan from third party

 

 

18,355

 

 

 

-

 

Net cash provided by financing activities

 

 

18,355

 

 

 

40,721

 

 

 

 

 

 

 

 

 

 

Net increase in cash

 

 

-

 

 

 

452

 

Cash at beginning of period

 

 

-

 

 

 

3,100

 

Cash at end of period

 

$-

 

 

 

3,552

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

 

 

 

 

 

 

 

 

Cash paid during year for :

 

 

 

 

 

 

 

 

Interest

 

$-

 

 

 

-

 

Income Taxes

 

$-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

The annexed notes form an integral part of these financial statements.

 

 

 

 

 

 

 

 

 

 
6

Table of Contents

 

STARK FOCUS GROUP, INC.

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED JUNE 30, 2022

 

NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Stark Focus Group, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on July 3, 2018. The Company was formed to engage in the development and operation of a business engaged in the supply and distribution of niche apparel products to markets worldwide.

On September 27, 2019, Stark Focus Group acquired 100% interest of Common Design Limited of Hong Kong (“Common Design”) as its wholly owned subsidiary. Common Design is a start-up wholesale clothing supplier, established on April 10, 2019 in Hong Kong, specializing in the supply and trading of niche apparel for distribution to markets worldwide. With operating headquarter located in Hong Kong, Common Design designs, sources, and markets a diverse portfolio of dress up, casual and athletic apparel products to its global clients, while maintaining close relationships with its suppliers and manufacturers to ensure competitive pricing and quality management.

On August 9, 2021, the Company entered into a share purchase agreement with 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 (See Note 6).

 

NOTE 2. BASIS OF PRESENTATION

 

The Company’s interim financial statements included herein are prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. While the information presented in the accompanying interim financial statements is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operation and cash flows for the interim periods presented. All adjustments are of a normal recurring nature. Operating results for the period ended June 30, 2022 are not necessarily indicative of the results that can be expected for the year ended December 31, 2022.

 

The Company has a December 31, year-end.

 

Functional and Presentation Currency

The Company’s foreign operations are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The Company uses US Dollars as its functional and presentation currency.

 

NOTE 3. GOING CONCERN

 

These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Corporation and its subsidiaries will be able to meet its obligations and continue its operations for next fiscal year. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Corporation be unable to continue as a going concern.

 

At June 30, 2022, the Company had no cash and there were outstanding liabilities of $24,522. Management does not believe that the company’s current financial position is sufficient to cover the expenses they will incur during the next twelve months. This condition raises substantial doubt about the Company’s ability to continue as a going concern. Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it will be able to raise additional funds through the capital markets.

 

In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. These financial statements do not include any adjustments related to the recovery or classification of assets or the amounts and classifications of liabilities that might be necessary should the company be unable to continue as going concern.

 

 
7

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In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It has also disrupted the normal operations of many businesses, including the Company’s. This outbreak could decrease spending, adversely affect demand for the Company’s product and harm the Company’s business and results of operations. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of operations at this time.

 

NOTE 4. Summary of significant accounting policies

 

a. Use of Estimates and Assumptions

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

 

b. Fair Value of Financial Instruments

 

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2022.

 

Due to the effect of COVID-19, certain financial assets and liabilities may not longer have inputs to justify its fair value level classification in the fair value hierarchy. In these cases, the Company may be required to use different inputs or sources of input to reclassify fair value measurements. However, COVID-19’s current and foreseeable impact on the Company’s fair value measurement is immaterial as the fair values of the Company’s financial instruments were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash, accounts payable, and related party loan payable.

 

c. Earnings per Share

 

ASC No. 260, “Earnings Per Share”, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260.

 

Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company.

 

d. Deconsolidation

 

Once the Company ceases to have a controlling interest in a subsidiary, the Company deconsolidates the accounts of the subsidiary as provided by ASC Topic 810, Consolidation. The aggregate of the fair value of consideration received, the fair value of any retained noncontrolling investment and the carrying amount of the former subsidiary’s assets and liabilities are recognized as a gain or loss on disposition.

 

e. Revenue Recognition

 

In May 2014, the FASB issued guidance on the recognition of Revenue from Contracts with Customers. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. To achieve this core principle, the guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance addresses several areas including transfer of control, contracts with multiple performance obligations, and costs to obtain and fulfill contracts. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs

 

 
8

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f. Discontinued operations

 

Discontinued operations are components of an entity that either have been disposed or abandoned or is classified as held for sale. Additionally, in order to qualify as a discontinued operation, the disposal or abandonment must represent a strategic shift that has or will have, a major effect on an entity’s operations and financial results.

 

g. Income taxes

 

The Company follows the guideline under ASC Topic 740 Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Since the Company is in the developmental stage and has losses, no deferred tax asset or income taxes have been recorded in the financial statements. There are no uncertain tax positions as at December 31, 2021 and 2020.

 

h. Cancellation of common stock

 

In accounting for transaction in its common stock, the Company the guideline under ASC Topic 505 – 30 Equity, Treasury Stock. Under that guidance, when a corporation retires its stock, an excess of repurchase price over par or stated value may be allocated to additional paid-in capital and retained earnings. Alternatively, the excess may be charged entirely to retained earnings. The Company has opted to allocate a portion of the access to paid-in capital and in so doing, is subject to prorating that amount based on the amount of paid-in capital of the same issue.

 

I. Foreign Currency Translation and Balances

 

Transactions in foreign currencies are initially recorded by the Company at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date. Exchange gains or losses arising from translation are recognized in the statement of operation.

 

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.

 

Foreign operations

The assets and liabilities of foreign operations are translated to U.S. dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated into U.S. dollars at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income in the accumulated other comprehensive income (loss).

 

Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income in the cumulative amount of foreign currency translation differences.

 

j. Recently Issued Accounting Guidance

 

The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the company’s financial statements.

 

NOTE 5. RELATED PARTY TRANSACTIONS

 

On September 13, 2021, a majority shareholder of the Company entered into a debt cancellation agreement with the Company. As a result of this agreement, an amount of $122,511 due to related parties has been cancelled and recorded as gain on debt forgiveness.

 

 
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NOTE 6. SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS

 

On August 9, 2021, the Company entered into a share purchase agreement with an individual 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) or (CAD1,610.00). The 10,000 shares represent all of the issued and outstanding shares of Common Design Limited. The transaction was consummated on September 9, 2021.

 

The Company recorded a gain of $1,812 for the disposal of the subsidiary. A breakdown is as follows:

 

Proceeds received

 

 

 

 

$1,277

 

Carrying value of investment

 

 

 

 

 

-

 

Carrying value of accounts of subsidiary at time of disposal

 

 

 

 

 

 

 

Asset

 

$1,773

 

 

 

 

 

Liabilities

 

 

2,308

 

 

 

 

 

Net gain on elimination of net liabilities

 

 

 

 

 

 

535

 

Gain on disposal and deconsolidation

 

 

 

 

 

$1,812

 

 

As a result of the sale, operating results of Common Design Limited has been reclassified as discontinued operations. Prior period results have been reclassed for comparative purposes.

 

NOTE 7. DEMAND LOAN PAYABLE

 

During the year ended December 31, 2021, the Company secured a loan facility from an independent third party. The loan is non-interest bearing and due upon demand. The Company intends to use this loan facility as working capital. As of June 30, 2022, the Company has utilized $24,422 of this loan facility.

 

NOTE 8. SHARE CAPITAL

 

On July 3, 2018, the Company incorporated with a seed capital of $31 (CAD$40) for 200,000 common stock.

 

On December 28, 2018, the Company closed a private placement and issued 1,643,000 common stock for gross proceeds of $37,943 (CAD$49,290).  On August 8, 2019, 330,000 of these common stocks were cancelled due to the withdrawal of subscription, resulting in a reduction of $7,621 (CAD$9,900) in share equity.

 

On February 28, 2019, the Company closed a private placement and issued 707,830 common stock for gross proceeds of $16,108 (CAD$21,235).

 

On September 27, 2019, the Company issued 8,000,000 common stock to acquire 100% interest of Common Design as its wholly owned subsidiary (See Note 6).

 

On December 3, 2021, the Board of Directors approved a plan with certain shareholders of the Company to repurchase an aggregate of 272,500 common shares for $15,871 (CAD$20,000). These shares were subsequently cancelled effective December 8, 2021.

 

As of June 30, 2022, the Company had 9,948,330 shares of common stock issued and outstanding.

 

As of June 30, 2022, the company did not have any warrants or options outstanding.

 

NOTE 9. SUBSEQUENT EVENT

 

In accordance with ASC 855-10 management has performed an evaluation of subsequent events from June 30, 2022 through the date the financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements.

 

 
10

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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 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 are entering into the Drone / Unmanned Aerial Vehicles market with the launch of a new brand, RevoluDrones. We expect 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 June 30, 2022 compared to the three months ended June 30, 2021

 

Revenues and Operating Expenses:

 

We generated $Nil in revenues and incurred $Nil in cost of sales for the three months ended June 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 consolidated and shown on the June 30, 2021 operations statement as loss on discontinued operations.

 

 
11

Table of Contents

 

Selling, General and Administrative Expense:

 

Selling, general and administrative expenses primarily consist of legal, accounting, consulting and other professional service fees. Selling, general and administrative expenses were $9,010 for the three months ended June 30, 2022 compared to $21,582 for the three months ended June 30, 2021.

 

 Net Loss:

 

Net loss was $9,010 for the three months ended June 30, 2022 compared to a net loss of $21,127 for the three months ended June 30, 2021.

 

Six months ended June 30, 2022 compared to the six months ended June 30, 2021

 

Revenues and Operating Expenses:

 

We generated $Nil in revenues and incurred $Nil in cost of sales for the six months ended June 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 consolidated and shown on the June 30, 2021 operations statement as loss on discontinued operations.

 

Selling, General and Administrative Expense:

 

Selling, general and administrative expenses primarily consist of legal, accounting, consulting and other professional service fees. Selling, general and administrative expenses were $12,392 for the six months ended June 30, 2022 compared to $35,836 for the six months ended June 30, 2021.

 

Net Loss:

 

Net loss was $12,392 for the six months ended June 30, 2021 compared to a net loss of $36,267 for the six months ended June 30, 2021.

 

Cash Used in Operating Activities

 

Net cash used in operating activities for the six months ended June 30, 2022 was $18,355 compared to net cash used in operating activities of $40,269 for the six months ended June 30, 2021.

 

Cash Provided by Financing Activities

 

Net cash provided by financing activities for the six months ended June 30, 2022 was $18,355 consisting of loan from third parties compared to net cash provided by financing activities of $40,721 for the six months ended June 30, 2021.

 

Total Assets:

 

The Company’s total assets were $Nil as at June 30, 2022 and also $Nil as at December 31, 2021.

 

Total Liabilities:

 

The Company’s total liabilities were $24,522 as at June 30, 2022 compared to total liabilities of $12,130 as at December 31, 2021.

 

Stockholders’ Deficit:

 

The Company’s shareholders’ deficit was $24,522 as at June 30, 2022 compared to a shareholder’s deficit of $12,130 as at at December 31, 2021.

 

 
12

Table of Contents

 

Liquidity and Capital Resources

 

As at June 30, 2022, we $Nil current assets and total current liabilities of $24,522.

 

We had working capital deficiency of $24,522 as at June 30, 2022 compared to working capital deficiency of $12,130 as at December 31, 2021.

 

Capital Resources

 

We anticipate we will need $50,000 for operations for the next 12 months, which includes $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 June 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 June 30, 2022, we did not have any contractual obligations and commitments.

 

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.

 

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, 2022.

 

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.

 

 
13

Table of Contents

 

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 and principal financial officer), to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of our company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of our company are being made only in accordance with authorizations of management and directors of our company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not provide absolute assurance that a misstatement of our financial statements would be prevented or detected.

 

Further, the evaluation of the effectiveness of internal control over financial reporting was made as of a specific date, and continued effectiveness in future periods is subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

Management has conducted, with the participation of our president (our principal executive officer, our principal accounting officer and our principal financial officer), an evaluation of the effectiveness of our internal control over financial reporting as of June 30, 2022 in accordance with the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control — Integrated Framework. Based on this assessment, management concluded that as of June 30, 2022, our company’s internal control over financial reporting was not effective based on present company activity. Our Company is in the process of adopting specific internal control mechanisms. Future controls, among other things, will include more checks and balances and communication strategies between the management and the board to ensure efficient and effective oversight over company activities as well as more stringent accounting policies to track and update our financial reporting.

 

Changes in Internal Controls over Financial Reporting

 

As of the end of the period covered by this report, there have been no changes in the internal controls over financial reporting during the quarter ended June 30, 2022, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting subsequent to the date of management’s last evaluation.

 

 
14

Table of Contents

 

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

To the best knowledge of the Company’s directors and officers, the Company is currently not a party to any material pending legal proceeding.

 

ITEM 1A: RISK FACTORS

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None

 

ITEM 3: DEFAULTS UPON SENIOR SECURITIES

 

None

 

ITEM 4: MINE SAFETY DISCLOSURES

 

Not applicable

 

ITEM 5. OTHER INFORMATION

 

None

 

ITEM 6. EXHIBITS

 

The following exhibits are included with this quarterly filing:

 

Exhibit No.

 

Description

 

 

 

31.1

 

Sec. 302 Certification of Chief Executive Officer/Chief Financial Officer

32.1

 

Sec. 906 Certification of Chief Executive Officer/Chief Financial Officer

101

 

Interactive data files pursuant to Rule 405 of Regulation S-T

 

 
15

Table of Contents

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

Stark Focus Group Inc.

Registrant

    
Date: August 11, 2022  By:/s/ Cao Zhi Fen

 

 

Cao Zhi Fen 
 Chief Executive Officer and Chief Financial Officer 
  Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer  

                                                                                                                

 
16

 

EX-31.1 2 stark_ex311.htm CERTIFICATION stark_ex311.htm

 

EXHIBIT 31.1

 

CERTIFICATION

 

I, Cao Zhi Fen, certify that:

 

1.

I have reviewed this report on Form 10-Q.

 

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(s) 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 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(s) 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 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.

 

Date: August 11, 2022  
/s/ Cao Zhi Fen
Cao Zhi Fen  
Chief Executive Officer/Chief Financial Officer  
Principal Executive Officer,  

Principal Financial Officer and Principal Accounting Officer

 

 

EX-32.1 3 stark_ex321.htm CERTIFICATION stark_ex321.htm

 

EXHIBIT 32.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Stark Focus Group Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mario Todd, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

 

 

(1)

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 result of operations of the Company.

 

IN WITNESS WHEREOF, the undersigned has executed this certification as of the 11th day of August , 2022.

 

/s/ Cao Zhi Fen
Cao Zhi Fen  
Chief Executive Officer/Chief Financial Officer  
Principal Executive Officer,  

Principal Financial Officer and Principal Accounting Officer

 

 

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NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS

NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS

 

Stark Focus Group, Inc. (the “Company”) was incorporated under the laws of the State of Nevada on July 3, 2018. The Company was formed to engage in the development and operation of a business engaged in the supply and distribution of niche apparel products to markets worldwide.

On September 27, 2019, Stark Focus Group acquired 100% interest of Common Design Limited of Hong Kong (“Common Design”) as its wholly owned subsidiary. Common Design is a start-up wholesale clothing supplier, established on April 10, 2019 in Hong Kong, specializing in the supply and trading of niche apparel for distribution to markets worldwide. With operating headquarter located in Hong Kong, Common Design designs, sources, and markets a diverse portfolio of dress up, casual and athletic apparel products to its global clients, while maintaining close relationships with its suppliers and manufacturers to ensure competitive pricing and quality management.

On August 9, 2021, the Company entered into a share purchase agreement with 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 (See Note 6).

XML 16 R8.htm IDEA: XBRL DOCUMENT v3.22.2
BASIS OF PRESENTATION
6 Months Ended
Jun. 30, 2022
BASIS OF PRESENTATION  
NOTE 2. BASIS OF PRESENTATION

NOTE 2. BASIS OF PRESENTATION

 

The Company’s interim financial statements included herein are prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. While the information presented in the accompanying interim financial statements is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operation and cash flows for the interim periods presented. All adjustments are of a normal recurring nature. Operating results for the period ended June 30, 2022 are not necessarily indicative of the results that can be expected for the year ended December 31, 2022.

 

The Company has a December 31, year-end.

 

Functional and Presentation Currency

The Company’s foreign operations are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The Company uses US Dollars as its functional and presentation currency.

XML 17 R9.htm IDEA: XBRL DOCUMENT v3.22.2
GOING CONCERN
6 Months Ended
Jun. 30, 2022
GOING CONCERN  
NOTE 3. GOING CONCERN

NOTE 3. GOING CONCERN

 

These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Corporation and its subsidiaries will be able to meet its obligations and continue its operations for next fiscal year. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Corporation be unable to continue as a going concern.

 

At June 30, 2022, the Company had no cash and there were outstanding liabilities of $24,522. Management does not believe that the company’s current financial position is sufficient to cover the expenses they will incur during the next twelve months. This condition raises substantial doubt about the Company’s ability to continue as a going concern. Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it will be able to raise additional funds through the capital markets.

 

In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. These financial statements do not include any adjustments related to the recovery or classification of assets or the amounts and classifications of liabilities that might be necessary should the company be unable to continue as going concern.

In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, and any related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, potentially leading to an economic downturn. It has also disrupted the normal operations of many businesses, including the Company’s. This outbreak could decrease spending, adversely affect demand for the Company’s product and harm the Company’s business and results of operations. It is not possible for the Company to predict the duration or magnitude of the adverse results of the outbreak and its effects on the Company’s business or results of operations at this time.

XML 18 R10.htm IDEA: XBRL DOCUMENT v3.22.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
NOTE 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 4. Summary of significant accounting policies

 

a. Use of Estimates and Assumptions

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

 

b. Fair Value of Financial Instruments

 

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2022.

 

Due to the effect of COVID-19, certain financial assets and liabilities may not longer have inputs to justify its fair value level classification in the fair value hierarchy. In these cases, the Company may be required to use different inputs or sources of input to reclassify fair value measurements. However, COVID-19’s current and foreseeable impact on the Company’s fair value measurement is immaterial as the fair values of the Company’s financial instruments were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash, accounts payable, and related party loan payable.

 

c. Earnings per Share

 

ASC No. 260, “Earnings Per Share”, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260.

 

Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company.

 

d. Deconsolidation

 

Once the Company ceases to have a controlling interest in a subsidiary, the Company deconsolidates the accounts of the subsidiary as provided by ASC Topic 810, Consolidation. The aggregate of the fair value of consideration received, the fair value of any retained noncontrolling investment and the carrying amount of the former subsidiary’s assets and liabilities are recognized as a gain or loss on disposition.

 

e. Revenue Recognition

 

In May 2014, the FASB issued guidance on the recognition of Revenue from Contracts with Customers. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. To achieve this core principle, the guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance addresses several areas including transfer of control, contracts with multiple performance obligations, and costs to obtain and fulfill contracts. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs

f. Discontinued operations

 

Discontinued operations are components of an entity that either have been disposed or abandoned or is classified as held for sale. Additionally, in order to qualify as a discontinued operation, the disposal or abandonment must represent a strategic shift that has or will have, a major effect on an entity’s operations and financial results.

 

g. Income taxes

 

The Company follows the guideline under ASC Topic 740 Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Since the Company is in the developmental stage and has losses, no deferred tax asset or income taxes have been recorded in the financial statements. There are no uncertain tax positions as at December 31, 2021 and 2020.

 

h. Cancellation of common stock

 

In accounting for transaction in its common stock, the Company the guideline under ASC Topic 505 – 30 Equity, Treasury Stock. Under that guidance, when a corporation retires its stock, an excess of repurchase price over par or stated value may be allocated to additional paid-in capital and retained earnings. Alternatively, the excess may be charged entirely to retained earnings. The Company has opted to allocate a portion of the access to paid-in capital and in so doing, is subject to prorating that amount based on the amount of paid-in capital of the same issue.

 

I. Foreign Currency Translation and Balances

 

Transactions in foreign currencies are initially recorded by the Company at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date. Exchange gains or losses arising from translation are recognized in the statement of operation.

 

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.

 

Foreign operations

The assets and liabilities of foreign operations are translated to U.S. dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated into U.S. dollars at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income in the accumulated other comprehensive income (loss).

 

Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income in the cumulative amount of foreign currency translation differences.

 

j. Recently Issued Accounting Guidance

 

The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the company’s financial statements.

XML 19 R11.htm IDEA: XBRL DOCUMENT v3.22.2
RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2022
RELATED PARTY TRANSACTIONS  
NOTE 5. RELATED PARTY TRANSACTIONS

NOTE 5. RELATED PARTY TRANSACTIONS

 

On September 13, 2021, a majority shareholder of the Company entered into a debt cancellation agreement with the Company. As a result of this agreement, an amount of $122,511 due to related parties has been cancelled and recorded as gain on debt forgiveness.

XML 20 R12.htm IDEA: XBRL DOCUMENT v3.22.2
SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS
6 Months Ended
Jun. 30, 2022
SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS  
NOTE 6. SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS

NOTE 6. SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS

 

On August 9, 2021, the Company entered into a share purchase agreement with an individual 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) or (CAD1,610.00). The 10,000 shares represent all of the issued and outstanding shares of Common Design Limited. The transaction was consummated on September 9, 2021.

 

The Company recorded a gain of $1,812 for the disposal of the subsidiary. A breakdown is as follows:

 

Proceeds received

 

 

 

 

$1,277

 

Carrying value of investment

 

 

 

 

 

-

 

Carrying value of accounts of subsidiary at time of disposal

 

 

 

 

 

 

 

Asset

 

$1,773

 

 

 

 

 

Liabilities

 

 

2,308

 

 

 

 

 

Net gain on elimination of net liabilities

 

 

 

 

 

 

535

 

Gain on disposal and deconsolidation

 

 

 

 

 

$1,812

 

 

As a result of the sale, operating results of Common Design Limited has been reclassified as discontinued operations. Prior period results have been reclassed for comparative purposes.

XML 21 R13.htm IDEA: XBRL DOCUMENT v3.22.2
DEMAND LOAN PAYABLE
6 Months Ended
Jun. 30, 2022
DEMAND LOAN PAYABLE  
NOTE 7. DEMAND LOAN PAYABLE

NOTE 7. DEMAND LOAN PAYABLE

 

During the year ended December 31, 2021, the Company secured a loan facility from an independent third party. The loan is non-interest bearing and due upon demand. The Company intends to use this loan facility as working capital. As of June 30, 2022, the Company has utilized $24,422 of this loan facility.

XML 22 R14.htm IDEA: XBRL DOCUMENT v3.22.2
SHARE CAPITAL
6 Months Ended
Jun. 30, 2022
SHARE CAPITAL  
NOTE 8. SHARE CAPITAL

NOTE 8. SHARE CAPITAL

 

On July 3, 2018, the Company incorporated with a seed capital of $31 (CAD$40) for 200,000 common stock.

 

On December 28, 2018, the Company closed a private placement and issued 1,643,000 common stock for gross proceeds of $37,943 (CAD$49,290).  On August 8, 2019, 330,000 of these common stocks were cancelled due to the withdrawal of subscription, resulting in a reduction of $7,621 (CAD$9,900) in share equity.

 

On February 28, 2019, the Company closed a private placement and issued 707,830 common stock for gross proceeds of $16,108 (CAD$21,235).

 

On September 27, 2019, the Company issued 8,000,000 common stock to acquire 100% interest of Common Design as its wholly owned subsidiary (See Note 6).

 

On December 3, 2021, the Board of Directors approved a plan with certain shareholders of the Company to repurchase an aggregate of 272,500 common shares for $15,871 (CAD$20,000). These shares were subsequently cancelled effective December 8, 2021.

 

As of June 30, 2022, the Company had 9,948,330 shares of common stock issued and outstanding.

 

As of June 30, 2022, the company did not have any warrants or options outstanding.

XML 23 R15.htm IDEA: XBRL DOCUMENT v3.22.2
SUBSEQUENT EVENT
6 Months Ended
Jun. 30, 2022
SUBSEQUENT EVENT  
NOTE 9. SUBSEQUENT EVENT

NOTE 9. SUBSEQUENT EVENT

 

In accordance with ASC 855-10 management has performed an evaluation of subsequent events from June 30, 2022 through the date the financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements.

XML 24 R16.htm IDEA: XBRL DOCUMENT v3.22.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
6 Months Ended
Jun. 30, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Use of Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Due to the limited level of operations, the Company has not had to make material assumptions or estimates other than the assumption that the Company is a going concern.

Fair Value of Financial Instruments

ASC 825, “Disclosures about Fair Value of Financial Instruments”, requires disclosure of fair value information about financial instruments. ASC 820, “Fair Value Measurements” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2022.

 

Due to the effect of COVID-19, certain financial assets and liabilities may not longer have inputs to justify its fair value level classification in the fair value hierarchy. In these cases, the Company may be required to use different inputs or sources of input to reclassify fair value measurements. However, COVID-19’s current and foreseeable impact on the Company’s fair value measurement is immaterial as the fair values of the Company’s financial instruments were assumed to approximate carrying values of on-balance-sheet financial instruments since they are short term in nature. These financial instruments include cash, accounts payable, and related party loan payable.

Earnings per Share

ASC No. 260, “Earnings Per Share”, specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260.

 

Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted earnings per share are the same as basic earnings per share due to the lack of dilutive items in the Company.

Deconsolidation

Once the Company ceases to have a controlling interest in a subsidiary, the Company deconsolidates the accounts of the subsidiary as provided by ASC Topic 810, Consolidation. The aggregate of the fair value of consideration received, the fair value of any retained noncontrolling investment and the carrying amount of the former subsidiary’s assets and liabilities are recognized as a gain or loss on disposition.

Revenue Recognition

In May 2014, the FASB issued guidance on the recognition of Revenue from Contracts with Customers. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration which the company expects to receive in exchange for those goods or services. To achieve this core principle, the guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance addresses several areas including transfer of control, contracts with multiple performance obligations, and costs to obtain and fulfill contracts. The guidance also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs

Discontinued operations

Discontinued operations are components of an entity that either have been disposed or abandoned or is classified as held for sale. Additionally, in order to qualify as a discontinued operation, the disposal or abandonment must represent a strategic shift that has or will have, a major effect on an entity’s operations and financial results.

Income Taxes

The Company follows the guideline under ASC Topic 740 Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Since the Company is in the developmental stage and has losses, no deferred tax asset or income taxes have been recorded in the financial statements. There are no uncertain tax positions as at December 31, 2021 and 2020.

Cancellation of common stock

In accounting for transaction in its common stock, the Company the guideline under ASC Topic 505 – 30 Equity, Treasury Stock. Under that guidance, when a corporation retires its stock, an excess of repurchase price over par or stated value may be allocated to additional paid-in capital and retained earnings. Alternatively, the excess may be charged entirely to retained earnings. The Company has opted to allocate a portion of the access to paid-in capital and in so doing, is subject to prorating that amount based on the amount of paid-in capital of the same issue.

Foreign Currency Translation and Balances

Transactions in foreign currencies are initially recorded by the Company at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchange at the reporting date. Exchange gains or losses arising from translation are recognized in the statement of operation.

 

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined.

 

Foreign operations

The assets and liabilities of foreign operations are translated to U.S. dollars at exchange rates at the reporting date. The income and expenses of foreign operations are translated into U.S. dollars at exchange rates at the dates of the transactions. Foreign currency differences are recognized in other comprehensive income in the accumulated other comprehensive income (loss).

 

Foreign exchange gains or losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future and which in substance is considered to form part of the net investment in the foreign operation, are recognized in other comprehensive income in the cumulative amount of foreign currency translation differences.

Recently Issued Accounting Guidance

The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the company’s financial statements.

XML 25 R17.htm IDEA: XBRL DOCUMENT v3.22.2
SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS (Tables)
6 Months Ended
Jun. 30, 2022
SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS (Tables)  
Schedule of Sale of Subsidiary

Proceeds received

 

 

 

 

$1,277

 

Carrying value of investment

 

 

 

 

 

-

 

Carrying value of accounts of subsidiary at time of disposal

 

 

 

 

 

 

 

Asset

 

$1,773

 

 

 

 

 

Liabilities

 

 

2,308

 

 

 

 

 

Net gain on elimination of net liabilities

 

 

 

 

 

 

535

 

Gain on disposal and deconsolidation

 

 

 

 

 

$1,812

 

XML 26 R18.htm IDEA: XBRL DOCUMENT v3.22.2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - HKD ($)
Aug. 09, 2021
Sep. 27, 2019
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative)    
Equity method investment ownership   100.00%
Shares issued 10,000  
Share issued under stock purchase agreement 10,000  
Proceeds from stock purchase agreement $ 10,000  
Share ouststanding 10,000  
XML 27 R19.htm IDEA: XBRL DOCUMENT v3.22.2
GOING CONCERN (Details Narrative) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
GOING CONCERN    
Cash $ 0  
Outstanding liabilities $ 24,522 $ 12,130
XML 28 R20.htm IDEA: XBRL DOCUMENT v3.22.2
RELATED PARTY TRANSACTIONS (Details Narrative)
Sep. 13, 2021
USD ($)
RELATED PARTY TRANSACTIONS  
Due to related parties $ 122,511
XML 29 R21.htm IDEA: XBRL DOCUMENT v3.22.2
SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS (Details) - USD ($)
Aug. 09, 2021
Aug. 09, 2021
Jun. 30, 2022
Dec. 31, 2021
Assets     $ 0 $ 0
Liabilities     $ 24,522 $ 12,130
Gain on disposal and deconsolidation   $ 1,812    
Sale of Subsidiary [Member]        
Proceeds received $ 1,277      
Carrying value of investment 0 0    
Assets 1,773 1,773    
Liabilities 2,308 $ 2,308    
Net gain on elimination of net liabilities 535      
Gain on disposal and deconsolidation $ 1,812      
XML 30 R22.htm IDEA: XBRL DOCUMENT v3.22.2
SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS (Details Narrative) - Aug. 09, 2021
HKD ($)
shares
CAD ($)
shares
USD ($)
shares
Shares owned subsidiary | shares 10,000 10,000 10,000
Gain on disposal of subsidiary | $     $ 1,812
Shares outstanding | shares 10,000 10,000 10,000
Share purchases Agreements [Member]      
Shares outstanding | shares 10,000 10,000 10,000
Proceed from consideration hong kong dollar | $ $ 10,000    
Proceed from consideration CAD | $   $ 1,610  
XML 31 R23.htm IDEA: XBRL DOCUMENT v3.22.2
DEMAND LOAN PAYABLE (Details Narrative)
Jun. 30, 2022
USD ($)
DEMAND LOAN PAYABLE  
Loan facility utilized $ 24,422
XML 32 R24.htm IDEA: XBRL DOCUMENT v3.22.2
SHARE CAPITAL (Details Narrative)
1 Months Ended
Dec. 03, 2021
USD ($)
shares
Dec. 03, 2021
CAD ($)
shares
Jul. 03, 2018
USD ($)
shares
Jul. 03, 2018
CAD ($)
shares
Aug. 08, 2019
USD ($)
shares
Aug. 08, 2019
CAD ($)
shares
Feb. 28, 2019
USD ($)
shares
Feb. 28, 2019
CAD ($)
shares
Dec. 28, 2018
USD ($)
shares
Dec. 28, 2018
CAD ($)
shares
Jun. 30, 2022
shares
Dec. 31, 2021
shares
Sep. 27, 2019
shares
Common stock shares issued | shares     200,000 200,000             9,948,330 9,948,330 8,000,000
Repurchase of common stock share | shares 272,500 272,500                      
Repurchase of common stock value CAD   $ 20,000                      
Repurchase of common stock value $ 15,871                        
Proceeds from issuance of common stock CAD       $ 40                  
Proceeds from issuance of common stock     $ 31                    
Equity method investment ownership                         100.00%
Common stock shares outstanding | shares                     9,948,330 9,948,330  
Private Placement [Member]                          
Common stock shares issued | shares             707,830 707,830 1,643,000 1,643,000      
Common stock shares cancelled | shares         330,000 330,000              
Common stock shares reduction CAD           $ 9,900              
Common stock shares reduction         $ 7,621                
Gross proceeds from issuance of private placement             $ 16,108   $ 37,943        
Gross proceeds from issuance of private placement CAD               $ 21,235   $ 49,290      
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