{"url_path":"/sec/skfg/10-k/2026/item-7","section_key":"item-7","section_title":"Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-02","source_url":"https://www.sec.gov/Archives/edgar/data/1794942/0001640334-26-000977-index.html","accession_number":"0001640334-26-000977","cik":"0001794942","ticker":"SKFG","issuer_name":"Stark Focus Group, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1794942/0001640334-26-000977-index.html","primary_entity_key":"0001794942","primary_entity_name":"Stark Focus Group, Inc."},"word_count":867,"has_tables":true,"body_markdown":"**Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations**\n\n \n\nThe following discussion should be read in conjunction with our audited financial statements and the related notes for the years ended December 31, 2025 and December 31, 2024 that appear elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include but are not limited to those discussed below and elsewhere in this annual report.\n\n \n\n \n\n4\n\n*Table of Contents*\n\n \n\n**Results of Operations**\n\n \n\nYear Ended December 31, 2025 compared to Year Ended December 31, 2024\n\n \n\nNet Revenues\n\n \n\nWe generated $0 in revenues and incurred $0 in cost of sales for the years ended December 31, 2025 and 2024.\n\n \n\nSelling, General and Administrative Expense\n\n \n\nDuring the year ended December 31, 2025, we incurred $34,659 in general and administrative expenses compared to $43,158 in general and administrative expenses for the year ended December 31, 2024. General and administrative expenses primarily consist of legal, accounting, consulting and other professional service fees.\n\n \n\nNet Loss\n\n \n\nNet loss was $42,124 for the year ended December 31, 2025 compared to net loss of $47,225 for the year ended December 31, 2024.\n\n \n\nCash Used in Operating Activities\n\n \n\nNet cash used in operating activities for the year ended December 31, 2025 was $27,113 compared to net cash used in operating activities of $40,758 for the year ended December 31, 2024.\n\n \n\nCash Provided by Financing Activities\n\n \n\nNet cash provided by financing activities for the year ended December 31, 2025 consisted solely of proceeds from convertible notes totaling $27,113 compared to net cash provided by financing activities of $40,758 consisting solely of convertible notes for the year ended December 31, 2024.\n\n \n\nTotal Liabilities\n\n \n\nThe Company’s total liabilities were $182,812 as of December 31, 2025 compared to total liabilities of $140,688 as of December 31, 2024.\n\n \n\nStockholders’ Deficit\n\n \n\nThe Company’s stockholders’ deficit was $182,812 as of December 31, 2025 compared to stockholders’ deficit of $140,688 as of December 31, 2024.\n\n \n\n**Liquidity and Capital Resources**\n\n \n\n**The Year Ended December 31, 2025 compared to Year Ended December 31, 2024**\n\n \n\nCash and cash equivalents were $0 as of December 31, 2025 and December 31, 2024. Our total current assets were $0 and our total current liabilities were $81,794 as of December 31, 2025. At the end of the year ended December 31, 2024, cash and cash equivalents were $0, total current assets were $0, and total current liabilities were $74,248.\n\n \n\nWe had a working capital deficiency of $81,794 as of December 31, 2025 compared to a working capital deficiency of $74,248 as of December 31, 2024.\n\n \n\nWe received proceeds from convertible notes of $27,113 during the year ended December 31, 2025. For the year ended December 31, 2024, we received proceeds from convertible notes of $40,758.\n\n \n\n**Off-Balance Sheet Arrangements**\n\n \n\nWe do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.\n\n \n\n \n\n5\n\n*Table of Contents*\n\n \n\n**Contractual Obligations and Commitments**\n\n \n\nOn July 18, 2022, the Company announced that it is entering the Drone / Unmanned Aerial Vehicles market with the launch of its new brand, RevoluDrones. On July 20, 2022, the Company purchased 10-month licenses for 4 patents to assist in its drone business.\n\n \n\nAs of December 31, 2025, we do not have any other contractual obligations and commitments.\n\n \n\n**Plan of Operation for the Next 12 Months**\n\n \n\nOur expenses for the twelve-month period beginning from January 1, 2026 are estimated to be approximately $50,000. With our working capital deficit of $81,794 as of December 31, 2025, we will need to raise additional capital to cover our expenses for the twelve-month period beginning from January 1, 2026.\n\n \n\nEstimated Expenses for the Twelve-Month Period Beginning January 1, 2026\n\n \n\nProfessional Fees\n\n \n$20,000\n \n\nMarketing and Business Development\n\n \n\n15,000\n\n \n\nGeneral & Administrative\n\n \n\n15,000\n\n \n\nTotal\n\n \n$50,000\n \n\n \n\nWe will continue to rely on equity sales of our common shares and funding from directors and shareholders in order to continue to fund our business operations. Issuance of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our operations and other activities.\n\n \n\n**Going Concern**\n\n \n\nWe incurred a cumulative net loss of $225,686 during the period from inception to December 31, 2025. We have limited operations, raising substantial doubt about our ability to continue as a going concern. We will seek additional sources of capital through the issuance of debt or equity financing, but there can be no assurance that we will be successful in accomplishing our objectives. Our ability to continue as a going concern is dependent on additional sources of capital and the growth of our business.\n\n \n\n**Critical Accounting Policies**\n\n \n\nOur significant accounting policies are described in the notes to our financial statements for the year ended December 31, 2025, and are included elsewhere in this annual report on Form 10-K."}