10-Q

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 SEPTEMBER 30, 2021
☐	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:  10,220,830 shares as of November 8, 2021.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets as of September 30, 2021 (unaudited) and December 31, 2020 (audited)	3
	Unaudited Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020	4
	Unaudited Consolidated Statements of Changes in Stockholders’ Equity	5
	Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended, September 30, 2021 and 2020	6
	Notes to The Unaudited Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4.	Controls and Procedures	14
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	16
Item 1A.	Risk Factors	16
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 3.	Defaults upon Senior Securities	16
Item 4.	Mine Safety Disclosures	16
Item 5.	Other Information	16
Item 6.	Exhibits	17
SIGNATURES		18

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PART I. FINANCIAL INFORMATION

STARK FOCUS GROUP INC.
Balance Sheet
ASSETS
	September 30,			December 31,
	2021			2020
	(Unaudited)
Current Assets
Cash & Cash Equivalents	$	15,917		$	3,100
Prepaid Expenses		-			-
TOTAL ASSETS	$	15,917		$	3,100
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses	$	4,765		$	15,822
Due to related party		-			43,082
Total Liabilities		4,765			58,904
Stockholders' Equity
Common stock, ($0.0001 par value, 100,000,000 shares authorized 10,220,830 as of September 30, 2021 and December 31, 2020		1,022			1,022
Additional Paid in Capital		155,537			43,026
Retained Earnings		(145,407	)		(99,852	)
Total Stockholders' Equity		11,152			(55,804	)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$	15,917		$	3,100
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			For the			For the			For the
	three months ended			three months ended			nine months ended			nine months ended
	September 30,			September 30,			September 30,			September 30,
	2021			2020			2021			2020
Selling, General & Administrative Expenses		11,047			10,515			46,885			57,794
Income / (loss) from operations		(11,047	)		(10,515	)		(46,885	)		(57,794	)
Gain on disposal of subsidiary		1,812			-			1,812			-
Income (loss) from discontinued operations		(911	)		3,526			(482	)		2,514
Net Income/ (Loss)	$	(10,146	)		(6,989	)		(45,555	)		(55,280	)
Basic and diluted earnings per share	$	(0.00	)		(0.00	)		(0.00	)		(0.05	)
Weighted average number of common shares outstanding		10,220,830			10,220,830			10,220,830			1,022,830
The annexed notes form an integral part of these financial statements.

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STARK FOCUS GROUP INC.
Statement of Changes in Stockholders' Equity
For the period ended September 30, 2020
(Unaudited)
					Additional
	Common Stock				Paid-in		Retained
	Shares		Amount		Capital		Earnings			Total
Balance, December 31, 2019		10,220,830	$	1,022	$	43,026	$	(8,000	)	$	36,048
Net profit (loss)		-		-		-		(91,852	)		(91,852	)
Balance, December 31, 2020		10,220,830	$	1,022	$	43,026	$	(99,852	)	$	(55,804	)
Debt cancellation by a related party		-		-		112,511		-			-
Net profit (loss)		-		-		-		(45,555	)		(45,555	)
Balance, September 30, 2021		10,220,830	$	1,022	$	155,537	$	(145,407	)	$	(101,359	)
The annexed notes form an integral part of these financial statements.

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STARK FOCUS GROUP INC.
Statements of Cash Flows
(Unaudited)
	For the			For the
	nine months ended			nine months ended
	September 30,			September 30,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(45,555	)		(55,280	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Debt cancellation by related party		112,511			-
Changes in operating assets and liabilities:
Prepaid expenses		-			7,522
Accounts payable and accrued expenses		(11,057	)		5,646
Net cash provided by (used in) operating activities		55,899			(42,112	)
CASH FLOWS FROM FINANCING ACTIVITIES
Advance from related party		(43,082	)		25,667
Net cash provided by (used in) financing activities		(43,082	)		25,667
Net increase (decrease) in cash		12,817			(16,445	)
Cash at beginning of period		3,100			30,320
Cash at end of period	$	15,917			13,875
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.

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STARK FOCUS GROUP, INC.

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the period ended June 30, 2021

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 5).

NOTE 2. BASIS OF PRESENTATION

The Company’s interim consolidated 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. These condensed interim consolidated financial statements include the Company’s wholly owned subsidiary, Common Design Limited., and 100 percent of its assets, liabilities and net income or loss. All inter-company accounts and transactions have been eliminated.

While the information presented in the accompanying interim consolidated 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 September 30, 2021 are not necessarily indicative of the results that can be expected for the year ended December 31, 2021.

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.

As of September, 2021, the Company has cash of $15,917 denominated in Canadian Dollars which was translated at the period-end spot rate of 1.2741 CAD to 1 USD.

NOTE 3. GOING CONCERN

These condensed consolidated interim 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 condensed consolidated interim 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.

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At September 30, 2021, the Company had $15,917 in cash and there were outstanding liabilities of $4,765. Management does not believe that the company’s current cash position is sufficient to cover the expenses they will incur during the next twelve months.

In addition, the recent outbreak of the novel coronavirus, commonly referred to as "COVID-19", in China and throughout the world is expected to adversely affect the economic conditions throughout the world, and could adversely affect our business, results of operations and financial condition.

These conditions raise 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.

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 September 30, 2021.

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. Cash and Equivalents

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

e. Income Taxes

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

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

f. Revenue Recognition

Management uses the 5 steps framework of ASC 606 to recognize revenue, as follows:

1.	Identify contract with customer
	a.	Approval (in writing, orally, or in accordance with other customary business practices) and commitment of the parties;
	b.	Identification of the rights of the parties;
	c.	Identification of the payment terms;
	d.	Contract has commercial substance; and
	e.	Probable that the entity will collect the consideration to which it will be entitled in exchange for the good or service that will be transferred to the customer.
2.	Identify performance obligations
	a.	At contract inception, management assesses the goods or services promised in a contract with a customer and identifies as a performance obligation each promise to transfer to the customer either: a) A good or service (or a bundle of goods or services) that is distinct b) A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer
3.	Determined expected transaction price
	a.	The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer
4.	Allocate to performance obligations
	a.	Once the separate performance obligations are identified and the transaction price has been determined, management allocates the transaction price to the performance obligations in proportion to their standalone selling prices
5.	Recognize revenue upon transfer of control over goods/services
	a.	management recognizes revenue only when it satisfies a performance obligation by transferring a promised good or service to a customer. A good or service is considered to be transferred when the customer obtains control.
	b.	The standard defines control as an entity’s ability to direct the use of, and obtain substantially all of the remaining benefits from, an asset.
	c.	Control is assessed primarily from the customer’s perspective.

g. Cost of Sales

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses.

h. Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset.

Property – 40 years

Office Equipment – 5 years

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.

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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, the amount of $122,511 due to related parties has been cancelled and recorded as paid-in capital.

As of September 30, 2021, amount outstanding to related parties was $nil.

NOTE 6. SALE OF SUBSIDIARY

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 broken down as follows:

Common Design Limited	$		$
Proceeds from sale of subsidiary				1,277
Less:
Total Assets		1,773
Total Liabilities		2,308
Net Liabilities				(535	)
Gain on disposal of subsidiary				1,812

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

NOTE 7. 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 4).

As of September 30, 2021, the Company had 10,220,830 shares of common stock issued and outstanding.

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NOTE 8. WARRANTS AND OPTIONS

There are no warrants or options outstanding to acquire any additional shares of common.

NOTE 9. COMMITMENTS AND CONTINGENCIES

The Company has no commitments and contingencies liabilities to be disclosed.

NOTE 10. CONCENTRATIONS

Initial sales are concentrated with one client. Sales are made without collateral and the credit-related losses are insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts (if any).

NOTE 11. LEGAL MATTERS

The Company has no known legal issues pending.

NOTE 12. SUBSEQUENT EVENT

In accordance with ASC 855-10 management has performed an evaluation of subsequent events from September 30, 2021 through November 8, 2021, the financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements.

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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 August 9, 2021, we entered into a share purchase agreement with to sell our 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.

Results of Operations

Three months ended September 30, 2021 compared to the three months ended September 30, 2020

Revenues and Operating Expenses:

We generated $Nil in revenues and incurred $Nil in cost of sales for the three months ended September 30, 2021 and 2020 as we sold our 100% interest of our wholly subsidiary, Common Design Limited, during the quarter ended September 30, 2021, and thus the operations of Common Design Limited were excluded from those of the company. The sale transaction of Common Design Limited was completed on September 9, 2021.

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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 $11,047 for the three months ended September 30, 2021 compared to $10,515 for the three months ended September 30, 2020.

Net Loss:

Net loss was $10,146 for the three months ended September 30, 2021 compared to a net loss of $6,989 for the three months ended September 30, 2020.

Nine months ended September 30, 2021 compared to the nine months ended September 30, 2020

Revenues and Operating Expenses:

We generated $Nil in revenues and incurred $Nil in cost of sales for the nine months ended September 30, 2021 and 2020 as we sold our 100% interest of our wholly subsidiary, Common Design Limited, during the quarter ended September 30, 2021, and thus the operations of Common Design Limited were excluded from those of the company.

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 $46,885 for the nine months ended September 30, 2021 compared to $57,794 for the nine months ended September 30, 2020.

Net Loss:

Net loss was $45,555 for the nine months ended September 30, 2021 compared to a net loss of $55,280 for the nine months ended September 30, 2020.

Cash Used in Operating Activities

Net cash provided by operating activities for the nine months ended September 30, 2021 was $55,899 compared to net cash used in operating activities of $42,112 for the nine months ended September 30, 2020. The amount of debt cancellation by related party was $112,511 during the nine months ended September 30, 2021.

Cash Provided by Financing Activities

Net cash used in financing activities for the nine months ended September 30, 2021 was $43,082 consisting of advance from related parties compared to net cash provided by financing activities of $25,667 for the nine months ended September 30, 2020.

Total Assets:

The Company’s total assets were $15,917 as at September 30, 2021 compared to total assets of $3,100 as at December 31, 2020.

Total Liabilities:

The Company’s total liabilities were $4,765 as at September 30, 2021 compared to total liabilities of $58,904 as at December 31, 2020.

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Stockholders’ Equity:

The Company’s shareholders’ equity was $11,152 as at September 30, 2021 compared to a negative shareholder’s equity of $55,804 as at December 31, 2020.

Liquidity and Capital Resources

As at September 30, 2021, we had cash and cash equivalents of $15,917, total current assets of $15,917 and our total current liabilities of $4,765.

We had working capital of $11,152 as at September 30, 2021 compared to working capital deficiency of $55,804 as at December 31, 2020.

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, the amount of $122,511 due to related parties has been cancelled and recorded as paid-in capital. As of September 30, 2021, amount outstanding to related parties was $nil

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 September 30, 2021, 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, 2021, 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 September 30, 2021.

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.

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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 September 30, 2021 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 September 30, 2021, 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 September 30, 2021, 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.

15

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

16

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

17

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: November 9, 2021	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

18

EX-31.1

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: November 9, 2021

/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

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 September 30, 2021 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 9^th day of November, 2021.

/s/ Cao Zhi Fen

Cao Zhi Fen

Chief Executive Officer/Chief Financial Officer

Principal Executive Officer,

Principal Financial Officer and Principal Accounting Officer

XML

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 08, 2021
Cover [Abstract]
Entity Registrant Name	STARK FOCUS GROUP INC.
Entity Central Index Key	0001794942
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2021
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Entity Ex Transition Period	false
Entity Common Stock Shares Outstanding		10,220,830
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	333-237100
Entity Incorporation State Country Code	NV
Entity Address Address Line 1	38 S Federal Highway
Entity Address Address Line 2	10-199
Entity Address Address Line 3	Calgary
Entity Address City Or Town	Dania Beach
Entity Address State Or Province	FL
Entity Address Postal Zip Code	33004
City Area Code	352
Local Phone Number	562 - 0289
Entity Interactive Data Current	Yes

XML

Balance Sheet - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current Assets
Cash & Cash Equivalents	$ 15,917	$ 3,100
Prepaid Expenses	0	0
TOTAL ASSETS	15,917	3,100
Current Liabilities
Accounts payable and accrued expenses	4,765	15,822
Due to related party	0	43,082
Total Liabilities	4,765	58,904
Stockholders' Equity
Common stock, ($0.0001 par value, 100,000,000 shares authorized 10,220,830 as of September 30, 2021 and December 31, 2020	1,022	1,022
Additional Paid in Capital	155,537	43,026
Retained Earnings	(145,407)	(99,852)
Total Stockholders' Equity	11,152	(55,804)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY	$ 15,917	$ 3,100

XML

Balance Sheet (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Shareholders' deficit
Common stock, shares par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	10,220,830	10,220,830
Common stock, shares outstanding	10,220,830	10,220,830

XML

Statement of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Operations (Unaudited)
Selling, General & Administrative Expenses	$ 11,047	$ 10,515	$ 46,885	$ 57,794
Income / (loss) from operations	(11,047)	(10,515)	(46,885)	(57,794)
Gain on disposal of subsidiary	1,812	0	1,812	0
Income (loss) from discontinued operations	(911)	3,526	(482)	2,514
Net Income/ (Loss)	$ (10,146)	$ (6,989)	$ (45,555)	$ (55,280)
Basic and diluted earnings per share	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.05)
Weighted average number of common shares outstanding	10,220,830	10,220,830	10,220,830	1,022,830

XML

Statement of Changes in Stockholders' Equity (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Retained Earnings
Balance, shares at Dec. 31, 2019		10,220,830
Balance, amount at Dec. 31, 2019	$ 36,048	$ 1,022	$ 43,026	$ (8,000)
Net profit (loss)	(91,852)	$ 0	0	(91,852)
Balance, shares at Dec. 31, 2020		10,220,830
Balance, amount at Dec. 31, 2020	(55,804)	$ 1,022	43,026	(99,852)
Net profit (loss)	(45,555)	0	0	(45,555)
Debt cancellation by a related party	0	$ 0	112,511	0
Balance, shares at Sep. 30, 2021		10,220,830
Balance, amount at Sep. 30, 2021	$ 11,152	$ 1,022	$ 155,537	$ (145,407)

XML

Statement of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (45,555)	$ (55,280)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Debt cancellation by related party	112,511	0
Changes in operating assets and liabilities:
Prepaid expenses	0	7,522
Accounts payable and accrued expenses	(11,057)	5,646
Net cash provided by (used in) operating activities	55,899	(42,112)
CASH FLOWS FROM FINANCING ACTIVITIES
Advance from related party	(43,082)	25,667
Net cash provided by (used in) financing activities	(43,082)	25,667
Net increase (decrease) in cash	12,817	(16,445)
Cash at beginning of period	3,100	30,320
Cash at end of period	15,917	13,875
Cash paid during year for :
Interest	0	0
Income Taxes	$ 0	$ 0

XML

ORGANIZATION AND DESCRIPTION OF BUSINESS

9 Months Ended

Sep. 30, 2021

ORGANIZATION AND DESCRIPTION OF BUSINESS

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 5).

XML

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2021

BASIS OF PRESENTATION

NOTE 2. BASIS OF PRESENTATION

NOTE 2. BASIS OF PRESENTATION

The Company’s interim consolidated 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. These condensed interim consolidated financial statements include the Company’s wholly owned subsidiary, Common Design Limited., and 100 percent of its assets, liabilities and net income or loss. All inter-company accounts and transactions have been eliminated.

While the information presented in the accompanying interim consolidated 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 September 30, 2021 are not necessarily indicative of the results that can be expected for the year ended December 31, 2021.

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.

As of September, 2021, the Company has cash of $15,917 denominated in Canadian Dollars which was translated at the period-end spot rate of 1.2741 CAD to 1 USD.

XML

GOING CONCERN

9 Months Ended

Sep. 30, 2021

GOING CONCERN

NOTE 3. GOING CONCERN

NOTE 3. GOING CONCERN

These condensed consolidated interim 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 condensed consolidated interim 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 September 30, 2021, the Company had $15,917 in cash and there were outstanding liabilities of $4,765. Management does not believe that the company’s current cash position is sufficient to cover the expenses they will incur during the next twelve months.

In addition, the recent outbreak of the novel coronavirus, commonly referred to as "COVID-19", in China and throughout the world is expected to adversely affect the economic conditions throughout the world, and could adversely affect our business, results of operations and financial condition.

These conditions raise 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.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2021

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 September 30, 2021.

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. Cash and Equivalents

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

e. Income Taxes

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

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

f. Revenue Recognition

Management uses the 5 steps framework of ASC 606 to recognize revenue, as follows:

1.	Identify contract with customer
	a.	Approval (in writing, orally, or in accordance with other customary business practices) and commitment of the parties;
	b.	Identification of the rights of the parties;
	c.	Identification of the payment terms;
	d.	Contract has commercial substance; and
	e.	Probable that the entity will collect the consideration to which it will be entitled in exchange for the good or service that will be transferred to the customer.
2.	Identify performance obligations
	a.	At contract inception, management assesses the goods or services promised in a contract with a customer and identifies as a performance obligation each promise to transfer to the customer either: a) A good or service (or a bundle of goods or services) that is distinct b) A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer
3.	Determined expected transaction price
	a.	The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer
4.	Allocate to performance obligations
	a.	Once the separate performance obligations are identified and the transaction price has been determined, management allocates the transaction price to the performance obligations in proportion to their standalone selling prices
5.	Recognize revenue upon transfer of control over goods/services
	a.	management recognizes revenue only when it satisfies a performance obligation by transferring a promised good or service to a customer. A good or service is considered to be transferred when the customer obtains control.
	b.	The standard defines control as an entity’s ability to direct the use of, and obtain substantially all of the remaining benefits from, an asset.
	c.	Control is assessed primarily from the customer’s perspective.

g. Cost of Sales

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses.

h. Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset.

Property – 40 years

Office Equipment – 5 years

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

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2021

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, the amount of $122,511 due to related parties has been cancelled and recorded as paid-in capital.

As of September 30, 2021, amount outstanding to related parties was $nil.

XML

SALE OF SUBSIDIARY

9 Months Ended

Sep. 30, 2021

SALE OF SUBSIDIARY

NOTE 6. SALE OF SUBSIDIARY

NOTE 6. SALE OF SUBSIDIARY

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 broken down as follows:

Common Design Limited	$		$
Proceeds from sale of subsidiary				1,277
Less:
Total Assets		1,773
Total Liabilities		2,308
Net Liabilities				(535	)
Gain on disposal of subsidiary				1,812

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

XML

SHARE CAPITAL

9 Months Ended

Sep. 30, 2021

SHARE CAPITAL

NOTE 7. SHARE CAPITAL

NOTE 7. 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 4).

As of September 30, 2021, the Company had 10,220,830 shares of common stock issued and outstanding.

XML

WARRANTS AND OPTIONS

9 Months Ended

Sep. 30, 2021

WARRANTS AND OPTIONS

NOTE 8. WARRANTS AND OPTIONS

NOTE 8. WARRANTS AND OPTIONS

There are no warrants or options outstanding to acquire any additional shares of common.

XML

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2021

COMMITMENTS AND CONTINGENCIES

NOTE 9. COMMITMENTS AND CONTINGENCIES

NOTE 9. COMMITMENTS AND CONTINGENCIES

The Company has no commitments and contingencies liabilities to be disclosed.

XML

CONCENTRATIONS

9 Months Ended

Sep. 30, 2021

CONCENTRATIONS

NOTE 10. CONCENTRATIONS

NOTE 10. CONCENTRATIONS

Initial sales are concentrated with one client. Sales are made without collateral and the credit-related losses are insignificant or non-existent. Accordingly, there is no provision made to include an allowance for doubtful accounts (if any).

XML

LEGAL MATTERS

9 Months Ended

Sep. 30, 2021

LEGAL MATTERS

NOTE 11. LEGAL MATTERS

NOTE 11. LEGAL MATTERS

The Company has no known legal issues pending.

XML

SUBSEQUENT EVENT

9 Months Ended

Sep. 30, 2021

SUBSEQUENT EVENT

NOTE 12. SUBSEQUENT EVENT

NOTE 12. SUBSEQUENT EVENT

In accordance with ASC 855-10 management has performed an evaluation of subsequent events from September 30, 2021 through November 8, 2021, the financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2021

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 September 30, 2021.

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.

Cash and Equivalents

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

Income Taxes

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

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

Revenue Recognition

Management uses the 5 steps framework of ASC 606 to recognize revenue, as follows:

1.	Identify contract with customer
	a.	Approval (in writing, orally, or in accordance with other customary business practices) and commitment of the parties;
	b.	Identification of the rights of the parties;
	c.	Identification of the payment terms;
	d.	Contract has commercial substance; and
	e.	Probable that the entity will collect the consideration to which it will be entitled in exchange for the good or service that will be transferred to the customer.
2.	Identify performance obligations
	a.	At contract inception, management assesses the goods or services promised in a contract with a customer and identifies as a performance obligation each promise to transfer to the customer either: a) A good or service (or a bundle of goods or services) that is distinct b) A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer
3.	Determined expected transaction price
	a.	The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer
4.	Allocate to performance obligations
	a.	Once the separate performance obligations are identified and the transaction price has been determined, management allocates the transaction price to the performance obligations in proportion to their standalone selling prices
5.	Recognize revenue upon transfer of control over goods/services
	a.	management recognizes revenue only when it satisfies a performance obligation by transferring a promised good or service to a customer. A good or service is considered to be transferred when the customer obtains control.
	b.	The standard defines control as an entity’s ability to direct the use of, and obtain substantially all of the remaining benefits from, an asset.
	c.	Control is assessed primarily from the customer’s perspective.

Cost of Sales

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our customers. Such costs are recorded and allocated as incurred. Our cost of sales will consist primarily of the cost of product and shipping expenses.

Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, (if any). The Company utilizes straight-line depreciation over the estimated useful life of the asset.

Property – 40 years

Office Equipment – 5 years

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.

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SALE OF SUBSIDIARY (Table)

9 Months Ended

Sep. 30, 2021

SALE OF SUBSIDIARY

Schedule Of Sale Of Subsidiary

Common Design Limited	$		$
Proceeds from sale of subsidiary				1,277
Less:
Total Assets		1,773
Total Liabilities		2,308
Net Liabilities				(535	)
Gain on disposal of subsidiary				1,812

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ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative)	Sep. 27, 2019
Equity method investment ownership	100.00%
Common Design Limited [Member]
Equity method investment ownership	100.00%

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BASIS OF PRESENTATION (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Cash	$ 15,917	$ 3,100	$ 13,875	$ 30,320
Functional and Presentation Currency [Member]
Cash	15,917
Currency denominated	$ 15,917
Description of currency denominated	Canadian Dollars which was translated at the period-end spot rate of 1.2741 CAD to 1 USD.

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GOING CONCERN (Details Narrative)	Sep. 30, 2021 USD ($)
GOING CONCERN
Cash	$ 15,917
Outstanding liabilities	$ 4,765

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	9 Months Ended
	Sep. 30, 2021
Office Equipment [Member]
Property plant and equipment useful life	40 years
Property [Member]
Property plant and equipment useful life	5 years

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RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Sep. 30, 2021	Sep. 13, 2021	Dec. 31, 2020
RELATED PARTY TRANSACTIONS (Details Narrative)
Due to related parties	$ 0	$ 122,511	$ 43,082

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SALE OF SUBSIDIARY (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Total Assets	$ 15,917		$ 15,917		$ 3,100
Total Liabilities	4,765		4,765		$ 58,904
Gain on disposal of subsidiary	1,812	$ 0	1,812	$ 0
Sale of Subsidiary [Member]
Proceeds from sale of subsidiary			1,277
Total Assets	1,773		1,773
Total Liabilities	$ 2,308		2,308
Net Liabilities			(535)
Gain on disposal of subsidiary			$ 1,812

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SALE OF SUBSIDIARY (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Gain on disposal of subsidiary	$ 1,812	$ 0	$ 1,812	$ 0
Share purchase Agreements [Member]
Shares owned subsidiary			10,000

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SHARE CAPITAL (Details Narrative) - USD ($)		1 Months Ended
	Jul. 03, 2018	Aug. 08, 2019	Feb. 28, 2019	Dec. 28, 2018	Sep. 30, 2021	Dec. 31, 2020	Sep. 27, 2019
Common stock shares issued	200,000				10,220,830	10,220,830	8,000,000
Proceeds from issuance of common stock	$ 31
Equity method investment ownership							100.00%
Common stock shares outstanding					10,220,830	10,220,830
Private Placement [Member]
Common stock shares issued			707,830	1,643,000
Common stock shares cancelled		330,000
Common stock shares reduction		$ 7,621
Gross proceeds from issuance of private placement			$ 16,108	$ 37,943