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

    

OR

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. (Check one):

    

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 14,893,714 shares of common stock as of August 14, 2017.

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DKG CAPITAL, INC.

FINANCIAL STATEMENTS

June 30, 2017

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DKG Capital, Inc.

Balance Sheets
(unaudited)  

 

		June 30,				December 31,
		2017				2016
ASSETS
Total assets		$	-			$	-
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued liabilities		$	2,500			$	8,500
Amount due to former director			2,306				2,306
Amount due to shareholder			16,648				-
Total current liabilities			21,454				10,806
Stockholders' deficit
Common stock, 5,000,000,000 shares authorized, at   $0.001 par value, 14,893,714 shares   issued and outstanding, respectively			14,894				14,894
Additional paid-in capital			2,782,620				2,782,620
Accumulated deficit			(2,818,968	)			(2,808,320	)
Total stockholders' deficit			(21,454	)			(10,806	)
Total liabilities and stockholders' deficit		$	-			$	-

 

The accompanying notes are an integral part of these unaudited financial statements

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DKG Capital, Inc.

Statements of Operations
(unaudited) 

		For the Three Months ended								For the Six Months ended
		June 30,								June 30,
		2017				2016				2017				2016
Operating expenses
General and administrative		$	1,500			$	10,167			$	10,648			$	17,540
Total operating expenses			1,500				10,167				10,648				17,540
Loss from operations			(1,500	)			(10,167	)			(10,648	)			(17,540	)
Other expenses
Interest expense			-				-				-				(500	)
Total other expenses			-				-				-				(500	)
Loss before provision for income taxes			(1,500	)			(10,167	)			(10,648	)			(18,040	)
Net loss		$	(1,500	)		$	(10,167	)		$	(10,648	)		$	(18,040	)
Basic and diluted net loss per common share		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
Weighted average common shares outstanding
Basic and diluted			14,893,714				14,893,714				14,893,714				14,893,714

		For the Six Months ended
		June 30,
		2017				2016
Cash flow from operating activities
Net loss		$	(10,648	)		$	(18,040	)
Adjustment to reconcile net loss to cash used in operating activities
Amortization of intangible asset			-				1,067
Change in assets and liabilities
Increase (decrease) in accounts payables and accruals			10,648				498
Net cash used in operating activities			-				(16,475	)
Cash flows from financing activities
Net proceeds from note payable-related party			-				9,210
Net cash provided by financing activities			-				9,210
Net decrease in cash			-				(7,265	)
Cash, beginning			-				11,651
Cash, ending		$				$	4,386
Supplementary information
Cash paid:
Interest		$	-			$	-
Income taxes		$	-			$	-
Non-cash Investing and Financing Activities:
Former related party notes and payables forgiven		$	-			$	93,515
Due to shareholder for payment of expenses on behalf of the Company			16,648				-

DKG Capital, Inc.

Notes to Financial Statements

For the Six Months Ended June 30, 2017 and 2016

(unaudited)

NOTE 1 - ORGANIZATION AND OPERATIONS

DKG Capital, Inc. (“we”, “our”, the “Company”), located in Las Vegas, Nevada, was incorporated on October 2, 2013, in the State of Nevada.

Mr. Andy Kim resigned as President and Chief Executive Officer, Secretary and Treasurer of our Company on January 11, 2017 and Mr. Tesheb Casimir became the President and Chief Executive Officer, Secretary and Treasurer. Mr. Tesheb Casimir ended the binary option software development. Mr. Tesheb Casimir’s new business focuses are: 1. Mobile application development; 2. Provision of online marketing services; 3. Operation of self-developed social media platform; and 4. Provision of various leisure services to high net worth clients who are users of our social media platform.

On January 11, 2017 our Board of Directors and a majority of our shareholders’ voting power approved (1) a corporate name change to “DKG Capital, Inc.”, (2) an increase in our authorized shares of common stock to 5,000,000,000 shares from 100,000,000 shares and (3) a 30:1 forward split of our common stock. These corporate actions are now effective. All share and per share amounts herein have been retroactively restated to reflect the split.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited interim financial statements of DKG Capital, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto for the years ended December 31, 2016 and 2015, contained in the Company's Form 10K, originally filed with the Securities and Exchange Commission on April 7, 2017.  In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein.  The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. 

NOTE 3 - GOING CONCERN

The accompanying unaudited interim financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. Since its inception, the Company has been engaged substantially in financing activities and developing its business plan and marketing. As a result, the Company has incurred net recurring losses and an accumulated deficit.  As of June 30, 2017, the Company has a working capital deficit. These conditions raise substantial doubt as to the Company's ability to continue as a going concern.

The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock or through debt financing and, ultimately, the achievement of significant operating revenues. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.

NOTE 4 – RELATED PARTY TRANSACTIONS

As of June 30, 2017 and December 31, 2016, the Company was obligated to a former director for an unsecured, non-interest demand bearing loan with a balance of $2,306.

As of June 30, 2017, the Company was obligated to Mr. Tesheb Casimir, CEO for an unsecured, non-interest demand bearing loan with a balance of $16,648, for the Company’s business expenses paid directly by the CEO on behalf of the Company.

As used in this report, the terms "we", "us" and "our" mean DKG Capital, Inc., a Nevada corporation. In this report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to "common shares" refer to the common shares in our capital stock.

The following discussion and analysis of our financial condition and plan of operations should be read in conjunction with our unaudited interim financial statements and related notes appearing elsewhere in this Quarterly Report.

History and Overview

DKG Capital, Incwas incorporated on October 2, 2013 under the laws of the State of Nevada.

 

Plan of Operations

 

After the appointment of Mr. Tesheb Casimir as CEO of the Company on  January 11, 2017, the Company were in new business focuses: 1. Mobile application development; 2. Provision of online marketing services; 3. Operation of self-developed social media platform; and 4. Provision of various leisure services to high net worth clients who are users of our social media platform.

 

 

Results of Operations

 

The following is an analysis of components of expenses, and variances comparing the six months ended June 30, 2017 to the six months ended June 30, 2016.

 

We did not generate any revenue during the six months ended June 30, 2017 and 2016. During this stage, we built our web site and were primarily focused on acquiring, developing and testing products. Our total operating expenses during those periods were general and administrative expense of $10,648 for the six months ended June 30, 2017 compared to $17,540. Interest expense for the six months ended June 30, 2017 was $0 compared to $500 for the six months ended June 30, 2016.

 

The decrease in operating expenses, for the six months ended June 30, 2017, compared to the six months ended June 30, 2016, is due, primarily, to the reduced professional fees.

 

Liquidity and Capital Resources

 

During the six months ended June 30, 2017, we utilized cash in the amount of $0 to pay for operating activities compared to $16,475 for the six months ended June 30, 2016. Cash used in operating activities during the six months ended June 30, 2017 included a net loss of $10,648 compared to a net loss of $18,040 for the six months ended June 30, 2016.

 

Investing Activities

 

We did not use any cash resources for investing activities during the six month periods ended June 30, 2017 and 2016.

 

Financing Activities

 

We did not generate any funds from financing activities during the six month periods ended June 30, 2017 compared to cash generated from related party note payable of $9,210 during the six month period ended June 30, 2016.

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Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were not effective as of June 30, 2017.

 

There were no changes in our internal control over financial reporting during the six month period ended June 30, 2017 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.   

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities on this August 14, 2017.