$SNFI

Stark Novus Financial Inc.

CIK:0001759546|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Operating expense (income):
Selling, general and administrative expenses	$ 1,550	$ 1,683	$ 3,051	$ 3,621
Legal settlement and litigation benefit, net		(1,326)	(779)	(1,498)
Total operating expense, net	1,550	357	2,272	2,123
Loss from operations	(1,550)	(357)	(2,272)	(2,123)
Other (expense) income:
Other expense, net	(49)	(37)	(68)	(68)
Realized gain on debt securities available for sale		696		925
Investment and interest income	539	440	1,172	797
(Loss) income before income taxes	(1,060)	742	(1,168)	(469)
Income tax expense (benefit)
Net (loss) income	(1,060)	742	(1,168)	(469)
Less accrued preferred stock dividend	782	723	1,550	1,432
Net (loss) income attributable to common shareholders	$ (1,842)	$ 19	$ (2,718)	$ (1,901)
Net (loss) income per share attributable to common shareholders
Basic	$ (0.11)	$ 0.00	$ (0.17)	$ (0.12)
Diluted	$ (0.11)	$ (0.00)	$ (0.17)	$ (0.12)
Weighted-average number of common shares outstanding
Basic	16,096	16,096	16,096	16,096
Diluted	16,096	17,528	16,096	16,096

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,168)	$ (469)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	369	216
Realized gain on debt securities available for sale		(925)
Accretion of investment income		(104)
Change in operating assets and liabilities:
Prepaid insurance and other assets	(149)	(124)
Accounts payable	(417)	(25)
Accrued legal and professional fees	296	(167)
Accrued expenses and other current liabilities and liabilities subject to compromise	(2,465)	(2,382)
Net cash used in operating activities	(3,534)	(3,980)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments		(19,589)
Maturities of short-term investments		30,000
Issuance of loans receivable	(9,380)
Net cash (used in) provided by investing activities	(9,380)	10,411
Cash and cash equivalents, and restricted cash:
Net (decrease) increase during the period	(12,914)	6,431
Balance, beginning of period	34,439	23,095
Balance, end of period	$ 21,525	$ 29,526

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 21,525	$ 34,439
Short-term investments	7,373	4,722
Short-term investments, restricted	2,619	5,100
Prepaid insurance	252	317
Other current assets	390	176
Total current assets	32,159	44,754
Loans receivable	11,595	2,215
Total assets	43,754	46,969
Current liabilities:
Accounts payable	47	464
Accrued legal and professional fees	697	401
Accrued expenses and other current liabilities	55	126
Total current liabilities	799	991
Liabilities subject to compromise	2,603	5,004
Total liabilities	3,402	5,995
Commitments and contingencies (Note 7)
Stockholders’ equity
Additional paid in capital	1,180,833	1,182,014
Accumulated other comprehensive loss	(231)	(408)
Accumulated deficit	(1,180,202)	(1,179,034)
Total stockholders’ equity	424	2,596
Total liabilities, mezzanine equity and stockholders’ equity	43,754	46,969
Series A Convertible Preferred Stock [Member]
Mezzanine equity
Series A Convertible Preferred stock, $0.0001 par value, 12,000,000 shares authorized; 300,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025	39,928	38,378
Common Class A [Member]
Stockholders’ equity
Class A common stock, $0.0001 par value, 450,000,000 shares authorized; 16,211,365 and 16,211,365 shares issued as of June 30, 2026 and December 31, 2025, respectively, 16,096,296 and 16,096,296 shares outstanding as of June 30, 2026 and December 31, 2025, respectively	$ 24	$ 24