BlackStar Enterprise Group, Inc., a company focused on providing venture capital to early-stage revenue companies, particularly those involved in blockchain and distributed ledger technologies (DLT), has released its Form 10-Q report for the second quarter of 2025. The report highlights the company’s financial performance and operational developments, shedding light on its current status and future plans.

Financial Highlights

Revenue: $0 million. The company did not generate any revenue for the three and six months ended June 30, 2025, and 2024.

Net Loss: $357,507 for the three months ended June 30, 2025, compared to $340,363 for the same period in 2024, reflecting an increase in net loss by $17,144. For the six months ended June 30, 2025, the net loss was $494,777, compared to $839,435 for the same period in 2024, reflecting a decrease in net loss by $344,658.

Net Loss Per Share – Basic and Diluted: $(0.00) for both the three and six months ended June 30, 2025, and 2024.

General and Administrative Expenses: $177,173 for the three months ended June 30, 2025, an increase of $168,870 from $8,303 in 2024, primarily due to the issuance of 400,000,000 shares of common stock valued at $160,000 for services rendered. For the six months ended June 30, 2025, these expenses were $198,298, an increase of $166,710 from $31,588 in 2024.

Interest Expense: $61,575 for the three months ended June 30, 2025, a decrease of $4,018 from $65,593 in 2024, primarily due to the amortization of discount on non-convertible debt being completed. For the six months ended June 30, 2025, interest expense was $131,554, an increase of $427 from $131,127 in 2024.

Legal and Professional Fees: $116,744 for the three months ended June 30, 2025, a decrease of $116,198 from $232,942 in 2024, due to reduced litigation-related expenses. For the six months ended June 30, 2025, these fees were $162,910, a decrease of $433,285 from $596,195 in 2024.

Business Highlights

Business Strategy: BlackStar Enterprise Group, Inc. aims to operate as a merchant banking firm, focusing on providing venture capital to early-stage revenue companies, particularly those involved in blockchain and distributed ledger technologies (DLT). The company plans to offer consulting and regulatory compliance services to these companies.

Digital Trading Platform Development: The company is developing a digital equity trading platform, BlackStar’s Digital Trading Platform (BDTPTM), to trade registered BlackStar common shares in digital form. The platform is currently in the testing phase, with plans to integrate it into the broker-dealer ecosystem.

Intellectual Property: BlackStar has been strengthening its intellectual property portfolio, securing patents for its digital trading platform and corporate governance features on a blockchain. This includes patents for systems and methods related to trading securities on a blockchain.

Future Outlook: BlackStar plans to offer its Private Funding and Corporate Governance Blockchain to individual private companies in 2026. The company is also exploring partnerships with broker-dealers and existing Alternative Trading Systems (ATS) to go live with its digital trading platform.

Operational Challenges: The company faces substantial doubt about its ability to continue as a going concern due to its accumulated deficit and working capital deficiency. It is dependent on raising additional capital and achieving profitable operations.

Management Consulting Services: The company relies on management consulting services from its controlling shareholder, International Hedge Group, Inc. (IHG), although there is no formal written agreement defining compensation.

Legal Proceedings: BlackStar was involved in a lawsuit with GS Capital, which was settled in November 2025. The settlement resulted in the dismissal of the litigation with each party bearing its own costs.

Capital Raising Efforts: The company is actively seeking to raise $5,000,000 over the next twelve months to scale its business plan, including a $1 million fractional unit offering commenced in October 2025.

SEC Filing: BLACKSTAR ENTERPRISE GROUP, INC. [ BEGI ] – 10-Q – Feb. 13, 2026