Logiq, Inc. reported significant financial changes in its 10-Q filing for the second quarter of 2024, reflecting a strategic shift and operational adjustments. The company recorded no service revenue for Q2 2024, a stark decline from $4.9 million in Q2 2023, and year-to-date revenue also fell to $0 from $8.4 million in the previous year. This drop is attributed to the company's focus on restructuring and the spin-off of its CreateApp and DataLogiq platforms.
Despite the lack of revenue, Logiq's operating expenses decreased dramatically to $215,463 in Q2 2024 from $4.0 million in Q2 2023, primarily due to reduced general and administrative costs, which fell from $3.5 million to $215,463. The company reported a net loss of $215,463 for Q2 2024, significantly improved from a net loss of $3.6 million in Q2 2023. For the six months ended June 30, 2024, the net loss was $880,492, down from $16.0 million in the same period of 2023, marking a 93.4% reduction.
Logiq's total current assets decreased to $605,782 as of June 30, 2024, from $651,278 at the end of 2023. However, total liabilities also declined to $798,342 from $1.05 million, leading to an improved stockholder's deficit of $(192,560) compared to $(400,680) at the end of 2023. The company’s cash and cash equivalents stood at $9,587, a decrease from $489,202 a year earlier.
In terms of strategic developments, Logiq signed a letter of intent on May 21, 2024, to acquire MedLab Essentials, LLC, a biotech company, in a deal valued at $100 million, expected to close by October 31, 2024. The company also completed a merger with Abri SPAC I, Inc. on November 2, 2023, which resulted in the issuance of 3,762,000 shares to the combined entity.
Logiq's stock-based compensation expenses decreased significantly from $12.5 million in the first half of 2023 to $954,596 in 2024, reflecting the company's efforts to streamline costs. The company has also faced challenges due to the COVID-19 pandemic, particularly affecting its operations in Southeast Asia.
Overall, Logiq's financial performance in Q2 2024 indicates a strategic pivot towards cost management and potential growth through acquisitions, despite the absence of revenue during the quarter.
About LOGIQ, INC.
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