Nika Pharmaceuticals, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company, which has not utilized the extended transition period for new financial accounting standards, experienced a drastic decline in total assets, which fell from $19.6 million as of December 31, 2023, to just $1.4 million by September 30, 2024. This reduction was accompanied by a corresponding increase in total liabilities, which rose from $101,745 to $210,164 during the same period, primarily due to amounts due to related parties.

For the three months ended September 30, 2024, Nika Pharmaceuticals reported a net loss of $8.4 million, a decrease from a net loss of $10.1 million in the same period of 2023. General and administrative expenses also decreased to $6.3 million from $10.1 million year-over-year. However, for the nine months ended September 30, 2024, the net loss increased to $83.3 million compared to $57.5 million in the prior year, indicating a worsening financial position over the longer term. The company reported net cash used in operating activities of $126.6 million for the nine months, up from $57.5 million in the previous year.

Strategically, Nika Pharmaceuticals has been active in mergers and acquisitions. The company signed a merger agreement with Nika BioTechnology, Inc. on February 12, 2024, which became effective on April 12, 2024, resulting in an 80% controlling interest in Nika Europe, Ltd. This acquisition is part of a broader strategy to enhance its market presence in Europe, Asia, and Africa. Additionally, Nika Pharmaceuticals acquired a 100% stake in Nika Pharmaceuticals, Ltd. on May 9, 2024, although this acquisition was later canceled on August 18, 2024.

The company has also engaged in various agreements to expand its product offerings, including exclusive rights agreements for dietary supplements and a joint business agreement for medicinal products. As of September 30, 2024, Nika Pharmaceuticals had 1,018,519,500 shares of common stock outstanding, reflecting a significant increase in share issuance related to its merger activities.

Overall, Nika Pharmaceuticals is navigating a challenging financial landscape while pursuing strategic growth through acquisitions and partnerships, despite facing increasing losses and a declining asset base.