Nika Pharmaceuticals, Inc. reported its financial results for the second quarter and the first half of 2024, highlighting significant changes in revenue, expenses, and overall financial health compared to the previous fiscal period. The company recognized its first revenue of $156 for the three and six months ended June 30, 2024, a notable increase from $0 in the same periods of 2023. This revenue was generated from the sale of dietary supplements.

Despite this revenue milestone, Nika Pharmaceuticals faced substantial operating losses. For the three months ended June 30, 2024, the company reported a loss from operations of $(54,800), compared to $(27,806) in the same period of 2023. The total operating expenses for the second quarter of 2024 reached $54,956, up from $27,806 in the prior year. For the first half of 2024, total operating expenses amounted to $114,181, significantly higher than $47,376 in the same period of 2023. The net loss for the six months ended June 30, 2024, was $(114,025), compared to $(47,376) in the previous year.

The company's financial position deteriorated, with cash decreasing from $19,596 as of December 31, 2023, to $7,485 by June 30, 2024. Total current liabilities surged to $636,935 from $101,745 in the prior period, contributing to a total stockholders' deficit of $(246,613) as of June 30, 2024, compared to $(82,149) at the end of 2023.

Strategically, Nika Pharmaceuticals has been active in expanding its operations. The company completed a merger with Nika BioTechnology, Inc. on April 12, 2024, which resulted in an 80% controlling interest in Nika Europe, Ltd. This merger was part of a broader strategy to enhance market presence in Europe, Asia, and Africa. Additionally, the company acquired 100% of 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 bolster its product offerings, including exclusive rights agreements for dietary supplements and a joint business agreement for medicinal products. However, the company’s ability to continue as a going concern is in substantial doubt, compounded by ineffective disclosure controls and identified material weaknesses in internal controls.

Overall, Nika Pharmaceuticals is navigating a challenging financial landscape while pursuing strategic growth initiatives, albeit with increasing operational losses and a declining cash position.