Strategic Acquisitions Inc. (STQN) reported significant financial changes in its 10-Q filing for the third quarter of 2024, reflecting a challenging operational environment. As of September 30, 2024, the company had cash of $25,757, a decrease from $54,169 at the end of 2023. Total assets plummeted to $27,402 from $5,672,340, while total liabilities increased to $80,621 from $5,629,653, resulting in a shareholders' deficit of $(53,219) compared to a positive equity of $42,687 at the end of the previous fiscal year.
In terms of revenue, STQN reported total revenues of $16,177 for Q3 2024, up from $13,747 in Q3 2023. However, for the nine months ended September 30, 2024, total revenues decreased to $43,671 from $45,191 in the same period of 2023. Interest income for the nine months also saw a slight increase to $43,671 from $41,241 year-over-year. Operating expenses rose to $44,388 in Q3 2024 from $33,892 in Q3 2023, contributing to a loss from operations of $(28,211) compared to $(20,145) in the prior year. The net loss for Q3 2024 was $(29,948), a marginal improvement from $(30,560) in Q3 2023. For the nine-month period, the net loss narrowed to $(95,906) from $(118,281) in 2023.
The company’s cash flow dynamics also shifted, with net cash used in operating activities decreasing to $(77,648) for the nine months ended September 30, 2024, from $(135,564) in the previous year. Notably, STQN reported a significant cash inflow of $1,374,691 from the collection of a loan receivable, a stark contrast to no such collections in the prior year.
Strategically, STQN operates through its subsidiary, Union, which provides loans collateralized by digital assets. As of September 30, 2024, there were no outstanding loans or digital assets collateral, a significant change from the previous year when the company had a loan portfolio secured by Bitcoin. The company is exploring options for debt and equity financing to sustain operations amid these financial challenges.
The company’s internal controls were deemed ineffective as of September 30, 2024, with management citing a lack of oversight and insufficient accounting personnel as material weaknesses. No changes in internal control over financial reporting were reported during the quarter.
About STRATEGIC ACQUISITIONS INC /NV/
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