Wed, Sep 18, 3:02 PM (93 days ago)
Nika Pharmaceuticals, Inc. reported its Q2 2024 financial results, showing a significant increase in both revenue and expenses compared to the same period in 2023. The company recognized its first revenue of $156, while operating expenses surged to $54,956, leading to a net loss of $54,800, up from $27,806 in Q2 2023. Year-to-date, losses totaled $114,025 compared to $47,376 last year. Current assets as of June 30, 2024, rose to $222,063, primarily due to new accounts receivable of $196,394 and inventory valued at $14,104. However, liabilities increased dramatically to $636,935, with significant due to related parties totaling $632,297. The stockholders' deficit deepened to $246,613. The company is navigating uncertainties related to its merger with Nika BioTechnology and the acquisition of Nika Europe, which may impact future operations. Cash flow from operations showed a net usage of $523,066, primarily due to increased activity in its subsidiaries. The company raised $530,552 through loans from related parties, highlighting its reliance on external financing amid ongoing operational losses. Overall, Nika Pharmaceuticals faces substantial challenges, including a significant accumulated deficit of $8,956,004, raising doubts about its ability to continue as a going concern without further capital infusion.