STQN Posts Q3 Profit Amidst Zero Revenue, Going Concern Warning

TL;DR

**STQN is a zombie company with no revenue, minimal cash, and a going concern warning; avoid at all costs.**

AI Summary

STRATEGIC ACQUISITIONS INC /NV/ (STQN) reported a net income of $3,347 for the three months ended September 30, 2025, a significant improvement from a net loss of $29,948 in the same period of 2024. However, for the nine months ended September 30, 2025, the company still posted a net loss of $24,244, albeit a substantial reduction from the $95,906 loss in the prior year. Total revenues were $0 for both the three and nine months ended September 30, 2025, a sharp decline from $16,177 and $43,671 in interest income for the respective periods in 2024, indicating a complete cessation of interest-generating loan activities. Cash balances plummeted to $1,936 as of September 30, 2025, from $23,281 at December 31, 2024, and the company continues to operate with a shareholders' deficit of $2,951. The company explicitly states a 'going concern uncertainty' due to its limited cash and accumulated losses, planning to seek debt and/or equity financing. A key strategic change is the absence of outstanding loans receivable and digital asset collateral as of September 30, 2025, contrasting with its stated business model of providing loans collateralized by digital assets.

Why It Matters

STQN's Q3 2025 net income of $3,347, despite zero revenue, is a statistical anomaly driven by reduced operating expenses, not business growth. This signals a critical juncture for investors, as the company's 'going concern uncertainty' and near-depleted cash of $1,936 raise serious questions about its viability and ability to compete in the increasingly crowded digital asset lending space. Employees face job insecurity given the lack of revenue-generating operations, and customers are non-existent as there are no loans receivable. The broader market should view STQN as a cautionary tale of a company struggling to find its footing in a competitive sector without a clear path to sustainable revenue.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about the ability of the Company to continue as a going concern' due to cash of only $1,936 and a shareholders' deficit of $2,951 as of September 30, 2025. Furthermore, STQN reported $0 in total revenues for both the three and nine months ended September 30, 2025, indicating a complete lack of operational income.

Analyst Insight

Investors should immediately divest any holdings in STQN. The company's 'going concern uncertainty,' zero revenue, and critically low cash balance of $1,936 indicate an extremely high risk of insolvency. There is no clear path to profitability or sustainable operations.

Financial Highlights

debt To Equity

N/A

revenue

$0

operating Margin

N/A

total Assets

$1,936

total Debt

$4,887

net Income

$3,347

eps

$0.00

gross Margin

N/A

cash Position

$1,936

revenue Growth

-100.0%

Revenue Breakdown

Key Numbers

• $1,936 — Cash (Decreased from $23,281 at December 31, 2024, indicating severe liquidity issues.)
• $0 — Total Revenues (For both the three and nine months ended September 30, 2025, a complete cessation of revenue generation.)
• $3,347 — Net Income (Q3 2025) (A positive shift from a $29,948 net loss in Q3 2024, but without revenue, it's unsustainable.)
• $(24,244) — Net Loss (YTD 2025) (Reduced from $(95,906) in YTD 2024, but still a significant loss for the period.)
• $(2,951) — Shareholders' Deficit (Improved from $(82,027) at December 31, 2024, primarily due to a capital contribution.)
• $103,320 — Capital Contribution (Non-cash financing activity converting related party loan to capital, bolstering equity.)
• 0 — Loans Receivable Outstanding (As of September 30, 2025, indicating no active lending operations.)

Key Players & Entities

• STRATEGIC ACQUISITIONS INC /NV/ (company) — Registrant
• STQN Sub, Inc. (company) — Subsidiary of STQN
• Exworth Union Inc (company) — Accounting acquirer in reverse acquisition
• Exworth Management LLC (company) — Significant shareholder of Union and STQN prior to transaction
• SEC (regulator) — Securities and Exchange Commission
• $1,936 (dollar_amount) — Cash balance as of September 30, 2025
• $2,951 (dollar_amount) — Shareholders' deficit as of September 30, 2025
• $3,347 (dollar_amount) — Net income for three months ended September 30, 2025
• $24,244 (dollar_amount) — Net loss for nine months ended September 30, 2025
• 6,675,000 (dollar_amount) — Shares of common stock outstanding as of October 31, 2025

FAQ

Risk Factors

• Severe Liquidity Constraints [high — financial]: The company's cash balance has drastically reduced to $1,936 as of September 30, 2025, down from $23,281 at December 31, 2024. This severe liquidity shortage, coupled with a shareholders' deficit of $2,951, raises significant concerns about the company's ability to meet its short-term obligations.
• Going Concern Uncertainty [high — financial]: The company explicitly states a 'going concern uncertainty' in its filings due to its limited cash and accumulated losses. Management plans to seek debt and/or equity financing to address these issues, but the success of these efforts is not guaranteed.
• Cessation of Core Business Operations [high — operational]: As of September 30, 2025, there are no outstanding loans receivable and no digital asset collateral. This represents a complete departure from its stated business model of providing loans collateralized by digital assets, indicating a potential shutdown or radical pivot of its primary operations.
• Sustained Net Losses [medium — financial]: Despite a positive net income of $3,347 in Q3 2025, the company incurred a net loss of $24,244 for the nine months ended September 30, 2025. This continues a trend of significant accumulated losses, contributing to the shareholders' deficit.
• Lack of Regulatory Clarity in Digital Assets [medium — regulatory]: The company's historical business model involved digital asset collateral. The evolving and often uncertain regulatory landscape surrounding digital assets can pose significant risks, including compliance challenges and potential operational disruptions.

Industry Context

The digital asset lending space, where STQN previously operated, is characterized by high volatility, evolving regulatory frameworks, and significant technological risk. Companies in this sector often face challenges related to collateral valuation, security, and compliance with financial regulations. The broader fintech lending market is competitive, with increasing institutional involvement and a growing demand for alternative financing solutions.

Regulatory Implications

The company's past involvement with digital assets exposes it to the complex and rapidly changing regulatory landscape governing cryptocurrencies and digital finance. Any future operations in this area would require strict adherence to evolving compliance requirements, potentially involving KYC/AML regulations and securities laws, which could increase operational costs and complexity.

What Investors Should Do

1. Monitor financing efforts closely.
2. Evaluate the viability of a new business model.
3. Assess the 'going concern' risk.

Key Dates

• 2025-09-30: Quarterly period ended — Reported $0 revenue and a net income of $3,347, with cash at $1,936 and no outstanding loans receivable.
• 2024-09-30: Prior year quarterly period ended — Reported $16,177 in interest income and a net loss of $29,948, with cash at $25,757.
• 2024-12-31: Prior fiscal year end — Cash balance was $23,281 and shareholders' deficit was $(82,027).
• 2025-09-30: Capital Contribution — $103,320 non-cash capital contribution converted related party loan, significantly improving shareholders' deficit.

Glossary

Shareholders' Deficit

A situation where a company's total liabilities exceed its total assets, resulting in a negative net worth for shareholders. (STQN has a shareholders' deficit of $(2,951) as of September 30, 2025, indicating that liabilities outweigh assets, though improved from the prior year.)

Going Concern Uncertainty

A statement by management indicating substantial doubt about the entity's ability to continue operating for the next year. (STQN explicitly states this uncertainty due to its limited cash and accumulated losses, highlighting a significant risk to its continued existence.)

Reverse Acquisition

A transaction where a private company acquires a public company, and the private company is treated as the acquirer for accounting purposes. (STQN underwent a reverse acquisition of Exworth Union Inc. in December 2022, impacting its financial reporting history.)

Digital Assets

Cryptocurrencies or other assets that are encrypted and decentralized, often using blockchain technology. (STQN's prior business model involved using digital assets as collateral for loans, a sector with inherent volatility and regulatory uncertainty.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, STRATEGIC ACQUISITIONS INC /NV/ (STQN) has seen a complete cessation of revenue generation, with total revenues dropping from $16,177 in Q3 2024 to $0 in Q3 2025. While net income has shifted from a loss of $29,948 to a gain of $3,347, this is not driven by revenue but by a significant reduction in operating expenses, which fell from $44,388 to a negative $3,347 (indicating a credit or reversal). The company's cash position has also deteriorated significantly, falling from $25,757 at the end of Q3 2024 to $1,936 at the end of Q3 2025.

Key Financial Figures

• $0.001 — ch Registered Common Stock, par value $0.001 STQN N/A Indicate by check mark i

Filing Documents

• form10-q.htm (10-Q) — 540KB
• ex31-1.htm (EX-31.1) — 10KB
• ex32-1.htm (EX-32.1) — 4KB
• 0001493152-25-020422.txt ( ) — 2697KB
• stqn-20250930.xsd (EX-101.SCH) — 23KB
• stqn-20250930_cal.xml (EX-101.CAL) — 32KB
• stqn-20250930_def.xml (EX-101.DEF) — 76KB
• stqn-20250930_lab.xml (EX-101.LAB) — 175KB
• stqn-20250930_pre.xml (EX-101.PRE) — 139KB
• form10-q_htm.xml (XML) — 304KB

SIGNATURES

SIGNATURES 21 1 PART I – FINANCIAL INFORMATION ITEM 1 FINANCIAL STATEMENTS STRATEGIC ACQUISITIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2025 2024 (Unaudited) Assets Cash $ 1,936 $ 23,281 Prepaid expenses - 865 Total assets $ 1,936 $ 24,146 Liabilities and shareholders' equity (deficit) Liabilities Accounts payable and accrued expenses $ 4,887 $ 10,552 Due to related party (noninterest bearing, due on demand) - 95,621 Total liabilities 4,887 106,173 Shareholders' Equity Common stock, $ 0.001 par value; 50,000,000 shares authorized; 6,675,000 shares issued and outstanding as of September 30, 2025 and December 31, 2024 6,675 6,675 Additional paid-in capital 457,056 353,736 Accumulated deficit ( 466,682 ) ( 442,438 ) Total shareholders' deficit ( 2,951 ) ( 82,027 ) Total liabilities and shareholders' deficit $ 1,936 $ 24,146 The accompanying notes are an integral part of these condensed consolidated financial statements 2 STRATEGIC ACQUISITIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 Revenues Loan administrative service fees $ - $ - $ - $ - Interest income - 16,177 - 43,671 Total revenues - 16,177 - 43,671 Operating expenses Selling, general and administrative expenses ( 3,347 ) 44,388 24,244 117,012 Total operating expenses ( 3,347 ) 44,388 24,244 117,012 Income (loss) from operations 3,347 ( 28,211 ) ( 24,244 ) ( 73,341 ) Other (expense), net Interest expense - ( 1,447 ) - ( 18,804 ) Amortization of loan origination fee - ( 290 ) - ( 3,761 ) Total other (expense), net - ( 1,737 ) - ( 22,565 ) Income (loss) before income taxes provision (benefit) 3,347 ( 29,948 ) ( 24,244 ) ( 95,906 ) Income taxes expense (bene

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