Nika Pharmaceuticals Reports Q1 2025 Financial Results with Reduced Net Loss

Nika Pharmaceuticals, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $12,945, a significant reduction from the $45,952 loss recorded in the same period of 2024. The company did not generate any revenue during this quarter, maintaining a consistent trend from previous periods. Operating expenses decreased to $12,945, down from $45,952 in the prior year, primarily due to lower general and administrative costs, which fell from $8,452 to $1,800, and a reduction in professional fees from $37,500 to $11,145.

The company's total assets as of March 31, 2025, stood at $34,988, compared to $17,934 at the end of 2024. This increase was largely driven by a rise in cash reserves, which grew from $2,083 to $19,137. However, total liabilities also increased, with current liabilities rising from $239,164 to $269,164, primarily due to amounts owed to related parties. The stockholders' deficit widened to $234,176 from $221,230, reflecting the ongoing challenges in achieving profitability.

Strategically, Nika Pharmaceuticals has undergone significant organizational changes, including a merger with Nika BioTechnology, Inc. in April 2024, which resulted in the company acquiring an 80% controlling interest in Nika Europe, Ltd. This merger is expected to enhance Nika's market presence in Europe, Asia, and Africa, as the company prepares to construct a pharmaceutical factory for drug production. Additionally, Nika has entered into exclusive rights agreements for the production and distribution of various pharmaceutical products and dietary supplements, which are anticipated to bolster its product offerings.

Operationally, the company has not reported any customer counts or user statistics, as it continues to focus on establishing its manufacturing capabilities and product lines. The employee headcount remains unspecified, but the company has indicated that it is actively seeking to expand its operational capacity. Nika's stock was uplisted to OTCQB in December 2024, and it has since changed its trading symbol to NIKA, reflecting its ongoing efforts to enhance its market visibility.

Looking ahead, Nika Pharmaceuticals acknowledges substantial doubt about its ability to continue as a going concern, given its accumulated deficit of $8,940,557 and lack of revenue generation. The company plans to explore additional capital-raising opportunities, including potential mergers with operating entities, to support its business objectives. However, the success of these strategies remains uncertain, and the company has not provided specific guidance on future financial performance.