Strategic Acquisitions, Inc. (STQN) reported its financial results for the first quarter of 2026, revealing a net loss of $38,717, compared to a loss of $25,044 in the same period of the previous year. The company did not generate any revenue during this quarter, consistent with its performance in the first quarter of 2025. Operating expenses increased by 54% to $38,717, primarily due to higher selling, general, and administrative costs, which included increased professional fees.
As of March 31, 2026, STQN's total assets amounted to $5,075,000, a decrease from $5,388,000 at the end of 2025. The company's current liabilities also decreased significantly to $723,000 from $2,319,000, resulting in a working capital of $4,352,000, up from $3,069,000 at the end of the previous fiscal year. The increase in cash on hand to $2,927 from $508 was attributed to the sale of 40,000,000 shares of common stock for $40,000.
The company has undergone significant changes since its reverse acquisition of Exworth Union Inc. in December 2022, which positioned it to provide loans collateralized by digital assets. However, as of March 31, 2026, STQN reported no outstanding loans or digital assets held as collateral. The company has temporarily ceased lending operations since July 2024, following the settlement of all issued loans. Management is currently evaluating its business model and considering the potential divestiture of its subsidiary, Exworth Union, as it no longer aligns with the company's strategic focus.
Looking ahead, STQN faces substantial doubt regarding its ability to continue as a going concern, given its accumulated losses of $520,380 and the absence of revenue generation. Management plans to seek additional debt and equity financing to support operations and is exploring avenues to establish a proprietary software platform for loan origination and servicing. However, there are no assurances that these efforts will be successful, and the company may need to curtail or cease operations if adequate funding is not secured.
About STRATEGIC ACQUISITIONS INC /NV/
Strategic Acquisitions, Inc. is a company focused on providing loans collateralized by digital assets, primarily cryptocurrencies like Bitcoin. It aims to develop a platform for originating and servicing digital asset-backed loans to small businesses and individuals in Asia and Europe. The company operates in the fintech and digital asset lending sectors, emphasizing regulatory compliance, technological development, and risk management to offer innovative financial services.
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