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EX-32.1 - STRATEGIC ACQUISITIONS INC /NV/ex32-1.htm
EX-31.1 - STRATEGIC ACQUISITIONS INC /NV/ex31-1.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-Q

 

 

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2018

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from _________to _________

 

Commission File Number: 0-28963

 

 

 

STRATEGIC ACQUISITIONS, INC.

(Exact name of Registrant as specified in its charter)

 

 

 

Nevada   13-3506506
(State or other jurisdiction of   (IRS Employer
incorporation or organization)   Identification Number)

 

100 Wall Street, 7th Floor, New York, NY 10005

(Address of principal executive offices, including zip code)

 

(212) 878-6550

(Registrant’s telephone number, including area code)

 

 

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Securities registered pursuant to Section 12(g) of the Act: Common Stock

                        (Title of class)

 

 

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer [  ]   Accelerated filer [  ]
Non-accelerated filer [  ] (Do not check if a smaller reporting company)   Smaller reporting company [X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [X] No [  ]

 

As of June 30, 2018, the registrant had 2,515,000 shares of common stock outstanding.

 

 

 

 

 

 

STRATEGIC ACQUISITIONS, INC.

 

TABLE OF CONTENTS

 

  Page
PART I FINANCIAL INFORMATION  
     
  ITEM 1 — Financial Statements 2
     
  Balance Sheets 2
     
  Statements of Operations 3
     
  Statements of Cash Flows 4
     
  Notes to Financial Statements 5
     
  ITEM 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations 6
     
  ITEM 4 — Controls and Procedures 6
     
PART II OTHER INFORMATION  
     
  ITEM 1 — Legal Proceedings   7
     
  ITEM 2 — Unregistered Sales of Equity Securities and Use of Proceeds 7
     
  ITEM 5 — Other Information 7
     
  ITEM 6 — Exhibits 8
     
SIGNATURES 9

 

1

 

 

PART I – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

STRATEGIC ACQUISITIONS, INC.

BALANCE SHEETS

 

  

June 30, 2018

   December 31, 2017 
   (Unaudited)     
ASSETS          
Current assets:          
Cash and cash equivalents  $197,787   $244,160 
Prepaid rent – related party   1,750    1,750 
Rent deposit – related party   3,500    3,500 
Total current assets   203,037    249,410 
Total assets  $203,037   $249,410 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $567   $- 
Total current liabilities   567    - 
Total liabilities   567    - 
Stockholders’ equity:          
Common stock, $0.001 par value; 50,000,000 shares authorized; 2,515,000 shares issued and outstanding   2,515    2,515 
Additional paid-in capital   535,888    535,888 
Accumulated deficit   (335,933)   (288,993)
Total stockholders’ equity   202,470    249,410 
Total liabilities and stockholders’ equity  $203,037   $249,410 

 

See Notes to Financial Statements.

 

2

 

 

STRATEGIC ACQUISITIONS, INC.

STATEMENTS OF OPERATIONS

(UNAUDITED)

 

   Three Months Ended
June 30,
   Six Months Ended
June 30,
 
   2018   2017   2018   2017 
Revenues  $-   $-   $-   $- 
                     
Expenses                    
General & Administrative   2,508    2,113    8,741    7,249 
General & Administrative – related party   1,500    -    17,500    - 
Rent – related party   10,500    -    21,000    - 
Total Expenses   14,508    2,113    47,241    7,249 
                     
Other Income                    
Interest Income   158    -    301    - 
Total Other Income   158    -    301    - 
                     
Net income (loss)  $(14,350)  $(2,113)  $(46,940)  $(7,249)
                     
Net Income (Loss) Per Common Share – Basic & Fully Diluted  $(0.01)  $(0.00)  $(0.02)  $(0.00)
                     
Weighted average number of shares of common stock outstanding – Basic & Fully Diluted   2,515,000    1,765,000    2,515,000    1,744,313 

  

See Notes to Financial Statements.

 

3

 

 

STRATEGIC ACQUISITIONS, INC.

STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

  

Six Months Ended

June 30,

 
   2018   2017 
Cash Flows From Operating Activities          
Net income (loss)  $(46,940)  $(7,249)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:          
(Increase) Decrease in prepaid rent – related party   -    - 
(Increase) Decrease in security deposit – related party   -    - 
Increase (Decrease) in accounts payable   567    - 
Net cash provided by (used in) operating activities   (46,373)   (7,249)
Cash Flows From Financing Activities          
Issuance of common stock, net of costs   -    10,000 
Net cash provided by (used in) financing activities   -    10,000 
Net increase (decrease) in cash and cash equivalents   (46,373)   2,751 
Cash and cash equivalents at beginning of the period   244,160    1,275 
Cash and cash equivalents at end of the period  $197,787   $4,026 

 

See Notes to Financial Statements.

 

4

 

 

STRATEGIC ACQUISITIONS, INC.

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)

 

Note 1. Basis of Presentation

 

The interim financial statements included herein, presented in conformity with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

 

These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2017 and notes thereto included in the Company’s annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports.

 

Results of operations for interim periods are not indicative of annual results.

 

Note 2. Stockholders’ Equity

 

The Company is authorized to issue 50,000,000 shares of its $0.001 par value Common Stock.

 

There were no issuances of common stock for the period ended June 30, 2018.

 

Note 3. Related Party Transactions

 

The Company rents office space from Westminster Securities Corp., an entity controlled by the Company’s President, John O’Shea, at the rate of $3,500 per month, in addition to having paid a $3,500 security deposit.

 

The Company has periodically issued payment to certain officers and directors or their affiliates for services in connection with maintaining the Company’s financial statements and regulatory status in good standing and evaluating potential business opportunities. The total compensation issued during the three-month period ended June 30, 2018 to related parties was: $1,500 to Marika Tonay, an officer and director of the Company.

 

The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts.

 

5

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion should be read in conjunction with the accompanying financial statements for the three-month period ended June 30, 2018 and the Form 10-K for the fiscal year ended December 31, 2017.

 

Liquidity and Capital Resources

 

At June 30, 2018, the Company had current assets in the form of cash and cash equivalents of $197,787, additional current assets in the form of prepaid rent and rent deposit totaling $5,250 and liabilities of $567.

 

Results of Operations

 

The Company has not realized any revenues from operations in the past two years, and its plan of operation for the next twelve months shall be to continue its efforts to locate a suitable acquisition/merger candidate. The Company can provide no assurance that it will continue to satisfy its cash requirements for at least the next twelve months if a suitable acquisition/merger is completed.

 

It is unlikely the Company will have any revenue, other than interest income, unless it is able to effect an acquisition of or merger with an operating company, of which there can be no assurance.

 

For the quarters ended June 30, 2018 and 2017, the Company showed net losses of $14,350 and $2,113, respectively. The increase in net loss was due primarily to increased expenses of renting office space and paying consultants (including related parties) for services in connection with evaluation of merger candidates and maintaining the company’s public status.

 

For the six-month periods ended June 30, 2018 and 2017, the Company showed net losses of $46,940 and $7,249, respectively. The increase in net loss was due primarily to increased expenses of renting office space and paying consultants (including related parties) for services in connection with evaluation of merger candidates and maintaining the company’s public status. Much of the increase was concentrated in the first quarter due particularly to increased expenses around the annual audit.

 

ITEM 4. CONTROLS AND PROCEDURES

 

As of the end of the period covered by this report, the Company conducted an evaluation, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”).

 

Based on this evaluation, the Principal Executive Officer and Principal Financial Officer concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. Additionally, the Principal Executive Officer and Principal Financial Officer concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding disclosure.

 

There was no change in the Company’s internal control over financial reporting during the Company’s most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

***

 

6

 

 

PART II – OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

None.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 5. OTHER INFORMATION

 

None.

 

7

 

 

ITEM 6. EXHIBITS

 

The following exhibits are filed with this Report or incorporated by reference:

 

EXHIBIT LIST

 

Exhibit
Number
  Description
     
31.1   Certification of the Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32.1   Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, Section 906 of the Sarbanes-Oxley Act of 2002

 

8

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  STRATEGIC ACQUISITIONS, INC.
  (Registrant)
     
Date: August 14, 2018 By: /s/ JOHN P. O’SHEA
    John P. O’Shea
   

President and

Principal Financial Officer

 

***

 

9