10-Q 1 lgiq-20240331.htm FORM 10-Q LOGIQ, INC
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 10-Q
 
 
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
 
 
 
For the quarterly period ended
March 31, 2024
 
 
or
 
 
☐
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:
000-51815
 
 
LOGIQ, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
 
46-5057897
(State or other jurisdiction of
 
incorporation or organization)
 
(I.R.S. Employer
 
Identification No.)
 

230 Victoria Street Bugis Junction
#15-01/08, Singapore 188024
(Address of principal executive offices, including Zip Code)
 
 
+65 9366 2322
(Registrant’s telephone number, including area code)
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading symbol(s)
 
Name of each exchange on which

registered
N/A
 
 
 
 
 
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  
☐
No
 
 
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
☒
Yes  
☐
No
 
 
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
 
 
Large accelerated filer
☐
Accelerated filer
☐
 
Non-accelerated filer
☒
Smaller reporting company
☒
 
 
Emerging growth Company
☐
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
 
 
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
☐
Yes  
☒
No
 
 
 
As of May 15, 2024, the issuer had 232,947,540 shares of common stock issued and outstanding.
 
 
 
 
 
LOGIQ INC.
 
QUARTERLY REPORT ON FORM 10-Q
 
March 31, 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

i
  
  
P
ART 1 - FINANCIAL INFORMATION
 
 
 
I
TEM 1. Financial Statements
 
 
 
LOGIQ INC.
 
C
onsolidated Balance Sheets
 
 
 
 
March 31
 
 
December 31
 
 
 
2024
 
 
2023
 
 
 
(Unaudited)
 
 
(Audited)
 
ASSETS
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
Prepayment, deposit and other receivables
 
 
146,774
 
 
 
152,000
 
Amount due from related party
 
 
470,421
 
 
 
482,420
 
Cash and cash equivalents
 
 
50,918
 
 
 
16,858
 
Total current assets
 
 
668,113
 
 
 
651,278
 
Total assets
 
$
668,113
 
 
$
651,278
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
 
 
Accounts payable
 
 
1,100,275
 
 
 
991,958
 
Accruals
 
 
68,000
 
 
 
50,000
 
Deposits received for share
s
to be issued
 
 
48,990
 
 
 
-
 
Total current liabilities
 
 
1,217,265
 
 
 
1,041,958
 
Non-Current Liabilities
 
 
 
 
 
 
 
 
Other loan
 
 
10,000
 
 
 
10,000
 
Total non-current liabilities
 
 
10,000
 
 
 
10,000
 
Total liabilities
 
$
1,227,265
 
 
$
1,051,958
 
STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Common stock, $0.0001 par value, 250,000,000 shares authorized, 163,786,751 and 143,855,621 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
 
 
16,379
 
 
 
14,386
 
Additional paid-in capital
 
 
109,868,878
 
 
 
109,364,314
 
Capital reserves
 
 
22,029,969
 
 
 
22,029,969
 
Accumulated deficit brought forward
 
 
(132,474,378
)
 
 
(131,809,349
)
Total stockholder's (deficit)
 
 
(559,152
)
 
 
(400,680
)
Total liabilities and stockholders' equity
 
$
668,113
 
 
$
651,278
 
  
The accompanying notes are an integral part of these financial statements
 
 
 
  
1
  
  
LOGIQ INC.
 
C
onsolidated Statements of Operations
 
 
 
 
For the three months ended March 31,
 
 
 
2024
 
 
2023
 
 
 
(Unaudited)
 
 
(Unaudited)
 
Service Revenue
 
$
-
 
 
$
3,537,527
 
Cost of Service
 
 
-
 
 
 
3,252,244
 
Gross Profit
 
 
-
 
 
 
285,283
 
Operating Expenses
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
-
 
 
 
419,369
 
General and administrative
 
 
665,029
 
 
 
12,164,647
 
Sales and marketing
 
 
-
 
 
 
110,000
 
Total Operating Expenses
 
 
665,029
 
 
 
12,694,016
 
(Loss) from Operations
 
 
(665,029
)
 
 
(12,408,733
)
Other (Expenses)/Income, net
 
 
-
 
 
 
(39,767
)
Net (Loss) before income tax
 
 
(665,029
)
 
 
(12,448,500
)
Income tax (Corporate tax)
 
 
-
 
 
 
-
 
Net (Loss)
 
 
$
(665,029
)
 
 
$
(12,448,500
)
Net (Loss) profit per common share - basic and fully diluted:
 
 
(0.0043
)
 
 
(0.1866
)
Weighted average number of basic and fully diluted common shares outstanding
 
 
153,489,509
 
 
 
66,721,809
 
  
The accompanying notes are an integral part of these financial statements.
 
 
 
  
2
  
  
LOGIQ INC.
 
C
onsolidated Statements of Cash Flows
 
 
 
 
For the three months ended March 31,
 
 
 
2024
 
 
2023
 
 
 
(Unaudited)
 
 
(Unaudited)
 
OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
Net loss
 
$
(665,029
)
 
$
(12,448,500
)
Adjustments to reconciled net loss to net cash used by operating activities:
 
 
 
 
 
 
 
 
Depreciation of property, plant, and equipment
 
 
-
 
 
 
11,641
 
Amortization of intangible assets
 
 
-
 
 
 
407,728
 
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
Accounts receivable
 
 
-
 
 
 
1,383,457
 
Prepayments, deposit and other receivables
 
 
5,226
 
 
 
(48,669
)
Accounts payable
 
 
108,316
 
 
 
(2,180,726
)
Accruals
 
 
18,000
 
 
 
(175,769
)
Operating lease
 
 
-
 
 
 
31,150
 
Net cash (used in) operating activities
 
 
(533,487
)
 
 
(13,019,688
)
INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
Amount due from related party
 
 
12,000
 
 
 
(597,385
)
Net cash provided by (used in) investing activities
 
 
12,000
 
 
 
(597,385
)
FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
Proceeds from shares to be issued
 
 
48,990
 
 
 
(260,220
)
Proceeds from stock issuance, net of expenses
 
 
506,557
 
 
 
14,156,150
 
Net cash provided by financing activities
 
 
555,547
 
 
 
13,895,930
 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
 
 
34,060
 
 
 
278,857
 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD
 
 
16,858
 
 
 
472,206
 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD
 
$
50,918
 
 
$
751,063
 
NON-CASH TRANSACTION
 
 
 
 
 
 
 
 
Issuance of shares for services received
 
$
496,557
 
 
$
10,781,703
 
The accompanying notes are an integral part of these financial statements
 
 
 
  
3
  
 
 
LOGIQ INC.
 
C
onsolidated Statements of Stockholders’ Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
Subscriptions
 
 
 
 
 
 
 
 
 
Common
 
 
 
 
 
Additional
 
 
received/Capital
 
 
Accumulated
 
 
Stockholders’
 
 
 
Stock
 
 
Amount
 
 
paid-in capital
 
 
reserves
 
 
(Deficit)
 
 
(Deficit)/Equity
 
Balance December 31, 2023
 
 
143,855,621
 
 
$
14,386
 
 
$
109,364,314
 
 
$
22,029,969
 
 
$
(131,809,349
)
 
$
(400,680
)
Issuance of shares for proceeds
 
 
19,931,130
 
 
 
1,993
 
 
 
504,564
 
 
 
-
 
 
 
-
 
 
 
506,557
 
Net loss for the period
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(665,029
)
 
 
(665,029
)
Balance March 31, 2024
 
 
163,786,751
 
 
 
16,379
 
 
 
109,868,878
 
 
 
22,029,969
 
 
 
(132,474,378
)
 
 
(559,152
)
 
 
 
 
 
 
 
 
 
 
 
 
Subscriptions
 
 
 
 
 
 
 
 
 
Common
 
 
 
 
 
Additional
 
 
received/Capital
 
 
Accumulated
 
 
Stockholders’
 
 
 
Stock
 
 
Amount
 
 
paid-in capital
 
 
reserves
 
 
(Deficit)
 
 
(Deficit)/Equity
 
Balance December 31, 2022
 
 
55,118,520
 
 
$
5,512
 
 
$
94,829,417
 
 
$
24,532,194
 
 
$
(111,713,122
)
 
$
7,654,001
 
Issuance of shares for proceeds
 
 
19,278,526
 
 
 
1,928
 
 
 
11,064,408
 
 
 
3,089,814
 
 
 
-
 
 
 
14,156,150
 
Net loss for the period
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
(12,448,500
)
 
 
(12,448,500
)
Balance March 31, 2023
 
 
74,397,046
 
 
 
7,440
 
 
 
105,893,825
 
 
 
27,622,008
 
 
 
(124,161,622
)
 
 
9,361,651
 
  
The accompanying notes are an integral part of these financial statements
 
 
 
  
4
 
 
  
N
OTES TO UNAUDITED CONDENSED
 
CONSOLIDATED FINANCIAL STATEMENTS
 
 
 
NOTE 1 – ORGANIZATION AND BUSINESS DESCRIPTION
 
 
 
Corporate Information
 
Logiq, Inc., is a Delaware corporation that was incorporated in 2004. Logiq is headquartered in New York, with offices in New York City. The Company’s common stock is quoted on the OTC Markets under the symbol “LGIQ.
 
 
 
Business Overview
 
 
 
Until November 2, 2023 the Company offered solutions that help small-to-medium-sized businesses (“SMBs”) to provide access to and reduce transaction friction of ecommerce for their clients. The Company’s solutions are provided through “DataLogiq” business, a digital marketing analytics business unit that offers proprietary data management, audience targeting and other digital marketing services that improve an SMB’s discovery and branding within the vast ecommerce landscape. 
  
The Company, through its DataLogiq platform offers online marketing solutions on a performance marketing and self-serve, Software as a Service (“SaaS”) basis. The Company provides its digital marketing to SMBs in a wide variety of industry sectors. The Company believe that SMBs can increase their sales, reach more customers, and promote their products and services using our affordable and cost-effective solutions. The Company recognizes revenue on our SaaS platform when provisioning services for their marketing campaigns. They also recognize revenue on CPL and other metrics for engagements undertaken on a performance marketing basis. 
 
 
The Company continues to expand its portfolio of offerings and the industries they serve:
 
 
 
·
In January 2020, the Company completed the acquisition of substantially all of the assets of Push Holdings, Inc., headquartered in Minneapolis, Minnesota. This acquired business, which the Company has rebranded as its DataLogiq division, operates a consumer data management platform powered by lead generation, online marketing, and multichannel reengagement strategies through its owned and operated brands. DataLogiq has developed a proprietary data management platform and integrated with several third-party service providers to optimize the return on its marketing efforts. DataLogiq focuses on consumer engagement and enrichment to maximize its return on acquisition through repeat monetization of each consumer. DataLogiq also licenses its software technology and provides managed technology services to various other e-commerce companies. DataLogiq is located in Minneapolis, Minnesota, USA.
 
 
·
On November 2, 2020, the Company completed the acquisition of Fixel AI Inc., thereby acquiring its self-serve MarTech Audience Targeting platform as a further expansion of its DataLogiq product suite.
 
 
·
On March 29, 2021, the Company completed the acquisition of Rebel AI, Inc., thereby acquiring its “The Rebel AI” advertising platform as a further expansion of its DataLogiq product suite.
 
On December 15, 2021, the Company entered into various agreements with GoLogiq, Inc. (then known as Lovarra), a Nevada corporation (“GoLogiq”) and a public reporting company that, at the time, was a majority owned subsidiary of the Company, pursuant to which the Company agreed to transfer its AppLogiq business to GoLogiq, subject to customary conditions and approvals and completion of requisite financial statement audits (the “Separation”). GoLogiq is a fully reporting U.S. public company. In connection with the Separation, the Company announced that it intended to distribute, on a pro rata basis, 100% of the Company’s ownership interests in GoLogiq to the Company’s shareholders of record as of December 30, 2021 (the “Record Date”) (the “Distribution,” and collectively with the “Separation,” the “Spin Off”), which Distribution of said shares was expected to occur approximately six months from completion of the Separation (the “Distribution Date”), subject to customary conditions and approvals.
 
 
 
On January 27, 2022, the Company completed the transfer of its AppLogiq business to GoLogiq. In connection with the completion of the transfer of AppLogiq to GoLogiq, GoLogiq issued 26,350,756 shares of its common stock to the Company (the “GoLogiq Shares”). The Company held the GoLogiq Shares until it distributed 100% of the GoLogiq Shares to the Company’s stockholders of record as of December 30, 2021 on a 1-for-1 basis (i.e. for every 1 share of Logiq held on December 30, 2021, the holder thereof will receive 1 share of Lovarra) upon completion of the Distribution.
 
 
 
On July 27, 2022, the Company completed the Distribution and Spin Off. As a result, the Company no longer has a direct equity ownership of GoLogiq. 
 
As of Mar 31, 2024, the Company controlled, through one of its subsidiaries, approximately 7.6% of the GoLogiq’s issued and outstanding shares of common stock. 
 
 
5
 
 

DataLogiq Spin-off
 
 
 
On September 9,