LOGIQ, INC. [LGIQ] Filings

10-Q 1 lgiq-20230930.htm FORM 10-Q LOGIQ, INC

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 

September 30, 2023

☐

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		(I.R.S. Employer
incorporation or organization)		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



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



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



As of November 10, 2023, the issuer had 147,005,621

shares of common stock issued and outstanding.

LOGIQ INC.

QUARTERLY REPORT ON FORM 10-Q

September 30, 2023

PART I – FINANCIAL INFORMATION		1

Item 1.	Financial Statements	1
	Unaudited Condensed Consolidated Balance Sheets as of September 30, 2023 and Audited Condensed Balance sheet as of December 31, 2022	1
	Unaudited Condensed Consolidated Statements of Operations for the three months and nine months ended September 30, 2023 and 2022	2
	Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022	3
	Unaudited Condensed Consolidated Statement of Stockholder’s Equity for the nine months ended September 30, 2023 and 2022	4
	Notes to Unaudited Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	37
Item 4.	Controls and Procedures	37

PART II – OTHER INFORMATION		38

Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3.	Defaults Upon Senior Securities	39
Item 4.	Mine Safety Disclosures	39
Item 5.	Other Information	39
Item 6.	Exhibits	40

SIGNATURES		41

PART 1 - FINANCIAL INFORMATION

ITEM 1. Financial Statements

LOGIQ INC.

Consolidated Balance Sheets

	September 30			December 31
	2023			2022
	(Unaudited)			(Audited)
ASSETS
Non-current assets
Intangible assets, net		5,622,156			7,119,111
Property and equipment, net		53,052			85,430
Goodwill		5,577,926			5,577,926
Total non-current assets		11,253,134			12,782,467

Current assets
Accounts receivable		595,323			1,649,632
Right to use assets - operating lease		-			58,122
Prepayment, deposit and other receivables		84,224			221,591
Amount due from related party		482,420			-
Cash and cash equivalents		392,853			472,206
Total current assets		1,554,820			2,401,551
Total assets	$	12,807,954		$	15,184,018

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable		2,943,738			5,073,315
Accruals		2,553,856			2,169,893
Lease liability - operating lease		-			16,589
Deposits received for share to be issued		-			260,220
Total current liabilities		5,497,594			7,520,017

Non-Current Liabilities
Other loan		10,000			10,000
Total non-current liabilities		10,000			10,000
Total liabilities	$	5,507,594		$	7,530,017

STOCKHOLDERS' EQUITY
Common stock, $0.0001 par value, 250,000,000 shares authorized, 129,379,314 and 55,118,520 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively		12,938			5,512
Additional paid-in capital		110,405,098			94,829,417
Capital reserves		48,243,604			44,232,194
Accumulated deficit brought forward		(151,361,280	)		(131,413,122	)
Total stockholder's equity		7,300,360			7,654,001
Total liabilities and stockholders' equity	$	12,807,954		$	15,184,018

The accompanying notes are an integral part of these financial statements

LOGIQ INC.

Consolidated Statements of Operations

	For the three months ended September 30,						For the nine months ended September 30,
	2023			2022			2023			2022
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

Service Revenue	$	3,265,674		$	4,100,373		$	11,663,762		$	17,155,733
Cost of Service		3,207,706			2,792,499			10,790,605			11,823,582
Gross Profit		57,968			1,307,874			873,157			5,332,151

Operating Expenses
Depreciation and amortization		689,318			1,021,676			1,529,331			3,083,536
General and administrative		3,256,702			7,265,372			18,945,206			16,504,135
Sales and marketing		-			394,628			214,715			1,266,029
Research and development		-			321,000			-			2,617,178
Total Operating Expenses		3,946,020			9,002,676			20,689,252			23,470,878

(Loss) from Operations		(3,888,052	)		(7,694,802	)		(19,816,095	)		(18,138,727	)

Other (Expenses)/Income, net		(46,391	)		3			(132,063	)		2,563

Net (Loss) before income tax		(3,934,443	)		(7,694,799	)		(19,948,158	)		(18,136,164	)
Income tax (Corporate tax)		-			-			-			-
Net (Loss)	$	(3,934,443	)	$	(7,694,799	)	$	(19,948,158	)	$	(18,136,164	)

Net (Loss) profit per common share - basic and fully diluted:		(0.0387	)		(0.2221	)		(0.2318	)		(0.5805	)

Weighted average number of basic and fully diluted common shares outstanding		101,745,947			34,645,067			86,068,463			31,241,330

The accompanying notes are an integral part of these financial statements.

LOGIQ INC.

Consolidated Statements of Cash Flows

	For the nine months ended September 30,
	2023			2022
	(Unaudited)			(Unaudited)
OPERATING ACTIVITIES:
Net loss	$	(19,948,158	)	$	(18,136,164	)
Adjustments to reconciled net loss to net cash used by operating activities:
Depreciation of property, plant, and equipment		32,378			39,141
Amortization of intangible assets		1,496,955			3,044,395
Changes in operating assets and liabilities:
Accounts receivable		1,054,309			1,010,137
Prepayments, deposit and other receivables		137,367			99,428
Accounts payable		(2,129,577	)		1,488,965
Accruals		383,963			1,486,482
Operating lease		41,533			-
Deferred revenue		-			(9,795	)
Net cash (used in) operating activities		(18,931,230	)		(10,977,411	)

INVESTING ACTIVITIES:
Amount due from associate		-			7,208,700
Amount due from related party		(482,420	)		-
Financial assets held for resale		-			681
Net cash provided by (used in) investing activities		(482,420	)		7,209,381

FINANCING ACTIVITIES:
Proceeds from shares to be issued		(260,220	)		(212,778	)
Issuance of shares for services and cash received , net of expenses		19,594,517			2,782,821
Net cash provided by (used in) financing activities		19,334,297			2,570,043

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(79,353	)		(1,197,987	)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD		472,206			1,586,265

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	392,853		$	388,278

NON-CASH TRANSACTION
Issuance of shares for services received	$	14,135,579		$	5,969,804

The accompanying notes are an integral part of these financial statements

LOGIQ INC.

Consolidated Statements of Stockholders’ Equity


					Additional		Subscriptions
	Common				paid-in		received/Capital		Accumulated			Stockholders’
	Stock *		Amount		capital		reserves		(Deficit)			(Deficit)/Equity
Balance December 31, 2022		55,118,520	$	5,512	$	94,829,417	$	44,232,194	$	(131,413,122	)	$	7,654,001
Issuance of shares for proceeds		19,278,526		1,928		11,064,408		3,089,814		-			14,156,150
Cancellation of shares for proceeds		-		-		-		-		-			-
Net loss for the period		-		-		-		-		(12,448,500	)		(12,448,500	)
Balance March 31, 2023		74,397,046		7,440		105,893,825		47,322,008		(143,861,622	)		9,361,651
Issuance of shares for proceeds		21,451,168		2,145		2,310,606		516,688		-			2,829,439
Cancellation of shares for proceeds		-		-		-		-		-			-
Net loss for the period		-		-		-		-		(3,565,215	)		(3,565,215	)
Balance June 30, 2023		95,848,214		9,585		108,204,431		47,838,696		(147,426,837	)		8,625,875
Issuance of shares for proceeds		33,531,100		3,353		2,200,667		404,908		-			2,608,928
Cancellation of shares for proceeds		-		-		-		-		-			-
Net loss for the period		-		-		-		-		(3,934,443	)		(3,934,443	)
Balance September 30, 2023		129,379,314		12,938		110,405,098		48,243,604

LOGIQ, INC. [LGIQ] Filings
10-Q	[2023-11-14]
10-Q	[2023-08-21]
10-Q	[2023-05-22]
10-K	[2023-05-08]
10-Q	[2022-11-14]
10-Q	[2022-08-15]
S-1	[2022-07-18]
10-Q	[2022-05-16]
10-K	[2022-04-01]
10-Q	[2021-11-15]
10-Q	[2021-08-16]
10-Q	[2021-05-17]
10-K	[2021-03-31]
10-Q	[2020-11-16]
10-Q	[2020-08-14]
10-Q	[2020-05-15]
10-K	[2020-03-30]
10-Q	[2019-11-14]
10-Q	[2019-08-14]
10-Q	[2019-05-15]
10-K	[2019-04-15]
S-1	[2018-12-17]
10-Q	[2018-11-14]
10-Q	[2018-08-14]
10-Q	[2018-05-15]
10-K	[2018-04-17]
10-Q	[2017-11-14]
10-Q	[2017-08-21]
10-Q	[2017-05-15]
10-K	[2017-03-31]
10-Q	[2016-11-14]
10-Q	[2016-08-12]
10-Q	[2016-05-23]
10-K	[2016-04-14]
10-Q	[2015-11-23]
10-Q	[2015-08-11]
10-Q	[2015-05-20]
10-K	[2015-04-15]
10-Q	[2014-11-19]
10-Q	[2014-08-12]
10-Q	[2014-05-07]
10-K	[2014-03-27]
10-Q	[2013-11-08]
10-Q	[2013-08-09]
10-Q	[2013-05-10]
10-K	[2013-03-28]
10-Q	[2012-10-22]
10-Q	[2012-08-08]
10-Q	[2012-05-09]
10-K	[2012-03-27]