Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 0-28963 | |
Entity Registrant Name | STRATEGIC ACQUISITIONS, INC. | |
Entity Central Index Key | 0000847942 | |
Entity Tax Identification Number | 13-3506506 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 51 JFK Parkway | |
Entity Address, Address Line Two | Suite 135 | |
Entity Address, City or Town | Short Hills | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07078 | |
City Area Code | 908 | |
Local Phone Number | 266-0541 | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Trading Symbol | STQN | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,675,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash | $ 121,717 | $ 241,727 |
Collateral receivable due from lender | 2,158,254 | 2,158,254 |
Loan receivable | 1,374,691 | 1,374,691 |
Accrued interest receivable | 11,456 | 11,456 |
Prepaid expenses | 3,446 | |
Deferred income tax assets | 266,798 | |
Total assets | 3,936,362 | 3,786,128 |
Liabilities | ||
Accounts payable and accrued expenses | 10,240 | 30,055 |
Due to related party (noninterest bearing, due on demand) | 2,500 | 15,000 |
Note payable, net of unamortized origination fee of $7,232 and $10,704 | 1,381,344 | 1,377,872 |
Digital asset collateral due to customer | 3,047,582 | 1,653,100 |
Deferred income tax liability | 101,018 | |
Total liabilities | 4,441,666 | 3,177,045 |
Shareholders’ Equity (Deficit) | ||
Common stock, $$0.001 par value; 50,000,000 shares authorized; 6,675,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022 | 6,675 | 6,675 |
Additional paid-in capital | 353,736 | 353,736 |
Retained earnings (accumulated deficit) | (865,715) | 248,672 |
Total shareholders’ equity (deficit) | (505,304) | 609,083 |
Total liabilities and shareholders’ equity (deficit) | $ 3,936,362 | $ 3,786,128 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Debt Instrument, Unamortized Discount | $ 7,232 | $ 10,704 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 6,675,000 | 6,675,000 |
Common stock, shares outstanding | 6,675,000 | 6,675,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | |
Revenues | ||||
Loan administrative service fees | $ 3,950 | |||
Interest income | 13,747 | 27,494 | ||
Total revenues | 13,747 | 31,444 | ||
Operating expenses | ||||
Selling, general and administrative expenses | 33,053 | 10,800 | 60,800 | 98,337 |
Total operating expenses | 33,053 | 10,800 | 60,800 | 98,337 |
Loss from operations | (19,306) | (10,800) | (60,800) | (66,893) |
Other expense, net | ||||
Fair value adjustment on repledged collateral | (198,310) | (1,394,482) | ||
Interest expense | (8,678) | (17,357) | ||
Amortization of loan origination fee | (1,735) | (3,471) | ||
Total other expense, net | (208,723) | (1,415,310) | ||
Loss before income taxes benefit | (228,029) | (10,800) | (60,800) | (1,482,203) |
Income taxes benefit | (59,493) | (3,405) | (19,169) | (367,816) |
Net loss | $ (168,536) | $ (7,395) | $ (41,631) | $ (1,114,387) |
Net loss per share - basic | $ (0.03) | $ 0 | $ (0.01) | $ (0.17) |
Net loss per share - diluted | $ (0.03) | $ 0 | $ (0.01) | $ (0.17) |
Weighted average shares outstanding - basic | 6,675,000 | 3,960,000 | 3,960,000 | 6,675,000 |
Weighted average shares outstanding - diluted | 6,675,000 | 3,960,000 | 3,960,000 | 6,675,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total | Subscription Receivable [Member] |
Beginning balance, value at Mar. 15, 2022 | |||||
Beginning balance, shares at Mar. 15, 2022 | |||||
Net loss | (34,236) | (34,236) | |||
Subscription to shares of Exworth Union Inc common stock (equivalent to shares of Strategic Acquisitions Inc. common stock) by Exworth Management LLC | $ 3,600 | (3,500) | (100) | ||
Subscription to shares of Exworth Union Inc common stock (equivalent to shares of Strategic Acquisitions Inc. common stock) by Exworth Management LLC, shares | 3,600,000 | ||||
Ending balance, value at Mar. 31, 2022 | $ 3,600 | (3,500) | (34,236) | (34,236) | (100) |
Ending balance, shares at Mar. 31, 2022 | 3,600,000 | ||||
Beginning balance, value at Mar. 15, 2022 | |||||
Beginning balance, shares at Mar. 15, 2022 | |||||
Net loss | (41,631) | ||||
Ending balance, value at Jun. 30, 2022 | $ 3,960 | 346,140 | (41,631) | 308,469 | |
Ending balance, shares at Jun. 30, 2022 | 3,960,000 | ||||
Beginning balance, value at Mar. 31, 2022 | $ 3,600 | (3,500) | (34,236) | (34,236) | (100) |
Beginning balance, shares at Mar. 31, 2022 | 3,600,000 | ||||
Net loss | (7,395) | (7,395) | |||
Subscription to shares of Exworth Union Inc common stock (equivalent to shares of Strategic Acquisitions Inc. common stock) by Exworth Management LLC | $ 360 | 349,640 | 350,100 | 100 | |
Subscription to shares of Exworth Union Inc common stock (equivalent to shares of Strategic Acquisitions Inc. common stock) by Exworth Management LLC, shares | 360,000 | ||||
Ending balance, value at Jun. 30, 2022 | $ 3,960 | 346,140 | (41,631) | 308,469 | |
Ending balance, shares at Jun. 30, 2022 | 3,960,000 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 6,675 | 353,736 | 248,672 | 609,083 | |
Beginning balance, shares at Dec. 31, 2022 | 6,675,000 | ||||
Net loss | (945,851) | (945,851) | |||
Ending balance, value at Mar. 31, 2023 | $ 6,675 | 353,736 | (697,179) | (336,768) | |
Ending balance, shares at Mar. 31, 2023 | 6,675,000 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 6,675 | 353,736 | 248,672 | 609,083 | |
Beginning balance, shares at Dec. 31, 2022 | 6,675,000 | ||||
Net loss | (1,114,387) | ||||
Ending balance, value at Jun. 30, 2023 | $ 6,675 | 353,736 | (865,715) | (505,304) | |
Ending balance, shares at Jun. 30, 2023 | 6,675,000 | ||||
Beginning balance, value at Mar. 31, 2023 | $ 6,675 | 353,736 | (697,179) | (336,768) | |
Beginning balance, shares at Mar. 31, 2023 | 6,675,000 | ||||
Net loss | (168,536) | (168,536) | |||
Ending balance, value at Jun. 30, 2023 | $ 6,675 | $ 353,736 | $ (865,715) | $ (505,304) | |
Ending balance, shares at Jun. 30, 2023 | 6,675,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) (Parenthetical) - Common Stock [Member] - shares | 1 Months Ended | 3 Months Ended |
Mar. 31, 2022 | Jun. 30, 2022 | |
Stock issued during period shares acquisition | 3,600,000 | 360,000 |
Parent Company [Member] | ||
Stock issued during period shares purchase of assets | 3,600,000 | 360,000 |
Exworth Union Inc [Member] | ||
Stock issued during period shares acquisition | 1,000 | 100 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||||
Net loss | $ (168,536) | $ (7,395) | $ (41,631) | $ (1,114,387) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Fair value adjustment on repledged collateral | 198,310 | 1,394,482 | ||
Deferred income tax benefit | (19,169) | (367,816) | ||
Amortization of loan origination fees | 1,735 | 3,471 | ||
Change in operating assets and liabilities: | ||||
Prepaid expenses | (3,446) | |||
Accounts payable and accrued expenses | (19,814) | |||
Net cash used in operating activities | (60,800) | (107,510) | ||
Cash flows from financing activities: | ||||
Shares subscription | 350,100 | |||
Proceeds from (repayment to) related party | 710,800 | (12,500) | ||
Net cash provided by financing activities | 1,060,900 | (12,500) | ||
Net change in cash and cash equivalents | 1,000,100 | (120,010) | ||
Cash,beginning of period | 241,727 | |||
Cash, end of period | $ 121,717 | $ 1,000,100 | 1,000,100 | 121,717 |
Supplemental disclosure of cash flow information: | ||||
Interest | 26,036 | |||
Income taxes |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | Note 1 Organization and Nature of Operations Organization Strategic Acquisitions, Inc. (“STQN”) was organized January 27, 1989 under the laws of the State of Nevada. On November 29, 2022, STQN incorporated a subsidiary, STQN Sub, Inc. (“STQN Sub”). Since inception to December 22, 2022, STQN did not engage in any business activities other than organizational efforts, the sale of stock, and the evaluation of potential acquisition targets with active business operations. Effective December 22, 2022, STQN completed a reverse acquisition of Exworth Union Inc (“Union”) (the “Transaction”) through a share exchange with the two shareholders of Union. To complete the Transaction, STQN issued a total of 3,960,000 59.3% 1,100 100% 91% 74% The Transaction was accounted for as a “reverse recapitalization” in accordance with accounting principles generally accepted in the United States (“GAAP”). Under this method of accounting, STQN was treated as the “acquired” company for financial reporting purposes and Union was determined to be the accounting acquirer based on the terms of the Transaction and other factors including: (i) Union’s stockholders having a majority of the voting power of the combined company and (ii) the operations of Union comprising all of the ongoing operations of the combined entity. Operations prior to the Transaction are those of Union. Subsequent to the Transaction, the Company conducts its operations through Union, a Delaware corporation, which was formed on March 16, 2022. Union provides loans that are collateralized by digital assets such as Bitcoin and will accept as collateral other types of alternative assets such as eCommerce accounts receivable, recursive payments of software as service (SAAS) subscriptions, IP and copyrights. STQN and Union are collectively referred to as the “Company”. Nature of Operations Loans made by the Company are collateralized with digital assets of such kind and in such amounts as the Company determines from time to time to be acceptable. As of June 30, 2023 and December 31, 2022, the only digital asset the Company accepted as collateral was Bitcoin. The Company’s target markets are individuals and commercial enterprises that hold digital assets and are seeking liquidity without selling their digital assets, with limited or no options to obtain a credit line or business loans from conventional financial institutions. The Company provides term loans, up to two years, to these individuals and commercial enterprises. The Company originates U.S. dollar denominated loans and offers loans to both individual and business borrowers who own digital assets and desire to borrow against such digital assets rather than selling them. Borrowers that receive loans from the Company are required to transfer a specified value of digital assets to the Company to be held as collateral and security for the repayment of the loans. Upon maturity and repayment of a borrower’s loan, the digital asset collateral is returned to the borrower. Also, under the loan agreements with borrowers, the Company has the right to repledge collateral to secure transactions, including loans that the Company maintains with third parties for capital management purposes and market neutral trading strategies to generate investment returns. See Note 6 The Company also provides loan administration services to borrowers and lenders. The Company is responsible |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) within its Accounting Standards Codification (“ASC”) and under the rules and regulations of the SEC for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair presentation of the Company’s balance sheet, results of operations and statements of cash flows for the periods presented. The unaudited interim condensed consolidated financial statements are not necessarily indicative of the results to be expected for the full year or any other period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s F orm Principles of consolidation These accompanying unaudited interim condensed consolidated financial statements include the financial statements of STQN and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove a majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. The most significant accounting estimates inherent in the preparation of the Company’s financial statements include calculations of the fair values of repledged borrowers’ digital asset collateral and the allowance for loan losses. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Federal Deposit Insurance Corporation (“FDIC”) insures accounts up to $ 250,000 no Borrower Collateral and Custody Assets The Company requires loans to have certain collateral levels at origination and throughout the term of the loan. The loan agreement with each borrower specifies that the borrower transfers and assigns to the Company the collateral together with all rights and interests attached or accruing thereto (including without limitation accrued dividends and distributions declared, made or paid after the relevant date of delivery). Borrowers deposit the collateral into a 3 rd not not When a transfer of digital assets does not 310, Receivables 310” Allowance for Loan Losses FASB ASC 310, Receivables 310” 450 20, Contingencies Loss Contingencies 450” The process for determining the amount of the allowance requires subjective and complex judgments about the future, including forecasts of economic or market conditions that might impair the ability of borrowers to repay their loans. Changes in economic conditions affecting borrowers, revisions to accounting rules and related guidance, new qualitative or quantitative information about existing loans, identification of additional problem loans, changes in the size or composition of a company’s finance receivables and loan portfolio, changes to a company’s loss estimation techniques including consideration of forecasted economic assumptions, and other factors, both within and outside of control, may Revenue recognition Borrower Fee The Company offers U.S. Dollar loans collateralized by digital assets to a broad range of customers and generates revenue from interest income and fees earned on loans. Revenue derived from borrower fees on loans is outside the scope of ASC 606, Revenue from Contracts with Customers 606” may Loan administration The Company provides loan admin istration (see Note 9) consist of a Income Taxes The Company follows Accounting Standards Codification subtopic 740, Income Taxes (“ASC 740”), which requires the Company to use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities at currently enacted tax rates. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. ASC 740-10, Accounting for Uncertainty in Income Taxes, defines uncertainty in income taxes and the evaluation of a tax position as a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that tax position. The second step is to measure a tax position that meets the more likely than not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more likely than not recognition threshold should be recognized in the first subsequent period in which the threshold is met. The Company will continue to monitor its tax positions in the applicable jurisdictions and adjust this liability accordingly. The Company has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no uncertain tax positions related to federal and state income taxes existed as of June 30, 2023 and December 31, 2022. Earnings per Share Basic net income (loss) per share is calculated based upon the weighted average number of shares of common stock outstanding during the relevant period. Diluted net income (loss) per share is calculated based upon the weighted average number of shares of common stock outstanding and dilutive securities (such as stock options, warrants and convertible debt) outstanding during the relevant period. Diluted securities having an anti-dilutive effect on dilutive net income (loss) per share are excluded from the calculation. Recently Issued Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financial statements properly reflect the change. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, that changes the impairment model for most financial assets and certain other instruments. For receivables, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of the allowance for losses. In addition, an entity will have to disclose significantly more information about allowances and credit quality indicators. The new standard is effective for the Company for fiscal years beginning after December 15, 2022. The adoption of ASU 2019-12 is not expected to have a significant effect on the Company’s financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes, which is part of the FASB’s initiative to reduce complexity in accounting standards. The proposed ASU eliminates certain exceptions to the general principles of ASC 740, Income Taxes, and simplifies income tax accounting in several areas. The implementation of this new standard applies to annual reporting periods beginning after December 15, 2021, and interim periods with fiscal years beginning after December 15, 2022, for Emerging Growth Companies. The adoption of ASU 2019-12 did not have a significant effect on the Company’s financial statements. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 3 Fair Value Measurement Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability (i.e., the ‘exit price’) in an orderly transaction between market participants at the measurement date. GAAP utilizes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, these valuations do not entail a significant degree of judgment. Level 2 – Valuations based on quoted prices, other than those in Level 1, for identical assets or liabilities in markets that are not active or for similar assets and liabilities for which significant inputs are observable, either directly or indirectly. Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The Company’s financial instruments include cash and cash equivalents, accounts payable and accrued expenses, due to related party, note payable, and digital asset collateral due to customer. The fair values of cash and cash equivalents, accounts payable and accrued expenses, due to related party, and note payable approximate their stated amounts because of the short maturity of these financial instruments. The availability of valuation techniques and observable inputs can vary by investment. To the extent that valuations are based on sources that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair value estimates do not necessarily represent the amounts that may be ultimately realized by the Company. The following table presents the fair value hierarchy for those assets and liabilities the Company measured at fair value on a recurring basis: Schedule of Fair Value Measurement June 30, 2023 (unaudited) Fair Value Measurements Level 1 Level 2 Level 3 Liabilities Digital asset collateral due to customer $ - $ 3,047,582 $ - December 31, 2022 Fair Value Measurements Level 1 Level 2 Level 3 Liabilities Digital asset collateral due to customer $ - $ 1,653,100 $ - The Company determined the fair value per Bitcoin to be $ 30,476 16,531 |
Collateralized Loans Receivable
Collateralized Loans Receivable and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Collateralized Loans Receivable and Allowance for Loan Losses | Note 4 Collateralized Loans Receivable and Allowance for Loan Losses As of June 30, 2023 and December 31, 2022, the Company had one loan receivable in the principal amount of $ 1,374,691 4% At the time of origination, loans are secured and over-collateralized with digital assets the Company determines from time to time to be acceptable collateral. As of June 30, 2023 and December 31, 2022, the only digital asset the Company accepted as collateral was Bitcoin. Borrowers make principal payments at maturity and make interest payments quarterly. The interest rate is set by the Company and is impacted by loan terms and amounts. Once a loan application is approved, a loan is created when a borrower sends collateral to the Company’s collateral wallet (the “The Company’s Custody Wallet”) and funds are disbursed to the borrower’s bank account. During the term of the loan, the Company may repledge a borrower’s collateral and move it out of the Company’s Custody Wallet. Total borrower collateral repledged of $ 3,047,582 1,653,100 2.00% , The Company does not recognize its digital asset-backed loans extended as sale transactions as defined by FASB ASC 860. 11,456 A margin call notice is triggered when the LTV exceeds 85% of the current collateral value at which time the Company notifies the borrower to post additional collateral or make a payment to cure the margin call to reduce the LTV to under 85% within 24 hours of notice (unless the LTV reverts back to 85% within 2 business days). Schedule of Loans Receivable Future Principal Payments Future Principal Payments As Of Receipt of Payments June 30, 2023 (unaudited) 0 to 12 months $ - 12 to 24 months 1,374,691 Total $ 1,374,691 The LTV ratio on the one loan receivable at June 30, 2023 and December 31, 2022 was 45% 83% On June 30, 2023 and December 31, 2022, the fair value of the collateral received to secure the loan receivable balance was $ 3,047,582 1,653,100 3,047,582 1,653,100 Allowance for Loan Losses An allowance for loan losses is established with respect to loans held for investment through periodic charges to the provision for loan losses. Loan losses are charged against the allowance for loan losses when management believes that the future collection of the principal of a loan is unlikely. To date, the Company does not not Management classifies loans into risk categories based on their original LTV and monitors the current LTV on a recurring basis. The allowance is subjective as it requires material estimates, including such factors as historical trends. Other qualitative factors considered may include items such as uncertainties in the digital asset market, changes in the composition of the Company’s lending portfolio, business conditions and emerging trends. Recovery of the carrying value of loans is dependent to a great extent on conditions that may be beyond the Company’s control. Although the Company has not experienced any losses on the portfolio to date, any combination of the previously described factors may affect its loan portfolio resulting in potential loan losses and could require an allowance for loan loss, which could impact future periods. As of June 30, 2023 and December 31, 2022, management has not liquidated any collateral and the Company has not incurred any losses on the outstanding portfolio. The Company also over collateralizes its loans with digital assets, which allow the Company to liquidate the pledged collateral for an amount at least equal to the principal owed. As of June 30, 2023 and December 31, 2022, the Company had one loan receivable and this loan had an 45% 83% no |
Collateral Receivable
Collateral Receivable | 6 Months Ended |
Jun. 30, 2023 | |
Collateral Receivable | |
Collateral Receivable | Note 5 Collateral Receivable Digital Asset Collateral Receivable In July 2022, the Company repledged its customer collateral by entering into a master loan agreement with a counterparty lender (see Note 6). In accordance with ASC 860, 198,310 1,394,482 2,158,254 3,047,582 1,653,100 |
Note Payable
Note Payable | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Note Payable | Note 6 Note Payable On July 14, 2022, the Company entered and executed a master loan agreement with a lender. The loan has a term of 24 2.5% 1,381,344 1,388,576 7,232 1,377,872 1,388,576 10,704 2,158,254 The following table summarizes the Company’s notes payable: Schedule of Notes Payable June 30, 2023 (unaudited) Currency Note Issued Note Balance as of June 30, 2023 Note Payable USD $ 1,388,576 $ - $ 1,388,576 December 31, 2022 Currency Note Issued Note Balance as of December 31, 2022 Note Payable USD $ 1,388,576 $ - $ 1,388,576 Schedule of Future Principal Repayments Amount 2023 $ - 2024 1,388,576 Total $ 1,388,576 |
Shareholders_ Equity
Shareholders’ Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders’ Equity | Note 7 Shareholders’ Equity On March 28, 2022 and April 3, 2022, Union issued a total of 1,000 0.10 100 On June 8, 2022, Union issued 100 3,500 350,000 Effective August 31, 2022, STQN issued a total of 150,000 1.20 On December 22, 2022, STQN completed a reverse acquisition transaction with the two shareholders of Union (See note 1). Exworth Management received 3,600,000 1,000 360,000 100 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 Income Taxes The components of the provision for (benefit from) income taxes are as follows: Schedule of Provision for (benefit from) Income Taxes For the six months ended (unaudited) From March 16, (unaudited) Current $ - $ - Deferred (367,816 ) (19,169 ) Total provision for (benefit from) income taxes $ (367,816 ) $ (19,169 ) Schedule of Reconciliation Statutory Effective Tax Rates For the six months ended (unaudited) From March 16, (unaudited) Computed “expected” tax expense (United States statutory rate) 21.00 % 21.00 % Increase (decrease) in tax expense resulting from: State tax expense, net of Federal benefit 8.74 % 10.53 % Change in valuation allowance (4.92 )% - % Effective rate 24.82 % 31.53 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred income tax assets and (liabilities) are as follows: Schedule of Deferred Income Tax Assets and Liabilities June 30, 2023 (unaudited) December 31, 2022 Deferred income tax assets: Net operating loss carryforwards $ 187,996 $ 164,054 Unrealized loss on repledged collateral fair value adjustment 266,798 - Less: Valuation allowance (187,996 ) (115,041 ) Total deferred income tax assets 266,798 49,013 Deferred income tax liabilities Unrealized gain on repledged collateral fair value adjustment - (150,031 ) Total deferred income tax liabilities - (150,031 ) Net deferred income tax asset (liability) $ 266,798 $ (101,018 ) In assessing the realization of deferred tax assets, management considers whether it is more likely than not For United States income tax purposes, STQN has a net operating loss carry forward of approximately $ 554,000 Union has a United States net operating loss carry forward of approximately $ 237,000 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9 – Related Party Transactions Schedule of Related Party Transactions For the three and six months ended, Name Relationship Nature June 30, 2023 (Unaudited) Exworth Global Inc. An entity controlled by Exworth Holdings Inc., a majority shareholder of the Company Loan administrative services fees $ 3,950 |
Risk and Uncertainties
Risk and Uncertainties | 6 Months Ended |
Jun. 30, 2023 | |
Risks and Uncertainties [Abstract] | |
Risk and Uncertainties | Note 10 – Risk and Uncertainties The Company’s investing activities expose it to various types of risk that are associated with the financial instruments and markets in which it invests. The significant types of financial risks to which the Company is exposed include, but are not limited to market risk, industry risk, liquidity risk, concentration risk, credit risk and digital asset risk. Certain aspects of those risks are addressed below: Concentration Risk One borrower represented 100% 100% One lender represented 100% 100% |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) within its Accounting Standards Codification (“ASC”) and under the rules and regulations of the SEC for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair presentation of the Company’s balance sheet, results of operations and statements of cash flows for the periods presented. The unaudited interim condensed consolidated financial statements are not necessarily indicative of the results to be expected for the full year or any other period. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s F orm |
Principles of consolidation | Principles of consolidation These accompanying unaudited interim condensed consolidated financial statements include the financial statements of STQN and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove a majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. The most significant accounting estimates inherent in the preparation of the Company’s financial statements include calculations of the fair values of repledged borrowers’ digital asset collateral and the allowance for loan losses. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Federal Deposit Insurance Corporation (“FDIC”) insures accounts up to $ 250,000 no |
Borrower Collateral and Custody Assets | Borrower Collateral and Custody Assets The Company requires loans to have certain collateral levels at origination and throughout the term of the loan. The loan agreement with each borrower specifies that the borrower transfers and assigns to the Company the collateral together with all rights and interests attached or accruing thereto (including without limitation accrued dividends and distributions declared, made or paid after the relevant date of delivery). Borrowers deposit the collateral into a 3 rd not not When a transfer of digital assets does not 310, Receivables 310” |
Allowance for Loan Losses | Allowance for Loan Losses FASB ASC 310, Receivables 310” 450 20, Contingencies Loss Contingencies 450” The process for determining the amount of the allowance requires subjective and complex judgments about the future, including forecasts of economic or market conditions that might impair the ability of borrowers to repay their loans. Changes in economic conditions affecting borrowers, revisions to accounting rules and related guidance, new qualitative or quantitative information about existing loans, identification of additional problem loans, changes in the size or composition of a company’s finance receivables and loan portfolio, changes to a company’s loss estimation techniques including consideration of forecasted economic assumptions, and other factors, both within and outside of control, may |
Revenue recognition | Revenue recognition Borrower Fee The Company offers U.S. Dollar loans collateralized by digital assets to a broad range of customers and generates revenue from interest income and fees earned on loans. Revenue derived from borrower fees on loans is outside the scope of ASC 606, Revenue from Contracts with Customers 606” may Loan administration The Company provides loan admin istration (see Note 9) consist of a |
Income Taxes | Income Taxes The Company follows Accounting Standards Codification subtopic 740, Income Taxes (“ASC 740”), which requires the Company to use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities at currently enacted tax rates. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. ASC 740-10, Accounting for Uncertainty in Income Taxes, defines uncertainty in income taxes and the evaluation of a tax position as a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that tax position. The second step is to measure a tax position that meets the more likely than not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more likely than not recognition threshold should be recognized in the first subsequent period in which the threshold is met. The Company will continue to monitor its tax positions in the applicable jurisdictions and adjust this liability accordingly. The Company has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no uncertain tax positions related to federal and state income taxes existed as of June 30, 2023 and December 31, 2022. |
Earnings per Share | Earnings per Share Basic net income (loss) per share is calculated based upon the weighted average number of shares of common stock outstanding during the relevant period. Diluted net income (loss) per share is calculated based upon the weighted average number of shares of common stock outstanding and dilutive securities (such as stock options, warrants and convertible debt) outstanding during the relevant period. Diluted securities having an anti-dilutive effect on dilutive net income (loss) per share are excluded from the calculation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financial statements properly reflect the change. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments, that changes the impairment model for most financial assets and certain other instruments. For receivables, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of the allowance for losses. In addition, an entity will have to disclose significantly more information about allowances and credit quality indicators. The new standard is effective for the Company for fiscal years beginning after December 15, 2022. The adoption of ASU 2019-12 is not expected to have a significant effect on the Company’s financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (ASC 740): Simplifying the Accounting for Income Taxes, which is part of the FASB’s initiative to reduce complexity in accounting standards. The proposed ASU eliminates certain exceptions to the general principles of ASC 740, Income Taxes, and simplifies income tax accounting in several areas. The implementation of this new standard applies to annual reporting periods beginning after December 15, 2021, and interim periods with fiscal years beginning after December 15, 2022, for Emerging Growth Companies. The adoption of ASU 2019-12 did not have a significant effect on the Company’s financial statements. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement | The following table presents the fair value hierarchy for those assets and liabilities the Company measured at fair value on a recurring basis: Schedule of Fair Value Measurement June 30, 2023 (unaudited) Fair Value Measurements Level 1 Level 2 Level 3 Liabilities Digital asset collateral due to customer $ - $ 3,047,582 $ - December 31, 2022 Fair Value Measurements Level 1 Level 2 Level 3 Liabilities Digital asset collateral due to customer $ - $ 1,653,100 $ - |
Collateralized Loans Receivab_2
Collateralized Loans Receivable and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Receivable Future Principal Payments | Schedule of Loans Receivable Future Principal Payments Future Principal Payments As Of Receipt of Payments June 30, 2023 (unaudited) 0 to 12 months $ - 12 to 24 months 1,374,691 Total $ 1,374,691 |
Note Payable (Tables)
Note Payable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | The following table summarizes the Company’s notes payable: Schedule of Notes Payable June 30, 2023 (unaudited) Currency Note Issued Note Balance as of June 30, 2023 Note Payable USD $ 1,388,576 $ - $ 1,388,576 December 31, 2022 Currency Note Issued Note Balance as of December 31, 2022 Note Payable USD $ 1,388,576 $ - $ 1,388,576 |
Schedule of Future Principal Repayments | Schedule of Future Principal Repayments Amount 2023 $ - 2024 1,388,576 Total $ 1,388,576 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for (benefit from) Income Taxes | The components of the provision for (benefit from) income taxes are as follows: Schedule of Provision for (benefit from) Income Taxes For the six months ended (unaudited) From March 16, (unaudited) Current $ - $ - Deferred (367,816 ) (19,169 ) Total provision for (benefit from) income taxes $ (367,816 ) $ (19,169 ) |
Schedule of Reconciliation Statutory Effective Tax Rates | Schedule of Reconciliation Statutory Effective Tax Rates For the six months ended (unaudited) From March 16, (unaudited) Computed “expected” tax expense (United States statutory rate) 21.00 % 21.00 % Increase (decrease) in tax expense resulting from: State tax expense, net of Federal benefit 8.74 % 10.53 % Change in valuation allowance (4.92 )% - % Effective rate 24.82 % 31.53 % |
Schedule of Deferred Income Tax Assets and Liabilities | Schedule of Deferred Income Tax Assets and Liabilities June 30, 2023 (unaudited) December 31, 2022 Deferred income tax assets: Net operating loss carryforwards $ 187,996 $ 164,054 Unrealized loss on repledged collateral fair value adjustment 266,798 - Less: Valuation allowance (187,996 ) (115,041 ) Total deferred income tax assets 266,798 49,013 Deferred income tax liabilities Unrealized gain on repledged collateral fair value adjustment - (150,031 ) Total deferred income tax liabilities - (150,031 ) Net deferred income tax asset (liability) $ 266,798 $ (101,018 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Schedule of Related Party Transactions For the three and six months ended, Name Relationship Nature June 30, 2023 (Unaudited) Exworth Global Inc. An entity controlled by Exworth Holdings Inc., a majority shareholder of the Company Loan administrative services fees $ 3,950 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details Narrative) | Dec. 22, 2022 shares |
Restructuring Cost and Reserve [Line Items] | |
Percentage of issued and outstanding common stock | 59.30% |
Exworth Management LLC [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Sale of stock percentage of ownership before transaction | 74% |
Exworth Union Inc [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Number of shares issued as a part of acquisition | 3,960,000 |
Exworth Union Inc [Member] | Exworth Management LLC [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Sale of stock percentage of ownership before transaction | 91% |
Exworth Union Inc [Member] | Two Shareholders [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Number of shares issued as a part of acquisition | 1,100 |
Percentage of issued and outstanding common stock | 100% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Cash, FDIC insured amount | $ 250,000 | |
Cash, FDIC uninsured amount | $ 0 | $ 0 |
Schedule of Fair Value Measurem
Schedule of Fair Value Measurement (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Digital asset collateral due to customer | $ 3,047,582 | $ 1,653,100 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Digital asset collateral due to customer | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Digital asset collateral due to customer | 3,047,582 | 1,653,100 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Digital asset collateral due to customer |
Fair Value Measurement (Details
Fair Value Measurement (Details Narrative) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Fair value of bitcoin | $ 30,476 | $ 16,531 |
Schedule of Loans Receivable Fu
Schedule of Loans Receivable Future Principal Payments (Details) | Jun. 30, 2023 USD ($) |
Receivables [Abstract] | |
0 to 12 months | |
12 to 24 months | 1,374,691 |
Total | $ 1,374,691 |
Collateralized Loans Receivab_3
Collateralized Loans Receivable and Allowance for Loan Losses (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Past Due [Line Items] | ||
Loan receivable | $ 1,374,691 | $ 1,374,691 |
Percentage of notes receivable interest | 4% | 4% |
Collateral due to customer | $ 3,047,582 | $ 1,653,100 |
Liquidation handling fee price percentage | 2% | |
Interest receivable on loans | $ 11,456 | $ 11,456 |
Description of current collateral value, borrower | A margin call notice is triggered when the LTV exceeds 85% of the current collateral value at which time the Company notifies the borrower to post additional collateral or make a payment to cure the margin call to reduce the LTV to under 85% within 24 hours of notice (unless the LTV reverts back to 85% within 2 business days). | |
Loan receivable percentage | 45% | 83% |
Allowance for loan losses | $ 0 | $ 0 |
Borrower Collateral [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Collateral due to customer | 3,047,582 | 1,653,100 |
Secure loan receivable | $ 3,047,582 | $ 1,653,100 |
Collateral Receivable (Details
Collateral Receivable (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Collateral Receivable | |||
Fair value adjustment, value | $ 198,310 | $ 1,394,482 | |
Digital assets collateral receivable | 2,158,254 | 2,158,254 | $ 2,158,254 |
Fair value of collateral | $ 3,047,582 | $ 3,047,582 | $ 1,653,100 |
Schedule of Notes Payable (Deta
Schedule of Notes Payable (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | ||
Note payable | $ 1,388,576 | |
Master Loan Agreement [Member] | ||
Short-Term Debt [Line Items] | ||
Note issued | 1,388,576 | $ 1,388,576 |
Notes payment | ||
Note payable | $ 1,388,576 | $ 1,388,576 |
Schedule of Future Principal Re
Schedule of Future Principal Repayments (Details) | Jun. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 | |
2024 | 1,388,576 |
Total | $ 1,388,576 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jul. 14, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | |||
Note payable, net | $ 1,388,576 | ||
Debt unamortized fee | 7,232 | $ 10,704 | |
Master Loan Agreement [Member] | |||
Short-Term Debt [Line Items] | |||
Debt term | 24 months | ||
Interest rate | 2.50% | ||
Net balance | 1,381,344 | 1,377,872 | |
Note payable, net | 1,388,576 | 1,388,576 | |
Debt unamortized fee | 7,232 | 10,704 | |
Collateral receivable | $ 2,158,254 | $ 2,158,254 |
Shareholders_ Equity (Details N
Shareholders’ Equity (Details Narrative) - USD ($) | Dec. 22, 2022 | Jun. 08, 2022 | Apr. 03, 2022 | Mar. 28, 2022 | Aug. 31, 2022 |
Three Directors [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Number of warrants, shares | 150,000 | ||||
Warrant per shares | $ 1.20 | ||||
World Class Global Technology PTE LTD [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Number of shares issued during period | 100 | ||||
Issue price | $ 3,500 | ||||
Total shares issued | $ 350,000 | ||||
Common Stock [Member] | Exworth Management LLC [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Number of shares issued during period | 3,600,000 | 1,000 | 1,000 | ||
Issue price | $ 0.10 | $ 0.10 | |||
Total shares issued | $ 100 | $ 100 | |||
Number of shares issued during exchange period | 1,000 | ||||
Common Stock [Member] | World Class Global Technology PTE LTD [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Number of shares issued during period | 360,000 | ||||
Number of shares issued during exchange period | 100 |
Schedule of Provision for (bene
Schedule of Provision for (benefit from) Income Taxes (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Current | ||||
Deferred | (19,169) | (367,816) | ||
Total provision for (benefit from) income taxes | $ (59,493) | $ (3,405) | $ (19,169) | $ (367,816) |
Schedule of Reconciliation Stat
Schedule of Reconciliation Statutory Effective Tax Rates (Details) | 4 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Computed “expected” tax expense (United States statutory rate) | 21% | 21% |
State tax expense, net of Federal benefit | 10.53% | 8.74% |
Change in valuation allowance | (4.92%) | |
Effective rate | 31.53% | 24.82% |
Schedule of Deferred Income Tax
Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 187,996 | $ 164,054 |
Unrealized loss on repledged collateral fair value adjustment | 266,798 | |
Less: Valuation allowance | (187,996) | (115,041) |
Total deferred income tax assets | 266,798 | 49,013 |
Deferred income tax liabilities | ||
Unrealized gain on repledged collateral fair value adjustment | (150,031) | |
Total deferred income tax liabilities | (150,031) | |
Net deferred income tax asset (liability) | $ 266,798 | |
Net deferred income tax liability | $ (101,018) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Operating loss carryforwards, limitations on use | a net operating loss carry forward of approximately $554,000 at June 30, 2023 (approximately $217,000 of which expires in varying amounts from 2023 to 2037). |
Operating loss carryforwards | $ 554,000 |
Exworth Union Inc [Member] | |
Operating loss carryforwards | $ 237,000 |
Schedule of Related Party Trans
Schedule of Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Exworth Global Inc [Member] | ||
Related Party Transaction [Line Items] | ||
Loan admin service income | $ 3,950 | $ 3,950 |
Risk and Uncertainties (Details
Risk and Uncertainties (Details Narrative) - Customer Concentration Risk [Member] | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Loan Receivable [Member] | One Borrower [Member] | |||
Concentration Risk [Line Items] | |||
Loans receivable | 100% | 100% | |
Interest Income [Member] | One Borrower [Member] | |||
Concentration Risk [Line Items] | |||
Loans receivable | 100% | ||
Notes Payable, Other Payables [Member] | One Lender [Member] | |||
Concentration Risk [Line Items] | |||
Loans receivable | 100% | 100% | |
Interest Expense [Member] | One Lender [Member] | |||
Concentration Risk [Line Items] | |||
Loans receivable | 100% |