Nukkleus Posts Mitigated Loss in Q1, Named in BT Prime Bankruptcy

Nukkleus Inc, which controls the retail FX brand FXDD, has reported its financials for the three months ending March 31, 2020. The listed company managed to mitigate its losses for the reported period compared to the first quarter of the prior fiscal year.

Over this period, Nukkleus saw its trading revenue unchanged from a year ago, coming in at $4.72 million in FY Q1 2020, which came from support services rendered to FXDD Malta. Revenue for both of the six months ended March 31, 2020 and 2019 was $9.6 million.

In terms of its net income, Nukkleus curbed its operating losses to a figure of $63,850 for the January-March quarter, which is better than the $230,901 it lost in the Q1 2019. Over a six-month interval, Nukkleus’ net loss was $109,151 during the period spanning October to March 2020 compared with $350,803 for the same period in 2019.

The company had incurred a 25 percent decrease in revenues in the prior fiscal year due to the amendment of its agreement with FXDD Malta, according to which the retail broker reduced services fees it pays from $2 million per month to $1.6 million.

Despite its losses, operating costs were pointed lower on a yearly basis, according to the company’s latest filing with the US Securities and Exchange Commission. The primary culprit for the decrease has been the decrease in the number of Nukkleus’ employees.

Meanwhile, the operating expenses the company incurred last quarter were reported at $68,853 relative to $78,019 in the previous year. Other general and administrative expenses were mainly third party and professional fees.

Nukkleus names in BT Prime bankruptcy

During the six-month period, the US-based boutique brokerage firm reported an unrealized loss of $17,888 on its cryptocurrency holdings whose fair value stands at $168,943 on September 30, 2019. It has previously lost $32,068 for the six months ended March 2019. During the first quarter of fiscal 2020, Nukkleus transferred all of its investment in digital currency to its affiliates through common ownership.

On April 16, 2020, the company was named as a defendant in the case related to the bankruptcy of Boston Prime and BT Prime, the Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term providers of Boston Technologies. In the amended complaint, BT Prime seeks to hold Nukkleus and its affiliates liable for all of the debts and liabilities stemming from its bankruptcy proceedings. BT Prime incurred huge losses as a result of unprecedented market volatility following SNB announcement to remove the euro-franc peg in 2015.

The troubled firm alleges that Nukkleus has no activity other than it does through collective business relationship with Forexware, Currency Mountain Holdings LLC, Forexware Malta Holdings Ltd., FXDIRECT, FXDD Malta and CMH. Based on this theory, BT Prime alleges that the company should be jointly liable for any liability attributable to other defendants

“The Company maintains that there is no basis in BT Prime’s claims against it and intends to vigorously defend against it, including by moving to dismiss it,” Nukkleus said

Looking at the rest of the filing, Nukkleus highlighted that it is currently seeking additional capital through private placements or public offerings of its securities. In addition, it may seek to secure funding through public or private debts to finance its business or any mergers or acquisitions in the future.