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FXDD Parent Reports Marginal Gain in Q2 Revenue, Ends in Loss

by Arnab Shome
  • The slight revenue gain came from the company’s crypto-fiat conversion services.
FXDD Parent Reports Marginal Gain in Q2 Revenue, Ends in Loss
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Nukkleus Inc, which controls FXDD Trading and FXMarkets brands, has published its financials with the US securities regulator for the April-June quarter, reporting a net loss of $100,538 from its business. In a similar quarter of the prior year, the company turned a profit of $11,492.

Its losses for the interval of the first nine months of the 2021 financial year deepened to $154,084 compared to a loss of $97,659 for a similar period in the prior year.

In terms of revenue, Nukkleus generated a total of $4.81 million from its businesses, which is a marginal yearly increase of 0.8 percent. Its revenue from general support services remained $4.8 million, identical to the previous year: in the latest quarter, it brought in an additional $41,602 from financial services operations, which include crypto-fiat conversion services.

Though the company ended the quarter with a gross profit, heavy amortization of intangible assets, professional fees and administrative expenses pushed it towards losses.

Acquisition and Capital Injection

Nukkleus is a financial technology company and provides software and technology solutions to the foreign Exchange trading industry participants. In May, the company acquired a 70 percent stake in Match Financial in an all-stock deal with a purchase price of around $9.8 million.

Additionally, the company raised $1 million in cash with the issuance of 15 million shares of its common stocks.

“The $1,000,000 of proceeds received was allocated to the common stock and Series A preferred stock,” Nukkleus stated in the SEC filing. “The terms of the Series A preferred stock issued represent mandatory redeemable shares, with a fixed redemption date (in 5 years) and the Company has a choice of redeeming the instrument either in cash or a variable number of shares of common stock based on a formula in the certificate of designation. The conversion price has a floor of $0.20 per share.”

Nukkleus Inc, which controls FXDD Trading and FXMarkets brands, has published its financials with the US securities regulator for the April-June quarter, reporting a net loss of $100,538 from its business. In a similar quarter of the prior year, the company turned a profit of $11,492.

Its losses for the interval of the first nine months of the 2021 financial year deepened to $154,084 compared to a loss of $97,659 for a similar period in the prior year.

In terms of revenue, Nukkleus generated a total of $4.81 million from its businesses, which is a marginal yearly increase of 0.8 percent. Its revenue from general support services remained $4.8 million, identical to the previous year: in the latest quarter, it brought in an additional $41,602 from financial services operations, which include crypto-fiat conversion services.

Though the company ended the quarter with a gross profit, heavy amortization of intangible assets, professional fees and administrative expenses pushed it towards losses.

Acquisition and Capital Injection

Nukkleus is a financial technology company and provides software and technology solutions to the foreign Exchange trading industry participants. In May, the company acquired a 70 percent stake in Match Financial in an all-stock deal with a purchase price of around $9.8 million.

Additionally, the company raised $1 million in cash with the issuance of 15 million shares of its common stocks.

“The $1,000,000 of proceeds received was allocated to the common stock and Series A preferred stock,” Nukkleus stated in the SEC filing. “The terms of the Series A preferred stock issued represent mandatory redeemable shares, with a fixed redemption date (in 5 years) and the Company has a choice of redeeming the instrument either in cash or a variable number of shares of common stock based on a formula in the certificate of designation. The conversion price has a floor of $0.20 per share.”

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