Nukkleus Inc, which controls the retail FX brand FXDD, has reported its financials for the fiscal year ending September 30, 2018. The listed company failed to mitigate its losses for the reported period, having spent additional resources on directors’ salaries, which slightly weighed down the broker’s profits this year.
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.
Over this period, Nukkleus saw its trading revenue decrease to $19.2 million in FY 2018, down from $24 million a year ago, or 25 percent lower year-over-year. The company attributed the decline in revenues 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.
This drop in revenues, however, was offset by lower operating costs which significantly decreased as compared to the year ended September 30, 2017. The primary culprit for the decrease has been the reduced fees Nukkleus pays to its controlled entity Forexware, which fell from $1.9 million per month to $1.57 million.
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Nukkleus Seeks Expansion Opportunities
Meanwhile, the operating expenses the company incurred last year were reported at $476,801 relative to $412,693 in the prior year.
In terms of its net income, Nukkleus slightly hiked its operating losses to a figure of $212,187 for the reported fiscal year. This reflected an increase of 55 percent year-over-year from a loss of $136,851 for the previous year.
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.
Nukkleus has been looking for new investment opportunities since it canceled, in mutual agreement, merger plans with IronFX after long discussions that started in May 2016.
“We currently plan to seek for acquisitions that bring shareholder value both in the short term and long term. Our goal is to create an industry leading sector consolidated platform, combining strong global retail and institutional trading flows covering FX, commodities, futures, CFD and equities, with a cutting edge technological product suite, turnkey software and technological development capabilities,” the SEC filing further states.