Nukkleus Inc, which controls the retail FX brand FXDD, has reported its financials for the three months ending December 31, 2018. The listed company managed to mitigate its losses for the reported period compared to the first quarter of the prior fiscal year.
During this period, the US-based boutique brokerage firm reported an unrealized loss of $37,403 on its cryptocurrency holdings whose fair value stands at $56,252 on December 31, 2018. The company purchased cryptocurrencies for $93,655 during the December-September period.
It’s no secret that many relatively new investors in the cryptocurrency markets have seen massive monetary losses as a result of the persisting bear market.
As Finance Magnates reported last month, Nukkleus revealed plans to introduce its over-the-counter (OTC) cryptocurrency trading desk, as well as launching a crypto exchange called NukkX before the first quarter of 2019 ends.
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 unchanged from a year ago, coming in at $4.8 million in FY Q1 2019. The company had incurred a 25 percent decrease in revenues in the last 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.
The Best PSPs for Forex Brokers in One UTIP App Go to article >>
Nukkleus Seeks Expansion Opportunities
This drop in 2018 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.
Meanwhile, the operating expenses the company incurred last year were reported at $155,989 relative to $238,948 in the previous year.
In terms of its net income, Nukkleus slightly curbed its operating losses to a figure of $119,902 for the September-December period, which is 30 percent better than the $169,988 it lost 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.