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

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.”