Financial Performance - Total revenues for the quarter ended March 31, 2024, were $259,757, a decrease from $5,633,944 in the same period last year[17]. - The net loss for the quarter was $2,429,417, compared to a net loss of $805,649 for the same quarter last year[17]. - The company reported a gross profit of $196,561 for the quarter, significantly lower than $655,261 in the prior year[17]. - Operating expenses totaled $2,616,410, compared to $954,326 in the same quarter last year[17]. - Financial services revenue for the three months ended March 31, 2024, was $259,757, down from $833,944 in the same period of 2023, reflecting a decrease of approximately 68.9%[87]. - General support services segment reported no revenue for the three months ended March 31, 2024, compared to $4,800,000 for the same period in 2023[176]. - Total revenues for the company decreased by 95.4% to $259,757 for the three months ended March 31, 2024, compared to $5,633,944 in the same period of 2023[176]. - Net loss for the company was $(2,429,417) for the three months ended March 31, 2024, compared to a net loss of $(805,649) for the same period in 2023[176]. Assets and Liabilities - Total current assets amounted to $808,253, compared to $2,928,408 as of September 30, 2023[14]. - Total liabilities reached $12,750,404, an increase from $9,545,855 in the previous reporting period[14]. - The accumulated deficit increased to $(47,369,858) from $(31,769,244) as of September 30, 2023[14]. - Total assets decreased to $1,225,652 as of March 31, 2024, from $3,352,625 as of September 30, 2023[176]. - Customer custodial cash liabilities were $882,152, compared to $1,443,011 as of September 30, 2023[14]. - Customer custodial cash decreased to $345,631 as of March 31, 2024, from $672,501 as of September 30, 2023, representing a decline of about 48.7%[110]. - Total customer liabilities decreased to $890,252 as of March 31, 2024, from $1,443,011 as of September 30, 2023, indicating a reduction of approximately 38.3%[110]. Cash Flow and Capital - The company had cash and cash equivalents of $305,589, down from $19,318 in the previous period[14]. - The total cash at the end of the period was $651,220, a decrease from $486,946 at the end of the previous year[25]. - Cash flows from operating activities resulted in a net cash used of $(1,878,608) for the three months ended March 31, 2024, compared to $(1,882,501) for the same period in 2023[24]. - The company plans to raise capital through the sale of equity to implement its business plan, although there are no assurances that these plans will be realized[40]. - The company completed a reverse recapitalization, resulting in cash received of $150,161[24]. - The total paid-in capital increased to $35,848,468 as of March 31, 2024, from $35,023,820 at the end of December 2023[24]. Stock and Equity Transactions - The company issued common stock for services amounting to $750,000 during the three months ended March 31, 2024[24]. - During the six months ended March 31, 2024, the company issued 627,997 shares of common stock for services valued at $2,765,601[121]. - The company recognized stock-based compensation of $2,914,936 for the three months ended March 31, 2024, compared to $221,543 in the same period of 2023[24]. - Stock-based compensation expense associated with stock options for the six months ended March 31, 2024, was $149,335, down from $221,543 for the same period in 2023[128]. Related Party Transactions - The company has a significant related-party transaction involving the acquisition of shares in Jacobi Asset Management Holdings Limited, which is focused on digital asset management[37]. - Three related party customers accounted for 86.6% of the company's total outstanding accounts receivable and due from affiliates as of March 31, 2024[167]. - Two related party suppliers accounted for 73.5% of the company's total outstanding accounts payable and due to affiliates as of March 31, 2024[170]. - Revenue from related parties for the six months ended March 31, 2024, was $61,328, down from $78,516 in the same period of 2023, representing a decrease of approximately 21.5%[143]. Business Operations and Strategy - The Business Combination between Brilliant and Old Nukk was completed on December 22, 2023, resulting in the formation of Nukkleus Inc. as a financial technology company focused on the retail foreign exchange trading industry[29][30]. - The company completed the acquisition of Match Financial Limited in fiscal year 2021, which provides payment services between fiat currencies and digital assets[34]. - The company has not pursued regulatory licensing to operate an electronic exchange in Malta since deciding to exit the exchange business in fiscal 2020[33]. - The company plans to negotiate the sale of its wholly owned subsidiary, Digital RFQ Ltd., to its current management team[182]. Impairments and Allowances - The company established an allowance for doubtful accounts of $10,199 for receivables as of September 30, 2023, which was reduced to $0 by March 31, 2024[155]. - The company has established an allowance for doubtful accounts of $0 as of March 31, 2024, compared to $637,072 as of September 30, 2023, indicating improved credit quality[70]. - The company recorded an impairment expense of $0 for the three months ended March 31, 2024, compared to $133 million for the same period in 2023[117]. Currency and Foreign Exchange - Nukkleus Inc. reported a foreign currency translation adjustment gain of $40,419 for the three months ended March 31, 2024[24]. - The average translation rate for GBP to USD for the six months ended March 31, 2024, was 0.7970, compared to 0.8379 for the same period in 2023[97]. Agreements and Contracts - Nukkleus Limited has a General Services Agreement with Triton Capital Markets Ltd. (TCM) that guarantees a minimum payment of $1,600,000 per month, which has been terminated effective January 1, 2024, due to non-payment[31]. - Nukkleus Limited also has a GSA with FXDirectDealer LLC, with a minimum payment reduced from $1,575,000 to $1,550,000 per month effective May 1, 2023[32]. - The minimum monthly amount received from TCM under the GSA was $1,600,000, but the agreement was terminated effective January 1, 2024, due to non-payment[137].
Brilliant Acquisition (BRLI) - 2024 Q1 - Quarterly Report