Financial Performance - The company reported a net income of $102,958,139 for the three months ended March 31, 2025, compared to a net loss of $2,429,417 for the same period in 2024[22]. - For the three months ended March 31, 2025, Nukkleus Inc. reported a net income from continuing operations of $103,140,894, compared to a net loss of $(2,095,201) for the same period in 2024[28]. - The basic net income per common share for continuing operations was $20.80 in Q1 2025, compared to a loss of $(1.19) in Q1 2024[22]. - Other income (expense), net, increased approximately $104,658,000, or 1,043,970.3%, for the three months ended March 31, 2025, primarily due to gains from changes in fair value of stock purchase warrant liabilities[177]. - The accumulated deficit improved from $(201,075,743) on December 31, 2024, to $(98,117,604) on March 31, 2025, indicating a reduction of approximately 51.2%[21]. Revenue and Expenses - For the three months ended March 31, 2025, total revenues were $187,469, a decrease of 27.8% from $259,757 in the same period of 2024[101]. - Total operating expenses decreased to $317,352 in Q1 2025 from $531,235 in Q1 2024, a reduction of 40.2%[101]. - Operating expenses decreased from $2,085,176 in Q1 2024 to $1,507,107 in Q1 2025, a reduction of approximately 27.7%[22]. - The net loss from discontinued operations for the three months ended March 31, 2025, was $182,755 compared to a loss of $334,216 in the same period of 2024, indicating an improvement of 45.2%[101]. - Total other general and administrative expenses increased by approximately $266,000, or 119.1%, for the three months ended March 31, 2025, compared to the same period in 2024[176]. Assets and Liabilities - Total assets decreased from $9,109,284 on December 31, 2024, to $8,601,827 on March 31, 2025, representing a decline of approximately 5.6%[19]. - Current liabilities significantly decreased from $171,450,366 to $64,709,245, a reduction of about 62.2%[19]. - As of March 31, 2025, total current assets were $2,127,120, an increase of 95.5% from $1,089,052 as of December 31, 2024[100]. - Total liabilities increased to $4,453,142 as of March 31, 2025, compared to $3,179,877 as of December 31, 2024, reflecting a rise of 40.0%[100]. - The company had a working capital deficit of $56,246,392 as of March 31, 2025, including $4,462,916 of cash[179]. Cash Flow - The company incurred cash flow used in operating activities from continuing operations of approximately $1,621,478 for the three months ended March 31, 2025, compared to $(174,899) in the prior year[43]. - The company experienced a net cash used in operating activities of $(1,341,514) for the three months ended March 31, 2025, compared to $(1,122,709) in the prior year[28]. - Net cash flow used in investing activities was approximately $810,221 for the three months ended March 31, 2025, primarily due to an advance payment to Star of $800,000[186]. - There were no cash flows provided by financing activities for the three months ended March 31, 2025[188]. Stock and Equity - The number of common shares outstanding increased from 4,930,531 to 5,013,863, reflecting an increase of about 1.7%[20]. - The Company has authorized 15,000,000 shares of preferred stock, with no shares issued and outstanding as of March 31, 2025[124]. - The Company issued 100,000 stock options to a consultant on November 13, 2024, with a total share-based compensation expense of $177,905 for the three months ended March 31, 2025[140]. - The Company completed a private placement on December 20, 2024, raising approximately $9.99 million by selling 1,666,666 units at $6.00 per unit[127]. - The Company established the 2025 Equity Incentive Plan with 1,950,000 shares of common stock reserved for issuance, subject to shareholder approval[159]. Business Strategy and Operations - The company plans to focus its business on the defense sector following the acquisition of a controlling 51% interest in Star 26 Capital Inc., which supplies defense products[33]. - The Company entered into a Securities Purchase Agreement with Star 26 Capital Inc. to acquire a controlling 51% interest in Star for an aggregate investment of $21,000,000[153]. - The Company shifted its business focus to the defense sector following the Settlement Agreement related to the acquisition of Star[166]. - The company plans to cease operations of its General Support Services operating segment, which meets the discontinued operations criteria as of December 15, 2024[98]. Internal Controls and Compliance - As of March 31, 2025, the company concluded that its disclosure controls and procedures were effective[210]. - Material weaknesses in internal control over financial reporting were identified as of December 31, 2024, related to the evaluation of intangible assets and cost-method investments[212]. - Remediation actions for the identified material weaknesses began in Q4 of fiscal year 2024, including the use of external consultants for technical accounting issues[213]. - The material weaknesses will not be considered fully remediated until additional controls have operated effectively for a sufficient period[214]. - As of March 31, 2025, the company has not remediated the material weakness related to resources for evaluating intangible assets[215].
Brilliant Acquisition (BRLI) - 2025 Q1 - Quarterly Report