Financial Performance - The company reported a net income of $3,018,589 for the three months ended June 30, 2025, compared to a net loss of $1,616,241 for the same period in 2024[22]. - For the six months ended June 30, 2025, Nukkleus Inc. reported a net income of $105,976,728, compared to a net loss of $4,045,658 for the same period in 2024[29]. - Basic net income per share for continuing operations was $0.62 for the three months ended June 30, 2025, compared to a loss of $0.70 in the same period of 2024[23]. - The total other (expense) income, net, for the six months ended June 30, 2025, was $108,932,842, a significant increase compared to $(238,848) for the same period in 2024[196]. - Pre-tax net income from continuing operations was approximately $106,377,435 for the first half of 2025, compared to a pre-tax net loss of $3,353,397 for the same period in 2024[203]. Assets and Liabilities - Total assets decreased from $9,109,284 on December 31, 2024, to $7,147,234 on June 30, 2025, representing a decline of approximately 21.5%[19]. - Current liabilities significantly increased from $171,450,366 to $60,423,405, a reduction of about 64.7%[19]. - The accumulated deficit decreased from $(201,075,743) on December 31, 2024, to $(95,099,015) on June 30, 2025, indicating an improvement of approximately 52.7%[20]. - The total stockholders' deficit improved from $(163,350,109) on December 31, 2024, to $(53,383,574) on June 30, 2025, reflecting a reduction of approximately 67.3%[20]. - As of June 30, 2025, total current assets were $2,256,993, significantly higher than $1,089,052 as of December 31, 2024[103]. Cash Flow - The company experienced a net cash used in operating activities of $2,693,898 for the six months ended June 30, 2025, compared to $1,820,714 in the prior year[29]. - The company incurred cash flow used in operating activities from continuing operations of approximately $2,981,000 for the six months ended June 30, 2025[46]. - Net cash used in operating activities for the first half of 2025 was approximately $2,694,000, compared to $1,821,000 in the same period of 2024[207]. - Net cash used in investing activities was approximately $1,515,000 for the first half of 2025, primarily due to an advance payment to Star of $1,500,000[210]. - Net cash flow used in financing activities was approximately $878,000 for the first half of 2025, which included a repayment of note payable of $78,000 and late registration penalties of $800,000[212]. Operational Changes - The company ceased its general support service operations in January 2024 and shifted focus to payment services operations[34]. - In November 2024, the company entered into a Settlement Agreement to sell its payment services subsidiary for GBP 1,000 (approximately $1,372)[34]. - The company plans to acquire a controlling 51% interest in Star 26 Capital Inc., focusing on the defense sector[35]. - The company executed a one-for-eight reverse stock split of its common stock effective October 24, 2024[41]. - The company expects to report revenue upon the closing of the Star acquisition, anticipated by the end of the third quarter of 2025[197]. Stock and Equity - The Company authorized 150,000,000 shares of common stock, with 5,370,939 shares issued and outstanding as of June 30, 2025[131]. - The Company issued common stock related to the exercise of pre-funded warrants, resulting in an increase of $3,055,814 in additional paid-in capital[24]. - The balance of common stock increased to 5,370,939 shares as of June 30, 2025, from 4,930,531 shares as of December 31, 2024[25]. - The Company has 5,381,916 stock purchase warrants reserved for future issuance[131]. - The Company entered into a Securities Purchase Agreement to acquire a controlling 51% interest in Star for a total consideration of $15,000,000, which includes $5,000,000 in cash and a promissory note for the remaining balance[183]. Expenses - Operating expenses for the three months ended June 30, 2025, were $1,048,300, slightly higher than $1,029,373 in the same period of 2024, indicating a 1.5% increase[22]. - Total operating expenses for the three months ended June 30, 2025, were $371,964, a decrease of 23.6% compared to $487,750 for the same period in 2024[104]. - Professional fees decreased by approximately $144,000, or 16.3%, for the three months ended June 30, 2025, compared to the same period in 2024[198]. - Compensation and related benefits increased by approximately $46,000, or 186.0%, for the three months ended June 30, 2025, compared to the same period in 2024[199]. - Other general and administrative expenses increased by approximately $116,000, or 95.1%, for the three months ended June 30, 2025, compared to the same period in 2024[200]. Going Concern - The company reported substantial doubt about its ability to continue as a going concern for at least one year from the issuance of the financial statements[48]. - There is substantial doubt regarding the company's ability to continue as a going concern for twelve months from the issuance of the financial statements due to limited capital resources[206]. - The Company has not experienced losses on its cash accounts and does not believe it is exposed to significant credit risk[53]. - The Company is classified as an emerging growth company under the JOBS Act, allowing it to delay adopting new accounting standards[49]. Legal and Regulatory Matters - The Company is subject to various litigation and regulatory investigations, which are reviewed on an ongoing basis[160]. - The Company made cash payments totaling $800,000 to an investor due to penalties related to a private placement registration statement not being effective[162].
Brilliant Acquisition (BRLI) - 2025 Q2 - Quarterly Report