Financial Performance - The net income for the three months ended June 30, 2025, was $3,018,589, compared to a net loss of $1,616,241 for the same period in 2024, marking a turnaround[22] - For the six months ended June 30, 2025, Nukkleus Inc. reported a net income of $106,376,728, compared to a net loss of $4,045,658 for the same period in 2024[29] - The company reported a comprehensive income of $2,895,376 for the three months ended June 30, 2025, compared to a comprehensive loss of $(1,621,849) for the same period in 2024[22] - Pre-tax net income from continuing operations for the six months ended June 30, 2025, was $106,377,435, 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 total stockholders' deficit improved from $(163,350,109) on December 31, 2024, to $(53,383,574) on June 30, 2025, indicating a positive change[20] - As of June 30, 2025, total current assets amounted to $2,256,993, significantly higher than $1,089,052 as of December 31, 2024[103] - Current liabilities increased to $4,901,164 as of June 30, 2025, compared to $3,162,509 as of December 31, 2024, representing a 55.0% rise[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 for the same period in 2024[29] - Net cash used in operating activities for the six months ended June 30, 2025, was approximately $2,694,000, compared to $1,821,000 for the same period in 2024[207] - Net cash used in investing activities was approximately $1,515,000 for the six months ended June 30, 2025, primarily for an advance payment to Star[210] - Net cash used in financing activities was approximately $878,000 for the six months ended June 30, 2025, which included a repayment of note payable of $78,000 and late registration penalties of $800,000[212] Stock and Equity - The weighted average common shares outstanding for basic shares increased from 1,792,610 in the six months ended June 30, 2024, to 5,246,945 in the same period of 2025[23] - 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 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 1,666,666 units in a private placement for $9,999,996, with each unit priced at $6.00[133] 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 expects to report revenue upon the closing of the Star acquisition, anticipated to be completed by the end of the third quarter of 2025[197] Expenses - Operating expenses for the three months ended June 30, 2025, totaled $1,048,300, slightly higher than $1,029,373 in the same period of 2024[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] Discontinued Operations - The net loss from discontinued operations for the six months ended June 30, 2025, was $(400,707), an improvement from $(692,261) in the same period of 2024[22] - The planned disposition of the financial services operating segment has been classified as discontinued operations in the consolidated financial statements[100] - Net loss from discontinued operations decreased to $217,952 for Q2 2025 from $358,045 in Q2 2024, and for the six months ended June 30, 2025, it decreased to $400,707 from $692,261 in the same period of 2024[202] 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] Legal and Regulatory Matters - The Company is subject to various litigation and regulatory investigations, which are reviewed on an ongoing basis[160] - The Company has indemnity agreements with certain officers and directors, but the maximum potential exposure under these agreements cannot be determined[159]
BRILLIANT ACQUIS(BRLIR) - 2025 Q3 - Quarterly Report