Nukkleus Inc. reported its financial performance for the quarter ended December 31, 2023, with revenues from general support services remaining stable at $4.8 million, identical to the previous year's quarter. However, financial services revenue decreased by 23.2% to $442,391. The company's gross profit from general support services increased by 100% to $150,000, while financial services shifted from a gross loss to a profit of $308,700. Operating expenses rose significantly due to a $6.1 million bad debt expense and increased professional fees, leading to a net loss of $8.9 million, a substantial increase from the $1.1 million loss in the same quarter of the previous year. The company's working capital deficit widened to $9.7 million, and cash on hand was approximately $204,000, excluding customer custodial cash. Nukkleus Inc. also faced a...Show More

Nukkleus Inc. reported its financial performance for the quarter ended December 31, 2023, with revenues from general support services remaining stable at $4.8 million, identical to the previous year's quarter. However, financial services revenue decreased by 23.2% to $442,391. The company's gross profit from general support services increased by 100% to $150,000, while financial services shifted from a gross loss to a profit of $308,700. Operating expenses rose significantly due to a $6.1 million bad debt expense and increased professional fees, leading to a net loss of $8.9 million, a substantial increase from the $1.1 million loss in the same quarter of the previous year. The company's working capital deficit widened to $9.7 million, and cash on hand was approximately $204,000, excluding customer custodial cash. Nukkleus Inc. also faced a liquidity challenge, with current cash balances insufficient to cover operating expenses for the next twelve months. The company's future plans include raising capital through equity or debt financings to support operations and pursue growth strategies. Despite the termination of the General Services Agreement with TCM due to non-payment, management believes the financial statements are fairly stated and is working on remediating identified material weaknesses in internal controls.