Nukkleus Inc. reported Q1 FY2024 financial results with total revenue of $5.2 million, slightly down from $5.4 million in Q1 FY2023. General support services revenue remained stable at $4.8 million, while financial services revenue decreased 23.2% to $442,391. The company recorded a net loss of $8.9 million compared to $1.1 million loss in the prior year period, primarily due to $6.1 million bad debt expense and increased professional fees.The company's financial services segment showed improved profitability with gross margin increasing to 69.8% from -22.5% last year, driven by reduced costs. Operating expenses rose significantly to $9.4 million from $1.1 million, mainly due to increased advisory service fees of $2.3 million and bad debt provisions. The company ended the quarter with $204,148 in cash, excluding customer custodial funds.Management faces substantial going concern challenges with a working capital deficit of $9.7 million as of December 31, 2023. The company has terminated its General Services Agreement with TCM due to non-payment and is seeking additional capital through equity and debt financing to fund operations. Recent financing activities include issuing convertible notes and warrants to raise working capital.

Nukkleus Inc. reported Q1 FY2024 financial results with total revenue of $5.2 million, slightly down from $5.4 million in Q1 FY2023. General support services revenue remained stable at $4.8 million, while financial services revenue decreased 23.2% to $442,391. The company recorded a net loss of $8.9 million compared to $1.1 million loss in the prior year period, primarily due to $6.1 million bad debt expense and increased professional fees.The company's financial services segment showed improved profitability with gross margin increasing to 69.8% from -22.5% last year, driven by reduced costs. Operating expenses rose significantly to $9.4 million from $1.1 million, mainly due to increased advisory service fees of $2.3 million and bad debt provisions. The company ended the quarter with $204,148 in cash, excluding customer custodial funds.Management faces substantial going concern challenges with a working capital deficit of $9.7 million as of December 31, 2023. The company has terminated its General Services Agreement with TCM due to non-payment and is seeking additional capital through equity and debt financing to fund operations. Recent financing activities include issuing convertible notes and warrants to raise working capital.