Summary by Futu AI
Nukkleus Inc. reported Q1 2025 net income of $103.1 million, compared to a net loss of $2.1 million in Q1 2024, primarily driven by a $104.3 million gain from changes in fair value of stock purchase warrant liabilities. Operating expenses decreased 27.7% to $1.5 million, with professional fees down 47.9% to $954,000 due to reduced advisory and legal costs.The company ended the quarter with $4.5 million in cash and a working capital deficit of $56.2 million. Management noted material weaknesses in internal controls related to accounting for intangible assets and investments, and is implementing remediation plans including enhanced review processes and external consultancy support.Looking ahead, Nukkleus is transitioning its business focus to the defense sector through its pending acquisition of Star 26 Capital Inc., an Israeli supplier of generators for "iron dome" launchers. The company has advanced $1.8 million to Star as part of the planned $21 million controlling stake purchase, while discontinuing its previous financial services operations.
