FXDD Parent Reports Slight Profit in Q2, CEO-Owned Firm Injects $1M

FXDD Parent Reports Slight Profit in Q2, CEO-Owned Firm Injects $1M

August 13, 2020

Nukkleus Inc, which controls FXDD Trading and FXMarkets brands, said the company’s CEO Emil Assentato has injected $1 million to maintain the ongoing operations of the business. The transaction was made through the sale of 15 million common shares and 100,000 Series A preferred stocks to Currency Mountain Holdings Bermuda, Limited (CMH), which is wholly-owned by an entity that is majority-owned by Mr. Assentato.

Nukkleus has also reported its financials for the three months ending June 30, 2020. The listed company managed to book profit for the first time in several years, albeit at a very modest level.

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Over this period, Nukkleus saw its trading revenue unchanged from a year ago, coming in at $4.8 million in FY Q2 2020, which came from support services rendered to FXDD Malta. Revenue for both of the nine months through June 30, 2020 and 2019 was $14.4 million.

In terms of its net income, Nukkleus reversed its operating losses of $69,000 in the prior year’s quarter to a slight profit in the amount of $11,492 for the April-June quarter. In the first quarter, the company also curbed its operating losses to a figure of $63,850, which was better than the $230,901 it lost in the Q1 2019.

Over a nine-month interval, Nukkleus’ net loss was $97,659 during the period spanning October 2019 to June 2020 compared with $419,719 for the counterpart period a year ago.

The company had incurred a 25 percent decrease in revenues in the prior fiscal year due to the amendment of its agreement with FXDD Malta, according to which the retail broker reduced services fees it pays from $2 million per month to $1.6 million.

The operating costs were pointed lower on a yearly basis, according to the company’s latest filing with the US Securities and Exchange Commission. The primary culprit for the decrease has been the decrease in the number of Nukkleus’ employees.

Specifically, the operating expenses the company incurred last quarter were reported at $62,222 relative to $236,704 in the previous year. Other general and administrative expenses were mainly third party and professional fees.

Nukkleus named in BT Prime bankruptcy

On April 16, 2020, the company was named as a defendant in the case related to the bankruptcy of Boston Prime and BT Prime, the liquidity providers of Boston Technologies. In the amended complaint, BT Prime seeks to hold Nukkleus and its affiliates liable for all of the debts and liabilities stemming from its bankruptcy proceedings. BT Prime incurred huge losses as a result of unprecedented market volatility following SNB announcement to remove the euro-franc peg in 2015.

The troubled firm alleges that Nukkleus has no activity other than it does through collective business relationship with Forexware, Currency Mountain Holdings LLC, Forexware Malta Holdings Ltd., FXDIRECT, FXDD Malta and CMH. Based on this theory, BT Prime alleges that the company should be jointly liable for any liability attributable to other defendants

“The Company maintains that there is no basis in BT Prime’s claims against it and intends to vigorously defend against it, including by moving to dismiss it,” Nukkleus said

Looking at the rest of the filing, Nukkleus highlighted that it is currently seeking additional capital through private placements or public offerings of its securities. In addition, it may seek to secure funding through public or private debts to finance its business or any mergers or acquisitions in the future.

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