Nukkleus Inc., a financial technology holding company, has reported an increase in due from affiliates and customer digital currency assets in Q2 2023, despite the ongoing challenges brought on by the COVID-19 pandemic.
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In the period ending on March 31, 2023, Nukkleus’ total due from affiliates increased from $931,136 in September 2022 to $255,415.
The balance due from Digiclear, a company the firm has made advances to, rose significantly from $35,762 to $229,838. Meanwhile, balances due from Jacobi and FXDD Mauritius, which represent monies the company paid on their behalf, reached $23,723 and $1,854 respectively.
Nukkleus management is confident that these related parties’ receivables will be fully collectable. The company has not experienced uncollectible receivables from related parties historically, and no allowance for doubtful accounts is believed to be necessary at this time.
In addition to changes in due from affiliates, Nukkleus has also experienced growth in customer digital currency assets and liabilities linked to its subsidiary, Digital RFQ.
As of March 31, 2023, the amount of related parties’ digital currency controlled by Digital RFQ reached $393,045, compared to $248,214 at September 30, 2022. This reflects a continuing expansion in customer digital currency assets and liabilities in the period.
Although the COVID-19 pandemic continues to pose challenges for businesses globally, Nukkleus appears to be maintaining a steady growth trajectory. The company has entered into various agreements and commitments that aim to strengthen its financial position, including a stock purchase agreement with White Lion Capital Partners and a registration rights agreement to file a registration statement for the resale of shares.
In February 2022, Nukkleus also entered into a Merger Agreement with Brilliant Acquisition Corporation, which has been approved by the company’s boards of directors.
As of April 20, 2023, Brilliant’s shareholders have granted an extension to the Outside Closing Date, now set for June 23, 2023. This pending merger has the potential to significantly impact Nukkleus’ financial standing and future growth.
With the changes in due from affiliates and growth in customer digital currency assets, Nukkleus Inc. seems well-positioned to weather the ongoing uncertainties brought about by the COVID-19 pandemic. The company’s various agreements and commitments, along with the potential merger with Brilliant Acquisition Corporation, are expected to bolster its financial standing and growth prospects in the coming years.
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