FXDD parent reports slight operational loss in Q2

abdelaziz Fathi

Nukkleus Inc, which controls FXDD Trading and FXMarkets brands, has reported its financials for the three months ending June 30, 2021.

Over this period, Nukkleus saw its trading revenue unchanged from a year ago, coming in at $4.8 million in FY Q2 2021, which came from support services rendered to FXDD Malta. Revenue for both of the nine months through June 30, 2021, and 2020, was $14.4 million.

In terms of its net income, Nukkleus reversed its operating profit of $11,492 in the prior year’s quarter to a loss, in the amount of $100,538 for the April-June quarter. Taking a YTD perspective, the company also deepened its operating losses to the sum of $154,084, which was worse than the $97,659 it lost in the comparable period of 2020.

Over a nine-month interval spanning from October 2020 to June 2021, Nukkleus’ gross profits was $238,966 compared to $225,000 for the counterpart period a year prior.

Though the company had incurred a 25 percent decrease in revenues in 2020 due to the amendment of its agreement with FXDD Malta, the retail broker reduced services fees it currently pays from $2 million per month to $1.6 million.

The operating costs were pointedly higher on a yearly basis, according to the company’s latest filing with the US Securities and Exchange Commission. The primary culprit for this has been the rise in the amortization of intangible assets.

Specifically, the operating expenses that the company incurred in the last quarter were reported at $188,714, relative to $62,222 for the previous year. Other general & administrative expenses and professional fees were also higher year-over-year, albeit at a modest level.

On April 16, 2021, 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.

That motion was fully submitted in December, and the court held an oral argument in February 2021, but no decision has been issued as of the date of this report.

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, the company wants to secure funding through public or private debts to finance its business or any mergers or acquisitions in the future.

Read this next

Digital Assets

Revolut receives FCA’s go-ahead to launch crypto trading

British fintech and banking firm Revolut has received a regulatory go-ahead to launch its cryptocurrency services in the UK.

Digital Assets

GBTC share is trading at 36% below bitcoin spot price

Grayscale Bitcoin Trust share has widened its discount relative to the underlying cryptocurrency held in the fund, the highest margin ever since its debut in 2013. Digital Currency Group’s flagship GBTC shares traded at a discount of 35.8% to net asset value (NAV) today.

Digital Assets

Crypto lender Nexo investigated by 8 US state regulators

State securities regulators in New York, California, Kentucky, Maryland, Oklahoma, South Carolina, Washington and Vermont are investigating crypto lender Nexo for allegedly failing to register its Earn Interest Product.

Metaverse Gaming NFT

Astar Network’s ad features 329 top brands to support Web3 in Japan

Blockchain innovation hub Astar Network is making strides in promoting the Web3 adoption worldwide. In yet another milestone, the smart contracts platform has run a national newspaper ad in Japan that set a new global record with participation from 329 blue-chip firms.

Digital Assets

Pyth Network welcomes onchain data from crypto market maker Auros

“By sharing our high-frequency trading data with a truly onchain decentralized network, we aim to foster innovation that will lead to better financial solutions for all participants.”

Digital Assets

Tokeny integrates Ownera to boost liquidity of tokenized assets

“The adoption of FinP2P will result in higher liquidity and better access to capital and assets by providing regulated firms with one secure point of connection to multiple digital asset networks across the globe.”

Digital Assets

BingX launches subsidy vouchers to cover user losses in copy trading

“With the introduction of copy trade subsidy vouchers, new users can easily try out trading strategies without incurring losses.”

Digital Assets

Talos expands sales team: Frank van Zegveld, Matt Houston, Hillary Conley

“The extensive leadership and industry expertise of these new hires will enable us to build long-lasting relationships as we continue to build out our global presence in EMEA and beyond.”

Executive Moves

FX and CFD broker Emporium Capital hires industry veteran Robert Woolfe as COO

His past experience within the FX and CFD industry includes top roles at Capital Index, London Capital Group, GKFX, ETX Capital, and IG.  “I’m delighted to be part of the Emporium Capital team and spearheading the brokerages global expansion plans”, he said about the appointment.

<