Nukkleus Inc. Material Event - What Happened: They're Changing Their Accountants!

Hey everyone, let's break down what's going on with Nukkleus Inc. in simple terms, so you know what's up without needing a finance degree. Think of this as me explaining it to you over a coffee.

---

1. What happened? (in plain English - the actual event)

Okay, so Nukkleus Inc. just announced a change in who checks their financial books. They've decided to part ways with their current independent accounting firm, GreenGrowth CPAs, and bring in a new one, Somekh Chaikin (which is part of the big global firm KPMG International). Think of it like switching doctors for a second opinion on your health, but for a company's financial health.

2. When did it happen?

The official decision to dismiss GreenGrowth and engage Somekh Chaikin happened today, January 14, 2026. Interestingly, the company's stockholders actually approved the appointment of Somekh Chaikin a little earlier, on November 6, 2025, at their annual meeting. So, it's been in the works for a bit.

3. Why did it happen? (context and background)

The filing doesn't give a specific "why" for the change, but it's common for companies to switch auditors periodically for various reasons – maybe they want a fresh perspective, or a firm with different expertise, or perhaps they're just looking for a better fit. What's important to note is that the company stated there were no big disagreements with GreenGrowth about how they reported their finances or how the audits were done. This is usually a good sign, as it means the split wasn't over a fight about the numbers themselves.

However, GreenGrowth did include a "going concern" warning in their past reports. This means they had concerns about Nukkleus's ability to continue operating as a business in the long run, mainly due to recurring losses and not having enough working capital. While this isn't directly why they changed auditors, it's a significant piece of background information for investors.

4. Why does this matter? (impact and significance)

This is important because auditors are like the financial referees for a company. They make sure the numbers are fair and accurate.

• For Nukkleus itself: Bringing in a new, large firm like Somekh Chaikin (KPMG) could be seen as a move to strengthen their financial oversight and potentially get a fresh look at their financial health, especially given the "going concern" issue. It might signal a desire for a new approach to their financial reporting or internal controls.
• For investors: A change in auditors can sometimes be a red flag if there were disagreements. But in this case, the company explicitly stated there were no such disagreements, which is reassuring. However, the "going concern" warning from the previous auditor is a very serious point. Investors will want to see how the new auditors address this in their future reports. It means the company has been struggling financially, and this change might be part of an effort to turn things around or get a different perspective on their viability.

5. Who is affected? (employees, customers, investors, etc.)

• GreenGrowth CPAs: They're no longer auditing Nukkleus.
• Somekh Chaikin (KPMG): They're taking on a new, significant client. They'll be responsible for reviewing Nukkleus's financial statements.
• Nukkleus Inc. Management and Board: They're the ones who made this decision and will now work with the new auditors.
• Investors (that's us!): We now have a new set of eyes looking at Nukkleus's books. We'll be paying close attention to Somekh Chaikin's future audit reports, especially regarding the "going concern" status.

6. What happens next? (immediate and future implications)

Somekh Chaikin still needs to complete their final "client acceptance procedures" – basically, their internal checks to make sure everything is in order before they officially start. Once that's done, they'll begin auditing Nukkleus's financial statements for the year ending December 31, 2025. We'll be looking for their first audit report to see their assessment of the company's financial health, particularly how they address the "going concern" issue that GreenGrowth highlighted.

7. What should investors/traders know? (practical takeaways)

• It's not a red flag due to disagreements: The company explicitly stated there were no disputes with GreenGrowth, which is good.
• The 'going concern' issue is still key: Remember, GreenGrowth had concerns about Nukkleus's ability to stay in business. This is a fundamental risk for investors. A new auditor doesn't make this issue disappear; they will have to assess it themselves.
• Watch the new auditor's reports: Pay close attention to future financial statements and the audit opinions from Somekh Chaikin. How they frame the company's financial health, especially regarding the "going concern" warning, will be very important.
• This is about oversight, not operations: This event doesn't change what Nukkleus does day-to-day, but it changes who is verifying how they report their financial performance.
• Do your own homework: This change is a piece of the puzzle. You still need to understand Nukkleus's business, its financial performance, and its future plans, especially in light of the "going concern" warning.