KindlyMD Delays Quarterly Filing as Merger Accounting Drives Losses, Shares Down 7%
KindlyMD delayed its 10-Q filing due to complex accounting from its merger, coinciding with mounting reported losses that caused its shares to drop 7%.Summary
KindlyMD (NAKA), the 19th largest bitcoin treasury company, notified the SEC that it will delay filing its quarterly Form 10-Q for the period ended September 30th, expecting to submit it within the five-day extension period. The delay stems from the complex accounting required following its August merger with David Bailey’s bitcoin-focused Nakamoto Holdings, which transformed KindlyMD into a publicly traded bitcoin treasury vehicle now holding 5,765 BTC. Preliminary figures disclosed in the filing indicate substantial post-merger losses, including approximately $1.41 million realized loss on digital assets, $22.07 million unrealized loss, a $14.45 million loss on debt extinguishment, and a significant $59.75 million loss on the Nakamoto acquisition. These losses, partially offset by a $21.85 million positive change in contingent liabilities, contributed to NAKA's stock trading down 7% to $0.57 on the day of the announcement.
(Source：CoinDesk)