KindlyMD Delays Quarterly Filing as Merger Accounting Drives Losses

KindlyMD (NAKA) announced it will miss the deadline for its quarterly earnings report due to complex accounting related to its merger with Nakamoto Holdings, which has led to significant preliminary losses. The company reported a realized loss on digital assets of about $1.41 million, an unrealized loss of approximately $22.07 million, a $14.45 million loss on extinguishing debt, and a $59.75 million loss related to the acquisition. However, these losses were partially offset by a $21.85 million gain linked to contingent liabilities. Shares of KindlyMD fell 7% to $0.57 following the announcement. The firm, now a key player in the bitcoin market with ownership of 5,765 BTC, stated it expects to submit its Form 10-Q within the five-day extension permitted by SEC rules. The challenges stem from adhering to US GAAP standards and ensuring thorough review processes compliant with PCAOB requirements, prompting the need for additional time to finalize their financial reporting.

Source 🔗