KindlyMD Delays Quarterly Filing as Merger Accounting Drives Losses, Shares Down 7%

KindlyMD has announced it will miss the deadline for filing its quarterly earnings report, attributing the delay to intricate accounting issues linked to its recent merger with Nakamoto Holdings. The company, which focuses on bitcoin treasury management, reported preliminary losses stemming from this merger, including a $1.41 million realized loss on digital assets and a substantial $59.75 million loss related to the acquisition. Despite some offsetting factors, including a $21.85 million gain from changes in contingent liabilities, the overall impact led to a reported drop in shares by 7%, bringing prices down to $0.57. KindlyMD aims to file its Form 10-Q within the five-day extension permitted by the SEC. The complexities of merger accounting necessitate additional time to ensure compliance with U.S. GAAP standards and PCAOB review procedures, underscoring the challenges faced by companies engaged in significant asset transitions.

Source 🔗