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

KindlyMD (NAKA) announced it will miss the deadline for its quarterly earnings report due to complex merger-related accounting and significant preliminary losses linked to its recent acquisition of Nakamoto Holdings. The reported losses include about $1.41 million in realized losses on digital assets, approximately $22.07 million in unrealized losses, a $14.45 million loss from extinguishing debt, and a $59.75 million loss from the acquisition. However, these losses are partially offset by a $21.85 million positive change in the fair value of contingent liabilities. Following this announcement, NAKA's shares dropped by 7%, closing at $0.57. The company expects to submit its Form 10-Q within the five-day extension permitted by the SEC, emphasizing the intricacy of applying US GAAP accounting standards during its merger process.

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