Kindly MD (NAKA) notified the SEC that it will file its quarterly earnings report late as it works through detailed accounting tied to its August merger with Nakamoto Holdings.
The company, the 19th largest bitcoin treasury company, said it will miss the deadline for its Form 10-Q for the period ending September 30, but expects to file the report within the five-day extension allowed by SEC rules.
Kindly MD, originally a provider of integrated healthcare services, merged with David Bailey’s bitcoin holdings focused on Nakamoto to create a publicly traded bitcoin treasury vehicle. You now own 5,765 BTC.
“The complexity of accounting related to the Merger, including the application of relevant accounting standards under US GAAP and review procedures consistent with PCAOB requirements, has required additional time to ensure the accuracy and completeness of the information to be included in the Form 10 Q,” Kindly MD said in the filing.
Preliminary figures point to substantial losses after the merger, including a realized loss on digital assets of about $1.41 million, an unrealized loss of about $22.07 million, a $14.45 million loss from debt extinguishment, and a $59.75 million loss from the Nakamoto acquisition, partially offset by a $21.85 million positive change in the fair value of contingent liabilities, shows the document.
NAKA is trading at $0.57, down 7% on the day.
