KindlyMD Stock Plummets Nearly 10% After Missing Q3 Earnings Deadline Amid Complex Merger Accounting
KindlyMD, trading on the Nasdaq under the ticker NAKA, saw its stock fall nearly 10% following a missed Q3 earnings deadline. The stock closed around $0.55, marking a 25% decline in the past week and more than a 95% drop over six months.
The delay in reporting was attributed to accounting complexities arising from KindlyMD's merger earlier this year with Nakamoto, a Bitcoin treasury firm. To ensure accuracy, KindlyMD filed with the SEC rather than issuing a standard 10-Q report. Nakamoto's founder, David Bailey, who was named CEO of KindlyMD in August, has commented on other corporate leadership changes but did not address KindlyMD's share price or the late earnings filing.
Q3 results are expected to reflect significant year-over-year changes, including realized digital-asset losses of approximately $1.4 million and unrealized losses exceeding $22 million on held digital assets. The filing also details $14.4 million in losses from debt extinguishment and a substantial $59 million loss related to the Nakamoto acquisition. Notably, there is a reported $21.8 million positive change in the fair value of a contingent liability.
Regarding regulatory deadlines, while large companies typically file quarterly reports within 40 days after quarter-end and others have 45 days, the cutoff for Q3 ending September 30 was November 14. KindlyMD sought additional time beyond this deadline to address the complexities in their financial disclosures.
