Kindly MD (NAKA) informed the SEC that it will late file its quarterly earnings report as it works on detailed accounting related 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 ended September 30, but plans to submit the report within the five-day period allowed by SEC rules.
Kindly MD, originally an integrated healthcare services provider, has merged with David Bailey’s bitcoin concentrated Nakamoto Holdings to create a publicly traded Bitcoin cash vehicle. She now owns 5,765 BTC.
“The complexity of merger-related accounting, including the application of relevant accounting standards under U.S. GAAP and review procedures consistent with PCAOB requirements, 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 show substantial losses as a result of the merger, including a realized loss on the digital assets of approximately $1.41 million, an unrealized loss of approximately $22.07 million, a loss of $14.45 million on the extinguishment of debt and a loss of $59.75 million on the Nakamoto acquisition, partially offset by a positive change of $21.85 million in the fair value of the contingent liabilities, according to the file.
NAKA is trading at $0.57, down 7% on the day.
