Kindly MD Delays Earnings Report Filing as Merger Losses Mount; Shares Drop

Kindly MD (NAKA) notified the SEC that it will be late filing its quarterly earnings report as it works through the detailed accounting tied to its August merger with Nakamoto Holdings.

The company, the 19th largest bitcoin treasury company, said it will not meet the deadline for its Form 10-Q for the period ended Sept. 30, but expects to submit the report within the five day extension allowed under SEC rules.

Kindly MD, originally an integrated health-care services provider, merged with David Bailey’s bitcoin BTC$92,851.35 focused Nakamoto Holdings to create a publicly traded bitcoin treasury vehicle. It now owns of 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 necessitated 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 following 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 on extinguishment of debt, and a $59.75 million loss on the Nakamoto acquisition, partially offset by a $21.85 million positive change in the fair value of contingent liabilities, the filing shows.

NAKA, is trading at $0.57, down 7% on the day.