KindlyMD Shares Plummet 9% After Company Misses Its Q3 Filing Deadline
KindlyMD’s share price plummeted over 9% yesterday after it announced that it won’t be able to meet the deadline for its third quarter earnings.
In paperwork filed with the US Securities and Exchange Commission (SEC), the company said that the complexity of the accounting related to its merger with Nakamoto earlier this year has “necessitated additional time to ensure the accuracy and completeness of the information.”
Large companies usually file within 40 days after the end of the quarter. All other publicly-listed companies in the US, including KindlyMD, have 45 days to file from the end of the quarter. For its third quarter that ended on Sept. 30, KindlyMD’s cutoff was Nov. 14.
Following the filing, the company’s shares, which trade under the ticker symbol “NAKA,” closed the latest trading day down just shy of 10%. There was also some additional selling activity in pre-market trading today, Google Finance data shows.
KindlyMD share price (Source: Google Finance)
The latest drop has extended the company’s decline over the past month, with NAKA now down over 29% on the 30-day time frame.
KindlyMD Expects A Net Loss Of $1.4 Million On Crypto Holdings
KindlyMD had merged with Nakamoto, which is a Bitcoin treasury company that used to trade as Nakamoto Games, earlier in the year.
As part of that merger, Nakamoto founder David Bailey was named as CEO in August. Shortly thereafter, KindlyMD purchased 5,743.91 BTC at a weighted average price of around $118,204 per Bitcoin.
In its filing to the SEC, KindlyMD said it expects to realize a loss of $1.4 million on digital assets, indicating that the firm sold some of its holdings.
It also said that there will be an unrealized loss of over $22 million on the digital assets that it still holds, as well as a $14.4 million loss on extinguishment of debt.
In addition to the losses on its digital holdings, KindlyMD said in its filing that it will report a $59 million loss on its acquisition of Nakamoto. If this is the case, it will mean that it paid more to acquire the company than the fair value of the net assets that it received in the purchase.
It’s not all doom and gloom for the company. KindlyMD added that it expects to report a $21.8 million positive change in the fair value of contingent liability, which means the company’s liabilities have been marked down in value.
Multiple Institutions Disclosed Holdings In NAKA
While KindlyMD pushes to finalize its third-quarter results and its share price drops, several companies have disclosed that they have invested in the company.
According to Bailey, at least 47 companies have revealed allocations in NAKA in their 13-F filings with the SEC so far.
Among those firms are BlackRock, VanEck, Fidelity, and Renaissance.
“We keep grinding everyday and eventually we’ll have built a behemoth,” Bailey said in the post.
Related Articles:
About Author
About Author
