Financial Performance - Net revenues for the six months ended June 30, 2025, were $988,182, a decrease of 33% from $1,468,086 in the same period of 2024[14] - Operating expenses for the six months ended June 30, 2025, totaled $4,421,414, an increase of 61% compared to $2,742,406 in the prior year[14] - The net loss for the six months ended June 30, 2025, was $3,451,798, compared to a net loss of $1,601,979 for the same period in 2024, reflecting a 115% increase in losses[14] - The company reported a loss per common share of $0.54 for the six months ended June 30, 2025, compared to a loss of $0.33 in the same period of 2024[14] - Total net revenues for the six months ended June 30, 2025, were $988,182, a decrease of 32.6% from $1,468,086 in the same period of 2024[32] - The accumulated deficit increased to $11,227,499 as of June 30, 2025, from $7,775,701 as of December 31, 2024, marking a rise of 44.5%[12] Assets and Liabilities - Total assets increased to $9,890,282 as of June 30, 2025, compared to $3,677,992 as of December 31, 2024, representing a growth of 168%[12] - Cash and cash equivalents rose to $6,024,604 as of June 30, 2025, up from $2,273,624 at the end of 2024, marking a 164% increase[12] - The total liabilities decreased to $923,394 as of June 30, 2025, from $1,109,682 at the end of 2024, a reduction of 17%[12] - The total property and equipment, net, as of June 30, 2025, was $84,058, down from $122,955 as of December 31, 2024[35] - As of June 30, 2025, the total operating lease liabilities amounted to $559,018, a decrease from $634,760 as of December 31, 2024, reflecting a reduction of approximately 11.9%[38] Shareholder Equity and Stock Activity - Stockholders' equity increased to $8,966,888 as of June 30, 2025, from $2,568,310 at the end of 2024, indicating a growth of 250%[12] - The number of common shares outstanding increased to 7,576,321 as of June 30, 2025, from 6,050,148 as of December 31, 2024[12] - The company issued 1,455,990 shares of common stock upon the exercise of warrants, contributing to the increase in stockholders' equity[17] - The company recorded stock-based compensation expense related to stock options of $552,864 for the six months ended June 30, 2025, compared to $15,500 for the same period in 2024, indicating a significant increase[55] - The company issued 1,511,320 shares from warrant exercises, generating a total of $9,216,534 from these exercises[76] Cash Flow - Cash flows from operating activities resulted in a net cash outflow of $2,776,302 for the six months ended June 30, 2025, compared to an outflow of $1,126,976 in 2024[20] - Net cash used in investing activities for the six months ended June 30, 2025, was $2,521,108, compared to $11,182 in the same period of 2024[20] - Net cash provided by financing activities was $9,048,390 for the six months ended June 30, 2025, compared to $5,352,664 in 2024[20] Digital Assets - Digital assets held by the company included 21 BTC with a cost basis of $2,289,585 and a fair value of $2,250,566 as of June 30, 2025[33] - The company recognized an unrealized loss of $39,019 from the remeasurement of digital assets during the six months ended June 30, 2025[34] - The company incurred an unrealized loss on digital assets of $39,019 for the six months ended June 30, 2025[14] Merger and Financing Activities - The Company approved a Merger Agreement with Nakamoto, with the transaction including PIPE Financing of approximately $511.7 million at a price of $1.12 per share[68] - The Company plans to increase the number of authorized shares of Company Common Stock to 10 billion as part of the Governance Proposal[68] - The Additional PIPE Financing was approved for an aggregate amount of approximately $51.5 million at a price of $5.00 per share[69] - The Merger Agreement includes a termination fee of $2.5 million payable by either party under certain conditions[73] - On May 18, 2025, approximately 50.76% of the voting power approved the Merger and related transactions[71] - On June 19, 2025, approximately 50.14% of the voting power approved the Additional PIPE Issuance and related transactions[72]
Kindly MD, Inc.(KDLY) - 2025 Q2 - Quarterly Report