Revenue and Loss - Revenue for the year ended December 31, 2025, was $1.82 million, a decrease of 33% from $2.72 million in 2024[362]. - The company reported a net loss before provision for income taxes of $52.23 million for 2025, compared to a loss of $3.62 million in 2024[355]. - The loss on change in fair value of digital assets was $166.09 million, reflecting a decline in Bitcoin price from $114,078 to $87,519 per Bitcoin[360]. - The loss on investments for 2025 was $9.92 million, primarily due to a decline in the fair value of Metaplanet common stock[361]. - The company experienced a loss on the acquisition of Nakamoto Holdings amounting to $59.8 million due to the difference between the fair value of shares issued and net liabilities acquired[371]. Operating Expenses - Total operating expenses for 2025 were $198.96 million, significantly up from $6.07 million in 2024, primarily due to costs associated with the Nakamoto Merger[355]. - General and administrative expenses increased to $11.76 million in 2025 from $1.91 million in 2024, largely due to transaction-related costs from the Nakamoto Merger[364]. Cash Flow and Liquidity - The company reported a net cash used in operating activities of $23.5 million for the year ended December 31, 2025, compared to $3.1 million in 2024, primarily due to an increase in net loss[377]. - The net cash used in investing activities was $680.0 million for the year ended December 31, 2025, significantly higher than $0.4 million in 2024, due to the net purchase of 5,342 Bitcoin[378]. - The net cash provided by financing activities was $723.8 million for the year ended December 31, 2025, compared to $5.2 million in 2024, driven by PIPE financings and proceeds from debt[379]. - The company’s liquidity is primarily supported by Bitcoin holdings, cash, and equity securities sales, with cash requirements focused on debt servicing and overhead expenses[368]. - As of December 31, 2025, the company held approximately 1,625 unencumbered Bitcoin worth approximately $142.2 million, cash and cash equivalents of $22.6 million, and an investment in publicly traded stock of $20.7 million[370]. Acquisitions and Investments - The acquisition of BTC Inc and UTXO on February 20, 2026, involved issuing 364,795,104 shares valued at $81.6 million[352]. - The fair value of the call option to acquire BTC Inc increased by $226.4 million as of December 31, 2025, allowing the company to purchase BTC Inc at $1.12 per share[371]. - The company plans to use proceeds from the sale of approximately 284 Bitcoin for $20 million to invest further in its businesses and replenish working capital[370]. Debt and Financing - The company entered into a Master Loan Agreement with Kraken for a loan of 210.0 million USDT at an 8.0% fixed rate, maturing on December 4, 2026, with 3,717 of its 5,342 Bitcoin held as collateral[369]. - The company approved a 2025 Repurchase Program to buy back up to $10 million worth of its Common Stock, with approximately $0.7 million repurchased by December 31, 2025[375]. Business Strategy - The company intends to exit its legacy healthcare business as of March 2026[365]. - As of December 31, 2025, the company held approximately 5,342 Bitcoin with a carrying value of $467.5 million, highlighting the significant market risk associated with Bitcoin price volatility[392][393].
Kindly MD, Inc.(KDLY) - 2025 Q4 - Annual Report