Kindly MD (NAKA) Stock: Earnings Report Delayed as $59 Million Merger Loss Surfaces

TLDR

Table of Contents

Kindly MD (NAKA) postponed its Q3 earnings report filing past the November 14 deadline, citing complicated merger accounting
Preliminary figures show a $59 million loss on the Nakamoto Holdings acquisition plus $22 million in unrealized crypto losses
The stock fell 10% to $0.55 after the announcement, down 95% over the past six months
The company holds 5,765 BTC and became a bitcoin treasury vehicle after merging with Nakamoto Holdings in August
A $21.85 million gain from reduced contingent liabilities provides some offset to the substantial losses

Kindly MD notified regulators Friday it would miss the deadline for filing its third quarter financial results. The company needs extra time to finalize accounting related to its Nakamoto Holdings merger.

Kindly MD, Inc., NAKA

The SEC filing revealed preliminary loss figures that spooked investors. Shares dropped 10% to $0.55 on Monday following the announcement.

The healthcare company turned bitcoin treasury vehicle plans to submit its Form 10-Q within the five-day extension window. SEC rules allow this grace period for companies facing filing difficulties.

Merger Accounting Creates $59 Million Write-Down

The Nakamoto acquisition generated a $59 million loss for Kindly MD. This write-down means the company paid $59 million more than the acquired assets were worth.

David Bailey’s Nakamoto Holdings merged with Kindly MD in August 2025. Bailey became CEO of the combined entity, which now focuses on bitcoin treasury operations.

The company’s bitcoin holdings stand at 5,765 BTC. This makes Kindly MD the 19th largest bitcoin treasury company by holdings.

Crypto-related losses extend beyond the acquisition write-down. Unrealized losses on digital assets total $22.07 million for the quarter.

Kindly MD also recorded a $1.41 million realized loss from selling crypto assets. These transactions locked in actual losses during the three-month period.

Debt and Liability Changes Add to Financial Picture

The company expects to report a $14.45 million loss on debt extinguishment. This hit comes from restructuring obligations tied to the merger.

One positive item appears in the preliminary results. Kindly MD anticipates a $21.85 million gain from changes in contingent liability fair value.

This gain represents a reduction in what the company owes. The liability decreased in value during the quarter, creating an accounting benefit.

The stock has collapsed since the merger closed. Shares traded 95% below their price from six months ago.

Weekly performance showed a 25% decline leading up to Monday’s drop. Investors reacted negatively to both the filing delay and preliminary loss disclosure.

Kindly MD originally operated as an integrated healthcare services provider. The Nakamoto merger completely changed the company’s business model and strategic direction.

The accounting complexity stems from applying US GAAP standards to digital asset holdings. Bitcoin requires mark-to-market treatment that creates volatility in financial statements.

PCAOB review requirements add another layer of complexity. Public company audits must meet specific standards that take time to complete properly.

Bailey has stayed quiet about the stock decline and earnings delay. His recent public comments focused on other business ventures outside Kindly MD.

The company had 45 days to file its quarterly report under standard SEC timelines. Missing this deadline triggers additional regulatory scrutiny and compliance requirements.

Kindly MD stated it couldn’t file “without unreasonable effort or expense” given the merger accounting challenges. The company expects to meet the extended deadline within days.

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