DNA X, Inc.
For the period ended Jun 30, 2026. Filed Aug 19, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 19, 2026
SONM$2.13-7.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-20.
0001493152-26-024644
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-19.
0001493152-26-039226
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 48 previous paragraphs and 54 current paragraphs.
17 unchanged; 12 reworded; 25 added; 19 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
**Acquisition of assets of DNA X LLC.**On May 26, 2026, the Put Option referred to in our consolidated condensed financial statements, which allowed DNA Holdings to reacquire DNA X LLC, was terminated. This gave the Company full control over DNA X LLC and requires the Company to consolidate DNA X LLC with the Company’s financial statements commencing on May 26, 2026. We expect to continue to execute our strategy of adding enhancements to DNA X and re-launching DNA X in the fourth quarter of 2026.
Current report
Since the closing of the asset sale, we have focused on growing and developing our cryptocurrency trading platform, We closed the DNA X cryptocurrency trading platform to the public in March 2026 to allow us to develop and test enhancements. We have used third-party consultants for the software development and have licensed additional software to add additional services. In January 2026 and February 2026 the DNA X platform averaged $47 per month in commission revenue. Cost of revenue is primarily licensing fees on the software and is currently fixed at 50% of commission revenue. Once we re-launch the platform, we expect commissions to return to levels achieved in early 2026.
Current report
On May 26, 2026, we issued a convertible note to DNA Holdings and received cash proceeds of $1,800. On July 8, 2026 we sold convertible preferred stock in the Company to DNA Holdings for $2,500 in cash proceeds and the cancellation of the entire balance of $3,053 due under the convertible note. On August 7, 2026 we sold convertible preferred stock in the Company to DNA Holdings for $2,500 in cash proceeds. See Note 13 to our consolidated condensed financial statements included in Part I, Item 1 of this Quarterly Report. The cash proceeds from the two transactions will be used for general corporate purposes, to continue to enhance the DNA X platform, and to promote the platform once it is relaunched.
Current report
Total Net Revenues
Current report
There was no revenue from continuing operations during the three and six months ended June 30, 2025 and 2026 because we acquired DNA X LLC in the fourth quarter of 2025 and because revenue from the DNA X platform was not consolidated into the Company prior to the Company gaining accounting control of DNA X LLC on May 26, 2026. Revenue from DNA X LLC from December 15, 2025, when we acquired the business, until May 26, 2026, when the Company gained control of the business, was $120. Net income of $48 from DNA X LLC for the six months ending June 30, 2026 was recorded by the Company as income from investment in DNA X LLC. After May 26, 2026 we began consolidating the financials from DNA X LLC into the Company. There was no revenue from DNA X LLC from May 26, 2026 through June 30, 2026. We will consolidate future activity from DNA X LLC into the Company’s financial statements.
Current report
Cost of Revenues
Current report
Cost of revenues was $0 during the three and six months ended June 30, 2025 and 2026 because we acquired DNA X LLC in the fourth quarter of 2025 and because revenue from the DNA X platform was not consolidated prior to the Company gaining accounting control of DNA X LLC on May 26, 2026. Cost of revenues for the DNA X trading platform was approximately 50% of the revenue for the period that the DNA X website was operating before it was taken offline in March 2026. We expect the cost of revenues as a percentage of revenue to decrease as revenue increases in the future.
Current report
Research and Development
Current report
There were no R&D expenses for the DNA X business during the three and six months ended June 30, 2026 because software development costs were capitalized as intangible software assets From May 26, 2026 to June 30, 2026, $94 of software development costs were capitalized. These costs were primarily for direct labor by contractors to produce enhancements to the DNA X trading platform. Once the DNA X platform is relaunched, we will amortize the intangible software assets costs over the estimated useful life of the software.
Current report
General and administrative expenses for the three months ended June 30, 2026, decreased by $0.2 million compared to 2025 primarily because of lower legal expense in 2026.
Current report
General and administrative expenses for the six months ended June 30, 2026, increased by $2.6 million, or 174%, as compared to 2025, primarily due to $1.9 million in severance that was paid to employees that were terminated as a result of the completion of the asset sale, and $0.8 million in executive compensation that was included in continuing operations in 2026, but similar compensation was included in discontinued operations in 2025.
Current report
Interest expense
Current report
Interest expense decreased by $0.2 million for both the three months and six months ended June 30, 2026 as compared to the three and six months ended June 30, 2025 because the outstanding balance of the Streerterville note in 2025 was $3.3 million and the outstanding balance of the DNA Holding note in 2026 was $1.2 million until May 26, 2026. The Streeterville note was repaid in full on January 23, 2026 and the larger $3.1 million note with DNA Holdings was only active from May 26, 2026 through June 30, 2026.
Current report
Gain (Loss) on remeasurement of derivative liability
Current report
A derivative liability was recorded with the issuance of the note to DNA Holdings on December 15, 2025. The derivative liability represents the value of the conversion feature of the note. This derivative liability was remeasured at March 31, 2026, and at May 26, 2026 which was when the note was cancelled. A new derivative liability was recorded with the issuance of a new DNA Holdings Note on May 26, 2026, and was remeasured on June 30, 2026. Upon remeasurement, the derivative liability was adjusted to fair value, and the offset was recorded as a gain or loss on remeasurement. On May 26, 2026, the derivative liability from the December 15, 2025 DNA Holdings Note was derecognized when the note was cancelled. The derivative liability from the May 26, 2026 DNA Holdings Note was derecognized on July 8, 2026 when the note was cancelled and exchanged for shares of preferred stock. See Note 13 to our consolidated condensed financial statements included in Part I, Item 1 of this Quarterly Report.
Current report
Gain on extinguishment of debt
Current report
On May 26, 2026, the note dated December 15, 2025 that was held by DNA Holdings was cancelled in connection with DNA Holdings’ purchase of a new note with a principal amount of $3,053. The outstanding balances for the cancelled note for principal, loan discount, accrued interest, and derivative liability for the conversion feature were all derecognized and the resulting gain of $191 was recorded as a gain on extinguishment of debt.
Current report
During the six months ended June 30, 2026, the Company received $3.4 million in net cash from the sale of our legacy assets, and we received $1.8 million in proceeds from a new note that we issued to DNA Holdings on May 26, 2026. On July 8, 2026, we received $2.5 million in cash from the issuance of preferred stock to DNA Holdings. On August 7, 2026 we received an additional $2.5 million in cash from the issuance of preferred stock to DNA Holdings. See Note 13 to our consolidated condensed financial statements included in Part I, Item 1 of this Quarterly Report. The May 2026 convertible note that we issued to DNA Holdings was cancelled and exchanged for shares of preferred stock on July 8, 2026, leaving the Company with no indebtedness for borrowed money. Management believes that the $5 million received will be sufficient to pay our existing obligations for at least twelve months following the filing date of this Quarterly Report.
Current report
Cash flows from operating activities
Current report
For the six months ended June 30, 2026, cash used in operating activities was $5.5 million, primarily attributable to the non-cash portion of the gain on the sale of the assets of $15.3 million, partially offset by $5.1 million in net income and by cash used from a change in net operating assets and liabilities of $4.8 million, that includes a decrease in inventory of $5.5 million.
Current report
Cash flows from investing activities
Current report
For the six months ended June 30, 2026, the Company received $3.3 million in cash from the sale of assets.
Current report
Cash flows from financing activities
Current report
For the six months ended June 30, 2026, the Company received $1.8 million in cash from issuing a new convertible note to DNA Holdings.
Current report
For the six months ended June 30, 2025, the Company received $9.0 million in cash, net of issuance costs, from sales of common stock, as well as $2.8 million in net proceeds from the issuance of the Note and repaid $0.6 million borrowed under the Receivables Financing Agreement.
Removed paragraphs (19)
Previous report
We are currently operating on a limited basis to monitor the platform and address any bugs or performance issues. We plan to add additional features and products to the platform throughout 2026 as we execute our growth strategy. We will continue to monitor the platform to ensure that it can handle the anticipated increase in trading volume. We may use social media and traditional media to market our platform to potential customers. We may expand our marketing efforts as new products become available to customers.
Previous report
CONSOLIDATED STATEMENTS OF OPERATIONS
Previous report
PERIODS ENDED MARCH 31, 2026 and 2025
Previous report
Gain on sale of assets
Previous report
Gain on sale of assets of $15.6 million during the three months ended March 31, 2026 is attributable to the disposition of our legacy phone and hotspot business and is calculated as the consideration paid of $15.0 million less a working capital adjustment, less the book value of the assets sold and the liabilities assumed.
Previous report
The consolidated statement of operations of discontinued operations for the three months ended March 31, 2026 reflects the 23-day period prior to the completion of the asset sale. Revenue for the three months ended March 31, 2025 was $12.9 million higher than in the corresponding period in 2026 because we operated our legacy phone and hotspot business for the entire quarter in 2025 and because there was a one-time release of accrued promotional funds in 2025.
Previous report
Gross profit was negative in 2026 because we discontinued some products and wrote down inventory.
Previous report
Operating expenses were lower in 2026 because the period was only for 23 days as compared to an entire quarter in 2025.
Previous report
Income tax expense of $2.5 million is calculated on the gain on the sale of assets plus the operating net loss for the quarter, and an estimate of future net income or loss for the three remaining quarters of the year. Because the Company has net operating loss carryforwards, the actual cash that will be paid in the United States for income taxes for the 2026 tax year is estimated to be approximately $0.5 million. The estimated taxes are netted with the gain on sale of the assets and are included in discontinued operations.
Previous report
General and administrative expenses for the three months ended March 31, 2026, increased by $2.5 million compared to 2025 primarily due to employee severance ($1.1 million) and bonuses ($0.4 million) triggered by the completion of the asset sale in 2026. Profession fees for audit and tax services increased by $0.5 million in 2026 because of increased complexity with the purchase of DNA X LLC, and the asset sale transaction. Employee compensation after the asset sale for executives was included in General and Administrative in continuing operations in 2026, but employee compensation for executives in 2025 was allocated to discontinued operations. General and administrative expenses are expected to drop significantly for the remainder of 2026 as one-time costs related to the assets sale will not recur.
Previous report
Other Income
Previous report
Other income is net income from our DNA X cryptocurrency trading business for the first quarter of 2026. The increase of $0.05 million in comparison to the three months ended March 31, 2025 is due to the fact that we did not own this business in the first quarter of 2025.
Previous report
The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business for a period of at least one year from the issuance date of the accompanying consolidated financial statements. We had approximately $1.2 million in cash at March 31, 2026. On May 20, 2026, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with DNA Holdings Venture, Inc. (the “Purchaser”) pursuant to which the Company sold and issued to the Purchaser a convertible promissory note (the “Note”) in the principal amount of $3,053 for an aggregate purchase price in the same amount. The aggregate purchase price for the Note consisted of $1,800 in cash to the Company and the surrender of the convertible promissory note, dated December 15, 2025, in the principal amount of $1,200 issued by the Company to the Purchaser, including $53 of accrued unpaid interest on such principal amount. These $1,800 in loan proceeds are expected to provide sufficient working capital to pay our obligations through December 31, 2026, when the note matures. If the note is not converted into the Company’s common stock prior to December 31, 2026, then the Company will need to raise additional capital to repay the $3.0 million that will become due on December 31, 2026 from the note. Due to the uncertainty of either the note being converted or of us raising additional capital prior to December 31, 2026 , there is substantial doubt regarding our ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Previous report
Cash flows from operating activities – combined continuing and discontinued operations
Previous report
For the three months ended March 31, 2026, cash used in operating activities was $3.5 million, primarily attributable to the sale of phone and hotspot inventory and the sale of parts inventory from the discontinued phone and hotspot business of $5,5 million, lower prepaids of $1.7 million, offset by the paydown of accounts payable with the proceeds from the asset sale of $2.7 million.
Previous report
Cash flows from investing activities – combined continuing and discontinued operations
Previous report
For the three months ended March 31, 2026, cash provided from investing activities was $3.4 million in net cash received from the asset sale. In 2025, there were no significant investing activities.
Previous report
Cash flows from financing activities – combined continuing and discontinued operations
Previous report
For the three months ended March 31, 2025, the Company received $3.5 million in cash, net of issuance costs, from Streeterville for one of the notes.
Reworded paragraphs (12)
Previous wording
You should read the following discussion and analysis of our financial condition and results of operations together with “Cautionary Note About Forward-Looking Statements” and our unaudited condensed consolidated financial statements and related notes included under Item 1 of this Quarterly Report on Form 10-Q as well as our most recent Annual Report on Form 10-K for the year ended December 31, 2025 as amended, including Part 1, Item 1A “Risk Factors.”
Current wording
You should read the following discussion and analysis of our financial condition and results of operations together with “Cautionary Note About Forward-Looking Statements” and our condensed consolidated financial statements and related notes included under Item 1 of this Quarterly Report as well as our most recent Annual Report on Form 10-K for the year ended December 31, 2025 as amended, including Part 1, Item 1A “Risk Factors.”
Previous wording
We are a provider of crypto trading services to the public. Our services are available over the internet athttps://dnax.us. We serve individual cryptocurrency traders. Our products allow users to efficiently buy and sell cryptocurrencies with cash or cash equivalents, or to exchange one cryptocurrency for another cryptocurrency. Our platform allows users to execute strategies between pairs of cryptocurrencies that allow them to swap between the currencies as the prices diverge or converge. This allows users to automate strategies without the need to continuously monitor the market. We are developing products to increase the number of cryptocurrencies that are available for trading on our platform and products the Company expects to bring in additional customers and drive additional revenue from commissions and fees.
Current wording
We are a provider of cryptocurrency trading services to the public. Our services are available over the internet athttps://dnax.us. We serve individual cryptocurrency traders. Our products allow users to efficiently buy and sell cryptocurrencies with cash or cash equivalents, or to exchange one cryptocurrency for another cryptocurrency. Our platform allows users to execute strategies between pairs of cryptocurrencies that allow them to swap between the currencies as the prices diverge or converge. This allows users to automate strategies without the need to continuously monitor the market. We are developing products that facilitate the buying and selling of AI compute time from providers to users of AI compute time. The Company is currently operating the platform on a limited basis to monitor and address any bugs or performance issues. We plan to add additional features and products to the platform through the end of 2026 as we execute our growth strategy.
Previous wording
Prior to December 2025, when we acquired our platform, we operated under the name Sonim Technologies, Inc. and were primarily focused on designing and manufacturing cell phones and mobile hotspots. We developed the software that ran on our products. We completed the disposition of substantially all assets of our phone and hotspot business on January 23, 2026.
Current wording
Prior to December 2025, when we acquired our platform, we operated under the name Sonim Technologies, Inc. and were primarily focused on designing and manufacturing cell phones and mobile hotspots. We also developed the software that ran on our products. We completed the disposition of substantially all assets of our phone and hotspot business on January 23, 2026.
Previous wording
Ourhttps://dnax.us website allows users to trade or swap certain cryptocurrencies for other cryptocurrencies or for cash equivalent currencies. New customers can set up an account on our website that will allow them to trade cryptocurrencies. The customer owns the assets before and after the trade and commissions are automatically deducted from the trade. We do not take custody of any of our customers’ crypto assets. We employ various security measures in an effort to protect our customers and ourselves from cyber threats. The trades on our platform are generally completed immediately and there is no delay in settling the transactions.
Current wording
The Company’shttps://dnax.us website allows users to trade or swap certain cryptocurrencies for other cryptocurrencies or for cash equivalent currencies. New customers can set up an account on our website that will allow them to trade cryptocurrencies. The customer owns the assets before and after the trade and commissions are automatically deducted from the trade. We do not take custody of any of our customers’ crypto assets. We employ various security measures in an effort to protect our customers and ourselves from cyber threats. The trades on our platform are generally completed immediately and there is no delay in settling the transactions.
Previous wording
**Completion of the Asset Purchase Agreement with Pace Car Acquisition LLC.**On January 23, 2026, we completed the sale of substantially all assets and most liabilities related to our legacy phone and mobile hotspot business for a purchase price of $15.0 million in cash, less working capital, indebtedness and transaction expense adjustments for a net sales price of $13.5 million.
Current wording
**Completion of the Asset Purchase Agreement with Pace Car Acquisition LLC.**On January 23, 2026, we completed the sale of substantially all assets and most liabilities related to our legacy phone and mobile hotspot business for a purchase price of $15,000 in cash, less working capital adjustments, indebtedness and transaction expense adjustments for a net sales price of $13,500.
Previous wording
The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the operating results to be expected for the full year or in any future period. On January 23, 2026, we completed the sale of our phone and hotspots assets, and many of our employees transferred to the buyer. The accompanying consolidated financial statements and certain tables below present operations from this legacy business as discontinued operations for all periods presented, and the assets and liabilities of this legacy business are presented as assets and liabilities held for sale for the period ended December 31, 2025. Since that time, we have focused on growing and developing our cryptocurrency trading platform, DNA X. The following table presents key components of the Company’s results of discontinued operations for the three months periods ended March 31, 2026 and 2025:
Current wording
The results of operations for the six months ended June 30, 2026 are not necessarily indicative of the operating results to be expected for the full year or in any future period. On January 23, 2026, we completed the sale of our phone and hotspots assets, and many of our employees transferred to the buyer. The accompanying consolidated financial statements and certain tables below present operations from this legacy business as discontinued operations for all periods presented, and the assets and liabilities of this legacy business are presented as assets and liabilities held for sale for the period ended December 31, 2025.
Previous wording
The following table presents key components of our results of continuing operations (dollars in thousands):
Current wording
The following tables present key components of our results of operations for continuing operations (dollars in thousands):
Previous wording
Going Concern, Liquidity and Capital Resources
Current wording
Liquidity and Capital Resources
Previous wording
For the three months ended March 31, 2025, cash used in operating activities was $9.6 million, primarily attributable to net cash used in a change in net operating assets and liabilities of $6.1 million and net income of $0.5 million, excluding net non-cash operating activity of $4.0 million. The change in net operating assets and liabilities was primarily due to net payments made on accounts payable and an increase in contract fulfillment assets, which are capitalized costs for product certifications, partially offset by a decrease in inventory. Non-cash charges primarily consist of $5.3 million related to the expiration of customer allowance agreements, $1.1 million in depreciation and amortization and $0.3 million for stock-based compensation.
Current wording
For the six months ended June 30, 2025, cash used in operating activities was $14.5 million, primarily attributable to net cash used in a change in net operating assets and liabilities of $6.2 million and a net loss of $7.0 million, excluding net non-cash operating activity of $1.3 million. The change in net operating assets and liabilities was primarily due to net payments made on accounts payable and accrued liabilities and an increase in contract fulfillment assets, which are capitalized costs for product certifications, partially offset by a decrease in accounts receivable. Non-cash charges primarily consist of $5.5 million related to the expiration of customer allowance agreements, $1.9 million in depreciation and amortization, $1.2 million for stock-based compensation, and $1.1 million for the impairment of contract fulfillment assets related to the end of life of our legacy products.
Previous wording
For the three months ended March 31, 2026, there were no financing activities.
Current wording
For the six months ended June 30, 2025, there were no investing activities.
Previous wording
Our discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America. Certain accounting policies and estimates are particularly important to the understanding of our financial position and results of operations and require the application of significant judgment by our management or can be materially affected by changes from period to period in economic factors or conditions that are outside of our control. As a result, they are subject to an inherent degree of uncertainty. In applying these policies, our management uses their judgment to determine the appropriate assumptions to be used in the determination of certain estimates. Those estimates are based on our historical operations, our future business plans and projected financial results, the terms of existing contracts, our observance of trends in the industry, information provided by our customers and information available from other outside sources, as appropriate.
Current wording
Our discussion and analysis of financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America. Certain accounting policies and estimates are particularly important to the understanding of our financial position and results of operations and require the application of significant judgment by our management or can be materially affected by changes from period to period in economic factors or conditions that are outside of our control. As a result, they are subject to an inherent degree of uncertainty. In applying these policies, our management uses their judgment to determine the appropriate assumptions to be used in the determination of certain estimates. Those estimates are based on our historical operations, our future business plans and projected financial results, the terms of existing contracts, our observance of trends in the industry, information provided by our customers and information available from other outside sources, as appropriate.
Previous wording
A description of our critical accounting policies that represent the more significant judgments and estimates used in the preparation of our consolidated financial statements was provided in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no changes to our critical accounting policies and estimates described in the Annual Report on Form 10-K for the year ended December 31, 2025, that have had a material impact on our unaudited condensed consolidated financial statements and related notes.
Current wording
A description of our critical accounting policies that represent the more significant judgments and estimates used in the preparation of our consolidated financial statements was provided in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no changes to our critical accounting policies and estimates described in the Annual Report on Form 10-K for the year ended December 31, 2025, that have had a material impact on our condensed consolidated financial statements and related notes.