-Strengthened balance sheet with $1.8 million cash from new convertible debt in Q2 and additional $5.0 million through the sale of preferred stock after quarter end
-Converted $3.1 million outstanding note to preferred stock, further optimizing the balance sheet
SAN DIEGO, Aug. 19, 2026 (GLOBE NEWSWIRE) -- DNA X, Inc. (Nasdaq: SONM) (“DNA X” or the “Company”), a developer of intelligent digital-asset technologies, today announced financial results for the second quarter ended June 30, 2026.
“The second quarter marked an important milestone as we secured the capital and resources necessary to advance our strategic priorities and position DNA X for its next phase of growth," said Mike Mulica, acting Chief Executive Officer. "With these transactions, we are enhancing our ability to execute on our vision, expand our exposure to the accelerating AI economy, creating long-term value for our shareholders.”
During the quarter, the Company raised $1.8 million cash through the issuance of a $3.1 million convertible note that cancelled an existing $1.3 million note. In July 2026, this $3.1 million note was cancelled and preferred stock was issued to the note holder for $6.00 per share. In July and August 2026, $5.0 million in cash was raised through the issuance of additional preferred stock at $6.00 per share. Each share of preferred stock can be converted to common shares on a one-for-one basis after stockholders’ approval is obtained.
The cash raised will be used to accelerate product and business development at DNA X.
Second Quarter 2026 Financial Highlights:
- Revenue: There was no revenue from continuing operations because the AI trading platform was closed to the public during the quarter and legacy activities are included as discontinued operations. The Company expects revenue from the trading platform to begin towards the end of the third quarter 2026 or the beginning of the fourth quarter 2026.
- General & Administrative Expenses: Second-quarter general and administrative expenses from continuing operations were $1.3 million, which reflects the downsizing of the Company following the sale of the Company's legacy business.
- Cash Position: The Company ended the quarter with $0.9 million. Subsequent to June 30, 2026, the Company received $5.0 million in cash from the sale of preferred stock. This cash will be used for working capital purposes and to support and grow the DNA X trading platform business.
About DNA X, Inc. DNA X, Inc. (Nasdaq: SONM) operates an AI-driven trading platform that applies advanced artificial intelligence to automate trading strategies.
For more information, visit https://ir.dna-x.global.
Media Contact:
Alex Asnovich
DNA X, Inc.
alex@dnax.global
Investor Relations Contact:
Clay Crolius
DNA X, Inc.
clay@dnax.global
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release that do not relate to matters of historical fact are forward-looking statements, including, without limitation, statements regarding the Company’s strategic transformation, the expected growth, performance and market opportunities of the DNA X trading platform, and the Company’s future operations and financial performance.
These forward-looking statements are based on the Company’s current expectations and assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, but are not limited to: risks related to the Company’s ability to successfully integrate and operate the DNA X trading platform and achieve anticipated growth; the early-stage nature of the Company’s current business and the volatility of the cryptocurrency markets; the Company’s recent disposition of its mobile device design and manufacturing business; the Company’s ability to obtain or maintain sufficient liquidity to execute its business plan; potential delays or challenges in executing its strategic plans; general economic, market and industry conditions; and the Company’s ability to maintain compliance with Nasdaq listing requirements.
Additional information regarding these and other risks and uncertainties is included in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company cautions you not to place undue reliance on forward-looking statements, which speak only as of the date of this press release, and undertakes no obligation to update such statements, except as required by law.
| DNA X, INC. CONSOLIDATED BALANCE SHEETS (IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS) | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 900 | $ | 1,303 | ||||
| Receivable for cash held back from the asset sale | 1,248 | — | ||||||
| Receivable, related party | 15 | — | ||||||
| Prepaid expenses and other current assets | 759 | 676 | ||||||
| Current assets held for sale | — | 26,930 | ||||||
| Total Current assets | 2,922 | 28,909 | ||||||
| Investment in DNA X LLC under equity method | — | 1,242 | ||||||
| Identifiable intangible assets | 1,379 | — | ||||||
| Deferred tax assets | — | 1,441 | ||||||
| Other assets | 216 | 274 | ||||||
| Non-current assets held for sale | — | 12,032 | ||||||
| Total assets | $ | 4,517 | $ | 43,898 | ||||
| Liabilities and stockholders’ deficit | ||||||||
| Accounts payable | 683 | 4,030 | ||||||
| Accrued liabilities | 960 | 704 | ||||||
| Promissory note, net from related party | 2,400 | 1,035 | ||||||
| Promissory notes, net | — | 4,030 | ||||||
| Derivative liability | 797 | 171 | ||||||
| Income tax payable | 309 | 2,598 | ||||||
| Current liabilities held for sale | — | 38,057 | ||||||
| Total current liabilities | 5,149 | 50,625 | ||||||
| Deferred tax liability | 600 | — | ||||||
| Total liabilities | 5,749 | 50,625 | ||||||
| Commitments and contingencies | — | — | ||||||
| Redeemable common stock; $0.001 par value; 223,201 shares issued and outstanding; redemption value $1,228 as of December 31, 2025 | — | 1,228 | ||||||
| Stockholders’ deficit | ||||||||
| Common stock, $0.001 par value per share; 1,000,000,000 shares authorized: and 1,488,268 and 1,265,067 shares issued and outstanding at June 30, 2026 and December 31, 2025 respectively* | 1 | 1 | ||||||
| Preferred stock, $0.001 par value per share, 5,000,000 shares authorized: and no shares issued and outstanding at June 30, 2026 and December 31, 2025 | — | — | ||||||
| Additional paid-in capital* | 297,674 | 296,309 | ||||||
| Accumulated deficit | (298,907 | ) | (304,265 | ) | ||||
| Total stockholders’ deficit | (1,232 | ) | (7,955 | ) | ||||
| Total liabilities, redeemable common stock, and stockholders’ deficit | $ | 4,517 | $ | 43,898 | ||||
| * | Adjusted retroactively to reflect the 1-for-18 reverse stock split that became effective on October 28, 2025. |
| DNA X, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS) (UNAUDITED) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Continuing operations | ||||||||||||||||
| Net revenues | $ | — | $ | — | $ | — | $ | — | ||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 1,278 | 1,471 | 4,896 | 2,341 | ||||||||||||
| Total operating expenses | 1,278 | 1,471 | 4,896 | 2,341 | ||||||||||||
| Net loss from operations | (1,278 | ) | (1,471 | ) | (4,896 | ) | (2,341 | ) | ||||||||
| Interest expense, net | (140 | ) | (389 | ) | (271 | ) | (480 | ) | ||||||||
| Loss on remeasurement of derivative liability | (11 | ) | — | (238 | ) | — | ||||||||||
| Gain on extinguishment of debt | 191 | — | 191 | — | ||||||||||||
| Equity income from DNA X LLC | — | — | 48 | — | ||||||||||||
| Net loss from continuing operations before income taxes | (1,238 | ) | (1,860 | ) | (5,166 | ) | (2,821 | ) | ||||||||
| Income tax benefit from continuing operations | — | — | — | — | ||||||||||||
| Net loss from continuing operations | (1,238 | ) | (1,860 | ) | (5,166 | ) | (2,821 | ) | ||||||||
| Discontinued operations | ||||||||||||||||
| Income (loss) from discontinued operations | (9 | ) | (5,615 | ) | 10,259 | (4,196 | ) | |||||||||
| Net income (loss) | $ | (1,247 | ) | $ | (7,475 | ) | $ | 5,093 | $ | (7,017 | ) | |||||
| Net income (loss) per share basic and diluted: | ||||||||||||||||
| Continuing operations* | $ | (0.91 | ) | $ | (3.52 | ) | $ | (3.95 | ) | $ | (6.61 | ) | ||||
| Discontinued operations* | $ | (0.01 | ) | $ | (10.63 | ) | $ | 7.84 | $ | (9.82 | ) | |||||
| Net income* | $ | (0.92 | ) | $ | (14.15 | ) | $ | 3.89 | $ | (16.43 | ) | |||||
| Weighted-average shares used in computing net income (loss) per share: | ||||||||||||||||
| Basic | 1,350,914 | 528,367 | 1,308,227 | 426,962 | ||||||||||||
| Diluted | 1,350,914 | 528,367 | 1,308,227 | 426,962 | ||||||||||||
| * | Adjusted retroactively to reflect the 1-for-18 reverse stock split that became effective on October 28, 2025. |
