DNA X, Inc. Reports First Quarter 2026 Financial Results
DNA X (NASDAQ: SONM) reported first quarter 2026 results and outlined its strategic shift to AI-driven crypto trading.
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Rhea-AI Summary
DNA X (NASDAQ: SONM) reported first quarter 2026 results and outlined its strategic shift to AI-driven crypto trading.
The company closed the $15 million sale of its mobile device assets to NEXA, generating $6.3 million net income in Q1 2026. There was no revenue from continuing operations, as legacy phone and hotspot activities are treated as discontinued operations.
General and administrative expenses from continuing operations were $3.6 million, including $1.5 million in severance and $0.9 million in professional services. DNA X ended the quarter with $1.2 million in cash from continuing operations and agreed on May 20, 2026 to raise an additional $1.8 million in new debt to fund working capital and growth of its AI and crypto trading platform.
The company completed its rebranding to DNA X and plans to launch an enhanced DNA X AI trading platform later in 2026.
Positive
- Asset sale to NEXA for $15 million, with $12 million received immediately
- Q1 2026 net income of $6.3 million from the asset sale
- $1.2 million quarter-end cash from continuing operations, plus $1.8 million new debt committed
- Proceeds used to repay debt and support DNA X AI trading platform
- Rebranding to DNA X completed, with focus on AI and crypto trading business
Negative
- No revenue from continuing operations in Q1 2026
- General and administrative expenses of $3.6 million from continuing operations
- Includes $1.5 million one-time severance and $0.9 million professional service costs
- Low cash balance of $1.2 million before new debt financing
- Additional $1.8 million funding raised through issuance of new debt
Details
News Market Reaction – SONM
On May 21, the first trading day after this news, SONM closed 12.07% below the previous close.
Data tracked by StockTitan Argus for the May 21 session.
Key Figures
- Asset sale price
- $15.0 million
- Sale of mobile device assets to NEXA on Jan 23, 2026
- Working capital adjustment
- $1.5 million
- Reduction to NEXA asset sale purchase price
- Immediate cash received
- $12.0 million
- Cash paid at closing of asset sale
- Deferred cash payment
- $1.5 million
- Remaining sale proceeds due Oct 2026, subject to claims
- Net income from sale
- $6.3 million
- Q1 2026 net income impact from asset sale
- G&A expenses
- $3.6 million
- Q1 2026 continuing-operations general & administrative expenses
- Severance costs
- $1.5 million
- One-time severance included in Q1 2026 G&A
- New debt financing
- $1.8 million
- Additional cash raised via new debt agreement on May 20, 2026
Previous Earnings Reports
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Reported 2025 net loss and detailed pivot to crypto trading platform.
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Revenue growth, narrowing GAAP loss, and asset-sale agreement with NEXA.
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Revenue decline, larger net loss, and reliance on financings for liquidity.
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Sequential revenue growth and return to net income from devices business.
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Expansion strategy and multiple 5G product launches with Tier 1 partners.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
machine learning technical
working capital financial
discontinued operations financial
continuing operations financial
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- Closed sale of the Company's mobile device assets to NEXA in January 2026
- Completed the transfer of the operations of the phone and hotspot business to NEXA
- Focused on enhancing the DNA X trading platform to prepare the platform for its initial growth phase
San Diego, California--(Newsfile Corp. - May 20, 2026) - DNA X, Inc. (NASDAQ: SONM), a provider of cryptocurrency trading services, today announced its financial results for the first quarter ended March 31, 2026.
The company operates the DNA X AI trading platform business, and expects to launch an enhanced version to the public later this year. The platform is designed to harness advanced AI and machine learning technologies to automate intelligent trading strategies, enabling clients to capitalize on data-driven insights and dynamic opportunities.
The Company completed the sale of its mobile device design and manufacturing business to NEXA Mobility, a private company in the hardware space on January 23, 2026. The purchase price of the assets was
On January 23, 2026, the Company successfully rebranded itself as DNA X, Inc., from Sonim Technologies Inc. The stock ticker on Nasdaq remains SONM and our primary corporate offices remain in San Diego.
The asset sale resulted in
"Having successfully completed a strategic exit from our legacy business, management has made a deterministic decision to reallocate our resources into the high-growth, high-margin decentralized AI and crypto trading sectors," said Mike Mulica, acting Chief Executive Officer. "This pivotal transition marks the beginning of our value build phase, positioning DNA X to deliver sustainable, long-term value for our shareholders through AI and crypto trading innovation."
First Quarter 2026 Financial Highlights:
- Revenue: There was no revenue from continuing operations because revenue from our phone and hotspot operations was included in discontinued operations. Our AI platform activities are accounted for as an investment and are reflected as other income.
- General & Administrative Expenses: First-quarter general and administrative expenses from continuing operations were
$3.6 million and included one time severance costs of$1.5 million and$0.9 million in professional services for our annual audit and tax services. We expect general & administrative expenses to be much lower in the next few quarters because we have downsized the organization and we have completed our annual audit. - Cash Position: We ended the quarter with
$1.2 million in cash from continuing operations. On May 20, 2026 we entered into an agreement to raise an additional$1.8 million in cash by issuing new debt. This cash will be used for working capital purposes and to support and grow the DNA X AI and crypto trading business.
About DNA X, Inc. DNA X operates an advanced artificial intelligence platform that automates complex workflows and decision-making using state-of-the-art AI models. For more information, visit https://ir.dna-x.global.
Media and 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, anticipated use of proceeds from the sale of the Company's mobile device design and manufacturing business, 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)
| March 31, 2026 | December 31, 2025 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 1,195 | $ | 1,303 | |||
| Receivable for cash held back from the asset sale | 1,500 | — | |||||
| Prepaid expenses and other current assets | 608 | 676 | |||||
| Current assets held for sale | — | 26,930 | |||||
| Total Current assets | 3,303 | 28,909 | |||||
| Investment in DNA X LLC under equity method | 1,290 | 1,242 | |||||
| Deferred tax assets | — | 1,441 | |||||
| Other assets | 245 | 274 | |||||
| Non-current assets held for sale | — | 12,032 | |||||
| Total assets | $ | 4,838 | $ | 43,898 | |||
| Liabilities and stockholders' deficit | |||||||
| Accounts payable | 719 | 4,030 | |||||
| Accrued liabilities | 1,576 | 704 | |||||
| Promissory note, net from related party | 1,072 | 1,035 | |||||
| Promissory notes, net | — | 4,030 | |||||
| Derivative liability | 398 | 171 | |||||
| Income tax payable | 556 | 2,598 | |||||
| Current liabilities held for sale | — | 38,057 | |||||
| Total current liabilities | 4,321 | 50,625 | |||||
| Deferred tax liability | 600 | — | |||||
| Total liabilities | 4,921 | 50,625 | |||||
| Commitments and contingencies | — | — | |||||
| Redeemable common stock; | 900 | 1,228 | |||||
| Stockholders' deficit | |||||||
| Common stock, | 1 | 1 | |||||
| Preferred stock, | — | — | |||||
| Additional paid-in capital* | 296,613 | 296,309 | |||||
| Accumulated deficit | (297,597 | ) | (304,265 | ) | |||
| Total stockholders' deficit | (983 | ) | (7,955 | ) | |||
| Total liabilities, redeemable common stock, and stockholders' deficit | $ | 4,838 | $ | 43,898 | |||
| *Adjusted retroactively to reflect the 1-for-18 reverse stock split that became effective on October 28, 2025. | |||||||
DNA X, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
(UNAUDITED)
| Three Months Ended March 31, | ||||||
| 2026 | 2025 | |||||
| Continuing operations: | ||||||
| Net revenues | $ | — | $ | — | ||
| Operating expenses | ||||||
| General and administrative | 3,618 | 870 | ||||
| Total operating expenses | 3,618 | 870 | ||||
| Net loss from operations | (3,618 | ) | (870 | ) | ||
| Interest expense, net | (131 | ) | (91 | ) | ||
| Loss on remeasurement of derivative liability | (227 | ) | — | |||
| Equity income from DNA X LLC | 48 | — | ||||
| Net loss from continuing operations before income taxes | (3,928 | ) | (961 | ) | ||
| Income tax expense from continuing operations | — | — | ||||
| Net loss from continuing operations | (3,928 | ) | (961 | ) | ||
| Discontinued Operations: | ||||||
| Income from discontinued operations, net of tax | 10,268 | 1,419 | ||||
| Net income | $ | 6,340 | $ | 458 | ||
| Net earnings (loss) per share basic and diluted: | ||||||
| Continuing operations* | (3.11 | ) | (2.96 | ) | ||
| Discontinued operations* | 8.12 | 4.37 | ||||
| Net income* | $ | 5.01 | $ | 1.41 | ||
| Weighted-average shares used in computing net loss per share: | ||||||
| Basic and diluted* | 1,265,067 | 324,431 | ||||
| *Adjusted retroactively to reflect the 1-for-18 reverse stock split that became effective on October 28, 2025. | ||||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298202
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