DNA X, Inc. Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
DNA X (Nasdaq: SONM) reported second quarter 2026 results, highlighting balance-sheet restructuring and new capital to fund its AI-driven trading platform. The company raised $1.8 million in cash during Q2 via a $3.1 million convertible note that replaced a prior $1.3 million note, which was then converted into preferred stock in July 2026 at $6.00 per share. In July and August 2026, DNA X raised an additional $5.0 million in cash through preferred stock issuances at the same price.
The company reported no revenue from continuing operations in Q2 because the AI trading platform was closed to the public, and legacy business is treated as discontinued operations. General and administrative expenses from continuing operations were $1.3 million. DNA X ended the quarter with $0.9 million in cash, with a further $5.0 million received after quarter-end.
Positive
- Raised Q2 cash via new convertible note of $1.8 million
- Post‑quarter preferred stock issuance generated additional $5.0 million cash
- Common stockholders’ deficit improved to $(1.232) million from $(7.955) million
- Q2 2026 G&A from continuing operations decreased to $1.278 million
- Six‑month 2026 net income was $5.093 million versus prior‑year loss
Negative
- No revenue from continuing operations in Q2 2026
- Q2 2026 net loss from continuing operations was $1.238 million
- Six‑month 2026 net loss from continuing operations totaled $5.166 million
- Quarter‑end cash declined to $0.9 million from $1.303 million
- Derivative liability increased to $0.797 million from $0.171 million
- Related‑party promissory note balance rose to $2.4 million from $1.035 million
News Explained
Preferred-stock conversion could dilute existing holders, but it remains conditional on stockholder approval.
DNA X has issued preferred stock that can convert one-for-one into common shares after stockholder approval, creating a potential increase in the common share count and dilution of existing holders.
The conversion remains approval-dependent, so the ownership effect is a possible future change rather than a completed conversion under the terms disclosed.
At
Market reaction after 2Q26 earnings report: SONM +8.88%
Following this news, SONM has gained 8.88%, reflecting a notable positive market reaction. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $3.68.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 20 | 1Q26 earnings | Negative | -12.1% | No continuing-operations revenue and ongoing platform funding needs accompanied the quarterly results. |
| Apr 14 | FY25 earnings | Neutral | -6.0% | Asset-sale proceeds and strategic transition were reported alongside leadership changes and a negative reaction. |
| Oct 31 | 3Q25 earnings | Positive | +4.4% | Revenue growth and a narrowed loss accompanied the legacy-business asset-sale agreement. |
| Aug 08 | 2Q25 earnings | Negative | -3.9% | Revenue declined and the company reported a larger loss with additional financing activity. |
| May 12 | 1Q25 earnings | Positive | -23.5% | Sequential revenue growth, net income, and lower operating expenses preceded a negative reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events averaged a -8.22% move, with negative reactions following three of the five historical earnings announcements.
Key Terms
convertible note financial
discontinued operations financial
derivative liability financial
stockholders’ deficit financial
reverse stock split financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
-Strengthened balance sheet with
-Converted
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
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; | — | 1,228 | ||||||
| Stockholders’ deficit | ||||||||
| Common stock, | 1 | 1 | ||||||
| Preferred stock, | — | — | ||||||
| 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. |
