STOCK TITAN

Massive non-cash warrant error drives 2025 restatement at Stablecoin (NBY)

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Stablecoin Development Corporation announced that investors should no longer rely on its audited consolidated financial statements for the year ended December 31, 2025, due to an error in accounting for certain pre-funded warrants issued on October 16, 2025. An anti-dilution adjustment increased the shares issuable under these warrants from 1,081,082 to 22,664,040 and reduced the exercise price per share from $0.05 to $0.002385. This will increase the reported warrant liability as of December 31, 2025 from $30.4 million to $639.1 million and increase the net loss for 2025 from $22.1 million to $630.8 million. The company states these adjustments are entirely non-cash and do not affect cash, revenue, operating expenses, operating income, or cash flows. It plans to restate the 2025 financial statements in a Form 10-K/A and expects to reclassify the pre-funded warrants from a liability to equity in its financial statements for the quarter ended March 31, 2026, following stockholder approval on March 12, 2026.

Positive

  • None.

Negative

  • Material 2025 restatement and larger reported loss: Correcting the anti-dilution accounting on pre-funded warrants raises warrant liability from $30.4 million to $639.1 million and increases reported 2025 net loss from $22.1 million to $630.8 million, a substantial change in the company’s stated bottom line, even though it is non-cash.

Insights

Material non-cash warrant error forces a major 2025 loss restatement.

The company identified a significant error in how it accounted for anti-dilution features of pre-funded warrants, requiring a restatement of its 2025 audited financials. The warrant liability jumps from $30.4 million to $639.1 million, and reported net loss rises sharply.

Although the company emphasizes the adjustments are entirely non-cash and do not change revenue, operating metrics, or cash flows, the restatement materially alters reported profitability for 2025. Such corrections can influence how lenders and investors view past results and risk disclosures, even without direct cash impact.

The planned Form 10-K/A and the expected reclassification of the pre-funded warrants from a liability to equity in the Q1 2026 financial statements, after the March 12, 2026 stockholder approval, will be important for understanding the company’s updated balance sheet structure and warrant treatment.

Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report Governance
Previously issued financial statements should no longer be relied upon due to errors or restatements.
Reverse stock split ratio 1-for-5 Reverse stock split effective February 20, 2026
Initial pre-funded warrant shares 1,081,082 shares Shares of common stock purchasable at issuance on October 16, 2025
Adjusted warrant shares after anti-dilution 22,664,040 shares Shares of common stock issuable as of December 31, 2025
Original warrant exercise price $0.05 per share Pre-funded warrant exercise price at issuance
Adjusted warrant exercise price $0.002385 per share Exercise price after anti-dilution adjustment as of December 31, 2025
Warrant liability before correction $30.4 million Recorded as of December 31, 2025, prior to restatement
Warrant liability after correction $639.1 million Revised as of December 31, 2025, after anti-dilution adjustment
Net loss after correction $630.8 million Revised net loss for year ended December 31, 2025
reverse stock split financial
"On February 20, 2026, Stablecoin Development Corporation effected a 1-for-5 reverse stock split"
A reverse stock split is when a company reduces the number of its shares outstanding, making each share more valuable. For example, if you own 100 shares worth $1 each, a 1-for-10 reverse split would turn your 100 shares into 10 shares worth $10 each. Companies often do this to boost their stock price and appear more stable to investors.
Pre-Funded Warrants financial
"because of an error in the Company’s accounting relating to certain outstanding pre-funded warrants issued on October 16, 2025"
Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.
anti-dilution adjustment financial
"The error relates to the determination of the number of shares of Common Stock issuable upon exercise of the Pre-Funded Warrants, which contain certain anti-dilution adjustment provisions"
warrant liability financial
"The additional shares will result in an increase in the amount of the Company’s warrant liability as of December 31, 2025"
Warrant liability is the financial obligation a company records when it grants warrants—special options giving the holder the right to buy company shares at a set price in the future. It matters to investors because changes in this liability can affect a company's reported earnings and overall financial health, similar to how a pending contract can influence a company's future value.
equity classification financial
"the Company determined that the conditions for equity classification were met, and accordingly expects to reclassify the Pre-Funded Warrants from a liability to equity"
forward-looking statements regulatory
"This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): April 27, 2026
 
Stablecoin Development Corporation
 
(Exact name of registrant as specified in its charter)
 
 
Delaware
 
001-33678
 
68-0454536
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
2000 Powell Street, Suite 1150, Emeryville, CA 94608
(Address of principal executive offices and zip code)
 
(510) 899-8800
(Registrants telephone number, including area code)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
 
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, par value $0.01 per share
 
SDEV
 
NYSE American
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 


 
 

 
Explanatory Note
 
On February 20, 2026, Stablecoin Development Corporation (the “Company”) effected a 1-for-5 reverse stock split (the “Reverse Stock Split”) of its common stock, par value $0.01 per share (the “Common Stock”). Except as otherwise specifically noted, all share numbers, share prices, exercise/conversion prices and per share amounts in this current report have been adjusted, on a retroactive basis, to reflect the Reverse Stock Split.
 
 
Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
 
On April 27, 2026, the audit committee of the board of directors and management of the Company concluded that the Company’s previously issued audited consolidated financial statements for the year ended December 31, 2025, should no longer be relied upon because of an error in the Company’s accounting relating to certain outstanding pre-funded warrants issued on October 16, 2025 (the “Pre-Funded Warrants”).
 
The error relates to the determination of the number of shares of Common Stock issuable upon exercise of the Pre-Funded Warrants, which contain certain anti-dilution adjustment provisions with respect to issuances of Common Stock by the Company without consideration, including upon the conversion of convertible securities. At the time of issuance, the Pre-Funded Warrants represented the right to purchase 1,081,082 shares of Common Stock at a per share exercise price of $0.05. On October 21, 2025, the Company issued 24 million shares of Common Stock upon the conversion of the Series D and Series E Preferred Stock, which triggered the anti-dilution adjustment of the Pre-Funded Warrants. The anti-dilution adjustment provisions increased the number of shares of Common Stock subject to issuance upon exercise of the Pre-Funded Warrants to 22,664,040 shares of Common Stock as of December 31, 2025. The anti-dilution adjustment also decreased the exercise price per share to $0.002385.
 
The additional shares will result in an increase in the amount of the Company’s warrant liability as of December 31, 2025, from $30.4 million to $639.1 million, and a corresponding increase in the Company’s net loss for the year ended December 31, 2025, from $22.1 million to $630.8 million. These adjustments are entirely non-cash and do not affect the Company’s cash position, revenue, operating expenses, operating income, or cash flows.
 
The audit committee of the board of directors and management of the Company have discussed the foregoing matter with the Company’s independent registered public accounting firm, CBIZ CPAs, P.C. Accordingly, the Company intends to restate the aforementioned financial statements in a Form 10-K/A for the year ended December 31, 2025, which will correct the error in the financial statements described above.
 
The Company provides the following additional information to assist investors in understanding the context and scope of the error described above.
 
 

 
Reclassification of Pre-Funded Warrant Liability to Equity as of March 12, 2026
 
The Pre-Funded Warrants were properly classified as a liability on the Company’s balance sheet as of December 31, 2025. At that date, the issuance of shares of Common Stock upon exercise of the Pre-Funded Warrants remained subject to a time condition, as well as stockholder approval under the rules of the NYSE American, which had not yet been obtained, resulting in a measurement date input of $5.64 per share, the closing price of the Company’s Common Stock on the NYSE American on December 31, 2025, before giving effect to the Reverse Stock Split, or $28.20 per share, after giving effect to the Reverse Stock Split.
 
On January 1, 2026, the Pre-Funded Warrants became exercisable in accordance with their terms. At the Special Meeting of Stockholders held on March 12, 2026, the Company’s stockholders approved the issuance of shares of Common Stock underlying the Pre-Funded Warrants. Following receipt of stockholder approval, the Company determined that the conditions for equity classification were met, and accordingly expects to reclassify the Pre-Funded Warrants from a liability to equity in the Company's financial statements for the quarterly period ended March 31, 2026, to be filed with the Securities and Exchange Commission upon completion of the quarterly review for the period then ended.
 
 
Forward-Looking Statements
 
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements that are based upon managements current expectations, assumptions, estimates, projections and beliefs. The use of words such as, but not limited to, anticipate, believe, continue, could, estimate, expect, intend, may, might, plan, potential, predict, project, should, target, will, or would and similar words or expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements relating to the preparation of the Companys consolidated financial statements as of and for the year ended December 31, 2025; the annual period affected by the matters discussed above and subject to restatement; the timing for filing the 2025 Form 10-K/A; and the potential scope and impact of the issues discussed above, which are estimates as of the date hereof. These statements involve risks, uncertainties and other factors that may cause actual results or achievements to be materially different and adverse from those expressed in or implied by the forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Other risks relating to the Companys business, including risks that could cause results to differ materially from those projected in the forward-looking statements in this report, are detailed in the Companys latest Form 10-K filed with the Securities and Exchange Commission on March 19, 2026, especially under the headings Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations. The forward-looking statements in this report speak only as of this date, and the Company disclaims any intent or obligation to revise or update publicly any forward-looking statement except as required by law.
 
 

 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
Date: April 29, 2026
Stablecoin Development Corporation
     
 
By:
/s/ Michael Kazley
   
Name:
Michael Kazley
   
Title:
Chief Executive Officer
 
 
 
 

FAQ

What did Stablecoin Development Corporation (NBY) disclose in this 8-K filing?

Stablecoin Development Corporation disclosed that its audited consolidated financial statements for the year ended December 31, 2025 should no longer be relied upon. The company found an error in accounting for anti-dilution features of pre-funded warrants and plans to restate these financial statements via a Form 10-K/A.

Why will Stablecoin Development Corporation restate its 2025 financial statements?

The company will restate its 2025 financial statements because it miscalculated the number of shares issuable under pre-funded warrants with anti-dilution provisions. This error caused an understated warrant liability and net loss, requiring a correction to align the accounts with the warrants’ actual economic terms.

How do the warrant accounting changes affect Stablecoin Development Corporation’s 2025 net loss?

The correction to warrant accounting increases Stablecoin Development Corporation’s reported net loss for 2025 from $22.1 million to $630.8 million. Management states these adjustments are entirely non-cash and do not alter revenue, operating expenses, operating income, cash position, or cash flows for the period.

What change occurred in the pre-funded warrant liability for Stablecoin Development Corporation?

The warrant liability related to the pre-funded warrants will increase from $30.4 million to $639.1 million as of December 31, 2025. This reflects an anti-dilution adjustment that greatly expanded the number of underlying shares and lowered the exercise price, affecting fair value measurement at year-end.

How did the anti-dilution adjustment impact the pre-funded warrants at Stablecoin Development Corporation?

Following an October 21, 2025 conversion of preferred stock, the anti-dilution provisions increased shares issuable under the pre-funded warrants from 1,081,082 to 22,664,040 and cut the exercise price from $0.05 to $0.002385. This significantly changed the fair value used in the company’s warrant liability calculation.

Will the restatement affect Stablecoin Development Corporation’s cash, revenue, or operating metrics?

The company states the adjustments are entirely non-cash, so they do not affect cash, revenue, operating expenses, operating income, or cash flows. The impact is on reported warrant liability and net loss, meaning headline earnings figures change while underlying cash-based operating performance remains the same.

What future accounting change does Stablecoin Development Corporation expect for the pre-funded warrants?

After stockholders approved issuing shares underlying the pre-funded warrants on March 12, 2026, the company expects to reclassify these instruments from a liability to equity. This reclassification is anticipated in the financial statements for the quarter ended March 31, 2026, once the quarterly review is completed and filed.

Filing Exhibits & Attachments

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