Corporate GovernanceApr 29, 2026, 05:17 PM
NBY Restates 2025 Financials; $608.6M Warrant Liability Error
AI Summary
NovaBay Pharmaceuticals, Inc. (NBY), now Stablecoin Development Corporation, filed an amended 10-K to restate its audited consolidated financial statements for the year ended December 31, 2025. The restatement was due to an error in accounting for October 2025 Pre-Funded Warrants, resulting in a $608.6 million increase in warrant liability and related non-cash losses. The company also identified a material weakness in its internal control over financial reporting. Additionally, the company completed a 1-for-5 reverse stock split and legally changed its name, shifting its strategic focus to digital asset ecosystems, including significant post-year-end investments in SKY tokens.
Key Highlights
- Restated 2025 consolidated financial statements due to error in accounting for October 2025 Pre-Funded Warrants.
- Cumulative effect of restatement: $608.6 million increase in warrant liability at December 31, 2025.
- Non-cash loss from change in fair value of warrant liability: $(509.9) million for 2025.
- Non-cash loss on fair value of warrant liability in excess of proceeds at issuance: $(123.2) million for 2025.
- Identified a material weakness in internal control over financial reporting related to equity-linked financial instruments.
- Net loss from continuing operations: $(641.9) million for 2025 (restated).
- Effected a 1-for-5 reverse stock split on February 20, 2026.
- Deployed approximately $70.7 million to acquire 1.1 billion SKY tokens between January 2026 and March 16, 2026.
Price Impact
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