DNA X, Inc. reported its financial results for the second quarter of 2026, revealing a significant shift in its business focus following the sale of its legacy phone and mobile hotspot operations. The company, which transitioned to a cryptocurrency trading platform, recorded no revenue from continuing operations for the three and six months ended June 30, 2026. This is a notable change from the previous year, as the company had generated revenue from its discontinued operations during the same period in 2025. The net loss from continuing operations for the second quarter was $1.2 million, a decrease from a loss of $1.9 million in the prior year, while the net loss for the six months was $5.2 million compared to $2.8 million in 2025.
The company’s strategic developments included the completion of the asset sale to Pace Car Acquisition LLC on January 23, 2026, for a net sales price of $13.5 million. This sale allowed DNA X to focus on its newly acquired cryptocurrency trading platform, DNA X LLC, which it gained full control over on May 26, 2026, following the termination of a put option that previously restricted its control. The company is currently enhancing the platform and plans to relaunch it in the fourth quarter of 2026, with expectations of increased trading volume and commission revenue as new features are added.
Operationally, DNA X has seen a significant reduction in its employee headcount due to the asset sale, which has impacted its general and administrative expenses. For the six months ended June 30, 2026, these expenses increased by 174% year-over-year, primarily due to severance payments and executive compensation. The company reported a cash balance of $900,000 as of June 30, 2026, down from $1.3 million at the end of 2025, reflecting the ongoing costs associated with transitioning to its new business model.
In terms of liquidity, DNA X has raised $5 million through the issuance of preferred stock to DNA Holdings, which is expected to support the ongoing development of the DNA X trading platform. The company has indicated that this funding will be sufficient to meet its obligations for at least the next twelve months. However, it also noted a material weakness in its internal controls over financial reporting, particularly regarding the accounting for complex transactions, which remains unresolved as of the end of the reporting period.
Looking ahead, DNA X aims to capitalize on the growing cryptocurrency market by enhancing its trading platform and expanding its customer base. The company is focused on developing new features that will facilitate automated trading strategies and improve user engagement. As it prepares for the relaunch of its platform, DNA X is optimistic about its potential to generate revenue and establish a foothold in the competitive cryptocurrency trading landscape.
About DNA X, Inc.
Sonim Technologies designs and manufactures rugged mobile devices, including smartphones, feature phones, and wireless internet solutions, primarily serving industrial, public safety, and enterprise markets. Its products are built for durability in harsh environments, supporting critical communication, data collection, and safety applications. The company distributes through major wireless carriers worldwide, emphasizing quality, regulatory compliance, and customized enterprise solutions to enhance operational efficiency and safety.
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