$TONX

Global System Designs, Inc.

CIK:0001566610|SEC Filings

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue
Total Revenue	$ 15,019		$ 18,021
Cost of revenue	766		922
Gross profit	14,253		17,099
Operating expenses
Depreciation and amortization	3	9	4	17
General and administrative – related parties	4,180	362	5,302	618
General and administrative	9,591	891	15,003	1,555
Total operating expenses	13,774	1,262	20,309	2,190
Operating income (loss) from continuing operations	479	(1,262)	(3,210)	(2,190)
Other income (expense), net
Interest income	272	90	571	211
Unrealized gain on investments		39		121
Other income (expense), net	82,784		(5,144)	(1)
Total other income (expense), net	83,056	129	(4,573)	331
Net income (loss) from continuing operations before income taxes	83,535	(1,133)	(7,783)	(1,859)
Income tax expense	2	1	2	1
Net income (loss) from continuing operations	83,533	(1,134)	(7,785)	(1,860)
Loss from discontinued operations, net of tax	(7,007)	(1,218)	(6,641)	(2,930)
Net income (loss)	76,526	(2,352)	(14,426)	(4,790)
Less: Net income (loss) attributable to non-controlling interests of discontinued operations	(225)	24	(139)	150
Net income (loss) attributable to Ton Strategy Company	76,751	(2,376)	(14,287)	(4,940)
Preferred dividends attributable to preferred shareholder		(85)		(85)
Net income (loss) attributable to common shareholders	$ 76,751	$ (2,461)	$ (14,287)	$ (5,025)
Income (loss) per share from continuing operations - basic	$ 1.43	$ (0.82)	$ (0.13)	$ (1.55)
Income (loss) per share from continuing operations - diluted	1.42	(0.82)	(0.13)	(1.55)
Income (loss) per share from discontinued operations – basic	(0.11)	(0.97)	(0.11)	(2.64)
Income (loss) per share from discontinued operations – diluted	(0.11)	(0.97)	(0.11)	(2.64)
Income (loss) per share attributable to common shareholders - basic	1.32	(1.79)	(0.24)	(4.19)
Income (loss) per share attributable to common shareholders - diluted	$ 1.31	$ (1.79)	$ (0.24)	$ (4.19)
Weighted average number of common shares outstanding – basic	58,208,613	1,377,153	58,208,613	1,199,464
Weighted average number of common shares outstanding – diluted	58,674,690	1,377,153	58,208,613	1,199,464
Ton [Member] \| Nonrelated Party [Member]
Revenue
Total Revenue	$ 10,115		$ 12,147
Ton [Member] \| Related Party [Member]
Revenue
Total Revenue	$ 4,904		$ 5,874

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities:
Net loss	$ (14,426)	$ (4,790)
Loss from discontinued operations, net of tax	6,641	2,930
Adjustments to reconcile net loss to net cash used in operating activities, net of discontinued operations:
Depreciation and amortization	4	17
Share-based compensation	6,577	636
Income tax expense	2	1
Non-cash consideration received in the form of GRAM	(12,147)
Non-cash consideration received in the form of GRAM – related party	(6,776)
Non-cash transaction fees paid with Digital Assets	12
Realized (Gains) / Losses on Digital Assets	(75)
Unrealized (Gains) / Losses on Digital Assets	5,220
Unrealized gain on short-term investments - trading		(121)
Effect of changes in assets and liabilities, net of discontinued operations:
Prepaid expenses and other current assets	780	48
Prepaid expenses and other non-current and current assets – related parties	2,953
ERC receivable		1,724
Accounts payable – related parties	1,076
Accounts payable and accrued expenses	(481)	(511)
Net cash used in operating activities attributable to continuing operations	(10,640)	(66)
Net cash used in operating activities attributable to discontinued operations	(1,120)	(3,290)
Investing Activities:
Proceeds from sale of Digital Assets	1,049
Purchases of property and equipment	(2)
Purchases of investments – trading securities		(655)
Proceeds from sale of investments - trading securities		565
Purchases of intangible assets		(8)
Net cash provided by (used in) investing activities attributable to continuing operations	1,047	(98)
Net cash provided by (used in) investing activities attributable to discontinued operations	26	(4,390)
Financing Activities:
Proceeds from sale of preferred stock offering, net of issuance costs		4,700
Payment of notes payable		(118)
Net cash provided by financing activities		4,582
Net change in cash, cash equivalents, and restricted cash	(10,687)	(3,262)
Cash, cash equivalents, and restricted cash - beginning of period	39,661	8,495
Cash, cash equivalents, and restricted cash - end of period	$ 28,974	$ 5,233

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 28,805	$ 39,493
Restricted cash	169	169
ERC receivable	734	734
Assets of discontinued operations – current	1,449	486
Total current assets	31,694	42,364
Assets of discontinued operations – non-current	2,300	9,152
Long-lived assets, net	3	20
Intangible assets, net	27	30
GRAM - unrestricted	111,339	89,628
GRAM - restricted	258,186	267,181
Total assets	403,549	411,164
Current liabilities
Accrued expenses	555	558
Accrued officers’ compensation	900	245
Liabilities of discontinued operations - current	1,169	1,995
Total current liabilities	4,957	4,589
Long-term liabilities
Liabilities of discontinued operations - non-current	46	180
Total liabilities	5,003	4,769
Commitments and contingencies (Note 11)
Stockholders’ equity
Common stock, $0.0001 par value, 400,000,000 shares authorized, 56,530,617 shares issued and outstanding both as of June 30, 2026 and December 31, 2025	6	6
Additional paid-in capital	749,784	743,207
Accumulated deficit	(351,012)	(336,725)
Total stockholders’ equity in Ton Strategy Company	398,778	406,488
Non-controlling interests of discontinued operations	(232)	(93)
Total stockholders’ equity	398,546	406,395
Total liabilities and stockholders’ equity	403,549	411,164
Related Party [Member]
Current assets
Prepaid expenses and other current assets		163
Other non-current assets – related party		2,789
Current liabilities
Accounts payable	1,345	269
Nonrelated Party [Member]
Current assets
Prepaid expenses and other current assets	537	1,319
Current liabilities
Accounts payable	$ 988	$ 1,522