$EMPD

Empery Digital Inc.

CIK:0001829794|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 80,019	$ 190,173	$ 305,721	$ 652,505
Cost of goods sold	(148,203)	(387,271)	(310,827)	(891,863)
Gross margin	(68,184)	(197,098)	(5,106)	(239,358)
Operating expenses:
Sales and marketing	2,382,844	368,718	2,706,480	664,942
Product development	170,505	69,250	295,451	303,902
General and administrative expenses	3,705,607	2,844,661	8,277,389	4,393,941
Related party legal fees	7,828,001	0	7,828,001	0
Loss on digital asset	27,913,227	0	106,267,263	0
Total operating expenses	42,000,184	3,282,629	125,374,584	5,362,785
Loss from operations	(42,068,368)	(3,479,727)	(125,379,690)	(5,602,143)
Other income	31,751	5,094	585,180	59,115
Loss on repayment of term loan	0	0	(568,142)	0
Gain (loss) on change in fair value of financial liabilities	20,117	(63,242)	(41,900)	(34,810)
Interest income	44,725	104,521	87,264	157,292
Interest expense	(1,062,659)	(74,464)	(3,120,694)	(163,647)
Total other income (expense)	(966,066)	(28,091)	(3,058,292)	17,950
Loss from continuing operations before provision for income taxes	(43,034,434)	(3,507,818)	(128,437,982)	(5,584,193)
Provision for income taxes	0	0	0	0
Loss from continuing operations	(43,034,434)	(3,507,818)	(128,437,982)	(5,584,193)
Loss from discontinued operations	0	(392,079)	0	(776,134)
Net loss	$ (43,034,434)	$ (3,899,897)	$ (128,437,982)	$ (6,360,327)
Earnings per common share
Loss from continuing operations per common share - basic	$ (1.53)	$ (6.81)	$ (4.21)	$ (13.06)
Loss from continuing operations per common share - diluted	(1.53)	(6.81)	(4.21)	(13.06)
Loss from discontinued operations per common share - basic	0	(0.76)	0	(1.82)
Loss from discontinued operations per common share - diluted	0	(0.76)	0	(1.82)
Net loss per common share – basic	(1.53)	(7.57)	(4.21)	(14.88)
Net loss per common share – diluted	$ (1.53)	$ (7.57)	$ (4.21)	$ (14.88)
Weighted average common shares outstanding – basic	28,060,806	515,490	30,527,749	427,361
Weighted average common shares outstanding – diluted	28,060,806	515,490	30,527,749	427,361

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flow from operating activities:
Net loss	$ (128,437,982)	$ (6,360,327)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on digital asset	106,267,263	0
Stock-based compensation	1,797,041	1,100,670
Loss on change in fair value of financial liabilities	41,900	34,810
Loss on write down of inventory	84,011	73,824
Loss on write off of intangible asset	27,195	0
Write-off of unamortized issuance costs on repayment of term loan	68,142	0
Bad debt expense	2,146,476	9,294
Non-cash interest expense/(income), net	13,603	(7,083)
Amortization of right-of-use assets	211,676	209,645
Depreciation and amortization	27,153	160,503
Changes in operating assets and liabilities:
Accounts receivables	(1,884,362)	(120,878)
Inventory and inventory deposits	(71,889)	(219,846)
Prepaid expenses, other current and long-term assets	1,558,796	(11,389)
Accounts payable	2,828	(193,894)
Related party payable	7,828,001	0
Accrued liabilities and vendor settlements	148,657	(1,496,856)
Right-of-use liabilities - operating leases	(222,299)	(215,423)
Other current liabilities	(1,965)	(193,974)
Net cash used in operating activities	(10,395,755)	(7,230,924)
Cash flow from investing activities:
Investment in EMHU LLC	(2,900,000)	0
Purchase of property and equipment	(23,746)	(204,927)
Proceeds from sale of digital assets	80,064,079	0
Purchase of certificate of deposit	0	(2,000,000)
Proceeds from maturity of certificate of deposit	2,092,397	0
Net cash provided by (used in) investing activities	79,232,730	(2,204,927)
Cash flow from financing activities:
Repayment of term loan	(50,000,000)	0
Payment on credit facility	(10,000,000)	0
Proceeds from borrowings on credit facility	15,000,000	0
Proceeds from issuance of common stock units and pre-funded warrant units from March 2026 offering, net of issuance costs of $212,322	24,787,679	0
Proceeds from issuance of common stock from pre-funded warrant exercises	40	0
Repurchase of common stock	(53,970,420)	(510,907)
Proceeds from issuance of common stock units and pre-funded warrant units from February 2025 public offering, net of issuance costs of $1,296,118	0	10,703,882
Proceeds from the issuance of common stock issued from the At the Market Offering, net of issuance costs of $320,867	0	8,846,761
Repayments on notes payable	(28,532)	(3,489)
Repurchase of fractional shares	0	(941)
Net cash (used in) provided by financing activities	(74,211,233)	19,035,306
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(5,374,258)	9,599,455
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD	9,068,856	2,298,573
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	3,694,598	11,898,028
Supplemental disclosure of cash flow information:
Cash paid for interest	3,085,128	162,581
Cash paid for income taxes	0	0
Non-cash transactions
Issuance of common stock for exercise of pre-funded warrants	3	2
Transfer of inventory to property & equipment	0	317,259
Recognition of right of use asset and liability - operating lease	26,874	0
Transfer of digital assets from lender for repayment of loans outstanding	142,699,201	0
Transfer of digital assets from lender for reduction in collateral requirement	38,529,097	0
Transfer of digital assets to lender for margin call	30,563,705	0
Transfer of digital assets to lender for collateral for borrowings	$ 87,355,553	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 3,589,598	$ 8,963,856
Restricted cash	105,000	105,000
Certificate of deposit	0	2,049,413
Accounts receivable, net of allowance for doubtful accounts of $95,530 and $71,869 at June 30, 2026 and December 31, 2025, respectively	49,992	312,106
Inventory and inventory deposits	334,053	346,175
Prepaid expenses and other current assets	968,865	2,479,310
Total current assets	5,047,508	14,255,860
Long-term assets:
Digital assets	80,521,703	126,926,895
Digital assets restricted by lenders as collateral for loans	90,122,335	230,048,488
Investment in EMHU LLC	2,900,000	0
Property and equipment and intangible assets, net	240,961	271,560
Other long-term assets	106,705	155,056
Right-of-use assets - operating leases	593,433	778,235
Total assets	179,532,645	372,436,094
Current liabilities:
Accounts payable	748,294	745,466
Related party payable	7,828,001	0
Accrued liabilities	1,529,697	560,761
Vendor settlements	368,905	1,189,184
Term loan	0	49,890,972
Right-of-use operating lease liabilities - short-term	161,803	322,103
Other current liabilities	108,065	76,177
Total current liabilities	10,744,765	52,784,663
Long-term loan	54,960,747	49,945,046
Notes payable, net of current portion	0	20,485
Right-of-use operating lease liabilities - long-term	436,558	471,683
Total liabilities	66,142,070	103,221,877
COMMITMENTS AND CONTINGENCIES
Stockholders’ equity:
Preferred stock: $0.00001 par value, 5,000,000 shares authorized, 100,000 shares designated as Series A and, no shares issued and outstanding as of June 30, 2026 and December 31, 2025	0	0
Common stock: $0.00001 par value, 250,000,000 shares authorized, 28,110,111 shares outstanding as of June 30, 2026 and 33,800,951 shares outstanding as of December 31, 2025	544	475
Treasury stock: 26,310,005 shares as of June 30, 2026 and 13,771,094 shares as of December 31, 2025	(150,252,502)	(96,282,082)
Additional paid-in capital	708,449,448	681,864,757
Accumulated deficit	(444,806,915)	(316,368,933)
Total stockholders’ equity	113,390,575	269,214,217
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 179,532,645	$ 372,436,094