$RUM

RUM Group Inc.

CIK:0001830081|SEC Filings

Condensed Consolidated Interim Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues	$ 40,366,736	$ 25,084,631	$ 65,826,532	$ 48,791,421
Expenses
Cost of services (content, hosting and other)	30,607,067	26,542,307	57,604,250	56,578,481
General and administrative	16,327,551	11,666,331	26,724,111	28,300,054
Research and development	6,795,275	4,825,884	12,535,189	9,614,995
Sales and marketing	10,379,335	7,891,526	18,911,816	11,530,452
Acquisition-related transaction costs	28,314,638	2,388,105	33,161,645	2,388,105
Amortization and depreciation	16,289,896	3,602,160	20,267,766	6,894,869
Change in fair value of digital assets	2,435,937	(5,192,441)	6,501,540	(3,493,025)
Total expenses	111,149,699	51,723,872	175,706,317	111,813,931
Loss from operations	(70,782,963)	(26,639,241)	(109,879,785)	(63,022,510)
Interest income	742,622	2,898,945	2,628,065	5,083,231
Other expense	(4,831,299)	(22,773)	(4,867,685)	(47,377)
Changes in fair value of contingent consideration	(486,931)		(486,931)
Changes in fair value of warrant liability	(5,672,458)	(6,461,861)	1,327,928	15,442,843
Changes in fair value of derivative	283,991		283,991	9,700,000
Loss before income taxes	(80,747,038)	(30,224,930)	(110,994,417)	(32,843,813)
Income tax expense	(184,149)		(207,140)	(31,310)
Deferred tax expense	(3,998)		(3,998)
Net loss	(80,935,185)	(30,224,930)	(111,205,555)	(32,875,123)
Net loss attributable to non-controlling interest	(1,790,479)		(1,790,479)
Net loss attributable to RUM Group Inc.	$ (79,144,706)	$ (30,224,930)	$ (109,415,076)	$ (32,875,123)
Loss per share – basic (in Dollars per share)	$ (0.28)	$ (0.12)	$ (0.4)	$ (0.13)
Loss per share – diluted (in Dollars per share)	$ (0.28)	$ (0.12)	$ (0.4)	$ (0.13)
Weighted-average number of common shares used in computing net loss per share - basic (in Shares)	283,916,343	260,327,707	272,549,216	248,754,135
Weighted-average number of common shares used in computing net loss per share - diluted (in Shares)	283,916,343	260,327,707	272,549,216	248,754,135
Share-based compensation expense included in expenses:
Total share-based compensation expense	$ 7,130,217	$ 5,379,294	$ 12,364,333	$ 14,064,097
Cost of services
Share-based compensation expense included in expenses:
Total share-based compensation expense	1,351,934	1,036,433	3,147,904	2,563,013
General and administrative
Share-based compensation expense included in expenses:
Total share-based compensation expense	3,736,982	2,950,885	5,843,008	9,235,196
Research and development
Share-based compensation expense included in expenses:
Total share-based compensation expense	1,178,220	915,006	1,952,211	1,541,441
Sales and marketing
Share-based compensation expense included in expenses:
Total share-based compensation expense	$ 863,081	$ 476,970	$ 1,421,210	$ 724,447

Condensed Consolidated Interim Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net loss for the period	$ (111,205,555)	$ (32,875,123)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization and depreciation	20,267,766	6,894,869
Share-based compensation	12,364,333	14,064,097
Provision for credit losses	957,371
Net trade and barter revenue and expense	(1,538,931)	2,881,127
Non-cash lease expense	3,657,467	549,603
Change in fair value of warrants	(1,327,928)	(15,442,843)
Change in fair value of contingent consideration	486,376
Change in fair value of digital assets	6,501,092	(3,493,025)
Change in fair value of derivative	(283,991)	(9,700,000)
Loss on disposal of property and equipment		6,627
Loss on lease termination		925
Unrealized foreign exchange losses	5,669,758
Changes in operating assets and liabilities:
Accounts receivable	(15,286,870)	(3,063,864)
Prepaid expenses and other	5,531,116	6,565,724
Accounts payable and accrued liabilities	12,469,990	2,279,372
Deferred revenue	(1,750,016)	1,446,896
Income tax receivable	(1,822,222)
Deferred tax liability	166,096
Operating lease liabilities	(1,001,232)	(490,522)
Net cash used in operating activities	(66,145,380)	(30,376,137)
Investing activities
Purchase of property and equipment	(43,193,463)	(362,727)
Purchase of intangible assets	(2,816,714)	(1,289,278)
Purchase of digital assets		(19,100,000)
Acquisition of Northern Data AG, net of cash acquired	51,036,335
Net cash provided by (used in) investing activities	5,026,158	(20,752,005)
Financing activities
Proceeds from the issuance of pre-funded warrants in connection with equity commitment agreement	36,242,537
Taxes paid from net share settlement for share-based compensation	(1,522,260)	(1,744,613)
Proceeds from exercise of warrants and stock options	2,769,185	1,964,610
Proceeds from issuance of Class A Common Stock under ESPP	81,064	129,374
Proceeds from issuance of Class A Common Stock		775,000,000
Repurchase of Class A Common Stock		(525,000,000)
Share issuance costs	(11,504,125)	(29,429,791)
Net cash provided by financing activities	26,066,401	220,919,580
Effect of exchange rates on cash and cash equivalents	402,881
(Decrease) increase in cash and cash equivalents during the period	(34,649,940)	169,791,438
Cash and cash equivalents, beginning of period	237,919,453	114,018,900
Cash and cash equivalents, end of period	203,269,513	283,810,338
Supplemental cash flow information:
Cash paid for income taxes	1,399,920	33,755
Cash paid for interest
Cash paid for lease liabilities	935,515	449,945
Non-cash investing and financing activities:
Non-cash consideration related to the acquisition of Northern Data AG	1,515,556,856
Property and equipment in accounts payable and accrued liabilities	1,311,854	197,449
Recognition of operating right-of-use assets in exchange of operating lease liabilities, net of derecognition of terminated leases	22,929	949,534
Share-based compensation capitalized related to intangible assets	$ 257,143	$ 227,848

Condensed Consolidated Interim Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 203,269,513	$ 237,919,453
Accounts receivable and other, net	50,761,793	11,859,231
Contingent consideration receivable	22,936,515
Total prepaid expenses and other	139,639,411	14,767,472
Total current assets	416,607,232	264,546,156
Investment	6,936,175
Other non-current assets	20,720,066	1,123,781
Digital assets	20,352,467	18,450,362
Property and equipment, net	913,827,661	16,178,941
Right-of-use assets, net	142,809,207	1,868,458
Intangible assets, net	187,815,434	24,023,709
Goodwill	415,164,645	10,655,391
Total assets	2,124,232,887	336,846,798
Current liabilities
Accounts payable and accrued liabilities	125,450,014	27,875,120
Deferred revenue	31,266,216	16,105,587
Lease liabilities	39,992,862	1,281,444
Total current liabilities	196,709,092	45,262,151
Convertible notes payable	358,811,637
Lease liabilities, net of current portion	102,970,860	633,128
Deferred tax liability	25,041,306
Warrant liability	14,281,399	15,609,327
Other liability	657,541	500,000
Total liabilities	698,471,835	62,004,606
Commitments and contingencies (Note 19)
Shareholders’ equity
Preferred shares ($0.0001 par value per share, 20,000,000 shares authorized, no shares issued or outstanding)
Common shares	779,498	773,439
Accumulated deficit	(674,811,380)	(565,396,304)
Additional paid-in capital	2,028,870,772	839,465,057
Accumulated other comprehensive income (loss)	(17,857,147)
Non-controlling interest	88,779,309
Total shareholders’ equity	1,425,761,052	274,842,192
Total liabilities and shareholders’ equity (deficit)	$ 2,124,232,887	$ 336,846,798