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/s/ Matthew Cole Matthew Cole Chief Executive Officer Strive, Inc. | /s/ Eric Semler Eric Semler Executive Chairman Semler Scientific, Inc. | ||
![]() | ![]() | ||
/s/ Matthew Cole Matthew Cole Chief Executive Officer Strive, Inc. | /s/ Eric Semler Eric Semler Executive Chairman Semler Scientific, Inc. | ||


1. | To approve the Agreement and Plan of Merger, dated as of September 22, 2025 (as amended by that certain amendment, dated as of December 3, 2025, and as it may be further amended from time to time, the “Merger Agreement”), by and between Semler Scientific and Strive, Inc. (“Strive”), a copy of which is attached as Annex A (and a copy such amendment is attached as Annex B), pursuant to which Strive Merger Sub, Inc. (“Merger Sub”) will merge with and into Semler Scientific (the “Merger”), with Semler Scientific as the surviving corporation of the Merger (the “Merger Proposal”); |
2. | To approve, on an advisory basis, the compensation that may be paid or become payable to Semler Scientific’s named executive officers that arises from or otherwise relates to the Merger (the “Compensation Proposal”); and |
3. | To approve one or more adjournments of the Special Meeting, if necessary or appropriate, including adjournments to permit further solicitation of proxies in favor of the Merger Proposal (the “Adjournment Proposal”). |
Strive, Inc. | Semler Scientific, Inc. | ||
200 Crescent Court, Suite 1400, Dallas, TX 75201 | 51 E Campbell Avenue, Suite 107-D Campbell, CA 95008 | ||
Attention: Investor Relations Telephone: +1 855-427-7360 | Attention: Investor Relations Telephone: +1 877-774-4211 | ||
• | a proposal to approve the Merger Agreement, or the Merger Proposal; |
• | a proposal to approve, on an advisory (non-binding) basis, the compensation that may be paid or become payable to the named executive officers of Semler Scientific that arises from or otherwise relates to the Merger, or the Compensation Proposal; and |
• | a proposal to adjourn the Special Meeting, if necessary or appropriate, for the purpose of soliciting additional proxies in favor of the Merger Proposal or the Adjournment Proposal. |
• | Register at https://web.viewproxy.com/SMLRSM/2026 by 11:59 p.m. Eastern Time on January 12, 2026. You will need to click “Registration for Registered Holders” and enter your name, phone number, mailing address, email address and indicate if you plan to vote at the Special Meeting as part of the registration, following which, you will receive an email confirming your registration and a unique link to attend the Special Meeting. One day prior to the Special Meeting, you will receive the password you will need in order to attend the Special Meeting. |
• | On the day of the Special Meeting, if you have properly registered, you can access the Special Meeting by clicking on the unique link received via your email confirmation and enter the password emailed to you one day prior to the meeting. You will need the virtual control number assigned to you in order to vote your shares. You can find your virtual control number on your proxy card. |
• | Obtain a valid proxy from your broker, bank or other agent. |
• | Register at https://web.viewproxy.com/SMLRSM/2026 by 11:59 p.m. Eastern Time on January 12, 2026. You will need to click “Registration for Beneficial Holders” and enter your name, phone number, mailing address, email address and indicate if you plan to vote at the Special Meeting. If you plan to vote your shares at the Special Meeting, you will also need to provide a copy of your legal proxy that you obtain from your bank or broker (which may be uploaded to the registration website or sent via email to virtualmeeting@viewproxy.com) as part of the registration. If you plan to attend the Special Meeting but not vote your shares, you will need to demonstrate proof of ownership by providing a copy of your legal proxy, a copy of your voter instruction form, proxy card or current broker statement (which may be uploaded to the registration website or sent via email to virtualmeeting@viewproxy.com). After completing your registration, you will receive an email confirming your registration and a unique link to attend the Special Meeting. One day prior to the Special Meeting, you will receive the password you will need in order to attend the Special Meeting. |
• | On the day of the Special Meeting, if you have properly registered, you can access the Special Meeting by clicking on the unique link received via your email confirmation and enter the password emailed to you one day prior to the meeting. You will need the virtual control number emailed to you following your registration in order to vote your shares. |
1. | the Merger Proposal; |
2. | the Compensation Proposal; and |
3. | the Adjournment Proposal. |
• | To vote during the Special Meeting, follow the instructions above under “How do I attend the Special Meeting?” join the Special Meeting via the unique link received after registering at https://web.viewproxy.com/SMLRSM/2026 and follow the instructions posted there. Please have your virtual control number available. |
• | To vote using the proxy card, complete, sign, date and mail the proxy card after requesting paper copies of these materials as described herein. If your signed proxy card is received before the Special Meeting, Semler Scientific will vote your shares as you direct. |
• | To vote over the telephone, dial toll-free (866) 804-9616 using a touch-tone phone and follow the recorded instructions. You will be asked to provide the company number and your control number from your proxy card. Your telephone vote must be received by 11:59 p.m. Eastern Time on January 12, 2026 to be counted. |
• | To vote through the internet, go to https://AALvote.com/SMLR to complete an electronic proxy card. You will be asked to provide the company number and control number from your proxy card. Your internet vote must be received by 11:59 p.m. Eastern Time on January 12, 2026 to be counted. |
• | You may grant a subsequent proxy by telephone or through the internet. |
• | If you requested paper copies of these materials, you may submit a new proxy with a later date before the applicable deadline either signed and sent by mail or transmitted using the telephone or Internet voting procedures described in “How Do I Vote?” above, in each case, prior to the Special Meeting. |
• | You may send a timely written notice that you are revoking your proxy to Semler Scientific’s corporate secretary at 51 E Campbell Avenue, Suite 107-D, Campbell, California 95008. |
• | You may attend the Special Meeting and vote via live webcast. Simply attending the Special Meeting will not, by itself, revoke your proxy. |
Proposal Number | Proposal Description | Vote Required for Approval | Effect of Abstentions | Effect of Broker Non-Votes | ||||||||
1 | Merger Proposal | Majority of outstanding shares must vote “For” | Against | Against | ||||||||
2 | Compensation Proposal | “For” votes cast exceed “against” votes cast | None | None | ||||||||
3 | Adjournment Proposal | “For” votes cast exceed “against” votes cast | None | None | ||||||||
• | Each Semler Scientific Option that is held by any individual who is not a non-employee director of Semler Scientific will be converted into an option to purchase shares of Strive Class A Common Stock), on the same terms and conditions (including with respect to vesting and exercisability) as were applicable to such Semler Scientific Option immediately prior to the Effective Time, with (x) the number of shares of Strive Class A Common Stock subject to such Converted Option determined by multiplying the number of shares of Semler Scientific Common Stock subject to the corresponding Semler Scientific Option immediately prior to the Effective Time by the Exchange Ratio, rounded down to the nearest whole share and (y) the |
• | Each Semler Scientific Option that is held by a non-employee director whose service to Semler Scientific continues through the Closing Date will become fully vested and exercisable as of the Effective Time. |
• | by mutual written agreement of Strive and Semler Scientific; |
• | by either Strive or Semler Scientific, if: |
○ | the Merger has not been completed on or before March 22, 2026 (the “End Date”); however, the right to terminate the Merger Agreement at the End Date will not be available to any party to the Merger Agreement whose breach of any provision of the Merger Agreement results in the failure of the Merger to be completed by such time; |
○ | there is in effect any applicable law, order or injunction that permanently enjoins, prevents or prohibits the completion of the Merger and, if such applicable law is an order or injunction, such applicable order or injunction has become final and non-appealable; however, the right to terminate the Merger Agreement as described in this bullet will not be available to any party to the Merger Agreement which has not complied with its obligations under the Merger Agreement in respect of any such applicable law; |
○ | Semler Scientific Stockholders fail to approve and adopt the Merger Agreement upon a vote taken on a proposal to approve and adopt the Merger Agreement at a Semler Scientific Stockholders’ meeting called for that purpose; or |
○ | there has been a breach by the other party of any representation or warranty or failure to perform any covenant or agreement that would result in the failure of the other party to satisfy an applicable condition to the completion of the Merger related to the accuracy of representations and warranties or performance of covenants, and such breach has not been cured within 45 days of notice thereof or is incapable of being cured, but only so long as the party seeking to terminate the Merger Agreement pursuant to this bullet is not then in breach of its representations, warranties, covenants or agreements contained in the Merger Agreement, which breach would cause the applicable condition to the completion of the Merger not to be satisfied; |
• | by Strive, if: |
○ | prior to the Semler Scientific Stockholders Approval and adoption of the Merger Agreement, (i) the Semler Scientific Board makes a Company Adverse Recommendation Change or (ii) there has been a willful and material breach by Semler Scientific of its obligations described under “The Merger Agreement—Obligations to Call Stockholders’ Meeting” and “The Merger Agreement—No Solicitation” beginning on page 154 of this information statement/proxy statement/prospectus, other |
• | by Semler Scientific, if: |
○ | Strive does not deliver, or cause to be delivered to Semler Scientific, the duly executed Strive Stockholder Approval in accordance with the terms of the Merger Agreement (which has been delivered to Semler Scientific prior to the date hereof). |
• | by Strive prior to receipt of Semler Scientific Stockholder approval as a result of a Company Adverse Recommendation Change; |
• | by Strive due to Semler Scientific’s willful breach in any material respect of the provisions of the Merger Agreement relating to non-solicitation of alternative transactions or convening the Special Meeting as described above; or |
• | by Strive pursuant to any other termination right of Strive described above at a time when the Merger Agreement was otherwise terminable under the two clauses immediately above. |
• | the Semler Scientific Stockholder Approval and Strive Stockholder Approval shall have been obtained in accordance with all applicable law; |
• | no applicable law or order preventing or making illegal the consummation of the Merger or any of the other Transactions shall be in effect, and no litigation or similar legal action by any governmental authority (in any jurisdiction in which Strive, Semler Scientific or any of their respective subsidiaries conducts material operations) seeking to prohibit or restrain the Merger shall be pending; |
• | the registration statement on Form S-4, of which this information statement/proxy statement/prospectus is a part, shall have been declared effective by the SEC under the Securities Act and no stop order suspending the effectiveness of the registration statement shall have been issued by the SEC, and no proceedings for such purpose shall be pending; and |
• | the shares of Strive Class A Common Stock to be issued in the Parent Share Issuance shall have been approved for listing on Nasdaq, subject to official notice of issuance. |
• | Semler Scientific shall have performed in all material respects all of its obligations hereunder required to be performed by it at or prior to the Effective Time; |
• | any applicable waiting period or periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) shall have expired or been terminated, without the imposition of a Burdensome Condition (including any Burdensome Condition that would come into effect at the Closing), and no applicable law or order shall be in force and effect that would impose a Burdensome Condition (including any Burdensome Condition that would come in effect at the Closing) and no litigation or similar legal action by any governmental authority (in any jurisdiction in which Strive, Semler Scientific or any of their respective subsidiaries conducts material operations) seeking to impose a Burdensome Condition shall be pending; |
• | the accuracy of the representations and warranties of Semler Scientific subject to certain limitations and materiality qualifiers; |
• | since the date of the Merger Agreement, the absence of a Company Material Adverse Effect (as defined in the Merger Agreement); and |
• | the delivery by Semler Scientific of a customary certificate by an executive officer of Semler Scientific certifying the conditions set forth in Section 9.02(a), Section 9.02(c) and Section 9.02(d) of the Merger Agreement. |
• | each of Strive and Merger Sub shall have performed in all material respects all of its obligations hereunder to be performed by it at or prior to the Effective Time; |
• | the waiting period or periods under the HSR Act shall have expired or been terminated; |
• | the accuracy of Strive and Merger Sub’s representations and warranties, subject to certain limitations and materiality qualifiers; |
• | since the date of the Merger Agreement, the absence of a Parent Material Adverse Effect, as defined in the Merger Agreement; and |
• | the delivery by Strive of a customary certificate by an executive officer of Strive, certifying the conditions set forth in Section 9.03(a), Section 9.03(c) and Section 9.03(d) of the Merger Agreement. |
Proposal Number | Proposal Description | Vote Required for Approval | Effect of Abstentions | Effect of Broker Non-Votes | ||||||||
1 | Merger Proposal | Majority of outstanding shares must vote “For” | Against | Against | ||||||||
2 | Compensation Proposal | “For” votes cast exceed “against” votes cast | None | None | ||||||||
3 | Adjournment Proposal | “For” votes cast exceed “against” votes cast | None | None | ||||||||
• | Strive Stockholders will retain the majority of the voting and economic value of the common shares of the combined company subsequent to the transaction; |
• | The remaining voting interests held by former Semler Scientific Stockholders do not constitute a coordinated minority; |
• | Strive’s designated leadership will control the combined entity’s operations post business combination; and |
• | Strive’s existing directors will control the majority of the post business combination board. |
• | Certain of Semler Scientific’s directors, executive officers and major stockholders have interests in the Merger that are different from, and may potentially conflict with, Semler Scientific’s interests and the interests of its unaffiliated stockholders. |
• | Termination of the Merger Agreement could trigger payment of fees or expenses to Strive, as well as negatively impact the business, financial condition, results of operations or stock price of Semler Scientific. |
• | The Exchange Ratio is based on predetermined ownership percentages and is not adjusted before or at Closing to account for the performance of Semler Scientific or Strive. |
• | Stockholder litigation could prevent or delay the Closing or otherwise negatively impact each of Strive’s and Semler Scientific’s businesses and operations. |
• | Semler Scientific and Strive will incur significant transaction costs in connection with the Merger. |
• | The Merger Agreement contains provisions that limit Strive’s ability and Semler Scientific’s ability to pursue alternatives to the Merger and could discourage a potential competing transaction counterparty from making a favorable alternative transaction proposal to Strive or Semler Scientific. |
• | Until the Closing or the termination of the Merger Agreement in accordance with its terms, Semler Scientific and Strive are prohibited from entering into certain transactions and taking certain actions that might otherwise be beneficial to Semler Scientific or Strive, as applicable, and their respective stockholders. |
• | The Merger may distract Semler Scientific’s and Strive’s respective management teams from their other responsibilities and the Merger Agreement may limit each of Semler Scientific’s ability and Strive’s ability to pursue new opportunities. |
• | The Merger, including uncertainty regarding the Merger, may cause third parties to delay or defer decisions concerning Strive and Semler Scientific and could adversely affect each of Strive’s and Semler Scientific’s ability to effectively manage their respective businesses. |
• | Business uncertainties while the Merger is pending may negatively impact Strive’s and Semler Scientific’s ability to attract and retain personnel. |
• | The unaudited pro forma combined financial information in this information statement/proxy statement/prospectus does not purport to be, and likely is not, representative of the combined results of Strive and Semler Scientific if the Merger is consummated. |
• | Strive has a limited operating history and recently launched a Bitcoin treasury strategy, making it difficult to evaluate Strive’s business and prospects and may increase the risks associated with any investment. |
• | Strive has a history of operating losses as its business has grown. If Strive is unable to achieve greater revenues than its operating costs or reduce operating costs, Strive will continue to incur operating losses, which could result in the need to raise additional capital to support its operating business and negatively impact its operations, strategy and financial performance. |
• | Bitcoin is a novel asset, and subject to significant legal, commercial, regulatory and technical uncertainty. |
• | Strive’s Bitcoin strategy will subject Strive to enhanced regulatory oversight. |
• | Bitcoin is a highly volatile asset, and fluctuations in the price of Bitcoin are likely to influence Strive’s financial results and the market price of the combined company’s listed securities. |
• | Bitcoin holdings and Bitcoin claims are less liquid than cash and cash equivalents and may not be able to serve as a source of liquidity to the same extent as cash and cash equivalents. |
• | Insiders have influence over us and could limit your ability to influence the outcome of key transactions, including a change of control. |
• | The Amended & Restated Articles of Incorporation include a corporate opportunity waiver. |
• | Some provisions of the Amended & Restated Articles of Incorporation and Bylaws may deter third parties from acquiring Strive. |
• | We do not anticipate paying any cash dividends or other distributions to holders of Strive Common Stock in the foreseeable future. |
• | Sales of substantial amounts of Strive Common Stock in the open market by significant stockholders of Strive could depress Strive’s stock price. |
• | Semler Scientific has incurred and will continue to incur increased costs as a result of operating as a public company, and Semler Scientific’s management has been and will continue to be required to devote substantial time to new compliance initiatives and corporate governance practices. |
• | A significant portion of Strive’s total outstanding shares may be sold into the public market in the near future, which could cause the market price of Strive Common Stock to drop significantly, even if Strive’s business is doing well. |
• | Strive will be the accounting acquirer in this business combination. |
• | Strive’s historical financial statements will become the historical financial statements of the combined entity. |
• | Semler’s identifiable assets and liabilities will be recognized at fair value as of the acquisition date. |
• | Strive Stockholders will retain the majority of the voting and economic value of the common shares of the combined company subsequent to the transaction. |
• | The remaining voting interests held by former Semler Scientific Stockholders do not constitute a coordinated minority. |
• | Strive’s designated leadership will control the combined entity’s operations post business combination. |
• | Strive’s existing directors will control the majority of the post business combination board. |
Strive, Inc. (Historical) | Semler Scientific, Inc. (Historical) | Reclassification Adjustments | Notes | Transaction Accounting Adjustments | Notes | Pro Forma Combined | |||||||||||||||
Assets: | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $109,069 | $10,176 | $— | $— | $119,245 | ||||||||||||||||
Restricted cash | — | 135 | — | — | 135 | ||||||||||||||||
Short-term deposits | — | 270 | (270) | (3a) | — | — | |||||||||||||||
Trade accounts receivable | — | 2,558 | (2,558) | (3a) | — | — | |||||||||||||||
Receivable for Bitcoin collateral | — | 35,928 | — | — | 35,928 | ||||||||||||||||
Inventory | — | 485 | (485) | (3a) | — | — | |||||||||||||||
Prepaid expenses | 3,533 | 3,954 | — | — | 7,487 | ||||||||||||||||
Other current assets | 1,601 | — | 3,313 | (3a) | — | 4,914 | |||||||||||||||
Total current assets | 114,203 | 53,506 | — | — | 167,709 | ||||||||||||||||
Assets for lease, net | — | 1,339 | (1,339) | (3a) | — | — | |||||||||||||||
Digital assets, at fair value | 672,913 | — | 539,844 | (3a) | — | 1,212,757 | |||||||||||||||
Property and equipment, net | 816 | 325 | — | — | 1,141 | ||||||||||||||||
Long-term investments | — | 512 | (512) | (3a) | — | — | |||||||||||||||
Long-term notes receivable | — | 1,150 | (1,150) | (3a) | — | — | |||||||||||||||
Intangible digital assets | — | 539,844 | (539,844) | (3a) | — | — | |||||||||||||||
Intangible assets, net | 361 | — | — | — | 361 | ||||||||||||||||
Right-of-use lease asset | 4,141 | — | — | — | 4,141 | ||||||||||||||||
Goodwill | — | — | — | 11,991 | (3d) | 11,991 | |||||||||||||||
Other non-current assets | 142 | 1 | 3,001 | (3a) | — | 3,144 | |||||||||||||||
Total assets | $792,576 | $596,677 | $— | $11,991 | $1,401,244 | ||||||||||||||||
Liabilities: | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Compensation and benefits payable | $357 | $— | $— | $— | $357 | ||||||||||||||||
Accounts payable and other liabilities | 9,186 | 200 | 6,776 | (3a) | 10,114 | (3c) | 26,276 | ||||||||||||||
Accrued expenses | — | 6,365 | (6,365) | (3a) | — | — | |||||||||||||||
Deferred revenue | — | 411 | (411) | (3a) | — | — | |||||||||||||||
Short-term debt | — | 20,000 | — | — | 20,000 | ||||||||||||||||
Other short-term liabilities | — | 240 | — | — | 240 | ||||||||||||||||
Total current liabilities | 9,543 | 27,216 | — | 10,114 | 46,873 | ||||||||||||||||
Operating lease liabilities | 3,604 | — | — | — | 3,604 | ||||||||||||||||
Deferred tax liability | — | 13,294 | — | — | 13,294 | ||||||||||||||||
Long-term notes payable, net | — | 96,418 | — | — | 96,418 | ||||||||||||||||
Total liabilities | 13,147 | 136,928 | — | 10,114 | 160,189 | ||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||
Common stock | — | 15 | — | (15) | (3b) | — | |||||||||||||||
Class A common stock | 449 | — | — | 319 | (3b) | 768 | |||||||||||||||
Class B common stock | 218 | — | — | — | 218 | ||||||||||||||||
Additional paid-in capital | 1,047,185 | 339,900 | — | 131,521 | (3b) | 1,518,606 | |||||||||||||||
Retained earnings (accumulated deficit) | (268,423) | 119,834 | — | (129,948) | (3b) | (278,537) | |||||||||||||||
Total stockholders’ equity | 779,429 | 459,749 | — | 1,877 | 1,241,055 | ||||||||||||||||
Total liabilities and stockholders’ equity | $792,576 | $596,677 | $— | $11,991 | $1,401,244 | ||||||||||||||||
Combined Strive Enterprises, Inc. and Strive, Inc. (Historical) | Semler Scientific, Inc. (Historical) | Reclassification Adjustments | Notes | Transaction Accounting Adjustments | Notes | Pro Forma Combined | |||||||||||||||
Revenues: | |||||||||||||||||||||
Investment advisory fees | $4,433 | $— | $— | $— | $4,433 | ||||||||||||||||
Revenues | — | 24,543 | — | — | 24,543 | ||||||||||||||||
Other revenue | 44 | — | — | — | 44 | ||||||||||||||||
Total revenues | 4,477 | 24,543 | — | — | 29,020 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Fund management and administration | 4,532 | — | — | — | 4,532 | ||||||||||||||||
Cost of revenues | — | 2,312 | — | — | 2,312 | ||||||||||||||||
Engineering and product development | — | 3,663 | — | — | 3,663 | ||||||||||||||||
Employee compensation and benefits | 25,942 | — | — | — | 25,942 | ||||||||||||||||
General and administrative expense | 4,674 | 18,048 | — | — | 22,722 | ||||||||||||||||
Marketing and advertising | 249 | — | 9,316 | (3a) | — | 9,565 | |||||||||||||||
Sales and marketing | — | 9,316 | (9,316) | (3a) | — | — | |||||||||||||||
DOJ settlement | — | 29,750 | — | — | 29,750 | ||||||||||||||||
Depreciation and amortization | 161 | — | — | — | 161 | ||||||||||||||||
Total operating expenses | 35,558 | 63,089 | — | — | 98,647 | ||||||||||||||||
Investment gains/(losses): | |||||||||||||||||||||
Change in fair value of intangible digital assets | — | 70,422 | (70,422) | (3a) | — | — | |||||||||||||||
Change in fair value of Bitcoin collateral | — | 1,471 | — | — | 1,471 | ||||||||||||||||
Impairment of investments | — | (1,135) | — | — | (1,135) | ||||||||||||||||
Net unrealized gain (loss) on digital assets | (10,133) | — | 70,422 | (3a) | — | 60,289 | |||||||||||||||
Other derivative gain (loss) | (14,731) | — | — | — | (14,731) | ||||||||||||||||
Net investment gains/(losses) | (24,864) | 70,758 | — | — | 45,894 | ||||||||||||||||
Net operating income/(loss) | (55,945) | 32,212 | — | — | (23,733) | ||||||||||||||||
Other income/(expense): | |||||||||||||||||||||
Other income | 654 | 7 | (2,723) | (3a) | — | (2,062) | |||||||||||||||
Interest (expense) income, net | — | (3,526) | 3,526 | (3a) | — | — | |||||||||||||||
Gain on redemption of notes receivable | — | 803 | (803) | (3a) | — | — | |||||||||||||||
Transaction costs | (23,201) | — | — | — | (23,201) | ||||||||||||||||
Goodwill and intangible asset impairment | (140,785) | — | — | — | (140,785) | ||||||||||||||||
Total other income/(expense) | (163,332) | (2,716) | — | — | (166,048) | ||||||||||||||||
Net income/(loss) before income taxes | (219,277) | 29,496 | — | — | (189,781) | ||||||||||||||||
Income tax benefit/(expense) | — | (10,364) | — | — | (10,364) | ||||||||||||||||
Net income/(loss) | $(219,277) | $19,132 | $— | $— | $(200,145) | ||||||||||||||||
Combined Strive Enterprises, Inc. and Strive, Inc. (Historical) | Semler Scientific, Inc. (Historical) | Reclassification Adjustments | Notes | Transaction Accounting Adjustments | Notes | Pro Forma Combined | |||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||
Basic(1) | 212,665,990 | 12,073,628 | (3e) | 466,815,859 | |||||||||||||||||
Diluted(1) | 212,665,990 | 13,706,067 | (3e) | 466,815,859 | |||||||||||||||||
Net income/(loss) per common share: | |||||||||||||||||||||
Basic(1) | $(1.03) | $1.58 | (3e) | $(0.43) | |||||||||||||||||
Diluted(1) | $(1.03) | $1.55 | (3e) | $(0.43) | |||||||||||||||||
(1) | Basic and diluted earnings per common share for Class A and Class B common stock are the same. |
Strive Enterprises, Inc. and Subsidiaries (Historical) | Semler Scientific, Inc. (Historical) | Reclassification Adjustments | Notes | Transaction Accounting Adjustments | Notes | Pro Forma Combined | |||||||||||||||
Revenues: | |||||||||||||||||||||
Investment advisory fees | $3,592 | $— | $— | $— | $3,592 | ||||||||||||||||
Revenues | — | 56,294 | — | — | 56,294 | ||||||||||||||||
Other revenue | 58 | 13 | — | — | 71 | ||||||||||||||||
Total revenues | 3,650 | 56,307 | — | — | 59,957 | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Fund management and administration | 4,867 | — | — | — | 4,867 | ||||||||||||||||
Cost of revenues | — | 4,759 | — | — | 4,759 | ||||||||||||||||
Engineering and product development | — | 4,792 | — | — | 4,792 | ||||||||||||||||
Employee compensation and benefits | 9,135 | — | — | — | 9,135 | ||||||||||||||||
General and administrative expense | 11,248 | 12,732 | — | — | 23,980 | ||||||||||||||||
Marketing and advertising | 862 | — | 13,078 | (3a) | — | 13,940 | |||||||||||||||
Sales and marketing | — | 13,078 | (13,078) | (3a) | — | — | |||||||||||||||
Depreciation and amortization | 192 | — | — | — | 192 | ||||||||||||||||
Total operating expenses | 26,304 | 35,361 | — | — | 61,665 | ||||||||||||||||
Investment gains/(losses): | |||||||||||||||||||||
Change in fair value of notes held for investment | — | 128 | — | — | 128 | ||||||||||||||||
Change in fair value of digital assets | — | 24,933 | — | — | 24,933 | ||||||||||||||||
Net investment gains/(losses) | — | 25,061 | — | — | 25,061 | ||||||||||||||||
Net operating income/(loss) | (22,654) | 46,007 | — | — | 23,353 | ||||||||||||||||
Other income/(expense): | |||||||||||||||||||||
Interest and dividend income | 795 | 1,877 | — | — | 2,672 | ||||||||||||||||
Transaction costs | — | — | — | (10,114) | (3c) | (10,114) | |||||||||||||||
Gain on lease remeasurement | 279 | — | — | — | 279 | ||||||||||||||||
Total other income/(expense) | 1,074 | 1,877 | — | (10,114) | (7,163) | ||||||||||||||||
Net income/(loss) before income taxes | (21,580) | 47,884 | — | (10,114) | 16,190 | ||||||||||||||||
Income tax benefit/(expense) | — | (6,985) | — | — | (6,985) | ||||||||||||||||
Net income/(loss) | $(21,580) | $40,899 | $— | $(10,114) | $9,205 | ||||||||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||||
Basic(1) | 2,213,424 | 7,228,961 | (3e) | 309,205,587 | |||||||||||||||||
Diluted(1) | 2,213,424 | 7,980,118 | (3e) | 325,017,442 | |||||||||||||||||
Net income/(loss) per common share: | |||||||||||||||||||||
Basic(1) | $(9.75) | $5.66 | (3e) | $0.03 | |||||||||||||||||
Diluted(1) | $(9.75) | $5.13 | (3e) | $0.03 | |||||||||||||||||
(1) | Basic and diluted earnings per common share for Class A and Class B common stock are the same. |
Number of estimated shares of Strive, Inc. Class A Common Stock to be issued to Semler Scientific Stockholders | 318,743,205 | ||
Multiplied by Strive, Inc.'s Class A Common Stock price | $1.48 | ||
Estimated purchase price consideration | $471,739,943 | ||
a. | During the preparation of the unaudited pro forma combined consolidated financial information, management performed a preliminary analysis of Semler Scientific’s financial information to identify differences in financial statement presentation compared to the presentation of Strive. Certain reclassifications have been made to the historical consolidated presentation of Semler Scientific to conform to the financial statement presentation of Strive. |
Historical Semler Scientific, Inc. Balance Sheet Line Item | Strive, Inc. Line Item | Historical Semler Scientific, Inc. | Reclassifications | Historical Semler Scientific, Inc. Reclassified | ||||||||
Short-term deposits | Other current assets | 270 | (270) | — | ||||||||
Trade accounts receivable | Other current assets | 2,558 | (2,558) | — | ||||||||
Inventory | Other current assets | 485 | (485) | — | ||||||||
Other current assets | Other current assets | — | 3,313 | 3,313 | ||||||||
Assets for lease, net | Other non-current assets | 1,339 | (1,339) | — | ||||||||
Long-term investments | Other non-current assets | 512 | (512) | — | ||||||||
Long-term notes receivable | Other non-current assets | 1,150 | (1,150) | — | ||||||||
Other non-current assets | Other non-current assets | 1 | 3,001 | 3,002 | ||||||||
Intangible digital assets | Digital assets, at fair value | 539,844 | (539,844) | — | ||||||||
Digital assets, at fair value | Digital assets, at fair value | — | 539,844 | 539,844 | ||||||||
Accrued expenses | Accounts payable and other liabilities | 6,365 | (6,365) | — | ||||||||
Deferred revenue | Accounts payable and other liabilities | 411 | (411) | — | ||||||||
Accounts payable and other liabilities | Accounts payable and other liabilities | 200 | 6,776 | 6,976 | ||||||||
Historical Semler Scientific, Inc. Statement of Operations Line Item | Strive, Inc. Line Item | Historical Semler Scientific, Inc. | Reclassifications | Historical Semler Scientific, Inc. Reclassified | ||||||||
For the nine months ended September 30, 2025: | ||||||||||||
Sales and marketing | Marketing and advertising | 9,316 | (9,316) | — | ||||||||
Marketing and advertising | Marketing and advertising | — | 9,316 | 9,316 | ||||||||
Change in fair value of intangible digital assets | Net unrealized gain (loss) on digital assets | 70,422 | (70,422) | — | ||||||||
Net unrealized gain (loss) on digital assets | Net unrealized gain (loss) on digital assets | — | 70,422 | 70,422 | ||||||||
Interest (expense) income, net | Other income | (3,526) | 3,526 | — | ||||||||
Gain on redemption of notes receivable | Other income | 803 | (803) | — | ||||||||
Other income | Other income | 7 | (2,723) | (2,716) | ||||||||
Historical Semler Scientific, Inc. Statement of Operations Line Item | Strive, Inc. Line Item | Historical Semler Scientific, Inc. | Reclassifications | Historical Semler Scientific, Inc. Reclassified | ||||||||
For the year ended December 31, 2024: | ||||||||||||
Sales and marketing | Marketing and advertising | 13,078 | (13,078) | — | ||||||||
Marketing and advertising | Marketing and advertising | — | 13,078 | 13,078 | ||||||||
b. | The total pro forma adjustment to total Strive Stockholders’ equity is summarized below (in thousands): |
Elimination of historical equity balance of Semler Scientific, Inc. | $459,749 | ||
Estimated purchase price consideration | 471,740 | ||
Non-recurring acquisition-related expenses (refer to note (c) below) | (10,114) | ||
Pro forma adjustment to total Strive, Inc. Stockholders' equity | $921,375 | ||
c. | Reflects the adjustment of $10.1 million for an accrual for non-recurring expenses related to the Merger incurred or expected to be incurred that are not reflected in the historical financial statements for either the nine months ended September 30, 2025 or the year ended December 31, 2024. The adjustment has been recorded as a liability within Accounts payable and other liabilities with a corresponding reduction to equity on the unaudited pro forma combined consolidated statements of financial condition. The amount has also been reflected within transaction costs in the unaudited pro forma combined consolidated statements of operations for the year ended December 31, 2024. |
d. | Represents the preliminary estimate of goodwill based on the preliminary purchase price allocation. |
e. | For purposes of the unaudited pro forma combined consolidated financial information, the pro forma net income (loss) per common share figures have been calculated using the pro forma weighted average number of Strive Class A Common Stock and Strive Class B Common Stock that would have been outstanding for the nine months ended September 30, 2025 and the year ended December 31, 2024 assuming the completion of the Merger on January 1, 2024. |
Successor | Predecessor | Increase (Decrease) | |||||||||||||
Period from September 12, 2025 to September 30, 2025 | Period from July 1, 2025 to September 11, 2025 | Three Months Ended September 30, 2024 | $ | % | |||||||||||
Revenues: | |||||||||||||||
Investment advisory fees | $246 | $1,283 | $950 | $579 | 60.9% | ||||||||||
Other revenue | 9 | 5 | 34 | (20) | (58.8)% | ||||||||||
Total revenues | 255 | 1,288 | 984 | 559 | 56.8% | ||||||||||
Operating expenses: | |||||||||||||||
Fund management and administration | 282 | 1,251 | 1,272 | 261 | 20.5% | ||||||||||
Employee compensation and benefits | 18,720 | 3,151 | 2,182 | 19,689 | 902.3% | ||||||||||
General and administrative expense | 445 | 871 | 4,404 | (3,088) | (70.1)% | ||||||||||
Marketing and advertising | 18 | 68 | 89 | (3) | (3.4)% | ||||||||||
Depreciation and amortization | 12 | 43 | 47 | 8 | 17.0% | ||||||||||
Total operating expenses | 19,477 | 5,384 | 7,994 | 16,867 | 211.0% | ||||||||||
Investment gains/(losses): | |||||||||||||||
Net unrealized loss on digital assets | (10,133) | — | — | (10,133) | (100.0)% | ||||||||||
Other derivative loss | (14,731) | — | — | (14,731) | (100.0)% | ||||||||||
Net investment gains/(losses) | (24,864) | — | — | (24,864) | (100.0)% | ||||||||||
Net operating loss | (44,086) | (4,096) | (7,010) | (41,172) | 587.3% | ||||||||||
Other income/(expense): | |||||||||||||||
Other income | 68 | 10 | 208 | (130) | (62.5)% | ||||||||||
Transaction costs | (7,484) | (10,280) | — | (17,764) | (100.0)% | ||||||||||
Goodwill and intangible asset impairment | (140,785) | — | — | (140,785) | (100.0)% | ||||||||||
Total other income/(expense) | (148,201) | (10,270) | 208 | (158,679) | (76,288.0)% | ||||||||||
Net loss before income taxes | (192,287) | (14,366) | (6,802) | (199,851) | 2,938.1% | ||||||||||
Income tax benefit/(expense) | — | — | — | — | —% | ||||||||||
Net loss | $(192,287) | $(14,366) | $(6,802) | $(199,851) | 2,938.1% | ||||||||||
Successor | Predecessor | Increase (Decrease) | |||||||||||||
Period from September 12, 2025 to September 30, 2025 | Period from January 1, 2025 to September 11, 2025 | Nine Months Ended September 30, 2024 | $ | % | |||||||||||
Revenues: | |||||||||||||||
Investment advisory fees | $246 | $4,187 | $2,560 | $1,873 | 73.2% | ||||||||||
Other revenue | 9 | 35 | 55 | (11) | (20.0)% | ||||||||||
Total revenues | 255 | 4,222 | 2,615 | 1,862 | 71.2% | ||||||||||
Operating expenses: | |||||||||||||||
Fund management and administration | 282 | 4,250 | 3,488 | 1,044 | 29.9% | ||||||||||
Employee compensation and benefits | 18,720 | 7,222 | 6,465 | 19,477 | 301.3% | ||||||||||
General and administrative expense | 445 | 4,229 | 10,040 | (5,366) | (53.4)% | ||||||||||
Marketing and advertising | 18 | 231 | 443 | (194) | (43.8)% | ||||||||||
Depreciation and amortization | 12 | 149 | 141 | 20 | 14.2% | ||||||||||
Total operating expenses | 19,477 | 16,081 | 20,577 | 14,981 | 72.8% | ||||||||||
Investment gains/(losses): | |||||||||||||||
Net unrealized loss on digital assets | (10,133) | — | — | (10,133) | (100.0)% | ||||||||||
Other derivative loss | (14,731) | — | — | (14,731) | (100.0)% | ||||||||||
Net investment gains/(losses) | (24,864) | — | — | (24,864) | (100.0)% | ||||||||||
Net operating loss | (44,086) | (11,859) | (17,962) | (37,983) | 211.5% | ||||||||||
Other income/(expense): | |||||||||||||||
Other income | 68 | 586 | 500 | 154 | 30.8% | ||||||||||
Transaction costs | (7,484) | (15,717) | — | (23,201) | (100.0)% | ||||||||||
Goodwill and intangible asset impairment | (140,785) | — | — | (140,785) | (100.0)% | ||||||||||
Total other income/(expense) | (148,201) | (15,131) | 500 | (163,832) | (32,766.4)% | ||||||||||
Net loss before income taxes | (192,287) | (26,990) | (17,462) | (201,815) | 1,155.7% | ||||||||||
Income tax benefit/(expense) | — | — | — | — | —% | ||||||||||
Net loss | $(192,287) | $(26,990) | $(17,462) | $(201,815) | 1,155.7% | ||||||||||
September 30, 2025 (Successor) | December 31, 2024 (Predecessor) | |||||
Cash and cash equivalents | $109,069 | $6,155 | ||||
Short-term investments | — | 16,755 | ||||
Digital assets, at fair value | 672,913 | — | ||||
Total liquidity | $781,982 | $22,910 | ||||
Successor | Predecessor | ||||||||
Period from September 12, 2025 to September 30, 2025 | Period from January 1, 2025 to September 11, 2025 | Nine Months Ended September 30, 2024 | |||||||
Net cash used in operating activities | $(13,955) | $(18,209) | $(15,522) | ||||||
Net cash provided by (used in) investing activities | (674,683) | 16,477 | (11,664) | ||||||
Net cash provided by (used in) financing activities | 793,784 | (500) | 28,864 | ||||||
Net increase (decrease) in cash and cash equivalents | $105,146 | $(2,232) | $1,678 | ||||||
Successor | Predecessor | ||||||||
Period from September 12, 2025 to September 30, 2025 | Period from July 1, 2025 to September 11, 2025 | Three Months Ended September 30, 2024 | |||||||
Net loss | $(192,287) | $(14,366) | $(6,802) | ||||||
Share-based compensation expense | 16,294 | — | — | ||||||
Depreciation and amortization | 12 | 43 | 47 | ||||||
Other derivative loss | 14,731 | — | — | ||||||
Transaction costs | 7,484 | 10,280 | — | ||||||
Goodwill and intangible asset impairment | 140,785 | — | — | ||||||
Non-GAAP adjusted net income (loss) | $(12,981) | $(4,043) | $(6,755) | ||||||
Weighted average number of diluted common shares outstanding | 872,349,183 | 2,325,783 | 2,225,816 | ||||||
Net loss per diluted common share | $(0.22) | $(6.18) | $(3.06) | ||||||
Non-GAAP adjusted net income (loss) per diluted common share | $(0.01) | $(1.74) | $(3.03) | ||||||
Successor | Predecessor | ||||||||
Period from September 12, 2025 to September 30, 2025 | Period from January 1, 2025 to September 11, 2025 | Nine Months Ended September 30, 2024 | |||||||
Net loss | $(192,287) | $(26,990) | $(17,462) | ||||||
Share-based compensation expense | 16,294 | — | — | ||||||
Depreciation and amortization | 12 | 149 | 141 | ||||||
Other derivative loss | 14,731 | — | — | ||||||
Transaction costs | 7,484 | 15,717 | — | ||||||
Goodwill and intangible asset impairment | 140,785 | — | — | ||||||
Non-GAAP adjusted net income (loss) | $(12,981) | $(11,124) | $(17,321) | ||||||
Weighted average number of diluted common shares outstanding | 872,349,183 | 2,299,243 | 2,200,848 | ||||||
Net loss per diluted common share | $(0.22) | $(11.74) | $(7.93) | ||||||
Non-GAAP adjusted net income (loss) per diluted common share | $(0.01) | $(4.84) | $(7.87) | ||||||
• | the occurrence of any event, change or other circumstance that could give rise to termination of, or delay the Closing under, the Merger Agreement, including failure to obtain the required approval of Semler Scientific Stockholders or to satisfy the other closing conditions on the expected timeline or at all; |
• | the risk that the SEC review process, the mailing of this information statement/proxy statement/prospectus, or related procedural requirements may be delayed or not completed on the anticipated timeline; |
• | the possibility that anticipated benefits of the Merger, including anticipated cost savings, strategic or operational benefits, and initiatives relating to Strive’s Bitcoin-treasury strategy and other digital-asset activities, are not realized when expected or at all due to, among other things, market volatility, regulatory developments, adoption dynamics, or integration challenges; |
• | the possibility that integrating the businesses may be more difficult, time-consuming or costly than expected, including as a result of differences in technology, systems, culture or processes, or disruption to ongoing operations; |
• | the potential for litigation (including stockholder, regulatory or other proceedings) relating to the Merger, which could delay closing or result in significant costs, settlements or judgments; |
• | the possibility that the Merger may distract Semler Scientific’s and Strive’s respective management teams from their other responsibilities and the Merger Agreement may limit each of Semler Scientific’s ability and Strive’s respective abilities to pursue new opportunities; |
• | the issuance of additional shares of Strive Class A Common Stock in connection with the Merger and related transactions, which could result in dilution to existing stockholders and, together with market conditions, could increase stock price volatility; |
• | potential adverse reactions or changes in customer, supplier, partner or employee relationships, including those resulting from the announcement or completion of the Merger; |
• | changes in general economic or market conditions, interest and foreign-exchange rates, monetary policy, and financial, regulatory, competitive or industry conditions affecting Strive or Semler Scientific; |
• | changes in applicable laws, regulations or their enforcement that could affect Strive, Semler Scientific, or the combined company, including with respect to digital assets and related activities; |
• | the Exchange Ratio being based on predetermined ownership percentages meaning that Semler Scientific Stockholders will bear the risk of a decrease in value of Strive during the pendency of the Merger, and Strive Stockholders will bear the risk of a decrease in the value of Semler Scientific during the pendency of the Merger; |
• | the possibility that Strive’s and Semler Scientific’s reliance on information technology in their operations, and any material failure, inadequacy, interruption or security failure of that technology could harm their business, and further, cybersecurity incidents could have a material adverse effect on their business, their results of operations and financial condition; |
• | the possibility that Strive and Semler Scientific may be adversely affected by other economic, business or competitive factors, including factors affecting the industries in which they operate or upon which they rely and are dependent; |
• | the ability to recognize the anticipated objectives and any benefits of the Merger, including the anticipated tax treatment of the Merger; |
• | the significant transaction costs that Strive and Semler Scientific will incur in connection with the Merger; |
• | rapid changes in technology, which could affect Strive’s and Semler Scientific’s ability to compete; and |
• | the Merger is subject to conditions, including conditions that may not be satisfied or waived on a timely basis or at all, and which if delayed or not satisfied may prevent, delay or jeopardize the Closing, result in |
• | Semler Scientific may be required to pay Strive the Termination Fee under certain circumstances; |
• | Semler Scientific may experience negative reactions from the financial markets or from its employees, suppliers or customers; and |
• | costs related to the Merger, such as legal, accounting, financial advisory and proxy solicitation fees, must be paid even if the Merger is not completed. |
• | the ability of the two companies to combine certain of their operations or take advantage of expected growth opportunities; |
• | general market and economic conditions; |
• | general competitive factors in the marketplace; and |
• | higher than expected costs required to achieve the anticipated benefits of the Merger. |
• | maintain a Bitcoin treasury strategy, including with respect to the financing, acquisition and custody of Bitcoin; |
• | identify and successfully implement alpha-generating strategies, such as the identification and acquisition of discounted Bitcoin claims or the acquisition of target companies at a purchase price discount to their book value or cash assets; |
• | improve Strive’s current operational infrastructure and non-platform technology to support its growth, including its Bitcoin treasury strategy, and to respond to the evolution of Strive’s market and competitors’ developments; |
• | further trust with future investors and partners with respect to its Bitcoin treasury business; |
• | distinguish itself from competitors in the Bitcoin treasury business and Strive’s other businesses and navigate political issues; |
• | respond appropriately to changes in the price of Bitcoin, the price of which has been, and will likely continue to be, highly volatile; |
• | respond to complex, evolving, stringent, contradictory industry standards and government regulation on an international scale that impact Strive’s businesses, including its Bitcoin treasury strategy; |
• | maintain and grow Strive’s existing asset management operations; |
• | identify, complete and integrate acquisitions; |
• | prevent, detect, respond to, or mitigate failures or breaches of privacy and security, including with respect to Strive’s Bitcoin and its custodial partners; |
• | hire and retain qualified and motivated employees; |
• | respond to varying general economic, industry and market conditions; and |
• | address the other factors described in this section. |
• | decreased user and investor confidence in Bitcoin, including due to the various factors described herein; |
• | increases in the price of Bitcoin at a pace that would prevent Strive from executing on its Bitcoin treasury strategy in a cost-effective manner; |
• | investment and trading activities, such as trading activities of highly active retail and institutional users, speculators, miners and investors; |
• | actual or expected significant dispositions of Bitcoin by large holders, including the expected liquidation of digital assets associated with entities that have filed for bankruptcy protection and the transfer and sale of Bitcoin associated with significant hacks, seizures, or forfeitures, such as the transfers of Bitcoin to creditors of Mt. Gox and Bitfinex, and liquidation of seized assets of Movie2k and the Silk Road marketplace; |
• | actual or perceived manipulation of the spot or derivative markets for Bitcoin or spot Bitcoin ETPs; |
• | negative publicity, media or social media coverage, or sentiment due to events in or relating to, or perception of, Bitcoin or the broader digital assets industry, for example, (i) public perception that Bitcoin can be used as a vehicle to circumvent sanctions, including sanctions imposed on Russia or certain regions related to the ongoing conflict between Russia and Ukraine, or to fund criminal or terrorist activities, such as the purported use of digital assets by Hamas to fund its terrorist attack against Israel in October 2023; (ii) expected or pending civil, criminal, regulatory enforcement or other high-profile actions against major participants in the Bitcoin ecosystem, including the SEC’s enforcement actions against Coinbase, Inc. and |
• | changes in consumer preferences and the perceived value or prospects of Bitcoin; |
• | competition from other digital assets that exhibit better speed, security, scalability, or energy efficiency, that feature other more favored characteristics, that are backed by governments, including the U.S. government, or reserves of fiat currencies, or that represent ownership or security interests in physical assets; |
• | a decrease in the price of other digital assets, including stablecoins, or the crash or unavailability of stablecoins that are used as a medium of exchange for Bitcoin purchase and sale transactions, such as the crash of the stablecoin Terra USD in 2022, to the extent the decrease in the price of such other digital assets or the unavailability of such stablecoins may cause a decrease in the price of Bitcoin or adversely affect investor confidence in digital assets generally; |
• | the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin, or the transfer of substantial amounts of Bitcoin from Bitcoin wallets attributed to Mr. Nakamoto; |
• | developments relating to the Bitcoin protocol, including (i) changes to the Bitcoin protocol that impact its security, speed, scalability, usability, or value, such as changes to the cryptographic security protocol underpinning the Bitcoin blockchain, changes to the maximum number of Bitcoin outstanding, changes to the mutability of transactions, changes relating to the size of blockchain blocks, and similar changes, (ii) failures to make upgrades to the Bitcoin protocol to adapt to security, technological, legal or other challenges, and (iii) changes to the Bitcoin protocol that introduce software bugs, security risks or other elements that adversely affect Bitcoin, or disruptions, failures, unavailability, or interruptions in service of trading venues for Bitcoin, such as, for example, the announcement by the digital asset exchange FTX Trading that it would freeze withdrawals and transfers from its accounts and subsequent filing for bankruptcy protection and the SEC enforcement action brought against Binance Holdings Ltd., which initially sought to freeze all of its assets during the pendency of the enforcement action and has since resulted in Binance discontinuing all fiat deposits and withdrawals in the United States.; |
• | the filing for bankruptcy protection by, liquidation of, or market concerns about the financial viability of digital asset custodians, trading venues, lending platforms, investment funds, or other digital asset industry participants, such as the filing for bankruptcy protection by digital asset trading venues FTX Trading and BlockFi and digital asset lending platforms Celsius Network and Voyager Digital Holdings in 2022, the ordered liquidation of the digital asset investment fund Three Arrows Capital in 2022, the announced liquidation of Silvergate Bank in 2023, the government-mandated closure and sale of Signature Bank in 2023, the placement of Prime Trust, LLC into receivership following a cease-and-desist order issued by the Nevada Department of Business and Industry in 2023, and the exit of Binance from the U.S. market as part of its settlement with the Department of Justice and other federal regulatory agencies; |
• | regulatory, legislative, enforcement and judicial actions that adversely affect the price, ownership, transferability, trading volumes, legality or public perception of Bitcoin, or that adversely affect the operations of or otherwise prevent digital asset custodians, trading venues, lending platforms or other digital assets industry participants from operating in a manner that allows them to continue to deliver services to the digital assets industry; |
• | further reductions in mining rewards of Bitcoin, including due to block reward halving events, which are events that occur after a specific period of time (the most recent of which occurred in April 2024) that reduce the block reward earned by “miners” who validate Bitcoin transactions, or increases in the costs associated with Bitcoin mining, including increases in electricity costs and hardware and software used in mining, or new or enhanced regulation or taxation of Bitcoin mining, which could further increase the costs associated with Bitcoin mining, any of which may cause a decline in support for the Bitcoin network; |
• | transaction congestion and fees associated with processing transactions on the Bitcoin network; |
• | macroeconomic changes, such as changes in the level of interest rates and inflation, fiscal and monetary policies of governments (such as increased or decreased fiscal austerity), trade restrictions, and fiat currency devaluations; |
• | developments in mathematics or technology, including in digital computing, algebraic geometry and quantum computing, that could result in the cryptography used by the Bitcoin blockchain becoming insecure or ineffective; and |
• | changes in national and international economic and political conditions, including, without limitation, federal government policies, trade tariffs and trade disputes, the adverse impacts attributable to the current conflict between Russia and Ukraine and the economic sanctions adopted in response to the conflict, and the broadening of the Israel-Hamas conflict to other countries in the Middle East. |
• | a partial or total loss of Strive’s Bitcoin in a manner that may not be covered by insurance or the liability provisions of the custody agreements with the custodians who will hold Strive’s Bitcoin; |
• | harm to Strive’s reputation and brand; |
• | improper disclosure of data and violations of applicable data privacy and other laws; or |
• | significant regulatory scrutiny, investigations, fines, penalties, and other legal, regulatory, contractual and financial exposure. |
• | substantial payments to satisfy judgments, fines or penalties; |
• | substantial outside counsel legal fees and costs; |
• | additional compliance and licensure requirements; |
• | loss or non-renewal of existing licenses or authorizations, or prohibition from or delays in obtaining additional licenses or authorizations, required for Strive’s business; |
• | loss of productivity and high demands on employee time; |
• | criminal sanctions or consent decrees; |
• | termination of certain employees, including members of Strive’s executive team; |
• | barring of certain employees from participating in Strive’s business in whole or in part; |
• | orders that restrict or suspend Strive’s business or prevent Strive from offering certain products or services; |
• | changes to Strive’s business model and practices; |
• | delays and/or interruptions to planned transactions, product launches or improvements; and |
• | damage to Strive’s brand and reputation. |
• | market conditions in the broader stock market in general, or in our industry in particular; |
• | actual or anticipated fluctuations in our quarterly financial and operating results; |
• | introduction of new products and services by us or our competitors; |
• | issuance of new or changed securities analysts’ reports or recommendations; |
• | sales of large blocks of our stock; |
• | additions or departures of key personnel; |
• | regulatory developments; |
• | litigation and governmental investigations; and |
• | economic and political conditions or events. |
• | the authorization of undesignated preferred stock, the terms of which may be established and shares of which may be issued without stockholder approval; |
• | advance notice requirements for stockholder proposals; |
• | a restriction on acquiring more than a 20% ownership interest in Strive; and |
• | from and after the Sunset Date (as such term is defined in the Amended & Restated Articles of Incorporation), Strive will be governed by Nevada’s “combinations with interested stockholders” statutes (NRS 78.411 through 78.444). |
• | permit the board of directors to establish the number of directors and fill any vacancies and newly created directorships; |
• | provide that our board of directors are classified into three classes with staggered, three-year terms and that directors may only be removed by the affirmative vote of the holders of not less than two-thirds of the voting power of the shares then entitled to vote generally in the election of directors, voting together as a single class; |
• | require super-majority voting to amend certain provisions in our articles of incorporation and bylaws; |
• | authorize the issuance of “blank check” preferred stock that our board of directors could use to implement a stockholder rights plan; |
• | specify that Special Meetings of our stockholders can be called only by the affirmative vote of a majority of the entire board of directors; |
• | provide that the board of directors is expressly authorized to make, alter or repeal our bylaws; |
• | provide that vacancies on our board of directors may be filled only by a majority of directors then in office, even though less than a quorum; |
• | prohibit cumulative voting in the election of directors; |
• | restrict the forum for certain litigation against us to Nevada; |
• | restrict the forum for certain litigation against us to the federal district courts of the United States; |
• | reflect the dual class structure of our common stock; and |
• | establish advance notice requirements for nominations for election to our board of directors or for proposing matters that can be acted upon by stockholders at annual stockholder meetings. |
• | decreased user and investor confidence in Bitcoin, including due to the various factors described herein; |
• | investment and trading activities such as (i) trading activities of highly active retail and institutional users, speculators, other Bitcoin treasury companies, miners and investors, or of the U.S. or state governments, (ii) actual or expected significant dispositions of Bitcoin by large holders, and (iii) actual or perceived manipulation of the spot or derivative markets for Bitcoin or spot Bitcoin ETPs; |
• | negative publicity, media or social media coverage, or sentiment due to events in or relating to, or perception of, Bitcoin or the broader digital assets industry, for example, (i) public perception that Bitcoin can be used as a vehicle to circumvent sanctions, including sanctions imposed on Russia or certain regions related to the ongoing conflict between Russia and Ukraine, or to fund criminal or terrorist activities, such as the purported use of digital assets by Hamas to fund its terrorist attack against Israel in October 2023; (ii) expected or pending civil, criminal, regulatory enforcement or other high profile actions against major participants in the Bitcoin ecosystem, including the SEC’s subsequently dismissed enforcement actions against Coinbase, Inc. and Binance Holdings Ltd.; (iii) additional filings for bankruptcy protection or bankruptcy proceedings of major digital asset industry participants, such as the bankruptcy proceeding of FTX Trading and its affiliates; (iv) the actual or perceived environmental impact of Bitcoin and related activities, including environmental concerns raised by private individuals, governmental and non-governmental organizations, and other actors related to the energy resources consumed in the Bitcoin mining process; and (v) activities relating to other cryptocurrencies, including “meme coins”; |
• | changes in consumer preferences and the perceived value or prospects of Bitcoin; |
• | the recent increase in the number of other companies pursuing a Bitcoin treasury strategy, the abandonment of the strategy by such other companies, the failure by such other companies to satisfy their debt or other financial obligations, market concerns as to the viability or creditworthiness of such other companies, the loss or disposition of substantial Bitcoin by such other companies, regulatory or legal judgments or actions against such other companies due to their adoption of a Bitcoin treasury strategy, or any other similar actions or negative outcomes impacting such other companies, whether due to any of the various risk factors described herein or for any other reason; |
• | competition from other digital assets that exhibit better speed, security, scalability, or energy efficiency, that feature other more favored characteristics, that are backed or held in large amounts by governments, including the U.S. government, or reserves of fiat currencies, or that represent ownership or security interests in physical assets; |
• | a decrease in the price of other digital assets, including stablecoins, or the crash or unavailability of stablecoins that are used as a medium of exchange for Bitcoin purchase and sale transactions, such as the crash of the stablecoin Terra USD in 2022, to the extent the decrease in the price of such other digital assets or the unavailability of such stablecoins may cause a decrease in the price of Bitcoin or adversely affect investor confidence in digital assets generally; |
• | the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin, or the transfer of substantial amounts of Bitcoin from Bitcoin wallets attributed to Mr. Nakamoto or other “whales” that hold significant amounts of Bitcoin; |
• | developments relating to the Bitcoin protocol, including (i) changes to the Bitcoin protocol that impact its security, speed, scalability, usability, or value, such as changes to the cryptographic security protocol underpinning the Bitcoin blockchain, changes to the maximum number of Bitcoin outstanding, changes to the mutability of transactions, changes relating to the size of blockchain blocks, and changes to the amount of data that may be embedded into the Bitcoin blockchain, and similar changes, (ii) failures to make upgrades to the Bitcoin protocol to adapt to security, technological, legal or other challenges, and (iii) changes to the Bitcoin protocol that introduce software bugs, security risks or other elements that adversely affect Bitcoin; |
• | disruptions, failures, unavailability, or interruptions in service of trading venues for Bitcoin, such as, for example, the announcement by the digital asset exchange FTX Trading that it would freeze withdrawals and transfers from its accounts and subsequent filing for bankruptcy protection and the SEC enforcement action brought against Binance Holdings Ltd., which initially sought to freeze all of its assets during the pendency of the enforcement action (which has since been dismissed); |
• | the filing for bankruptcy protection by, liquidation of, or market concerns about the financial viability of digital asset custodians, trading venues, lending platforms, investment funds, or other digital asset industry participants, such as the filing for bankruptcy protection by digital asset trading venues FTX Trading and BlockFi and digital asset lending platforms Celsius Network and Voyager Digital Holdings in 2022, the ordered liquidation of the digital asset investment fund Three Arrows Capital in 2022, the announced liquidation of Silvergate Bank in 2023, the government-mandated closure and sale of Signature Bank in 2023, the placement of Prime Trust, LLC into receivership following a cease-and-desist order issued by the Nevada Department of Business and Industry in 2023, and the exit of Binance Holdings Ltd. from the U.S. market as part of its settlement with the DOJ and other federal regulatory agencies; |
• | regulatory, legislative, enforcement and judicial actions that adversely affect the price, ownership, transferability, trading volumes, legality or public perception of Bitcoin, or that adversely affect the operations of or otherwise prevent digital asset custodians, trading venues, lending platforms or other digital assets industry participants from operating in a manner that allows them to continue to deliver services to the digital assets industry; |
• | further reductions in mining rewards of Bitcoin, including block reward halving events, which are programmed events that occur after a specific period of time that reduce the block reward earned by “miners” who validate Bitcoin transactions, or increases in the costs associated with Bitcoin mining, including increases in electricity costs and hardware and software used in mining, that may cause a decline in support for the Bitcoin network; |
• | transaction congestion and fees associated with processing transactions on the Bitcoin network; |
• | macroeconomic changes, such as changes in the level of interest rates and inflation, fiscal and monetary policies of governments, trade restrictions, and fiat currency devaluations; |
• | developments in mathematics or technology, including in digital computing, algebraic geometry and quantum computing, that could result in the cryptography used by the Bitcoin blockchain becoming insecure or ineffective; and |
• | changes in national and international economic and political conditions, including, without limitation, the adverse impact attributable to the economic and political instability caused by the current conflict between Russia and Ukraine and the economic sanctions adopted in response to the conflict, and the potential broadening of the Israel-Hamas conflict to other countries in the Middle East, as well as expectations regarding changes to the regulatory environment, including for the U.S. digital asset industry. |
• | a partial or total loss of Semler Scientific’s Bitcoin in a manner that may not be covered by insurance or the liability provisions of the custody agreements with the custodians who hold Semler Scientific’s Bitcoin; |
• | harm to Semler Scientific’s reputation and brand; |
• | improper disclosure of data and violations of applicable data privacy and other laws; or |
• | significant regulatory scrutiny, investigations, fines, penalties, and other legal, regulatory, contractual and financial exposure. |
• | require Semler Scientific to notify health professionals and others that Semler Scientific’s devices present unreasonable risk of substantial harm to public health; |
• | order Semler Scientific to recall, repair, replace or refund the cost of any medical device that Semler Scientific manufactured or distributed; |
• | detain, seize or ban adulterated or misbranded medical devices; |
• | refuse to provide Semler Scientific with documents necessary to export Semler Scientific’s product; |
• | refuse requests for 510(k) clearance or premarket approval of new products or new intended uses; |
• | withdraw the premarket approvals Semler Scientific may receive or reclassify Semler Scientific’s device; |
• | impose operating restrictions, including requiring a partial or total shutdown of production; |
• | enjoin or restrain conduct resulting in violations of applicable law pertaining to medical devices; and/or |
• | assess criminal or civil penalties against Semler Scientific’s officers, employees or Semler Scientific. |
• | increasing Semler Scientific’s vulnerability to adverse economic and industry conditions; |
• | limiting Semler Scientific’s ability to obtain additional financing on acceptable terms or at all; |
• | requiring the dedication of a substantial portion of Semler Scientific’s cash flow from operations to service Semler Scientific’s indebtedness, which will reduce the amount of cash available for other purposes; |
• | limiting Semler Scientific’s flexibility to plan for, or react to, changes in Semler Scientific’s business; |
• | diluting the interests of Semler Scientific’s existing stockholders as a result of issuing shares of Semler Scientific Common Stock upon conversion of the notes; and |
• | placing Semler Scientific at a possible competitive disadvantage with competitors that are less leveraged than Semler Scientific or have better access to capital. |
• | delay, defer or prevent a change in control; |
• | entrench Semler Scientific’s management and the board of directors; or |
• | impede a merger, consolidation, takeover or other business combination involving Semler Scientific that other stockholders may desire. |
• | allow the authorized number of Semler Scientific’s directors to be changed only by resolution of the Semler Scientific Board; |
• | allow for a classified board of directors; |
• | establish advance notice requirements for stockholders’ proposal that can be acted on at stockholder meeting and nominations to Semler Scientific Board; and |
• | limit who may call stockholder meetings. |
• | any derivative action or proceeding brought on Semler Scientific’s behalf; |
• | any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee or stockholder of Semler Scientific’s company to Semler Scientific or Semler Scientific Stockholders; |
• | any action asserting a claim arising pursuant to any provision of the General Corporation Law of the State of Delaware, Semler Scientific’s charter or Semler Scientific’s bylaws, as to which the General Corporation Law of the State of Delaware confers jurisdiction on the Court of Chancery of the State of Delaware; and |
• | any action asserting a claim governed by the internal affairs doctrine. |
• | Semler Scientific’s Bitcoin treasury strategy, including changes thereto; |
• | additional capital raising transactions; |
• | regulatory, commercial and technical developments related to Bitcoin or the Bitcoin blockchain |
• | the success of competitive products, services or technologies; |
• | regulatory or legal developments in the United States and other countries; |
• | developments or disputes concerning patent applications, issued patents or other proprietary rights; |
• | the recruitment or departure of key personnel; |
• | actual or anticipated changes in estimates as to financial results, development timelines or recommendations by securities analysts; |
• | variations in Semler Scientific’s financial results or those of companies that are perceived to be similar to Semler Scientific; |
• | changes in the structure of healthcare payment systems; |
• | market conditions in the medical device sector; |
• | general economic, industry and market conditions; and |
• | the other factors described in this “Risk Factors” section. |
• | being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations” disclosure; and |
• | reduced disclosure obligations regarding executive compensation. |
• | reviewed a draft, dated September 22, 2025, of the Merger Agreement; |
• | reviewed certain publicly available business and financial information relating to Strive and Semler Scientific; |
• | reviewed certain historical financial information and other data relating to Semler Scientific that were provided to LionTree by the management of Semler Scientific, approved for LionTree’s use by Semler Scientific, and not publicly available; |
• | conducted discussions with members of the senior management of Semler Scientific concerning the business, operations, historical financial results, and financial prospects of Semler Scientific and Strive and the Transactions; |
• | conducted limited discussions with members of the senior management of Strive concerning the business and financial prospects of Strive; |
• | reviewed current and historical market prices of the Semler Scientific Common Stock and the Strive Class A Common Stock; |
• | reviewed certain publicly available financial and stock market data with respect to certain other companies; |
• | reviewed and compared data regarding the premiums paid in certain other transactions; |
• | reviewed certain financial data of Semler Scientific and Strive and compared that data with similar data for certain other companies; |
• | reviewed certain pro forma effects relating to the Transactions; |
• | reviewed the Management Provided Assumptions (as defined below); and |
• | conducted such other financial studies, analyses and investigations, and considered such other information, as LionTree deemed necessary or appropriate. |
• | equity value, calculated as the value of the relevant company’s outstanding equity securities (taking into account its outstanding restricted stock awards, and outstanding vested and unvested options, warrants, and other convertible securities, as applicable, based on the treasury stock method), based on the relevant company’s closing stock price; |
• | enterprise value (which we refer to in this section as “EV”), calculated as the relevant company’s equity value plus net debt (calculated as outstanding indebtedness, preferred stock, and capital lease obligations minus the amount of cash and cash equivalents on its balance sheet) plus the value of minority interests, minus the value of interests in entities for which the relevant company owns less than 50% of the equity, as of a specified date plus the value of certain contingent liabilities, as applicable; |
• | net asset value (which we refer to in this section as “NAV”), calculated as amount of Bitcoin owned multiplied by the current price of Bitcoin. |
• | The Smarter Web Company Plc |
• | Empery Digital Inc. |
• | Kindly MD, Inc. |
• | Strive, Inc. |
• | Metaplanet Inc. |
• | Strategy Inc. |
Selected Company | mNAV | ||
The Smarter Web Company Plc | 1.24x | ||
Empery Digital Inc. | 0.75x | ||
Semler Scientific, Inc. | 0.96x | ||
Kindly MD, Inc | 1.28x | ||
Strive, Inc. | 4.14x | ||
Metaplanet Inc. | 1.27x | ||
Strategy Inc. | 1.60x | ||
Semler Scientific, Inc. (@ Exchange Ratio) | 2.66x | ||
• | Business and Financial Condition. The Semler Scientific Board considered Semler Scientific’s business, financial performance (both past and prospective) and its financial condition, results of operations (including declining revenue), business and strategic objectives, as well as the risks of accomplishing those objectives and Semler Scientific’s business and financial prospects if it were to remain an independent company. |
• | Strategic Alternatives. The Semler Scientific Board determined that the consideration to be received by Semler Scientific Stockholders was more favorable to Semler Scientific Stockholders than the potential value that might result from other alternatives reasonably available to Semler Scientific, based on a number of factors, including the Semler Scientific Board’ knowledge, understanding and previous consideration of the strategic and other alternatives for enhancing stockholder value reasonably available to Semler Scientific and the risks and uncertainties associated with those alternatives. |
• | Bitcoin Scale. The Semler Scientific Board considered that the potential combined company would own over 10,900 Bitcoin, which would help Semler Scientific to achieve its long term Bitcoin treasury goals through additional scale. |
• | Industry Consolidation. The Semler Scientific Board believed that the Bitcoin treasury industry is currently fractured, and there would be consolidation within the industry to achieve financial and operational efficiencies, which the Merger would better enable Semler Scientific to realize. |
• | Attractive Value of Merger. The Semler Scientific Board’ determination that the Merger provide Semler Scientific Stockholders with attractive value for their shares of Semler Scientific Common Stock in light of a number of factors, including: |
• | the all-stock consideration enables Semler Scientific Stockholders to have a continued ownership position in the combined company (approximately 19.6% of the combined company based on the issued and outstanding shares of Strive Class A Common Stock and Semler Scientific Common Stock on September 19, 2025) and to participate in the value and opportunities of the combined company after the Merger, including any future earnings growth and any increase in the value of equity interests of Strive following the Merger; |
• | the exchange ratio of 21.05 shares of Strive Class A Common Stock for each share of Semler Scientific Common Stock represented a 210% premium to the price of the Semler Scientific Common Stock on the last full trading day prior to entering into the Merger Agreement; |
• | the shares of Strive Class A Common Stock that will be delivered to Semler Scientific Stockholders as merger consideration are attractive currency that will benefit both near and long term from the combination; and |
• | the combined company’s post-Merger intention to generate value from Semler Scientific’s historically profitable diagnostics business. |
• | Risks and Uncertainties. The Semler Scientific Board considered, among other factors, that Semler Scientific’s business and that its stockholders would continue to be subject to significant risks and uncertainties if Semler Scientific remained an independent public company, including: |
• | risks and uncertainties related to Semler Scientific’s business, financial performance and condition and future prospects; |
• | risks and uncertainties related to declining revenues from Semler Scientific's healthcare business, due to changes in the reimbursement landscape for asymptomatic peripheral artery disease as a result of the 2024 Centers for Medicare and Medicaid Services final rate announcement and delays in the anticipated timeline for FDA approval expanding the 510(k) indications for its QuantaFlo device; |
• | the current industry, economic and market conditions and trends in the markets in which Semler Scientific competes, including both its healthcare business and pursuing a Bitcoin treasury strategy, on-going changes in such markets and Semler Scientific’s business and the risks and uncertainties attendant thereto, including operating in a highly competitive industry and developing new treasury strategy; and |
• | the risks set forth in Semler Scientific’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2025. |
• | Negotiations. The Semler Scientific Board considered the fact that the terms of the Merger Agreement, were the result of arm’s-length negotiations conducted by Semler Scientific with the knowledge and at the direction of the Semler Scientific Board and with the assistance of its financial and legal advisors. The Semler Scientific Board also considered the enhancements that Semler Scientific and its advisors were able to obtain as a result of arm’s-length negotiations with Strive, including the increase in the exchange ratio offered by Strive from the time of its initial offer to the end of the negotiations, a number of changes in the terms and conditions of the Merger Agreement from the version initially proposed by Strive that were favorable to Semler Scientific and the inclusion of provisions in the Merger Agreement that the Semler Scientific Board believes increase the likelihood of completing the Merger, including: |
• | the conditions to the Merger being specific and limited; |
• | the exceptions contained within the “Company Material Adverse Effect” definition, which generally defines the standard for closing risk; |
• | the requirement of Strive to deliver its shareholder approval promptly after the execution of the Merger Agreement; and |
• | the commitment of Strive in the Merger Agreement to use reasonable best efforts to satisfy conditions and complete the Merger, and to obtain any regulatory approvals required to complete the Merger (as more fully described under “—The Merger Agreement—Reasonable Best Efforts Covenant” and “—The Merger Agreement—Conditions to Completion of the Merger”). |
• | Opportunity for Semler Scientific to Receive Alternative Proposals and Change Board Recommendation in response to a Superior Proposal. The Semler Scientific Board considered the terms of the Merger Agreement permitting Semler Scientific to receive unsolicited alternative proposals, and the other terms and conditions of the Merger Agreement related thereto including: |
• | Semler Scientific’s right, subject to certain conditions, to respond to and negotiate with parties that make unsolicited acquisition proposals that are made prior to the receipt of the Semler Scientific Stockholder Approval; |
• | the provision of the Merger Agreement that allows the Semler Scientific Board to change its recommendation to stockholders to approve the Merger Agreement, subject to certain conditions; |
• | the “force the vote” provision (i.e., while the Semler Scientific Board, under certain circumstances, could change its recommendation in the event of a superior proposal, Semler Scientific could not terminate the Merger Agreement to enter into an agreement for a superior proposal until its stockholders failed to approve the proposed strategic transaction with Strive); and |
• | the belief that the $49,000,000 termination fee, payable in cash or Bitcoin at the election of Strive, payable by Semler Scientific under certain circumstances (i) is reasonable relative to termination fees in transactions of similar size and (ii) would not preclude another party from making a competing proposal. |
• | Other Considerations. The Semler Scientific Board also considered and balanced against the factors potentially weighing in favor of the Merger a number of uncertainties, risks, restrictions and other factors potentially weighing against the Merger, including the following (which are not necessarily presented in order of relative importance): |
• | the risks and costs to Semler Scientific if the Merger is delayed or not consummated for any reason, including the diversion of management and employee attention, potential management and employee attrition and the potential disruptive effect on Semler Scientific’s business relationships and potential negative impact on Semler Scientific’s operating results; |
• | the fact that Semler Scientific’s directors, officers and employees have expended, and will continue to expend, extensive efforts to consummate the Merger to the potential detriment of their employment duties related to Semler Scientific’s day-to-day operations during the pendency of the Merger; |
• | the risk of incurring substantial expenses related to the consummation of the Merger; |
• | the fact that certain officers and directors of Semler Scientific may have interests in the Merger that may be different from, or in addition to, the interests of the other Semler Scientific Stockholders generally; and |
• | the fact that completion of the Merger is subject to the satisfaction of certain closing conditions that are not within Semler Scientific’s control (as described in “The Merger Agreement—Conditions to Completion of the Merger”). |
Name | Position | ||
Executive Officers | |||
Douglas Murphy-Chutorian, M.D. | Chief Executive Officer, Interim Chief Financial Officer and Director | ||
Non-Employee Directors | |||
Eric Semler | Executive Chairman | ||
Daniel S. Messina | Director | ||
Natalie Brunell | Director | ||
William H.C. Chang | Director | ||
Name | Unvested Company Options (#) | Estimated Value of Unvested Company Options ($) | Vested Company Options (#) | Estimated Value of Vested Company Options ($) | ||||||||
Executive Officers | ||||||||||||
Douglas Murphy-Chutorian, M.D. | 84,372 | 1,493,465 | 255,628 | 15,499,335 | ||||||||
Renae Cormier* | — | — | 8,645 | 360,379 | ||||||||
Non-Employee Directors | ||||||||||||
Natalie Brunell | 3,098 | 99,163 | 7,402 | 220,525 | ||||||||
William H.C. Chang | 9,737 | 302,199 | 29,448 | 1,024,363 | ||||||||
Daniel S. Messina | 2,016 | 46,655 | 13,294 | 418,749 | ||||||||
Eric Semler | 143,468 | 2,437,854 | 105,907 | 1,535,720 | ||||||||
* | Ms. Cormier resigned effective October 30, 2025. |
• | The Effective Time occurs on November 19, 2025, which is the assumed date of the Effective Time solely for purposes of the disclosure in this section; |
• | Each Semler Scientific Option will be treated as described in the section titled “Treatment of Outstanding Semler Scientific Equity Awards”; |
• | The value per share of Semler Scientific Common Stock on the consummation of the Merger is $65.89, which is equal to (i) the average closing price of one share of Strive Class A Common Stock over the first five business days following the first public announcement of the Merger multiplied by (ii) the Exchange Ratio; |
• | The employment of each of Semler Scientific’s named executive officers is terminated immediately following the Effective Time in a manner entitling the named executive officer to receive the severance payments and benefits described above in the section above titled “—Existing Semler Scientific Employment Agreements”; |
• | Each Semler Scientific named executive officer has complied with all requirements necessary in order to receive all payments and benefits; |
• | No named executive officer receives any transaction bonuses, retention bonuses, or vacation payouts; |
• | No named executive officer receives any additional equity grants on or prior to the Effective Time; and |
• | No named executive officer enters into new agreements or is otherwise legally entitled to, prior to the Effective Time, any additional compensation or benefits, except as described above. |
Name | Cash ($)(1) | Equity ($)(2) | Perquisites/Benefits ($)(3) | Total ($) | ||||||||
Douglas Murphy-Chutorian, M.D. | 450,000 | 1,493,465 | 19,861 | 1,990,225 | ||||||||
Renae Cormier* | — | — | — | — | ||||||||
* | Ms. Cormier resigned effective October 30, 2025. |
(1) | Amounts shown reflect the cash severance payment that Dr. Murphy-Chutorian is eligible to receive pursuant to the Murphy-Chutorian Employment Agreement, as described above in the section above titled “—Existing Semler Scientific Employment Agreements.” This severance payment is a “single-trigger” benefit as it will be paid to Dr. Murphy-Chutorian upon a termination of employment, regardless of when the termination occurs or the reason for the termination of employment (including voluntary resignation), subject to the execution and non-revocation of a separation agreement and release in favor of Semler Scientific. Ms. Cormier was not eligible to receive, and did not receive, cash severance upon termination of employment. |
(2) | Amounts shown reflect the value of accelerated vesting of certain unvested Semler Scientific Options held by the named executive officers. For this purpose, the value of each unvested Semler Scientific Option is an amount equal to (a) the assumed value per share of Semler Scientific Common Stock of $65.89 (as described in more detail in the section titled “—Quantification of Potential Payments and Benefits to Semler Scientific’s Named Executive Officers in connection with the Merger” above) minus (b) the per share exercise price of such Semler Scientific Option (prior to conversion into a Converted Option). Such amounts are “double-trigger” benefits in that they will become payable only if the named executive officer’s employment or service is terminated without cause at or during the six month period immediately following the Effective Time. For a description of the treatment of Semler Scientific Options in the Merger, see the section above titled “—Treatment of Outstanding Semler Scientific Equity Awards.” |
(3) | Amounts shown reflect the current estimated cost of COBRA premiums for Dr. Murphy-Chutorian for nine months, as described above in the section titled “—Existing Semler Scientific Employment Agreements.” These amounts are “single-trigger” benefits as they will be paid to Dr. Murphy-Chutorian upon a termination of employment, regardless of when the termination occurs or the reason for the termination of employment (including voluntary resignation), subject to the execution and non-revocation of a separation agreement and release in favor of Semler Scientific. Ms. Cormier was not eligible to receive, and did not receive, payment of COBRA premiums upon termination of employment. |
• | Attractive Value of Merger. The Strive Board’s determination that the Merger provides Strive Stockholders with attractive value in light of a number of factors, including: |
• | the anticipated value of the Merger, based upon among other things the business, operations and historical financial performance of Strive and Semler Scientific; |
• | the synergy of Semler Scientific’s medical device business and the expertise of Strive management and board members presents future opportunities for monetizing the medical device business; |
• | the fact that the combined company will own over 10,900 Bitcoin, prior to any additional Bitcoin raised from future financings, in addition to sufficient cash held in reserve to support future perpetual preferred offerings; and |
• | the fact that Strive Stockholders will have the opportunity to continue to participate in Strive’s expected future earnings growth and any increase in the value of their equity interest in Strive resulting therefrom following the Merger. |
• | Post-Closing Governance Flexibility. The Strive Board’s determination that the Charter Amendment provides post-closing governance flexibility to the combined company in light of a number of factors, including: |
• | the fact that eliminating the cap on the number of directors on the Strive Board facilitates adding directors with experience relevant to the combined company (including designees from the other party and/or independent directors with industry, operating, capital markets, regulatory and risk oversight expertise), while maintaining robust committee coverage and succession planning; and |
• | the fact that the Charter Amendment has no adverse effect on Strive Stockholders’ rights, as such amendment does not change the process for electing or removing directors, the fiduciary duties of directors under applicable law, or stockholder voting standards. |
• | High Likelihood of Completion. The Strive Board considered the likelihood of completion of the Merger to be high, particularly in light of the terms of the Merger Agreement and closing conditions, including: |
• | the commitment of Semler Scientific in the Merger Agreement to use reasonable best efforts to satisfy conditions and complete the Merger and to obtain any regulatory approvals required to complete the Merger (as more fully described under “The Merger Agreement—Regulatory Approvals Required for the Merger” and “The Merger Agreement—Conditions to Completion of the Merger”); |
• | the requirement that, if the Merger Agreement is terminated under certain circumstances, Semler Scientific must pay Strive a termination fee of $49,000,000 (as more fully described under “The Merger Agreement—Termination of the Merger Agreement”); and |
• | the fact that stockholders of Strive beneficially owning approximately 57.4% of the outstanding voting power of Strive have voted or cause to be voted their shares of Strive Common Stock in favor of the Parent Share Issuance. |
• | Other Considerations. The Strive Board also considered and balanced against the factors potentially weighing in favor of the Merger a number of uncertainties, risks, restrictions and other factors potentially weighing against the Merger, including the following (which are not necessarily presented in order of relative importance): |
• | the risks and costs to Strive if the Merger is delayed or not consummated for any reason, including the diversion of management and employee attention, potential management and employee attrition, the potential disruptive effect on Strive’s business relationships and the potential negative impact on Strive’s operating results; |
• | the fact that Strive’s directors, officers and employees have expended, and will continue to expend, extensive efforts to consummate the Merger to the potential detriment of their employment duties related to Strive’s day-to-day operations during the pendency of the Merger; |
• | the fact that Strive could pursue other means of financing to acquire a comparable number of Bitcoin—such as public or private equity issuances (including PIPE or registered offerings), debt financing (including convertible notes), at-the-market programs, strategic investments or asset sales; |
• | the risk of incurring substantial expenses related to the consummation of the Merger; and |
• | the fact that completion of the Merger is subject to the satisfaction of certain closing conditions that are not within Strive’s control (as described in “The Merger Agreement—Conditions to Completion of the Merger”). |
• | Strive Stockholders will retain the majority of the voting and economic value of the common shares of the combined company subsequent to the transaction; |
• | The remaining voting interests held by former Semler Scientific Stockholders do not constitute a coordinated minority; |
• | Strive’s designated leadership will control the combined entity’s operations post business combination; and |
• | Strive’s existing directors will control the majority of the post business combination board. |
• | the affirmative vote of the holders of a majority of the outstanding shares of Semler Scientific Common Stock approving and adopting the Merger Agreement; |
• | the affirmative vote of the holders of a majority of the outstanding voting power of the outstanding shares of Strive Common Stock approving the issuance of shares of Strive Common Stock in connection with the Merger, which affirmative vote was obtained via written consent by the requisite Strive Stockholders promptly following the execution of the Merger Agreement; |
• | absence of (x) any applicable law or order preventing or making illegal the consummation of the Merger or any of the other transactions contemplated by the Merger Agreement and (y) any litigation or similar legal action by any governmental authority (in any jurisdiction in which Strive, Semler Scientific or any of their respective subsidiaries conducts material operations) seeking to prohibit or restrain the Merger; |
• | effectiveness under the Securities Act of the registration statement for the shares of Strive Common Stock being issued in the Merger (of which the information statement/proxy statement/prospectus forms a part) and the absence of any stop order suspending that effectiveness or any pending proceedings for that purpose; and |
• | approval for the listing on the Nasdaq of the shares of Strive Common Stock to be issued in the Merger, subject to official notice of issuance. |
• | the accuracy of the representations and warranties made in the Merger Agreement by Semler Scientific as of the date of the Merger Agreement and as of the date of completion of the Merger, subject to certain materiality thresholds; |
• | performance in all material respects by Semler Scientific of the obligations required to be performed by it at or prior to the Effective Time; |
• | the absence since the date of the Merger Agreement of any event, circumstance, development, change, occurrence or effect that has had or would reasonably be expected to have, individually or in the aggregate, a material adverse effect on Semler Scientific (see “The Merger Agreement—Definition of ‘Material Adverse Effect’” beginning on page 149 of the information statement/proxy statement/prospectus for the definition of material adverse effect); |
• | receipt of a certificate signed by an executive officer of Semler Scientific as to the satisfaction of the conditions described in the preceding three bullets; and |
• | (x) the expiration or termination of any applicable waiting period, or any extension thereof, under the HSR Act without the imposition of a Burdensome Condition (see “The Merger Agreement—Reasonable Best Efforts Covenant” beginning on page 158 of the information statement/proxy statement/prospectus for the definition of Burdensome Condition) (including any Burdensome Condition that would come into effect at completion of the Merger), (y) there being no applicable law or order in force and effect that would impose a Burdensome Condition (including any Burdensome Condition that would come into effect at completion of the Merger) and (z) there being no pending litigation or similar legal action by any governmental authority (in any jurisdiction in which Strive, Semler Scientific or any of their respective subsidiaries conducts material operations) seeking to impose a Burdensome Condition. |
• | the accuracy of the representations and warranties made in the Merger Agreement by Strive as of the date of the Merger Agreement and as of the date of completion of the Merger, subject to certain materiality thresholds; |
• | performance in all material respects by Strive and Merger Sub of the obligations required to be performed by them at or prior to the Effective Time; |
• | the absence since the date of the Merger Agreement of any event, circumstance, development, change, occurrence, or effect that has had or would reasonably be expected to have, individually or in the aggregate, a material adverse effect on Strive (see “The Merger Agreement—Definition of ‘Material Adverse Effect’” beginning on page 149 of the information statement/proxy statement/prospectus for the definition of material adverse effect); |
• | receipt of a certificate signed by an executive officer of Strive as to the satisfaction of the conditions described in the preceding three bullets; and |
• | the expiration or termination of any applicable waiting period, or any extension thereof, under the HSR Act (as described under “The Merger—Regulatory Approvals Required for the Merger” beginning on page 143 of the information statement/proxy statement/prospectus). |
• | corporate existence, good standing and qualification to do business; |
• | due authorization, execution and validity of the Merger Agreement and the applicable ancillary agreements; |
• | governmental consents necessary to complete the transactions contemplated by the Merger Agreement; |
• | absence of any conflict with or violation or breach of organizational documents, laws or regulations or agreements as a result of the execution, delivery or performance of the Merger Agreement, the ancillary agreements and completion of the Merger and the other transactions contemplated by the Merger Agreement; |
• | capitalization; |
• | subsidiaries; |
• | regulatory reports and SEC filings and internal controls over financial reporting; |
• | financial statements and financial matters; |
• | information provided by the applicable party for inclusion in disclosure documents to be filed with the SEC in connection with the Merger; |
• | conduct of business in the ordinary course of business consistent with past practice and absence of any event, change, effect, development or occurrence that has had or would reasonably be expected to have, individually or in the aggregate, a material adverse effect on the applicable party; |
• | absence of undisclosed material liabilities; |
• | absence of pending or threatened legal proceedings and investigations; |
• | compliance with laws, regulations, orders and permits; |
• | material contracts; |
• | digital assets; |
• | FDA, medical device and compliance matters. |
• | tax matters; |
• | employees, employee benefit plans and labor matters; |
• | intellectual property and real property matters; |
• | environmental matters; |
• | certain stock ownership matters; |
• | absence of any undisclosed broker’s or finder’s fees payable in connection with the Merger; |
• | receipt of opinions from financial advisors (in the case of Semler Scientific); and |
• | inapplicability of anti-takeover statutes. |
• | any changes after the date of the Merger Agreement in general United States or global economic conditions, including changes in United States or global securities, credit, financial, debt or other capital markets; |
• | any changes after the date of the Merger Agreement in conditions generally affecting the industries in which that party or any of its subsidiaries materially engages; |
• | any decline, in and of itself, in the market price or trading volume of that party’s stock, any changes in credit ratings and any changes in any analysts’ recommendations or ratings with respect to that party or any of its subsidiaries (but not any facts or occurrences giving rise to or contributing to that decline that are not otherwise excluded from the definition of material adverse effect); |
• | any failure, in and of itself, by that party to meet any internal or published projections, forecasts, estimates or predictions in respect of revenues, earnings or other financial or operating metrics for any period (but not any facts or occurrences giving rise to or contributing to that failure that are not otherwise excluded from the definition of material adverse effect); |
• | the execution and delivery of the Merger Agreement, the public announcement or the pendency of the Merger Agreement (except with respect to any representation or warranty that is intended to address the consequences of the execution and delivery of the Merger Agreement or the public announcement or pendency of the Merger Agreement); |
• | any changes after the date of the Merger Agreement in any applicable law or generally accepted accounting principles (or authoritative interpretations thereof); |
• | any action or omission of a party to the Merger Agreement pursuant to the written consent of the other party to the Merger Agreement; |
• | any acts of God, natural disasters, terrorism, armed hostilities, sabotage, war or any escalation or worsening of acts of war, epidemic, pandemic or disease outbreak (including COVID-19); or |
• | with respect only to Semler Scientific: |
○ | any changes in the price or trading volume of Bitcoin; (but not any facts or occurrences giving rise to or contributing to that failure that are not otherwise excluded from the definition of material adverse effect); or |
○ | any regulatory or clinical, competitive, pricing, reimbursement, supply or manufacturing effects relating to or affecting QuantaFlo or any product competitive with or related to QuantaFlo (except with respect to any representation or warranty that is intended to address the consequences of any regulatory or clinical, competitive, pricing, reimbursement, supply or manufacturing effects relating to or affecting QuantaFlo or any product competitive with or related to QuantaFlo). |
• | amend its organizational documents; |
• | merge or consolidate with any other entity; |
• | acquire any interest in any corporation, partnership, other business organization or any division thereof or any assets, securities or property, other than (w) acquisitions of assets, securities or property in the ordinary |
• | adopt or publicly propose a plan of complete or partial liquidation, dissolution, recapitalization, restructuring or other reorganization, or resolutions providing for or authorizing such a liquidation, dissolution, recapitalization, restructuring or other reorganization; |
• | (i) split, combine or reclassify any securities, stock, shares, units, warrants, calls, options or other similar rights issued by Semler Scientific (“Company Securities”) (whether by merger, consolidation or otherwise) (other than transactions (1) solely among Semler Scientific and one or more of its wholly owned subsidiaries or (2) solely among Semler Scientific’s wholly owned Subsidiaries), (ii) amend any term or alter any rights of any Company Securities, (iii) declare, set aside or pay or make any dividend or any other distribution (whether in cash, stock, property or any combination thereof) in respect of any Company Securities or any securities, stock, shares, units, warrants, calls, options or other similar rights issued by any subsidiaries of Semler Scientific (“Company Subsidiary Securities”) (other than dividends or distributions by a subsidiary of Semler Scientific to Semler Scientific or a wholly owned subsidiary of Semler Scientific) (in the case of this clause (iii), other than any dividends or other distributions by a subsidiary of Semler Scientific to Semler Scientific or a subsidiary thereof), or (iv) redeem, repurchase, cancel or otherwise acquire or offer to redeem, repurchase, or otherwise acquire any Company Securities or Company Subsidiary Securities, other than certain repurchases in connection with the exercise of stock options in accordance with the terms of Semler Scientific’s stock option plans; |
• | issue, deliver or sell, or authorize the issuance, delivery or sale of, any Company Securities or Company Subsidiary Securities, other than (i) the issuances of Semler Scientific Common Stock upon the exercise of Semler Scientific Options in accordance with the terms of the Semler Scientific Stock Plans and such Semler Scientific Option award or (ii) the issuance of any Company Subsidiary Securities to Semler Scientific or any of its wholly owned subsidiaries; |
• | authorize, make or incur any capital expenditures or obligations or liabilities in connection therewith, subject to certain exceptions, other than (i) as contemplated by Semler Scientific’s capital expenditure budget and (ii) any other capital expenditures not to exceed $500,000 in the aggregate; |
• | sell, lease, license, sublicense, transfer or otherwise dispose of, or fail to take any action necessary to maintain, enforce or protect, directly or indirectly, any of Semler Scientific’s subsidiaries or any of Semler Scientific’s or its subsidiaries’ assets, securities, interests, businesses or properties, other than (i) dispositions in the ordinary course of business with a purchase price not in excess of $500,000 (provided, that this clause (i) does not apply to Bitcoin) in the aggregate or (ii) certain intercompany transactions; |
• | sell, assign, license, sublicense, abandon, allow to lapse, transfer or otherwise dispose of, create or incur any lien (other than liens permitted under the Merger Agreement) on or otherwise fail to take any action necessary to maintain, enforce or protect, directly or indirectly, any of Semler Scientific’s material owned intellectual property or licensed intellectual property, other than in the ordinary course of business consistent with past practice (i) pursuant to non-exclusive licenses or (ii) for the purpose of disposing of obsolete or worthless assets; |
• | subject to certain exceptions, make any loans or extension of credit in excess of $1,000,000 in a single transaction or renewals of loans or extensions of credit in excess of $1,000,000, or make any advances or capital contributions to, or investment in, any other person, other than loans, advances or capital contributions by Semler Scientific to its wholly owned subsidiaries, by an Semler Scientific subsidiary to Semler Scientific and amongst wholly owned subsidiaries of Semler Scientific; |
• | incur, assume, suffer to exist or otherwise be liable with respect to, or guarantee or repurchase, or enter into any contract with respect to, any indebtedness for borrowed money; |
• | create or incur any lien (except for liens permitted under the Merger Agreement) on any material asset other than liens created or incurred under certain existing or otherwise permitted indebtedness under the Merger Agreement, and liens on assets subject to capital leases entered into in the ordinary course of business; |
• | (i) enter into any material contract (including (x) by amendment of any contract that is not a material contract such that such contract becomes a material contract or (y) through acquisition of a subsidiary that is bound by a material contract) (in each case, other than in the ordinary course of business with respect to certain material contracts) or (ii) terminate, renew, extend or amend in any material respect any material contract or waive any material right thereunder (other than in the ordinary course of business with respect to certain material contracts); |
• | terminate, amend or modify any material governmental consent, approval, permit or other confirmation necessary for the operation of Semler Scientific’s or its subsidiaries’ businesses in a manner material and adverse to Semler Scientific and its subsidiaries, taken as a whole; |
• | except as required by Semler Scientific’s employee benefit plans in effect as of the date of the Merger Agreement and except as otherwise set forth in the confidential disclosure schedules to the Merger Agreement, (i) grant any change in control, retention, severance or termination pay to (or amend any existing arrangement with) any current or former director, officer, employee or individual contractor of Semler Scientific or any of its subsidiaries (each, a “Service Provider”), (ii) except in the ordinary course of business consistent with past practice with Service Providers other than key employees, enter into any employment, offer letter, term sheet, deferred compensation or other similar agreement (or any amendment to any such existing agreement) with any current or former Service Provider, (iii) establish, adopt, amend or enter into any material employee benefits plan, other than in connection with routine, immaterial or ministerial amendments to health and welfare plans that do not materially increase benefits or result in a material increase in administrative costs, (iv) grant any equity or equity-based awards to, or discretionarily accelerate the vesting or payment of any such awards held by, any current or former Service Provider, (v) increase the compensation, bonus or other benefits payable to any current or former Service Provider, (vi) hire any key employees or (vii) terminate (other than for cause) any key employees or provide any key employees with the right to resign with “good reason” or term of similar meaning; |
• | make any material change in Semler Scientific’s method of financial accounting, except as required by reason of a change in United States generally accepted accounting principles or Regulation S-X under the Exchange Act, as approved by Semler Scientific’s independent public accountants; |
• | enter into any material new line of business; |
• | (i) make or change any material tax election, (ii) change any annual tax accounting period, (iii) adopt or change any material method of tax accounting, (iv) enter into any material closing agreement with respect to taxes or (v) settle or surrender (including by entering into a closing agreement) any material tax claim, audit or assessment; |
• | settle, compromise, or offer or propose to settle or compromise, any claim, action, suit, dispute, investigation, regulatory examination, arbitration, or other proceeding, whether pending or threatened, (i) involving or against Semler Scientific or its subsidiaries, other than in the ordinary course of business consistent with past practice (provided that any individual settlement or compromise or any series of related settlements or compromises involving payments by Semler Scientific and its subsidiaries in excess of $250,000 individually or $1,000,000 in the aggregate (in each case, net of any amounts that may be paid under one or more existing insurance policies) or providing for any non-monetary relief will be deemed not to be in the ordinary course of business), (ii) that relates to the transactions contemplated by the Merger Agreement or (iii) initiated by a stockholder of Semler Scientific; |
• | enter into or materially expand any business outside of the U.S. and its territories; or |
• | agree, resolve, authorize, commit or propose to do any of the foregoing. |
• | amend its organizational documents in a manner that would be materially adverse to Semler Scientific Stockholders; |
• | merge or consolidate with any other entity; |
• | acquire any interest in any corporation, partnership, other business organization or any division thereof or any assets, securities or property, except as would not, individually or in the aggregate, reasonably be expected to, prevent or delay beyond the end date set forth in the Merger Agreement the clearing of the information statement/proxy statement/prospectus by the SEC and the effectiveness of the registration statement under the Securities Act; |
• | adopt or propose a plan of complete or partial merger, liquidation, consolidation, recapitalization, restructuring, or other reorganization or dissolution with respect to Strive or Merger Sub, or resolutions providing for such a merger, liquidation, consolidation, recapitalization, restructuring or other reorganization or dissolution with respect to Strive or Merger Sub; |
• | declare, set aside or pay or make any dividend or make any other distribution (whether in cash, stock, property or any combination thereof) in respect of any shares of Strive Common Stock or capital stock of its subsidiaries or other securities, other than any dividends or other distributions to Strive or any other subsidiary thereof; or |
• | agree, resolve, authorize, commit or propose to do any of the foregoing. |
• | (i) engage in negotiations or discussions with any third party that, subject to Semler Scientific’s compliance with the solicitation restrictions described in the first paragraph of this section (“The Merger Agreement—No Solicitation” beginning on page 154 of this information statement/proxy |
• | make a Company Adverse Recommendation Change involving or relating to the occurrence of a Company Intervening Event (as defined below). |
• | propose, negotiate, commit to or effect, by consent decree, hold separate orders or otherwise, the sale, divesture, disposition, or license of any assets, properties, products, rights, services or businesses of Strive, Semler Scientific or any of their respective subsidiaries or any of Strive’s affiliates, or any interest therein; |
• | otherwise take or commit to take any actions that would limit Strive’s, Semler Scientific’s or any of their respective subsidiaries’ or any of Strive’s affiliates’ freedom of action with respect to, or its or their ability to retain any of their respective assets, properties, products, rights, services or businesses, or any interest or interests therein; or |
• | agree to do any of the foregoing. |
• | Strive and Semler Scientific to cooperate with the other in taking, or causing to be taken, all actions necessary to delist Semler Scientific Common Stock from the Nasdaq and terminate its registration under the Exchange Act; provided that such delisting and termination will not be effective until the completion of the Merger; |
• | Semler Scientific to promptly notify, and keep Strive informed, of any stockholder demands, litigations, arbitrations or other similar proceedings (including derivative claims) against it or the members of its directors or officers relating to the Merger Agreement or any of the transactions contemplated by the Merger Agreement or any matters relating to the transactions contemplated by the Merger Agreement. Semler Scientific will give Strive the opportunity to participate in the defense and settlement of any such litigation. Semler Scientific will not settle or offer, compromise or agree to settle or compromise, or take any other action to settle, compromise or moot, any such litigation without Strive’s prior written consent (which will not be unreasonably withheld, conditioned or delayed); |
• | subject to certain exceptions, Strive and Semler Scientific to consult with each other before issuing any press release, making any public statement, scheduling a press conference or taking certain other actions, in each case with respect to the Merger Agreement or the transactions contemplated by the Merger Agreement; |
• | prior to the Effective Time, Strive and Semler Scientific to take all such steps as may be required (to the extent permitted under applicable law) to cause any dispositions of Semler Scientific Common Stock (including derivative securities with respect to Semler Scientific Common Stock) or acquisitions of Strive Common Stock (including derivative securities with respect to Strive Common Stock) resulting from the transactions contemplated by the Merger Agreement by each individual who is subject to reporting requirements under Section 16(a) of the Exchange Act with respect to Semler Scientific, or will become subject to such reporting requirements with respect to Strive, to be exempt under Rule 16b-3 under the Exchange Act; |
• | prior to the Effective Time, Semler Scientific to provide to the trustee under the indentures governing Semler Scientific’s notes outstanding any notices, announcements, certificates or legal opinions required by such indentures in connection with the Merger, and Semler Scientific to cooperate with Strive on certain matters in the event that Strive requests that any of Semler Scientific’s notes outstanding be amended, redeemed or satisfied and discharged prior to the completion of the Merger; |
• | Strive and Semler Scientific to keep each other reasonably informed in reasonable detail and in a timely fashion of any actual or proposed ATM financing and to coordinate and cooperate with one another with a view to achieving the orderly, efficient and successful execution of any such financing; and |
• | Strive and Semler Scientific to notify the other of certain events. |
• | by mutual written agreement of Strive and Semler Scientific; |
• | by either Strive or Semler Scientific, if: |
○ | the Merger has not been completed on or before the end date (March 22, 2026); however, the right to terminate the Merger Agreement at the end date will not be available to any party to the Merger Agreement whose breach of any provision of the Merger Agreement results in the failure of the Merger to be completed by such time; |
○ | there is in effect any applicable law, order or injunction that permanently enjoins, prevents or prohibits the completion of the Merger and, if such applicable law is an order or injunction, such applicable |
○ | Semler Scientific Stockholders fail to approve and adopt the Merger Agreement upon a vote taken on a proposal to approve and adopt the Merger Agreement at the Special Meeting; or |
○ | there has been a breach by the other party of any representation or warranty or failure to perform any covenant or agreement that would result in the failure of the other party to satisfy an applicable condition to the completion of the Merger related to the accuracy of representations and warranties or performance of covenants, and such breach has not been cured within 45 days of notice thereof or is incapable of being cured, but only so long as the party seeking to terminate the Merger Agreement pursuant to this bullet is not then in breach of its representations, warranties, covenants or agreements contained in the Merger Agreement, which breach would cause the applicable condition to the completion of the Merger not to be satisfied; |
• | by Strive, if: |
○ | prior to the Semler Scientific Stockholder Approval and adoption of the Merger Agreement, (i) the Semler Scientific Board makes a Company Adverse Recommendation Change or (ii) there has been a willful and material breach by Semler Scientific of its obligations described under “The Merger Agreement—Obligations to Call the Special Meeting” and “The Merger Agreement—No Solicitation” beginning on page 154 of this information statement/proxy statement/prospectus, other than in the case where (w) such breach is a result of an isolated action by a representative of Semler Scientific (other than one of its directors or officers), (x) such breach was not caused by, or within the knowledge of, Semler Scientific, (y) Semler Scientific takes appropriate actions to remedy such breach promptly upon discovery thereof and (z) Strive is not harmed as a result thereof; or |
• | by Semler Scientific, if: |
○ | Strive does not deliver, or cause to be delivered to Semler Scientific, the duly executed Strive Stockholder Approval in accordance with the terms of the Merger Agreement (which has been delivered to Semler Scientific prior to the date hereof). |
• | Shareholders — Seek equity exposure to Bitcoin with potential to outperform spot Bitcoin via beta accumulation strategies and alpha investing strategies. |
• | ETF & Asset management clients — Registered investment advisers, broker-dealers, family offices, and retail investors allocating to Strive Stockholders-first products and shareholder advocacy. |
• | ETF Architect — Provides middle- and back-office solutions for ETFs. |
• | Angel Oak — Provides middle- and back-office solutions for actively managed fixed-income ETFs. |
• | Vestmark — Provides middle- and back-office solutions for Direct Indexing. |
• | Bloomberg — Index provider for the ETFs and direct indexing solutions. |
• | 117 Partners — Provides risk analysis and deal flow for distressed Bitcoin claims. |
1. | Beta Bitcoin Accumulation Strategies (mechanisms that scale Bitcoin exposure) including: |
• | PIPE Financing — In September 2025, Strive completed a private placement of approximately $750 million of Strive Class A Common Stock and warrants, i.e., PIPE Financing. The PIPE Financing was effectuated separately from the Merger, and its proceeds have been and are expected to be used primarily to fund Strive’s Bitcoin treasury strategy. A substantial portion of the PIPE Financing net proceeds (approximately $675 million) was allocated to purchases of Bitcoin. |
• | Other Financings — In addition, Strive intends to raise additional capital over the next 12 months through at-the-market offerings (including under its September 15, 2025 Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co.) pursuant to its effective shelf registration statement, other equity or equity-linked offerings, preferred stock issuances and/or fixed income financings to acquire additional Bitcoin and Bitcoin-related products as well as for general corporate purposes. It is expected that Strive will use over 90% of the aggregate net proceeds from these financings to purchase |
2. | Potential Alpha Investing Strategies (unlinked to mNAV, designed to generate increased exposure and outperformance versus Bitcoin) include: |
• | Strategic acquisitions. Strive intends to evaluate and, where appropriate, pursue acquisitions of publicly traded companies whose securities trade at or below estimated net asset value (NAV), including companies within the Bitcoin ecosystem and other sectors with attractive balance sheet characteristics. In such transactions, Strive’s objective would be to deploy substantially all net cash acquired (after deducting liabilities, including current liabilities, operating lease obligations, and debt) into Bitcoin and Bitcoin-related products, consistent with Strive’s treasury and capital allocation strategy. Strive generally does not expect to operate any acquired non-core businesses and may seek to wind down, divest, out-license, transfer, or otherwise monetize legacy assets; where Strive determines retained assets (e.g., intellectual property, technology, or Bitcoin-related capabilities) have strategic or financial merit, it may evaluate continued development or monetization. These acquisitions are expected to be affected primarily through equity consideration, with target stockholders receiving Strive equity. Attractive opportunities may allow Strive to obtain cash or strategic Bitcoin-related assets at a discount, potentially increasing Bitcoin exposure. Strive intends to identify and pursue such opportunities on an ongoing basis, including within the 12 months following the Closing; however, availability, timing, and completion are subject to market conditions, regulatory approvals, counterparty considerations, and customary diligence processes, which may extend beyond 12 months. Associated costs are expected to include customary banking, legal, accounting, and other transaction expenses. |
• | Purchasing distressed Bitcoin litigation claims at a discount. Strive plans to evaluate acquiring Bitcoin-related litigation claims at a discount. These claims typically represent finalized legal judgments but may still be pending distribution. As a result, they often trade below prevailing Bitcoin market prices and may offer value accretion upon resolution. As these opportunities may enable Strive to acquire Bitcoin at a discount relative to prevailing market prices, with a lesser amount of risk of non-performance given the finalized nature of the settlement, Strive believes it may be able to generate returns that exceed those associated with acquiring Bitcoin at the current market price. Strive intends to pursue these strategies on an ongoing basis, including during the 12 months following the Closing. However, due to the nature of the settlements, there can be no assurance as to the timing of settlement and receipt of the Bitcoin underlying the claim, which could occur more than 12 months after the Closing. Further, counterparties to the settlement may file appeals, which could further delay the timing and result in additional legal costs to Strive. To the extent Strive utilizes capital raise programs to fund these acquisitions, it expects to incur customary transaction expenses, such as banking, legal and accounting fees. |
• | Buying junior tranches of Bitcoin-backed credit structures. Strive may acquire junior or equity tranches of structured pools backed by Bitcoin at discounted levels relative to the underlying collateral as the Bitcoin-backed credit market is built on. These instruments are typically subordinate to senior debt in repayment priority but may offer superior risk-adjusted return to Bitcoin given that they can often be purchased at a discount to the principal balance. However, in the event of a substantial |
• | Preserve flexibility through being selective with debt offerings to preserve balance sheet flexibility for opportunistic issuance. |
• | Target single-digit-million annual operating P&L impact from the asset-management segment beginning FY 2026, allowing the vast majority of capital to go towards treasury deployment. |
• | Use Bitcoin — not fiat — as the hurdle rate for capital deployment. |
• | MicroStrategy Incorporated. With more than 600,000 Bitcoin on its balance sheet, Strategy remains the reference standard for scale. Its willingness to deploy virtually every capital raising instrument — from at the market equity programs to convertible notes and innovative preferred equity instruments — demonstrates the power of innovative financial engineering in service of Bitcoin accumulation. |
• | Metaplanet, Inc. Listed in Tokyo, Metaplanet exploits the structural nuances of the Japanese equity and debt markets — particularly low domestic borrowing costs, differences in tax treatment for Bitcoin versus corporate securities, and a retail premium on Bitcoin exposure — to capture an “arbitrage” that translates into incremental Bitcoin exposure for investors. |
• | Twenty-One. Twenty-One leverages its strategic relationship with Tether to immediately acquire a large amount of Bitcoin, giving it a unique position of strength in scaling Bitcoin-adjacent operations. |
• | Nakamoto Corporation. Backed by Bitcoin Inc., Nakamoto combines a traditional treasury strategy with seed investments in emerging Bitcoin treasury companies in each capital market, positioning itself as an incubator for the next wave of corporate adopters. Nakamoto’s leadership, through UTXO Management, were the seed investors in Metaplanet. |
• | Cantor Equity Partners I (“CEPO”). Through its proposed business combination with Bitcoin Standard Treasury Company led by Adam Back, CEPO would debut with a substantial initial Bitcoin treasury and sizeable cash and in-kind commitments. The vehicle showcases an aggressive, innovation-forward capital stack—including convertibles and preferred equity—aimed at maximizing Bitcoin-per-share growth and supported by deep capital-markets distribution. |
• | Columbus Circle Capital Corp I (“BRR”). Merging with Anthony Pompliano’s ProCap BTC and rebranding around “Bitcoin Rate of Return,” BRR positions itself to outperform Bitcoin through accretive BTC accumulation, equity and hybrid financing, and a roadmap toward a Bitcoin-native financial institution—using the public vehicle and branding to scale treasury and yield strategies. |
• | Spot Bitcoin ETFs. The ETF complex offers the broadest, lowest friction onramp for institutional allocators but, by design, delivers only passive beta; management fees steadily erode Bitcoin exposure and no alpha is available. |
• | Asset Management — Subject to the Investment Advisers Act of 1940, Investment Company Act of 1940, Securities Act of 1933, and Securities Exchange Act of 1934, including periodic SEC examinations, marketing-rule compliance, and fund-reporting obligations. |
• | Digital Assets — Bitcoin transactions may implicate the Commodity Exchange Act (CFTC oversight), FinCEN anti-money-laundering rules, OFAC sanctions screening, and forthcoming digital-asset accounting guidance. Additionally, Section 351 exchanges rely on prevailing U.S. federal income tax interpretations, which may change. |
• | Public Company Reporting — As a public company, we file reports under Sections 13(a) and 15(d) of the Exchange Act, including Form 10-K, Form 10-Q, and proxy statements. |

• | Age (over 50 years) |
• | Race (African-American) |
• | History of smoking |
• | Diabetes |
• | High blood pressure |
• | High blood cholesterol |
• | Personal history of vascular disease, heart attack, or stroke. |
• | Targeting customers with patients at risk of developing PAD and other cardiovascular diseases (subject to FDA clearance). Healthcare providers use blood flow measurements as part of their assessment of a patient’s cardiac and vascular condition. Semler Scientific’s strategy is to keep marketing QuantaFlo on a recurrent revenue model to insurance plans and medical personnel who care for those older than 50 years, including cardiologists, internists, nephrologists, endocrinologist, podiatrists, and family practitioners. Specifically, Semler Scientific believes there are more than 400,000 physicians and other potential customers in the United States alone, many of whom care for patients older than 50 years old and at increased risk of developing PAD and other cardiovascular diseases. Based on U.S. Census data, the evaluable patient population for QuantaFlo is estimated to be more than 80 million patients in the United States annually. |
• | Expanding the tools available to internists and non-peripheral vascular experts. Semler Scientific’s intention is to provide a tool to internists and non-cardiovascular experts, for whom it was previously impractical to conduct a blood flow measurement unless in a specialized vascular laboratory. For cardiovascular specialists, QuantaFlo does not require the use of blood pressure cuffs (which should not be used on some breast cancer patients), and measures without blood pressure in obese patients and patients with non-compressible, hard, calcified arteries. Currently, these patients often are unable to be measured satisfactorily with traditional devices. |
• | Developing additional product and service offerings that allow healthcare providers to deliver cost-effective wellness and receive increased compensation for their services. In March 2015, Semler Scientific received FDA 510(k) clearance of Semler Scientific’s product, QuantaFlo, to aid clinicians in the diagnosis and monitoring of PAD. The cleared device reflected several updates and modifications to the original model that were developed in conjunction with Semler Scientific’s consultant engineering groups. Semler Scientific is seeking a new 510(k) clearance for the expanded use of QuantaFlo following correspondence with the FDA. The new 510(k) is intended to enable expanded labeling for QuantaFlo as an aid in the diagnosis of other cardiovascular diseases in addition to PAD. Further, Semler Scientific continues to explore potential new product and service offerings through Semler Scientific’s research and development programs. Semler Scientific’s goal is to provide cost-effective wellness solutions for Semler Scientific’s growing, established customer base, achieve a reputation for outstanding service, all while leveraging Semler Scientific’s gains in the marketplace for such product and service offerings. |
• | Exploring additional product and service offerings through arrangements. In addition to Semler Scientific’s in-house research and development efforts, Semler Scientific is also seeking out opportunities to expand Semler Scientific’s product and service offerings through marketing, distribution and licensing arrangements. Such arrangements will allow Semler Scientific to sell products related to chronic disease management through Semler Scientific’s network of physicians and other customers. |
• | product design and development; |
• | product testing; |
• | product manufacturing; |
• | product safety; |
• | post-market adverse event reporting; |
• | post-market surveillance; |
• | product labeling; |
• | product storage; |
• | record keeping; |
• | premarket clearance or approval; |
• | post-market approval studies; |
• | advertising and promotion; and |
• | product sales and distribution. |
• | establishment registration and device listings with the FDA; |
• | QSR, which require manufacturers to follow stringent design, testing, process control, documentation and other quality assurance procedures; |
• | labeling regulations, which prohibit the promotion of products for uncleared or unapproved, i.e., “off-label,” uses and impose other restrictions on labeling; |
• | medical device reporting regulations, which require that manufacturers report to the FDA if their device may have caused or contributed to a death or serious injury or malfunctioned in a way that would likely cause or contribute to a death or serious injury if it were to recur; |
• | corrections and removal reporting regulations, which require that manufacturers report to the FDA field corrections and product recalls or removals if undertaken to reduce a risk to health posed by the device or to remedy a violation of the U.S. Federal Food, Drug, and Cosmetic Act (“FDCA”) that may present a risk to health; and |
• | requirements to conduct post-market surveillance studies to establish continued safety data. |
• | untitled letters or warning letters; |
• | fines, injunctions and civil penalties; |
• | recall or seizure of Semler Scientific’s products; |
• | operating restrictions, partial suspension or total shutdown of production; |
• | refusing Semler Scientific’s request for 510(k) clearance or premarket approval or de novo classification of new products; |
• | withdrawing premarket approvals that are already granted or reclassifying the devices; and |
• | criminal prosecution. |
Name | Age | Position | ||||
Matthew Cole | 41 | Chief Executive Officer and Chairman of the Board | ||||
Benjamin Pham | 31 | Chief Financial Officer and Director | ||||
Brian Logan Beirne | 44 | Chief Legal Officer and Director | ||||
Arshia Sarkhani | 28 | Chief Marketing Officer and Director | ||||
Avik Roy | 52 | Director | ||||
Pierre Rochard | 36 | Director | ||||
Shirish Jajodia | 38 | Director | ||||
James A. Lavish | 55 | Director | ||||
Jonathan R. Macey | 70 | Director | ||||
Mahesh Ramakrishnan | 30 | Director | ||||
Eric Semler* | 60 | Director | ||||
* | The Merger Agreement provides that Strive will take all necessary action permitted by applicable law and the rules of any applicable stock exchange to cause one of Semler Scientific’s directors, Mr. Semler, to be appointed to the Strive Board as of the Effective Time, provided that Mr. Semler is able to meet Nasdaq’s independence criteria. |
Name and Principal Position | Year | Salary ($)(1) | Bonus ($)(2) | Stock Awards ($)(3) | All Other Compensation ($)(4) | Total ($) | ||||||||||||
Matthew Cole Chief Executive Officer | 2024 | 415,000 | 63,000 | 7,050,275 | 13,800 | 7,542,075 | ||||||||||||
Benjamin Pham Chief Financial Officer | 2024 | 337,500 | 52,500 | 1,938,466 | 9,437 | 2,337,903 | ||||||||||||
(1) | As further described below, Mr. Cole’s annual base salary was $410,000 for the first half of 2024 and was increased to $420,000 on July 1, 2024 and Mr. Pham’s annual base salary was $325,000 for the first half of 2024 and was increased to $350,000 on July 1, 2024. |
(2) | The amounts reported in this column reflect special bonuses paid to Messrs. Cole and Pham as compensation for their relocation from Ohio to Texas. Strive otherwise did not provide any other bonuses to any of the NEOs in 2024. |
(3) | The amounts reported in this column represent the aggregate grant date fair value of the awards of Old Strive RSUs granted to each of the Strive NEOs under the Strive EIP and as described in further detail below. The grant date fair value was calculated in accordance with FASB ASC Topic 718, excluding the effect of estimated forfeitures related to time-based vesting conditions or performance-based vesting conditions. The amounts reported for the Old Strive RSU awards subject to performance conditions were calculated based on the probable outcome of the performance conditions as of the grant date, consistent with the estimate of aggregate compensation cost to be recognized over the service period determined as of the grant date under FASB ASC Topic 718, excluding the effect of estimated forfeitures. The assumptions used in calculating such grant date fair value are set forth in the notes to Strive’s audited consolidated financial statements included elsewhere in this prospectus. Amounts reported do not reflect the actual economic value that may be realized by the applicable Strive NEO. |
(4) | The amounts reported in this column reflect company matching contributions in 2024 under Strive’s 401(k) plan for Mr. Cole ($13,800) and Mr. Pham ($9,437). |
Stock Awards | |||||||||
Name | Grant Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | ||||||
Matthew Cole | 12/29/2022 | 16,107(1) | 781,995(1) | ||||||
4/5/2023 | 58,231(1) | 2,827,115(1) | |||||||
7/8/2024 | 185,849(1) | 9,022,967(1) | |||||||
Benjamin Pham | 4/15/2022 | 9,004(2) | 437,144(2) | ||||||
7/8/2024 | 51,099(1) | 2,480,856(1) | |||||||
(1) | Reflects the grant of Old Strive RSUs outstanding under the Strive EIP that vest upon the satisfaction of both a “time condition” and a “performance condition.” The time condition applicable to the Old Strive RSUs is satisfied as follows: (i) 25% of the Old Strive RSUs satisfy the time condition on the first anniversary of the Old Strive RSU grant date and (ii) the remaining 75% of the Old Strive RSUs satisfy |
(2) | Reflects the remaining unvested portion of the grant of Old Strive RSAs under the Strive EIP that vest over a four-year period, beginning with a one year cliff, with 25% of the Old Strive RSAs vesting on March 1, 2023 and the remainder vesting in 12 equal quarterly installments thereafter, subject to the Strive NEO’s continued employment through each such vesting date. Notwithstanding the foregoing vesting schedule, in the event the Strive NEO is employed on the date of the closing of a “sale transaction” and the Strive NEO’s employment with Strive or its successor in the sale transaction is not continued after such sale transaction is finally completed, the Old Strive RSAs fully vest and the restrictions thereof lapse. A sale transaction includes any of (i) a merger, consolidation, sale of stock/equity, or similar transaction in which Strive is a constituent party except any such merger or consolidation involving Strive or a subsidiary in which the shares of capital stock of Strive outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of capital stock that represent, immediately following such merger or consolidation, at least a majority, by voting power, of the capital stock of the surviving or resulting corporation, (ii) a sale or transfer of all or substantially all of Strive’s assets or (iii) a dissolution or liquidation of Strive. |
• | arrange for the assumption, continuation or substitution of the award by the successor or acquiring corporation (or its parent); |
• | arrange for the assignment to the successor or acquiring corporation (or its parent) of, any reacquisition or repurchase rights held by Strive; |
• | accelerate the vesting of the award and provide for its termination prior to the Effective Time of the corporate transaction; |
• | arrange for lapse of any reacquisition or repurchase rights held by Strive with respect to awards; |
• | terminate or cancel the award to the extent not vested or not exercised prior to the Effective Time of the corporate transaction; or |
• | make a payment, in such form as determined by the Strive Board, equal to the excess, if any, of the value of the property that would have been received if such award was exercised immediately prior to the Effective Time of the corporate transaction over any exercise price payable. |
• | the consummation of a sale or other disposition of all or substantially all, as determined by the Strive Board in its sole discretion, of the consolidated assets of Strive and its subsidiaries; |
• | the consummation of a sale or other disposition of at least 90 percent of the outstanding shares of the Company; |
• | the consummation of a merger, consolidation or similar transaction following which Strive is not the surviving corporation; or |
• | the consummation of a merger, consolidation or similar transaction following which Strive is the surviving corporation but the shares outstanding immediately preceding the Merger, consolidation or similar transaction are converted or exchanged by virtue of the Merger, consolidation or similar transaction into other property, whether in the form of securities, cash or otherwise. |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) | All Other Compensation ($) | Total ($) | ||||||||||||
Arshia Sarkhani Chief Executive Officer and President | 2024 | 240,000 | 75,000 | 6,174(1) | 12,864 | 334,038 | ||||||||||||
2023 | 240,000 | 10,000 | 486,000(2) | 7,346 | 743,346 | |||||||||||||
Michael Gaubert Executive Chairman | 2024 | 240,000 | 75,000 | 9,549(3) | 12,864 | 337,413 | ||||||||||||
2023 | 220,000 | 50,000 | 547,965(4) | 27,346(5) | 845,311 | |||||||||||||
Kyle Fairbanks Executive Vice-Chairman and Chief Marketing Officer | 2024 | 240,000 | — | 4,658(6) | 12,864 | 257,522 | ||||||||||||
2023 | 240,000 | 10,000 | 486,000(7) | 7,346 | 743,346 | |||||||||||||
(1) | On December 27, 2024, Arshia Sarkhani was granted 13,254 shares of Asset Entities Class B Common Stock. The aggregate grant date fair value of this award was computed in accordance with FASB ASC Topic 718 based on the assumptions described in Note 2 to Asset Entities’ financial statements beginning on page F-1 of Asset Entities’ Annual Report filed with the Commission on March 31, 2025. |
(2) | On February 7, 2023, Arshia Sarkhani was granted 40,000 shares of Asset Entities Class B Common Stock subject to vesting as to approximately one-third of the total granted shares on each of the first three anniversaries of the grant date. The aggregate grant date fair value of this award was computed in accordance with FASB ASC Topic 718 based on the assumptions described in Note 2 to Asset Entities’ financial statements beginning on page F-1 of Asset Entities’ Annual Report filed with the Commission on March 31, 2025. |
(3) | On December 27, 2024, Michael Gaubert was granted 20,500 shares of Asset Entities Class B Common Stock. The aggregate grant date fair value of this award was computed in accordance with FASB ASC Topic 718 based on the assumptions described in Note 2 to Asset Entities’ financial statements beginning on page F-1 of Asset Entities’ Annual Report filed with the Commission on March 31, 2025. |
(4) | On February 7, 2023, Michael Gaubert was granted 45,100 shares of Class B Common Stock subject to vesting as to approximately one-third of the total granted shares on each of the first three anniversaries of the grant date. The aggregate grant date fair value of this award was computed in accordance with FASB ASC Topic 718 based on the assumptions described in Note 2 to Asset Entities’ financial statements beginning on page F-1 of Asset Entities’ Annual Report filed with the Commission on March 31, 2025. |
(5) | All other compensation consisted of consulting fees and health insurance. |
(6) | On December 27, 2024, Kyle Fairbanks was granted 10,000 shares of Asset Entities Class B Common Stock. The aggregate grant date fair value of this award was computed in accordance with FASB ASC Topic 718 based on the assumptions described in Note 2 to Asset Entities’ financial statements beginning on page F-1 of Asset Entities’ Annual Report filed with the Commission on March 31, 2025. |
(7) | On February 7, 2023, Kyle Fairbanks was granted 40,000 shares of Class B Common Stock subject to subject to vesting as to approximately one-third of the total granted shares on each of the first three anniversaries of the grant date. The aggregate grant date fair value of this award was computed in accordance with FASB ASC Topic 718 based on the assumptions described in Note 2 to Asset Entities’ financial statements beginning on page F-1 of Asset Entities’ Annual Report filed with the Commission on March 31, 2025. |
Stock Awards | |||||||||
Name | Grant Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | ||||||
Arshia Sarkhani | 2/7/2023 | 26,666(1) | 13,093 | ||||||
Michael Gaubert | 2/7/2023 | 30,066(2) | 14,762 | ||||||
Kyle Fairbanks | 2/7/2023 | 26,666(3) | 13,093 | ||||||
(1) | On February 7, 2023, Arshia Sarkhani was granted 40,000 shares of common stock subject to vesting as to approximately one-third of the total granted shares on each of the first three anniversaries of the grant date. |
(2) | On February 7, 2023, Michael Gaubert was granted 45,100 shares of common stock subject to vesting as to approximately one-third of the total granted shares on each of the first three anniversaries of the grant date. |
(3) | On February 7, 2023, Kyle Fairbanks was granted 40,000 shares of common stock subject to subject to vesting as to approximately one-third of the total granted shares on each of the first three anniversaries of the grant date. |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) | Total ($) | ||||||||||||||
Richard A. Burton | 49,000 | 6,544(1) | — | — | — | — | 55,544 | ||||||||||||||
John A. Jack II | 44,500 | 6,544(1) | — | — | — | — | 51,044 | ||||||||||||||
Scott K. McDonald | 49,000 | 6,544(1) | — | — | — | — | 55,544 | ||||||||||||||
David Reynolds | 20,000 | 5,231(2) | — | — | — | — | 25,231 | ||||||||||||||
Brian Regli(3) | 24,500 | — | — | — | — | — | 24,500 | ||||||||||||||
(1) | On February 7, 2023, each of Richard A. Burton, John A. Jack II and Scott K. McDonald was granted 1,800 shares of Asset Entities Class B Common Stock, subject to vesting as to one-fourth of the granted shares in each of the first, second, third and fourth calendar quarters following the grant date. On November 11, 2024, each of Mr. Burton, Mr. Jack and Mr. McDonald was granted 8,200 shares of Asset Entities Class B Common Stock, subject to vesting as to one-fourth of the granted shares on each of the grant date, the three-month anniversary of the grant date, the six-month anniversary of the grant date and the nine-month anniversary of the grant date. The aggregate grant date fair value of this award was computed in accordance with FASB ASC Topic 718 based on the assumptions described in Note 2 to Asset Entities’ financial statements beginning on page F-1 of Asset Entities’ Annual Report filed with the Commission on March 31, 2025. All of the granted shares remained outstanding as of December 31, 2024. |
(2) | On May 15, 2024, David Reynolds was granted 1,800 shares of Asset Entities Class B Common Stock, subject to vesting as to 450 shares of Asset Entities Class B Common Stock in each of the first, second, third and fourth calendar quarters following the grant date, subject to vesting as to one-fourth of the granted shares in each of the first, second, third and fourth calendar quarters following the grant date. On November 11, 2024, Mr. Reynolds was granted 1,200 shares of Asset Entities Class B Common Stock, subject to vesting as to one-fourth of the granted shares on each of the grant date, the three-month anniversary of the grant date, the six-month anniversary of the grant date and the nine-month anniversary of the grant date. On December 27, 2024, Mr. Reynolds was granted 2,000 shares of Asset Entities Class B Common Stock. The aggregate grant date fair value of these awards was computed in accordance with FASB ASC Topic 718 based on the assumptions described in Note 2 to Asset Entities’ financial statements beginning on page F-1 of Asset Entities’ Annual Report filed with the Commission on March 31, 2025. All of the granted shares remained outstanding as of December 31, 2024. |
(3) | Brian Regli was a director of the Company from February 2, 2023 to May 16, 2024. |
Name and Address of Beneficial Owner | Number of Shares Beneficially Owned | Percentage of Shares Beneficially Owned | ||||
Named Executive Officers and Directors: | ||||||
William H.C. Chang(1) | 918,698 | 6.00% | ||||
Eric Semler(2) | 842,364 | 5.47% | ||||
Douglas Murphy-Chutorian(3) | 510,057 | 3.28% | ||||
Daniel S. Messina(4) | 26,359 | * | ||||
Renae Cormier(5) | 12,391 | * | ||||
Natalie Brunell(6) | 9,434 | * | ||||
All current directors and executive officers as a group (5 persons) | 2,319,303 | 14.73% | ||||
5% Stockholders: | ||||||
BlackRock, Inc.(7) | 858,705 | 5.62% | ||||
Morgan Stanley(8) | 790,603 | 5.17% | ||||
* | Less than 1% |
(1) | Includes (a) 33,017 shares underlying options to purchase shares of Semler Scientific Common Stock, (b) 199,596 shares held in three grantor retained annuity trusts, (c) 443,160 shares held by W&D Chang Family Trust and (d) 241,508 shares held by Chang 2020 GP LP, for which Mr. Chang and his spouse are the managing members of Chang 2020 GP, LLC, its general partner, and share voting and investment control. The principal business address of each of the Chang Family Trust, Chang 2020 GP LP, Mr. Chang and Mrs. Chang is 520 El Camino Real, 9th Floor, San Mateo, California 94402. |
(2) | Includes 128,247 shares underlying options to purchase shares of Semler Scientific Common Stock. |
(3) | Includes (a) 268,754 shares underlying options to purchase shares of Semler Scientific Common Stock and (b) 241,303 shares held in a family trust over which Dr. Murphy-Chutorian is co-Trustee with his spouse, with whom he shares voting and investment power over such securities. |
(4) | Includes 14,449 shares underlying options to purchase shares of Semler Scientific Common Stock. |
(5) | Includes (a) 8,645 shares underlying options to purchase shares of Semler Scientific Common Stock and (b) 3,746 shares held in a family trust over which Ms. Cormier is co-Trustee with her spouse, with whom she shares voting and investment power over such securities. Ms. Cormier resigned effective October 30, 2025. |
(6) | Represents 9,434 shares underlying options to purchase shares of Semler Scientific Common Stock. |
(7) | Based solely on a Schedule 13G filed on October 17, 2025 by BlackRock, Inc. (“BlackRock”). Includes (a) 839,794 shares for which BlackRock has sole voting power and (b) 858,705 shares for which BlackRock has sole dispositive power. The principal business address of BlackRock, Inc. is 50 Hudson Yards, New York, NY 10001. |
(8) | Based solely on a Schedule 13G jointly filed on August 7, 2025 by Morgan Stanley and Morgan Stanley Investment Management Inc. Includes (a) 790,437 shares for which Morgan Stanley has shared voting power and 789,925 shares for which Morgan Stanley has shared |
Amount of Strive Class A Common Stock | Amount of Strive Class B Common Stock | Percent of Class A (%) | Percent of Class B (%) | |||||||||
Named Executive Officers and Directors: | ||||||||||||
Matt Cole(1) | 185,185 | 7,505,273 | * | 3.78% | ||||||||
Ben Pham(2) | 74,074 | 4,458,804 | * | 2.25% | ||||||||
Logan Beirne(3) | 74,074 | 518,750 | * | * | ||||||||
Arshia Sarkhani(4) | 289,487 | — | * | — | ||||||||
James A. Lavish(5) | 1,111,111 | — | * | — | ||||||||
All current directors and executive officers as a group (5 persons) | 1,733,931 | 12,482,827 | * | 6.29% | ||||||||
5% Stockholders: | ||||||||||||
Vivek Ramaswamy(6) | — | 116,002,828 | — | 58.46% | ||||||||
Ramaswamy 2021 Irrevocable Trust(7) | — | 28,378,829 | — | 14.30% | ||||||||
Anson Frericks(8) | 2,195,145 | 18,780,578 | * | 9.46% | ||||||||
Anson Funds(9) | 36,578,825 | — | 5.45% | — | ||||||||
Citadel(10) | 41,323,663 | — | 6.16% | — | ||||||||
Kenneth Griffin(11) | 41,446,863 | — | 6.18% | — | ||||||||
Alyeska(12) | 44,519,966 | — | 6.63% | — | ||||||||
Jane Street(13) | 46,443,910 | — | 6.92% | — | ||||||||
MMCAP(14) | 37,037,038 | — | 5.52% | — | ||||||||
YA II PN, Ltd.(15) | 38,576,603 | — | 5.75% | — | ||||||||
Kenneth Tropin(16) | 37,037,038 | — | 5.52% | — | ||||||||
* | Less than 1% |
(1) | Includes (a) 55,555 unexercised warrants and (b) beneficial ownership of Strive through control of LT&C LLC, which holds 129,630 unexercised warrants. |
(2) | Includes (a) 4,019,291 Strive Class B Common Stock held directly by Mr. Pham, (b) beneficial ownership of Strive through control of 2025-10 Investments LLC, which holds 74,074 unexercised warrants, and (c) 439,513 shares subject to RSAs and RSUs scheduled to vest on December 31, 2025. Actual shares issued will depend on the number of shares withheld for taxes at vesting. |
(3) | Includes (a) 353,940 Strive Class B Common Stock held directly by Mr. Beirne, (b) 74,074 unexercised warrants held directly by Mr. Beirne and (c) 164,810 shares subject to RSUs scheduled to vest on December 31, 2025. Actual shares issued will depend on the number of shares withheld for taxes at vesting. |
(4) | Includes (a) 39,921 Strive Class A Common Stock held directly by Mr. Sarkhani and (b) 249,566 Strive Class A Common Stock expected to be transferred to him from Asset Entities Holdings LLC within 60 days pursuant to a cancellation agreement. |
(5) | Includes beneficial ownership of Strive through control of Bitcoin Opportunity Fund, LP., Bitcoin Opportunity Fund II, LP and Bitcoin Opportunity Fund II, QP, LP. Bitcoin Opportunity Fund LP holds 759,259 unexercised warrants, Bitcoin Opportunity Fund II, LP holds 120,000 unexercised warrants and Bitcoin Opportunity Fund II QP, LP holds 231,852 unexercised warrants. |
(6) | Based on a Schedule 13D/A filed jointly on November 17, 2025 by Vivek Ramaswamy, Ramaswamy 2021 Irrevocable Trust, Matthew Cole, 2025-10 Investments LLC, Logan Beirne, Virtuous Industries LLC, Benjamin Pham, LT&C LLC, and Liberty Pier Foundation. Includes beneficial ownership of Strive through Virtuous Industries LLC. Virtuous Industries LLC owns 2,124,899 Class B shares. The business address of Mr. Ramaswamy is C/O Steve Roberts, 853 New Jersey Ave SE, Suite 200- 231, Washington, DC 20003. The principal business address of Virtuous Industries LLC is 9172 W Meadow Drive West Chester, OH 45069. |
(7) | Based on a Schedule 13D/A filed jointly on November 17, 2025 by Vivek Ramaswamy, Ramaswamy 2021 Irrevocable Trust, Matthew Cole, 2025-10 Investments LLC, Logan Beirne, Virtuous Industries LLC, Benjamin Pham, LT&C LLC, and Liberty Pier Foundation. The principal business address of Ramaswamy 2021 Irrevocable Trust is 3711 Kennet Pike, Suite 220, Wilmington, DE 19807. |
(8) | Based on a Schedule 13D/A filed jointly on November 17, 2025 by Vivek Ramaswamy, Ramaswamy 2021 Irrevocable Trust, Matthew Cole, 2025-10 Investments LLC, Logan Beirne, Virtuous Industries LLC, Benjamin Pham, LT&C LLC, and Liberty Pier Foundation. The principal business address of Anson Frericks is 8044 Montgomery Road, Suite 120, Cincinnati, OH, 45236. |
(9) | Based solely on a Schedule 13G filed jointly on November 14, 2025 by Anson Funds Management LP, Anson Management GP LLC, Tony Moore, Anson Advisors Inc., Amin Nathoo and Moez Kassam. The principal business address for Anson Funds Management LP, Anson Management GP LLC and Mr. Moore is 16000 Dallas Parkway, Suite 800 Dallas, Texas 75248 and for Anson Advisors Inc., Mr. Nathoo and Mr. Kassam is 181 Bay Street, Suite 4200 Toronto, ON M5J 2T3. |
(10) | Based solely on a Schedule 13G jointly filed on November 14, 2025 by Citadel Advisors LLC, Citadel Advisors Holdings LP, Citadel GP LLC, Citadel Securities LLC, Citadel Securities Group LP, Citadel Securities GP LLC and Kenneth Griffin. Includes 41,323,663 Strive Class A Common Stock beneficially owned by Citadel Advisors LLC, Citadel Advisors Holdings LP and Citadel GP LLC. The principal business address of each of the Reporting Persons is 830 Brickell Plaza, Miami, Florida 33131. |
(11) | Based solely on a Schedule 13G jointly filed on November 14, 2025 by Citadel Advisors LLC, Citadel Advisors Holdings LP, Citadel GP LLC, Citadel Securities LLC, Citadel Securities Group LP, Citadel Securities GP LLC and Kenneth Griffin. Includes 41,446,863 Strive Class A Common Stock beneficially owned by Mr. Griffin. The principal business address of each of the Reporting Persons is 830 Brickell Plaza, Miami, Florida 33131. |
(12) | Based solely on a Schedule 13G jointly filed on November 14, 2025 by Alyeska Investment Group, L.P., Alyeska Fund GP, LLC and Anand Parekh. The principal business address of each of the Reporting Persons is 77 West Wacker Drive, 7th Floor, Chicago, IL 60601. |
(13) | Based solely on a Schedule 13G jointly filed on November 13, 2025 by Jane Street Group, LLC, Jane Street Capital, LLC, Jane Street Options, LLC and Jane Street Global Trading, LLC. The principal business address of each of the Reporting Persons is 250 Vesey Street 6th Floor New York, NY 10281. |
(14) | Based solely on a Schedule 13G filed jointly on October 15, 2025 by MMCAP International Inc. SPC and MM Asset Management Inc. The principal business address for MMCAP International Inc. SPC is c/o Mourant Governance Services (Cayman) Limited, 94 Solaris Avenue, Camana Bay, P. O. Box 1348, Grand Cayman, KY1-1108, Cayman Islands and for MM Asset Management Inc. is 161 Bay Street, TD Canada Trust Tower Suite 2240, Toronto, Ontario M5J 2S1 Canada. |
(15) | Based solely on a Schedule 13G filed on October 7, 2025 by YA II PN, Ltd. The principal business address for YA II PN, Ltd is 1012 Springfield Ave., Mountainside, NJ 07092. |
(16) | Based solely on a Schedule 13G filed jointly on September 22, 2025 by Kenneth Tropin , KGT, Inc., Graham Capital Management, L.P., Graham Macro Strategic Ltd., and Graham Credit Opportunities Ltd. The principal business address of each of GCM, GMS, and GCO is 40 Highland Avenue, Rowayton, CT 06853. The address of the principal business office of each of KGT and Mr. Tropin is 505 South Flagler Drive, Suite 1550, West Palm Beach, FL 33401. |
• | if a dividend is paid in shares of common stock, it must be paid in Strive Class A Common Stock with respect to Strive Class A Common Stock and in Strive Class B Common Stock with respect to Strive Class B Common Stock; and |
• | a dividend or distribution in different types or amounts as between the classes requires separate approval by a majority of each class voting separately. |
• | if the aggregate “stated amount” (as defined below under the caption “—Definitions”) of the SATA Stock represented by such physical certificate is at least $5.0 million (or such lower amount as Strive may choose in its sole and absolute discretion) and the holder of such SATA Stock entitled to such cash regular dividend or amount has delivered to the paying agent, no later than the time set forth below, a written request to receive payment by wire transfer to an account of such holder within the United States, by wire transfer of immediately available funds to such account; and |
• | in all other cases, by check mailed to the address of such holder set forth in the register for the SATA Stock. |
• | senior to (i) “dividend junior stock” (as defined below under the caption “—Definitions,” and which includes the Strive Class A Common Stock and Strive Class B Common Stock) with respect to the payment of dividends; and (ii) “liquidation junior stock” (as defined below under the caption “—Definitions,” and which includes the Strive Class A Common Stock and Strive Class B Common Stock) with respect to the distribution of assets upon Strive’s liquidation, dissolution or winding up; |
• | equally with (i) dividend parity stock with respect to the payment of dividends; and (ii) liquidation parity stock with respect to the distribution of assets upon Strive’s liquidation, dissolution or winding up; |
• | junior to Strive’s existing and future indebtedness; and |
• | structurally junior to all existing and future indebtedness and other liabilities, including trade payables, and (to the extent Strive is not a holder thereof) capital stock of Strive’s subsidiaries. |
• | dividends and other distributions on junior stock that are payable solely in shares of junior stock, together with cash in lieu of any fractional share; |
• | the purchase of any junior stock or dividend parity stock solely with the proceeds of a substantially simultaneous sale of other junior stock; |
• | purchases, redemptions or other acquisitions of junior stock in connection with the administration of any benefit or other incentive plan of Strive (including any employment contract) in the ordinary course of business, including (x) the forfeiture of unvested shares of restricted stock, or any withholdings (including withholdings effected by a repurchase or similar transaction), or other surrender, of shares that would otherwise be deliverable upon exercise, delivery or vesting of equity awards under any such plan or contract, in each case whether for payment of applicable taxes or the exercise price, or otherwise; (y) cash paid in connection therewith in lieu of issuing any fractional share; and (z) purchases of junior stock pursuant to a publicly announced repurchase plan to offset the dilution resulting from issuances pursuant to any such plan or contract; provided, however, that repurchases pursuant to this clause (z) will be permitted pursuant to the exception described in this bullet point only to the extent that the number of shares of junior stock so repurchased does not exceed the related “number of incremental diluted shares” (as defined below under the caption “—Definitions”); |
• | purchases, or other payments in lieu of the issuance, of any fractional share of junior stock in connection with the conversion, exercise or exchange of such junior stock or of any securities convertible into, or exercisable or exchangeable for, junior stock; |
• | purchases, or other payments in lieu of the issuance, of any fractional share of dividend parity stock in connection with the conversion, exercise or exchange of such dividend parity stock or of any securities convertible into, or exercisable or exchangeable for, dividend parity stock; |
• | (x) dividends and other distributions of junior stock, or rights to acquire junior stock, pursuant to a stockholder rights plan; and (y) the redemption or repurchase of such rights pursuant to such stockholder rights plan; |
• | purchases of junior stock or dividend parity stock pursuant to a binding contract (including a stock repurchase plan) to make such purchases, if such contract was in effect on the immediately preceding regular dividend payment date and such purchases, if effected immediately before such regular dividend payment date, would not have been prohibited by the provision described in the first sentence under this “—Limitation on Certain Payments” section; |
• | the settlement of any convertible note hedge transactions, capped call transactions or similar transactions entered into in connection with the issuance, by Strive or any of its subsidiaries, of any debt securities that are convertible into, or exchangeable for, Strive Common Stock (or into or for any combination of cash and Strive Common Stock based on the value of Strive Common Stock), provided such transactions are on customary terms and were entered into either (x) before November 10, 2025 or (y) in compliance with the provision described in the first sentence under this “—Limitation on Certain Payments” section; |
• | the acquisition, by Strive or any of its subsidiaries, of record ownership of any junior stock or dividend parity stock solely on behalf of persons (other than Strive or any of its subsidiaries) that are the beneficial owners thereof, including as trustee or custodian (or as a result of Strive’s acquisition of another person that was, immediately before such acquisition, the record or beneficial owner of such junior stock or dividend parity stock, as applicable, provided such record or beneficial ownership was not obtained in anticipation of such acquisition); |
• | the exchange, conversion or reclassification of dividend parity stock solely for or into junior stock or other dividend parity stock, together with the payment, in connection therewith, of cash in lieu of any fractional share; and |
• | the exchange, conversion or reclassification of junior stock solely for or into other junior stock, together with the payment, in connection therewith, of cash in lieu of any fractional share. |
• | the “liquidation preference” (as defined below under the caption “—Definitions”) per share of SATA Stock as of the business day immediately before the date of such payment; plus |
• | all accumulated and unpaid regular dividends (plus compounded dividends thereon), if any, on such share to, and including, the date of such payment. |
• | a class or series of voting parity stock with similar voting rights regarding the election of directors upon a failure to pay dividends is outstanding; |
• | such voting rights become exercisable at a time when a preferred stock director holds office with respect to the SATA Stock; and |
• | a special meeting of Strive stockholders is called for the purpose of electing a director pursuant to such voting rights, |
(1) | any amendment, modification or repeal of any provision of Strive’s articles of incorporation or the certificate of designation that materially adversely affects the special rights, preferences or voting powers of the SATA Stock (other than an amendment, modification or repeal permitted by the provisions described below under the caption “—Certain Amendments Permitted Without Consent”); and |
(2) | Strive’s consolidation or combination with, or merger with or into, another person, or any binding or statutory share exchange or reclassification involving the SATA Stock, in each case unless: |
(a) | the SATA Stock either (i) remains outstanding after such consolidation, combination, merger, share exchange or reclassification; or (ii) is converted or reclassified into, or is exchanged for, or represents solely the right to receive, preference securities of the continuing, resulting or surviving person of such consolidation, combination, merger, share exchange or reclassification, or the parent thereof; |
(b) | the SATA Stock that remains outstanding or such preference securities, as applicable, have rights, preferences and voting powers that, taken as a whole, are not materially less favorable (as determined by Strive’s board of directors in good faith) to the holders thereof than the rights, preferences and voting powers, taken as a whole, of the SATA Stock immediately before the consummation of such consolidation, combination, merger, share exchange or reclassification; and |
(c) | the issuer of the SATA Stock that remains outstanding or such preference securities, as applicable, is a corporation duly organized and existing under the laws of the United States of America, any State thereof or the District of Columbia that, if not Strive, will succeed to Strive under the certificate of designation and the SATA Stock. |
(3) | the creation or issuance, or increase in the authorized or issued number, of any dividend senior stock or liquidation senior stock. |
• | any increase in the number of the authorized but unissued shares of Strive’s undesignated preferred stock; |
• | any increase in the number of authorized or issued shares of SATA Stock; and |
• | the creation and issuance, or increase in the authorized or issued number, of any class or series of stock (including, for the avoidance of doubt, dividend junior stock, liquidation junior stock, dividend parity stock or liquidation parity stock), provided that such class or series of stock is not dividend senior stock or liquidation senior stock. |
• | cure any ambiguity or correct any omission, defect, inaccuracy, error or inconsistency in the certificate of designation or the certificates representing the SATA Stock, including the filing of a certificate of amendment to certificate of designation or a certificate of correction pursuant to NRS 78.0295 or an amendment to the certificate of designation pursuant to NRS 78.1955, in connection therewith; |
• | conform the provisions of the certificate of designation or the certificates representing the SATA Stock to the “Description of Perpetual Preferred Stock” section of the preliminary prospectus supplement dated November 3, 2025, as supplemented by the related pricing term sheet dated November 5, 2025; |
• | provide for or confirm the issuance of additional SATA Stock pursuant to the certificate of designation; |
• | provide for any transfer restrictions that apply to any shares of SATA Stock (other than the shares issued in the initial offering of SATA Stock and any shares of SATA Stock issued in exchange therefor or in substitution thereof) that, at the time of their original issuance, constitute “restricted securities” within the meaning of Rule 144 under the Securities Act or that are originally issued in reliance upon Regulation S under the Securities Act; or |
• | make any other change to Strive’s articles of incorporation, the certificate of designation or the certificates representing the SATA Stock that does not, individually or in the aggregate with all other such changes, adversely affect the rights of any preferred stockholder (other than preferred stockholders that have consented to such change), as such, in any material respect (as determined by Strive’s board of directors in good faith). |
(i) | either (a) a “person” or “group” (within the meaning of Section 13(d)(3) of the Exchange Act) (other than (w) Strive; (x) Strive’s “wholly owned subsidiaries” (as defined below); (y) any employee benefit plans of Strive or its wholly owned subsidiaries; or (z) any “permitted party” (as defined below)), files any report with the SEC indicating that such person or group has become the direct or indirect “beneficial owner” (as defined below) of shares of Strive’s common equity representing more than 50% of the voting power of all of Strive’s common equity; or (b) a “person” or “group” (within the meaning of Section 13(d)(3) of the Exchange Act) (other than (w) Strive; (x) its “wholly owned subsidiaries” (as defined below); or (y) any employee benefit plans of Strive or its wholly owned subsidiaries), files any report with the SEC indicating that such person or group has become the direct or indirect “beneficial owner” (as defined below) of shares of Strive’s class A common stock representing more than 50% of the voting power of all of Strive’s class A common stock, provided that, solely for purposes of this clause (b), none of the following will constitute beneficial ownership of Strive’s class A common stock: (x) beneficial ownership of Strive’s class B common stock; and (y) beneficial ownership by any permitted party of any of Strive’s class A common stock issued upon conversion of Strive’s class B common stock; or |
(ii) | the consummation of: (1) any sale, lease or other transfer, in one transaction or a series of transactions, of all or substantially all of the assets of Strive and its subsidiaries, taken as a whole, to any person, other than solely to one or more of Strive’s wholly owned subsidiaries; or (2) any transaction or series of related transactions in connection with which (whether by means of merger, consolidation, share exchange, combination, reclassification, recapitalization, acquisition, liquidation or otherwise) all of Strive’s class A common stock is exchanged for, converted into, acquired for, or constitutes solely the right to receive, other securities, cash or other property; provided, however, that any merger, consolidation, share exchange or combination of Strive pursuant to which the persons that directly or indirectly “beneficially owned” (as defined below) all classes of Strive’s common equity immediately before such transaction directly or indirectly “beneficially own,” immediately after such transaction, more than 50% of all classes of common |
• | any amendment to, clarification of, or change, including any announced prospective change, in the laws or treaties of the United States or any of its political subdivisions or taxing authorities, or any regulations under those laws or treaties; |
• | an administrative action, which means any judicial decision or any official administrative pronouncement, ruling, regulatory procedure, notice or announcement, including any notice or announcement of intent to issue or adopt any administrative pronouncement, ruling, regulatory procedure or regulation; |
• | any amendment to, clarification of, or change in the official position or the interpretation of any administrative action or judicial decision or any interpretation or pronouncement that provides for a position with respect to an administrative action or judicial decision that differs from the previously generally accepted position, in each case by any legislative body, court, governmental authority or regulatory body, regardless of the time or manner in which that amendment, clarification or change is introduced or made known; or |
• | a threatened challenge asserted in writing in connection with a tax audit of Strive or any of its subsidiaries, or a publicly known threatened challenge asserted in writing against any other taxpayer that has raised capital through the issuance of securities that are substantially similar to the SATA Stock, |
• | upon deposit of a global certificate with DTC’s custodian, DTC will credit the shares of SATA Stock represented by such global certificate to the accounts of the DTC participants designated by the underwriters for the applicable offering; and |
• | ownership of beneficial interests in a global certificate will be shown on, and transfers of such interests will be effected only through, records maintained by DTC (with respect to interests of DTC participants) and the records of DTC participants (with respect to other owners of beneficial interests in the global certificate). |
• | a limited purpose trust company organized under the laws of the State of New York; |
• | a “banking organization” within the meaning of the New York State Banking Law; |
• | a member of the Federal Reserve System; |
• | a “clearing corporation” within the meaning of the Uniform Commercial Code; and |
• | a “clearing agency” registered under Section 17A of the Exchange Act. |
• | will not be entitled to have SATA Stock represented by the global certificate registered in their names; |
• | will not receive or be entitled to receive physical, certificated SATA Stock registered in their respective names (“physical certificates”); and |
• | will not be considered the owners or holders of the SATA Stock under the certificate of designation for any purpose. |
• | DTC notifies Strive or the transfer agent that it is unwilling or unable to continue as depositary for such global certificate or DTC ceases to be a “clearing agency” registered under Section 17A of the Exchange Act and, in each case, Strive fails to appoint a successor depositary within 90 days of such notice or cessation; or Strive, in its sole discretion, permit the exchange of any beneficial interest in such global certificate for one or more physical certificates at the request of the owner of such beneficial interest. |
Provision | Semler Scientific | Strive | ||||
ELECTIONS; VOTING; PROCEDURAL MATTERS | ||||||
Authorized Capital Stock | The authorized capital stock of Semler Scientific consists of 50,000,000 shares of common stock, $0.001 par value per share. | The authorized capital stock of Strive is 486,000,000,000 shares, consisting of (i) 444,000,000,000 shares of Class A Common Stock, 21,000,000,000 shares of Class B Common Stock and 21,000,000,000 shares of “blank check” preferred stock, all par value $0.001 per share. | ||||
Number of Directors | The Semler Scientific Bylaws provide that the authorized number of directors of Semler Scientific shall be fixed solely and exclusively by resolution duly adopted from time to time by the board of directors. The Semler Scientific Charter provides that directors shall be divided into three (3) classes: Class I, Class II and Class III. | The Strive Bylaws provide that, subject to the terms of any series of preferred stock entitled to separately elect directors, (i) the board of directors shall consist of a minimum of five (5) and a maximum of eleven (11) directors as determined by the board of directors within that range and (ii) except as otherwise provided in the articles of incorporation, each director shall be divided into three (3) classes: Class I, Class II and Class III. Each class shall consist of, as nearly as possible, of one-third (1/3rd) of the total number of directors. On the effective date of the Charter Amendment, the Strive Bylaws will provide that the board of directors shall consist of a minimum of five (5) directors, with no maximum, and the board of directors of Strive shall determine the number of directors. | ||||
Stockholder Nominations and Proposals | The Semler Scientific Bylaws require advance notice of stockholder nominations of persons for election to the board of directors and of business to be brought by stockholders before any meeting of the stockholders. For nominations or other business to be | The Strive Bylaws require advance notice of stockholder nominations of persons for election to the board of directors and of business to be brought by stockholders before any meeting of the stockholders. Except as otherwise provided in the articles of incorporation, for nominations or other business to be properly brought before | ||||
Provision | Semler Scientific | Strive | ||||
properly brought before an annual meeting by a stockholder, the stockholder must deliver notice to the secretary at the principal office of Semler Scientific not later than the close of business on the ninetieth (90th) day nor earlier than the close of business on the one hundred twentieth (120th) day prior to the first anniversary of the preceding year’s annual meeting. However, if the date of the annual meeting is more than thirty (30) days prior to or more than thirty (30) days after the anniversary of the preceding year’s annual meeting, notice by the stockholder to be timely must be so received no earlier than the close of business on the one hundred twentieth (120th) day prior to the annual meeting and not later than the close of business on the later of the ninetieth (90th) day prior to such annual meeting or the tenth (10th) business day following the day on which public announcement of the date of such meeting is first made by Semler Scientific. | an annual meeting by a stockholder, a stockholder must be a record holder at the time of notice, be entitled to vote at the meeting and comply with the specific notice requirements as to the contents of the notice set forth in the bylaws. Notice must be delivered in writing to the secretary at the principal executive offices of Strive not less than ninety (90) days nor more than one hundred twenty (120)) days prior to the first anniversary of the preceding year’s annual meeting of stockholders. However, if the date of the annual meeting is advanced more than sixty (60) days before or delayed more than thirty (30) days after the anniversary of the prior year’s meeting, the stockholder’s notice must be delivered no earlier than the one hundred twenty (120) days prior to such meeting and no later than the later of ninety (90) days prior to the meeting or the tenth (10th) day following the day on which public announcement of the meeting date is first made. The public announcement of an adjournment or postponement of an annual meeting does not commence a new time period or extend any time period for the delivery of the stockholder’s notice. | |||||
Classified Board of Directors | The board of directors is classified in three (3) classes as described above. The Semler Scientific Charter provides that directors shall be elected at annual meetings of stockholders on a staggered three-class basis, except in the case of vacancies, and each director elected shall hold office until a successor has been elected and qualified. | The board of directors of Strive is classified in three (3) classes as described above. The Strive Bylaws provide that directors shall be elected at the annual meeting of stockholders on a staggered three-class basis, except in the case of vacancies, and each director elected shall hold office until a successor has been elected and qualified, or until his or her earlier death, resignation or removal. | ||||
Removal of Directors | The Semler Scientific Bylaws provide that directors may only be removed from office in accordance with the Semler Scientific Charter. The Semler Scientific Charter provides that no director may be removed from office by the stockholders except for cause or with the affirmative vote of the holders of a majority of the voting power of the shares then entitled to vote generally at an election of directors. | The Strive Bylaws provide that directors may only be removed from office in accordance with the articles of incorporation. The Strive Articles of Incorporation provide that no director may be removed from office by the stockholders except for cause and with the affirmative vote of the holders of not less than two-thirds (2/3rds) of the voting power of the shares then entitled to vote generally in the election of directors, voting together as a single class. | ||||
Vacancies | The Semler Scientific Charter provides that any vacancy occurring on the board of directors by death, resignation, | The Strive Bylaws provide that, for so long as the Class A Common Stock held by the stockholders that are party to the Stockholders Agreement | ||||
Provision | Semler Scientific | Strive | ||||
disqualification, removal or other causes and any newly created directorships resulting from any increase in the number of directors shall be filled by an affirmative vote of a majority of the remaining directors then in office, even if less than a quorum, unless the board of directors determines by resolution that such vacancy or newly created directorship shall be filled by the stockholders. A director elected to fill a vacancy shall hold office for the remainder of the full term of his or her predecessor in office or until such director’s successor is elected and qualified. | represents at least twenty-five percent (25%) of Strive’s total voting power, any vacancy occurring on the board of directors by death, resignation, removal or otherwise, or any directorship to be filled by reason of an increase in the amount of directors, may be filled by the affirmative vote of the holders of a majority of the shares then entitled to vote generally in the election of directors, voting together as a single class. From and after the date when the Class A Common Stock held by the stockholders that are party to the Stockholders Agreement no longer represents at least twenty-five percent (25%) of Strive’s total voting power, vacancies on the board of directors resulting from death, resignation, removal or otherwise, and newly created directorships resulting from any increase in the number of directors, shall be filled solely by a majority then in office, although less than a quorum, or by the sole remaining director. Subject to the terms of any series of preferred stock entitled to separately elect directors and the provisions of the Strive Articles of Incorporation, whenever the holders of any class or classes of stock or series thereof are entitled to elect one or more directors, vacancies and newly created directorships of such class or classes or series may be filled by a majority of directors elected by such class or classes or series thereof then in office, or by a sole remaining director so elected. Each director so elected shall hold office for a term that shall coincide with the term of the class to which such director shall have been elected. If there are no directors in office, an election may be held in accordance with the NRS. | |||||
Notice of Stockholder’s Meetings | The Semler Scientific Bylaws provide that written or electronic notice stating the place, if any, date and hour of any meeting of the stockholders and, in case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten (10) nor more than sixty (60) days before the date of the meeting, the record date for determining stockholders entitled to vote at the meeting, if such record date is different from the record date for determining stockholders entitled to notice of the meeting, and the means of remote communication, if any, by which stockholders and proxyholders may be deemed to be present in person and vote at any such meeting to each stockholder entitled to vote at the meeting. When a | The Strive Bylaws provide that written notice stating the physical location, if any, date and hour of any meeting of stockholders, the means of remote communication, if any, by which stockholders and proxy holders may be deemed present and vote, the record date for determining stockholders entitled to notice of, and to vote at, such meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be given not less than ten (10) nor more than sixty (60) days before the date of the meeting, to each stockholder of record entitled to notice of such meeting. Unless otherwise provided in the bylaws, when a meeting is adjourned, no notice need be given if the time, location, if any, and remote communication means, if any, are announced at the meeting at which the adjournment is taken. If the adjournment is for more than sixty (60) days, or a | ||||
Provision | Semler Scientific | Strive | ||||
meeting is adjourned, no notice need be given if the time and place, if any, thereof and remote communication means, if any, are announced at the meeting at which the adjournment is taken. If the adjournment is for more than thirty (30) days or a new record date is set, notice shall be given. | new record date is set, notice shall be given. | |||||
Quorum | The Semler Scientific Bylaws provide that at all meetings of the stockholders, the presence in person, by remote communication, if applicable, or by proxy duly authorized, of the holders of a majority of the voting power of the outstanding shares of stock entitled to vote at the meeting shall constitute a quorum for the transaction of business, except as otherwise provided by statute, the Semler Scientific Charter or elsewhere in the Semler Scientific Bylaws. In the absence of a quorum, any meeting of stockholders may be adjourned, from time to time, by the chairperson of the meeting or the vote of the holders of a majority of the voting power of the shares represented thereat and entitled to vote thereon, but no other business shall be transacted at such meeting. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified. | The Strive Bylaws provide that all meetings of the stockholders, the presence in person or by proxy (regardless of whether the proxy has authority to vote on any matter) of the holders of a majority of the voting power of all outstanding capital stock entitled to vote shall constitute a quorum for the transaction of business, except as otherwise provided by the NRS, the articles of incorporation or elsewhere in the bylaws. However, if such quorum shall not be present at any meeting of the stockholders, either the chair of the meeting or the holders of a majority in voting power of the shares present in person or represented by proxy shall have the power to adjourn the meeting, without notice other than announcement at the meeting, until a quorum shall be present. At such adjourned meeting at which a quorum shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. | ||||
Voting | The Semler Scientific Bylaws provide that when a quorum is present at any meeting of Semler Scientific Stockholders, the vote of the holders of a majority of the shares having voting power present in person, by remote communication, if applicable, or represented by proxy duly authorized at such meeting and voting affirmatively or negatively (excluding abstentions and broker non-votes) shall decide any questions brought before such meeting. Voting for directors shall be by plurality vote at the annual meeting of the stockholders, except as otherwise provided by statute, the Semler Scientific Charter, or another provision of the Semler Scientific | Each share of Strive Class A Common Stock is entitled to one vote per share, and each share of Strive Class B Common Stock is entitled to ten votes per share. When a quorum is present at any meeting of the stockholders, unless otherwise provided in the Strive Articles of Incorporation or the Strive Bylaws and subject to the NRS, in all matters other than the election of directors, the affirmative vote of a majority in voting power of shares of capital stock present in person or represented by proxy (regardless of whether the proxy has authority to vote on any matter) and entitled to vote thereon shall be the act of the stockholders. Voting for directors shall be by a plurality of the voting power of shares of capital stock present in person or represented by proxy at the meeting and entitled to vote on the election of directors. A proxy may | ||||
Provision | Semler Scientific | Strive | ||||
Bylaws. The stockholders present at a duly organized meeting may continue to transact business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum. | be appointed in writing or by any means of electronic communication permitted by law and shall be valid for six (6) months unless otherwise stated, subject to the NRS. Abstentions shall not count as votes cast for or against any proposal or nominee. | |||||
Written Consents | The Semler Scientific Bylaws provide that, unless otherwise restricted by the Semler Scientific Charter or another provision of the Semler Scientific Bylaws, any action required or permitted to be taken at any meeting of the board of directors or of any committee may be taken without a meeting, if all members of the board of directors or committee, as the case may be, consent in writing or by electronic transmission. After an action is taken, such consent or consents shall be filed with the minutes of proceedings of the board of directors or committee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form. | The Strive Bylaws provide that any action required or permitted to be taken at a meeting of the board of directors or any committee thereof may be taken without a meeting if all members of the board or committee (other than the director(s) abstaining in writing pursuant to and in accordance with NRS 78.315(2)) consent in writing or by electronic transmission. Such written consents or electronic transmissions shall be filed with the minutes of the board or committee proceedings, either in paper form if the minutes are maintained in paper form or in electronic form if maintained electronically. | ||||
Cumulative Voting | Neither the Semler Scientific Charter nor the Semler Scientific Bylaws contain a provision granting cumulative voting rights to stockholders. | The Strive Articles of Incorporation and Strive Bylaws provide that there shall be no cumulative voting in the election of directors. | ||||
Conversion Rights | N/A | The Strive Articles of Incorporation provide that each share of Strive Class B Common Stock shall be convertible, at the holder’ option, at any time upon written notice to Strive into one (1) fully paid and nonassessable share of Strive Class A Common Stock. Prior to any voluntary conversion, the stockholder must surrender the certificate(s), if any, representing such shares at Strive’s principal office or the office of any transfer agent, coupled with a written notice of the election to convert and the name(s) in which the certificate(s), if any, for the Strive Class A Common Stock are to be issued, or in which the shares are to be registered if uncertified. Conversion shall be deemed effective immediately prior to the close of business on the date of such surrender and notice, and the person entitled to receive the Strive Class A Common Stock shall be treated as the record holder as of such date. Each share of Strive Class B Common Stock shall | ||||
Provision | Semler Scientific | Strive | ||||
automatically convert into one (1) fully paid and nonassessable share of Strive Class A Common Stock upon a Transfer, other than the Permitted Transfer, of such share. Additionally, all outstanding shares of Strive Class B Common Stock shall automatically convert into Strive Class A Common Stock upon the date and time or occurrence of an event, specified by the affirmative vote or written consent, if permitted, of the holders of a majority of the total voting power of the Strive Class B Common Stock. If Strive has reason to believe that a Transfer triggering automatic conversion has occurred but such transfer is not yet reflected in Strive’s stock ledger, Strive may request that the stockholder provide affidavits or other evidence sufficient to determine whether such Transfer has occurred. If the requested evidence is not provided within ten (10) days after Strive’s request, the relevant shares shall be automatically converted into shares of Strive Class A Common Stock as provided therein. Additionally, at the election of Vivek Ramaswamy in his sole discretion, all of the issued and outstanding shares of Class B Common Stock shall be converted by the Corporation into fully paid and nonassessable shares of Strive Class A Common Stock. Any converted Strive Class B Common Stock shall be retired and not reissued. | ||||||
Redemption Rights | N/A | The Strive Articles of Incorporation provide that Strive may redeem, suspend rights of or require the sale of shares of Strive Common Stock or preferred stock if a stockholder acquires additional shares of Strive Common Stock or preferred stock, or is otherwise attributed with ownership of such shares, that would cause such stockholder (together with their Affiliates) to be the beneficial owner of capital stock having more than twenty percent (20%) of the total voting power of the outstanding voting shares of all classes and series of the capital stock. In such case, Strive may (i) redeem a sufficient number of shares to eliminate the excess ownership at a price equal to (a) a mutually agreed amount or (b) if no other agreement is reached, seventy-five percent (75%) of fair market value if the holder is at fault or one hundred percent (100%) if the holder is not at fault, which is determined in good faith by the disinterested board members, (ii) suspend ownership rights the exercise of which causes or could cause such excess or (iii) require the sale of shares necessary to eliminate the excess, which | ||||
Provision | Semler Scientific | Strive | ||||
the holder must promptly effect. At least fifteen (15) but not more than thirty (30) days, or a shorter period as determined by the board of directors, before the redemption date, written notice shall be sent to each record holder of shares to be redeemed, specifying the number of shares, redemption date, redemption price, payment location and the procedure for surrendering certificates, if any. Upon the surrender, the redemption price shall be paid. The foregoing redemption rights will not apply to Vivek Ramaswamy or any of his affiliates or Permitted Transferees, and Strive shall have no authority to redeem, suspend or require the sale of any shares held by such persons. | ||||||
Protective Provisions | N/A | The Strive Articles of Incorporation provide that Strive shall not amend, alter, repeal or waive (i) Sections 3, 4 (other than 4(d)) or 9 of Article 4 of the Strive Articles of Incorporation, whether by merger, consolidation or otherwise, or adopt any provision inconsistent therewith, without first obtaining the affirmative vote or written consent, if permitted under the Strive Articles of Incorporation at such time, of the holders of a majority of the then outstanding shares of Strive Class B Common Stock, voting as a separate class or (ii) Section 4(d) of Article 4 of the Strive Articles of Incorporation without first obtaining the written consent of the Vivek Ramaswamy, in each case, in addition to any other vote required by law, the articles of incorporation or the bylaws. | ||||
LIQUIDATION; DIVIDENDS | ||||||
Liquidation preferences | N/A | The Strive Articles of Incorporation provide that, subject to the rights of any holders of preferred stock then outstanding, upon the dissolution, liquidation or winding up of Strive, whether voluntary or involuntary, the holders of Strive Class A Common Stock and Strive Class B Common Stock will be entitled to receive ratably all assets of Strive available for distribution to its stockholders. Any disparate or different treatment of shares of Strive Class A Common Stock and Strive Class B Common Stock with respect to such distributions must be approved in advance by the affirmative vote or written consent, if permitted, of the stockholders of a majority of the outstanding shares of Strive Class A Common Stock and Strive Class B Common Stock, each voting separately as a class (or, if any holders of preferred stock are entitled to vote together with the holders of Strive Common Stock, as a single | ||||
Provision | Semler Scientific | Strive | ||||
class with such preferred stockholders). Notwithstanding the foregoing, shares of one class may receive different or disproportionate distributions or payments in connection with a merger, consolidation or other transaction if the only difference in the per share distribution is that any securities distributed to the holders of Strive Class B Common Stock carry ten (10) times the voting power of the securities distributed to holders of Strive Class A Common Stock. | ||||||
Declaration and Payment of Dividends | The Semler Scientific Bylaws provide that, subject to the Semler Scientific Charter and applicable law, dividends may be declared by the board of directors and may be paid in cash, in property, or in shares of capital stock or other securities of Semler Scientific. The board of directors may fix, in advance, a record date for the purpose of determining the stockholders entitled to receive payment of any dividend that is not more than sixty (60) days prior to the payment date of such dividend. In the absence of any action by the board of directors, the record date for determining the stockholders entitled to receive payment of a dividend will be the close of business on the day on which the board of directors adopts the resolution declaring such dividend. | The Strive Bylaws provide that, subject to the NRS and the articles of incorporation, if any, the board of directors may declare and pay dividends and other distributions upon the shares of capital stock of Strive, which dividends may be paid either in cash, in property or in shares of Strive’s capital stock. The Strive Articles of Incorporation provide that the Strive Class A Common Stock and Strive Class B Common Stock shall be treated equally, identically and ratably on a per share basis with respect to any dividends or other distributions as may be declared and paid from time to time by the board of directors out of any assets legally available therefor; provided, that in the event a dividend is paid in the form of shares of Strive Class A Common Stock or Strive Class B Common Stock (or rights to acquire such shares), holders of Strive Class A Common Stock shall receive shares of Strive Class A Common Stock (or rights to acquire such shares, as the case may be) and holders of Strive Class B Common Stock shall receive shares of Strive Class B Common Stock, with holders of shares of Strive Class A Common Stock and Strive Class B Common Stock receiving, on a per share basis, an identical number of shares of Strive Class A Common Stock or Strive Class B Common Stock, as applicable. Notwithstanding the foregoing, the board of directors may pay or make a disparate dividend or other distribution per share of Strive Class A Common Stock or Strive Class B Common Stock if approved in advance by the affirmative vote (or written consent if action by written consent of stockholders is permitted at such time) of the holders of a majority of the outstanding shares of Strive Class A Common Stock and Strive Class B Common Stock, each voting separately as a class (or, if any holders of preferred stock are entitled to vote together with the holders of Strive Common Stock, as a single class with such holders of preferred stock). | ||||
Provision | Semler Scientific | Strive | ||||
Corporate Opportunity | The Semler Scientific Charter provides that Semler Scientific renounces any interest or expectancy in, or in being offered the opportunity in, any matter, transaction or interest that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of, any director of Semler Scientific who is not an employee or consultant of Semler Scientific or any of its subsidiaries, unless such matter, transaction or interest is presented to, or acquired, created or developed by, or otherwise comes into possession of, such covered person expressly and solely in such person’s capacity as a director of Semler Scientific. | No member of the board of directors who is not an employee of Strive (a “Non-Employee Director”) (including any Non-Employee Director who serves as an officer in both his or her director and officer capacities) or his or her affiliates shall, to the fullest extent permitted by law, have any duty to refrain from directly or indirectly (i) engaging in the same or similar business activities or lines of business in which Strive or any of its affiliates engages or proposes to engage or (ii) otherwise competing with Strive or any of its affiliates, and, to the fullest extent permitted by law, no such person shall be liable to Strive or its stockholders or to any affiliate of Strive for breach of any fiduciary duty solely by reason of the fact that such person engages in any such activities or did not communicate or offer such activities to Strive. However, Strive does not renounce its interest in any corporate opportunity offered to any Non-Employee Director if such opportunity is expressly offered to such person solely in his or her capacity as a director or officer of Strive. | ||||
Combination with Interested Stockholders | Semler Scientific is subject to Section 203 of the DGCL, which generally prohibits a publicly held Delaware corporation from engaging in various “business combination” transactions with any “interested stockholder” for a period of three (3) years after the date of the transaction in which the person became an “interested stockholder,” unless the transaction is approved by the corporation’s board of directors before that person becomes an “interested stockholder” or another exception is available. A “business combination” includes mergers, asset sales and other transactions resulting in a financial benefit to a stockholder. An “interested stockholder” is a person who, together with its affiliates and associates, owns (or within three (3) years, did own) 15% or more of a corporation’s voting stock. Semler Scientific could elect not to be subject to Section 203 of the DGCL in the future by amending the Semler Scientific Charter. | Until the date on which the Strive Common Stock held by the stockholders that are party to the Stockholders Agreement represents less than 25% of the total voting power of Strive, Strive elects not to be governed by Sections 78.411 through 78.444, inclusive, of the NRS. From and after such date, Strive shall immediately and automatically, without further action, become governed by NRS 78.411 through 78.444, inclusive. | ||||
Provision | Semler Scientific | Strive | ||||
INDEMNIFICATION OF OFFICERS AND DIRECTORS AND ADVANCEMENT OF EXPENSES; LIMITATION ON PERSONAL LIABILITY | ||||||
Indemnification | Section 145 of the DGCL provides that a corporation may indemnify any person, including an officer or director, who was or is, or is threatened to be made, a party to any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative (other than an action by or in the right of such corporation), by reason of the fact that such person is or was a director, officer, employee, or agent of such corporation, or is or was serving at the request of such corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise. Section 145 of the DGCL further authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation or enterprise, against any liability asserted against such person and incurred by such person in any such capacity, or arising out of his or her status as such, whether or not the corporation would otherwise have the power to indemnify him under Section 145. Section 102(b)(7) of the DGCL permits a corporation to provide in its certificate of incorporation that a director or certain officers of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer, except for liability for (i) any breach of such person’s duty of loyalty to the corporation or its stockholders, (ii) acts or omissions not in good faith or that involve intentional misconduct or a knowing violation of law, (iii) in the case of a director, payments of unlawful dividends or | The Strive Articles of Incorporation provide that Strive shall indemnify and hold harmless any person who was or is a party or is threatened to be made a party to or otherwise involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such person is or was a director, officer or employee of Strive or, while a director, officer or employee of Strive, served at the request of Strive as a director, officer, manager or managing member, employee, agent or trustee of another entity or enterprise, against all liability and loss suffered and expenses reasonably incurred, including attorneys’ fees, judgments, fines, excise taxes and amounts paid in settlement, to the fullest extent permitted by the NRS. Notwithstanding the foregoing, except as otherwise provided in the Strive Articles of Incorporation, in the case of proceedings brought to enforce rights to indemnification, advancement of expenses or compulsory counterclaims brought by the indemnitee, Strive shall not be required to indemnify any person in connection with a proceeding initiated by such person unless the board of directors authorized the initiation of such proceeding. | ||||
Provision | Semler Scientific | Strive | ||||
unlawful stock repurchases or redemptions, (iv) for any transaction from which the director derived an improper personal benefit, or (v) in the case of an officer, any action by or in the right of the corporation. The Semler Scientific Charter provides that Semler Scientific shall indemnify and hold harmless, to the fullest extent permitted by applicable law, any person who was or is made or is threatened to be made a party or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such person, or a person for whom such person is the legal representative, is or was a director or officer of Semler Scientific or, while a director or officer of Semler Scientific, is or was serving at the request of the Semler Scientific as a director, officer, employee or agent of another corporation or of a partnership, joint venture, limited liability company, trust, enterprise or nonprofit entity, including service with respect to employee benefit plans (collectively, “Indemnified Persons”), against all liability and loss suffered and expenses (including attorneys’ fees) reasonably incurred. Notwithstanding the foregoing, except in respect of any counterclaims of the Indemnified Person made in response to a proceeding not commenced by such Indemnified Person or as otherwise provided in the Semler Scientific Charter, Semler Scientific shall not be required to indemnify any person in connection with a proceeding initiated by such person unless the board of directors authorized the commencement of such proceeding. Insofar as indemnification for liabilities arising under the Securities Act may be permitted for directors, officers or persons controlling Semler Scientific pursuant to the foregoing provisions, Semler Scientific has been informed that in the opinion of the SEC such indemnification is against | ||||||
Provision | Semler Scientific | Strive | ||||
public policy as expressed in the Securities Act and is therefore unenforceable. | ||||||
Advancement of Expenses | Semler Scientific shall pay the expenses (including attorneys’ fees) incurred by an Indemnified Person in defending any proceeding in advance of its final disposition; provided, however, that, to the extent required by law, such payment of expenses in advance of the final disposition of the proceeding shall be made only upon receipt of an undertaking by the Indemnified Person to repay all amounts advanced if it should be ultimately determined that the Indemnified Person is not entitled to be indemnified under the Semler Scientific Charter or otherwise. | An indemnitee shall also have the right, to the fullest extent not prohibited by applicable law, to be paid by Strive the expenses (including attorneys’ fees) incurred by such person in appearing at, participating in or defending any proceeding in advance of its final disposition or in connection with a proceeding brought to establish or enforce a right to indemnification or advancement of expenses under the applicable provisions of the Strive Articles of Incorporation, subject in certain instance to the receipt of an undertaking by such person to repay all amounts advanced if it should be ultimately determined that such person is not entitled to be indemnified or entitled to advancement of expenses. | ||||
Limitation of Liability | The Semler Scientific Charter provides that, to the fullest extent permitted by law, directors and officers of Semler Scientific shall not be personally liable to Semler Scientific or its stockholders for monetary damages for breach of fiduciary duty as directors or officers. If the DGCL or any other law of the State of Delaware is amended to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of a director or officer of Semler Scientific shall be eliminated or limited to the fullest extent permitted by the DGCL or such other law. Any repeal or modification of this provision of the Certificate of Incorporation by the stockholders of Semler Scientific shall not adversely affect any right or protection of a director or officer of Semler Scientific existing at the time of, or increase the liability of any director or officer of Semler Scientific with respect to any acts or omissions occurring prior to such repeal or modification. | The liability of directors and officers is eliminated or limited to the fullest extent permitted by the NRS. If and to the extent Vivek Ramaswamy or any of his affiliates or permitted transferees is deemed to have fiduciary duties to Strive or any of its stockholders, such duties are eliminated or limited to the fullest extent permitted by the NRS or other applicable law. | ||||
AMENDMENTS TO CERTIFICATE / ARTICLES OF INCORPORATION OR BYLAWS | ||||||
Amendment of Certificate / Articles of | The Semler Scientific Charter may be amended pursuant to Section 242 of the DGCL, which provides that a | An amendment to the Strive Articles of Incorporation requires that the board of directors first approve the amendment and submit the | ||||
Provision | Semler Scientific | Strive | ||||
Incorporation | corporation’s certificate of incorporation may be amended upon a resolution of the board of directors setting forth the amendment proposed and, subject to certain exceptions, (a) the holders of a majority of the outstanding shares of each class entitled to vote and (b) a majority of the outstanding shares of each class entitled to a class vote, if the amendment would increase or decrease the aggregate number of authorized shares of such class, increase or decrease the par value of the shares of such class or alter or change the powers, preferences or special rights of the shares of such class so as to affect them adversely, provided that if the amendment would alter or change the powers, preferences or special rights of one or more series of a class so as to affect them adversely, but shall not so affect the entire class, then only the shares of such series so affected shall be considered a separate class for purposes of the vote. | proposed amendment to the stockholders for approval. Strive Stockholders holding at least a majority of the voting power shares (or such greater proportion of the voting power as may be required in the case of the vote by classes or series) must also approve the amendment. However, once the Strive Common Stock held by the stockholders that are party to the Stockholders Agreement does not represent at least twenty-five percent (25%) of the total voting power, (i) the provisions of Articles 5 through 12 of the Strive Articles of Incorporation may not be amended or repealed and no new provision may be adopted to modify, override or circumvent Articles 5 through 12 of the Strive Articles of Incorporation unless the amendment is approved by the affirmative vote of the stockholders holding at least sixty-six and two-thirds percent (66 2/3%) of the total voting power of all outstanding voting securities generally entitled to vote in the election of directors, voting together as a single class. | ||||
Amendment of Bylaws | The board of directors is expressly authorized to make, repeal, alter, amend and rescind any or all of the provisions of the Semler Scientific Bylaws without the assent or vote of Semler Scientific Stockholders. The Semler Scientific Bylaws may also be adopted, amended or repealed by Semler Scientific Stockholders; provided, however, that, in addition to the affirmative vote of the holders of any class or series of Semler Scientific capital stock required by applicable law or by the Semler Scientific Charter, the affirmative vote of the holders of at least 66 2/3% of the voting power of all of the then-outstanding shares of the capital stock of Semler Scientific entitled to vote generally in the election of directors, voting together as a single class, shall be required in order for Semler Scientific Stockholders to adopt, amend or repeal any provision of the Semler Scientific Bylaws. | Unless a higher percentage is required by the articles of incorporation as to any matter that is the subject of the Strive Bylaws, the Strive Bylaws may be amended by (i) the board of directors or (ii) the affirmative vote of the holders of not less than (x) prior to the date on which the Strive Common Stock held by the stockholders that are party to the Stockholders Agreement represents less than 25% of the total voting power of Strive, a majority of the total voting power of all outstanding securities generally entitled to vote in the election of directors, voting together as a single class and (y) after such date, 66 2/3% of the total voting power of all outstanding securities of the Corporation generally entitled to vote in the election of directors, voting together as a single class. | ||||
• | an individual who is a citizen or resident of the United States; |
• | a corporation (or any other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; |
• | an estate, the income of which is subject to U.S. federal income tax regardless of its source; or |
• | a trust that (i) is subject to the primary supervision of a court within the United States and one or more U.S. persons (within the meaning of the Code) have the authority to control all substantial decisions of the trust, or (ii) has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person (within the meaning of the Code). |
• | U.S. Holders will not recognize gain or loss on the exchange of shares of Semler Scientific Common Stock solely for shares of Strive Class A Common Stock in the Merger; |
• | U.S. Holders who receive cash in lieu of fractional shares of Strive Class A Common Stock in the Merger generally will be treated as having received such fractional shares in the Merger and then as having received cash in redemption of such fractional shares. Gain or loss will be recognized based on the difference between the amount of cash received in lieu of the fractional share of Strive Class A Common Stock and the portion of the U.S. Holder’s adjusted tax basis in the shares of Semler Scientific Common Stock surrendered which is allocable to the fractional share of Strive Class A Common Stock, and adjusted as described above; |
• | The amount, character and timing of any such gain or loss recognized generally will be determined separately with respect to each block of stock owned by such U.S. Holder. For purposes of the foregoing, a block of stock is generally comprised of those shares of a particular class of stock of a company which were acquired at the same time and at the same price; |
• | The aggregate tax basis of the shares of Strive Class A Common Stock received by a U.S. Holder in the Merger generally will be the same as the aggregate tax basis of shares of Semler Scientific Common Stock surrendered in exchange therefor, decreased by the amount of cash received and increased by the amount of gain recognized by the U.S. Holder in the Merger; and |
• | The holding period of Strive Class A Common Stock received by a U.S. Holder in the Merger will include the holding period of the shares of Semler Scientific Common Stock surrendered by the U.S. Holder in the Merger. |
Page | |||
Unaudited Condensed Consolidated Financial Statements | |||
Audited Financial Statements | |||
Page | |||
Unaudited Consolidated Financial Statements | |||
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Revenues | $7,491 | $13,512 | $24,543 | $43,881 | ||||||||
Operating expenses: | ||||||||||||
Cost of revenues | 636 | 1,156 | 2,312 | 3,657 | ||||||||
Engineering and product development | 1,111 | 1,186 | 3,663 | 3,764 | ||||||||
Sales and marketing | 3,121 | 2,976 | 9,316 | 10,107 | ||||||||
General and administrative | 8,013 | 3,129 | 18,048 | 8,962 | ||||||||
DOJ settlement | — | — | 29,750 | — | ||||||||
Total operating expenses | 12,881 | 8,447 | 63,089 | 26,490 | ||||||||
(Loss) income from operations | (5,390) | 5,065 | (38,546) | 17,391 | ||||||||
Interest (expense) income, net | (1,575) | 168 | (3,526) | 1,699 | ||||||||
Impairment of investments | — | — | (1,135) | 128 | ||||||||
Change in fair value of intangible digital assets | 28,490 | 1,137 | 70,422 | (3,918) | ||||||||
Change in fair value of Bitcoin collateral | 1,471 | — | 1,471 | — | ||||||||
Gain on redemption of notes receivable | 803 | — | 803 | — | ||||||||
Other income | 4 | 5 | 7 | 8 | ||||||||
Other income (expense), net | 29,193 | 1,310 | 68,042 | (2,083) | ||||||||
Pre-tax income | 23,803 | 6,375 | 29,496 | 15,308 | ||||||||
Income tax provision | 6,901 | 766 | 10,364 | 3,615 | ||||||||
Net income | $16,902 | $5,609 | $19,132 | $11,693 | ||||||||
Net income per share, basic | $1.14 | $0.80 | $1.58 | $1.68 | ||||||||
Weighted average number of shares used in computing basic net income per share | 14,848,408 | 7,045,108 | 12,073,628 | 6,961,095 | ||||||||
Net income per share, diluted | $1.07 | $0.72 | $1.55 | $1.50 | ||||||||
Weighted average number of shares used in computing diluted net income per share | 16,545,198 | 7,771,088 | 13,706,067 | 7,783,350 | ||||||||
September 30, 2025 | December 31, 2024 | |||||
Unaudited | ||||||
Assets | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $10,176 | $8,819 | ||||
Restricted cash | 135 | 133 | ||||
Short-term notes receivable | — | 6,100 | ||||
Short-term deposits | 270 | — | ||||
Trade accounts receivable, net of allowance for credit losses of $90 and $199 respectively | 2,558 | 4,378 | ||||
Receivable for Bitcoin collateral | 35,928 | — | ||||
Inventory | 485 | 358 | ||||
Prepaid expenses and other current assets | 3,954 | 2,900 | ||||
Total current assets | 53,506 | 22,688 | ||||
Assets for lease, net | 1,339 | 1,423 | ||||
Property and equipment, net | 325 | 487 | ||||
Long-term investments | 512 | 512 | ||||
Long-term notes receivable | 1,150 | — | ||||
Intangible digital assets | 539,844 | 214,633 | ||||
Other non-current assets | 1 | 85 | ||||
Total assets | $596,677 | $239,828 | ||||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $200 | $140 | ||||
Accrued expenses | 6,365 | 5,173 | ||||
Deferred revenue | 411 | 774 | ||||
Short-term debt | 20,000 | — | ||||
Other short-term liabilities | 240 | 226 | ||||
Total current liabilities | 27,216 | 6,313 | ||||
Long-term liabilities: | ||||||
Deferred tax liability | 13,294 | 2,765 | ||||
Long-term notes payable, net | 96,418 | — | ||||
Total long-term liabilities | 109,712 | 2,765 | ||||
Commitments and contingencies (Note 18) | ||||||
Stockholders’ equity: | ||||||
Common stock, $0.001 par value; 50,000,000 shares authorized; 15,356,617 and 9,770,908 shares issued, and 15,142,195 and 9,556,486 shares outstanding (treasury shares of 214,422 and 214,422), respectively | 15 | 9 | ||||
Additional paid-in capital | 339,900 | 130,039 | ||||
Retained earnings | 119,834 | 100,702 | ||||
Total stockholders’ equity | 459,749 | 230,750 | ||||
Total liabilities and stockholders’ equity | $596,677 | $239,828 | ||||
For the Three Months Ended September 30, 2024 | ||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Total Stockholders’ Equity | ||||||||||||||
Shares Issued | Common Stock Amount | Shares | ||||||||||||||||
Balance at June 30, 2024 | 7,202,146 | $7 | (214,422) | $12,504 | 65,887 | $78,398 | ||||||||||||
Stock option exercises | 79,097 | — | — | 26 | — | 26 | ||||||||||||
Issuance of common stock | 86,734 | — | — | 2,536 | — | 2,536 | ||||||||||||
Stock issuance expenses | — | — | — | (588) | — | (588) | ||||||||||||
Taxes paid related to net share settlement of equity awards | (33,377) | — | — | (830) | — | (830) | ||||||||||||
Stock-based Compensation | — | — | — | 204 | — | 204 | ||||||||||||
Net income | — | — | — | — | 5,609 | 5,609 | ||||||||||||
Balance at September 30, 2024 | 7,334,600 | $7 | (214,422) | $13,852 | $71,496 | $85,355 | ||||||||||||
For the Nine Months Ended September 30, 2024 | ||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Total Stockholders’ Equity | ||||||||||||||
Shares Issued | Common Stock Amount | Shares | ||||||||||||||||
Balance at December 31, 2023 | 7,099,441 | $7 | (214,422) | $11,985 | $59,803 | $71,795 | ||||||||||||
Directors stock grants | 6,546 | — | — | 150 | — | 150 | ||||||||||||
Issuance of common stock | 86,734 | — | — | 2,536 | — | 2,536 | ||||||||||||
Stock issuance expenses | — | — | — | (588) | — | (588) | ||||||||||||
Taxes paid related to net share settlement of equity awards | (34,406) | — | — | (874) | — | (874) | ||||||||||||
Stock option exercises | 176,285 | — | — | 295 | — | 295 | ||||||||||||
Stock-based compensation | — | — | — | 348 | — | 348 | ||||||||||||
Net income | — | — | — | — | 11,693 | 11,693 | ||||||||||||
Balance at September 30, 2024 | 7,334,600 | $7 | (214,422) | $13,852 | $71,496 | $85,355 | ||||||||||||
For the Three Months Ended September 30, 2025 | ||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Total Stockholders’ Equity | ||||||||||||||
Shares Issued | Common Stock Amount | Shares | ||||||||||||||||
Balance at June 30, 2025 | 13,902,827 | $14 | (214,422) | $280,463 | $102,932 | $383,409 | ||||||||||||
Stock option exercises | 63,203 | — | — | 178 | — | 178 | ||||||||||||
Issuance of common stock | 1,390,587 | 1 | — | 58,042 | — | 58,043 | ||||||||||||
Stock issuance expenses | — | — | — | (799) | — | (799) | ||||||||||||
Stock-based compensation | — | — | — | 2,016 | — | 2,016 | ||||||||||||
Net income | — | — | — | — | 16,902 | 16,902 | ||||||||||||
Balance at September 30, 2025 | 15,356,617 | $15 | (214,422) | $339,900 | $119,834 | $459,749 | ||||||||||||
For the Nine Months Ended September 30, 2025 | ||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Total Stockholders’ Equity | ||||||||||||||
Shares Issued | Common Stock Amount | Shares | ||||||||||||||||
Balance at December 31, 2024 | 9,770,908 | $9 | (214,422) | $130,039 | $100,702 | $230,750 | ||||||||||||
Stock option exercises | 138,387 | 1 | — | 737 | — | 738 | ||||||||||||
Issuance of common stock | 5,447,322 | 5 | — | 214,959 | — | 214,964 | ||||||||||||
Stock issuance expenses | — | — | — | (3,488) | — | (3,488) | ||||||||||||
Capital call premium | — | — | — | (7,740) | — | (7,740) | ||||||||||||
Stock-based compensation | — | — | — | 5,393 | — | 5,393 | ||||||||||||
Net income | — | — | — | — | 19,132 | 19,132 | ||||||||||||
Balance at September 30, 2025 | 15,356,617 | $15 | (214,422) | $339,900 | $119,834 | $459,749 | ||||||||||||
For the nine months ended September 30, | ||||||
2025 | 2024 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income | $19,132 | $11,693 | ||||
Reconciliation of Net Income to Net Cash (Used in) Provided by Operating Activities: | ||||||
Depreciation | 317 | 480 | ||||
Amortization of debt issuance costs | 434 | — | ||||
Deferred tax expense (benefit) | 10,529 | (353) | ||||
Loss on disposal of assets for lease | 193 | 323 | ||||
Allowance for credit losses | (109) | (21) | ||||
Change in fair value of notes held for investment | — | (128) | ||||
Change in fair value of intangible digital assets | (70,422) | 3,918 | ||||
Change in fair value of receivable for Bitcoin collateral | (1,471) | — | ||||
Gain on redemption of notes receivable | (803) | — | ||||
Stock-based compensation | 5,393 | 498 | ||||
Impairment of investments | 1,135 | — | ||||
Changes in Operating Assets and Liabilities: | ||||||
Trade accounts receivable | 1,929 | (512) | ||||
Inventory | (127) | 65 | ||||
Prepaid expenses and other current assets | (1,324) | 388 | ||||
Other non-current assets | 84 | 64 | ||||
Accounts payable | 60 | 143 | ||||
Accrued expenses | 1,141 | 756 | ||||
Other current and non-current liabilities | (70) | (16) | ||||
Deferred revenue | (363) | (315) | ||||
Net Cash (Used in) Provided by Operating Activities | (34,342) | 16,983 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Additions to property and equipment | (11) | (48) | ||||
Purchase of notes held for investment | (1,150) | (500) | ||||
Purchase of digital assets | (289,246) | (68,400) | ||||
Proceeds from maturities of notes receivable | 5,903 | — | ||||
Purchase of assets for lease | (253) | (35) | ||||
Net Cash Used in Investing Activities | (284,757) | (68,983) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Taxes paid related to net settlement of equity awards | — | (874) | ||||
Proceeds from issuance of long-term debt | 100,000 | — | ||||
Debt issuance costs | (4,016) | — | ||||
Proceeds from short-term debt | 20,000 | — | ||||
Capital call premium | (7,740) | — | ||||
Proceeds from issuance of common stock | 214,964 | 2,536 | ||||
Stock issuance expenses | (3,488) | (588) | ||||
Proceeds from exercise of stock options | 738 | 295 | ||||
Net Cash Provided by Financing Activities | 320,458 | 1,369 | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,359 | (50,631) | ||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 8,952 | 57,332 | ||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $10,311 | $6,701 | ||||
September 30, 2025 | December 31, 2024 | |||||
Assets for lease | $1,626 | $2,522 | ||||
Less: accumulated depreciation | (287) | (1,099) | ||||
Assets for lease, net | $1,339 | $1,423 | ||||
September 30, 2025 | December 31, 2024 | |||||
Property and equipment, gross | $1,418 | $1,467 | ||||
Less: accumulated depreciation | (1,093) | (980) | ||||
Property and equipment, net | $325 | $487 | ||||
September 30, 2025 | December 31, 2024 | |||||
Investments in SYNAPS Dx | $512 | $512 | ||||
Total long-term investments | $512 | $512 | ||||
Fair Value Hierarchy | |||
Level 1 | |||
As of September 30, 2025 | |||
Receivable for Bitcoin collateral | 35,928 | ||
Bitcoin investments | 539,844 | ||
(Included in intangible digital assets) | |||
Total Assets | $575,772 | ||
Level 1 | |||
As of December 31, 2024 | |||
U.S. Government money market fund accounts | $3,638 | ||
(Included in cash and cash equivalents) | |||
Bitcoin Investments | 214,633 | ||
(Included in intangible digital assets) | |||
Total Assets | $218,271 | ||
September 30, 2025 | December 31, 2024 | |||||
Senior secured promissory notes | $— | $1,000 | ||||
Promissory note | 1,150 | — | ||||
Secured convertible promissory notes | — | 5,100 | ||||
Total notes receivable | $1,150 | $6,100 | ||||
For the Three Months Ended September 30, 2025 | For the Nine Months Ended September 30, 2025 | |||||
Intangible digital assets held: | ||||||
Beginning balance at fair value | $496,865 | $214,633 | ||||
Additions | 48,946 | 289,246 | ||||
Bitcoin transferred to collateral account | (34,457) | (34,457) | ||||
Change in fair value of intangible digital assets | 28,490 | 70,422 | ||||
Ending Balance at fair value | $539,844 | $539,844 | ||||
For the Three Months Ended September 30, 2025 | For the Nine Months Ended September 30, 2025 | |||||
Realized gain, net | $4,500 | $4,500 | ||||
Unrealized gain, net | 23,990 | 65,922 | ||||
Change in fair value of intangible digital assets | $28,490 | $70,422 | ||||
September 30, 2025 | December 31, 2024 | |||||
Compensation | $3,444 | $3,743 | ||||
Accrued Taxes | 726 | 909 | ||||
Accrued Interest on Convertible Note | 708 | — | ||||
Miscellaneous Accruals | 1,487 | 521 | ||||
Total Accrued Expenses | $6,365 | $5,173 | ||||
• | default in any payment of interest on any 2030 Senior Note when due and payable and the default continues for a period of 30 days; |
• | default in the payment of principal of any 2030 Senior Note when due and payable at its stated maturity, upon optional redemption, upon any required repurchase, upon declaration of acceleration or otherwise; |
• | failure by the Company to comply with its obligation to convert the 2030 Senior Notes in accordance with the 2030 Indenture upon exercise of a holder’s conversion right, and such failure continues for three business days; |
• | failure by the Company to give (i) a fundamental change notice or notice of a make-whole fundamental change, in either case when due and such failure continues for five business days, or (ii) notice of a specified corporate transaction when due and such failure continues for one business day; |
• | failure by the Company to comply with its obligations in respect of any consolidation, merger or sale of assets; |
• | failure by the Company to comply with any of its other agreements in the 2030 Senior Notes or the 2030 Indenture for 60 days after written notice of such failure from the trustee or the holders of at least 25% in principal amount of the 2030 Senior Notes then outstanding; |
• | default by the Company or any of its significant subsidiaries (as defined in the 2030 Indenture) with respect to any mortgage, agreement or other instrument under which there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed with a principal amount in excess of $15.0 million (or its foreign currency equivalent), in the aggregate of the Company and/or any such significant subsidiary, whether such indebtedness now exists or shall hereafter be created, (i) resulting in such indebtedness becoming or being declared due and payable prior to its stated maturity date or (ii) constituting a failure to pay the principal of any such indebtedness when due and payable (after the expiration of all applicable grace periods) at its stated maturity, upon required repurchase, upon declaration of acceleration or otherwise, and in the cases of clauses (i) and (ii), such acceleration shall not have been rescinded or annulled or such failure to pay or default shall not have been cured or waived, or such indebtedness is not paid or discharged, as the case may be, within 30 days after written notice to the Company by the trustee or to the Company and the trustee by holders of at least 25% in aggregate principal amount of the 2030 Senior Notes then outstanding in accordance with the 2030 Indenture; and |
• | certain events of bankruptcy, insolvency or reorganization of the Company or any of its significant subsidiaries. |
Options Outstanding | ||||||||||||
Number of Stock Options Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (In Thousands) | |||||||||
Balance, December 31, 2024 | 691,450 | $8.86 | 3.21 | $31,209 | ||||||||
Options granted | 695,767 | $50.86 | 6.38 | — | ||||||||
Options forfeited/cancelled | (29,423) | — | — | — | ||||||||
Options exercised | (138,387) | $5.32 | — | — | ||||||||
Balance, September 30, 2025 | 1,219,407 | $32.34 | 4.90 | $11,160 | ||||||||
Exercisable as of September 30, 2025 | 554,270 | $15.19 | 2.49 | $10,521 | ||||||||
September 30, 2025 | September 30, 2024 | |||||
Expected term (in years) | 1.1-6.1 | 2-7 | ||||
Risk-free interest rate | 3.9%-4.5% | 4.5%-4.9% | ||||
Expected volatility | 69.3%-100.4% | 62.3%-77.2% | ||||
Expected dividend rate | 0 | 0 | ||||
Fair value of options granted | $13.55-$38.85 | $10.35-$14.97 | ||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Cost of Revenues | $82 | $14 | $220 | $28 | ||||||||
Engineering and Product Development | (16) | 15 | 144 | 27 | ||||||||
Sales and Marketing | 437 | 47 | 1,184 | 81 | ||||||||
General and Administrative | 1,513 | 128 | 3,845 | 362 | ||||||||
Total | $2,016 | $204 | $5,393 | $498 | ||||||||
• | The permanent extension of 100% bonus depreciation for qualified property acquired on or after January 20, 2025. |
• | The immediate expensing of domestic R&D expenditures effective for tax years beginning after December 31, 2024; and |
• | The restoration of EBITDA-based limitations on the deductibility of business interest expense, effective for tax years beginning after December 31, 2024. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Numerator: | ||||||||||||
Net income - Basic | $16,902 | $5,609 | $19,132 | $11,693 | ||||||||
Effect of dilutive shares on net income: | ||||||||||||
Interest expense on 2030 Senior Notes, net of tax | 879 | — | 2,142 | — | ||||||||
Net income - Diluted | $17,781 | $5,609 | $21,274 | $11,693 | ||||||||
Denominator: | ||||||||||||
Weighted average common stock-Basic | 14,848,408 | 7,045,108 | 12,073,628 | 6,961,095 | ||||||||
Effect of dilutive shares on weighted average common stock outstanding: | ||||||||||||
Stock options | 388,531 | 725,980 | 454,045 | 822,255 | ||||||||
2030 Senior Notes | 1,308,259 | — | 1,178,394 | — | ||||||||
Total weighted average shares of common stock-Diluted | 16,545,198 | 7,771,088 | 13,706,067 | 7,783,350 | ||||||||
Earnings per share: | ||||||||||||
Basic earnings per share | $1.14 | $0.80 | $1.58 | $1.68 | ||||||||
Diluted earnings per share | $1.07 | $0.72 | $1.55 | $1.50 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Revenue | $7,491 | $13,512 | $24,543 | $43,881 | ||||||||
Less: | ||||||||||||
Cost of revenue | 580 | 1,075 | 2,106 | 3,342 | ||||||||
Research and development(1) | 1,106 | 1,165 | 3,642 | 3,695 | ||||||||
Sales | 913 | 1,439 | 2,804 | 4,460 | ||||||||
Sales operations | 754 | 697 | 2,281 | 2,260 | ||||||||
General and administration | 7,993 | 3,128 | 17,989 | 8,902 | ||||||||
Litigation settlement expense | — | — | 29,750 | — | ||||||||
Depreciation and amortization | 87 | 133 | 317 | 479 | ||||||||
Other segment expenses(2) | 1,448 | 810 | 4,200 | 3,352 | ||||||||
Segment operating (loss) profit | $(5,390) | $5,065 | $(38,546) | $17,391 | ||||||||
Interest income (expense), net | (338) | 168 | (214) | 1,699 | ||||||||
Interest on 2030 Senior Notes | (1,237) | — | (3,312) | — | ||||||||
Impairment of investments | — | — | (1,135) | — | ||||||||
Change in fair value of notes | — | — | — | 128 | ||||||||
Change in fair value of digital assets | 28,490 | 1,137 | 70,422 | (3,918) | ||||||||
Change in fair value of Bitcoin collateral | 1,471 | — | 1,471 | — | ||||||||
Gain on conversion of notes receivable | 803 | — | 803 | — | ||||||||
Other corporate income(3) | 4 | 5 | 7 | 8 | ||||||||
Income before taxes | 23,803 | 6,375 | 29,496 | 15,308 | ||||||||
Income tax expense | 6,901 | 766 | 10,364 | 3,615 | ||||||||
Net income | $16,902 | $5,609 | $19,132 | $11,693 | ||||||||
1. | Research and development expenses include clinical affairs and HITRUST. |
2. | Other segment expenses include marketing, customer education and business development. |
3. | Other corporate income represents unallocated income. |
December 31, 2024 | December 31, 2023 | |||||
Assets | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $8,819 | $57,200 | ||||
Restricted cash | 133 | 132 | ||||
Trade accounts receivable, net of allowance for credit losses of $199 and $287, respectively | 4,378 | 6,125 | ||||
Short-term notes held for investment | 6,100 | — | ||||
Inventory, net | 358 | 445 | ||||
Prepaid expenses and other current assets | 2,900 | 2,042 | ||||
Total current assets | 22,688 | 65,944 | ||||
Assets for lease, net | 1,423 | 2,285 | ||||
Property and equipment, net | 487 | 720 | ||||
Long-term investments | 512 | 512 | ||||
Notes held for investment | — | 5,372 | ||||
Intangible digital assets | 214,633 | — | ||||
Other non-current assets | 85 | 270 | ||||
Deferred tax assets | — | 2,962 | ||||
Total assets | $239,828 | $78,065 | ||||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $140 | $402 | ||||
Accrued expenses | 5,173 | 4,502 | ||||
Deferred revenue | 774 | 1,120 | ||||
Other short-term liabilities | 226 | 176 | ||||
Total current liabilities | 6,313 | 6,200 | ||||
Long-term liabilities: | ||||||
Deferred tax liability | 2,765 | — | ||||
Other long-term liabilities | — | 70 | ||||
Total long-term liabilities | 2,765 | 70 | ||||
Commitments and contingencies (Note 14) | ||||||
Stockholders’ equity: | ||||||
Common stock, $0.001 par value; 50,000,000 shares authorized; 9,770,908 and 7,099,441 shares issued, and 9,556,486 and 6,885,019 shares outstanding (treasury shares of 214,422 and 214,422), respectively | 9 | 7 | ||||
Additional paid-in capital | 130,039 | 11,985 | ||||
Retained earnings | 100,702 | 59,803 | ||||
Total stockholders’ equity | 230,750 | 71,795 | ||||
Total liabilities and stockholders’ equity | $239,828 | $78,065 | ||||
For the year ended December 31, | ||||||
2024 | 2023 | |||||
Revenues | $56,294 | $68,184 | ||||
Operating expenses: | ||||||
Cost of revenues | 4,759 | 6,984 | ||||
Engineering and product development | 4,792 | 5,773 | ||||
Sales and marketing | 13,078 | 18,147 | ||||
General and administrative | 12,732 | 14,290 | ||||
Strategic streamlining | — | 734 | ||||
Total operating expenses | 35,361 | 45,928 | ||||
Income from operations | 20,933 | 22,256 | ||||
Interest and dividend income, net | 1,877 | 2,471 | ||||
Impairment of investments | — | (337) | ||||
Change in fair value of notes held for investment | 128 | (307) | ||||
Change in fair value of digital assets | 24,933 | — | ||||
Other income | 13 | 17 | ||||
Other income, net | 26,951 | 1,844 | ||||
Pre-tax income | 47,884 | 24,100 | ||||
Income tax provision | 6,985 | 3,517 | ||||
Net income | $40,899 | $20,583 | ||||
Net income per share, basic | $5.66 | $3.06 | ||||
Weighted average number of shares used in computing basic net income per share | 7,228,961 | 6,732,806 | ||||
Net income per share, diluted | $5.13 | $2.63 | ||||
Weighted average number of shares used in computing diluted net income per share | 7,980,118 | 7,819,159 | ||||
For the Year Ended December 31, 2023 | ||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Total Stockholders' Equity | ||||||||||||||
Shares Issued | Common Stock Amount | Shares | ||||||||||||||||
Balance at December 31, 2022 | 6,906,544 | $7 | (214,422) | $16,449 | $39,220 | $55,676 | ||||||||||||
Common stock warrants acquired | — | — | — | (1,949) | — | (1,949) | ||||||||||||
Employee stock grants | 24,295 | — | — | 860 | — | 860 | ||||||||||||
Taxes paid related to net share settlement of equity awards | (114,970) | — | — | (3,510) | — | (3,510) | ||||||||||||
Stock option exercises | 283,572 | — | — | 51 | — | 51 | ||||||||||||
Stock-based compensation | — | — | — | 84 | — | 84 | ||||||||||||
Net income | — | — | — | — | 20,583 | 20,583 | ||||||||||||
Balance at December 31, 2023 | 7,099,441 | $7 | (214,422) | $11,985 | $59,803 | $71,795 | ||||||||||||
For the Year Ended December 31, 2024 | ||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Total Stockholders' Equity | ||||||||||||||
Shares Issued | Common Stock Amount | Shares | ||||||||||||||||
Balance at December 31, 2023 | 7,099,441 | $7 | (214,422) | $11,985 | $59,803 | $71,795 | ||||||||||||
Directors stock grants | 10,500 | — | — | 300 | — | 300 | ||||||||||||
Issuance of common stock | 2,197,988 | 2 | — | 119,602 | — | 119,604 | ||||||||||||
Stock issuance expenses | — | — | — | (3,000) | — | (3,000) | ||||||||||||
Taxes paid related to net share settlement of equity awards | (34,406) | — | — | (874) | — | (874) | ||||||||||||
Stock option exercises | 497,385 | — | — | 1,464 | — | 1,464 | ||||||||||||
Stock-based compensation | — | — | — | 562 | — | 562 | ||||||||||||
Net income | — | — | — | — | 40,899 | 40,899 | ||||||||||||
Balance at December 31, 2024 | 9,770,908 | $9 | (214,422) | $130,039 | $100,702 | $230,750 | ||||||||||||
For the year ended December 31, | ||||||
2024 | 2023 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income | $40,899 | $20,583 | ||||
Reconciliation of Net Income to Net Cash Provided by Operating Activities: | ||||||
Depreciation | 579 | 599 | ||||
Deferred tax expense (income) | 5,727 | (664) | ||||
Loss on disposal of assets for lease | 298 | 369 | ||||
Write off of prepaid software licenses | — | 2,476 | ||||
Gain on short-term investments | — | (151) | ||||
Allowance for credit losses | (88) | 268 | ||||
Change in fair value of notes held for investment | (128) | 307 | ||||
Change in fair value of digital assets | (24,933) | — | ||||
Stock-based compensation | 862 | 944 | ||||
Impairment of long-term investments | — | 337 | ||||
Changes in Operating Assets and Liabilities: | ||||||
Trade accounts receivable | 1,844 | (2,508) | ||||
Inventory | 88 | 24 | ||||
Prepaid expenses and other current assets | (865) | (603) | ||||
Other non-current assets | 85 | 96 | ||||
Accounts payable | (262) | (433) | ||||
Accrued expenses | 671 | (246) | ||||
Other current and non-current liabilities | (367) | (68) | ||||
Net Cash Provided by Operating Activities | 24,410 | 21,330 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Additions to property and equipment | (51) | (345) | ||||
Purchase of notes held for investment | (500) | (1,000) | ||||
Purchase of digital assets | (189,700) | — | ||||
Proceeds from maturities of short-term investments | — | 78,093 | ||||
Purchase of short-term investments | — | (57,869) | ||||
Proceeds from sale (purchase) of assets for lease | 269 | (483) | ||||
Net Cash (Used in) Provided by Investing Activities | (189,982) | 18,396 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Proceeds from issuance of common stock | 119,602 | — | ||||
Taxes paid related to net settlement of equity awards | (874) | (3,510) | ||||
Common stock warrants acquired | — | (1,949) | ||||
Stock issuance expenses | (3,000) | — | ||||
Proceeds from exercise of stock options | 1,464 | 51 | ||||
Net Cash Provided by (Used in) Financing Activities | 117,192 | (5,408) | ||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (48,380) | 34,318 | ||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 57,332 | 23,014 | ||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $8,952 | $57,332 | ||||
Supplemental Disclosure of Cash Flow Information: | ||||||
Cash paid for taxes | $2,260 | $4,060 | ||||
Category Name | Description | ||
Machinery & Equipment | Manufacturing, R&D, or other non-office equipment | ||
Computer Equipment & Software | Software, computers, monitors, printers and other related equipment. | ||
Furniture & Fixtures | Office equipment and furniture owned by the company | ||
Account Name | Useful Life | ||
Machinery & Equipment | Five years | ||
Computer Equipment & Software | Three years | ||
Furniture & Fixtures | Five years | ||
As of December 31, | ||||||
2024 | 2023 | |||||
Assets for lease | $2,522 | $3,375 | ||||
Less: accumulated depreciation | (1,099) | (1,090) | ||||
Assets for lease, net | $1,423 | $2,285 | ||||
As of December 31, | ||||||
2024 | 2023 | |||||
Property and equipment, gross | $1,467 | $1,544 | ||||
Less: accumulated depreciation | (980) | (824) | ||||
Property and equipment, net | $487 | $720 | ||||
December 31, 2024 | December 31, 2023 | |||||
Investments in SYNAPS Dx | $512 | $512 | ||||
Total long-term investments | $512 | $512 | ||||
Fair Value Hierarchy | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
As of December 31, 2024 | ||||||||||||
U.S. Government money market fund accounts | $3,638 | $— | $— | $3,638 | ||||||||
(Included in cash and cash equivalents) | ||||||||||||
Bitcoin investments | 214,633 | — | — | 214,633 | ||||||||
(Included in intangible digital assets) | ||||||||||||
Total Assets | $218,271 | $— | $— | $218,271 | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||
As of December 31, 2023 | ||||||||||||
U.S. Government money market fund accounts | $41,373 | $— | $— | $41,373 | ||||||||
(Included in cash and cash equivalents) | ||||||||||||
U.S. Treasury bill | — | 10,494 | — | 10,494 | ||||||||
(Included in cash and cash equivalents) | ||||||||||||
Investment in debt securities | — | — | 4,372 | 4,372 | ||||||||
(Included in notes held for investment) | ||||||||||||
Total Assets | $41,373 | $10,494 | $4,372 | $56,239 | ||||||||
December 31, 2023 | |||
Risk-free rate | 3.94% - 5.26% | ||
Cash flow discount rate | 27.8% | ||
Expert term in years | 0.25 - 2.92 | ||
Expected volatility | 120% | ||
Convertible Notes | |||
Balance as of December 31, 2023 | $4,372 | ||
Purchased | 500 | ||
Change in fair value of the notes held for investment | 128 | ||
Balance as of December 31, 2024 | $5,000 | ||
December 31, 2024 | December 31, 2023 | |||||
Senior secured promissory notes | $1,000 | $1,000 | ||||
Secured convertible promissory notes | 5,100 | 4,372 | ||||
Total notes held for investment | $6,100 | $5,372 | ||||
Units Held | Cost Basis | Fair Value | |||||||
Intangible digital assets held: | |||||||||
Third party bitcoin custodians | 2,298 | $189,700 | $214,633 | ||||||
Dispositions | — | — | — | ||||||
Total | 2,298 | $189,700 | $214,633 | ||||||
For The Year Ended December 31, 2024 | |||
Intangible digital assets held: | |||
Beginning balance at fair value | $— | ||
Additions | 189,700 | ||
Dispositions | — | ||
Unrealized gain, net | 29,766 | ||
Unrealized loss, net | (4,833) | ||
Ending Balance | $214,633 | ||
As of December 31, | ||||||
2024 | 2023 | |||||
Compensation | $3,743 | $2,008 | ||||
Accrued Taxes | 909 | 1,991 | ||||
Miscellaneous Accruals | 521 | 503 | ||||
Total Accrued Expenses | $5,173 | $4,502 | ||||
Total | |||
2025 | 71 | ||
Total undiscounted future minimum lease payments | 71 | ||
Less: present value discount | (1) | ||
Total lease liabilities | 70 | ||
Lease expense in excess cash payment | (5) | ||
Total ROU asset | $65 | ||
Options Outstanding | ||||||||||||
Number of Stock Options Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (In Thousands) | |||||||||
Balance, December 31, 2023 | 1,021,785 | $3.84 | 3.76 | $41,333 | ||||||||
Options granted | 173,700 | $23.04 | — | — | ||||||||
Options forfeited/cancelled | (6,650) | — | — | — | ||||||||
Options exercised | (497,385) | $3.42 | — | — | ||||||||
Balance, December 31, 2024 | 691,450 | $8.86 | 3.21 | $31,209 | ||||||||
Exercisable as of December 31, 2024 | 528,867 | $4.43 | 1.88 | $26,214 | ||||||||
December 31, 2024 | December 31, 2023 | |||||
Expected term (in years) | 2-7 | 7 | ||||
Risk-free interest rate | 4.5%-4.9% | 4.14%-4.41% | ||||
Expected volatility | 62.3%-77.2% | 69.0%-79.5% | ||||
Expected dividend rate | 0 | 0 | ||||
Fair value of options granted | $10.35-$14.97 | $17.54-$19.04 | ||||
December 31 | December 31 | |||||
2024 | 2023 | |||||
Cost of Revenues | $42 | $8 | ||||
Engineering and Product Development | 43 | 53 | ||||
Sales and Marketing | 135 | 317 | ||||
General and Administrative | 642 | 566 | ||||
Total | $862 | $944 | ||||
2024 | 2023 | |||||
Current tax provision: | ||||||
Federal | $948 | $3,576 | ||||
State | 310 | 605 | ||||
Total current tax provision | 1,258 | 4,181 | ||||
Deferred tax provision: | ||||||
Federal | 5,015 | (680) | ||||
State | 712 | 16 | ||||
Total deferred tax provision | 5,727 | (664) | ||||
Total income tax provision | $6,985 | $3,517 | ||||
2024 | 2023 | |||||
Federal statutory rate | 21.00% | 21.00% | ||||
State income tax rate, net of federal benefit | 1.96% | 2.04% | ||||
Stock-based compensation | (8.32)% | (7.98)% | ||||
Permanent items | (0.03)% | (0.71)% | ||||
Other | (0.07)% | 0.24% | ||||
Effective income tax rate | 14.54% | 14.59% | ||||
2024 | 2023 | |||||
Net operating loss carryforwards | $185 | $188 | ||||
Deferred revenue | 185 | 268 | ||||
Stock based compensation | 208 | 385 | ||||
Accrual and reserves | 180 | 251 | ||||
Research and development credits | 251 | 262 | ||||
Other | 179 | 156 | ||||
Depreciation and amortization | 2,004 | 1,450 | ||||
Lease liability | 17 | 38 | ||||
Total gross deferred tax assets | 3,209 | 2,998 | ||||
Less valuation allowance | — | — | ||||
Net deferred tax assets | 3,209 | 2,998 | ||||
2024 | 2023 | |||||
Deferred tax liabilities: | ||||||
Right of use assets | (16) | (36) | ||||
Change in fair value of digital assets | (5,958) | — | ||||
Total deferred tax liabilities | (5,974) | (36) | ||||
Net deferred tax (liabilities) assets | $(2,765) | $2,962 | ||||
Gross Unrecognized Tax Benefits 2024 | Gross Unrecognized Tax Benefits 2023 | |||||
Unrecognized tax benefits – January 1 | $470 | $401 | ||||
Gross increases related to prior tax positions | — | 4 | ||||
Gross decreases related to prior tax positions | (3) | — | ||||
Gross increases related to current tax positions | 20 | 65 | ||||
Unrecognized tax benefits – December 31 | $487 | $470 | ||||
Year ended December 31, | ||||||||||||||||||
2024 | 2023 | |||||||||||||||||
Shares | Net Income | EPS | Shares | Net Income | EPS | |||||||||||||
Basic | 7,228,961 | $40,899 | $5.66 | 6,732,806 | $20,583 | $3.06 | ||||||||||||
Common stock options | 751,157 | — | 1,086,353 | — | ||||||||||||||
Diluted | 7,980,118 | $40,899 | $5.13 | 7,819,159 | $20,583 | $2.63 | ||||||||||||
December 31 | December 31 | |||||
2024 | 2023 | |||||
Revenue | $56,294 | $68,184 | ||||
Less: | ||||||
Cost of revenue | 4,685 | 6,923 | ||||
Research and development(1) | 4,709 | 5,674 | ||||
Sales | 5,895 | 7,777 | ||||
Sales operations | 2,946 | 3,702 | ||||
General and administration | 12,651 | 14,208 | ||||
Depreciation and amortization | 283 | 292 | ||||
Other segment expenses(2) | 4,192 | 7,352 | ||||
Segment operating profit | 20,933 | 22,256 | ||||
Interest income, net | 1,877 | 2,471 | ||||
Impairment of investments | — | (337) | ||||
Change in fair value of notes held for investment | 128 | (307) | ||||
Change in fair value of digital assets | 24,933 | — | ||||
Other corporate income(3) | 13 | 17 | ||||
Income before taxes | 47,884 | 24,100 | ||||
Income tax expense | 6,985 | 3,517 | ||||
Net income | $40,899 | $20,583 | ||||
(1) | Research and development include clinical affairs and HITRUST. |
(2) | Other segment expenses include marketing, customer education, business development, and strategic streamlining. |
(3) | Other corporate income represents unallocated income. |
• | default in any payment of interest on any Note when due and payable and the default continues for a period of 30 days; |
• | default in the payment of principal of any Note when due and payable at its stated maturity, upon optional redemption, upon any required repurchase, upon declaration of acceleration or otherwise; |
• | failure by the Company to comply with its obligation to convert the Notes in accordance with the Indenture upon exercise of a holder’s conversion right, and such failure continues for three business days; |
• | failure by the Company to give (i) a fundamental change notice or notice of a make-whole fundamental change, in either case when due and such failure continues for five business days, or (ii) notice of a specified corporate transaction when due and such failure continues for one business day; |
• | failure by the Company to comply with its obligations in respect of any consolidation, merger or sale of assets; |
• | failure by the Company to comply with any of its other agreements in the Notes or the Indenture for 60 days after written notice of such failure from the trustee or the holders of at least 25% in principal amount of the Notes then outstanding; |
• | default by the Company or any of its significant subsidiaries (as defined in the Indenture) with respect to any mortgage, agreement or other instrument under which there may be outstanding, or by which there may be secured or evidenced, any indebtedness for money borrowed with a principal amount in excess of $15.0 million (or its foreign currency equivalent), in the aggregate of the Company and/or any such significant subsidiary, whether such indebtedness now exists or shall hereafter be created, (i) resulting in such indebtedness becoming or being declared due and payable prior to its stated maturity date or (ii) constituting a failure to pay the principal of any such indebtedness when due and payable (after the expiration of all applicable grace periods) at its stated maturity, upon required repurchase, upon declaration of acceleration or otherwise, and in the cases of clauses (i) and (ii), such acceleration shall not have been rescinded or annulled or such failure to pay or default shall not have been cured or waived, or such indebtedness is not paid or discharged, as the case may be, within 30 days after written notice to the Company by the trustee or to the Company and the trustee by holders of at least 25% in aggregate principal amount of the Notes then outstanding in accordance with the Indenture; and |
• | certain events of bankruptcy, insolvency or reorganization of the Company or any of its significant subsidiaries’ |
September 30, 2025 (Successor) | December 31, 2024 (Predecessor) | |||||
(unaudited) | (audited) | |||||
Assets: | ||||||
Current assets: | ||||||
Cash and cash equivalents | $109,069 | $6,155 | ||||
Short-term investments | — | 16,755 | ||||
Prepaid expenses | 3,533 | 351 | ||||
Other current assets | 1,601 | 500 | ||||
Total current assets | 114,203 | 23,761 | ||||
Digital assets, at fair value | 672,913 | — | ||||
Property and equipment, net | 816 | 951 | ||||
Intangible assets, net | 361 | 187 | ||||
Right-of-use lease assets | 4,141 | 1,786 | ||||
Other non-current assets | 142 | 1,512 | ||||
Total assets | $792,576 | $28,197 | ||||
Liabilities: | ||||||
Current liabilities: | ||||||
Compensation and benefits payable | $357 | $1,112 | ||||
Accounts payable and other liabilities | 9,186 | 2,227 | ||||
Total current liabilities | 9,543 | 3,339 | ||||
Operating lease liabilities | 3,604 | 1,516 | ||||
Total liabilities | 13,147 | 4,855 | ||||
Stockholders’ equity: | ||||||
Predecessor preferred stock, $0.00001 par value; 0 and 1,161,650 shares authorized, 0 and 1,158,802 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | — | 72,488 | ||||
Predecessor Class A common stock, $0.00001 par value; 0 and 2,000,000 shares authorized, 0 and 2,000,000 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | — | — | ||||
Predecessor Class B common stock, $0.00001 par value; 0 and 2,339,765 shares authorized, 0 and 400,970 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | — | — | ||||
Successor Class A common stock, $0.001 par value; 444,000,000,000 and 0 shares authorized, 448,817,597 and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | 449 | — | ||||
Successor Class B common stock, $0.001 par value; 21,000,000,000 and 0 shares authorized, 218,035,473 and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively | 218 | — | ||||
Additional paid-in capital | 1,047,185 | — | ||||
Accumulated deficit | (268,423) | (49,146) | ||||
Total stockholders’ equity | 779,429 | 23,342 | ||||
Total liabilities and stockholders’ equity | $792,576 | $28,197 | ||||
Successor | Predecessor | ||||||||
Period from September 12, 2025 to September 30, 2025 | Period from July 1, 2025 to September 11, 2025 | Three Months Ended September 30, 2024 | |||||||
Revenues: | |||||||||
Investment advisory fees | $246 | $1,283 | $950 | ||||||
Other revenue | 9 | 5 | 34 | ||||||
Total revenues | 255 | 1,288 | 984 | ||||||
Operating expenses: | |||||||||
Fund management and administration | 282 | 1,251 | 1,272 | ||||||
Employee compensation and benefits | 18,720 | 3,151 | 2,182 | ||||||
General and administrative expense | 445 | 871 | 4,404 | ||||||
Marketing and advertising | 18 | 68 | 89 | ||||||
Depreciation and amortization | 12 | 43 | 47 | ||||||
Total operating expenses | 19,477 | 5,384 | 7,994 | ||||||
Investment gains/(losses): | |||||||||
Net unrealized loss on digital assets | (10,133) | — | — | ||||||
Other derivative loss | (14,731) | — | — | ||||||
Net investment gains/(losses) | (24,864) | — | — | ||||||
Net operating loss | (44,086) | (4,096) | (7,010) | ||||||
Other income/(expense): | |||||||||
Other income | 68 | 10 | 208 | ||||||
Transaction costs | (7,484) | (10,280) | — | ||||||
Goodwill and intangible asset impairment | (140,785) | — | — | ||||||
Total other income/(expense) | (148,201) | (10,270) | 208 | ||||||
Net loss before income taxes | (192,287) | (14,366) | (6,802) | ||||||
Income tax benefit/(expense) | — | — | — | ||||||
Net loss | $(192,287) | $(14,366) | $(6,802) | ||||||
Weighted average number of common shares outstanding: | |||||||||
Basic(1) | 872,349,183 | 2,325,783 | 2,225,816 | ||||||
Diluted(1) | 872,349,183 | 2,325,783 | 2,225,816 | ||||||
Net loss per common share: | |||||||||
Basic(1) | $(0.22) | $(6.18) | $(3.06) | ||||||
Diluted(1) | $(0.22) | $(6.18) | $(3.06) | ||||||
(1) | Basic and diluted earnings per common share for Class A and Class B common stock are the same. |
Successor | Predecessor | ||||||||
Period from September 12, 2025 to September 30, 2025 | Period from January 1, 2025 to September 11, 2025 | Nine Months Ended September 30, 2024 | |||||||
Revenues: | |||||||||
Investment advisory fees | $246 | $4,187 | $2,560 | ||||||
Other revenue | 9 | 35 | 55 | ||||||
Total revenues | 255 | 4,222 | 2,615 | ||||||
Operating expenses: | |||||||||
Fund management and administration | 282 | 4,250 | 3,488 | ||||||
Employee compensation and benefits | 18,720 | 7,222 | 6,465 | ||||||
General and administrative expense | 445 | 4,229 | 10,040 | ||||||
Marketing and advertising | 18 | 231 | 443 | ||||||
Depreciation and amortization | 12 | 149 | 141 | ||||||
Total operating expenses | 19,477 | 16,081 | 20,577 | ||||||
Investment gains/(losses): | |||||||||
Net unrealized loss on digital assets | (10,133) | — | — | ||||||
Other derivative loss | (14,731) | — | — | ||||||
Net investment gains/(losses) | (24,864) | — | — | ||||||
Net operating loss | (44,086) | (11,859) | (17,962) | ||||||
Other income/(expense): | |||||||||
Other income | 68 | 586 | 500 | ||||||
Transaction costs | (7,484) | (15,717) | — | ||||||
Goodwill and intangible asset impairment | (140,785) | — | — | ||||||
Total other income/(expense) | (148,201) | (15,131) | 500 | ||||||
Net loss before income taxes | (192,287) | (26,990) | (17,462) | ||||||
Income tax benefit/(expense) | — | — | — | ||||||
Net loss | $(192,287) | $(26,990) | $(17,462) | ||||||
Weighted average number of common shares outstanding: | |||||||||
Basic(1) | 872,349,183 | 2,299,243 | 2,200,848 | ||||||
Diluted(1) | 872,349,183 | 2,299,243 | 2,200,848 | ||||||
Net loss per common share: | |||||||||
Basic(1) | $(0.22) | $(11.74) | $(7.93) | ||||||
Diluted(1) | $(0.22) | $(11.74) | $(7.93) | ||||||
(1) | Basic and diluted earnings per common share for Class A and Class B common stock are the same. |
Predecessor | |||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
Predecessor Preferred Stock | Predecessor Class A Common Stock | Predecessor Class B Common Stock | Successor Class A Common Stock | Successor Class B Common Stock | Additional Paid-in Capital | Retained Earnings/ (Accumulated Deficit) | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Par Value | Shares | Par Value | Shares | Par Value | Shares | Par Value | ||||||||||||||||||||||||||||||
Balance at December 31, 2023 | 787,598 | $43,624 | 2,000,000 | $— | 400,970 | $— | — | $— | — | $— | $— | $(27,566) | $16,058 | ||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (4,791) | (4,791) | ||||||||||||||||||||||||||
Balance at March 31, 2024 | 787,598 | $43,624 | 2,000,000 | $— | 400,970 | $— | — | $— | — | $— | $— | $(32,357) | $11,267 | ||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (5,869) | (5,869) | ||||||||||||||||||||||||||
Balance at June 30, 2024 | 787,598 | $43,624 | 2,000,000 | $— | 400,970 | $— | — | $— | — | $— | $— | $(38,226) | $5,398 | ||||||||||||||||||||||||||
Net proceeds from sale of preferred stock | 372,257 | 28,949 | — | — | — | — | — | — | — | — | — | — | 28,949 | ||||||||||||||||||||||||||
Redemption of preferred stock | (1,053) | (85) | — | — | — | — | — | — | — | — | — | — | (85) | ||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (6,802) | (6,802) | ||||||||||||||||||||||||||
Balance at September 30, 2024 | 1,158,802 | $72,488 | 2,000,000 | $— | 400,970 | $— | — | $— | — | $— | $— | $(45,028) | $27,460 | ||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (4,118) | (4,118) | ||||||||||||||||||||||||||
Balance at December 31, 2024 | 1,158,802 | $72,488 | 2,000,000 | $— | 400,970 | $— | — | $— | — | $— | $— | $(49,146) | $23,342 | ||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (3,749) | (3,749) | ||||||||||||||||||||||||||
Balance at March 31, 2025 | 1,158,802 | $72,488 | 2,000,000 | $— | 400,970 | $— | — | $— | — | $— | $— | $(52,895) | $19,593 | ||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (8,875) | (8,875) | ||||||||||||||||||||||||||
Balance at June 30, 2025 | 1,158,802 | $72,488 | 2,000,000 | $— | 400,970 | $— | — | $— | — | $— | $— | $(61,770) | $10,718 | ||||||||||||||||||||||||||
Redemption of preferred stock | (1,238) | (500) | — | — | — | — | — | — | — | — | — | — | (500) | ||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (14,366) | (14,366) | ||||||||||||||||||||||||||
Balance at September 11, 2025 | 1,157,564 | $71,988 | 2,000,000 | $— | 400,970 | $— | — | $— | — | $— | $— | $(76,136) | $(4,148) | ||||||||||||||||||||||||||
Successor | |||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
Predecessor Preferred Stock | Predecessor Class A Common Stock | Predecessor Class B Common Stock | Successor Class A Common Stock | Successor Class B Common Stock | Additional Paid-in Capital | Retained Earnings/ (Accumulated Deficit) | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Par Value | Shares | Par Value | Shares | Par Value | Shares | Par Value | ||||||||||||||||||||||||||||||
Balance at September 12, 2025 | 1,157,564 | $71,988 | 2,000,000 | $— | 400,970 | $— | — | $— | — | $— | $— | $(76,136) | $(4,148) | ||||||||||||||||||||||||||
Conversion of Predecessor shares for Strive, Inc. Class B common stock | (1,157,564) | (71,988) | (2,000,000) | — | (400,970) | — | — | — | 248,911,564 | 249 | 71,739 | — | — | ||||||||||||||||||||||||||
Business combination with Asset Entities Inc. | — | — | — | — | — | — | 16,624,395 | 17 | — | — | 141,123 | — | 141,140 | ||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | — | — | 16,294 | — | 16,294 | ||||||||||||||||||||||||||
Issuance of Class A common stock | — | — | — | — | — | — | 359,162,900 | 359 | — | — | 548,020 | — | 548,379 | ||||||||||||||||||||||||||
Issuance of pre-funded warrants | — | — | — | — | — | — | — | — | — | — | 283,170 | — | 283,170 | ||||||||||||||||||||||||||
Exercise of warrants | — | — | — | — | — | — | 42,154,211 | 42 | — | — | 12,958 | — | 13,000 | ||||||||||||||||||||||||||
Conversions of Class B common stock to Class A common stock | — | — | — | — | — | — | 30,876,091 | 31 | (30,876,091) | (31) | — | — | — | ||||||||||||||||||||||||||
Share-based transaction costs | — | — | — | — | — | — | — | — | — | — | 2,936 | — | 2,936 | ||||||||||||||||||||||||||
Issuance costs | — | — | — | — | — | — | — | — | — | — | (29,055) | — | (29,055) | ||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | (192,287) | (192,287) | ||||||||||||||||||||||||||
Balance at September 30, 2025 | — | $— | — | $— | — | $— | 448,817,597 | $449 | 218,035,473 | $218 | $1,047,185 | $(268,423) | $779,429 | ||||||||||||||||||||||||||
Successor | Predecessor | ||||||||
Period from September 12, 2025 to September 30, 2025 | Period from January 1, 2025 to September 11, 2025 | Nine Months Ended September 30, 2024 | |||||||
Cash flows from operating activities: | |||||||||
Net loss | $(192,287) | $(26,990) | $(17,462) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
Depreciation and amortization | 12 | 149 | 141 | ||||||
Accretion of discount on investments, net | — | 155 | 11 | ||||||
Reduction in carrying amount of right-of-use assets | 5 | 91 | 59 | ||||||
Net unrealized loss on digital assets | 10,133 | — | — | ||||||
Other derivative loss | 14,731 | — | — | ||||||
Share-based compensation expense | 16,294 | — | — | ||||||
Goodwill and intangible asset impairment | 140,785 | — | — | ||||||
Non-cash transaction expenses | 2,936 | 2,150 | — | ||||||
Changes in operating assets and liabilities: | |||||||||
Prepaid expenses | (2,928) | (227) | (157) | ||||||
Other current assets | 1,461 | (1,589) | (388) | ||||||
Other non-current assets | — | (723) | — | ||||||
Compensation and benefits payable | 263 | (1,018) | 932 | ||||||
Accounts payable and other liabilities | (5,360) | 9,793 | 1,342 | ||||||
Net cash used in operating activities | (13,955) | (18,209) | (15,522) | ||||||
Cash flows from investing activities: | |||||||||
Purchases of digital assets | (675,008) | — | — | ||||||
Purchases of intangible assets | (75) | (123) | — | ||||||
Purchases of property and equipment | — | — | (200) | ||||||
Cash acquired through business combination | 400 | — | — | ||||||
Purchases of short-term investments | — | (4,271) | (32,202) | ||||||
Proceeds from short-term investments | — | 20,871 | 20,738 | ||||||
Net cash provided by (used in) investing activities | (674,683) | 16,477 | (11,664) | ||||||
Cash flows from financing activities: | |||||||||
Proceeds from issuance of Class A common stock | 525,610 | — | — | ||||||
Proceeds from issuance of pre-funded warrants | 283,170 | — | — | ||||||
Proceeds from warrant exercises | 13,000 | — | — | ||||||
Payment of issuance costs | (27,996) | — | — | ||||||
Proceeds from issuance of preferred stock | — | — | 28,949 | ||||||
Redemption of preferred stock | — | (500) | (85) | ||||||
Net cash provided by (used in) financing activities | 793,784 | (500) | 28,864 | ||||||
Net increase (decrease) in cash and cash equivalents | 105,146 | (2,232) | 1,678 | ||||||
Cash and cash equivalents, beginning of period | 3,923 | 6,155 | 2,086 | ||||||
Cash and cash equivalents, end of period | $109,069 | $3,923 | $3,764 | ||||||
Successor | Predecessor | ||||||||
Period from September 12, 2025 to September 30, 2025 | Period from January 1, 2025 to September 11, 2025 | Nine Months Ended September 30, 2024 | |||||||
Non-cash investing and financing activities: | |||||||||
Accrued but unpaid financing transaction costs | 1,262 | 770 | — | ||||||
Class A common stock exchanged for digital assets | 8,038 | — | — | ||||||
Class A common stock issued as part of business combination | 141,140 | — | — | ||||||
Assets and liabilities resulting from business combination: | |||||||||
Prepaid expenses | 27 | — | — | ||||||
Goodwill | 140,039 | — | — | ||||||
Intangible assets | 746 | — | — | ||||||
Other non-current assets | 57 | — | — | ||||||
Accounts payable and other liabilities | 129 | — | — | ||||||
Period from September 12, 2025 to September 30, 2025 | |||
Balance, beginning of period | $— | ||
Acquisitions | 683,046 | ||
Sales | — | ||
Aggregate cost basis | 683,046 | ||
Change in fair value | (10,133) | ||
Balance, end of period | $672,913 | ||
September 30, 2025 | December 31, 2024 | |||||
Approximate number of bitcoin held | 5,886 | — | ||||
Weighted average acquisition cost | 116,053 | — | ||||
Fair value per bitcoin | 114,332 | — | ||||
Consideration transferred: | |||
Strive, Inc. Class A common stock | $141,140 | ||
Assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 400 | ||
Prepaid expenses | 27 | ||
Intangible assets | 746 | ||
Other non-current assets | 57 | ||
Accounts payable and other liabilities | (129) | ||
Total identifiable net assets | $1,101 | ||
Goodwill | 140,039 | ||
Total | $141,140 | ||
December 31, 2024 | ||||||||||||
Expiration | Amortized Cost | Cost Basis | Accumulated Accretion | Fair Value | ||||||||
1/31/2025 | $4,243 | $4,177 | $66 | $4,243 | ||||||||
2/28/2025 | 4,163 | 4,149 | 14 | 4,163 | ||||||||
3/31/2025 | 4,202 | 4,167 | 35 | 4,202 | ||||||||
4/15/2025 | 4,147 | 4,128 | 19 | 4,147 | ||||||||
Total | $16,755 | $16,621 | $134 | $16,755 | ||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||
Period from September 12, 2025 to September 30, 2025 | Period from July 1, 2025 to September 11, 2025 | Three Months Ended September 30, 2024 | Period from September 12, 2025 to September 30, 2025 | Period from January 1, 2025 to September 11, 2025 | Nine Months Ended September 30, 2024 | |||||||||||||
Investment advisory fees | $246 | $1,283 | $950 | $246 | $4,187 | $2,560 | ||||||||||||
Other revenue | 9 | 5 | 34 | 9 | 35 | 55 | ||||||||||||
Total revenue | $255 | $1,288 | $984 | $255 | $4,222 | $2,615 | ||||||||||||
Period from September 12, 2025 to September 30, 2025 | ||||||
PIPE Traditional Warrants | PIPE Pre-Funded Warrants | |||||
PIPE warrants outstanding, beginning of period | — | — | ||||
Issued | 555,259,256 | 209,771,462 | ||||
Exercised | (9,629,629) | (32,525,000) | ||||
Expired | — | — | ||||
PIPE warrants outstanding, end of period | 545,629,627 | 177,246,462 | ||||
Successor | Predecessor | ||||||||
Period from September 12, 2025 to September 30, 2025 | Period from July 1, 2025 to September 11, 2025 | Three months ended September 30, 2024 | |||||||
Numerator: | |||||||||
Net loss | $(192,287) | $(14,366) | $(6,802) | ||||||
Denominator: | |||||||||
Basic and diluted weighted average shares of common stock outstanding | 872,349,183 | 2,325,783 | 2,225,816 | ||||||
Income (loss) per common share: | |||||||||
Basic income (loss) per common share | $(0.22) | $(6.18) | $(3.06) | ||||||
Diluted income (loss) per common share | $(0.22) | $(6.18) | $(3.06) | ||||||
Successor | Predecessor | ||||||||
Period from September 12, 2025 to September 30, 2025 | Period from January 1, 2025 to September 11, 2025 | Nine Months Ended September 30, 2024 | |||||||
Numerator: | |||||||||
Net loss | $(192,287) | $(26,990) | $(17,462) | ||||||
Denominator: | |||||||||
Basic and diluted weighted average shares of common stock outstanding | 872,349,183 | 2,299,243 | 2,200,848 | ||||||
Income (loss) per common share: | |||||||||
Basic income (loss) per common share | $(0.22) | $(11.74) | $(7.93) | ||||||
Diluted income (loss) per common share | $(0.22) | $(11.74) | $(7.93) | ||||||
Period from September 12, 2025 to September 30, 2025 (Successor) | |||||||||
Asset Management | Corporate & Other | Total Consolidated | |||||||
Revenues: | |||||||||
Investment advisory fees | $246 | $— | $246 | ||||||
Other revenue | — | 9 | 9 | ||||||
Total revenues | 246 | 9 | 255 | ||||||
Operating expenses: | |||||||||
Fund management and administration | 282 | — | 282 | ||||||
Employee compensation and benefits | 3,129 | 15,591 | 18,720 | ||||||
General and administrative expense | 91 | 354 | 445 | ||||||
Marketing and advertising | 3 | 15 | 18 | ||||||
Depreciation and amortization | — | 12 | 12 | ||||||
Total operating expenses | 3,505 | 15,972 | 19,477 | ||||||
Investment gains/(losses): | |||||||||
Net unrealized loss on digital assets | — | (10,133) | (10,133) | ||||||
Other derivative loss | — | (14,731) | (14,731) | ||||||
Net investment gains/(losses) | — | (24,864) | (24,864) | ||||||
Net operating loss | (3,259) | (40,827) | (44,086) | ||||||
Other income/(expense): | |||||||||
Other income | 3 | 65 | 68 | ||||||
Transaction costs | — | (7,484) | (7,484) | ||||||
Goodwill and intangible asset impairment | — | (140,785) | (140,785) | ||||||
Total other income/(expense) | 3 | (148,204) | (148,201) | ||||||
Net loss before income taxes | (3,256) | (189,031) | (192,287) | ||||||
Income tax benefit/(expense) | — | — | — | ||||||
Net loss | $(3,256) | $(189,031) | $(192,287) | ||||||
Period from July 1, 2025 to September 11, 2025 (Predecessor) | |||||||||
Asset Management | Corporate & Other | Total Consolidated | |||||||
Revenues: | |||||||||
Investment advisory fees | $1,283 | $— | $1,283 | ||||||
Other revenue | — | 5 | 5 | ||||||
Total revenues | 1,283 | 5 | 1,288 | ||||||
Operating expenses: | |||||||||
Fund management and administration | 1,251 | — | 1,251 | ||||||
Employee compensation and benefits | 1,550 | 1,601 | 3,151 | ||||||
General and administrative expense | 252 | 619 | 871 | ||||||
Marketing and advertising | 10 | 58 | 68 | ||||||
Depreciation and amortization | — | 43 | 43 | ||||||
Total operating expenses | 3,063 | 2,321 | 5,384 | ||||||
Period from July 1, 2025 to September 11, 2025 (Predecessor) | |||||||||
Asset Management | Corporate & Other | Total Consolidated | |||||||
Investment gains/(losses): | |||||||||
Net unrealized loss on digital assets | — | — | — | ||||||
Other derivative loss | — | — | — | ||||||
Net investment gains/(losses) | — | — | — | ||||||
Net operating loss | (1,780) | (2,316) | (4,096) | ||||||
Other income/(expense): | |||||||||
Other income/(expense) | 15 | (5) | 10 | ||||||
Transaction costs | — | (10,280) | (10,280) | ||||||
Goodwill and intangible asset impairment | — | — | — | ||||||
Total other income/(expense) | 15 | (10,285) | (10,270) | ||||||
Net loss before income taxes | (1,765) | (12,601) | (14,366) | ||||||
Income tax benefit/(expense) | — | — | — | ||||||
Net loss | $(1,765) | $(12,601) | $(14,366) | ||||||
Three Months Ended September 30, 2024 (Predecessor) | |||||||||
Asset Management | Corporate & Other | Total Consolidated | |||||||
Revenues: | |||||||||
Investment advisory fees | $950 | $— | $950 | ||||||
Other revenue | 34 | — | 34 | ||||||
Total revenues | 984 | — | 984 | ||||||
Operating expenses: | |||||||||
Fund management and administration | 1,272 | — | 1,272 | ||||||
Employee compensation and benefits | 2,182 | — | 2,182 | ||||||
General and administrative expense | 4,404 | — | 4,404 | ||||||
Marketing and advertising | 89 | — | 89 | ||||||
Depreciation and amortization | 47 | — | 47 | ||||||
Total operating expenses | 7,994 | — | 7,994 | ||||||
Investment gains/(losses): | |||||||||
Net unrealized loss on digital assets | — | — | — | ||||||
Other derivative loss | — | — | — | ||||||
Net investment gains/(losses) | — | — | — | ||||||
Net operating loss | (7,010) | — | (7,010) | ||||||
Other income/(expense): | |||||||||
Other income | 208 | — | 208 | ||||||
Transaction costs | — | — | — | ||||||
Goodwill and intangible asset impairment | — | — | — | ||||||
Total other income/(expense) | 208 | — | 208 | ||||||
Net loss before income taxes | (6,802) | — | (6,802) | ||||||
Income tax benefit/(expense) | — | — | — | ||||||
Net loss | $(6,802) | $— | $(6,802) | ||||||
Period from September 12, 2025 to September 30, 2025 (Successor) | |||||||||
Asset Management | Corporate & Other | Total Consolidated | |||||||
Revenues: | |||||||||
Investment advisory fees | $246 | $— | $246 | ||||||
Other revenue | — | 9 | 9 | ||||||
Total revenues | 246 | 9 | 255 | ||||||
Operating expenses: | |||||||||
Fund management and administration | 282 | — | 282 | ||||||
Employee compensation and benefits | 3,129 | 15,591 | 18,720 | ||||||
General and administrative expense | 91 | 354 | 445 | ||||||
Marketing and advertising | 3 | 15 | 18 | ||||||
Depreciation and amortization | — | 12 | 12 | ||||||
Total operating expenses | 3,505 | 15,972 | 19,477 | ||||||
Investment gains/(losses): | |||||||||
Net unrealized loss on digital assets | — | (10,133) | (10,133) | ||||||
Other derivative loss | — | (14,731) | (14,731) | ||||||
Net investment gains/(losses) | — | (24,864) | (24,864) | ||||||
Net operating loss | (3,259) | (40,827) | (44,086) | ||||||
Other income/(expense): | |||||||||
Other income | 3 | 65 | 68 | ||||||
Transaction costs | — | (7,484) | (7,484) | ||||||
Goodwill and intangible asset impairment | — | (140,785) | (140,785) | ||||||
Total other income/(expense) | 3 | (148,204) | (148,201) | ||||||
Net loss before income taxes | (3,256) | (189,031) | (192,287) | ||||||
Income tax benefit/(expense) | — | — | — | ||||||
Net loss | $(3,256) | $(189,031) | $(192,287) | ||||||
Period from January 1, 2025 to September 11, 2025 (Predecessor) | |||||||||
Asset Management | Corporate & Other | Total Consolidated | |||||||
Revenues: | |||||||||
Investment advisory fees | $4,187 | $— | $4,187 | ||||||
Other revenue | 7 | 28 | 35 | ||||||
Total revenues | 4,194 | 28 | 4,222 | ||||||
Operating expenses: | |||||||||
Fund management and administration | 4,250 | — | 4,250 | ||||||
Employee compensation and benefits | 4,861 | 2,361 | 7,222 | ||||||
General and administrative expense | 2,672 | 1,557 | 4,229 | ||||||
Marketing and advertising | 88 | 143 | 231 | ||||||
Depreciation and amortization | 52 | 97 | 149 | ||||||
Total operating expenses | 11,923 | 4,158 | 16,081 | ||||||
Period from January 1, 2025 to September 11, 2025 (Predecessor) | |||||||||
Asset Management | Corporate & Other | Total Consolidated | |||||||
Investment gains/(losses): | |||||||||
Net unrealized loss on digital assets | — | — | — | ||||||
Other derivative loss | — | — | — | ||||||
Net investment gains/(losses) | — | — | — | ||||||
Net operating loss | (7,729) | (4,130) | (11,859) | ||||||
Other income/(expense): | |||||||||
Other income | 360 | 226 | 586 | ||||||
Transaction costs | — | (15,717) | (15,717) | ||||||
Goodwill and intangible asset impairment | — | — | — | ||||||
Total other income/(expense) | 360 | (15,491) | (15,131) | ||||||
Net loss before income taxes | (7,369) | (19,621) | (26,990) | ||||||
Income tax benefit/(expense) | — | — | — | ||||||
Net loss | $(7,369) | $(19,621) | $(26,990) | ||||||
Nine Months Ended September 30, 2024 (Predecessor) | |||||||||
Asset Management | Corporate & Other | Total Consolidated | |||||||
Revenues: | |||||||||
Investment advisory fees | $2,560 | $— | $2,560 | ||||||
Other revenue | 55 | — | 55 | ||||||
Total revenues | 2,615 | — | 2,615 | ||||||
Operating expenses: | |||||||||
Fund management and administration | 3,488 | — | 3,488 | ||||||
Employee compensation and benefits | 6,465 | — | 6,465 | ||||||
General and administrative expense | 10,040 | — | 10,040 | ||||||
Marketing and advertising | 443 | — | 443 | ||||||
Depreciation and amortization | 141 | — | 141 | ||||||
Total operating expenses | 20,577 | — | 20,577 | ||||||
Investment gains/(losses): | |||||||||
Net unrealized loss on digital assets | — | — | — | ||||||
Other derivative loss | — | — | — | ||||||
Net investment gains/(losses) | — | — | — | ||||||
Net operating loss | (17,962) | — | (17,962) | ||||||
Other income/(expense): | |||||||||
Other income | 500 | — | 500 | ||||||
Transaction costs | — | — | — | ||||||
Goodwill and intangible asset impairment | — | — | — | ||||||
Total other income/(expense) | 500 | — | 500 | ||||||
Net loss before income taxes | (17,462) | — | (17,462) | ||||||
Income tax benefit/(expense) | — | — | — | ||||||
Net loss | $(17,462) | $— | $(17,462) | ||||||
September 30, 2025 (Successor) | December 31, 2024 (Predecessor) | |||||
Asset Management | $1,471 | $28,197 | ||||
Corporate & Other | 791,105 | — | ||||
Total | $792,576 | $28,197 | ||||
December 31, 2024 | December 31, 2023 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $6,154,615 | $2,086,142 | ||||
Short-term investments | 16,754,951 | 13,563,852 | ||||
Prepaid expenses | 351,313 | 364,733 | ||||
Other assets | 500,000 | 145,700 | ||||
Total current assets | 23,760,879 | 16,160,427 | ||||
Property and equipment, net | 951,362 | 1,094,352 | ||||
Intangible assets, net | 187,207 | 212,168 | ||||
Right-of-use lease asset | 1,786,270 | 2,679,522 | ||||
Loans receivable | 1,455,580 | — | ||||
Deposits | 56,243 | 47,595 | ||||
Total assets | $28,197,541 | $20,194,064 | ||||
Liabilities | ||||||
Current liabilities: | ||||||
Compensation and benefits payable | $1,112,032 | $216,409 | ||||
Accounts payable and other liabilities | 2,226,673 | 1,299,227 | ||||
Total current liabilities | 3,338,705 | 1,515,636 | ||||
Operating lease liabilities | 1,516,316 | 2,620,776 | ||||
Total liabilities | 4,855,021 | 4,136,412 | ||||
Stockholders’ equity | ||||||
Preferred stock, $0.00001 par value; 1,161,650 and 789,393 shares authorized; 1,158,802 and 787,598 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively | 72,488,497 | 43,623,763 | ||||
Common stock, $0.00001 par value | ||||||
Class A, 2,000,000 shares authorized, issued and outstanding as of December 31, 2024 and December 31, 2023, respectively | 20 | 20 | ||||
Class B, 2,339,765 and 1,786,419 shares authorized; 400,970 shares issued and outstanding (inclusive of 125,308 and 225,548 unvested shares) as of December 31, 2024 and December 31, 2023, respectively | 4 | 4 | ||||
Accumulated deficit | (49,146,001) | (27,566,135) | ||||
Total stockholders’ equity | 23,342,520 | 16,057,652 | ||||
Total liabilities and stockholders’ equity | $28,197,541 | $20,194,064 | ||||
Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||
Revenue | ||||||
Investment advisory fees | $3,591,727 | $2,310,589 | ||||
Other income | 58,379 | 139,150 | ||||
Total revenues | 3,650,106 | 2,449,739 | ||||
Operating expenses: | ||||||
Fund management and administration | 4,866,902 | 3,665,477 | ||||
Employee compensation and benefits | 9,135,102 | 9,057,331 | ||||
General and administrative expense | 11,248,243 | 7,016,302 | ||||
Marketing and advertising | 861,618 | 634,179 | ||||
Depreciation and amortization | 192,211 | 98,327 | ||||
Total operating expenses | 26,304,076 | 20,471,616 | ||||
Operating loss | (22,653,970) | (18,021,877) | ||||
Other income | ||||||
Interest and dividend income | 794,839 | 1,111,461 | ||||
Gain on lease remeasurement | 279,265 | — | ||||
Loss before income taxes | (21,579,866) | (16,910,416) | ||||
Income tax benefit | — | — | ||||
Net loss | $(21,579,866) | $(16,910,416) | ||||
Weighted average number of Class A and Class B common shares outstanding: | ||||||
Basic | 2,213,424 | 2,094,956 | ||||
Diluted | 2,213,424 | 2,094,956 | ||||
Net loss per share attributable to Class A and Class B common shareholders: | ||||||
Basic | $(9.75) | $(8.07) | ||||
Diluted | $(9.75) | $(8.07) | ||||
Preferred Stock | Common Stock Class A | Common Stock Class B | Retained Earnings (Accumulated Deficit) | Total Stockholders’ Equity | ||||||||||||||||||||
Preferred Stock Shares | Preferred Stock | Common Stock Shares | Common Stock Par Value | Common Stock Shares | Common Stock Par Value | |||||||||||||||||||
Balance as of December 31, 2022 | 788,155 | $43,668,763 | 2,000,000 | $20 | 400,970 | $4 | $(10,655,719) | $33,013,068 | ||||||||||||||||
Redemption of Series A-2 Preferred Stock | (557) | (45,000) | — | — | — | — | — | (45,000) | ||||||||||||||||
Net income (loss) | — | — | — | — | — | — | (16,910,416) | (16,910,416) | ||||||||||||||||
Balance as of December 31, 2023 | 787,598 | $43,623,763 | 2,000,000 | $20 | 400,970 | $4 | $(27,566,135) | $16,057,652 | ||||||||||||||||
Net proceeds from sale of Series B Preferred Stock | 372,257 | 28,949,734 | — | — | — | — | — | 28,949,734 | ||||||||||||||||
Redemption of Series A-2 Preferred Stock | (1,053) | (85,000) | — | — | — | — | — | (85,000) | ||||||||||||||||
Net income (loss) | — | — | — | — | — | — | (21,579,866) | (21,579,866) | ||||||||||||||||
Balance as of December 31, 2024 | 1,158,802 | $72,488,497 | 2,000,000 | $20 | 400,970 | $4 | $(49,146,001) | $23,342,520 | ||||||||||||||||
Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||
Cash flows from operating activities: | ||||||
Net loss | $(21,579,866) | $(16,910,416) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
Depreciation and amortization | 192,211 | 98,327 | ||||
Accretion of discount on investments, net | (14,601) | (82,027) | ||||
Reduction of right-of-use lease assets and operating lease liabilities | 68,057 | 113,788 | ||||
Gain on lease remeasurement | (279,265) | — | ||||
Changes in operating assets and liabilities: | ||||||
Receivables, net | — | 10,000 | ||||
Due from related party | — | 79,627 | ||||
Prepaid expenses | 13,420 | 500,003 | ||||
Funding of loans receivable | (1,455,580) | — | ||||
Deposits | (8,648) | 52,050 | ||||
Other assets | (354,300) | (145,700) | ||||
Compensation and benefits payable | 895,623 | (352,213) | ||||
Accounts payable and other liabilities | 927,446 | 220,987 | ||||
Net cash used in operating activities | (21,595,503) | (16,415,574) | ||||
Cash flows from investing activities: | ||||||
Purchases of property and equipment | (24,260) | (973,399) | ||||
Purchase of short-term investments | (32,202,943) | (44,609,650) | ||||
Proceeds from short-term investments | 29,026,445 | 46,110,696 | ||||
Net cash provided by (used in) investing activities | (3,200,758) | 527,647 | ||||
Cash flows from financing activities: | ||||||
Proceeds from sale of preferred stock | 28,949,734 | 5,048,749 | ||||
Redemption of preferred stock | (85,000) | (45,000) | ||||
Net cash provided by financing activities | 28,864,734 | 5,003,749 | ||||
Net increase (decrease) in cash and cash equivalents | 4,068,473 | (10,884,178) | ||||
Cash and cash equivalents – beginning of year | 2,086,142 | 12,970,320 | ||||
Cash and cash equivalents – end of year | $6,154,615 | $2,086,142 | ||||
Supplemental disclosure of cash flow information: | ||||||
Cash paid for interest | $— | $— | ||||
Cash paid (received) for income taxes, net | $— | $— | ||||
Property and equipment: | |||
Hardware and equipment | 5 years | ||
Furniture and fixtures | 7 years | ||
Tenant improvements | Lesser of the remaining lease term or 15 years | ||
Software | 3 years | ||
Hosting arrangements | Term of the hosting arrangement | ||
Intangible assets: | |||
Domain names | 10 years | ||
Level 1: | Quoted (unadjusted) prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
Level 2: | Inputs other than quoted prices that are either directly or indirectly observable, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Level 3: | Inputs that are generally unobservable, supported by little or no market activity, and typically reflect management’s estimates or assumptions that market participants would use in pricing the asset or liability. |
December 31, 2024 | ||||||||||||
Expiration | Amortized Cost | Cost Basis | Accumulated Accretion | Fair Value | ||||||||
1/31/2025 | $4,243,120 | $4,177,122 | $65,999 | $4,243,121 | ||||||||
2/28/2025 | 4,163,021 | 4,148,815 | 14,205 | 4,163,020 | ||||||||
3/31/2025 | 4,202,114 | 4,167,208 | 34,907 | 4,202,115 | ||||||||
4/15/2025 | 4,146,696 | 4,127,568 | 19,128 | 4,146,696 | ||||||||
$16,754,951 | $16,620,713 | $134,239 | $16,754,952 | |||||||||
December 31, 2023 | ||||||||||||
Expiration | Amortized Cost | Cost Basis | Accumulated Accretion | Fair Value | ||||||||
1/11/2024 | $1,090,359 | $1,071,806 | $18,555 | $1,090,361 | ||||||||
2/29/2024 | 4,625,995 | 4,559,987 | 66,008 | 4,625,995 | ||||||||
3/7/2024 | 3,338,620 | 3,311,033 | 27,587 | 3,338,620 | ||||||||
4/11/2024 | 1,660,049 | 1,652,561 | 7,488 | 1,660,049 | ||||||||
5/2/2024 | 2,848,829 | 2,848,829 | — | 2,848,829 | ||||||||
$13,563,852 | $13,444,216 | $119,638 | $13,563,854 | |||||||||
December 31, 2024 | December 31, 2023 | |||||
Hardware | $63,167 | $63,167 | ||||
Equipment | 118,088 | 118,088 | ||||
Furniture & Fixtures | 142,962 | 142,962 | ||||
Tenant Improvements | 579,374 | 579,374 | ||||
Software | 264,662 | 208,942 | ||||
Construction in Progress | 23,725 | 55,185 | ||||
Total | $1,191,978 | $1,167,718 | ||||
Accumulated depreciation | (240,616) | (73,366) | ||||
Property and equipment, net | $951,362 | $1,094,352 | ||||
December 31, 2024 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Remaining Weighted Average Estimated Useful Life | |||||||||
Domain name | $249,609 | $62,402 | $187,207 | 7.6 | ||||||||
$249,609 | $62,402 | $187,207 | ||||||||||
December 31, 2023 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Remaining Weighted Average Estimated Useful Life | |||||||||
Domain name | $249,609 | $37,441 | $212,168 | 8.6 | ||||||||
$249,609 | $37,441 | $212,168 | ||||||||||
December 31, 2024 | |||
2025 | $24,961 | ||
2026 | 24,961 | ||
2027 | 24,961 | ||
2028 | 24,961 | ||
2029 | 24,961 | ||
Thereafter | 62,402 | ||
Total | $187,207 | ||
Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||
Fixed lease expense(1) | $365,400 | $383,832 | ||||
Variable lease expense(2) | 212,414 | 126,523 | ||||
Total | $577,414 | $510,355 | ||||
(1) | Amounts include short-term lease expense of $14,700 and $31,900 for the years ended December 31, 2024 and December 31, 2023, respectively. |
(2) | Amount includes operating lease payments, which may be adjusted based on usage, changes in an index or market rate, as well as common area maintenance charges and other variable costs not included in the measurement of ROU assets and operating lease liabilities. |
Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||
Supplemental cash flow information: | ||||||
Operating cash outflows from operating leases | $273,927 | $238,294 | ||||
Change in ROU assets from remeasurement | $1,103,199 | $— | ||||
December 31, 2024 | |||
2025 | $283,535 | ||
2026 | 292,062 | ||
2027 | 300,843 | ||
2028 | 309,878 | ||
2029 | 319,168 | ||
Thereafter | 1,075,771 | ||
Total undiscounted operating lease payments | $2,581,257 | ||
Less: imputed interest | (794,987) | ||
Present value of operating lease liability | $1,786,270 | ||
December 31, 2024 | December 31, 2023 | |||||
Accounts payable and accrued liabilities | $1,956,493 | $1,027,754 | ||||
Current portion of operating lease liability | 269,954 | 261,192 | ||||
Other liabilities | 226 | 10,281 | ||||
Total | $2,226,673 | $1,299,227 | ||||
Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||
Investment advisory revenue – ETFs | $3,591,727 | $2,310,589 | ||||
Other revenue | 58,379 | 139,150 | ||||
Total | $3,650,106 | $2,449,739 | ||||
Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||
Net loss attributable to common shareholders | $(21,579,866) | $(16,910,416) | ||||
Basic and diluted weighted-average shares outstanding | 2,213,424 | 2,094,956 | ||||
Basic loss per share | $(9.75) | $(8.07) | ||||
Diluted loss per share | $(9.75) | $(8.07) | ||||
Outstanding at | RSAs(1) | Weighted Average Grant Date Fair Value | ||||
December 31, 2022 | 400,970 | $0.00125 | ||||
Granted | — | — | ||||
Vested | (175,422) | — | ||||
Forfeited | — | — | ||||
December 31, 2023 | 225,548 | $0.00125 | ||||
Granted | — | — | ||||
Vested | (100,240) | — | ||||
Forfeited | — | — | ||||
December 31, 2024 | 125,308 | $0.00125 | ||||
(1) | Initial grant prior to 10:1 stock split effective immediately prior to Series A-2 Financing. Amounts shown reflect current values. |
Outstanding at | RSUs | Weighted Average Grant Date Fair Value | ||||
December 31, 2022 | 161,283 | $37.93550 | ||||
Granted | 150,251 | 37.93550 | ||||
Vested | — | — | ||||
Forfeited | (84,091) | 37.93550 | ||||
December 31, 2023 | 227,443 | $37.93550 | ||||
Granted | 372,989 | 39.03601 | ||||
Vested | — | — | ||||
Forfeited | (56,422) | 37.93550 | ||||
December 31, 2024 | 544,010 | $38.69004 | ||||
Year Ended December 31, 2024 | Year Ended December 31, 2023 | |||||
Federal income tax rate | 21.0% | 21.0% | ||||
Permanent differences | (0.1)% | —% | ||||
Change in valuation allowance | (20.9)% | (21.0)% | ||||
Effective income tax rate | 0.0% | 0.0% | ||||
December 31, 2024 | December 31, 2023 | |||||
Deferred income tax assets/liabilities | ||||||
Deferred tax assets: | ||||||
Net operating loss carryforwards | $11,722,633 | $6,508,674 | ||||
Other accruals | 72,030 | — | ||||
Lease liability | 375,117 | 605,213 | ||||
Capitalized start-up costs | 34,679 | 37,549 | ||||
Deferred revenue | — | 2,006 | ||||
Charitable contribution carryforward | 34,500 | 43,575 | ||||
Other | 99,183 | 5,406 | ||||
Gross deferred tax assets | 12,338,142 | 7,202,423 | ||||
Less: valuation allowances | (11,828,053) | (6,492,403) | ||||
Deferred tax assets, net | $510,089 | $710,020 | ||||
Deferred tax liabilities: | ||||||
Right of use asset | $(375,117) | $(562,698) | ||||
Property and equipment | (126,236) | (142,080) | ||||
December 31, 2024 | December 31, 2023 | |||||
Intangible assets | (8,736) | (5,242) | ||||
Gross deferred tax liabilities | $(510,089) | $(710,020) | ||||
Net deferred tax asset | $— | $— | ||||
Page | ||||||
ARTICLE 1 Definitions | ||||||
ARTICLE 2 Closing; Merger | ||||||
ARTICLE 3 Organizational Documents; Directors and Officers | ||||||
ARTICLE 4 Representations and Warranties of the Company | ||||||
Page | ||||||
ARTICLE 5 Representations and Warranties of Parent | ||||||
ARTICLE 6 Covenants of the Company | ||||||
ARTICLE 7 Covenants of Parent | ||||||
Page | ||||||
ARTICLE 8 Covenants of Parent and the Company | ||||||
ARTICLE 9 Conditions to the Merger | ||||||
ARTICLE 10 Termination | ||||||
ARTICLE 11 Miscellaneous | ||||||
EXHIBITS |
Exhibit A - Amended and Restated Certificate of Incorporation of Surviving Corporation |
Term | Section | ||
Agreement | Preamble | ||
Alternate Company Acquisition Agreement | 6.03(i) | ||
Anti-Money Laundering Laws | 4.14(a) | ||
Bankruptcy and Equity Exceptions | 4.02(a) | ||
Burdensome Condition | 8.01(c) | ||
Certificate of Merger | 2.02(a) | ||
Closing | 2.01 | ||
Closing Date | 2.01 | ||
Collection Expenses | 10.03(c) | ||
Common Merger Consideration | 2.03 | ||
Common Stock Certificates | 2.04(a) | ||
Company | Preamble | ||
Company Acquisition Proposal | 10.03(a)(ii) | ||
Company Adverse Recommendation Change | 6.03(a) | ||
Company Approval Time | 6.03(b) | ||
Company Board Recommendation | 4.02(b) | ||
Company Indemnified Parties | 7.03(a) | ||
Company Intervening Event | 6.03(g) | ||
Company Material Contract | 4.17(a) | ||
Company Notes | 6.04 | ||
Company Option | 2.05(a) | ||
Company Organizational Documents | 4.01 | ||
Company Permits | 4.13(a) | ||
Company Registered IP | 4.21(a) | ||
Company Regulatory Agreement | 4.14(g) | ||
Company SEC Documents | 4.07(b) | ||
Company Securities | 4.05(a) | ||
Company Stockholder Approval | 4.02(a) | ||
Term | Section | ||
Company Stockholder Meeting | 8.03(a) | ||
Company Subsidiary Securities | 4.06(b) | ||
Company Superior Proposal | 6.03(f) | ||
Company Termination Fee | 10.03(a)(ii) | ||
Confidentiality Agreement | 6.02(a) | ||
Converted Option | 2.05(a) | ||
Delaware Law | 2.02(a) | ||
Effective Time | 2.02(a) | ||
e-mail | 11.01 | ||
End Date | 10.01(b)(i) | ||
Exchange Agent | 2.04(a) | ||
Exchange Fund | 2.04(a) | ||
Exchange Ratio | 2.03 | ||
Excluded Shares | 2.03 | ||
Field Action | 4.16(g) | ||
Indenture | 6.04 | ||
Information Statement/Proxy Statement/Prospectus | 8.02(a) | ||
internal controls | 4.07(g) | ||
Lease | 4.22 | ||
Merger | 2.02(b) | ||
Merger Sub | 7.06 | ||
Mergers | Recitals | ||
Parent | Preamble | ||
Parent Securities | 5.05(a) | ||
Parent Material Contract | 5.15 | ||
Parent Organizational Documents | 5.01 | ||
Parent Permits | 5.13(a) | ||
Parent Qualified Plan | 7.04(d) | ||
Parent Registered IP | 5.19(a) | ||
Parent Regulatory Agreement | 5.14(f) | ||
Parent RSU Awards | 5.05(a) | ||
Parent SEC Documents | 5.07(b) | ||
Parent Stockholder Approval | Recitals | ||
Parent Stockholder Approval Deadline | 7.05 | ||
Parent Subsidiary Securities | 5.06(b) | ||
Premium Cap | 7.03(b) | ||
principal executive officer | 4.07(f) | ||
principal financial officer | 4.07(f) | ||
QPAM Exemption | 4.14(e) | ||
Registration Statement | 8.02(a) | ||
Regulation S-K | 4.11 | ||
Regulation S-X | 6.01(m) | ||
Regulatory Agencies | 4.07(a) | ||
Related Party | 4.17(a)(ix) | ||
Related Party Contract | 4.17(a)(ix) | ||
Release | 8.04 | ||
Representatives | 6.03(a) | ||
Sanctions | 4.14(b) | ||
Second Merger | Recitals | ||
Second Merger Sub | Preamble | ||
Second Surviving LLC | Recitals | ||
Surviving Corporation | 2.02(b) | ||
Transaction Litigation | 8.07 | ||
Uncertificated Common Shares | 2.04(a) | ||
If to the Company, to: | |||||||||
Semler Scientific, Inc. | |||||||||
2340-2348 Walsh Avenue, Suite 2344 | |||||||||
Santa Clara, California 95051 | |||||||||
Attention: | Renae Cormier | ||||||||
Email: | rcormier@SemlerScientific.com | ||||||||
with a copy to (which shall not constitute notice): | |||||||||
Goodwin Procter LLP | |||||||||
620 Eighth Avenue | |||||||||
New York, New York 10018 | |||||||||
Attention: | Michael R. Patrone | ||||||||
Marianne C. Sarrazin | |||||||||
Email: | MPatrone@goodwinlaw.com | ||||||||
MSarrazin@goodwinlaw.com | |||||||||
If to Parent or Merger Sub and, post-closing, the Surviving Corporation, to: | |||||||||||||
Strive, Inc. | |||||||||||||
100 Crescent Ct, Suite 1100 | |||||||||||||
Dallas, Texas 75201 | |||||||||||||
Attention: | Logan Beirne | ||||||||||||
Email: | logan.beirne@strive.com | ||||||||||||
with a copy to (which shall not constitute notice): | |||||||||||||
Davis Polk & Wardwell LLP | |||||||||||||
450 Lexington Avenue | |||||||||||||
New York, New York 10017 | |||||||||||||
Attn: | Brian Wolfe | ||||||||||||
Evan Rosen | |||||||||||||
Email: | brian.wolfe@davispolk.com | ||||||||||||
evan.rosen@davispolk.com | |||||||||||||
STRIVE, INC. | ||||||
By: | /s/ Matthew Cole | |||||
Name: Matthew Cole | ||||||
Title: Chief Executive Officer | ||||||
SEMLER SCIENTIFIC, INC. | ||||||
By: | /s/ Eric Semler | |||||
Name: Eric Semler | ||||||
Title: Chairman of the Board | ||||||
1. | Amendments to the Merger Agreement. Each of Strive, Merger Sub and the Company covenants and agrees that, notwithstanding anything in the Merger Agreement to the contrary, the Second Merger will not be consummated, and in furtherance thereof, the Merger Agreement is hereby amended: |
a. | the fifth recital to the Merger Agreement shall be deemed deleted in its entirety; |
b. | the sixth recital to the Merger Agreement shall be amended and restated in its entirety as follows: |
c. | any reference to the terms “Second Merger Sub”, “Second Merger,” “Second Surviving LLC” and “Second Effective Time” in the Merger Agreement shall be deemed deleted in their entirety and such provisions of the Merger Agreement shall, from and after the date hereof, be read as if such terms were not originally referenced therein; |
d. | references to the term “Mergers” shall, from and after the date hereof, be deemed only to refer to the Merger, without also including the Second Merger; |
e. | Section 4.18(j) of the Merger Agreement shall be amended and restated in its entirety as follows: |
f. | Section 5.16(j) of the Merger Agreement shall be amended and restated in its entirety as follows: |
g. | Section 5.16(k) of the Merger Agreement shall be deleted in its entirety; |
h. | Section 8.10(b) of the Merger Agreement shall be amended and restated in its entirety as follows: |
i. | Section 8.10(e) of the Merger Agreement shall be amended and restated in its entirety as follows: |
j. | Section 8.11 of the Merger Agreement shall be amended and restated in its entirety as follows: |
k. | The notice party for the Company set forth in Section 11.01 shall be amended and restated in its entirety as follows: |
2. | Expenses. The parties acknowledge and agree that each party shall bear its own expenses incurred in the preparation, negotiation and execution of this Amendment; provided that, notwithstanding the foregoing, Strive acknowledges and agrees that it shall be responsible for, and shall pay on behalf of or reimburse, the Company, as applicable, for the first $50,000 in reasonable and documented out-of-pocket expenses (including reasonable and documented out-of-pocket expenses of third party financial and legal advisors) incurred by the Company in connection with the preparation, negotiation and execution of this Amendment. |
3. | No Other Amendments. Except as expressly set forth in this Amendment, the Merger Agreement and the Schedules thereto remain unchanged and shall continue in full force and effect. This Amendment shall not constitute a waiver of any term or condition of the Merger Agreement. |
4. | Miscellaneous. Section 11.01 (Notices), Section 11.03 (Amendments and Waivers), Section 11.06 (Finding Effect; Benefit; Assignment), Section 11.07 (Governing Law), Section 11.08 (Jurisdiction/Venue), Section 11.09 (WAIVER OF JURY TRIAL), Section 11.10 (Counterparts; Effectiveness), Section 11.11 (Entire Agreement), Section 11.12 (Severability) and Section 11.13 (Specific Performance) of the Merger Agreement are incorporated herein by reference, mutatis mutandis. |
STRIVE, INC. | ||||||
By: | /s/ Matthew Cole | |||||
Name: | Matthew Cole | |||||
Title: | Chief Executive Officer | |||||
STRIVE MERGER SUB, INC. | ||||||
By: | /s/ Matthew Cole | |||||
Name: | Matthew Cole | |||||
Title: | President | |||||
SEMLER SCIENTIFIC, INC. | ||||||
By: | /s/ Eric Semler | |||||
Name: | Eric Semler | |||||
Title: | Executive Chairman | |||||
SEMLER SCIENTIFIC, INC. | ||||||
Name: | ||||||
Title: | ||||||
![]() | LionTree Advisors LLC 660 Madison Avenue, 15th Floor New York, NY 10065 | ||
(i) | reviewed a draft, dated September 22, 2025, of the Agreement; |
(ii) | reviewed certain publicly available business and financial information relating to the Acquiror and the Company; |
(iii) | reviewed certain historical financial information and other data relating to the Company that were provided to us by the management of the Company, approved for our use by the Company, and not publicly available; |
(iv) | conducted discussions with members of the senior management of the Company concerning the business, operations, historical financial results, and financial prospects of the Company and the Acquiror and the Transaction; |
(v) | conducted limited discussions with members of the senior management of the Acquiror concerning the business and financial prospects of the Acquiror; |
(vi) | reviewed current and historical market prices of the Company Stock and the Acquiror Stock; |
(vii) | reviewed certain publicly available financial and stock market data with respect to certain other companies; |
(viii) | reviewed and compared data regarding the premiums paid in certain other transactions; |
(ix) | reviewed certain financial data of the Company and the Acquiror and compared that data with similar data for certain other companies; |
(x) | reviewed certain pro forma effects relating to the Transaction; |
(xi) | reviewed the Management Provided Assumptions (as defined below); and |
(xii) | conducted such other financial studies, analyses and investigations, and considered such other information, as we deemed necessary or appropriate. |
Very truly yours, ![]() LIONTREE ADVISORS LLC | |||