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ACQUISITION | 9 Months Ended
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Sep. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
ACQUISITION | 15. ACQUISITION On April 11, 2025, the Company, Lyvecom and the Lyvecom Shareholders entered into a definitive Stock Purchase Agreement with respect to the Acquisition that incorporated the terms of the Binding Term Sheet (the “Purchase Agreement”). The Acquisition closed on April 11, 2025. The purchase price paid for the shares of capital stock of Lyvecom was $3,000 in cash, the repayment of $1,125 to certain investors in Lyvecom’s Simple Agreement for Future Equity (S.A.F.E.) instruments, the payment of $100 to a Lyvecom related party to satisfy an existing loan to Lyvecom, and the issuance of 184,812 restricted shares of the Company’s common stock (the “Restricted Shares”) having a value of $1,000 on the closing date based on a 30-day volume weighted average price of approximately $5.41 per share. The Restricted Shares are subject to a lock-up agreement and a leak-out agreement. The Purchase Agreement also provides for an earn-out payment to the Lyvecom Shareholders of up to an additional $3,000 in cash over a 24-month earn-out period based on Lyvecom’s achievement of various performance metrics. The following is our preliminary allocation of the fair value of the purchase price as of April 11, 2025: SCHEDULE OF PRELIMINARY ALLOCATION OF FAIR VALUE PURCHASE PRICE
Current assets |  | $ | 47 |
Intangible assets |  |  | 934 |
Accrued liabilities |  |  | (65 | )
Contingent liability |  |  | (600 | )
Deferred tax liability |  |  | (256 | )
Total net assets acquired |  |  | 60 |
Goodwill |  |  | 5,165 |
Total purchase price |  | $ | 5,225 |
We believe that in this acquisition goodwill represents the existing customer base of Lyvecom and the added synergy profitability expansion when we implement the Company’s processes into the Company. Goodwill will not be amortized but will be tested at least annually for impairment. None of the recognized goodwill will be deductible for tax purposes. In connection with this acquisition, we incurred $35 and $296 in acquisition-related expenses during the three and nine months ended September 30, 2025, respectively, which is included in selling, general and administrative expenses in our unaudited condensed consolidated statements of operations. From the date of acquisition until September 30, 2025, Lyvecom contributed revenues of $82 and $158 during the three and nine months ended September 30, 2025, respectively, which are included in our unaudited condensed consolidated statements of operations. The following tables present the unaudited pro forma combined results of operations of the Company and Lyvecom as though the acquisition occurred at the beginning of fiscal 2024 (in thousands, except per share amount and number of shares): SCHEDULE OF UNAUDITED PRO FORMA
|  | 2025 |  |  | 2024 |
|  | Three Months Ended September 30, |
|  | 2025 |  |  | 2024 |
Pro forma revenues |  | $ | 3,609 |  |  | $ | 240 |
Pro forma net income (loss) attributable to common stockholders of Ton Strategy Company |  | $ | 83,269 |  |  | $ | (2,788 | )
Pro forma earnings per share – basic |  | $ | 2.23 |  |  | $ | (3.12 | )
Pro forma earnings per share – diluted |  | $ | 2.23 |  |  | $ | (3.12 | )
Pro forma weighted-average shares used in computing earnings per share – basic |  |  | 37,262,322 |  |  |  | 894,918 |
Pro forma weighted-average shares used in computing earnings per share – diluted |  |  | 37,316,756 |  |  |  | 894,918 |
|  | 2025 |  |  | 2024 |
|  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |
Pro forma revenues |  | $ | 7,153 |  |  | $ | 443 |
Pro forma net loss attributable to common stockholders of Ton Strategy Company |  | $ | 78,132 |  |  | $ | (7,990 | )
Pro forma earnings per share – basic |  | $ | 5.82 |  |  | $ | (12.24 | )
Pro forma earnings per share – diluted |  | $ | 5.81 |  |  | $ | (12.24 | )
Pro forma weighted-average shares used in computing earnings per share – basic |  |  | 13,420,212 |  |  |  | 653,064 |
Pro forma weighted-average shares used in computing earnings per share – diluted |  |  | 13,438,556 |  |  |  | 653,064 |
The above unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2024. The unaudited pro forma financial information reflects material, nonrecurring adjustments directly attributable to the acquisition including acquisition-related expenses, interest expense, and any related tax effects. The unaudited pro forma financial information includes adjustments related to changes in recognized expenses caused by the fair value of assets acquired, such as depreciation and amortization and related tax effects. Pro forma weighted average number of common shares outstanding includes the impact of 184,812 shares of our common stock issued as partial consideration for the acquisition.

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