Why losses alone do not explain equity falling 30.9%

VERIFYME, INC., a US company reporting in dollars, closed Q2 2026 with equity of USD 10.0m, down from USD 14.4m a year earlier. Revenue in the quarter was USD 1.9m against USD 4.5m in Q2 2025. The operating loss was USD 556k and the net loss USD 505k, so the operating margin fell to -29.1% from -7.1%. Total assets shrank to USD 11.4m from USD 17.2m. The equity ratio still rose to 87.5% from 84.1%, because assets fell faster than equity.

A net loss of USD 505k explains little of an equity fall of USD 4.5m, and the accounts do not show what else left. Equity shrinks through losses, payouts to owners or a reduction of capital. After the quarter, the company filed a completed acquisition and a change in control at the end of September 2026, a change of certifying accountant in early October, and a new CFO in late October. These events fall outside the period of the figures above. I would watch revenue first. A thick equity buffer is reassuring, but a new owner, a new accountant and a new CFO within weeks is a lot of change for one set of books.