Business Context and Reporting Period
Company: Hyperion DeFi, Inc. (formerly Eyenovia, Inc.)
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 2025
Reporting Status: Non-accelerated filer; Smaller reporting company.
Business Overview: The Company has pivoted from a digital ophthalmic technology firm to a dual-segment business. Its primary strategy is building a long-term strategic treasury of HYPE, the native token of the Hyperliquid blockchain, while continuing development of its Optejet ophthalmic microdose mist delivery system. The Company operates a co-branded validator node ("Kinetiq x Hyperion") and engages in liquid staking and HYPE Asset Use Service (HAUS) agreements to generate yield.
Key Financial Metrics
| Metric | 2025 | 2024 |
|---|---|---|
| Revenue | $813,455 | $57,336 |
| Net Loss | $(45,314,435) | $(49,818,433) |
| Net Loss Attributable to Common Stockholders | $(46,999,218) | $(49,818,433) |
| Cash and Cash Equivalents (Year End) | $6,443,467 | $2,121,463 |
| Working Capital | $4,544,796 | $(13,279,008) |
| Total Digital Assets (Fair Value) | $16,345,347 | $0 |
| Digital Intangible Assets (LSTs) | $20,591,555 | $0 |
| Notes Payable (Gross) | $8,339,366 | $10,740,402 |
| Accumulated Deficit | $(240,624,427) | $(195,309,992) |
Material Changes vs. Prior Period
- Strategic Pivot: In 2025, the Company raised approximately $91 million in financing (Private Placement and ATM offerings) and deployed proceeds to acquire HYPE tokens, shifting from a pure biotech model to a digital asset treasury model.
- Revenue Composition: Revenue increased significantly to $813k, driven by digital asset activities (staking rewards and HAUS fees), whereas 2024 revenue was negligible and derived solely from ophthalmic product sales.
- Asset Impairments: The Company recognized a $27.2 million impairment loss on digital intangible assets (liquid staking tokens) in 2025. In 2024, the Company recorded $11.2 million in impairments related to ophthalmic intangible assets and property/equipment.
- Liquidity Position: The Company moved from a working capital deficit of $13.3 million in 2024 to a surplus of $4.5 million in 2025, alleviating the "substantial doubt about going concern" noted in the 2024 audit.
- Debt Restructuring: The Avenue Loan was amended in June 2025, extending maturity to July 2028, reducing the interest rate to 8.0% (half cash, half PIK), and eliminating the conversion option.
Guidance, Outlook, Risks, and Unusual Items
Management Commentary and Outlook
Management expects to fund operations for at least the next 12 months using existing cash and digital assets. The Company intends for staking to become a primary revenue generator. It plans to continue pursuing capital through its At-The-Market (ATM) offering program. The Company anticipates registering the Optejet UFD device with the FDA in the coming months and expects to monetize the asset in Q2 2026.
Unusual Items
- Digital Asset Volatility: Net loss includes $9.0 million in unrealized losses and $27.2 million in impairment losses on digital assets, reflecting fair value adjustments and market volatility.
- Realized Gains: The Company recognized $8.3 million in realized gains from digital assets, primarily from the conversion of HYPE to liquid staking tokens and airdrops (KNTQ tokens).
- Gain on Extinguishment: A $2.3 million gain was recorded from the release of obligations related to a license agreement with Formosa Pharmaceuticals.
Risks and Contingencies
- Regulatory Uncertainty: Significant risk that HYPE may be classified as a "security" by the SEC, which could require the Company to register as an investment company and fundamentally alter its business model.
- Concentration Risk: Substantially all treasury assets are concentrated in HYPE and related liquid staking tokens (LSTs), exposing the Company to extreme price volatility.
- Custody and Security: The Company self-custodies a significant portion of its digital assets, creating risks related to private key loss, cyberattacks, and smart contract vulnerabilities.
- Internal Controls: The Company identified a material weakness in internal controls over financial reporting related to the validation of digital asset pricing and principal market determination. While remediation steps are underway, controls were deemed ineffective as of December 31, 2025.
Investor Verification Checklist
- Internal Control Remediation: Verify the timeline and effectiveness of the remediation plan for the material weakness regarding digital asset pricing validation.
- HYPE Valuation Methodology: Confirm the specific exchanges and data sources used to determine the fair value of HYPE and LSTs, given the identified control weakness.
- Liquidity of Staked Assets: Assess the impact of the seven-day unstaking queue on the Company's ability to liquidate assets for operational expenses or debt service.
- Regulatory Status of HYPE: Monitor SEC guidance and enforcement actions regarding the classification of HYPE as a security versus a commodity.
- Debt Covenants: Review the specific covenants in the amended Avenue Loan agreement to ensure compliance, particularly regarding interest-only periods and PIK interest accruals.
- Optejet Monetization: Track the progress of the Optejet UFD FDA registration and the status of the non-binding Letter of Intent for monetization expected to close in Q2 2026.