GD Culture Group Limited (GDC) filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025. The company reported a net loss of approximately $186.9 million for 2025, a significant increase from $14.1 million in 2024. This substantial loss was primarily driven by an unrealized loss of $178.5 million on fair value changes of digital assets (Bitcoin). GDC completed the acquisition of Pallas Capital Holding Ltd on September 29, 2025, in exchange for 39,189,344 shares of common stock. Pallas holds 7,500 units of Bitcoin as a long-term digital asset reserve, valued at $663 million as of December 31, 2025. The company is undergoing a strategic transition, discontinuing its online livestreaming gaming business in January 2025 and shifting focus to leveraging AI and virtual content generation for the interactive reading and narrative entertainment market. GDC is developing a platform for creators to produce interactive, game-like reading experiences with AI-powered tools for narrative generation, visual content, and interactive dialogue systems. A pilot product is expected to be distributed via the Apple iOS App Store. Operating expenses decreased by 40.2% to $8.46 million in 2025 from $14.16 million in 2024, mainly due to reduced selling and marketing expenses and lower credit loss provisions. Research and development expenses increased by 182.9% to $2.26 million in 2025, reflecting increased investment in the interactive fiction story platform. The company raised approximately $0.9 million in March 2024, $1.0 million in March 2025, and $2.8 million in October 2025 through various equity offerings, and received $4.5 million from a May 2025 offering that is still ongoing. As of December 31, 2025, GDC had $456,041 in operating bank accounts and a working capital deficit of approximately $0.3 million. The CEO, Mr. Xiaojian Wang, provided $340,000 in non-interest bearing advances to the company from January 2026 to the date of financial statement issuance and executed a Letter of Support to provide continuing financial support for at least 12 months. The company identified material weaknesses in its internal control over financial reporting, specifically inadequate U.S. GAAP expertise and lack of formal training plans for financial staff. GDC approved a share repurchase program of up to $100 million of its common stock, expiring August 17, 2026. The company changed its independent registered public accounting firm from HTL International, LLC to GGF CPA LTD, effective January 29, 2026.