CID HoldCo (DAIC) investor relations material

Executive summary

• Q1 2026 revenue was $12,214, a 96.5% decrease year-over-year, as the company focused on preparing for large-scale deployments and transitioning to a recurring SaaS revenue model, resulting in low recognized revenue for the quarter.

• Gross margin for Q1 2026 was 78.2%, down from 95.2% year-over-year, reflecting the strength of the SaaS model despite lower revenue and changes in service mix.

• Operating expenses rose to $4.1 million from $2.1 million year-over-year, driven by public company costs, labor, and platform investment.

• Net loss for Q1 2026 was $4.5 million ($0.15 per share), compared to $1.3 million ($0.11 per share) in Q1 2025.

• The company faces substantial doubt about its ability to continue as a going concern due to recurring losses and negative working capital.

Financial highlights

• Q1 2026 revenue was $12,214, down from $352,498 in Q1 2025, reflecting a planned back-end weighted revenue ramp and shift to recurring revenue.

• Gross margin for Q1 2026 was 78.2%.

• Operating expenses were $4.1 million in Q1 2026.

• Net loss for Q1 2026 was $4,465,168 ($0.15 per share), compared to $1,284,558 ($0.11 per share) in Q1 2025.

• Adjusted EBITDA was negative $3.9 million in Q1 2026, versus negative $1.3 million in the prior year quarter.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $6 million to $7.5 million, with bookings expected between $12 million and $15 million and most revenue expected in Q3 and Q4.

• Management expects continued operating losses for several years and will require additional near-term financing to fund operations and R&D.

• Anticipates booking 3-5 year subscription contracts with strong customer retention.

• Cost controls and labor reductions implemented to align spending with subscriber milestones.

• Focus remains on converting pipeline to revenue, expanding customer base, and scaling recurring SaaS revenue.