CID HoldCo (DAIC) Sidoti March Small-Cap Virtual Conference summary

Financial performance and outlook

• FY 2025 revenue reached $5.8 million, with $4.5 million in Q4; gross margins were 43.7% due to early-stage hardware sales.

• Revenue guidance for 2026 is $6–7.5 million, with a shift to SaaS as the primary revenue source and projected margins rising to 65%.

• Adjusted EBITDA was negative $9.1 million, impacted by one-time post-SPAC merger costs.

• Shares outstanding are 27.8 million, with a current market cap of $6.8 million and share price at $0.24.

• Profitability is expected at $3 million in quarterly revenue, with current cash burn at $1.5 million per quarter.

Business model and technology

• Focuses on asset intelligence and workflow automation for logistics, manufacturing, and supply chain sectors.

• Core offering is a cloud-based SaaS platform, augmented by proprietary hardware for real-time data collection.

• Hardware includes patented asset tags and mesh-based data collectors, manufactured in Puerto Rico.

• AI and machine learning are layered over a configurable rules engine, enabling predictive and preventive asset management.

• Competitive advantage comes from rapid installation, minimal infrastructure, and a land-and-expand strategy targeting multi-site customers.

Strategic partnerships and market expansion

• Major contract with Würth Industry includes a $175 million five-year commitment and $2 million upfront payment.

• Würth rollout targets 600 locations, with significant hardware and SaaS ARR potential; over half of 2026 revenue guidance is attributed to Würth.

• Partnership with Wiliot expands reach into retail and leverages Ambient IoT technology for industrial applications.

• Distribution and channel partner model enables scalability and access to diverse verticals and geographies.

• Initial focus is on the U.S., with expansion underway in India and Europe, driven by both Würth and Wiliot relationships.