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 recurring SaaS revenue.

• Gross margin for Q1 2026 was 78.2%, down from 95.2% in Q1 2025, reflecting changes in service mix and the strength of the SaaS model.

• 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.

• Substantial doubt exists about the company's ability to continue as a going concern due to recurring losses and negative working capital.

Financial highlights

• Q1 2026 revenue: $12,214, down from $352,498 in Q1 2025, with revenue de minimis due to a back-end weighted plan and SaaS transition.

• Gross margin: 78.2% in Q1 2026.

• Operating expenses: $4.1 million in Q1 2026, up from $2.1 million year-over-year.

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

• Adjusted EBITDA: negative $3.9 million in Q1 2026, versus negative $1.3 million in Q1 2025.

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.

• Most revenue and bookings are expected in Q3 and Q4 as subscription contracts ramp.

• Management expects continued operating losses for several years and will require additional near-term financing.

• Strategic focus on converting pipeline to revenue, expanding customer base, and increasing recurring SaaS revenue.