CID HoldCo, Inc.

Greetings. Welcome to .ai fourth quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Ed Nobroski, CEO. Thank you. You may begin.

Thank you, operator, and thank you to everyone for joining us today. I'd like to welcome you to our fourth quarter and full year 2025 financial results conference call. Thought.ai offers a solution built on two pillars, a unique IoT implementation for in-process data collection, and a modern cloud-based software suite that takes advantage of this new source of data to implement AI workflows. Our solutions give every physical asset a persistent virtual identity, an intelligence of how it fits in the process, and a real-time 3D location. This is what we mean by asset intelligence. Today, that data serves humans primarily through dashboards. Tomorrow, it will serve autonomous systems through APIs. Same infrastructure, exponentially larger emerging market as the AI disruption continues in our industrial verticals. 2025 marked our transition to commercial operations and public company reporting. As we move into 2026, our focus is disciplined execution, recurring revenue conversion, and strengthening our financial profile. As you look at our filings, we completed our business combination in June, began trading on NASDAQ, and transitioned from a development-stage company into a commercial enterprise, generating meaningful revenue. Our full-year 2025 revenue of $5.8 million, from effectively no revenue in the prior year, is a testament to the market demand for our asset intelligence platform and a team we've built to capture it. Our fourth quarter capped a year of accelerating momentum and is a leading indicator of progress in our commercial outlook for 2026. Our commercial traction in 2025, particularly in the second half of the year, validated our go-to-market strategy. We are deploying our IoT systems across a growing base of customers in multiple applications in preparation for enrollment into our SaaS services. Amongst the strong hardware sales, it's also important to note that our Q4 revenue closed with the first subscription of quarterly recurring revenue, building a strong base to expand subscriptions in 2026. As our subscription model is built on enrollment of devices feeding data to our cloud-based software, Hardware sales are a forward indicator of subscription revenue in 2026 and beyond. On the technology front, 2025 saw the completion of our Generation 3 SaaS platform with full multi-tenant architecture. This is the backbone of our recurring revenue model. It enables enterprise-scale deployments with real-time asset visibility, predictive analytics, and seamless integration with existing customer infrastructure. We achieved our SOC 2 Type 1 cybersecurity certification during the year, which is a critical requirement for enterprise and government customers. We're also continuing investing in our next-generation IoT tracking technology, leveraging UHF, 5G RF, and BLA capabilities. Our manufacturing subsidiary, DOT Works, based in Barceloneta, Puerto Rico, significantly expanded operations during the year. Inventory grew as we built up stock to support the growing order pipeline. This operational build-out positions us to meet the materially high production volumes we expect in 2026 as we execute our plan. We also continue to expand and solidify our software teams in India. A substantial portion of programming is done with talented teams in Bangalore that have been with us for some time and who leverage AI tools to be incredibly efficient in developing and testing our platform. We made significant progress expanding our partner ecosystem in 2025. We secured our first international distribution partnership with Cantech Group in Australia, extending our commercial reach into the Asia-Pacific region. We announced a strategic partnership with Williott to innovate industrial-grade ambient IoT solutions, expanding the capabilities of our platform. We also partnered with Worth Industry North America to bring our asset intelligence technology to the industrial supply chain market. These partnerships validate our platform and extend our go-to-market reach well beyond what our direct sales team can achieve alone. One of the most important accomplishments in 2025 was building the executive team to scale this business. We brought in Dolores Dell Rochester as our Chief Revenue Officer to lead commercial execution. Dr. Ansgar Tita joined us as Chief Strategy Officer to guide our long-term strategic direction. Charlie Maddox, one of our co-founders, serves as our Chief Operating Officer and Chief Financial Officer with the assistance of an experienced fractional CFO in Robin Delia to strengthen our financial operations and report as a public company. Our CTO, Vijay Nambiar, is a proven leader of engineering departments and technology companies large and small, most recently coming from the 5G group at Verizon. His team, combined with other talented professionals across the company, give us the horsepower and experienced discipline to execute on our ambitious growth plans. The broader market for asset intelligence and real-time supply chain visibility continues to grow rapidly. Industry tailwinds around IoT adoption, AI-driven logistics optimization, and increasing need for real-time asset tracking across multiple verticals are all working in our favor. Tariff policy in the US is driving more business our way as we take advantage of our made-in-America position. Our competitive differentiation lies in the combination of our proprietary hardware, IoT bridges and smart industrial tags, with our SaaS platform and AI analytics capabilities. This full-stack approach allows us to deliver end-to-end solutions that integrate with customers' existing infrastructure, which we believe is a meaningful competitive advantage. Our channel model enables us to scale quickly and leverage the expertise of partners in adapting our technology to many applications, verticals, and use cases. Looking ahead to 2026, we're affirming bookings guidance of $12 to $15 million and revenue of $6 to $7.5 million. These bookings and revenue results will be back-end weighted, occurring mostly in the third and fourth quarter of 2026. While this revenue outlook is more measured than earlier projections, it reflects our strategic shift towards recurring subscription revenue and long-term margin expansion from the earlier hardware transactions reported in the period. We expect to book three- to five-year subscription contracts with a strong customer retention profile, as our industrial base relies on our installed hardware for in-process data collection and our software solution for operational execution. The 2026 revenue guidance reflects the strategic shift to long-term contracts and ARR, as well as our confidence in the pipeline we've built, the partnerships we've established, and the operational capacity we now have in place. Note that we've implemented reductions in labor as well as cost controls to constrain spend to align with achievement of important subscriber milestones. Our priorities for 2026 are clear. Convert pipeline into revenue, expand our customer base, deepen existing customer relationships, scale our partner ecosystem, and continue to build recurring SaaS revenue as a proportion of the total mix. We are laser-focused on execution and building a sustainable, high-growth, and ultimately profitable business in the quarters to come. I'd now like to turn the call over to Charlie Maddox to walk through some key financial details from the fourth quarter of 2025. Charlie?

Thank you, Ed. Thank you, Ed. Our 2025 annual results include approximately $27 million of expenses primarily related to our IPO and D-SPAC process earlier this year, including the changes in fair value of safe notes and convertible notes, loss on debt extinguishment, transaction costs, and acquisition and integration costs. These are specific to this reporting year. In our reported results today, we have included adjusted EBITDA, a non-gap measure, for all periods presented as a supplemental disclosure excluding the effect of these non-recurring transactions. For the fourth quarter of 2025, adjusted EBITDA totaled a $2.2 million loss as compared to $1.9 million loss in the same year-ago quarter. Revenue for the fourth quarter of 2025 grew to $4.5 million as compared to zero in the same year-ago quarter. The increase was primarily driven by the company's transition from development stage operations to commercial revenue generation following the completion of its business combination in June 2025. Gross profit for the fourth quarter of 2025 grew to $2 million, representing a gross margin of 43.7%, as compared to a gross profit of zero in the prior year period. The increase in gross profit reflects significant growth in revenue gained almost entirely from hardware sales. Operating expenses in the fourth quarter of 2025 totaled $4.2 million, as compared to $2.4 million in the same year-ago quarter. The increase was primarily due to costs of compliance as we worked through the DSPAC actions and the requirements of operating in a public market. Net loss for the fourth quarter of 2025 shrank to $2.4 million, or $0.08 per basic and diluted share, as compared to a net loss of $2.7 million, or $0.22 per basic and diluted share, in the same year-ago quarter. Turning to capital allocation and our financial position going forward, as previously disclosed, we have access to an equity line of credit, which provides us with meaningful financial flexibility as we scale operations in 2026. Our capital allocation priorities remain focused on investing in revenue generating activities, including expanding our commercial team, co-marketing, and partner onboarding, as well as technology priorities developing our software platform. We will continue to evaluate capital sources thoughtfully and remain focused on aligning capital access with revenue-generating milestones and long-term shareholder value, as shown in our recent S-1 filing outlining a potential secondary capital raise in 2026. This completes my prepared statements. Now, before we begin our question and answer session, I'd like to turn the call back to Ed for some closing remarks. Ed?