Realbotix Corp.

I also have with us Martin Boy, our CFO, and Jennifer Karkula, our Head of Communications. I'm going to do a walkthrough of some of the things from the quarter, and maybe I'll start with some commentary just on a little bit of some of the key aspects of the things that happened. I think that's probably more insightful to people than me doing a repetition of what's already in the press release. So, One of the key things I believe here to discuss is that we sold our liquid cryptocurrency assets, primarily being that of our ETH. And I wanted to just sort of give some insight into that and the thinking behind that, because for sure there's going to be some people who are a little disappointed in that, even though I believe it was the right decision. So we had started reporting that we were going to start liquidating our liquid digital assets probably about nine months ago. And I want to explain why that is. So the reason this is important is the volatility that's inherent in cryptocurrencies, while I love cryptocurrencies and, you know, it's true to my heart, but it's really hard to run a business around that. And I'll give an example. About four months ago, Ethereum hit about $1,450, basically $1,450. Today it's around $4,500. If you can imagine when you're trying to run a business that operates in fiat, but your treasury is all in crypto and you need to access that, it makes it really hard to plan. And so one of the things that we put in our current press release for people's insight, so you understand our thinking, is our monthly cash burn is about $400,000, about $380,000. When Ethereum hit, you know, $1,400 or so a few months ago, our run rate before running out of capital and having the necessity to raise capital in what might have been a desperate situation was reduced to about six or seven months. As an operator, that causes me a lot of panic because the last thing I want to do is be forced into a financing at unfavorable terms. And so you can understand from our standpoint, which is we've got to make payments to, you know, and payroll in fiat currencies to We maintained a very low cash balance, and so what we had been doing is sort of selling a little bit of ETH here and there. I think with the anticipation that heading into the next bull market, we'd monetize there and sort of create some stability for the business, at least for the next sort of 12 months. So, again, last year with the volatility, the management team and the board decided that for the safety of the business, it was a smart idea for us to try and monetize this in the next bull market, which I think we're sort of there now. With Ethereum sort of going back and hitting what are near all-time highs, we thought that was a prudent thing. And then I guess we stopped a few days ago, but we sold the last of our liquid Ethereum in the market. I believe the last price we got was around $4,300. It's slightly higher today, but I feel we got a good amount. More importantly is that we have now $6 million, give or take a little bit, on the balance sheet. And based on our current budgeted run rate, that gives us like several months of operating where we don't have to worry about being able to make payroll or having to do things. You know, we've received this year a couple of what I would call predatory-type financing offers. These are, you know, from investment banks that are, like, you know, offering deals at deep discounts full of warrants or high, you know, double-digit yields and things like that that we've resisted in sort of moving forward with because ultimately we know that that wouldn't result in creating shareholder value. And I'll remind people, we haven't done a financing in this business since 2021. So again, because we kept large ETH balances in the past instead of a large cash balance, we sold most of our ETH. In the past, we had been selling ETH probably like $220,000 to $250,000 worth of ETH per month out of necessity just to continue financing things. As a general rule, we always like to have at least a million dollars of excess cash in the bank for unforeseen things. So as the price started to increase, we saw that as an opportunity to monetize, again, for the financial well-being of the business. In our minds, $4K or higher was the right price as it sort of neared all-time highs. So today, with $6 million of cash, we have approximately 15 months of operating runway. obviously not including any incremental revenues and sales that we believe will arise in 2026. We've tried to be super conservative about that. And we believe that, again, gives us leverage to not accept any predatory financing terms or put us in a situation where we have to do something that's unfavorable. That doesn't mean that we're not going to raise money for 15 months. I think that just means that we have better options for the company. You know, undoubtedly, we may have left a little bit of money on the table, had to try to hold ETH for another month or squeeze it here and there. But overall, I believe for the business today, we're stronger by securing our financing for the next while, which is essentially what we've done. We've sold one asset to secure financing for the robotics and AI business. I guess in addition, I would say, you know, as the company has pivoted, There's a lot of places for people to get crypto exposure these days, not a lot for people to get robotics and AI. And I guess robotics shouldn't really be a proxy for the crypto market anymore, but seen as a leader in the robotics and AI space. That said, we do still have our claim against Genesis, and we have about $2 million of exposure there. We carry that at zero on the balance sheet just because of the uncertainty of getting that back. I would say that since they went into bankruptcy, we have received back about 80% of the ETH that we held there and about 40% of the SAL that we've held there. I'm not sure if we're going to get anything back. Again, unfortunately, Genesis turned out to, you know, started off as a very reputable business and, you know, in my opinion, did a few somewhat unethical things there and left people holding the bag. So, you know, I'm still hopeful we'll get something back. I don't think we're going to get 100% back. But, you know, out of that $2 million that they owe us, you know, I believe that there's a chance we could get another 50% to 60% of that back. So hopefully that gives people a little bit of an explanation to understand why we moved out of crypto again. We were using the crypto to finance the operations. And, you know, as crypto moved up and down, like I said, a few months ago, you know, I was in a little bit of a panic when I saw crypto drop or ETH dropping to $1,400. It's really hard to budget and have assurances that you'll be able to make payroll in a few months with an asset that is moving up and down so much. So with that, I want to talk a little bit about – and I'm going to get into a little bit of the deck, but I want to talk a little bit about what's sort of happening, like what's new with the business, because I don't think that fully comes through in the press release. As things happen, we try to maintain and provide updates. In the next few weeks, we have our new version of the robot controller launching. That's going to allow for added control and simplicity in the operation of the robots. We're really excited for that, and we expect to have that ready literally in about four weeks. The vision integration into the AI is being completed this week. And we hope to be showcasing that at upcoming shows. Obviously, the biggest show we have coming up is IFA Berlin. For people who don't know what IFA Berlin is, it's larger than CES. It's sort of the CES of Europe, about 200,000 estimated attendees. And we're super excited as Europe has not yet really seen our product. In terms of why that's exciting, this vision integration with AI and speech technology, is that to our knowledge, nobody else is doing that the way we do it. So basically, it's an AI system linked into a vision system, linked into a lip and mouth sync articulation system. And what that allows is for the robot to recognize people, situations, objects. And so you could have it in an area where it can see if there's an emergency. It could alert people if someone is hurt. It can, again, utilize, like, you know, you could even have it in a retail store where it's looking at you trying on clothes and says, hey, I think that's a little bit too big for you, or maybe you might look better in a different color. If you can imagine the possibilities with that where it's actually looking at you and speaking to you with advice, I think it's completely unique only to us. New things are upcoming. We expect to have this fall our new adult-based AI coming. That will have the ability to integrate it into a robot or as a standalone digital avatar device. The idea there being that you'll be able to access this AI on your phone or your computer through a digital avatar and then choose to upgrade to a robot later, or you can buy it and have it integrated into a robot right away. You know, we still believe loneliness is a global issue, and using AI and robots for companionship fills a big, big gap. I don't think robots and AI are necessarily a solution to things like depression, but as I always describe it, it's an assistive aid. It's something that can certainly, for many, many people that don't have other options, can alleviate this. And again, I want to make clear, like, this isn't targeted at children or people living in cities who are capable. There's a huge need that I think generally goes overlooked by mainstream society. Someone told me yesterday there's an estimate that 60% of men globally are lonely, and loneliness leads to depression, strokes, cancer. It weakens your immune system. Again, this is not the pill that solves everything, but it's an assistive device. It's an assistive solution to help people make their lives better. On the enterprise front, we're making huge inroads. I can't sort of reveal everything right now, but I would say, again, we're having conversations with some of the largest companies in the world. We've been invited to showcase our products at some major events. A few things we can discuss. We were just at the Las Vegas Fashion Show Mall. We did a project with Tix4. Again, that was really more of a, hey, look what we can do. Let us show you that we can put a robot in a public place, and it can interact with people completely unscripted. We have IFA Berlin coming. That's the first week in September. That's the event, again, 200,000 people. We've recently been invited to events to showcase our products by Ericsson, Dell, Verizon. We're going to be doing what looks like an installation in Times Square with a group called Smart Tech. It's sort of a high-end electronics store, and it's going to be basically placed – inside the store, but visible from the street, and what might be considered the highest traffic location on the planet. Like, you know, I think it's something like, a million people walking by there per day. In the fall, we're also going to be doing the GITEX conference in Dubai. We've been invited there by a group who's basically paying for us, you know, our lodgings, accommodations, everything to bring to robots, really just to display to a whole bunch of sort of people at this conference and in the Middle East what our robots can do. And then last, there's, you know, the CES show, Consumer Electronics Show in January. That was really our coming out party this year in January. You know, people sometimes forget nobody had really seen our robots in person until January of this year, which was, you know, eight months ago. But at CES this year, we expect to sort of be there again. We have a bigger booth. And we expect to be sort of what I would say showing a new level of engagement with people than we did last year. And that's going to be largely to do with the vision system. the upgraded robot controller and what I would call enhanced AI capabilities. In terms of our current strategy, the idea is still to put our robots in as many public venues, high profile events as possible to demonstrate the technology. 2025 has never really been about hitting revenue numbers. It's more about building the market. You know, we're not selling, you know, bagels or computers here where you sort of know what the demand is like we're creating this market we're demonstrating to people we know from all the market forecasts and from the inbound attention we're getting that it's huge like you know we continue to be in conversations with many groups but we need to get it out there we're trying to build our brand so when people think of humanoid lifelike robots real botics is the first thing that comes to mind And to do that, we need to build a bigger company. We need to make sure the robots are all over. We're considered the premier business in the space. Again, we're having conversations with many companies of interest. We're in a conversation, and it looks like we'll make a sale there to one of the largest electronic companies in the world. And having a conversation with them prior to their purchase, they said, we've talked to every robotics company on the planet over the last 12 months. And they said, congratulations to robotics because you're the only ones that can do what most companies like us want, which is a form of customization of appearance and AI. They said, we don't really care for a robot that can do backflips and dance. That's a little bit of a novelty. It doesn't provide us the utility that we need. And the utility that we need is to be able to customize the AI to talk about our company, understand our clients, and engage with them in a really interesting way. And they said, look, you guys are the only people in the world with that capability today. From a capital markets perspective, Maybe what I'm going to do first is I want to talk, I'm going to go through a couple slides in the presentation, because while we're talking about the robots, I want people to understand what makes them unique. And this is available on our website, therealbotics.ai, the corporate website. But we think about robots in a way that nobody else is thinking about them. This is not, you know, we're not competing with Tesla or Boston Dynamics or Figure AI. We're doing something wholly unique here, and I'll explain why. Number one, our robots look far more realistic than other people's robots. I'll play this video. I'm going to turn the sound down and mute it. But our robots look far more realistic. We have customizable faces, bodies, and voices. Lifelike facial expressions with custom movements. Here's the three things that make our robots super unique. Our robots are built... And it's sort of evolved this way to be modular. And what I mean by that is they're a little bit like Lego. You can snap parts on and off. That has two really big advantages. Number one, you can put it in a suitcase and travel with it. So if you are using this at conferences or whatever it is, you can put it in a suitcase and travel with it. That's a great feature. But the other thing that that enables is easy repair. So let's just say, for example, something stops working in the knee, the elbow, wherever. You can snap that body part off, send it back, and we can send a replacement that can be snapped back in. That allows for very efficient repair, replacement of parts that get worn. that, again, nobody else is thinking of. Most other robot companies are designing humanoid robots that all look exactly the same, have no facial expressions, and it's a full-bodied unit. Something goes wrong, you've got to put that thing in a crate and ship it back. The other two things that make our robots unique when we were designing our ai i sort of said to the team i'm like hey let's throw chat gpt in there and see what happens and what we realize is that we're able to integrate pretty much any ai on the planet into our robots and so you can certainly use our ai which is based on social interaction companionship but you can also press a button and put chat gpt in there or llama or gemini or alexa or whatever you need that adds for incredible flexibility. And so we were having a conversation just last week with a major hotel chain that said, hey, can we integrate our chatbot into the hardware? We looked into it and we're like, yep, we can. So you'd be able to walk up to a robot in this hotel if they were to enable this and say, I'd like to book a massage at 2 p.m. The robot would use its AI and be like, yep, that's available, Mr. Kegel. Create a ticket and book it for you. It can also do that in any language for you. And so, again, with hotels experiencing guests, you know, in major cities from all over the world, imagine being able to walk to a robot concierge that can bring you pillows to your room. It can order you food to your room, book a massage or a car or whatever a hotel concierge could do, and it could do it for you in any language. That's utility. The robot's not doing backflips and dancing, but it's providing real utility and ROI to our clients and potential clients. And, of course, the last piece that makes us unique is the vision system with the face recognition, object recognition, and situational recognition. Don't know of anyone else doing that, but, again, imagine this in a retail store or imagine it in a long-term, you know, old-age facility where it can go room to room and Robots have infinite patience. It can talk to the people. If something's going wrong, it can recognize that and react appropriately. Again, imagine in a retail clothing store where it can look at you and be like, hey, I think you can get a better fit or a better color. All these types of things that the robots will have the capability of doing by integrating AI with vision, and I haven't heard of anyone else doing this. And by the way, we've patented our vision system. So with that, I'm going to talk a little bit more here about capital markets. I'm going to stop sharing the presentation. Like I said, this is online for people who want to look at it. And I want to just talk a little bit about capital markets before I turn it over to Jennifer to start on questions. From a capital markets perspective, you know, the years had ups and downs. I'd say one of the most validating things that we saw was during CES in January that when the world really for the first time saw our robots, our shares, the volume was impressive, the shares appreciated significantly, it was up like I think 200, 300% in one day. The years had it up and down. investors are never fully satisfied. I get lots of emails. People are, you know, you never hear the good. You just get the unsatisfied people. But again, we don't control the share price. There's a lot of macro events we don't control, whether that's, you know, where interest rates are going, whether money's flowing into sort of, you know, the metas of the world and apples of the world versus, you know, we're still a micro cap. We're still looking to move to the NASDAQ, but we haven't determined the timing. But I wanted to talk about the why because I do get questions around this. We believe to do this correctly and to do an uplist to the NASDAQ, you need the right IR, PR, and marketing. I've talked to people that have successfully moved to the NASDAQ, and I've talked to people that have unsuccessfully moved to the market. And it's in talking to the people that have done it unsuccessfully that the lessons are learned. And what I learned is a simple uplist isn't really going to do anything if you don't marry that with a whole bunch of IR, PR, events. various things that obviously take up time and money. And I would say that that's not currently budgeted into our monthly costs right now, and so that is something we need to evaluate. The other piece is Our valuation isn't exactly where we want it to be. In order to meet the listing requirements, we would have to do a share consolidation. Nine out of ten times, these hurt shareholder value. An up list would also require a financing and a whole bunch of other things. I think if we were to up list that, you know, we're currently looking, we'd have to raise about $10 or $15 million. Again, this causes dilution and not every, you know, personally as a board management team, we don't want to do it at these prices because we think our valuation is low. So in putting these things together, we haven't pulled the trigger on this yet because timing matters, valuation matters, the pieces you put in place to make this successful matter. And we've got to measure all of these things to make sure we're doing it and we're ensuring the safety, the financial safety of the company. Like I don't want to eat into three or four months of cash flow to take the risk on this and then if for whatever reason it's unsuccessful – you know, people are unhappy. And so the idea here is, look, we want to do this. It's the right thing to do to move to the NASDAQ, but we want to do it prudently. We're hoping that after these events that are coming up and, you know, some new partnerships and things that we hope to close before the end of the year, that the shares will be, I think, at better valuations. And that sort of puts us in a better spot to go and do it, a NASDAQ uplisting. So again, it's not that we are not technically able to do it, but just because we're technically able to do it doesn't mean that it's necessarily the exact right time to do it to create value. But certainly it's on the horizon, you know, what it is is it's on our target of milestones and things we want to achieve, I'd say, in the next 12 months, but the timing has to be right. And if we don't have a few of those pieces fall into the right place, we'll continue to wait until they do. So I think with that, I've said a lot. I've been talking here for about 20 minutes. Jennifer, why don't we open it up if people can submit their questions, and I'll see if I can get to them, and maybe we'll do about 10 minutes of questions.

No problem. So the question and answer box is now open at the bottom. If you have any questions, please type them in, and we will be able to get to them.

The one question was, what's the average price of the ETH holdings that were sold? I would say the average price, based on my last look, was about in like the mid $3,000 range. But again, I think you have to remember that When ETH was trading low, we had to sell some in the $1,700 range, $1,800 range, because we needed the cash to fund the business. So that's kind of like where we're at. There's another question here, earnings per share. I'm not sure I understand that question, Corey, if you want to rephrase it and put it back into the message. Jen, I'm only seeing the two questions here. Is there anything else popping through?