Realbotix Corp.

Andrew, and welcome to Realbotix Financial Update Call. My name is Nicholas Armand, and I'm a member of the finance team. Today, we are joined by CEO of Realbotix, Andrew Kiguel, President of Intima, Sue Ennis, and CFO, Scott Meyers. At this time, everyone is in a listen-only mode. Later, we will be conducting a question and answer session. If you have a question, please submit it into the Q&A section located at the bottom of your screen. I'll now turn it over to Andrew.

Thanks, Nick, and welcome everybody to our Q3 call. I'll start and I'll run this call the way I normally do, which is more of a conversation. I think people can dig in or send in specific questions around the numbers, but I'll highlight things that I want to talk about. We'll give an update on RealBotics LLC. Sue will provide an update on Intima. We'll talk about a few other notes in terms of questions that have come in and then we'll open it up to a general Q&A. So the first thing is that I want to start is just to explain to everybody Realbotix Corp. is a holding company with two independently operated subsidiaries. One is called Realbotix LLC and the other one is called Intima. While both groups leverage AI and embodied AI, they operate separately. We market to different end users. We have our own payrolls, our own manufacturing, our own operations. Certainly right now they're under the same ownership banner, but that over time is going to be separated. And we'll talk a little bit more about the Onco NASDAQ RTO transaction as well. In terms of some other stuff, I think this has been one of our best quarters for transparency. We've upgraded our accounting team. The new accounting team is far superior to the previous one, which means we're able to provide more timely and detailed information. So kudos to the new accounting team, several of which are on the phone. I wanted to talk a little bit about it. I've seen sort of some press saying, well, revenues are lower. And I wanted to sort of talk to you or sort of mention why they're lower. So at a very high level, number one, we've obviously this year to last year, we've gotten rid of the crypto staking business. We said we were going to go into a pure play into the AI robotics space. The crypto assets were really just confusing and taking some risk there with respect to, you know, The price of the crypto and how do we budget around prices that move up and down? I think fortunately we were able to get out at prices that are far higher than where crypto is trading today. So that is a plus. In terms of revenue recognition, and I think people need to understand this. When we get an order for a product, we do not record it as revenue until that product is shipped out. So we could receive, for example, $100 million in orders today, but if those are not shipped out until next year, we do not show that in the revenue box. So what does that have to do with our revenue year over year? and sort of coming in and taking over the business a couple of years ago, there was a backlog of orders that spanned a couple of years back. And what needed to be done was as we sort of moved in and brought in a new management team and improved operations was really to get rid of that backlog. So what ended up happening is that we Scott Meyers, Susan Pirzchalski, So with that, I think the rest of the stuff with respect to the accounting is there. If somebody has specific questions you can ask later, Scott's on. We did have a benefit of recording from the sale of the tokens.com domain name. We still have some capital that is owed to us on that. It was staggered, but I believe there's about another $640,000 owed to us, including another payment coming in at the end of this month. And that will be completed by the end of January, 2027. I want to talk a little bit now about specifically Realbotix LLC. And so for people that don't understand the difference, Sue will talk a little bit about her business. But Realbotix LLC is the division, the subsidiary that's focused on health care, education, hospitality. This is things such as greeters. And that is a relatively new business. I always want to make clear to this that pretty much every single person that works at RealBotics LLC has been hired in the last 24 months. And most have been hired in the last 12 months. So it's a relatively new business that's focused on the AI and robotics space. It's not that it's been around for a long time. And when you look at the revenues, and I think we put it in here, broke it out for people, is that the revenues at RealBotics LLC as part of the overall business are low. And the expenses there are higher. And that's because when you're building an engineering team, an AI team, all these things, and you're moving towards scaling, these things obviously cost money. That's where we've been investing is to try to build this business, which we think ultimately has a trillion dollar market at the end of it that we're trying to get to. In terms of Realbotix LLC, we've had a great year. We've announced a couple of Ericsson announcements, the retirement home, the TV show, and obviously the school deployment. One thing I want to make clear is, you know, don't listen to the media. Thank you for joining us. In the weeks, not in the months, and we're still moving ahead. Obviously, we were disappointed by the level of type of press that we received on that. But I think for people that are involved and know what's going on, there's some positives here, which include us potentially being the first here to get a robot into a school, AI into schools. Thank you for joining us. The calculator didn't end up with a bunch of math teachers being laid off or replaced. It's a tool that enhances the learning. It makes things easier in growing class sizes with test scores going down. This is just something that is a tool to use in classrooms. It's not a replacement. In terms of us getting to commercialization... We are now building the DNA to start to scale. We did that in our move. We completed the move really between both businesses, everything and out of the old location has been completed at the end of July. We're really excited. On the Realbotix LLC side, this is a professional place for us to manufacture. These are static-proof floors. These are different places for the AI team, the engineering team to really brainstorm, build, and develop some new things. I'm going to give you guys a teaser a little bit later about what we're exactly showing there. What I would say is that the reported revenues to date at Realbotix LLC don't really capture the progress that we've made. Again, we've been doing these deployments with like the Ericssons, the schools. There's a few more that we're talking to, some significant, some not. But what we really need to do is prove out the model. And I think we're getting that. And we needed to prove it before getting to where we are today. I'll note that so far we've never invested in marketing or advertising. Everything that's come in has been inbound and I think has been pretty significant in terms of some of the names and the things that we're doing, whether it's the conferences or some of our clients. But we needed to test the waters before engaging in a revenue and sales plan and I think we're almost there. While we don't give guidance or sales forecast because it's really hard to estimate the growth of a new market, We do have a plan in terms of internally what we think we're going to be able to do. Again, I ask and encourage people to recall that like 18 months ago, this market didn't even exist. As of today, we are still the only people providing this highly realistic human-like robot in America. I've said it in my quote, which is in the press release, which is that we are at a pivotal juncture. We spent the last two years really demonstrating the products. We've successfully deployed them. What we're moving to, and I'll tease a little about this, is now that we've relocated and we have the capacity, we're going to be launching a new robotic line at some point this fall. I'm aiming to have that out maybe in September. What is going to be very different here, and I'll explain why, is that we're going to be moving into a direct to consumer type sales, online sales. We're going to streamline the process of ordering the robots. We're lowering the price of the robots. What we realize is that people don't necessarily need all the bells and whistles, but pricing is more important here for us to get these very realistic robots out there. I think that is where we're going to put some marketing dollars behind and make this line more affordable, easier to manufacture. with a view of moving into producing at scale in 2027. In addition, and I've put this in the press release, we plan to launch a line of situational AI avatars towards the end of this year that would be for sale on their own. And so again, we're positioning ourselves as a specific situational AI company as well as hardware. And by the way, these all integrate together. So if you were a school, a hotel, or anywhere else, You can start through the integration of an avatar, which is a far more cost-effective way to start. And then that eventually you can build on by integrating in hardware through the robots. And we think that's actually super unique to us as our, I think most of the things that we're doing are super unique to us. With that, I'm going to turn it over to Sue and ask her just to give an update on the Intima side of things.

Hi guys, Sue, so president of Intima. And for all those of you who don't know, we renamed Abyss to Intima and Intima is the parent company of our direct-to-consumer brand, RealDoll. So I think what I really want investors to understand is that the opportunity here at RealDoll is significant and importantly, we are not starting from zero. This is a 30 year old brand that has served over 50,000 customers and built a highly engaged audience, including more than 120,000 newsletter subscribers. This is not an idea on the back of a napkin. There is a real brand equity, real customer demand and a substantial installed base already here. This past quarter and next quarter are about building the foundations for scale. We're cleaning up and professionalizing the business, strengthening our operational processes, our systems, and go-to-market infrastructure so that as demand grows, the business is equipped to support that growth efficiently. The work I'm doing today is about ensuring that we're not simply driving more revenue, but building the infrastructure required to scale it sustainably. Now, That being said, this category may not resonate with everyone, and that's okay. We are absolutely not trying to be everything to everyone. Realdol has spent 30 years building a real customer base with proven demand. Our job here is to serve that customer exceptionally well, deepen that relationship, and thoughtfully expand the addressable market from a position of strength. Why now? Why is RealDoll positioned at a really interesting time? What makes this moment particularly compelling for our company is that we believe we are at an inflection point. More than 680 million people globally are using AI Companions monthly, including 35 million in the U.S., with 28% of users reporting having had an intimate relationship with their AI companion. This tells us this is no longer fringe behavior. This is becoming a meaningful consumer category. As these digital relationships become more sophisticated, we believe the next frontier is embodiment, tactile experiences, will create the bridge between digital relationships and experiences in the physical world. This is the next stage of the AI story and the AI stack. RealDoll already has many of the rails required to build this bridge. 30 years of manufacturing expertise, established customer base, proprietary hardware, API software built to interact with physical interfaces, and decades of experiencing creating products specifically designed around intimacy, interaction, and companionship. So NVIDIA, for example, didn't build every AI application itself. It built critical infrastructure that enabled an entire ecosystem of AI companies, developers, and cloud providers to build on top of it. Our ambition at Realdol is to play a similar role enabling AI embodiment. Rather than trying to build every AI companion around every conversational experience, we found this past quarter that our real edge is in providing the physical infrastructure and integration layer that allows these AI companion platforms and chatbots to extend their relationships into the physical world. So really our opportunity is bigger than any single avatar app or product that already exists in the intimacy space. We are effectively building towards becoming the NVIDIA of AI embodiment, providing the rails that allow anyone with an AI companion, again, 35 million in the US, 680 million globally, to have an embodied physical AI experience. We believe our 30-year history, manufacturing capabilities, and existing customer base, plus the APIs we've already built, give us a highly differentiated foundation from which to pursue this opportunity. And finally, I think I do personally bring a different perspective to this category at an important moment in its development. AI and intimacy is still extremely nascent technology, and our focus is on helping to establish the rules where really there are no rules yet. Establish parameters for responsible innovation where parameters are still effectively being defined. This means thinking beyond what we can build to what we should build. How we approach safety, guardrails, privacy, and responsible product design in real time as we build. Thinking about things like how do we ensure that an embodied AI doesn't perpetuate the issues we are already beginning to see emerge with AI companions. and double down on the stuff that is working and that is working right now in the AI companion space. Having diverse perspectives at the table as this category develops is incredibly important. And for me, this opportunity isn't simply to commercialize a new technology. It's to also really help shape an emerging category thoughtfully, responsibly, while still pushing the boundaries of what this technology can become. And Andrew, with that, I'll hand it back to you.