EX-99.1 2 ea026560101ex99-1_cidhold.htm PRESS RELEASE DATED NOVEMBER 13, 2025

Exhibit 99.1

 

CONFIDENTIAL DRAFT

 

 

Dot Ai Announces Third Quarter 2025 Financial Results

 

LAS VEGAS, NevadaNovember 13, 2025 – Dot Ai (Nasdaq: DAIC) (“Dot Ai” or the “Company”), an IoT and AI-based SaaS company at the forefront of Asset Intelligence technology, today announced its financial results for the third quarter 2025.

 

“In the third quarter, we built and shipped our initial hardware platform orders, validating market demand for our innovative solutions and demonstrating momentum in the business,” said Ed Nabrotzky, CEO of Dot Ai. “Looking to the balance of 2025 and into next year, we have the right team and strategy in place to accelerate pipeline conversion and drive material revenue contribution, delivering on our commitment to revolutionize asset intelligence and transform the modern supply chain.”

 

Recent Business and Financial Highlights

 

Third quarter revenue of approximately $800k represents initial order fulfillment and production ramp at our Puerto Rico facility.

 

In November, Dot Ai announced leadership additions including Robyn D‘Elia, an experienced former public company CFO to enhance our finance function on a fractional basis, and Miles Bradley, our new Director of Channels, with primary responsibility for expanding the company’s partner ecosystem.

 

In October, Dot Ai completed development of a new version of our SaaS architecture, Dot Matrix 3.0, which includes a multi-tenant architecture designed to deliver in-process visibility and secure asset management across a wide range of industries and environments, allowing distributors, integrators, and operators to deploy and manage complex, multi-site programs from a single platform. This platform will continue under tests throughout the fourth quarter.

 

In September, Dot Ai obtained certification of its cybersecurity system compliant with SOC 2 Type 1 standards. In September, Dot Ai announced new hardware platform orders and an expansion of its Puerto Rico manufacturing operations, reflecting the broad applicability of Dot Ai's Asset Intelligence platform, and its commitment to advancing high-tech manufacturing in Puerto Rico.

 

In August, Dot Ai announced its first international distribution partnership with CanTech Group in Australia, who will serve as Dot Ai’s Australia-region reseller and installation partner for the company’s SaaS platform and proprietary tracking technologies.

 

In August, Dot Ai welcomed two new directors, Janice Bryant Howroyd and Walter Skowronski, executives with proven track records scaling public organizations and navigating complex industries.

 

In July, Dot Ai commenced production at its Barceloneta, Puerto Rico manufacturing facility, with the new facility intended for full production of Dot Ai’s Zero Infrastructure Mesh Bridge (ZiM Bridge) and smart asset tags.

 

 

 

 

 

Conference Call and Webcast Information

 

Dot Ai will host a conference call today, November 13, 2025, to discuss its results at 5 p.m. Eastern Time. A live webcast of the conference call can be accessed here or dial-in using the below number. A webcast replay of the call will also be available.

 

Telephone dial-in: 1-877-407-0789 or 1-201-689-8562

 

About Dot Ai

 

At the heart of the technological revolution in asset management and security lies Dot Ai, a trailblazing SaaS service that is defining Asset Intelligence for smart supply chain operations. By harnessing the power of real-time IoT tracking technology and AI-enhanced analytics, Dot Ai stands at the forefront of innovation, offering patented solutions that are not just advanced but transformative. Through relentless research and development, Dot Ai has engineered a suite of technologies that empower organizations to not only streamline their logistics and supply chain processes but also bolster operational security to unprecedented levels. Leveraging state-of-the-art AI engines, cutting-edge 5G RF and BLE technology, and seamless API integrations, Dot Ai transcends traditional boundaries, offering real-time asset visibility and predictive analytics that integrate effortlessly with existing infrastructure. This is not just technology; it's a vision for a more secure, efficient, and connected world. Discover more about how Dot Ai is leading the charge in Asset Intelligence by visiting https://daic.ai.

 

Forward-Looking Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, including statements regarding anticipated production capacity increases, facility expansion plans, expected order fulfillment, and future business growth. All forward-looking statements are based on Dot Ai's current expectations and beliefs concerning future developments and their potential effects on the company. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Readers are cautioned not to put undue reliance on forward-looking statements, and Dot Ai assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

 

Dot Ai Contacts

 

Investors and Media:

ICR, Inc.

dotai@icrinc.com

 

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CID HOLDCO, INC. AND SUBSIDIARIES

BALANCE SHEETS

 

   September 30,
2025
   December 31,
2024
 
   (Unaudited)     
ASSETS        
Current assets:          
Cash  $1,418,834   $721,032 
Accounts receivable   915,027    50,264 
Inventory   468,102    65,248 
Prepaid expenses and other current assets   744,194    167,551 
Total current assets   3,546,157    1,004,095 
Noncurrent assets:          
Property and equipment, net   478,171    11,286 
Operating lease right-of-use assets (ROU)   735,871    307,892 
Capitalized software development costs   2,660,194    1,761,396 
Long-term assets   25,713    12,103 
Total long-term assets   3,899,949    2,092,677 
Total assets  $7,446,106   $3,096,772 
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)          
Current liabilities:          
Accounts payable  $933,306   $770,276 
Accrued expenses   1,119,808    24,219 
Accrued compensation   75,228    246,720 
Accrued taxes   3,913,668    - 
Deferred revenue, current portion   2,772,178    1,142,643 
Operating lease liabilities, current portion   135,976    36,225 
Total current liabilities   8,950,164    2,220,083 
Long-term liabilities:          
SAFE notes, net   -    23,334,626 
Deferred revenue, net of current portion   -    1,570,572 
Operating lease liabilities, net of current portion   614,126    265,413 
Total long-term liabilities   614,126    25,170,611 
Total liabilities   9,564,290    27,390,694 
Shareholders’ equity (deficit)          
Common stock, $0.0001 par value; 300,000,000 shares authorized; 27,743,322 and 12,210,718 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively   2,774    1,221 
Additional paid-in capital   56,972,621    438,120 
Accumulated deficit   (59,093,579)   (24,733,263)
Total shareholders' equity (deficit)   (2,118,184)   (24,293,922)
Total liabilities and shareholders’ equity (deficit)  $7,446,106   $3,096,772 

 

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CID HOLDCO, INC. AND SUBSIDIARIES

STATEMENTS OF OPERATIONS (UNAUDITED)

 

   For the three months ended
September 30,
   For the nine months ended
September 30,
 
   2025   2024   2025   2024 
Revenue  $778,482   $81,636   $1,257,813   $183,631 
Cost of goods sold   488,286    7,997    572,558    18,006 
Gross profit   290,196    73,639    685,255    165,625 
Operating expenses:                    
General and administrative   2,742,753    506,886    4,184,688    1,064,461 
Research and development   397,135    186,678    972,640    459,991 
Sales and marketing   1,111,895    638,584    2,564,891    1,763,170 
Acquisition and integration   243,230    635,459    1,154,857    1,501,261 
Depreciation and amortization   11,738    -    16,839    - 
Total operating expenses   4,506,751    1,967,607    8,893,915    4,788,883 
Loss from operations   (4,216,555)   (1,893,968)   (8,208,660)   (4,623,258)
Other expenses:                    
Interest expense   -    -    (328,763)   - 
Change in fair value of SAFE notes   -    (764,446)   (17,368,415)   (14,227,156)
Transaction costs   -    -    (2,726,183)   - 
Loss on extinguishment of debt   -    -    (5,728,295)   - 
Total other expenses   -    (764,446)   (26,151,656)   (14,227,156)
Loss before income taxes   (4,216,555)   (2,658,414)   (34,360,316)   (18,850,414)
Provision for income taxes   -    -    -    - 
Net loss  $(4,216,555)  $(2,658,414)  $(34,360,316)  $(18,850,414)
                     
Net loss per share                    
Basic and diluted  $(0.15)  $(0.22)  $(1.89)  $(1.56)
Weighted average number of shares                    
Basic and diluted   27,645,033    12,210,718    18,146,608    12,095,288 

 

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CID HOLDCO, INC. AND SUBSIDIARIES

STATEMENTS OF CASH FLOWS (UNAUDITED)

 

   For the nine months ended
September 30,
 
   2025   2024 
OPERATING ACTIVITIES        
Net loss  $(34,360,316)  $(18,850,414)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   16,839     
Change in fair value of SAFE notes   17,368,415    14,227,156 
Transaction costs paid in shares   156,869     
Share-based compensation expense   28,862    187,001 
Noncash operating lease expense   64,857    11,890 
Loss on debt extinguishment   5,728,295     
Reverse recapitalization transaction   (4,739,169)    
Fair value of shares issued as commitment fee   350,000     
Change in operating assets and liabilities:          
Accounts receivable   (864,763)   (92,252)
Prepaid and other assets   (572,655)   107,218 
Inventory   (402,854)   (134,448)
Accounts payable   163,030    693,309 
Accrued expense   1,095,589    6,572 
Accrued compensation   (171,492)   (7,872)
Accrued interest   280,000     
Accrued taxes   3,913,668     
Operating lease liabilities   (61,968)   2,611 
Short-term debt, net   3,750,000     
Deferred revenue   58,963    750,000 
Net cash used in operating activities   (8,197,830)   (3,099,229)
INVESTING ACTIVITIES          
Purchase of property and equipment   (483,724)    
Capitalized software development costs   (898,798)   (579,327)
Net cash used in investing activities   (1,382,522)   (579,327)
FINANCING ACTIVITIES          
Proceeds from issuance of bridge loans   500,000     
Proceeds from issuance of SAFE notes   23,752    3,834,500 
Repayment of bridge loans   (1,660,545)    
Proceeds from PIPE investments   10,837,643     
Purchase of common stock   (5,000,000)    
Proceeds from Trust account   5,577,304     
Net cash provided by financing activities   10,278,154    3,834,500 
Net increase in cash during period   697,802    155,944 
Cash, beginning of period   721,032    605,760 
Cash, end of period  $1,418,834   $761,704 
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES          
ROU asset obtained in exchange for lease liability  $482,227   $324,426 
Conversion of SAFE notes to equity  $40,726,793   $ 
Conversion of short-term debt to equity  $2,456,500   $ 
Cash paid for interest  $39,462   $ 

 

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