Press release·09/26/2026 00:10:58

Overview of CID Holdco, Inc.

CID Holdco, Inc. (the “Company” or “CID Holdco”) is a technology company that helps businesses optimize their operations through real-time tracking of resources using its asset tracking platform. The company was formerly known as SEE ID Inc. and was incorporated in Delaware with headquarters in Las Vegas, Nevada.

The company develops an IoT-based platform that leverages technologies like passive and active RFID, low-power edge cameras, and artificial intelligence to provide precision-based location tracking. CID Holdco serves customers across industries including construction, military, mining, retail, warehousing, and manufacturing.

In June 2025, CID Holdco completed a business combination with ShoulderUp Technology Acquisition Corp, a special purpose acquisition company (SPAC). As part of the transaction, CID Holdco’s common stock began trading on the Nasdaq exchange. In May 2026, the company implemented a 1-for-25 reverse stock split.

Financial Performance

For the three and six months ended June 30, 2026, CID Holdco reported the following financial results:

Metric	Q2 2026	Q2 2025	% Change
Revenue	$12,398	$126,833	-90.2%
Cost of Goods Sold	$6,638	$67,194	-90.1%
Gross Profit	$5,760	$59,639	-90.3%
Gross Margin	46.5%	47.0%	-

Revenue decreased significantly by 90.2% and 94.9% for the three and six month periods, respectively, compared to the prior year. This was primarily due to a shift in the revenue mix, as the company transitioned from primarily hardware sales to a focus on SaaS subscription revenue from its software platform.

The decreases in revenue and cost of goods sold resulted in a 90.3% and 96.1% decline in gross profit for the three and six month periods, respectively. Gross margin remained relatively stable at 46.5% and 62.2% for the respective periods.

Operating Expenses

CID Holdco’s operating expenses for the three and six months ended June 30, 2026 and 2025 are summarized below:

Expense	Q2 2026	Q2 2025	% Change
Research & Development	$394,769	$181,641	117.3%
Sales & Marketing	$373,695	$770,247	-51.5%
General & Administrative	$2,099,979	$824,204	154.8%

Research and development expenses increased significantly by 117.3% and 74.8% for the three and six month periods, respectively, driven by higher labor and cloud-related costs.

Sales and marketing expenses decreased by 51.5% and 11.4% as the company reduced spending on brand marketing, events, and software tools.

General and administrative expenses grew substantially by 154.8% and 213.2%, primarily due to higher costs associated with operating as a public company, including legal, accounting, and board fees, as well as increased labor costs.

Liquidity and Capital Resources

As of June 30, 2026, CID Holdco had $456,069 in cash, a working capital deficit of $9,475,752, and an accumulated deficit of $69,687,375. The company has funded its operations to date primarily through proceeds from the business combination, bridge loans, and other short-term borrowings.

To address its liquidity needs, CID Holdco has taken the following actions:

• Entered into a $50 million Standby Equity Purchase Agreement (SEPA) with New Circle Principal Investment LLC, which provides the company the right to sell shares to New Circle at a discounted price. As of June 30, 2026, the company had issued 61,200 shares under the SEPA for gross proceeds of $560,180.

• Obtained a $5 million senior secured convertible loan facility from J.J. Astor & Co., of which $922,772 was outstanding as of June 30, 2026.

• Entered into a $10 million common stock purchase agreement with White Lion, under which the company received $640,192 in proceeds from the issuance of 329,898 shares as of June 30, 2026.

• Received $690,000 in net proceeds from a convertible note financing with White Lion.

• Obtained $349,996 in unsecured, subordinated loans from the company’s executive officers.

Despite these financing activities, the company’s financial statements express substantial doubt about its ability to continue as a going concern within one year from the report date. CID Holdco will need to obtain additional near-term financing and/or significantly reduce spending to fund its ongoing operations and research and development efforts.

Key Factors Affecting Performance

CID Holdco’s financial performance is influenced by several key factors:

1. Acquiring New Customers: The company’s ability to grow its customer base through effective sales and marketing efforts is crucial for driving revenue growth.

2. Expanding Within Existing Customers: Increasing adoption and usage of the company’s platform by existing customers represents a significant opportunity for expansion.

3. Investments in Innovation: Continued investment in research and development to enhance the company’s Dot Cloud platform and introduce new applications is important for maintaining a competitive edge.

4. Public Company Costs: As a newly public company, CID Holdco is facing increased legal, accounting, and compliance expenses, which are weighing on its profitability.

Outlook and Conclusion

CID Holdco’s financial results for the first half of 2026 reflect the challenges the company is facing as it transitions its business model and operates as a public company. The significant decline in revenue and widening losses raise substantial doubt about the company’s ability to continue as a going concern without additional financing or substantial cost reductions.

To address its liquidity issues, the company has secured various financing arrangements, including equity lines of credit and convertible debt. However, the terms of these agreements, such as the discounted share prices, have resulted in further dilution and losses for the company.

Looking ahead, CID Holdco’s ability to successfully acquire new customers, expand within its existing customer base, and continue investing in product innovation will be critical for driving revenue growth and improving its financial position. At the same time, the company will need to carefully manage its operating expenses, particularly the public company-related costs, to preserve cash and work towards profitability.

Overall, CID Holdco faces significant challenges in the near-term, and its long-term success will depend on its ability to execute its strategic initiatives while securing the necessary financing to fund its operations and growth plans.