CID Holdco Reports 96.5% Revenue Decline and $4.5 Million Net Loss in Q1 2026

CID Holdco, Inc. reported a significant decline in financial performance for the first quarter of 2026, with total revenue of $12,214, a decrease of 96.5% compared to $352,498 in the same period of 2025. The company's gross profit also fell sharply to $9,548 from $335,420, reflecting a gross margin of 78.2%, down from 95.2% a year earlier. The decline in revenue was primarily attributed to a shift in the revenue mix, as the previous year's figures included substantial amounts from product specifications and customer exclusivity agreements, which were not present in the current quarter.

Operating expenses surged to $4.1 million in the first quarter of 2026, up from $2.1 million in the prior year, driven by increased general and administrative costs associated with operating as a public company, as well as higher research and development expenses. The net loss for the quarter was $4.5 million, compared to a loss of $1.3 million in the first quarter of 2025, resulting in a net loss per share of $0.15, compared to $0.11 in the previous year.

CID Holdco has undergone significant strategic changes, including a business combination with ShoulderUp Technology Acquisition Corp. in June 2025, which has positioned the company for future growth. The company is focusing on expanding its customer base and enhancing its product offerings, particularly in the Industrial IoT sector. As part of its growth strategy, CID Holdco has also entered into financing arrangements, including a recent equity purchase agreement with White Lion Capital, allowing the company to raise up to $10 million in capital.

Operationally, CID Holdco has seen fluctuations in its customer base, with revenue concentrated among a few clients. For the first quarter of 2026, two customers accounted for 100% of total revenue, with one customer representing approximately 62%. The company is actively working to diversify its customer base and increase engagement metrics as it continues to develop its asset tracking platform.

Looking ahead, CID Holdco anticipates continued operating losses and recognizes the need for additional financing to support its research and development activities. The company has expressed concerns about its ability to continue as a going concern if it cannot secure necessary funding. Management is focused on improving liquidity and operational efficiency while navigating the challenges of a competitive market landscape.