Dot Ai announces 1-for-25 reverse stock split effective Friday

LAS VEGAS - CID HoldCo, Inc., operating as Dot Ai (NASDAQ:DAIC), announced a one-for-twenty-five reverse stock split of its common stock, according to a press release statement.

The reverse stock split becomes effective at 4:01 p.m. Eastern Time on Friday, with shares beginning to trade on a split-adjusted basis on The Nasdaq Stock Market when markets open on June 1, 2026. The stock will continue trading under the symbol DAIC with a new CUSIP number of 171756208.The move comes as DAIC shares trade at $0.18, down 98% over the past year from a 52-week high of $75. According to InvestingPro analysis, the stock appears undervalued relative to its Fair Value, though the company faces significant financial headwinds with a "WEAK" overall health score.

Stockholders approved the reverse stock split at the annual meeting held on May 12, 2026. The approval authorized an amendment to the company’s Amended and Restated Certificate of Incorporation to effect a reverse stock split at a ratio between one-for-ten and one-for-twenty-five, with the final ratio set by the Board of Directors.

Upon the effective date, every twenty-five issued and outstanding shares of common stock will be combined into one share. This will reduce the number of outstanding common stock shares from approximately 30.26 million to approximately 1.21 million shares.

Fractional shares will not be issued. Stockholders will receive cash instead of any fractional shares created by the reverse stock split. The reverse stock split is not expected to affect stockholders’ ownership percentages, except where fractional shares would result.

Continental Stock Transfer and Trust will serve as the paying agent and will provide stockholders with transaction statements reflecting post-split shareholdings. Stockholders holding shares through brokers, banks, trusts or similar organizations will have their positions automatically adjusted and will not need to take action.

Dot Ai describes itself as an IoT and AI-based SaaS company providing asset intelligence technology for supply chain operations, serving industries including aviation, construction, delivery, military, mining, retail, sea ports, medical logistics, warehousing and manufacturing.For deeper insights into DAIC’s financial position, including exclusive ProTips and comprehensive analysis, investors can access the full Pro Research Report on InvestingPro, available for this and 1,400+ other US equities.

In other recent news, Dot Ai reported a net loss of $4.5 million in its first-quarter 2026 earnings call. The company is undergoing a strategic shift from hardware sales to a subscription-based revenue model. Despite the net loss, Dot Ai maintains a robust gross margin of 78.2%, indicating the resilience of its business framework. These developments are part of Dot Ai’s broader efforts to adapt to changing market dynamics. The transition reflects the company’s focus on long-term growth through recurring revenue streams. Analysts have been closely monitoring Dot Ai’s strategic adjustments, although no specific upgrades or downgrades were noted from major firms in the latest reports. Investors are keenly observing how this transition will impact Dot Ai’s financial performance in future quarters.

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