RIME

Core Value Proposition

• Semicab builds an AI-powered orchestration layer for the $3 trillion global trucking industry to reduce costly empty miles (which average 1 out of every 3 miles driven globally, costing hundreds of billions annually in wasted costs and avoidable carbon emissions).
• Semicab's native multi-enterprise collaborative optimization engine identifies multi-stop round trips to assign to single trucks, and has demonstrated up to 70% empty mile reduction in real-world India case studies, delivering benefits to shippers, carriers, and end consumers.

Customer & Operational Expansion

• Q1 2026 delivered 5,716 loads across 14 customers, and grew the dedicated truck fleet by 30% from December 2025 to March 2026.
• Added new major India customers including Coca-Cola India and MTR Foods, expanded the master service agreement with Apollo Tires (India's second largest tire manufacturer), and deepened partnerships with existing shippers including Maraco and Bajaj Electrical.

Capital Structure Update

• Closed $9.5 million secured prepaid purchase financing in February 2026 to support Semicab growth, and fully repaid two prior prepaid purchases plus most of a third.
• Met the NASDAQ $2.5 million minimum stockholders' equity continued listing threshold, returning to positive equity of $3.2 million from a 2025 year-end deficit.

Promissory Note Payment Decision

• The company missed a scheduled $1.5 million promissory note payment (tied to the 2025 acquisition of Semicab India) due to a deliberate capital allocation choice, not a liquidity crisis: the firm held $10.9 million cash at quarter-end and $9.4 million as of May 12, 2026, and chose to invest capital in scaling Semicab operations and the APEX SaaS rollout instead of repaying the note now.
• Secured a 45-day forbearance and is in active constructive discussions to restructure the payment schedule to align with the company's operating priorities, and management does not view this as a material impediment to business.

APEX SaaS Platform Progress

• APEX is an asset-light, recurring-revenue SaaS platform that brings Semicab's AI technology to third-party logistics providers and large shippers in the U.S. and other international markets, designed to enhance (not replace) existing transportation management systems, and is not a digital freight brokerage.
• The U.S. sales pipeline is expanding, with active positive-progress sales cycles with multiple large global shippers and logistics providers, but enterprise sales cycles for this customer segment are inherently long due to multi-stakeholder evaluations, procurement processes, and pilot design. Management remains optimistic about converting the pipeline to pilot contracts and will announce wins when finalized.

• Revenue: Management expects revenue to continue growing through 2026, with Semicab's annualized revenue run rate forecast to reach $15 million to $20 million by the end of 2026. Growth will be driven primarily by the Semicab India managed services business, with additional initial revenue contribution from the APEX SaaS business in the U.S. and Europe.
• Gross margins: Gross loss as a percentage of revenue is expected to decrease over the next 12 months as revenue growth from new and expanded customer contracts outpaces increased truck access costs, as higher truck utilization spreads fixed contract costs across a larger revenue base.
• Operating expenses: While operating expenses will increase as the Semicab business scales, total operating expenses are expected to decrease on a net basis due to lower stock-based compensation and other operating costs.
• Other expenses: Other expenses are expected to remain at current similar levels over the next 12 months, driven by ongoing interest expense from completed financing transactions.
• Profitability: Increased revenue is expected to support bottom line improvement, but the bottom line will still be negatively impacted by higher operating expenses tied to business growth and scaling.

Continuing operations (only Semicab AI logistics business, legacy consumer electronics business is classified as discontinued operations post August 2025 sale):

• Q1 2026 net sales: $2.4 million, a 1850% increase from $123,000 in Q1 2025 (the 2025 figure came entirely from Semicab's legacy U.S. business, as the India business was not yet acquired). Net sales grew 71% sequentially from $1.4 million in Q4 2025, with all growth driven by the acquired Semicab India managed services segment.
• Q1 2026 gross loss: $680,000, compared to a $6,000 gross loss in Q1 2025.
• Q1 2026 operating expenses: $3.7 million, up from $1.1 million in Q1 2025.
• Q1 2026 other expenses: $1 million, down from $6.5 million in Q1 2025.
• Q1 2026 net loss from continuing operations: $5.4 million, a $2.1 million decrease from the $7.5 million net loss in Q1 2025.
• Balance sheet: $10.9 million cash on hand as of March 31, 2026, up from $6.1 million at December 31, 2025; positive stockholders' equity of $3.2 million, up from a $1.9 million deficit at the end of 2025.

• Forward-looking statements (including growth projections, customer pipeline conversion, and APEX rollout plans) are subject to inherent risks and uncertainties that could cause actual results to differ materially from projections, as detailed in the company's SEC filings.
• The ongoing promissory note restructuring carries uncertainty, though management is in active discussion and expects a mutually workable outcome and does not view it as a material risk.
• Semicab India's managed services model produces negative gross margins during the regional ramp-up period as the company pre-contracts for truck access before customer and route volume scales to fully utilize contracted capacity.
• Enterprise SaaS sales cycles for large U.S. and global customers are long, and there is risk that pipeline opportunities will not convert to signed contracts within the expected timeframe, or at all.
• The company was below the NASDAQ minimum stockholders' equity continued listing threshold at the end of 2025; while it now meets the threshold, any future deterioration of equity could put listing status at risk.

No investor questions were submitted during the Q&A segment of the earnings call. The call proceeded directly to closing remarks after the queue was confirmed empty.