Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.

Throughout this report, the terms "our," "we," "us," "Vida," and the "Company" refer to VIDA Global Inc. References to our "management" or our "management team" refer to our officers and directors. Investors should read the following discussion and analysis of our financial condition and operating results together with our financial statements and the related notes thereto contained elsewhere in this Quarterly Report on Form 10-Q and our audited financial statements and related notes thereto as disclosed in our final prospectus dated May 14, 2026, filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act on May 18, 2026 (the "Prospectus"). This discussion contains forward-looking statements that involve risks and uncertainties. As a result of many factors, such as those set forth in the section of this report captioned "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q, as well as the section titled "Risk Factors" in our Prospectus, our actual results may differ materially from those anticipated in these forward-looking statements.

Overview

VIDA Global Inc. is building a cloud-based AI agent operating system that enables enterprises, service providers, and resellers to build, deploy, and manage omnichannel AI agents that handle voice calls, text messages, emails, and web chat while automating business workflows at scale. Our platform is designed to connect to systems companies already rely on, including phones, customer relationship management ("CRMs"), ticketing tools, calendars, and billing systems, and to support use cases such as recovering missed calls, qualifying leads, scheduling and confirming appointments, triaging support tickets, maintaining CRM accuracy, and initiating payments.

We are in the early stages of commercialization and have a limited operating history. Our results to date reflect significant investment in product development and go-to-market capabilities, as well as early customer and partner deployments. We expect to continue investing in our platform, reliability, security, compliance, partner enablement, and go-to-market initiatives. As a result, we expect to continue to incur net losses in the near term as we pursue growth and scale.

We believe we are operating at the beginning of a significant technology transition as businesses adopt AI agents as a new category of software to automate customer engagement and operational workflows. Our strategy is designed to drive adoption through trusted distribution channels. We believe this channel-led approach can help reduce onboarding friction and shorten time-to-value for customers by delivering integrated solutions through providers that customers already use and trust. We also believe our platform architecture, including multi-model orchestration, omnichannel connectivity, policy and compliance primitives, integrations and application programming interfaces ("APIs"), built-in observability and quality assurance, and white-label capabilities, positions us to scale with partners and customers over time.

Recent Developments

Initial Public Offering

On May 18, 2026, we completed our initial public offering (the "IPO") in which we issued and sold 3,750,000 shares of our Class A common stock at a public offering price of $4.00 per share, which resulted in net proceeds of approximately $12.7 million after deducting underwriting discounts and commissions and offering expenses payable by us. On May 27, 2026, we issued and sold an additional 312,500 shares of our Class A common stock at a public offering price of $4.00 per share pursuant to the underwriter's partial exercise of its over-allotment option granted in connection with the IPO. This resulted in additional net proceeds of approximately $1.1 million after deducting underwriting discounts and commissions and offering expenses payable by us.

In connection with the IPO, our second amended and restated certificate of incorporation became effective in Delaware and we adopted our amended and restated bylaws, each immediately after the effectiveness of the registration statement used in connection with the IPO. In connection therewith, we also reclassified certain of our outstanding common stock as Class B common stock, converted all outstanding shares of our Series Seed-1, Series Seed-2 and Series A preferred stock to Class A common stock, and effected a 3.57-for-1 stock split (as described below).

On May 18, 2026, we issued to The Benchmark Company, LLC or its designees warrants to purchase up to a total of 187,500 shares of our Class A common stock in connection with the IPO and on May 27, 2026, we issued to The Benchmark Company, LLC or its designees warrants to purchase up to a total of 15,625 additional shares of our Class A common stock pursuant to the underwriter's partial exercise of its over-allotment option granted in connection with the IPO (collectively, the "Representative's Warrants"). The Representative's Warrants are exercisable at $4.80 per share, are initially exercisable beginning on November 14, 2026, and will expire on May 14, 2031. The issuance of the Representative's Warrants was deemed to be exempt from registration under Section 4(a)(2) of the Securities Act as a transaction by an issuer not involving a public offering

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Stock Splits

On August 31, 2025, we effected a 2-for-1 stock split. On May 14, 2026, we effected a 3.57-for-1 stock split, effective immediately after the effectiveness of the registration statement used in connection with the IPO. No fractional shares of common stock were issued in connection with the stock splits, and all such fractional interests were rounded up to the nearest whole number. Issued and outstanding stock options and warrants were split on the same respective bases and exercise prices were adjusted accordingly. All share and per share amounts presented in this Form 10-Q and the associated unaudited condensed financial statements give effect to these stock splits.

Key Factors Affecting Our Results of Operations

Our operating results and period-to-period financial performance are influenced by a number of factors, including:

Early-stage commercialization and customer adoption. Our revenue remains limited as we continue to transition from development to broader commercialization. Revenue growth depends on our ability to attract new customers, expand deployments with existing customers, and scale through channel partners, as well as the pace at which customers move from pilot programs to production usage.

Partner-led distribution and productization. We are designed to support multi-tenant management and white-label deployments. Our performance depends in part on partner onboarding, partner enablement, partner packaging decisions, and the timing of partner launches. Partner sales cycles and customer conversion can create variability in revenue and operating results.

Usage-based economics and cost structure. Our revenue is derived from subscription and related usage-based fees. Our cost of revenue includes third-party infrastructure and services costs that may scale with usage and that may also include a fixed-cost component as we build and maintain a production-grade platform. As adoption scales, we believe we will have opportunities to optimize and reduce unit costs through engineering improvements, vendor negotiations, and usage routing and orchestration decisions. However, these improvements may not occur on our expected timeline, and our costs may increase as usage expands.

Investment in platform development (including capitalized software costs). We have invested significantly in building our platform. A substantial portion of these costs have been capitalized as internal-use software and are amortized over time. Amortization expense is a non-cash expense, but it affects our operating loss and may be significant while we continue to invest in product development.

Go-to-market investment and brand awareness. We expect to invest in sales and marketing to build partner relationships, increase awareness, generate demand, and support customer success. These investments may precede related revenue growth, particularly in partner-driven distribution models.

Bitcoin holdings. We hold bitcoin as part of our treasury strategy and account for bitcoin at fair value with changes recognized in other income (expense). As a result, our reported net loss may be significantly affected by changes in the market price of bitcoin, which is outside of our control and may introduce material volatility to our reported results.

Regulatory, compliance, and security requirements. Our customers and partners operate in regulated environments, particularly in communications and customer engagement. We expect to continue investing in reliability, security, privacy, and compliance features and processes. Changes in laws, regulations, or customer expectations could increase our compliance costs and affect product requirements and sales cycles.

Components of Our Results of Operations

Revenue. We generate revenue primarily from subscription fees and usage-based fees for access to and use of our platform. Contracts are generally cancellable and typically billed in advance on a monthly basis. We recognize revenue as the subscription and related services are provided and the customer simultaneously receives and consumes the benefits.

Cost of revenue - exclusive of amortization. Cost of revenue - exclusive of amortization consists primarily of third-party expenses required to deliver our platform, including cloud hosting, telecommunications and carrier costs, and other infrastructure costs. Cost of revenue - exclusive of amortization may vary based on customer usage and may also include a baseline level of costs associated with maintaining and operating our platform, supporting deployments, and improving reliability and performance.

Amortization and depreciation. Represents amortization of capitalized internal-use software costs related to our platform and supporting systems and depreciation on our computer equipment.

Sales and marketing. Includes costs related to partner enablement, marketing programs, advertising, and sales initiatives. Also includes personnel-related costs, including salaries, benefits, payroll taxes, and stock-based compensation expense related to stock options.

General and administrative. Includes professional fees (legal, accounting, and consulting), insurance, facilities, and other general corporate expenses. Also includes personnel-related costs, including salaries, benefits, payroll taxes, and stock-based compensation expense related to stock options and restricted stock (excluding amounts capitalized as internal-use software).

Other income (expense). Other income (expense) consists primarily of realized and unrealized gains and losses related to changes in the fair value of our bitcoin holdings.

Results of Operations for the three months ended June 30, 2026

The following table sets forth our results of operations for the periods indicated:

		For the three months Ended
		June 30,				June 30,				Three months
		2026				2025				Var ($)				Var (%)
Revenue			323,910				72,952				250,958				344	%
Operating expenses
Cost of revenue - exclusive of amortization of capitalized software costs shown separately			166,370				83,749				82,621				99	%
Amortization and depreciation			193,530				121,663				71,867				59	%
Sales and marketing expenses			586,960				141,489				445,471				315	%
General and administrative expenses			845,862				57,532				788,330				1370	%
Total operating expenses			1,792,722				404,433				1,388,289				343	%
Loss from operations			(1,468,812	)			(331,481	)			(1,137,331	)			343	%
Other expense (income)			99,578				(260,437	)			(360,015	)			(138	)%
Net loss			(1,568,390	)			(71,044	)			(1,497,346	)			2108	%

Revenue

Revenue increased by approximately $251,000 to approximately $324,000 for the three months ended June 30, 2026 from approximately $73,000 for the three months ended June 30, 2025. The increase was primarily driven by growth in subscription and usage-based fees as partner and enterprise customer adoption of our AI Agent OS increased during the period.

Operating Expenses

Cost of revenue increased by approximately $83,000 to approximately $166,000 for the three months ended June 30, 2026 from approximately $84,000 for the three months ended June 30, 2025. This increase was primarily attributable to higher software, hosting, cloud infrastructure, data, network services and other technology costs required to support the growth in customer usage of our platform.

General and administrative expenses increased by approximately $788,000 to approximately $846,000 for the three months ended June 30, 2026, compared to approximately $58,000 for the three months ended June 30, 2025, primarily due to an increase in legal and accounting services of approximately $277,000, an increase in salaries of approximately $286,000, increase in stock compensation of approximately $81,000, an increase in contract labor of approximately $95,000, an increase in office expenses of approximately $49,000. These increases were primarily attributable to the Company scaling and expanding its operations.

Sales and marketing expenses increased by approximately $445,000 to approximately $587,000 for the three months ended June 30, 2026, compared to approximately $141,000 for the three months ended June 30, 2025, primarily due to an increase in advertising and marketing fees incurred of approximately $130,000, an increase in salaries and employee benefits of approximately $163,000, increase in public relation expenses of approximately $130,000 and other expenses increase of approximately $10,000. These increases were primarily due to the Company working towards expanding its brand awareness and customer adoption.

Other Expense (income)

Other expense (income) was approximately $100,000 for the three months ended June 30, 2026, compared to other income of approximately $260,000 for the three months ended June 30, 2025, a change of approximately $360,000, driven by an unrealized loss on bitcoin in the current period compared to an unrealized gain and realized gain in the prior period.

Results of Operations for the six months ended June 30, 2026

The following table sets forth our results of operations for the periods indicated:

		For the six months Ended
		June 30,				June 30,				Six months
		2026				2025				Var ($)				Var (%)
Revenue			629,942				108,615				521,327				480	%
Operating expenses
Cost of revenue - exclusive of amortization of capitalized software costs shown separately			312,857				159,608				153,249				96	%
Amortization and depreciation			377,678				242,860				134,819				56	%
Sales and marketing expenses			818,132				252,201				565,931				224	%
General and administrative expenses			1,476,975				192,122				1,284,853				669	%
Total operating expenses			2,985,642				846,791				2,138,851				253	%
Loss from operations			(2,355,700	)			(738,176	)			(1,617,524	)			219	%
Other expense (income)			324,934				(145,099	)			(470,033	)			(324	)%
Net loss			(2,680,634	)			(593,077	)			(2,087,557	)			352	%

Revenue

Revenue increased by approximately $521,000 to approximately $630,000 for the six months ended June 30, 2026 from approximately $109,000 for the six months ended June 30, 2025. The increase was primarily driven by growth in subscription and usage-based fees as partner and enterprise customer adoption of our AI Agent OS increased during the period.

Operating Expenses

Cost of revenue increased by approximately $153,000 to approximately $313,000 for the six months ended June 30, 2026 from approximately $160,000 for the six months ended June 30, 2025. This increase was primarily attributable to higher software, hosting, cloud infrastructure, data, network services and other technology costs required to support the growth in customer usage of our platform.

General and administrative expenses increased by approximately $1,285,000 to approximately $1,477,000 for the six months ended June 30, 2026, compared to approximately $192,000 for the six months ended June 30, 2025, primarily due to an increase in legal and accounting services of approximately $419,000, an increase in salaries and employee benefits of approximately $477,000, an increase in stock compensation of approximately $144,000, an increase in contract labor of approximately $137,000, an increase in office expenses of approximately $108,000. These increases were primarily attributable to the Company scaling and expanding its operations.

Sales and marketing expenses increased by approximately $566,000 to approximately $818,000 for the six months ended June 30, 2026, compared to approximately $252,000 for the six months ended June 30, 2025, primarily due to an increase in advertising and marketing fees incurred of approximately $173,000, increase in public relations fees of approximately $105,000, an increase in salaries and employee benefits of approximately $262,000 and increase in other expenses of approximately $13,000. These increases were primarily due to the Company working towards expanding its brand awareness and customer adoption.

Other Expense (income)

Other expense (income) for the six months ended June 30, 2026, resulted in other expense of approximately $325,000, an increase of approximately $470,000 compared to approximately $145,000 of other income for the six months ended June 30, 2025 driven by an unrealized loss on bitcoin in the current period compared to an unrealized and realized gain in the prior period.

Liquidity and Capital Resources

Overview

Since inception, we have funded our operations primarily through equity financings, and we have historically used cash to fund working capital and investments in our platform.

As of June 30, 2026, we had:

	●	Cash of $14,480,176
	●	Bitcoin of $699,525 (Bitcoin, while carried at fair value and readily marketable, is subject to significant price volatility and is not a substitute for cash in assessing liquidity)
	●	Working capital of $14,210,074 (current assets less current liabilities)

Our current liabilities are limited and primarily consist of accounts payable, accrued expenses, credit card payable, and deferred revenue. We have no outstanding debt for borrowed money.

We expect to continue to incur operating losses and use cash in operations as we invest in growth. We believe our existing cash and bitcoin holdings will provide us with resources to fund operations and planned investments. We believe it is probable that we will be able to meet our obligations as they become due for at least the next twelve months after the date the condensed financial statements included in this Quarterly Report on Form 10-Q are issued. However, our future capital requirements will depend on many factors, including the pace of revenue growth, the timing and extent of investment in product development and go-to-market initiatives, and our ability to manage third-party platform costs.

In connection with our IPO completed on May 18, 2026 and the underwriter's partial exercise of its over-allotment option completed on May 27, 2026, we received net proceeds of approximately $13.8 million after deducting underwriting discounts, commissions and offering expenses. Since the completion of the IPO, all cash proceeds remained available and were held in cash. As of June 30, 2026, there have been no material changes in the planned use of proceeds from those described in our final prospectus.

Bitcoin Treasury Reserve

Since 2022, we have held bitcoin as part of our treasury strategy. As of June 30, 2026, we held 11.690 bitcoin. We believe that incorporating bitcoin as part of our treasury strategy can act as a hedge against inflation and currency devaluation and offers long-term appreciation potential. In addition, including bitcoin on our balance sheet provides diversification to our treasury holdings. We have funded our bitcoin treasury through invested capital, contribution in exchange for securities and periodic purchases. Unlike digital asset treasury (DAT) companies, we do not expect to conduct securities offerings for the purpose of accumulating and holding significant amounts of crypto assets to generate yield. Instead, we expect that we may selectively purchase additional bitcoin when we believe it offers a good value proposition or store of value. In addition, consistent with past practice, we may from time to time sell bitcoin to fund operations and growth. Our purchases and sales of bitcoin currently take place on cryptocurrency exchanges, including Kraken. We may in the future, but do not currently expect to include other crypto assets as part of our treasury strategy.

As of June 30, 2026, we do not self-custody and only utilize third-party qualified custodians to hold our bitcoin. We use a qualified custodian that utilizes risk management and operational best practices around items like hot vs. cold storage, access controls, custody technology, insurance, etc. As of the date hereof, our third-party custodian is Kraken (legally named Payward, Inc.). In connection therewith, on February 5, 2026, we entered into a written custody agreement with Kraken, pursuant to which Kraken has agreed to provide us with services relating to, among other things, trading, execution and custody of our bitcoin pursuant to our instructions in exchange for fees and expenses as set forth in the custody agreement. The custody agreement with Kraken has a term of one year, with automatic renewals for successive one-year terms annually, unless earlier terminated or not renewed pursuant to the terms thereof. All private keys are held in cold storage. Our bitcoin stored by Kraken is not commingled with assets of other customers. Kraken does not carry insurance for any losses of the bitcoin it custodies for us. If we further execute on our treasury strategy, we may include additional custodians. Currently, there is no entity that is responsible for verifying the existence of our crypto assets.

Cash Flows

The following table presents the major components of net cash flows used in operating, investing, and financing activities, for the six months ended June 30, 2026 and 2025, respectively.

		For the Six months Ended June 30,
		2026				2025
Net cash used in:
Operating activities		$	(1,497,725	)		$	(318,449	)
Investing activities			(328,477	)			(230,654	)
Financing activities			13,988,617				-
Net change in cash		$	12,162,415			$	(549,103	)

Cash Flows from Operating Activities

During the first six months of 2026, the net cash outflow from operating activities was approximately $1,497,700. This amount was comprised primarily of our net loss of approximately $2,681,000; offset primarily by amortization and depreciation of approximately $377,700, an unrealized loss on bitcoin of approximately $323,800, stock-based compensation from restricted stock awards of approximately $241,700 and an increase in accrued expenses of approximately $307,000.

During the first six months of 2025, we had net cash used in operating activities of approximately $318,500. The cash used in operating activities was composed primarily of our net loss of approximately $593,000, realized gain on bitcoin of approximately $79,000, and the unrealized gain on bitcoin of approximately $66,100, offset primarily by amortization and depreciation of approximately $242,900, and stock-based compensation from restricted stock awards of approximately $120,800.

Cash Flows from Investing Activities

During the six months ended June 30, 2026, cash outflow from investing activities of approximately $328,500 consisted entirely of capitalized software costs. During the six months ended June 30, 2025, the net cash outflow from investing activities of approximately $230,700 comprised of approximately $336,700 of capitalized software costs partially offset by approximately $106,000 of proceeds from the sale of bitcoin.

Cash Flows from Financing Activities

During the six months ended June 30, 2026, all cash flows from financing activities was related to proceeds from issuance of common stock in relation to IPO. We did not have any cash flows from financing activities during the six months ended June 30, 2025.

Capital Resources and Contractual Obligations

In the normal course of business, the Company enters into noncancelable contracts with certain vendors for services such as cloud hosting, software subscriptions and support. As of June 30, 2026, future minimum noncancelable purchase commitments under four software agreements was $83,703 due within one year.

We believe our existing liquidity and access to capital will support our plan to meet these obligations as they come due.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.

Critical Accounting Policies and Estimates

Our significant accounting policies and estimates are summarized in Note 2, "Summary of Significant Accounting Policies" included within the Notes to our unaudited condensed financial statements included elsewhere in this quarterly report on Form 10-Q and in Note 2 to our audited annual financial statements included in the Prospectus.

There have been no significant changes in our critical accounting policies and estimates during the six months ending June 30, 2026 as compared with those previously disclosed in the Prospectus.

Recently Issued Accounting Pronouncements

See Note 2 to our unaudited condensed financial statements included herein and Note 2 to our audited annual financial statements for the year ended December 31, 2025 included in the Prospectus for information about recent accounting pronouncements, the timing of their adoption, and our assessment, to the extent we have made one, of their potential impact on our financial condition and results of operations.