Dot AI prepares for February IPO

Dot AI, an asset management and logistics firm, plans to have an initial public offering on February 11 and will be listed on Nasdaq under the ticker DAIC.

Dot AI is a software-as-a-service firm that offers real-time asset visibility, logistics and predictive analytics using artificial intelligence engines. The company is merging with ShoulderUp Acquisition, a special purpose acquisition company, to help secure its public listing.

"This transformative partnership with Dot AI represents a powerful convergence of innovation and leadership," said ShoulderUp CEO Phyllis W. Newhouse.

Dot AI, which previously went under the name SEE ID, recently signed a $175M distribution agreement with Wurth, a large industrial distributor.

Dot AI CEO Ed Nabrotzky said his company offers a service similar to Samsara (NYSE:IOT) and Zebra Technologies (NASDAQ:ZBRA).

"We are very much laser focused on the logistics in the manufacturing space," Nabrotzky said in an interview with Seeking Alpha. "The reason others have struggled is that they fail to use AI. We gather data at the edge."

Transforming into a public company has required significant effort. Headquartered in Las Vegas, Dot AI also operates a factory in Puerto Rico and operates multiple global offices.

"We spent about three years with our seed funding, building up our clients," Nabrotzky said. "We are tying to expand geographically. We expect to be a multi-billion dollar company."

In a recent SEC filing, Dot AI reported its fiscal year 2025 expectations. The company expects to achieve a gross margin of 75% on revenue of $10.8M. 

"We target small to medium-sized businesses ($50M up to $1B) who have a large volume of assets but may not have an optimal solution to manage them," reads the filing. "When we encounter these targets, we assess the fiscal opportunity and also their technological maturity to quickly filter the most attractive prospects. Initial deal sizes typically range from $150k to $250k for the first application, with potential of expanding to an ARR (annual recurring revenue) of $1M – $3M at maturity across the enterprise. As our business scales, we expect to increasingly focus our sales efforts on larger customers."