Executive Summary / Key Takeaways

• Radical Strategic Pivot: Tribal Rides International (XNDA) has executed a complete divestiture of its historical, non-revenue-generating ridesharing technology business, pivoting entirely to the high-growth food technology (food tech) sector. This marks a fundamental shift in its investment thesis.
• Severe Financial Distress: The company operates with no cash, significant accumulated deficits of $2.80 million, and a working capital deficit of $746,001 as of December 31, 2024, leading to a substantial doubt about its ability to continue as a going concern.
• New Leadership and First Acquisition: A new management team, including CEO Adam Clode, has been appointed to steer this transition. The acquisition of Supa Food Services LLC in June 2025 represents the first concrete step into the food tech market, providing a foundational asset for the new strategy.
• Boumarang Investment as Liquidity Bridge: The $5.00 million in Boumarang common stock received from the ridesharing asset sale offers a critical, albeit market-volatile, source of liquidity to fund initial operations and future acquisitions in the food tech space.
• High-Risk, High-Reward Outlook: XNDA is currently in a development stage with no operating revenues. Its future hinges entirely on successful capital raises, strategic acquisitions, and effective execution in a new, competitive industry, presenting a speculative yet potentially transformative investment opportunity.

The Phoenix's Gambit: A Strategic Pivot to Food Tech

Tribal Rides International Corp. (XNDA) stands at a pivotal juncture, having executed a dramatic strategic pivot that redefines its very essence. From its origins in property tax lien services in 2014, through an ambitious but ultimately unsuccessful foray into ridesharing and autonomous vehicle technology, the company is now embarking on a high-stakes reinvention. This transformation sees XNDA shedding its past to pursue opportunities in the burgeoning food technology sector, a move driven by the global demand for healthier, more sustainable, and technology-enabled food solutions. This narrative explores the company's journey, its current precarious financial state, the strategic rationale behind its bold shift, and the significant challenges and opportunities that lie ahead for investors.

From Ridesharing Dreams to Divestiture's Reality

XNDA's recent history was defined by its commitment to disrupting the ridesharing and autonomous vehicle markets. From January 2020 through December 2024, the company invested in developing a digital transportation enablement platform. This platform was underpinned by proprietary software and patented technologies, including U.S. Patent No. 9,984,574 and U.S. Patent No. 11,217,101.

The core technological differentiation focused on artificial intelligence (AI), machine learning with optimization, and "Smart Deployment" algorithms. These innovations were designed to anticipate passenger demand and dispatch vehicles proactively, aiming to minimize wait times, maximize vehicle utilization, and reduce operational costs. Furthermore, the system included advanced features for tracking and charging customers with preferred rates, dynamic supply and demand pricing, and specific community engagement functionalities. The strategic intent behind these technological advancements was to create a more efficient and user-centric ridesharing experience, thereby building a competitive moat against established players.

However, despite these technological aspirations, the ridesharing venture failed to generate any revenue in 2023 or 2024. The operating expenses for this discontinued segment were $137,791 in 2023 and $88,196 in 2024, reflecting a winding down of operations. The "so what" for investors is clear: while the technology was innovative in its design, it did not translate into commercial success or a sustainable business model in a highly competitive market dominated by giants like Uber (UBER) and Lyft (LYFT). These larger competitors benefit from immense scale, established networks, and significant capital, allowing them to achieve superior operating profit margins (e.g., Uber's 0.06 and Lyft's -0.02 in 2024) and robust cash flow generation, which XNDA could not match.

This stark reality culminated on December 31, 2024, when XNDA divested substantially all of its intellectual property and related intangible assets to Boumarang Inc. for 2.91 million shares of Boumarang common stock, valued at $5.00 million. This transaction definitively closed the chapter on XNDA's ridesharing ambitions, marking a strategic retreat from a market it could not penetrate effectively.

Forging a New Path: The Food Tech Frontier

The divestiture of its ridesharing assets was not an exit but a strategic re-entry into a new arena: food technology. XNDA's management believes the food tech industry presents significant opportunities, driven by global demand for healthier, more sustainable, and technology-enabled food solutions. This broad industry trend underpins the company's new strategic direction.

Currently, XNDA is in a development stage, actively evaluating strategic partnerships, acquisitions, and product initiatives within this sector. A tangible step in this new direction was the acquisition of all membership interests of Supa Food Services LLC, effective June 30, 2025. This acquisition provides XNDA with its first operational foothold in the food tech space, though specific details on Supa's technology, performance metrics, or market position are not yet publicly detailed. The company's future operations are entirely dependent on its ability to raise additional capital, complete further acquisitions, and successfully launch products or services in this new sector.

A Lean Financial Landscape and the Going Concern Challenge

XNDA's financial position underscores the high-risk nature of its current transformation. As of December 31, 2024, and 2023, the company reported no cash on hand. It carried an accumulated deficit of $2.80 million in 2024 (improving slightly from $2.85 million in 2023) and a working capital deficit of $746,001 (improving from $846,618 in 2023). The net income of $52,842 in fiscal 2024 was not a result of operational revenue, but primarily from one-time non-cash gains on the extinguishment of derivative liabilities and debt modifications.

These figures paint a clear picture of a company facing severe liquidity challenges. The independent auditors have included an explanatory paragraph expressing substantial doubt about XNDA's ability to continue as a going concern. Management explicitly stated that the company lacks the cash to meet working capital and corporate development needs for the twelve months following December 31, 2023.

The $5.00 million investment in Boumarang common stock, obtained from the asset sale, is a critical non-core holding. It represents a potential source of liquidity to fund the transition into food technology. However, the value of these shares is subject to market risk and volatility, adding another layer of uncertainty to XNDA's financial stability.

Leadership for a New Era

Recognizing the monumental task of this strategic pivot, XNDA has undergone a significant leadership change. In February 2025, former CEO Joseph Grimes sold a substantial portion of his shares and resigned, alongside other key board members. Adam Clode was appointed Chief Executive Officer and Director, bringing experience in international business operations, corporate finance, mergers and acquisitions, and project management.

He is joined by new directors Candice Beaumont, with extensive experience in private equity, venture capital, global asset allocation, and strategic corporate governance, and John McMullen, who offers expertise in operations, technology management, and leadership across fintech and blockchain sectors. This new leadership team's collective experience in M&A, capital markets, and technology will be crucial for executing the ambitious food tech strategy, particularly in identifying and integrating new assets and securing necessary funding.

The Competitive Gauntlet: Entering a New Arena

XNDA's past in ridesharing demonstrated the formidable barriers to entry and the intense competition from well-capitalized, established players. While XNDA's patented technologies focused on AI-driven efficiency and social networking for rides, these differentiators were insufficient to generate revenue or compete with the scale and market penetration of companies like Uber, Lyft, or Didi Global Inc. (DIDI). These incumbents boast robust ecosystems, strong brand recognition, and significantly greater financial resources, as evidenced by their positive gross and operating margins, and substantial cash flows.

Now, XNDA is entering the food tech sector, an entirely new competitive landscape. This industry is characterized by diverse players ranging from innovative startups to large, established food corporations and technology giants exploring new food solutions. The challenges include intense competition for market share, the need for significant R&D investment, complex supply chain logistics, and evolving consumer preferences. XNDA, currently in a development stage with no operating revenues, faces the daunting task of building a competitive advantage from scratch. Its success will depend on its ability to identify truly differentiated technologies or business models within food tech, execute acquisitions effectively, and rapidly scale operations to achieve profitability.

Risks on the Road Ahead

The investment thesis for XNDA is fraught with significant risks. The most immediate is the company's going concern status, directly tied to its inability to generate revenue and its dependence on external capital. There are no assurances that XNDA will successfully raise the additional capital required to fund its new food tech initiatives. The termination of the Singta Industries Inc. acquisition agreement in June 2025 highlights the inherent difficulties and uncertainties in executing M&A-driven growth strategies.

Furthermore, the company has identified material weaknesses in its internal control over financial reporting as of December 31, 2023, including a lack of segregation of duties and inadequate governance. While remediation plans are underway, these weaknesses pose operational risks. The investment in Boumarang shares, while a source of potential liquidity, is subject to market volatility, and its value could fluctuate significantly. As a penny stock, XNDA also faces reduced liquidity and increased transaction costs for investors.

Conclusion

Tribal Rides International is undergoing a profound and high-stakes reinvention. The company's decisive pivot from a failed ridesharing venture to the promising, yet challenging, food technology sector represents a bold attempt to find a viable path forward. While the divestiture of its former assets and the acquisition of Supa Food Services LLC signal concrete steps in this new direction, XNDA's current financial state is dire, marked by zero operational revenue and a going concern warning.

The success of this reinvention hinges on the new leadership team's ability to secure substantial additional capital, execute a coherent acquisition strategy, and rapidly develop or integrate compelling technological solutions within the food tech market. For discerning investors, XNDA presents a speculative opportunity, a bet on a complete corporate transformation. The path ahead is uncertain and fraught with execution risk, but the potential upside, if the company can successfully establish itself in the food tech frontier, could be significant. Close monitoring of capital raises, strategic acquisitions, and the emergence of a clear, revenue-generating business model will be paramount.