Executive Summary / Key Takeaways

• Tribal Rides International Corp. (XNDA) has undergone a dramatic strategic pivot, divesting its ridesharing technology business to focus entirely on the food technology sector, with its initial foray being icewater vending machines.
• The company is currently in a pre-revenue development stage in its new segment, reporting significant net losses and an accumulated deficit of $2.82 million as of June 30, 2025.
• XNDA faces an urgent and substantial need for additional capital to fund its new growth plan, with management acknowledging a going concern risk if sufficient funding and profitable operations are not achieved.
• A key asset is a $5.00 million investment in Boumarang Inc. common stock, acquired from the sale of its former intellectual property, which represents a potential source of liquidity.
• Investors should view XNDA as a highly speculative opportunity, dependent on successful capital raises, strategic acquisitions, and the effective launch of revenue-generating products or services in the competitive food tech space.

A Transformative Pivot to Food Technology

Tribal Rides International Corp. (NASDAQ:XNDA), originally incorporated as Trimax Consulting, Inc. in 2014, has a history marked by significant strategic shifts. The company initially provided property tax lien services before pivoting to the ridesharing and autonomous vehicle markets in 2020. During this period, XNDA developed a digital transportation enablement platform, supported by U.S. Patent No. 9.98M and U.S. Patent No. 11.22M, among other intellectual properties. This platform leveraged artificial intelligence (AI), machine learning with optimization, and Smart Deployment algorithms to anticipate passenger demand, dispatch cars efficiently, and reduce wait times, while also featuring a system for tracking and charging customers with preferred rates and community engagement.

However, a profound transformation occurred on December 31, 2024, when XNDA divested substantially all of its intellectual property and related intangible assets, including its ridesharing patents and software, to Boumarang Inc. for 2.91 million shares of Boumarang common stock, valued at $5.00 million. This transaction marked a complete exit from the transportation technology business and the first step in a strategic transition to pursue opportunities in the burgeoning food technology (food tech) sector. Following this divestiture, XNDA discontinued the development of its ridesharing and autonomous vehicle platform. The company's new direction was further solidified on June 30, 2025, with the acquisition of SUPA Food Services LLC, a related party, which brought 1,157 commercial icewater vending machines into XNDA's portfolio. This acquisition, valued at $40,809 for the machines and an additional $84,191 allocated to intangible assets like customer site contracts and location rights, is intended to establish a foundation for revenue generation from water machine operations.

The food tech industry itself is undergoing rapid evolution, driven by global demand for healthier, more sustainable, and technology-enabled food solutions. Trends include AI-driven personalization, radical automation, and the increasing importance of data analytics for supply chain optimization and consumer understanding. Digitalization is seen as a key strategy for survival and competitive advantage in this evolving landscape. XNDA's entry into this sector, particularly with a focus on vending machines, positions it in a segment that could benefit from automation and localized distribution. However, unlike its previous venture with patented AI-driven software, the company has not yet articulated a specific, differentiated technological moat for its new vending machine operations. The strategic intent is to build operational infrastructure and identify future partnerships and acquisitions within this sector.

Financial Performance: A Development Stage Enterprise

XNDA's financial performance reflects its current status as a company in a pre-commercialization and developmental phase within its new food tech segment. For the three and six months ended June 30, 2025, the company did not generate any revenue. This is consistent with its strategic pivot and the nascent stage of its new operations.

The company reported a net loss of $22,955 for the three months ended June 30, 2025, and a net loss of $162,619 for the six months ended June 30, 2025. While the six-month net loss decreased compared to the prior year, this was primarily due to a one-time non-cash gain of $174,350 from the extinguishment of liabilities owed to related parties. Operating expenses, however, increased to $150,827 for the three months ended June 30, 2025, from $0 in the comparable prior-year period. This increase reflects heightened general and administrative expenses as operational activity commenced with the acquisition of SUPA and the strategic pivot.

From a liquidity standpoint, XNDA faces significant challenges. As of June 30, 2025, the company had a mere $2,973 in cash, a modest increase from no cash on hand at December 31, 2024. It reported an accumulated deficit of $2.82 million and a working capital deficit of $816,037 as of June 30, 2025. These figures underscore the company's substantial cash burn and its reliance on external funding. The investment in Boumarang Inc. common stock, valued at $5.00 million, represents a significant non-core asset and a potential source of future liquidity, which management intends to evaluate for monetization.

Outlook and Capital Imperatives

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 the food tech space. Management explicitly anticipates the need to raise "significant additional capital" over the next twelve months to accomplish its growth plan. However, XNDA currently has no specific plans or agreements for new funding sources, expecting to seek capital through private equity or public markets. There is no assurance regarding the availability or terms of such financing.

A critical deadline looms: if XNDA is unable to generate sufficient revenues by December 31, 2025, it will require additional capital through new investors, further cost reductions, and strategic adjustments to improve operational cash flow. This highlights the urgency of its capital needs and the speculative nature of its current business model.

Risks: A High-Wire Act

Investing in XNDA at this juncture carries substantial risks, prominently including a going concern warning from its independent auditors for the fiscal years ended December 31, 2024, and 2023. The company's ability to continue operations is contingent upon securing equity or debt financing and achieving profitable operations from future business acquisitions. Without sufficient capital, XNDA could be forced to cease operations.

The investment in Boumarang shares, while a significant asset, is subject to market risk and volatility, as well as risks associated with Boumarang's own operations and financial condition. Furthermore, XNDA has identified a material weakness in its internal control over financial reporting as of June 30, 2025, which could impact financial reporting reliability. The challenges of entering a new, competitive market like food tech, establishing brand recognition, and developing a profitable operational model from scratch also present considerable hurdles.

Competitive Landscape in the New Era

XNDA's competitive positioning has been fundamentally reset by its pivot to the food technology sector. While the company previously operated in the ridesharing space, facing established giants like Uber Technologies (UBER), Lyft (LYFT), and DoorDash (DASH), its divestiture of that business means those prior competitive dynamics are no longer directly applicable to its current operations. In its former ridesharing capacity, XNDA aimed to differentiate through a cloud-based social network for personalized group transportation and cost-sharing, leveraging its patented AI and machine learning algorithms. This approach sought to create network effects through user groups and offer more tailored experiences than its larger, more generalized competitors.

However, with the sale of its ridesharing intellectual property, XNDA is now a nascent player in the food tech industry. The competitive landscape for icewater vending machines, and the broader food tech sector, is diverse and rapidly evolving. This new market includes a wide array of companies focusing on everything from food delivery and preparation automation to supply chain optimization and personalized nutrition. XNDA's current competitive advantages in this new arena are largely unproven and must be built from the ground up. The acquisition of SUPA Food Services LLC and its vending machines provides an initial operational footprint, along with intangible assets like customer site contracts and location rights. These assets form the basis for establishing a competitive presence, but they do not, at this stage, represent a unique technological moat comparable to its former patented software.

The company's smaller scale and lack of established brand recognition in food tech are significant vulnerabilities. In contrast to the robust financial performance and diversified revenue streams of established players in related sectors (e.g., Nasdaq (NDAQ) reporting strong Q2 2025 revenue growth and profitability), XNDA is starting from a pre-revenue position. Its ability to compete effectively will depend on its capacity to innovate, secure strategic partnerships, and efficiently scale its new vending machine operations, potentially integrating new technologies to enhance customer experience or operational efficiency, as is a broader trend in the restaurant and food service technology landscape.

Conclusion

Tribal Rides International Corp. (NASDAQ:XNDA) is at a pivotal juncture, having fully committed to a speculative rebirth in the food technology sector following the divestiture of its ridesharing business. The company's acquisition of icewater vending machines marks its initial step into this new market, aiming to establish a foundation for future revenue generation. However, XNDA currently operates without revenue in this new segment, reporting substantial net losses and an accumulated deficit, which has led to a going concern warning from its auditors.

The investment thesis for XNDA is fundamentally tied to its ability to secure significant additional capital, successfully execute its strategic plan of further acquisitions, and effectively launch profitable products or services in the competitive food tech space. While the $5.00 million investment in Boumarang Inc. provides a potential source of liquidity, the company's future remains highly dependent on external funding. Investors considering XNDA must weigh the high-risk, high-reward nature of a company in a complete strategic transition, where the establishment of a new competitive position and a clear path to profitability are paramount.