Company Overview - Kodiak Robotics, now rebranded as Kodiak AI, has debuted on the exchanges following a merger with SPAC Ares Acquisition Corp. II, sponsored by Ares Management Corporation [1] - Founded in 2018, Kodiak AI focuses on developing autonomous driving technology specifically for long-haul trucking and freight logistics, offering a business model that includes Driver-as-a-Service (DaaS) and subscription/licensing fees [4] Financial Highlights - The merger with Ares Acquisition Corp. II secured over $212.5 million from institutional investors, comprising approximately $145 million in PIPE financing and about $62.9 million in cash from AACT's trust account before expenses [2] - The company plans to utilize the proceeds to scale its driverless fleet and enhance investment in research and development for autonomous driving technology [2] Market Potential - The market for autonomous vehicles, particularly in the commercial trucking sector, is projected to grow significantly, with estimates suggesting it could reach $7.42 billion by 2034 and $185.4 billion by 2035, while Ares Acquisition Corp. II's estimate is even more optimistic at $4 trillion [5] - Kodiak AI operates in a growing market with credible reports supporting this growth potential [5] Operational Insights - Kodiak AI has a unique position in the autonomous trucking space, currently generating revenue with autonomous trucks operating on real-world routes, specifically transporting materials for Atlas Energy Solutions [6] - The company has a fleet of four trucks currently transporting frac sand in the Permian Basin, with plans to scale up to 100 trucks under a managed corridor agreement [6]

Bring in show music, please. >> Hi, I'm CNBC producer Katie Kramer. Today on Squawk Pod. Yep, we're here again. Another government funding deadline looms. Democratic Senator Gene Shaheen on the devil in the details. Everybody needs to stop the Kabuki theater and go to the table and negotiate. That's what the American people are expecting. And the White House lays the groundwork for mass firings at the federal level if there's a shutdown October 1st. Reporter Emily Wilkins on what's safe. >> Things like bord ...

Company Strategy - Kodiak Robotics 将会更名，并寻求在公开市场首次亮相的机会，以推广其自动驾驶商业卡车软件 [1] Industry Focus - 行业关注 Kodiak Robotics 在自动驾驶商业卡车领域的软件开发 [1]

Core Insights - Kodiak Robotics is set to begin trading on Nasdaq following the approval of its $2.5 billion SPAC deal by Ares Acquisition Corp. II shareholders [1][2] - The approval meeting saw nearly 67% of voting power present, with approximately 88% voting in favor of the business combination [2] - Kodiak will be listed under the ticker symbols KDK for common stock and KDKRW for warrants [2] Financial Overview - Ares Acquisition Corp. II's trust account had $562 million in cash as of August 18, but heavy shareholder redemptions reduced this to $62.9 million before expenses [3] - Despite the reduced funding from the trust, Kodiak has secured over $200 million from institutional investors [4] - The company initially aimed for a $100 million private investment in public equity, and the new funding is expected to support its long-term success [5]

Group 1 - Ares Acquisition Corporation II (AACT) shares increased by 6.42% in after-hours trading, reaching $9.45 following successful fundraising for a merger with Kodiak Robotics [1] - Institutional investors have committed over $212.5 million in PIPE financing for the merger, exceeding the initial target of $100 million, with notable backing from Soros Fund Management and ARK Investments [2][3] - The total funding package for the merger exceeds $275 million when combined with approximately $62.9 million remaining in the trust account after redemptions [2] Group 2 - The post-merger company plans to list on NASDAQ under the ticker symbols "KDK" for common stock and "KDKRW" for warrants, contingent on meeting all listing criteria and closing conditions [3] - Over the past year, AACT has experienced a 17.78% decline, with a peak price of $11.54 on June 2, and a 20.57% loss over the last six months [4] - AACT's market capitalization is $549.31 million, with an average trading volume of 464,430 shares and a price-to-earnings ratio of 33.99 [4]

Core Insights - Kodiak Robotics has successfully delivered its first autonomous truck directly from a factory production line, marking a significant milestone in the company's operations [1] - The partnership with Roush Industries is pivotal for scaling the production of autonomous trucks, with plans to produce hundreds of units by the end of 2026 [3] Company Developments - The first Roush-upfitted truck was delivered to Atlas Energy Solutions, which had previously placed an order for 100 Kodiak Driver-equipped trucks starting in December 2024 [2] - As of now, Atlas has received eight of these driverless trucks, indicating a gradual rollout of the technology [2] Manufacturing Partnership - Roush Industries has established a dedicated production line for upfitting autonomous trucks, demonstrating its capability to meet Kodiak's high standards [3][4] - The collaboration is expected to enhance the efficiency and scalability of Kodiak's manufacturing process [4] Market Positioning - Kodiak Robotics aims to transform the freight and logistics market through its partnership with Roush, positioning itself strongly within the trucking industry [2] - The company is also planning to go public via a SPAC merger with Ares Acquisition Corporation II, with a potential Nasdaq listing on September 25 [4]

Group 1 - Kodiak Robotics is merging with Ares Acquisition Corporation II in a deal valued at $2.6 billion, indicating significant investment interest in the autonomous trucking sector [1] - The company has projected a substantial total addressable market for autonomous trucking, highlighting the industry's growth potential [1]

Core Insights - Kodiak Robotics and Roush Industries are collaborating to scale the deployment of Kodiak Driver-equipped autonomous trucks, with production expected to begin in the second half of 2025 [1][3] - Roush will establish a production line for upfitting trucks with Kodiak's modular and vehicle-agnostic hardware, which includes proprietary SensorPods and AI compute systems [3][4] - The partnership aims to enhance manufacturing flexibility and quality management, allowing for customization of various vehicle configurations to meet diverse trucking industry demands [5] Company Overview - Kodiak Robotics, founded in 2018, specializes in AI-powered autonomous vehicle technology aimed at addressing supply chain challenges and enhancing transportation safety [6][7] - The Kodiak Driver is operational without a human driver and has been deployed in both commercial and public sector applications, marking a significant milestone in driverless trucking [7] - Roush Industries has nearly 50 years of experience in product development and is recognized for its expertise in upfitting complex vehicles, including autonomous ones [4][8] Market Potential - The collaboration is positioned to tap into the trucking industry's estimated global market opportunity of over $4 trillion, with Kodiak planning to accelerate its go-to-market strategy through a proposed business combination with Ares Acquisition Corporation II [5]

Core Viewpoint - Kodiak Robotics is preparing to become a publicly-listed company through a business combination with Ares Acquisition Corporation II, enhancing its board with experienced members to support this transition [1][3]. Company Overview - Kodiak Robotics, founded in 2018, specializes in AI-powered autonomous vehicle technology, particularly for commercial trucking and public sector applications [4]. - The company has been delivering freight using its autonomous technology across the southern United States and was the first to publicly announce the delivery of a driverless semi-truck to a customer in 2024 [4]. Board Appointments - Ken Goldman and Kristin Sverchek have been appointed to Kodiak's board of directors, bringing extensive experience in public company financial and technology leadership [1][3]. - Goldman has over four decades of experience, having served as CFO for notable companies like Yahoo! and Fortinet, and has helped multiple companies go public [5]. - Sverchek, former President of Lyft, played a key role in guiding Lyft through its IPO and has significant expertise in corporate governance and technology-enabled transportation [5]. Business Combination Details - Kodiak announced a definitive business combination agreement with Ares Acquisition Corporation II, expected to close in the second half of 2025, pending approvals [3]. - Upon completion, the combined entity will be named Kodiak AI, Inc., with its common stock and public warrants anticipated to be listed on a national stock exchange under the ticker symbols KDK and KDK WS [3].

Financial Data and Key Metrics Changes - The company generated net investment income (NII) of $0.27 per share, consistent with the previous quarter but down from $0.38 per share in the same quarter last year [26] - The net asset value (NAV) decreased to $7.57 per share from $8.43 at the end of the previous quarter and $9.64 a year ago, primarily due to fair value adjustments and distributions [27] - Investment income for the first quarter was $25 million, slightly down from $26 million in the prior year period, attributed to lower interest and fee income [24] Business Line Data and Key Metrics Changes - The portfolio at the end of the first quarter stood at $690 million, with new debt investments totaling $100 million and equity investments of $2 million [11] - The debt portfolio yield was 15% for the quarter, compared to 15.6% in the same quarter last year, while onboarding yields were 13%, up from 12.6% in the previous quarter [24][12] - The company funded nine debt investments during the quarter, with a significant portion directed towards life science and technology sectors [11] Market Data and Key Metrics Changes - Approximately $92 billion was invested in VC-backed companies in the first quarter, marking a 19% increase from the previous quarter, driven largely by large AI deals [17] - The exit market for VC-backed tech and life science companies remains nearly shut due to tariff-related uncertainties, impacting investor sentiment [18] - The S&P Biotech Select Industry Index is down 14% year over year, reflecting cooling investor sentiment in the life sciences market [18] Company Strategy and Development Direction - The company aims to grow its portfolio while maintaining a focus on high-quality investments, particularly in the tech and life science sectors [10] - The management remains selective in originating loans due to the current macroeconomic environment, with a commitment to optimizing returns from stressed investments [15] - The partnership with Monroe Capital is expected to enhance capital access and operational support, aiding in portfolio growth [9] Management's Comments on Operating Environment and Future Outlook - The management expressed guarded optimism for 2025, despite macroeconomic headwinds impacting recovery from stressed assets [6] - The company anticipates that the venture debt market will remain active, providing opportunities for investment despite current challenges [10] - Management highlighted the importance of maintaining strong liquidity and a robust balance sheet to navigate the current environment [23] Other Important Information - The company declared regular monthly distributions of $0.11 per share through September 2025, supported by undistributed spillover income of $1 per share [7][26] - The company has a committed backlog of $236 million, providing a solid base for future portfolio growth [8] Q&A Session Summary Question: How is the company managing spillover earnings in the current uncertain environment? - The company plans to continue growing distributions through 2025 and will manage spillover earnings quarterly, with confidence in covering distributions over time [32][34] Question: What is the quality of deals currently being pursued? - The company is seeing a higher bar for transaction selection, focusing on companies with strong operational performance and quality VC backing [36][37] Question: Will the company raise leverage ratios to grow the portfolio? - The target leverage ratio is around 1.2x to 1.3x, with the current ratio at 1.29x, indicating a cautious approach to leverage [41] Question: Is there any discussion about cutting the base management fee? - The company’s base management fee is competitive with industry standards, and it is reviewed regularly [43] Question: How does the company plan to address the frozen market conditions? - The company is focusing on generating yield through higher returns from existing portfolio companies rather than relying on warrant expectations [55][52] Question: What is the impact of tariffs on the portfolio? - The primary impact of tariffs is the uncertainty they create, affecting market transactions rather than direct exposure to specific tariffs [63] Question: Has the partnership with Monroe Capital provided additional resources? - The partnership is expected to enhance operational support and focus on stabilizing and growing the business [66]