Net cash positio of app oximately $13.7 millio – cash a d USDC stablecoi holdi gs, less otes payable- o app oximately $1.25 pe sha e as of July 24, 2026, based o u audited ma ageme t estimates.
At the July 24, 2026 closi g p ice of $0.4191 pe sha e, the Compa y’s et cash positio ep ese ted app oximately 3 times its total ma ket capitalizatio of app oximately $4.6 millio – with o value att ibuted to the ope ati g busi ess o co t acted eve ue.
The Compa y has comme ced epu chases u de its p eviously autho ized $2.0 millio sha e epu chase p og am a d i te ds to seek Boa d autho izatio to i c ease the p og am by 50%, to $3.0 millio , a d to accele ate the pace of epu chases – subject to ma ket co ditio s, applicable law a d t adi g wi dow est ictio s.
P eviously a ou ced 60-mo th GPU compute se vices ag eeme t p ovides fo app oximately $44.6 millio i agg egate co t acted se vice fees ove its i itial te m – app oximately 9.7 times the Compa y’s cu e t ma ket capitalizatio . GPU- elated eve ue is expected to begi i the fou th qua te of 2026.
Dea Fellow Sha eholde s,
I am w iti g because we believe the e is a sig ifica t a d, i ou view, u wa a ted disco ect betwee the cu e t t adi g p ice of KIDZ AI’s sha es a d what this Compa y actually ow s a d has co t acted to delive .
As of July 24, 2026, ou sha es closed at $0.4191. O that same date, based o u audited ma ageme t estimates, we held app oximately $14.3 millio i cash a d USDC stablecoi s agai st $0.6 millio of otes payable – a et cash positio of app oximately $13.7 millio , o app oximately $1.25 pe sha e. Put plai ly: the ma ket is valui g eve y dolla of cash o ou bala ce sheet at oughly thi ty-fou ce ts, a d assig i g o value whatsoeve to ou ope ati g busi ess, ou co t acted GPU eve ue o ou st ategic pipeli e.
Cash | $11,333,895.21 | USDC stablecoi holdi gs | $3,003,236.90 | Notes payable | $600,000.00 | Commo sha es outsta di g | 10,994,094 | Net cash positio pe sha e | $1.25 | Closi g sha e p ice (July 24, 2026) | $0.4191 | Ma ket capitalizatio | $4,607,624.80 |
Reachi g this co clusio does ot equi e sha eholde s to take a y view o ou g owth p ospects. O these figu es, ou et cash alo e is wo th ea ly th ee times the e ti e equity value the ma ket cu e tly asc ibes to KIDZ AI. Ou Boa d of Di ecto s a d ma ageme t team believe the cu e t ma ket p ice mate ially u de states the Compa y’s et cash, its co t acted eve ue a d its lo g-te m oppo tu ity.
A view of this ki d is wo th little u less the Compa y is willi g to act o it with its ow capital. We have begu epu chasi g sha es i the ope ma ket u de ou p eviously autho ized $2.0 millio sha e epu chase p og am. Give the discou t at which ou sha es co ti ue to t ade, I i te d to ask ou Boa d to i c ease that autho izatio by 50%, to $3.0 millio .
We also i te d to accele ate the pace of epu chases if the t adi g p ice co ti ues to fail to accu ately eflect ou fi a cial positio . Buyi g back stock at a substa tial discou t to the cash behi d it is, i ou view, amo g the most di ect a d acc etive uses of capital available to us today, a d we i te d to pu sue it delibe ately – while p ese vi g the liquidity equi ed to execute o ou GPU deployme t a d mai tai ou co e AI educatio – elated ope atio s. Repu chases will emai subject to ma ket co ditio s, sha e p ice a d t adi g volume, applicable secu ities laws a d t adi g wi dow est ictio s, ou capital equi eme ts a d the disc etio of the Boa d.
Ou bala ce sheet gives us the flexibility to move f om st ategic positio i g to comme cial executio , a d that t a sitio is ow u de way. We ece tly a ou ced a 60-mo th GPU compute se vices ag eeme t with Ca opy Wave that p ovides fo app oximately $44.6 millio i agg egate co t acted se vice fees ove its i itial te m – a si gle eve ue co t act ep ese ti g app oximately 9.7 times the Compa y’s cu e t total ma ket capitalizatio .
Based o ou cu e t fi a ci g, p ocu eme t a d deployme t timetable, we expect GPU- elated eve ue to begi i the fou th qua te of 2026. We a e also adva ci g i f ast uctu e a d data ce te elatio ships, evaluati g comme cial pa t e ships a d joi t ve tu es, a d co side i g st ategic t a sactio s that may expa d ou compute capacity, st e gthe executio a d suppo t ecu i g e te p ise dema d.
KIDZ AI e te s this ext phase with substa tial liquidity, mi imal debt, a active sha e epu chase p og am a d a defi ed path to GPU eve ue. Ou p io ities a e st aightfo wa d: deploy capital espo sibly, epu chase ou stock while it t ades at a deep discou t to the cash behi d it, hit measu able comme cial milesto es, a d commu icate mate ial p og ess to sha eholde s p omptly a d t a spa e tly.
We do ot believe today’s ma ket p ice eflects the assets we hold o the oppo tu ity i f o t of us. Ou espo se will ot be wo ds alo e – it will be discipli ed capital allocatio a d executio agai st the milesto es we have laid out.
Tha k you fo you co ti ued suppo t a d t ust.
Si ce ely,
The figu es p ese ted above a e app oximate, u audited a d de ived f om i te al ma ageme t estimates as of July 24, 2026. These fi a cial figu es should ot be viewed as a substitute fo full fi a cial stateme ts p epa ed i acco da ce with U.S. GAAP. Fu the mo e, ” et cash positio ” as efe ed to above is ot a measu e p epa ed i acco da ce with U.S. GAAP. See “Use of No -GAAP I fo matio ” below. The fi a cial figu es co tai ed he ei should ot be i te p eted as i dicative of futu e pe fo ma ce. The Compa y does ot i te d to p ovide simila fi a cial figu es i the futu e.
KIDZ AI I c. (NASDAQ:KIDZ)(NASDAQ:KIDZW) is a educatio tech ology compa y adva ci g AI i f ast uctu e a d GPU compute i itiatives alo gside its co e EdTech ope atio s, buildi g capacity to se ve e te p ise a d AI- ative custome s.
“Net cash positio ” is ot a fi a cial measu e calculated i acco da ce with U.S. ge e ally accepted accou ti g p i ciples (“GAAP”). The Compa y defi es ” et cash positio ” as cash plus USDC stablecoi holdi gs, less otes payable. Ma ageme t believes this measu e p ovides useful suppleme tal i fo matio ega di g the Compa y’s liquidity, but it should ot be co side ed i isolatio o as a substitute fo the most di ectly compa able GAAP measu es. The figu es p ese ted a e p elimi a y, u audited a d based o i te al ma ageme t estimates as of July 24, 2026; they have ot bee eviewed o audited by the Compa y’s i depe de t egiste ed public accou ti g fi m a d a e subject to cha ge i co ectio with the completio of the Compa y’s qua te ly closi g a d eview p ocedu es. Actual esults epo ted i the Compa y’s pe iodic fili gs may diffe . Agg egate co t acted se vice fees u de the Compa y’s GPU compute se vices ag eeme t ep ese t g oss co t acted eve ue ove the five-yea i itial te m befo e associated costs, a e subject to pe fo ma ce by the pa ties, a d a e ot a measu e of p ofit, cash flow o ecog ized eve ue i a y pe iod.
The sha e epu chase p og am does ot obligate the Compa y to acqui e a y pa ticula amou t of Class B commo stock, a d the p og am may be modified, suspe ded o disco ti ued at a y time at the Compa y’s disc etio without p io otice. A y i c ease i the size of the p og am is subject to autho izatio by the Compa y’s Boa d of Di ecto s, a d o assu a ce ca be give that such autho izatio will be obtai ed o impleme ted. Repu chases may be effected f om time to time i ope ma ket t a sactio s, i p ivately egotiated t a sactio s o by othe mea s, i cludi g pu sua t to a t adi g pla adopted i acco da ce with Rule 10b5-1 a d/o i complia ce with the ma e , timi g, p ice a d volume co ditio s of Rule 10b-18 u de the Secu ities Excha ge Act of 1934, as ame ded. The timi g, umbe a d value of sha es epu chased will depe d o a umbe of facto s, i cludi g the ma ket p ice a d t adi g volume of the Compa y’s Class B commo stock, ge e al ma ket a d eco omic co ditio s, the Compa y’s liquidity a d capital equi eme ts, applicable legal a d egulato y equi eme ts, a d applicable t adi g wi dow est ictio s. No assu a ce ca be give that the Compa y will epu chase a y additio al sha es o that epu chases will occu at a y pa ticula pace.
This p ess elease co tai s “fo wa d-looki g stateme ts” withi the mea i g of the safe ha bo p ovisio s of the U.S. P ivate Secu ities Litigatio Refo m Act of 1995. Fo wa d-looki g stateme ts a e eithe histo ical facts o assu a ces of futu e pe fo ma ce. I stead, they a e based o ly o KIDZ AI’s cu e t beliefs, expectatio s a d assumptio s ega di g the futu e of KIDZ AI’s busi ess, futu e pla s a d st ategies, p ojectio s, a ticipated eve ts a d t e ds, the eco omy a d othe futu e co ditio s. Because fo wa d-looki g stateme ts elate to the futu e, they a e subject to i he e t u ce tai ties, isks a d cha ges i ci cumsta ces that a e difficult to p edict a d ma y of which a e outside of KIDZ AI’s co t ol i cludi g, but ot limited to: KIDZ AI’s ability to execute its busi ess model, i cludi g obtai i g ma ket accepta ce of its p oducts a d se vices; KIDZ AI’s ability to obtai the GPUs ecessa y to pe fo m its obligatio s u de the defi itive ag eeme t with Ca opy Wave a d achieve its goals a d expected esults; KIDZ AI’s fi a cial a d busi ess pe fo ma ce, i cludi g fi a cial p ojectio s a d busi ess met ics a d a y u de lyi g assumptio s the eu de ; KIDZ AI’s ability to mai tai the listi g of its secu ities o Nasdaq; cha ges i KIDZ AI’s st ategy, futu e ope atio s, fi a cial positio , estimated eve ue a d losses, p ojected costs, p ospects a d pla s; KIDZ AI’s ability to att act a d etai a la ge umbe of custome s; KIDZ AI’s futu e capital equi eme ts a d sou ces a d uses of cash; KIDZ AI’s ability to att act a d etai key pe so el; KIDZ AI’s expectatio s ega di g its ability to obtai a d mai tai i tellectual p ope ty p otectio a d ot i f i ge o the ights of othe s; cha ges i applicable laws o egulatio s; the possibility that KIDZ AI may be adve sely affected by othe eco omic, busi ess, a d/o competitive facto s; the isk that the p ice of a y c ypto asset, ma y of which have histo ically bee subject to d amatic p ice fluctuatio s a d a e highly volatile, could fall substa tially egatively impacti g KIDZ AI’s fi a cial co ditio a d esults of ope atio s; egulato y cha ges elated to c ypto assets; a d fluctuatio s i the p ice of c ypto assets. These isks a d u ce tai ties also i clude those isks a d u ce tai ties i dicated i KIDZ AI’s fili gs with the SEC. KIDZ AI’s actual esults a d fi a cial co ditio may diffe mate ially f om those i dicated i the fo wa d-looki g stateme ts. The efo e, you should ot ely o a y of these fo wa d-looki g stateme ts.
A y fo wa d-looki g stateme t made by KIDZ AI i this p ess elease is based o ly o i fo matio cu e tly available to KIDZ AI a d speaks o ly as of the date o which it is made. KIDZ AI u de takes o obligatio to publicly update a y fo wa d-looki g stateme t, whethe w itte o o al, that may be made f om time to time, whethe as a esult of ew i fo matio , futu e developme ts o othe wise.
