KIDZ AI Issues Shareholder Letter Addressing Disconnect Between Current Share Price and Fundamentals

The company holds approximately $13.7 million net cash, nearly three times its market capitalisation and has begun share repurchases while seeking to expand the programme to $3 million. GPU compute revenue is expected to start in Q4 2026 under a $44.6 million long-term services agreement.

NEW YORK CITY, NY – July 27, 2026 —

KIDZ AI Inc. an education technology company advancing AI infrastructure and GPU compute initiatives alongside its core Ed Tech operations, today issued the following letter to shareholders from its Chief Executive Officer, Stephanie Luo. Letter sets out management’s view of the disconnect between the Company’s current trading price and its balance sheet and contracted commercial pipeline, updates shareholders on share repurchase activity, and reaffirms expected timing of initial GPU compute revenue:

Dear Fellow Shareholders,

I am writing because we believe there is a significant and, in our view,unwarranted disconnect between the current trading price of KIDZ AI’s shares and what this Company actually owns and has contracted to deliver.

As of July 24, 2026, our shares closed at $0.4191. On that same date, based on unaudited management estimates, we held approximately $14.3 million in cash and USDC stablecoins against $0.6 million of notes payable – a net cash position of approximately $13.7 million,or approximately $1.25 per share. Put plainly: market is valuing every dollar of cash on our balance sheet at roughly thirty-four cents, and assigning no value whatsoever to our operating business, our contracted GPU revenue or our strategic pipeline.

The Numbers as We See Them

Selected Balance Sheet and Market Data (unaudited)	As of July 24, 2026
Cash	$11,333,895.21
USDC stablecoin holdings	$3,003,236.90
Total cash and USDC stablecoins	$14,337,132.11
Notes payable	$600,000.00

Net cash position	$13,737,132.11
Common shares outstanding	10,994,094
Net cash position per share	$1.25
Closing share price (July 24, 2026)	$0.4191
Market capitalization	$4,607,624.80
Net cash position / market capitalization	2.98x

The Company believes its current market valuation materially undervalues its net cash position, contracted revenue and long-term growth opportunity, with net cash alone representing nearly three times its current market capitalisation.

Acting on That Conviction: Share Repurchases

The Company has begun repurchasing shares under its previously authorised $2.0 million share repurchase programme and intends to seek Board approval to increase the authorisation by 50% to $3.0 million. It also plans to accelerate repurchases if the share price continues to materially undervalue the Company’s financial position, while maintaining sufficient liquidity for its GPU deployment and core AI education operations. Any repurchases will remain subject to Board discretion, market conditions, share price and trading volume, capital requirements, applicable securities laws and trading window restrictions.

From Positioning to Revenue: GPU Commercialization

Our balance sheet gives us the flexibility to move from strategic positioning to commercial execution, and that transition is now underway. We recently announced a 60-month GPU compute services agreement with Canopy Wave that provides for approximately $44.6 million in aggregate contracted service fees over its initial term – a single revenue contract representing approximately 9.7 times the Company’s current total market capitalization.

Based on our current financing, procurement and deployment timetable, we expect GPU-related revenue to begin in fourth quarter of 2026. We are also advancing infrastructure and data center relationships, evaluating commercial partnerships and joint ventures, and considering strategic transactions that may expand our compute capacity, strengthen execution and support recurring enterprise demand.

Focused on Execution

KIDZ AI enters this next phase with substantial liquidity, minimal debt, an active share repurchase program and a defined path to GPU revenue. Our priorities are straightforward: deploy capital responsibly, repurchase our stock while it trades at a deep discount to the cash behind it, hit measurable commercial milestones, and communicate material progress to shareholders promptly and transparently.

We do not believe today’s market price reflects the assets we hold or the opportunity in front of us. Our response will not be words alone – it will be disciplined capital allocation and execution against the milestones we have laid out.

Thank you for your continued support and trust. Sincerely,

Stephanie Luo

Chief Executive Officer & Director KIDZ AI Inc.

Figures presented above are approximate, unaudited and derived from internal management estimates as of July 24, 2026.

These financial figures are preliminary and should not be considered a substitute for financial statements prepared in accordance with U.S. GAAP. The Company’s “net cash position” is a non-GAAP financial measure (see “Use of Non-GAAP Information” below). These figures are not indicative of future performance, and the Company does not intend to provide similar financial figures in the future.

About KIDZ AI Inc.

KIDZ AI Inc. is an education technology company advancing AI infrastructure and GPU compute initiatives alongside its core EdTech operations, building capacity to serve enterprise and AI-native customers.

Use of Non-GAAP Information

“Net cash position” is a non-GAAP financial measure defined as cash plus USDC stablecoin holdings, less notes payable. It is intended as supplemental information on the Company’s liquidity and should not be considered a substitute for GAAP measures. The figures are preliminary, unaudited management estimates as of July 24, 2026, have not been reviewed or audited by the Company’s independent registered public accounting firm, and remain subject to change upon completion of quarterly closing and review procedures. Actual reported results may differ. Aggregate contracted service fees under the Company’s GPU compute services agreement represent gross contracted revenue over the initial five-year term before associated costs, are subject to the parties’ performance, and do not represent profit, cash flow or recognised revenue in any period.

Share Repurchase Program

Share repurchase programme does not obligate the Company to repurchase any specific amount of Class B common stock and may be modified, suspended or terminated at any time without notice. Any increase in the programme remains subject to Board approval. Repurchases may be made through open market or privately negotiated transactions, including under Rules 10b5-1 and 10b-18. The timing, amount and value of repurchases will depend on market conditions, liquidity, legal and regulatory requirements, trading window restrictions and other factors. No assurance can be given regarding Board approval, additional repurchases or the pace of future buybacks.

Forward-Looking Statement

Press release contains forward-looking statements within the meaning of the safe harbour provisions of U.S. Private Securities Litigation Reform Act of 1995. These statements are not historical facts or guarantees of future performance and are based on KIDZ AI’s current beliefs, expectations and assumptions regarding its business, strategy, projections, anticipated events, market conditions and future performance. Forward-looking statements are subject to significant risks and uncertainties, many beyond KIDZ AI’s control, including its ability to execute business model; obtain market acceptance of its products and services; secure GPUs required to fulfil its obligations under the Canopy Wave agreement; achieve expected financial and operational results; maintain its Nasdaq listing; implement its strategy; meet projected revenue, cost and growth expectations; attract and retain customers and key personnel; obtain financing; protect intellectual property; comply with applicable laws and regulations; and impact of economic, business and competitive conditions. Additional risks include volatility and regulatory uncertainty of crypto assets, which may materially affect KIDZ AI’s financial condition and results. These and other risks are described in KIDZ AI’s SEC filings. Actual results and financial condition may differ materially from those expressed or implied by these forward-looking statements, and readers should not place undue reliance on them.

Any forward-looking statement made by KIDZ AI in this press release is based only on information currently available to KIDZ AI and speaks only as of date on which it is made. KIDZ AI undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Contact Info:
Name: Leo Liu
Email: Send Email
Organization: KIDZ AI Inc.
Phone: 800-345-9588
Website: https://www.kidzai.com/

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