KIDZ AI Inc. Issues Shareholder Letter: Highlights Major Value Disconnect, Share Repurchases, and GPU Revenue Pipeline

NEW YORK, NY – July 27, 2026 – KIDZ AI Inc. (NASDAQ: KIDZ, NASDAQ: KIDZW), an education technology company focused on AI infrastructure and GPU compute services, has issued a detailed shareholder letter from CEO Stephanie Luo. The letter addresses a significant disconnect between the company’s current share price and its underlying fundamentals, outlines ongoing and expanded share repurchase activity, and provides updates regarding a transformative GPU compute contract set to begin generating revenue in Q4 2026.

Key Highlights for Investors

• Net Cash Position Dramatically Exceeds Market Cap:
  • As of July 24, 2026, KIDZ AI held approximately \$14.3 million in cash and USDC stablecoins, offset by just \$0.6 million in notes payable, for a net cash position of \$13.7 million (about \$1.25 per share).
  • At the July 24 closing price of \$0.4191 per share—equating to a market cap of just \$4.6 million—the market is valuing each dollar of cash at roughly 34 cents, and attributing zero value to the company’s operating business or contracted revenue pipeline.
• Active and Expanding Share Repurchase Program:
  • KIDZ AI has started repurchasing shares under its previously authorized \$2.0 million buyback program.
  • CEO Luo will seek Board approval to increase the repurchase program by 50% to \$3.0 million and accelerate the pace of repurchases while maintaining sufficient liquidity for operations and GPU deployment.
  • Repurchases are subject to market conditions, legal constraints, and Board discretion, and may be conducted through open market or privately negotiated transactions.
• Major GPU Compute Revenue Pipeline:
  • KIDZ AI has secured a 60-month GPU compute services agreement with Canopy Wave, providing for approximately \$44.6 million in aggregate contracted service fees over the initial five-year term—an amount nearly 10 times the company’s current market cap.
  • GPU-related revenue is expected to commence in Q4 2026. The company is also pursuing partnerships and strategic transactions to expand its compute capacity and commercial reach.
• Financial Discipline and Capital Allocation:
  • KIDZ AI maintains significant liquidity and minimal debt, providing flexibility for both operational and capital return strategies.
  • Management emphasizes disciplined, accretive capital allocation—specifically, buying back stock at a discount to net cash value and investing in GPU deployment.

Details Investors Must Know (Potentially Price-Sensitive Information)

• Share Price and Valuation Disconnect:
  • The company’s net cash per share (\$1.25) is nearly three times higher than the latest share price (\$0.4191), suggesting a severe undervaluation by the market.
  • The Board and management directly state their belief that the current share price materially understates KIDZ AI’s net cash, contracted revenue, and long-term commercial prospects.
• Share Buyback Acceleration:
  • Any increase in the buyback program is subject to Board approval, but management has committed to acting decisively if the share price continues to reflect a substantial discount to net cash.
  • Such buybacks, if executed aggressively, could provide significant near-term support to the stock price and are considered highly accretive to shareholder value.
• Commencement of GPU Revenue:
  • The company is transitioning from strategic positioning to commercial execution, with contracted GPU revenue expected to begin in Q4 2026.
  • The \$44.6 million, five-year contract with Canopy Wave is subject to performance and the company’s ability to procure and deploy the necessary hardware—representing a substantial revenue opportunity relative to current market value.
• Risk Factors and Non-GAAP Measures:
  • All financial figures are unaudited, management estimates as of July 24, 2026, and “net cash position” is a non-GAAP measure (cash plus USDC stablecoin holdings, less notes payable).
  • Forward-looking statements are subject to risks, including ability to execute the business model, market acceptance, GPU procurement challenges, crypto asset volatility, and regulatory changes.

Summary Table (as of July 24, 2026)

Management’s Message to Shareholders

CEO Stephanie Luo emphasized: “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… Our response will not be words alone – it will be disciplined capital allocation and execution against the milestones we have laid out.”

Conclusion

The combination of a net cash position far in excess of market cap, an active and potentially expanding share buyback program, and a major GPU compute contract set to deliver material revenue represents a highly newsworthy and potentially price-moving set of disclosures for KIDZ AI Inc. shareholders. Investors should monitor future updates regarding buyback execution, GPU revenue commencement, and any new commercial or strategic partnerships.

About KIDZ AI Inc.

KIDZ AI Inc. (NASDAQ: KIDZ, NASDAQ: KIDZW) 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.

Contact

Email: [email protected]
Phone: 800-345-9588

Disclaimer: This article is for informational purposes only and does not constitute investment, legal, or financial advice. The financial figures reported are unaudited, based on management estimates as of July 24, 2026, and may be subject to change. Forward-looking statements are inherently uncertain and actual outcomes may differ materially due to risks and uncertainties. Readers should consult official company filings and perform their own due diligence before making investment decisions.

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