Classover (KIDZ) investor relations material

Executive summary

• Revenue for Q2 2026 was $481,831, down 34% year-over-year, with six-month revenue at $1,001,029, down 35% year-over-year.

• Net loss for Q2 2026 narrowed 35% year-over-year to $2,496,074, reflecting disciplined cost management and a strategic pivot toward AI infrastructure and compute services.

• Gross profit for Q2 2026 was $211,722 (44% margin), and for six months was $472,620 (47% margin), with margins unchanged year-over-year.

• Decline in revenue attributed to reduced customer traffic and lower engagement as focus shifted to compliance and AI initiatives.

• Corporate rebranding to KIDZ AI Inc. signals expansion into AI compute infrastructure, GPU cloud services, and robotics, including the launch of KIDZBot and winning the 2026 EdTechX Award.

Financial highlights

• Cost of revenues decreased 33% in Q2 2026 to $270,109, consistent with lower sales volume.

• Operating expenses for Q2 2026 were $1,360,028, down 33% year-over-year; six-month operating expenses were $2,515,741, down 8%.

• Cash and cash equivalents as of June 30, 2026, were $5,878,823; cash and restricted cash increased to $8,880,000, more than tripling from year-end 2025.

• Convertible notes payable reduced 92% since year-end, from $8,200,000 to $670,000, simplifying the capital structure.

• Total stockholders' equity rose 163% since year-end to $9,950,000, and total liabilities decreased 65.6% to $4,050,000.

Outlook and guidance

• Management believes current working capital, cash position, and financing options are sufficient for the next twelve months.

• Plans to advance AI infrastructure strategy through GPU cluster deployments and pursue additional GPU compute partnerships and data center relationships.

• Focus on commercial rollout of KIDZBot and integration of Physical AI concepts into curriculum offerings.

• Strategic focus on AI-driven transformation and long-term growth through technology investments.