KIDZ AI Secures New Financing to Advance KIDZBot Physical AI Robotics Ecosystem

KIDZ AI raises new capital from its note facility and launches a hardware-focused subsidiary to accelerate the KIDZBot robotics ecosystem.

Rhea-AI Summary

KIDZ AI (KIDZ) secured $1.9 million in funding under its previously announced $500 million Senior Secured Convertible Note facility.

Net proceeds are expected to expand manufacturing capacity and commercial deployment of KIDZBot, the company’s Physical AI educational robotics platform, and to support its broader ecosystem. KIDZ AI also formed Classover Robix, a subsidiary focused on embodied AI hardware development, OEM partnerships, and institutional campus distribution.

Android versions of its Kidzqbot and Kidzbricks apps are operational, iOS versions are in development, and KIDZ AI will present at the 2026 AI in Education Conference.

Positive

• $1.9 million drawn from previously announced $500 million Senior Secured Convertible Note facility
• Financing proceeds expected to fund KIDZBot manufacturing scale-up and commercial deployment
• Formation of Classover Robix subsidiary to drive embodied AI hardware and OEM partnerships
• Android Kidzqbot and Kidzbricks apps operational; iOS versions currently in development
• KIDZBot positioned for classroom and institutional use as schools expand STEM and AI education
• Accepted to present Physical AI work at the 2026 AI in Education Conference

Negative

• None.

News Explained

KIDZ AI has secured $1.9 million through its convertible-note facility, before fees and expenses; at the last reported quarterly operating-cash-use rate, that financing equals 629.9 days of operating cash use.

Sources and calculations

• KIDZ AI financing announcement (2026-09-18)
• KIDZ AI second-quarter 2026 fundamentals (2026Q2)

• Available liquidity against the last reported quarterly operating outflow, in days at that rate $5,878,823 / ($849,268 / 91) = 629.9 days

Argus 15 min delay

-4.19% vs previous close $2.97 last price 285.7x rel. volume Open Argus

Details

Market reaction after Convertible note financing: KIDZ -4.19%

+12.7% Peak in 0 min

$2.83 $3.89 Day Range

$2.56M Market Cap

Following this news, KIDZ has declined 4.19%, reflecting a moderate negative market reaction. Argus tracked a peak move of +12.7% during the session. Our momentum scanner has triggered 15 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $2.97. Trading volume is exceptionally heavy at 285.7x the average, suggesting significant selling pressure.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

KIDZBot's July 6 unveiling was followed by a 54.43% 24-hour gain, a directly related prior reaction ...

Analysis

KIDZBot's July 6 unveiling was followed by a 54.43% 24-hour gain, a directly related prior reaction to the platform now receiving $1.9 million for capacity and deployment. Current risk data showed elevated short positioning.

Key Figures

New financing: $1.9 million Convertible note facility: $500 million

New financing

$1.9 million

Secured through the previously announced financing facility, before fees and offering expenses

Convertible note facility

$500 million

Previously announced Senior Secured Convertible Note financing facility

Previous AI Reports

2 past events · Latest: Jul 06

Same Type 2 events

1. Jul 06

   Robotics platform launch

   24h Move

   +54.4%

   KIDZ AI won 2026 EdTechX Award and unveiled KIDZBot robotics learning platform

2. Jun 10

   EdTechX finalist announcement

   24h Move

   -25.8%

   KIDZ AI named EdTechX finalist while advancing robotics learning platform

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior secured convertible note, oem/odm

2 terms

senior secured convertible note financial

"through its previously announced $500 million Senior Secured Convertible Note financing facility"

A senior secured convertible note is a loan a company takes that is backed by specific assets and has first claim on repayment ahead of other creditors, but can also be exchanged for company shares under agreed conditions. For investors it signals higher priority if the company struggles (like a mortgage holder vs a general creditor) while also creating potential stock dilution if the loan is converted into equity, affecting value and recovery prospects.

oem/odm technical

"explore OEM/ODM partnerships with robotics hardware manufacturers"

OEM (Original Equipment Manufacturer) is a company that builds products or components that other firms sell under their own brand, while ODM (Original Design Manufacturer) both designs and makes products that clients can rebrand and sell. Think of an OEM as a custom baker following someone else’s recipe and an ODM as a baker who creates the recipe and bakes it for others. Investors watch OEM/ODM relationships because they influence profit margins, control over product design and branding, and exposure to supply‑chain and intellectual property risks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK CITY, NY / ACCESS Newswire / September 18, 2026 / KIDZ AI Inc. (NASDAQ:KIDZ)(NASDAQ:KIDZW) ("KIDZ AI" or the "Company"), a leading provider of live online learning and AI-powered education solutions, today announced that it has secured $1.9 million in funding through its previously announced $500 million Senior Secured Convertible Note financing facility, before deducting placement agent fees and other offering expenses (the "Financing").

The net proceeds are expected to support the expansion of manufacturing capacity and commercial deployment of KIDZBot, the Company's proprietary Physical AI educational robotics platform, as well as the continued expansion of its broader ecosystem, following its unveiling and recognition as a finalist at the 2026 EdTechX Awards.

Alongside the Financing, KIDZ AI announced the formation of Classover Robix Inc., a dedicated operating subsidiary focused on embodied AI hardware development, OEM partnerships, and institutional campus distribution.

Building the KIDZBot Education Ecosystem:

• KIDZBot Application (Android Completed, iOS in Development): The Company has developed two dedicated applications, Kidzqbot and Kidzbricks, supporting its robotics and Physical AI education initiatives. The Android versions of both applications are currently operational, while the iOS versions are under development. Both applications provide visual block coding, ROS interfaces, and AI-powered learning and experimentation.
• Proprietary Curriculum: The Company is developing a KIDZBot curriculum focused on robotics, coding, hands-on learning, and practical applications of Physical AI.
• Educator Training: The Company is also developing training and onboarding materials to help educators introduce KIDZBot and robotics-based learning in classroom settings.

Exploring Broader Hardware Partnerships:

• Through Classover Robix Inc., the Company intends to explore OEM/ODM partnerships with robotics hardware manufacturers and technology developers to expand its robotics portfolio.
• Potential areas include humanoid robots, robotic arms, quadruped robots, and wheeled autonomous platforms that could complement the Company's software and educational programs.

Engaging Existing Users and Educational Networks:

• The Company has begun introducing KIDZBot to its registered users, providing an initial channel to engage students and families interested in robotics and Physical AI education.
• The Company has also begun engaging with educational partners and multi-state high school networks to explore potential opportunities for classroom and institutional deployment of KIDZBot.

According to official data from the National Center for Education Statistics (NCES), the United States has more than 27,000 public and private secondary schools, serving more than 16 million high school students. As schools continue to expand hands-on STEM and AI education, there is growing interest in accessible robotics platforms that can be used in classroom settings. KIDZBot is being developed as a hardware and software platform designed to support robotics, coding, and hands-on Physical AI learning for secondary students.

Academic Recognition & Conference Presentation

The Company also announced that its presentation proposal, titled "From AI Tools to Outcome-Driven Learning Systems," has been accepted for presentation at the 2026 AI in Education Conference, scheduled to take place in December 2026. Selected for the conference's Poster Session, KIDZ AI will present its work on integrating Physical AI and outcome-driven learning approaches into hands-on educational experiences.

"Securing this $1.9 million of additional financing and establishing Classover Robix Inc. represents an important step in the Company's continued development," said Stephanie Luo, CEO of KIDZ AI. "We are focused on building a practical robotics education ecosystem around KIDZBot, combining hardware, software, curriculum, and educator support. With our Android application fully operational and the iOS version currently in development, we are continuing to expand the KIDZBot platform. Together with our registered user base, ongoing discussions with educational networks, and broader robotics development efforts, we see opportunities to bring hands-on Physical AI learning to more students and schools."

Additional details regarding the terms of the Senior Secured Convertible Note was provided in the Company's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) on September 17, 2026.

About KIDZ AI Inc.

KIDZ AI Inc. (NASDAQ:KIDZ)(NASDAQ:KIDZW) is an AI-driven education technology company developing proprietary learning systems that combine artificial intelligence, AI agents and robotics. The Company is also pursuing opportunities in AI compute infrastructure, GPU cloud platforms and related data-center ecosystems.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on KIDZ AI's current beliefs, expectations and assumptions regarding the future of KIDZ AI's business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of KIDZ AI's control including, but not limited to: KIDZ AI's ability to execute its business model, including obtaining market acceptance of its products and services; KIDZ AI's financial and business performance, including financial projections and business metrics and any underlying assumptions thereunder; KIDZ AI's ability to obtain and deploy the GPUs and related equipment necessary to perform its obligations under existing agreements and achieve its goals and expected results; KIDZ AI's ability to maintain the listing of its securities on Nasdaq; changes in KIDZ AI's strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects and plans; KIDZ AI's ability to attract and retain a large number of customers; KIDZ AI's future capital requirements and sources and uses of cash; KIDZ AI's ability to attract and retain key personnel; KIDZ AI's expectations regarding its ability to obtain and maintain intellectual property protection and not infringe on the rights of others; changes in applicable laws or regulations; risks associated with international operations, including political, regulatory, currency and enforcement risks; and the possibility that KIDZ AI may be adversely affected by other economic, business, and/or competitive factors. These risks and uncertainties also include those risks and uncertainties indicated in KIDZ AI's filings with the SEC. KIDZ AI's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

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 the 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, except as required by law.

Contacts
KIDZ AI Inc.
ir@kidzai.com
800-345-9588

SOURCE: KIDZ AI Inc.

View the original press release on ACCESS Newswire

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How does KIDZ AI plan to use the new $1.9 million in financing?

The net proceeds are expected to support expansion of KIDZBot manufacturing capacity, commercial deployment of the Physical AI robotics platform, and continued development of the broader KIDZBot ecosystem.

What is the role of the new subsidiary Classover Robix?

Classover Robix is a dedicated operating subsidiary focused on embodied AI hardware development, OEM/ODM partnerships with robotics manufacturers and technology developers, and institutional campus distribution of robotics solutions.

What is included in the KIDZBot education ecosystem beyond the robot itself?

The ecosystem includes Android and in-development iOS apps (Kidzqbot and Kidzbricks) with visual block coding, ROS interfaces and AI-powered learning, a proprietary curriculum on robotics and coding, and educator training and onboarding materials for classroom use.

What types of hardware partnerships is KIDZ AI exploring through Classover Robix?

The company intends to explore OEM/ODM partnerships covering humanoid robots, robotic arms, quadruped robots, and wheeled autonomous platforms that can complement its software and educational programs.

How is KIDZBot being introduced to users and educational institutions?

KIDZ AI has begun introducing KIDZBot to its registered users, creating an initial channel to engage students and families, and is engaging educational partners and multi-state high school networks to explore classroom and institutional deployment opportunities.

What recognition and conferences are associated with KIDZBot and KIDZ AI?

KIDZBot was unveiled and recognized as a finalist at the 2026 EdTechX Awards, and KIDZ AI’s proposal “From AI Tools to Outcome-Driven Learning Systems” was accepted for a poster session at the 2026 AI in Education Conference in December 2026.

Where can investors find more details on the Senior Secured Convertible Note terms?

Additional details regarding the terms of the Senior Secured Convertible Note are provided in the company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on September 17, 2026.