KIDZ AI Inc. (NASDAQ: KIDZ) plans 1-for-15 reverse stock split for Nasdaq compliance
Rhea-AI Filing Summary
KIDZ AI Inc. is implementing a 1-for-15 reverse stock split of its outstanding Class A and Class B common stock. The action becomes effective at 12:01 a.m. Eastern Time on August 13, 2026, after which the Class B common stock will begin trading on a split-adjusted basis on the Nasdaq Capital Market under the symbol KIDZ. The split is intended to increase the per-share trading price and support compliance with Nasdaq’s minimum bid price and other continued listing requirements, though the company states there is no assurance it will achieve any particular trading price or listing outcome. Authorized share counts and par value of $0.0001 per share remain unchanged, and proportional adjustments will be made to warrants, convertible securities and equity incentive plans. Fractional shares will not be issued; any fractional positions will be rounded up to the nearest whole share.
Positive
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Negative
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Filing Explained
The 1-for-15 action changes the share count and per-share price proportionally; under the supplied definition, the split itself leaves company value unchanged.
Key Figures
Reverse split ratio: 1-for-15
Effective time: 12:01 a.m. Eastern Time on August 13, 2026
Authorized share par value: $0.0001 per share
+2 more
5 metrics
Reverse split ratio
1-for-15
Each 15 shares of Class A and Class B common stock combined into one share
Effective time
12:01 a.m. Eastern Time on August 13, 2026
Time at which the reverse stock split becomes effective
Authorized share par value
$0.0001 per share
Par value of Class A and Class B common stock remains unchanged after split
Stockholder-approved ratio range
1-for-2 to 1-for-50
Reverse split range approved by stockholders on June 10, 2026
New CUSIP
182744409
New CUSIP number for Class B common stock following the reverse split
Key Terms
Reverse Stock Split, Nasdaq Capital Market, minimum bid price requirement, Depository Trust Company, +1 more
5 terms
Reverse Stock Split financial
"announced that it will conduct a 1-for-15 reverse stock split"
A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.
Nasdaq Capital Market financial
"Class B common stock will continue to trade on the Nasdaq Capital Market"
The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.
minimum bid price requirement financial
"support the Company’s efforts to comply with Nasdaq’s continued listing requirements, including Nasdaq’s minimum bid price requirement"
A minimum bid price requirement is a rule that a stock must trade above a set price for a specified period to stay listed on an exchange. It matters to investors because falling below that threshold can trigger warnings or removal from the exchange, which can cut liquidity, reduce visibility, and often lead to sharper declines in share value—think of it like a venue’s minimum dress code that, if not met, can bar a performer from the stage.
Depository Trust Company financial
"rounding for beneficial holders at The Depository Trust Company applied at the DTC participant level"
A central securities depository that holds stocks, bonds and other securities in electronic form and handles the transfer and finalizing of trades between brokerages. For investors it acts like a secure electronic vault and central bookkeeping hub that speeds transactions, reduces the chance of lost or duplicated certificates, and determines whether holdings are eligible for trading, dividends and other corporate actions through your broker.
equity incentive plans financial
"exercise or conversion prices under the Company’s outstanding warrants, convertible securities and equity incentive plans"
Equity incentive plans are company programs that pay employees, executives, or directors with company stock, stock options, or share units instead of or in addition to cash, aiming to align their interests with shareholders—like giving team members a stake in the house they help build. For investors this matters because such plans can motivate better company performance but also dilute existing ownership and increase reported compensation costs, so they affect future earnings, voting power, and share value.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What reverse stock split did KIDZ AI (KIDZ) announce?
KIDZ AI approved a 1-for-15 reverse stock split of its Class A and Class B common stock. Every 15 shares will be combined into one share of the same class at the effective time, with no fractional shares issued.
When will the KIDZ AI (KIDZ) reverse stock split take effect?
The reverse stock split becomes effective at 12:01 a.m. Eastern Time on August 13, 2026. KIDZ AI’s Class B common stock is expected to begin trading on a split-adjusted basis at the market open that same day.
Why is KIDZ AI (KIDZ) doing a reverse stock split?
KIDZ AI states the reverse split is intended to increase the per-share trading price of its Class B common stock and support efforts to comply with Nasdaq’s continued listing requirements, including the minimum bid price rule.
How will KIDZ AI (KIDZ) handle options, warrants and convertible securities after the split?
KIDZ AI will make proportional adjustments to the number of shares issuable and the exercise or conversion prices under its outstanding warrants, convertible securities and equity incentive plans to reflect the 1-for-15 reverse stock split.