KIDZ

KIDZ is a $799K nano-cap online kids' tutoring platform whose fundamentals are deteriorating on every axis that matters. Revenue fell 8% to $3.37M in FY2025 (from $3.68M), so this is a shrinking, not scaling, business — despite management touting registered users rising to 72,850 and educator partners to 1,200, that engagement is not converting into revenue growth. The MD&A frames the model as dependent on attracting and retaining paying subscribers, yet paid conversion is clearly failing to offset churn. Gross margin is decent at 57% (up from 56% via cost cuts), but everything below the gross line is broken: operating income swung to -$3.59M and net income collapsed to -$7.04M (down 736% YoY), for a net margin of -209% and ROE of -186.5%.

The balance sheet is the disqualifier. Operating cash flow was -$3.83M against just $2.75M of cash — the company is burning more in a year than it has in the bank, implying less than a full year of runway absent new financing. Total assets ballooned 742% to $15.5M while equity sits at only $3.78M against $11.8M of liabilities (3.12x leverage), and accumulated deficit deepened to -$11.6M. The 82% collapse in share count points to a reverse split, a classic move to defend a sub-dollar listing — the stock trades at $0.68, near penny-stock territory, and fell 5.3% today. Near-inevitable dilution or a going-concern outcome is the base case.