KIDZ AI Secures $1.9 Million to Bring Artificial Intelligence Robotics to American Classrooms

2026-09-18 companies

New York, Friday, 18 September 2026.
On September 17, 2026, KIDZ AI raised $1.9 million to launch educational robotics across U.S. high schools, targeting a nationwide market of over 16 million students.

Financing Announcement and Strategic Expansion

On September 17, 2026, KIDZ AI Inc. (NASDAQ:KIDZ) announced it secured $1.9 million in funding via a Senior Secured Convertible Note [1][2]. The capital is designated to advance the KIDZBot Physical AI robotics ecosystem and support manufacturing deployment [1]. To facilitate this growth, the company established a dedicated subsidiary, Classover Robix Inc., to manage embodied AI hardware development and institutional distribution [1][3]. This expansion targets a U.S. market of over 16 million high school students according to NCES data [1]. The company plans to present its outcome-driven learning systems at the 2026 AI in Education Conference in December 2026 [1].

Convertible Note Terms and Structure

The financing instrument carries a 7% annual interest rate and is set to mature on September 17, 2028 [2][4]. Interest payments are scheduled quarterly, with the first date set for October 1, 2026, and may be paid in cash, added to principal, or issued in stock [4]. The annual interest obligation amounts to 133000 based on the principal balance [4]. The note is convertible into Class B common stock at an initial price of $3.672 per share [2][3]. This conversion could yield approximately 517429.194 shares if fully converted at the initial price [2][4].

Market Context and Investor Risks

Investors should note potential dilution risks as the conversion price is subject to adjustment based on market capitalization and collateral value [4]. The company operates under restrictive covenants, including an available cash test requiring at least $3,000,000 in liquid assets per fiscal quarter [4]. Dealroom notes the company’s market capitalization stands at approximately $2.59 million, highlighting the significance of this financing relative to its size [6]. Historical data indicates significant volatility, with shares previously surging over 5900% in early 2026 [5]. Such movements underscore the high-risk nature of the investment landscape for this issuer [5][6].

Operational Status and Future Outlook

As of September 18, 2026, KIDZ AI has operational Android versions of its Kidzqbot and Kidzbricks applications [1]. iOS versions remain in development as the company scales its software ecosystem [1]. The financing agreement was originally dated May 30, 2025, allowing for additional closings under the Securities Purchase Agreement [2][3]. CEO Stephanie Luo stated the financing represents an important step in developing a practical robotics education ecosystem [1]. The company assumes no obligation to update forward-looking statements beyond the date of the press release [1].

Sources

Physical AI EdTech Robotics