Classover (KIDZ) investor relations material

Executive summary

• Revenue for 2025 was $3.37M, down 8% from 2024, mainly due to the absence of consulting revenue; gross profit margin improved to 57% from 56% as cost controls offset lower sales.

• Net loss increased sharply to $7.04M in 2025 from $843K in 2024, driven by higher operating expenses, impairment of intangible assets, and fair value losses on crypto assets and convertible debt.

• The company completed a reverse recapitalization with BFAC, became publicly listed, and raised capital through PIPE and convertible notes, with a significant portion allocated to Solana digital assets.

• As of year-end, cash and equivalents were $2.75M, with working capital of $495K and stockholders' equity of $3.78M; management believes current resources and available notes are sufficient for the next 12 months, but substantial doubt remains about going concern.

Financial highlights

• Service revenue was stable at $3.37M, but consulting revenue dropped from $300K to zero.

• Cost of revenue decreased 10% to $1.45M due to improved scheduling and class size optimization.

• Operating expenses rose 90% to $5.51M, mainly from higher G&A costs, professional fees, and stock compensation.

• Other expenses included a $1.57M loss on crypto assets, $1.46M impairment of intangible assets, and $808K loss on convertible debt.

• No income tax provision was recorded due to full valuation allowance on deferred tax assets.

Outlook and guidance

• Management expects to continue investing in growth, technology, and course offerings, but acknowledges the need for additional capital if business conditions change.

• The company plans to expand its student base, diversify courses, and further invest in AI and data capabilities.