KIDZ AI Inc. (KIDZ (KIDZ)) is having a moment. The stock extended its rally in Tuesday's premarket session, rising 10.78% after surging 42.95% in the previous trading session. The gains came after the company outlined plans to expand its share repurchase program and said its current market capitalization remains well below its estimated net cash position, underscoring what it views as a significant disconnect between its market value and underlying cash holdings.

Here's the math that's got investors excited: KIDZ AI estimated a net cash position of roughly $13.7 million as of July 24. That includes about $11.3 million in cash and $3.0 million in USDC stablecoins, totaling around $14.3 million before deducting $600,000 in notes payable. With 10.99 million shares outstanding, net cash equaled about $1.25 per share. Meanwhile, KIDZ closed July 24 at 41.91 cents, representing a market capitalization of approximately $4.6 million. So its estimated net cash was nearly three times that value. The figures are unaudited management estimates and may differ from amounts reported in future regulatory filings.

The company has already begun repurchasing shares under its existing $2 million authorization. CEO Stephanie Luo plans to seek board approval to increase the program by 50% to $3 million and accelerate repurchases if the stock continues trading at what management considers a substantial discount. Repurchases remain subject to market conditions, trading volume, liquidity needs, applicable laws and board discretion.

Beyond the balance sheet, KIDZ AI has a big catalyst on the horizon: GPU compute revenue is expected to begin in the fourth quarter of 2026. Its 60-month agreement with Canopy Wave provides for approximately $44.6 million in aggregate contracted service fees, about 9.7 times the company's market capitalization. That figure represents gross contracted revenue before costs and remains subject to both parties meeting their obligations. KIDZ AI is also pursuing infrastructure and data center relationships, partnerships, joint ventures and strategic transactions to expand its compute capacity.

“We do not believe today's market price reflects the assets we hold or the opportunity in front of us,” Luo said. “Our response will not be words alone — it will be disciplined capital allocation and execution against the milestones we have laid out.”

The company operates an education technology business while expanding into AI infrastructure and GPU compute services. As of premarket Tuesday, KIDZ shares were up 10.78% at $0.6669.