KIDOZ INC. Annual Report: A Plain-English Guide

I’ve put together this guide to help you understand how KIDOZ INC. performed this year. My goal is to break down their financial filings into simple terms so you can decide if this company fits your investment strategy.

1. What does this company do?

KIDOZ acts as a safe bridge between brands and younger audiences. Their platform lets advertisers reach kids and families without tracking personal data, keeping them compliant with strict privacy laws like COPPA and GDPR-K.

They have two main business lines:

• KIDOZ: Their core "walled garden" for kid-safe advertising. This platform connects brands with app developers and content creators who serve children under 13.
• Prado: A division that reaches the broader, all-ages digital market. It uses the same privacy-first technology developed for the KIDOZ ecosystem to serve brands in safe, non-kid environments.

2. Financial Performance: The Growth Story

KIDOZ is growing its revenue and staying profitable.

• Revenue: They brought in $18.4 million in 2025, a 32% jump from $14.0 million in 2024. Demand for privacy-compliant ads is rising as traditional tracking methods face new regulations.
• Profitability: They earned a profit of $456,817 in 2025, up from $353,140 in 2024. They are scaling the business while keeping costs low by using their existing technology to support the Prado division.
• Cash Flow: They generated $1.7 million from daily operations in 2025, up from $1.3 million in 2024. This shows the business is self-sustaining and does not need to borrow money to function.

3. Leadership and Ownership

KIDOZ is a remote-first company with 58 staff members across 14 countries. Their leadership team has deep experience from major firms like Electronic Arts, giving them a strong edge in gaming and digital media.

Investors should note these structural factors:

• Concentrated Control: Directors and executives own about 21.7% of the company. Large institutional investors, like Pendinas Limited (21.3%), also hold significant stakes. This means a small group of shareholders can effectively control voting outcomes.
• Key Person Risk: The company relies heavily on CEO J. M. Williams, Chairman T. M. Williams, and President Eldad Ben Tora. The company notes that losing any of them would impact the business, and they do not currently carry "key person" insurance. As a family-run operation, governance and succession planning are managed internally by this core group.

4. Major Risks

Keep these "real-world" risks in mind:

• Platform Dependency: They rely on tech giants like Apple and Google. If these companies change their privacy policies, it could disrupt KIDOZ’s ability to serve ads.
• No Long-Term Contracts: Customers work on a campaign-by-campaign basis. KIDOZ must constantly prove its value to keep clients, as there are no guaranteed recurring revenue contracts.
• Market Volatility: As a smaller tech company, the stock price can be sensitive to shifts in the digital advertising market and changes in global privacy regulations.

5. The Bottom Line

KIDOZ has reached a phase of consistent profit. By focusing on privacy-compliant ads, they have built a niche that brands trust. They have a solid cash position and no debt. They do not plan to pay dividends, choosing instead to reinvest all earnings into growth.

Investment Takeaway: This is a company that has successfully moved into profitability by solving a specific problem for advertisers. When deciding if this is right for your portfolio, weigh their strong growth and debt-free balance sheet against the risks of relying on big tech platforms and the influence of their concentrated leadership team.