Mr. Jason Williams reports

KIDOZ WELCOMES CLOUDX INNOVATION DRIVING FAIRER MOBILE ADVERTISING AUCTIONS

Kidoz Inc. has commented on recent industry developments related to artificial-intelligence-driven advertising infrastructure and its potential implications for the mobile advertising ecosystem.

Recent announcements around early-stage AI-native platforms focusing on improving fairness and automation in mobile ad auctions, such as CloudX, have renewed attention on price discovery and operational efficiency. While these initiatives remain at an early stage, they reflect a constructive direction for the market as brands seek greater confidence that in-app inventory is priced transparently and without distortion. Over time, improved auction processes have the potential to encourage increased brand investment in mobile gaming advertising, supporting brand-focused platforms such as Kidoz.

Market reaction to CloudX has been most visible among large, vertically integrated advertising platforms that combine mediation layers with proprietary demand engines like market leader Applovin. In these models, the same provider can influence auction mechanics while also competing within them, benefiting from ownership of the price-setting infrastructure. Since CloudX announced general availability, several vertically integrated platform businesses have experienced selling pressure and share price declines, reflecting investor concern around longer-term transparency, incentives and potential structural change. While these platforms benefit from significant scale and data advantages and are unlikely to face near-term disruption, initiatives that promote more open and verifiable auctions are increasingly viewed as a potential long-term evolution of the ecosystem.

Kidoz believes it is well positioned within this changing landscape. The company operates with diversified exposure across the mediation and demand environment, rather than reliance on a single ad stack or auction mechanism. Pricing optimization already occurs across multiple partners, and Kidoz's business model does not depend on opaque or closed systems to drive performance. As a result, fairer auctions tend to favour platforms focused on compliant inventory, trusted brand relationships and sustainable monetization.

"Kidoz was built to operate in environments where trust, compliance and transparency matter most," said Jason Williams, chief executive officer of Kidoz. "While it is still early days for AI in advertising, innovation that improves price discovery and operational efficiency is welcome. We believe our kids-safe, privacy-first foundation and diversified approach to helping brands position us well as the industry continues to evolve."

The application of AI and agentic workflows to automate optimization and operational processes across digital advertising is consistent with Kidoz's own current services, including its AI-driven Kite IQ contextual targeting, as well as future strategic initiatives. The company views responsible innovation, fair price discovery and increased automation as complementary forces that can strengthen the mobile advertising ecosystem and support sustainable growth for developers, advertisers and platforms alike.

For full details of the company's operations and financial results, please refer to the Securities and Exchange Commission website, the Kidoz investor website or SEDAR+ website.

About Kidoz Inc.

Kidoz is a global adtech platform delivering safe mobile gamer engagement at scale.

Originally built to protect kids, the platform also enables advertisers to reach audiences of all ages across the entire mobile gaming ecosystem, using privacy-first contextual targeting, including the growing segment of users who opt out of personal data tracking.

Its technology stack combines proprietary SDK integrations, the Kidoz Privacy Shield and the Kite IQ contextual AI engine to deliver compliant, high-impact campaigns aligned with COPPA, GDPR-K, Apple ATT and global standards. Google certified and Apple approved, Kidoz reaches more than a billion users worldwide.

Trusted by leading brands, Kidoz enables advertisers to reach high-value gaming audiences through a unified suite of managed, programmatic, SSP, DSP and ad exchange solutions.

We seek Safe Harbor.