$AITX

Artificial Intelligence Technology Solutions Inc.

CIK:0001498148|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	May 31, 2026	May 31, 2025
Revenues	$ 1,831,202	$ 1,854,837
Total Cost of Goods Sold	647,378	621,336
Gross Profit	1,183,824	1,233,501
Operating expenses:
Research and development (see Note 10)	885,593	1,087,619
General and administrative	2,907,577	3,232,211
Depreciation and amortization	32,646	34,121
Operating lease cost and rent	67,372	58,219
Total operating expenses	3,893,188	4,412,170
Loss from operations	(2,709,364)	(3,178,669)
Other expense, net:
Interest expense	(2,298,874)	(1,415,349)
Loss on settlement of debt	(707,600)
Total other expense, net	(3,006,474)	(1,415,349)
Net loss	$ (5,715,838)	$ (4,594,018)
Net loss per share - basic	$ (0.02)	$ (0.03)
Net loss per share - diluted	$ (0.02)	$ (0.03)
Weighted average common share outstanding - basic	325,956,059	155,176,712
Weighted average common share outstanding - diluted	325,956,059	155,176,712
Cost Of Goods Sold [Member]
Total Cost of Goods Sold	$ 134,183	$ 173,381
Depreciation And Amortization [Member]
Total Cost of Goods Sold	$ 513,195	$ 447,955

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		12 Months Ended
	May 31, 2026	May 31, 2025	Feb. 28, 2026
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,715,838)	$ (4,594,018)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	545,841	482,076
Bad debts expense	70,000	48,982
Inventory provision
Reduction of right of use asset	38,013	33,865
Accretion of lease liability	23,281	27,428
Stock based compensation	60,508	80,355
Amortization of debt discounts	385,493	47,089
Loss on settlement of debt	707,600
Increase (decrease) in related party accrued payroll and interest	(129,687)	5,700
Changes in operating assets and liabilities:
Accounts receivable	(40,696)	424,655
Prepaid expenses and deposits on inventory	(51,841)	104,498
Deposit on right of use asset		(13,187)
Device parts inventory	(336,925)	(480,951)
Accounts payable and accrued expenses	(332,150)	524,109
Customer deposits	(19,806)	(487)
Operating lease liability payments	(60,449)	(58,962)
Deferred compensation for CFO	178,895	(1,246,687)
Current portion of deferred variable payment obligations for payments	298,112	301,287
Accrued interest payable	1,620,342	993,063
Net cash used in operating activities	(2,759,307)	(3,321,185)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets	(15,600)	(8,422)
Acquisition of trademarks	(838)	(1,298)
Net cash (used in) investing activities	(16,438)	(9,720)
CASH FLOWS FROM FINANCING ACTIVITIES:
Share proceeds net of issuance costs	823,480	2,839,777
Proceeds on issuance of Series C shares	200,000
Proceeds from loans payable	2,714,028
Repayment of loans payable	(976,163)	(50,000)
Net cash provided by financing activities	2,761,345	2,789,777
Net change in cash	(14,400)	(541,128)
Cash, beginning of period	109,043	865,975	$ 865,975
Cash, end of period	94,643	324,847	$ 109,043
Supplemental disclosure of cash and non-cash transactions:
Cash paid for interest	19,257	8,910
Cash paid for income taxes
Noncash investing and financing activities:
Transfer from device parts inventory to fixed assets and revenue earning devices	276,717	917,294
Exchange of notes payable and accrued interest for common shares	745,900	1,250,500
Discount applied to face value of loan	419,167
Conversion of Series C shares to common shares	391,572
Series C preferred shares issued as dividend	17,388	12,073
Commitment fee shares as debt discount	202,050
Right of use asset for lease liability		$ 53,739