AITX Reports Revenue Growth, Continued Losses in Latest 10-Q Filing

Artificial Intelligence Technology Solutions Inc. (AITX) reported significant financial developments in its latest 10-Q filing for the period ending August 31, 2024. The company experienced a substantial increase in revenue, with total revenues for the three months reaching $1.34 million, up from $386,363 in the same period last year. For the six months, revenues totaled $2.53 million, compared to $771,571 in the prior year. This growth was primarily driven by a notable rise in revenue from device rental activities, which increased to $1.07 million for the three months and $2.05 million for the six months, compared to $343,543 and $581,692, respectively, in the previous year.

Despite the revenue growth, AITX reported continued operational losses. The loss from operations for the three months ended August 31, 2024, was $(2.61) million, an improvement from $(3.05) million in the same quarter of 2023. The net loss for the three months was $(3.93) million, down from $(4.76) million year-over-year. For the six-month period, the net loss was $(8.12) million, compared to $(9.31) million in the prior year.

The company’s total assets increased to $9.22 million as of August 31, 2024, up from $7.60 million at the end of February 2024. Current assets also rose to $4.09 million from $3.62 million. However, total liabilities increased significantly to $54.69 million from $47.80 million, contributing to an accumulated deficit of $(145.69) million, up from $(132.96) million.

In terms of strategic developments, AITX entered into an equity financing agreement in July 2024 to raise up to $30 million over two years, with approximately $29 million remaining to be issued. The company is focusing on addressing its financial challenges through revenue growth, equity proceeds, and issuing non-convertible debt. Additionally, AITX has expressed substantial doubt about its ability to continue as a going concern over the next twelve months due to ongoing financial difficulties.

The company’s cash position improved significantly, with cash at the end of the period reported at $543,133, compared to $105,926 at the end of February 2024. However, cash used in operating activities for the six months was $(6.43) million, slightly higher than $(6.34) million in the same period last year.

Overall, AITX's financial performance reflects a mix of revenue growth and persistent losses, alongside strategic efforts to stabilize its financial situation.