AITX Reports Revenue Growth to $1.75 Million, Net Loss Improves in Latest Quarter

Artificial Intelligence Technology Solutions Inc. (AITX) reported significant financial developments in its latest 10-Q filing for the quarter ending November 30, 2024. The company generated revenues of $1.75 million for the three months ended November 30, 2024, a substantial increase from $597,000 in the same period last year. For the nine months ending November 30, 2024, total revenues reached $4.28 million, compared to $1.37 million for the same period in 2023. Despite this revenue growth, AITX reported a net loss of $3.70 million for the quarter, slightly improved from a loss of $3.97 million in the prior year. The nine-month net loss also decreased to $11.83 million from $13.28 million year-over-year.

The company’s balance sheet reflects a notable increase in total assets, which rose to $9.80 million as of November 30, 2024, compared to $7.60 million at the end of the previous fiscal period. This growth was primarily driven by an increase in accounts receivable and revenue-earning devices, which saw net values of $1.25 million and $4.35 million, respectively. However, total liabilities surged to $56.81 million, up from $47.80 million, largely due to an increase in accounts payable and accrued expenses, which rose to $2.50 million from $2.03 million.

Strategically, AITX has focused on expanding its product offerings and customer base. The company reported a significant increase in device rental activities, which accounted for $1.43 million in revenue for the quarter, compared to $416,000 in the same period last year. This shift indicates a growing adoption of AITX's robotic solutions in operational and security applications. The company also noted that one customer represented 61% of total accounts receivable, highlighting a concentration risk in its customer base.

Operationally, AITX has made strides in its workforce, with an employee headcount that has increased to support its expanding operations. The company is actively pursuing additional funding avenues, including an equity financing agreement that could raise up to $30 million over two years. Management expressed confidence in its ability to navigate financial challenges, citing ongoing discussions with primary debt holders regarding the extension of non-convertible debt.

Looking ahead, AITX's management remains cautious but optimistic about future growth. The company anticipates continued revenue growth driven by increased product adoption and geographic expansion. However, it also acknowledges the challenges posed by its accumulated deficit of $149.39 million and negative cash flow from operations. The management's strategy includes raising additional capital and extending existing debt arrangements to ensure operational continuity and support future growth initiatives.