AITX Reports 57% Revenue Growth to $1.85 Million Despite Increased Net Loss

Artificial Intelligence Technology Solutions Inc. (AITX) reported its financial results for the three months ending May 31, 2025, revealing a total revenue of $1.85 million, a 57% increase from $1.18 million in the same period last year. The growth was primarily driven by a 66% rise in device rental activities, which generated $1.63 million, while direct sales of goods and services increased by 13% to $227,551. The gross profit for the quarter was $1.23 million, reflecting an 80% increase compared to $685,334 in the prior year, resulting in a gross profit margin of 67%, up from 58% in the previous year.

Despite the revenue growth, AITX reported a net loss of $4.59 million for the quarter, compared to a loss of $4.19 million in the same period last year. The increase in net loss was attributed to higher operating expenses, which rose by 25% to $4.41 million, driven by increased research and development costs and general administrative expenses. Research and development expenses alone increased by 34% to $1.09 million, while general and administrative expenses rose by 27% to $3.23 million.

The company’s balance sheet as of May 31, 2025, showed total current assets of $3.32 million, a significant decrease from $5.03 million at the end of February 2025. Current liabilities also decreased to $7.08 million from $7.58 million, resulting in a working capital deficit of $3.75 million. AITX's cash position declined to $324,847 from $865,975, raising concerns about liquidity as the company continues to incur losses and relies on external financing to sustain operations.

In terms of strategic developments, AITX has been actively pursuing equity financing to bolster its capital resources. In June 2025, the company entered into an equity financing agreement that allows for the issuance of up to $30 million in common stock over a two-year period. This follows a trend of increasing share issuance, with AITX having issued 1.9 billion common shares during the quarter for gross proceeds of $2.81 million. The company also issued 685 million shares to settle $1.25 million in loans payable.

Looking ahead, AITX management acknowledges the challenges posed by its current financial situation, including the need for additional funding to continue operations. The company is focused on reducing operating expenses and driving revenue growth, but it remains uncertain whether it will achieve profitability in the near future. The ongoing reliance on external financing and the potential for further dilution of shares are critical factors that will influence AITX's operational strategy moving forward.