AITX Reports $5.7 Million Net Loss and Decline in Revenue for Quarter Ending May 31, 2026

Artificial Intelligence Technology Solutions Inc. (AITX) reported a net loss of $5.7 million for the three months ending May 31, 2026, compared to a net loss of $4.6 million for the same period in 2025, marking a 24% increase in losses. Total revenues for the quarter were $1.83 million, a slight decline of 1% from $1.85 million year-over-year. The decrease in revenue was attributed primarily to a significant reduction in sales from a major customer, which previously accounted for 48% of the company's revenue in the prior year but dropped to 21% in the latest quarter. Despite this, AITX managed to diversify its customer base, with two customers now representing 36% of total revenue.

The company's gross profit also decreased to $1.18 million, down from $1.23 million, reflecting a gross profit margin of 65%, compared to 67% in the previous year. Operating expenses were reduced by 12% to $3.89 million, down from $4.41 million, primarily due to lower general and administrative costs and a decrease in research and development expenses. The company reported a loss from operations of $2.71 million, an improvement from the $3.18 million loss recorded in the same quarter last year.

In terms of financial position, AITX's total current assets increased to $3.01 million as of May 31, 2026, from $2.94 million at the end of February 2026. However, current liabilities surged to $44.89 million, up from $19.95 million, resulting in a working capital deficit of $41.89 million. The company’s cash balance at the end of the quarter was $94,643, down from $109,043 at the end of February 2026. AITX's management has expressed concerns regarding its ability to continue as a going concern, given the significant accumulated deficit of $176.93 million and the negative cash flow from operations.

Operationally, AITX has been focusing on expanding its product offerings, particularly in mobile products and software, which are expected to roll out gradually throughout the fiscal year. The company has also entered into an equity financing agreement to raise up to $10 million over three years, which it hopes will support its operations and growth initiatives. Additionally, AITX has been actively managing its debt, with plans to extend existing loans and explore new financing options to improve liquidity.

Looking ahead, AITX anticipates that the introduction of new products will drive revenue growth, although it acknowledges the challenges posed by its current financial situation. The company is committed to reducing operating expenses and enhancing its revenue-generating capabilities to achieve a more sustainable financial footing.