2022 Q3 Form 10-Q Financial Statement

#000116169722000361 Filed on July 12, 2022

View on sec.gov

Income Statement

Concept 2022 Q3 2022 Q2 2022 Q1
Revenue $267.5K $385.2K $371.3K
YoY Change 88.94% -31.26% 271.31%
Cost Of Revenue $34.21K $293.7K $176.6K
YoY Change -18.44% 164.79% 488.73%
Gross Profit $233.3K $91.43K $194.7K
YoY Change 134.16% -79.65% 178.13%
Gross Profit Margin 87.21% 23.74% 52.43%
Selling, General & Admin $2.302M $2.470M $2.518M
YoY Change -13.65% 28.09% 162.34%
% of Gross Profit 986.89% 2701.83% 1293.59%
Research & Development $963.8K $1.024M $645.0K
YoY Change 37.82% 61.31% 279.42%
% of Gross Profit 413.16% 1119.66% 331.3%
Depreciation & Amortization $145.8K $94.00K $79.63K
YoY Change 205.71% 149.7% 165.43%
% of Gross Profit 62.5% 102.8% 40.9%
Operating Expenses $3.412M $3.588M $3.243M
YoY Change -0.04% 37.95% 179.58%
Operating Profit -$3.178M -$3.497M -$3.048M
YoY Change -4.08% 62.52% 179.67%
Interest Expense $1.002M $1.175M -$11.32M
YoY Change -161.83% 23.89% 1215.97%
% of Operating Profit
Other Income/Expense, Net -$994.4K -$1.175M
YoY Change -35.76% -96.52%
Pretax Income -$4.173M -$4.672M -$14.37M
YoY Change -13.65% -86.99% 535.65%
Income Tax
% Of Pretax Income
Net Earnings -$4.173M -$4.672M -$14.37M
YoY Change -13.65% -86.99% 535.65%
Net Earnings / Revenue -1560.04% -1212.93% -3868.94%
Basic Earnings Per Share $0.00 $0.00
Diluted Earnings Per Share $0.00 $0.00 -$3.956K
COMMON SHARES
Basic Shares Outstanding 4.946B shares 4.799B shares
Diluted Shares Outstanding

Balance Sheet

Concept 2022 Q3 2022 Q2 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $363.1K $921.6K $4.648M
YoY Change -84.84% -68.74% 346.94%
Cash & Equivalents $363.1K $921.6K $4.648M
Short-Term Investments
Other Short-Term Assets $568.8K $320.2K $442.2K
YoY Change 110.95%
Inventory $1.641M $1.609M $1.531M
Prepaid Expenses $568.8K $320.2K $442.2K
Receivables $442.7K $364.7K $429.5K
Other Receivables $281.2K $0.00 $0.00
Total Short-Term Assets $3.297M $3.216M $7.050M
YoY Change -8.89% -16.28% 484.11%
LONG-TERM ASSETS
Property, Plant & Equipment $319.4K $209.1K $138.0K
YoY Change -82.39% -87.4% 294.22%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $21.24K $21.24K $21.24K
YoY Change 7.6% 7.6%
Other Assets
YoY Change
Total Long-Term Assets $2.586M $2.368M $2.229M
YoY Change 41.01% 40.95% 518.5%
TOTAL ASSETS
Total Short-Term Assets $3.297M $3.216M $7.050M
Total Long-Term Assets $2.586M $2.368M $2.229M
Total Assets $5.882M $5.584M $9.279M
YoY Change 7.89% 1.13% 492.02%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.416M $1.070M $968.9K
YoY Change 68.32% -8.34% -29.28%
Accrued Expenses $289.7K $250.2K $1.514M
YoY Change -52.58% -26.5% 440.82%
Deferred Revenue $1.872K $10.00K
YoY Change -4.76%
Short-Term Debt $1.594K $1.594K $1.594K
YoY Change -54.46% -99.25% 0.0%
Long-Term Debt Due $393.5K $235.3K $1.237M
YoY Change -88.78% -97.3% -34.56%
Total Short-Term Liabilities $3.466M $2.598M $4.548M
YoY Change -44.54% -76.15% 3.11%
LONG-TERM LIABILITIES
Long-Term Debt $23.58M $20.07M $20.31M
YoY Change 87.5% 113.52% 128.96%
Other Long-Term Liabilities $7.554M $6.922M $5.399M
YoY Change 54.69% 51.14% 90.76%
Total Long-Term Liabilities $31.14M $26.99M $25.71M
YoY Change 78.32% 93.08% 119.72%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.466M $2.598M $4.548M
Total Long-Term Liabilities $31.14M $26.99M $25.71M
Total Liabilities $34.60M $29.59M $30.26M
YoY Change 45.94% 18.97% 87.79%
SHAREHOLDERS EQUITY
Retained Earnings -$103.0M -$98.82M -$94.14M
YoY Change 198.66%
Common Stock $50.64K $48.69K $47.35K
YoY Change 46.63%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$28.72M -$24.00M -$20.98M
YoY Change
Total Liabilities & Shareholders Equity $5.882M $5.584M $9.279M
YoY Change 7.89% 1.13% 492.02%

Cashflow Statement

Concept 2022 Q3 2022 Q2 2022 Q1
OPERATING ACTIVITIES
Net Income -$4.173M -$4.672M -$14.37M
YoY Change -13.65% -86.99% 535.65%
Depreciation, Depletion And Amortization $145.8K $94.00K $79.63K
YoY Change 205.71% 149.7% 165.43%
Cash From Operating Activities -$3.133M -$3.622M -$4.391M
YoY Change 2.51% 19.1%
INVESTING ACTIVITIES
Capital Expenditures -$119.0K -$88.21K -$80.96K
YoY Change 608.27% -241.77%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 -$1.500K
YoY Change -100.0% -100.0%
Cash From Investing Activities -$119.0K -$88.21K -$82.46K
YoY Change -1001.44% 182.36%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.693M -$16.73K 5.017M
YoY Change 8.16% -100.34%
NET CHANGE
Cash From Operating Activities -3.133M -$3.622M -4.391M
Cash From Investing Activities -119.0K -$88.21K -82.46K
Cash From Financing Activities 2.693M -$16.73K 5.017M
Net Change In Cash -558.6K -$3.727M 544.3K
YoY Change 1.04% -295.74%
FREE CASH FLOW
Cash From Operating Activities -$3.133M -$3.622M -$4.391M
Capital Expenditures -$119.0K -$88.21K -$80.96K
Free Cash Flow -$3.014M -$3.533M -$4.310M
YoY Change -0.84% 13.87%

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CY2022Q2 us-gaap Interest Expense
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CY2021Q2 us-gaap Interest Expense
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CY2021Q2 us-gaap Gain Loss Related To Litigation Settlement
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CY2022Q2 us-gaap Nonoperating Income Expense
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CY2021Q2 us-gaap Nonoperating Income Expense
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CY2022Q2 us-gaap Net Income Loss
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CY2021Q2 us-gaap Net Income Loss
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CY2022Q2 us-gaap Earnings Per Share Basic
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CY2021Q2 us-gaap Earnings Per Share Basic
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CY2022Q2 us-gaap Earnings Per Share Diluted
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CY2021Q2 us-gaap Earnings Per Share Diluted
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CY2022Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2021Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2022Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
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CY2021Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2021Q1 us-gaap Stockholders Equity
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CY2021Q2 us-gaap Stock Issued During Period Value Issued For Services
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CY2021Q2 aitx Stock Repurchase And Retired During Period Value
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CY2021Q2 aitx Warrants Issued With Promissory Notes
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CY2021Q2 aitx Share Based Compensation1
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CY2021Q2 us-gaap Net Income Loss
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CY2021Q2 us-gaap Stockholders Equity
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CY2022Q2 us-gaap Share Based Compensation
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CY2021Q2 us-gaap Amortization Of Debt Discount Premium
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CY2022Q2 us-gaap Payments Of Stock Issuance Costs
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CY2022Q2 aitx Rounding Shares
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CY2021Q2 us-gaap Share Based Compensation
ShareBasedCompensation
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CY2022Q2 us-gaap Net Income Loss
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CY2022Q2 us-gaap Stockholders Equity
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CY2022Q2 us-gaap Net Income Loss
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CY2021Q2 us-gaap Net Income Loss
NetIncomeLoss
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CY2022Q2 us-gaap Depreciation And Amortization
DepreciationAndAmortization
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CY2021Q2 us-gaap Depreciation And Amortization
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CY2021Q2 aitx Revenue Earning Device Sold And Expensed In Cost Of Sales
RevenueEarningDeviceSoldAndExpensedInCostOfSales
3411 usd
CY2022Q2 aitx Allowance For Loan And Leases Loss Recovery Of Bad Debts
AllowanceForLoanAndLeasesLossRecoveryOfBadDebts
-105000 usd
CY2022Q2 aitx Inventory Provision
InventoryProvision
25000 usd
CY2022Q2 aitx Reduction Of Right Of Use Asset
ReductionOfRightOfUseAsset
30046 usd
CY2021Q2 aitx Reduction Of Right Of Use Asset
ReductionOfRightOfUseAsset
15822 usd
CY2022Q2 aitx Accretion Of Lease Liability
AccretionOfLeaseLiability
36355 usd
CY2021Q2 aitx Accretion Of Lease Liability
AccretionOfLeaseLiability
13052 usd
CY2021Q2 aitx Unrealized Gain Loss On Derivatives1
UnrealizedGainLossOnDerivatives1
179439 usd
CY2022Q2 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
415029 usd
CY2021Q2 aitx Gain Loss Related To Litigation Settlement1
GainLossRelatedToLitigationSettlement1
-32984361 usd
CY2022Q2 aitx Increase In Related Party Accrued Payroll And Interest
IncreaseInRelatedPartyAccruedPayrollAndInterest
3240 usd
CY2021Q2 aitx Increase In Related Party Accrued Payroll And Interest
IncreaseInRelatedPartyAccruedPayrollAndInterest
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CY2022Q2 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
40251 usd
CY2021Q2 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
466887 usd
CY2022Q2 us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
-126610 usd
CY2021Q2 us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
80000 usd
CY2022Q2 aitx Robot Parts Inventory
RobotPartsInventory
-283209 usd
CY2021Q2 aitx Robot Parts Inventory
RobotPartsInventory
-253762 usd
CY2022Q2 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
101557 usd
CY2021Q2 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-225006 usd
CY2022Q2 aitx Increase Decrease In Customer Discounts
IncreaseDecreaseInCustomerDiscounts
-10000 usd
CY2021Q2 us-gaap Increase Decrease In Due To Other Related Parties
IncreaseDecreaseInDueToOtherRelatedParties
20998 usd
CY2022Q2 us-gaap Increase Decrease In Operating Liabilities
IncreaseDecreaseInOperatingLiabilities
-66401 usd
CY2021Q2 us-gaap Increase Decrease In Operating Liabilities
IncreaseDecreaseInOperatingLiabilities
-28874 usd
CY2021Q2 aitx Increase Decrease Balance Owed Wesecure
IncreaseDecreaseBalanceOwedWesecure
122000 usd
CY2022Q2 aitx Increase Decrease In Current Portion Of Deferred Variable Payment Obligation
IncreaseDecreaseInCurrentPortionOfDeferredVariablePaymentObligation
62627 usd
CY2021Q2 aitx Increase Decrease In Current Portion Of Deferred Variable Payment Obligation
IncreaseDecreaseInCurrentPortionOfDeferredVariablePaymentObligation
131428 usd
CY2022Q2 us-gaap Increase Decrease In Interest Payable Net
IncreaseDecreaseInInterestPayableNet
289016 usd
CY2021Q2 us-gaap Increase Decrease In Interest Payable Net
IncreaseDecreaseInInterestPayableNet
546016 usd
CY2022Q2 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-3621572 usd
CY2021Q2 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-3040776 usd
CY2022Q2 aitx Purchase Of Fixed Assets
PurchaseOfFixedAssets
88214 usd
CY2021Q2 aitx Purchase Of Fixed Assets
PurchaseOfFixedAssets
15362 usd
CY2021Q2 aitx Cash Paid For Security Deposit
CashPaidForSecurityDeposit
15880 usd
CY2022Q2 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-88214 usd
CY2021Q2 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-31242 usd
CY2022Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
921629 usd
CY2021Q2 aitx Discount Added To Face Value Of Loans
DiscountAddedToFaceValueOfLoans
-6162945 usd
CY2022Q2 aitx Share Proceeds Net Of Issuance Costs
ShareProceedsNetOfIssuanceCosts
1645222 usd
CY2021Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
2948210 usd
CY2022Q2 us-gaap Interest Paid Net
InterestPaidNet
342138 usd
CY2021Q2 aitx Proceeds From Loans Payable
ProceedsFromLoansPayable
5426146 usd
CY2021Q2 us-gaap Interest Paid Net
InterestPaidNet
114710 usd
CY2022Q2 us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
1661953 usd
CY2021Q2 us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
264189 usd
CY2021Q2 us-gaap Repayments Of Convertible Debt
RepaymentsOfConvertibleDebt
65000 usd
CY2021Q2 us-gaap Repayments Of Related Party Debt
RepaymentsOfRelatedPartyDebt
121147 usd
CY2022Q2 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-16731 usd
CY2021Q2 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
4975810 usd
CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-3726517 usd
CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
1903792 usd
CY2022Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
4648146 usd
CY2021Q1 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
1044418 usd
CY2021Q2 aitx Right Of Use Asset For Operating Lease Liability
RightOfUseAssetForOperatingLeaseLiability
1275970 usd
CY2021Q2 aitx Transfer From Device Parts Inventory To Revenu
TransferFromDevicePartsInventoryToRevenu
70162 usd
CY2021Q2 aitx Exchange Of Notes Payable For Series F Preferred Shares
ExchangeOfNotesPayableForSeriesFPreferredShares
6732835 usd
CY2021Q2 aitx Warrants Issued As Part Of Debt Issuance
WarrantsIssuedAsPartOfDebtIssuance
-4749006 usd
CY2021Q2 aitx Series F Preferred Shares Converted To Common Shares
SeriesFPreferredSharesConvertedToCommonShares
-3086 usd
CY2021Q2 aitx Series F Preferred Shares Issued On Exercise Of Warrants
SeriesFPreferredSharesIssuedOnExerciseOfWarrants
-38 usd
CY2022Q2 us-gaap Nature Of Operations
NatureOfOperations
<p id="xdx_801_eus-gaap--NatureOfOperations_zLHfF2nZLKM8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>1. <span id="xdx_82D_z7Hwl2jJEbI9">GENERAL INFORMATION</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Artificial Intelligence Technology Solutions Inc. (“AITX” or the “Company”) was incorporated in Florida on March 25, 2010 and reincorporated in Nevada on February 17, 2015. On August 24, 2018, Artificial Intelligence Technology Solutions Inc., changed its name from On the Move Systems Corp (“OMVS”).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Robotic Assistance Devices, LLC (“RAD”), was incorporated in the State of Nevada on July 26, 2016 as an LLC. On July 25, 2017, Robotic Assistance Devices LLC converted to a C Corporation, Robotic Assistance Devices, Inc., through the issuance of <span id="xdx_904_eus-gaap--CommonStockSharesIssued_iI_pid_uShares_c20170725__us-gaap--BusinessAcquisitionAxis__custom--RoboticAssistanceDevicesLLCMember_zUIuY53x6nsb" title="Common stock, issued">10,000</span> common shares to its sole shareholder.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 28, 2017, AITX completed the acquisition of RAD (the “Acquisition”), whereby AITX acquired all the ownership and equity interest in RAD for <span id="xdx_901_eus-gaap--BusinessAcquisitionEquityInterestsIssuedOrIssuableNumberOfSharesIssued_c20170827__20170828__us-gaap--BusinessAcquisitionAxis__custom--RoboticAssistanceDevicesLLCMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesEPreferredStockMember_zNOEal50X473" title="Number of shares isuued under acquisition">3,350,000</span> shares of AITX Series E Preferred Stock and <span id="xdx_908_eus-gaap--BusinessAcquisitionEquityInterestsIssuedOrIssuableNumberOfSharesIssued_pid_uShares_c20170827__20170828__us-gaap--BusinessAcquisitionAxis__custom--RoboticAssistanceDevicesLLCMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesFPreferredStockMember_ztabahoQOQH9" title="Number of shares isuued under acquisition">2,450</span> shares of Series F Convertible Preferred Stock. AITX’s prior business focus was transportation services, and AITX was exploring the on-demand logistics market by developing a network of logistics partnerships. As a result of the closing of the Acquisition, AITX has succeeded to the business of RAD. As a result, AITX’s business going forward will consist of one segment activity which is the delivery of artificial intelligence and robotic solutions for operational, security and monitoring needs.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Acquisition was treated as a reverse recapitalization effected by a share exchange for financial accounting and reporting purposes since substantially all of AITX’s operations were disposed of as part of the consummation of the transaction. Therefore, no goodwill or other intangible assets were recorded by AITX as a result of the Acquisition. RAD is treated as the accounting acquirer as its stockholders control the Company after the Acquisition, even though AITX was the legal acquirer.  As a result, the assets and liabilities and the historical operations that are reflected in these financial statements are those of RAD as if RAD had always been the reporting company.</p>
CY2022Q2 aitx Net Cash Provided By Used In Operating Activities1
NetCashProvidedByUsedInOperatingActivities1
3621572 usd
CY2022Q2 aitx Retained Earnings Accumulated Deficit1
RetainedEarningsAccumulatedDeficit1
98815940 usd
CY2022Q2 aitx Working Capital
WorkingCapital
617962 usd
CY2022Q2 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
1031392 usd
CY2022Q2 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_84D_eus-gaap--UseOfEstimates_zBwrQWwD0M6g" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_867_zDWtHpwcRtfe">Use of Estimates</span> </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In order to prepare financial statements in conformity with accounting principles generally accepted in the United States, management must make estimates, judgements and assumptions that affect the amounts reported in the financial statements and determine whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based. The most significant estimates included in these consolidated financial statements are those associated with the assumptions used to value preferred stock and derivative liabilities.</p>
CY2022Q1 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
1057579 usd
CY2022Q2 aitx Incentives Compensation Plan Payable Revaluation Of Equity
IncentivesCompensationPlanPayableRevaluationOfEquity
641000 usd
CY2022Q2 aitx Lease Liability
LeaseLiability
1281560 usd
CY2022Q1 aitx Lease Liability
LeaseLiability
1311606 usd
CY2022Q2 us-gaap Derivative Fair Value Of Derivative Liability
DerivativeFairValueOfDerivativeLiability
7587 usd
CY2022Q1 aitx Incentives Compensation Plan Payable Revaluation Of Equity
IncentivesCompensationPlanPayableRevaluationOfEquity
479500 usd
CY2022Q1 us-gaap Derivative Fair Value Of Derivative Liability
DerivativeFairValueOfDerivativeLiability
7587 usd
CY2021Q2 aitx Description Of Business Activity
DescriptionOfBusinessActivity
The company settled convertible notes of $65,000 and accrued interest $22,525 for a cash payment of $93,984. A loss on settlement of debt of $6,459 was recorded.
CY2022Q2 aitx New Accounting Pronouncements Policy Policy Text Block1
NewAccountingPronouncementsPolicyPolicyTextBlock1
<p id="xdx_841_ecustom--NewAccountingPronouncementsPolicyPolicyTextBlock1_zu7YslLWhvX1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_86E_zbNCT0Wr0Jo4">Recently Issued Accounting Pronouncements</span></i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white"><i>Recently Adopted Accounting Standards </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white"><i> </i>In December 2019, the Financial Accounting Standards Board (FASB) issued amended guidance on the accounting and reporting of income taxes. The guidance is intended to simplify the accounting for income taxes by removing exceptions related to certain intraperiod tax allocations and deferred tax liabilities; clarifying guidance primarily related to evaluating the step-up tax basis for goodwill in a business combination; and reflecting enacted changes in tax laws or rates in the annual effective tax rate. The Company adopted the new guidance effective February 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">In January 2020, the FASB issued new guidance intended to clarify certain interactions between accounting standards related to equity securities, equity method investments and certain derivatives. The guidance addresses accounting for the transition into and out of the equity method of accounting and measuring certain purchased options and forward contracts to acquire investments. The Company adopted the new guidance effective February 1, 2021. There was no impact to the Company’s consolidated financial statements upon adoption.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">In August 2020, the FASB issued amended guidance on the accounting for convertible instruments and contracts in an entity’s own equity. The guidance removes the separation model for convertible debt instruments and preferred stock, amends requirements for conversion options to be classified in equity as well as amends diluted earnings per share (EPS) calculations for certain convertible debt instruments. The amended guidance is effective for interim and annual periods in 2022. The application of the amendments in the new guidance are to be applied either on a modified retrospective or a retrospective basis. We are currently assessing the effect that the adoption of this standard will have on the Company’s consolidated financial statements upon adoption.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white"><i>Recently Issued Accounting Standards Not Yet Adopted</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">In March 2020, the FASB issued optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for accounting for contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. The optional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact of adoption on its consolidated financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="background-color: white">In October 2021, the FASB issued amended guidance that requires acquiring entities to recognize and measure contract assets and liabilities in a business combination in accordance with existing revenue recognition guidance. The amended guidance is effective for interim and annual periods in 2023 and is to be applied prospectively. Early adoption is permitted on a retrospective basis to the beginning of the fiscal year of adoption. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">In November 2021, the FASB issued new guidance to increase the transparency of transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The guidance requires annual disclosures of such transactions to include the nature of the transactions and the significant terms and conditions, the accounting treatment and the impact to the company’s financial statements. The guidance is effective for annual periods beginning in 2022 and is to be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of adoption on its consolidated financial statements.</p>
CY2022Q2 aitx Revenue From Device Rental Activities
RevenueFromDeviceRentalActivities
239805 usd
CY2021Q2 aitx Revenue From Device Rental Activities
RevenueFromDeviceRentalActivities
125992 usd
CY2022Q2 aitx Revenue From Direct Sales Of Goods And Services
RevenueFromDirectSalesOfGoodsAndServices
145352 usd
CY2021Q2 aitx Revenue From Direct Sales Of Goods And Services
RevenueFromDirectSalesOfGoodsAndServices
434342 usd
CY2022Q2 us-gaap Revenues
Revenues
385157 usd
CY2021Q2 us-gaap Revenues
Revenues
560334 usd
CY2022Q2 aitx Operating Lease Assets
OperatingLeaseAssets
1296944 usd
CY2022Q1 aitx Operating Lease Assets
OperatingLeaseAssets
1331605 usd
CY2022Q2 aitx Convertible Note Payable Current Portion Gross
ConvertibleNotePayableCurrentPortionGross
3500 usd
CY2022Q1 aitx Convertible Note Payable Current Portion Gross
ConvertibleNotePayableCurrentPortionGross
3500 usd
CY2022Q2 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
250168 usd
CY2022Q2 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
-0 usd
CY2022Q2 aitx Operating Lease Cost1
OperatingLeaseCost1
69967 usd
CY2021Q2 aitx Operating Lease Cost1
OperatingLeaseCost1
28874 usd
CY2022Q2 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
3500 usd
CY2022Q1 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
3500 usd
CY2022Q1 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
325600 usd
CY2022Q2 us-gaap Property Plant And Equipment Other
PropertyPlantAndEquipmentOther
1317825 usd
CY2022Q1 us-gaap Property Plant And Equipment Other
PropertyPlantAndEquipmentOther
1143724 usd
CY2022Q2 us-gaap Property Plant And Equipment Other Accumulated Depreciation
PropertyPlantAndEquipmentOtherAccumulatedDepreciation
506075 usd
CY2022Q1 us-gaap Property Plant And Equipment Other Accumulated Depreciation
PropertyPlantAndEquipmentOtherAccumulatedDepreciation
434661 usd
CY2022Q2 us-gaap Property Plant And Equipment Other Net
PropertyPlantAndEquipmentOtherNet
811750 usd
CY2022Q1 us-gaap Property Plant And Equipment Other Net
PropertyPlantAndEquipmentOtherNet
709063 usd
CY2022Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
280747 usd
CY2022Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
187017 usd
CY2022Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
71646 usd
CY2022Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
49065 usd
CY2022Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
209101 usd
CY2022Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
137952 usd
CY2021Q1 us-gaap Equity Method Investment Aggregate Cost
EquityMethodInvestmentAggregateCost
1925000 usd
CY2022Q2 us-gaap Due To Related Parties Current And Noncurrent
DueToRelatedPartiesCurrentAndNoncurrent
388227 usd
CY2022Q2 aitx Debt Instrument Unamortized Discount Two
DebtInstrumentUnamortizedDiscountTwo
-3500 usd
CY2022Q1 aitx Debt Instrument Unamortized Discount Two
DebtInstrumentUnamortizedDiscountTwo
-3500 usd
CY2022Q2 us-gaap Debt Default Longterm Debt Amount
DebtDefaultLongtermDebtAmount
181410 usd
CY2022Q2 us-gaap Debt Default Longterm Debt Amount
DebtDefaultLongtermDebtAmount
90300 usd
CY2022Q2 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
3500 usd
CY2022Q1 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
3500 usd
CY2021Q2 us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
121147 usd
CY2022Q2 aitx Loan Payable Related Party1
LoanPayableRelatedParty1
196796 usd
CY2022Q1 aitx Loan Payable Related Party1
LoanPayableRelatedParty1
193556 usd
CY2022Q2 us-gaap Due To Related Parties Current
DueToRelatedPartiesCurrent
113940 usd
CY2022Q2 aitx Deferred Salary Payable Related Party
DeferredSalaryPayableRelatedParty
108000 usd
CY2022Q2 aitx Percentage Of Interest Expense Due To Related Party
PercentageOfInterestExpenseDueToRelatedParty
0.12 pure
CY2022Q1 us-gaap Due To Related Parties Current
DueToRelatedPartiesCurrent
110700 usd
CY2022 us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
90000 usd
CY2022 aitx Percentage Of Interest Expense Due To Related Party
PercentageOfInterestExpenseDueToRelatedParty
0.12 pure
CY2022Q2 aitx Interest Accrued Related Party
InterestAccruedRelatedParty
5940 usd
CY2021Q2 aitx Interest Accrued Related Party
InterestAccruedRelatedParty
138858 usd
CY2022Q2 aitx Incentive Compensation Plan Payable1
IncentiveCompensationPlanPayable1
641000 usd
CY2022Q1 aitx Incentive Compensation Plan Payable1
IncentiveCompensationPlanPayable1
479500 usd
CY2022Q2 us-gaap Professional Fees
ProfessionalFees
1001734 usd
CY2021Q2 us-gaap Professional Fees
ProfessionalFees
478951 usd
CY2022Q1 aitx Proceeds Of Disposal Of Vehicle Offset Against Vehicle Loan
ProceedsOfDisposalOfVehicleOffsetAgainstVehicleLoan
18766 usd
CY2022Q1 aitx Remaining Asset Value
RemainingAssetValue
5515 usd
CY2020Q4 us-gaap Security Deposit
SecurityDeposit
3859 usd
CY2022Q2 us-gaap Debt Conversion Original Debt Issuance Date Of Debt Day Month And Year
DebtConversionOriginalDebtIssuanceDateOfDebtDayMonthAndYear
2020-05-22
CY2022Q2 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
24571646 usd
CY2022Q2 aitx Less Discount On Loans Payable
LessDiscountOnLoansPayable
-4504793 usd
CY2022Q2 us-gaap Notes Payable
NotesPayable
20066853 usd
CY2022Q2 aitx Debt Instrument Accrued Interest
DebtInstrumentAccruedInterest
342138 usd
CY2022Q2 aitx Total Debt Instrument Face Amount
TotalDebtInstrumentFaceAmount
2004091 usd
CY2022Q2 us-gaap Derivative Liabilities Current
DerivativeLiabilitiesCurrent
7587 usd
CY2022Q1 us-gaap Derivative Liabilities Current
DerivativeLiabilitiesCurrent
7587 usd
CY2022Q2 aitx Common Stock Shares Issued1
CommonStockSharesIssued1
133881576 shares
CY2022Q2 us-gaap Common Stock Shares Subscriptions
CommonStockSharesSubscriptions
1645222 usd
CY2022Q2 aitx Share Based Compensation2
ShareBasedCompensation2
0 usd
CY2021Q2 aitx Share Based Compensation2
ShareBasedCompensation2
0 usd
CY2022Q2 dei Entity Address Address Description
EntityAddressAddressDescription
the Company entered into a 15-month lease agreement for office space at 18009 Sky Park Circle Suite E, Irvine CA, 92614, commencing on December 18, 2020 through to March 31, 2022
CY2020Q4 us-gaap Payments For Rent
PaymentsForRent
3859 usd
CY2022Q2 aitx Entity Address Address Description1
EntityAddressAddressDescription1
the Company entered into a 10 year lease agreement for q manufacturing facility at 10800 Galaxie Avenue, Ferndale, Michigan, 48220, commencing on May 1, 2021 through to April 30, 2031
CY2022Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.00
CY2021Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.01
CY2021Q1 us-gaap Payments For Rent
PaymentsForRent
15880 usd
CY2021Q1 us-gaap Security Deposit
SecurityDeposit
15880 usd
CY2022 aitx Entity Address Address Description1
EntityAddressAddressDescription1
the Company entered into a 3-year lease agreement for a vehicle commencing September 30, 2021 through to April 30, 2031 with a minimum base rent of $1,538 per month. The Company paid a down payment of $18,462
CY2022Q1 aitx Entity Address Address Description1
EntityAddressAddressDescription1
the Company entered into a 2-year lease agreement for office space at 1516 E Edinger, Santa Ana, California, 92705, commencing on February 1, 2022 through to January 31, 2024 with a minimum base rent of $1,500 per month. The Company paid a security deposit of $1,500
CY2022Q2 us-gaap Lessor Operating Lease Payments To Be Received Next Rolling Twelve Months
LessorOperatingLeasePaymentsToBeReceivedNextRollingTwelveMonths
250169 usd
CY2022Q2 us-gaap Lessor Operating Lease Payments To Be Received Rolling Year Two
LessorOperatingLeasePaymentsToBeReceivedRollingYearTwo
244169 usd
CY2022Q2 us-gaap Lessor Operating Lease Payments To Be Received Rolling Year Three
LessorOperatingLeasePaymentsToBeReceivedRollingYearThree
213711 usd
CY2022Q2 us-gaap Lessor Operating Lease Payments To Be Received Rolling Year Four
LessorOperatingLeasePaymentsToBeReceivedRollingYearFour
207558 usd
CY2022Q2 us-gaap Lessor Operating Lease Payments To Be Received Rolling Year Five
LessorOperatingLeasePaymentsToBeReceivedRollingYearFive
207558 usd
CY2022Q2 us-gaap Lessor Operating Lease Payments To Be Received After Rolling Year Five
LessorOperatingLeasePaymentsToBeReceivedAfterRollingYearFive
812935 usd
CY2022Q2 us-gaap Lessor Operating Lease Payments To Be Received
LessorOperatingLeasePaymentsToBeReceived
1936100 usd
CY2022Q2 aitx Lessor Operating Lease Payments To Be Received Less Interest
LessorOperatingLeasePaymentsToBeReceivedLessInterest
654540 usd
CY2022Q2 aitx Operating Lease Right Of Use Asset1
OperatingLeaseRightOfUseAsset1
1281560 usd
CY2022Q2 us-gaap Net Income Loss
NetIncomeLoss
-4671686 usd
CY2021Q2 us-gaap Net Income Loss
NetIncomeLoss
-35904918 usd
CY2022Q2 us-gaap Interest On Convertible Debt Net Of Tax
InterestOnConvertibleDebtNetOfTax
194 usd
CY2021Q2 us-gaap Interest On Convertible Debt Net Of Tax
InterestOnConvertibleDebtNetOfTax
24954 usd
CY2021Q2 aitx Tax Effect Of Increase Decrease Interest Expense
TaxEffectOfIncreaseDecreaseInterestExpense
-179439 usd
CY2022Q2 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-4671492 usd
CY2021Q2 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-36059403 usd
CY2022Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
4798657871 shares
CY2021Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
3489517478 shares
CY2022Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.00
CY2021Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.01
CY2022Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
18062306095 shares
CY2021Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
12906512276 shares

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