2023 Q2 Form 10-K Financial Statement

#000116169723000356 Filed on June 14, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1 2023
Revenue $385.2K $276.9K $1.332M
YoY Change 0.01% -25.42% -7.96%
Cost Of Revenue $91.51K $224.2K $678.1K
YoY Change -68.84% 26.93% 43.38%
Gross Profit $293.7K $52.74K $653.9K
YoY Change 221.22% -72.91% -32.88%
Gross Profit Margin 76.24% 19.05% 49.09%
Selling, General & Admin $2.183M $2.284M $9.241M
YoY Change -11.63% -9.32% -17.35%
% of Gross Profit 743.27% 4330.17% 1413.25%
Research & Development $891.8K $824.6K $3.625M
YoY Change -12.89% 27.85% 22.42%
% of Gross Profit 303.63% 1563.58% 554.45%
Depreciation & Amortization $167.9K $145.5K $478.1K
YoY Change 78.67% 82.69% 105.3%
% of Gross Profit 57.18% 275.84% 73.12%
Operating Expenses $3.243M $3.254M $13.34M
YoY Change -9.63% 0.33% -7.17%
Operating Profit -$2.949M -$3.201M -$12.69M
YoY Change -15.66% 5.01% -5.3%
Interest Expense -$1.606M -$1.978M $5.426M
YoY Change -236.7% -82.52% -134.44%
% of Operating Profit
Other Income/Expense, Net -$1.606M -$5.419M
YoY Change 36.7% -88.9%
Pretax Income -$4.555M -$5.179M -$18.11M
YoY Change -2.49% -63.95% -70.88%
Income Tax
% Of Pretax Income
Net Earnings -$4.555M -$5.179M -$18.11M
YoY Change -2.49% -63.95% -70.88%
Net Earnings / Revenue -1182.52% -1870.31% -1359.61%
Basic Earnings Per Share $0.00 $0.00
Diluted Earnings Per Share $0.00 $0.00 $0.00
COMMON SHARES
Basic Shares Outstanding 6.118B shares 5.378B shares 5.092B shares
Diluted Shares Outstanding 5.965B shares 5.092B shares

Balance Sheet

Concept 2023 Q2 2023 Q1 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $287.2K $939.8K $939.8K
YoY Change -68.84% -79.78% -79.78%
Cash & Equivalents $287.2K $939.8K
Short-Term Investments
Other Short-Term Assets $521.5K $596.3K $596.3K
YoY Change 62.88% 34.86% 34.86%
Inventory $1.489M $1.638M $1.638M
Prepaid Expenses $521.5K $596.3K
Receivables $391.8K $265.0K $265.0K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $2.690M $3.439M $3.439M
YoY Change -16.35% -51.22% -51.22%
LONG-TERM ASSETS
Property, Plant & Equipment $3.039M $315.9K $2.760M
YoY Change 1353.57% 128.98% 26.67%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $71.24K $71.24K $71.24K
YoY Change 235.4% 235.4% 235.4%
Other Assets
YoY Change
Total Long-Term Assets $3.138M $2.858M $2.858M
YoY Change 32.52% 28.24% 28.24%
TOTAL ASSETS
Total Short-Term Assets $2.690M $3.439M $3.439M
Total Long-Term Assets $3.138M $2.858M $2.858M
Total Assets $5.828M $6.297M $6.297M
YoY Change 4.37% -32.14% -32.14%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.336M $1.343M $1.343M
YoY Change 24.81% 38.66% 38.66%
Accrued Expenses $4.986M $3.010M $3.010M
YoY Change 1892.85% 98.78% 98.78%
Deferred Revenue $36.46K $9.900K
YoY Change -1.0%
Short-Term Debt $0.00 $1.594K $0.00
YoY Change -100.0% 0.0% -100.0%
Long-Term Debt Due $16.50M $10.16M $10.16M
YoY Change 6912.91% 721.76% 721.76%
Total Short-Term Liabilities $24.51M $16.05M $16.05M
YoY Change 843.46% 252.92% 252.92%
LONG-TERM LIABILITIES
Long-Term Debt $9.884M $15.55M $15.55M
YoY Change -50.74% -23.41% -23.41%
Other Long-Term Liabilities $5.513M $6.536M $6.536M
YoY Change -20.35% 21.07% 21.07%
Total Long-Term Liabilities $15.40M $22.09M $22.09M
YoY Change -42.95% -14.07% -14.07%
TOTAL LIABILITIES
Total Short-Term Liabilities $24.51M $16.05M $16.05M
Total Long-Term Liabilities $15.40M $22.09M $22.09M
Total Liabilities $39.91M $38.14M $38.14M
YoY Change 34.88% 26.06% 26.06%
SHAREHOLDERS EQUITY
Retained Earnings -$116.8M -$112.3M
YoY Change 18.21% 19.24%
Common Stock $61.30K $58.49K
YoY Change 25.89% 23.52%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$34.08M -$31.84M -$31.84M
YoY Change
Total Liabilities & Shareholders Equity $5.828M $6.297M $6.297M
YoY Change 4.37% -32.14% -32.14%

Cashflow Statement

Concept 2023 Q2 2023 Q1 2023
OPERATING ACTIVITIES
Net Income -$4.555M -$5.179M -$18.11M
YoY Change -2.49% -63.95% -70.88%
Depreciation, Depletion And Amortization $167.9K $145.5K $478.1K
YoY Change 78.67% 82.69% 105.3%
Cash From Operating Activities -$2.991M -$2.694M -$12.58M
YoY Change -17.41% -38.64% -15.16%
INVESTING ACTIVITIES
Capital Expenditures $3.460K $40.80K $258.4K
YoY Change -103.92% -150.4% -282.2%
Acquisitions
YoY Change
Other Investing Activities -$50.00K -$50.00K
YoY Change 3233.33% -496.2%
Cash From Investing Activities -$3.460K -$90.80K -$308.4K
YoY Change -96.08% 10.11% 138.7%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.342M 3.011M $9.177M
YoY Change -14097.43% -39.99% -50.55%
NET CHANGE
Cash From Operating Activities -2.991M -2.694M -$12.58M
Cash From Investing Activities -3.460K -90.80K -$308.4K
Cash From Financing Activities 2.342M 3.011M $9.177M
Net Change In Cash -652.6K 226.3K -$3.708M
YoY Change -82.49% -58.43% -202.9%
FREE CASH FLOW
Cash From Operating Activities -$2.991M -$2.694M -$12.58M
Capital Expenditures $3.460K $40.80K $258.4K
Free Cash Flow -$2.994M -$2.735M -$12.84M
YoY Change -15.25% -36.54% -12.58%

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<p id="xdx_803_eus-gaap--NatureOfOperations_z8pFAhtN9736" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>1. <span id="xdx_824_z4aaC1Q6SxD4">GENERAL INFORMATION AND GOING CONCERN</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. (formerly known as On the Move Systems Corp.) (“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 a 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_903_eus-gaap--CommonStockSharesIssued_iI_pid_uShares_c20170725__us-gaap--BusinessAcquisitionAxis__custom--RoboticAssistanceDevicesLLCMember_zTVK1HlL0UJ8" 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_906_eus-gaap--BusinessAcquisitionEquityInterestsIssuedOrIssuableNumberOfSharesIssued_c20170827__20170828__us-gaap--BusinessAcquisitionAxis__custom--RoboticAssistanceDevicesLLCMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesEPreferredStockMember_zxs9bHpI3NSi" title="Number of shares isuued under acquisition">3,350,000</span> shares of AITX Series E Preferred Stock and <span id="xdx_902_eus-gaap--BusinessAcquisitionEquityInterestsIssuedOrIssuableNumberOfSharesIssued_pid_uShares_c20170827__20170828__us-gaap--BusinessAcquisitionAxis__custom--RoboticAssistanceDevicesLLCMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesFPreferredStockMember_zRmf7zmprdib" 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, in which AITX purchased all of the outstanding shares of capital stock 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> <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"><b>GOING CONCERN</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">The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.</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">For the year ended February 28, 2023, the Company had negative cash flow from operating activities of $<span id="xdx_901_ecustom--NetCashProvidedByUsedInOperatingActivities1_c20220301__20230228_zQrfx10QtQS6" title="Cash flow from operating activities">12,577,395</span>. As of February 28, 2023 the Company has an accumulated deficit of $<span id="xdx_90B_ecustom--RetainedEarningsAccumulatedDeficit1_iI_pp0p0_c20230228_ztPjifI9KhI5" title="Accumulated deficit">112,253,711</span> and negative working capital of $<span id="xdx_900_ecustom--WorkingCapital_iI_c20230228_zgYzc14Qwmte" title="Working capital">12,610,601</span>. Management does not anticipate having positive cash flow from operations in the near future. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the issuance of these financial statements.</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 Company does not have the resources at this time to repay all its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business. At the same time management points to its successful history with maintaining Company operations and reminds all with  reasonable confidence this will continue. Management has plans to address the Company’s financial situation as follows:</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">Management is committed to raise either non-dilutive funds or minimally dilutive funds. There is no assurance that these funds will be able to be raised nor can we provide assurance that these possible raises may not have dilutive effects. In March 2023, the Company entered into an equity financing agreement whereby an investor will purchase up to $<span id="xdx_90C_eus-gaap--PaymentsOfStockIssuanceCosts_c20230301__20230331__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zHXKhLehXoFj" title="Purchase of common stock">30,000,000</span> of the Company’s common stock at a discount over a two-year period.   In March and April the Company reduced personnel that were working on far-future solutions as well as other department reductions. Combined with other cost cutting measures management estimates it reduced the monthly expense burn by $ <span id="xdx_908_eus-gaap--OtherNonrecurringExpense_c20220301__20230228__srt--RangeAxis__srt--MinimumMember_zrGXZEtFL9P7" title="Other cost cutting management estimates">200,000</span> - $ <span id="xdx_905_eus-gaap--OtherNonrecurringExpense_c20220301__20230228__srt--RangeAxis__srt--MaximumMember_z3jXXqhyEn3b" title="Other cost cutting management estimates">300,000</span> with little impact on short and medium term operations. Management believes that it has the necessary support to continue operations by continuing its funding methods in the following ways : growing revenues ,equity proceeds and non-convertible debt. Management has had many recent conversations with the Company’s primary debt holder and believes that the non-convertible debt on the balance sheet will be extended. Management notes that non-convertible debt on the books has been extended by this debt holder twice in the past and notes that this debt holder has been a strong supporter of the Company.</p>
CY2023 aitx Net Cash Provided By Used In Operating Activities1
NetCashProvidedByUsedInOperatingActivities1
12577395 usd
CY2023Q1 aitx Retained Earnings Accumulated Deficit1
RetainedEarningsAccumulatedDeficit1
112253711 usd
CY2023Q1 aitx Working Capital
WorkingCapital
12610601 usd
CY2023 us-gaap Valuation Allowance Deferred Tax Asset Explanation Of Change
ValuationAllowanceDeferredTaxAssetExplanationOfChange
The Company’s gross deferred tax assets were revalued based on the reduction in the federal statutory tax rate from 35% to 21%.
CY2022Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
137952 usd
CY2023 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_843_eus-gaap--UseOfEstimates_z05ppy6f8ZO8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_86F_zb2vpEey4Kc3">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 principals 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 equity instruments used in debt settlements, amendments and extensions.</p>
CY2023Q1 us-gaap Loans Payable
LoansPayable
31254345 usd
CY2022Q1 us-gaap Loans Payable
LoansPayable
26233598 usd
CY2023Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
39000 usd
CY2022Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
33890 usd
CY2023 aitx Percentage Of Accounts Receivable
PercentageOfAccountsReceivable
0.48 pure
CY2022 aitx Percentage Of Accounts Receivable
PercentageOfAccountsReceivable
0.63 pure
CY2022Q1 us-gaap Sale Leaseback Transaction Net Book Value
SaleLeasebackTransactionNetBookValue
875 usd
CY2022 us-gaap Proceeds From Sale Of Other Assets1
ProceedsFromSaleOfOtherAssets1
30000 usd
CY2022 us-gaap Gain Loss On Disposition Of Assets
GainLossOnDispositionOfAssets
29125 usd
CY2021Q1 us-gaap Equity Method Investment Aggregate Cost
EquityMethodInvestmentAggregateCost
1925000 usd
CY2023Q1 us-gaap Debt Default Longterm Debt Amount
DebtDefaultLongtermDebtAmount
0 usd
CY2023Q1 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
195000 usd
CY2022Q1 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
65000 usd
CY2023Q1 us-gaap Deferred Tax Liabilities Deferred Expense Capitalized Research And Development Costs
DeferredTaxLiabilitiesDeferredExpenseCapitalizedResearchAndDevelopmentCosts
0 usd
CY2022Q1 us-gaap Deferred Tax Liabilities Deferred Expense Capitalized Research And Development Costs
DeferredTaxLiabilitiesDeferredExpenseCapitalizedResearchAndDevelopmentCosts
0 usd
CY2023Q1 us-gaap Revenue Remaining Performance Obligation Percentage
RevenueRemainingPerformanceObligationPercentage
0.45 pure
CY2022Q1 us-gaap Revenue Remaining Performance Obligation Percentage
RevenueRemainingPerformanceObligationPercentage
0.43 pure
CY2023Q1 aitx Incentives Compensation Plan Payable Revaluation Of Equity
IncentivesCompensationPlanPayableRevaluationOfEquity
979000 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
CY2023 aitx New Accounting Pronouncements Policy Policy Text Block1
NewAccountingPronouncementsPolicyPolicyTextBlock1
<p id="xdx_845_ecustom--NewAccountingPronouncementsPolicyPolicyTextBlock1_zZHokVkCw5Il" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i><span id="xdx_86A_zUfNf3MgdYJi">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><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><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>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>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><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"><i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span>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>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>
CY2023 aitx Revenue From Device Rental Activities
RevenueFromDeviceRentalActivities
754126 usd
CY2022 aitx Revenue From Device Rental Activities
RevenueFromDeviceRentalActivities
592401 usd
CY2023 aitx Revenue From Direct Sales Of Goods And Services
RevenueFromDirectSalesOfGoodsAndServices
577830 usd
CY2022 aitx Revenue From Direct Sales Of Goods And Services
RevenueFromDirectSalesOfGoodsAndServices
854708 usd
CY2023 us-gaap Revenues
Revenues
1331956 usd
CY2022 us-gaap Revenues
Revenues
1447109 usd
CY2023Q1 aitx Operating Lease Assets
OperatingLeaseAssets
1208440 usd
CY2022Q1 aitx Operating Lease Assets
OperatingLeaseAssets
1331605 usd
CY2023Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
248670 usd
CY2022Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
254027 usd
CY2023Q1 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
950541 usd
CY2022Q1 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
1057579 usd
CY2023Q1 aitx Lease Liability
LeaseLiability
1199211 usd
CY2022Q1 aitx Lease Liability
LeaseLiability
1311606 usd
CY2023 aitx Operating Lease Cost1
OperatingLeaseCost1
260271 usd
CY2023 aitx Rental Expense
RentalExpense
260271 usd
CY2022 aitx Operating Lease Cost1
OperatingLeaseCost1
275785 usd
CY2022 aitx Rental Expense
RentalExpense
275785 usd
CY2022Q1 us-gaap Property Plant And Equipment Other
PropertyPlantAndEquipmentOther
2015058 usd
CY2021Q1 us-gaap Property Plant And Equipment Other
PropertyPlantAndEquipmentOther
1143724 usd
CY2022Q1 us-gaap Property Plant And Equipment Other Accumulated Depreciation
PropertyPlantAndEquipmentOtherAccumulatedDepreciation
779839 usd
CY2021Q1 us-gaap Property Plant And Equipment Other Accumulated Depreciation
PropertyPlantAndEquipmentOtherAccumulatedDepreciation
434661 usd
CY2022Q1 us-gaap Property Plant And Equipment Other Net
PropertyPlantAndEquipmentOtherNet
1235219 usd
CY2021Q1 us-gaap Property Plant And Equipment Other Net
PropertyPlantAndEquipmentOtherNet
709063 usd
CY2023Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
497890 usd
CY2022Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
187017 usd
CY2023Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
182002 usd
CY2022Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
49065 usd
CY2023Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
315888 usd
CY2022Q1 us-gaap Debt Default Longterm Debt Amount
DebtDefaultLongtermDebtAmount
0 usd
CY2022Q1 us-gaap Convertible Notes Payable
ConvertibleNotesPayable
3500 usd
CY2022Q1 aitx Debt Instrument Unamortized Discount Two
DebtInstrumentUnamortizedDiscountTwo
-3500 usd
CY2022Q1 aitx Convertible Note Payable Current Portion Gross
ConvertibleNotePayableCurrentPortionGross
3500 usd
CY2023Q1 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
-0 usd
CY2022Q1 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
3500 usd
CY2023 aitx Debt Instruments Issued Principal
DebtInstrumentsIssuedPrincipal
75000 usd
CY2022 aitx Debt Instruments Issued Principal
DebtInstrumentsIssuedPrincipal
0 usd
CY2023Q1 us-gaap Derivative Instruments And Hedges Liabilities
DerivativeInstrumentsAndHedgesLiabilities
393949 usd
CY2022Q1 us-gaap Derivative Instruments And Hedges Liabilities
DerivativeInstrumentsAndHedgesLiabilities
438835 usd
CY2023 aitx Amortization Of Debt Discount Interest Expense
AmortizationOfDebtDiscountInterestExpense
524699 usd
CY2022 aitx Amortization Of Debt Discount Interest Expense
AmortizationOfDebtDiscountInterestExpense
775986 usd
CY2023Q1 us-gaap Interest Payable Current
InterestPayableCurrent
28104 usd
CY2022Q1 us-gaap Interest Payable Current
InterestPayableCurrent
28104 usd
CY2023 aitx Description Of Business Activity
DescriptionOfBusinessActivity
The Company transferred the above July 18, 2016 $3,500 note to loans payable as the note was no longer convertible. This was a result of an SEC action against the debt holder who was also a common stockholder.
CY2023 aitx Description Of Business Activity One
DescriptionOfBusinessActivityOne
On August 9, 2022 the Company entered into a new convertible note for $750,000 with a one year maturity, interest rate of 12%, with a warrant (Warrant 1) to purchase 47,000,000 common shares with a five year maturity and an exercise price of $0.01, and an additional warrant (Warrant 2) to purchase 47,000,000 common shares with a five year maturity and an exercise price of $0.008 to be cancelled and extinguished if the note balance is $375,000 or less by February 9. 2023. The Company received $619,250 in cash proceeds, recorded an original issue discount of $75,000, recognized $393,949 based on a relative fair value calculation as debt discount with a corresponding adjustment to paid-in capital for the attached warrants, and transaction fees of $55,750. The discount is amortized over the term of the loan. This note and related accrued interest have been fully repaid at February 28, 2023.
CY2023 aitx Description Of Business Activity Two
DescriptionOfBusinessActivityTwo
the Company amended the January 27, 2021 agreement with the lender whereby the conversion rate was changed from $0.10 to $0.03 as a result of a dilutive issuance. This resulted a derivative discount of $438,835 and a loss on extinguishment of $360,125.
CY2023 aitx Description Of Business Activity Three
DescriptionOfBusinessActivityThree
holders of certain convertible notes payable elected to convert a total of $825,000 of principal and $71,955 accrued interest, and $1,750 of fees into 31,042,436 shares of common stock. No gain or loss was recognized on conversions as these conversions occurred within the terms of the agreement that provided for conversion. 
CY2023 aitx Description Of Business Activity Four
DescriptionOfBusinessActivityFour
the conversion rate of the January 19, 2021 note included above was reduced to $0.027 due to the dilutive issuance provision in the January 19, 2021 agreement.
CY2023 us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
0 usd
CY2022 us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
803394 usd
CY2023Q1 aitx Loan Payable Related Party1
LoanPayableRelatedParty1
206516 usd
CY2022Q1 aitx Loan Payable Related Party1
LoanPayableRelatedParty1
193556 usd
CY2023Q1 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
108000 usd
CY2023 aitx Percentage Of Interest Expense Due To Related Party
PercentageOfInterestExpenseDueToRelatedParty
0.12 pure
CY2023 aitx Deferred Salary Payable Related Party
DeferredSalaryPayableRelatedParty
108000 usd
CY2023 aitx Deferred Salary Payable Related Party Bearing Interest
DeferredSalaryPayableRelatedPartyBearingInterest
90000 usd
CY2023 aitx Percentage Of Interest Expense Due To Related Party
PercentageOfInterestExpenseDueToRelatedParty
0.12 pure
CY2023 aitx Interest Accrued Related Party
InterestAccruedRelatedParty
15660 usd
CY2022 aitx Interest Accrued Related Party
InterestAccruedRelatedParty
2700 usd
CY2023 us-gaap Professional Fees
ProfessionalFees
3578981 usd
CY2022 us-gaap Professional Fees
ProfessionalFees
2258819 usd
CY2022Q1 aitx Proceeds Of Disposal Of Vehicle Offset Against Vehicle Loan
ProceedsOfDisposalOfVehicleOffsetAgainstVehicleLoan
18766 usd
CY2022Q1 aitx Remaining Asset Value
RemainingAssetValue
5515 usd
CY2023Q1 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
31254346 usd
CY2023Q1 aitx Long Term Notes Payable Non Current
LongTermNotesPayableNonCurrent
-11569986 usd
CY2023Q1 aitx Discount On Long Term Notes Payable Non Current
DiscountOnLongTermNotesPayableNonCurrent
-4130291 usd
CY2023Q1 us-gaap Long Term Notes Payable
LongTermNotesPayable
15554069 usd
CY2023Q1 aitx Long Term Notes Payable Current
LongTermNotesPayableCurrent
11569986 usd
CY2023Q1 aitx Discount On Long Term Notes Payable Current
DiscountOnLongTermNotesPayableCurrent
-1651597 usd
CY2023Q1 us-gaap Notes Payable Current
NotesPayableCurrent
9918389 usd
CY2023Q1 aitx Debt Instrument Accrued Interest
DebtInstrumentAccruedInterest
342138 usd
CY2023Q1 aitx Total Debt Instrument Face Amount
TotalDebtInstrumentFaceAmount
2004091 usd
CY2023Q1 us-gaap Accrued Liabilities Current And Noncurrent
AccruedLiabilitiesCurrentAndNoncurrent
62979 usd
CY2023Q1 aitx Derivative Liabilities Current1
DerivativeLiabilitiesCurrent1
0 usd
CY2022Q1 aitx Derivative Liabilities Current1
DerivativeLiabilitiesCurrent1
7587 usd
CY2023 aitx Fair Value Of Derivative Liabilities Current
FairValueOfDerivativeLiabilitiesCurrent
0 usd
CY2022 aitx Fair Value Of Derivative Liabilities Current
FairValueOfDerivativeLiabilitiesCurrent
3595 usd
CY2023 us-gaap Debt Securities Gain Loss
DebtSecuritiesGainLoss
0 usd
CY2022 us-gaap Debt Securities Gain Loss
DebtSecuritiesGainLoss
3992 usd
CY2022 aitx Change In Fair Value Of Derivative Liabilities
ChangeInFairValueOfDerivativeLiabilities
372214 usd
CY2022 aitx Gain On Settlement Of Debt
GainOnSettlementOfDebt
81228 usd
CY2023Q1 aitx Preferred Stock Shares Authorized Maximum
PreferredStockSharesAuthorizedMaximum
20000000 shares
CY2023Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2023Q1 us-gaap Preferred Stock Convertible Shares Issuable
PreferredStockConvertibleSharesIssuable
78 shares
CY2021Q1 us-gaap Common Stock Conversion Basis
CommonStockConversionBasis
Two Series F Preferred shareholders exchanged 83 Series F Preferred Shares for two promissory notes on March 23, 2021. The notes are non-interest bearing, have a one-year maturity and total $7,546,775. These notes were subsequently exchanged on June 2, 2021 for a total of 116,104.232 common shares.
CY2021Q3 us-gaap Common Stock Conversion Basis
CommonStockConversionBasis
On July 12, 2021, the former director agreed to surrender his remaining 184 Series F preferred shares in exchange for a note payable from the Company of $4,000,160 bearing interest at 7% per annum with a 5 year term, maturing July 12, 2026.
CY2021Q3 us-gaap Common Stock Conversion Basis
CommonStockConversionBasis
On August 24, 2021the Series F preferred warrant holder agreed to not exercise his warrant privileges on his remaining 329 warrant shares before September 1, 2023.
CY2023 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
21929 usd
CY2023 us-gaap Stock Issued During Period Value Employee Stock Ownership Plan
StockIssuedDuringPeriodValueEmployeeStockOwnershipPlan
499500 usd
CY2023 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
1979500 usd
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
2100000 shares
CY2022 us-gaap Stock Granted During Period Value Sharebased Compensation Gross
StockGrantedDuringPeriodValueSharebasedCompensationGross
109200 usd
CY2023 aitx Share Based Compensation2
ShareBasedCompensation2
0 usd
CY2022 aitx Share Based Compensation2
ShareBasedCompensation2
0 usd
CY2023 aitx Share Based Compensation3
ShareBasedCompensation3
240550 usd
CY2022 aitx Share Based Compensation3
ShareBasedCompensation3
1678550 usd
CY2023 aitx Share Based Compensation4
ShareBasedCompensation4
499500 usd
CY2022 aitx Share Based Compensation4
ShareBasedCompensation4
479500 usd
CY2022Q3 us-gaap Class Of Warrant Or Right Unissued
ClassOfWarrantOrRightUnissued
955000000 shares
CY2022Q3 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
3000000 usd
CY2022Q3 us-gaap Debt Instrument Interest Rate Effective Percentage
DebtInstrumentInterestRateEffectivePercentage
0.15 pure
CY2022Q3 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
2960500 shares
CY2022Q3 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
39500 usd
CY2022Q3 us-gaap Class Of Warrant Or Right Unissued
ClassOfWarrantOrRightUnissued
47000000 shares
CY2022Q3 us-gaap Warrant Exercise Price Increase
WarrantExercisePriceIncrease
0.01
CY2022Q3 us-gaap Warrant Exercise Price Decrease
WarrantExercisePriceDecrease
0.008
CY2022Q3 us-gaap Warrants And Rights Outstanding Term
WarrantsAndRightsOutstandingTerm
P5Y
CY2022Q3 us-gaap Derivative Fair Value Of Derivative Net
DerivativeFairValueOfDerivativeNet
393949 usd
CY2023 us-gaap Stock Granted During Period Value Sharebased Compensation Forfeited
StockGrantedDuringPeriodValueSharebasedCompensationForfeited
122050 usd
CY2023 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 with a minimum base rent of $3,859 per month.
CY2020Q4 us-gaap Payments For Rent
PaymentsForRent
3859 usd
CY2020Q4 us-gaap Security Deposit
SecurityDeposit
3859 usd
CY2023 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 with a minimum base rent of $15,880 per month.
CY2021Q1 us-gaap Payments For Rent
PaymentsForRent
15880 usd
CY2021Q1 us-gaap Security Deposit
SecurityDeposit
15880 usd
CY2023 aitx Entity Address Address Description2
EntityAddressAddressDescription2
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.
CY2023 aitx Entity Address Address Description3
EntityAddressAddressDescription3
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
CY2022Q1 us-gaap Payments For Rent
PaymentsForRent
1500 usd
CY2022Q1 us-gaap Security Deposit
SecurityDeposit
1500 usd
CY2023 aitx Lease Cost And Rental Expense
LeaseCostAndRentalExpense
260271 usd
CY2022 aitx Lease Cost And Rental Expense
LeaseCostAndRentalExpense
275785 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Next Rolling Twelve Months
LessorOperatingLeasePaymentsToBeReceivedNextRollingTwelveMonths
248669 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Rolling Year Two
LessorOperatingLeasePaymentsToBeReceivedRollingYearTwo
219863 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Rolling Year Three
LessorOperatingLeasePaymentsToBeReceivedRollingYearThree
207558 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Rolling Year Four
LessorOperatingLeasePaymentsToBeReceivedRollingYearFour
207558 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received Rolling Year Five
LessorOperatingLeasePaymentsToBeReceivedRollingYearFive
207558 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received After Rolling Year Five
LessorOperatingLeasePaymentsToBeReceivedAfterRollingYearFive
657268 usd
CY2023Q1 us-gaap Lessor Operating Lease Payments To Be Received
LessorOperatingLeasePaymentsToBeReceived
1748474 usd
CY2023Q1 aitx Lessor Operating Lease Payments To Be Received Less Interest
LessorOperatingLeasePaymentsToBeReceivedLessInterest
549263 usd
CY2023Q1 aitx Operating Lease Right Of Use Asset1
OperatingLeaseRightOfUseAsset1
1199211 usd
CY2023 us-gaap Net Income Loss
NetIncomeLoss
-18109457 usd
CY2022 us-gaap Net Income Loss
NetIncomeLoss
-62197484 usd
CY2023 us-gaap Interest On Convertible Debt Net Of Tax
InterestOnConvertibleDebtNetOfTax
47075 usd
CY2022 us-gaap Interest On Convertible Debt Net Of Tax
InterestOnConvertibleDebtNetOfTax
24954 usd
CY2023 aitx Tax Effect Of Increase Decrease Interest Expense Debt
TaxEffectOfIncreaseDecreaseInterestExpenseDebt
-3595 usd
CY2022 aitx Tax Effect Of Increase Decrease Interest Expense Debt
TaxEffectOfIncreaseDecreaseInterestExpenseDebt
-372214 usd
CY2023 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-18065977 usd
CY2022 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
-62544744 usd
CY2023 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
5091857082 shares
CY2022 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
4029658082 shares
CY2023 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.00
CY2022 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.02
CY2023 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
5091857082 shares
CY2022 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
4029658082 shares
CY2023 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.00
CY2022 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.02
CY2023 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
496942251 shares
CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
1261773222 shares
CY2023 aitx Convertible Preferred Stock Shares Issued Upon Conversion F Shares
ConvertiblePreferredStockSharesIssuedUponConversionFShares
20178158517 shares
CY2022 aitx Convertible Preferred Stock Shares Issued Upon Conversion F Shares
ConvertiblePreferredStockSharesIssuedUponConversionFShares
16336475742 shares
CY2023Q1 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
12651115 usd
CY2022Q1 us-gaap Deferred Tax Assets Net
DeferredTaxAssetsNet
8559915 usd
CY2023Q1 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
12651115 usd
CY2023 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-3803000 usd
CY2023 aitx State Income Tax Benefit Net Of Federal Benefit
StateIncomeTaxBenefitNetOfFederalBenefit
-859400 usd
CY2023 aitx Income Tax Reconciliation Nondeductible Expense Non Deductible Interest
IncomeTaxReconciliationNondeductibleExpenseNonDeductibleInterest
415800 usd
CY2023 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost
155400 usd
CY2023 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
4091200 usd
CY2022 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-13061500 usd
CY2022 aitx State Income Tax Benefit Net Of Federal Benefit
StateIncomeTaxBenefitNetOfFederalBenefit
-2954400 usd
CY2022 aitx Income Tax Reconciliation Nondeductible Expense Non Deductible Interest
IncomeTaxReconciliationNondeductibleExpenseNonDeductibleInterest
4027800 usd
CY2022 aitx Non Deductible Settlement Losses
NonDeductibleSettlementLosses
8515100 usd
CY2022 us-gaap Income Tax Reconciliation Nondeductible Expense Share Based Compensation Cost
IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost
169400 usd
CY2022 aitx Non Deductible Nonincludable Gains Changes In Fair Value Of Instruments
NonDeductibleNonincludableGainsChangesInFairValueOfInstruments
-95800 usd
CY2022 us-gaap Income Tax Reconciliation Nondeductible Expense Other
IncomeTaxReconciliationNondeductibleExpenseOther
600 usd
CY2022 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
3398800 usd
CY2023 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2023Q1 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
12651115 usd
CY2022Q1 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
8445915 usd
CY2022Q1 aitx Debt Discount
DebtDiscount
114000 usd
CY2022Q1 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
8559915 usd
CY2023Q1 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
44448800 usd
CY2022Q1 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
28200000 usd
CY2023 aitx Description Od Operating Loss Carryforwards Expiration Date
DescriptionOdOperatingLossCarryforwardsExpirationDate
2030

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