2024 Q3 Form 10-Q Financial Statement

#000149315224027824 Filed on July 15, 2024

View on sec.gov

Income Statement

Concept 2024 Q3 2024 Q2 2023 Q2
Revenue $1.344M $1.183M $385.2K
YoY Change 247.91% 207.05% 0.01%
Cost Of Revenue $785.0K $295.6K $91.51K
YoY Change 781.84% 223.02% -68.84%
Gross Profit $559.2K $887.2K $293.7K
YoY Change 88.07% 202.08% 221.22%
Gross Profit Margin 41.6% 75.01% 76.24%
Selling, General & Admin $2.782M $2.183M
YoY Change 27.45% -11.63%
% of Gross Profit 313.59% 743.27%
Research & Development $677.4K $640.7K $891.8K
YoY Change -14.74% -28.15% -12.89%
% of Gross Profit 121.14% 72.22% 303.63%
Depreciation & Amortization $107.8K $297.5K $167.9K
YoY Change -43.59% 77.18% 78.67%
% of Gross Profit 19.27% 33.54% 57.18%
Operating Expenses $3.173M $3.720M $3.243M
YoY Change -5.07% 14.73% -9.63%
Operating Profit -$2.614M -$2.833M -$2.949M
YoY Change -14.17% -3.92% -15.66%
Interest Expense -$1.361M -$1.606M
YoY Change -15.26% -236.7%
% of Operating Profit
Other Income/Expense, Net -$1.316M -$1.361M -$1.606M
YoY Change -23.22% -15.26% 36.7%
Pretax Income -$4.194M -$4.555M
YoY Change -7.92% -2.49%
Income Tax
% Of Pretax Income
Net Earnings -$3.930M -$4.194M -$4.555M
YoY Change -17.43% -7.92% -2.49%
Net Earnings / Revenue -292.39% -354.61% -1182.52%
Basic Earnings Per Share $0.00 $0.00 $0.00
Diluted Earnings Per Share $0.00 $0.00 $0.00
COMMON SHARES
Basic Shares Outstanding 11.16B shares 10.32B shares 6.118B shares
Diluted Shares Outstanding 11.18B shares 9.882B shares 5.965B shares

Balance Sheet

Concept 2024 Q3 2024 Q2 2023 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $193.1K $287.2K
YoY Change -32.76% -68.84%
Cash & Equivalents $543.1K $193.1K $287.2K
Short-Term Investments
Other Short-Term Assets $454.2K $521.5K
YoY Change -12.91% 62.88%
Inventory $2.063M $1.830M $1.489M
Prepaid Expenses $552.7K $454.2K $521.5K
Receivables $650.3K $616.5K $391.8K
Other Receivables $0.00 $0.00
Total Short-Term Assets $4.090M $3.094M $2.690M
YoY Change -1.16% 15.03% -16.35%
LONG-TERM ASSETS
Property, Plant & Equipment $258.2K $278.9K $3.039M
YoY Change -21.43% -90.82% 1353.57%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $65.88K $71.24K
YoY Change -7.52% 235.4%
Other Assets
YoY Change
Total Long-Term Assets $5.125M $4.832M $3.138M
YoY Change 53.83% 53.99% 32.52%
TOTAL ASSETS
Total Short-Term Assets $4.090M $3.094M $2.690M
Total Long-Term Assets $5.125M $4.832M $3.138M
Total Assets $9.215M $7.926M $5.828M
YoY Change 23.37% 36.0% 4.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.012M $1.336M
YoY Change 50.57% 24.81%
Accrued Expenses $7.710M $4.986M
YoY Change 54.64% 1892.85%
Deferred Revenue $363.6K $62.23K $36.46K
YoY Change 947.82% 70.69%
Short-Term Debt $1.594K $1.594K $0.00
YoY Change 0.0% -100.0%
Long-Term Debt Due $23.46M $17.62M $16.50M
YoY Change 19.08% 6.77% 6912.91%
Total Short-Term Liabilities $37.08M $28.75M $24.51M
YoY Change 28.96% 17.3% 843.46%
LONG-TERM LIABILITIES
Long-Term Debt $14.96M $9.884M
YoY Change 51.36% -50.74%
Other Long-Term Liabilities $9.869M $5.513M
YoY Change 79.01% -20.35%
Total Long-Term Liabilities $24.83M $15.40M
YoY Change 61.26% -42.95%
TOTAL LIABILITIES
Total Short-Term Liabilities $37.08M $28.75M $24.51M
Total Long-Term Liabilities $24.83M $15.40M
Total Liabilities $54.69M $53.58M $39.91M
YoY Change 32.04% 34.26% 34.88%
SHAREHOLDERS EQUITY
Retained Earnings -$145.7M -$141.4M -$116.8M
YoY Change 19.84% 21.02% 18.21%
Common Stock $117.1K $103.2K $61.30K
YoY Change 66.29% 68.34% 25.89%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$45.47M -$45.91M -$34.08M
YoY Change
Total Liabilities & Shareholders Equity $9.215M $7.926M $5.828M
YoY Change 23.37% 36.0% 4.37%

Cashflow Statement

Concept 2024 Q3 2024 Q2 2023 Q2
OPERATING ACTIVITIES
Net Income -$3.930M -$4.194M -$4.555M
YoY Change -17.43% -7.92% -2.49%
Depreciation, Depletion And Amortization $107.8K $297.5K $167.9K
YoY Change -43.59% 77.18% 78.67%
Cash From Operating Activities -$3.046M -$2.991M
YoY Change 1.83% -17.41%
INVESTING ACTIVITIES
Capital Expenditures $19.13K $3.460K
YoY Change 452.95% -103.92%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$21.73K -$3.460K
YoY Change 527.98% -96.08%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $3.155M 2.342M
YoY Change 34.71% -14097.43%
NET CHANGE
Cash From Operating Activities -$3.046M -2.991M
Cash From Investing Activities -$21.73K -3.460K
Cash From Financing Activities $3.155M 2.342M
Net Change In Cash $87.18K -652.6K
YoY Change -113.36% -82.49%
FREE CASH FLOW
Cash From Operating Activities -$3.046M -$2.991M
Capital Expenditures $19.13K $3.460K
Free Cash Flow -$3.065M -$2.994M
YoY Change 2.35% -15.25%

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CY2024Q2 us-gaap Stock Issued During Period Value Stock Dividend
StockIssuedDuringPeriodValueStockDividend
2568 usd
CY2024Q2 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
83323 usd
CY2024Q2 us-gaap Net Income Loss
NetIncomeLoss
-4194359 usd
CY2024Q2 us-gaap Stockholders Equity
StockholdersEquity
-45912103 usd
CY2024Q2 us-gaap Stockholders Equity
StockholdersEquity
-45912103 usd
CY2024Q2 us-gaap Net Income Loss
NetIncomeLoss
-4194359 usd
CY2023Q2 us-gaap Net Income Loss
NetIncomeLoss
-4555193 usd
CY2024Q2 us-gaap Depreciation And Amortization
DepreciationAndAmortization
297549 usd
CY2023Q2 us-gaap Depreciation And Amortization
DepreciationAndAmortization
167942 usd
CY2024Q2 AITX Allowance For Loan And Leases Loss Recovery Of Bad Debts
AllowanceForLoanAndLeasesLossRecoveryOfBadDebts
13000 usd
CY2023Q2 AITX Allowance For Loan And Leases Loss Recovery Of Bad Debts
AllowanceForLoanAndLeasesLossRecoveryOfBadDebts
16000 usd
CY2024Q2 AITX Inventory Provision
InventoryProvision
210000 usd
CY2024Q2 AITX Reduction Of Right Of Use Asset
ReductionOfRightOfUseAsset
31425 usd
CY2023Q2 AITX Reduction Of Right Of Use Asset
ReductionOfRightOfUseAsset
28767 usd
CY2024Q2 AITX Accretion Of Lease Liability
AccretionOfLeaseLiability
31065 usd
CY2023Q2 AITX Accretion Of Lease Liability
AccretionOfLeaseLiability
33775 usd
CY2024Q2 us-gaap Share Based Compensation
ShareBasedCompensation
83323 usd
CY2023Q2 us-gaap Share Based Compensation
ShareBasedCompensation
115721 usd
CY2024Q2 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
27625 usd
CY2023Q2 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
557219 usd
CY2024Q2 AITX Increase In Related Party Accrued Payroll And Interest
IncreaseInRelatedPartyAccruedPayrollAndInterest
17575 usd
CY2023Q2 AITX Increase In Related Party Accrued Payroll And Interest
IncreaseInRelatedPartyAccruedPayrollAndInterest
36740 usd
CY2024Q2 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
-126620 usd
CY2023Q2 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
142799 usd
CY2024Q2 us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
-167562 usd
CY2023Q2 us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
-74809 usd
CY2024Q2 AITX Robot Parts Inventory
RobotPartsInventory
1070087 usd
CY2023Q2 AITX Robot Parts Inventory
RobotPartsInventory
324652 usd
CY2024Q2 AITX Increase Decrease In Accounts Payables And Accrued Liabilities
IncreaseDecreaseInAccountsPayablesAndAccruedLiabilities
-21083 usd
CY2023Q2 AITX Increase Decrease In Accounts Payables And Accrued Liabilities
IncreaseDecreaseInAccountsPayablesAndAccruedLiabilities
-7354 usd
CY2024Q2 AITX Increase Decrease In Customer Discounts
IncreaseDecreaseInCustomerDiscounts
-11469 usd
CY2023Q2 AITX Increase Decrease In Customer Discounts
IncreaseDecreaseInCustomerDiscounts
26560 usd
CY2024Q2 us-gaap Increase Decrease In Operating Liabilities
IncreaseDecreaseInOperatingLiabilities
-58715 usd
CY2023Q2 us-gaap Increase Decrease In Operating Liabilities
IncreaseDecreaseInOperatingLiabilities
-62542 usd
CY2024Q2 AITX Increase Decrease In Current Portion Of Deferred Variable Payment Obligation
IncreaseDecreaseInCurrentPortionOfDeferredVariablePaymentObligation
192323 usd
CY2023Q2 AITX Increase Decrease In Current Portion Of Deferred Variable Payment Obligation
IncreaseDecreaseInCurrentPortionOfDeferredVariablePaymentObligation
62634 usd
CY2024Q2 AITX Increase Decrease In Interest Payable
IncreaseDecreaseInInterestPayable
1111815 usd
CY2023Q2 AITX Increase Decrease In Interest Payable
IncreaseDecreaseInInterestPayable
981370 usd
CY2024Q2 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-3045831 usd
CY2023Q2 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-2991003 usd
CY2024Q2 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
19132 usd
CY2023Q2 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
3463 usd
CY2024Q2 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
2596 usd
CY2024Q2 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-21728 usd
CY2023Q2 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-3463 usd
CY2024Q2 AITX Share Proceeds Net Of Issuance Costs
ShareProceedsNetOfIssuanceCosts
2682592 usd
CY2023Q2 AITX Share Proceeds Net Of Issuance Costs
ShareProceedsNetOfIssuanceCosts
1318909 usd
CY2024Q2 us-gaap Proceeds From Issuance Of Preferred Stock And Preference Stock
ProceedsFromIssuanceOfPreferredStockAndPreferenceStock
278000 usd
CY2024Q2 AITX Redemption Of Series B Shares
RedemptionOfSeriesBShares
128856 usd
CY2024Q2 us-gaap Proceeds From Bank Debt
ProceedsFromBankDebt
350000 usd
CY2023Q2 us-gaap Proceeds From Bank Debt
ProceedsFromBankDebt
1050000 usd
CY2024Q2 us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
27000 usd
CY2023Q2 us-gaap Repayments Of Bank Debt
RepaymentsOfBankDebt
27000 usd
CY2024Q2 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
3154736 usd
CY2023Q2 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
2341909 usd
CY2024Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
87177 usd
CY2023Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-652557 usd
CY2024Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
105926 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
939759 usd
CY2024Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
193103 usd
CY2023Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
287202 usd
CY2024Q2 us-gaap Interest Paid Net
InterestPaidNet
25015 usd
CY2023Q2 us-gaap Interest Paid Net
InterestPaidNet
1375 usd
CY2024Q2 AITX Transfer From Device Parts Inventory To Revenue
TransferFromDevicePartsInventoryToRevenue
-1161219 usd
CY2023Q2 AITX Transfer From Device Parts Inventory To Revenue
TransferFromDevicePartsInventoryToRevenue
-473122 usd
CY2024Q2 AITX Cumulative Effect Adjustment Rfvdiscount Non Cash
CumulativeEffectAdjustmentRfvdiscountNonCash
-4175535 usd
CY2024Q2 AITX Series B Preferred Shares Issued As Dividend
SeriesBPreferredSharesIssuedAsDividend
2568 usd
CY2023Q2 AITX Discount Added To Face Value Of Loans
DiscountAddedToFaceValueOfLoans
-150000 usd
CY2023Q2 AITX Series F Warrants Issued Along With Debt
SeriesFWarrantsIssuedAlongWithDebt
947447 usd
CY2024Q2 us-gaap Nature Of Operations
NatureOfOperations
<p id="xdx_80B_eus-gaap--NatureOfOperations_zt6B9ng0alje" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>1. <span id="xdx_826_z08F4MgVaDa3">GENERAL INFORMATION</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Robotic Assistance Devices, LLC (“RAD”), was incorporated in the State of Nevada on July 26, 2016 as a Limited Liability Company. On July 25, 2017, Robotic Assistance Devices LLC converted to a C Corporation, Robotic Assistance Devices, Inc., through the issuance of <span id="xdx_907_eus-gaap--CommonStockSharesIssued_iI_c20170725__us-gaap--BusinessAcquisitionAxis__custom--RoboticAssistanceDevicesLLCMember_zx2qHyxxfif3" title="Common stock, issued">10,000</span> common shares to its sole shareholder.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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_90B_eus-gaap--BusinessAcquisitionEquityInterestsIssuedOrIssuableNumberOfSharesIssued_c20170827__20170828__us-gaap--BusinessAcquisitionAxis__custom--RoboticAssistanceDevicesLLCMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesEPreferredStockMember_z0RSFKYB3B34" title="Number of shares isuued under acquisition">3,350,000</span> shares of AITX Series E Preferred Stock and <span id="xdx_907_eus-gaap--BusinessAcquisitionEquityInterestsIssuedOrIssuableNumberOfSharesIssued_c20170827__20170828__us-gaap--BusinessAcquisitionAxis__custom--RoboticAssistanceDevicesLLCMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesFPreferredStockMember_z7he2JOFlTfe" 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 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, and 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2024Q2 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-3045831 usd
CY2024Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-141361177 usd
CY2024Q2 AITX Working Capital
WorkingCapital
-25655546 usd
CY2024Q2 us-gaap Common Stocks Including Additional Paid In Capital Net Of Discount
CommonStocksIncludingAdditionalPaidInCapitalNetOfDiscount
16000000 usd
CY2024Q2 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_844_eus-gaap--UseOfEstimates_zoUEQCMJtLE5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_867_z4W3fJEIuYif">Use of Estimates</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2024Q2 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p id="xdx_84C_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zUHHrfVsUMt6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_862_zHgCUfJQnq51">Reclassifications</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain amounts in the Company’s consolidated financial statements for prior periods have been reclassified to conform to the current period presentation. These reclassifications have not changed the results of operations of prior periods.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i> </i></b></span></p>
CY2024Q2 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p id="xdx_844_eus-gaap--ConcentrationRiskCreditRisk_zDQnJZD6SOz6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86B_zgB617AgHmdc">Concentrations</span></i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Loans payable </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">At May 31, 2024 there were $<span id="xdx_901_eus-gaap--LoansPayable_iI_pp0p0_c20240531_zDSVbr5hpeLd" title="Loans payable">33,119,346</span> of loans payable, $<span id="xdx_908_eus-gaap--LoanPortfolioExpense_pp0p0_c20240301__20240531__srt--TitleOfIndividualAxis__srt--ControllerMember_zHLGiekzqnL6" title="Loans additions">28,890,506</span> or <span id="xdx_90B_eus-gaap--LoansReceivableBasisSpreadOnVariableRate_iI_pid_dp_c20240531__srt--TitleOfIndividualAxis__srt--ControllerMember_zRE2akmjs7cj" title="Loans percentage">87%</span> of these loans to companies controlled by one individual. At February 29, 2024 there were $<span id="xdx_90D_eus-gaap--LoansPayable_iI_pp0p0_c20240229_zOfnJKm7LUT3" title="Loans payable">32,796,345</span> of loans payable, $<span id="xdx_907_eus-gaap--LoanPortfolioExpense_pp0p0_c20230301__20240229__srt--TitleOfIndividualAxis__srt--ControllerMember_z0RLjAZI0I5e" title="Loans additions">28,540,506</span> or <span id="xdx_90E_eus-gaap--LoansReceivableBasisSpreadOnVariableRate_iI_dp_uPure_c20240229__srt--TitleOfIndividualAxis__srt--ControllerMember_zPMxvs0hbQfi" title="Loans percentage">87%</span> of these loans to companies controlled by the same individual.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2024Q2 us-gaap Loans Payable
LoansPayable
33119346 usd
CY2024Q1 us-gaap Loans Payable
LoansPayable
32796345 usd
CY2024Q2 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
81000 usd
CY2024Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
68000 usd
CY2024Q2 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
1169000 usd
CY2024Q1 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
959000 usd
CY2024Q2 us-gaap Intermediate Life Plants Useful Life
IntermediateLifePlantsUsefulLife
P48M
CY2024Q2 us-gaap Deferred Tax Liabilities Deferred Expense Capitalized Research And Development Costs
DeferredTaxLiabilitiesDeferredExpenseCapitalizedResearchAndDevelopmentCosts
0 usd
CY2024Q1 us-gaap Deferred Tax Liabilities Deferred Expense Capitalized Research And Development Costs
DeferredTaxLiabilitiesDeferredExpenseCapitalizedResearchAndDevelopmentCosts
0 usd
CY2024Q2 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%
CY2024Q2 AITX Incentives Compensation Plan Payable Revaluation Of Equity
IncentivesCompensationPlanPayableRevaluationOfEquity
2500000 usd
CY2024Q1 AITX Incentives Compensation Plan Payable Revaluation Of Equity
IncentivesCompensationPlanPayableRevaluationOfEquity
2500000 usd
CY2024Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
4175535 usd
CY2024Q2 AITX Revenue From Device Rental Activities
RevenueFromDeviceRentalActivities
980536 usd
CY2023Q2 AITX Revenue From Device Rental Activities
RevenueFromDeviceRentalActivities
238149 usd
CY2024Q2 AITX Revenue From Direct Sales Of Goods And Services
RevenueFromDirectSalesOfGoodsAndServices
202264 usd
CY2023Q2 AITX Revenue From Direct Sales Of Goods And Services
RevenueFromDirectSalesOfGoodsAndServices
147059 usd
CY2024Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
1182800 usd
CY2023Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
385208 usd
CY2024Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P12M
CY2024Q2 AITX Operating Lease Assets
OperatingLeaseAssets
1105225 usd
CY2024Q1 AITX Operating Lease Assets
OperatingLeaseAssets
1139188 usd
CY2024Q2 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
231141 usd
CY2024Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
237653 usd
CY2024Q2 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
864447 usd
CY2024Q1 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
889360 usd
CY2024Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
1095588 usd
CY2024Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
1127013 usd
CY2024Q2 us-gaap Payments For Rent
PaymentsForRent
62013 usd
CY2023Q2 us-gaap Payments For Rent
PaymentsForRent
62542 usd
CY2024Q2 us-gaap Property Plant And Equipment Other
PropertyPlantAndEquipmentOther
4561021 usd
CY2024Q1 us-gaap Property Plant And Equipment Other
PropertyPlantAndEquipmentOther
3432846 usd
CY2024Q2 us-gaap Property Plant And Equipment Other Accumulated Depreciation
PropertyPlantAndEquipmentOtherAccumulatedDepreciation
1209072 usd
CY2024Q1 us-gaap Property Plant And Equipment Other Accumulated Depreciation
PropertyPlantAndEquipmentOtherAccumulatedDepreciation
952844 usd
CY2024Q2 us-gaap Property Plant And Equipment Other Net
PropertyPlantAndEquipmentOtherNet
3351949 usd
CY2024Q1 us-gaap Property Plant And Equipment Other Net
PropertyPlantAndEquipmentOtherNet
2480002 usd
CY2024Q2 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
670130 usd
CY2024Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
617953 usd
CY2024Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
391199 usd
CY2024Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
349878 usd
CY2024Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
278931 usd
CY2024Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
268075 usd
CY2024Q2 us-gaap Other Long Term Debt
OtherLongTermDebt
1096700 usd
CY2024Q2 us-gaap Debt Default Longterm Debt Amount
DebtDefaultLongtermDebtAmount
604811 usd
CY2024Q1 us-gaap Other Long Term Debt
OtherLongTermDebt
904377 usd
CY2024Q1 us-gaap Debt Default Longterm Debt Amount
DebtDefaultLongtermDebtAmount
542176 usd
CY2021Q1 us-gaap Equity Method Investment Aggregate Cost
EquityMethodInvestmentAggregateCost
1925000 usd
CY2024Q2 AITX Deferred Payment Obligation Receive
DeferredPaymentObligationReceive
0 usd
CY2024 AITX Deferred Payment Obligation Receive
DeferredPaymentObligationReceive
0 usd
CY2024Q2 us-gaap Interest And Debt Expense
InterestAndDebtExpense
36974 usd
CY2024 us-gaap Interest And Debt Expense
InterestAndDebtExpense
32468 usd
CY2024Q2 us-gaap Professional Fees
ProfessionalFees
631584 usd
CY2023Q2 us-gaap Professional Fees
ProfessionalFees
882015 usd
CY2022Q1 us-gaap Long Term Debt Fair Value
LongTermDebtFairValue
0 usd
CY2021Q1 us-gaap Long Term Debt Fair Value
LongTermDebtFairValue
0 usd
CY2024Q2 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
33119346 usd
CY2024Q2 AITX Long Term Notes Payable Non Current
LongTermNotesPayableNonCurrent
-17619985 usd
CY2024Q2 AITX Discount On Long Term Notes Payable Non Current
DiscountOnLongTermNotesPayableNonCurrent
-538143 usd
CY2024Q2 us-gaap Long Term Notes Payable
LongTermNotesPayable
14961218 usd
CY2024Q2 us-gaap Long Term Debt Current
LongTermDebtCurrent
17619985 usd
CY2024Q2 AITX Discount On Long Term Notes Payable Current
DiscountOnLongTermNotesPayableCurrent
-65629 usd
CY2024Q2 us-gaap Notes Payable Current
NotesPayableCurrent
17554356 usd
CY2024Q2 us-gaap Dividends Preferred Stock Stock
DividendsPreferredStockStock
2568 usd
CY2024Q2 us-gaap Stock Redeemed Or Called During Period Shares
StockRedeemedOrCalledDuringPeriodShares
107.38 shares
CY2024Q2 us-gaap Stock Redeemed Or Called During Period Value
StockRedeemedOrCalledDuringPeriodValue
128856 usd
CY2024Q2 AITX Deemed Dividends
DeemedDividends
28856 usd
CY2024Q2 AITX Rent Expense And Operating Lease Cost
RentExpenseAndOperatingLeaseCost
62013 usd
CY2023Q2 AITX Rent Expense And Operating Lease Cost
RentExpenseAndOperatingLeaseCost
62542 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
231141 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
231141 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
225348 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
225348 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
219418 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
219418 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
207557 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
207557 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
207558 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
207558 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
397820 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
397820 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
1488842 usd
CY2024Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
393254 usd
CY2024Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
1095588 usd
CY2024Q2 us-gaap Net Income Loss
NetIncomeLoss
-4194359 usd
CY2023Q2 us-gaap Net Income Loss
NetIncomeLoss
-4555193 usd
CY2024Q2 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-4194359 usd
CY2023Q2 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-4555193 usd
CY2024Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
9882118105 shares
CY2023Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
5964709322 shares
CY2024Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.00
CY2023Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.00
CY2024Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
9882118105 shares
CY2023Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
5964709322 shares
CY2024Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.00
CY2023Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.00
CY2024Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
36146449661 shares
CY2023Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
396917451 shares

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0001493152-24-027824.txt Edgar Link pending
0001493152-24-027824-xbrl.zip Edgar Link pending
aitx-20240531.xsd Edgar Link pending
ex21-1.htm Edgar Link pending
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