Focused Actions Reflect Sharpened Execution in Preparation of Next Fiscal Year
Artificial Intelligence Technology Solutions, a global leader in AI-driven security and productivity solutions, announced that the Company has implemented measurable and disciplined operating expense reductions year over year, reflecting a deliberate shift toward tighter execution, sharper focus, and improved operational control. These actions follow a comprehensive review of spending priorities and resource allocation and are intended to strengthen the Company’s cost structure as it prepares to finish its fiscal year on February 28, 2026.
Over the past nine months, AITX has taken intentional steps to streamline operations, refine its development priorities, and align spending more closely with near term execution goals. The Company evaluated legacy initiatives, internal workflows, and resource deployment, making targeted adjustments designed to reduce complexity while preserving momentum in core areas of focus. Management believes these disciplined actions reflect a more mature operating posture and reinforce a commitment to responsible financial management as the business continues to scale.
As part of these actions, the Company reduced its payroll expense trajectory from its peak calendar year 2025 month of approximately $760,000 to an expected approximately $630,000 per month starting March 1, 2026. This was driven by workforce realignment allowed by the finishing of select development initiatives and the delay of investment in other initiatives. Additional monthly operating expense reductions of approximately $50,000 were achieved through improved purchasing practices, lower assembly costs, and tighter vendor management. Taken together, these measures should positively impact the Company’s monthly cash flow gap while maintaining focus on core execution and revenue generating priorities.
As part of this refinement, the Company paused further research and development investment in its HERO and RADDOG mobile robotic initiatives. In parallel, development work related to ROAMEO™ transitioned from research and development into active production and deployment, reflecting readiness for broader market execution. Management views these decisions as disciplined reallocations of capital intended to concentrate effort on initiatives positioned to drive near term impact and operational scale.
“These changes reflect deliberate decisions we made to operate the Company with greater attention to reducing cash flow burn and aiding the drive to operational positive cash flow,” said Steve Reinharz, CEO/CTO and founder of AITX. “By tightening our cost structure and reallocating resources, we are beginning to see the dividends of responsible financial management. All of this work is being done with a clear objective in mind, positioning the Company to achieve operational cash flow positive performance around the May 2026 timeframe while building a more controlled and scalable business.”
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