AITX Posts $6.84 Million Fiscal Q2 2027 Loss as Revenue Rises 5%

Artificial Intelligence Technology Solutions Inc. posted a $6.84 million net loss in fiscal Q2 2027 as revenue grew 5% year over year, while quarter-end cash totaled $220,275. The company’s working-capital deficit was $55.89 million as of Aug. 31, 2026.

For the three months ended Aug. 31, revenue was $1,985,604, up from $1,888,749 a year earlier and 8% from the preceding quarter. The results were unaudited. AITX develops artificial intelligence and robotic systems for operational, security and monitoring needs.

Revenue from customers other than AITX’s largest account rose 61% to $1,627,444. The largest customer contributed $358,160, or 18% of quarterly revenue, compared with 46% a year earlier. Device rentals generated $1,765,293, or 89% of revenue, while direct sales accounted for $220,311.

Gross profit fell to $1,063,301 from $1,344,865. It included a $270,987 noncash inventory write-down tied to a discontinued residential camera product line. Excluding that charge, gross profit was $1,334,288, or 67% of revenue. The operating loss was $2,680,396, compared with $2,309,159 a year earlier.

Other expense totaled $4,158,077, versus $3,072,223 in other income in the year-earlier quarter. The latest quarter included $2,477,037 in interest expense and a $1,495,130 loss on a derivative liability.

“Q2 is the quarter the base business showed up,” said Steve Reinharz, AITX’s CEO, CTO and founder.

As of Aug. 31, current assets were $3,012,097 against current liabilities of $58,906,967, leaving a working-capital deficit of $55,894,870. Net cash used in operating activities was $4,820,842 for the six months ended Aug. 31. Substantial doubt remains over AITX’s ability to continue as a going concern for the 12 months after the financial statements were issued, and additional capital is needed for the company to remain in business.

Monthly operating cash breakeven is targeted for January 2027, with all-in cash breakeven targeted for the second calendar quarter of 2027. The first measure compares monthly revenue with operating cash expenses and excludes debt service and device builds; the second includes both. Meeting either target alone would not establish GAAP operating cash flow or profitability, ensure sufficient liquidity or eliminate the need for outside financing.