AITX CEO Defers Annual Salary Through February as January Cash Goal Holds

Artificial Intelligence Technology Solutions, Inc. (AITX) is deferring founder, CEO and CTO Steve Reinharz’s $420,000 annual base salary through Feb. 28, 2027, as the company pursues a January cash milestone.

The change took effect with the Oct. 15 payroll, leaving about $35,000 a month in base pay unpaid in cash. Reinharz committed to taking neither salary nor a bonus through that date. By Nov. 3, about $51,000 in salary had already been deferred during the fiscal year. The deferred salary remains a company obligation.

Reinharz had also paid more than $100,000 in company expenses that had not been reimbursed. AITX may reimburse some or all of those expenses before its fiscal year ends.

January’s milestone measures whether monthly recognized revenue exceeds operating cash expenses paid. It excludes debt service and inventory purchases for device builds. The target is an internal management measure, not a GAAP measure or a guarantee. AITX had already set the deadline in its Oct. 20 update on its cash target; the Nov. 3 announcement introduced the salary deferral. The company separately projects all-in cash breakeven in the second calendar quarter of 2027.

Reaching the January goal assumes monthly revenue growth of about 2.7%, faster than AITX’s growth over the prior 12 months. Recognized revenue may differ from cash collected. AITX also aims to reduce monthly cash spending by about $345,000 by January and by more than $350,000 starting in February, compared with its August 2026 run rate. The plan combines salary deferrals and workforce reductions with lower marketing, promotion, cloud and other operating costs.

Revenue for AITX’s fiscal second quarter ended Aug. 31, 2026, was $1,985,604, up 5% year over year and 8% from the prior quarter. Revenue from customers other than its largest customer increased 61% year over year. As of Aug. 31, the company had $220,275 in cash and a $55,894,870 working capital deficit. It used $4,820,842 in net cash for operating activities during the six months ended that date. Its ability to remain a going concern over the 12 months after the financial statements were issued was in substantial doubt. The deferral is scheduled to continue through Feb. 28, 2027.