Artificial Intelligence Technology Solutions Inc 8-K, filed Oct 20, 2026
Artificial Intelligence Technology Solutions Inc. (AITX)
About this 8-K
Artificial Intelligence Technology Solutions Inc filed this 8-K on October 20, 2026.
AITX projects monthly operating cash breakeven in January 2027 and all-in cash breakeven in the second calendar quarter of 2027, assuming about 2.7% monthly revenue growth and $345,000 in January savings. Resources are shifting to SARA, RAIA and ROAMEO. AI summary
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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When used in this Current Report on Form 8-K, unless otherwise indicated, the terms the "Company," "our," or "we" refer to Artificial Intelligence Technology Solutions, Inc. and its subsidiaries.
Item 7.01. Regulation FD Disclosure.
On October 20, 2026, Artificial Intelligence Technology Solutions, Inc. (the "Company") issued a press release titled "AITX Projects Monthly Operating Cash Breakeven in January 2027 Ahead of RAIA, SARA and ROAMEO Revenue Ramp," announcing management's projections regarding monthly operating cash breakeven beginning in January 2027 and all in cash breakeven during the second calendar quarter of 2027. The press release also describes the Company's expanded cash savings program, the assumptions underlying those projections, an update to its previously announced December 2026 operational cash flow objective, and the concentration of development resources on SARA, RAIA and ROAMEO. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated into this Item 7.01 by reference.
The information set forth in this Item 7.01, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The furnishing of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed an admission as to the materiality of any information contained herein or therein.
Important Information Regarding Projections and Management Measures
The projections described in Exhibit 99.1 are management estimates based on current assumptions. They are not results already achieved, guarantees of future performance or projections of profitability under generally accepted accounting principles ("GAAP").
As described in Exhibit 99.1, monthly operating cash breakeven compares projected monthly revenue with projected monthly cash operating expenditures, excluding debt service and device build expenditures. The all in cash breakeven projection additionally includes scheduled debt service and anticipated device build expenditures. These management measures differ from GAAP net income and net cash provided by or used in operating activities and should not be considered substitutes for those measures. Revenue recognized in a month does not necessarily equal cash collected in that month. Collection timing and other working capital requirements may therefore result in a need for financing even when projected revenue exceeds the expenditures included in these comparisons. There can be no assurance that such financing will be available on acceptable terms or at all.
The projections assume approximately 2.7% monthly revenue growth, implementation of anticipated cash spend reductions, and the product contributions described in Exhibit 99.1. The assumed revenue growth rate exceeds the Company's growth over the preceding twelve months. Recent sequential growth does not establish that this rate will continue.
The expanded cash savings program replaces the previously announced $200,000 monthly target. Projected cash spend reductions are measured against the Company's August 2026 monthly expense run rate and are expected to reach approximately $345,000 per month in January 2027 and exceed $350,000 per month beginning in February 2027. These amounts include both expense reductions and changes in payment timing. Salary deferrals and deferred compensation remain obligations of the Company and do not constitute permanent expense reductions or forgiveness of amounts owed. Payment of those obligations will require cash or other settlement and may affect the timing or continuation of either projected breakeven milestone.
Achievement of either milestone would not, by itself, establish GAAP profitability, eliminate accumulated liabilities or assure that the Company can fund all future requirements without additional financing. The Company continues to depend on outside financing, which may be dilutive. Reference is made to the sections of Exhibit 99.1 captioned "Important Information Regarding Projections and Management Measures" and "Certain Information Regarding the Company's Financial Condition."
Cautionary Note Regarding Forward-Looking Statements
This Current Report on Form 8-K and Exhibit 99.1 contain forward looking statements, including statements regarding projected monthly operating cash breakeven beginning in January 2027 and its continuation thereafter; projected all in cash breakeven during the second calendar quarter of 2027; anticipated monthly revenue growth; the amount, timing and continuation of projected cash spend reductions; implementation and effects of workforce reductions, vendor and operating reductions, salary deferrals and compensation payment changes; anticipated product launches, deployments and revenue contributions from SARA, ROAMEO and RAIA; the effects of concentrating resources on those platforms and pausing or discontinuing other development activities and applications; potential reductions in reliance on outside capital; potential access to inventory, equipment or other financing without equity dilution; and future progress updates.
These statements are based on management's current expectations and assumptions and are subject to significant risks and uncertainties. Actual results could differ. Factors that could cause actual results to differ include, among others: revenue growth below the assumed rate; customer attrition, cancellations or deployment delays; delays in billing or collections; product launch or commercialization delays; changes in product mix or margins; inventory, production and device build cash requirements exceeding estimates; anticipated cash spend reductions being delayed, smaller than expected, not achieved or not sustained; separation costs, vendor obligations or other expenditures offsetting anticipated reductions; deferred compensation and other obligations becoming payable; reductions in staffing, development or outside services adversely affecting sales, operations, customer deployments, service levels or retention; and debt service, financing costs or other cash requirements exceeding projections.
The Company may not achieve either projected milestone within the stated period, or at all, or sustain it once achieved. Financing without equity dilution may not be available. Other material risks include the Company's history of losses, negative working capital and stockholders' deficit; doubt regarding its ability to continue as a going concern; its continued dependence on external financing, including variable priced equity financing that results in dilution to existing stockholders; and the other risks described in the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 2026, as amended, and subsequent filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on forward looking statements, which speak only as of the date of this Current Report. Except as required by law, the Company undertakes no obligation to update or revise any forward looking statement. This Current Report does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company. The Company does not qualify for the safe harbor for forward looking statements provided by the Private Securities Litigation Reform Act of 1995.
Certain Information Regarding the Company's Financial Condition
The information in this Current Report on Form 8-K and Exhibit 99.1 should be read together with the following. The Company has not been profitable in any fiscal year of its operating history and has reported significant operating losses, negative working capital and a stockholders' deficit. Its independent auditor's report includes an explanatory paragraph expressing substantial doubt regarding the Company's ability to continue as a going concern. The Company's cash on hand is insufficient to fund operations for an extended period without additional financing. Such financing may not be available on acceptable terms or at all and may result in substantial dilution to existing stockholders.
The projections described in this Current Report and Exhibit 99.1 do not eliminate these conditions or the Company's existing obligations. Investors should review the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 2026, as amended, and subsequent filings with the Securities and Exchange Commission, available at www.sec.gov, for additional information regarding its financial condition, financing arrangements and risks.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press release of Artificial Intelligence Technology Solutions, Inc. dated October 20, 2026 (furnished, not filed) | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS, INC. | ||
| Date: October 20, 2026 | By: | /s/ Steve Reinharz |
| Name: | Steve Reinharz | |
| Title: | Chief Executive Officer | |
Exhibit 99.1
AITX Projects Monthly Operating Cash Breakeven in January 2027 Ahead of
RAIA, SARA and ROAMEO Revenue Ramp
Expanded Cost and Cash Savings Program Exceeds $350,000 Per Month by February 2027
as the Company Narrows Its New Solution Focus to Three Core Platforms
Detroit, Michigan, October 20, 2026 -- Artificial Intelligence Technology Solutions, Inc. (the "Company") (OTCID:AITX), a developer and operator of AI-driven security and productivity solutions for enterprise clients, today announced that it expects its monthly revenue to exceed its monthly operating costs, excluding debt service and device build expenditures, beginning in January 2027. Reaching that milestone could substantially reduce the Company's reliance on outside capital to fund day-to-day operations.
The Company's projection rests on its expanded cash spend reductions and its recent revenue growth trend. It includes only modest contributions from SARA™ and ROAMEO™ and no revenue from RAIA™, the three platforms AITX expects to be the major drivers of its revenue growth in 2027.
Two Milestones
• January 2027: monthly operating cash breakeven. Revenue is expected to exceed monthly operating costs, excluding debt service and device builds, and to stay above them in the months that follow.
• Second calendar quarter of 2027: all-in cash breakeven. Revenue is expected to cover all monthly cash requirements, including scheduled debt service and the cost of building new devices, including ROAMEO units added to the fleet. Timing depends heavily on inventory cash needs.
Until the second milestone, the Company expects to keep using outside financing for debt service and device builds. The Company believes that reaching monthly operating cash breakeven may improve its access to non-dilutive financing, such as inventory or equipment financing.
What Gets Us There
The main driver is the Company's expanded cash savings program, which expands and replaces the $200,000 monthly target announced on August 3, 2026. Measured against the Company's August 2026 monthly expense run-rate, cash spend reductions are expected to reach about $345,000 per month in January 2027 and to exceed $350,000 per month from February 2027.
The program includes a reduction in workforce, vendor and operating cuts, salary deferrals by most team members, and changes to the timing of certain compensation payments. Deferred salary is accrued and remains payable, so that part of the savings is a shift in the timing of cash rather than a permanent cost reduction.
The Assumptions
• Revenue growth of about 2.7% per month. That is the pace implied by the Company's roughly 8% sequential revenue growth in its fiscal quarter ended August 31, 2026, as reported in its Form 10-Q. This net growth rate, after customer attrition, exceeds the Company's growth over the past twelve months, and the Company expects it to continue.
• Operating costs start from the Company's actual August and September 2026 cash spending, less the savings program. The Company's cash operating expenses in August and September 2026 were already below its average for the prior 12 months.
• Product mix. The January projection includes modest contributions from ROAMEO units in service and from SARA, and no RAIA revenue. The all-in projection adds a modest RAIA contribution beginning in spring 2027.
Update to the December Target
In August, the Company set a goal of positive operational cash flow in December 2026. The expanded program cuts deeper but phases in through year-end, including one-time separation costs, so the Company now expects to reach monthly operating cash breakeven one month later, in January 2027.
Focus to Scale
AITX is putting its engineering, sales and support behind three platforms: SARA (including SARA Alive, SARA Assess, SARA Agent and SARA Verified), RAIA and ROAMEO. RAIA is expected to launch in the coming weeks.
Development of the 4.5 versions of AVA™, ROSA™ and RIO™, and of SARA Health and Fix, has been paused. The Company has also discontinued its standalone SARA Connect mobile apps for iOS and Android.
"January is when we expect our lines to cross," said Steve Reinharz, CEO/CTO and founder of AITX and its subsidiaries. "After nearly a decade of building, our revenue is on track to cover the cost of running this company, and it gets there before SARA, ROAMEO and RAIA hit full stride. Those three platforms are where we win, and every dollar and every hour we have is now behind them. These were hard decisions that affected people who helped build RAD, and we don't take that lightly. We made them so AITX can grow on its own revenue instead of depending on the markets to fund day-to-day operations."
AITX intends to report its progress against these milestones in future updates.
About Artificial Intelligence Technology Solutions, Inc. (AITX)
AITX is a developer and provider of artificial intelligence-based solutions that empower organizations to gain new insight, solve complex challenges and drive operational efficiency. Through its family of companies, including PURSUON, Inc. (formerly RAD-M), Robotic Assistance Devices, Inc. (RAD-I), Robotic Assistance Devices Residential (RAD-R), Robotic Assistance Devices Group (RAD-G), and Robotic Assistance Devices Lanka (Private) Limited (RAD Lanka), AITX develops and delivers a broad range of AI-driven technologies and services designed to transform security, automation, and operational workflows across multiple industries.
Through its primary subsidiary, RAD-I, AITX is redefining the nearly $50 billion U.S. security and guarding services industry1 with its AI-driven Solutions-as-a-Service model. RAD solutions are specifically designed to deliver cost savings of between 35% and 80% compared to traditional manned security and monitoring, utilizing a suite of stationary and mobile autonomous systems that complement, and in many cases replace, human personnel in environments better suited for machines. All RAD technologies, AI-based analytics and software platforms are developed in-house.
All of RAD's solutions are designed to integrate with leading industry platforms and workflows, including an integration with Immix®, a provider of central station and remote monitoring software.
The Company's operations and internal controls have been validated through successful completion of its SOC 2 Type 2 audit, reinforcing its credibility with enterprise and government clients that require rigorous data protection and compliance standards.
AITX is led by Steve Reinharz, CEO/CTO and founder of the Company and all subsidiaries, who brings decades of experience in the security services industry. The broader AITX leadership and its subsidiaries draw on deep expertise across security, law enforcement, and robotics innovation, supporting the Company's ability to deliver practical and scalable solutions.
The Company's solutions are deployed across a wide range of industries including enterprises, government, transportation, critical infrastructure, education, and healthcare.
To learn more, visit www.aitx.ai, www.radsecurity.com, www.pursuon.com, www.radgroup.ai, www.saramonitoring.ai, www.radlightmyway.com, and www.stevereinharz.com, or follow Steve Reinharz on X @SteveReinharz. Information contained on, or accessible through, the foregoing websites and social media accounts is not incorporated by reference into, and does not form a part of, this press release or any of the Company's filings with the Securities and Exchange Commission.
Important Information Regarding Projections and Management Measures
The January 2027 monthly operating cash breakeven projection and the second calendar quarter 2027 all in cash breakeven projection are management estimates based on current assumptions. They are not results already achieved, guarantees of future performance or projections of profitability under generally accepted accounting principles ("GAAP").
As used in this release, monthly operating cash breakeven compares projected monthly revenue with projected monthly cash operating expenditures, excluding debt service and device build expenditures. The all in cash breakeven projection additionally includes scheduled debt service and anticipated device build expenditures. These management measures differ from GAAP net income and net cash provided by or used in operating activities and should not be considered substitutes for those measures. Revenue recognized in a month does not necessarily equal cash collected in that month. Collection timing and other working capital requirements may therefore result in a need for financing even when projected revenue exceeds the expenditures included in these comparisons. There can be no assurance that such financing will be available on acceptable terms or at all.
The projections assume approximately 2.7% monthly revenue growth, implementation of the anticipated cash spend reductions, and the product contributions described in this release. The assumed revenue growth rate exceeds the Company's growth over the preceding twelve months. Recent sequential growth does not establish that this rate will continue.
Projected cash spend reductions are measured against the Company's August 2026 monthly expense run rate and include both expense reductions and changes in payment timing. Salary deferrals and deferred compensation remain obligations of the Company and do not constitute permanent expense reductions or forgiveness of amounts owed. Payment of those obligations will require cash or other settlement and may affect the timing or continuation of either projected breakeven milestone.
Achievement of either milestone would not, by itself, establish GAAP profitability, eliminate accumulated liabilities or assure that the Company can fund all future requirements without additional financing. The Company continues to depend on outside financing, which may be dilutive.
Cautionary Disclosure About Forward Looking Statements
This press release contains forward looking statements, including statements regarding the Company's projected monthly operating cash breakeven beginning in January 2027 and its continuation thereafter; projected all in cash breakeven during the second calendar quarter of 2027; anticipated monthly revenue growth; projected cash spend reductions of approximately $345,000 in January 2027 and more than $350,000 beginning in February 2027; the implementation and effects of workforce reductions, vendor and operating reductions, salary deferrals and compensation payment changes; anticipated product launches, deployments and revenue contributions from SARA, ROAMEO and RAIA; the effects of concentrating resources on those platforms and pausing or discontinuing other development activities and applications; potential reductions in reliance on outside capital; potential access to inventory, equipment or other financing without equity dilution; and future progress updates.
These statements reflect management's current expectations and assumptions and are subject to significant risks and uncertainties. Actual results may differ materially. Risks include revenue growth below the assumed rate; customer attrition, cancellations or deployment delays; delays in billing or collections; product launch or commercialization delays; changes in product mix or margins; inventory, production and device build cash requirements exceeding estimates; cost reductions being delayed, smaller than anticipated or offset by separation costs and other expenditures; deferred compensation and other obligations becoming payable; reductions in staffing, development or outside services adversely affecting sales, execution, customer support or retention; and debt service, financing costs or other cash requirements exceeding projections.
The Company may not achieve either projected milestone within the stated period or sustain it once achieved. Financing without equity dilution may not be available, and additional equity or other financing may continue to dilute existing stockholders. Other material risks include the Company's history of losses, negative working capital, stockholders' deficit, substantial doubt regarding its ability to continue as a going concern, and the risks described in its most recent Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission.
Readers should not place undue reliance on these statements, which speak only as of the date of this release. Except as required by law, the Company undertakes no obligation to update them. This release does not constitute an offer to sell or the solicitation of an offer to buy securities. The Company does not qualify for the statutory safe harbor for forward looking statements under the Private Securities Litigation Reform Act of 1995.
Certain Information Regarding the Company's Financial Condition
The Company has not been profitable in any fiscal year of its operating history and has reported significant operating losses, negative working capital and a stockholders' deficit. Its independent auditor's report includes an explanatory paragraph expressing substantial doubt regarding the Company's ability to continue as a going concern. The Company's cash on hand is insufficient to fund operations for an extended period without additional financing. Such financing may not be available on acceptable terms or at all and may result in substantial dilution to existing stockholders.
The projections in this release do not eliminate these conditions or the Company's existing obligations. Investors should review the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 2026, as amended, and subsequent SEC filings for additional information regarding its financial condition, financing arrangements and risks.
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Doug Clemons, Chief Marketing Officer
248-270-8273
doug.c@radsecurity.com
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1 https://www.ibisworld.com/united-states/market-research-reports/security-services-industry/