10-Q

UNITED

STATES

SECURITIES

AND EXCHANGE COMMISSION

WASHINGTON,

D.C. 20549

FORM

10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR

THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2025

OR

☐

TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR

THE TRANSITION PERIOD FROM _______________ TO _______________

COMMISSION

FILE NUMBER: 000-55079

ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

(Exact name of registrant as specified in its charter)

Nevada	27-2343603
(State<br> or other jurisdiction of Incorporation or organization)	(I.R.S.<br> Employer Identification Number)
10800 Galaxie Avenue<br><br> <br>Ferndale, MI	48220
(Address<br> of principal executive offices)	(Zip<br> code)

(877)787-6268

(Registrant’s telephone number, including area code)

not

applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large<br> accelerated filer	☐	Accelerated<br> filer	☐
Non-accelerated<br> filer	☒	Smaller<br> reporting company	☒
		Emerging<br> growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate

the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 25,287,280,437 shares of common stock were issued and outstanding as of January 12, 2026.

Table

of Contents

		PAGE
PART I	FINANCIAL INFORMATION
ITEM<br> 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets as of November 30, 2025 and February 28, 2025 (Unaudited)	3
	Condensed Consolidated Statements of Operations for the Three Months and Nine Months Ended November 30, 2025 and 2024 (Unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Deficit for the Nine Months Ended November 30, 2025 and 2024 (Unaudited)	5-6
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended November 30, 2025 and 2024 (Unaudited)	7
	Notes to the Consolidated Financial Statements (Unaudited)	8-27
ITEM<br> 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
ITEM<br> 3.	Quantitative and Qualitative Disclosures About Market Risk	33
ITEM<br> 4.	Controls and Procedures	33
PART II	OTHER INFORMATION
ITEM<br> 1.	Legal Proceedings	34
ITEM<br> 1A.	Risk Factors	34
ITEM<br> 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
ITEM<br> 3.	Defaults Upon Senior Securities	34
ITEM<br> 4.	Mine Safety Disclosures	34
ITEM<br> 5.	Other Information	34
ITEM<br> 6.	Exhibits	35
SIGNATURES		36

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PART

I – FINANCIAL INFORMATION

ITEM

1. FINANCIAL STATEMENTS

ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONDENSED

CONSOLIDATED BALANCE SHEETS

			February 28,<br> <br>2025*
ASSETS
Current assets:
Cash	143,801		$	865,975
Accounts receivable, net	1,306,020			1,367,331
Share proceeds receivable	—			418,669
Device parts inventory, net	1,138,333			1,583,726
Prepaid expenses and deposits	505,285			792,842
Total current assets	3,093,439			5,028,543
Operating lease asset	970,324			1,010,545
Revenue earning devices, net of accumulated depreciation of 3,756,281 and 2,292,172, respectively	5,195,308			4,539,180
Fixed assets, net of accumulated depreciation of 582,896 and 491,186, respectively	221,433			258,328
Trademarks	35,319			33,321
Investment at cost	100,000			100,000
Security deposit	15,880			15,880
Total assets	9,631,703		$	10,985,797
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable and accrued expenses	3,211,067		$	2,121,871
Customer deposits	162,811			91,578
Current operating lease liability	245,173			197,349
Current portion of deferred variable payment obligation	2,837,536			1,901,258
Loan payable - related party	437,984			329,365
Deferred compensation for CEO	1,392,230			2,202,600
Current portion of loans payable, net of discount of 512,676 and 0	6,747,115			519,105
Current portion of accrued interest payable	2,083,352			213,555
Total current liabilities	17,117,268			7,576,681
Non-current operating lease liability	711,842			810,513
Loans payable, net of discount of 0 and 360,163, respectively	20,535,881			31,922,078
Deferred variable payment obligation	2,525,000			2,525,000
Incentive compensation plan payable	4,000,000			4,000,000
Accrued interest payable	13,444,645			13,680,453
Total liabilities	58,334,636			60,514,725
Series B Convertible, Redeemable Preferred Stock. 0.001 par value; 8% cumulative dividend payable quarterly,1,200 stated value, 5,000 shares authorized, no shares issued and outstanding at November 30, 2025 and February 28, 2025, respectively	—			—
Series C Convertible, Redeemable Preferred Stock. 0.001 par value; 1,200 stated value, redeemable at 109.5%, 12% dividend, 1,000 shares authorized, 667 and 306 shares issued and outstanding at November 30, 2025 and February 28, 2025, respectively	876,968			402,084
Convertible, Redeemable Preferred Stock, value	876,968			402,084
Commitments and Contingencies	-			-
Stockholders’ deficit:
Preferred Stock, undesignated; 15,534,000 shares authorized; no shares issued and outstanding at November 30, 2025 and February 28, 2025, respectively	—			—
Series G Redeemable Preferred Stock. 0.001 par value; 100,000 shares authorized, no shares issued and outstanding at November 30, 2025 and February 28, 2025, respectively	—			—
Series E Preferred Stock, 0.001 par value; 4,350,000 shares authorized; 3,350,000 and 3,350,000 shares issued and outstanding, respectively	3,350			3,350
Series F Convertible Preferred Stock, 1.00 par value; 10,000 shares authorized; 2,513 and 2,513 shares issued and outstanding, respectively	2,513			2,513
Preferred Stock, value	2,513			2,513
Common Stock, 0.00001 par value; 27,500,000,000 shares authorized 23,287,834,008 and 14,412,453,768 shares issued, issuable and outstanding, respectively	232,878			144,125
Additional paid-in capital	115,170,827			106,316,844
Preferred stock to be issued	99,086			99,086
Accumulated deficit	(165,088,555	)		(156,496,930	)
Total stockholders’ deficit	(49,579,901	)		(49,931,012	)
Total liabilities and stockholders’ deficit	9,631,703		$	10,985,797

All values are in US Dollars.

*	Derived<br> from audited information

The

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONDENSED

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months<br> <br>Ended<br> <br>November 30, 2025			Three Months<br> <br>Ended<br> <br>November 30, 2024			Nine Months<br> <br>Ended<br> <br>November 30, 2025			Nine Months<br> <br>Ended<br> <br>November 30, 2024
Revenues	$	2,010,158		$	1,750,968		$	5,753,744		$	4,277,951
Cost of Goods Sold		202,441			289,339			426,485			688,024
Depreciation and amortization		507,265			287,799			1,448,441			729,672
Total Cost of Goods Sold		709,706			577,138			1,874,926			1,417,696
Gross Profit		1,300,452			1,173,830			3,878,818			2,860,255
Operating expenses:
Research and development (Note 9)		1,096,970			579,045			3,104,303			1,897,165
General and administrative		2,737,329			2,733,547			8,604,371			8,220,564
Depreciation and amortization		36,358			106,261			107,379			309,699
Operating lease cost and rent		61,295			57,875			182,092			182,855
Total operating expenses		3,931,952			3,476,728			11,998,145			10,610,283
Loss from operations		(2,631,500	)		(2,302,898	)		(8,119,327	)		(7,750,028	)
Other income (expense), net:
Interest expense		(1,469,300	)		(1,401,076	)		(4,182,611	)		(4,072,108	)
Gain (loss) on settlement of debt		(630,000	)		—			3,740,185			(6,520	)
Total other income (expense), net		(2,099,300	)		(1,401,076	)		(442,426	)		(4,078,628	)
Net Loss	$	(4,730,800	)	$	(3,703,974	)	$	(8,561,753	)	$	(11,828,656	)
Net income (loss) per share - basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Net income (loss) per share - diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average common share outstanding - basic		21,820,801,041			12,161,286,427			18,590,935,695			11,071,139,695
Weighted average common share outstanding - diluted		21,820,801,041			12,161,286,427			18,590,935,695			11,071,139,695

The

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONDENSED

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ DEFICIT

(Unaudited)

			Amount			Shares		Amount		Shares			Amount			Shares		Amount		Capital			Deficit			Deficit
						Shareholder’s Deficit
						Series E Preferred Stock				Series F Preferred Stock						Common Stock				Additional Paid-In			Accumulated			Total Shareholders’
			Amount			Shares		Amount		Shares			Amount			Shares		Amount		Capital			Deficit			Deficit
Balance at February 29, 2024	—			—			3,350,000	$	3,350		2,533		$	101,619			9,238,750,958	$	92,388	$	92,565,513		$	(132,962,427	)	$	(40,199,557	)
Cumulative Effect Adjustment RFV discount per adoption of ASU 2020-06 at March 1, 2024	—			—			—		—		—			—			—		—		—			(4,175,535	)		(4,175,535	)
Issuance of shares, net of 116,046 issuance costs	—			—			—		—		—			—			1,080,166,425		10,802		2,671,791			—			2,682,593
Issuance of Series B Preferred Shares	300			360,000			—		—		—			—			—		—		(82,000	)		—			(82,000	)
Series B Preferred Shares issued as commitment fee	20			24,000			—		—		—			—			—		—		(24,000	)		—			(24,000	)
Series B Preferred shares issued as dividend	2			2,568			—		—		—			—			—		—		(2,568	)		—			(2,568	)
Redemption of Series B Preferred shares	(107	)		(128,856	)		—		—		—			—			—		—		28,856			(28,856	)		—
Stock based compensation	—			—			—		—		—			—			—		—		83,323			—			83,323
Net income	—			—			—		—		—			—			—		—		—			(4,194,359	)		(4,194,359	)
Balance at May 31, 2024	215		$	257,712			3,350,000	$	3,350		2,533		$	101,619			10,318,917,383	$	103,190	$	95,240,915		$	(141,361,177	)	$	(45,912,103	)
Issuance of shares, net of 195,656 issuance costs	—			—			—		—		—			—			1,330,610,802		13,306		4,478,054			—			4,491,360
Debt exchanged for common stock	—			—			—		—		—			—			57,142,857		571		199,429			—			200,000
Series F Preferred Shares exchanged for debt	—			—			—		—		(20	)		(20	)		—		—		(65,793	)		(334,187	)		(400,000	)
Series B Preferred shares issued as dividend	2			2,620			—		—		—			—			—		—		(2,620	)		—			(2,620	)
Redemption of Series B Preferred shares	(217	)		(260,332	)		—		—		—			—			—		—		60,333			(60,333	)		—
Stock based compensation	—			—			—		—		—			—			—		—		83,323			—			83,323
Net income	—			—			—		—		—			—			—		—		—			(3,930,323	)		(3,930,323	)
Balance at August 31, 2024	—		$	—			3,350,000	$	3,350		2,513		$	101,599			11,706,671,042	$	117,067	$	99,993,641		$	(145,686,020	)	$	(45,470,363	)
Issuance of shares, net of 93,885 issuance costs	—			—			—		—		—			—			875,000,000		8,750		2,064,643			—			2,073,393
Stock based compensation	—			—			—		—		—			—			—		—		83,323			—			83,323
Net income	—			—			—		—		—			—			—		—		—			(3,703,974	)		(3,703,974	)
Balance at November 30, 2024	—		$	—			3,350,000	$	3,350		2,513		$	101,599			12,581,671,042	$	125,817	$	102,141,607		$	(149,389,994	)	$	(47,017,621	)

All values are in US Dollars.

The

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONDENSED

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ DEFICIT

(Unaudited)

						Shareholder’s Deficit
						Series E Preferred Stock				Series F Preferred Stock				Common Stock				Additional Paid-In			Accumulated			Total Shareholders’
			Amount			Shares		Amount		Shares		Amount		Shares		Amount		Capital			Deficit			Deficit
Balance at February 28, 2025	306		$	402,084			3,350,000	$	3,350		2,513	$	101,599		14,412,453,768	$	144,125	$	106,316,844		$	(156,496,930	)	$	(49,931,012	)
Issuance of shares, net of 121,746 issuance costs	—			—			—		—		—		—		1,900,000,000		19,000		2,672,294			—			2,691,294
Debt exchanged for common shares	—			—			—		—		—		—		685,000,000		6,850		1,243,650			—			1,250,500
Series C Preferred shares issued as dividend	9			12,073			—		—		—		—		—		—		(12,073	)		—			(12,073	)
Stock based compensation	—			—			—		—		—		—		—		—		80,355			—			80,355
Net income	—			—			—		—		—		—		—		—		—			(4,594,018	)		(4,594,018	)
Balance at May 31, 2025	315		$	414,157			3,350,000	$	3,350		2,513	$	101,599		16,997,453,768	$	169,975	$	110,301,070		$	(161,090,948	)	$	(50,514,954	)
Issuance of shares, net of 75,919 issuance costs	—			—			—		—		—		—		1,540,380,240		15,403		1,236,983			—			1,252,386
Debt exchanged for common shares	—			—			—		—		—		—		1,250,000,000		12,500		1,237,500			—			1,250,000
Series C Preferred shares issued as dividend	9			12,435			—		—		—		—		—		—		(12,435	)		—			(12,435	)
Series C penalty shares	114			149,307			—		—		—		—		—		—		(149,307	)		—			(149,307	)
Redemption of Series C shares	(95	)		(125,000	)		—		—		—		—		—		—		29,871			(29,871	)		—
Stock based compensation	—			—			—		—		—		—		—		—		80,355			—			80,355
Net income	—			—			—		—		—		—		—		—		—			763,064			763,064
Balance at August 31, 2025	343		$	450,899			3,350,000	$	3,350		2,513	$	101,599		19,787,834,008	$	197,878	$	112,724,037		$	(160,357,755	)	$	(47,330,891	)
Balance	343		$	450,899			3,350,000	$	3,350		2,513	$	101,599		19,787,834,008	$	197,878	$	112,724,037		$	(160,357,755	)	$	(47,330,891	)
Issuance of shares, net of 166,496 issuance costs	—			—			—		—		—		—		1,600,000,000		16,000		841,504			—			857,504
Issuance of shares, net<br> of issuance costs	—			—			—		—		—		—		1,600,000,000		16,000		841,504			—			857,504
Debt exchanged for common shares	—			—			—		—		—		—		1,900,000,000		19,000		1,951,000			—			1,970,000
Series C Preferred shares issued as dividend	10			13,539			—		—		—		—		—		—		(13,539	)		—			(13,539	)
Series C penalty shares	314			412,530			—		—		—		—		—		—		(412,530	)		—			(412,530	)
Stock based compensation	—			—			—		—		—		—		—		—		80,355			—			80,355
Net income	—			—			—		—		—		—		—		—		—			(4,730,800	)		(4,730,800	)
Balance<br> at November 30, 2025	667		$	876,968			3,350,000	$	3,350		2,513	$	101,599		23,287,834,008	$	232,878	$	115,170,827		$	(165,088,555	)	$	(49,579,901	)
Balance	667		$	876,968			3,350,000	$	3,350		2,513	$	101,599		23,287,834,008	$	232,878	$	115,170,827		$	(165,088,555	)	$	(49,579,901	)

All values are in US Dollars.

The

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONDENSED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended<br> <br>November 30, 2025			Nine Months Ended<br> <br>November 30, 2024
CASH FLOWS USED IN OPERATING ACTIVITIES:
Net loss	$	(8,561,753	)	$	(11,828,656	)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		1,555,817			1,039,371
Bad debts expense		141,482			37,995
Inventory provision		—			150,000
Reduction of right of use asset		104,585			91,152
Accretion of lease liability		79,294			90,165
Stock based compensation		241,065			249,969
Amortization of debt discounts		301,615			198,696
Penalty added to face value of loan		16,560			—
(Gain) loss on settlement of debt		(3,740,185	)		6,520
Increase in related party accrued payroll and interest		108,619			39,976
Changes in operating assets and liabilities:
Accounts receivable		(80,171	)		(531,703	)
Prepaid expenses		290,118			199,972
Deposit on right of use asset		(13,187	)		—
Device parts inventory		(1,718,797	)		(2,778,439	)
Accounts payable and accrued expenses		1,084,168			700,082
Deferred compensation for CEO		(810,370	)		(195,000	)
Customer deposits		71,233			28,619
Operating lease liabilities		(178,849	)		(171,898	)
Current portion of deferred variable payment obligation for payments		936,278			695,594
Accrued interest payable		2,721,315			3,083,301
Net cash used in operating activities		(7,451,163	)		(8,894,284	)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of fixed assets		(10,863	)		(23,724	)
Acquisition of trademarks		(1,998	)		(4,144	)
Convertible note receivable		—			(50,000	)
Net cash used in investing activities		(12,861	)		(77,868	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Share proceeds net of issuance costs		5,219,853			8,894,645
Proceeds from loans payable		2,375,671			350,000
Repayment of loans payable		(728,674	)		(183,000	)
Proceeds on issuance of Series B Preferred shares		—			278,000
Redemption of Series B or Series C Preferred shares		(125,000	)		(389,188	)
Net cash provided by financing activities		6,741,850			8,950,457
Net change in cash		(722,174	)		(21,695	)
Cash, beginning of period		865,975			105,926
Cash, end of period	$	143,801		$	84,231
Supplemental disclosure of cash and non-cash transactions:
Cash paid for interest	$	97,979		$	81,040
Cash paid for income taxes	$	—		$	—
Noncash investing and financing activities:
Share proceeds receivable	$	418,669		$	352,701
Transfer from device parts inventory to revenue earning devices	$	2,164,190		$	2,876,508
Right of use asset for lease liability	$	53,739		$	—
Cumulative Effect Adjustment RFV discount per adoption of ASU 2020-06 at March 1, 2024	$	—		$	4,175,535
Exchange of Series F preferred stock for note payable	$	—		$	400,000
Exchange of note payable for common stock	$	3,840,590		$	200,000
Series B or Series C preferred shares issued as dividend	$	38,047		$	5,188
Discount applied to face value of loans	$	454,129		$	—
Series C penalty shares issued	$	561,837		$	—

The

accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1.

GENERAL INFORMATION

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”).

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 10,000 common shares to its sole shareholder.

On

August 28, 2017, AITX completed the acquisition of RAD (the “Acquisition”), whereby AITX acquired all the ownership and equity interest in RAD for 3,350,000 shares of AITX Series E Preferred Stock and 2,450 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.

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.

2.

GOING CONCERN

The accompanying unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

For

the nine months ended November 30, 2025, the Company had negative cash flow from operating activities of $7,451,163. As of November 30, 2025, the Company has an accumulated deficit of $165,088,555, and negative working capital of $14,023,829. Management does not anticipate having positive cash flow from operations in the near future. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the issuance of these financial statements.

The Company does not have the resources at this time to repay all its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business. At the same time management points to its successful history with maintaining Company operations and reminds all with reasonable confidence this will continue. Management has plans to address the Company’s financial situation as follows:

Management

is committed to raise either non-dilutive funds or minimally dilutive funds. There is no assurance that these funds will be able to be raised, nor can we provide assurance that these possible raises may not have dilutive effects. In June 2025, the Company entered into an equity financing agreement whereby an investor will purchase up to $30,000,000 of the Company’s common stock at a discount over a two-year period. There still remains about $27 million left to issue under this arrangement. Management believes that it has the necessary support to continue operations by continuing its funding methods in the following ways: growing revenues, through equity proceeds, and issuing non-convertible debt. Management has had many recent conversations with the Company’s primary debt holder and believes that the non-convertible debt on the balance sheet will be extended. Management notes that non-convertible debt on the books has been extended by this debt holder twice in the past and notes that this debt holder has been a strong supporter of the Company.

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INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

3.

ACCOUNTING POLICIES

Basisof Presentation and Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and in conformity with the condensing instructions on Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto in the Company’s latest Annual Report filed with the SEC on Form 10-K as filed on May 29, 2025. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Robotic Assistance Devices, Inc., Robotic Assistance Devices Group, Inc, Robotic Assistance Devices Mobile, Inc., Robotic Assistance Devices Lanka Pvt Limited, and Robotic Assistance Devices Residential, Inc.. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of such statements. The results of operations for the nine months ended November 30, 2025 are not necessarily indicative of the results that may be expected for the entire year.

Useof Estimates

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 and derivative liabilities.

Reclassifications

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.

Concentrations

Loanspayable

At

November 30, 2025 there were $27,795,672 of loans payable, $26,801,006 or 96% of these loans to companies controlled by one individual. At February 28, 2025 there were $32,801,345 loans payable, $28,581,506 or 87% of these loans to companies controlled by one individual.

Cash

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market instruments. The Company places its cash and cash equivalents with high-quality, U.S. financial institutions and, to date has not experienced losses on any of its balances.

AccountsReceivable

Accounts

receivable are comprised of balances due from customers, net of estimated allowances for uncollectible accounts. In determining collectability, historical trends are evaluated, and specific customer issues are reviewed on a periodic basis to arrive at appropriate allowances. There was an allowance of $175,000 and $140,000 provided as of November 30, 2025 and February 28, 2025, respectively. For the three months ended November 30, 2025, one customer accounted for 39% of total accounts receivable. For the three months ended November 30, 2024, one customer accounted for 61% of total accounts receivable.

DeviceParts Inventory

Device

parts inventory is stated at the lower of cost or net realizable value using the weighted average cost method. The Company records a valuation reserve for obsolete and slow-moving inventory, relying principally on specific identification of such inventory. The Company uses these device parts in the assembly of revenue earning devices (and demo devices) as well as research and development. Depending on use, the Company will transfer the parts to the corresponding asset or expense if used in research and development. A charge to income is taken when factors that would result in a need for an increase in the valuation, such as excess or obsolete inventory, are noted. As of November 30, 2025 and February 28, 2025 there was a valuation reserve of $465,000 and $465,000, respectively.

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INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

RevenueEarning Devices

Revenue earning devices are stated at cost. Depreciation is provided on a straight-line basis over the estimated useful life of 48 months. The Company continually evaluates revenue earning devices to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the devices should be evaluated for possible impairment. The Company uses a combination of undiscounted cash flows and market approaches in assessing whether an asset has been impaired. The Company measures impairment losses based upon the amount by which the carrying amount of the asset exceeds the fair value.

FixedAssets

Fixed assets are stated at cost. Depreciation is provided on the straight-line method based on the estimated useful lives of the respective assets which range from two to five years. Major repairs or improvements are capitalized. Minor replacements and maintenance and repairs which do not improve or extend asset lives are expensed currently.

SCHEDULE OF FIXED ASSETS STATED AT COST

Computer<br> equipment and software	2<br> or 3 years
Office<br> equipment	4<br> years
Manufacturing<br> equipment	7<br> years
Warehouse<br> equipment	5<br> years
Tooling	2<br> years
Demo<br> Devices	4<br> years
Vehicles	3<br> years
Leasehold<br> improvements	5<br> years, the life of the lease

The Company periodically evaluates the fair value of fixed assets whenever events or changes in circumstances indicate that its carrying amounts may not be recoverable. Upon retirement or other disposition of fixed assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is recognized in income.

Researchand Development

Research and development costs are expensed in the period they are incurred in accordance with ASC 730, Research and Development unless they meet specific criteria related to technical, market and financial feasibility, as determined by Management, including but not limited to the establishment of a clearly defined future market for the product, and the availability of adequate resources to complete the project. If all criteria are met, the costs are deferred and amortized over the expected useful life or written off if a product is abandoned. At November 30, 2025 and February 28, 2025, the Company had no deferred development costs.

Contingencies

Occasionally, the Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions.

Salesof Future Revenues

The Company has entered into transactions, as more fully described in footnote 8, in which it has received funding from investors in exchange for which it will make payments to those investors based on the level of sales of certain revenue categories, generally based on a percentage of sales for those certain revenues. The Company determines whether these agreements constitute sales of future revenues or are in substance debt based on the facts and circumstances of each agreement, with the following primary criteria determinative of whether the agreement constitutes a sale of future revenues or debt:

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INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

●	Does<br> the agreement purport, in substance, to be a sale
●	Does<br> the Company have continuing involvement in the generation of cash flows due the investor
●	Is<br> the transaction cancellable by either party through payment of a lump sum or other transfer of assets
●	Is<br> the investors rate of return is implicitly limited by the terms of the agreement
●	Does<br> the Company’s revenue for a reporting period underlying the agreement have only a minimal impact on the investor’s rate<br> of return
●	Does<br> the investor have recourse relating to payments due

In the event a transaction is determined to be a sale of future revenues, it is recorded as deferred revenue and amortized using the sum-of-the-revenue method. In the event a transaction is determined to be debt, it is recorded as debt and amortized using the effective interest method. As of the date of these financial statements, the Company has determined that all such agreements are debt.

RevenueRecognition

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, supersedes the revenue recognition requirements and industry specific guidance under Revenue Recognition (Topic 605). Topic 606 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. Topic 606 defines a five-step process that must be evaluated and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing accounting principles generally accepted in the United States of America (“U.S. GAAP”) including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The Company adopted Topic 606 on March 1, 2018, using the modified retrospective method. Under the modified retrospective method, prior period financial positions and results will not be adjusted. There was no cumulative effect adjustment recognized as a result of this adoption. Refer to Note 4 – Revenue from Contracts with Customers for additional information. For the nine months ended November 30, 2025, one customer accounted for 57% of total revenue and for the nine months ended November 30, 2024, one customer accounted for 57% of total revenue.

IncomeTaxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. ASC 740, Accounting for Income Taxes requires companies to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation is enacted. The Company’s gross deferred tax assets were revalued based on the reduction in the federal statutory tax rate from 35% to 21%. A corresponding offset has been made to the valuation allowance, and any potential other taxes arising due to the Tax Act will result in reductions to the Company’s net operating loss carryforward and valuation allowance. The Company will continue to analyze the Tax Act to assess its full effects on the Company’s financial results, including disclosures, for the Company’s fiscal year ending February 28, 2026, but the Company does not expect the Tax Act to have a material impact on the Company’s consolidated financial statements.

Leases

Lease agreements are evaluated to determine if they are sales/finance leases meeting any of the following criteria at inception: (a) transfer of ownership of the underlying asset; (b) purchase option that is reasonably certain of being exercised; (c) the lease term is greater than a major part of the remaining estimated economic life of the underlying asset; or (d) if the present value of the sum of lease payments and any residual value guaranteed by the lessee that has not already been included in lease payments in accordance with ASC 842-10-30-5(f) equals or exceeds substantially all of the fair value of the underlying asset.

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NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

If at its inception, a lease meets any of the four lease criteria above, the lease is classified by the Company as a sales/finance; and if none of the four criteria are met, the lease is classified by the Company as an operating lease.

Operating lease payments are recognized as an expense in the income statement on a straight-line basis over the lease term, whereby an equal amount of rent expense is attributed to each period during the term of the lease, regardless of when actual payments are made. This generally results in rent expense in excess of cash payments during the early years of a lease and rent expense less than cash payments in the later years. The difference between rent expense recognized and actual rental payments is recorded as deferred rent and included in liabilities.

DistinguishingLiabilities from Equity

The Company relies on the guidance provided by ASC Topic 480, Distinguishing Liabilities from Equity, to classify certain redeemable and/or convertible instruments. The Company first determines whether a financial instrument should be classified as a liability. The Company will determine the liability classification if the financial instrument is mandatorily redeemable, or if the financial instrument, other than outstanding shares, embodies a conditional obligation that the Company must or may settle by issuing a variable number of its equity shares.

Once the Company determines that a financial instrument should not be classified as a liability, the Company determines whether the financial instrument should be presented between the liability section and the equity section of the balance sheet (“temporary equity”). The Company will determine temporary equity classification if the redemption of the financial instrument is outside the control of the Company (i.e. at the option of the holder). Otherwise, the Company accounts for the financial instrument as permanent equity.

Our Chief Executive Officer/ Chairman holds sufficient shares of the Company’s voting preferred stock that give sufficient voting rights under the articles of incorporation and bylaws of the Company such that the CEO/ Chairman can at any time unilaterally vote to increase the number of authorized shares of common stock of the Company, without the need to call a general meeting of common shareholders of the Company.

InitialMeasurement

The Company records its financial instruments classified as liability, temporary equity or permanent equity at issuance at the fair value, or cash received.

SubsequentMeasurement – Financial Instruments Classified as Liabilities

The Company records the fair value of its financial instruments classified as liabilities at each subsequent measurement date. The changes in fair value of its financial instruments classified as liabilities are recorded as other income (expenses).

FairValue of Financial Instruments

ASC Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”) provides a framework for measuring fair value in accordance with generally accepted accounting principles.

ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs).

The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC Topic 820 are described as follows:

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NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

●	Level<br> 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.
●	Level<br> 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly<br> or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical<br> or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset<br> or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
●	Level<br> 3 – Inputs that are unobservable for the asset or liability.

Measuredon a Recurring Basis

The following table presents information about our liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell:

SCHEDULE OF LIABILITIES MEASURED AT FAIR VALUE

	Amount at		Fair Value Measurement Using
	Fair Value		Level 1		Level 2		Level 3
November 30, 2025
Assets
Investment at cost	$	100,000	$	50,000	$	—	$	50,000
Liabilities
Incentive compensation plan payable – revaluation of equity awards payable in Series G shares	$	4,000,000	$	—	$	—	$	4,000,000
February 28, 2025
Assets
Investment at cost	$	100,000	$	50,000	$	—	$	50,000
Liabilities
Incentive compensation plan payable – revaluation of equity awards payable in Series G shares	$	4,000,000	$	—	$	—	$	4,000,000

For the incentive compensation plan (revaluation of equity awards payable in Series G shares) referred to above, the Company recorded stock based compensation of $0 and $0 for the three months ended November 30, 2025 and February 28, 2025 with corresponding adjustments to incentive compensation plan payable

The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, prepaid expenses and advances, accounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments.

Earnings(Loss) per Share

Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used to determine the number of shares assumed to be purchased from the exercise of stock options and/or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive.

Basic loss per common share is computed based on the weighted average number of shares outstanding during the period. Diluted loss per share is computed in a manner similar to the basic loss per share, except the weighted-average number of shares outstanding is increased to include all common shares, including those with the potential to be issued by virtue of convertible debt and other such convertible instruments. Diluted loss per share contemplates a complete conversion to common shares of all convertible instruments only if they are dilutive in nature with regards to earnings per share.

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NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

4.

REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue is earned primarily from two sources: 1) direct sales of goods or services and 2) short-term rentals. Direct sales of goods or services are accounted for under Topic 606, and short-term rentals are accounted for under Topic 842 (which addresses lease accounting and was adopted on March 1, 2019).

As disclosed in the revenue recognition section of Note 3 – Accounting Polices, the Company adopted Topic 606 in accordance with the effective date on March 1, 2018. Note 3 includes disclosures regarding the Company’s method of adoption and the impact on the Company’s financial statements. Revenue is recognized on direct sales of goods or services when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services.

After adopting Topic 842, also referred to above in Note 3, the Company is accounting for revenue earned from rental activities where an identified asset is transferred to the customer and the customer has the ability to control that asset. The Company recognizes revenue from its device rental activities when persuasive evidence of a contract exists, the performance obligations have been satisfied, the transaction price is fixed or determinable and collection is reasonably assured. Performance obligations associated with device rental transactions are satisfied over the rental period. Rental periods are short-term in nature. Therefore, the Company has elected to apply the practical expedient which eliminates the requirement to disclose information about remaining performance obligations. Payments are due from customers at the completion of the rental, except for customers with negotiated payment terms, generally net 30 days or less, which are invoiced and remain as accounts receivable until collected.

The following table presents revenues from contracts with customers disaggregated by product/service:

SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS

	Three Months<br> <br>Ended<br> <br>November 30, 2025		Three Months<br> <br>Ended<br> <br>November 30, 2024		Nine Months<br> <br>Ended<br> <br>November 30, 2025		Nine Months<br> <br>Ended<br> <br>November 30, 2024
Device rental activities	$	1,807,083	$	1,429,112	$	5,129,840	$	3,475,546
Direct sales of goods and services		203,075		321,856		623,904		802,405
Revenue	$	2,010,158	$	1,750,968	$	5,753,744	$	4,277,951

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NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

5.

LEASES

We lease certain warehouses, and office space. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we did not combine lease and non-lease components.

There is no lease renewal. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Below is a summary of our lease assets and liabilities at November 30, 2025 and February 28, 2025.

SCHEDULE OF LEASE ASSETS AND LIABILITIES

Leases	Classification	November 30, <br> 2025		February 28, <br> 2025
Assets
Operating	Operating Lease Assets	$	970,324	$	1,010,545
Liabilities
Current
Operating	Current Operating Lease Liability	$	245,173	$	197,349
Noncurrent
Operating	Noncurrent Operating Lease Liabilities		711,842		810,513
Total lease liabilities		$	957,015	$	1,007,862

Note: As most of our leases do not provide an implicit rate, we use our incremental borrowing rate of 10% which for the leases noted above was based on the information available at commencement date in determining the present value of lease payments. We compare against loans we obtain to acquire physical assets and not loans we obtain for financing. The loans we obtain for financing are generally at significantly higher rates and we believe that physical space or vehicle rental agreements are in line with physical asset financing agreements. CAM charges were not included in operating lease expense and were expensed in general and administrative expenses as incurred.

Rent

expense and operating lease cost was $61,295 and $182,092 for the three and nine months ended November 30, 2025, respectively, and $57,875 and $182,855 for the three and nine months ended November 30, 2024, respectively.

6.

INVESTMENT

On December 23, 2022 the Company entered into a Simple Agreement for Future Equity (SAFE) contract to invest $50,000 to acquire shares of a company’s capital stock at a discount. On June 3, 2024 the Company acquired a $50,000 convertible note receivable from Nightingale Intelligent Systems, Inc., a private Delaware corporation that provides unmanned aerial vehicles (UAV) for commercial applications. On January 3, 2025 the Company exchanged it’s convertible note receivable for : 1,770,840 Series A preferred shares, 15,000 common shares and 165,000 common share warrants. On February 28, 2025, there was a 10 :1 split. The Company now holds 177,084 Series A preferred shares, 1,500 common shares and 16,500 common share warrants (at a strike price of $0.80/share). The Company values the Nightingale Intelligent Systems, Inc.’s

shares and warrants

at $50,000 bringing total investments at cost to $100,000 at November 30, 2025

7.

REVENUE EARNING DEVICES

Revenue earning devices consisted of the following:

SCHEDULE OF REVENUE EARNING DEVICES

	November 30, <br> 2025			February 28, <br> 2025
Revenue earning devices	$	8,951,589		$	6,831,352
Less: Accumulated depreciation		(3,756,281	)		(2,292,172	)
Total	$	5,195,308		$	4,539,180

During

the three and nine months ended November 30, 2025 the Company made total additions to revenue earning devices of $359,974 and $2,120,237 respectively, which were transfers from inventory. During the three and nine months ended November 30, 2024 the Company made total additions to revenue earning devices of $1,069,822 and $2,800,355, respectively, which were transfers from inventory.

Depreciation and amortization for the three and nine months ended November 30, 2025 and 2024 are as follows:

SCHEDULE OF DEPRECIATION AND AMORTIZATION

Depreciation and Amortization	Three Months Ended<br><br> <br>November 30, 2025		Three Months Ended<br><br> <br><br> <br>November 30, 2024		Nine Months Ended<br><br> <br>November 30, 2025		Nine Months Ended<br><br> <br>November 30, 2024
Cost of Goods Sold	$	507,265	$	287,799	$	1,448,441	$	729,672
Operating expenses		5,831		79,662		15,671		198,935
Total Depreciation and Amortization	$	513,096	$	367,461	$	1,464,112	$	928,607

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NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

8.

FIXED ASSETS

Fixed assets consisted of the following:

SCHEDULE OF FIXED ASSETS

	November 30, <br> 2025			February 28, <br> 2025
Automobile	$	74,237		$	74,237
Demo devices		346,139			302,186
Tooling		107,020			107,020
Machinery and equipment		17,246			8,825
Computer equipment		157,448			157,448
Office equipment		15,312			15,312
Furniture and fixtures		21,225			21,225
Warehouse equipment		38,746			36,305
Leasehold improvements		26,956			26,956
Fixed assets gross		804,329			749,514
Less: Accumulated depreciation		(582,896	)		(491,186	)
Fixed assets, net of accumulated depreciation	$	221,433		$	258,328

During

the three months ended November 30, 2025, the Company made additions of $14,309 of which $11,868 were transfers from inventory with remaining additions of $2,441. During the nine months ended November 30, 2025, the Company made additions of $54,816 of which $43,953 were transfers from inventory with remaining additions of $10,863. During the three months ended November 30, 2024, the Company made additions of $25,603, all of which were transfers from inventory. During the nine months ended November 30, 2024, the Company made additions of $99,877 of which $76,153 were transfers from inventory with remaining additions of $23,724.

Depreciation and amortization for the three and nine months ended November 30, 2025 and 2024 are as follows:

SCHEDULE OF DEPRECIATION AND AMORTIZATION IN OPERATING EXPENSES

Depreciation and Amortization	Three Months <br><br>Ended <br><br>November 30, 2025		Three Months Ended<br> <br>November 30, 2024		Nine Months <br><br>Ended <br><br>November 30, 2025		Nine Months <br><br>Ended <br><br>November 30, 2024
Fixed assets	$	30,527	$	26,599	$	91,708	$	110,764
Revenue earning devices		5,831		79,662		15,671		198,935
Total Depreciation and Amortization included in operating expenses	$	36,358	$	106,261	$	107,379	$	309,699

9.

DEFERRED VARIABLE PAYMENT OBLIGATION

On February 1, 2019, the Company entered into an agreement with an investor whereby the investor would pay up to $900,000 in exchange for a perpetual 9% rate payment (Payments) on the Company’s reported quarterly revenue from operations excluding any gains or losses from financial instruments (Revenues). At February 29, 2020 the investor has advanced the full $900,000.

On May 9, 2019, the Company entered into two similar arrangements with two investors:

(1)	The<br> investor would pay up to $400,000 in exchange for a perpetual 4% rate Payment on the Company’s reported quarterly Revenues.<br> At February 29, 2020, $400,000 has been paid to the Company.
(2)	The<br> investor would pay up to $50,000 in exchange for a perpetual 1.11% rate Payment on the Company’s reported quarterly Revenues.<br> At February 29, 2020, $50,000 has been paid to the Company.

These variable payments (Payments) are to be made 30 days after the end of each fiscal quarter. If the Payments would deplete RAD’s available cash by more than 30%, the Payments may be deferred for up to 12 months after the quarterly report at an interest rate of 6% per annum on the unpaid amount.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

In the event that at least 10% of the assets of the Company are sold by the Company, the investors would be entitled to the fair market value (FMV) of all future Payments associated with the assets sold as determined by an independent valuator to be chosen by the investors. The FMV cannot exceed 30% of the total asset disposition price defined as the total price paid for the assets plus all future Payments associated with the assets sold. In the event that the common or preferred shares are sold by the Company to a third party as to effect a change in control, then the investors must be paid the FMV of all future Payments in one lump payment. The FMV cannot exceed 30% of the share disposition price defined as the total price the third party paid for the shares plus the total value of all future Payments.

On

November 18, 2019, the Company entered into another similar arrangement with the (February 1, 2019) investor above whereby the investor would advance up to $225,000 in exchange for a perpetual 2.25% rate Payment on the Company’s quarterly Revenues (commencing on quarter ending May 31, 2020). At February 29, 2020, the investor has advanced $109,000 and the investor advanced the $116,000 remainder as of May 2020.

On

December 30, 2019, the Company entered into another similar arrangement with a new investor whereby the investor would advance up to $100,000 in exchange for a perpetual 1.00% rate Payment on the Company’s quarterly Revenues (commencing quarter ended November 30, 2020). At February 29, 2020, the investor has advanced $50,000 with the remainder to be advanced no later than June 30, 2020. If the total investor advances turns out to be less than $100,000, this would not constitute a breach of the agreement, rather the 1.00% rate would be adjusted on a pro-rata basis.

On

April 22, 2020, the Company entered into another similar arrangement with the (first May 9, 2019) investor above whereby the investor would advance up to $100,000 in exchange for a perpetual 1.00% rate Payment on the Company’s quarterly Revenues. At May 31, 2020, the investor has fully funded this commitment.

On July 1, 2020, the Company entered into a similar agreement with the first investor whereby the investor would pay up to $800,000 in exchange for a perpetual 2.75% rate payment (Payment) on the Company’s reported quarterly revenue. These Payments are to be made 90 days after the fiscal quarter with the first payment being due no later than May 31, 2021. If the Payments would deplete RAD’s available cash by more than 20%, the payment may be deferred. The investor had agreed to pay $100,000 per month over an 8 month period with the first payment due July 2020 and the final payment no later than February 28, 2021. As at August 31, 2020 the investor had fully funded the $800,000 commitment.

On

August 27, 2020, the Company and the first investor referred to above consolidated the three separate agreements of February 1, 2019, for $900,000, November 18, 2019 for $225,000 and July 1, 2020 for $800,000 into a new agreement for a total of $1,925,000. This new agreement is for similar terms as the above agreements save for the following: the rate payment is revised to 14.25% payable on revenues commencing the quarter ended August 31, 2020. Upon an event of default that we are unable to cure in the time allotted under the agreements, these Payments may be secured with a priority lien by UCC filing against all of our assets but is subordinated to equipment financing or leasing agreements on the products the Company leases to its customers.

In summary of all agreements mentioned above if in the event that at least 10% of the assets of the Company are sold by the Company, the investors would be entitled to the fair market value (FMV) of all future Payments associated with the assets sold as determined by an independent valuator to be chosen by the investors. The FMV cannot exceed 43.77% of the total asset disposition price defined as the total price paid for the assets plus all future Payments associated with the assets sold. In the event that the common or preferred shares are sold by the Company to a third party as to effect a change in control, then the investors must be paid the FMV of all future Payments in one lump payment. The FMV cannot exceed 43.77% of the share disposition price defined as the total price the third party paid for the shares plus the total value of all future Payments. As of March 1, 2021, as a result of the amendment with the first investor noted below. This aggregate asset disposition % was reduced from 43.77 % to 33.77%.

The

Payments first become payable on June 30, 2019 (unless otherwise indicated) based on the quarterly Revenues for the quarter ended May 31, 2019, and accrue every quarter thereafter. As of November 30, 2025, the Company has accrued $2,837,536 in Payments of which $1,599,972 are in arrears. As of February 28, 2025, the Company has accrued approximately $1,901,258 in Payments, of which $904,377 is in arrears. No notices have been received by the Company.

On

March 1, 2021, the first investor referred to above whose aggregate investment is $1,925,000 revised his agreements as follows:

1)	The<br> rate payment was reduced from 14.25 % to 9.65 %
2)	The<br> asset disposition % (see below) was reduced from 31 % to 21%

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

In

consideration for the above changes, the investor received 40 Series F Convertible Preferred Stock and a warrant to purchase 367 shares of its Series F Convertible Preferred Stock with a five5-year term and an exercise price of $1.00. During the three months ended May 31, 2021, the warrant holder exercised warrants to acquire 38 shares of Series F Convertible Preferred Stock. The Company attributed a fair value based on recent transactions for the Series F Preferred stock and warrants of $33,015,214 and recorded a loss on settlement of debt with a corresponding adjustment to paid in capital.

The

Company retains total involvement in the generation of cash flows from these revenue streams that form the basis of the payments to be made to the investors under this agreement. Because of this, the Company has determined that the agreements constitute debt agreements. As of November 30, 2025, and February 28, 2025, the long-term balances other than Payments already owed is the cash received of $2,525,000 and $2,525,000, respectively.

For

both the three months and nine months ended November 30, 2025 and year ended February 28, 2025, the Company has received $0 related to the deferred payment obligation since there were no new agreements during this period. The balance remains $2,525,000 at both November 30, 2025 and February 28, 2025.

10.

RELATED PARTY TRANSACTIONS

For

both the three months and nine months ended November 30, 2025 and November 30, 2024, the Company had no repayments of net advances from its loan payable-related party. At November 30, 2025, the loan payable-related party was $437,984 and $329,635 at February 28, 2025. Included in the balance due to the related party at November 30, 2025 is $361,452 of deferred salary and interest, $239,600 of which bears interest at 12%. As of February 28, 2025, included in the balance due to the related party is $252,833 of deferred salary and interest, $190,013 of which bears interest at 12%. The accrued interest included in the loan at November 30, 2025, and February 28, 2025, was $70,689, and $51,575, respectively.

During

the nine months ended November 30, 2025, the Company paid out gross payments to the CEO of $1,560,370 offset by a bonus accrual of $750,000, which yields a net change of $810,370 relating to deferred compensation for CEO. This was all in accordance with a December 2023 board action allowing for $1 million of annual discretionary compensation as well as a February 28, 2025, board action which provided an additional $1.5 million in compensation. The balance of deferred compensation for CEO was $1,392,230 and $2,202,600 at November 30, 2025, and February 28, 2025, respectively

For

the three and nine months ended November 30, 2025, the Company accrued $0 (three and nine months ended November 30, 2024-$0) of incentive compensation plan payable to the CEO. This would be payable in Series G Preferred Shares which are redeemable at the Company’s option at $1,000 per share. At November 30, 2025, and February 28, 2025, there was $4,000,000 and $4,000,000 of incentive compensation payable.

During

the three months ended November 30, 2025, and 2024, the Company was charged $655,721 and $556,175, respectively for fees for research and development from a company partially owned by a principal shareholder.

During

the nine months ended November 30, 2025, and 2024, the Company was charged $1,990,873 and $1,846,005, respectively for fees for research and development from a company partially owned by a principal shareholder. The principal shareholder received no compensation from this partially owned research and development company and the fees were spent on core development projects. As at both November 30, 2025, and February 28, 2025, the balance due to this company was $76,532.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

11.

LOANS PAYABLE

Loans payable at November 30, 2025 consisted of the following:

SCHEDULE OF LOANS PAYABLE

Date	Maturity	Description		Principal			Interest Rate
July 18, 2016	July 18, 2017	Promissory note	(1)*	$	3,500			22	%
December 10, 2020	March 1, 2027	Promissory note	(2)		3,921,168			12	%
December 10, 2020	March 1, 2027	Promissory note	(3)		2,754,338			12	%
December 10, 2020	December 10, 2024	Promissory note	(4)*		182,165			12	%
December 14, 2020	March 1, 2027	Promissory note	(5)		310,375			12	%
December 30, 2020	March 1, 2027	Promissory note	(6)		350,000			12	%
January 1, 2021	March 1, 2027	Promissory note	(7)		25,000			12	%
January 1, 2021	March 1, 2027	Promissory note	(8)		145,000			12	%
January 14, 2021	March 1, 2027	Promissory note	(9)		-			12	%
February 22, 2021	March 1, 2027	Promissory note	(10)		1,650,000			12	%
March 1, 2021	March 1, 2027	Promissory note	(11)		2,585,000			12	%
June 8, 2021	June 8, 2027	Promissory note	(12)		2,750,000			12	%
July 12, 2021	July 26, 2026	Promissory note	(13)		-			7	%
September 14, 2021	September 14, 2027	Promissory note	(14)		1,650,000			12	%
July 28, 2022	March 1, 2027	Promissory note	(15)		170,000			15	%
August 30, 2022	August 30,2027	Promissory note	(16)		3,000,000			15	%
September 7, 2022	March 1, 2027	Promissory note	(17)		400,000			15	%
September 8, 2022	March 1, 2027	Promissory note	(18)		475,000			15	%
October 13, 2022	March 1, 2027	Promissory note	(19)		350,000			15	%
October 28, 2022	October 31, 2026	Promissory note	(20)		400,000			15	%
November 9, 2022	October 31, 2026	Promissory note	(20)		400,000			15	%
November 10, 2022	October 31, 2026	Promissory note	(20)		400,000			15	%
November 15, 2022	October 31, 2026	Promissory note	(20)		400,000			15	%
January 11, 2023	October 31, 2026	Promissory note	(20)		400,000			15	%
February 6, 2023	October 31, 2026	Promissory note	(20)		400,000			15	%
April 5. 2023	October 31, 2026	Promissory note	(20)		400,000			15	%
April 20, 2023	October 31, 2026	Promissory note	(20)		400,000			15	%
May 11, 2023	October 31, 2026	Promissory note	(20)		400,000			15	%
October 27, 2023	October 31, 2026	Promissory note	(20)		400,000			15	%
November 30, 2023	April 30, 2026	Purchase Agreement	(21)		203,000			15	%
March 8, 2024	August 8, 2025	Purchase Agreement	(22)*		350,000			15	%
July 26, 2025	July 26, 2026	Promissory note	(23)		165,000			15	%
August 7,2025	August 7,2026	Promissory note	(24)		245,000			15	%
August 25, 2025	August 25, 2026	Promissory note	(25)		137,500			15	%
August 25, 2025	May 6, 2026	Future Receivables Purchase and Sale Agreement	(26)		498,626			108	%
September 25, 2025	September 25, 2026	Promissory note	(27)		550,000			15	%
October 30. 2025	October 30. 2026	Promissory note	(28)		200,000			15	%
November 6, 2025	November 6, 2026	Promissory note	(29)		275,000			15	%
November 24, 2025	November 24, 2026	Promissory note	(30)		450,000			15	%
				$	27,795,672
Less: current portion of loans payable					(7,259,791	)
Less: discount on non-current loans payable					-
Non-current loans payable, net of discount				$	20,535,881
Current portion of loans payable				$	7,259,791
Less: discount on current portion of loans payable					(512,676	)
Current portion of loans payable, net of discount				$	6,747,115
*	In<br> default
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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(1)	This<br> note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions placed<br> on the lender.
(2)	This<br> promissory note was issued as part of a debt settlement whereby $2,683,357 in convertible notes and associated accrued interest of<br> $1,237,811 totaling $3,921,168 was exchanged for this promissory note of $3,921,168, and a warrant to purchase 450,000,000 shares<br> at an exercise price of $.002 per share and a three-year maturity having a relative fair value of $990,000. This note is secured<br> by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties<br> extended the maturity date from December 10, 2023, to March 1, 2025, with all other terms and conditions remaining the same. On April<br> 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions<br> remaining the same.
(3)	This<br> promissory note was issued as part of a debt settlement whereby $1,460,794 in convertible notes and associated accrued interest of<br> $1,593,544 totaling $3,054,338 was exchanged for this promissory note of $3,054,338, and a warrant to purchase 250,000,000 shares<br> at an exercise price of $0.002 per share and a three-year maturity having a relative fair value of $550,000. This note is secured<br> by a general security charging all of the Company’s present and after-acquired property. $300,000 has been repaid during the<br> year ended February 29, 2024. On November 28, 2023, the parties extended the maturity date from December 10, 2023, to March 1, 2025,<br> with all other terms and conditions remaining the same. On April 16, 2025, the parties again extended the maturity date from March<br> 1, 2025, to March 1, 2027, with all other terms and conditions remaining the same.
(4)	This<br> promissory note was issued as part of a debt settlement whereby $103,180 in convertible notes and associated accrued interest of<br> $62,425 totaling $165,605 was exchanged for this promissory note of $165,605, and a warrant to purchase 80,000,000 shares at an exercise<br> price of $.002 per share and a three-year maturity having a fair value of $176,000.The maturity date was extended from December 10,<br> 2023 to December 10, 2024 on February 29, 2024 and a fee of $22,958 was paid and charged to interest expense. The note is in default.<br> No notices have been sent.
(5)	This<br> promissory note was issued as part of a debt settlement whereby $235,000 in convertible notes and associated accrued interest of<br> $75,375 totaling $310,375 was exchanged for this promissory note of $310,375, and a warrant to purchase 25,000,000 shares at an exercise<br> price of $.002 per share and a three-year maturity having a fair value of $182,500.
(6)	The<br> note, with an original principal amount of $350,000, may be pre-payable at any time. The note balance includes an original issue<br> discount of $35,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $0.025 per share with a 3-year<br> term and having a relative fair value of $271,250. The discounts are being amortized over the term of the loan. After allocating<br> these charges to debt and equity according to their respective values, a debt discount of $271,250 with a corresponding adjustment<br> to paid in capital for the relative fair value of the warrant. On March 1, 2024, the unamortized relative fair value discount of<br> $65,092 was removed with a corresponding adjustment to accumulated deficit. A $8,399 unamortized discount remained. On November 28,<br> 2023, the parties extended the maturity date from December 10, 2023, to March 1, 2025, with all other terms and conditions remaining<br> the same. On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms<br> and conditions remaining the same. For the nine months ended November 30, 2025, the Company recorded amortization expense of $138,<br> with an unamortized discount of $0 at November 30, 2025.The loan is fully amortized.
(7)	This<br> promissory note was issued as part of a debt settlement whereby $9,200 in convertible notes and associated accrued interest of $6,944<br> totaling $16,144 was exchanged for this promissory note of $25,000. This note is secured by a general security charging all of the<br> Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from January 1,<br> 2024, to March 1, 2025, with all other terms and conditions remaining the same. On April 16, 2025, the parties again extended the<br> maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the same.
(8)	This<br> promissory note was issued as part of a debt settlement whereby $79,500 in convertible notes and associated accrued interest of $28,925<br> totaling $108,425 was exchanged for this promissory note of $145,000. This note is secured by a general security charging all of<br> the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from January<br> 1, 2024, to March 1, 2025, with all other terms and conditions remaining the same. On April 16, 2025, the parties again extended<br> the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the same.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(9)	The<br> note, with an original principal amount of $550,000, may be pre-payable at any time. The note balance includes an original issue<br> discount of $250,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $0.025 per share with a<br> 3-year term and having a relative fair value of $380,174. The discounts are being amortized over the term of the loan. After allocating<br> these charges to debt and equity according to their respective values, a debt discount of $380,174 with a corresponding adjustment<br> to paid in capital. On March 1, 2024, the unamortized relative fair value discount of $80,284 was removed with a corresponding adjustment<br> to accumulated deficit. A $10,559 unamortized discount remained. On November 28, 2023, the parties extended the maturity date from<br> January 14, 2024, to March 1, 2025, with all other terms and Conditions remaining the same. On April 16, 2025, the parties again<br> extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions remaining the same. For the<br> nine months ended November 30, 2025, the Company recorded amortization expense of $144, with an unamortized discount of $0 at November<br> 30, 2025.The loan is fully amortized. On February 11, 2025, the Company repaid $162,000 through the issuance of 60,000,000 common<br> shares. The remaining $388,000 in loan principal as well as $35,500 in accrued interest ( all totaling $425,500) was repaid on March<br> 5, 2025 through the issuance of 185,000,000 common shares.
(10)	The<br> note, with an original principal balance of $1,650,000, may be pre-payable at any time. The note balance includes an original issue<br> discount of $150,000 and was issued with a warrant to purchase 100,000,000 shares at an exercise price of $0.135 per share with a<br> 3-year term and having a relative fair value of $1,342,857. The discount and warrant are being amortized over the term of the loan.<br> After allocating these charges to debt and equity according to their respective values, a debt discount of $1,342,857 with a corresponding<br> adjustment to paid in capital for the relative fair value of the warrant. The maturity date was extended from February 22, 2022,<br> to February 22, 2024, on February 28, 2022, in exchange for warrants to purchase 50,000,000 at an exercise price of $.0164 and a<br> 3-year term. These warrants have a fair value of $950,000 recorded as interest expense with a corresponding adjustment to paid in<br> capital recorded in the year ended February 28, 2022. On November 28, 2023, the parties extended the maturity date from February<br> 22, 2024, to March 1, 2025, with all other terms and conditions remaining the same. On March 1, 2024, the unamortized relative fair<br> value discount of $497,614 was removed with a corresponding adjustment to accumulated deficit. A $55,585 unamortized discount remained.<br> On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms and conditions<br> remaining the same. For the nine months ended November 30, 2025, the Company recorded amortization expense of $700, with an unamortized<br> discount of $0 at November 30, 2025. The loan is fully amortized.
(11)	The<br> unsecured note may be pre-payable at any time. Cash proceeds of $5,400,000<br> were received. The note balance of $6,000,000<br> includes an original issue discount of $600,000<br> and was issued with a warrant to purchase 300,000,000<br> shares at an exercise price of $0.135<br> per share with a 3-year<br> term and having a relative fair value of $4,749,005<br> using Black-Scholes with assumptions described in note 13. The discounts are being amortized over the term of the loan. After<br> allocating these charges to debt and equity according to their respective values, a debt discount of $4,749,005<br> with a corresponding adjustment to paid in capital for the relative value of the warrant. The maturity was extended from March 1,<br> 2022 to March 1, 2024 on February 28, 2022 in exchange for warrants to purchase 150,000,000<br> shares of common stock at an exercise price of $.0164<br> and a 3<br> year term. These warrants have a fair value of $2,850,000<br> recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. This<br> note has been fully amortized. This note was again extended to March 1, 2025. On<br> April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms and<br> conditions remaining the same. For the nine months ended November 30, 2025, the Company has issued 3,835,000,000<br> common shares at fair market value of $4,470,500<br> to repay $3,840,500<br> in loan principal with a loss on settlement of debt of $630,000.
(12)	The<br> note, with an original principal balance of $2,750,000, may be pre-payable at any time. The note balance includes an original issue<br> discount of $50,000 and was issued with a warrant to purchase 170,000,000 shares at an exercise price of $0.064 per share with a<br> 3-year term and having a relative fair value of $2,035,033. The discounts are being amortized over the term of the loan. After allocating<br> these charges to debt and equity according to their respective values, a debt discount of $2,035,033 with a corresponding adjustment<br> to paid in capital. The maturity date was extended from June 8, 2022 to June 8, 2024 on February 28, 2022 in exchange for warrants<br> to purchase 85,000,000 at an exercise price of $.0164 and a 3 year term. These warrants have a fair value of $1,615,000 recorded<br> as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. This note was<br> extended to June 8, 2025. On March 1, 2024, the unamortized relative fair value discount of $33,547 was removed with a corresponding<br> adjustment to accumulated deficit. A $4,121 unamortized discount remained. For the six months ended August 31, 2025, the Company<br> recorded amortization expense of $964, with an unamortized discount of $0 at August 31, 2025. The loan is fully amortized On April<br> 16, 2025, the parties again extended the maturity date from June 8, 2025, to June 8, 2027, with all other terms and conditions remaining<br> the same.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(13)	This<br> loan, with an original principal balance of $4,000,160, was in exchange for 184 Series F preferred shares from a former director.<br> The interest and principal are payable at maturity. The loan is unsecured. During the six months ended August 31, 2025 the Company<br> repaid $420,000 as part of a settlement with the estate of the lender. A settlement agreement was entered into on April 25,2025<br> between the Company and the Estate of the lender whereby the Company will repay a total of $420,000 to fully discharge the outstanding<br> loan balance and accrued interest which totaled $4,790,185. This settlement agreement was approved by the court on June 5, 2025.<br> Upon settlement in August 2025, the Company recorded a gain on settlement of debt of $4,370,185. At August 31, 2025 the outstanding<br> principal and interest was $0.
(14)	The<br> note, with an original principal balance of $1,650,000, may be pre-payable at any time. The note balance includes an original issue<br> discount of $150,000 and was issued with a warrant to purchase 250,000,000 shares at an exercise price of $0.037 per share with a<br> 3-year term and having a relative fair value of $1,284,783, The discounts are being amortized over the term of the loan. After allocating<br> these charges to debt and equity according to their respective values, a debt discount of $1,284,783 with a corresponding adjustment<br> to paid in capital. On March 1, 2024, the unamortized relative fair value discount of $572,549 was removed with a corresponding adjustment<br> to accumulated deficit. A $66,846 unamortized discount remained. For the nine months ended November 30, 2025, the Company recorded<br> amortization expense of $6,476, with an unamortized discount of $18,705 at November 30, 2025. On April 16, 2025, the parties again<br> extended the maturity date from September 14, 2025, to September 14, 2027, with all other terms and conditions remaining the same.
(15)	Original<br> $170,000 note may be pre-payable at any time. The note balance includes an original issue discount of $20,000. Principal and interest<br> due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. On November 29, 2023,<br> the parties extended the maturity date from July 28, 2023, to March 1, 2025, with all other terms and conditions remaining the same.<br> This note has been fully amortized. On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March<br> 1, 2027, with all other terms and conditions remaining the same.
(16)	A<br> warrant holder exchanged 955,000,000 warrants for a promissory note of $3,000,000, bearing interest at 15% with a two year maturity.<br> The fair value of the warrants was determined to be $2,960,500 with a corresponding adjustment to paid-in capital and a debt discount<br> of $39,500 which will be amortized over the term of the loan. Principal and interest due at maturity. On March 1, 2024, the unamortized<br> relative fair value discount of $11,535 was removed with a corresponding adjustment to accumulated deficit. This note has been fully<br> amortized. This note was extended to August 30, 2025. On April 16, 2025, the parties again extended the maturity date from August<br> 30, 2025, to August 30, 2027, with all other terms and conditions remaining the same.
(17)	Original<br> $400,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest<br> due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. On November 29, 2023,<br> the parties extended the maturity date from September 7, 2023, to March 1, 2025, with all other terms and conditions remaining the<br> same. This note has been fully amortized. On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to<br> March 1, 2027, with all other terms and conditions remaining the same.
(18)	Original<br> $475,000 note may be pre-payable at any time. The note balance includes an original issue discount of $75,000. Principal and interest<br> due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. On November 29, 2023,<br> the parties extended the maturity date from September 8, 2023, to March 1, 2025, with all other terms and conditions remaining the<br> same. This note has been fully amortized. On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to<br> March 1, 2027, with all other terms and conditions remaining the same.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

---

(19)	Original<br> $350,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest<br> due at maturity. Secured by a general security charging all of the Company’s present and after-acquired property. On November<br> 29, 2023, the parties extended the maturity date from October 13, 2023, to March 1, 2025, with all other terms and conditions remaining<br> the same. This note has been fully amortized. On April 16, 2025, the parties again extended the maturity date from March 1, 2025,<br> to March 1, 2027, with all other terms and conditions remaining the same.
(20)	On<br> October 28, 2022, the Company entered into an loan facility with a lender for up to $4,000,000 including an original issue discount<br> of $500,000. In exchange the Company will issue one series F Preferred Share, extended 329 series F warrants with a March 1, 2026<br> maturity to a new October 31, 2033 maturity, and issue up to 10 tranches with each tranche of $400,000, with cash proceeds of $350,000<br> an original issue discount of $50,000, October 31, 2026 maturity, and 61 Series F warrants with a October 31, 2033 maturity. Secured<br> by a general security charging all of the Company’s present and after-acquired property. At February 29, 2024 the Company has<br> issued all 10 tranches totaling $ 4,000,000 as follows:
	October<br> 28, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants and 1 Series F Preferred Share<br> having a relative fair value of $299,399. On March 1, 2024, the unamortized relative fair value discount of $286,775 was removed<br> with a corresponding adjustment to accumulated deficit. A $47,892 unamortized discount remained. For the nine months ended November<br> 30, 2025, the Company recorded amortization expense of $13,502, with an unamortized discount of $19,409 at November 30, 2025.
	November<br>9, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,750.<br>On March 1, 2024, the unamortized relative fair value discount of $288,513 was removed with a corresponding adjustment to accumulated<br>deficit. A $48,126 unamortized discount remained. For the nine months ended November 30, 2025, the Company recorded amortization expense<br>of $13,567, with an unamortized discount of $19,508 at November 30, 2025.

November

10, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $302,020. On March 1, 2024, the unamortized relative fair value discount of $291,694 was removed with a corresponding adjustment to accumulated deficit. A $48,290 unamortized discount remained. For the nine months ended November 30, 2025, the Company recorded amortization expense of $13,613, with an unamortized discount of $23,671 at November 30, 2025.

November

15, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. On March 1, 2024, the unamortized relative fair value discount of $287,814 was removed with a corresponding adjustment to accumulated deficit. A $47,976 unamortized discount remained. For the nine months ended November 30, 2025, the Company recorded amortization expense of $13,525, with an unamortized discount of $19,446 at November 30, 2025.

January

11, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. On March 1, 2024, the unamortized relative fair value discount of $286,813 was removed with a corresponding adjustment to accumulated deficit. A $48,124 unamortized discount remained. For the nine months ended November 30, 2025, the Company recorded amortization expense of $13,567, with an unamortized discount of $19,508 at November 30, 2025.

February

6, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. On March 1, 2024, the unamortized relative fair value discount of $288,342 was removed with a corresponding adjustment to accumulated deficit. A $48,294 unamortized discount remained. For the nine months ended November 30, 2025, the Company recorded amortization expense of $13,614, with an unamortized discount of $19,581 at November 30, 2025.

April

5, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $296,245. On March 1, 2024, the unamortized relative fair value discount of $286,821 was removed with a corresponding adjustment to accumulated deficit. A $48,409 unamortized discount remained. For the nine months ended November 30, 2025, the Company recorded amortization expense of $13,647, with an unamortized discount of $19,630 at November 30, 2025.

April

20, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $302,219. On March 1, 2024, the unamortized relative fair value discount of $294,824 was removed with a corresponding adjustment to accumulated deficit. A $48,777 unamortized discount remained. For the nine months ended November 30, 2025, the Company recorded amortization expense of $13,749, with an unamortized discount of $19,786 at November 30, 2025.

May

11, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $348,983. On March 1, 2024, the unamortized relative fair value discount of $348,831 was removed with a corresponding adjustment to accumulated deficit. A $49,978 unamortized discount remained. For the nine months ended November 30, 2025, the Company recorded amortization expense of $14,085, with an unamortized discount of $20,299 at November 30, 2025.

October

27 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $261,759. On March 1, 2024, the unamortized relative fair value discount of $254,487 was removed with six a corresponding adjustment to accumulated deficit. A $48,611 unamortized discount remained. For the nine months ended November 30, 2025, the Company recorded amortization expense of $13,703, with an unamortized discount of $19,715 at November 30, 2025.

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

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(21)	On<br> November 30, 2023, the Company entered into an agreement where the lender will pay the Company $350,000 in exchange for thirteen<br> future monthly payments of $36,750 commencing on April 30,2024 through to April 30, 2025 totaling $477,750. The effective interest<br> rate is 35% per annum. Secured by a general security charging all of RAD’s present and after-acquired property. Default rate<br> of 15% per annum calculated daily on any missed monthly payment and after maturity. The Company has repaid $147,000 and $53,000 in<br> accrued interest in July to account for the missed April through to August 2024 payments in agreement with the lender. The Company<br> have missed the subsequent monthly payments. On April 16, 2025, the parties again extended the maturity date from April 30, 2025,<br> to April 30, 2026, with all other terms and conditions remaining the same.
(22)	On<br> March 8, 2024, the Company entered into another agreement where the lender will pay the Company $350,000 in exchange for thirteen<br> future monthly payments of $36,750 commencing on August 8, 2024 through to August 8, 2025 totaling $477,750. The effective interest<br> rate is 35% per annum. Secured by a general security charging all of RAD’s present and after- acquired property. Default rate<br> of 15% per annum calculated daily on any missed monthly payment and after maturity. The August 2024 through to August 2025 payments<br> have not been made but will be resolved with the lender and the note was not repaid at maturity. The Company believes it will re-negotiate<br> the maturity date with the lender as it has done with similar loans. No notices have been sent.
(23)	Original<br> $165,000 note may be pre-payable at any time. The note balance includes an original issue discount of $15,000. Principal and interest<br> due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. The discount was<br> expensed.
(24)	Original<br> $245,000 note may be pre-payable at any time. The note balance includes an original issue discount of $25,000. Principal and interest<br> due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. The discount was<br> expensed.
(25)	Original<br> $137,500 note may be pre-payable at any time. The note balance includes an original issue discount of $12,500. Principal and interest<br> due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. The discount was<br> expensed.
(26)	On<br> August 25, 2025, the Company entered into Future Receivables Purchase and Sale Agreement secured by a general security charging all<br> of RAD’s present and after- acquired property. The Company received net proceeds of $555,671<br> after fees of $29,329 and<br> a financing fee of $222,300<br> for total fees of $251,629.<br> The Company must repay $807,300,<br> in weekly payments of 7%<br> of estimated receipts from accounts receivables. The estimated monthly payments will be approximately $99,725.<br> For the nine months ended November 30, 2025, the Company recorded amortization expense of $96,211,<br> with an unamortized discount of $155,418<br> at November 30, 2025. For the nine months ended November 30, 2025, the Company has repaid $308,674.
(27)	Original<br>$550,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest<br>due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the nine months ended<br>November 30, 2025, the Company recorded amortization expense of $8,031, with an unamortized discount of $41,969 at November 30, 2025.
(28)	Original<br> $200,000 note may be pre-payable at any time. The note balance includes an original issue discount of $25,000. Principal and interest<br> due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the nine months<br> ended November 30, 2025, the Company recorded amortization expense of $1,935, with an unamortized discount of $23,065 at November<br> 30, 2025.
(29)	Original<br> $275,000 note may be pre-payable at any time. The note balance includes an original issue discount of $25,000. Principal and interest<br> due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the nine months<br> ended November 30, 2025, the Company recorded amortization expense of $1,412, with an unamortized discount of 23,588 at November<br> 30, 2025.
(30)	Original<br>$450,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest<br>due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the nine months ended<br>November 30, 2025, the Company recorded amortization expense of $622, with an unamortized discount of 49,378 at November 30, 2025.

12.

STOCKHOLDERS’ EQUITY (DEFICIT)

Summaryor Preferred Stock Activity

SeriesC Convertible, Redeemable Preferred Stock (Temporary Equity)

On

February 10, 2025, in connection with a Share Purchase Agreement the Company created a new class of Series C Convertible Redeemable with 1,000 authorized shares.

In

exchange for 306 Series C Convertible Redeemable Preferred Shares, the Company received gross proceeds of $306,000 with net proceeds of $278,580 after paying $6,000 in legal fees and $21,420 in broker fees both charged against paid in capital. The Company must redeem the shares at stated capital of 1,200 per share and a 1.09 premium at 180 days after issuance, On August 9.2025. The Company recorded the 306 outstanding shares at its redemption value of $402,084 at February 28, 2025, with the offsetting adjustment to paid in capital. On May 10, 2025 the Company issued the 12% quarterly dividend in 9.19 Series C shares with a redemption value of $12,073. On August 9, 2025 the Company issued the 12% quarterly dividend in 9.46 Series C shares with a redemption value of $12,436. On August 9, 2025 the Company recorded a 35% penalty due to not redeeming the shares at the redemption date. The penalty amounted to 114 Series C shares at a value of $149,307. On August 25, 2025 the Company redeemed 95 Series C shares for $125,000. Included in that payment was a deemed dividend of $28,871. On November 7, 2025 the Company issued the 12% quarterly dividend in 10.3 Series C shares with a redemption value of $13,539. The Company recorded a penalty for not converting 96 shares of a value of $115,200 on September 22, 2025. The penalty was recorded as additional 314 Series C preferred shares at a value of $412,530 with a corresponding adjustment to paid in capital. The September 22, 2025 conversion was rescinded on December 5, 2025 and a new conversion was done for 84 series C shares for 199,446,429 common shares at a value of $100,800 on December 5, 2025. At November 30, 2025, 2025 there were 667 outstanding series C shares with a redemption value of $876,968. At February 28, 2025 there were 306 outstanding series C shares with a redemption value of $402,084.

Series F Convertible Preferred Shares

Each holder of Series F Convertible Preferred Shares may, at any time and from time to time convert all, but not less than all, of their shares into a number of fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares of common stock of the Company on the date of conversion by three and 45 100ths (3.45) on a pro rata basis.

Summaryof Preferred Stock Warrant Activity

SUMMARY

OF PREFERRED STOCK WARRANT ACTIVITY

	Number of <br> Series F <br> Preferred <br> Warrants		Weighted<br> <br>Average Exercise Price		Weighted<br> <br>Average Remaining Years
Outstanding at February 28, 2025		939	$	1.00		8.5
Issued		—		—		—
Exercised		—		—		—
Forfeited and cancelled		—		—		—
Outstanding at November 30, 2025		939	$	1.00		8.25

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Summaryof Common Stock Activity

The

Company’s board of directors voted to increase authorized common shares from 23,000,000,000 to 27,500,000,000 on October 15, 2025.

For the nine months ended November 30, 2025:

-

the Company issued 5,040,380,240 common shares with gross proceeds of $5,165,385 and net proceeds of $4,801,184 after issuance costs of $364,161.

-

the Company issued 3,835,000,000 common shares to repay $3,840,500 in loans payable and $37,500 in accrued interest all totaling $3,803,000.

Summaryof Common Stock Warrant Activity

For

the three months and nine months ended November 30, 2025 and November 30, 2024, the Company recorded a total of $80,355 and $83,323, and $241,065 and $249,969 respectively, to stock-based compensation for options and warrants with a corresponding adjustment to additional paid-in capital.

SUMMARY

OF COMMON STOCK WARRANT ACTIVITY

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Years
Outstanding<br> at February 28, 2025		47,271,449	$	0.003		2.44
Issued		—		—		—
Exercised		—		—		—
Forfeited<br> and cancelled		—		—		—
Outstanding<br> at November 30, 2025		47,271,449	$	0.001		1.68

Summaryof Common Stock Option Activity -Employee Stock Options

SUMMARY

OF COMMON STOCK OPTION ACTIVITY

	Number of Options		****	Weighted Average Exercise Price		Weighted Average Remaining Years		****
Outstanding<br> at March 1, 2025		182,228,131		$	0.02		3.10
Issued		—			—		—
Exercised		—			—		—
Forfeited,<br> extinguished and cancelled		(3,322,058	)	$	0.02		(2.99	)
Outstanding<br> at November 30, 2025		178,906,073		$	0.02		2.35

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

13.

COMMITMENTS AND CONTINGENCIES

Litigation

Occasionally, the Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision for a liability when it believes that is both probable that a liability has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s condensed consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions.

The related legal costs are expensed as incurred.

On

September 24, 2024, a prospective lender filed a claim against the Company for an alleged breach of a non-binding term sheet made on June 7, 2024. The Company and its counsel believe the claim is without merit however the courts have mandated mediation. After consideration of business factors the parties executed a settlement agreement in June 2025 with the Company agreeing to pay $65,000 with no admission of wrongdoing. The Company paid the $65,000 on August 1, 2025.

OperatingLease

On

March 10, 2021, the Company entered into a 10 year lease agreement for a manufacturing facility at 10800 Galaxie Avenue, Ferndale, Michigan, 48220, commencing on May 1, 2021 through to April 30, 2031 with a minimum base rent of $15,880 per month. The base rent increase by 3% per annum commencing May 1, 2024. The Company paid a security deposit of $15,880.

On

February 5, 2024, the Company entered into a 3-year lease agreement for a vehicle commencing February 5, 2024 through to February 5, 2027 with a minimum base rent of $1,223 per month. The Company paid a down payment of $9,357.

On

March 11, 2025, the Company entered into a 3-year lease agreement for a vehicle commencing March 11, 2025 through to March 11, 2028 with a minimum base rent of $1,286 per month. The Company paid a down payment of $13,188. The Company recorded the right of use asset of $53,739 with a corresponding adjustment to operating lease liability.

The

Company’s leases are accounted for as operating leases. Rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. Rent expense and operating lease cost was $61,295 and $182,092 for the three and nine months ended November 30, 2025, respectively, and $57,875 and $182,855 for the three and nine months ended November 30, 2024 respectively.

Summary of rent expense and operating lease cost are recorded over the lease terms on a straight-line basis.

SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES

Maturity of Lease Liabilities	Operating<br><br> <br>Leases
November<br> 30, 2026	$	245,173
November<br> 30, 2027		230,348
November<br> 30, 2028		212,514
November<br> 30, 2029		207,558
November<br> 30, 2030		207,558
November<br> 30, 2031 and after		86,482
Total<br> lease payments		1,189,633
Less:<br> Interest		(232,618	)
Present<br> value of lease liabilities	$	957,015

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ARTIFICIAL

INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES

TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

14.

EARNINGS (LOSS) PER SHARE

The net income (loss) per common share amounts were determined as follows:

SCHEDULE OF NET INCOME (LOSS) PER COMMON SHARE

	2025		****	2024		****	2025		****	2024		****
	For the Three Months Ended					****	For the Nine Months Ended					****
	November 30,					****	November 30,					****
	2025		****	2024		****	2025		****	2024		****
Numerator:
Net<br> income (loss) available to common shareholders	$	(4,730,800	)	$	(3,703,974	)	$	(8,561,753	)	$	(11,828,656	)
Effect<br> of common stock equivalents
Deduct<br> : Dividend on Series B shares		—			—			(29,871	)		(89,189	)
Deduct:<br> Deemed dividend on redemption of Series F shares		—			—			—			(334,187	)
Net<br> income (loss) adjusted for common stock equivalents		(4,730,800	)		(3,703,974	)		(8,591,624	)		(12,252,032	)
Denominator:
Weighted<br> average shares – basic		21,820,801,041			12,161,286,427			18,590,935,695			11,071,139,695
Net<br> income (loss) per share – basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Dilutive<br> effect of common stock equivalents:
Convertible<br> Debt		—			—			—			—
Preferred<br> shares		—			—			—			—
Warrants		—			—			—			—
Total		—			—			—			—
Denominator:
Weighted<br> average shares – diluted		21,820,801,041			12,161,286,427			18,590,935,695			11,071,139,695
Net<br> income (loss) per share – diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

The anti-dilutive shares of common stock equivalents for the three and nine months ended November 30, 2024 and 2023 were as follows:

SCHEDULE OF ANTI-DILUTIVE SHARES OF COMMON STOCK EQUIVALENTS

	2025		2024		2025		2024
	For the Three Months Ended				For the Nine Months Ended
	November 30,				November 30,
	2025		2024		2025		2024
Convertible<br> Series F Preferred Shares*		80,343,027,328		43,406,765,095		80,343,027,328		43,406,765,095
Series<br> C Preferred Shares		1,218,011,111		—		1,218,011,111		—
Stock<br> options and warrants		226,177,522		232,927,455		226,177,522		232,927,455
Total		81,787,215,961		43,639,692,550		81,787,215,961		43,639,692,550

15.

SUBSEQUENT EVENTS

Subsequent to November 30, 2025:

—

The Company issued 1,800,000,000 common shares to repay $1,080,000 in loans payable.

—

On December 5, 2025 the Series C preferred shareholder converted 84 series C shares for 199,446,429 common shares at a value of $100,800.

—

On December 9, 2025 the Company issued a promissory note to a lender for $450,000 with cash proceeds of $400,000 and an original issue discount of $50,000. The loan bears interest at 15%, matures in 1 year and has a general security charging all of the Company’s present and after-acquired property.

—

On December 17, 2025 the Company issued a promissory note to a lender for $275,000 with cash proceeds of $250,000 and an original issue discount of $25,000. The loan bears interest at 15%, matures in 1 year and has a general security charging all of the Company’s present and after-acquired property.

—

On December 22, 2025 the Company issued a convertible, redeemable note to a lender for $495,000 with cash proceeds of $450,000 and an original issue discount of $45,000. The loan bears interest at 12%, the note is redeemable by the Company at any time subject to a premium, matures in 1 year and converts at 80% of the lowest trading price 15 trading days prior to the conversion date including the conversion date. Interest is payable in common shares at either the redemption date or maturity.

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ITEM

2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-LookingStatements

The following discussion of our financial condition and results of operations for the three and nine months ended November 30, 2025 and November 30, 2024 should be read in conjunction with our unaudited consolidated financial statements and the notes to those statements that are included elsewhere in this report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under Item 1A. Risk Factors appearing in our Annual Report on Form 10-K for the year ended February 28, 2025, as filed on May 29, 2025 with the SEC. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions to identify forward-looking statements.

Unless expressly indicated or the context requires otherwise, the terms “AITX”, the “Company”, “we”, “us”, and “our” refer to Artificial Intelligence Technology Solutions Inc.

Overview

AITX was incorporated in Florida on March 25, 2010. AITX reincorporated into Nevada on February 17, 2015. AITX’s fiscal year end is February 28 (February 29 during leap year). AITX is located at 10800 Galaxie Ave., Ferndale Michigan, 48220, and our telephone number is 877-767-6268.

AITX’s mission is to apply Artificial Intelligence (AI) technology to solve enterprise problems categorized as expensive, repetitive, difficult to staff, and outside of the core competencies of the client organization.

A short list of basic examples include:

1.	Typical<br> security guard-related functions such as monitoring a parking lot during and after hours and responding appropriately. This scenario<br> applies to perimeters, interior yard areas, and related similar environments.
2.	Integrated<br> hardware/software with AI-driven responses, simulating and expanding on what legacy or manned solutions could perform.
3.	Automation<br> of common access control functions through technology utilizing facial recognition and machine vision, leapfrogging most legacy solutions<br> in use today.

RAD solutions are unique because they:

1.	Start<br> with an AI-driven autonomous response utilizing cellular-optimized communications, while easily connecting to a human operator for<br> a manned response, as needed.
2.	Use<br> unique hardware purpose-built by RAD for delivery of these solutions. Various form factors have been customized to deliver this new<br> functionality.
3.	Deliver<br> services through RAD-developed software and cloud services, allowing enterprise IT groups to focus on core competencies instead of<br> maintenance of complex video and security platforms.

We encourage everyone to ensure they have the most up to date news by visiting AITX at AITX News - AITX - Artificial Intelligence Technology Solutions.

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ManagementDiscussion and Analysis

Resultsof Operations for the Three Months Ended November 30, 2025, and 2024

The following table shows our results of operations for the three months ended November 30, 2025, and 2024. The historical results presented below are not necessarily indicative of the results that may be expected for any future period.

	Period						Change
	Three Months Ended<br> <br>November 30, 2025			Three Months Ended<br> <br>November 30, 2024			Dollars			Percentage
Revenues	$	2,010,158		$	1,750,968		$	259,190			15	%
Gross profit		1,300,452			1,173,830			126,622			11	%
Operating expenses		3,931,952			3,476,728			455,224			13	%
Loss from operations		(2,631,500	)		(2,302,898	)		(328,602	)		(14	)%
Other income (expense), net		(2,099,300	)		(1,401,076	)		(698,224	)		(50	)%
Net loss	$	(4,730,800	)	$	(3,703,974	)	$	(1,026,826	)		(28	)%

Revenue

The following table presents revenues from contracts with customers disaggregated by product/service:

	Three Months<br> <br>Ended<br><br> <br>November 30,		Three Months<br> <br>Ended<br><br> <br>November 30,		Change
	2025		2024		Dollars			Percentage
Device rental activities	$	1,807,083	$	1,429,112	$	377,971			26	%
Direct sales of goods and services		203,075		321,856		(118,781	)		(37	)%
Total revenues	$	2,010,158	$	1,750,968	$	259,190			15	%

Total revenue for the three-month period ended November 30, 2025, was $2,010,158 which represented an increase of $259,190 compared to total revenue of $1,750,968 for the three months ended November 30, 2024. There has been a 15% increase in revenues as a result of higher rental activities growing each quarter through the deployment of new revenue earning devices.

Grossprofit

Total gross profit for the three-month period ended November 30, 2025, was $1,173,830, which represented an increase of $126,622 compared to gross profit of $1,173,830 for the three months ended November 30, 2024. The gross profit increased due to the higher sales. The gross profit % of 65% for the three-month period ended November 30, 2025, was slightly lower than the gross profit % of 67% for the prior year’s corresponding period.

OperatingExpenses

	Period				Change					****
	Three Months Ended<br><br> <br>November 30, 2025		Three Months Ended<br><br> <br>November 30, 2024		Dollars		****	Percentage		****
Research<br> and development	$	1,096,970	$	579,045	$	517,925			89	%
General<br> and administrative		2,737,329		2,733,547		3,782			0	%
Depreciation<br> and amortization		36,358		106,261		(69,903	)		(66	)%
Operating<br> lease cost and rent		61,295		57,875		3,420			6	%
Total<br>operating expenses	$	3,931,952	$	3,476,728	$	455,224			13	%

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Our operating expenses were comprised of general and administrative expenses, research and development, and depreciation. General and administrative expenses consisted primarily of professional services, automobile expenses, advertising, salaries and wages, travel expenses and consultants. Our operating expenses during the three-month period ended November 30, 2025, and November 30, 2024, were $3,931,952 and $3,476,728, respectively. The overall increase of $455,224 was primarily attributable to the following changes in operating expenses of:

●	General<br> and administrative expenses increased by $3,782. There were no significant changes.
●	Research<br> and development increased by $517,925 as the Company continues to develop new hardware and software solutions.
●	Depreciation<br> and amortization decreased by $60,903 due to changes in estimates for the allocation of revenue earning devices not in use.
●	Operating<br> lease cost and rent increased by $3,420 due to one more lease in the current period.

OtherIncome (Expense)

Other income (expense) during the three months ended November 30, 2024, and November 30, 2023, was ($2,099,300) and ($1,401,076), respectively. The $698,224 increase in other expense was due to higher interest expense and a loss on settlement of debt.

Netloss

We had a net loss of $4,730,800 for the three months ended November 30, 2025, compared to a net loss of $3,703,974 for the three months ended November 30, 2024. The increase in net loss of $1,026,826 is due to a number of factors: higher research and development expenses partially offset by higher gross profit in the three months ended November 30, 2025.

Resultsof Operations for the Nine Months Ended November 30, 2025, and 2024

The following table shows our results of operations for the nine months ended November 30, 2025, and 2024. The historical results presented below are not necessarily indicative of the results that may be expected for any future period.

Revenue

	Period					****	Change					****
	Nine Months Ended<br><br> <br>November 30, 2025			Nine Months Ended<br><br> <br>November 30, 2024			Dollars			Percentage
Revenues	$	5,753,744		$	4,277,951		$	1,475,793			34	%
Gross<br>profit		3,878,818			2,860,255			1,018,563			36	%
Operating<br>expenses		11,998,145			10,610,283			1,387,862			13	%
Loss<br>from operations		(8,119,327	)		(7,750,028	)		(369,299	)		(5	)%
Other<br>income (expense), net		(442,426	)		(4,078,628	)		3,636,202			89	%
Net<br>loss	$	(8,561,753	)	$	(11,828,656	)	$	3,266,903			28	%

The following table presents revenues from contracts with customers disaggregated by product/service:

	Nine Months<br><br> <br>Ended<br><br> <br>November 30,		Nine Months<br><br> <br>Ended<br><br> <br>November 30,		Change				****
	2025		2024		Dollars		Percentage		****
Device<br> rental activities	$	5,129,840	$	3,475,546	$	1,654,294		48	%
Direct<br> sales of goods and services		623,904		802,405		(178,501)		(22	)%
Total<br>revenues	$	5,753,744	$	4,277,951	$	1,475,793		34	%

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Total revenue for the nine-month period ended November 30, 2025, was $5,753,744 which represented an increase of $1,475,793 compared to total revenue of $4,277,951 for the nine months ended November 30, 2024. This 34% increase was because of higher rental activities partially offset by lower direct sales for the year to date November 30, 2025.

Grossprofit

Total gross profit for the nine-month period ended November 30, 2025, was $3,878,818 which represented an increase of $1,018,563, compared to gross profit of $2,860,255 for the nine months ended November 30, 2024. The gross profit increased due to the higher sales. The gross profit percentage of 67% for the nine-month period ended November 30, 2025, was slightly lower than the gross profit percentage of 69% for the prior year’s corresponding period.

OperatingExpenses

	Period				Change					****
	Nine Months Ended<br><br> <br>November 30, 2025		Nine Months Ended<br><br> <br>November 30, 2024		Dollars		****	Percentage		****
Research<br> and development	$	3,104,303	$	1,897,165	$	1,207,138			64	%
General<br> and administrative		8,604,371		8,220,564		383,807			5	%
Depreciation<br> and amortization		107,379		309,699		(202,320	)		(65)	%
Operating<br> lease cost and rent		182,092		182,855		(763	)		(0	)%
Total<br> Operating expenses	$	11,998,145	$	10,610,283	$	1,387,862			13	%

General and administrative expenses consisted primarily of professional services, automobile expenses, advertising, salaries and wages, travel expenses and consultants. Our operating expenses during the six-month period ended November 30, 2025 and November 30, 2024, were $11,998,145and $10,610,283, respectively. The overall increase of $1,387,862 was primarily attributable to the following changes in operating expenses of:

●	General<br> and administrative expenses increased by $383,807. In comparing the nine months ended November 30, 2025, and November 30, 2024 the<br> increase may be partially explained by the following increases: wages and salaries by $337,125, sub-contractors by $265,245 and office<br> expenses by $88,545. These were partially offset by decreases in the following accounts: installation costs by $85,402, professional<br> fees by $58,326, repairs and maintenance by $39,911 and freight by $63,997.
●	Research<br> and development increased by $1,207,138 due to an increase in software development and new products such as the ROAMEO.
●	Depreciation<br> and amortization decreased by $202,320 due to due to changes in estimates for the allocation of revenue earning devices not in use.
●	Operating<br> lease cost and rent decreased by $763 due to the reduction of one lease offset by the addition of another.

OtherIncome (Expense)

Other income (expense) during the nine months ended November 30, 2025, and November 30, 2024, was ($442,426) and ($4,078,628), respectively. The $3,636,202 decrease in other expense was primarily attributable to the gain on settlement of debt of $3,740,185 offset by an increase in interest expense.

Netloss

We had a net loss of $8,561,753 for the nine months ended November 30, 2025, compared to a net loss of $11,828,656 for the nine months ended November 30, 2024. The decrease in net loss of $3,266,903 is due to a number of factors: higher gross profit and lower other expenses (due to gain on settlement of debt) offset by higher operating expenses for the nine months ended November 30, 2025.

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Liquidity,Capital Resources and Cash Flows

Management believes that we will continue to incur losses for the immediate future. Therefore, we will need additional equity or debt financing until we can achieve profitability and positive cash flows from operating activities, if ever. These conditions raise substantial doubt about our ability to continue as a going concern. Our unaudited condensed consolidated financial statements do not include and adjustments relating to the recovery of assets or the classification of liabilities that may be necessary should we be unable to continue as a going concern.

As of November 30, 2025, we had a cash balance of $143,801, accounts receivable of $1,306,020, device parts inventory of $1,138,333 and $17,117,268 in current liabilities. At the current cash consumption rate, we will need to consider additional funding sources going forward. We are taking proactive measures to reduce operating expenses and drive growth in revenue.

The successful outcome of future activities cannot be determined at this time and there is no assurance that, if achieved, we will have sufficient funds to execute our intended business plan or generate positive operating results.

CapitalResources

The following table summarizes total current assets, liabilities and working capital (deficit) for the periods indicated:

	November 30, 2025		****	February 28, 2025		****
Current<br> assets	$	3,093,439		$	5,028,543
Current<br> liabilities		17,117,268			7,576,681
Working<br> capital	$	(14,023,829	)	$	(2,548,138	)

As of November 30, 2025 and February 28, 2025, we had a cash balance of $143,801 and $865,975, respectively.

Summary of Cash Flows	Nine Months Ended<br><br> <br>November 30, 2025			Nine Months Ended<br><br> <br>November 30, 2024
Net<br> cash used in operating activities	$	(7,451,163	)	$	(8,894,284	)
Net<br> cash used in investing activities	$	(12,861	)	$	(77,868	)
Net<br> cash provided by financing activities	$	6,741,850		$	8,950,457

Netcash used in operating activities.

Net cash used in operating activities for the nine months ended November 30, 2025, was $7,451,163 which included a net loss of $8,561,753, non-cash activity such as the bad debts expense of $141,482, reduction of right of use asset of $104,585, accretion of lease liability $79,294, stock based compensation of $241,065,penalty added to face value of loan of $16,560, gain on settlement of debt of $3,740,185, change in operating assets and liabilities of $2,301,738, amortization of debt discount of $301,615, increase in related party accrued payroll and interest of $108,619 and depreciation and amortization of $1,555,817 to derive the uses of cash in operations.

Netcash used in investing activities.

Net cash used in investing activities for the nine months ended November 30, 2025, was $12,861 which was the purchase of fixed assets of $10,863, and $1,998 for acquisition of trademarks.

Netcash provided by financing activities.

Net cash provided by financing activities was $6,741,850 for the nine months ended November 30, 2025. This consisted of share proceeds net of issuance costs of 5,219,853, proceeds from loans payable of $2,375,671, reduced by repayments on loans payable of $728,604 and the redemption of Series C redeemable convertible preferred shares of $125,000.

Off-BalanceSheet Arrangements

None.

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CriticalAccounting Policies and Estimates

Critical accounting policies and estimates are further discussed in our Annual Report on Form 10-K for the year ended February 28, 2025, as filed on May 29, 2025.

RelatedParty Transactions

For both the three months and nine months ended November 30, 2025 and November 30, 2024, the Company had no repayments of net advances from its loan payable-related party. At November 30, 2025, the loan payable-related party was $437,984 and $329,635 at February 28, 2025. Included in the balance due to the related party at November 30, 2025 is $361,452 of deferred salary and interest, $239,600 of which bears interest at 12%. As of February 28, 2025, included in the balance due to the related party is $252,833 of deferred salary and interest, $190,013 of which bears interest at 12%. The accrued interest included in the loan at November 30, 2025, and February 28, 2025, was $70,689, and $51,575, respectively.

During the nine months ended November 30, 2025, the Company paid out gross payments to the CEO of $1,560,370 offset by a bonus accrual of $750,000, which yields a net change of $810,370 relating to deferred compensation for CEO. This was all in accordance with a December 2023 board action allowing for $1 million of annual discretionary compensation as well as a February 28, 2025, board action which provided an additional $1.5 million in compensation. The balance of deferred compensation for CEO was $1,392,230 and $2,202,600 at November 30, 2025, and February 28, 2025, respectively

For the three and nine months ended November 30, 2025, the Company accrued $0 (three and nine months ended November 30, 2024-$0) of incentive compensation plan payable to the CEO. This would be payable in Series G Preferred Shares which are redeemable at the Company’s option at $1,000 per share. At November 30, 2025, and February 28, 2025, there was $4,000,000 and $4,000,000 of incentive compensation payable.

During the three months ended November 30, 2025, and 2024, the Company was charged $655,721 and $556,175, respectively for fees for research and development from a company partially owned by a principal shareholder.

During the nine months ended November 30, 2025, and 2024, the Company was charged $1,990,873 and $1,846,005, respectively for fees for research and development from a company partially owned by a principal shareholder. The principal shareholder received no compensation from this partially owned research and development company and the fees were spent on core development projects. As at both November 30, 2025, and February 28, 2025, the balance due to this company was $76,532.

ITEM

3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable for a smaller reporting company.

ITEM

4. CONTROLS AND PROCEDURES

Management’sReport on Internal Control over Financial Reporting

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of November 30, 2025. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of November 30, 2025, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed by us under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

1.

As<br> of November 30, 2025, we did not maintain effective controls over our control environment. Specifically, we have not developed and<br> effectively communicated to our employees our accounting policies and procedures. This has resulted in inconsistent practices. Further,<br> the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial<br> expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization,<br> management has determined that these circumstances constitute a material weakness.

2.

As<br> of November 30, 2025, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not<br> designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly,<br> management has determined that this control deficiency constitutes a material weakness.

Our management, including our principal executive officer and principal financial officer, do not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

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PART

II — OTHER INFORMATION

ITEM

1. LEGAL PROCEEDINGS

None.

ITEM

1A. RISK FACTORS

This item is not applicable to smaller reporting companies.

ITEM

2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Each issuance of securities was issued without registration in reliance of the exemption from registration Section 3(a)9 of the Securities Act of 1933.

ITEM

3. DEFAULTS UPON SENIOR SECURITIES

The Company has not defaulted upon senior securities.

ITEM

4. MINE SAFETY DISCLOSURES

Not applicable to the Company.

ITEM

5. OTHER INFORMATION

None.

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ITEM

6. EXHIBITS

Exhibit No.	Description of Document
3.1	Articles of Incorporation (1)
3.2	Bylaws (2)
14	Code of Ethics (2)
21	Subsidiaries of the Registrant (3)
31.1	Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer. (3)
31.2	Rule 13(a)-14(a)/15(d)-14(a) Certification of principal financial and accounting officer. (3)
32.1	Section 1350 Certification of principal executive officer. (3)
32.2	Section 1350 Certification of principal financial accounting officer. (3)
101.INS	Inline<br> XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded<br> within the Inline XBRL document. (3)
101.SCH	Inline<br> XBRL Taxonomy Extension Schema Document (3)
101.CAL	Inline<br> XBRL Taxonomy Extension Calculation Linkbase Document (3)
101.DEF	Inline<br> XBRL Taxonomy Extension Definition Linkbase Document (3)
101.LAB	Inline<br> XBRL Taxonomy Extension Label Linkbase Document (3)
101.PRE	Inline<br> XBRL Taxonomy Extension Presentation Linkbase Document (3)
104	Cover<br> Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) (3)
(1)	Incorporated<br> by reference to our Form 10-KT file with the Securities and Exchange Commission on March 12, 2018.
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(2)	Incorporated<br> by reference to our Form S-1 filed with the Securities and Exchange Commission on August 4, 2010.
(3)	Filed<br> or furnished herewith.

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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 thereunto duly authorized.

	Artificial<br> Intelligence Technology Solutions Inc.
Date:<br> January 14, 2026	BY:	/s/ Steven Reinharz
		Steven Reinharz
		President, Chief Executive Officer (principal executive officer)
Date:<br> January 14, 2026	BY:	/s/ Anthony Brenz
		Anthony Brenz
		Chief Financial Officer (principal financial officer)

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Exhibit 21.1

Artificial Intelligence Technology Solutions Inc.

Subsidiaries

Name	Jurisdiction of Incorporation
Robotic Assistance Devices, Inc.	Nevada
Robotic Assistance Devices Group, Inc.	Nevada
Robotic Assistance Devices Mobile, Inc.	Nevada
Robotic Assistance Devices Residential, Inc	Nevada
Robotic Assistance Devices Lanka (Private) Limited	Sri Lanka

Exhibit 31.1

RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Steven Reinharz, certify that:

1. I have reviewed this Form 10-Q for the period ended November 30, 2025 of Artificial Intelligence Technology Solutions Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 14, 2026	BY:	/s/ Steven Reinharz
		Steven Reinharz
		President, Chief Executive Officer (principal executive officer)

Exhibit31.2

RULE13A-14(A)/15D-14(A) CERTIFICATION

I, Anthony Brenz, certify that:

1. I have reviewed this Form 10-Q for the period ended November 30, 2025 of Artificial Intelligence Technology Solutions Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:<br> January 14, 2026	BY:	/s/ Anthony Brenz
		Anthony Brenz
		Chief Financial Officer (principal financial officer)

Exhibit32.1

SECTION1350 CERTIFICATION

In connection with the quarterly report of Artificial Intelligence Technology Solutions Inc. (the “Company”) on Form 10-Q for the period ended November 30, 2025 as filed with the Securities and Exchange Commission (the “Report”), I, Steven Reinharz, President of the Company, certify, pursuant to 18 U.S.C. SS. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The<br> Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The<br> information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of<br> the Company.
Date:<br> January 14, 2026	BY:	/s/ Steven Reinharz
---	---	---
		Steven Reinharz
		President, Chief Executive Officer (principal executive officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit32.2

SECTION1350 CERTIFICATION

In connection with the quarterly report of Artificial Intelligence Technology Solutions Inc. (the “Company”) on Form 10-Q for the period ended November 30, 2025 as filed with the Securities and Exchange Commission (the “Report”), I, Anthony Brenz, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. SS. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.	The<br> Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The<br> information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of<br> the Company.
Date:<br> January 14, 2026	BY:	/s/ Anthony Brenz
---	---	---
		Anthony Brenz
		Chief Financial Officer (principal financial officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.