AITX grows revenue excluding its largest customer 61% from a year earlier as cash sits at $220,275

Artificial Intelligence Technology Solutions reported revenue of $1,985,604 for its fiscal second quarter ended August 31, 2026, up 5% from a year earlier and 8% sequentially, as sales to every customer other than its largest rose 61% to a record $1,627,444. The quarterly report filed the day before the release shows $220,275 of cash against $58,906,967 of current liabilities.

AITX sells security robots and remote monitoring through its Robotic Assistance Devices subsidiaries. The earnings exhibit, filed on the morning of October 21, 2026, covers the fiscal second quarter and labels each comparison as year over year or sequential; the financial statements themselves sit in a separate Form 10-Q filed the previous afternoon.

Revenue mix shifts away from a single account

The largest customer paid $358,160 in the quarter, down 3% sequentially and 18% of revenue, against 46% a year earlier; that account began cutting its own spend in December 2025. Because its sharpest drop, a 50% sequential fall, was booked in the prior quarter, the rest of the book now carries the total. Device rental, the recurring line, was $1,765,293, up 4% from a year earlier, and at 89% of revenue it annualizes to approximately $7.1 million. Direct sales of $220,311 rose 14%. The five largest customers accounted for about 50% of revenue against about 73% a year earlier, and revenue from customers outside that group rose 91%. Steve Reinharz, the chief executive, chief technology officer and founder, said: "Revenue from customers other than our largest, now 82% of our total revenue, grew 61% year-over-year and set a record."

A write-down separates reported margin from the underlying one

Gross profit was $1,063,301, or 54% of revenue, after a $270,987 non-cash inventory write-down on a discontinued residential camera line. Adding it back gives $1,334,288, or 67%, above the 65% recorded in the first quarter but below $1,344,865, or 71%, a year earlier. The same split runs through the operating line: the quarterly operating loss of $2,680,396 becomes $2,409,409 once the write-down is excluded, against $2,709,364 in the first quarter. Six-month operating expenses fell 5% to $7,636,884 from $8,066,193, with general and administrative costs down 6%, or $380,193. Only one month of the August cost program is inside those numbers.

The exhibit is silent on cash; the 10-Q is not

Nothing in the earnings release mentions the balance sheet, and that is where the risk sits. Cash was $220,275 on August 31 against $109,043 six months earlier. Total current liabilities reached $58,906,967 from $19,952,748, leaving a working-capital deficit of $55,894,870 and an accumulated deficit of $184,084,880. The current portion of loans payable rose to $32,779,837 from $8,848,140. Loans payable totaled $37,212,329, of which $33,728,024 was owed to companies controlled by one individual. Net loss for the six months widened to $12,554,310 from $3,830,953 as interest, discount amortization and derivative charges grew, even though the operating loss narrowed slightly to $5,389,759 from $5,487,827. Operating activities used $4,820,842 of cash, against $5,400,554 a year earlier, and financing activities provided $4,948,512. The going-concern note states the consequence bluntly: "Without additional capital, the Company will not be able to remain in business."

Breakeven targets now sit in calendar 2027

The near-term objective is monthly operating cash breakeven, defined as revenue exceeding operating cash expenses excluding debt service and device builds, in January 2027, with all-in cash breakeven in the second calendar quarter of 2027. Both replace a December 2026 objective that measured monthly billings against operating expenses. The expanded cost program announced on October 20, 2026 is expected to save more than $350,000 per month from February 2027. Reinharz said: "At the same time, I am extremely focused on cost. The program we announced in August is underway, and yesterday we expanded it." The company also said the launch of RAIA remains on track for the fiscal third quarter, which runs from September through November 2026. The next dated checkpoint is the fiscal third-quarter report covering September through November 2026, which should carry a full quarter of program savings and the answer on whether that launch happened, alongside whatever financing replaces the $10,000,000 equity line of which approximately $9.8 million remains available.