Artificial Intelligence Technology Solutions Inc. (AITX) has released its consolidated financial statements for the fiscal year ended February 28, 2023. The company reported a net loss of $18.1 million during the period, accompanied by total revenue of $1.3 million. Let's take a closer look at AITX's financial performance and key highlights from the report.
Financial Performance: Net Loss of $18.1 Million
AITX experienced a net loss of $18.1 million in the fiscal year 2023, reflecting the company's financial challenges during the period. This loss can be attributed to various factors, including operating expenses and interest expenses related to debt and warrants. It is important to note that the net loss per share remained at $0.00 for both basic and diluted shares.
Revenue: $1.3 Million Generated
Despite the net loss, AITX managed to generate $1.3 million in revenue during the fiscal year 2023. This revenue was derived from the company's operations and reflects its ability to secure contracts and deliver its products and services. However, the revenue figure indicates a decrease compared to the previous fiscal year's revenue of $1.4 million.
Overview of Consolidated Balance Sheets
Looking at the consolidated balance sheets, AITX's total assets decreased from $9.3 million in February 2022 to $6.3 million in February 2023. This decline can be attributed to reduced cash holdings and a decrease in accounts receivable and device parts inventory. The company's current liabilities increased to $16 million, mainly due to advances payable, operating lease liabilities, and loans payable.
Overview of Consolidated Statements of Operations
AITX's consolidated statements of operations provide insights into the company's financial performance. The gross profit for the fiscal year 2023 amounted to $653,883, resulting from deducting the cost of goods sold from the generated revenue. However, operating expenses, including research and development, general and administrative expenses, depreciation and amortization, and operating lease costs, contributed to a loss from operations of $12.7 million.
Financing Activities and Stockholders' Deficit
The consolidated statement of stockholders' deficit shows a deficit of $31.8 million for the fiscal year 2023, reflecting the cumulative losses incurred by the company. The deficit is primarily driven by the accumulated deficit of $112.3 million. Despite the deficit, the company's additional paid-in capital increased to $80.2 million.
AITX faced financial challenges during the fiscal year 2023, reporting a net loss of $18.1 million. However, the company generated $1.3 million in revenue, demonstrating its ability to generate sales. As AITX continues its operations, it will aim to improve its financial position and work toward profitability in the future.