AITX Announces Measurable and Disciplined Operating Expense Reductions

Core Insights - The company has implemented disciplined operating expense reductions year over year, reflecting a shift towards tighter execution and improved operational control as it prepares for the end of its fiscal year on February 28, 2026 [1][2] Financial Management - Over the past nine months, the company has streamlined operations and aligned spending with near-term execution goals, resulting in a more mature operating posture and responsible financial management [2] - Payroll expenses are expected to decrease from approximately $760,000 per month in 2025 to about $630,000 starting March 1, 2026, due to workforce realignment and delayed investments [3] - Additional monthly operating expense reductions of approximately $50,000 have been achieved through improved purchasing practices and vendor management, positively impacting cash flow [3] Strategic Focus - The company has paused further R&D investments in its HERO and RADDOG mobile robotic initiatives while transitioning ROAMEO™ into active production, concentrating efforts on initiatives that drive near-term impact [4] - The CEO emphasized that these changes are aimed at reducing cash flow burn and achieving operational cash flow positive performance around May 2026 [5] Industry Position - The company operates within the nearly $50 billion US security and guarding services industry, offering AI-driven solutions that can save businesses between 35%-80% compared to traditional manned security [6] - The company has a prospective sales pipeline of over 35 Fortune 500 companies, indicating strong potential for recurring revenue generation [10] Operational Validation - The company's operations and internal controls have been validated through a successful SOC 2 Type 2 audit, enhancing its credibility with enterprise and government clients [7]