Artificial Intelligence Technology Solutions Inc. has announced a new initiative aimed at stabilizing its financial standing. The company’s CEO, Steve Reinharz, has deferred his full salary and committed to forgo any salary or bonus payments through the end of the fiscal year, which ends on February 28, 2027. This move is part of the company's broader balance sheet stability program, which aims to achieve its first breakeven milestone by January 2027.

Founded as a developer of AI-driven security and productivity solutions, Artificial Intelligence Technology Solutions Inc. operates under the ticker AITX on the OTC exchange. The company is categorized under the SIC code 7372, which refers to Services-Prepackaged Software. Its recent filings include multiple 8-K reports, with the latest filed on November 3, 2026, detailing this significant development.

The recent filing reveals that Reinharz's decision to defer his salary, which amounts to $420,000 annually, will help keep approximately $35,000 per month in operating cash. As of the date of the filing, he has already deferred about $51,000 of his salary this fiscal year. Additionally, he has personally covered over $100,000 in business expenses that have not been reimbursed.

Reinharz emphasized the importance of this decision, stating, "I'm so focused on hitting these milestones and this helps. No salary and no bonus through the end of the fiscal year means more cash stays in the business while we work toward milestone one." The first milestone, which the company aims to reach by January 2027, is to achieve monthly operating cash breakeven, where monthly revenue exceeds operating cash expenses.

The company reported a revenue of $1,985,604 for its fiscal second quarter, marking an 8% sequential increase and a 5% year-over-year growth. Notably, revenue from customers other than its largest client grew by 61% year-over-year, with recurring device rental revenue making up 89% of total revenue.

In addition to salary deferrals, the balance sheet stability program includes a targeted reduction in cash spending of approximately $345,000 per month by January 2027 and over $350,000 per month starting in February 2027. This will be achieved through various measures, including salary deferrals, workforce reductions, and cuts in marketing and operational costs. Importantly, the company's sales force remains unaffected by these reductions.

As part of the company's strategy, Reinharz stated, "We have two levers, revenue and cost, and we're pulling both. Reaching milestone one would show more self-sustainability than this Company has ever had." The company plans to announce further steps in its stability program as they are finalized and will report progress against its milestones in future updates.

This initiative is crucial for Artificial Intelligence Technology Solutions Inc. as it navigates a challenging economic landscape. The company's commitment to achieving financial stability may resonate with other players in the prepackaged software industry, which is increasingly focused on cost management and operational efficiency.

The filing does not specify what further actions may follow this announcement, but the emphasis on reaching the breakeven milestone indicates a proactive approach to ensuring the company's financial health.