{"id":232174,"date":"2026-06-15T17:30:00","date_gmt":"2026-06-15T21:30:00","guid":{"rendered":"https:\/\/testing.news-you-need.com\/index.php\/2026\/06\/15\/aitx-registers-43-2m-shares-for-resale-aitx-sec-filing\/"},"modified":"2026-06-15T18:05:29","modified_gmt":"2026-06-15T22:05:29","slug":"aitx-registers-43-2m-shares-for-resale-aitx-sec-filing","status":"publish","type":"post","link":"https:\/\/testing.news-you-need.com\/index.php\/2026\/06\/15\/aitx-registers-43-2m-shares-for-resale-aitx-sec-filing\/","title":{"rendered":"AITX registers 43.2M shares for resale | AITX SEC Filing"},"content":{"rendered":"

AITX registers 43.2M shares for resale | AITX SEC Filing<\/a><\/p>\n

https:\/\/www.stocktitan.net\/sec-filings\/AITX\/pos-am-artificial-intelligence-technology-solutions-inc-sec-filing-17f3a86a0dc3.html<\/a><\/p>\n

Publish Date: 2026-06-15 17:30:00<\/a><\/p>\n

Source Domain: www.stocktitan.net<\/a><\/p>\n

[gpt3] Using an unordered list, summarize the following article with between 4 and 8 key points. <\/p>\n

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iso4217:USD<\/p>\n

xbrli:shares<\/p>\n

iso4217:USD<\/p>\n

xbrli:shares<\/p>\n

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AITX:Integer<\/p>\n

\u00a0<\/span><\/p>\n

As
\nfiled with the Securities and Exchange Commission on June 15, 2026<\/span><\/p>\n

\u00a0<\/p>\n

Registration
\nNo. 333-288173<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

UNITED
\nSTATES<\/span><\/p>\n

SECURITIES
\nAND EXCHANGE COMMISSION<\/span><\/p>\n

Washington,
\nD.C. 20549<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Post
\nEffective Form S-1<\/span><\/span>\/Amendment Number 1<\/span><\/p>\n

\u00a0<\/p>\n

REGISTRATION
\nSTATEMENT UNDER THE SECURITIES ACT OF 1933<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/span><\/span><\/p>\n

(Exact
\nname of registrant as specified in its charter)<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n
Nevada<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n3714<\/span><\/td>\n\u00a0<\/span><\/td>\n27-2343603<\/span><\/span><\/td>\n<\/tr>\n
(State or jurisdiction of
\n incorporation or organization)<\/span><\/td>\n		\u00a0<\/span><\/td>\n(Primary Standard Industrial
\n Classification Code Number)<\/span><\/td>\n		\u00a0<\/span><\/td>\n(IRS Employer Identification
\n Number)<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

10800
\nGalaxie Avenue<\/span><\/span><\/p>\n

Ferndale<\/span>,
\nMichigan<\/span> 48220<\/span><\/span><\/p>\n

(877)<\/span>
\n787-6268<\/span><\/span><\/p>\n

(Address,
\nincluding zip code, and telephone number, including area code, of registrant\u2019s principal executive offices)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Steven
\nReinharz<\/span><\/span><\/p>\n

Chief
\nExecutive Officer<\/span><\/p>\n

10800
\nGalaxie Avenue<\/span><\/span><\/p>\n

Ferndale<\/span>,
\nMichigan<\/span> 48220<\/span><\/span><\/p>\n

(877)<\/span>
\n787-6268<\/span><\/span><\/p>\n

(Name,
\naddress, including zip code, and telephone number, including area code, of agent for service)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Copies
\nto:<\/span><\/p>\n

Frederick
\nM. Lehrer, P. A.<\/span><\/p>\n

Frederick
\nM. Lehrer, Esquire<\/span><\/p>\n

2108
\nEmil Jahna Road<\/span><\/p>\n

Clermont,
\nFlorida 34711<\/span><\/p>\n

flehrer@securitiesattorney1.com<\/span><\/p>\n

(561)
\n706-7646<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Approximate
\ndate of commencement of proposed sale to the public: From time to time after the effectiveness of this registration statement.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

If
\nany securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities
\nAct of 1933, check the following box: \u2612<\/span><\/p>\n

\u00a0<\/span><\/p>\n

If
\nthis Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
\nfollowing box and list the Securities Act registration statement number of the earlier effective registration statement for the same
\noffering. \u2610<\/span><\/p>\n

\u00a0<\/span><\/p>\n

If
\nthis Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
\nSecurities Act registration statement number of the earlier effective registration statement for the same offering. \u2610<\/span><\/p>\n

\u00a0<\/span><\/p>\n

If
\nthis Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
\nSecurities Act registration statement number of the earlier effective registration statement for the same offering. \u2610<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Indicate
\nby check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
\ncompany, or an emerging growth company. See the definitions of \u201clarge accelerated filer,\u201d \u201caccelerated filer,\u201d
\n\u201csmaller reporting company,\u201d and \u201cemerging growth company\u201d in Rule 12b-2 of the Exchange Act.<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n
Large accelerated filer<\/span><\/td>\n\u2610<\/span><\/td>\nAccelerated
\n filer<\/span><\/td>\n		\u2610<\/span><\/td>\n<\/tr>\n
Non-accelerated filer<\/span><\/span><\/td>\n\u2612<\/span><\/td>\nSmaller reporting company<\/span><\/td>\n\u2612<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nEmerging growth company<\/span><\/td>\n\u2610<\/span><\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

If
\nan emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
\nwith any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. \u2610<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nRegistrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the
\nregistrant files a further amendment that specifically states that this registration statement will thereafter become effective in accordance
\nwith Section 8(a) of the Securities Act of 1933 or until the registration statement becomes effective on such date as the U.S. Securities
\nand Exchange Commission, acting pursuant to Section 8(a), may determine.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

\u00a0<\/span><\/p>\n

EXPLANATORY
\nNOTE<\/span><\/p>\n

\u00a0<\/span><\/p>\n

This
\nPost-Effective Amendment No. 1 to the Registration Statement on Form S-1 (Registration No. 333-288173) (this \u201cPost-Effective Amendment\u201d)
\nis being filed by Artificial Intelligence Technology Solutions, Inc. (the \u201cCompany\u201d) to update and restate the Registration
\nStatement with current information, including the information contained in the Company\u2019s Annual Report on Form 10-K for the fiscal
\nyear ended February 28, 2026, filed with the Securities and Exchange Commission (the \u201cSEC\u201d) on June 9, 2026 (the \u201cForm
\n10-K\u201d), which is incorporated herein by reference.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Background
\nof the Registration Statement<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\nSeptember 2024, the Company and AIV Investments, LLC (\u201cAIV\u201d) entered into a Securities Purchase Agreement (the \u201cSeptember
\n2024 Purchase Agreement\u201d) pursuant to which AIV agreed to purchase up to $30,000,000 of the Company\u2019s common stock, par value
\n$0.00001 per share (the \u201cCommon Stock\u201d). The September 2024 Purchase Agreement provided for the deferred issuance to AIV
\nof 1,239,907 shares of Common Stock (the \u201cDeferred Shares\u201d).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nJune 16, 2025, the Company and AIV entered into an Equity Financing Agreement (the \u201cPurchase Agreement\u201d) and a Registration
\nRights Agreement (the \u201cRegistration Rights Agreement\u201d) (each dated as of June 16, 2025 and memorialized in a Current Report
\non Form 8-K filed with the SEC on June 17, 2025), superseding a substantially identical Equity Financing Agreement and Registration Rights
\nAgreement previously entered into between the Company and GHS Investments, LLC (\u201cGHS\u201d) on June 11, 2025, which were terminated
\npursuant to a Termination Agreement between the Company and GHS.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nJune 18, 2025, the Company filed a Registration Statement on Form S-1 (Registration No. 333-288173) (the \u201cRegistration Statement\u201d),
\nwhich the SEC declared effective on June 25, 2025, registering up to 100,000,000 shares of Common Stock for resale by AIV pursuant to
\nthe Purchase Agreement.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nResolution Shares<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nAugust 7, 2025, the Company and AIV entered into a Resolution Agreement (the \u201cResolution Agreement\u201d), executed in connection
\nwith the Purchase Agreement, which resolved the deferred issuance of the Deferred Shares contemplated by the September 2024 Purchase
\nAgreement. Pursuant to the Resolution Agreement, the Company was obligated to deliver to AIV 123,990,716 shares of Common Stock (1,239,907 shares as adjusted
\nfor the Company\u2019s subsequent reverse stock split) (the \u201cResolution Shares\u201d). The Resolution Shares were not included
\nin the Registration Statement at the time it was declared effective on June 25, 2025.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany is not filing a resale registration statement on Form S-1 to register the post-split amount of 1,239,907 shares of Common Stock
\nissued to AIV Investments, LLC (\u201cAIV\u201d) (pre-reverse split amount of 123,990,716 shares) pursuant to the Resolution Agreement
\ndated August 7, 2025 (the \u201cResolution Shares\u201d), and is not registering the resale of such shares. In lieu of issuing the
\nResolution Shares or conferring registration rights upon them, the Company paid AIV an aggregate of $125,000 through the following wire
\ntransfers: (a) $30,000 on September 18, 2025; (b) $30,000 on October 3, 2025; (c) $30,000 on October 22, 2025; and (d) $35,000 on April
\n21, 2026. In reliance on these cash disbursements to AIV totaling $125,000, the Company is not registering the resale of the Resolution
\nShares \u2014 whether by means of this Post-Effective Amendment or a separate resale registration statement \u2014 because the Resolution
\nShares have been extinguished.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Purpose
\nof this Post-Effective Amendment<\/span><\/p>\n

\u00a0<\/span><\/p>\n

This
\nPost-Effective Amendment relates to the resale by AIV, as the Selling Stockholder, of up to 43,213,508 shares of Common Stock (the \u201cRemaining
\nShares\u201d), representing those shares originally registered under the Registration Statement that have not been sold by AIV as of
\nthe date hereof.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

This
\nPost-Effective Amendment is being filed to update the Registration Statement with current business and financial information, including
\nthe financial statements and other information contained in the Form 10-K. All information in this Post-Effective Amendment supersedes
\nthe corresponding information previously contained in the Registration Statement.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany will not receive any proceeds from the resale of the Remaining Shares by AIV. However, the Company may receive aggregate gross
\nproceeds of up to the remaining available commitment amount from future sales of Common Stock to AIV pursuant to the Purchase Agreement.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\ninformation in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration
\nstatement filed with the Securities and Exchange Commission, of which this prospectus is a part, shall have been declared effective.
\nThis preliminary prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any
\njurisdiction where the offer or sale is not permitted.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

SUBJECT
\nTO COMPLETION, DATED JUNE 15, 2026<\/span><\/p>\n

\u00a0<\/span><\/p>\n

43,213,508<\/span>
\nShares of Common Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

This prospectus relates to the sale by the Selling
\nStockholder, AIV Investments, LLC (\u201cAIV\u201d), of Artificial Intelligence Technology Solutions, Inc. (the \u201cCompany\u201d)
\nof up to Forty Three Million Two Hundred Thirteen Thousand and Five Hundred Eight (43,213,508) shares of common stock,
\npar value $0.00001 per share. We will not receive proceeds from the sale of the shares by the Selling Stockholder.<\/p>\n

\u00a0<\/p>\n

Our common stock is quoted on the OTC Pink under
\nthe symbol \u201cAITX.\u201d On June 8, 2026 the last reported sales price of our common stock on the OTC Pink was $0.0178
\nper share.<\/p>\n

\u00a0<\/span><\/p>\n

AIV
\nis an underwriter within the meaning of the Securities Act of 1933 with respect to the shares being issued pursuant to the
\nAgreement, as amended (the \u201cSecurities Act\u201d), and any broker-dealers or agents that are involved in selling the shares
\nmay be deemed to be \u201cunderwriters\u201d within the meaning of the Securities Act in connection with such sales. In such event,
\nany commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed
\nto be underwriting commissions or discounts under the Securities Act. We will bear all costs, expenses and fees in connection with the
\nregistration of the common stock. The Selling Stockholder will bear all commissions and discounts, if any, attributable to its sales
\nof our common stock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Investing
\nin our securities is highly speculative and involves a high degree of risk. You should carefully consider the risks and uncertainties
\ndescribed under the heading \u201cRisk Factors\u201d beginning on page 3 of this prospectus before making a decision to purchase our
\nsecurities.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

NEITHER
\nTHE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED
\nUPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nmay amend or supplement this prospectus from time to time by filing amendments or supplements as required. You should read the entire
\nprospectus and any amendments or supplements carefully before you make your investment decision.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\ndate of this prospectus is June 15, 2026<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Table
\nof Contents<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\nPAGE<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
PROSPECTUS SUMMARY<\/span><\/span><\/td>\n1<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
ABOUT THE OFFERING<\/span><\/span><\/td>\n1<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
RISK FACTORS<\/span><\/span><\/td>\n3<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS<\/span><\/span><\/td>\n10<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
USE OF PROCEEDS<\/span><\/span><\/td>\n11<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
SELLING STOCKHOLDER<\/span><\/span><\/td>\n11<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
PLAN OF DISTRIBUTION<\/span><\/span><\/td>\n12<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
BUSINESS<\/span><\/span><\/td>\n13<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS<\/span><\/span><\/td>\n21<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
MANAGEMENT\u2019S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS<\/span><\/span><\/td>\n21<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
MANAGEMENT<\/span><\/span><\/td>\n28<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
EXECUTIVE COMPENSATION<\/span><\/span><\/td>\n30<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT<\/span><\/span><\/td>\n31<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
LEGAL MATTERS<\/span><\/span><\/td>\n38<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n<\/tr>\n
EXPERTS<\/span><\/span><\/td>\n38<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n<\/tr>\n
AVAILABLE INFORMATION<\/span><\/span><\/td>\n38<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/td>\nF-1<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

You
\nshould rely only on the information contained in this prospectus. We have not authorized anyone to provide you with different information
\nfrom that contained in this prospectus. The Selling Stockholder is offering to sell and seeking offers to buy shares of our common stock
\nonly in jurisdictions where offers and sales are permitted. The information contained in this prospectus is accurate only as of the date
\nof this prospectus, regardless of the time of delivery of this prospectus or of any sale of our common stock. This prospectus does not
\nconstitute an offer to sell, or a solicitation of an offer to buy the securities in any circumstances under which the offer or solicitation
\nis unlawful. Neither the delivery of this prospectus nor any distribution of securities in accordance with this prospectus shall, under
\nany circumstances, imply that there has been no change in our affairs since the date of this prospectus.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

PROSPECTUS
\nSUMMARY<\/span><\/p>\n

\u00a0<\/span><\/p>\n

This
\nsummary highlights information contained elsewhere in this prospectus and does not contain all of the information that you should consider
\nin making your investment decision. Before investing in our common stock, you should carefully read this entire prospectus, including
\nour financial statements and the related notes and the information set forth under the headings \u201cRisk Factors\u201d and \u201cManagement\u2019s
\nDiscussion and Analysis of Financial Condition and Results of Operations\u201d in each case included elsewhere in this prospectus.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Unless
\nthe context otherwise requires, references to \u201cwe,\u201d \u201cour,\u201d \u201cus,\u201d \u201cArtificial Intelligence\u201d
\nor the \u201cCompany\u201d in this prospectus mean Artificial Intelligence Technology Solutions, Inc. and its wholly-owned subsidiaries.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Company
\nOverview<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\napply AI technology to solve enterprise problems that are expensive, repetitive, difficult to staff, and outside of the core competencies
\nof the client organization. Our main focus is disrupting and capturing a sizable portion of the global security services market,
\nspecifically the human security guard market and the physical security market. RAD solutions are unique in that they start with an AI-driven
\nautonomous response utilizing cellular optimized communications, while easily connecting to a human operator for a manned response as
\nneeded. We use purpose-built hardware and deliver our services through RAD-developed software and cloud services allowing enterprises
\nIT groups to focus on their core competencies.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Definitive
\nInformation Statement<\/p>\n

\u00a0<\/p>\n

On March
\n30, 2026,<\/span>
\nwe filed a Schedule 14C Definitive Information Statement to provide notice that our Board of Directors approving the filing of a Certificate
\nof Amendment to the Company\u2019s Articles of Incorporation to decrease its authorized common stock by fifteen billion
\nfive hundred thousand (15,500,000,000) common stock shares to a total of twelve billion (12,000,000,000) common
\nstock shares (the \u201cAuthorized Share Increase\u201d) and our consenting shareholder executing a written consent authorizing the
\nAuthorized Share Decrease. <\/span><\/p>\n

\u00a0<\/p>\n

About
\nthis Offering<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Equity Financing Agreement with AIV
\nInvestments, LLC<\/p>\n

\u00a0<\/p>\n

On June 16, 2025, we entered into the Equity Financing
\nAgreement with AIV referred to herein as the \u201cPurchase Agreement\u201d. The Purchase Agreement between the Company and AIV pertains
\nto the potential sale of up to one hundred million (100,000,000) shares of our common stock as detailed below. The Purchase
\nAgreement expires on June 11, 2027.<\/p>\n

\u00a0<\/p>\n

Pursuant to the Purchase Agreement, we have the right,
\nin our sole discretion, subject to the conditions and limitations contained therein, to direct AIV, by delivery of a purchase
\nnotice (a \u201cPurchase Notice\u201d) to purchase (each, a \u201cPurchase\u201d) over the 24 month term of the Purchase Agreement,
\na minimum of $10,000 and up to a maximum of $1,500,000. Puts are further limited to the Investor owning no more than 4.99% of the outstanding
\nstock of the Company at any given time. Pursuant to the Purchase Agreement, the aggregate value of the Purchase Shares sold to AIV
\nmay not exceed $30,000,000. Each Purchase Notice will set forth the Purchase Price and number of Purchase Shares in accordance with the
\nterms of the Purchase Agreement. The maximum dollar amount of each Put will not exceed 250% of the average daily trading volume for the
\ncommon stock during the 10 consecutive trading days preceding the Put Notice Date.<\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nPurchase Price is defined in the Purchase Agreement as 80% of the Market Price. If the average Closing Price for the Common Stock during
\nthe three (3) trading days preceding a Put Notice is equal to or greater than one cent ($.01) per share, the applicable Purchase Price
\nshall equal eighty five percent (85%) of the Market Price. Following an up-list to the NASDAQ or an equivalent national exchange by the
\nCompany, the Purchase price shall equal 90% of the lowest Volume Weighted Average Price for the Common Stock during the Pricing Period,
\nsubject to a floor of $2.00 per share, below which the Company shall not deliver a Put.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\n Purchase Agreement prohibits AIV from purchasing any shares of common stock if those
\n shares, when aggregated with all other shares of our common stock then beneficially owned
\n by AIV would result in AIV having beneficial ownership, at any single point
\n in time, of more than 4.99% of the then total outstanding shares of our common stock. There
\n are no trading volume requirements or restrictions under the Purchase Agreement and we will
\n control the timing and amount of any sales of its common stock to AIV.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nmay not deliver a Purchase Notice to AIV and AIV is not obligated to purchase the Purchase Shares unless each of the following
\nconditions are satisfied: there is an effective Registration Statement; the Common Stock is listed or quoted for trading on the Principal
\nMarket; we are not in breach of in default of the Purchase Agreement or Registration Rights Agreement; no injunction has been issued
\nprohibiting the purchase of the or the issuance of the Securities; and the issuance of the Securities does not violate the Principal
\nMarket requirements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nPurchase Agreement is for a term of twenty four months but may terminate earlier on the date that AIV has purchased the aggregate
\nOffering Amount of $30,000,000 of the Purchase Shares that are sold to AIV. We and AIV each have the right to terminate
\nthe Purchase Agreement at any time upon thirty days-notice. The Purchase Agreement will be suspended and remain suspended if any of the
\nfollowing events occur: if our Common Stock is suspended by the applicable authority, our Common Stock ceases to be quoted; we breach
\na representation, warranty, covenant in the Purchase Agreement;, and upon the occurrence of bankruptcy proceedings by or against us.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Subject
\nto the foregoing, actual sales of Purchase Shares to AIV under the Purchase Agreement will depend on a variety of factors to be
\ndetermined by us from time to time, including, among others, market conditions, the trading price of the Common Stock and determinations
\nby us as to the appropriate sources of funding for our operations.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Prior
\nIssuances with AIV<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Between August 11, 2025 and June 5, 2026, we have issued
\na total of 56,786,492 Common Stock Shares to AIV.<\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RISK
\nFACTORS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Risks
\nRelated to Our Business<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nbusiness is at an early stage, and we have not yet generated any profits.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD
\nI, our primary operating subsidiary, was formed in 2016 and made its first sale in 2016. Accordingly, we have a limited operating history
\nupon which to evaluate its performance and prospects. Our current and proposed operations are subject to all the business risks associated
\nwith young enterprises. These include likely fluctuations in operating results as we make significant investments in research, development
\nand product opportunities, we react to developments in our market, including purchasing patterns of customers, and the entry of competitors
\ninto the market. We cannot assure you that we will generate enough revenue to be profitable in the next three years or at all, which
\ncould lead to a loss of part or all of an investment.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nauditor has expressed substantial doubt about our ability to continue as a going concern.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nfinancial statements of which this prospectus is a part have been prepared on a going concern basis. We may be unable to generate profitable
\noperations in the future and\/or obtain the necessary financing to meet our obligations and pay liabilities arising from normal business
\noperations when they come due. The outcome of these matters cannot be predicted with any certainty at this time. These factors raise
\nsubstantial doubt that we will be able to continue as a going concern. Our financial statements do not include any adjustments to the
\namounts and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nfinancial results will fluctuate in the future, which makes them difficult to predict.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nfinancial results may fluctuate in the future. Additionally, we have a limited operating history with the current scale of our business,
\nwhich makes it difficult to forecast future results. As a result, you should not rely upon our past financial results as indicators of
\nfuture performance. In addition, you should consider the risks and uncertainties frequently encountered by rapidly growing companies
\nin evolving markets. Our financial results in any given quarter can be influenced by numerous factors, many of which we are unable to
\npredict or are outside of our control, including, but not limited to the following:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nour ability to maintain
\n and grow our client base;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nclients suffering downturns,
\n financial instability or becoming subject to mergers or acquisitions;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nour ability to develop
\n and introduce new products and the ability of our competitors to do the same;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nour ability to maintain
\n gross margins and operating margins;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nincreases in marketing,
\n sales, service and other operating expenses incurred in expanding our operations and remaining competitive;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nchanges affecting our suppliers
\n and other third-party service providers;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nadverse litigation judgments,
\n settlements, or other litigation-related costs; and<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nchanges in business or
\n macroeconomic conditions, including regulatory changes.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

We
\nhave a limited number of deployments and our success depends on an unproven market.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nmarket for advanced physical security technology is relatively new and unproven and is subject to risks and uncertainties. In order to
\ngrow our business and extend our market position, we will need to place into service additional robots, expand our service offerings,
\nand expand our presence. Our ability to expand the market for our products depends on a number of factors, including the cost, performance
\nand perceived value associated with our products and services. Furthermore, the public\u2019s perception of the use of robots to perform
\ntasks traditionally reserved for humans may negatively affect demand for our products and services. Ultimately, our success will depend
\nlargely on our customers\u2019 acceptance that security services can be performed more efficiently and cost effectively through the
\nuse of our robots and ancillary services, of which there can be no assurance.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\ncannot assure you that we can effectively manage our growth.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nbusiness growth and expansion and additional products, which create significant challenges for our management, operational, and financial
\nresources, including managing multiple relationships and interactions with users, distributors, vendors, and other third parties. As
\nwe continue to grow, our information technology systems, internal management processes, internal controls and procedures and production
\nprocesses may be inadequate to support our operations. To ensure success, we must continue to improve our operational, financial, and
\nmanagement processes and systems and to effectively expand, train, and manage our employee base. As we implement more complex organizational
\nand management structures consistent with our growth, we may find it increasingly difficult to maintain the benefits of our corporate
\nculture, including our current team\u2019s efficiency and expertise, which could negatively affect our business performance.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\ncosts may grow more quickly than our revenues, harming our business and profitability.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nexpect our expenses to continue to increase in the future as we expand our product offerings, expand production capabilities and hire
\nadditional employees. We expect to continue to incur increasing costs, in particular for working capital to purchase inventory, marketing
\nand product deployments as well as costs associated with customer support in the field. Our expenses may be greater than we anticipate,
\nwhich would have a negative impact on our financial position, assets and ability to invest further in the growth and expansion of
\nour business.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nloss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could
\nharm our business.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\ndepend on the continued services and performance of key members of the management team, in particular, founder and Chief Executive Officer,
\nSteven Reinharz, Chief Financial Officer, Anthony Brenz, and RAD I Chief Executive Officer, Mark Folmer. While we currently have employment
\nagreements with Messrs. Reinharz and Brenz, we do not have any employment agreements in place with our other officers. If we cannot call
\nupon Messrs. Reinharz and Mr. Brenz or Mark Folmer or other key management personnel for any reason, our operations and development could
\nbe harmed. We have not yet developed a succession plan. Furthermore, as we grow, we will be required to hire and attract additional qualified
\nprofessionals such as accounting, legal, finance, production, service and engineering experts. We may be unable to locate or attract
\nqualified individuals for such positions, which will affect our ability to grow and expand our business.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Because
\nour Board of Directors does not currently have an audit committee, compensation committee, nomination committee, or any other form of
\ncorporate governance committee, shareholders will have to rely on our only director, who is not independent, to perform these functions.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\ndo not have an audit committee, compensation committee, nomination committee, or any form of corporate governance committees that includes
\nany independent members. Instead, the Board of Directors performs these functions as a whole. As a result, we do not receive the independent
\nadvice of other persons.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

If
\nwe are unable to protect our intellectual property, the value of our brand and other intangible assets may be diminished and our business
\nmay be adversely affected.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nrely and expect to continue to rely on a combination of confidentiality agreements with its employees, consultants, and third parties
\nwith whom it has relationships, as well as trademark, copyright, patent, trade secret, and domain name protection laws, to protect its
\nproprietary rights. As of the date of this report, there are no patents filed on our behalf. We plan to file various applications in
\nthe United States for protection of certain aspects of its intellectual property. However, third parties may knowingly or unknowingly
\ninfringe our proprietary rights, may challenge proprietary rights held by us, and pending and future trademark and patent applications
\nmay not be approved. In addition, effective intellectual property protection may not be available in every country in which we intend
\nto operate in the future. In any or all of these cases, we may be required to expend significant time and expense in order to prevent
\ninfringement or to enforce our rights. Although we plan to take measures to protect our proprietary rights, there can be no assurance
\nthat others will not offer products or concepts that are substantially similar to those offered through RAD I and compete with our business.
\nIf the protection of our proprietary rights is inadequate to prevent unauthorized use or appropriation by third parties, the value of
\nour brand and other intangible assets may be diminished, and competitors may be able to mimic our service and methods of operations more
\neffectively. Any of these events could have a material adverse effect on our business and financial results.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Economic
\nfactors generally may negatively affect our operations.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nare subject to the general risks of the marketplace where we conduct business. Our results of operations will depend on a number of factors
\nover which we have no control, including changes in general economic or local economic conditions, changes in supply of or demand for
\nsimilar and\/or competing products and services, and changes in tax and governmental regulations that may affect demand for such products
\nand services. Any significant decline in general economic conditions or uncertainties regarding future economic prospects that affect
\nindustrial and consumer spending could have a material adverse effect on our business. For these and other reasons, no assurance of profitable
\noperations can be given.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

General
\npolitical, social and economic conditions can adversely affect our business.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Demand
\nfor our products and services depends, to a significant degree, on general political, social and economic conditions in our markets.
\nWorsening economic and market conditions, downside shocks, or a return to recessionary economic conditions could serve to reduce demand
\nfor our products and services and adversely affect our operating results. In addition, an economic downturn could impact the valuation
\nand collectability of certain long-term receivables held by us. Additionally, the global economy and financial markets may be adversely
\naffected by geopolitical events, including the current or anticipated impact of military conflict and related sanctions imposed on Russia
\nby the United States and other countries due to Russia\u2019s recent invasion of Ukraine.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfuture reoccurrence of the COVID-19 pandemic could adversely affect our business, financial condition and results of operations.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

A
\nfuture COVID-19 pandemic, including the emergence of variants for which vaccines may not be effective, may negatively affect our business
\nby causing or contributing to, among other things:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nHigher shipping costs and
\n longer shipping times, especially for shipments from China and Europe;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nLimited access to parts
\n needed for our products due to the ongoing issues with global chip supply, which may affect our ability to meet our production goals;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nHigher labor costs due
\n to a diminished supply of potential employees and higher employee recruitment and retention costs; and<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nDisruptions in production
\n due to employees becoming ill from Covid.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\nextent of COVID-19\u2019s effect on our operational and financial performance in the future will depend on future developments, including
\nthe duration, spread and intensity of the pandemic, our continued ability to manufacture and distribute our products, any future government
\nactions affecting consumers and the economy generally, changing economic conditions and any resulting inflationary impacts, as well as
\ntiming and effectiveness of global vaccines, all of which are uncertain and difficult to predict considering the rapidly evolving landscape.
\nAlthough the potential effects that COVID-19 may continue to have on us are not clear, these effects could materially adversely affect
\nour business, financial condition and results of operations.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nbusiness is subject to data security risks, including security breaches.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nproducts employ technologies that are subject to various data security risks including security breaches and hacking, and we cannot guarantee
\nthat our products may not be negatively affected by these risks causing them to suffer damages. We use wireless data carrier providers
\nto transmit data and information of all kinds, and those wireless providers may suffer security breaches that release our confidential
\ninformation. The occurrence of the foregoing may damage our brand and increase our costs. Any of these events or circumstances could
\nmaterially adversely affect our business, financial condition, and results of operations.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nbusiness success depends on large part on the success of our efforts to lease our products through dealerships.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Although
\nwe engage in some direct sales to potential customers, our primary focus is on leasing its robots to end-users through dealers that market
\nto firms providing security guard and integrated security services. We believe our model based on partnerships with these dealers is
\nvaluable and currently has such partnerships with over twenty dealers, with plans to sign on additional dealers. However, there can be
\nno assurance that we can successfully secure agreements with dealerships for the use of our products, which could materially impair our
\nsales, financial condition, and business prospects.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\ncurrently face competition and may face additional competition in the future; if we are unable to compete effectively, our business prospects
\nand operations will be harmed.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD
\nI\u2019s re-entry into the mobile security robotics market presents us with two potential competitors. Knightscope, Inc., states that
\nit has available one outdoor security robot called the \u2018K5\u2019 and has another outdoor robotic device under development, the
\n\u2018K9\u2019. Cobalt Robotics Inc., offers an indoor robotic device that is designed to perform various security functions. Although
\neither or both of these companies may create direct competition to RAD I\u2019s products, neither of these companies has a mobile robot
\nthat performs the breadth of duties that can be performed by ROAMEO. We are also aware of other companies that are already active in
\nour industry and other companies that are developing physical security technology in the U.S. and abroad that may potentially compete
\nwith our technology and services. These, or additional new, competitors may have more resources than we do or may be better capitalized,
\nwhich may give them a significant advantage because they may be able to offer better pricing, survive an economic downturn or reach profitability
\ncompared with us. We cannot guarantee that we will be able to compete successfully against existing or emerging competitors. In addition,
\nexisting private security firms may also compete on price by lowering their operating costs, developing new business models or providing
\nother incentives. We cannot give any assurance that we can adequately compete with existing or new competitors, and additional attempts
\nto compete could lead us to expend additional funds toward our marketing efforts and further adversely affect our business operations.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nability to operate and collect digital information on behalf of our clients is dependent on the privacy laws of jurisdictions in which
\nour machines operate, as well as the corporate policies of our clients, which may limit our ability to fully deploy our technologies
\nin various markets.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nrobots collect, store, and analyze certain types of personal or identifying information regarding individuals that interact with the
\nmachines. While we maintain stringent data security procedures, the regulatory framework for privacy and security issues is rapidly evolving
\nworldwide and is likely to remain uncertain for the foreseeable future. Federal and state government bodies and agencies have in the
\npast adopted, and may in the future adopt, laws and regulations affecting data privacy, which in turn affect the breadth and type of
\nfeatures that we can offer to our clients. In addition, our clients have separate internal policies, procedures and controls regarding
\nprivacy and data security with which we may be required to comply. Because the interpretation and application of many privacy and data
\nprotection laws are uncertain, it is possible that these laws may be interpreted or applied in a manner that is inconsistent with our
\ncurrent data management practices or the features of our products. If so, in addition to the possibility of fines, lawsuits and other
\nclaims and penalties, we could be required to fundamentally change our business activities and practices or modify our products, which
\ncould have an adverse effect on our business. Any inability to adequately address privacy and security concerns, even if unfounded, or
\ncomply with applicable privacy and data security laws, regulations, and policies, could result in additional cost and liability to us,
\ndamage our reputation, inhibit sales, and adversely affect our business. Furthermore, the costs of compliance with, and other burdens
\nimposed by, the laws, regulations, and policies that are applicable to the businesses of our clients may limit the use and adoption of,
\nand reduce the overall demand for, our products. Privacy and data security concerns, whether valid or not valid, may inhibit market adoption
\nof our products, particularly in certain industries and foreign countries. If we are not able to adjust to changing laws and regulations,
\nour business may be harmed.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nsuccess depends on the growth of our industry, most specifically on the growing adoption and use of physical security technology in general
\nand the adoption and use of our products.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nmarket for our products and for physical security technology in general is relatively new and unproven and is subject to many risks and
\nuncertainties. Our ability to gain growing market acceptance and adoption of our products depends on the market\u2019s acceptance of
\nphysical security technology in general. If we are unable to increase acceptance of our products, and if the market for physical security
\ntechnology generally does not develop as we hope, we will not be able to sell our products, which would adversely affect our financial
\nperformance.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Risks
\nRelated to our Securities<\/span><\/p>\n

\u00a0<\/span><\/p>\n

An
\ninvestment in our securities is extremely speculative, and there can be no assurance of any return on the investment.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

An
\ninvestment in our securities is extremely speculative, and there is no assurance that investors will obtain any return on their investment.
\nInvestors will be subject to substantial risks, including the risk of losing their entire investment in our securities. For example,
\nthe market price of our common stock is subject to significant fluctuations in response to variations in our quarterly operating results,
\ngeneral trends in the market and other factors, many of which we have little or no control over. In addition, broad market fluctuations,
\nas well as general economic, business and political conditions, may adversely affect the market for our common stock, regardless of our
\nactual or projected performance.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\ncommon stock shareholders do not have voting control over us due to the rights granted to holders of our Series E Convertible Preferred
\nStock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Steven
\nReinharz, our Chief Executive Officer, is currently the holder of all 3,350,000 shares of our Series E Convertible Preferred Stock. The
\nSeries E Convertible Preferred Stock holds 2\/3rds of the voting power of all shareholders at any time that corporate action requires
\na vote of shareholders. As a result, holders of common stock do not have voting control over the Company.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Because
\nwe are a \u201csmaller reporting company,\u201d we may take advantage of certain scaled disclosures available to us, resulting in holders
\nof our securities receiving less information than they would receive from a public company that is not a smaller reporting company.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nare a \u201csmaller reporting company\u201d as defined in the Exchange Act. As a smaller reporting company, we may take advantage of
\ncertain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures
\nfor so long as (i) our voting and non-voting common stock held by non-affiliates is less than $250 million measured on the last business
\nday of our second fiscal quarter, or(ii) our annual revenue is less than $100 million during the most recently completed fiscal year
\nand our voting and non-voting common stock held by non-affiliates is less than $700 million measured on the last business day of our
\nsecond fiscal quarter. To the extent we take advantage of any reduced disclosure obligations, it may make it harder for investors to
\nanalyze our results of operations and financial prospectus in comparison with other public companies.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

To
\nfund our operations, we may conduct further offerings in the future, in which case our common stock may be diluted.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

To
\nfund our business operations, we anticipate continuing to rely on sales of its securities, which may include common stock, preferred
\nstock, convertible debt and\/or warrants convertible or exercisable into shares of common stock. Common stock may be issued in return
\nfor additional funds or upon conversion or exercise of outstanding convertible debentures or warrants. If additional common stock is
\nissued, the price per share of the common stock could be lower than the price paid by existing holders of common stock, and the percentage
\ninterest of those shareholders will be lower. This result is referred to as \u201cdilution,\u201d which could result in a reduction
\nin the per share value of your shares of common stock. Our failure or inability to raise capital when needed or on terms acceptable to
\nus and our shareholders could have a material adverse effect on our business, financial condition and results of operations and would
\nalso have a negative adverse effect on the price of our common stock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nhave and may in the future utilize debt financing to fund our operations.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

If
\nwe undertake debt financing to fund our operations, the financing may involve significant restrictive covenants. In addition, there can
\nbe no assurance that such financing will be available on terms satisfactory to us, if at all. Our failure or inability to obtain financing
\nwhen needed or on terms acceptable to us and our shareholders could have a material adverse effect on our business, financial condition
\nand results of operations and would also have a negative adverse effect on the price of our common stock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\ntrading price of our common stock may fluctuate significantly.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Volatility
\nin the trading price of shares of our common stock may prevent shareholders from being able to sell shares of common stock at prices
\nequal to or greater than their purchase price. The trading price of our common stock could fluctuate significantly for various reasons,
\nincluding:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nour operating and financial
\n performance and prospects;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nour quarterly or annual
\n earning or those of other companies in the same industry;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nsales of our common stock
\n by our management;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\npublic reaction to our
\n press releases, public announcements and filing with the SEC;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nchanges in earnings estimates
\n or recommendations by research analysts who track common stock or the stock of other companies in the same industry;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nstrategic actions by us
\n or our competitors;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nnew laws or regulations
\n or new interpretations of existing laws or regulations applicable to our business;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nchanges in accounting standards,
\n policies, guidance, interpretations or principles; and<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nchanges in general economic
\n conditions in the U.S. and in global economies and financial markets, including changes resulting from war or terrorist incidents.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

In
\naddition, in recent years, the stock market has experienced significant price and volume fluctuations. This volatility has had a substantial
\nimpact on the trading price of securities issued by many companies. The changes frequently occur irrespective of the operating performance
\nof the affected companies. As a result, the trading price of our common stock could fluctuate based upon factors that have little or
\nnothing to do with our business.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Because
\nwe are a small company with a limited operating history, holders of common stock may find it difficult to sell their stock in the public
\nmarkets.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nnumber of persons interested in purchasing our common stock at any given time may be relatively small. This situation is attributable
\nto a number of factors. One factor is that we are a small company that is still relatively unknown to stock analysts, stock brokers,
\ninstitutional investors, and others in the investment community that generate or influence sales volume. Another factor is that, even
\nif we came to the attention of these persons, they tend to be risk-averse and would likely be reluctant to follow an unproven company
\nsuch as ours. Furthermore, many brokerage firms may not be willing to effect transactions in our securities, including our common stock.
\nAs a consequence, there may be periods when trading activity in our common stock is minimal or even non-existent, as compared to trading
\nactivity in the securities of a seasoned issuer with a large and steady volume of trading activity. We cannot give you any assurance
\nthat an active public trading market for our common stock or other securities will develop or be sustained, or that, if developed, the
\ntrading levels will be sustained.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nshares of common stock are subject to the SEC\u2019s \u201cpenny stock\u201d rules that limit trading activity in the market, which
\nmay make it more difficult for holders of common stock to sell their shares.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Penny
\nstocks are generally defined as equity securities with a price of less than $5.00. Because our common stock trades at less than $5.00
\nper share, we are subject to the SEC\u2019s penny stock rules that require a broker-dealer to deliver extensive disclosure to its customers
\nbefore executing trades in penny stocks, not otherwise exempt from the rules. The broker-dealer must also provide its customers
\nwith current bid and offer quotations for the penny stock, disclose the compensation of the broker-dealer and its salesperson in the
\ntransaction, and provide monthly account statements showing the market value of each penny stock held by the customer. Under the penny
\nstock regulations, unless the broker-dealer is otherwise exempt, a broker-dealer selling a penny stock to anyone other than an established
\ncustomer or accredited investor must make a special suitability determination regarding the purchaser and must receive the purchaser\u2019s
\nwritten consent to the transaction before the sale. As a general rule, an individual with a net worth over $1,000,000 or an annual income
\nover $200,000 individually or $300,000 together with his or her spouse, is considered an accredited investor. The additional burdens
\nfrom the penny stock requirements may deter broker-dealers from effecting transactions in our securities, which could limit the liquidity
\nand market price of shares of our common stock. These disclosure requirements may reduce the trading activity of our common stock, which
\nmay make it more difficult for shareholders of our common stock to resell their securities.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

FINRA
\nsales practice requirements may also limit a stockholder\u2019s ability to buy and sell our stock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\naddition to the \u201cpenny stock\u201d rules described above, FINRA has adopted Rule 2111 that requires a broker-dealer to have reasonable
\ngrounds for believing that an investment is suitable for a customer before recommending the investment. Before recommending speculative
\nlow-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the
\ncustomer\u2019s financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA
\nbelieves that there is a high probability that speculative low priced securities will not be suitable for at least some customers. The
\nFINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit
\nyour ability to buy and sell shares of common stock and may have an adverse effect on the market for our securities.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\ndo not anticipate paying dividends in the future.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nhave never declared or paid any cash dividends on our common stock. Our current policy is to retain earnings to reinvest in our business.
\nTherefore, we do not anticipate paying cash dividends in the foreseeable future. Our dividend policy will be reviewed from time to time
\nby our Board of Directors in the context of its earnings, financial condition and other relevant factors. Until we pay dividends, which
\nwe may never do, the holders of shares of common stock will not receive a return on those shares unless they are able to sell those shares
\nat the desired price, if at all, of which there can be no assurance. In addition, there is no guarantee that our common stock will appreciate
\nin value or even maintain the price at which holders purchased their common stock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nwill continue to incur significant costs to ensure compliance with United States corporate governance and accounting requirements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nwill continue to incur significant costs associated with our public company reporting requirements, including costs associated with applicable
\ncorporate governance requirements such as those required by the Sarbanes-Oxley Act of 2002, and with other rules issued or implemented
\nby the SEC. We expect all of these applicable rules and regulations will result in significant legal and financial compliance costs and
\nto make some activities more time consuming and costly. We are currently evaluating and monitoring developments with respect to these
\nrules, and we cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nbusiness is at an early stage, and we have not yet generated any profits.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD
\nI, our primary operating subsidiary, was formed and made its first sale in 2016. Accordingly, we have a limited operating history upon
\nwhich to evaluate its performance and prospects. Our current and proposed operations are subject to all the business risks associated
\nwith young enterprises. These include likely fluctuations in operating results as we makes significant investments in research, development
\nand product opportunities, and reacts to developments in its market, including purchasing patterns of customers, and the entry of competitors
\ninto the market. We cannot assure you that we will generate enough revenue to be profitable in the next three years or at all, which
\ncould lead to a loss of part or all of an investment in us.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Due
\nto his ownership of Series E Preferred Stock, our Chief Executive Officer has voting rights equal to 66-2\/3% of the voting rights held
\nby all of our outstanding capital stock, giving him substantial control over our business and affairs and creating actual or potential
\nconflicts of interests between his interests and the interests of the shareholders.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nChief Executive Officer holds 3,350,000 shares of Series E Preferred Stock. Because the Series E Preferred Stock has voting rights equal
\nto 66-2\/3% of the voting rights held by all of our outstanding capital stock, he has voting control over any matter to be voted upon
\nby the shareholders of the Company, allowing him to exercise substantial control over our business and affairs. Moreover, his ownership
\nof the Series E Preferred Stock creates the potential for conflicts of interest between his interests and the interests of the shareholders
\nholding junior shares, including those holding common shares.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nChief Executive Officer\u2019s ownership of Series F Preferred Stock permits him to convert the Series F Preferred Shares into a multiple
\nof shares of the then-outstanding common stock. Any such conversion of his Series F Preferred Shares would cause substantial dilution
\nof the shares of common stock held by our common stock shareholders.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nChief Executive Officer owns 2,450 shares of Series F Preferred Stock. The Series F Preferred Stock is convertible at the option of the
\nholder into a multiple of the then-outstanding shares of common stock. The Chief Executive Officer\u2019s conversion of shares of Series
\nF Preferred Stock into common stock would substantially dilute the outstanding shares of common stock held by the common stock shareholders.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RISKS RELATED TO THE EQUITY FINANCING AGREEMENT
\nWITH AIV<\/p>\n

\u00a0<\/p>\n

Should AIV sell the shares being registered
\nherein or some lesser material amount pursuant to the Equity Financing Agreement and\/or the Securities Purchase Agreement, sales
\nof our Shares into the open market may cause material decreases in our stock price and decrease the percentage ownership of shares held
\nby our other shareholders.<\/p>\n

\u00a0<\/p>\n

The shares of our common stock that are being registered
\nherein may be sold into the market by AIV, thereby causing dilution of the shares and material stock price declines.
\nAdditionally, the respective percentage ownership held by each of our shareholders will materially decrease as a result of AIV
\nsale of ten billion shares or a lesser material share amount.<\/p>\n

\u00a0<\/p>\n

Funding from the Purchase Agreement and the
\nSecurities Purchase Agreement may be limited or insufficient to fund our operations or to implement our strategy.<\/p>\n

\u00a0<\/p>\n

Under our Purchase Agreement with AIV, upon effectiveness
\nof the registration statement of which this prospectus is a part, and subject to other conditions, we may direct AIV to purchase up to
\n100,000,000 shares of our common stock over a 24-month period. Under our Securities Purchase Agreement with AIV, factors may negatively
\naffect the amount of proceeds we receive, including our share price, discount to market, and other factors relating to our common stock.<\/p>\n

\u00a0<\/p>\n

There can be no assurance that we will be able to
\nreceive all or any of the total commitment from AIV because the Purchase Agreement contains certain limitations, restrictions, requirements,
\nconditions and other provisions that could limit our ability to cause AIV to buy common stock from us. For instance, we are prohibited
\nfrom issuing a Draw Down Notice if the amount requested in such Draw Down Notice exceeds the Maximum Draw Down Amount, or the sale of
\nShares pursuant to the Draw Down Notice would cause us to sell or AIV to purchase an aggregate number of shares of our common stock which
\nwould result in beneficial ownership by AIV of more than 4.99% of our common stock (as calculated pursuant to Section 13(d) of the Exchange
\nAct and the rules and regulations thereunder). Moreover, there are limitations with respect to the frequency with which we may provide
\nDraw Down Notices to AIV under the Purchase Agreement. Also, as discussed above, there must be an effective registration statement covering
\nthe resale of any Shares to be issued pursuant to any draw down under the Purchase Agreement, and the registration statement of which
\nthis prospectus is a part which covers the resale of up to 100,000,000 shares that may be issuable pursuant to draw downs
\nunder the Purchase Agreement.<\/p>\n

\u00a0<\/p>\n

The extent to which we rely on AIV as a source of
\nfunding will depend on a number of factors, including the amount of working capital needed, the prevailing market price of our common
\nstock and the extent to which we are able to secure working capital from other sources. If obtaining sufficient funding from AIV were
\nto prove unavailable or prohibitively dilutive, we would need to secure another source of funding. Even if we sell all one hundred
\nmillion (100,000,000) shares of common stock under the Purchase Agreement with AIV, we will still need additional capital
\nto fully implement our current business, operating plans, and development plans.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/span><\/p>\n

You
\nmay experience future dilution as a result of this offering or future equity offerings.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nare registering for resale ten billion shares that we may sell to AIV under the Purchase Agreement, which AIV may sell
\nin the open market or in private transactions. Sales of our common stock shares under the Purchase Agreement may cause the material declines
\nin the trading price of our common stock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nSelling Stockholder will pay less than the then-prevailing market price for our common stock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\ncommon stock to be issued to Selling Stockholder AIV pursuant to the Purchase Agreement will be purchased at a discount to the
\nclosing price of the shares of our common stock during the applicable pricing period. The Selling Stockholder has a financial incentive
\nto sell our common stock immediately upon receiving the shares to realize the profit equal to the difference between the discounted price
\nand the market price. If AIV sells the shares, the price of our common stock could decrease. If our stock price decreases, AIV
\nmay have a further incentive to sell the shares of our common stock that it holds. These sales may have a further impact on our stock
\nprice.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nmay use the net proceeds from sales of our common stock to AIV pursuant to the EFA in ways with which you may disagree.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nintend to use the net proceeds from sales of our common stock to AIV pursuant to the Purchase Agreement for working capital and
\ngeneral corporate purposes. As of the date of this prospectus, we cannot specify with certainty all of the particular uses of the proceeds
\nfrom sales of common stock to AIV pursuant to the Purchase Agreement. Accordingly, we will have significant discretion in the
\nuse of the net proceeds of sales of common stock to AIV pursuant to the Purchase Agreement. It is possible that we may allocate
\nthe proceeds differently than investors in this offering desire or that we will fail to maximize our return on these proceeds. We may,
\nsubsequent to this offering, modify our intended use of the proceeds from sales of common stock to AIV pursuant to the Purchase
\nAgreement to pursue strategic opportunities that may arise, such as potential acquisition opportunities. You will be relying on the judgment
\nof our management with regard to the use of the net proceeds from the sales of common stock to AIV pursuant to the Purchase Agreement,
\nand you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately.
\nAny failure to apply the proceeds from sales of common stock to AIV pursuant to the Purchase Agreement effectively could have
\na material adverse effect on our business and cause a decline in the market price of our common stock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

CAUTIONARY
\nNOTE REGARDING FORWARD-LOOKING STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

This
\nprospectus contains forward-looking statements. Such forward-looking statements include those that express plans, anticipation, intent,
\ncontingency, goals, targets or future development and\/or otherwise are not statements of historical fact. These forward-looking statements
\nare based on our current expectations and projections about future events and they are subject to risks and uncertainties known and unknown
\nthat could cause actual results and developments to differ materially from those expressed or implied in such statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\nsome cases, you can identify forward-looking statements by terminology, such as \u201cexpects,\u201d \u201canticipates,\u201d
\n\u201cintends,\u201d \u201cestimates\u201d, \u201cplans\u201d, \u201cpotential\u201d, \u201cpossible\u201d, \u201cprobable\u201d,
\n\u201cbelieves\u201d, \u201cseeks\u201d, \u201cmay\u201d, \u201cwill\u201d, \u201cshould\u201d, \u201ccould\u201d or the
\nnegative of such terms or other similar expressions. Accordingly, these statements involve estimates, assumptions and uncertainties that
\ncould cause actual results to differ materially from those expressed in them. Any forward-looking statements are qualified in their entirety
\nby reference to the factors discussed throughout this prospectus.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

You
\nshould read this prospectus and the documents that we reference herein and have filed as exhibits to the registration statement, of which
\nthis prospectus is part, completely and with the understanding that our actual future results may be materially different from what we
\nexpect. You should assume that the information appearing in this prospectus is accurate as of the date on the front cover of this prospectus
\nonly. Because the risk factors referred to above could cause actual results or outcomes to differ materially from those expressed in
\nany forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking statements. Further,
\nany forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking
\nstatement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated
\nevents. New factors emerge from time to time, and it is not possible for us to predict which factors will arise. In addition, we cannot
\nassess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results
\nto differ materially from those contained in any forward-looking statements. We qualify all of the information presented in this prospectus,
\nand particularly our forward-looking statements, by these cautionary statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

USE
\nOF PROCEEDS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nwill not receive any proceeds from the sale of common stock offered by the Selling Stockholder. However, we will receive proceeds from
\nthe sale of our common stock to Selling Stockholder pursuant to the Financing Agreement. The proceeds from our exercise of the Put right
\npursuant to the Financing Agreement will be used for general corporate and working capital purposes and acquisitions or assets, businesses
\nor operations or for such other corporate purposes as the Board deems to be in our best interests. As of the date of this prospectus,
\nwe cannot specify with certainty all of the particular uses, and the respective amounts we may allocate to those uses, for the proceeds
\nwe may receive. Accordingly, we will have broad discretion in the way that we use these proceeds.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

SELLING
\nSTOCKHOLDER<\/span><\/p>\n

\u00a0<\/span><\/p>\n

This prospectus relates to the resale from time
\nto time by the selling stockholder identified herein of up to an aggregate of 43,213,508 shares of our common stock.<\/p>\n

\u00a0<\/span><\/p>\n

The
\nPurchase Shares are being registered to permit public sales of such securities, and the selling stockholder may offer the Purchase Shares
\nfor resale from time to time pursuant to this prospectus. The selling stockholder may also sell, transfer or otherwise dispose of all
\nor a portion of their Purchase Shares in transactions exempt from the registration requirements of the Securities Act or pursuant to
\nanother effective registration statement covering the sale of such securities.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table sets forth, based on information provided to us by the selling stockholder or known to us, the name of the selling stockholder,
\nand the number of shares of our common stock beneficially owned by the selling stockholder before and after this offering. The number
\nof shares owned are those beneficially owned, as determined under the rules of the SEC, and the information is not necessarily indicative
\nof beneficial ownership for any other purpose. Under these rules, beneficial ownership includes any shares of common stock as to which
\na person has sole or shared voting power or investment power and any shares of common stock that the person has the right to acquire
\nwithin 60 days through the exercise of any option, warrant or right, through conversion of any security or pursuant to the automatic
\ntermination of a power of attorney or revocation of a trust, discretionary account or similar arrangement. The selling stockholder is
\nnot a broker-dealer or an affiliate of a broker-dealer. The selling stockholder has not had any material relationship with us or any
\nof our predecessors or affiliates within the past three years.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nhave assumed all of the Purchase Shares reflected offered hereunder will be sold from time to time in the offering covered by this prospectus.
\nBecause the selling stockholder may offer all or any portions of the Purchase Shares listed in the table below, no estimate can be given
\nas to the amount of those Purchase Shares covered by this prospectus that will be held by the selling stockholder upon the termination
\nof the offering.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

AIV will
\nbe deemed to be an underwriter within the meaning of the Securities Act with respect to the Purchase Shares. Any profits realized
\nby the selling stockholder may be deemed to be underwriting commissions.<\/p>\n

\u00a0<\/span><\/p>\n\n\n\n
Selling Stockholder<\/td>\n\u00a0<\/td>\n\n

Number of Shares<\/span><\/p>\n

Beneficially<\/span><\/p>\n

Owned Prior to<\/span><\/p>\n

Offering<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

Maximum<\/span><\/p>\n

Number of<\/span><\/p>\n

Shares Offered<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

Number of<\/span><\/p>\n

Shares owned<\/span><\/p>\n

After Offering<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

Percentage of<\/span><\/p>\n

Shares Owned<\/span><\/p>\n

After Offering<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n<\/tr>\n
AIV Investments, LLC<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00<\/td>\n*<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a00<\/td>\n*<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
*<\/span><\/td>\n\n

The
\n Maximum Number of Shares Offered is comprised of: 43,213,508 shares being registered
\n herein with respect to the Amended Equity and Financing Agreement. Assumes that all of the
\n Purchase Shares held by the selling stockholder covered by this prospectus are sold and that
\n the selling stockholder acquires no additional shares of common stock before the completion
\n of this offering. However, as the selling stockholder can offer all, some, or none of their
\n Purchase Shares, no definitive estimate can be given as to the number of Purchase Shares
\n that the selling stockholders will ultimately offer or sell under this prospectus. Mark Grober
\n exercises dispositive power over the shares. AIV maintains an office at 420 Jericho Turnpike,
\n Suite 102, Jericho, NY 11753.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

PLAN
\nOF DISTRIBUTION<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nselling stockholder may, from time to time, sell any or all of its shares of our common stock on OTC Pink or any other stock exchange,
\nmarket officers existing as of the time of such repeal or modification trading facility on which the shares of our common stock are traded,
\nor in private transactions. These sales may be at fixed prices, prevailing market prices at the time of sale, at varying prices, or at
\nnegotiated prices. The selling stockholder may use any one or more of the following methods when selling shares:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nordinary brokerage transactions
\n and transactions in which the broker-dealer solicits purchasers;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nblock trades in which the
\n broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate
\n the transaction;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\npurchases by a broker-dealer
\n as principal and resale by the broker-dealer for its account;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nprivately negotiated transactions;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nbroker-dealers may agree
\n with the selling stockholders to sell a specified number of such shares at a stipulated price per share; or<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\na combination of any such
\n methods of sale.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Additionally,
\nbroker-dealers engaged by the selling stockholder may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive
\ncommissions or discounts from the selling stockholder (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser)
\nin amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in
\nexcess of a customary brokerage commissions.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

AIV
\nis an underwriter within the meaning of the Securities Act with respect to the Purchase Shares, and any broker-dealers or agents
\nthat are involved in selling the shares may be deemed to be \u201cunderwriters\u201d within the meaning of the Securities Act in connection
\nwith such sales. Any commissions received by such broker-dealers or agents, and any profit on the resale of the shares purchased by them,
\nmay be deemed to be underwriting commissions or discounts under the Securities Act. AIV has informed us that it does not have any written
\nor oral agreement or understanding, directly or indirectly, with any person to distribute our common stock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Discounts,
\nconcessions, commissions and similar selling expenses, if any, attributable to the sale of shares will be borne by the selling stockholder.
\nThe selling stockholder may agree to indemnify any agent, dealer, or broker-dealer that participates in transactions involving sales
\nof the shares if liabilities are imposed on that person under the Securities Act.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nare required to pay certain fees and expenses incurred by us incident to the registration of the shares covered by this prospectus. We
\nwill not receive any proceeds from the resale of any of the shares of our common stock by the selling stockholder. We will receive proceeds
\nfrom the sale of our common stock to AIV under the AIV Purchase Agreement. Neither the AIV Purchase Agreement with
\nAIV nor any rights of the parties under the AIV Purchase Agreement may be assigned or delegated to any other person.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nPurchase Shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws.
\nIn addition, in certain states, the Purchase Shares may not be sold unless they have been registered or qualified for sale in the applicable
\nstate or an exemption from the registration or qualification requirement is available and is complied with.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Under
\napplicable rules and regulations under the Exchange Act, any person engaged in the distribution of the Purchase Shares may not simultaneously
\nengage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M,
\nprior to the commencement of the distribution. In addition, the selling stockholder will be subject to applicable provisions of the Exchange
\nAct and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of
\nthe common stock by the selling stockholder or any other person. We will make copies of this prospectus available to the selling stockholder<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BUSINESS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Corporate
\nHistory and Organization<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Artificial
\nIntelligence Technology Solutions Inc. (the \u201cCompany,\u201d \u201cAITX,\u201d \u201cwe,\u201d \u201cour,\u201d or \u201cus\u201d)
\nwas incorporated in the State of Florida on March 25, 2010, under the name On the Move Systems Corp., and reincorporated in the State
\nof Nevada on February 17, 2015. On August 24, 2018, the Company changed its name to Artificial Intelligence Technology Solutions Inc.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\n2017, the Company acquired all of the ownership and equity interests in Robotic Assistance Devices, Inc. (\u201cRAD\u201d), a Nevada
\ncorporation founded by Steven Reinharz, the Company\u2019s current Chief Executive Officer and Chief Technology Officer (the \u201cAcquisition\u201d).
\nPrior to the Acquisition, the Company\u2019s operations consisted of an early-stage transportation services business that was disposed
\nof in connection with the Acquisition. As a result, the Acquisition was accounted for as a reverse recapitalization effected through
\na share exchange, with RAD treated as the accounting acquirer. No goodwill or other intangible assets were recorded in connection with
\nthe Acquisition, and the historical operations reflected in our consolidated financial statements are those of RAD.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Since
\nthe Acquisition, the Company has been engaged in the development, deployment, and commercialization of artificial intelligence and robotic
\nsolutions for security, monitoring, and operational applications. Mr. Reinharz was appointed Chief Executive Officer on March 2, 2021.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

As
\nof the date of this Annual Report on Form 10-K, the Company conducts substantially all of its operations through five (5) wholly owned
\nsubsidiaries: Robotic Assistance Devices, Inc. (\u201cRAD-I\u201d); Robotic Assistance Devices Group, Inc. (\u201cRAD-G\u201d); Robotic
\nAssistance Devices Mobile, Inc. (\u201cRAD-M\u201d); Robotic Assistance Devices Residential, Inc. (\u201cRAD-R\u201d); and Robotic
\nAssistance Devices Lanka (PVT) Ltd. (\u201cRAD Lanka\u201d), a Sri Lanka entity holding Port City Colombo status that operates as a
\nwholly owned subsidiary of RAD-G. The Company anticipates establishing an additional subsidiary, Robotic Assistance Devices Europe (\u201cRAD
\nEurope\u201d), during fiscal 2027 to support growing business activity in the European Union and to serve as the Company\u2019s cost
\ncenter for Genera Data Protection Regulation (GDPR)-compliant services.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Business
\nOverview<\/span><\/p>\n

\u00a0<\/span><\/p>\n

AITX
\nis a vertically integrated developer and operator of artificial intelligence-driven security and operational automation solutions. The
\nCompany designs, manufactures, deploys, and supports a portfolio of stationary devices, mobile autonomous platforms, and software products
\npowered by SARA\u2122 (Speaking Autonomous Responsive Agent), our proprietary agentic AI platform. SARA enables our devices to perceive,
\ndecide, communicate, and act autonomously in real time, without continuous human intervention.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Substantially
\nall of our revenue is generated through recurring monthly subscription contracts, typically with minimum twelve-month initial terms,
\nunder a Solutions-as-a-Service model in which the Company retains ownership of the deployed hardware. The Company also sells units outright
\nto a limited number of legacy enterprise customers. We expect that, over the deployment life of a subscribed unit, gross margin will
\nexceed 75%, and that gross margin on outright sales will exceed 50% based on average bill of materials costs over the past two years
\nand related sales and dealer channel pricing that our market has appeared to accept.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\ncustomer base spans logistics, healthcare, commercial real estate, manufacturing, retail, education, government, and residential markets,
\nand includes one Fortune Top 10 enterprise and several additional Fortune 500 enterprises. As of the date of this report, the Company
\nhas deployed approximately one thousand devices across the United States and Canada, and is in the early stages of European market entry.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Industry
\nContext and Long-Term Vision<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Management
\nviews the physical security industry as being in the early stages of the most significant structural transformation in its history. The
\nfounder, Steve Reinharz, has written and spoken extensively and is a regular speaker about this transformation since company inception
\nat industry association events hosted by the two industry leading organizations, SIA (Security Industry Organization) and ASIS (American
\nSociety for Industry Security). The industry has historically depended on human guard labor, passive video surveillance, and manually
\nmonitored alarm systems\u2014a model substantially unchanged in its fundamentals for more than fifty years. That model is, in our view,
\nis undergoing change driven by a variety of factors including increasing challenges with labor and the advent of AI solutions. Guard
\nlabor costs continue to rise faster than commercial security budgets; qualified personnel are increasingly difficult to recruit and retain;
\nmanual monitoring workflows cannot scale to the volume of cameras and sensors now deployed; and the response-time performance of human-mediated
\nsystems is incompatible with the speed at which modern threats develop.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Other
\nindustries\u2014logistics, manufacturing, financial services, agriculture\u2014have already passed through the corresponding transition
\nfrom mechanized labor (the Third Industrial Revolution) to autonomous, AI-orchestrated workflows (commonly described as the Fourth Industrial
\nRevolution, or Industry 4.0). The physical security industry, in management\u2019s view, is now in the first phase of that same transition.
\nAITX is positioned to be a primary participant in this shift, and a substantial portion of the Company\u2019s strategy, capital allocation,
\nand product roadmap is oriented around accelerating it.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Internally,
\nthe Company refers to the long-term outcome of this transition as \u201cRAD Town\u201d\u2014a vision in which AITX\u2019s portfolio
\noperates as an integrated autonomous-security fabric across a campus, community, or jurisdiction. In a fully realized RAD Town deployment,
\nROAMEO mobile units conduct outdoor patrol; AVA manages vehicle access at gates and perimeters; TOM handles credentialed pedestrian and
\nvisitor access at building entries; stationary ROSA, RIO, and RAM units provide fixed-position coverage of high-value zones; RADCam protects
\nresidential and small-business endpoints; and SARA orchestrates all of it as a single agentic layer, escalating to human responders only
\nwhen necessary. RAD Town is not a single named site or development; it is the design target around which our product roadmap, software
\narchitecture, and partnership strategy are organized.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nbelieve that the companies that capture the largest share of the value created by this transition will be those that combine proprietary
\nhardware, proprietary AI, a broad partner ecosystem, and operational discipline. The Company\u2019s strategy is built on each of these
\nelements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Operating
\nStructure and Sales Channels<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany is organized around four operating subsidiaries focused on commercial product sales and one development and licensing subsidiary.
\nFor purposes of management reporting and strategic capital allocation, we view our commercial activity as proceeding along three principal
\nsales avenues: (i) the stationary product portfolio operated through RAD-I; (ii) the mobile autonomous platform operated through RAD-M;
\nand (iii) the agentic AI platform and ecosystem partnerships operated through RAD-G. RAD-R operates a residential product line that is
\ncurrently a smaller component of consolidated revenue and is discussed separately below.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Management
\nbelieves that RAD-I, on a standalone basis (based on direct expenses for only stationary solutions and therefore stripped of any
\nexpense not related to stationary solutions and its development), has achieved a point at which its recurring revenue and gross margin
\ncould support positive cash flow operations\u00a0\u00a0\u00a0\u00a0 today. The Company has elected to continue investing materially in
\nRAD-M and RAD-G because we believe those investments will produce substantially larger long-term revenue and enterprise value than would
\nbe achievable from RAD-I alone. The Company\u2019s consolidated results therefore continue to reflect the costs of those investments,
\nspecifically in mobile, residential and agentic solutions. This positioning reflects management\u2019s view based on internal segment-level
\nanalysis; the Company does not separately publish audited standalone financial statements for individual subsidiaries.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD-I:
\nStationary Solutions<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Robotic
\nAssistance Devices, Inc. (\u201cRAD-I\u201d) operates the Company\u2019s stationary product portfolio. RAD-I is the largest revenue
\ncontributor within the consolidated group, and its product line represents the most mature, most deployed, and most operationally proven
\nelements of our portfolio. RAD-I\u2019s solutions are typically deployed at fixed locations\u2014building entries, gates, perimeters,
\nparking facilities, and interior chokepoints\u2014and are delivered as recurring subscription services.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD-I\u2019s
\ncurrent product portfolio includes the following solutions, each of which is integrated with the Company\u2019s SARA agentic AI platform:<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ROSA\u2122
\n(Responsive Observation Security Agent)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ROSA
\nis a compact, self-contained stationary security device combining visual analytics, two-way audio engagement, and AI-driven escalation.
\nROSA is the Company\u2019s most widely deployed solution and serves as the foundation for several other products in the portfolio. ROSA
\nis used for perimeter and entry-point monitoring, loitering and trespass deterrence, firearm detection, and a range of related applications,
\nand replaces or substantially reduces the need for guard services at protected locations.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RIO\u2122
\n(ROSA Independent Observatory)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RIO
\nis a portable, solar-powered security tower comprising one or two ROSA devices mounted atop a solar trailer assembly. RIO is designed
\nfor rapid deployment in environments where permanent infrastructure is impractical, including construction sites, retail parking lots,
\nhealthcare campuses, distribution yards, public events, and temporary high-risk locations. Hundreds of RIO units are actively deployed
\nacross the United States.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

AVA\u2122
\n(Autonomous Verified Access)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

AVA
\nis a vehicle gate access management solution combining license plate recognition, two-way voice interaction, and cloud-based authorization.
\nAVA is deployed at logistics hubs, gated communities, corporate and industrial campuses, and multi-tenant commercial properties. AVA
\nis sold both as a standalone subscription and as a component of a broader access platform that includes the Homeowners Association Platform
\n(\u201cHOAP\u201d), a digital pass and visitor management application used by residential communities.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

TOM\u2122
\n(The Office Manager)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

TOM
\nautomates visitor management and front-desk functions at credentialed pedestrian access points. TOM is deployed across corporate campuses,
\nmulti-tenant commercial facilities, government buildings, and educational institutions. One of the world\u2019s largest third-party
\nlogistics providers uses TOM to manage visitor intake across its North American distribution network.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ROSS\u2122
\nand RAM\u2122 (Camera Augmentation Software and Hardware)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ROSS
\nis a software platform that adds AI-driven analytics, escalation workflows, and SARA-enabled response to existing third-party IP security
\ncameras. RAM is a complementary hardware module that adds two-way audio, voice interaction, and ROSA-equivalent SARA functionality to
\nthird-party cameras. ROSS and RAM enable customers to modernize their existing camera infrastructure without full hardware replacement
\nand provide a low-friction path to broader RAD ecosystem adoption.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Firearm
\nDetection Analytic<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany\u2019s firearm detection analytic identifies visible handguns and long guns in real time and is available across RAD-I devices
\nand through the ROSS platform. When integrated with SARA, the analytic produces autonomous escalation, voice intervention, administrator
\nnotification, and first-responder outreach within seconds of detection. The analytic received the American Security Today ASTORS award
\nfor Best Metal\/Weapons Detection Solution.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Forthcoming
\nStationary Solutions<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany expects to introduce additional stationary solutions during fiscal year 2027. These products are in active development and are
\nintended to expand RAD-I\u2019s coverage of indoor environments, specialized vertical markets, and high-volume credentialed-access workflows.
\nThe Company will provide additional disclosure regarding specific forthcoming products through press releases and subsequent periodic
\nfilings as they progress to commercial release.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD-M:
\nMobile Autonomous Solutions<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Robotic
\nAssistance Devices Mobile, Inc. (\u201cRAD-M\u201d) operates the Company\u2019s mobile autonomous platform business. RAD-M is the
\nsecond of the Company\u2019s three primary sales avenues and is the principal area in which the Company has invested development capital
\nover the past several fiscal years.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ROAMEO\u2122
\n(Rugged Observation Assistance Mobile Electronic Officer)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ROAMEO
\nis a fully autonomous, outdoor mobile security vehicle designed to conduct routine patrol operations across corporate campuses, distribution
\nyards, parking facilities, educational and healthcare campuses, municipal parks, and similar large outdoor environments. ROAMEO operates
\nwithout on-site human pilots, relying on the Company\u2019s autonomous navigation stack, on-board sensor suite, cellular and 5G connectivity,
\nand full integration with the SARA agentic AI platform. ROAMEO is designed to detect, assess, communicate, escalate, and report autonomously,
\nand to replace or substantially reduce the cost of mobile guard patrols conducted in vehicles or on foot.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Development
\nInvestment and Deployment Status<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Management
\nestimates that the Company has spent approximately $20 million in the cumulative development of the ROAMEO platform across fiscal years
\npreceding the fiscal year covered by this report. This estimate includes cash research and development expenditures, engineering costs,
\nallocated executive and indirect labor, and other indirect costs reasonably attributable to the ROAMEO program. The Company does not
\nseparately report segment-level research and development on this basis in its audited consolidated financial statements; the $20 million
\nfigure reflects management\u2019s internal allocation and view and is provided here to give investors a directionally accurate sense
\nof the scale of investment that has been made.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Following
\nthe additional engineering, manufacturing, and integration work conducted during the fiscal year ended February 28, 2026, the Company
\ncommenced commercial deployment and recurring billing on two ROAMEO units in May 2026. Initial deployments are at two enterprise customer
\nsites: a major logistics operator (previously disclosed by press release) and a healthcare group. The Company has additional pre-sold
\nunits in its order pipeline and is actively expanding its ROAMEO production capacity to meet demand.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD-M
\nFinancial Expectations<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Management
\nhas significant expectations for the RAD-M business. Each ROAMEO deployment is structured as a recurring monthly subscription at a substantially
\nhigher monthly price point than the Company\u2019s stationary products, and the addressable market for outdoor autonomous patrol is
\nlarge relative to the Company\u2019s current revenue base\u00a0. Management expects that, based on the current sales pipeline and assuming
\nsuccessful execution of the ROAMEO production ramp, RAD-M will surpass RAD-I\u2019s monthly recurring revenue contribution at some point
\nas management believes the mobile business has a higher revenue ceiling than stationary solutions. This is a forward-looking statement;
\nactual results may differ materially, and the timing and magnitude of RAD-M\u2019s revenue contribution will depend on a range of factors
\nincluding production capacity, customer adoption, and the operational performance of deployed units. See \u201cCautionary Statement
\nRegarding Forward-Looking Information\u201d at the front of this report.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD-G:
\nAgentic AI and Platform Partnerships<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Robotic
\nAssistance Devices Group, Inc. (\u201cRAD-G\u201d) operates the Company\u2019s agentic AI development and platform business. RAD-G
\nholds, develops, and commercializes the SARA platform and related AI assets, and is the operating home of the Company\u2019s partnership
\nand ecosystem strategy. RAD Lanka, the Company\u2019s Sri Lanka subsidiary, operates as a wholly owned subsidiary of RAD-G.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

SARA\u2122
\n(Speaking Autonomous Responsive Agent)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

SARA
\nis the Company\u2019s proprietary agentic AI platform. SARA combines large language model architecture, situational logic, voice interaction,
\nand autonomous action to enable RAD devices\u2014and, increasingly, third-party devices and platforms\u2014to engage with and respond
\nto security situations in real time. SARA is embedded in substantially all of the Company\u2019s deployed devices and is the foundational
\nasset around which RAD-G\u2019s commercial activity is organized.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

SARA
\nreceived Judges\u2019 Choice and Best in Threat Detection and Response Solutions honors in the Security Industry Association New Product
\nShowcase at ISC West 2025. In 2026, SARA was again recognized at ISC West in connection with the Company\u2019s integration partnership
\nwith Immix, the leading central station monitoring software platform.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Platform
\nPartnership Strategy<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany\u2019s long-term view is that the value of an agentic AI platform in physical security is determined principally by the breadth
\nof devices, monitoring platforms, dealers, and end users with which it integrates. RAD-G is therefore organized around expanding the
\nSARA ecosystem along five categories of relationship:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n
\n\u25cf<\/span><\/td>\nMonitoring
\n platforms and central stations. The Company\u2019s integration with Immix, announced and
\n recognized during fiscal 2026, is intended as a model for embedding SARA into the platforms
\n that already sit at the center of the remote video monitoring industry. Management views
\n this category as the highest-leverage opportunity for SARA adoption.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u25cf<\/span><\/td>\nThird-party
\n hardware manufacturers. SARA\u2019s commercial value increases with every additional camera,
\n sensor, and access control device it can operate. The Company is actively pursuing licensing
\n and integration arrangements with hardware vendors across the security industry.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u25cf<\/span><\/td>\nDealers
\n and integrators. As of the date of this report, the Company\u2019s authorized dealer network
\n has grown to over one hundred dealers across the United States, Canada, and the European
\n Union. The dealer channel is one of the Company\u2019s primary growth engines, and RAD-G
\n supports the channel with SARA-enabled product positioning and joint sales materials.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u25cf<\/span><\/td>\nEnterprise
\n and Fortune 500 end users. The Company\u2019s existing enterprise customer base serves as
\n both a revenue base and a credibility base for SARA adoption. Deepening relationships within
\n existing accounts and converting reference deployments into category-defining case studies
\n is a continuing priority.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u25cf<\/span><\/td>\nInsurance,
\n regulatory, and policy stakeholders. As AI-orchestrated security response becomes a more
\n substantial component of the physical security industry, insurance carriers, municipal regulators,
\n and standards bodies will increasingly shape the operating environment. The Company participates
\n in industry policy efforts, including through Mr. Reinharz\u2019s role on the Board of the
\n Security Industry Association and his chairmanship of its Autonomous Working Group.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

RAD-G
\nSales Funnel and Expectations<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD-G,
\nbased on its developing \u2018SARA\u2019 solution, has generated substantial industry interest and a relatively substantial
\nsales funnel. The solution has won two Security Industry Association (SIA) awards and Steve Reinharz has been asked several times to
\nspeak to various groups and industries about it. This, combined with various partner relationships, incoming interest, outbound prospect
\ngeneration and other sales activities have created a substantial RAD G sales funnel in management\u2019s view for an early-stage AI
\nplatform business. Management has high expectations for substantial revenue generation in this subsidiary. This is a forward-looking
\nstatement and actual results may differ materially.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD-R:
\nResidential Solutions<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Robotic
\nAssistance Devices Residential, Inc. (\u201cRAD-R\u201d) operates the Company\u2019s residential security product business, principally
\nthrough the RADCam\u2122 product line. RADCam is an AI-powered, voice-enabled security camera designed for homeowners, property managers,
\nand small businesses, and is differentiated from typical residential security cameras by its real-time conversational engagement capability,
\nsupported by SARA in an \u201cSOS\u201d configuration.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

RAD-R\u2019s
\nfinancial performance during fiscal 2026 was substantially below Company\u2019s expectations. The principal cause was the structural
\ndifference between business-to-business (\u201cB2B\u201d) and business-to-consumer (\u201cB2C\u201d) go-to-market economics. The
\nCompany\u2019s core operating expertise, sales channel, and customer acquisition model are built around B2B sale cycles. The B2C residential
\nmarket requires a substantially higher level of consumer marketing spend than the Company was prepared to commit during fiscal 2026,
\ngiven competing capital priorities. The business generated an immaterial amount to consolidated revenue.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Notwithstanding
\nthe financial result, management continues to view RADCam as a superior product to comparable solutions available in the residential
\nsecurity camera market. The Company has no immediate plans to discontinue service to existing RADCam subscribers or to remove the product
\nfrom sale. RADCam continues to be available for purchase through radcam.ai, Amazon, and other retail outlets.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany has modified the Residential software so that it can be deployed through RAD-I into the small-and-medium business and enterprise
\nmarkets and be compatible with RAD\u2019s primary solution RADSoC\u2122.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Sales,
\nChannels, and Customers<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany sells through three principal channels: direct enterprise sales, an authorized dealer network, and online retail (in the case
\nof RADCam). The direct enterprise sales team is led by a Senior Vice President of Sales with multiple direct reports and is supplemented
\nby the President of RAD and the Company\u2019s Chief Executive Officer in larger and more strategic accounts. The dealer network, which
\nhas grown to over one hundred authorized dealers across the United States, Canada, and the European Union, addresses small and middle-market
\naccounts and provides geographic reach that direct enterprise sales cannot economically cover.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany\u2019s end-user base spans a broad cross-section of industries. Sales pipeline and deployment activity during fiscal 2026 was
\nconcentrated in logistics and distribution, healthcare, commercial real estate, manufacturing, retail, education, government, and residential
\ncommunity markets.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Management
\nhas identified that the conversion rate of qualified sales opportunities to deployed clients\u2014which historically lagged behind expectations\u2014improved
\nduring fiscal 2026, principally as a result of (i) the maturity of the Gen 4 hardware platform, (ii) the broader integration of SARA
\nacross the portfolio, (iii) a growing set of reference deployments and case studies, and (iv) targeted investment in dealer enablement.
\nThe Company continues to focus on this conversion rate as a primary operational metric.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Manufacturing
\nand Supply Chain<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany performs final assembly, system integration, software loading, and quality assurance for its hardware products at its facility
\nin Ferndale, Michigan. Sub-component manufacturing, including machined metal and plastic components, printed circuit boards, and selected
\nsub-assemblies, is sourced from a network of domestic and international suppliers. The Company works to, when reasonable, maintain redundant
\nsuppliers for substantially all critical components and has structured its supply chain to mitigate concentration risk.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Hardware
\ngross margins to date have been produced under small-batch production conditions. Management expects margin expansion over time as production
\nvolumes increase and as the Company captures economies of scale, particularly in connection with the ROAMEO production ramp and additional
\nstationary product introductions.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Intellectual
\nProperty<\/span><\/p>\n

\u00a0<\/span><\/p>\n

All
\nhardware designs, software, firmware, AI models, and supporting platforms used in the Company\u2019s products are designed, developed,
\nand owned by the Company and its subsidiaries. RAD-I owns the principal intellectual property associated with the Company\u2019s stationary
\nproduct platform, including the RAD Service Organization Control (SoC) command and control software, the RAD Mobile SoC , the RADGuard
\napplication, and the related operating architecture. RAD-G owns the SARA platform and the underlying agentic AI assets. RAD-M owns the
\nautonomous navigation, fleet management, and ROAMEO-specific platform technology.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany relies on a combination of trade secret protection, confidentiality and invention-assignment agreements with employees and contractors,
\ncopyright, and trademark protection to protect its intellectual property. The Company holds registered trademarks on its principal product
\nnames. The Company does not currently rely materially on patent protection.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Competition<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany competes across three distinct but related markets: traditional guard services and manned monitoring; legacy passive security
\nhardware (cameras, access control devices, alarm systems); and an emerging set of AI-driven security technology companies. Traditional
\nguard and monitoring service providers compete on price and incumbency but are structurally disadvantaged by labor cost inflation and
\nlabor availability constraints. Legacy hardware vendors compete on installed base and channel breadth but typically lack agentic AI capability
\nand recurring software economics. AI-native security technology companies, including a small number of autonomous robotics competitors,
\ncompete on technology positioning, but most lack the integrated hardware-plus-software-plus-AI delivery model that the Company has developed.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Management
\nbelieves the Company\u2019s principal competitive advantages are: (i) the integration of proprietary hardware, software, and the SARA
\nagentic AI platform under common ownership and development; (ii) a broad deployed installed base and the operational learning derived
\nfrom it; (iii) a recurring-revenue business model that aligns the Company with customer success; (iv) a growing dealer and integration
\npartner ecosystem; and (v) the demonstrated ability to bring complex hardware products from concept to commercial deployment, as evidenced
\nby the ROAMEO program.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Human
\nCapital and Culture<\/span><\/p>\n

\u00a0<\/span><\/p>\n

As
\nof the date of this report, the Company has approximately 135 team members across the United States, Canada, the United Kingdom, and
\nAsia, including Sri Lanka. The Company\u2019s Sri Lanka operations are conducted through RAD Lanka, which holds Port City Colombo special
\neconomic zone status, providing tax efficiency and access to a cost-effective, educated technical workforce. None of the Company\u2019s
\nemployees are represented by a union, and management considers employee relations to be excellent.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany has built its culture around the principles of emotional intelligence, accountability, and ownership. Self-awareness, composure,
\ninternal motivation, empathy, and social skill are deliberately weighted in the hiring process. Team members are expected to operate
\nwith multidisciplinary capability and to adjust scope and focus as the business requires. This culture is, in management\u2019s view,
\na meaningful operational asset: it allows the Company to move faster than competitors of comparable size, to absorb the inevitable setbacks
\nof a hardware-and-AI development business, and to retain experienced team members through periods of capital constraint.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany\u2019s leadership team includes deep experience in security operations, robotics engineering, software development, artificial
\nintelligence, sales, and capital markets. Mr. Reinharz serves on the Board of the Security Industry Association and chairs its Autonomous
\nWorking Group, and is a frequent speaker and panelist at industry conferences including ISC West and GSX.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Cybersecurity
\nand Compliance<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany achieved SOC 2 Type 2 status in February 2025 and has maintained SOC 2 Type 2 through annual audits. The Company has also achieved
\nadditional cybersecurity certifications appropriate to its enterprise and government customer base. SOC 2 Type 2 status is a benchmark
\nstandard, and in many cases a procurement requirement, for enterprise and government software and security purchases, and the Company\u2019s
\nachievement and maintenance of this status reflects management\u2019s ongoing commitment to data protection and operational integrity.
\nAdditional disclosure regarding the Company\u2019s cybersecurity program is provided under Item 1C of this report.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Available
\nInformation<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany\u2019s principal corporate website is www.aitx.ai. Information regarding the Company\u2019s subsidiaries and products is also
\navailable at www.radsecurity.com (RAD-I), www.radm.ai (RAD-M), www.radgroup.ai (RAD-G), www.radresidential.ai (RAD-R), and www.radcam.ai
\n(RADCam consumer information). The Company makes available, free of charge through its website and through the SEC\u2019s EDGAR system
\nat www.sec.gov, its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those
\nreports, as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange
\nCommission.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

References
\nto the Company\u2019s websites in this report are provided for convenience and information only; the content of those websites is not
\nincorporated by reference into this report.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Press
\nAnnouncements<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During
\nthe fiscal year, the Company issued over 100 press releases, the vast majority of them being sales announcements and new authorized dealers
\nbeing signed. Public events, conferences, awards and new product announcements were also publicized via press releases. All Company press
\nreleases can be found here: AITX News – AITX – Artificial Intelligence Technology Solutions<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Legal
\nProceedings<\/span><\/p>\n

\u00a0<\/span><\/p>\n

See
\nItem 3 – Legal Proceedings.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

MARKET
\nFOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Market
\nfor Common Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\ncommon stock trades on the OTC Pink under the symbol \u201cAITX\u201d.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Holders<\/span><\/p>\n

\u00a0<\/span><\/p>\n

As of June 8, 2026, there were approximately
\n43 holders of our common stock, not including shares held in \u201cstreet name\u201d in brokerage accounts, which are unknown.<\/p>\n

\u00a0<\/span><\/p>\n

Dividends<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nhave not declared or paid any cash dividends on its common stock and does not anticipate paying dividends for the foreseeable future.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

MANAGEMENT\u2019S
\nDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing discussion of our financial condition and results of operations should be read in conjunction with the consolidated financial
\nstatements and the notes to those financial statements that are included elsewhere in this report. Our discussion includes forward-looking
\nstatements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions.
\nActual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result
\nof a number of factors, including those set forth under the Risk Factors, Forward-Looking Statements and Business sections in this report.
\nWe use words such as \u201canticipate,\u201d \u201cestimate,\u201d \u201cplan,\u201d \u201cproject,\u201d \u201ccontinuing,\u201d
\n\u201congoing,\u201d \u201cexpect,\u201d \u201cbelieve,\u201d \u201cintend,\u201d \u201cmay,\u201d \u201cwill,\u201d \u201cshould,\u201d
\n\u201ccould,\u201d and similar expressions to identify forward-looking statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Overview<\/span><\/p>\n

\u00a0<\/span><\/p>\n

AITX
\nwas incorporated in Florida on March 25, 2010. AITX reincorporated into Nevada on February 17, 2015. AITX\u2019 fiscal year end is February
\n28 (February 29 during leap year). AITX is located at 10800 Galaxie Ave, Ferndale Michigan, 48220, and our telephone number is 877-767-6268.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Results
\nof Operations<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table shows our results of operations for the years ended February 28, 2026 and February 28, 2025. The historical results presented
\nbelow are not necessarily indicative of the results that may be expected for any future period.<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPeriod<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nChange<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDollars<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPercentage<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Revenues<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n7,745,336<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n6,130,886<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1,614,450<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n26<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
Gross profit<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n5,533,700<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,744,564<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,789,136<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n48<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
Operating expenses<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n17,477,097<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n17,691,437<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(214,340<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(1<\/span><\/td>\n)%<\/span><\/td>\n<\/tr>\n
Loss from operations<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(11,943,397<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(13,946,873<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,003,476<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n14<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
Other income (expense),
\n net<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(2,566,854<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(4,988,719<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,421,865<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n49<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
Net loss<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(14,510,251<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(18,935,592<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n4,425,341<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n23<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table presents revenues from contracts with customers disaggregated by product\/service:<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nChange<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDollars<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPercentage<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Device rental activities<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n6,920,336<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n5,050,255<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1,870,081<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n37<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
Direct sales of goods
\n and services<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n825,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,080,631<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(255,631<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(24<\/span><\/td>\n)%<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n7,745,336<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n6,130,886<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1,614,450<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n26<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Revenue<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Total
\nrevenue for the year ended February 28, 2026, was $7,745,336, which represented an increase of $1,614,450 or 26% compared to total revenue
\nof $6,130,886 for the year ended February 28, 2025. Rental activities increased by $1,870,081 or 37%, as the Company continues to grow
\nits product line and customer base. Direct sales were $255,631 or 24% lower than the prior year because most customers chose the Company\u2019s
\nrental model.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Gross
\nprofit<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Total
\ngross profit for the year ended February 28, 2026 was $5,533,700, which represented an increase of $1,789,136, compared to total gross
\nprofit of $3,744,564 for the year ended February 28, 2025. The increase is a result of the increase in revenues above, and gross profit
\n% which was 71% for the year ended February 28, 2026 was 61% for the prior year. The gross profit % increased as the increase in higher
\nmargin rental activities in the product mix, and overhead being allocated over a higher sales base.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Operating
\nexpenses<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Operating
\nexpenses for the years ended February 28, 2026 and February 28, 2025 comprised of the following:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPeriod<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nChange<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Year
\n Ended<\/span><\/p>\n

February
\n 28, 2026<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Year
\n Ended<\/span><\/p>\n

February
\n 28, 2025<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDollars<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPercentage<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Research and development<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n4,128,155<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n3,462,558<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n665,597<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n19<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
General and administrative<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12,933,696<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n13,559,009<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(625,313<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(5<\/span><\/td>\n)%<\/span><\/td>\n<\/tr>\n
Depreciation and amortization<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n141,051<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n429,139<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(288,088<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(67<\/span><\/td>\n)%<\/span><\/td>\n<\/tr>\n
Operating lease cost and rent<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n251,883<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n240,731<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n11,152<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n5<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
Loss on disposal of
\n fixed assets<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n22,312<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n–<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n22,312<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n–<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
\u00a0Operating expenses<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n17,477,097<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n17,691,437<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(214,340<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(1<\/span><\/td>\n)%<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\noperating expenses were comprised of general and administrative expenses, research and development, depreciation and amortization, operating
\nlease and rent and a loss on disposal of fixed assets. General and administrative expenses consisted primarily of professional services,
\nautomobile expenses, advertising, salaries and wages, travel expenses and rent. Our operating expenses during the years ended February
\n28, 2026 and February 28, 2025 were $17,477,097 and $17,691,437, respectively. The overall $214,340 decrease in operating expenses was
\nprimarily attributable to the following changes in operating expenses:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nResearch
\n and development expenses increased by $665,597 as the Company continued to focus on current product development , new software solutions
\n and improvements. <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nGeneral
\n and administrative expenses decreased by $625,313 primarily due to the following changes:<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Following
\nis a summary of account decreases:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u2014<\/span><\/td>\nFor
\n the year ended February 28, 2026 stock based compensation to CEO in equity awards was $1,500,000 with a charge of $315,848 for the
\n Employee Stock Option Plan (ESOP) all totaling $1,815,848 compared with stock based compensation to CEO in equity awards was $$1,500,000
\n and a charge of $331,685 for the ESOP all totaling $$1,831,685 for the year ended February 28, 2025. This represents an decrease
\n of $15,837 in stock based compensation. The stock based compensation for the CEO is payable in Series G and has been deferred until
\n after a year.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014<\/span><\/td>\nWages,
\n salaries and payroll levies for the CEO decreased by $1,388,989 which is explained by a $1,500,000 decrease in discretionary bonus
\n charged, all of which was deferred compensation offset by a $100,000 increase in base salary increased and an $11,011 increase in
\n payroll levies.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014<\/span><\/td>\nProfessional
\n fees decreased by $125,716 due to lower legal fees because of litigation in the prior year that has been resolved with no litigation
\n in the current year.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

These
\n decreases are partially offset by the following increases: <\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u2014<\/span><\/td>\nWages,
\n salaries and payroll levies for the staff increased by $91,609 due to staff increases (2).<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014<\/span><\/td>\nCommissions
\n increased by $198,781 due to higher revenues.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014<\/span><\/td>\nOffice
\n expense increased by $184,084 due to an increase in computer software purchases.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014<\/span><\/td>\nInsurance
\n costs increased by $100,670 due to higher general and liability insurance costs.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014
\n <\/span><\/td>\n		Travel
\n increased by $76,119 due to more overseas travel to explore and find lower cost suppliers.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014<\/span><\/td>\nRMC
\n costs l increased by $79,102 due to higher revenues.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014<\/span><\/td>\nMarketing
\n costs increased by $51,449 to promote new products.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014<\/span><\/td>\nDues
\n and subscriptions increased by $28,180 for new software subscriptions.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014<\/span><\/td>\nBad
\n debts expense increased by $54,723. <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u2014<\/span><\/td>\nThe
\n remaining increases and offsetting decreases were distributed amongst other general and administrative accounts.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nOperating
\n lease cost and rent increased by $11,152. These are due to new short -term leases in the current year.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nDepreciation
\n and amortization decreased by $288,088 due to a change in allocation , based on experience for revenue earning devices used.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nLoss
\n on disposal of fixed assets was $22,312 in the current year as older equipment was disposed of.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Other
\nincome (expense)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Other
\nincome (expense) consisted of interest expense and gain on settlement of debt. Other income (expense) during the years ended February
\n28, 2026 and February 28, 2025, was ($2,566,854) and ($4,988,719), respectively.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nchange in other income (expense) was due to the following:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nInterest
\n expense increased by $544,558 due to the following : Amortization of debt discounts increased by $264,835, and for the year ended
\n February 28, 2026 was $536,070 compared with $271,235 for the year ended February 28, 2025. This increase was due to the amortization
\n of new note discounts.. Interest expense was $4,147,535 for the year ended February 28, 2026, compared with $4,188,866 for the year
\n ended February 28, 2025. This $41,331 decrease was due to the settlement of a $3.7 million loan which offset new interest on new
\n loans. Deferred variable payment obligation (DVPO) expense was $1,260,469 for the year ended February 28, 2026, compared with $996,881
\n for the year ended February 28, 2025. This $263,588 increase was a result of the increase in revenues. <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nGain
\n on settlement of debt increased by $2,999,423 to a gain on settlement of a $3.7 million loan offset by a loss on settlement of accrued
\n interest during the current year.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\nCompany\u2019s loss from operations for the year ended February 28, 2026 was $11,943,397 which represented a decrease in loss of $2,003,476
\ncompared to a loss of $13,946,873 for the year ended February 28, 2025. The higher revenues and gross profit in 2026 along with the decrease
\nin operating expenses contributed to this change. Note that the Company had a net loss of $14,510,251 for the year ended February 28,
\n2026, as compared to net loss of $18,935,592 for the year ended February 28, 2025. This $4,425,341 change is mostly attributable to the lower loss from operations and gain on settlement of debt.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Going
\nConcern<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\naccompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The accompanying
\nfinancial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of
\nassets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a
\ngoing concern.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

For
\nthe year ended February 28, 2026, the Company had negative cash flow from operating activities of $9,344,534. As of February 28, 2026
\nthe Company has an accumulated deficit of $171,121,742 and negative working capital of $17,017,745. Management does not anticipate having
\npositive cash flow from operations in the near future. These factors raise substantial doubt about the Company\u2019s ability to continue
\nas a going concern for the twelve months following the issuance of these financial statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany does not have the resources at this time to repay all its credit and debt obligations, make any payments in the form of dividends
\nto its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business.
\nAt the same time management points to its successful history with maintaining Company operations and reminds all with reasonable confidence
\nthis will continue. Management has plans to address the Company\u2019s financial situation as follows:<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Management
\nis committed to raise either non-dilutive funds or minimally dilutive funds. There is no assurance that these funds will be able to be
\nraised nor can we provide assurance that these possible raises may not have dilutive effects. In May 2026, the Company entered into an
\nequity financing agreement whereby an investor will purchase up to $10,000,000 of the Company\u2019s common stock at a discount over
\na two-year period. There remains approximately $10 million left to issue under this arrangement. Management believes that it has the
\nnecessary support to continue operations by continuing its funding methods in the following ways : growing revenues ,through equity proceeds,
\nand issuing debt.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Capital
\nResources<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table summarizes total current assets, liabilities and working capital for the period indicated:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current assets<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n2,935,003<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n5,028,543<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current liabilities<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n19,952,748<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n7,576,681<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Working capital<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(17,017,745<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(2,548,138<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

As
\nof February 28, 2026 and February 28, 2025, we had a cash balance of $109,043 and $865,975, respectively.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Summary
\nof Cash Flows<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Year
\n Ended<\/span><\/p>\n

February
\n 28, 2026<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Year
\n Ended<\/span><\/p>\n

February
\n 28, 2025<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net cash used in operating activities<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(9,344,534<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(12,196,388<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Net cash provided by (used in) investing
\n activities<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n(12,861<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(79,965<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Net cash provided by financing activities<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n8,600,463<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n13,036,402<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Net
\ncash used in operating activities for the year ended February 28, 2026 was $9,344,534, which included a net loss of $14,510,251, non-cash
\nactivity such as the gain on settlement of debt of $3,434,685, amortization of debt discount of $536,078, penalty added to the face value
\nof loan of $24,510, stock based compensation of $1,815,848, reduction in right of use asset $141,217, accretion of lease liability $103,956,
\nincrease in related party accrued payroll and interest $132,268, inventory recovery of ($290,000), loss on disposal of revenue earning
\ndevices and fixed assets of $93,249, bad debts expense $138,405, depreciation and amortization of $2,122,730 and change in operating
\nassets and liabilities of $3,782,141.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Net
\ncash provided by (used in) investing activities.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Net
\ncash used in investing activities for the year ended February 28, 2026 was $12,861. This consisted of the purchase of fixed assets of
\n($10,863), purchase of trademarks of ($1,998).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Net
\ncash provided by (used in) financing activities.<\/span><\/p>\n

Net
\ncash provided by financing activities was $8,600,463 for the year ended February 28, 2026. This consisted of share proceeds net of issuance
\ncosts of $5,219,853, and proceeds from loans payable $4.808,171 offset by repayments of loans payable of $1,302,561 and redemption of
\nSeries C Preferred Shares of ($125,000).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Off-Balance
\nSheet Arrangements<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\ndo not have any outstanding off-balance sheet guarantees, interest rate swap transactions or foreign currency forward contracts. Furthermore,
\nwe do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity
\nor market risk support to such entity. We do not have any variable interest in an unconsolidated entity that provides financing, liquidity,
\nmarket risk or credit support to us or that engages in leasing, hedging or research and development services with us.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Significant
\nAccounting Policies<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Use
\nof Estimates<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\norder to prepare financial statements in conformity with accounting principles generally accepted in the United States, management must
\nmake estimates, judgements and assumptions that affect the amounts reported in the financial statements and determine whether contingent
\nassets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates
\nand assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements
\nare based. The most significant estimates included in these consolidated financial statements are those associated with the assumptions
\nused to value equity instruments used in debt settlements, amendments and extensions.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Revenue
\nEarning Devices<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

Fixed
\nAssets<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Fixed
\nassets are stated at cost. Depreciation is provided on the straight-line method based on the estimated useful lives of the respective
\nassets which range from three to five years. Major repairs or improvements are capitalized. Minor replacements and maintenance and repairs
\nwhich do not improve or extend asset lives are expensed currently.<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
Computer equipment<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3 years<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Furniture and fixtures<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3 years<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Office equipment<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4 years<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Warehouse equipment<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n5 years<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Demo Devices<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4 years<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Vehicles<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3 years<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Leasehold improvements<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n5 years, the life of the
\n lease<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany periodically evaluates the fair value of fixed assets whenever events or changes in circumstances indicate that its carrying
\namounts may not be recoverable. Upon retirement or other disposition of fixed assets, the cost and related accumulated depreciation are
\nremoved from the accounts and the resulting gain or loss, if any, is recognized in income.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Research
\nand Development<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Research
\nand development costs are expensed in the period they are incurred in accordance with ASC 730, Research and Development unless
\nthey meet specific criteria related to technical, market and financial feasibility, as determined by Management, including but not limited
\nto the establishment of a clearly defined future market for the product, and the availability of adequate resources to complete the project.
\nIf all criteria are met, the costs are deferred and amortized over the expected useful life or written off if a product is abandoned.
\nAt February 28, 2026 and February 28, 2025, the Company had no deferred development costs.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Sales
\nof Future Revenues<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany has entered into transactions, as more fully described in footnote 11, in which it has received funding from investors in exchange
\nfor which it will make payments to those investors based on the level of sales of certain revenue categories, generally based on a percentage
\nof sales for those certain revenues. The Company determines whether these agreements constitute sales of future revenues or are in substance
\ndebt based on the facts and circumstances of each agreement, with the following primary criteria determinative of whether the agreement
\nconstitutes a sale of future revenues or debt:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nDoes
\n the agreement purport, in substance, to be a sale<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nDoes
\n the Company have continuing involvement in the generation of cash flows due the investor<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nIs
\n the transaction cancellable by either party through payment of a lump sum or other transfer of assets<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nIs
\n the investors rate of return implicitly limited by the terms of the agreement<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nDoes
\n the Company\u2019s revenue for a reporting period underlying the agreement have only a minimal impact on the investor\u2019s rate
\n of return<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nDoes
\n the investor have recourse relating to payments due<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

In
\nthe 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
\nmethod. In the event a transaction is determined to be debt, it is recorded as debt and amortized using the effective interest method.
\nAs of the date of these financial statements, the Company has determined that all such agreements are debt.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Revenue
\nRecognition <\/span><\/p>\n

\u00a0<\/span><\/p>\n

ASU
\n2014-09, \u201cRevenue from Contracts with Customers (Topic 606)\u201d, supersedes the revenue recognition requirements and
\nindustry specific guidance under Revenue Recognition (Topic 605). Topic 606 requires an entity to recognize revenue when it transfers
\npromised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange
\nfor those goods or services. Topic 606 defines a five-step process that must be evaluated and, in doing so, it is possible more judgment
\nand estimates may be required within the revenue recognition process than required under existing accounting principles generally accepted
\nin the United States of America (\u201cU.S. GAAP\u201d) including identifying performance obligations in the contract, estimating the
\namount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance
\nobligation.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Distinguishing
\nLiabilities from Equity<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

Once
\nthe Company determines that a financial instrument should not be classified as a liability, the Company determines whether the financial
\ninstrument should be presented between the liability section and the equity section of the balance sheet (\u201ctemporary equity\u201d).
\nThe Company will determine temporary equity classification if the redemption of the financial instrument is outside the control of the
\nCompany (i.e. at the option of the holder). Otherwise, the Company accounts for the financial instrument as permanent equity.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nCEO and Chairman holds sufficient shares of the Company\u2019s voting stock that give sufficient voting rights under the articles of
\nincorporation and bylaws of the Company such that the CEO and Chairman can at any time unilaterally vote to increase the number of authorized
\nshares of common stock of the Company without the need to call a general meeting of common shareholders of the Company<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Initial
\nMeasurement<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany records its financial instruments classified as liability, temporary equity or permanent equity at issuance at the fair value,
\nor cash received.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Subsequent
\nMeasurement \u2013 Financial Instruments Classified as Liabilities<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany records the fair value of its financial instruments classified as liabilities at each subsequent measurement date. The changes
\nin fair value of its financial instruments classified as liabilities are recorded as other income (expenses).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Fair
\nValue of Financial Instruments<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ASC
\nTopic 820, Fair Value Measurements and Disclosures (\u201cASC Topic 820\u201d) provides a framework for measuring fair value
\nin accordance with generally accepted accounting principles.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ASC
\nTopic 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
\nbetween market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1)
\nmarket participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity\u2019s
\nown assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable
\ninputs).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nLevel
\n 1 \u2013 Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nLevel
\n 2 \u2013 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
\n or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical
\n or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset
\n or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nLevel
\n 3 \u2013 Inputs that are unobservable for the asset or liability.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Measured
\non a Recurring Basis<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table presents information about our liabilities measured at fair value on a recurring basis, aggregated by the level in the
\nfair value hierarchy within which those measurements fell:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount
\n at<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFair
\n Value Measurement Using<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFair
\n Value<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nLevel
\n 1<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nLevel
\n 2<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nLevel
\n 3<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
February 28, 2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Assets<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Investment
\n at cost<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n100,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n50,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n50,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Liabilities<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Incentive
\n compensation plan payable \u2013 revaluation of equity awards payable in Series G shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n5,500,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n5,500,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
February 28, 2025<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Liabilities<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Incentive
\n compensation plan payable \u2013 revaluation of equity awards payable in Series G shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n4,000,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n4,000,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\ncarrying amounts of the Company\u2019s financial assets and liabilities, such as cash, accounts receivable, prepaid expenses and advances,
\naccounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Earnings
\n(Loss) per Share<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Basic
\nearnings (loss) per share (\u201cEPS\u201d) is computed by dividing net income (loss) available to common shareholders (numerator)
\nby the weighted average number of shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential
\ncommon shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method.
\nIn computing diluted EPS, the average stock price for the period is used to determine the number of shares assumed to be purchased from
\nthe exercise of stock options and\/or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Basic
\nloss per common share is computed based on the weighted average number of shares outstanding during the period. Diluted loss per share
\nis computed in a manner similar to the basic loss per share, except the weighted-average number of shares outstanding is increased to
\ninclude all common shares, including those with the potential to be issued by virtue of convertible debt and other such convertible instruments.
\nDiluted loss per share contemplates a complete conversion to common shares of all convertible instruments only if they are dilutive in
\nnature with regards to earnings per share.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

MANAGEMENT<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Directors
\nand Executive Officers<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The following table sets forth the names,
\npositions and ages of our directors and executive officers as of the date of this report. Our directors serve for
\none year and until their successors are elected and qualified. Our officers are elected by the board of directors to a
\nterm of one year and serve until their successor is duly elected and qualified, or until they are removed from office. The board
\nof directors has no nominating, auditing or compensation committees.<\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n
Name<\/span><\/td>\n\u00a0<\/span><\/td>\nAge<\/span><\/td>\n\u00a0<\/span><\/td>\nPosition<\/span><\/td>\n<\/tr>\n
Steven
\n Reinharz (1)<\/span><\/td>\n		\u00a0<\/span><\/td>\n50<\/span><\/td>\n\u00a0<\/span><\/td>\nChief
\n Executive Officer, Secretary and Director (2)<\/span><\/td>\n<\/tr>\n
Anthony
\n Brenz<\/span><\/td>\n		\u00a0<\/span><\/td>\n64<\/span><\/td>\n\u00a0<\/span><\/td>\nChief
\n Financial Officer<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n\n
(1)<\/span><\/td>\nDirector
\n as of March 2, 2021<\/span><\/td>\n<\/tr>\n
(2)<\/span><\/td>\nAll
\n directors hold office until the next annual meeting of stockholders and until their successors have been duly elected and qualified.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Biographical
\ninformation concerning our director and executive officers listed above is set forth below.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Steven
\nReinharz. RAD was founded by Mr. Reinharz in July of 2016, and he has been continuously employed by RAD and its affiliated companies
\nsince that time. He is the holder of a majority of our capital stock. Mr. Reinharz has served as a member of the Board of Directors since
\nMarch 2, 2021 and as our Chief Executive Officer, Chief Financial Officer, and Secretary of the Company since March 2, 2021 and resigned
\nas our Chief Financial Officer as of April 26, 2021 upon Anthony Brenz\u2019s appointment as our Chief Financial Officer. As our Chief
\nExecutive Officer and President of RAD, Mr. Reinharz leverages his extensive knowledge and interest in robotics and artificial intelligence
\nto design and develop robotic solutions that increase business efficiency and deliver immediate and impressive cost savings. Mr. Reinharz
\nis an active voice in both the security and artificial intelligence industries. He started and ran his own security integration company
\nfrom the age of 24 to 31, becoming one of California\u2019s leading system integrators. Mr. Reinharz later was part of a team that successfully
\nsold an integrator to a global security firm for $42 million and has held various other security industry roles. Mr. Reinharz speaks
\nand contributes to panels at ISC East and West, and ASIS. Mr. Reinharz is a leading member of several industry association committees,
\nmostly through the Security Industry Association. Mr. Reinharz has called Orange County, California home since 1995, having grown up
\nin Montreal and Toronto. He earned a dual Bachelor of Science degree in Political Science and Commercial Studies.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Anthony
\nBrenz was appointed as our Chief Financial Officer on April 26, 2021. He is an accomplished senior financial and operational
\nexecutive for over 20 years of experience in finance and operations, including corporate strategy, procurement and supply chain, human
\nresources, and customer service. From April 2018 to December 2020, Anthony Brenz was the Vice President\/Director Finance of AirBoss Flexible
\nProducts Company. From September 2014 to April 2018, he was the Chief Financial Officer\/Vice President of Finance of Thomson Aerospace
\nand Defense (a Parker Meggitt Company). From August 2012 to September 2014, he was the Vice President\/Director of Finance of M B Aerospace
\nUS Holdings, Inc. Anthony Brenz received a Bachelor of Accountancy from Walsh College in Troy Michigan in 1989 and has been licensed
\nas a Certified Public Accountant in Michigan since 1989.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

There
\nare no family relationships between any of the executive officers and directors.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Board
\nCommittees and Director Independence<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Mr.
\nReinharz serves as director, and we do not have a separately designated audit committee, compensation committee or nominating and corporate
\ngovernance committee. The functions of those committees are being undertaken by our directors. Since we do not have any independent directors
\nand have only two directors, our directors believes that the establishment of committees of the Board would not provide any benefits
\nto our company and could be considered more form than substance.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\ncurrently have an employee director, Mr. Reinharz, but no independent directors, as such term is defined in the listing standards of
\nThe NASDAQ Stock Market, and we do not anticipate appointing additional directors in the near future.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\ndirectors are not \u201caudit committee financial experts\u201d within the meaning of Item 401(e) of Regulation S-K. As with most small,
\nearly stage companies, until such time that the Company further develops its business, achieves a stronger revenue base
\nand has sufficient working capital to purchase directors and officer\u2019s insurance, the Company does not have any immediate prospects
\nto attract independent directors. When the Company is able to expand our Board of Directors to include one or more independent
\ndirectors, the Company intends to establish an Audit Committee of our Board of Directors. It is our intention that one or more
\nof these independent directors will also qualify as an audit committee financial expert. Our securities are not quoted on an exchange
\nthat has requirements that a majority of our Board members be independent, and the Company is not currently otherwise subject to any
\nlaw, rule or regulation requiring that all or any portion of our Board of Directors include \u201cindependent\u201d directors, nor
\nare we required to establish or maintain an Audit Committee or other committee of our Board of Directors.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Procedures
\nfor Nominating Directors<\/span><\/p>\n

\u00a0<\/span><\/p>\n

There
\nhave been no material changes to the procedures by which security holders may recommend nominees to the Board since the most recently
\ncompleted fiscal quarter. We do not have a policy regarding the consideration of any director candidates that may be recommended by our
\nstockholders, including the minimum qualifications for director candidates, nor has our sole director established a process for identifying
\nand evaluating director nominees. We have not adopted a policy regarding the handling of any potential recommendation of director candidates
\nby our stockholders, including the procedures to be followed. Our sole director has not considered or adopted any of these policies,
\nas we have never received a recommendation from any stockholder for any candidate to serve on our Board of Directors. Given our relative
\nsize and lack of directors and officers insurance coverage, we do not anticipate that any of our stockholders will make such a recommendation
\nin the near future.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

While
\nthere have been no nominations of additional directors proposed, in the event such a proposal is made, all current members of our Board
\nwill participate in the consideration of director nominees.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Director
\nQualifications<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Mr.
\nSteve<\/span> Reinharz is our sole director and was appointed
\non March 2, 2021. He is the founder of our operating company, Robotoc Assistance Devices, Inc.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Code
\nof Ethics and Business Conduct<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nhave adopted a code of ethics meeting the requirements of Section 406 of the Sarbanes-Oxley Act of 2002. We believe our code of ethics
\nis reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely, and understandable
\ndisclosure in public reports; comply with applicable laws; ensure prompt internal reporting of violations; and provide accountability
\nfor adherence to the provisions of the code of ethics.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Director
\nCompensation<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We reimburse our directors for all reasonable
\nordinary and necessary business-related expenses, but we did not pay any other director\u2019s fees or any other cash compensation for
\nservices rendered as a director during the years ended February 28, 2026 and February 28, 2025 to any of the individuals
\nserving on our Board during that period.<\/p>\n

\u00a0<\/span><\/p>\n

Compliance
\nwith Section 16(a) of the Securities Exchange Act of 1934<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Section
\n16(a) of the Exchange Act requires our executive officers and directors, and persons who beneficially own more than 10% of a registered
\nclass of our equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual
\nreports concerning their ownership of our common shares and other equity securities, on Forms 3, 4 and 5 respectively. Executive officers,
\ndirectors and greater than 10% stockholders are required by the SEC regulations to furnish us with copies of all Section 16(a) reports
\nthey file. Based on our review of the copies of such forms received by us, or written representations that no other reports were required,
\nand to the best of our knowledge, we believe that all of our officers, directors, and owners of 10% or more of our common stock filed
\nall required Forms 3, 4, and 5.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

EXECUTIVE
\nCOMPENSATION<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table summarizes all compensation recorded by us in the past two fiscal years for Mr. Reinharz, our President and Chief Executive
\nOfficer, Anthony Brenz, our Chief Financial Officer and Garret Parsons our former President, Chief Executive Officer and Chief Financial
\nOfficer.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table summarizes all compensation recorded by us in the past two fiscal years for Mr. Reinharz, our President and Chief Executive
\nOfficer, Anthony Brenz, our Chief Financial Officer and Garret Parsons our former President, Chief Executive Officer and Chief Financial
\nOfficer.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

2026<\/span>
\nAND 2025 SUMMARY COMPENSATION TABLE<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n
Name and Principal Position<\/td>\n\u00a0<\/td>\n\n

Fiscal<\/span><\/p>\n

Year<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\nSalary
or
Fees
($)<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nBonus
($)<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nStock
Awards(2)
($)<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nOption
Awards
($)<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nNon-Equity
Incentive Plan
Compensation
($)<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nNon-Qualified
Deferred
Compensation
Earnings
($)<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nAll Other
Compensation
($)<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nTotal
($)<\/td>\n		\u00a0<\/td>\n<\/tr>\n
Steven Reinharz<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n420,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,500,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,000,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2,920,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
Chief Executive Officer, Chief Financial Officer, Secretary (1)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2025<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n320,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n836,167<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,500,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,663,833<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n4,320,000<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Anthony Brenz<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2026<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n211,865<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,200<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n213,055<\/td>\n\u00a0<\/td>\n<\/tr>\n
Chief Financial Officer (1)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n2025<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n200,408<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n17,975<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,200<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n208,988<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n\n\n\n\n
(1)<\/span><\/td>\nSteven
\n Reinharz was appointed Chief Executive Officer, Chief Financial Officer and Secretary on March 2, 2021.Mr.Reinharz ceased being Chief
\n Financial Officer on June 24, 2021 and on that date appointed Anthony Brenz as Chief Financial Officer<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(2)<\/span><\/td>\nStock
\n awards are payable in Series G and are included in long term liabilities as they will not be paid out in the current year.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Employment
\nAgreements<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nApril 9, 2021 Mr. Reinharz entered into an employment agreement with the Company in connection with his service as Chief Executive Officer.
\nThe agreement began on April 9, 2021 and has a three-year term, renewable thereafter on an annual basis if neither party files a notice
\nof termination 90 days prior to the term renewal date. The agreement provides for compensation of $240,000 base salary (to be reviewed
\nannually by the Board of Directors) and bonuses to be granted at the discretion of the Board of Directors. The salary for the fiscal
\nyear ended February 28, 2026 was $420,000.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Outstanding
\nEquity Awards at 2026 Fiscal Year-End<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table provides information concerning unexercised options, stock that has not vested and equity incentive plan awards for Mr.
\nBrenz, our sole executive officers outstanding as of February 28, 2026:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n
OPTION AWARDS<\/td>\n\u00a0<\/td>\nSTOCK AWARDS<\/td>\n\u00a0<\/td>\n<\/tr>\n
Name<\/td>\n\u00a0<\/td>\nNumber of Securities Underlying
\n Unexercised Options (#) Exercisable<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nNumber of Securities Underlying
\n Unexercised Options (#) Unexercisable<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\n\n

Equity
\n Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options <\/span><\/p>\n

(#)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

Option
\n Exercise Price<\/span><\/p>\n

($)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\nOption Expiration Date<\/td>\n\u00a0<\/td>\nNumber of Shares or Units of Stock
\n That Have Not Vested (#)<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nMarket Value of Shares or Units
\n of Stock That Have Not Vested ($)<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nEquity Incentive Plan Awards:
\n Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nEquity Incentive Plan Awards:
\n Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)<\/td>\n		\u00a0<\/td>\n<\/tr>\n
Anthony Brenz<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n45,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2.00<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nSept. 1, 2027<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n45,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n12,825<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Anthony Brenz<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n2.00<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nSept. 1, 2028<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n100,000<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n$<\/td>\n28,500<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

On
\nApril 14, 2021, the Shareholders of Series E Preferred Stock and the Board of Directors of our Company (\u201cBoard\u201d) approved
\nand adopted the 2021 Incentive Stock Plan (the \u201c2021 Plan\u201d). On August 11, 2022 the Company amended the 2021 Plan increasing
\nthe maximum number of shares applicable to the 2021 Plan from 50,000 to 1,000,000. On August 14,2023 the Company further
\namended the plan increasing the maximum shares to 2,000,000.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\npurpose of the 2021 Plan is to promote the success of the Company by authorizing incentive awards to retain Directors,
\nexecutives, selected Employees and Consultants, and reward participants for making major contributions to the success of the
\nCompany. The 2021 Plan authorizes the granting of stock options, restricted stock, restricted stock units, stock appreciation rights
\nand stock awards. A total of two million (2,000,000) shares of common stock may be issued under the 2021 Plan.
\nAll awards under the 2021 Plan, whether vested or unvested, are subject to the terms of any recoupment, clawback or similar policy of
\nthe Company in effect from time to time, as well as any similar provisions of applicable law, which could in certain circumstances require
\nrepayment or forfeiture of awards or any shares of stock or other cash or property received with respect to the awards, including any
\nvalue received from a disposition of the shares acquired upon payment of the awards. The 2021 Plan will be administered by the Board
\nor any Committee authorized by the Board, if applicable, which will have the sole authority to, among other things: construe and interpret
\nthe 2021 Plan; make rules and regulations relating to the administration of the 2021 Plan; select participants; and establish the terms
\nand conditions of awards, all in accordance with the terms of the 2021 Plan. The 2021 Plan will remain in effect until April 14, 2031,
\nunless sooner terminated by the Board. Termination will not affect awards then outstanding.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

SECURITY
\nOWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT<\/span><\/p>\n

\u00a0<\/span><\/p>\n

At June 8 2026, we had 387,232,589
\nshares of Common Stock issued and outstanding. The following table sets forth information regarding the beneficial ownership of our Common
\nStock as of June 8, 2026, and reflects:<\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u25cf<\/span><\/td>\neach
\n of our executive officers;<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u25cf<\/span><\/td>\neach
\n of our directors;<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u25cf<\/span><\/td>\nall
\n of our directors and executive officers as a group; and<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u25cf<\/span><\/td>\neach
\n stockholder known by us to be the beneficial owner of more than 5% of our outstanding shares of common stock.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Information on beneficial ownership
\nof securities is based upon a record list of our stockholders and we have determined beneficial ownership in accordance with the rules
\nof the SEC. We believe, based on the information furnished to us, that the persons and entities named in the table below have sole voting
\nand investment power with respect to all shares of common stock that they beneficially own, subject to applicable community property
\nlaws, except as otherwise provided below.<\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\nAmount and
Nature of<\/td>\n		\u00a0<\/td>\n\u00a0<\/td>\nPercent of<\/td>\n\u00a0<\/td>\n<\/tr>\n
Name<\/td>\n\u00a0<\/td>\n\n

Beneficial
Ownership
\n (1)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

Common
\nStock (2)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Named Executive Officers and Directors:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Steven Reinharz (3)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,302,460,588<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n77.08<\/td>\n%<\/td>\n<\/tr>\n
Anthony Brenz<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Mark Folmer<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
All executive officers and directors as a group (3 persons)<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,302,460,588<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n77.08<\/td>\n%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
5% Shareholders:<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Steven Reinharz<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,302,460,588<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n77.08<\/td>\n%<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
(1)<\/span><\/td>\nBeneficial
\n ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment
\n power with respect to securities. Beneficial ownership also includes shares of stock subject to options and warrants currently exercisable
\n or exercisable within 60 days of the date of this table. In determining the percent of common stock owned by a person or entity as
\n of the date of this Report, (a) the numerator is the number of shares of the class beneficially owned by such person or entity, including
\n shares which may be acquired within 60 days on exercise of warrants or options and conversion of convertible securities, and (b)
\n the denominator is the sum of (i) the total shares of common stock outstanding on as of June 8, 2026 387,232,589
\n shares, and (ii) the total number of shares that the beneficial owner may acquire upon exercise of the derivative securities. Unless
\n otherwise stated, each beneficial owner has sole power to vote and dispose of its shares.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(2)<\/span><\/td>\n\n

Based
\n on 387,232,589 shares of the Company\u2019s common stock issued and outstanding
\n as of June 8, 2026.<\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
(3)<\/td>\nSteve Reinharz is a director and the Company\u2019s Chief
\n Executive Officer, Chief Financial Officer and Secretary as well as the CEO of RAD and is the holder of (i) 3,350,000 shares of our
\n Series E Preferred Stock and, (ii) 2,450 shares of our Series F Convertible Preferred Stock. If Mr. Reinharz converted the 2,450
\n shares of the Company\u2019s Series F Convertible Preferred Stock, he would receive 1,302,460,588 shares of the Company\u2019s
\n common stock, which is included in the chart above as if such conversion has occurred. Further, the outstanding shares of Series
\n E preferred stock have the right to take action by written consent or vote based on the number of votes equal to twice the number
\n of votes of all outstanding shares of common stock. As a result, the holders of Series E preferred stock has 2\/3rds of the voting
\n power of all shareholders at any time corporate action requires a vote of shareholders.<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

CERTAIN
\nRELATIONSHIPS AND RELATED TRANSACTIONS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Transactions
\nwith Related Persons<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Except
\nas set out below, since the beginning of our last two fiscal years, there have been no transactions, or currently proposed transactions,
\nin which he was or is to be a participant and the amount involved exceeds $120,000, and in which any of the following people had or will
\nhave a direct or indirect material interest:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u25cf<\/span><\/td>\nAny
\n of our directors or executive officers;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nAny
\n immediate family member of our directors or executive officers; and<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nAny
\n person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to our outstanding
\n shares of common stock;<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Related
\nParty Transactions<\/span><\/p>\n

\u00a0<\/span><\/p>\n

For the years ended February 28, 2026,
\nand February 28, 2025, the Company had net (advances) repayments of ($132,268) and ($71,927), respectively, to its loan payable-related
\nparty. At February 28, 2026, the loan payable-related party was $461,633 and $329,365 at February 28, 2025. As of February 28, 2026,
\nincluded in the balance due to the related party is $285,638 of deferred salary all of which bears interest at 12%. As of February 28,
\n2025, included in the balance due to the related party is $190,013 of deferred salary all of which bears interest at 12%. The accrued
\ninterest included at February 28, 2026, was $79,268 (February 28, 2025- $51,575).<\/p>\n

\u00a0<\/p>\n

During the year ended February 28,
\n2026, the Company had a net repayment of $390,744 in deferred compensation for the CEO. This would bring his annual bonus for the year
\nended February 28, 2026, to $1.0 million. For the fiscal year ended February 28, 2025, the Company paid out $1,390,744 to the CEO. During
\nthe year ended February 28, 2025, the Company a net accrual of $1,663,833 in deferred compensation for the CEO. This would bring his
\nannual bonus for the year ended February 28, 2025, to $2.5 million. For the fiscal year ended February 28, 2025, the Company paid out
\n$836,167 to the CEO. This was all in accordance with a December 2023 board action allowing for $1 million of discretionary compensation.<\/p>\n

\u00a0<\/p>\n

During the years ended February 28,
\n2026, and February 28, 2025, the Company accrued 1,500 Series G shares to be issued totaling $1,500,000 and 1,500 Series G preferred
\nshares to be issued totaling $1,500,000, respectively, both per Company resolution. The Series G preferred shares are redeemable at $1,000
\nper share and will be issued by the Company at the appropriate time. The balance of Incentive Compensation Plan Payable at February 28,
\n2026, was $5,500,000 and the balance February 28, 2025, was $4,000,000.<\/p>\n

\u00a0<\/p>\n

During the years ended February 28,
\n2026, and February 28, 2025, the Company was charged $2,576,111 and $2,541,180, respectively in consulting fees for research and development
\nto a company partially owned by a principal shareholder included in research and development expenses. The principal shareholder received
\nno compensation from this partially owned research and development company and the fees were spent on core development projects. As at
\nFebruary 28, 2026, and February 28, 2025, the balance due to this company was $160,557 and $76,532, respectively.<\/p>\n

\u00a0<\/span><\/p>\n

Principal Accounting Fees and Services<\/p>\n

\u00a0<\/span><\/p>\n

On
\nOctober 31, 2019, our Board of Directors approved and ratified the engagement (\u201cEngagement\u201d) of LJ Soldinger & Associates
\nLLC (\u201cLJ Soldinger\u201d) as our new independent registered public accounting firm.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table shows the fees that were billed for the audit and other services provided by LJ Soldinger for the fiscal years ended
\nFebruary 28, 2026 and February 28, 2025.<\/span><\/p>\n

\u00a0<\/p>\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n2026<\/td>\n\u00a0<\/td>\n<\/tr>\n
Audit Fees<\/td>\n\u00a0<\/td>\n$<\/td>\n\n

256,700<\/p>\n<\/td>\n

\u00a0<\/td>\n<\/tr>\n
Audit-Related Fees<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\n

\u2014<\/p>\n<\/td>\n

\u00a0<\/td>\n<\/tr>\n
Tax Fees<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\n

\u2014<\/p>\n<\/td>\n

\u00a0<\/td>\n<\/tr>\n
All Other Fees<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\n

\u2014<\/p>\n<\/td>\n

\u00a0<\/td>\n<\/tr>\n
Total<\/td>\n\u00a0<\/td>\n$<\/td>\n\n

256,700<\/p>\n<\/td>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n2025<\/td>\n\u00a0<\/td>\n<\/tr>\n
Audit Fees<\/td>\n\u00a0<\/td>\n$<\/td>\n240,100<\/td>\n\u00a0<\/td>\n<\/tr>\n
Audit-Related Fees<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n<\/tr>\n
Tax Fees<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n<\/tr>\n
All Other Fees<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u2014<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total<\/td>\n\u00a0<\/td>\n$<\/td>\n240,100<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Audit
\nFees – This category includes the audit of our annual financial statements, review of financial statements included in our Quarterly
\nReports on Form 10-Q and services that are normally provided by the independent registered public accounting firm in connection with
\nengagements for those fiscal years. This category also includes advice on audit and accounting matters that arose during, or as a result
\nof, the audit or the review of interim financial statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Audit-Related
\nFees – This category consists of assurance and related services by the independent registered public accounting firm that are reasonably
\nrelated to the performance of the audit or review of our financial statements and are not reported above under \u201cAudit Fees.\u201d
\nThe services for the fees disclosed under this category would include consultation regarding correspondence with the SEC, other accounting
\nconsulting and other audit services.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Tax
\nFees – This category consists of professional services rendered by our independent registered public accounting firm for tax compliance
\nand tax advice. The services for the fees disclosed under this category include tax return preparation and technical tax advice.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

All
\nOther Fees – This category consists of fees for other miscellaneous items.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

As
\npart of its responsibility for oversight of the independent registered public accountants, the Board has established a pre-approval policy
\nfor engaging audit and permitted non-audit services provided by our independent registered public accountants. In accordance with this
\npolicy, each type of audit, audit-related, tax and other permitted service to be provided by the independent auditors is specifically
\ndescribed and each such service, together with a fee level or budgeted amount for such service, is pre-approved by the Board. All of
\nthe services provided by LJ Soldinger described above were approved by our Board.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nprincipal accountant did not engage any other persons or firms other than the principal accountant\u2019s full-time, permanent employees.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Indemnification
\nand Limitation on Liability of Directors<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nArticles of Incorporation limit the liability of our directors to the fullest extent permitted by Nevada law. Nothing contained in the
\nprovisions will be construed to deprive any director of his right to all defenses ordinarily available to the director nor will anything
\nherein be construed to deprive any director of any right he may have for contribution from any other director or other person.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

At
\npresent, there is no pending litigation or proceeding involving any of our directors, officers, employees or agents where indemnification
\nwill be required or permitted. As far as indemnification for liabilities arising under the Securities Act may be permitted to
\nour directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the
\nopinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Committees
\nof the Board<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\ndo not currently have a standing audit, nominating, or compensation committee of the Board of Directors, or any committee performing
\nsimilar functions. Our Board of Directors performs the functions of nominating and compensation committees<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Meetings
\nof the Board<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During its fiscal year ended February
\n28, 2026, the Board, consisting of one member did not hold meetings but corporate action approvals were all approved via Unanimous
\nBoard Resolutions.<\/p>\n

\u00a0<\/span><\/p>\n

Code
\nof Business Conduct and Ethics<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nhave adopted a written code of business conduct and ethics (the \u201cCode of Ethics\u201d). The Code of Ethics is intended to document
\nthe principles of conduct and ethics to be followed by all of our directors, officers and employees, including our principal executive
\nofficer, principal financial officer and principal accounting officer or controller, or persons performing similar functions. Its purpose
\nis to promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Indemnification
\nand Limitation on Liability of Directors<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nArticles of Incorporation limit the liability of our directors to the fullest extent permitted by Nevada law. Nothing contained in the
\nprovisions will be construed to deprive any director of his right to all defenses ordinarily available to the director nor will anything
\nherein be construed to deprive any director of any right he may have for contribution from any other director or other person.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

At
\npresent, there is no pending litigation or proceeding involving any of our directors, officers, employees or agents where indemnification
\nwill be required or permitted. As far as indemnification for liabilities arising under the Securities Act may be permitted to
\nour directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the
\nopinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

DESCRIPTION
\nOF OUR CAPITAL STOCK<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nArticles of Incorporation, as amended, authorizes us to issue up to twelve billion (12,000,000,000) shares of common stock,
\n$0.00001 par value per share, and twenty million (20,000,000) shares of preferred stock, $0.001 par value per share. There is only one
\nclass of common stock. There are four classes of preferred stock. See \u201c\u2014Preferred Stock,\u201d below. Our board of directors
\nmay establish the rights and preferences of additional series of preferred stock from time to time.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Transfer
\nAgent and Registrar<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\ntransfer agent and registrar for our common stock is Transhare, Bayside Center 1, 17755 North US Highway 19, Suite 140, Clearwater, Florida
\n33764, Phone: (303) 662-1112.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Common
\nStock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Rights
\nof Shareholders<\/span><\/p>\n

\u00a0<\/span><\/p>\n

All
\nshares of our common stock that we offer will be fully paid and nonassessable upon issuance. Holders of our common stock are entitled
\nto one vote per share of common stock on all matters submitted to a vote of shareholders. They do not have cumulative voting rights.
\nElecting a director requires a plurality of the votes cast by shareholders that are entitled to vote in the election. However, it should
\nbe noted that the Series E Convertible Preferred Stock has voting rights equal to twice the number of votes of all outstanding shares
\nof capital stock; that is, the holders of Series E Convertible Preferred Stock will always have 2\/3rds of our voting power. Holders of
\ncommon stock are entitled to receive proportionately any dividends that may be declared by our Board of Directors, subject to any preferential
\ndividend rights of any series of preferred stock that we may designate and issue in the future.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

If
\nwe are liquidated or dissolved, the holders of common stock are entitled to receive a proportionate share of our net assets that are
\navailable for distribution to shareholders after the payment of all our debts and other liabilities and subject to the senior rights
\nof the holders of Series F Convertible Preferred Stock and Series G Preferred Stock. Holders of common stock have no preemptive, subscription,
\nredemption or conversion rights. There are no redemption or sinking fund provisions applicable to the common stock. The rights, preferences
\nand privileges of holders of common stock are subject to and may be adversely affected by the rights of the holders of shares of any
\nseries of preferred stock that we may designate and issue in the future. See \u201c\u2014Preferred Stock\u201d below.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Nevada
\nLaw<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Nevada
\nlaw contains provisions that govern an \u201cacquisition of controlling interest\u201d in a Nevada corporation. The control share provisions
\ngenerally provide that any person or entity that acquires 20% or more of the outstanding voting shares of a publicly held Nevada corporation
\nin the secondary public or private market may be denied voting rights with respect to the acquired shares, unless a majority of the disinterested
\nshareholders of the corporation elects to restore those voting rights in whole or in part. However, our securities are not subject to
\nthese control share provisions because our articles of incorporation, as permitted by Nevada law, specifically exempt us from the control
\nshare provisions.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\naddition, Nevada law contains a provision that prevents an \u201c \u201cinterested stockholder\u201d and a resident domestic Nevada
\ncorporation from entering into a business \u201ccombination,\u201d unless certain conditions are met. Nevertheless, our articles of
\nincorporation, as permitted by Nevada law, specifically exempt us from these \u201cinterested stockholder\u201d provisions.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Preferred
\nStock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany is authorized to issue up to 20,000,000 shares of $0.001 par value preferred stock. The board of directors is authorized to designate
\nany series of preferred stock up to the total authorized number of shares.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nhave five series of preferred stock, none of which have voting rights on any matters other than those directly affecting the respective
\nseries:<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series B Convertible, Redeemable Preferred
\nStock<\/p>\n

\u00a0<\/p>\n

The board of directors has designated 5,000 shares
\nof Series B Convertible, Redeemable Preferred Stock with a par value of $0.001 per share. As of February 28, 2026, there
\nare no shares of Series B Preferred Stock outstanding. The Series B Convertible Preferred Stock are redeemable at $1,200 per share, rank
\nin priority to common stock and common stock equivalents upon liquidation of the Company, have voting rights on a converted basis and
\nreceives quarterly dividends of 8%. Each holder may, at any time and from time to time convert all, but not less than all, of their shares
\nof Series B Convertible, Redeemable Preferred Stock into a number of fully paid and nonassessable shares of common stock determined by
\ndividing the redemption value by the Conversion Price. The Conversion price is equal to the lower of (1) a fixed price equaling the closing
\nbid price of the Common Stock on the trading day immediately preceding the date of the acquisition of the shares and (2) the lowest traded
\nprice of the Common Stock during the ten (10) calendar days immediately preceding, but not including, the Conversion Date. Following
\nan event of default,\u201d as defined in the Purchase Agreement, the Conversion price shall equal the lower of: (a) the then applicable
\nConversion Price; or (b) a price per share equaling eighty five percent (85%) of the lowest traded price for the Company\u2019s common
\nstock during the fifteen (15) Trading Days immediately preceding, but not including, the Conversion Date. Each share of Preferred Stock
\nshall be entitled to receive, and the Corporation shall pay, cumulative dividends of eight percent (8%) per annum, payable quarterly,
\nbeginning on the Original Issuance Date and ending on the date that such share of Preferred Share has been converted or redeemed. Dividends
\nmay be paid in cash or in shares of Preferred Stock at the discretion of the Company. Any dividends that are not paid a shall continue
\nto accrue and shall entail a late fee, which must be paid in cash, at the rate of 14% per annum or the lesser rate permitted by applicable
\nlaw which shall accrue and compound daily from the dividend payment date through and including the date of actual payment in full. On
\nthe thirtieth day following the issue date of this Preferred Stock the Company shall have the obligation to redeem one-third of the Preferred
\nStock outstanding for a redemption price equal to the redemption value of each such share of Preferred Stock, plus any accrued but unpaid
\ndividends, plus all other amounts due to the Holder including, but not limited to Late Fees, liquidated damages and the legal fees and
\nexpenses of the Holder\u2019s counsel. On the sixtieth (60th) calendar day following the date Preferred Stock is issued,
\nthe Corporation shall have the obligation to redeem one-half of the Preferred Stock then outstanding for the redemption price. On the
\nninetieth (90th) calendar day following the date Preferred Stock is issued, the Corporation shall have the obligation to redeem
\nall of the Preferred Stock then outstanding for the redemption price. From the date of issuance until the date no shares of Series B
\nPreferred Stock are issued and outstanding, unless Holders of at least 75% in Stated Value of the then outstanding shares of Preferred
\nStock shall have otherwise given prior written consent, the Corporation shall not, and shall not permit any of the Subsidiaries to, directly
\nor indirectly: (a) other than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness
\nfor borrowed money of any kind, including but not limited to, a guarantee, on or with respect to any of its property or assets now owned
\nor hereafter acquired or any interest therein or any income or profits therefrom; (b) other than Permitted Liens, enter into, create,
\nincur, assume or suffer to exist any Liens of any kind, on or with respect to any of its property or assets now owned or hereafter acquired
\nor any interest therein or any income or profits therefrom; (c) amend its charter documents, including, without limitation, its articles
\nof incorporation and bylaws, in any manner that materially and adversely affects any rights of the Holder; (d) repay, repurchase or offer
\nto repay, repurchase or otherwise acquire of any shares of its Common Stock, Common Stock Equivalents or Junior Securities, other than
\nas to the Conversion Shares as permitted or required under the Transaction Documents: (e) pay cash dividends or distributions on Junior
\nSecurities of the Corporation; f) enter into any transaction with any Affiliate of the Corporation which would be required to be disclosed
\nin any public filing with the Commission, unless such transaction is made on an arm\u2019s-length basis and expressly approved by a
\nmajority of the disinterested directors of the Corporation (even if less than a quorum otherwise required for board approval); or(g)
\nenter into any agreement with respect to any of the foregoing.<\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nC Convertible, Redeemable Preferred Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nboard of directors has designated 1,000 shares of Series C Convertible, Redeemable Preferred Stock with a par value of $0.001 per share.
\nAs of February 28, 2026 there are 417 shares of Series C Preferred Stock outstanding. The Series C Convertible Preferred
\nStock are redeemable at $1,200 per share, rank in priority to common stock and common stock equivalents upon liquidation of the Company,
\nhave voting rights on a converted basis and receives quarterly dividends of 12%. Each holder may, after 180 days after issuance, at any
\ntime and from time to time convert all, but not less than all, of their shares of Series C Convertible, Redeemable Preferred Stock into
\na number of fully paid and nonassessable shares of common stock determined by dividing the redemption value by the Conversion Price.
\nThe Conversion price is equal to the lower of (1) a fixed price equaling the closing bid price of the Common Stock on the trading day
\nimmediately preceding the date of the acquisition of the shares and (2) the lowest traded price of the Common Stock during the ten (10)
\ncalendar days immediately preceding, but not including, the Conversion Date. Following an event of default,\u201d as defined in the
\nPurchase Agreement, the Conversion price shall equal the lower of: (a) the then applicable Conversion Price; or (b) a price per share
\nequaling eighty five percent (90%) of the lowest traded price for the Company\u2019s common stock during the fifteen (10) Trading Days
\nimmediately preceding, but not including, the Conversion Date. Each share of Preferred Stock shall be entitled to receive, and the Corporation
\nshall pay, cumulative dividends of twelve percent (12%) per annum, payable quarterly, beginning on the Original Issuance Date and ending
\non the date that such share of Preferred Share has been converted or redeemed. Dividends may be paid in cash or in shares of Preferred
\nStock at the discretion of the Company. Any dividends that are not paid a shall continue to accrue and shall entail a late fee, which
\nmust be paid in cash, at the rate of 14% per annum or the lesser rate permitted by applicable law which shall accrue and compound daily
\nfrom the dividend payment date through and including the date of actual payment in full. On the one hundred eightieth day following the
\nissue date of this Preferred Stock the Company shall have the obligation to redeem all outstanding Series Preferred Shares for one hundred
\nnine and one half percent (109.5%) of the stated value, plus any accrued but unpaid dividends, plus all other amounts due to the Holder
\npursuant to the Certificate of Designation and\/or any Transaction Documents (\u201cRedemption Date\u201d). Prior to the Redemption
\nDate, the Company at its discretion and on three (3) Trading Days\u2019 written notice, may redeem all outstanding Preferred Shares
\nfor one hundred nine and one half percent (109.5%) of the stated value, plus any accrued but unpaid dividends, plus all other amounts
\ndue to the Holder pursuant to the Certificate of Designation and\/or any Transaction Documents.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

From
\nthe date of issuance until the date no shares of Series C Preferred Stock are issued and outstanding, unless Holders of at least 75%
\nin Stated Value of the then outstanding shares of Preferred Stock shall have otherwise given prior written consent, the Corporation shall
\nnot, and shall not permit any of the Subsidiaries to, directly or indirectly: (a) other than Permitted Indebtedness, enter into, create,
\nincur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any kind, including but not limited to, a guarantee,
\non or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits
\ntherefrom; (b) other than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect
\nto any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom; (c) amend
\nits charter documents, including, without limitation, its articles of incorporation and bylaws, in any manner that materially and adversely
\naffects any rights of the Holder; (d) repay, repurchase or offer to repay, repurchase or otherwise acquire of any shares of its Common
\nStock, Common Stock Equivalents or Junior Securities, other than as to the Conversion Shares as permitted or required under the Transaction
\nDocuments: (e) pay cash dividends or distributions on Junior Securities of the Corporation; f) enter into any transaction with any Affiliate
\nof the Corporation which would be required to be disclosed in any public filing with the Commission, unless such transaction is made
\non an arm\u2019s-length basis and expressly approved by a majority of the disinterested directors of the Corporation (even if less than
\na quorum otherwise required for board approval); or(g) enter into any agreement with respect to any of the foregoing<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nE Preferred Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

There
\nare 4,350,000 shares of Series E Convertible Preferred Stock (\u201cSeries E Preferred Shares\u201d) authorized, and 3,350,000
\nissued and outstanding. The Series E Preferred Shares have no conversion rights. Moreover, they have no dividend rights, no
\npreemptive rights, no redemption rights, and no liquidation rights. As noted above, the Series E Preferred Shares hold voting rights
\nequal to twice the number of votes of all outstanding shares of capital stock; that is, the holders of Series E Preferred Shares will
\nalways have 2\/3rds of our voting power. The Series E Preferred Shares vote together with the common stock and not as a separate class.
\nAll of the Series E Preferred Shares are held by Steven Reinharz.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nSeries E Preferred Shares must unanimously approve any changes to increase the authorized number of shares or the rights, preferences,
\nand privileges of the Series E Preferred Shares. In addition, the Series E Preferred Shares must unanimously approve the following actions:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u25cf<\/span><\/td>\nalteration
\n of or change to the rights, preferences or privileges of any of our capital stock that would adversely affect the Series E Preferred
\n Shares;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\ncreate
\n or designate any series or class of shares;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nissue
\n any shares of any series of preferred stock;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nincrease
\n the authorized number of shares of any series or class of our stock;<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\namend,
\n repeal or modify our bylaws <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nsell
\n or otherwise dispose of any of our assets not in the ordinary course of business;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nelect
\n members of the Board of Directors;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nincur
\n debt not in the ordinary course of business; or<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\neffect
\n or undergo any change of our control.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nF Convertible Preferred Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

There
\nare 10,000 shares of Series F Convertible Preferred Stock (\u201cSeries F Preferred Shares\u201d) authorized, of which 2,513
\nShares are issued and outstanding. The Series F Preferred Shares have no dividend rights, no preemptive rights, and, unless and until
\nthey are converted into common stock, no voting rights (other than as to changes to any class or series of our capital stock that could
\nadversely affect the Series F Preferred Shares or as required by Nevada law). The Series F Preferred Shares have liquidation rights senior
\nto those of the common stock, the Series E Preferred Shares and Series G Preferred Shares. Each holder may, at any time and from time
\nto time convert all, but not less than all, of their shares of Series F Convertible Preferred Stock into a number of fully paid and nonassessable
\nshares of common stock determined by multiplying the number of issued and outstanding shares of common stock of the Company on the date
\nof conversion by three and 45 100ths (3.45) on a pro rata basis. So long as any shares of Series F Convertible Preferred Stock are outstanding,
\nthe Company shall not, without first obtaining the approval of the majority of the holders: (a) alter or change the rights, preferences
\nor privileges of any capital stock of the Company so as to affect adversely the Series F convertible preferred stock; (b) create any
\nSenior Securities; (c) create any pari passu Securities; (d) do any act or thing not authorized or contemplated by the Certificate of
\nDesignation which would result in any taxation with respect to the Series F Convertible Preferred Stock under Section 305 of the Internal
\nRevenue Code of 1986, as amended, or any comparable provision of the Internal Revenue Code as hereafter from time to time amended, (or
\notherwise suffer to exist any such taxation as a result thereof).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Steven
\nReinharz owns 2,450 Series F Preferred Shares, and the remaining 63 Series F Preferred Shares are held by two other persons who
\nare not employed by us We have also issued a \u201cWarrant to Purchase Stock,\u201d which gave the holder of the Warrant the right
\nto purchase 929 Series F Preferred Shares at any time. After prior exercises, the holder currently holds the right to purchase
\n329 Series F Preferred Shares.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nG Preferred Stock: There are 100,000 shares of Series G Preferred Stock (\u201cSeries G Preferred Shares\u201d) authorized but
\nno shares have been issued. The Series G Preferred Shares have no dividend rights, no voting rights, and no preemptive rights. The Series
\nG shares have liquidation rights senior to those of the common stock but junior to those of the Series F Preferred Shares. At any time,
\nwe may, at our option, redeem any or all of the outstanding Series G Preferred Shares at $1,000 per share.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

DESCRIPTION
\nOF WARRANTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nmay issue warrants to purchase common stock. We may offer warrants separately or together with one or more additional warrants or common
\nstock, as described in the related prospectus supplement. If we issue warrants as part of a unit, the accompanying prospectus supplement
\nwill specify whether those warrants may be separated from the common stock in the unit before the expiration date of the warrants. The
\nterms of any warrants offered under a prospectus supplement may differ from the terms described below. We urge you to read the related
\nprospectus supplement and any related free writing prospectus as well as the complete warrant agreements and warranty certificates that
\ncontain the terms of the warrants. Each related prospectus supplement will describe the terms of any warrants being offered, including
\nbut not limited to the following:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u25cf<\/span><\/td>\nthe
\n specific designation and total number of warrants and the offering price at which the warrants will be issued;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nthe
\n date on which the right to exercise the warrants will begin and will end, or if the warrants are not continuously exercisable, the
\n specific dates or periods in which you may exercise the warrants;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nwhether
\n the warrants will be sold separately or with common stock as parts of units;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nif
\n the warrants are issued as part of a unit, the date, if any, on which the common stock will be separately transferable;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\na
\n description of the common stock purchasable upon exercise of the warrants;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nthe
\n number of shares of common stock purchasable upon exercise of a warrant and the price at which those shares may be purchased;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nif
\n applicable, the minimum or maximum amount of warrants that may be exercised at any one time;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nany
\n redemption or call provisions of the warrants;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nif
\n any, the anti-dilution provisions of, and other provisions for changes to or adjustment in the exercise price of, the warrants;<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
\u25cf<\/span><\/td>\ninformation
\n with respect to book-entry procedures, if any;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nthe
\n identity of the warrant agent for the warrants;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nany
\n additional terms of the warrants, including terms, procedures and limitations relating to the exchange or exercise of the warrants;
\n and<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nany
\n applicable material U.S. federal income tax consequences.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

It
\nshould be noted that holders of warrants will not be entitled to:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u25cf<\/span><\/td>\nvote,
\n consent or receive dividends;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nreceive
\n notice of shareholders with respect to any meeting of shareholders on any matter; and<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u25cf<\/span><\/td>\nexercise
\n any rights as shareholders of the Company.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Dividend
\nPolicy<\/span><\/p>\n

\u00a0<\/span><\/p>\n

To
\ndate we have never declared a dividend for our common stock. We currently intend to retain future earnings, if any, to finance the expansion
\nof our business and for general corporate purposes. We cannot assure you that we will distribute any cash in the future. Our cash distribution
\npolicy is within the discretion of our Board and will depend upon various factors, including our results of operations, financial condition,
\ncapital requirements and investment opportunities.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

LEGAL
\nMATTERS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Certain
\nlegal matters with respect to the validity of the securities being offered by this prospectus will be passed upon Frederick M. Lehrer,
\nP. A.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

EXPERTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\naudited consolidated financial statements for AITX, as of February 28, 2026 and 2025 and for the years then ended included
\nin this prospectus and elsewhere in the registration statement have been so included in reliance upon the report, which contains an explanatory
\nparagraph describing the conditions which raise substantial doubt about the ability of the Company to continue as a going concern, of
\nL J Soldinger Associates, LLC, independent registered public accounting firm, upon the authority of said firm as experts in accounting
\nand auditing.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

AVAILABLE
\nINFORMATION<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nhave filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of common stock offered
\nby this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all the information set
\nforth in the registration statement, some of which is contained in exhibits to the registration statement as permitted by the rules and
\nregulations of the SEC. For further information with respect to us and our common stock, we refer you to the registration statement,
\nincluding the exhibits filed as a part of the registration statement. Statements contained in this prospectus concerning the contents
\nof any contract or any other document are not necessarily complete.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

We
\nfile reports, proxy statements and other information with the SEC. The SEC maintains a website that contains reports, proxy and information
\nstatements and other information about issuers, such as us, who file electronically with the SEC. The address of that website is http:\/\/www.sec.gov.
\nYou may also request a copy of those filings, excluding exhibits, from us at no cost. These requests should be addressed to us at: 10800
\nGalaxie Avenue, Ferndale, Michigan 48220. Our website address is www.aitx.ai. The information on, or accessible through, our website
\nis not part of, and is not incorporated into, this prospectus supplement or the accompanying prospectus and should not be considered
\npart of this prospectus.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Disclosure
\nof Commission Position of Indemnification for Securities Act Liabilities<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Nevada
\nRevised Statutes (\u201cNRS\u201d) Sections 78.7502 and 78.751 provide us with the power to indemnify any of our directors and officers.
\nThe director or officer must have conducted himself\/herself in good faith and reasonably believe that his\/her conduct was in, or not
\nopposed to, our best interests. In a criminal action, the director, officer, employee or agent must not have had reasonable cause to
\nbelieve his\/her conduct was unlawful. Under NRS Section 78.751, advances for expenses may be made by agreement if the director or officer
\naffirms in writing that he\/she believes he\/she has met the standards and will personally repay the expenses if it is determined such
\nofficer or director did not meet the standards.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

As
\nfar<\/span> as indemnification for liabilities arising under
\nthe Securities Act may be permitted for our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise,
\nwe have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act
\nand is, therefore, unenforceable.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nAmended Bylaws provides that the Company shall indemnify its directors and officers from and against any liability arising out of their
\nservice as a director or officer of the Corporation or any subsidiary or affiliate of which they serve as an officer or director at the
\nrequest of the Corporation to the fullest extent not prohibited by NRS Chapter 78.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/p>\n

ARTIFICIAL INTELLIGENCE
\nTECHNOLOGY SOLUTIONS INC.<\/p>\n

(FORMERLY ON THE MOVE SYSTEMS CORP.)<\/p>\n

\u00a0<\/p>\n

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS<\/p>\n

\u00a0<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
Report of Independent Registered Public Accounting Firm<\/span><\/span><\/td>\nF-2<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Consolidated
\n Balance Sheets<\/span><\/span><\/td>\n		F-3<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Consolidated
\n Statements of Operations<\/span><\/span><\/td>\n		F-4<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Consolidated
\n Statements of Stockholders\u2019 Deficit<\/span><\/span><\/td>\n		F-5<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Consolidated
\n Statements of Cash Flows<\/span><\/span><\/td>\n		F-7<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Notes
\n to the Consolidated Financial Statements<\/span><\/span><\/td>\n		F-8<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

REPORT
\nOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM<\/span><\/p>\n

\u00a0<\/span><\/p>\n

To
\nthe Board of Directors and<\/span><\/p>\n

Stockholders
\nof Artificial Intelligence Technology Solutions, Inc.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Opinion
\non the Financial Statements<\/span><\/p>\n

\u00a0<\/p>\n

We
\nhave audited the accompanying consolidated balance sheets of Artificial Intelligence Technology Solutions, Inc. and its subsidiaries
\n(the \u201cCompany\u201d) as of February 28, 2026 and February 28, 2025, and the related consolidated statements of operations, stockholders\u2019
\ndeficit, and cash flows for each of the years in the two-year period ended February 28, 2026, and the related notes (collectively referred
\nto as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position
\nof the Company as of February 28, 2026, and February 28, 2025, and the results of its operations and its cash flows for each of the years
\nin the two-year period ended February 28, 2026, in conformity with accounting principles generally accepted in the United States of America.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Substantial
\nDoubt about the Company\u2019s Ability to Continue as a Going Concern<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\naccompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note
\n1 to the financial statements, the Company had negative cash flow from operating activities of approximately $9.3 million, an accumulated
\ndeficit of approximately $171.1 million and negative working capital of approximately $17.0 million as of and for the year ended February
\n28, 2026, which raises substantial doubt about its ability to continue as a going concern. Management\u2019s plans in regard to these
\nmatters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this
\nuncertainty.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Basis
\nfor Opinion<\/span><\/p>\n

\u00a0<\/span><\/p>\n

These
\nfinancial statements are the responsibility of the Company\u2019s management. Our responsibility is to express an opinion on the Company\u2019s
\nfinancial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board
\n(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities
\nlaws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.<\/span><\/p>\n

\u00a0<\/p>\n

We
\nconducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
\nreasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
\nis not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,
\nwe are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion
\non the effectiveness of the Company\u2019s internal control over financial reporting. Accordingly, we express no such opinion.<\/span><\/p>\n

\u00a0<\/p>\n

Our
\naudits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
\nor fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
\nthe amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
\nestimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
\nprovide a reasonable basis for our opinion.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Critical
\nAudit Matters<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Critical
\naudit matters are matters arising from the current period audit of the financial statements that were communicated or required to be
\ncommunicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and
\n(2) involved our especially challenging, subjective, or complex judgments. We determined that there were no critical audit matters.<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
\/s\/
\n L J Soldinger Associates, LLC<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
We
\n have served as the Company\u2019s auditor since 2019.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Deer
\n Park, Illinois<\/span><\/td>\n<\/tr>\n
PCAOB
\n ID: 318<\/span><\/td>\n<\/tr>\n
June
\n 8, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

\u00a0<\/p>\n

CONSOLIDATED
\nBALANCE SHEETS<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

February
\n 28,<\/span><\/p>\n

2026<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

February
\n 28,<\/span><\/p>\n

2025<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n<\/tr>\n
ASSETS<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current assets:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Cash<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n109,043<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n865,975<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Accounts receivable, net<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,004,201<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,367,331<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Share proceeds receivable<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n418,669<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Device parts inventory,
\n net<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,318,742<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,583,726<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Prepaid
\n expenses and deposits<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n503,017<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n792,842<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total current assets<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,935,003<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n5,028,543<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Operating lease asset<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n931,814<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,010,545<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Revenue earning devices,
\n net of accumulated depreciation of $3,257,668<\/span> and $2,292,172<\/span>, respectively<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n5,097,627<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4,539,180<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Fixed assets, net of accumulated
\n depreciation of $540,426<\/span> and $491,186<\/span>, respectively<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n183,185<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n258,328<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Trademarks<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n35,319<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n33,321<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Investment at cost<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n100,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n100,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Security
\n deposit<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n19,280<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15,880<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total
\n assets<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n9,302,228<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n10,985,797<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
LIABILITIES AND STOCKHOLDERS\u2019
\n DEFICIT<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current liabilities:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Accounts payable and accrued
\n expenses<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n3,007,270<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n2,121,871<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Customer deposits<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n147,326<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n91,578<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current operating lease
\n liability<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n243,690<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n197,349<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current portion of deferred
\n variable payment obligation<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,161,727<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,901,258<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Loan payable – related
\n party<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n461,633<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n329,365<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Deferred compensation for
\n CEO<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,811,856<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,202,600<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current portion of loans
\n payable, net of discount of $635,774<\/span> and $0<\/span><\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n8,848,140<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n519,105<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current
\n portion of accrued interest payable<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,271,106<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n213,555<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total current liabilities<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n19,952,748<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n7,576,681<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Non-current operating lease
\n liability<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n676,694<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n810,513<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Loans payable, net of discount
\n of $0<\/span> and $360,163<\/span>, respectively<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n24,188,380<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n31,922,078<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Deferred variable payment
\n obligation<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,525,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,525,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Incentive compensation
\n plan payable<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n5,500,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4,000,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Accrued
\n interest payable<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n9,122,552<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n13,680,453<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total
\n liabilities<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n61,965,374<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n60,514,725<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Series B Convertible, Redeemable Preferred
\n Stock. $0.001<\/span><\/span> par value; 8<\/span><\/span>% cumulative dividend payable quarterly,$1,200<\/span><\/span> stated value, 5,000<\/span><\/span> shares authorized, no<\/span><\/span><\/span><\/span> shares issued
\n and outstanding at February 28, 2026 and February 28, 2025, respectively<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Series C Convertible, Redeemable Preferred
\n Stock. $0.001<\/span><\/span> par value; $1,200<\/span><\/span> stated value, redeemable at 109.5<\/span><\/span>%, 12<\/span><\/span>% dividend, 1,000<\/span><\/span> shares authorized, 417<\/span><\/span> and 306<\/span><\/span> shares issued
\n and outstanding at February 28, 2026 and February 28, 2025, respectively<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n547,941<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n402,084<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Convertible, Redeemable Preferred
\nStock, value<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n547,941<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n402,084<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Commitments and Contingencies<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n–<\/span><\/span>\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n–<\/span><\/span>\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Stockholders\u2019 deficit:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Preferred Stock, undesignated;
\n 15,534,000<\/span><\/span> shares authorized; no<\/span><\/span><\/span><\/span> shares issued and outstanding at February 28, 2026 and February 28, 2025, respectively<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Series G Redeemable Preferred
\n Stock. $0.001<\/span><\/span> par value; 100,000<\/span><\/span> shares authorized, no<\/span><\/span><\/span><\/span> shares issued and outstanding at February 28, 2026 and February 28, 2025,
\n respectively<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Series E Preferred Stock,
\n $0.001<\/span><\/span> par value; 4,350,000<\/span><\/span> shares authorized; 3,350,000<\/span><\/span> and 3,350,000<\/span><\/span> shares issued and outstanding, respectively<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,350<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,350<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Series F Convertible Preferred
\n Stock, $1.00<\/span><\/span> par value; 10,000<\/span><\/span> shares authorized; 2,513<\/span><\/span> and 2,513<\/span><\/span> shares issued and outstanding, respectively<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,513<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,513<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Preferred
\nStock, value<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,513<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,513<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Common Stock, $0.00001<\/span><\/span>
\n par value; 12,000,000,000<\/span><\/span> shares authorized 267,872,804<\/span><\/span> and 144,124,538<\/span><\/span> shares issued, issuable and outstanding, respectively<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,679<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,441<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Additional paid-in capital<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n117,803,027<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n106,459,528<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Preferred stock to be issued<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n99,086<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n99,086<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Accumulated
\n deficit<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(171,121,742<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(156,496,930<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Total
\n stockholders\u2019 deficit<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(53,211,087<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(49,931,012<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Total
\n liabilities and stockholders\u2019 deficit<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n9,302,228<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n10,985,797<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\naccompanying notes are an integral part of these consolidated financial statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

CONSOLIDATED
\nSTATEMENTS OF OPERATIONS<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended
February 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended
February 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Revenues<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n7,745,336<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n6,130,886<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Cost of goods sold<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n159,020<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,334,824<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Depreciation and Amortization<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,981,679<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,051,498<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Loss on disposal of revenue
\n earning devices<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n70,937<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n–<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total
\n Cost of Goods Sold<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,211,636<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,386,322<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Gross Profit<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n5,533,700<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,744,564<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Operating expenses:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Research and development
\n (note 9)<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4,128,155<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,462,558<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
General and administrative<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12,933,696<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n13,559,009<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Depreciation and amortization<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n141,051<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n429,139<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Loss on disposal of fixed
\n assets<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n22,312<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Operating
\n lease cost and rent<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n251,883<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n240,731<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total
\n operating expenses<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n17,477,097<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n17,691,437<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Loss from operations<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(11,943,397<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(13,946,873<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Other income (expense),
\n net:<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Interest expense<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(6,001,539<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(5,456,981<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Gain
\n on settlement of debt<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,434,685<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n468,262<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total
\n other income (expense), net<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(2,566,854<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(4,988,719<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net
\n Loss<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n(14,510,251<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(18,935,592<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net loss per share – basic<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(0.07<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(0.16<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net loss per share – diluted<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(0.07<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(0.16<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Weighted average common
\n share outstanding \u2013 basic and diluted<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n202,908,578<\/span><\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n116,476,733<\/span><\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\naccompanying notes are an integral part of these consolidated financial statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

CONSOLIDATED
\nSTATEMENTS OF STOCKHOLDERS\u2019 DEFICIT<\/span><\/p>\n

FOR
\nTHE YEARS ENDED FEBRUARY 28, 2026 AND FEBRUARY 28, 2025<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nTemporary
\n Equity<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShareholder\u2019s
\n Deficit<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nSeries B &
\n C<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nSeries E<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nSeries F<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAdditional<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nTotal<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPreferred
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPreferred
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPreferred
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCommon
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPaid-In<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAccumulated<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShareholders\u2019<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCapital<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDeficit<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDeficit<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Balance at February 29, 2024<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,350,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n3,350<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,533<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n101,619<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n92,387,510<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n924<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n92,656,977<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(132,962,427<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(40,199,557<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Cumulative Effect Adjustment
\n RFV discount per adoption of ASU 2020-06 at March 1, 2024<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(4,175,535<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(4,175,535<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Issuance of shares, net of $701,565<\/span> issuance
\n costs<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n49,796,369<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n498<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n13,120,181<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n13,120,679<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Debt exchanged for common
\n stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,940,659<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n19<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n561,981<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n562,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Series F Preferred Shares
\n exchanged for debt<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(20<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(20<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(65,793<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(334,187<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(400,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Issuance of Series B Preferred
\n Shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n300<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n360,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(82,000<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(82,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Series B Preferred Shares
\n issued as commitment fee<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n20<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n24,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(24,000<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(24,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Series B Preferred shares
\n issued as dividend<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n5,188<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(5,188<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(5,188<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Redemption of Series B
\n Preferred shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(324<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(389,188<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n89,189<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(89,189<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Issuance of Series C Preferred
\n Shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n306<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n402,084<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(123,504<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(123,504<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Stock based compensation<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n331,685<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n331,685<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net
\n loss<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(18,935,592<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(18,935,592<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Balance at February
\n 28, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n306<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n402,084<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,350,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n3,350<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,513<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n101,599<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n144,124,538<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1,441<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n106,459,528<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(156,496,930<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(49,931,012<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\naccompanying notes are an integral part of these consolidated financial statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

CONSOLIDATED
\nSTATEMENTS OF SHAREHOLDERS\u2019 DEFICIT<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nTemporary
\n Equity<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShareholder\u2019s
\n Deficit<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nSeries
\n B & C<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nSeries
\n E<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nSeries
\n F<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAdditional<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nTotal<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPreferred
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPreferred
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPreferred
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCommon
\n Stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPaid-In<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAccumulated<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShareholders\u2019<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nShares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nCapital<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDeficit<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nDeficit<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Balance
\n at February 28, 2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n306<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n402,084<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,350,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n3,350<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,513<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n101,599<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n144,124,538<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1,441<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n106,459,528<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(156,496,930<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(49,931,012<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Issuance
\n of shares, net of $364,161<\/span> issuance costs<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n50,403,802<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n504<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4,800,680<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4,801,184<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Issuance
\n of shares, net of issuance costs<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n50,403,802<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n504<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4,800,680<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4,801,184<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Debt
\n exchanged for common stock<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n71,350,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n714<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n6,383,286<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n6,384,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Conversion
\n of Series C Preferred shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(85<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(111,690<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,994,464<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n20<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n196,360<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(84,690<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n111,690<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Cash
\n redemption of Series C shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(95<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(125,000<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n29,871<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(29,871<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Series
\n C Preferred shares issued as dividend<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n44<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n58,100<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(58,100<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(58,100<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Penalty
\n on failure to redeem Series C Preferred shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n114<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n149,307<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(149,307<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(149,307<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Penalty
\n on failure to convert Series C Preferred shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n133<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n175,140<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(175,140<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(175,140<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Stock
\n based compensation<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n315,849<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n315,849<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net
\n loss<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(14,510,251<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(14,510,251<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Balance
\n at February 28, 2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n417<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n547,941<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,350,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n3,350<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,513<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n101,599<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n267,872,804<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n2,679<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n117,803,027<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(171,121,742<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(53,211,087<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\naccompanying notes are an integral part of these consolidated financial statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

CONSOLIDATED
\nSTATEMENTS OF CASH FLOWS<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended
February 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended
February 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
CASH FLOWS FROM OPERATING
\n ACTIVITIES:<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net loss<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(14,510,251<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(18,935,592<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Adjustments to reconcile net loss to net cash
\n used in operating activities:<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Depreciation and amortization<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,122,730<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,480,636<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Inventory provision (recovery)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(290,000<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(494,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Bad debts expense<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n138,405<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n83,682<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Reduction of right of use
\n asset<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n141,217<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n119,151<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Accretion of lease liability<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n103,956<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n118,502<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Stock based compensation<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,815,848<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,831,685<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Amortization of debt discounts<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n536,078<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n271,234<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Penalty added to face value
\n of the loan<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n24,510<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Gain on settlement of debt<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(3,434,685<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(468,262<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Loss on disposal of revenue
\n earning devices and fixed assets<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n93,249<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Increase in related party
\n accrued payroll and interest<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n132,268<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n71,927<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Changes in operating assets
\n and liabilities:<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Accounts receivable<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n224,725<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(694,929<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Prepaid expenses<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n294,264<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(160,393<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Deposit on right of use
\n asset<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(13,187<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Security deposit on operating
\n lease<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(3,400<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Device parts inventory<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(2,133,437<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(2,464,468<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Accounts payable and accrued
\n expenses<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n879,021<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n505,068<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Deferred compensation for
\n CEO<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(390,744<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,663,833<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Customer deposits<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n55,748<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n17,876<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Operating lease liability
\n payments<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(238,792<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(225,413<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Current portion of deferred
\n variable payment obligations for Payments<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,260,469<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n996,881<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Accrued
\n interest payable<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,847,474<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4,086,194<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net
\n cash used in operating activities<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(9,344,534<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(12,196,388<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
CASH FLOWS FROM INVESTING
\n ACTIVITIES:<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Purchase of fixed assets<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(10,863<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(23,724<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Purchase of trademarks<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(1,998<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(6,241<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Purchase
\n of investment (convertible note receivable)<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(50,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Net
\n cash used in investing activities<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(12,861<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(79,965<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
CASH FLOWS FROM FINANCING
\n ACTIVITIES:<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Share proceeds net of issuance
\n costs<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n5,219,853<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12,702,010<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Proceeds on issuance of
\n Series B Preferred Shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n278,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Redemption of Series B
\n or Series C Preferred Shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(125,000<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(389,188<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Proceeds on issuance of
\n Series C Preferred Shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n278,580<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Proceeds from loans payable<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4,808,171<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n350,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Repayment
\n of loans payable<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(1,302,561<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(183,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Net
\n cash provided by financing activities<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n8,600,463<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n13,036,402<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net change in cash<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(756,932<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n760,049<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Cash, beginning of period<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n865,975<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n105,926<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Cash, end of period<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n109,043<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n865,975<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Supplemental disclosure of cash and non-cash
\n transactions:<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Cash
\n paid for interest<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n188,993<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n94,517<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Cash
\n paid for income taxes<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Noncash investing and financing activities:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Cumulative
\n Effect Adjustment RFV discount per adoption of ASU 2020-06 at March 1, 2024<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n4,175,535<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Right
\n of use asset for lease liability<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n53,739<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Transfer
\n from device parts inventory to fixed assets<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n2,688,421<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n3,506,341<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Series
\n C penalty shares issued<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n324,447<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Discount
\n applied to face value of loans<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n811,689<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Exchange
\n of Series F Preferred Shares for loans payable<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Exchange
\n of loans payable and accrued interest for common shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n6,484,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n562,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Convertible
\n note receivable exchanged for investment at cost<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n50,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Dividend
\n on Series B or Series C Preferred Shares paid in Series B or Series C Preferred Shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n58,100<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n5,188<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\naccompanying notes are an integral part of these consolidated financial statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

1.
\nGENERAL INFORMATION AND GOING CONCERN<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Artificial
\nIntelligence Technology Solutions Inc. (formerly known as On the Move Systems Corp.) (\u201cAITX\u201d or the \u201cCompany\u201d)
\nwas incorporated in Florida on March 25, 2010 and reincorporated in Nevada on February 17, 2015. On August 24, 2018, Artificial Intelligence
\nTechnology Solutions Inc., changed its name from On the Move Systems Corp (\u201cOMVS\u201d).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Robotic
\nAssistance Devices, LLC (\u201cRAD\u201d), was incorporated in the State of Nevada on July 26, 2016 as a LLC. On July 25, 2017, Robotic
\nAssistance Devices LLC converted to a C Corporation, Robotic Assistance Devices, Inc. through the issuance of 10,000<\/span> common shares to
\nits sole shareholder.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nAugust 28, 2017, AITX completed the acquisition of RAD (the \u201cAcquisition\u201d), whereby AITX acquired all the ownership and equity
\ninterest in RAD for 3,350,000<\/span> shares of AITX Series E Preferred Stock and 2,450<\/span> shares of Series F Convertible Preferred Stock. AITX\u2019s
\nprior business focus was transportation services, and AITX was exploring the on-demand logistics market by developing a network of logistics
\npartnerships. As a result of the closing of the Acquisition, AITX has succeeded to the business of RAD, in which AITX purchased all of
\nthe outstanding shares of capital stock of RAD. As a result, AITX\u2019s business going forward will consist of one segment activity
\nwhich is the delivery of artificial intelligence and robotic solutions for operational, security and monitoring needs.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nAcquisition was treated as a reverse recapitalization effected by a share exchange for financial accounting and reporting purposes since
\nsubstantially all of AITX\u2019s operations were disposed of as part of the consummation of the transaction. Therefore, no goodwill
\nor other intangible assets were recorded by AITX as a result of the Acquisition. RAD is treated as the accounting acquirer as its stockholders
\ncontrol the Company after the Acquisition, even though AITX was the legal acquirer. As a result, the assets and liabilities and the historical
\noperations that are reflected in these financial statements are those of RAD as if RAD had always been the reporting company.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

GOING
\nCONCERN<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\naccompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The accompanying
\nfinancial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of
\nassets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a
\ngoing concern.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

For
\nthe year ended February 28, 2026, the Company had negative cash flow from operating activities of $9,344,534<\/span>. As of February 28, 2026
\nthe Company has an accumulated deficit of $171,121,742<\/span> and negative working capital of $17,017,745<\/span>. Management does not anticipate having
\npositive cash flow from operations in the near future. These factors raise substantial doubt about the Company\u2019s ability to continue
\nas a going concern for the twelve months following the issuance of these financial statements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany does not have the resources at this time to repay all its credit and debt obligations, make any payments in the form of dividends
\nto its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business.
\nAt the same time management points to its successful history with maintaining Company operations and reminds all with reasonable confidence
\nthis will continue. Management has plans to address the Company\u2019s financial situation as follows:<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Management
\nis committed to raise funds either through convertible debt or equity financing.. There is no assurance that these funds will be able
\nto be raised nor can we provide assurance that these possible raises may not have dilutive effects. In May 2026, the Company entered
\ninto an equity financing agreement whereby an investor will purchase up to $10,000,000<\/span> of the Company\u2019s common stock at a discount
\nover a three-year period. There remains approximately $10<\/span> million left to issue under this arrangement. Management believes that it has
\nthe necessary support to continue operations by continuing its funding methods in the following ways : growing revenues ,through equity
\nproceeds, and issuing debt.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

2.
\nACCOUNTING POLICIES<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Basis
\nof Presentation and Consolidation<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\naccompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States
\n(\u201cGAAP\u201d) and in conformity with the instructions on Form 10-K of Regulation S-X and the related rules and regulations of
\nthe Securities and Exchange Commission (\u201cSEC\u201d). The audited consolidated financial statements include the accounts of the
\nCompany and its wholly owned subsidiaries, Robotic Assistance Devices, Inc., Robotic Assistance Devices Group, Inc, Robotic Assistance
\nDevices Mobile, Inc., Robotic Assistance Devices Residential, Inc. All significant intercompany accounts and transactions have been eliminated
\nin consolidation.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Use
\nof Estimates<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\norder to prepare financial statements in conformity with accounting principles generally accepted in the United States, management
\nmust make estimates, judgements and assumptions that affect the amounts reported in the financial statements and determine whether contingent
\nassets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates
\nand assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements
\nare based. The most significant estimates included in these consolidated financial statements are those associated with the assumptions
\nused to value equity instruments used in debt settlements, amendments and extensions.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Reclassifications<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Certain
\namounts in the Company\u2019s consolidated financial statements for prior periods have been reclassified to conform to the current period
\npresentation. These reclassifications have not changed the results of operations of prior periods.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Concentrations
\nof Loans Payable<\/span><\/p>\n

\u00a0<\/span><\/p>\n

At
\nFebruary 28, 2026 there were $33,672,294<\/span> loans payable, $32,178,506<\/span> or 96<\/span>% of these loans to companies controlled by one individual.
\nAt February 28, 2025 there were $32,801,345<\/span> loans payable, $28,581,506<\/span> or 87<\/span>% of these loans to companies controlled by one individual..<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Cash<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash
\nequivalents consist of cash on deposit with banks and money market instruments. The Company places its cash and cash equivalents with
\nhigh-quality, U.S. financial institutions which, at times, may exceed federally insured limits, and, to date has not experienced losses
\non any of its balances.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Accounts
\nReceivable<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Accounts
\nreceivable are comprised of balances due from customers, net of estimated allowances for credit losses. In determining collectability,
\nhistorical trends are evaluated, and specific customer issues are reviewed on a periodic basis to arrive at appropriate allowances. There
\nwas an allowance of $170,000<\/span> and $140,000<\/span> provided as of February 28, 2026 and February 28, 2025, respectively. For the year ended February
\n28, 2026, two customer account for 31<\/span>% of total accounts receivable . For the year ended February 28, 2025, one customer accounts for
\n52<\/span>% of total accounts receivable.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Device
\nParts Inventory<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Device
\nparts inventory is stated at the lower of cost or net realizable value using the weighted average cost method. The Company records a
\nvaluation reserve for obsolete and slow-moving inventory, relying principally on specific identification of such inventory. The Company
\nuses these device parts in the assembly of revenue earning devices (and demo devices) as well as research and development. Depending
\non use, the Company will transfer the parts to the corresponding asset or expense if used in research and development. A charge to income
\nis taken when factors that would result in a need for an increase in the valuation, such as excess or obsolete inventory, are noted.
\nAt February 28, 2026 and at February 28, 2025 there was a valuation reserve of $175,000<\/span> and $465,000<\/span>, respectively.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Revenue
\nEarning Devices<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

Fixed
\nAssets<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Fixed
\nassets are stated at cost. Depreciation is provided on the straight-line method based on the estimated useful lives of the respective
\nassets which range from three to five years. Major repairs or improvements are capitalized. Minor replacements and maintenance and repairs
\nwhich do not improve or extend asset lives are expensed currently.<\/span><\/p>\n

SCHEDULE OF FIXED ASSETS STATED AT COST<\/span>\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
Computer
\n equipment<\/span><\/td>\n		\u00a0<\/span><\/td>\n3<\/span>
\n years<\/span><\/td>\n<\/tr>\n
Furniture
\n and fixtures<\/span><\/td>\n		\u00a0<\/span><\/td>\n3<\/span>
\n years<\/span><\/td>\n<\/tr>\n
Office
\n equipment<\/span><\/td>\n		\u00a0<\/span><\/td>\n4<\/span>
\n years<\/span><\/td>\n<\/tr>\n
Warehouse
\n equipment<\/span><\/td>\n		\u00a0<\/span><\/td>\n5<\/span>
\n years<\/span><\/td>\n<\/tr>\n
Demo
\n Devices<\/span><\/td>\n		\u00a0<\/span><\/td>\n4<\/span>
\n years<\/span><\/td>\n<\/tr>\n
Vehicles<\/span><\/td>\n\u00a0<\/span><\/td>\n3<\/span>
\n years<\/span><\/td>\n<\/tr>\n
Leasehold
\n improvements<\/span><\/td>\n		\u00a0<\/span><\/td>\n5<\/span>
\n years, the life of the lease<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\nCompany periodically evaluates the fair value of fixed assets whenever events or changes in circumstances indicate that its carrying
\namounts may not be recoverable. Upon retirement or other disposition of fixed assets, the cost and related accumulated depreciation are
\nremoved from the accounts and the resulting gain or loss, if any, is recognized in income.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Research
\nand Development<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Research
\nand development costs are expensed in the period they are incurred in accordance with ASC 730, Research and Development unless
\nthey meet specific criteria related to technical, market and financial feasibility, as determined by Management, including but not limited
\nto the establishment of a clearly defined future market for the product, and the availability of adequate resources to complete the project.
\nIf all criteria are met, the costs are deferred and amortized over the expected useful life or written off if a product is abandoned.
\nAt February 28, 2026 and February 28, 2025, the Company had no deferred development costs.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Contingencies<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Occasionally,
\nthe Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision
\nfor a liability when it believes that it is both probable that a liability has been incurred, and the amount can be reasonably estimated.
\nIf these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company\u2019s consolidated
\nfinancial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments
\nabout future events and can rely heavily on estimates and assumptions.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Sales
\nof Future Revenues<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany has entered into transactions, as more fully described in footnote 10, in which it has received funding from investors in exchange
\nfor which it will make payments to those investors based on the level of sales of certain revenue categories, generally based on a percentage
\nof sales for those certain revenues. The Company determines whether these agreements constitute sales of future revenues or are in substance
\ndebt based on the facts and circumstances of each agreement, with the following primary criteria determinative of whether the agreement
\nconstitutes a sale of future revenues or debt:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nDoes
\n the agreement purport, in substance, to be a sale<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nDoes
\n the Company have continuing involvement in the generation of cash flows due the investor<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nIs
\n the transaction cancellable by either party through payment of a lump sum or other transfer of assets<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nIs
\n the investors rate of return implicitly limited by the terms of the agreement<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nDoes
\n the Company\u2019s revenue for a reporting period underlying the agreement have only a minimal impact on the investor\u2019s rate
\n of return<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nDoes
\n the investor have recourse relating to payments due<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

In
\nthe 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
\nmethod. In the event a transaction is determined to be debt, it is recorded as debt and amortized using the effective interest method.
\nAs of the date of these financial statements, the Company has determined that all such agreements are debt.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Revenue
\nRecognition<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ASU
\n2014-09, \u201cRevenue from Contracts with Customers (Topic 606)\u201d, supersedes the revenue recognition requirements and
\nindustry specific guidance under Revenue Recognition (Topic 605). Topic 606 requires an entity to recognize revenue when it transfers
\npromised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange
\nfor those goods or services. Topic 606 defines a five-step process that must be evaluated and, in doing so, it is possible more judgment
\nand estimates may be required within the revenue recognition process than required under existing accounting principles generally accepted
\nin the United States of America (\u201cU.S. GAAP\u201d) including identifying performance obligations in the contract, estimating the
\namount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance
\nobligation.. For the year ended February 28, 2026, two customers accounted for 55<\/span>% of total revenue and for the year ended February 28,
\n2025, one customer accounted for 55<\/span>% of total revenue (see Note-3).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Income
\nTaxes<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Income
\ntaxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income
\nand expense are recognized in the financial statements in different periods than when recognized in the tax return. Deferred tax assets
\narise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax
\nreturn prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset
\ntax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before
\nthe tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities
\nare measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected
\nto be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the
\nperiod that includes the enactment date.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nDecember 22, 2017, the Tax Cuts and Jobs Act (\u201cTax Act\u201d) was signed into law. ASC 740, Accounting for Income Taxes requires
\ncompanies to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects
\nof changes in tax laws in the period in which the new legislation is enacted. The Company\u2019s gross deferred tax assets were revalued
\nbased on the reduction in the federal statutory tax rate from 35% to 21%. A corresponding offset has been made to the valuation allowance,
\nand any potential other taxes arising due to the Tax Act will result in reductions to the Company\u2019s net operating loss carryforward
\nand valuation allowance. The Company will continue to analyze the Tax Act to assess its full effects on the Company\u2019s financial
\nresults, including disclosures, for the Company\u2019s fiscal year ending February 28, 2026, but the Company does not expect the Tax
\nAct to have a material impact on the Company\u2019s consolidated financial statements.<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Leases<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Lease
\nagreements are evaluated to determine if they are sales\/finance leases meeting any of the following criteria at inception: (a) transfer
\nof ownership of the underlying asset; (b) purchase option that is reasonably certain of being exercised; (c) the lease term is greater
\nthan 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
\nand 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)
\nequals or exceeds substantially all of the fair value of the underlying asset.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

If
\nat its inception, a lease meets any of the four lease criteria above, the lease is classified by the Company as a sales\/finance; and
\nif none of the four criteria are met, the lease is classified by the Company as an operating lease.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

Distinguishing
\nLiabilities from Equity<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

Once
\nthe Company determines that a financial instrument should not be classified as a liability, the Company determines whether the financial
\ninstrument should be presented between the liability section and the equity section of the balance sheet (\u201ctemporary equity\u201d).
\nThe Company will determine temporary equity classification if the redemption of the financial instrument is outside the control of the
\nCompany (i.e. at the option of the holder). Otherwise, the Company accounts for the financial instrument as permanent equity.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nCEO and Chairman holds sufficient shares of the Company\u2019s voting stock that give sufficient voting rights under the articles of
\nincorporation and bylaws of the Company such that the CEO and Chairman can at any time unilaterally vote to increase the number of authorized
\nshares of common stock of the Company without the need to call a general meeting of common shareholders of the Company.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Initial
\nMeasurement<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany records its financial instruments classified as liability, temporary equity or permanent equity at issuance at the fair value,
\nor cash received.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Subsequent
\nMeasurement \u2013 Financial Instruments Classified as Liabilities<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany records the fair value of its financial instruments classified as liabilities at each subsequent measurement date. The changes
\nin fair value of its financial instruments classified as liabilities are recorded as other income (expenses).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Fair
\nValue of Financial Instruments<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ASC
\nTopic 820, Fair Value Measurements and Disclosures (\u201cASC Topic 820\u201d) provides a framework for measuring fair value
\nin accordance with generally accepted accounting principles.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ASC
\nTopic 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
\nbetween market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1)
\nmarket participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity\u2019s
\nown assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable
\ninputs).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nLevel
\n 1 \u2013 Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nLevel
\n 2 \u2013 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
\n or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical
\n or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset
\n or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u25cf<\/span><\/td>\nLevel
\n 3 \u2013 Inputs that are unobservable for the asset or liability.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Measured
\non a Recurring Basis<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table presents information about our assets and liabilities measured at fair value on a recurring basis, aggregated by the
\nlevel in the fair value hierarchy within which those measurements fell:<\/span><\/p>\n

SCHEDULE OF LIABILITIES MEASURED AT FAIR VALUE<\/span>\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nAmount
\n at<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFair
\n Value Measurement Using<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFair
\n Value<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nLevel
\n 1<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nLevel
\n 2<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nLevel
\n 3<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
February 28, 2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Assets<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Investment
\n at cost<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n100,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n50,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n50,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Liabilities<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Incentive
\n compensation plan payable \u2013 revaluation of equity awards payable in Series G shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n5,500,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n5,500,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
February 28, 2025<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Liabilities<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Incentive
\n compensation plan payable \u2013 revaluation of equity awards payable in Series G shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n4,000,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n4,000,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

For
\nthe incentive compensation plan , the Company recorded stock based compensation of $1,500,000<\/span> and $1,500,000<\/span> for the years ended February
\n28, 2026 and February 28, 2025 with corresponding adjustments to incentive compensation plan payable.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nmethod of valuation of the incentive compensation plan payable is based on the redemption value of the Series G Preferred Shares. The
\nmethod of valuation of the Level 3 investment at cost is an independent third party valuation of the common share value of the investment.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\ncarrying amounts of the Company\u2019s financial assets and liabilities, such as cash, accounts receivable, prepaid expenses and advances,
\naccounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Earnings
\n(Loss) per Share<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Basic
\nearnings (loss) per share (\u201cEPS\u201d) is computed by dividing net income (loss) available to common shareholders (numerator)
\nby the weighted average number of shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential
\ncommon shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method.
\nIn computing diluted EPS, the average stock price for the period is used to determine the number of shares assumed to be purchased from
\nthe exercise of stock options and\/or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Basic
\nloss per common share is computed based on the weighted average number of shares outstanding during the period. Diluted loss per share
\nis computed in a manner similar to the basic loss per share, except the weighted-average number of shares outstanding is increased to
\ninclude all common shares, including those with the potential to be issued by virtue of convertible debt and other such convertible instruments.
\nDiluted loss per share contemplates a complete conversion to common shares of all convertible instruments only if they are dilutive in
\nnature with regards to earnings per share.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Recently
\nAdopted Accounting Pronouncements<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ASU
\n2023-07 \u2013 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\nNovember 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The
\namendments require enhanced disclosures about significant segment expenses and other segment items, require disclosure of the title and
\nposition of the chief operating decision maker (\u201cCODM\u201d), explain how the CODM uses reported measures of segment profit or
\nloss to assess performance and allocate resources, and expand interim disclosure requirements. The amendments apply to entities with
\na single reportable segment as well as entities with multiple reportable segments.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany adopted ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, during fiscal 2025.
\nThe standard requires enhanced disclosures regarding segment expenses and CODM information and applies to entities with a single reportable
\nsegment. Adoption of the standard impacted the Company\u2019s segment reporting disclosures only and did not affect its consolidated
\nfinancial position, results of operations, or cash flows.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Recently
\nissued accounting pronouncement not yet effective<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ASU
\n2024-04\u2014Debt with Conversion and Other Options (Topic 470-20): Induced Conversions of Convertible Debt Instruments<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\nNovember 2024, the Financial Accounting Standards Board (\u201cFASB\u201d) issued ASU 2024-04, Debt with Conversion and Other Options
\n(Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. The amendments clarify the requirements for determining whether
\ncertain settlements of convertible debt instruments should be accounted for as induced conversions or as debt extinguishments. Under
\nthe amended guidance, an induced conversion requires that the inducement offer provide the holder, at a minimum, the consideration issuable
\nunder the existing conversion privileges of the instrument.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\namendments are effective for annual reporting periods beginning after December 15, 2025, including interim reporting periods within those
\nfiscal years. Early adoption is permitted. The Company is currently evaluating the impact that adoption of this guidance will have on
\nits consolidated financial statements and related disclosures.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ASU
\n2025-05\u2014Financial Instruments\u2014Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract
\nAssets<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\nJuly 2025, the Financial Accounting Standards Board (\u201cFASB\u201d) issued ASU 2025-05, Financial Instruments\u2014Credit Losses
\n(Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments refine the guidance in ASC
\n326 related to the measurement of expected credit losses for accounts receivable and contract assets arising from revenue transactions
\naccounted for under ASC 606. The update clarifies the application of the current expected credit loss (\u201cCECL\u201d) model to such
\nassets, including the use of practical expedients and considerations in estimating expected credit losses over the contractual term of
\nthe asset.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\namendments are effective for annual reporting periods beginning after December 15, 2026, including interim periods within those fiscal
\nyears, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-05 on its consolidated financial
\nstatements and related disclosures.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

3.
\nREVENUE FROM CONTRACTS WITH CUSTOMERS<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Revenue
\nis earned primarily from two sources: 1) direct sales of goods or services and 2) short-term rentals. Direct sales of goods or services
\nare accounted for under Topic 606, , and short-term rentals are accounted for under Topic 842 (which addresses lease accounting and was
\nadopted on March 1, 2019).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

As
\ndisclosed in the revenue recognition section of Note 2 \u2013 Accounting Polices, the Company adopted Topic 606 in accordance with the
\neffective date on March 1, 2018. Note 2 includes disclosures regarding the Company\u2019s method of adoption and the impact on the Company\u2019s
\nfinancial statements. Revenue is recognized on direct sales of goods or services when it transfers promised goods or services to customers
\nin an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

The
\nfollowing table presents revenues from contracts with customers disaggregated by product\/service:<\/span><\/p>\n

SCHEDULE OF REVENUES FROM CONTRACTS WITH CUSTOMERS<\/span>\u00a0<\/span><\/p>\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended
February 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended
February 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Device rental activities<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n6,920,336<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n5,050,255<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Direct sales of goods
\n and services<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n825,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,080,631<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Revenue<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n7,745,336<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n6,130,886<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\nCompany operates as one reportable segment The Chief Executive Officer (\u201cCEO\u201d) serves as the Chief Operating Decision Maker
\n(\u201cCODM\u201d). The CODM evaluates the Company\u2019s performance based on consolidated net income. This measure aligns with the
\nCompany\u2019s consolidated financial statements and serves as the basis for resource allocation and performance assessment. The measure
\nof segment assets is reported on the balance sheet as total consolidated assets. The CODM monitors profitability and strategic growth
\ninitiatives on a consolidated basis, without disaggregating profit or loss into separate operating segments. The Company determined there
\nare no significant segment expenses that require a separate disclosure. The consolidated net income is used to assess overall company
\nperformance, benchmark against industry standards, and identify profitability trends, which guides resource allocation and investment
\nin expansion and program upgrades. The CODM also evaluates company performance using operating income. Operating income provides the
\nCODM with a focused view of the Company\u2019s profitability excluding the effects of financing activities, tax strategies, and other
\nnon-operating items. This measure enables the CODM to assess operational efficiency, monitor performance trends, and evaluate the effectiveness
\nof strategies aimed at revenue generation and cost management.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

4.
\nLEASES<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

There
\nis no lease renewal. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there
\nis a transfer of title or purchase option reasonably certain of exercise.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Below
\nis a summary of our lease assets and liabilities at February 28, 2026 and February 28, 2025.<\/span><\/p>\n

SCHEDULE OF LEASE ASSETS AND LIABILITIES<\/span>\u00a0<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
Leases<\/span><\/td>\n\u00a0<\/span><\/td>\nClassification<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Assets<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Operating<\/span><\/td>\n\u00a0<\/span><\/td>\nOperating
\n Lease Assets<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n931,814<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1,010,545<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Liabilities<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Operating<\/span><\/td>\n\u00a0<\/span><\/td>\nCurrent Operating Lease Liability<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n243,690<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n197,349<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Noncurrent<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Operating<\/span><\/td>\n\u00a0<\/span><\/td>\nNoncurrent Operating Lease
\n Liabilities<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n676,694<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n810,513<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total lease liabilities<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n920,384<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1,007,862<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Operating
\nlease cost and rent was $251,883 <\/span>and $240,731<\/span> for both the twelve months ended February 28, 2026 and February 28, 2025, respectively.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

5.
\nINVESTMENT<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nDecember 23, 2022 the Company entered into a Simple Agreement for Future Equity (SAFE) contract to invest $50,000<\/span> to acquire shares of
\na company\u2019s capital stock at a discount. On June 3, 2024 the Company acquired a $50,000<\/span> convertible note receivable from Nightingale
\nIntelligent Systems, Inc., a private Delaware corporation that provides unmanned aerial vehicles
\n(UAV) for commercial applications. On January 3, 2025 the Company exchanged it\u2019s convertible note receivable for : 1,770,840<\/span> Series
\nA preferred shares, 15,000<\/span> common shares and 165,000<\/span> common share warrants. On February 28, 2025, there was a 10 :1 split<\/span>. The Company
\nnow holds 177,084<\/span> Series A preferred shares, 1,500<\/span> common shares and 16,500<\/span> common share warrants (at a strike price of $0.80<\/span>\/share).
\nThe Company values the<\/span> Nightingale Intelligent Systems, Inc.\u2019s shares and warrants
\nat $50,000<\/span> bringing total investments at cost to $100,000<\/span> at February 28, 2026.<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

6.
\nREVENUE EARNING DEVICES<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Revenue
\nearning devices (RED) consisted of the following:<\/span><\/p>\n

\u00a0SCHEDULE OF REVENUE EARNING DEVICES<\/span>\u00a0<\/span><\/span><\/span><\/p>\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Revenue earning devices<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n8,355,295<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n6,831,352<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Less: Accumulated depreciation<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(3,257,668<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(2,292,172<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Total<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n5,097,627<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n4,539,180<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2026, the Company made total additions to revenue earning devices of $2,632,720<\/span> which were transferred from
\ninventory. For the year ended February 28, 2026, the Company disposed of assets with a value $1,108,776<\/span> and related accumulated depreciation
\n$1,037,839<\/span> with a net book value of $70,937 <\/span>for zero net proceeds..<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2025, the Company made total additions to revenue earning devices of $3,398,505<\/span> which were transferred from
\ninventory. There was no<\/span> permanent impairment on revenue earning services for the year ended February 28, 2025.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Depreciation
\nand amortization for the years ended February 28, 2026, and February 28, 2025, are as follows:<\/span><\/p>\n

\u00a0SCHEDULE OF DEPRECIATION AND AMORTIZATION<\/span><\/span><\/p>\n\n\n\n\n\n\n
Depreciation
\n and Amortization RED<\/span><\/td>\n		\u00a0<\/span><\/td>\nYear
\n Ended
February 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended
February 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Cost of Goods Sold<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1,981,679<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1,051,498<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Operating expenses<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n91,811<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n287,830<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total Depreciation and
\n Amortization RED<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n2,073,490<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1,339,328<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

7.
\nFIXED ASSETS<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Fixed
\nassets consisted of the following:<\/span><\/p>\n

\u00a0\u00a0SCHEDULE OF FIXED ASSETS<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Automobile<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n74,237<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n74,237<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Demo devices<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n265,421<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n302,186<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Tooling<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n107,020<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n107,020<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Machinery and equipment<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n17,246<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n8,825<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Computer equipment<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n157,448<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n157,448<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Office equipment<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15,312<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15,312<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Furniture and fixtures<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n21,225<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n21,225<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Warehouse equipment<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n38,746<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n36,305<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Leasehold improvements<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n26,956<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n26,956<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Fixed assets gross<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n723,611<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n749,514<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Less: Accumulated depreciation<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(540,426<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(491,186<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Fixed assets, net of
\n accumulated depreciation<\/span><\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n183,185<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n258,328<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2026, the Company made additions to fixed assets of $10,863<\/span> and also additions through inventory transfers
\nof $55,701<\/span>. For the year ended February 28, 2026, the Company disposed of assets with a value $92,466<\/span> and related accumulated depreciation
\n$70,154<\/span> with a net book value of $22,312<\/span> for zero net proceeds.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2025, the Company made additions to fixed assets of $23,724<\/span> and also additions through inventory transfers
\nof $107,836<\/span>.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Depreciation
\nand amortization for the years ended February 28, 2026, and February 28, 2025, are as follows:<\/span><\/p>\n

\u00a0<\/span><\/p>\n

SCHEDULE OF DEPRECIATION AND AMORTIZATION IN OPERATING EXPENSES<\/span><\/span><\/p>\n\n\n\n\n\n\n
Depreciation
\n and Amortization<\/span><\/td>\n		\u00a0<\/span><\/td>\nYear
\n Ended
February 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nYear
\n Ended
February 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Fixed assets<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n49,240<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n141,309<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Revenue earning devices<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n91,811<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n287,830<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total Depreciation and
\n Amortization included in operating expenses<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n141,051<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n429,139<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

8.
\nDEFERRED VARIABLE PAYMENT OBLIGATION<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nFebruary 1, 2019 the Company entered into an agreement with an investor whereby the investor would pay up to $900,000<\/span> in exchange for
\na perpetual 9<\/span>% rate payment (Payments) on the Company\u2019s reported quarterly revenue from operations excluding any gains or losses
\nfrom financial instruments (Revenues). At February 29, 2020<\/span> the investor has advanced the full $900,000<\/span>.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nMay 9, 2019 the Company entered into two similar arrangements with two investors:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n
\u00a0<\/span><\/td>\n(1)<\/span><\/td>\nThe
\n investor would pay up to $400,000<\/span> in exchange for a perpetual 4<\/span>% rate Payment on the Company\u2019s reported quarterly Revenues.
\n At February 29, 2020, $400,000<\/span> has been paid to the Company.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n(2)<\/span><\/td>\nThe
\n investor would pay up to $50,000<\/span> in exchange for a perpetual 1.11<\/span>% rate Payment on the Company\u2019s reported quarterly Revenues.
\n At February 29, 2020, $50,000<\/span> has been paid to the Company.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

These
\nvariable payments (Payments) are to be made 30 days after the end of each fiscal quarter. If the Payments would deplete RAD\u2019s available
\ncash 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
\non the unpaid amount.<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\nthe 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
\nvalue (FMV) of all future Payments associated with the assets sold as determined by an independent valuator to be chosen by the investors.
\nThe FMV cannot exceed 30% of the total asset disposition price defined as the total price paid for the assets plus all future Payments
\nassociated 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
\na 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
\nthe share disposition price defined as the total price the third party paid for the shares plus the total value of all future Payments.<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nNovember 18, 2019 the Company entered into another similar arrangement with the (February 1, 2019) investor above whereby the investor
\nwould advance up to $225,000<\/span> in exchange for a perpetual 2.25<\/span>% rate Payment on the Company\u2019s quarterly Revenues (commencing on
\nquarter ending May 31, 2020). At February 29, 2020 the investor has advanced $109,000<\/span> and the investor advanced the $116,000<\/span> remainder
\nas of May 2020.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nDecember 30, 2019 the Company entered into another similar arrangement with a new investor whereby the investor would advance up to $100,000<\/span>
\nin exchange for a perpetual 1.00<\/span>% rate Payment on the Company\u2019s quarterly Revenues (commencing quarter ended November 30, 2020).
\nAt February 29, 2020 the investor has advanced $50,000<\/span> with the remainder to be advanced no later than June 30, 2020. If the total investor
\nadvances turns out to be less than $100,000<\/span>, this would not constitute a breach of the agreement, rather the 1.00<\/span>% rate would be adjusted
\non a pro-rata basis.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nApril 22, 2020 the Company entered into another similar arrangement with the (first May 9, 2019) investor above whereby the investor
\nwould advance up to $100,000<\/span> in exchange for a perpetual 1.00<\/span>% rate Payment on the Company\u2019s quarterly Revenues. At May 31, 2020
\nthe investor has fully funded this commitment.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nJuly 1, 2020 the Company entered into a similar agreement with the first investor whereby the investor would pay up to $800,000<\/span> in exchange
\nfor a perpetual 2.75<\/span>% rate payment (Payment) on the Company\u2019s reported quarterly revenue. These Payments are to be made 90 days
\nafter the fiscal quarter with the first payment being due no later than May 31, 2021. If the Payments would deplete RAD\u2019s available
\ncash 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
\nfirst payment due July 2020 and the final payment no later than February 28, 2021. As at August 31, 2020 the investor had fully funded
\nthe $800,000 commitment<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nAugust 27, 2020 the Company and the first investor referred to above consolidated the three separate agreements of February 1, 2019 for
\n$900,000<\/span>, November 18, 2019 for $225,000<\/span> and July 1, 2020 for $800,000<\/span> into a new agreement for a total of $1,925,000<\/span>. This new agreement
\nis for similar terms as the above agreements save for the following: the rate payment is revised to 14.25<\/span>% payable on revenues commencing
\nthe quarter ended August 31, 2020 and the Payments are secured by the assets of the Company. This interest may be secured by UCC filing
\nbut is subordinated to equipment financing on the products the Company leases to its customers.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\nsummary of all agreements mentioned above if in the event that at least 10<\/span>% of the assets of the Company are sold by the Company, the
\ninvestors would be entitled to the fair market value (FMV) of all future Payments associated with the assets sold as determined by an
\nindependent valuator to be chosen by the investors. The FMV cannot exceed 43.77% of the total asset disposition price defined as the
\ntotal price paid for the assets plus all future Payments associated with the assets sold. In the event that the common or preferred shares
\nare 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
\nin one lump payment. The FMV cannot exceed 43.77% of the share disposition price defined as the total price the third party paid for
\nthe 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
\nbelow. This aggregate asset disposition % was reduced from 43.77 % to 33.77%<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nPayments will first become payable on June 30, 2019 (unless otherwise indicated) based on the quarterly Revenues for the quarter ended
\nMay 31, 2019 and will accrue every quarter thereafter. As of February 28, 2026, the Company has accrued approximately $3,161,727<\/span> in Payments,
\nof which $1,901,259<\/span> is in arrears. As of February 28, 2025, the Company has accrued approximately $1,901,258<\/span> in Payments, of which $904,377<\/span>
\nis in arrears No notices have been received by the Company.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nMarch 1, 2021 the first investor referred to above whose aggregate investment is $1,925,000<\/span> revised his agreements as follows:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n
\u00a0<\/span><\/td>\n1)<\/span><\/td>\nThe
\n rate payment was reduced from 14.25<\/span> % to 9.65<\/span> %<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n2)<\/span><\/td>\nThe
\n asset disposition % (see below) was reduced from 31<\/span> % to 21<\/span>%<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

In
\nconsideration for the above changes, the investor received 40<\/span> Series F Convertible Preferred Stock and a warrant to purchase 367<\/span> shares
\nof its Series F Convertible Preferred Stock with a five5<\/span>-year term and an exercise price of $1.00<\/span>. During the three months ended May 31,
\n2021 the warrant holder exercised warrants to acquire 38<\/span> shares of Series F Convertible Preferred Stock. The company attributed a fair
\nvalue based on recent transactions for the Series F Preferred stock and warrants of $33,015,214<\/span> and recorded a loss on settlement of
\ndebt with a corresponding adjustment to paid in capital.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany retains total involvement in the generation of cash flows from these revenue streams that form the basis of the payments to be
\nmade to the investors under this agreement. Because of this, the Company has determined that the agreements constitute debt agreements.
\nAs of February 28, 2026, and February 28, 2025, the long-term balances other than Payments already owed is the cash received of $2,525,000<\/span>
\nand $2,525,000<\/span>, respectively.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

For
\nboth the years ended February 28, 2026 and February 28, 2025, the Company has received $0<\/span> related to the deferred payment obligation
\nas the balance remains $2,525,000<\/span> at both February 28, 2026 and February 28, 2025.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

9.
\nRELATED PARTY TRANSACTIONS<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

For
\nthe years ended February 28, 2026, and February 28, 2025, the Company had net (advances) repayments of ($132,268<\/span>) and ($71,927<\/span>), respectively,
\nto its loan payable-related party. At February 28, 2026, the loan payable-related party was $461,633<\/span> and $329,365<\/span> at February 28, 2025.
\nAs of February 28, 2026, included in the balance due to the related party is $285,638<\/span> of deferred salary all of which bears interest
\nat 12<\/span>%. As of February 28, 2025, included in the balance due to the related party is $190,013<\/span> of deferred salary all of which bears interest
\nat 12<\/span>%. The accrued interest included at February 28, 2026, was $79,268<\/span> (February 28, 2025- $51,575<\/span>).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2026, the Company a net repayment of $390,744<\/span> in deferred compensation for the CEO. This would bring his
\nannual bonus for the year ended February 28, 2026, to $1.0<\/span> million. For the fiscal year ended February 28, 2025, the Company paid out
\n$1,390,744<\/span> to the CEO. During the year ended February 28, 2025, the Company a net accrual of $1,663,833<\/span> in deferred compensation for
\nthe CEO. This would bring his annual bonus for the year ended February 28, 2025, to $2.5<\/span> million. For the fiscal year ended February
\n28, 2025, the Company paid out $836,167<\/span> to the CEO. This was all in accordance with a December 2023 board action allowing for $1<\/span> million
\nof discretionary compensation.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During
\nthe years ended February 28, 2026, and February 28, 2025, the Company accrued 1,500<\/span> Series G shares to be issued totaling $1,500,000<\/span>
\nand 1,500<\/span> Series G preferred shares to be issued totaling $1,500,000<\/span>, respectively, both per Company resolution. The Series G preferred
\nshares are redeemable at $1,000<\/span> per share and will be issued by the Company at the appropriate time. The balance of Incentive Compensation
\nPlan Payable at February 28, 2026, was $5,500,000<\/span> and the balance February 28, 2025, was $4,000,000<\/span>.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During
\nthe years ended February 28, 2026, and February 28, 2025, the Company was charged $2,576,111<\/span> and $2,541,180<\/span>, respectively in consulting
\nfees for research and development to a company partially owned by a principal shareholder included in research and development expenses.
\nThe principal shareholder received no compensation from this partially owned research and development company and the fees were spent
\non core development projects. As at February 28, 2026, and February 28, 2025, the balance due to this company was $160,557<\/span> and $76,532<\/span>,
\nrespectively.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

10.
\nLOANS PAYABLE<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Loans
\npayable at February 28, 2026 consisted of the following:<\/span><\/p>\n

SCHEDULE OF LOANS PAYABLE<\/span>\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Date<\/span><\/td>\n\u00a0<\/span><\/td>\nMaturity<\/span><\/td>\n\u00a0<\/span><\/td>\nDescription<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nPrincipal<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nInterest
\n Rate<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
July 18, 2016<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nJuly 18, 2017<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(1)*<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n3,500<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n22<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
December 10, 2020<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(2)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,921,168<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
December 10, 2020<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(3)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,754,338<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
December 10, 2020<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nDecember 10, 2024<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(4)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
December 14, 2020<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(5)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n310,375<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
December 30, 2020<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(6)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n350,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
January 1, 2021<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(7)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n25,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
January 1, 2021<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(8)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n145,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
January 14, 2021<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(9)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n237,500<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
February 22, 2021<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(10)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,650,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
March 1, 2021<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(11)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n6,000,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
June 8, 2021<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nJune 8, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(12)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,750,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
July 12, 2021<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nJuly 26, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(13)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n7<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
September 14, 2021<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nSeptember 14, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(14)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,650,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
July 28, 2022<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(15)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n170,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
August 30, 2022<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nAugust 30,2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(16)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,000,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
September 7, 2022<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(17)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
September 8, 2022<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(18)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n475,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
October 13, 2022<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMarch 1, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(19)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n350,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
October 28, 2022<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 31, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(20)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
November 9, 2022<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 31, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(20)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
November 10, 2022<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 31, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(20)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
November 15, 2022<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 31, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(20)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
January 11, 2023<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 31, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(20)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
February 6, 2023<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 31, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(20)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
April 5. 2023<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 31, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(20)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
April 20, 2023<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 31, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(20)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
May 11, 2023<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 31, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(20)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
October 27, 2023<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 31, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(20)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n400,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
November 30, 2023<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nApril 30, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPurchase Agreement<\/span><\/td>\n(21)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n203,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
March 8, 2024<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nAugust 8, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPurchase Agreement<\/span><\/td>\n(22)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n350,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
July 26, 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nJuly 26, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(23)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n165,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
August 7,2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nAugust 7,2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(24)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n245,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
August 25, 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nAugust 25, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(25)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n137,500<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
August 25, 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nMay 6, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nFuture Receivables Purchase and Sale Agreement<\/span><\/td>\n(26)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n189,951<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n108<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
September 25, 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nSeptember 25, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(27)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n550,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
October 30. 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nOctober 30. 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(28)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n200,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
November 6, 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nNovember 6, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(29)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n275,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
November 24, 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nNovember 24, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(30)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n450,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
December 9, 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nDecember 9, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(31)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n450,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
December 17, 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nSeptember 23, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nBusiness loan<\/span><\/td>\n(32)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n329,962<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n65<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
December 22, 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nDecember 22, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nConvertible note<\/span><\/td>\n(33)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n495,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
December 27, 2025<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nDecember 27, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(34)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n275,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
January 12, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nJanuary 12, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(35)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n330,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
January 27, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nJanuary 27, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(36)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n170,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
February 2, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary 2, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(37)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n330,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
February 19, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary 19, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nConvertible note<\/span><\/td>\n(38)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n165,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
February 24, 2026<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary 24, 2027<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\nPromissory note<\/span><\/td>\n(39)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n170,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n15<\/span><\/td>\n%<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n33,672,294<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Less: current portion of loans
\n payable<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(9,483,914<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Less: discount
\n on non-current loans payable<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n–<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Non-current
\n loans payable, net of discount<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n24,188,380<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current portion of loans payable<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n9,483,914<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Less: discount
\n on current portion of loans payable<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(635,774<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Current
\n portion of loans payable, net of discount<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n8,848,140<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

As
\nof February 28, 2026 , all long term debt matures in the fiscal year ending February 29, 2028.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
(1)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(2)<\/span><\/td>\n <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(3)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(4)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(5)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(6)<\/span><\/td>\nThe
\n note, with an original principal amount of $350,000<\/span>, may be pre-payable at any time. The note balance includes an original issue
\n discount of $35,000<\/span> and was issued with a warrant to purchase 50,000,000<\/span> shares at an exercise price of $0.025<\/span> per share with a 3<\/span>-year
\n term and having a relative fair value of $271,250<\/span>. The discounts are being amortized over the term of the loan. After allocating
\n these charges to debt and equity according to their respective values, a debt discount of $271,250<\/span> with a corresponding adjustment
\n to paid in capital for the relative fair value of the warrant. On March 1, 2024, the unamortized relative fair value discount of
\n $65,092<\/span> was removed with a corresponding adjustment to accumulated deficit. A $8,399<\/span> unamortized discount remained. On November 28,
\n 2023, the parties extended the maturity date from December 10, 2023, to March 1, 2025, with all other terms and conditions remaining
\n the same.<\/span> On April 16, 2025, the parties again extended the maturity date from March 1, 2025, to March 1, 2027, with all other terms
\n and conditions remaining the same.<\/span> For the year ended February 28, 2026, the Company recorded amortization expense of $138<\/span>, with
\n an unamortized discount of $0<\/span> at February 28, 2026.The loan is fully amortized. <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(7)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(8)<\/span><\/td>\n<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
(9)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(10)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(11)<\/span><\/td>\n <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(12)<\/span><\/td>\n<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
(13)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(14)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(15)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(16)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(17)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(18)<\/span><\/td>\n<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
(19)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(20)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\nOctober
\n 28, 2022, $400,000<\/span> loan, original issue discount of $50,000<\/span>, 61<\/span> Series F Preferred Share warrants and 1 Series F Preferred Share
\n having a relative fair value of $299,399<\/span>. On March 1, 2024, the unamortized relative fair value discount of $286,775<\/span> was removed
\n with a corresponding adjustment to accumulated deficit. A $47,892<\/span> unamortized discount remained. For the year ended February 28,
\n 2026, the Company recorded amortization expense of $18,483<\/span>, with an unamortized discount of $14,428<\/span> at February 28, 2026.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\nNovember
\n 9, 2022, $400,000<\/span> loan, original issue discount of $50,000<\/span>, 61<\/span> Series F Preferred Share warrants having a relative fair value of
\n $299,750<\/span>. On March 1, 2024, the unamortized relative fair value discount of $288,513<\/span> was removed with a corresponding adjustment
\n to accumulated deficit. A $48,126<\/span> unamortized discount remained. For the year ended February 28, 2026, the Company recorded amortization
\n expense of $18,573<\/span>, with an unamortized discount of $14,502<\/span> at February 28, 2026.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

November
\n10, 2022, $400,000<\/span> loan, original issue discount of $50,000<\/span>, 61<\/span> Series F Preferred Share warrants having a relative fair value of $302,020<\/span>.
\nOn March 1, 2024, the unamortized relative fair value discount of $291,694<\/span> was removed with a corresponding adjustment to accumulated
\ndeficit. A $48,290<\/span> unamortized discount remained. For the year ended February 28, 2026, the Company recorded amortization expense of
\n$18,637<\/span>, with an unamortized discount of $18,647<\/span> at February 28, 2026.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

November
\n15, 2022, $400,000<\/span> loan, original issue discount of $50,000<\/span>, 61<\/span> Series F Preferred Share warrants having a relative fair value of $299,959<\/span>.
\nOn March 1, 2024, the unamortized relative fair value discount of $287,814<\/span> was removed with a corresponding adjustment to accumulated
\ndeficit. A $47,976<\/span> unamortized discount remained. For the year ended February 28, 2026, the Company recorded amortization expense of
\n$18,515<\/span>, with an unamortized discount of $14,456<\/span> at February 28, 2026.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

January
\n11, 2023, $400,000<\/span> loan, original issue discount of $50,000<\/span>, 61<\/span> Series F Preferred Share warrants having a relative fair value of $299,959<\/span>.
\nOn March 1, 2024, the unamortized relative fair value discount of $286,813<\/span> was removed with a corresponding adjustment to accumulated
\ndeficit. A $48,124<\/span> unamortized discount remained. For the year ended February 28, 2026, the Company recorded amortization expense of
\n$18,573<\/span>, with an unamortized discount of $14,502<\/span> at February 28, 2026.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

February
\n6, 2023, $400,000<\/span> loan, original issue discount of $50,000<\/span>, 61<\/span> Series F Preferred Share warrants having a relative fair value of $299,959<\/span>.
\nOn March 1, 2024, the unamortized relative fair value discount of $288,342<\/span> was removed with a corresponding adjustment to accumulated
\ndeficit. A $48,294<\/span> unamortized discount remained. For the year ended February 28, 2026, the Company recorded amortization expense of
\n$18,638<\/span>, with an unamortized <\/span>discount of $14,557<\/span> at February 28, 2026.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

April
\n5, 2023, $400,000<\/span> loan, original issue discount of $50,000<\/span>, 61<\/span> Series F Preferred Share warrants having a relative fair value of $296,245<\/span>.
\nOn March 1, 2024, the unamortized relative fair value discount of $286,821<\/span> was removed with a corresponding adjustment to accumulated
\ndeficit. A $48,409<\/span> unamortized discount remained. For the year ended February 28, 2026, the Company recorded amortization expense of
\n$18,683<\/span>, with an unamortized discount of $14,594<\/span> at February 28, 2026.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

April
\n20, 2023, $400,000 <\/span>loan, original issue discount of $50,000<\/span>, 61<\/span> Series F Preferred Share warrants having a relative fair value of $302,219<\/span>.
\nOn March 1, 2024, the unamortized relative fair value discount of $294,824<\/span> was removed with a corresponding adjustment to accumulated
\ndeficit. A $48,777<\/span> unamortized discount remained. For the year ended February 28, 2026, the Company recorded amortization expense of
\n$18,824<\/span>, with an unamortized discount of $14,711<\/span> at February 28, 2026.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

May
\n11, 2023, $400,000<\/span> loan, original issue discount of $50,000<\/span>, 61<\/span> Series F Preferred Share warrants having a relative fair value of $348,983<\/span>.
\nOn March 1, 2024, the unamortized relative fair value discount of $348,831<\/span> was removed with a corresponding adjustment to accumulated
\ndeficit. A $49,978<\/span> unamortized discount remained. For the year ended February 28, 2026, the Company recorded amortization expense of
\n$19,288<\/span>, with an unamortized discount of $15,096<\/span> at February 28, 2026.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

October
\n27 2023, $400,000<\/span> loan, original issue discount of $50,000<\/span>, 61<\/span> Series F Preferred Share warrants having a relative fair value of $261,759<\/span>.
\nOn March 1, 2024, the unamortized relative fair value discount of $254,487<\/span> was removed with six a corresponding adjustment to accumulated
\ndeficit. A $48,611<\/span> unamortized discount remained. For the year ended February 28, 2026, the Company recorded amortization expense of
\n$18,761<\/span>, with an unamortized discount of $14,657<\/span> at February 28, 2026.<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
(21)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n<\/tr>\n
(22)<\/span><\/td>\n <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(23)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(24)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(25)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(26)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(27)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(28)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(29)<\/span><\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(30)<\/span><\/td>\n<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
\n

(31)<\/span><\/p>\n

\u00a0<\/span><\/p>\n<\/td>\n

<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(32)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\n

(33)<\/span><\/p>\n<\/td>\n

 <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
(34)<\/span><\/td>\n<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

11.
\nSTOCKHOLDERS\u2019 DEFICIT<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Preferred
\nStock: The Company is authorized to issue up to 20,000,000<\/span> shares of $0.001<\/span> par value preferred stock. The board of directors is
\nauthorized to designate any series of preferred stock up to the total authorized number of shares.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nB Convertible, Redeemable Preferred Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nboard of directors has designated 5,000<\/span> shares of Series B Convertible, Redeemable Preferred Stock with a par value of $0.001<\/span> per share.
\nAs of February 28, 2026 , there are no shares of Series B Preferred Stock outstanding. The Series B Convertible Preferred Stock are redeemable
\nat $1,200<\/span> per share, rank in priority to common stock and common stock equivalents upon liquidation of the Company, have voting rights
\non a converted basis and receives quarterly dividends of 8<\/span>%. Each holder may, at any time and from time to time convert all, but not
\nless than all, of their shares of Series B Convertible, Redeemable Preferred Stock into a number of fully paid and nonassessable shares
\nof common stock determined by dividing the redemption value by the Conversion Price. The Conversion price is equal to the lower of (1)
\na fixed price equaling the closing bid price of the Common Stock on the trading day immediately preceding the date of the acquisition
\nof the shares and (2) the lowest traded price of the Common Stock during the ten (10) calendar days immediately preceding, but not including,
\nthe Conversion Date. Following an event of default,\u201d as defined in the Purchase Agreement, the Conversion price shall equal the
\nlower of: (a) the then applicable Conversion Price; or (b) a price per share equaling eighty five percent (85%) of the lowest traded
\nprice for the Company\u2019s common stock during the fifteen (15) Trading Days immediately preceding, but not including, the Conversion
\nDate<\/span>. Each share of Preferred Stock shall be entitled to receive, and the Corporation shall pay, cumulative dividends of eight percent
\n(8%) per annum, payable quarterly, beginning on the Original Issuance Date and ending on the date that such share of Preferred Share
\nhas been converted or redeemed. Dividends may be paid in cash or in shares of Preferred Stock at the discretion of the Company. Any dividends
\nthat are not paid a shall continue to accrue and shall entail a late fee, which must be paid in cash, at the rate of 14% per annum or
\nthe lesser rate permitted by applicable law which shall accrue and compound daily from the dividend payment date through and including
\nthe date of actual payment in full.<\/span> On the thirtieth day following the issue date of this Preferred Stock the Company shall have the
\nobligation to redeem one-third of the Preferred Stock outstanding for a redemption price equal to the redemption value of each such share
\nof Preferred Stock, plus any accrued but unpaid dividends, plus all other amounts due to the Holder including, but not limited to Late
\nFees, liquidated damages and the legal fees and expenses of the Holder\u2019s counsel. On the sixtieth (60th) calendar day
\nfollowing the date Preferred Stock is issued, the Corporation shall have the obligation to redeem one-half of the Preferred Stock then
\noutstanding for the redemption price. On the ninetieth (90th) calendar day following the date Preferred Stock is issued, the
\nCorporation shall have the obligation to redeem all of the Preferred Stock then outstanding for the redemption price. From the date of
\nissuance until the date no shares of Series B Preferred Stock are issued and outstanding, unless Holders of at least 75% in Stated Value
\nof the then outstanding shares of Preferred Stock shall have otherwise given prior written consent, the Corporation shall not, and shall
\nnot permit any of the Subsidiaries to, directly or indirectly: (a) other than Permitted Indebtedness, enter into, create, incur, assume,
\nguarantee or suffer to exist any indebtedness for borrowed money of any kind, including but not limited to, a guarantee, on or with respect
\nto any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom; (b) other
\nthan Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of its property
\nor assets now owned or hereafter acquired or any interest therein or any income or profits therefrom; (c) amend its charter documents,
\nincluding, without limitation, its articles of incorporation and bylaws, in any manner that materially and adversely affects any rights
\nof the Holder; (d) repay, repurchase or offer to repay, repurchase or otherwise acquire of any shares of its Common Stock, Common Stock
\nEquivalents or Junior Securities, other than as to the Conversion Shares as permitted or required under the Transaction Documents: (e)
\npay cash dividends or distributions on Junior Securities of the Corporation; f) enter into any transaction with any Affiliate of the
\nCorporation which would be required to be disclosed in any public filing with the Commission, unless such transaction is made on an arm\u2019s-length
\nbasis and expressly approved by a majority of the disinterested directors of the Corporation (even if less than a quorum otherwise required
\nfor board approval); or(g) enter into any agreement with respect to any of the foregoing.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nC Convertible, Redeemable Preferred Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nboard of directors has designated 1,000<\/span>
\nshares of Series C Convertible, Redeemable Preferred Stock with a par value of $0.001<\/span>
\nper share. As of the February 28, 2026, there are 417<\/span>
\nshares of Series C Preferred Stock outstanding. The Series C Convertible Preferred Stock are redeemable at $1,200<\/span>
\nper share, rank in priority to common stock and common stock equivalents upon liquidation of the Company, have voting rights on a
\nconverted basis and receives quarterly dividends of 12<\/span>%.
\nEach holder may, after 180 days after issuance, at any time and from time to time convert all, but not less than all, of their
\nshares of Series C Convertible, Redeemable Preferred Stock into a number of fully paid and nonassessable shares of common stock
\ndetermined by dividing the redemption value by the Conversion Price. The
\nConversion price is equal to the lower of (1) a fixed price equaling the closing bid price of the Common Stock on the trading day
\nimmediately preceding the date of the acquisition of the shares and (2) the lowest traded price of the Common Stock during the ten
\n(10) calendar days immediately preceding, but not including, the Conversion Date. Following an event of default,\u201d as defined
\nin the Purchase Agreement, the Conversion price shall equal the lower of: (a) the then applicable Conversion Price; or (b) a price
\nper share equaling ninety percent (90%) of the lowest traded price for the Company\u2019s common stock during the ten (10) Trading
\nDays immediately preceding, but not including, the Conversion Date.<\/span> Each
\nshare of Preferred Stock shall be entitled to receive, and the Corporation shall pay, cumulative dividends of twelve percent (12%)
\nper annum, payable quarterly, beginning on the Original Issuance Date and ending on the date that such share of Preferred Share has
\nbeen converted or redeemed. Dividends may be paid in cash or in shares of Preferred Stock at the discretion of the Company. Any
\ndividends that are not paid a shall continue to accrue and shall entail a late fee, which must be paid in cash, at the rate of 14%
\nper annum or the lesser rate permitted by applicable law which shall accrue and compound daily from the dividend payment date
\nthrough and including the date of actual payment in full. On the one hundred eightieth day following the issue date of this
\nPreferred Stock the Company shall have the obligation to redeem all outstanding Series Preferred Shares for one hundred nine and one
\nhalf percent (109.5%) of the stated value, plus any accrued but unpaid dividends, plus all other amounts due to the Holder pursuant
\nto the Certificate of Designation and\/or any Transaction Documents (\u201cRedemption Date\u201d). Prior to the Redemption Date,
\nthe Company at its discretion and on three (3) Trading Days\u2019 written notice, may redeem all outstanding Preferred Shares for
\none hundred nine and one half percent (109.5%) of the stated value, plus any accrued but unpaid dividends, plus all other amounts
\ndue to the Holder pursuant to the Certificate of Designation and\/or any Transaction Documents.<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

From
\nthe date of issuance until the date no shares of Series C Preferred Stock are issued and outstanding, unless Holders of at least 75%
\nin Stated Value of the then outstanding shares of Preferred Stock shall have otherwise given prior written consent, the Corporation shall
\nnot, and shall not permit any of the Subsidiaries to, directly or indirectly: (a) other than Permitted Indebtedness, enter into, create,
\nincur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any kind, including but not limited to, a guarantee,
\non or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits
\ntherefrom; (b) other than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect
\nto any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom; (c) amend
\nits charter documents, including, without limitation, its articles of incorporation and bylaws, in any manner that materially and adversely
\naffects any rights of the Holder; (d) repay, repurchase or offer to repay, repurchase or otherwise acquire of any shares of its Common
\nStock, Common Stock Equivalents or Junior Securities, other than as to the Conversion Shares as permitted or required under the Transaction
\nDocuments: (e) pay cash dividends or distributions on Junior Securities of the Corporation; f) enter into any transaction with any Affiliate
\nof the Corporation which would be required to be disclosed in any public filing with the Commission, unless such transaction is made
\non an arm\u2019s-length basis and expressly approved by a majority of the disinterested directors of the Corporation (even if less than
\na quorum otherwise required for board approval); or(g) enter into any agreement with respect to any of the foregoing.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nE Preferred Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nboard of directors has designated 4,350,000<\/span> shares of Series E Preferred Stock. As of February 28, 2026, there are 3,350,000<\/span> shares of
\nSeries E Preferred Stock outstanding. The Series E Preferred Stock ranks subordinate to the Company\u2019s common stock as to distributions
\nof assets upon liquidation, dissolution or winding up of the Corporation. The Series E preferred stock is non-redeemable, does not have
\nrights upon liquidation of the Company and does not receive dividends. The outstanding shares of Series E Preferred Stock have the right
\nto take action by written consent or vote based on the number of votes equal to twice the number of votes of all outstanding shares of
\nequity instruments with voting rights. As a result, the holder of Series E Preferred Stock has 2\/3rds of the voting power of all shareholders
\nat any time corporate action requires a vote of shareholders.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nF Convertible Preferred Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nboard of directors has designated 10,000<\/span> shares of Series F Convertible Preferred Stock with a par value of $1.00<\/span> per share. As of February
\n28, 2026 , there are 2,513<\/span> shares of Series F Convertible Preferred Stock outstanding. The Series F Convertible Preferred Stock is non-redeemable,
\ndoes not have rights upon liquidation of the Company, does not have voting rights and does not receive dividends. Each holder may, at
\nany time and from time to time convert all, but not less than all, of their shares of Series F Convertible Preferred Stock into a number
\nof fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares of common
\nstock of the Company on the date of conversion by three and 45 100ths (3.45) on a pro rata basis. So long as any shares of Series F Convertible
\nPreferred Stock are outstanding, the Company shall not, without first obtaining the approval of the majority of the holders: (a) alter
\nor change the rights, preferences or privileges of any capital stock of the Company so as to affect adversely the Series F convertible
\npreferred stock; (b) create any Senior Securities; (c) create any pari passu Securities; (d) do any act or thing not authorized or contemplated
\nby the Certificate of Designation which would result in any taxation with respect to the Series F Convertible Preferred Stock under Section
\n305 of the Internal Revenue Code of 1986, as amended, or any comparable provision of the Internal Revenue Code as hereafter from time
\nto time amended, (or otherwise suffer to exist any such taxation as a result thereof).<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nG Preferred Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nboard of directors has designated 100,000<\/span> shares of Series G Preferred Stock. As of the date of this report, there are no<\/span> shares of Series
\nG Preferred Stock outstanding. The series G shares are redeemable at $1,000<\/span> per share The Series G preferred stock does not have voting
\nrights, does not have rights upon liquidation of the Company and does not receive dividends.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Summary
\nof Preferred Stock Activity<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nC Convertible, Redeemable Preferred Stock (Temporary Equity)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nFebruary 10, 2025, in connection with a Share Purchase Agreement the Company created a new class of Series C Convertible Redeemable with
\n1,000<\/span> authorized shares.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

In
\nexchange for 306<\/span><\/span>
\nSeries C Convertible Redeemable Preferred Shares (\u201cSeries
\nC\u201d), the Company received gross proceeds of $306,000<\/span><\/span>
\nwith net proceeds of $278,580<\/span><\/span>
\nafter paying $6,000
\n<\/span><\/span>in legal fees and $21,420<\/span><\/span>
\nin broker fees both charged against paid in capital. The Company
\nmust redeem the shares at stated capital of 1,200<\/span><\/span>
\nper share and a 1.095 premium at 180 days after issuance. The
\nCompany recorded the 306<\/span><\/span>
\noutstanding shares at its redemption value of $402,084
\n<\/span><\/span>at February 28, 2025, with the offsetting adjustment
\nto paid in capital. During the year the Company issued 12<\/span><\/span>%
\nquarterly dividends in 44<\/span><\/span>
\nSeries C shares with a value of $58,100<\/span><\/span>.
\nThe Company failed to redeem the Series C shares on the August 9, 2025 redemption date and a penalty of 114<\/span><\/span>
\nSeries C shares with a value of $149,307<\/span><\/span>
\nwas recorded. In August 2025 the Company redeemed 95<\/span><\/span>
\nSeries C shares for $125,000<\/span><\/span>
\nincluding a deemed dividend of $29,871<\/span><\/span>.
\nIn September 2025 the Company failed to convert a conversion notice of 96<\/span><\/span>
\nshares. This conversion was withdrawn in December 2025
\nand a new conversion for 85<\/span><\/span>
\nSeries C shares with a value of $111,690<\/span><\/span>
\nincluding a dividend of $84,690<\/span><\/span>
\nwith a corresponding adjustment to paid in capital .In exchange
\nfor the converted Series C shares , the Company issued 1,994,464<\/span><\/span>
\ncommon shares. In January 2026, the Company failed to convert
\na conversion notice of 80<\/span><\/span>
\nshares. On March 19, 2026 the Company
\nentered into an agreement with the investor whereby the parties agreed to reduce the penalty on the September 2025 and January 2026 failed
\nconversion to 133 Series C shares at a value of $175,140 ( The penalty was reduced from 345 Series C shares to 133 Series C shares) .
\nThe parties agreed on the Series C share balance at February 28, 2026 to be 417 series C shares. In addition the parties agreed to issue
\nan additional 222 Series C shares for proceeds of $200,000 and fees of $22,000. These shares have a redemption value of $291.708. Also
\non March 19, 2026 ,the parties agreed to convert 165 Series C shares at a value of $198,000 for 13,550,625 common shares. At February
\n28, 2026 and February 28, 2025 there are 417 and 306 outstanding Series C shares<\/span><\/span>.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nF Convertible Preferred Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Each
\nholder 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
\ninto a number of fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares
\nof common stock of the Company on the date of conversion by three and 45 100ths (3.45) on a pro rata basis.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nApril 30, 2024 the Company increased authorized shares to 10,000<\/span> Series F Preferred Shares.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Series
\nF Preferred Stock Activity:<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2026 Series F shareholders there was no activity.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2025 Series F shareholders had the following activity:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n
\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\nA
\n Series F preferred shareholder exchanged 20<\/span> Series F preferred shares for a $400,000<\/span> note payable. (see Note 11). The Company record
\n an adjustment to the par value of the shares of $20<\/span>, paid -in capital for the carrying value of the shares of $65,793<\/span> with the remaining
\n amount of $334,187<\/span> a deemed dividend.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

At
\nboth February 28, 2026 and February 28, 2025 there are 2513<\/span><\/span> outstanding Series F preferred stock.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Unissued
\nSeries F Preferred Stock<\/span><\/p>\n

\u00a0<\/span><\/p>\n

At
\nboth February 28, 2026 and February 28, 2025 there remains 46<\/span><\/span> issuable Series F preferred stock at a value of $99,086<\/span><\/span>.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Summary
\nof Preferred Stock Warrant Activity<\/span><\/p>\n

\u00a0<\/span>SUMMARY OF PREFERRED STOCK WARRANT ACTIVITY<\/span><\/span><\/p>\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nNumber
\n of
Series F
Preferred
Warrants<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Weighted<\/span><\/p>\n

Average
Exercise Price<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Weighted<\/span><\/p>\n

Average
Remaining
Years<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n<\/tr>\n
Outstanding at March 1, 2025<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n939<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1.00<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n8.5<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Issued<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Exercised<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Forfeited and cancelled<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Outstanding at February 28, 2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n939<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n1.00<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n7.5<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Summary
\nof Common Stock Activity<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany increased authorized common shares from 5,000,000,000<\/span> to 6,000,000,000<\/span> on July 8, 2022, from 6,000,000,000<\/span> to 7,225,000,000<\/span> on
\nMarch 19, 2023 from 7,225,000,000<\/span> to 10,000,000,000<\/span> on August 30, 2023, from 10,000,000,000<\/span> to 12,500,000,000<\/span> on March 22, 2024., from
\n12,500,000,000<\/span> to 15,000,000,000<\/span> on October 4, 2024 from 15,000,000,000<\/span> to 20,000,000,000<\/span> on February 21, 2025, from 20,000,000,000<\/span> to
\n23,000,000,000<\/span> on July 25, 2025 and from 23,000,000,000<\/span> to 27,500,000,000<\/span> on October 15, 2025.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany decreased authorized common shares from 27,500,000,000<\/span> to 12,000,000,000<\/span> on March 19, 2026.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nFebruary 5, 2026, the holders of a majority of the voting power of the Company\u2019s outstanding voting securities executed the written
\nconsent approving a reverse stock split of the Company\u2019s issued and outstanding Common Stock at a ratio of 1-for-100. The common
\nshares have been adjusted to reflect this reverse stock split.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Summary
\nof Common Stock Activity<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended, February 28, 2026, common shareholders had the following activity:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\nthe
\n Company issued 50,403,802<\/span> common shares with gross proceeds of $5,185,344<\/span> and net proceeds of $4,801,184<\/span> after paid issuance costs
\n of $274,161<\/span>. Included in these common shares was a commitment fee of $90,000<\/span> on the issuance of 1,354,167<\/span> shares bringing total fees
\n to $364,161<\/span>. <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\nthe
\n Company issued 71,350,000<\/span> common shares in gross proceeds of $6,384,000<\/span> to repay $5,411,000<\/span> loans payable and $37,500<\/span> in accrued
\n interest with loss on settlement of $935,500<\/span> . <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\n

the
\n Company issued 1,994,464<\/span> common shares in gross proceeds of $111,690<\/span> on the conversion of
\n 85<\/span> Series C Preferred Shares. A dividend of $84,690<\/span> was recorded with a corresponding adjustment
\n to paid -in capital.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended, February 28, 2025, common shareholders had the following activity:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n
\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\nthe
\n Company issued 49,796,369<\/span> common shares with gross proceeds of $13,697,245<\/span> and net proceeds of $13,120,679<\/span> after paid issuance costs
\n of $576,565<\/span>. Included in the net proceeds are $418,669<\/span> in share proceeds receivable received after year end. Included in these common
\n shares was a commitment fee of $125,000<\/span> on the issuance of 43,859,650<\/span> shares bringing total fees to $701,565<\/span>. <\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\nthe
\n Company issued 1,940,659<\/span> common shares to repay $562,000<\/span> loans payable from two different lenders. <\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Summary
\nof Warrant and Stock Option Activity<\/span><\/p>\n

\u00a0<\/span>SUMMARY OF WARRANT AND STOCK OPTION ACTIVITY<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nNumber
\n of
Warrants<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nWeighted
\n Average
Exercise Price<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nWeighted
\n Average
Remaining Years<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Outstanding at February 29, 2024<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3,005,957<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n0.30<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1.00<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Issued<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Exercised<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Forfeited and cancelled<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(2,533,243<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(0.30<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Outstanding at February 28, 2025<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n472,714<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n0.30<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2.44<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Issued<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Exercised<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Forfeited and cancelled<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(2,714<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(0.04<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Outstanding at February 28, 2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n470,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n0.04<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1.44<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2026 warrant holders had the following activity:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n
\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\nDuring
\n the year warrants to acquire 2,714<\/span> shares expired. <\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2025 warrant holders had the following activity:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n
\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\nDuring
\n the year warrants to acquire 2,533,243<\/span> shares expired. <\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

For
\nthe years ended February 28, 2026 and February 29, 2025, the Company recorded a total of $0<\/span> and $0<\/span>, respectively on stock-based payments
\nfor warrants with a corresponding adjustment to additional paid-in capital.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

For
\nthe years ended February 28, 2026 and February 28, 2025 the Company recorded a total of $315,848<\/span> and $331,685<\/span> respectively, to stock-based
\ncompensation for options and shares with a corresponding adjustment to additional paid-in capital. In addition for both the years ended
\nFebruary 28, 2026 and February 28, 2025 the Company recorded other stock based compensation of $0<\/span><\/span> payable in Series G Preferred shares
\nwhich have not yet been issued.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Summary
\nof Common Stock Option Activity<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nApril 14, 2021, the Shareholders of Series E Preferred Stock and the Board of Directors of our Company (\u201cBoard\u201d) approved
\nand adopted the 2021 Incentive Stock Plan (the \u201c2021 Plan\u201d). On August 11, 2022 the Company amended the 2021 Plan increasing
\nthe maximum number of shares applicable to the 2021 Plan from 50,000 to 1,000,0000 On August 14, 2023 the Company further amended the
\nplan increasing the maximum shares to 2,000,000.<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\npurpose of the 2021 Plan is to promote the success of the Company by authorizing incentive awards to retain Directors, executives, selected
\nEmployees and Consultants, and reward participants for making major contributions to the success of the Company. The 2021 Plan authorizes
\nthe granting of stock options, restricted stock, restricted stock units, stock appreciation rights and stock awards. A total of two million
\n(2,000,000<\/span>) shares of common stock may be issued under the 2021 Plan. All awards under the 2021 Plan, whether vested or unvested, are
\nsubject to the terms of any recoupment, clawback or similar policy of the Company in effect from time to time, as well as any similar
\nprovisions of applicable law, which could in certain circumstances require repayment or forfeiture of awards or any shares of stock or
\nother cash or property received with respect to the awards, including any value received from a disposition of the shares acquired upon
\npayment of the awards. The 2021 Plan will be administered by the Board or any Committee authorized by the Board, if applicable, which
\nwill have the sole authority to, among other things: construe and interpret the 2021 Plan; make rules and regulations relating to the
\nadministration of the 2021 Plan; select participants; and establish the terms and conditions of awards, all in accordance with the terms
\nof the 2021 Plan. The 2021 Plan will remain in effect until April 14, 2031, unless sooner terminated by the Board. Termination will not
\naffect awards then outstanding.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2026 the Company had the following common stock option activity:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n
\u2014<\/span><\/td>\nOn
\n the original 2021 plan, options to purchase 33,000<\/span> shares were forfeited due to employee terminations. On the 2023 plan (see below)
\n 57,160<\/span> options to purchase shares were forfeited due to employee terminations.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

During
\nthe year ended February 28, 2025 the Company had the following common stock option activity:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n
\u2014<\/span><\/td>\nOn
\n the original 2021 plan, options to purchase 24,750<\/span> shares were forfeited due to employee terminations. On the 2023 plan (see below)
\n 39,639<\/span> options to purchase shares were forfeited due to employee terminations.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Summary
\nof Common Stock Option Activity<\/span><\/p>\n

\u00a0<\/span>SUMMARY OF COMMON STOCK OPTION ACTIVITY<\/span><\/span><\/p>\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nNumber
\n of
Options<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Weighted<\/span><\/p>\n

Average
Exercise Price<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nWeighted
\n Average
Remaining
Years<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Outstanding at March 1, 2024<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,886,670<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n2.00<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4.10<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Issued<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Exercised<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Forfeited, extinguished
\n and cancelled<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(64,389<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n2.00<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(3.50<\/span><\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Outstanding at February 28, 2025<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,822,281<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n2.00<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3.10<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nNumber
\n of
Options<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

Weighted<\/span><\/p>\n

Average
Exercise Price<\/span><\/p>\n<\/td>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nWeighted
\n Average
Remaining
Years<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Outstanding at March 1, 2025<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,822,281<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n2.00<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n3.10<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Issued<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Exercised<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Forfeited, extinguished
\n and cancelled<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(90,160<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n2.00<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(2.60<\/span><\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Outstanding at February 28, 2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,732,121<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n2.00<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2.10<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

12.
\n COMMITMENTS AND CONTINGENCIES<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Litigation<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Occasionally,
\nthe Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision
\nfor a liability when it believes that is both probable that a liability has been incurred, and the amount can be reasonably estimated.
\nIf these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company\u2019s condensed
\nconsolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series
\nof complex judgments about future events and can rely heavily on estimates and assumptions.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nrelated legal costs are expensed as incurred.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\n INTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Operating
\nLease<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nMarch 10, 2021, the Company entered into a 10 year lease agreement for a manufacturing facility at 10800 Galaxie Avenue, Ferndale, Michigan,
\n48220, commencing on May 1, 2021 through to April 30, 2031 with a minimum base rent of $15,880<\/span> per month. <\/span>The base rent increase by 3%
\nper annum commencing May 1, 2024. The Company paid a security deposit of $15,880<\/span>.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On
\nFebruary 5, 2024, the Company entered into a 3-year lease agreement for a vehicle commencing February 5, 2024 through to February 5,
\n2027 with a minimum base rent of $1,223<\/span> per month.<\/span> The Company paid a down payment of $9,357<\/span>.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

The
\nCompany\u2019s leases are accounted for as operating leases. The weighted average discount rate used was 10<\/span>% and the weighted average
\nremaining lease term at February 28, 2026 was 4.93<\/span> years. Rent expense and operating lease cost are recorded over the lease terms on
\na straight-line basis. Rent expense and operating lease cost was $251,883<\/span> and $240,731<\/span> for the years ended February 28, 2026 and February
\n28, 2025, respectively.<\/span><\/p>\n

\u00a0<\/span>SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITIES<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Maturity of
\n Lease Liabilities<\/span><\/td>\n		\u00a0<\/span><\/td>\nOperating
Leases<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
February 28, 2027<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n243,690<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
February 28, 2028<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n227,383<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
February 29, 2029<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n207,558<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
February 28, 2030<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n207,558<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
February 28, 2031<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n207,558<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
February 28, 2032 and after<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n34,593<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total lease payments<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,128,340<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Less: Interest<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(207,956<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Present value of lease liabilities<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n920,384<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

13.
\nLOSS PER SHARE<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nnet loss per common share amounts were determined as follows:<\/span><\/p>\n

\u00a0<\/span>SCHEDULE OF NET INCOME (LOSS) PER COMMON SHARE<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFor
\n the Year Ended<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary 28,<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary 28,<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Numerator:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net loss available to common shareholders<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(14,510,251<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(18,935,592<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Effect of common stock equivalents<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Less redemption dividend
\n to Series F and Series B preferred shareholders<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(114,561<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(423,476<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Net loss adjusted for common stock equivalents<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(14,624,812<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(19,358,968<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Denominator:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Weighted average shares – basic<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n202,908,578<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n116,476,733<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net loss per share \u2013 basic<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(0.07<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(0.16<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Denominator:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Weighted average shares \u2013 diluted<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n202,908,578<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n116,476,733<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net loss per share \u2013 diluted<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(0.07<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(0.16<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\nanti-dilutive shares of common stock equivalents for the years ended February 28, 2026 and February 28, 2025 were as follows:<\/span><\/p>\n

\u00a0<\/span>SCHEDULE OF ANTI-DILUTIVE SHARES OF COMMON STOCK EQUIVALENTS<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFor
\n the Year Ended<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary 28,<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary 28,<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2026<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2025<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Convertible Series F Preferred
\n Shares<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n924,161,175<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n497,229,655<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Convertible Series C Preferred Shares<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n22,830,847<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,718,308<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Convertible and exchangeable debt<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n1,095,380,027<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Stock options and warrants<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,202,121<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,294,996<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,044,574,170<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n501,242,959<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

14.
\nINCOME TAXES<\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany has adopted ASC 740-10, \u201cIncome Taxes\u201d, which requires the use of the liability method in the computation
\nof income tax expense and the current and deferred income taxes payable (deferred tax liability) or benefit (deferred tax asset). Valuation
\nallowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nincome tax expense (benefit) consisted of the following for the fiscal years ended February 28, 2026 and ended February 28, 2025:<\/span><\/p>\n

\u00a0<\/span>SCHEDULE OF INCOME TAX EXPENSES (BENEFIT)<\/span><\/span><\/p>\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Total current<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total deferred<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Deferred
\nincome taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial
\nreporting purposes and the amounts used for income tax purposes.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing is a reconciliation of the expected statutory federal income tax provision to the actual income tax benefit for the fiscal
\nyears ended February 28, 2026 and February 28, 2025:<\/span><\/p>\n

\u00a0<\/span>SCHEDULE OF EXPECTED STATUTORY FEDERAL INCOME TAX PROVISION<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Federal statutory rate<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(2,900,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
State income tax benefit, net of federal benefit<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(660,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Non deductible interest<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n500,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Non deductible stock based compensation<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n334,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Change in valuation allowance<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n2,726,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Federal statutory rate<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n(4,000,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
State income tax benefit, net of federal benefit<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(900,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Non deductible interest<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n500,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Non deductible stock based compensation<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n322,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Change in valuation allowance<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n4,078,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

For
\nthe years ended February 28, 2026 and February 28, 2025, the expected tax benefit, temporary timing differences and long-term timing
\ndifferences are calculated at the 21<\/span><\/span>% statutory rate.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Significant
\ncomponents of the Company\u2019s deferred tax assets and liabilities were as follows for the fiscal years February 28, 2026 and February
\n28, 2025:<\/span><\/p>\n

\u00a0<\/span>SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES<\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2026<\/span><\/td>\n		\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nFebruary
\n 28,
2025<\/span><\/td>\n		\u00a0<\/span><\/td>\n<\/tr>\n
Deferred tax assets:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net operating loss carryforwards<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n22,726,000<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n20,000,000<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Deferred tax liabilities:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Depreciation<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Deferred revenue<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Total deferred tax liabilities<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Net deferred tax assets:<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
Less valuation allowance<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(22,726,000<\/span><\/td>\n)<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(20,000,000<\/span><\/td>\n)<\/span><\/td>\n<\/tr>\n
Net deferred tax
\n assets (liabilities)<\/span><\/td>\n		\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n$<\/span><\/td>\n\u2014<\/span><\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

The
\nCompany has incurred losses since inception, therefore, the Company has no federal tax liability. Additionally there are limitations
\nimposed by certain transactions which are deemed to be ownership changes which occurred in the Company on August 28, 2017. The net deferred
\ntax asset generated by the loss carryforward has been fully reserved. The cumulative net operating loss carryforward was approximately
\n$90,000,000<\/span> at February 28, 2026 and $76,973,800<\/span> at February 28, 2025, that is available for carryforward for federal income tax purposes
\nand begin to expire in 2030<\/span>.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Although
\nthe Company has tax loss carry-forwards, there is uncertainty as to utilization prior to their expiration. Accordingly, the future income
\ntax asset amounts have been fully reserved by a valuation allowance.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany has maintained a full valuation allowance against its deferred tax assets at February 28, 2026 and February 28, 2025. A valuation
\nallowance is required to be recorded when it is more likely than not that some portion or all of the net deferred tax assets will not
\nbe realized. Since the Company cannot be assured of realizing the net deferred tax asset, a full valuation allowance has been provided.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany does not have any uncertain tax positions at February 28, 2026 and February 28, 2025 that would affect its effective tax rate.
\nThe Company does not anticipate a significant change in the amount of unrecognized tax benefits over the next twelve months. Because
\nthe Company is in a loss carryforward position, the Company is generally subject to US federal and state income tax examinations by tax
\nauthorities for all years for which a loss carryforward is available. If and when applicable, the Company will recognize interest and
\npenalties as part of income tax expense.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nCompany\u2019s tax returns for the years ended February 28, 2025 and February 29, 2024, and February 28, 2023 are open for examination
\nunder Federal statute of limitations.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

ARTIFICIAL
\nINTELLIGENCE TECHNOLOGY SOLUTIONS INC.<\/span><\/p>\n

NOTES
\nTO THE CONSOLIDATED FINANCIAL STATEMENTS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

15.
\nSUBSEQUENT EVENTS <\/span><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Subsequent
\nto February 28, 2026 through to filing date,<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u2014
\nthe Company issued 36,786,492<\/span> common shares pursuant to a share purchase agreement for gross proceeds of $900,871<\/span>, issuance costs of
\n$77,391<\/span> and cash proceeds of $823,480<\/span>.<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\nthe
\n Company issued 39,000,000<\/span> shares to a lender to settle $745,900<\/span>, pursuant to exchange agreements
\n with the lender.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\nthe
\n Series C Preferred Shareholder converted 298<\/span> Series C preferred shares at a value of $391,572<\/span>
\n for 24,473,250<\/span> common shares<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\non
\n May 4 2026 the Company entered into an Equity Financing Agreement whereby an investor shall
\n invest up to $10,000,000 over the course of thirty-six (36) month at a purchase price of
\n eighty-seven percent (87%) of the average of the three lowest bid trade price in the 10 day
\n preceding period. In conjunction with the above agreement, the Company entered into a Registration
\n Rights Agreement.<\/span><\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\non
\n March 12, 2026 the Company issued a promissory note to a lender for $170,000<\/span> with cash proceeds
\n of $150,000<\/span> and an original issue discount of $20,000<\/span>. The loan bears interest at 15<\/span>% compounding
\n annually, matures in 1<\/span> year and has a general security charging all of the Company\u2019s
\n present and after-acquired property.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\non
\n March 19, 2026 the Company entered into a memorandum of understanding whereby the outstanding
\n Series C Preferred Shares were adjusted to 417<\/span> Series C Preferred Shares. The memorandum
\n reduced penalties that were added after the Company refused conversions . The reduction amounted
\n to 212.16<\/span> Series C Preferred Shares or a stated value of $254,492<\/span>. In exchange, the Company
\n agreed to proceed with the present conversion of 165<\/span> Series C Preferred shares for 13,550,625<\/span>
\n common shares and issue 222<\/span> new Series C shares with a redemption value of $291,708<\/span> in exchange
\n for net proceeds of $200,000<\/span>.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\non
\n March 25, 2026, the Company issued a convertible, redeemable note to a lender for $110,000<\/span>
\n with cash proceeds of $95,000<\/span>, an original issue discount of $10,000<\/span>, and $5,000<\/span> for fees.
\n The loan bears interest at 12<\/span>%, the note is redeemable by the Company at any time subject
\n to a premium ranging from 110<\/span>% to 140<\/span>% if redeemed within the first 180<\/span> days of the note
\n . The note matures in 1<\/span> year and converts after 180 days at 80<\/span>% of the lowest trading price
\n 15 trading days prior to the conversion date.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\non
\n March 25, 2026, the Company issued a convertible, redeemable note to a lender for $630,000<\/span>
\n with cash proceeds of $595,000<\/span>, an original issue discount of $30,000<\/span>, and $5,000<\/span> for fees.
\n The loan bears interest at 12<\/span>%, the note is redeemable by the Company at any time subject
\n to a premium ranging from 110<\/span>% to 140<\/span>% if redeemed within the first 180<\/span> days of the note.
\n The note matures in 1 <\/span>year and converts after 180 days at 20<\/span>% of the lowest trading price
\n 15 trading days prior to the conversion date. A refundable commitment fee of 14.1<\/span> million
\n common shares was issued, but is returnable if the loan plus accrued interest is paid back
\n by May 5, 2026. On May 5, 2026, the Company repaid in full, principal and interest of $638,492
\n <\/span>and the 14.1<\/span> million commitment fee shares were returned.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\non
\n April 20, 2026, the Company issued a convertible note to a lender for $277,778<\/span> with cash
\n proceeds of $250,000<\/span>, an original issue discount of $27,778<\/span>, and $5,000<\/span> for fees. The loan
\n bears interest at 12<\/span>%, and the note matures in 1<\/span> year. If the loan is prepaid, one year\u2019s
\n full interest of $ 33,333<\/span> is due. The note converts at any time at 75<\/span>% of the lowest closing
\n trading price 10 trading days prior to the conversion date. Interest is payable in common
\n shares at either the redemption date or maturity. A commitment fee of 5<\/span>million common shares
\n at a fair value of $164,500<\/span> was issued.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\non
\n April 20, 2026, the Company issued a convertible, redeemable note to a lender for $257,000<\/span>
\n with cash proceeds of $250,000<\/span> and $7,000<\/span> for fees. The loan bears interest at 10<\/span>%, the note
\n is redeemable by the Company at any time subject to a premium ranging from 120<\/span>% to 125<\/span>% if
\n redeemed within the first 180<\/span> days of the note. The note matures on January 15, 2027<\/span>, and
\n converts after 180<\/span> days at 65<\/span>% of the lowest trading price 10 trading days prior to the conversion
\n date.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\non
\n May 1, 2026, the Company issued a convertible, redeemable note to a lender for $157,000<\/span> with
\n cash proceeds of $150,000<\/span> and $7,000<\/span> for fees. The loan bears interest at 10<\/span>%, the note is
\n redeemable by the Company at any time subject to a premium ranging from 120<\/span>% to 125<\/span>% if redeemed
\n within the first 180<\/span> days of the note. The note matures on January 15, 2027<\/span>, and converts
\n after 180<\/span> days at 65<\/span>% of the lowest trading price 10 trading days prior to the conversion
\n date.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n\n\n
\n\u2014<\/span><\/td>\non
\n May 4, 2026, the Company issued a convertible, redeemable note to a lender for $700,000<\/span> with
\n cash proceeds of $630,000<\/span> and an original issue discount of $70,000<\/span>. The loan bears interest
\n at 12<\/span>%, and the note matures in 1<\/span> year. The note must be redeemed in monthly instalments
\n of 10<\/span>% of outstanding principal plus accrued interest commencing 60 days after issuance.
\n The note is convertible after 180<\/span> days at 65<\/span>% of the lowest closing trading price 10 trading
\n days prior to the conversion date. A commitment fee of 1.25<\/span> million common shares at a fair
\n value of $28,750<\/span> was issued.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u2014<\/span><\/td>\non
\n May 29, 2026 the Company issued a promissory note to a lender for $225,000<\/span> with cash proceeds
\n of $200,000<\/span> and an original issue discount of $25,000<\/span>. The loan bears interest at 15<\/span>% compounding
\n annually, matures in 1 <\/span>year and has a general security charging all of the Company\u2019s
\n present and after-acquired property.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n\n\n
\n\u2014<\/span><\/td>\non
\n June 3, 2026, the Company issued a convertible, redeemable note to a lender for $230,000<\/span>
\n with cash proceeds of $200,000<\/span> an original issue discount of $23,000<\/span> and $7,000<\/span> for fees.
\n The loan bears interest at 6<\/span>%, the note is redeemable by the Company at any time subject
\n to a premium ranging from 105<\/span>% to 140<\/span>% if redeemed within the first 180<\/span> days of the note.
\n The note matures on June 3, 2027<\/span>, and converts after 180<\/span> days at 65<\/span>% of the lowest trading
\n price 20 trading days prior to the conversion date, including the conversion date.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

PROSPECTUS<\/p>\n

\u00a0<\/p>\n

Up to 43,213,508<\/span>
\nShares of Common Stock<\/p>\n

\u00a0<\/p>\n

June 15, 2026<\/p>\n

\u00a0<\/p>\n

– Prospectus Cover Page –<\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

PART
\nII<\/span><\/p>\n

\u00a0<\/span><\/p>\n

INFORMATION
\nNOT REQUIRED IN THE PROSPECTUS<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Item
\n13. Other Expenses of Issuance and Distribution<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nfollowing table sets forth the estimated costs and expenses to be incurred in connection with the issuance and distribution of the securities
\nregistered under this Registration Statement. All amounts are estimates except the SEC registration fee.<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n
Accounting fees and expenses<\/td>\n$<\/td>\n\n

10,000<\/p>\n<\/td>\n

\u00a0<\/td>\n<\/tr>\n
Total<\/td>\n$<\/td>\n\n

10,000<\/p>\n<\/td>\n

\u00a0<\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

We
\nare paying all expenses of the offering listed above. No portion of these expenses will be borne by the Selling Stockholder. The Selling
\nStockholder, however, will pay any other expenses incurred in selling their common stock, including any brokerage commissions or costs
\nof sale.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Item
\n14. Indemnification of Directors and Officers<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Our
\nBylaws provide that the Company shall indemnify its directors and officers from and against any liability arising out of their service
\nas a director or officer of the Corporation or any subsidiary or affiliate of which they serve as an officer or director at the request
\nof the Corporation to the fullest extent not prohibited by NRS Chapter 78. The effect of this provision of our bylaws is to eliminate
\nour right and our stockholders (through stockholders\u2019 derivative suits on behalf of our company) to recover damages against a director
\nor officer for breach of the fiduciary duty of care as a director or officer (including breaches resulting from negligent or grossly
\nnegligent behavior), except under certain situations defined by statute. We believe that the indemnification provisions in our bylaws
\nare necessary to attract and retain qualified persons as directors and officers.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

As
\nfar<\/span> as indemnification for liabilities arising under
\nthe Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions,
\nor otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed
\nin the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other
\nthan the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the
\nsuccessful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with
\nthe securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling
\nprecedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as
\nexpressed in the Securities Act and will be governed by the final adjudication of such issue.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Item
\n15. Recent Sales of Unregistered Securities<\/span><\/p>\n

\u00a0<\/span><\/p>\n

None.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Item
\n16. Exhibits and Financial Statements<\/span><\/p>\n

\u00a0<\/span><\/p>\n

(a)(1)
\nFinancial Statements<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nconsolidated financial statements and Report of Independent Registered Public Accounting Firm are listed in the Index to Financial Statements
\nand Financial Statement Schedules on page F-1 and included on pages F-2 through F-65.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

2)
\nFinancial Statement Schedules<\/span><\/p>\n

\u00a0<\/span><\/p>\n

All
\nschedules for which provision is made in the applicable accounting regulations of the SEC are either not required under the related instructions,
\nare not applicable (and therefore have been omitted), or the required disclosures are contained in the financial statements included
\nherein.<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
Exhibit
\n #<\/span><\/td>\n		\u00a0<\/span><\/td>\nDescription<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
3.1<\/span><\/td>\n\u00a0<\/span><\/td>\nArticles of Incorporation filed with Nevada Secretary of State on 9\/8\/2014 (previously filed as Exhibit 3.1 to the Registrant\u2019s Transition Report on Form 10-KT filed on 3\/12\/2018.<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
3.2<\/span><\/td>\n\u00a0<\/span><\/td>\nAmended Bylaws (previously filed as Exhibit 4.1 on Form S-3 on 9\/2\/2021 and incorporated by reference)<\/span><\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

\u00a0<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
4.3<\/span><\/td>\n\u00a0<\/span><\/td>\nAmendment to Certificate of Designation of Series E Convertible Preferred Stock (previously filed as Exhibit 3.5 to Registrant\u2019s Transition Report on Form 10-KT filed on 3\/12\/2018 and incorporated by reference)<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
4.4<\/span><\/td>\n\u00a0<\/span><\/td>\nCertificate of Designation of Series F Convertible Preferred Stock (previously filed as exhibit 3.4 to the Registrant\u2019s Transition Report on Form 10-KT filed on 3\/12\/2018 and incorporated by reference)<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
4.5<\/span><\/td>\n\u00a0<\/span><\/td>\nAmendment No. 2 to Certificate of Designation of Series F Convertible Preferred Stock (previously filed as Exhibit 10.1 of Registrant\u2019s Form 8-K filed on 8\/24\/2021 and incorporated by reference)<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
4.6<\/span><\/td>\n\u00a0<\/span><\/td>\nCertificate of Designation of Series G Preferred Stock (previously filed as Exhibit 3.4 to the Registrant\u2019s Transition Report on Form 10-KT on 3\/12\/2018 and incorporated by reference)<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
5.1<\/span><\/td>\n\u00a0<\/span><\/td>\nOpinion of Frederick M. Lehrer, P. A. *<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
10.1<\/span><\/td>\n\u00a0<\/span><\/td>\nEquity Financing Agreement (previously filed as Exhibit 10.1 to the Registrant\u2019s Form S-1 dated March 31, 2023)<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
10.2<\/span><\/td>\n\u00a0<\/span><\/td>\nRegistration Rights Agreement (previously filed as Exhibit 10.2 to the Registrant\u2019s Form S-1 dated March 31, 2023)<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
10.3<\/span><\/td>\n\u00a0<\/span><\/td>\nPlacement Agent Agreement with Icon Capital Group (previously filed as Exhibit 10.3 to the Registrant\u2019s Form S-1 dated March 31, 2023)<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
10.4<\/span><\/td>\n\u00a0<\/span><\/td>\nSeptember 24, 2023 Finder\u2019s Fee Agreement with JH Darbie & Co. (previously filed as Exhibit 10.4 to the Registrant\u2019s Form S-1 dated September 29, 2023)<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
10.5<\/span><\/td>\n\u00a0<\/span><\/td>\nApril
\n 29, 2024 Securities Purchase Agreement with GHS (previously filed as Exhibit 10.5 to the Registrant\u2019s Form S-1A dated
\n May 9, 2024)<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
10.6<\/span><\/td>\n\u00a0<\/span><\/td>\nMay
\n 27, 2025 Equity Financing Agreement with GHS (previously filed as Exhibit 10.6 to the Registrant\u2019s Post-Effective Form
\n S-1\/Amendment 2 dated June 6, 2025)<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
10.7<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/p>\n

May
\n 27, 2025 Registration Rights Agreement with GHS (previously filed as Exhibit 10.7
\n to the Registrant\u2019s Post-Effective Form S-1\/Amendment 2 dated June 6, 2025)<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
10.8<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

June
\n 11, 2025 Equity Financing Agreement with GHS (previously filed as Exhibit 10.1 on
\n Form 8-K dated June 11, 2025)<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
10.9<\/span><\/td>\n\u00a0<\/span><\/td>\nJune
\n 11, 2025 Registration Rights Agreement with GHS (previously filed as Exhibit 10.2 on Form 8-K dated June 11, 2025)<\/span> <\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
10.10<\/td>\n\u00a0<\/td>\nJune 16, 2025 Equity Financing Agreement with AIV Investments LLC (previously filed as Exhibit 10.1 on Form 8-K dated June 17, 2025)<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
10.11<\/td>\n\u00a0<\/td>\nJune
\n 16, 2025 Registration Rights Agreement with AIV (previously filed as Exhibit 10.2 on Form 8-K dated June 17, 2025)<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
10.12<\/span><\/td>\n\u00a0<\/span><\/td>\n\n

June 16, 2025 Termination Agreement with GHS Investments, LLC (previously filed as Exhibit 10.3 on Form 8-K dated June 17, 2025)<\/span> <\/span><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
10.13<\/td>\n\u00a0<\/td>\n\n

Agreement with Craft Capital Management LLC (previously filed as Exhibit 10.4 on Form 8-K dated June 17, 2025)<\/span><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
10.14<\/td>\n\u00a0<\/td>\n\n

September 19, 2024 Purchase Agreement with AIV Investments, LLC*<\/span><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
10.15<\/td>\n\u00a0<\/td>\nAugust 7, 2025 Resolution Agreement with AIV Investments, LLC*<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
23.1<\/span><\/td>\n\u00a0<\/span><\/td>\nConsent of Frederick M. Lehrer, P. A. (included in Exhibit 5.1) *<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
23.2<\/span><\/td>\n\u00a0<\/span><\/td>\nConsent of L J Soldinger Associates, LLC, Independent Registered Public Accounting Firm *<\/span><\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
107<\/td>\n\u00a0<\/td>\nCalculation of Filing Fee Table**<\/span><\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
101.INS<\/span><\/td>\n\u00a0<\/span><\/td>\nInline XBRL Instance Document \u2013 the instance
\n document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. *<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
101.SCH<\/span><\/td>\n\u00a0<\/span><\/td>\nInline XBRL Taxonomy Extension Schema Document *<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
101.CAL<\/span><\/td>\n\u00a0<\/span><\/td>\nInline XBRL Taxonomy Extension Calculation Linkbase
\n Document *<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
101.DEF<\/span><\/td>\n\u00a0<\/span><\/td>\nInline XBRL Taxonomy Extension Definition Linkbase
\n Document *<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
101.LAB<\/span><\/td>\n\u00a0<\/span><\/td>\nInline XBRL Taxonomy Extension Label Linkbase Document
\n *<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
101.PRE<\/span><\/td>\n\u00a0<\/span><\/td>\nInline XBRL Taxonomy Extension Presentation Linkbase
\n Document *<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
104<\/span><\/td>\n\u00a0<\/span><\/td>\nCover Page Interactive Data File (formatted as Inline
\n XBRL and contained in Exhibit 101) *<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

*
\nFiled or furnished herewith<\/span><\/p>\n

** Previously filed<\/p>\n

\u00a0<\/p>\n

Item
\n16. <\/span>Undertakings.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nundersigned registrant hereby undertakes<\/span><\/p>\n

\u00a0<\/span><\/p>\n

1.
\nTo file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n
\u00a0<\/span><\/td>\ni.<\/span><\/td>\nTo include any prospectus
\n required by section 10(a)(3) of the Securities Act of 1933;<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/p>\n

\u00a0<\/p>\n\n\n\n\n
\u00a0<\/span><\/td>\nii.<\/span><\/td>\nTo reflect in the prospectus
\n any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof)
\n which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement.
\n Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
\n offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering
\n range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes
\n in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the \u201cCalculation
\n of Registration Fee\u201d table in the effective registration statement;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\niii.<\/span><\/td>\nTo include any material
\n information with respect to the plan of distribution not previously disclosed in the registration statement or any material change
\n to such information in the registration statement;<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

2.
\nThat, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed
\nto be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall
\nbe deemed to be the initial bona fide offering thereof.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

3.
\nTo remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
\ntermination of the offering.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

4.
\nThat, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution
\nof the securities:<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The
\nundersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration
\nstatement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold
\nto such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will
\nbe considered to offer or sell such securities to such purchaser:<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\ni.<\/span><\/td>\nAny preliminary prospectus
\n or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\nii.<\/span><\/td>\nAny free writing prospectus
\n relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\niii.<\/span><\/td>\nThe portion of any other
\n free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities
\n provided by or on behalf of the undersigned registrant; and<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\niv.<\/span><\/td>\nAny other communication
\n that is an offer in the offering made by the undersigned registrant to the purchaser.<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

5.
\nThat, for the purpose of determining liability under the Securities Act of 1933 to any purchaser: Each Prospectus filed pursuant to Rule
\n424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other
\nthan Prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the
\ndate it is first used after effectiveness. Provided, however, that no statement made in a registration statement or Prospectus that is
\npart of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement
\nor Prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first
\nuse, supersede or modify any statement that was made in the registration statement or Prospectus that was part of the registration statement
\nor made in any such document immediately prior to such date of first use.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

As
\nfar<\/span> as indemnification for liabilities arising under
\nthe Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions,
\nthe registrant has been advised that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities
\nAct and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment
\nby us of expenses incurred or paid by a director, officer or controlling person of the corporation in the successful defense of any action,
\nsuit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the
\nregistrant will, unless in the opinion of its counsel the matter has been settled by a controlling precedent, submit to a court of appropriate
\njurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act, and will
\nbe governed by the final adjudication of such issue.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

SIGNATURES<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Pursuant to the requirements
\nof the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned,
\nthereunto duly authorized in Ferndale, Michigan on June 9, 2026.<\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n
\u00a0<\/span><\/td>\nArtificial Intelligence Technology Solutions,
\n Inc.<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\nBy:<\/span><\/td>\n\/s\/ Steven
\n Reinharz<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nSteven Reinharz<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\nChief Executive Officer, Director (Principal Executive
\n Officer)<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

Pursuant
\nto the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities
\nand on the dates stated.<\/span><\/p>\n

\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n\n
Signature<\/span><\/td>\n\u00a0<\/span><\/td>\nTitle<\/span><\/td>\n\u00a0<\/span><\/td>\nDate<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\/s\/ Steven
\n Reinharz<\/span><\/td>\n		\u00a0<\/span><\/td>\nChief Executive Officer\/Director<\/span><\/td>\n\u00a0<\/span><\/td>\nJune 15, 2026<\/td>\n<\/tr>\n
Steven Reinharz<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n
\/s\/ Anthony
\n Brenz <\/span><\/td>\n		\u00a0<\/span><\/td>\nChief Financial Officer<\/span><\/td>\n\u00a0<\/span><\/td>\nJune
\n 15, 2026<\/span><\/td>\n<\/tr>\n
Anthony Brenz<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n<\/tr>\n<\/table>\n

\u00a0<\/span><\/p>\n

[\/gpt3]
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