AITX Artificial Intelligence Technology Solutions Inc (PK)

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


	November 30, 2023			February 28, 2023^*
ASSETS
Current assets:
Cash	$	97,478		$	939,759
Accounts receivable, net		505,438			265,024
Device parts inventory, net		2,220,159			1,637,899
Prepaid expenses and deposits		691,240			596,310
Total current assets		3,514,315			3,438,992
Operating lease asset		1,115,447			1,208,440
Revenue earning devices, net of accumulated depreciation of $1,209,664 and $779,839, respectively		2,111,896			1,235,219
Fixed assets, net of accumulated depreciation of $326,921 and $182,002, respectively		300,300			315,888
Trademarks		27,080			27,080
Investment at cost		50,000			50,000
Security deposit		17,380			21,239
Total assets	$	7,136,418		$	6,296,858
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued expenses	$	1,539,601		$	1,343,379
Advances payable- related party		1,594			1,594
Customer deposits		78,467			9,900
Current operating lease liability		229,016			248,670
Current portion of deferred variable payment obligation		764,702			542,177
Loan payable - related party		299,286			206,516
Incentive compensation plan payable		1,166,000			979,000
Current portion of loans payable, net of discount of $1,129,801 and $1,651,597		8,349,678			9,918,389
Vehicle loan - current portion		38,522			38,522
Current portion of accrued interest payable		3,992,259			2,761,446
Total current liabilities		16,459,125			16,049,593
Non-current operating lease liability		881,816			950,541
Loans payable, net of discount of $4,305,396 and $4,130,291, respectively		18,688,471			15,554,069
Deferred variable payment obligation		2,525,000			2,525,000
Accrued interest payable		4,774,660			3,060,656
Total liabilities		43,329,072			38,139,859

Commitments and Contingencies
Stockholders' deficit:
Preferred Stock, undesignated; 15,545,650 shares authorized; no shares issued and outstanding at November 30, 2023 and February 28, 2023, respectively		—			—
Series G Convertible Preferred Stock. $0.001 par value; 100,000 shares authorized, no shares issued and outstanding at November 30, 2023 and February 28, 2023, respectively		—			—
Series E Preferred Stock, $0.001 par value; 4,350,000 shares authorized; 3,350,000 and 3,350,000 shares issued and outstanding, respectively		3,350			3,350
Series F Convertible Preferred Stock, $1.00 par value; 4,350 shares authorized; 2,533 and 2,533 shares issued and outstanding, respectively		2,533			2,533
Common Stock, $0.00001 par value; 10,000,000,000 shares authorized 7,715,143,227 and 5,848,741,599 shares issued, issuable and outstanding, respectively		77,152			58,489
Additional paid-in capital		89,160,341			80,247,252
Preferred stock to be issued		99,086			99,086
Accumulated deficit		(125,535,116	)		(112,253,711	)
Total stockholders' deficit		(36,192,654	)		(31,843,001	)
Total liabilities and stockholders' deficit	$	7,136,418		$	6,296,858

*	Derived from audited information

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


	Three Months Ended November 30, 2023			Three Months Ended November 30, 2022			Nine Months Ended November 30, 2023			Nine Months Ended November 30, 2022

Revenues	$	596,980		$	402,399		$	1,368,551		$	1,055,040

Cost of Goods Sold		135,914			125,960			316,439			453,898

Gross Profit		461,066			276,439			1,052,112			601,142

Operating expenses:
Research and development (Note 10)		557,126			813,313			2,243,431			2,800,834
General and administrative		2,009,047			2,123,768			6,423,951			6,762,602
Depreciation and amortization		215,763			92,855			574,746			332,643
Operating lease cost and rent		64,081			61,005			189,164			194,653
Total operating expenses		2,846,017			3,090,941			9,431,292			10,090,732

Loss from operations		(2,384,951	)		(2,814,502	)		(8,379,180	)		(9,489,590	)

Other income (expense), net:
Change in fair value of derivative liabilities		—			—			—			3,595
Interest expense		(1,581,533	)		(1,271,158	)		(4,940,965	)		(3,448,208	)
Gain (loss) on settlement of debt		—			—			38,740			3,992
Total other income (expense), net		(1,581,533	)		(1,271,158	)		(4,902,225	)		(3,440,621	)

Net Loss	$	(3,966,484	)	$	(4,085,660	)	$	(13,281,405	)	$	(12,930,211	)

Net income (loss) per share - basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Net income ( loss) per share - diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Weighted average common share outstanding - basic		7,294,775,879			5,140,405,652			6,606,988,956			4,969,080,716

Weighted average common share outstanding - diluted		7,294,775,879			5,140,405,652			6,606,988,956			4,969,080,716

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ DEFICIT

(Unaudited)


	Series E			Series F								Additional						Total
	Preferred Stock			Preferred Stock			Common Stock					Paid-In			Accumulated			Stockholders’
	Shares	Amount		Shares	Amount		Shares		Amount			Capital			Deficit			Deficit
Balance at February 28, 2022	3,350,000	$	3,350	2,532	$	101,618	4,735,210,360		$	47,353		$	73,015,576		$	(94,144,254	)	$	(20,976,357	)
Issuance of shares, net of $117,157 issuance costs	—		—	—		—	133,881,576			1,339			1,643,883			—			1,645,222
Rounding	—		—	—		—	—			—			(1	)		—			(1	)
Net income	—		—	—		—	—			—			—			(4,671,686	)		(4,671,686	)
Balance at May 31, 2022	3,350,000	$	3,350	2,532	$	101,618	4,869,091,936		$	48,692		$	74,659,458		$	(98,815,940	)	$	(24,002,822	)
Issuance of shares, net of $95,293 issuance costs	—		—	—		—	191,691,135			1,917			1,889,350			—			1,891,267
Cashless exercise of warrants	—		—	—		—	9,688,179			97			(97	)		—			—
Relative fair value of warrants issued with debt	—		—	—		—	—			—			404,374			—			404,374
Cancelled shares	—		—	—		—	(17,116,894	)		(171	)		171			—			—
Exchange of 955,000,000 warrants for debt	—		—	—		—	—			—			(2,960,500	)					(2,960,500	)
Shares as payment for services	—		—	—		—	10,000,000			100			118,400			—			118,500
Net income	—		—	—		—	—			—			—			(4,172,865	)		(4,172,865	)
Balance at August 31, 2022	3,350,000	$	3,350	2,532	$	101,618	5,063,354,356		$	50,635		$	74,111,156		$	(102,988,805	)	$	(28,722,046	)
Issuance of shares, net of $68,732 issuance costs	—		—	—		—	197,161,536			1,972			1,119,518			—			1,121,490
Relative fair value of Series F warrants issued with debt	—		—	1		1	—			—			1,201,127			—			1,201,128
Relative fair value of warrants issued with debt	—		—	—		—	—			—			(10,424	)		—			(10,424	)
Net income	—		—	—		—	—			—			—			(4,085,660	)		(4,085,660	)
Balance at November 30, 2022	3,350,000	$	3,350	2,533	$	101,619	5,260,515,892		$	52,607		$	76,421,377		$	(107,074,465	)	$	(30,495,512	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ DEFICIT

(Unaudited)


	Series E			Series F						Additional					Total
	Preferred Stock			Preferred Stock			Common Stock			Paid-In		Accumulated			Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Capital		Deficit			Deficit
Balance at February 28, 2023	3,350,000	$	3,350	2,533	$	101,619	5,848,741,599	$	58,489	$	80,247,252	$	(112,253,711	)	$	(31,843,001	)
Issuance of shares, net of $81,285 issuance costs	—		—	—		—	280,929,190		2,809		1,316,100		—			1,318,909
Relative fair value of Series F warrants issued with loans payable	—		—	—		—	—		—		947,447					947,447
Stock based compensation	—		—	—		—	—		—		52,721		—			52,721
Net income	—		—	—		—	—		—		—		(4,555,193	)		(4,555,193	)
Balance at May 31, 2023	3,350,000	$	3,350	2,533	$	101,619	6,129,670,789	$	61,298	$	82,563,520	$	(116,808,904	)	$	(34,079,117	)
Issuance of shares, net of $176,672 issuance costs	—		—	—		—	903,636,004		9,036		4,787,087		—			4,796,123
Shares as payment for services	—		—	—		—	6,500,000		65		44,395		—			44,460
Stock based compensation	—		—	—		—	—		—		50,713		—			50,713
Net income	—		—	—		—	—		—		—		(4,759,728	)		(4,759,728	)
Balance at August 31, 2023	3,350,000	$	3,350	2,533	$	101,619	7,039,806,793	$	70,399	$	87,445,715	$	(121,568,632	)	$	(33,947,549	)
Issuance of shares, net of $56,320 issuance costs	—		—	—		—	675,336,434		6,753		1,405,405		—			1,412,158
Relative fair value of Series F warrants issued with debt	—		—	—		—	—		—		261,759					261,759
Stock based compensation	—		—	—		—	—		—		47,462		—			47,462
Net income	—		—	—		—	—		—		—		(3,966,484	)		(3,966,484	)
Balance at November 30, 2023	3,350,000	$	3,350	2,533	$	101,619	7,715,143,227	$	77,152	$	89,160,341	$	(125,535,116	)	$	(36,192,654	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Nine Months Ended November 30, 2023			Nine Months Ended November 30, 2022
CASH FLOWS USED IN OPERATING ACTIVITIES:
Net loss	$	(13,281,405	)	$	(12,930,211	)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		574,746			332,643
Bad debts expense		26,730			224,215
Inventory provision		—			90,000
Reduction of right of use asset		88,378			84,298
Accretion of lease liability		99,248			107,187
Stock based compensation		337,896			481,000
Change in fair value of derivative liabilities		—			(3,595	)
Amortization of debt discounts		1,755,897			1,094,388
(Gain) loss on settlement of debt		(38,740	)		(3,992	)
Increase in related party accrued payroll and interest		92,770			9,720
Changes in operating assets and liabilities:
Accounts receivable		(267,144	)		(258,790	)
Prepaid expenses		(90,315	)		(224,476	)
Device parts inventory		(2,004,189	)		(805,257	)
Accounts payable and accrued expenses		266,666			197,317
Customer deposits		68,567			(7,617	)
Operating lease liabilities		(174,874	)		(191,485	)
Current portion of deferred variable payment obligation for payments		222,525			171,550
Accrued interest payable		2,944,817			1,749,833
Net cash used in operating activities		(9,378,427	)		(9,883,272	)

CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of fixed assets		(13,903	)		(217,601	)
Acquisition of trademarks		—			—
Reimbursement of security deposit		3,859			—
Net cash used in investing activities		(10,044	)		(217,601	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Share proceeds net of issuance costs		7,527,190			4,657,979
Proceeds from loans payable		1,400,000			2,600,000
Repayment of loans payable		(381,000	)		(1,711,009	)
Proceeds from convertible debt and warrants issued		—			619,250
Net cash provided by financing activities		8,546,190			6,166,220

Net change in cash		(842,281	)		(3,934,653	)

Cash, beginning of period		939,759			4,648,146

Cash, end of period	$	97,478		$	713,493

Supplemental disclosure of cash and non-cash transactions:
Cash paid for interest	$	17,726		$	405,117
Cash paid for income taxes	$	—		$	—

Noncash investing and financing activities:
Transfer from device parts inventory to revenue earning devices	$	1,421,979		$	672,534
Shares issued for services	$	44,460		$	—
Exchange of warrants for debt	$	—		$	3,000,000
Discount applied to face value of loans	$	200,000		$	434,500
Warrants issued as part of debt	$	1,209,206		$	—
Exercise of warrants	$	—		$	97
Series F preferred shares and warrants issued for debt	$	—		$	1,240,628
Cancellation of Series E preferred shares and common shares	$	—		$	171

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. GENERAL INFORMATION

Artificial Intelligence Technology Solutions Inc. (“AITX” or the “Company”) was incorporated in Florida on March 25, 2010 and reincorporated in Nevada on February 17, 2015. On August 24, 2018, Artificial Intelligence Technology Solutions Inc., changed its name from On the Move Systems Corp (“OMVS”).

Robotic Assistance Devices, LLC (“RAD”), was incorporated in the State of Nevada on July 26, 2016 as a Limited Liability Company. On July 25, 2017, Robotic Assistance Devices LLC converted to a C Corporation, Robotic Assistance Devices, Inc., through the issuance of 10,000 common shares to its sole shareholder.

On August 28, 2017, AITX completed the acquisition of RAD (the “Acquisition”), whereby AITX acquired all the ownership and equity interest in RAD for 3,350,000 shares of AITX Series E Preferred Stock and 2,450 shares of Series F Convertible Preferred Stock. AITX’s prior business focus was transportation services, and was exploring the on-demand logistics market by developing a network of logistics partnerships. As a result of the closing of the Acquisition, AITX has succeeded to the business of RAD, and AITX’s business going forward will consist of one segment activity, which is the delivery of artificial intelligence and robotic solutions for operational, security and monitoring needs.

The Acquisition was treated as a reverse recapitalization effected by a share exchange for financial accounting and reporting purposes since substantially all of AITX’s operations were disposed of as part of the consummation of the transaction. Therefore, no goodwill or other intangible assets were recorded by AITX as a result of the Acquisition. RAD is treated as the accounting acquirer as its stockholders control the Company after the Acquisition, even though AITX was the legal acquirer. As a result, the assets and liabilities and the historical operations that are reflected in these financial statements are those of RAD as if RAD had always been the reporting company.

2. GOING CONCERN

The accompanying unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern.

For the nine months ended November 30, 2023, the Company had negative cash flow from operating activities of $9,378,427. As of November 30, 2023, the Company has an accumulated deficit of $125,535,116, and negative working capital of $12,944,810. Management does not anticipate having positive cash flow from operations in the near future. These factors raise a substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the issuance of these financial statements.

The Company does not have the resources at this time to repay its credit and debt obligations, make any payments in the form of dividends to its shareholders or fully implement its business plan. Without additional capital, the Company will not be able to remain in business.

Management has plans to address the Company’s financial situation as follows:

Management is committed to raise either non-dilutive funds or minimally dilutive funds. There is no assurance that these funds will be able to be raised nor can we provide assurance that these possible raises may not have dilutive effects. In March 2023, the Company entered into an equity financing agreement whereby an investor will purchase up to $12,500,000 of the Company’s common stock at a discount over a two-year period. In March and April 2023 the Company reduced personnel that were working on far-future solutions as well as other department reductions. Combined with other cost cutting measures management estimates it reduced the monthly expense burn by $ 200,000 - $ 300,000 with little impact on short and medium term operations. Management believes that it has the necessary support to continue operations by continuing its funding methods in the following ways : growing revenues ,equity proceeds and non-convertible debt. Management has had many recent conversations with the Company’s primary debt holder and believes that the non-convertible debt on the balance sheet will be extended. Management notes that non-convertible debt on the books has been extended by this debt holder twice in the past and notes that this debt holder has been a strong supporter of the Company.

Management is committed to raise either non-dilutive funds or minimally dilutive funds. There is no assurance that these funds will be able to be raised nor can we provide assurance that these possible raises may not have dilutive effects. The Company year to date November 30, 2023 has raised an additional $7.5 million net of issuance costs through the sale of its common shares and an additional $1.4 million through the issuance of debt. The Company has raised an additional $1.5 million net of issuance costs through the sale of its common shares subsequent to quarter end through to reporting date.

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ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

3. ACCOUNTING POLICIES

Basis of Presentation and Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and in conformity with the condensing instructions on Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes thereto in the Company’s latest Annual Report filed with the SEC on Form 10-K as filed on June 14, 2023. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Robotic Assistance Devices, Inc., Robotic Assistance Devices Group , Inc, Robotic Assistance Devices Mobile, Inc., On the Move Experience, LLC and On the OMV Transports, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of such statements. The results of operations for the nine months ended November 30, 2023 are not necessarily indicative of the results that may be expected for the entire year.

Use of Estimates

In order to prepare financial statements in conformity with accounting principles generally accepted in the United States, management must make estimates, judgements and assumptions that affect the amounts reported in the financial statements and determine whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based. The most significant estimates included in these consolidated financial statements are those associated with the assumptions used to value preferred stock and derivative liabilities.

Concentrations

Loans payable

At November 30, 2023 there were $32,473,345 of loans payable, $28,190,506 or 87% of these loans to companies controlled by one individual. At February 28, 2023 there were $31,254,345 of loans payable $26,540,506 or 85% of these loans to companies controlled by the same individual.

Cash

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market instruments. The Company places its cash and cash equivalents with high-quality, U.S. financial institutions and, to date has not experienced losses on any of its balances.

Accounts Receivable

Accounts receivable are comprised of balances due from customers, net of estimated allowances for uncollectible accounts. In determining collectability, historical trends are evaluated, and specific customer issues are reviewed on a periodic basis to arrive at appropriate allowances. There was an allowance of $61,000 and $39,000 provided as of November 30, 2023 and February 28, 2023, respectively. For the three months ended November 30, 2023 , three customers account for 61% of total accounts receivable . For the three months ended November 30, 2022, two customers account for 62% of total accounts receivable.

Device Parts Inventory

Device parts inventory is stated at the lower of cost or net realizable value using the weighted average cost method. The Company records a valuation reserve for obsolete and slow-moving inventory, relying principally on specific identification of such inventory. The Company uses these device parts in the assembly of revenue earning devices (and demo devices) as well as research and development. Depending on use, the Company will transfer the parts to the corresponding asset or expense if used in research and development. A charge to income is taken when factors that would result in a need for an increase in the valuation, such as excess or obsolete inventory, are noted. As of November 30, 2023 and February 28, 2023 there was a valuation reserve of $195,000 and $195,000, respectively.

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ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Revenue Earning Devices

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

Fixed Assets

Fixed assets are stated at cost. Depreciation is provided on the straight-line method based on the estimated useful lives of the respective assets which range from two to five years. Major repairs or improvements are capitalized. Minor replacements and maintenance and repairs which do not improve or extend asset lives are expensed currently.

Computer equipment and software		2 or 3 years
Office equipment		4 years
Manufacturing equipment		7 years
Warehouse equipment		5 years
Tooling		2 years
Demo Devices		4 years
Vehicles		3 years
Leasehold improvements		5 years, the life of the lease

The Company periodically evaluates the fair value of fixed assets whenever events or changes in circumstances indicate that its carrying amounts may not be recoverable. Upon retirement or other disposition of fixed assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is recognized in income.

Research and Development

Research and development costs are expensed in the period they are incurred in accordance with ASC 730, Research and Development unless they meet specific criteria related to technical, market and financial feasibility, as determined by Management, including but not limited to the establishment of a clearly defined future market for the product, and the availability of adequate resources to complete the project. If all criteria are met, the costs are deferred and amortized over the expected useful life or written off if a product is abandoned. At November 30, 2023 and February 28, 2023, the Company had no deferred development costs.

Contingencies

Occasionally, the Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions.

Sales of Future Revenues

The Company has entered into transactions, as more fully described in footnote 8, in which it has received funding from investors in exchange for which it will make payments to those investors based on the level of sales of certain revenue categories, generally based on a percentage of sales for those certain revenues. The Company determines whether these agreements constitute sales of future revenues or are in substance debt based on the facts and circumstances of each agreement, with the following primary criteria determinative of whether the agreement constitutes a sale of future revenues or debt:

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ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	●	Does the agreement purport, in substance, to be a sale
	●	Does the Company have continuing involvement in the generation of cash flows due the investor
	●	Is the transaction cancellable by either party through payment of a lump sum or other transfer of assets
	●	Is the investors rate of return is implicitly limited by the terms of the agreement
	●	Does the Company’s revenue for a reporting period underlying the agreement have only a minimal impact on the investor’s rate of return
	●	Does the investor have recourse relating to payments due

In the 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 method. In the event a transaction is determined to be debt, it is recorded as debt and amortized using the effective interest method. As of the date of these financial statements, the Company has determined that all such agreements are debt.

Revenue Recognition

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, supersedes the revenue recognition requirements and industry specific guidance under Revenue Recognition (Topic 605). Topic 606 requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. Topic 606 defines a five-step process that must be evaluated and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing accounting principles generally accepted in the United States of America (“U.S. GAAP”) including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The Company adopted Topic 606 on March 1, 2018, using the modified retrospective method. Under the modified retrospective method, prior period financial positions and results will not be adjusted. There was no cumulative effect adjustment recognized as a result of this adoption. Refer to Note 4 – Revenue from Contracts with Customers for additional information. For the nine months ended November 30, 2023, four customers accounted for 58% of total revenue and for the nine months ended November 30, 2022, two customers accounted for 41% of total revenue.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. ASC 740, Accounting for Income Taxes requires companies to recognize the effects of changes in tax laws and rates on deferred tax assets and liabilities and the retroactive effects of changes in tax laws in the period in which the new legislation is enacted. The Company’s gross deferred tax assets were revalued based on the reduction in the federal statutory tax rate from 35% to 21%. A corresponding offset has been made to the valuation allowance, and any potential other taxes arising due to the Tax Act will result in reductions to the Company’s net operating loss carryforward and valuation allowance. The Company will continue to analyze the Tax Act to assess its full effects on the Company’s financial results, including disclosures, for the Company’s fiscal year ending February 28, 2024, but the Company does not expect the Tax Act to have a material impact on the Company’s consolidated financial statements.

Leases

Lease agreements are evaluated to determine if they are sales/finance leases meeting any of the following criteria at inception: (a) transfer of ownership of the underlying asset; (b) purchase option that is reasonably certain of being exercised; (c) the lease term is greater than 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 and 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) equals or exceeds substantially all of the fair value of the underlying asset.

- 11 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

If at its inception, a lease meets any of the four lease criteria above, the lease is classified by the Company as a sales/finance; and if none of the four criteria are met, the lease is classified by the Company as an operating lease.

Operating lease payments are recognized as an expense in the income statement on a straight-line basis over the lease term, whereby an equal amount of rent expense is attributed to each period during the term of the lease, regardless of when actual payments are made. This generally results in rent expense in excess of cash payments during the early years of a lease and rent expense less than cash payments in the later years. The difference between rent expense recognized and actual rental payments is recorded as deferred rent and included in liabilities.

Distinguishing Liabilities from Equity

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

Once the Company determines that a financial instrument should not be classified as a liability, the Company determines whether the financial instrument should be presented between the liability section and the equity section of the balance sheet (“temporary equity”). The Company will determine temporary equity classification if the redemption of the financial instrument is outside the control of the Company (i.e. at the option of the holder). Otherwise, the Company accounts for the financial instrument as permanent equity.

Our Chief Executive Officer/ Chairman holds sufficient shares of the Company’s voting preferred stock that give sufficient voting rights under the articles of incorporation and bylaws of the Company such that the CEO/ Chairman can at any time unilaterally vote to increase the number of authorized shares of common stock of the Company, without the need to call a general meeting of common shareholders of the Company.

Initial Measurement

The Company records its financial instruments classified as liability, temporary equity or permanent equity at issuance at the fair value, or cash received.

Subsequent Measurement – Financial Instruments Classified as Liabilities

The Company records the fair value of its financial instruments classified as liabilities at each subsequent measurement date. The changes in fair value of its financial instruments classified as liabilities are recorded as other income (expenses).

Fair Value of Financial Instruments

ASC Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”) provides a framework for measuring fair value in accordance with generally accepted accounting principles.

ASC Topic 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 between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs).

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

- 12 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

	●	Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

	●	Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

	●	Level 3 – Inputs that are unobservable for the asset or liability.

Measured on a Recurring Basis

The following table presents information about our liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell:

			Fair Value Measurement Using
	Amount at Fair Value		Level 1		Level 2		Level 3
November 30, 2023
Liabilities
Incentive compensation plan payable- revaluation of equity awards payable in Series G shares	$	1,166,000	$	—	$	—	$	1,166,000

February 28, 2023
Liabilities
Incentive compensation plan payable- revaluation of equity awards payable in Series G shares	$	979,000	$	—	$	—	$	979,000

The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, prepaid expenses and advances, accounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments.

Earnings (Loss) per Share

Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS give effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used to determine the number of shares assumed to be purchased from the exercise of stock options and/or warrants. Diluted EPS excluded all dilutive potential shares if their effect is anti-dilutive.

Basic loss per common share is computed based on the weighted average number of shares outstanding during the period. Diluted loss per share is computed in a manner similar to the basic loss per share, except the weighted-average number of shares outstanding is increased to include all common shares, including those with the potential to be issued by virtue of convertible debt and other such convertible instruments. Diluted loss per share contemplates a complete conversion to common shares of all convertible instruments only if they are dilutive in nature with regards to earnings per share.

- 13 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Recently Issued Accounting Pronouncements

Recently Issued Accounting Standards Not Yet Adopted

In August 2020, the FASB issued ASU 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method to be applied for all convertible instruments. The amendments in ASU 2020-06 are effective for public entities, excluding smaller reporting companies as defined, for fiscal years beginning after December 15, 2021. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. A reporting entity is not permitted to adopt the guidance in an interim period, other than the first interim period of its fiscal year. Adoption of the standard requires using either a modified retrospective or a full retrospective approach. Management is currently evaluating the effect of these provisions on the Company’s financial position and results of operations.

4. REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue is earned primarily from two sources: 1) direct sales of goods or services and 2) short-term rentals. Direct sales of goods or services are accounted for under Topic 606, and short-term rentals are accounted for under Topic 842 (which addresses lease accounting and was adopted on March 1, 2019).

As disclosed in the revenue recognition section of Note 3 – Accounting Polices, the Company adopted Topic 606 in accordance with the effective date on March 1, 2018. Note 3 includes disclosures regarding the Company’s method of adoption and the impact on the Company’s financial statements. Revenue is recognized on direct sales of goods or services when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services.

After adopting Topic 842, also referred to above in Note 3, the Company is accounting for revenue earned from rental activities where an identified asset is transferred to the customer and the customer has the ability to control that asset. The Company recognizes revenue from its device rental activities when persuasive evidence of a contract exists, the performance obligations have been satisfied, the transaction price is fixed or determinable and collection is reasonably assured. Performance obligations associated with device rental transactions are satisfied over the rental period. Rental periods are short-term in nature. Therefore, the Company has elected to apply the practical expedient which eliminates the requirement to disclose information about remaining performance obligations. Payments are due from customers at the completion of the rental, except for customers with negotiated payment terms, generally net 30 days or less, which are invoiced and remain as accounts receivable until collected.

The following table presents revenues from contracts with customers disaggregated by product/service:

	Three Months Ended November 30, 2023		Three Months Ended November 30, 2022		Nine Months Ended November 30, 2023		Nine Months Ended November 30, 2022
Device rental activities	$	416,062	$	154,628	$	997,754	$	622,647
Direct sales of goods and services		180,918		247,771		370,797		432,393
Revenues	$	596,980	$	402,399	$	1,368,551	$	1,055,040

- 14 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

5. LEASES

We lease certain warehouses, and office space. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we did not combine lease and non-lease components.

There is no lease renewal. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Below is a summary of our lease assets and liabilities at November 30, 2023 and February 28, 2023.

Leases	Classification	November 30, 2023		February 28, 2023
Assets
Operating	Operating Lease Assets	$	1,115,447	$	1,208,440
Liabilities
Current
Operating	Current Operating Lease Liability	$	229,016	$	248,670
Noncurrent
Operating	Noncurrent Operating Lease Liabilities		881,816		950,541
Total lease liabilities		$	1,110,832	$	1,199,211

Note: As most of our leases do not provide an implicit rate, we use our incremental borrowing rate of 10% which for the leases noted above was based on the information available at commencement date in determining the present value of lease payments. We compare against loans we obtain to acquire physical assets and not loans we obtain for financing. The loans we obtain for financing are generally at significantly higher rates and we believe that physical space or vehicle rental agreements are in line with physical asset financing agreements. CAM charges were not included in operating lease expense and were expensed in general and administrative expenses as incurred.

Rent expense and operating lease cost was $64,081 and $189,164 for the three and nine months ended November 30, 2023, respectively, and $61,005 and $194,653 for the three and nine months ended November 30, 2022, respectively.

6. REVENUE EARNING DEVICES

Revenue earning devices consisted of the following:

	November 30, 2023			February 28, 2023
Revenue earning devices	$	3,321,560		$	2,015,058
Less: Accumulated depreciation		(1,209,664	)		(779,839	)
Total	$	2,111,896		$	1,235,219

During the three and nine months ended November 30, 2023 the Company made total additions to revenue earning devices of $521,037 and $1,306,501, respectively, which were transfers from inventory. During the three and nine months ended November 30, 2022 the Company made total additions to revenue earning devices of $199,047 and $625,094, respectively, which were transfers from inventory.

Depreciation expense was $165,370 and $429,825 for the three and nine months ended November 30, 2023, respectively, and $54,418 and $241,957 for the three and nine months ended November 30, 2022, respectively.

- 15 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

7. FIXED ASSETS

Fixed assets consisted of the following:

	November 30, 2023			February 28, 2023
Automobile	$	101,680		$	101,680
Demo devices		184,438			69,010
Tooling		101,322			101,322
Machinery and equipment		8,825			8,825
Computer equipment		150,387			150,387
Office equipment		15,312			15,312
Furniture and fixtures		21,225			21,225
Warehouse equipment		17,076			14,561
Leasehold improvements		26,956			15,568
		627,221			497,890
Less: Accumulated depreciation		(326,921	)		(182,002	)
	$	300,300		$	315,888

During the three months ended November 30, 2023, the Company made additions of $22,101, $11,661 which were transfers from inventory with remaining additions of $ 10,440. During the nine months ended November 30, 2023, the Company made additions of $129,331 of which $115,428 were transfers from inventory with remaining additions of $13,903. During the three months ended November 30, 2022, the Company made additions of $31,365 of which $19,961 were transfers from inventory with remaining additions of $11,404. During the nine months ended November 30, 2022, the Company made additions of $265,041 of which $47,440 were transfers from inventory with remaining additions of $217,601.

Depreciation expense was $50,393 and $144,921 for the three and nine months ended November 30, 2023, respectively, and $38,437 and $90,686 for the three and nine months ended November 30, 2022, respectively.

8. DEFERRED VARIABLE PAYMENT OBLIGATION

On February 1, 2019 the Company entered into an agreement with an investor whereby the investor would pay up to $900,000 in exchange for a perpetual 9% rate payment (Payments) on the Company’s reported quarterly revenue from operations excluding any gains or losses from financial instruments (Revenues). At February 29, 2020 the investor has advanced the full $900,000.

On May 9, 2019 the Company entered into two similar arrangements with two investors:

	(1)	The investor would pay up to $400,000 in exchange for a perpetual 4% rate Payment on the Company’s reported quarterly Revenues. At February 29, 2020, $400,000 has been paid to the Company.

	(2)	The investor would pay up to $50,000 in exchange for a perpetual 1.11% rate Payment on the Company’s reported quarterly Revenues. At February 29, 2020, $50,000 has been paid to the Company.

These variable payments (Payments) are to be made 30 days after the end of each fiscal quarter. If the Payments would deplete RAD’s available cash 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 on the unpaid amount.

In the 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 value (FMV) of all future Payments associated with the assets sold as determined by an independent valuator to be chosen by the investors. The FMV cannot exceed 30% of the total asset disposition price defined as the total price paid for the assets plus all future Payments associated 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 a 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 the share disposition price defined as the total price the third party paid for the shares plus the total value of all future Payments.

- 16 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

On November 18, 2019, the Company entered into another similar arrangement with the (February 1, 2019) investor above whereby the investor would advance up to $225,000 in exchange for a perpetual 2.25% rate Payment on the Company’s quarterly Revenues (commencing on quarter ending May 31, 2020). At February 29, 2020, the investor has advanced $109,000 and the investor advanced the $116,000 remainder as of May 2020.

On December 30, 2019, the Company entered into another similar arrangement with a new investor whereby the investor would advance up to $100,000 in exchange for a perpetual 1.00% rate Payment on the Company’s quarterly Revenues (commencing quarter ended November 30, 2020). At February 29, 2020, the investor has advanced $50,000 with the remainder to be advanced no later than June 30, 2020. If the total investor advances turns out to be less than $100,000, this would not constitute a breach of the agreement, rather the 1.00% rate would be adjusted on a pro-rata basis.

On April 22, 2020, the Company entered into another similar arrangement with the (first May 9, 2019) investor above whereby the investor would advance up to $100,000 in exchange for a perpetual 1.00% rate Payment on the Company’s quarterly Revenues. At May 31, 2020, the investor has fully funded this commitment.

On July 1, 2020, the Company entered into a similar agreement with the first investor whereby the investor would pay up to $800,000 in exchange for a perpetual 2.75% rate payment (Payment) on the Company’s reported quarterly revenue. These Payments are to be made 90 days after the fiscal quarter with the first payment being due no later than May 31, 2021. If the Payments would deplete RAD’s available cash 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 first payment due July 2020 and the final payment no later than February 28, 2021. As at August 31, 2020 the investor had fully funded the $800,000 commitment.

On August 27, 2020, the Company and the first investor referred to above consolidated the three separate agreements of February 1, 2019 for $900,000, November 18, 2019 for $225,000 and July 1, 2020 for $800,000 into a new agreement for a total of $1,925,000. This new agreement is for similar terms as the above agreements save for the following: the rate payment is revised to 14.25% payable on revenues commencing the quarter ended August 31, 2020. Upon an event of default that we are unable to cure in the time allotted under the agreements, these Payments may be secured with a priority lien by UCC filing against all of our assets, but is subordinated to equipment financing or leasing agreements on the products the Company leases to its customers.

In summary of all agreements mentioned above if in the 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 value (FMV) of all future Payments associated with the assets sold as determined by an independent valuator to be chosen by the investors. The FMV cannot exceed 43.77% of the total asset disposition price defined as the total price paid for the assets plus all future Payments associated 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 a change in control, then the investors must be paid the FMV of all future Payments in one lump payment. The FMV cannot exceed 43.77% of the share disposition price defined as the total price the third party paid for the 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 below. This aggregate asset disposition % was reduced from 43.77 % to 33.77%.

The Payments first become payable on June 30, 2019 (unless otherwise indicated) based on the quarterly Revenues for the quarter ended May 31, 2019 and accrue every quarter thereafter. As of November 30, 2023, the Company has accrued $764,702 in Payments of which $497,149 are in arrears. As of February 28, 2023, the Company has accrued $542,177 in Payments of which $325,600 are in arrears. No notices have been sent to the Company.

On March 1, 2021, the first investor referred to above whose aggregate investment is $1,925,000 revised his agreements as follows:

	1)	The rate payment was reduced from 14.25 % to 9.65 %
	2)	The asset disposition % (see below) was reduced from 31 % to 21%

In consideration for the above changes, the investor received 40 Series F Convertible Preferred Stock and a warrant to purchase 367 shares of its Series F Convertible Preferred Stock with a five-year term and an exercise price of $1.00. During the three months ended May 31, 2021, the warrant holder exercised warrants to acquire 38 shares of Series F Convertible Preferred Stock. The Company attributed a fair value based on recent transactions for the Series F Preferred stock and warrants of $33,015,214 and recorded a loss on settlement of debt with a corresponding adjustment to paid in capital.

- 17 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The Company retains total involvement in the generation of cash flows from these revenue streams that form the basis of the payments to be made to the investors under this agreement. Because of this, the Company has determined that the agreements constitute debt agreements. As of November 30, 2023, and February 28, 2023, the long-term balances other than Payments already owed is the cash received of $2,525,000 and $2,525,000, respectively.

For both the three months and nine months ended November 30, 2023 and year ended February 28, 2023, the Company has received $0 related to the deferred payment obligation since there were no new agreements during this period. The balance remains $2,525,000 at both November 30, 2023 and February 28, 2023.

9. RELATED PARTY TRANSACTIONS

For both the three months ended November 30, 2023 and November 30, 2022 , the Company had no repayments of net advances from its loan payable-related party At November 30, 2023, the loan payable-related party was $299,286 and $206,516 at February 28, 2023. Included in the balance due to the related party at November 30, 2023 is $222,754 of deferred salary and interest, $183,625 of which bears interest at 12%. At February 28, 2023, included in the balance due to the related party is $108,000 of deferred salary with $108,000 bearing interest at 12%. The accrued interest included in loan at November 30, 2023 and February 28, 2023 was $28,267 and $15,660 respectively.

Pursuant to the amended Employment Agreement with its Chief Executive Officer, for the three months and nine ended November 30, 2023, the Company accrued $62,000 (2022-$138,000) and $187,000 (2022-$362,500) of incentive compensation plan payable with a corresponding recognition of stock based compensation due to the expectation of additional awards being met. This will be payable in Series G Preferred Shares which are redeemable at the Company’s option at $1,000 per share. At November 30, 2023 and February 28, 2023 there was $1,166,000 and $979,000 of incentive compensation payable.

During the three months ended November 30, 2023 and 2022, the Company was charged $526,723 and $794,460, respectively for fees for research and development from a company partially owned by a principal shareholder.

During the nine months ended November 30, 2023 and 2022, the Company was charged $2,185,998 and $2,735,589, respectively for fees for research and development from a company partially owned by a principal shareholder.

10. OTHER DEBT – VEHICLE LOAN

In December 2016, RAD entered into a vehicle loan for $47,704 secured by the vehicle. The loan is repayable over 5 years maturing November 9, 2021, and repayable $1,019 per month including interest and principal. In November 2017, RAD entered into another vehicle loan secured by the vehicle for $47,661. The loan is repayable over 5 years, maturing October 24, 2022 and repayable at $923 per month including interest and principal. The principal repayments made were $0 for both the year ended February 28, 2022 and February 28, 2021. Regarding the second vehicle loan, the vehicle was returned at the end of fiscal 2019 and the car was subsequently sold by the lender for proceeds of $21,907 which went to reduce the outstanding balance of the loan. A loss of $3,257 was recorded as well. A balance of $21,578 remains on this vehicle loan at both February 28, 2021 and February 29, 2020. For the first vehicle loan, the vehicle was retired in 2020, the proceeds of the disposal of $18,766 was applied against the balance of the loan with a $5,515 gain on the remaining asset value of $13,251. A balance of $16,944 remains on this vehicle loan at both February 28, 2022 and February 28, 2021. The remaining total balances of the amounts owed on the vehicle loans were $38,522 and $38,522 as of November 30, 2023 and February 28, 2023, respectively, of which all were classified as current.

- 18 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

11. LOANS PAYABLE

Loans payable at November 30, 2023 consisted of the following:

							Annual
Date	Maturity	Description		Principal			Interest Rate
July 18, 2016	July 18, 2017	Promissory note	(1) *	$	3,500		22%
December 10, 2020	March 1, 2025	Promissory note	(2)		3,921,168		12%
December 10, 2020	March 1, 2025	Promissory note	(3)		2,754,338		12%
December 10, 2020	December 10, 2023	Promissory note	(4)		165,605		12%
December 14, 2020	December 14, 2023	Promissory note	(5)		310,375		12%
December 30, 2020	March 1, 2025	Promissory note	(6)		350,000		12%
January 1, 2021	March 1, 2025	Promissory note	(7)		25,000		12%
January 1, 2021	March 1, 2025	Promissory note	(8)		145,000		12%
January 14, 2021	March 1, 2025	Promissory note	(9)		550,000		12%
February 22, 2021	March 1, 2025	Promissory note	(10)		1,650,000		12%
March 1, 2021	March 1, 2024	Promissory note	(11)		6,000,000		12%
June 8, 2021	June 8, 2024	Promissory note	(12)		2,750,000		12%
July 12, 2021	July 26, 2026	Promissory note	(13)		3,803,360		7%
September 14, 2021	September 14, 2024	Promissory note	(14)		1,650,000		12%
July 28, 2022	March 1, 2025	Promissory note	(15)		170,000		15%
August 30, 2022	August 30,2024	Promissory note	(16)		3,000,000		15%
September 7, 2022	March 1, 2025	Promissory note	(17)		400,000		15%
September 8, 2022	March 1, 2025	Promissory note	(18)		475,000		15%
October 13, 2022	March 1, 2025	Promissory note	(19)		350,000		15%
October 28, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
November 9, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
November 10, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
November 15, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
January 11, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
February 6, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
April 5. 2023	October 31, 2026	Promissory note	(20)		400,000		15%
April 20, 23	October 31, 2026	Promissory note	(20)		400,000		15%
May 11, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
October 27, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
November 30, 2023	October 31, 2025	Purchase Agreement	(21) **		—		35%
				$	32,473,346

Less: current portion of loans payable					(9,479,479	)
Less: discount on non-current loans payable					(4,305,396	)
Non-current loans payable, net of discount				$	18,688,471

Current portion of loans payable				$	9,479,479
Less: discount on current portion of loans payable					1,129,801
Current portion of loans payable, net of discount				$	8,349,678

*	In default
**	Funds received December 1 , 2023, after reporting period.

- 19 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(1)	This note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions placed on the lender.

(2)	This promissory note was issued as part of a debt settlement whereby $2,683,357 in convertible notes and associated accrued interest of $1,237,811 totaling $3,921,168 was exchanged for this promissory note of $3,921,168, and a warrant to purchase 450,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a relative fair value of $990,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(3)	This promissory note was issued as part of a debt settlement whereby $1,460,794 in convertible notes and associated accrued interest of $1,593,544 totaling $3,054,338 was exchanged for this promissory note of $3,054,338, and a warrant to purchase 250,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a relative fair value of $550,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. $100,000 and $300,000 has been repaid the three and nine months ended November 30, 2023. The balance at November 30,2023 is now $2,754,338. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(4)	This promissory note was issued as part of a debt settlement whereby $103,180 in convertible notes and associated accrued interest of $62,425 totaling $165,605 was exchanged for this promissory note of $165,605, and a warrant to purchase 80,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a fair value of $176,000.

(5)	This promissory note was issued as part of a debt settlement whereby $235,000 in convertible notes and associated accrued interest of $75,375 totaling $310,375 was exchanged for this promissory note of $310,375, and a warrant to purchase 25,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a fair value of $182,500.

(6)	The note, with an original principal amount of $350,000, may be pre-payable at any time. The note balance includes an original issue discount of $35,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $0.025 per share with a 3-year term and having a relative fair value of $271,250. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $271,250 with a corresponding adjustment to paid in capital for the relative fair value of the warrant. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $12,878 and $105,538, respectively, with an unamortized discount of $31,106 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(7)	This promissory note was issued as part of a debt settlement whereby $9,200 in convertible notes and associated accrued interest of $6,944 totaling $16,144 was exchanged for this promissory note of $25,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from January 1, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(8)	This promissory note was issued as part of a debt settlement whereby $79,500 in convertible notes and associated accrued interest of $28,925 totaling $108,425 was exchanged for this promissory note of $145,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from January 1, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(9)	The note, with an original principal amount of $550,000, may be pre-payable at any time. The note balance includes an original issue discount of $250,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $0.025 per share with a 3-year term and having a relative fair value of $380,174. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $380,174 with a corresponding adjustment to paid in capital. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $16,718 and $129,906 respectively, with an unamortized discount of $50,493 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from January 14, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

- 20 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(10)	The note, with an original principal balance of $1,650,000, may be pre-payable at any time. The note balance includes an original issue discount of $150,000 and was issued with a warrant to purchase 100,000,000 shares at an exercise price of $0.135 per share with a 3-year term and having a relative fair value of $1,342,857. The discount and warrant are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $1,342,857 with a corresponding adjustment to paid in capital for the relative fair value of the warrant. The maturity date was extended from February 22, 2022 to February 22, 2024 on February 28, 2022 in exchange for warrants to purchase 50,000,000 at an exercise price of $.0164 and a 3-year term. These warrants have a fair value of $950,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $82,499 and $462,320 respectively, with an unamortized discount of $426,061 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from February 22, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(11)	The unsecured note may be pre-payable at any time. Cash proceeds of $5,400,000 were received. The note balance of $6,000,000 includes an original issue discount of $600,000 and was issued with a warrant to purchase 300,000,000 shares at an exercise price of $0.135 per share with a 3-year term and having a relative fair value of $4,749,005 using Black-Scholes with assumptions described in note 13. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $4,749,005 with a corresponding adjustment to paid in capital for the relative value of the warrant.. The maturity was extended from March 1, 2022 to March 1, 2024 on February 28, 2022 in exchange for warrants to purchase 150,000,000 shares of common stock at an exercise price of $.0164 and a 3 year term. These warrants have a fair value of $2,850,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. This note has been fully amortized.

(12)	The note, with an original principal balance of $2,750,000, may be pre-payable at any time. The note balance includes an original issue discount of $50,000 and was issued with a warrant to purchase 170,000,000 shares at an exercise price of $0.064 per share with a 3-year term and having a relative fair value of $2,035,033. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $2,035,033 with a corresponding adjustment to paid in capital. The maturity date was extended from June 8, 2022 to June 8, 2024 on February 28, 2022 in exchange for warrants to purchase 85,000,000 at an exercise price of $.0164 and a 3 year term. These warrants have a fair value of $1,615,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $199,482 and $530,181 respectively, with an unamortized discount of $264,037 at November 30, 2023.

(13)	This loan, with an original principal balance of $4,000,160, was in exchange for 184 Series F preferred shares from a former director. The interest and principal are payable at maturity. The loan is unsecured. For the three and nine months ended November 30, 2023 there were repayments of $27,000 and $81,000 . respectively on the note.

(14)	The note, with an original principal balance of $1,650,000, may be pre-payable at any time. The note balance includes an original issue discount of $150,000 and was issued with a warrant to purchase 250,000,000 shares at an exercise price of $0.037 per share with a 3-year term and having a relative fair value of $1,284,783, The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $1,284,783 with a corresponding adjustment to paid in capital. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $146,393 and $348,667 respectively, with an unamortized discount of $865,764 at November 30, 2023.

(15)	Original $170,000 note may be pre-payable at any time. The note balance includes an original issue discount of $20,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $9,026 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from July 28, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

- 21 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(16)	A warrant holder exchanged 955,000,000 warrants for a promissory note of $3,000,000, bearing interest at 15% with a two year maturity. The fair value of the warrants was determined to be $2,960,500 with a corresponding adjustment to paid-in capital and a debt discount of $39,500 which will be amortized over the term of the loan. Principal and interest due at maturity. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $4,923 and $14,216 respectively, with an unamortized discount of $16,552 at November 30, 2023.

(17)	Original $400,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $27,821 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from September 7, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(18)	Original $475,000 note may be pre-payable at any time. The note balance includes an original issue discount of $75,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $36,729 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from September 8, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(19)	Original $350,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest due at maturity. Secured by a general security charging all of the Company’s s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $13,295 and $25,585 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from October 13, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

- 22 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(20)	On October 28, 2022 the Company entered into an loan facility with a lender for up to $4,000,000 including an original issue discount of $500,000. In exchange the Company will issue one series F Preferred Share, extended 329 series F warrants with a March 1, 2026 maturity to a new October 31, 2033 maturity, and issue up to 10 tranches with each tranche of $400,000, with cash proceeds of $350,000 an original issue discount of $50,000, October 31, 2026 maturity, and 61 Series F warrants with a October 31, 2033 maturity. Secured by a general security charging all of the Company’s present and after-acquired property. At November 30, 2022 the Company has issued 6 tranches as follows: October 28, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants and 1 Series F Preferred Share having a relative fair value of $299,399. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,274 and $7,613 respectively, with an unamortized discount of $340,411 at November 30, 2023. November 9, 2022, $400,000 loan, original issue discount of $50,000 , 61 Series F Preferred Share warrants having a relative fair value of $299,750. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $3,234 and $7,510 respectively, with an unamortized discount of $340,929 at November 30, 2023. November 10, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $302,020. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,991 and $6,891 respectively, with an unamortized discount of $343,990 at November 30, 2023. November 15, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three nine months ended November 30, 2023, the Company recorded amortization expense of $3,295 and $7,665 respectively, with an unamortized discount of $340,151 at November 30, 2023. January 11, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,355 and $7,821 respectively, with an unamortized discount of $339,368 at November 30, 2023. February 6, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,231 and $7,503 respectively, with an unamortized discount of $340,923 at November 30, 2023. April 5, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $296,245. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,335 and $6,608 respectively, with an unamortized discount of $339,637 at November 30, 2023. April 20, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $302,219. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,723 and $4,930 respectively, with an unamortized discount of $347,290 at November 30, 2023. May 11, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $348,983. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $0 respectively, with an unamortized discount of $398,983 at November 30, 2023. October 27 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $261,759. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,044 and $2,044 respectively, with an unamortized discount of $309,715 at November 30, 2023.

(21)	On November 30, 2023 , the Company entered into an agreement where the lender will buy pay the Company $350,000 in exchange for thirteen future monthly payments of $36,750 commencing on April 30,2024 through to April 30, 2025 totaling $477,750. The effective interest rate is 35% per annum. As the proceeds were received on December 1, 2023 , this loan will be recorded next quarter. Secured by a general security charging all of RAD’s present and after-acquired property. Default rate of 15% per annum calculated daily on any missed monthly payment.

- 23 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

12. STOCKHOLDERS’ EQUITY (DEFICIT)

Summary or Preferred Stock Activity

No preferred stock activity during the period.

Summary of Preferred Stock Warrant Activity

	Number of Series F Preferred Warrants	Weighted Average Exercise Price	Weighted Average Remaining Years
Outstanding at March 1, 2023	695	$1.00	10.00
Issued	244	1.00	9.88
Exercised	—	—	—
Forfeited and cancelled	—	—	—
Outstanding at November 30, 2023	939	$1.00	9.50

During the nine months ended November 30, 2023, as part of debt issuance the Company issued 244 Series F Preferred Warrants to a lender for a relative fair value of $1,209,206. (see Note 11)

Summary of Common Stock Activity

The Company increased authorized common shares from 7,225,000,000 to 10,000,000,000 on August 30, 2023.

For the three months ended November 30, 2023, the Company issued 675,336,434 common shares with gross proceeds of $1,468,477 and net proceeds of $1,412,158 after issuance costs of $56,320.

For the nine months ended November 30, 2023, the Company issued 1,859,901,628 common shares with gross proceeds of 7,841,466 and net proceeds of $7,527,190 after issuance costs of $314,276. In addition the Company issued 6,500,000 shares with a fair value of $ 44,460 as payment for services of $ 83,200. A gain on settlement of debt of $38,640 has been recorded. The Company also issued 12,100,000 previously recorded as issuable shares pursuant to agreements.

The table below represent the common shares issued, issuable and outstanding at November 30, 2023 and February 28, 2023:

Common shares	November 30, 2023		February 28, 2023
Issued		7,715,143,227		5,836,641,599
Issuable		—		12,100,000
Issued, issuable and outstanding		7,715,143,227		5,848,741,599

Summary of Common Stock Warrant Activity

For the three months and nine months ended November 30, 2023 and November 30, 2022, the Company recorded a total of $47,462 and $0, and $150,896 and $0 respectively, to stock-based compensation for options and warrants with a corresponding adjustment to additional paid-in capital.

	Number of Warrants	Weighted Average Exercise Price	Weighted Average Remaining Years
Outstanding at February 28, 2023	314,217,451	$0.114	1.95
Issued	—	—	—
Exercised	—	—	—
Forfeited and cancelled	—	—	—
Outstanding at November 30, 2023	314,217,451	$0.114	1.20

- 24 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Summary of Common Stock Option Activity -Employee Stock Options

	Number of Options		Weighted Average Exercise Price	Weighted Average Remaining Years
Outstanding at February 28 , 2023	95,725,000		$0.02	4.75
Issued	—		—	—
Exercised	—		—	—
Forfeited, extinguished and cancelled	(21,275,000	)	$0.02	(4.60)
Outstanding at August 31, 2023	74,450,000		$0.02	4.00

13. COMMITMENTS AND CONTINGENCIES

Litigation

Occasionally, the Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision for a liability when it believes that is both probable that a liability has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s condensed consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions.

The related legal costs are expensed as incurred.

Operating Lease

On December 18, 2020, the Company entered into a 15-month lease agreement for office space at 18009 Sky Park Circle Suite E, Irvine CA, 92614, commencing on December 18, 2020 through to March 31, 2022 with a minimum base rent of $3,859 per month. The Company paid a security deposit of $3,859.

On March 10, 2021, the Company entered into a 10 year lease agreement for a manufacturing facility at 10800 Galaxie Avenue, Ferndale, Michigan, 48220, commencing on May 1, 2021 through to April 30, 2031 with a minimum base rent of $15,880 per month. The base rent increase by 3% per annum commencing May 1, 2024. The Company paid a security deposit of $15,880.

On September 30, 2021, the Company entered into a 3-year lease agreement for a vehicle commencing September 30, 2021 through to April 30, 2031 with a minimum base rent of $1,538 per month. The Company paid a down payment of $18,462.

On January 28, 2022, the Company entered into a 2-year lease agreement for office space at 1516 E Edinger, Santa Ana, California, 92705, commencing on February 1, 2022 through to January 31, 2024 with a minimum base rent of $1,500 per month. The Company paid a security deposit of $1,500.

The Company’s leases are accounted for as operating leases. Rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. Rent expense and operating lease cost was $64,081 and $189,164 for the three and nine months ended November 30, 2023, respectively, and $61,005 and $194,653 for the three and nine months ended November 30, respectively.

Summary of rent expense and operating lease cost are recorded over the lease terms on a straight-line basis.

Maturity of Lease Liabilities	Operating Leases
November 30, 2024	$	229,016
November 30, 2025		207,558
November 30, 2026		207,558
November 30, 2027		207,558
November 30, 2028		207,558
November 30, 2029 and after		501,599
Total lease payments		1,560,847
Less: Interest		(450,015	)
Present value of lease liabilities	$	1,110,832

- 25 -

ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

14. EARNINGS (LOSS) PER SHARE

The net income (loss) per common share amounts were determined as follows:


	For the Three Months Ended						For the Nine Months Ended
	November 30,						November 30,
	2023			2022			2023			2022
Numerator:
Net income (loss) available to common shareholders	$	(3,966,484	)	$	(4,085,660	)	$	(13,281,405	)	$	(12,930,211	)

Effect of common stock equivalents
Add: interest expense on convertible debt		—			22,438			—			27,863
Add: amortization of debt discount		—			78,149			—			90,767
Add (less) loss (gain) on settlement of debt		—			—			—			(3,992	)
Add (less) loss (gain) on change of derivative liabilities		—			—			—			(3,595	)
Net income (loss) adjusted for common stock equivalents		(3,966,484	)		(3,985,073	)		(13,281,405	)		(12,819,168	)

Denominator:
Weighted average shares – basic		7,294,775,879			5,140,405,652			6,606,988,956			4,969,080,176

Net income (loss) per share – basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Dilutive effect of common stock equivalents:
Convertible Debt		—			—			—			—
Preferred shares		—			—			—			—
Warrants		—			—			—			—
		—			—			—			—
Denominator:
Weighted average shares – diluted		7,294,775,879			5,140,405,652			6,606,988,956			4,969,080,176

Net income (loss) per share – diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

The anti-dilutive shares of common stock equivalents for the three and nine months ended November 30, 2023 and 2022 were as follows:


	For the Three Months Ended				For the Nine Months Ended
	November 30,				November 30,
	2023		2022		2023		2022

Convertible notes and accrued interest		—		836,425,685		—		836,425,685
Convertible Series F Preferred Shares*		26,617,244,133		—		26,617,244,133		—
Stock options and warrants		428,667,451		401,217,451		428,667,451		401,217,451
Total		27,045,911,584		1,237,643,136		27,045,911,584		1,237,643,136

On August 23, 2021, the Company filed amended Series F preferred shares such that Series F preferred shares are not convertible into common stock by a holder until (A) August 23, 2023 or (B) the date on which such a conversion may be required for the purpose of (i) uplisting the Company to a new stock exchange, or (ii) selling more than 50% of the Company’s assets. Had these Series F preferred shares been convertible at November 30, 2023 and 2022 the dilutive effects would be as follows:

	For the Three and Nine Months Ended
	November 30, 2023	November 30, 2022
Convertible Series F Preferred Shares	—	18,148,779,827

15. SUBSEQUENT EVENTS

Subsequent to November 30, 2023 through to January 12, 2024:

— The Company issued 639,550 common shares pursuant to a share purchase agreement for gross proceeds of $1,523,258, issuance costs of $62,980 and net proceeds of $1,460,278.

- 26 -

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

The following discussion of our financial condition and results of operations for the three and six months ended August 31, 2023 and August 31, 2022 should be read in conjunction with our unaudited consolidated financial statements and the notes to those statements that are included elsewhere in this report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under Item 1A. Risk Factors appearing in our Annual Report on Form 10-K for the year ended February 28, 2023, as filed on June 14, 2023 with the SEC. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” and similar expressions to identify forward-looking statements.

Unless expressly indicated or the context requires otherwise, the terms “AITX”, the “Company”, “we”, “us”, and “our” refer to Artificial Intelligence Technology Solutions Inc.

Overview

AITX was incorporated in Florida on March 25, 2010. AITX reincorporated into Nevada on February 17, 2015. AITX’s fiscal year end is February 28 (February 29 during leap year). AITX is located at 10800 Galaxie Ave., Ferndale Michigan, 48220, and our telephone number is 877-767-6268.

AITX’s mission is to apply Artificial Intelligence (AI) technology to solve enterprise problems categorized as expensive, repetitive, difficult to staff, and outside of the core competencies of the client organization.

A short list of basic examples include:

	1.	Typical security guard-related functions such as monitoring a parking lot during and after hours and responding appropriately. This scenario applies to perimeters, interior yard areas, and related similar environments.

	2.	Integrated hardware/software with AI-driven responses, simulating and expanding on what legacy or manned solutions could perform.

	3.	Automation of common access control functions through technology utilizing facial recognition and machine vision, leapfrogging most legacy solutions in use today.

RAD solutions are unique because they:

	1.	Start with an AI-driven autonomous response utilizing cellular-optimized communications, while easily connecting to a human operator for a manned response, as needed.

	2.	Use unique hardware purpose-built by RAD for delivery of these solutions. Various form factors have been customized to deliver this new functionality.

	3.	Deliver services through RAD-developed software and cloud services, allowing enterprise IT groups to focus on core competencies instead of maintenance of complex video and security platforms.

We encourage everyone to ensure they have the most up to date news by visiting AITX at AITX News - AITX - Artificial Intelligence Technology Solutions.

- 27 -

Management Discussion and Analysis

Results of Operations for the Three Months Ended November 30, 2023 and 2022

The following table shows our results of operations for the three months ended November 30, 2023 and 2022. The historical results presented below are not necessarily indicative of the results that may be expected for any future period.

	Period
	Three Months Ended			Three Months Ended			Change
	November 30, 2023			November 30, 2022			Dollars			Percentage
Revenues	$	596,980		$	402,399		$	194,581		48%
Gross profit		461,066			276,439			184,627		67%
Operating expenses		2,846,017			3,090,941			(244,924	)	(8%	)
Loss from operations		(2,384,951	)		(2,814,502	)		429,551		(15%	)
Other income (expense), net		(1,581,533	)		(1,271,158	)		(310,375)		24%
Net Loss	$	(3,966,484	)	$	(4,085,660	)	$	(119,176)		(3%	)

Revenue

The following table presents revenues from contracts with customers disaggregated by product/service:

	Three Months Ended		Three Months Ended		Change
	November 30, 2023		November 30, 2022		Dollars			Percentage
Device rental activities	$	416,062	$	154,628	$	261,434		169%
Direct sales of goods and services		180,918		247,771		(66,853	)	(27%	)
	$	596,980	$	402,399	$	194,581		48%

Total revenue for the three-month period ended November 30, 2023 was $596,980 which represented an increase of $194,581 compared to total revenue of $402,399 for the three months ended November 30, 2022. This increase is a result of higher rental activities in the current year’s quarter due to 84 new deployments this quarter.

Gross profit

Total gross profit for the three-month period ended November 30, 2023 was $461,066, which represented an increase of $184,627 compared to gross profit of $276,439 for the three months ended November 30, 2022. The gross profit increased due to the higher sales and higher proportion of rental activities at higher margins than direct sales. The gross profit % of 77% for the three-month period ended November 30, 2022 was higher than the gross profit % of 69% for the prior year’s corresponding period.

Operating Expenses

	Period
	Three Months Ended		Three Months Ended		Change
	November 30, 2023		November 30, 2022		Dollars			Percentage
Research and development	$	557,126	$	813,313	$	(256,187	)	(31%	)
General and administrative		2,009,047		2,123,768		(114,721	)	(5%	)
Depreciation and amortization		215,763		92,855		122,908		132%
Operating lease cost and rent		64,081		61,005		3,076		5%
Operating expenses	$	2,846,017	$	3,090,941	$	(244,924	)	(8%	)

- 28 -

Our operating expenses were comprised of general and administrative expenses, research and development, and depreciation. General and administrative expenses consisted primarily of professional services, automobile expenses, advertising, salaries and wages, travel expenses and consultants. Our operating expenses during the three-month period ended November 30, 2023 and November 30, 2022, were $2,847,017 and $3,090,941, respectively. The overall decrease of $244,924 was primarily attributable to the following changes in operating expenses of:

●	General and administrative expenses decreased by $114,721. In comparing the three months ended November 30, 2023 and November 30, 2022 this decrease was primarily due to the following decreases: stock based compensation by $28,598, sales and marketing by $79,451, travel by $30,478, insurance $35,606 and bad debts expense $77,135. These were partially offset by increases in the following accounts: subcontractors by $37,415, wages and salaries $72,071 and other G& A increases.

●	Research and development decreased by $256,187 due to due to a reduction in funding on development of future products.

●	Depreciation and amortization increased by $122,908 due to large increases in revenue earning devices, demo devices, tooling and computer equipment.

●	Operating lease cost and rent increased by $3,076 due to one less lease in the current period.

Other Income (Expense)

Other income (expense) during the three months ended November 30, 2023 and November 30, 2022, was ($1,581,533) and ($1,271,158), respectively. The $310,375 increase in other expense was primarily attributable to the increase in interest and debt amortization expense which is a result of higher loans in 2023.

Net loss

We had a net loss of $3,966,484 for the three months ended November 30, 2023, compared to a net loss of $4,085,660 for the three months ended November 30, 2022. The decrease in net loss of $119,176 is due to a number of factors: higher gross profit and lower general and administrative and other expense offset by higher other expenses in the three months ended November 30, 2023.

Results of Operations for the Nine Months Ended November 30, 2023 and 2022

The following table shows our results of operations for the nine months ended November 30, 2023 and 2022. The historical results presented below are not necessarily indicative of the results that may be expected for any future period.

Revenue

	Period
	Nine Months Ended			Nine Months Ended			Change
	November 30, 2023			November 30, 2022			Dollars			Percentage
Revenues	$	1,368,551		$	1,055,040		$	313,511		30%
Gross profit		1,052,112			601,142			450,970		75%
Operating expenses		9,431,292			10,090,732			(659,440	)	(7%	)
Loss from operations		(8,379,180	)		(9,489,590	)		1,110,410		(12%	)
Other income (expense), net		(4,902,225	)		(3,440,621	)		(1,461,604	)	42%
Net loss	$	(13,281,405	)	$	(12,930,211	)	$	(351,194	)	3%

The following table presents revenues from contracts with customers disaggregated by product/service:

	Nine Months Ended		Nine Months Ended		Change
	November 30, 2023		November 30, 2022		Dollars			Percentage
Device rental activities	$	997,754	$	622,647	$	375,107		60%
Direct sales of goods and services		370,797		432,393		(61,596	)	(14%	)
	$	1,368,551	$	1,055,040	$	313,511		30%

- 29 -

Total revenue for the nine-month period ended November 30, 2023 was $1,368,551 which represented an increase of $313,511 compared to total revenue of $1,055,040 for the nine months ended November 30, 2022. This 30% increase was because of higher rental activities due to 220 new deployments year to date November 30, 2023.

Gross profit

Total gross profit for the nine-month period ended November 30, 2023 was 1,052,112 which represented an increase of $450,970, compared to gross profit of $601,142 for the nine months ended November 30, 2022. The gross profit increased due to the 30% higher sales and higher proportion of rental activities at higher margins than direct sales. The gross profit % of 77% for the nine-month period ended November 30, 2023 was higher than the gross profit % of 57% for the prior year’s corresponding period.

Operating Expenses

	Period
	Nine Months Ended		Nine Months Ended		Change
	November 30, 2023		November 30, 2022		Dollars			Percentage
Research and development	$	2,243,431	$	2,800,834	$	(557,403	)	(20%	)
General and administrative		6,423,951		6,762,602		(338,651	)	(5%	)
Depreciation and amortization		574,746		332,643		242,103		73%
Operating lease cost and rent		189,164		194,653		(5,489	)	(3%	)
Operating expenses	$	9,431,292	$	10,090,732	$	(659,440	)	(7%	)

General and administrative expenses consisted primarily of professional services, automobile expenses, advertising, salaries and wages, travel expenses and consultants. Our operating expenses during the six-month period ended November 30, 2023 and November 30, 2022, were $9,431,292 and $10,090,732, respectively. The overall decrease of $659,440 was primarily attributable to the following changes in operating expenses of:

●	General and administrative expenses decreased by $338,651. In comparing the six months ended November 30, 2023 and November 30, 2022 the decrease may be partially explained by the following decreases: wages and salaries by $18,426, stock based compensation by $143,104, sales and marketing by $128,797, travel by $70,449 and bad debts expense $197,405. These were partially offset by increases in the following accounts: professional fees by $68,350, subcontractors by $63,956 , dues and subscriptions by $ $25,977 and other G& A increases.

●	Research and development decreased by $557,493 due to a reduction in funding on development of future products.

●	Depreciation and amortization increased by $242,103 due to the acquisition of ERP computer software, computer equipment tooling, and 220 new revenue earning devices.

●	Operating lease cost and rent decreased by $5,489 due to one less lease in the current period.

Other Income (Expense)

Other income (expense) during the nine months ended November 30, 2023 and November 30, 2022, was ($4,902,225) and (3,440,621), respectively. The 1,461,604 increase in other expense was primarily attributable to the increase in interest and debt amortization expense which is a result of higher loans in 2023.

Net loss

We had a net loss of $13,281,405 for the nine months ended November 30, 2023, compared to a net loss of $12,930,211 for the nine months ended November 30, 2022. The increase in net loss of $351,194 is primarily a result of higher other expenses consisting of interest and debt amortization costs. This increase was partially offset by higher gross profit and lower operating expenses.

- 30 -

Liquidity, Capital Resources and Cash Flows

Management believes that we will continue to incur losses for the immediate future. Therefore, we will need additional equity or debt financing until we can achieve profitability and positive cash flows from operating activities, if ever. These conditions raise substantial doubt about our ability to continue as a going concern. Our unaudited condensed consolidated financial statements do not include and adjustments relating to the recovery of assets or the classification of liabilities that may be necessary should we be unable to continue as a going concern.

As of November 30, 2023, we had a cash balance of $97,478, accounts receivable of $505,438, device parts inventory of $2,220,159 and $16,459,125 in current liabilities. At the current cash consumption rate, we will need to consider additional funding sources going forward. We are taking proactive measures to reduce operating expenses and drive growth in revenue.

The successful outcome of future activities cannot be determined at this time and there is no assurance that, if achieved, we will have sufficient funds to execute our intended business plan or generate positive operating results.

Capital Resources

The following table summarizes total current assets, liabilities and working capital (deficit) for the periods indicated:

	November 30, 2023			February 28, 2023
Current assets	$	3,514,315		$	3,438,992
Current liabilities		16,459,125			16,049,593
Working capital	$	(12,944,810	)	$	(12,610,601	)

As of November 30, 2023 and February 28, 2023, we had a cash balance of $97,478 and $939,759, respectively.

Summary of Cash Flows

Summary of Cash Flows	Nine Months Ended November 30, 2023			Nine Months Ended November 30, 2022
Net cash used in operating activities	$	(9,378,427	)	$	(9,883,272	)
Net cash used in investing activities	$	(10,044	)	$	(217,601	)
Net cash provided by financing activities	$	8,546,190		$	6,166,220

Net cash used in operating activities.

Net cash used in operating activities for the nine months ended November 30, 2023 was $9,378,427 which included a net loss of $13,281,405, non-cash activity such as the bad debts expense of $26,730, reduction of right of use asset of $88,378, accretion of lease liability $99,248, stock based compensation of $337,896, gain on settlement of debt of ($38,740) , change in operating assets and liabilities of $966,052, amortization of debt discount of $1,755,897, increase in related party accrued payroll and interest of $92,770 and depreciation and amortization of $574,746 to derive the uses of cash in operations.

Net cash used in investing activities.

Net cash used in investing activities for the nine months ended November 30, 2023 was $10,044 which was the purchase of fixed assets of $13,903 offset by reimbursement of security deposit $3,859.

Net cash provided by financing activities.

Net cash provided by financing activities was $8,546,100 for the nine months ended November 30, 2023. This consisted of share proceeds net of issuance costs of 7,527,190, proceeds from loans payable of $1,400,000, reduced by repayments on loans payable of $381,000.

Off-Balance Sheet Arrangements

None.

- 31 -

Critical Accounting Policies and Estimates

Critical accounting policies and estimates are further discussed in our Annual Report on Form 10-K for the year ended February 28, 2023, as filed on June 14, 2023.

Related Party Transactions

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable for a smaller reporting company.

ITEM 4. CONTROLS AND PROCEDURES

Management’s Report on Internal Control over Financial Reporting

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of November 30, 2023. Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of November 30, 2023, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed by us under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

	1.	As of November 30, 2023, we did not maintain effective controls over our control environment. Specifically, we have not developed and effectively communicated to our employees our accounting policies and procedures. This has resulted in inconsistent practices. Further, the Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.

	2.	As of November 30, 2023, we did not maintain effective controls over financial statement disclosure. Specifically, controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Accordingly, management has determined that this control deficiency constitutes a material weakness.

Our management, including our principal executive officer and principal financial officer, do not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

- 32 -

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

This item is not applicable to smaller reporting companies.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Each issuance of securities was issued without registration in reliance of the exemption from registration Section 3(a)9 of the Securities Act of 1933.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Company has not defaulted upon senior securities.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable to the Company.

ITEM 5. OTHER INFORMATION

None.

- 33 -

Device parts inventory, net

ITEM 6. EXHIBITS

Exhibit No.	Description of Document

3.1	Articles of Incorporation (1)

3.2	Bylaws (2)

14	Code of Ethics (2)

21	Subsidiaries of the Registrant (3)

31.1	Rule 13(a)-14(a)/15(d)-14(a) Certification of principal executive officer. (3)

31.2	Rule 13(a)-14(a)/15(d)-14(a) Certification of principal financial and accounting officer. (3)

32.1	Section 1350 Certification of principal executive officer. (3)

32.2	Section 1350 Certification of principal financial accounting officer. (3)

101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. (3)
101.SCH	Inline XBRL Taxonomy Extension Schema Document (3)
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (3)
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document (3)
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document (3)
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (3)
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) (3)

__________

(1)	Incorporated by reference to our Form 10-KT file with the Securities and Exchange Commission on March 12, 2018.

(2)	Incorporated by reference to our Form S-1 filed with the Securities and Exchange Commission on August 4, 2010.

(3)	Filed or furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Artificial Intelligence Technology Solutions Inc.


Date: January 16, 2024	BY: /s/ Steven Reinharz
	Steven Reinharz
	President, Chief Executive Officer (principal executive officer)


Date: January 16, 2024	BY: /s/ Anthony Brenz
	Anthony Brenz
	Chief Financial Officer (principal financial officer)

- 34 -

Exhibit 21.1

Artificial Intelligence Technology Solutions Inc.

Subsidiaries


Name		Jurisdiction of Incorporation
Robotic Assistance Devices, Inc.		Nevada
Robotic Assistance Devices Group, Inc.		Nevada
Robotic Assistance Devices Mobile, Inc.		Nevada

Exhibit 31.1

RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Steven Reinharz, certify that:

1. I have reviewed this Form 10-Q for the period ended November 30, 2023 of Artificial Intelligence Technology Solutions Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: January 16, 2024	BY: /s/ Steven Reinharz
	Steven Reinharz
	President, Chief Executive Officer (principal executive officer)

Exhibit 31.2

RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Anthony Brenz, certify that:

1. I have reviewed this Form 10-Q for the period ended November 30, 2023 of Artificial Intelligence Technology Solutions Inc.

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: January 16, 2024	BY: /s/ Anthony Brenz
	Anthony Brenz
	Chief Financial Officer (principal financial officer)

Exhibit 32.1

SECTION 1350 CERTIFICATION

In connection with the quarterly report of Artificial Intelligence Technology Solutions Inc. (the “Company”) on Form 10-Q for the period ended November 30, 2023 as filed with the Securities and Exchange Commission (the “Report”), I, Steven Reinharz, President of the Company, certify, pursuant to 18 U.S.C. SS. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:


1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.


Date: January 16, 2024	BY: /s/ Steven Reinharz
	Steven Reinharz
	President, Chief Executive Officer (principal executive officer)

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

Exhibit 32.2

SECTION 1350 CERTIFICATION

In connection with the quarterly report of Artificial Intelligence Technology Solutions Inc. (the “Company”) on Form 10-Q for the period ended November 30, 2023 as filed with the Securities and Exchange Commission (the “Report”), I, Anthony Brenz, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. SS. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:


1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.	The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.


Date: January 16, 2024	BY: /s/ Anthony Brenz
	Anthony Brenz
	Chief Financial Officer (principal financial officer)

Cover - shares	9 Months Ended
Cover - shares	Nov. 30, 2023	Jan. 03, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Nov. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--02-28
Entity File Number	000-55079
Entity Registrant Name	ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC.
Entity Central Index Key	0001498148
Entity Tax Identification Number	27-2343603
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	10800 Galaxie Avenue
Entity Address, City or Town	Ferndale
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48220
City Area Code	877
Local Phone Number	787-6268
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,354,693,227

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)

Nov. 30, 2023

Feb. 28, 2023

Current assets:

Cash

$ 97,478

$ 939,759

^[1]

Accounts receivable, net

505,438

265,024

^[1]

2,220,159

1,637,899

^[1]

Prepaid expenses and deposits

691,240

596,310

^[1]

Total current assets

3,514,315

3,438,992

^[1]

Operating lease asset

1,115,447

1,208,440

^[1]

Revenue earning devices, net of accumulated depreciation of $1,209,664 and $779,839, respectively

2,111,896

1,235,219

^[1]

Fixed assets, net of accumulated depreciation of $326,921 and $182,002, respectively

300,300

315,888

^[1]

Trademarks

27,080

^[1]

Investment at cost

50,000

^[1]

Security deposit

17,380

21,239

^[1]

Total assets

7,136,418

6,296,858

^[1]

Current liabilities:

Accounts payable and accrued expenses

1,539,601

1,343,379

^[1]

Advances payable- related party

1,594

^[1]

Customer deposits

78,467

9,900

^[1]

Current operating lease liability

229,016

248,670

^[1]

Current portion of deferred variable payment obligation

764,702

542,177

^[1]

Loan payable - related party

299,286

206,516

^[1]

Incentive compensation plan payable

1,166,000

979,000

^[1]

Current portion of loans payable, net of discount of $1,129,801 and $1,651,597

8,349,678

9,918,389

^[1]

Vehicle loan - current portion

38,522

^[1]

Current portion of accrued interest payable

3,992,259

2,761,446

^[1]

Total current liabilities

16,459,125

16,049,593

^[1]

Non-current operating lease liability

881,816

950,541

^[1]

Loans payable, net of discount of $4,305,396 and $4,130,291, respectively

18,688,471

15,554,069

^[1]

Deferred variable payment obligation

2,525,000

^[1]

Accrued interest payable

4,774,660

3,060,656

^[1]

Total liabilities

43,329,072

38,139,859

^[1]

Common Stock, $0.00001 par value; 10,000,000,000 shares authorized 7,715,143,227 and 5,848,741,599 shares issued, issuable and outstanding, respectively

^[1]

77,152

58,489

^[1]

Additional paid-in capital

89,160,341

80,247,252

^[1]

Preferred stock to be issued

99,086

^[1]

Accumulated deficit

(125,535,116)

(112,253,711)

^[1]

Total stockholders' deficit

(36,192,654)

(31,843,001)

^[1]

Total liabilities and stockholders' deficit

7,136,418

6,296,858

^[1]

Series G Preferred Stock [Member]

Series E Preferred Stock [Member]

^[1]

Total stockholders' deficit

3,350

^[1]

3,350

Series F Preferred Stock [Member]

Total stockholders' deficit

2,533

^[1]

$ 101,619

[1]	Derived from audited information

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Accumulated depreciation, revenue earning devices	$ 1,209,664	$ 779,839
Accumulated depreciation, fixed assets	326,921	182,002
Discount of current portion of loans payable	1,129,801	1,651,597
Discount of loans payable	$ 4,305,396	$ 4,130,291
Preferred stock, authorized	15,545,650	15,545,650
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per shares)	$ 0.00001	$ 0.00001
Common stock, authorized	10,000,000,000	10,000,000,000
Common stock, shares, issued	7,715,143,227	5,848,741,599
Common stock, shares, outstanding	7,715,143,227	5,848,741,599
Series G Preferred Stock [Member]
Preferred stock, authorized	100,000	100,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Preferred stock, par value (in dollars per shares)	$ 0.001	$ 0.001
Series E Preferred Stock [Member]
Preferred stock, authorized	4,350,000	4,350,000
Preferred stock, shares issued	3,350,000	3,350,000
Preferred stock, shares outstanding	3,350,000	3,350,000
Preferred stock, par value (in dollars per shares)	$ 0.001	$ 0.001
Series F Preferred Stock [Member]
Preferred stock, authorized	4,350	4,350
Preferred stock, shares issued	2,533	2,533
Preferred stock, shares outstanding	2,533	2,533
Preferred stock, par value (in dollars per shares)	$ 1.00	$ 1.00

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Income Statement [Abstract]
Revenues	$ 596,980	$ 402,399	$ 1,368,551	$ 1,055,040
Cost of Goods Sold	135,914	125,960	316,439	453,898
Gross Profit	461,066	276,439	1,052,112	601,142
Operating expenses:
Research and development (Note 10)	557,126	813,313	2,243,431	2,800,834
General and administrative	2,009,047	2,123,768	6,423,951	6,762,602
Depreciation and amortization	215,763	92,855	574,746	332,643
Operating lease cost and rent	64,081	61,005	189,164	194,653
Total operating expenses	2,846,017	3,090,941	9,431,292	10,090,732
Loss from operations	(2,384,951)	(2,814,502)	(8,379,180)	(9,489,590)
Other income (expense), net:
Change in fair value of derivative liabilities				3,595
Interest expense	(1,581,533)	(1,271,158)	(4,940,965)	(3,448,208)
Gain (loss) on settlement of debt			38,740	3,992
Total other income (expense), net	(1,581,533)	(1,271,158)	(4,902,225)	(3,440,621)
Net Loss	$ (3,966,484)	$ (4,085,660)	$ (13,281,405)	$ (12,930,211)
Net income (loss) per share - basic	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Net income ( loss) per share - diluted	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Weighted average common share outstanding - basic	7,294,775,879	5,140,405,652	6,606,988,956	4,969,080,716
Weighted average common share outstanding - diluted	7,294,775,879	5,140,405,652	6,606,988,956	4,969,080,716

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' DEFICIT (Unaudited) - USD ($)

Series E Preferred Stock [Member]

Series F Preferred Stock [Member]

Common Stock [Member]

Additional Paid-in Capital [Member]

Retained Earnings [Member]

Total

Beginning balance, value at Feb. 28, 2022

$ 3,350

$ 101,618

$ 47,353

$ 73,015,576

$ (94,144,254)

$ (20,976,357)

Beginning balance, (in shares) at Feb. 28, 2022

3,350,000

2,532

4,735,210,360

Issuance of shares, net of issuance costs (in shares)

$ 1,339

1,643,883

1,645,222

133,881,576

Rounding

(1)

Ending balance, value at May. 31, 2022

(4,671,686)

$ 3,350

$ 101,618

$ 48,692

74,659,458

(98,815,940)

(24,002,822)

Ending balance, (in shares) at May. 31, 2022

3,350,000

2,532

4,869,091,936

Beginning balance, value at Feb. 28, 2022

$ 3,350

$ 101,618

$ 47,353

73,015,576

(94,144,254)

(20,976,357)

Beginning balance, (in shares) at Feb. 28, 2022

3,350,000

2,532

4,735,210,360

Ending balance, value at Nov. 30, 2022

(12,930,211)

$ 3,350

$ 101,619

$ 52,607

76,421,377

(107,074,465)

(30,495,512)

Ending balance, (in shares) at Nov. 30, 2022

3,350,000

2,533

5,260,515,892

Beginning balance, value at May. 31, 2022

$ 3,350

$ 101,618

$ 48,692

74,659,458

(98,815,940)

(24,002,822)

Beginning balance, (in shares) at May. 31, 2022

3,350,000

2,532

4,869,091,936

Issuance of shares, net of issuance costs (in shares)

$ 1,917

1,889,350

1,891,267

191,691,135

Cashless exercise of warrants

(4,172,865)

$ 97

(97)

Cashless exercise of warrants (in shares)

9,688,179

Relative fair value of warrants issued with debt

404,374

Cancelled shares

$ (171)

171

Cancelled Shares (in shares)

(17,116,894)

Exchange of 955,000,000 warrants for debt

(2,960,500)

Shares as payment for services

$ 100

118,400

118,500

Shares as payment for services (in shares)

10,000,000

Ending balance, value at Aug. 31, 2022

$ 3,350

$ 101,618

$ 50,635

74,111,156

(102,988,805)

(28,722,046)

Ending balance, (in shares) at Aug. 31, 2022

3,350,000

2,532

5,063,354,356

Issuance of shares, net of issuance costs (in shares)

$ 1,972

1,119,518

1,121,490

197,161,536

Relative fair value of warrants issued with debt

(4,085,660)

(10,424)

Relative fair value of Series F warrants issued with debt

$ 1

1,201,127

1,201,128

Relative fair value of Series F warrants issued with debt (in shares)

Ending balance, value at Nov. 30, 2022

$ 3,350

$ 101,619

$ 52,607

76,421,377

(107,074,465)

(30,495,512)

Ending balance, (in shares) at Nov. 30, 2022

3,350,000

2,533

5,260,515,892

Beginning balance, value at Feb. 28, 2023

$ 3,350

$ 101,619

$ 58,489

80,247,252

112,253,711

(31,843,001)

^[1]

Beginning balance, (in shares) at Feb. 28, 2023

3,350,000

2,533

5,848,741,599

Issuance of shares, net of issuance costs (in shares)

$ 2,809

1,316,100

1,318,909

280,929,190

Relative fair value of Series F warrants issued with loans payable

(4,555,193)

947,447

Stock based compensation

52,721

Ending balance, value at May. 31, 2023

$ 3,350

$ 101,619

$ 61,298

82,563,520

116,808,904

(34,079,117)

Ending balance, (in shares) at May. 31, 2023

3,350,000

2,533

6,129,670,789

Beginning balance, value at Feb. 28, 2023

$ 3,350

$ 101,619

$ 58,489

80,247,252

112,253,711

(31,843,001)

^[1]

Beginning balance, (in shares) at Feb. 28, 2023

3,350,000

2,533

5,848,741,599

Ending balance, value at Nov. 30, 2023

(13,281,405)

$ 3,350

$ 101,619

$ 77,152

89,160,341

125,535,116

(36,192,654)

Ending balance, (in shares) at Nov. 30, 2023

3,350,000

2,533

7,715,143,227

Beginning balance, value at May. 31, 2023

$ 3,350

$ 101,619

$ 61,298

82,563,520

116,808,904

(34,079,117)

Beginning balance, (in shares) at May. 31, 2023

3,350,000

2,533

6,129,670,789

Issuance of shares, net of issuance costs (in shares)

$ 9,036

4,787,087

4,796,123

903,636,004

Shares as payment for services

(4,759,728)

$ 65

44,395

44,460

Shares as payment for services (in shares)

6,500,000

Stock based compensation

50,713

Ending balance, value at Aug. 31, 2023

$ 3,350

$ 101,619

$ 70,399

87,445,715

(121,568,632)

(33,947,549)

Ending balance, (in shares) at Aug. 31, 2023

3,350,000

2,533

7,039,806,793

Issuance of shares, net of issuance costs (in shares)

$ 6,753

1,405,405

1,412,158

675,336,434

Relative fair value of Series F warrants issued with debt

3,966,484

(3,966,484)

261,759

Stock based compensation

47,462

Ending balance, value at Nov. 30, 2023

$ 3,350

$ 101,619

$ 77,152

$ 89,160,341

$ 125,535,116

$ (36,192,654)

Ending balance, (in shares) at Nov. 30, 2023

3,350,000

2,533

7,715,143,227

[1]	Derived from audited information

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' DEFICIT (Unaudited) (Parenthetical) - USD ($)	3 Months Ended
	Nov. 30, 2023	Aug. 30, 2023	May 31, 2023	Nov. 30, 2022	Aug. 31, 2022	May 31, 2022
Statement of Stockholders' Equity [Abstract]
Issuance cost of shares	$ 56,320	$ 176,672	$ 81,285	$ 68,732	$ 95,293	$ 117,157
Exchange of warrants for debt issuance					955,000,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022
CASH FLOWS USED IN OPERATING ACTIVITIES:
Net loss	$ (13,281,405)	$ (12,930,211)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	574,746	332,643
Bad debts expense	26,730	224,215
Inventory provision		90,000
Reduction of right of use asset	88,378	84,298
Accretion of lease liability	99,248	107,187
Stock based compensation	337,896	481,000
Change in fair value of derivative liabilities		(3,595)
Amortization of debt discounts	1,755,897	1,094,388
(Gain) loss on settlement of debt	(38,740)	(3,992)
Increase in related party accrued payroll and interest	92,770	9,720
Changes in operating assets and liabilities:
Accounts receivable	(267,144)	(258,790)
Prepaid expenses	(90,315)	(224,476)
Device parts inventory	(2,004,189)	(805,257)
Accounts payable and accrued expenses	266,666	197,317
Customer deposits	68,567	(7,617)
Operating lease liabilities	(174,874)	(191,485)
Current portion of deferred variable payment obligation for payments	222,525	171,550
Accrued interest payable	2,944,817	1,749,833
Net cash used in operating activities	(9,378,427)	(9,883,272)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of fixed assets	(13,903)	(217,601)
Acquisition of trademarks
Reimbursement of security deposit	3,859
Net cash used in investing activities	(10,044)	(217,601)
CASH FLOWS FROM FINANCING ACTIVITIES:
Share proceeds net of issuance costs	7,527,190	4,657,979
Proceeds from loans payable	1,400,000	2,600,000
Repayment of loans payable	(381,000)	(1,711,009)
Proceeds from convertible debt and warrants issued		619,250
Net cash provided by financing activities	8,546,190	6,166,220
Net change in cash	(842,281)	(3,934,653)
Cash, beginning of period	939,759	4,648,146
Cash, end of period	97,478	713,493
Supplemental disclosure of cash and non-cash transactions:
Cash paid for interest	17,726	405,117
Cash paid for income taxes
Noncash investing and financing activities:
Transfer from device parts inventory to revenue earning devices	1,421,979	672,534
Shares issued for services	44,460
Exchange of warrants for debt		3,000,000
Discount applied to face value of loans	200,000	434,500
Warrants issued as part of debt	1,209,206
Exercise of warrants		97
Series F preferred shares and warrants issued for debt		1,240,628
Cancellation of Series E preferred shares and common shares		$ 171

GENERAL INFORMATION

9 Months Ended

Nov. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL INFORMATION

1. GENERAL INFORMATION

GOING CONCERN

9 Months Ended

Nov. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

2. GOING CONCERN

Management has plans to address the Company’s financial situation as follows:

Management is committed to raise either non-dilutive funds or minimally dilutive funds. There is no assurance that these funds will be able to be raised nor can we provide assurance that these possible raises may not have dilutive effects. The Company year to date November 30, 2023 has raised an additional $7.5 million net of issuance costs through the sale of its common shares and an additional $1.4 million through the issuance of debt. The Company has raised an additional $1.5 million net of issuance costs through the sale of its common shares subsequent to quarter end through to reporting date.

ACCOUNTING POLICIES

9 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

ACCOUNTING POLICIES

3. ACCOUNTING POLICIES

Basis of Presentation and Consolidation

Use of Estimates

Concentrations

Loans payable

Cash

Accounts Receivable

Device Parts Inventory

Revenue Earning Devices

Fixed Assets

Computer equipment and software		2 or 3 years
Office equipment		4 years
Manufacturing equipment		7 years
Warehouse equipment		5 years
Tooling		2 years
Demo Devices		4 years
Vehicles		3 years
Leasehold improvements		5 years, the life of the lease

Research and Development

Contingencies

Sales of Future Revenues

	●	Does the agreement purport, in substance, to be a sale
	●	Does the Company have continuing involvement in the generation of cash flows due the investor
	●	Is the transaction cancellable by either party through payment of a lump sum or other transfer of assets
	●	Is the investors rate of return is implicitly limited by the terms of the agreement
	●	Does the Company’s revenue for a reporting period underlying the agreement have only a minimal impact on the investor’s rate of return
	●	Does the investor have recourse relating to payments due

Revenue Recognition

Income Taxes

Leases

Distinguishing Liabilities from Equity

Initial Measurement

The Company records its financial instruments classified as liability, temporary equity or permanent equity at issuance at the fair value, or cash received.

Subsequent Measurement – Financial Instruments Classified as Liabilities

Fair Value of Financial Instruments

ASC Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”) provides a framework for measuring fair value in accordance with generally accepted accounting principles.

	●	Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

	●	Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

	●	Level 3 – Inputs that are unobservable for the asset or liability.

Measured on a Recurring Basis

The following table presents information about our liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell:

			Fair Value Measurement Using
	Amount at Fair Value		Level 1		Level 2		Level 3
November 30, 2023
Liabilities
Incentive compensation plan payable- revaluation of equity awards payable in Series G shares	$	1,166,000	$	—	$	—	$	1,166,000

February 28, 2023
Liabilities
Incentive compensation plan payable- revaluation of equity awards payable in Series G shares	$	979,000	$	—	$	—	$	979,000

Earnings (Loss) per Share

Recently Issued Accounting Pronouncements

Recently Issued Accounting Standards Not Yet Adopted

REVENUE FROM CONTRACTS WITH CUSTOMERS

9 Months Ended

Nov. 30, 2023

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

4. REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table presents revenues from contracts with customers disaggregated by product/service:

	Three Months Ended November 30, 2023		Three Months Ended November 30, 2022		Nine Months Ended November 30, 2023		Nine Months Ended November 30, 2022
Device rental activities	$	416,062	$	154,628	$	997,754	$	622,647
Direct sales of goods and services		180,918		247,771		370,797		432,393
Revenues	$	596,980	$	402,399	$	1,368,551	$	1,055,040

LEASES

9 Months Ended

Nov. 30, 2023

Leases

LEASES

5. LEASES

Below is a summary of our lease assets and liabilities at November 30, 2023 and February 28, 2023.

Leases	Classification	November 30, 2023		February 28, 2023
Assets
Operating	Operating Lease Assets	$	1,115,447	$	1,208,440
Liabilities
Current
Operating	Current Operating Lease Liability	$	229,016	$	248,670
Noncurrent
Operating	Noncurrent Operating Lease Liabilities		881,816		950,541
Total lease liabilities		$	1,110,832	$	1,199,211

REVENUE EARNING DEVICES

9 Months Ended

Nov. 30, 2023

Revenue Earning Devices

REVENUE EARNING DEVICES

6. REVENUE EARNING DEVICES

Revenue earning devices consisted of the following:

	November 30, 2023			February 28, 2023
Revenue earning devices	$	3,321,560		$	2,015,058
Less: Accumulated depreciation		(1,209,664	)		(779,839	)
Total	$	2,111,896		$	1,235,219

FIXED ASSETS

9 Months Ended

Nov. 30, 2023

Property, Plant and Equipment [Abstract]

FIXED ASSETS

7. FIXED ASSETS

Fixed assets consisted of the following:

	November 30, 2023			February 28, 2023
Automobile	$	101,680		$	101,680
Demo devices		184,438			69,010
Tooling		101,322			101,322
Machinery and equipment		8,825			8,825
Computer equipment		150,387			150,387
Office equipment		15,312			15,312
Furniture and fixtures		21,225			21,225
Warehouse equipment		17,076			14,561
Leasehold improvements		26,956			15,568
		627,221			497,890
Less: Accumulated depreciation		(326,921	)		(182,002	)
	$	300,300		$	315,888

DEFERRED VARIABLE PAYMENT OBLIGATION

9 Months Ended

Nov. 30, 2023

Deferred Variable Payment Obligation

DEFERRED VARIABLE PAYMENT OBLIGATION

8. DEFERRED VARIABLE PAYMENT OBLIGATION

On May 9, 2019 the Company entered into two similar arrangements with two investors:

	(1)	The investor would pay up to $400,000 in exchange for a perpetual 4% rate Payment on the Company’s reported quarterly Revenues. At February 29, 2020, $400,000 has been paid to the Company.

	(2)	The investor would pay up to $50,000 in exchange for a perpetual 1.11% rate Payment on the Company’s reported quarterly Revenues. At February 29, 2020, $50,000 has been paid to the Company.

On March 1, 2021, the first investor referred to above whose aggregate investment is $1,925,000 revised his agreements as follows:

	1)	The rate payment was reduced from 14.25 % to 9.65 %
	2)	The asset disposition % (see below) was reduced from 31 % to 21%

RELATED PARTY TRANSACTIONS

9 Months Ended

Nov. 30, 2023

RELATED PARTY TRANSACTIONS

9. RELATED PARTY TRANSACTIONS

OTHER DEBT – VEHICLE LOAN

9 Months Ended

Nov. 30, 2023

Other Debt Vehicle Loan

OTHER DEBT – VEHICLE LOAN

10. OTHER DEBT – VEHICLE LOAN

LOANS PAYABLE

9 Months Ended

Nov. 30, 2023

Loans Payable

LOANS PAYABLE

11. LOANS PAYABLE

Loans payable at November 30, 2023 consisted of the following:

							Annual
Date	Maturity	Description		Principal			Interest Rate
July 18, 2016	July 18, 2017	Promissory note	(1) *	$	3,500		22%
December 10, 2020	March 1, 2025	Promissory note	(2)		3,921,168		12%
December 10, 2020	March 1, 2025	Promissory note	(3)		2,754,338		12%
December 10, 2020	December 10, 2023	Promissory note	(4)		165,605		12%
December 14, 2020	December 14, 2023	Promissory note	(5)		310,375		12%
December 30, 2020	March 1, 2025	Promissory note	(6)		350,000		12%
January 1, 2021	March 1, 2025	Promissory note	(7)		25,000		12%
January 1, 2021	March 1, 2025	Promissory note	(8)		145,000		12%
January 14, 2021	March 1, 2025	Promissory note	(9)		550,000		12%
February 22, 2021	March 1, 2025	Promissory note	(10)		1,650,000		12%
March 1, 2021	March 1, 2024	Promissory note	(11)		6,000,000		12%
June 8, 2021	June 8, 2024	Promissory note	(12)		2,750,000		12%
July 12, 2021	July 26, 2026	Promissory note	(13)		3,803,360		7%
September 14, 2021	September 14, 2024	Promissory note	(14)		1,650,000		12%
July 28, 2022	March 1, 2025	Promissory note	(15)		170,000		15%
August 30, 2022	August 30,2024	Promissory note	(16)		3,000,000		15%
September 7, 2022	March 1, 2025	Promissory note	(17)		400,000		15%
September 8, 2022	March 1, 2025	Promissory note	(18)		475,000		15%
October 13, 2022	March 1, 2025	Promissory note	(19)		350,000		15%
October 28, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
November 9, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
November 10, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
November 15, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
January 11, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
February 6, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
April 5. 2023	October 31, 2026	Promissory note	(20)		400,000		15%
April 20, 23	October 31, 2026	Promissory note	(20)		400,000		15%
May 11, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
October 27, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
November 30, 2023	October 31, 2025	Purchase Agreement	(21) **		—		35%
				$	32,473,346

Less: current portion of loans payable					(9,479,479	)
Less: discount on non-current loans payable					(4,305,396	)
Non-current loans payable, net of discount				$	18,688,471

Current portion of loans payable				$	9,479,479
Less: discount on current portion of loans payable					1,129,801
Current portion of loans payable, net of discount				$	8,349,678

*	In default
**	Funds received December 1 , 2023, after reporting period.

(1)	This note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions placed on the lender.

(2)	This promissory note was issued as part of a debt settlement whereby $2,683,357 in convertible notes and associated accrued interest of $1,237,811 totaling $3,921,168 was exchanged for this promissory note of $3,921,168, and a warrant to purchase 450,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a relative fair value of $990,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(3)	This promissory note was issued as part of a debt settlement whereby $1,460,794 in convertible notes and associated accrued interest of $1,593,544 totaling $3,054,338 was exchanged for this promissory note of $3,054,338, and a warrant to purchase 250,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a relative fair value of $550,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. $100,000 and $300,000 has been repaid the three and nine months ended November 30, 2023. The balance at November 30,2023 is now $2,754,338. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(4)	This promissory note was issued as part of a debt settlement whereby $103,180 in convertible notes and associated accrued interest of $62,425 totaling $165,605 was exchanged for this promissory note of $165,605, and a warrant to purchase 80,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a fair value of $176,000.

(5)	This promissory note was issued as part of a debt settlement whereby $235,000 in convertible notes and associated accrued interest of $75,375 totaling $310,375 was exchanged for this promissory note of $310,375, and a warrant to purchase 25,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a fair value of $182,500.

(6)	The note, with an original principal amount of $350,000, may be pre-payable at any time. The note balance includes an original issue discount of $35,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $0.025 per share with a 3-year term and having a relative fair value of $271,250. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $271,250 with a corresponding adjustment to paid in capital for the relative fair value of the warrant. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $12,878 and $105,538, respectively, with an unamortized discount of $31,106 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(7)	This promissory note was issued as part of a debt settlement whereby $9,200 in convertible notes and associated accrued interest of $6,944 totaling $16,144 was exchanged for this promissory note of $25,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from January 1, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(8)	This promissory note was issued as part of a debt settlement whereby $79,500 in convertible notes and associated accrued interest of $28,925 totaling $108,425 was exchanged for this promissory note of $145,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from January 1, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(9)	The note, with an original principal amount of $550,000, may be pre-payable at any time. The note balance includes an original issue discount of $250,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $0.025 per share with a 3-year term and having a relative fair value of $380,174. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $380,174 with a corresponding adjustment to paid in capital. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $16,718 and $129,906 respectively, with an unamortized discount of $50,493 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from January 14, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(10)	The note, with an original principal balance of $1,650,000, may be pre-payable at any time. The note balance includes an original issue discount of $150,000 and was issued with a warrant to purchase 100,000,000 shares at an exercise price of $0.135 per share with a 3-year term and having a relative fair value of $1,342,857. The discount and warrant are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $1,342,857 with a corresponding adjustment to paid in capital for the relative fair value of the warrant. The maturity date was extended from February 22, 2022 to February 22, 2024 on February 28, 2022 in exchange for warrants to purchase 50,000,000 at an exercise price of $.0164 and a 3-year term. These warrants have a fair value of $950,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $82,499 and $462,320 respectively, with an unamortized discount of $426,061 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from February 22, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(11)	The unsecured note may be pre-payable at any time. Cash proceeds of $5,400,000 were received. The note balance of $6,000,000 includes an original issue discount of $600,000 and was issued with a warrant to purchase 300,000,000 shares at an exercise price of $0.135 per share with a 3-year term and having a relative fair value of $4,749,005 using Black-Scholes with assumptions described in note 13. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $4,749,005 with a corresponding adjustment to paid in capital for the relative value of the warrant.. The maturity was extended from March 1, 2022 to March 1, 2024 on February 28, 2022 in exchange for warrants to purchase 150,000,000 shares of common stock at an exercise price of $.0164 and a 3 year term. These warrants have a fair value of $2,850,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. This note has been fully amortized.

(12)	The note, with an original principal balance of $2,750,000, may be pre-payable at any time. The note balance includes an original issue discount of $50,000 and was issued with a warrant to purchase 170,000,000 shares at an exercise price of $0.064 per share with a 3-year term and having a relative fair value of $2,035,033. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $2,035,033 with a corresponding adjustment to paid in capital. The maturity date was extended from June 8, 2022 to June 8, 2024 on February 28, 2022 in exchange for warrants to purchase 85,000,000 at an exercise price of $.0164 and a 3 year term. These warrants have a fair value of $1,615,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $199,482 and $530,181 respectively, with an unamortized discount of $264,037 at November 30, 2023.

(13)	This loan, with an original principal balance of $4,000,160, was in exchange for 184 Series F preferred shares from a former director. The interest and principal are payable at maturity. The loan is unsecured. For the three and nine months ended November 30, 2023 there were repayments of $27,000 and $81,000 . respectively on the note.

(14)	The note, with an original principal balance of $1,650,000, may be pre-payable at any time. The note balance includes an original issue discount of $150,000 and was issued with a warrant to purchase 250,000,000 shares at an exercise price of $0.037 per share with a 3-year term and having a relative fair value of $1,284,783, The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $1,284,783 with a corresponding adjustment to paid in capital. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $146,393 and $348,667 respectively, with an unamortized discount of $865,764 at November 30, 2023.

(15)	Original $170,000 note may be pre-payable at any time. The note balance includes an original issue discount of $20,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $9,026 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from July 28, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(16)	A warrant holder exchanged 955,000,000 warrants for a promissory note of $3,000,000, bearing interest at 15% with a two year maturity. The fair value of the warrants was determined to be $2,960,500 with a corresponding adjustment to paid-in capital and a debt discount of $39,500 which will be amortized over the term of the loan. Principal and interest due at maturity. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $4,923 and $14,216 respectively, with an unamortized discount of $16,552 at November 30, 2023.

(17)	Original $400,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $27,821 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from September 7, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(18)	Original $475,000 note may be pre-payable at any time. The note balance includes an original issue discount of $75,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $36,729 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from September 8, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(19)	Original $350,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest due at maturity. Secured by a general security charging all of the Company’s s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $13,295 and $25,585 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from October 13, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(20)	On October 28, 2022 the Company entered into an loan facility with a lender for up to $4,000,000 including an original issue discount of $500,000. In exchange the Company will issue one series F Preferred Share, extended 329 series F warrants with a March 1, 2026 maturity to a new October 31, 2033 maturity, and issue up to 10 tranches with each tranche of $400,000, with cash proceeds of $350,000 an original issue discount of $50,000, October 31, 2026 maturity, and 61 Series F warrants with a October 31, 2033 maturity. Secured by a general security charging all of the Company’s present and after-acquired property. At November 30, 2022 the Company has issued 6 tranches as follows: October 28, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants and 1 Series F Preferred Share having a relative fair value of $299,399. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,274 and $7,613 respectively, with an unamortized discount of $340,411 at November 30, 2023. November 9, 2022, $400,000 loan, original issue discount of $50,000 , 61 Series F Preferred Share warrants having a relative fair value of $299,750. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $3,234 and $7,510 respectively, with an unamortized discount of $340,929 at November 30, 2023. November 10, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $302,020. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,991 and $6,891 respectively, with an unamortized discount of $343,990 at November 30, 2023. November 15, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three nine months ended November 30, 2023, the Company recorded amortization expense of $3,295 and $7,665 respectively, with an unamortized discount of $340,151 at November 30, 2023. January 11, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,355 and $7,821 respectively, with an unamortized discount of $339,368 at November 30, 2023. February 6, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,231 and $7,503 respectively, with an unamortized discount of $340,923 at November 30, 2023. April 5, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $296,245. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,335 and $6,608 respectively, with an unamortized discount of $339,637 at November 30, 2023. April 20, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $302,219. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,723 and $4,930 respectively, with an unamortized discount of $347,290 at November 30, 2023. May 11, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $348,983. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $0 respectively, with an unamortized discount of $398,983 at November 30, 2023. October 27 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $261,759. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,044 and $2,044 respectively, with an unamortized discount of $309,715 at November 30, 2023.

(21)	On November 30, 2023 , the Company entered into an agreement where the lender will buy pay the Company $350,000 in exchange for thirteen future monthly payments of $36,750 commencing on April 30,2024 through to April 30, 2025 totaling $477,750. The effective interest rate is 35% per annum. As the proceeds were received on December 1, 2023 , this loan will be recorded next quarter. Secured by a general security charging all of RAD’s present and after-acquired property. Default rate of 15% per annum calculated daily on any missed monthly payment.

STOCKHOLDERS’ EQUITY (DEFICIT)

9 Months Ended

Nov. 30, 2023

Equity [Abstract]

STOCKHOLDERS’ EQUITY (DEFICIT)

12. STOCKHOLDERS’ EQUITY (DEFICIT)

Summary or Preferred Stock Activity

No preferred stock activity during the period.

Summary of Preferred Stock Warrant Activity

	Number of Series F Preferred Warrants	Weighted Average Exercise Price	Weighted Average Remaining Years
Outstanding at March 1, 2023	695	$1.00	10.00
Issued	244	1.00	9.88
Exercised	—	—	—
Forfeited and cancelled	—	—	—
Outstanding at November 30, 2023	939	$1.00	9.50

During the nine months ended November 30, 2023, as part of debt issuance the Company issued 244 Series F Preferred Warrants to a lender for a relative fair value of $1,209,206. (see Note 11)

Summary of Common Stock Activity

The Company increased authorized common shares from 7,225,000,000 to 10,000,000,000 on August 30, 2023.

For the three months ended November 30, 2023, the Company issued 675,336,434 common shares with gross proceeds of $1,468,477 and net proceeds of $1,412,158 after issuance costs of $56,320.

The table below represent the common shares issued, issuable and outstanding at November 30, 2023 and February 28, 2023:

Common shares	November 30, 2023		February 28, 2023
Issued		7,715,143,227		5,836,641,599
Issuable		—		12,100,000
Issued, issuable and outstanding		7,715,143,227		5,848,741,599

Summary of Common Stock Warrant Activity

	Number of Warrants	Weighted Average Exercise Price	Weighted Average Remaining Years
Outstanding at February 28, 2023	314,217,451	$0.114	1.95
Issued	—	—	—
Exercised	—	—	—
Forfeited and cancelled	—	—	—
Outstanding at November 30, 2023	314,217,451	$0.114	1.20

Summary of Common Stock Option Activity -Employee Stock Options

	Number of Options		Weighted Average Exercise Price	Weighted Average Remaining Years
Outstanding at February 28 , 2023	95,725,000		$0.02	4.75
Issued	—		—	—
Exercised	—		—	—
Forfeited, extinguished and cancelled	(21,275,000	)	$0.02	(4.60)
Outstanding at August 31, 2023	74,450,000		$0.02	4.00

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Nov. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

13. COMMITMENTS AND CONTINGENCIES

Litigation

Occasionally, the Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision for a liability when it believes that is both probable that a liability has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s condensed consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions.

The related legal costs are expensed as incurred.

Operating Lease

Summary of rent expense and operating lease cost are recorded over the lease terms on a straight-line basis.

Maturity of Lease Liabilities	Operating Leases
November 30, 2024	$	229,016
November 30, 2025		207,558
November 30, 2026		207,558
November 30, 2027		207,558
November 30, 2028		207,558
November 30, 2029 and after		501,599
Total lease payments		1,560,847
Less: Interest		(450,015	)
Present value of lease liabilities	$	1,110,832

EARNINGS (LOSS) PER SHARE

9 Months Ended

Nov. 30, 2023

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

14. EARNINGS (LOSS) PER SHARE

The net income (loss) per common share amounts were determined as follows:


	For the Three Months Ended						For the Nine Months Ended
	November 30,						November 30,
	2023			2022			2023			2022
Numerator:
Net income (loss) available to common shareholders	$	(3,966,484	)	$	(4,085,660	)	$	(13,281,405	)	$	(12,930,211	)

Effect of common stock equivalents
Add: interest expense on convertible debt		—			22,438			—			27,863
Add: amortization of debt discount		—			78,149			—			90,767
Add (less) loss (gain) on settlement of debt		—			—			—			(3,992	)
Add (less) loss (gain) on change of derivative liabilities		—			—			—			(3,595	)
Net income (loss) adjusted for common stock equivalents		(3,966,484	)		(3,985,073	)		(13,281,405	)		(12,819,168	)

Denominator:
Weighted average shares – basic		7,294,775,879			5,140,405,652			6,606,988,956			4,969,080,176

Net income (loss) per share – basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Dilutive effect of common stock equivalents:
Convertible Debt		—			—			—			—
Preferred shares		—			—			—			—
Warrants		—			—			—			—
		—			—			—			—
Denominator:
Weighted average shares – diluted		7,294,775,879			5,140,405,652			6,606,988,956			4,969,080,176

Net income (loss) per share – diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

The anti-dilutive shares of common stock equivalents for the three and nine months ended November 30, 2023 and 2022 were as follows:


	For the Three Months Ended				For the Nine Months Ended
	November 30,				November 30,
	2023		2022		2023		2022

Convertible notes and accrued interest		—		836,425,685		—		836,425,685
Convertible Series F Preferred Shares*		26,617,244,133		—		26,617,244,133		—
Stock options and warrants		428,667,451		401,217,451		428,667,451		401,217,451
Total		27,045,911,584		1,237,643,136		27,045,911,584		1,237,643,136

	For the Three and Nine Months Ended
	November 30, 2023	November 30, 2022
Convertible Series F Preferred Shares	—	18,148,779,827

SUBSEQUENT EVENTS

9 Months Ended

Nov. 30, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

15. SUBSEQUENT EVENTS

Subsequent to November 30, 2023 through to January 12, 2024:

— The Company issued 639,550 common shares pursuant to a share purchase agreement for gross proceeds of $1,523,258, issuance costs of $62,980 and net proceeds of $1,460,278.

ACCOUNTING POLICIES (Policies)

9 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation and Consolidation

Basis of Presentation and Consolidation

Use of Estimates

Use of Estimates

Concentrations

Concentrations

Loans payable

Cash

Cash

Accounts Receivable

Accounts Receivable

Device Parts Inventory

Device Parts Inventory

Revenue Earning Devices

Revenue Earning Devices

Fixed Assets

Fixed Assets

Computer equipment and software		2 or 3 years
Office equipment		4 years
Manufacturing equipment		7 years
Warehouse equipment		5 years
Tooling		2 years
Demo Devices		4 years
Vehicles		3 years
Leasehold improvements		5 years, the life of the lease

Research and Development

Research and Development

Contingencies

Contingencies

Sales of Future Revenues

Sales of Future Revenues

	●	Does the agreement purport, in substance, to be a sale
	●	Does the Company have continuing involvement in the generation of cash flows due the investor
	●	Is the transaction cancellable by either party through payment of a lump sum or other transfer of assets
	●	Is the investors rate of return is implicitly limited by the terms of the agreement
	●	Does the Company’s revenue for a reporting period underlying the agreement have only a minimal impact on the investor’s rate of return
	●	Does the investor have recourse relating to payments due

Revenue Recognition

Revenue Recognition

Income Taxes

Income Taxes

Leases

Leases

Distinguishing Liabilities from Equity

Distinguishing Liabilities from Equity

Initial Measurement

The Company records its financial instruments classified as liability, temporary equity or permanent equity at issuance at the fair value, or cash received.

Subsequent Measurement – Financial Instruments Classified as Liabilities

Fair Value of Financial Instruments

Fair Value of Financial Instruments

ASC Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”) provides a framework for measuring fair value in accordance with generally accepted accounting principles.

	●	Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.

	●	Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

	●	Level 3 – Inputs that are unobservable for the asset or liability.

Measured on a Recurring Basis

The following table presents information about our liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell:

			Fair Value Measurement Using
	Amount at Fair Value		Level 1		Level 2		Level 3
November 30, 2023
Liabilities
Incentive compensation plan payable- revaluation of equity awards payable in Series G shares	$	1,166,000	$	—	$	—	$	1,166,000

February 28, 2023
Liabilities
Incentive compensation plan payable- revaluation of equity awards payable in Series G shares	$	979,000	$	—	$	—	$	979,000

Earnings (Loss) per Share

Earnings (Loss) per Share

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Recently Issued Accounting Standards Not Yet Adopted

ACCOUNTING POLICIES (Tables)

9 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

Fixed assets consisted of the following:

Computer equipment and software		2 or 3 years
Office equipment		4 years
Manufacturing equipment		7 years
Warehouse equipment		5 years
Tooling		2 years
Demo Devices		4 years
Vehicles		3 years
Leasehold improvements		5 years, the life of the lease

The following table presents information about our liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell:

			Fair Value Measurement Using
	Amount at Fair Value		Level 1		Level 2		Level 3
November 30, 2023
Liabilities
Incentive compensation plan payable- revaluation of equity awards payable in Series G shares	$	1,166,000	$	—	$	—	$	1,166,000

February 28, 2023
Liabilities
Incentive compensation plan payable- revaluation of equity awards payable in Series G shares	$	979,000	$	—	$	—	$	979,000

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

9 Months Ended

Nov. 30, 2023

Revenue from Contract with Customer [Abstract]

The following table presents revenues from contracts with customers disaggregated by product/service:

	Three Months Ended November 30, 2023		Three Months Ended November 30, 2022		Nine Months Ended November 30, 2023		Nine Months Ended November 30, 2022
Device rental activities	$	416,062	$	154,628	$	997,754	$	622,647
Direct sales of goods and services		180,918		247,771		370,797		432,393
Revenues	$	596,980	$	402,399	$	1,368,551	$	1,055,040

LEASES (Tables)

9 Months Ended

Nov. 30, 2023

Leases

Below is a summary of our lease assets and liabilities at November 30, 2023 and February 28, 2023.

Leases	Classification	November 30, 2023		February 28, 2023
Assets
Operating	Operating Lease Assets	$	1,115,447	$	1,208,440
Liabilities
Current
Operating	Current Operating Lease Liability	$	229,016	$	248,670
Noncurrent
Operating	Noncurrent Operating Lease Liabilities		881,816		950,541
Total lease liabilities		$	1,110,832	$	1,199,211

REVENUE EARNING DEVICES (Tables)

9 Months Ended

Nov. 30, 2023

Revenue Earning Devices

Revenue earning devices consisted of the following:

	November 30, 2023			February 28, 2023
Revenue earning devices	$	3,321,560		$	2,015,058
Less: Accumulated depreciation		(1,209,664	)		(779,839	)
Total	$	2,111,896		$	1,235,219

FIXED ASSETS (Tables)

9 Months Ended

Nov. 30, 2023

Property, Plant and Equipment [Abstract]

Fixed assets consisted of the following:

	November 30, 2023			February 28, 2023
Automobile	$	101,680		$	101,680
Demo devices		184,438			69,010
Tooling		101,322			101,322
Machinery and equipment		8,825			8,825
Computer equipment		150,387			150,387
Office equipment		15,312			15,312
Furniture and fixtures		21,225			21,225
Warehouse equipment		17,076			14,561
Leasehold improvements		26,956			15,568
		627,221			497,890
Less: Accumulated depreciation		(326,921	)		(182,002	)
	$	300,300		$	315,888

LOANS PAYABLE (Tables)

9 Months Ended

Nov. 30, 2023

Loans Payable

Loans payable at November 30, 2023 consisted of the following:

							Annual
Date	Maturity	Description		Principal			Interest Rate
July 18, 2016	July 18, 2017	Promissory note	(1) *	$	3,500		22%
December 10, 2020	March 1, 2025	Promissory note	(2)		3,921,168		12%
December 10, 2020	March 1, 2025	Promissory note	(3)		2,754,338		12%
December 10, 2020	December 10, 2023	Promissory note	(4)		165,605		12%
December 14, 2020	December 14, 2023	Promissory note	(5)		310,375		12%
December 30, 2020	March 1, 2025	Promissory note	(6)		350,000		12%
January 1, 2021	March 1, 2025	Promissory note	(7)		25,000		12%
January 1, 2021	March 1, 2025	Promissory note	(8)		145,000		12%
January 14, 2021	March 1, 2025	Promissory note	(9)		550,000		12%
February 22, 2021	March 1, 2025	Promissory note	(10)		1,650,000		12%
March 1, 2021	March 1, 2024	Promissory note	(11)		6,000,000		12%
June 8, 2021	June 8, 2024	Promissory note	(12)		2,750,000		12%
July 12, 2021	July 26, 2026	Promissory note	(13)		3,803,360		7%
September 14, 2021	September 14, 2024	Promissory note	(14)		1,650,000		12%
July 28, 2022	March 1, 2025	Promissory note	(15)		170,000		15%
August 30, 2022	August 30,2024	Promissory note	(16)		3,000,000		15%
September 7, 2022	March 1, 2025	Promissory note	(17)		400,000		15%
September 8, 2022	March 1, 2025	Promissory note	(18)		475,000		15%
October 13, 2022	March 1, 2025	Promissory note	(19)		350,000		15%
October 28, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
November 9, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
November 10, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
November 15, 2022	October 31, 2026	Promissory note	(20)		400,000		15%
January 11, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
February 6, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
April 5. 2023	October 31, 2026	Promissory note	(20)		400,000		15%
April 20, 23	October 31, 2026	Promissory note	(20)		400,000		15%
May 11, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
October 27, 2023	October 31, 2026	Promissory note	(20)		400,000		15%
November 30, 2023	October 31, 2025	Purchase Agreement	(21) **		—		35%
				$	32,473,346

Less: current portion of loans payable					(9,479,479	)
Less: discount on non-current loans payable					(4,305,396	)
Non-current loans payable, net of discount				$	18,688,471

Current portion of loans payable				$	9,479,479
Less: discount on current portion of loans payable					1,129,801
Current portion of loans payable, net of discount				$	8,349,678

*	In default
**	Funds received December 1 , 2023, after reporting period.

(1)	This note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions placed on the lender.

(2)	This promissory note was issued as part of a debt settlement whereby $2,683,357 in convertible notes and associated accrued interest of $1,237,811 totaling $3,921,168 was exchanged for this promissory note of $3,921,168, and a warrant to purchase 450,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a relative fair value of $990,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(3)	This promissory note was issued as part of a debt settlement whereby $1,460,794 in convertible notes and associated accrued interest of $1,593,544 totaling $3,054,338 was exchanged for this promissory note of $3,054,338, and a warrant to purchase 250,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a relative fair value of $550,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. $100,000 and $300,000 has been repaid the three and nine months ended November 30, 2023. The balance at November 30,2023 is now $2,754,338. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(4)	This promissory note was issued as part of a debt settlement whereby $103,180 in convertible notes and associated accrued interest of $62,425 totaling $165,605 was exchanged for this promissory note of $165,605, and a warrant to purchase 80,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a fair value of $176,000.

(5)	This promissory note was issued as part of a debt settlement whereby $235,000 in convertible notes and associated accrued interest of $75,375 totaling $310,375 was exchanged for this promissory note of $310,375, and a warrant to purchase 25,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a fair value of $182,500.

(6)	The note, with an original principal amount of $350,000, may be pre-payable at any time. The note balance includes an original issue discount of $35,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $0.025 per share with a 3-year term and having a relative fair value of $271,250. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $271,250 with a corresponding adjustment to paid in capital for the relative fair value of the warrant. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $12,878 and $105,538, respectively, with an unamortized discount of $31,106 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(7)	This promissory note was issued as part of a debt settlement whereby $9,200 in convertible notes and associated accrued interest of $6,944 totaling $16,144 was exchanged for this promissory note of $25,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from January 1, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(8)	This promissory note was issued as part of a debt settlement whereby $79,500 in convertible notes and associated accrued interest of $28,925 totaling $108,425 was exchanged for this promissory note of $145,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from January 1, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(9)	The note, with an original principal amount of $550,000, may be pre-payable at any time. The note balance includes an original issue discount of $250,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $0.025 per share with a 3-year term and having a relative fair value of $380,174. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $380,174 with a corresponding adjustment to paid in capital. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $16,718 and $129,906 respectively, with an unamortized discount of $50,493 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from January 14, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(10)	The note, with an original principal balance of $1,650,000, may be pre-payable at any time. The note balance includes an original issue discount of $150,000 and was issued with a warrant to purchase 100,000,000 shares at an exercise price of $0.135 per share with a 3-year term and having a relative fair value of $1,342,857. The discount and warrant are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $1,342,857 with a corresponding adjustment to paid in capital for the relative fair value of the warrant. The maturity date was extended from February 22, 2022 to February 22, 2024 on February 28, 2022 in exchange for warrants to purchase 50,000,000 at an exercise price of $.0164 and a 3-year term. These warrants have a fair value of $950,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $82,499 and $462,320 respectively, with an unamortized discount of $426,061 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from February 22, 2024 to March 1, 2025 with all other terms and conditions remaining the same.

(11)	The unsecured note may be pre-payable at any time. Cash proceeds of $5,400,000 were received. The note balance of $6,000,000 includes an original issue discount of $600,000 and was issued with a warrant to purchase 300,000,000 shares at an exercise price of $0.135 per share with a 3-year term and having a relative fair value of $4,749,005 using Black-Scholes with assumptions described in note 13. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $4,749,005 with a corresponding adjustment to paid in capital for the relative value of the warrant.. The maturity was extended from March 1, 2022 to March 1, 2024 on February 28, 2022 in exchange for warrants to purchase 150,000,000 shares of common stock at an exercise price of $.0164 and a 3 year term. These warrants have a fair value of $2,850,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. This note has been fully amortized.

(12)	The note, with an original principal balance of $2,750,000, may be pre-payable at any time. The note balance includes an original issue discount of $50,000 and was issued with a warrant to purchase 170,000,000 shares at an exercise price of $0.064 per share with a 3-year term and having a relative fair value of $2,035,033. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $2,035,033 with a corresponding adjustment to paid in capital. The maturity date was extended from June 8, 2022 to June 8, 2024 on February 28, 2022 in exchange for warrants to purchase 85,000,000 at an exercise price of $.0164 and a 3 year term. These warrants have a fair value of $1,615,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $199,482 and $530,181 respectively, with an unamortized discount of $264,037 at November 30, 2023.

(13)	This loan, with an original principal balance of $4,000,160, was in exchange for 184 Series F preferred shares from a former director. The interest and principal are payable at maturity. The loan is unsecured. For the three and nine months ended November 30, 2023 there were repayments of $27,000 and $81,000 . respectively on the note.

(14)	The note, with an original principal balance of $1,650,000, may be pre-payable at any time. The note balance includes an original issue discount of $150,000 and was issued with a warrant to purchase 250,000,000 shares at an exercise price of $0.037 per share with a 3-year term and having a relative fair value of $1,284,783, The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $1,284,783 with a corresponding adjustment to paid in capital. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $146,393 and $348,667 respectively, with an unamortized discount of $865,764 at November 30, 2023.

(15)	Original $170,000 note may be pre-payable at any time. The note balance includes an original issue discount of $20,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $9,026 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from July 28, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(16)	A warrant holder exchanged 955,000,000 warrants for a promissory note of $3,000,000, bearing interest at 15% with a two year maturity. The fair value of the warrants was determined to be $2,960,500 with a corresponding adjustment to paid-in capital and a debt discount of $39,500 which will be amortized over the term of the loan. Principal and interest due at maturity. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $4,923 and $14,216 respectively, with an unamortized discount of $16,552 at November 30, 2023.

(17)	Original $400,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $27,821 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from September 7, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(18)	Original $475,000 note may be pre-payable at any time. The note balance includes an original issue discount of $75,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $36,729 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from September 8, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(19)	Original $350,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest due at maturity. Secured by a general security charging all of the Company’s s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $13,295 and $25,585 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from October 13, 2023 to March 1, 2025 with all other terms and conditions remaining the same.

(20)	On October 28, 2022 the Company entered into an loan facility with a lender for up to $4,000,000 including an original issue discount of $500,000. In exchange the Company will issue one series F Preferred Share, extended 329 series F warrants with a March 1, 2026 maturity to a new October 31, 2033 maturity, and issue up to 10 tranches with each tranche of $400,000, with cash proceeds of $350,000 an original issue discount of $50,000, October 31, 2026 maturity, and 61 Series F warrants with a October 31, 2033 maturity. Secured by a general security charging all of the Company’s present and after-acquired property. At November 30, 2022 the Company has issued 6 tranches as follows: October 28, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants and 1 Series F Preferred Share having a relative fair value of $299,399. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,274 and $7,613 respectively, with an unamortized discount of $340,411 at November 30, 2023. November 9, 2022, $400,000 loan, original issue discount of $50,000 , 61 Series F Preferred Share warrants having a relative fair value of $299,750. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $3,234 and $7,510 respectively, with an unamortized discount of $340,929 at November 30, 2023. November 10, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $302,020. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,991 and $6,891 respectively, with an unamortized discount of $343,990 at November 30, 2023. November 15, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three nine months ended November 30, 2023, the Company recorded amortization expense of $3,295 and $7,665 respectively, with an unamortized discount of $340,151 at November 30, 2023. January 11, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,355 and $7,821 respectively, with an unamortized discount of $339,368 at November 30, 2023. February 6, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,231 and $7,503 respectively, with an unamortized discount of $340,923 at November 30, 2023. April 5, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $296,245. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,335 and $6,608 respectively, with an unamortized discount of $339,637 at November 30, 2023. April 20, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $302,219. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,723 and $4,930 respectively, with an unamortized discount of $347,290 at November 30, 2023. May 11, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $348,983. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $0 respectively, with an unamortized discount of $398,983 at November 30, 2023. October 27 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $261,759. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,044 and $2,044 respectively, with an unamortized discount of $309,715 at November 30, 2023.

(21)	On November 30, 2023 , the Company entered into an agreement where the lender will buy pay the Company $350,000 in exchange for thirteen future monthly payments of $36,750 commencing on April 30,2024 through to April 30, 2025 totaling $477,750. The effective interest rate is 35% per annum. As the proceeds were received on December 1, 2023 , this loan will be recorded next quarter. Secured by a general security charging all of RAD’s present and after-acquired property. Default rate of 15% per annum calculated daily on any missed monthly payment.

STOCKHOLDERS’ EQUITY (DEFICIT) (Tables)

9 Months Ended

Nov. 30, 2023

Equity [Abstract]

Summary of Preferred Stock Warrant Activity

Summary of Preferred Stock Warrant Activity

	Number of Series F Preferred Warrants	Weighted Average Exercise Price	Weighted Average Remaining Years
Outstanding at March 1, 2023	695	$1.00	10.00
Issued	244	1.00	9.88
Exercised	—	—	—
Forfeited and cancelled	—	—	—
Outstanding at November 30, 2023	939	$1.00	9.50

The table below represent the common shares issued, issuable and outstanding at November 30, 2023 and February 28, 2023:

Common shares	November 30, 2023		February 28, 2023
Issued		7,715,143,227		5,836,641,599
Issuable		—		12,100,000
Issued, issuable and outstanding		7,715,143,227		5,848,741,599

Summary of Common Stock Warrant Activity

	Number of Warrants	Weighted Average Exercise Price	Weighted Average Remaining Years
Outstanding at February 28, 2023	314,217,451	$0.114	1.95
Issued	—	—	—
Exercised	—	—	—
Forfeited and cancelled	—	—	—
Outstanding at November 30, 2023	314,217,451	$0.114	1.20

Summary of Common Stock Option Activity -Employee Stock Options

Summary of Common Stock Option Activity -Employee Stock Options

	Number of Options		Weighted Average Exercise Price	Weighted Average Remaining Years
Outstanding at February 28 , 2023	95,725,000		$0.02	4.75
Issued	—		—	—
Exercised	—		—	—
Forfeited, extinguished and cancelled	(21,275,000	)	$0.02	(4.60)
Outstanding at August 31, 2023	74,450,000		$0.02	4.00

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Nov. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Summary of rent expense and operating lease cost are recorded over the lease terms on a straight-line basis.

Maturity of Lease Liabilities	Operating Leases
November 30, 2024	$	229,016
November 30, 2025		207,558
November 30, 2026		207,558
November 30, 2027		207,558
November 30, 2028		207,558
November 30, 2029 and after		501,599
Total lease payments		1,560,847
Less: Interest		(450,015	)
Present value of lease liabilities	$	1,110,832

EARNINGS (LOSS) PER SHARE (Tables)

9 Months Ended

Nov. 30, 2023

Earnings Per Share [Abstract]

The net income (loss) per common share amounts were determined as follows:


	For the Three Months Ended						For the Nine Months Ended
	November 30,						November 30,
	2023			2022			2023			2022
Numerator:
Net income (loss) available to common shareholders	$	(3,966,484	)	$	(4,085,660	)	$	(13,281,405	)	$	(12,930,211	)

Effect of common stock equivalents
Add: interest expense on convertible debt		—			22,438			—			27,863
Add: amortization of debt discount		—			78,149			—			90,767
Add (less) loss (gain) on settlement of debt		—			—			—			(3,992	)
Add (less) loss (gain) on change of derivative liabilities		—			—			—			(3,595	)
Net income (loss) adjusted for common stock equivalents		(3,966,484	)		(3,985,073	)		(13,281,405	)		(12,819,168	)

Denominator:
Weighted average shares – basic		7,294,775,879			5,140,405,652			6,606,988,956			4,969,080,176

Net income (loss) per share – basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

Dilutive effect of common stock equivalents:
Convertible Debt		—			—			—			—
Preferred shares		—			—			—			—
Warrants		—			—			—			—
		—			—			—			—
Denominator:
Weighted average shares – diluted		7,294,775,879			5,140,405,652			6,606,988,956			4,969,080,176

Net income (loss) per share – diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)

The anti-dilutive shares of common stock equivalents for the three and nine months ended November 30, 2023 and 2022 were as follows:


	For the Three Months Ended				For the Nine Months Ended
	November 30,				November 30,
	2023		2022		2023		2022

Convertible notes and accrued interest		—		836,425,685		—		836,425,685
Convertible Series F Preferred Shares*		26,617,244,133		—		26,617,244,133		—
Stock options and warrants		428,667,451		401,217,451		428,667,451		401,217,451
Total		27,045,911,584		1,237,643,136		27,045,911,584		1,237,643,136

Series F Preferred shares been convertible the dilutive effects would be as follows:

	For the Three and Nine Months Ended
	November 30, 2023	November 30, 2022
Convertible Series F Preferred Shares	—	18,148,779,827

GENERAL INFORMATION (Details Narrative) - shares	Aug. 28, 2017	Nov. 30, 2023	Feb. 28, 2023	Jul. 25, 2017
Restructuring Cost and Reserve [Line Items]
Common stock, issued		7,715,143,227	5,848,741,599
Robotic Assistance Devices LLC [Member]
Restructuring Cost and Reserve [Line Items]
Common stock, issued				10,000
Robotic Assistance Devices LLC [Member] \| Series E Preferred Stock [Member]
Restructuring Cost and Reserve [Line Items]
Number of shares isuued under acquisition	3,350,000
Robotic Assistance Devices LLC [Member] \| Series F Preferred Stock [Member]
Restructuring Cost and Reserve [Line Items]
Number of shares isuued under acquisition	2,450

GOING CONCERN (Details Narrative) - USD ($)		1 Months Ended	9 Months Ended
GOING CONCERN (Details Narrative) - USD ($)	Nov. 30, 2023	Mar. 31, 2023	Nov. 30, 2023
Cash flow from operating activities			$ 9,378,427
Accumulated deficit	$ 125,535,116		125,535,116
Working capital	12,944,810		12,944,810
Additional issuance costs	7,500,000
Issuance debt	1,400,000		1,400,000
Additional issuance costs	$ 1,500,000
Minimum [Member]
Other cost cutting management estimates			200,000
Maximum [Member]
Other cost cutting management estimates			$ 300,000
Common Stock [Member]
Purchase of common stock		$ 12,500,000

Fixed assets consisted of the following: (Details) - USD ($)

Nov. 30, 2023

Feb. 28, 2023

Less: accumulated depreciation

$ 627,221

$ 497,890

(326,921)

(182,002)

Fixed assets, net of accumulated depreciation

$ 300,300

315,888

^[1]

Computer Equipment and Software [Member] | Minimum [Member]

Computer Equipment and Software [Member] | Maximum [Member]

2 years

Office Equipment [Member]

3 years

4 years

Manufacturing Equipment [Member]

$ 15,312

15,312

Warehouse Equipment [Member]

7 years

5 years

$ 17,076

14,561

Tooling [Member]

2 years

Demo Devices [Member]

4 years

$ 184,438

69,010

Vehicles [Member]

Leasehold Improvements [Member]

3 years

5 years

$ 26,956

15,568

Automobiles [Member]

Tools, Dies and Molds [Member]

101,680

Machinery and Equipment [Member]

101,322

Computer Equipment [Member]

8,825

Furniture and Fixtures [Member]

150,387

Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]

$ 21,225

[1]	Derived from audited information

The following table presents information about our liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell: (Details) - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Platform Operator, Crypto-Asset [Line Items]
Incentive compensation plan payable revaluation of equity awards payable in Series G shares	$ 1,166,000	$ 979,000
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto-Asset [Line Items]
Incentive compensation plan payable revaluation of equity awards payable in Series G shares
Fair Value, Inputs, Level 2 [Member]
Platform Operator, Crypto-Asset [Line Items]
Incentive compensation plan payable revaluation of equity awards payable in Series G shares
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto-Asset [Line Items]
Incentive compensation plan payable revaluation of equity awards payable in Series G shares	$ 1,166,000	$ 979,000

ACCOUNTING POLICIES (Details Narrative)

3 Months Ended

9 Months Ended

12 Months Ended

Nov. 30, 2023

USD ($)

Number

Nov. 30, 2022

Number

Nov. 30, 2023

USD ($)

Number

Feb. 28, 2023

USD ($)

Loans payable

$ 32,473,345

$ 31,254,345

Accounts receivable, net

$ 505,438

505,438

265,024

^[1]

Percentage of accounts receivable

61.00%

62.00%

Inventory valuation reserves

$ 195,000

195,000

Depreciation life

48 months

Percentage of revenue

58.00%

41.00%

58.00%

Description of deferred tax assets and liabilities

The Company’s gross deferred tax assets were revalued based on the reduction in the federal statutory tax rate from 35% to 21%.

Four Customer [Member]

Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]

Number of customers | Number

Two Customer [Member]

Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]

Number of customers | Number

Controller [Member]

Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]

Loans additions

$ 28,190,506

$ 26,540,506

Loans percentage

87.00%

85.00%

[1]	Derived from audited information

The following table presents revenues from contracts with customers disaggregated by product/service: (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Revenue from Contract with Customer [Abstract]
Device rental activities	$ 416,062	$ 154,628	$ 997,754	$ 622,647
Direct sales of goods and services	180,918	247,771	370,797	432,393
Revenues	$ 596,980	$ 402,399	$ 1,368,551	$ 1,055,040

Below is a summary of our lease assets and liabilities at November 30, 2023 and February 28, 2023. (Details) - USD ($)

Nov. 30, 2023

Feb. 28, 2023

Leases

Operating lease assets

$ 1,115,447

$ 1,208,440

Current operating lease liability

229,016

248,670

^[1]

Noncurrent operating lease liabilities

881,816

950,541

^[1]

Total lease liabilities

$ 1,110,832

$ 1,199,211

[1]	Derived from audited information

LEASES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
LEASES (Details Narrative) - USD ($)	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Leases
Weighted average remaining lease term	12 months		12 months
Rent	$ 64,081	$ 61,005	$ 189,164	$ 194,653
Operating lease cost	$ 64,081	$ 61,005	$ 189,164	$ 194,653

Revenue earning devices consisted of the following: (Details) - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Revenue Earning Devices
Revenue earning devices	$ 3,321,560	$ 2,015,058
Less: Accumulated depreciation	(1,209,664)	(779,839)
Total	$ 2,111,896	$ 1,235,219

REVENUE EARNING DEVICES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
REVENUE EARNING DEVICES (Details Narrative) - USD ($)	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Restructuring Cost and Reserve [Line Items]
Revenue earning	$ 596,980	$ 402,399	$ 1,368,551	$ 1,055,040
Depreciation expense	215,763	92,855	574,746	332,643
Robotic Assistance Devices LLC [Member]
Restructuring Cost and Reserve [Line Items]
Revenue earning	521,037	199,047	1,306,501	625,094
Depreciation expense	$ 165,370	$ 54,418	$ 429,825	$ 241,957

FIXED ASSETS (Details Narrative) - Robotic Assistance Devices LLC [Member] - USD ($)	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Restructuring Cost and Reserve [Line Items]
Additions to fixed assets	$ 22,101	$ 31,365	$ 129,331	$ 265,041
Assets transfers from inventory	11,661	19,961	115,428	47,440
Remaining additions to fixed assets	10,440	11,404	13,903	217,601
Depreciation expense	$ 50,393	$ 38,437	$ 144,921	$ 90,686

DEFERRED VARIABLE PAYMENT OBLIGATION (Details Narrative) - USD ($)

3 Months Ended

6 Months Ended

9 Months Ended

12 Months Ended

Mar. 03, 2021

Aug. 27, 2020

Jul. 01, 2020

Apr. 22, 2020

Feb. 29, 2020

Dec. 30, 2019

Nov. 18, 2019

May 09, 2019

Feb. 01, 2019

May 31, 2021

Aug. 27, 2021

Nov. 30, 2023

Feb. 28, 2023

Principal amount

$ 32,473,346

Accrued payment

764,702

$ 542,177

Default on payments

497,149

325,600

Aggregate investment

$ 1,925,000

Total payment obligation

$ 2,525,000

2,525,000

^[1]

Payment receive

Investor [Member]

$ 1,925,000

$ 800,000

$ 100,000

$ 900,000

Debt instrument, date of first required payment

14.25%

2.75%

1.00%

9.00%

Feb. 29, 2020

Description of variable payments terms

Description of disposition price

The FMV cannot exceed 43.77% of the share disposition price defined as the total price the third party paid for the 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 below. This aggregate asset disposition % was reduced from 43.77 % to 33.77%.

The FMV cannot exceed 30% of the share disposition price defined as the total price the third party paid for the shares plus the total value of all future Payments.

Principal amount

$ 109,000

$ 225,000

Advance amount

116,000

Investor [Member] | Series F Preferred Stock [Member]

Purchase of warrant

367

$ 1.00

Investor [Member] | Maximum [Member]

$ 33,015,214

Percentage of total asset disposition price

14.25%

31.00%

Investor [Member] | Minimum [Member]

Percentage of total asset disposition price

9.65%

21.00%

Investor [Member] | Agreement [Member]

Investor [Member] | Agreement One [Member]

$ 900,000

Investor [Member] | Ageement Two [Member]

225,000

$ 800,000

Investor One [Member]

400,000

$ 400,000

4.00%

Investor Two [Member]

$ 50,000

1.11%

Investor Four [Member]

Description of variable payments terms

2.25%

Investor Five [Member]

If the Payments would deplete RAD’s available cash 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 first payment due July 2020 and the final payment no later than February 28, 2021. As at August 31, 2020 the investor had fully funded the $800,000 commitment.

Investor Eight [Member]

Percentage of assets sold

10.00%

Investor Eight [Member]

Total payment obligation

$ 2,525,000

2,525,000

Deferred payment obligation

$ 2,525,000

[1]	Derived from audited information

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended			9 Months Ended		12 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Aug. 31, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Net borrowings on loan payable - related party				$ 0	$ 0
Loan payable - related party	$ 299,286			299,286		$ 206,516
Balance due to related party	222,754			222,754		$ 108,000
Interest Expense	1,581,533	$ 1,271,158		$ 4,940,965	3,448,208
Percentage of interest expense due to related party				12.00%		12.00%
Deferred salary payable to related party						$ 108,000
Interest accrued related party				$ 28,267		15,660
Consulting fees for research and development	$ 526,723	$ 794,460		$ 2,185,998	2,735,589
Incentives Compensation Plan [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Share price	$ 1,000			$ 1,000
Employment Agreement [Member] \| Incentives Compensation Plan [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Incentive compensation plan payable	$ 1,166,000			$ 1,166,000		$ 979,000
Chief Executive Officer [Member] \| Employment Agreement [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items]
Incentive compensation plan payable	$ 62,000		$ 138,000	$ 187,000	$ 362,500

OTHER DEBT – VEHICLE LOAN (Details Narrative) - USD ($)	1 Months Ended		9 Months Ended
OTHER DEBT – VEHICLE LOAN (Details Narrative) - USD ($)	Nov. 30, 2017	Dec. 31, 2016	Nov. 30, 2023	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2021	Feb. 28, 2020	Feb. 28, 2019
Restructuring Cost and Reserve [Line Items]
Vehicle loan secured by automobile			$ 32,473,346
Principal repayments of loan					$ 0	$ 0
Proceeds of disposal of vehicle offset against vehicle loan			18,766
Remaining asset value			5,515
Reclassification of fixed assets to vehicle for disposal			13,251
Robotic Assistance Devices LLC [Member] \| Secured Debt [Member]
Restructuring Cost and Reserve [Line Items]
Vehicle loan secured by automobile	$ 47,661	$ 47,704
Term of debt	5 years	5 years
Payment of debt interest and principal	$ 923	$ 1,019
Maturity date	Oct. 24, 2022
Outstanding balance of the loan								$ 21,907
Loss on sale of vehicle			3,257
Current portion vehicle loan							$ 21,578
Long-term vehicle loan					$ 16,944	$ 16,944
Total vehicle loan			$ 38,522	$ 38,522

Loans payable at November 30, 2023 consisted of the following: (Details) - USD ($)

3 Months Ended

9 Months Ended

12 Months Ended

Oct. 27, 2023

May 11, 2023

Apr. 20, 2023

Apr. 05, 2023

Feb. 06, 2023

Jan. 11, 2023

Nov. 15, 2022

Nov. 10, 2022

Nov. 09, 2022

Oct. 28, 2022

Feb. 28, 2022

Nov. 30, 2023

Nov. 30, 2022

Nov. 30, 2023

Nov. 28, 2023

Nov. 30, 2022

Feb. 28, 2023

Feb. 28, 2021

Less: current portion of loans payable

$ 32,473,346

(9,479,479)

Less: discount on non-current loans payable

(4,305,396)

Non-current loans payable, net of discount

18,688,471

Current portion of loans payable

9,479,479

Less: discount on current portion of loans payable

1,129,801

Current portion of loans payable, net of discount

$ 8,349,678

Warrant purchase

6,500,000

12,100,000

Promissory Note Payable 01 [Member]

$ 0

Interest expenses

$ 1,581,533

$ 1,271,158

$ 4,940,965

$ 3,448,208

^[1],[2]

Jul. 18, 2016

^[1],[2]

$ 3,500

Promissory Note Payable 02 [Member]

^[1],[2]

22.00%

^[3]

Dec. 10, 2020

^[3]

$ 3,921,168

^[3]

12.00%

$ 2,683,357

$ 1,237,811

Promissory Note Payable 02 [Member] | Warrant [Member]

Mar. 01, 2025

$ 3,921,168

$ 0.002

Promissory Note Payable 03 [Member]

$ 990,000

^[4]

Dec. 10, 2020

^[4]

$ 2,754,338

^[4]

12.00%

$ 1,460,794

1,593,544

$ 1,593,544

Mar. 01, 2025

Promissory Note Payable 03 [Member] | Warrant [Member]

$ 3,054,338

Debt balance

2,754,338

$ 3,054,338

$ 0.002

Promissory Note Payable 04 [Member]

$ 550,000

Debt repaid

$ 100,000

$ 300,000

^[5]

Dec. 10, 2020

^[5]

$ 165,605

^[5]

12.00%

$ 103,180

$ 62,425

62,425

Promissory Note Payable 04 [Member] | Warrant [Member]

$ 165,605

$ 0.002

Promissory Note Payable 05 [Member]

$ 176,000

Warrant purchase

80,000,000

^[6]

Dec. 14, 2020

^[6]

$ 310,375

^[6]

12.00%

$ 235,000

Promissory Note Payable 05 [Member] | Warrant [Member]

$ 75,375

75,375

$ 310,375

$ 0.002

Promissory Note Payable 06 [Member]

$ 182,500

Warrant purchase

25,000,000

^[7]

Dec. 30, 2020

^[7]

$ 350,000

^[7]

12.00%

$ 350,000

$ 0.025

Mar. 01, 2025

$ 35,000

50,000,000

3 years

$ 271,250

271,250

12,878

105,538

Promissory Note Payable 07 [Member]

31,106

$ 31,106

^[8]

Jan. 01, 2021

^[8]

$ 25,000

^[8]

12.00%

$ 9,200

6,944

$ 16,144

Promissory Note Payable 08 [Member]

Mar. 01, 2025

^[9]

Jan. 01, 2021

^[9]

$ 145,000

^[9]

12.00%

$ 79,500

28,925

$ 108,425

Promissory Note Payable 09 [Member]

Mar. 01, 2025

^[10]

Jan. 14, 2021

^[10]

$ 550,000

^[10]

12.00%

$ 550,000

$ 0.025

Mar. 01, 2025

$ 250,000

50,000,000

3 years

$ 380,174

380,174

16,718

129,906

Promissory Note Payable10 [Member]

50,493

$ 50,493

^[11]

Feb. 22, 2020

^[11]

$ 1,650,000

^[11]

12.00%

$ 1,650,000

$ 0.135

Mar. 01, 2025

$ 150,000

100,000,000

3 years

$ 1,342,857

1,342,857

82,499

462,320

Promissory Note Payable10 [Member] | Warrant [Member]

426,061

$ 426,061

Debt description

The maturity date was extended from February 22, 2022 to February 22, 2024 on February 28, 2022 in exchange for warrants to purchase 50,000,000 at an exercise price of $.0164 and a 3-year term.

Promissory Note Payable 11 [Member]

950,000

$ 950,000

^[12]

Mar. 01, 2021

^[12]

$ 6,000,000

^[12]

12.00%

$ 0.135

300,000,000

3 years

Proceeds from issuance of debt

$ 4,749,005

5,400,000

Debt conversion original debt amount

600,000

Interest expenses

2,850,000

Promissory Note Payable 11 [Member] | Valuation Technique, Option Pricing Model [Member]

Promissory Note Payable 11 [Member] | Common Stock [Member]

$ 4,749,005

$ 0.0164

150,000,000

Promissory Note Payable 12 [Member]

3 years

^[13]

Jun. 08, 2021

^[13]

$ 2,750,000

^[13]

12.00%

$ 0.064

$ 50,000

170,000,000

3 years

$ 2,035,033

2,035,033

199,482

530,181

Promissory Note Payable 12 [Member] | Common Stock [Member]

264,037

$ 264,037

Interest expenses

$ 1,615,000

$ 0.0164

85,000,000

Promissory Note Payable 13 [Member]

3 years

^[14]

Jul. 12, 2021

^[14]

$ 3,803,360

Promissory Note Payable 14 [Member]

^[14]

7.00%

Principal ammount

$ 4,000,160

Repayment of notes

27,000

$ 81,000

^[15]

Sep. 14, 2021

^[15]

$ 1,650,000

^[15]

12.00%

$ 0.037

$ 150,000

250,000,000

3 years

$ 1,284,783

1,284,783

146,393

348,667

Promissory Note Payable 15 [Member]

865,764

$ 865,764

^[16]

Jul. 28, 2022

^[16]

$ 170,000

^[16]

15.00%

Mar. 01, 2025

$ 20,000

$ 0

9,026

Promissory Note Payable 16 [Member]

$ 0

^[17]

Aug. 30, 2022

^[17]

$ 3,000,000

^[17]

15.00%

$ 39,500

4,923

14,216

Class of warrant or right outstanding

$ 16,552

955,000,000

Rate of interest

15.00%

Class of warrant or right, outstanding

$ 2,960,500

Promissory Note Payable 17 [Member]

^[18]

Sep. 07, 2022

^[18]

$ 400,000

^[18]

15.00%

Mar. 01, 2025

$ 50,000

$ 0

27,821

Promissory Note Payable 18 [Member]

$ 0

^[19]

Sep. 08, 2022

^[19]

$ 475,000

^[19]

15.00%

Mar. 01, 2025

$ 75,000

$ 0

36,729

Promissory Note Payable 19 [Member]

$ 0

^[20]

Oct. 13, 2022

^[20]

$ 350,000

^[20]

15.00%

Mar. 01, 2025

$ 50,000

$ 13,295

25,585

Promissory Note Payable 20 [Member]

$ 0

^[21]

Oct. 28, 2022

$ 400,000

^[21]

$ 400,000

^[21]

^[21]

15.00%

$ 50,000

$ 3,274

$ 7,613

Promissory Note Payable 21 [Member]

340,411

Line of credit facility

4,000,000

$ 4,000,000

^[21]

Nov. 09, 2022

$ 400,000

^[21]

$ 400,000

^[21]

^[21]

15.00%

$ 50,000

$ 3,234

$ 7,510

Promissory Note Payable 22 [Member]

340,929

$ 340,929

^[21]

Nov. 10, 2022

$ 400,000

^[21]

$ 400,000

^[21]

^[21]

15.00%

$ 50,000

$ 2,991

$ 6,891

Promissory Note Payable 23 [Member]

343,990

$ 343,990

^[21]

Nov. 15, 2022

$ 400,000

^[21]

$ 400,000

^[21]

^[21]

15.00%

$ 50,000

$ 3,295

$ 7,665

Promissory Note Payable 24 [Member]

340,151

$ 340,151

^[21]

Jan. 11, 2023

$ 400,000

^[21]

$ 400,000

^[21]

^[21]

15.00%

$ 50,000

$ 3,355

$ 7,821

Promissory Note Payable 25 [Member]

339,368

$ 339,368

^[21]

Feb. 06, 2023

$ 400,000

^[21]

$ 400,000

^[21]

^[21]

15.00%

$ 50,000

$ 3,231

$ 7,503

Promissory Note Payable 26 [Member]

340,923

$ 340,923

^[21]

Apr. 05, 2023

$ 400,000

^[21]

$ 400,000

^[21]

^[21]

15.00%

$ 50,000

$ 3,335

$ 6,608

Promissory Note Payable 27 [Member]

339,637

$ 339,637

^[21]

Apr. 20, 2023

$ 400,000

^[21]

$ 400,000

^[21]

^[21]

15.00%

$ 50,000

$ 2,723

$ 4,930

Promissory Note Payable 28 [Member]

347,290

$ 347,290

^[21]

May 11, 2020

$ 400,000

^[21]

$ 400,000

^[21]

^[21]

15.00%

$ 50,000

$ 0

Promissory Note Payable 29 [Member]

398,983

$ 398,983

^[21]

Oct. 27, 2023

$ 400,000

^[21]

$ 400,000

^[21]

^[21]

15.00%

$ 50,000

$ 2,044

Promissory Note Payable 30 [Member]

309,715

$ 309,715

^[22],[23]

Nov. 30, 2023

$ 477,750

Class of warrant or right outstanding

^[22],[23]

35.00%

350,000

Rate of interest

35.00%

Payment terms

thirteen future monthly payments of $36,750 commencing on April 30,2024 through to April 30, 2025

[1]	In default
[2]	This note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions placed on the lender.
[3]	This promissory note was issued as part of a debt settlement whereby $2,683,357 in convertible notes and associated accrued interest of $1,237,811 totaling $3,921,168 was exchanged for this promissory note of $3,921,168, and a warrant to purchase 450,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a relative fair value of $990,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.
[4]	This promissory note was issued as part of a debt settlement whereby $1,460,794 in convertible notes and associated accrued interest of $1,593,544 totaling $3,054,338 was exchanged for this promissory note of $3,054,338, and a warrant to purchase 250,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a relative fair value of $550,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. $100,000 and $300,000 has been repaid the three and nine months ended November 30, 2023. The balance at November 30,2023 is now $2,754,338. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.
[5]	This promissory note was issued as part of a debt settlement whereby $103,180 in convertible notes and associated accrued interest of $62,425 totaling $165,605 was exchanged for this promissory note of $165,605, and a warrant to purchase 80,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a fair value of $176,000.
[6]	This promissory note was issued as part of a debt settlement whereby $235,000 in convertible notes and associated accrued interest of $75,375 totaling $310,375 was exchanged for this promissory note of $310,375, and a warrant to purchase 25,000,000 shares at an exercise price of $.002 per share and a three-year maturity having a fair value of $182,500.
[7]	The note, with an original principal amount of $350,000, may be pre-payable at any time. The note balance includes an original issue discount of $35,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $0.025 per share with a 3-year term and having a relative fair value of $271,250. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $271,250 with a corresponding adjustment to paid in capital for the relative fair value of the warrant. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $12,878 and $105,538, respectively, with an unamortized discount of $31,106 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from December 10, 2023 to March 1, 2025 with all other terms and conditions remaining the same.
[8]	This promissory note was issued as part of a debt settlement whereby $9,200 in convertible notes and associated accrued interest of $6,944 totaling $16,144 was exchanged for this promissory note of $25,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from January 1, 2024 to March 1, 2025 with all other terms and conditions remaining the same.
[9]	This promissory note was issued as part of a debt settlement whereby $79,500 in convertible notes and associated accrued interest of $28,925 totaling $108,425 was exchanged for this promissory note of $145,000. This note is secured by a general security charging all of the Company’s present and after-acquired property. On November 28, 2023, the parties extended the maturity date from January 1, 2024 to March 1, 2025 with all other terms and conditions remaining the same.
[10]	The note, with an original principal amount of $550,000, may be pre-payable at any time. The note balance includes an original issue discount of $250,000 and was issued with a warrant to purchase 50,000,000 shares at an exercise price of $0.025 per share with a 3-year term and having a relative fair value of $380,174. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $380,174 with a corresponding adjustment to paid in capital. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $16,718 and $129,906 respectively, with an unamortized discount of $50,493 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from January 14, 2024 to March 1, 2025 with all other terms and conditions remaining the same.
[11]	The note, with an original principal balance of $1,650,000, may be pre-payable at any time. The note balance includes an original issue discount of $150,000 and was issued with a warrant to purchase 100,000,000 shares at an exercise price of $0.135 per share with a 3-year term and having a relative fair value of $1,342,857. The discount and warrant are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $1,342,857 with a corresponding adjustment to paid in capital for the relative fair value of the warrant. The maturity date was extended from February 22, 2022 to February 22, 2024 on February 28, 2022 in exchange for warrants to purchase 50,000,000 at an exercise price of $.0164 and a 3-year term. These warrants have a fair value of $950,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $82,499 and $462,320 respectively, with an unamortized discount of $426,061 at November 30, 2023. On November 28, 2023, the parties extended the maturity date from February 22, 2024 to March 1, 2025 with all other terms and conditions remaining the same.
[12]	The unsecured note may be pre-payable at any time. Cash proceeds of $5,400,000 were received. The note balance of $6,000,000 includes an original issue discount of $600,000 and was issued with a warrant to purchase 300,000,000 shares at an exercise price of $0.135 per share with a 3-year term and having a relative fair value of $4,749,005 using Black-Scholes with assumptions described in note 13. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $4,749,005 with a corresponding adjustment to paid in capital for the relative value of the warrant.. The maturity was extended from March 1, 2022 to March 1, 2024 on February 28, 2022 in exchange for warrants to purchase 150,000,000 shares of common stock at an exercise price of $.0164 and a 3 year term. These warrants have a fair value of $2,850,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. This note has been fully amortized.
[13]	The note, with an original principal balance of $2,750,000, may be pre-payable at any time. The note balance includes an original issue discount of $50,000 and was issued with a warrant to purchase 170,000,000 shares at an exercise price of $0.064 per share with a 3-year term and having a relative fair value of $2,035,033. The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $2,035,033 with a corresponding adjustment to paid in capital. The maturity date was extended from June 8, 2022 to June 8, 2024 on February 28, 2022 in exchange for warrants to purchase 85,000,000 at an exercise price of $.0164 and a 3 year term. These warrants have a fair value of $1,615,000 recorded as interest expense with a corresponding adjustment to paid in capital recorded in the year ended February 28, 2022. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $199,482 and $530,181 respectively, with an unamortized discount of $264,037 at November 30, 2023.
[14]	This loan, with an original principal balance of $4,000,160, was in exchange for 184 Series F preferred shares from a former director. The interest and principal are payable at maturity. The loan is unsecured. For the three and nine months ended November 30, 2023 there were repayments of $27,000 and $81,000 . respectively on the note.
[15]	The note, with an original principal balance of $1,650,000, may be pre-payable at any time. The note balance includes an original issue discount of $150,000 and was issued with a warrant to purchase 250,000,000 shares at an exercise price of $0.037 per share with a 3-year term and having a relative fair value of $1,284,783, The discounts are being amortized over the term of the loan. After allocating these charges to debt and equity according to their respective values, a debt discount of $1,284,783 with a corresponding adjustment to paid in capital. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $146,393 and $348,667 respectively, with an unamortized discount of $865,764 at November 30, 2023.
[16]	Original $170,000 note may be pre-payable at any time. The note balance includes an original issue discount of $20,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $9,026 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from July 28, 2023 to March 1, 2025 with all other terms and conditions remaining the same.
[17]	A warrant holder exchanged 955,000,000 warrants for a promissory note of $3,000,000, bearing interest at 15% with a two year maturity. The fair value of the warrants was determined to be $2,960,500 with a corresponding adjustment to paid-in capital and a debt discount of $39,500 which will be amortized over the term of the loan. Principal and interest due at maturity. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $4,923 and $14,216 respectively, with an unamortized discount of $16,552 at November 30, 2023.
[18]	Original $400,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $27,821 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from September 7, 2023 to March 1, 2025 with all other terms and conditions remaining the same.
[19]	Original $475,000 note may be pre-payable at any time. The note balance includes an original issue discount of $75,000. Principal and interest due at maturity. Secured by a general security charging all of RAD’s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $36,729 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from September 8, 2023 to March 1, 2025 with all other terms and conditions remaining the same.
[20]	Original $350,000 note may be pre-payable at any time. The note balance includes an original issue discount of $50,000. Principal and interest due at maturity. Secured by a general security charging all of the Company’s s present and after-acquired property. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $13,295 and $25,585 respectively, with an unamortized discount of $0 at November 30, 2023. This loan is in default. No notices have been sent by lender. On November 29, 2023, the parties extended the maturity date from October 13, 2023 to March 1, 2025 with all other terms and conditions remaining the same.
[21]	On October 28, 2022 the Company entered into an loan facility with a lender for up to $4,000,000 including an original issue discount of $500,000. In exchange the Company will issue one series F Preferred Share, extended 329 series F warrants with a March 1, 2026 maturity to a new October 31, 2033 maturity, and issue up to 10 tranches with each tranche of $400,000, with cash proceeds of $350,000 an original issue discount of $50,000, October 31, 2026 maturity, and 61 Series F warrants with a October 31, 2033 maturity. Secured by a general security charging all of the Company’s present and after-acquired property. At November 30, 2022 the Company has issued 6 tranches as follows: October 28, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants and 1 Series F Preferred Share having a relative fair value of $299,399. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,274 and $7,613 respectively, with an unamortized discount of $340,411 at November 30, 2023. November 9, 2022, $400,000 loan, original issue discount of $50,000 , 61 Series F Preferred Share warrants having a relative fair value of $299,750. For the three and nine months ended November 30, 2023, 2023, the Company recorded amortization expense of $3,234 and $7,510 respectively, with an unamortized discount of $340,929 at November 30, 2023. November 10, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $302,020. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,991 and $6,891 respectively, with an unamortized discount of $343,990 at November 30, 2023. November 15, 2022, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three nine months ended November 30, 2023, the Company recorded amortization expense of $3,295 and $7,665 respectively, with an unamortized discount of $340,151 at November 30, 2023. January 11, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,355 and $7,821 respectively, with an unamortized discount of $339,368 at November 30, 2023. February 6, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $299,959. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,231 and $7,503 respectively, with an unamortized discount of $340,923 at November 30, 2023. April 5, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $296,245. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $3,335 and $6,608 respectively, with an unamortized discount of $339,637 at November 30, 2023. April 20, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $302,219. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,723 and $4,930 respectively, with an unamortized discount of $347,290 at November 30, 2023. May 11, 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $348,983. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $0 and $0 respectively, with an unamortized discount of $398,983 at November 30, 2023. October 27 2023, $400,000 loan, original issue discount of $50,000, 61 Series F Preferred Share warrants having a relative fair value of $261,759. For the three and nine months ended November 30, 2023, the Company recorded amortization expense of $2,044 and $2,044 respectively, with an unamortized discount of $309,715 at November 30, 2023.
[22]	Funds received December 1 , 2023, after reporting period.
[23]	On November 30, 2023 , the Company entered into an agreement where the lender will buy pay the Company $350,000 in exchange for thirteen future monthly payments of $36,750 commencing on April 30,2024 through to April 30, 2025 totaling $477,750. The effective interest rate is 35% per annum. As the proceeds were received on December 1, 2023 , this loan will be recorded next quarter. Secured by a general security charging all of RAD’s present and after-acquired property. Default rate of 15% per annum calculated daily on any missed monthly payment.

Summary of Preferred Stock Warrant Activity (Details) - Preferred Stock [Member] - Warrant [Member]	9 Months Ended
	Nov. 30, 2023 $ / shares shares
Accumulated Other Comprehensive Income (Loss) [Line Items]
Outstanding at beginning \| shares	695
Weighted average exercise price at beginning \| $ / shares	$ 1.00
Weighted average remaining years beginning	10 years
Issued \| shares	244
Issued \| $ / shares	$ 1.00
Issued	9 years 10 months 17 days
Exercised \| shares	0
Exercised \| $ / shares
Forfeited and cancelled \| shares	0
Forfeited and cancelled \| $ / shares
Outstanding at ending \| shares	939
Weighted average exercise price at ending \| $ / shares	$ 1.00
Weighted average remaining years ending	9 years 9 months

The table below represent the common shares issued, issuable and outstanding at November 30, 2023 and February 28, 2023: (Details) - shares	Nov. 30, 2023	Feb. 28, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Issued	7,715,143,227	5,848,741,599
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Issued	7,715,143,227	5,836,641,599
Issuable		12,100,000
Issued, issuable and outstanding	7,715,143,227	5,848,741,599

Summary of Common Stock Warrant Activity (Details) - Common Stock [Member] - Warrant [Member]	9 Months Ended
	Nov. 30, 2023 $ / shares shares
Accumulated Other Comprehensive Income (Loss) [Line Items]
Outstanding at beginning \| shares	314,217,451
Weighted average exercise price at beginning \| $ / shares	$ 0.114
Outstanding at beginning (in years)	1 year 11 months 12 days
Issued \| shares
Issued \| $ / shares
Exercised \| shares
Exercised \| $ / shares
Forfeited and cancelled \| shares
Forfeited and cancelled \| $ / shares
Outstanding at ending \| shares	314,217,451
Weighted average exercise price at ending \| $ / shares	$ 0.114
Outstanding at ending (in years)	1 year 2 months 12 days

Summary of Common Stock Option Activity -Employee Stock Options (Details) - Equity Option [Member] - $ / shares	9 Months Ended
	Nov. 30, 2023	Feb. 28, 2023
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Outstanding at beginning	95,725,000
Outstanding at beginning	$ 0.02
Weighted average remaining years	4 years	4 years 9 months
Issued
Issued
Exercised
Exercised
Forfeited, extinguished and cancelled	(21,275,000)
Forfeited, extinguished and cancelled	$ 0.02
Weighted average remaining years	4 years 7 months 6 days
Outstanding at ending	74,450,000
Outstanding at ending	$ 0.02

STOCKHOLDERS’ EQUITY (DEFICIT) (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 30, 2023	Aug. 31, 2022	Nov. 30, 2023	Nov. 30, 2022	Feb. 28, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Increase in shares authorization	10,000,000,000		10,000,000,000		10,000,000,000
Issuance of shares	6,500,000		6,500,000		12,100,000
Fair value	$ 44,460		$ 44,460
Payment for services	$ 83,200		83,200
Gain on settlement of debt			$ 38,640
Equity Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Issuance of shares	675,336,434		1,859,901,628
Gross proceeds	$ 1,468,477		$ 7,841,466
Net proceeds	1,412,158		7,527,190
Issuance costs	$ 56,320		$ 314,276
Minimum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Increase in shares authorization	7,225,000,000		7,225,000,000
Maximum [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Increase in shares authorization	10,000,000,000		10,000,000,000
Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Relative fair value	$ 1,209,206		$ 1,209,206
Share based compensation	$ 47,462	$ 150,896	$ 0	$ 0

Summary of rent expense and operating lease cost are recorded over the lease terms on a straight-line basis. (Details)	Nov. 30, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
November 30, 2024	$ 229,016
November 30, 2025	207,558
November 30, 2026	207,558
November 30, 2027	207,558
November 30, 2028	207,558
November 30, 2029 and after	501,599
Total lease payments	1,560,847
Less: Interest	(450,015)
Present value of lease liabilities	$ 1,110,832

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)

3 Months Ended

9 Months Ended

Jan. 28, 2022

Sep. 30, 2021

Mar. 10, 2021

Dec. 18, 2020

Nov. 30, 2023

Aug. 31, 2022

Nov. 30, 2023

Nov. 30, 2022

Feb. 28, 2023

^[1]

Commitments and Contingencies Disclosure [Abstract]

the Company entered into a 15-month lease agreement for office space at 18009 Sky Park Circle Suite E

Annual rent

$ 1,500

$ 1,538

$ 15,880

$ 3,859

Security deposit

$ 1,500

$ 18,462

$ 15,880

$ 3,859

$ 17,380

$ 21,239

the Company entered into a 10 year lease agreement for a manufacturing facility at 10800 Galaxie Avenue, Ferndale, Michigan, 48220, commencing on May 1, 2021 through to April 30, 2031 with a minimum base rent of $15,880 per month

the Company entered into a 3-year lease agreement for a vehicle commencing September 30, 2021 through to April 30, 2031 with a minimum base rent of $1,538 per month.