AITX announced a comprehensive cost‑control program that will trim its payroll expense from a peak of roughly $760,000 per month in 2025 to about $630,000 per month beginning March 1 2026, a reduction of $130,000 each month. The company also secured an additional $50,000 in monthly savings through more efficient purchasing, lower assembly costs, and tighter vendor management, bringing total monthly expense cuts to $180,000.
The expense cuts are part of a broader operational realignment that includes a temporary halt to research and development investment in the HERO and RADDOG mobile robotic initiatives. Instead, AITX is moving the ROAMEO product line from the R&D phase into active production and deployment, positioning it as the primary near‑term revenue generator. The company’s workforce realignment involves reducing overtime and consolidating support functions, which is expected to further lower payroll costs without compromising production capacity.
Financially, AITX is still grappling with a $5.40 million first‑half cash flow deficit and a $160 million accumulated deficit. The first‑half deficit follows a $7.1 million loss in Q4 2025, underscoring the company’s ongoing liquidity challenges. To shore up capital, AITX is pursuing additional equity financing and a potential $5 million credit facility, while having recently settled more than $4.5 million of debt for less than 10% of the amount owed, generating a one‑time gain that helped improve its balance sheet.
Management emphasized that the cost‑cutting program is designed to accelerate the company’s path to operationally positive cash flow by May 2026. CEO Steve Reinharz said, “By focusing our resources on the ROAMEO line and tightening our cost base, we are positioning AITX to deliver sustainable profitability in a highly competitive security robotics market.” The company’s debt restructuring and the one‑time gain from debt settlement provide a temporary cushion, but the long‑term goal remains to convert its rapid revenue growth into cash‑flow positivity.
In the broader market context, the security robotics industry is valued at nearly $50 billion, with competitors such as Boston Dynamics and iRobot vying for market share. AITX’s pivot to a production‑focused strategy is intended to differentiate it through AI‑driven “Solutions‑as‑a‑Service” offerings that promise cost savings over traditional manned guarding. The company’s disciplined approach to cost control, coupled with a clear focus on high‑margin production, signals a strategic shift that could improve its competitive position and financial resilience.
The combination of payroll reductions, additional savings, and a strategic shift to a revenue‑generating product line is expected to reduce operating cash burn and improve liquidity. If the company meets its May 2026 cash‑flow target, it would mark a significant milestone toward sustainable profitability and could enhance investor confidence in AITX’s long‑term strategy.
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