v3.25.2
STOCKHOLDERS’ EQUITY (DEFICIT)
 3 Months Ended
May 31, 2025
Equity [Abstract]  
STOCKHOLDERS’ EQUITY (DEFICIT)

12. STOCKHOLDERS’ EQUITY (DEFICIT)

 

Summary or Preferred Stock Activity

 

Series C Convertible, Redeemable Preferred Stock (Temporary Equity)

 

On February 10, 2025, in connection with a Share Purchase Agreement the Company created a new class of Series C Convertible Redeemable with 1,000 authorized shares.

 

In exchange for 306 Series C Convertible Redeemable Preferred Shares , the Company received gross proceeds of $306,000 with net proceeds of $278,580 after paying $6,000 in legal fees and $21,420 in broker fees both charged against paid in capital. The Company must redeem the shares at stated capital of 1,200 per share and a 1.09 premium at 180 days after issuance. The Company recorded the 306 outstanding shares at its redemption value of $402,084 at February 28, 2025, with the offsetting adjustment to paid in capital. On May 10, 2025 the Company issued the 12% quarterly dividend in 9.19 Series C shares with a redemption value of $12,073. At May 31, 2025 there were 315 outstanding series C shares with a redemption value of $414,157. Ay February 28, 2025 there were 306 outstanding series C shares with a redemption value of $402,084.

 

Series F Convertible Preferred Stock

 

Each holder of Series F Convertible Preferred Shares may, at any time and from time to time convert all, but not less than all, of their shares into a number of fully paid and nonassessable shares of common stock determined by multiplying the number of issued and outstanding shares of common stock of the Company on the date of conversion by three and 45 100ths (3.45) on a pro rata basis.

 

Summary of Preferred Stock Warrant Activity

 

 

   Number of Series F Preferred Warrants  

Weighted

Average Exercise Price

  

Weighted

Average Remaining Years

 
Outstanding at February 28, 2025   939   $1.00    8.5 
Issued   —    —    — 
Exercised   —    —    — 
Forfeited and cancelled   —    —    — 
Outstanding at May 31, 2025   939   $1.00    8.25 

 

Summary of Common Stock Activity

 

For the three months ended May 31, 2025:

- the Company issued 1,900,000,000 common shares with gross proceeds of $2,813,040 and net proceeds of $2,691,294 after issuance costs of $121,746. Included in the net proceeds are $270,186 in share proceeds receivable received after quarter year end.

 

- the Company issued 685,000,000 common shares to repay $1,213,000 in loans payable and $37,500 in accrued interest all totaling $1,250,500.

 

Summary of Common Stock Warrant Activity

 

For the three months ended May 31, 2025 and May 31, 2024, the Company recorded a total of $80,355 and $83,323 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, 2025   41,271,449   $0.003    2.44 
Issued   —    —    — 
Exercised   —    —    — 
Forfeited and cancelled   —    —    — 
Outstanding at May 31, 2025   47,271,449   $0.001    2.18 

 

 

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 March 1, 2025   182,228,131   $0.02    3.10 
Issued   —    —    — 
Exercised   —    —    — 
Forfeited, extinguished and cancelled   (3,322,058)  $0.02    (2.99)
Outstanding at May 31, 2025   178,906,073   $0.02    2.85