RELATED PARTY TRANSACTIONS |
6 Months Ended |
|---|---|
Aug. 31, 2026 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | 10. RELATED PARTY TRANSACTIONS
For the three months ended August 31, 2026, the Company had net advances from its loan payable-related party of $12,448 and for the six months ended August 31, 2026, the Company had net repayments from its loan payable-related party of 117,239. For the three months and six months ended August 31, 2025 , the Company had no repayments of net advances from its loan payable-related party. At August 31, 2026 the loan payable-related party was $344,394 and $461,633 at February 28, 2026. Included in the balance due to the related party at August 31, 2026 is $267,862 of deferred salary and interest, $159,263 of which bears interest at 12%. As of February 28, 2026, included in the balance due to the related party is $285,638 of deferred salary all of which bears interest at 12%. The accrued interest included in the loan at August 31, 2026, and February 28, 2026, was $89,699, and $79,268, respectively.
During the six months ended August 31, 2026, the Company paid out gross payments to the CEO of $359,888 offset by a bonus accrual of $500,000, which yields a net increase of $140,112 relating to deferred compensation for CEO. This was all in accordance with a December 2023 board action allowing for $1 million of annual discretionary compensation as well as a February 28, 2025, board action which provided an additional $1.5 million in compensation. The balance of deferred compensation for CEO was $1,951,968 and $1,811,856 at August 31, 2026, and February 28, 2026, respectively.
During the six months ended August 31, 2025, the Company paid out gross payments to the CEO of $1,504,917 offset by a bonus accrual of $500,000, which yields a net change of $1,004,917 relating to deferred compensation for CEO. This was all in accordance with a December 2023 board action allowing for $1 million of annual discretionary compensation as well as a February 28, 2025.
For the three and six months ended August 31, 2026, the Company accrued $ (three and six months ended August 31 2025-$) of incentive compensation plan payable to the CEO . This will be payable in Series G Preferred Shares which are redeemable at the Company’s option at $ per share. At August 31, 2026, and February 28, 2026, there was $ and $ of incentive compensation payable.
During the three months ended August 31, 2026 and 2025, the Company was charged $555,186 and $598,277, respectively for fees for research and development from a company partially owned by a principal shareholder.
During the six months ended August 31, 2026 and 2025, the Company was charged $945,316 and $1,335,152, respectively for fees for research and development from a company partially owned by a principal shareholder. The principal shareholder received no compensation from this partially owned research and development company and the fees were spent on core development projects. As at both August 31, 2026, and February 28, 2026, the balance due to this company was $76,532 and $160,557, respectively.
ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
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