AITX Announces Cost Reduction Plan Targeting $2.4M Annual Savings
Artificial Intelligence Technology Solutions Inc. (AITX) announced a company-wide cost reduction plan targeting approximately $2.4 million in annualized run-rate reductions to cash selling, general and administrative (SG&A) expenditures. The plan aims to reduce monthly cash expenditures by $200,000, with full effectiveness expected by December 2026, moving the company closer to its objective of positive monthly cash flow from operations by December 31, 2026. This new objective supersedes a previously unachieved target of positive operational cash flow by May 2026. The plan includes a reduction in force affecting about 5% of its global workforce and reductions in outside consultants and other third-party costs, while the company continues to rely on external financing.
Key Highlights
- Company announced a company-wide cost reduction plan.
- Plan targets approximately $2.4 million in annualized run-rate reductions to cash SG&A expenditures.
- Monthly cash expenditure reduction expected to be $200,000.
- Reductions expected to be fully effective by December 2026.
- Company aims for positive monthly cash flow from operations by December 31, 2026.
- Plan includes a reduction in force affecting approximately 7 positions, or 5% of global workforce.
- Approximately 40% of expected cash spend reduction is from the reduction in force.
- Q1 operating expenses were $3,893,188, down 12% from prior year.
Price Impact
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