FAQ-reverse-split

1. I’ve heard reverse splits wipe out retail shareholders. Will my investment be gone?

No.

A reverse split does not eliminate your investment. It simply adjusts the number of shares you own and the price per share proportionally.

AITX is implementing a 100-to-1 reverse split, meaning every 100 shares become 1 share, while the price adjusts accordingly the number of shares outstanding is reduced proportionally, with corresponding adjustments made by the market. Your overall ownership percentage remains the same immediately following the split.

It is important to understand that reverse splits vary widely.

2. Why is AITX doing a reverse split?

The primary purpose is to reposition the Company structurally and support an intended move from OTC-ID to the OTCQB Venture Market.
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This action aligns with previously communicated strategic plans and long-term objectives, including:
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• Improving market positioning
• Advancing toward higher trading tiers
• Supporting a multi-year roadmap focused on improving corporate structure, reporting standards, and market eligibility criteria consistent with higher-tier public market requirements over time
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The reverse split itself does not change the Company’s underlying business operations or financial performance and is a structural action aligned with broader compliance and market positioning objectives.

3. Why is moving to OTCQB considered important?

OTCQB is generally viewed as a higher-quality trading tier compared to OTC-ID because it includes:
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• Increased reporting transparency requirements
• Ongoing compliance standards
• Minimum bid price requirements
• Greater visibility among investors and market participants.
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While uplisting does not directly improve financial performance, it can enhance transparency, reporting discipline, and market perception when combined with ongoing operational execution.

4. I’ve seen many reverse splits end badly for retail investors. Why might this be different?

First, honesty matters: reverse splits do not guarantee positive outcomes. Some companies perform reverse splits during distressed situations or as repeated structural resets.
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The Company believes its current situation differs from some historical examples because:
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• The Company continues to operate and grow within a defined technology sector,
• It has real products, customers, and ongoing revenue,
• The reverse split is tied to a strategic market positioning goal rather than emergency liquidity needs.
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That said, markets involve risk, and no outcome can be guaranteed. The objective here is to position the Company structurally while continuing to execute operationally.

5. What happened in 2025, and why is it part of this decision?

2025 was a year of growth for AITX — but growth occurred at a slower pace than forecasted.
Key points:
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• Revenue increased, but did not meet aggressive triple-digit growth expectations.
• The Company did not achieve the planned milestone of operational positive cash flow by August.
• External market conditions, including broader business-to-business slowdown periods, contributed to challenges.
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These factors likely contributed to market performance and influenced the decision to pursue structural changes that support long-term positioning.

6. What is operational positive cash flow and why does it matter?

Operational positive cash flow means the Company's core operations generate enough cash to fund ongoing expenses.

Achieving this milestone is important because it may:

• strengthen operational stability,
• reduce reliance on raising capital through share issuances,
• open access to more traditional financing options.
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While achieving positive cash flow does not eliminate future financing needs or dilution entirely, it represents a major step toward long-term sustainability.

7. How is leadership demonstrating commitment during this transition?

As founder, CEO, and CTO, Steve Reinharz has expressed intent to explore compensation structures that further align leadership outcomes with long-term Company performance and evolving circumstances.
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This includes:
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• deferring conversion of significant deferred compensation,
• restructuring compensation to include performance-based targets,
• reinforcing alignment between leadership outcomes and shareholder outcomes.
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Any such actions would be subject to applicable approvals, market conditions, and the Company’s evolving operational needs.

8. What can retail investors do to help the Company?

The Company does not encourage investment promotion or solicitation by shareholders.
Shareholders who choose to discuss the Company publicly are encouraged to rely on publicly available information and to avoid making projections, guarantees, or investment recommendations but can:

• encourage others to learn about the Company,
• share publicly available information responsibly,
• help broaden visibility and understanding of the Company’s technology and strategy.
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Investors should always make independent decisions based on their own research and risk tolerance.

9. What is the long-term vision following this step?

The reverse split and OTCQB positioning align with a broader multi-year roadmap that includes:

• continued operational execution,
• pursuing operational positive cash flow,
• strengthening corporate structure,
• and continuing to improve operational execution, financial discipline, and corporate structure consistent with higher public market standards.

FORWARD-LOOKING STATEMENTS AND RISK DISCLOSUREIMPORTANT NOTICE REGARDING THE PROPOSED REVERSE STOCK SPLIT
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This communication by Artificial Intelligence Technology Solutions, Inc. (the “Company”) contains "forward-looking statements" within the meaning of the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these statements by words such as "anticipate," "believe," "plan," "expect," "intend," "will," "should," "could," or similar expressions. These statements involve substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied.The proposed reverse stock split is currently described in a Preliminary Information Statement filed with the SEC. Under federal securities laws, the Company must wait at least 10 calendar days before filing a Definitive Information Statement. There is no guarantee that the SEC will not issue "comment letters" or raise objections to the filing, which could delay or prevent the split entirely. Additionally, implementation of the reverse stock split, including the issuance of a new CUSIP number and ticker symbol, is subject to the review and processing of FINRA under Rule 6490. FINRA has the authority to issue a Deficiency Determination and refuse to process the corporate action if it finds the disclosure is incomplete, inaccurate, or if it perceives promotional activity. This communication is based on management’s intent and are not a guarantee that the split will be approved by regulators or implemented as planned. We urge you to read the Preliminary Information Statement on Schedule 14C and the forthcoming Definitive Information Statement carefully once available on the SEC's website (www.sec.gov), as they contain important information about the Company and the proposed reverse stock split. Because the Company’s Common Stock trades on the OTC Markets (currently under the symbol “AITX”, the Company must submit the reverse stock split as a corporate action to FINRA for processing in accordance with FINRA Rule 6490 and related requirements under SEC Rule 10b-17. Please be further advised that the Reverse Stock Split will not be reflected in trading or stockholder accounts until FINRA processes the corporate action and the Effective Time occurs (following the Nevada Reverse Stock Split filing and the 20-day waiting period under Rule 14c-2). There is no assurance that FINRA will process the reverse split.All content on this website, including but not limited to text, graphics, logos, images, software, and design elements, is the property of AITX and is protected by United States and international copyright laws. Unauthorized reproduction, distribution, or use of any content from this website is strictly prohibited without prior written consent from AITX.

AITX Retail Investor FAQ

Reverse Split and OTCQB Uplisting