Is AITX diluting shareholders? — Yes — Heavy Dilution
Artificial Intelligence Technology Solutions Inc.'s share count has grown 247% over the last ~39 months, an annualized rate exceeding 50% per year. Existing shareholders' ownership is being diluted rapidly.
Share-Count History — From AITX Annual Filings
Convertible Notes — Cited Language
“22 the Company entered into a Simple Agreement for Future Equity (SAFE) contract to invest $50,000 to acquire shares of a company’s capital stock at a discount. On June 3, 2024 the Company acquired a $50,000 convertible note receivable from Nightingale Intelligent Systems, Inc., a private Delawar…”
“yable, net of discount $ 519,105 *In default F-22 Table of Contents ARTIFICIAL INTELLIGENCE TECHNOLOGY SOLUTIONS INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (1) This note was transferred from convertible notes payable because in August 2022 it was no longer convertible due to restrictions…”
Reverse Split — Cited Language
“eported and summarized by OTC Markets Group, Inc. On August 24, 2018, the Company undertook a 100:1 reverse stock split and on March 27, 2020 a 10,000:1 reverse split. The share capital has been retro”
What Dilution Means for AITX Shareholders
Dilution refers to the reduction in existing shareholders' percentage ownership when a company issues new shares. Companies dilute for multiple legitimate reasons — funding growth, acquiring other companies, compensating employees with equity, or converting debt to equity. Whether dilution is good or bad depends on what the new capital is being used for and whether per-share value grows faster than the share count. For Artificial Intelligence Technology Solutions Inc., share count went from 4,833,100,360 on 2022-02-28 to 16,747,453,768 on 2025-05-24 — a change of 247% over approximately 39 months.
The dilution mechanism shareholders should monitor most closely is the presence of an ATM (at-the-market) equity facility. ATMs give the company standing authority to issue new shares into the open market at any time, often without separate shareholder notice. They create continuous-issuance overhang — even days when no new shares are sold, the facility itself weighs on the stock as supply might appear at any moment. Artificial Intelligence Technology Solutions Inc.'s most recent annual filing does not mention an ATM facility — though that status can change with each new financing round.
Convertible notes are a separate forward-dilution mechanism: each note converts into shares at a defined price (or formula) at maturity, automatically expanding share count. The presence of large convertible-note balances on the balance sheet — even before conversion — is a material signal that future dilution is contractually scheduled. Artificial Intelligence Technology Solutions Inc. has convertible notes outstanding per recent SEC filings. The cited language above shows the specific note series referenced. Conversion mechanics — strike price, ratio, floor — determine the magnitude of forward dilution exposure.
Artificial Intelligence Technology Solutions Inc. has executed a reverse stock split. Reverse splits reduce the share count proportionally and are typically taken to (a) maintain exchange listing standards (e.g. above NYSE/NASDAQ $1 minimum bid) or (b) make per-share prices more institutional-presentable. Reverse splits do NOT change the value of an investor's holding immediately — but they often precede further financing activity, and the share-count growth that follows a reverse split is the relevant signal to watch.
For broader context on AITX's risk profile, see the AITX Overview page. For audit-opinion status, see the Going Concern page.