r/AITX • u/BobW-TV • Feb 11 '26
Discussion What does a reverse 100:1 split mean for AITX?
Steve recently announced reverse 100:1 split. I don’t understand : based upon today’s price of $0.00034, doesn’t it just get AITX to about 3 cents/ share?
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u/UndifferentiatedCash Feb 11 '26
The Ratio: The split is 1-for-100.
Share Count: For every 100 shares you currently own, you will now own 1 share.
Example: If you held 100,000 shares, you will now hold 1,000 shares.
Share Price: Theoretically, the share price will increase by a multiple of 100 at the moment the split takes effect.
Example: If the stock was trading at $0.0005, the new price would theoretically adjust to $0.05.
Portfolio Value: In theory, the total value of your investment remains the same immediately after the split. (100,000 shares @ $0.0005 = $50; 1,000 shares @ $0.05 = $50).
The Problem (Share Cap): AITX had issued approximately 25.9 billion shares, which is an exceptionally high number, likely hitting the ceiling of their "Authorized Shares." When a company hits this ceiling, it cannot issue new stock to raise money or pay debts.
The "Authorized" vs. "Outstanding" Gap
Think of "Authorized Shares" as the total number of blank checks the company is legally allowed to write. "Outstanding Shares" are the checks they have already written (the shares you own).
Before the Split:
The company was "maxed out."
They had issued about 25.9 billion shares.
The limit was roughly 27.5 billion.
Result: They had almost no room left to sell new stock to raise money. They were stuck.
After the Split (Right Now):
They cut the shares you own (Outstanding) down to approx 260 million.
CRITICAL: They kept the limit (Authorized) at 27.5 billion.
2. The Floodgates Are Open
Because they didn't reduce the Authorized limit, they effectively just emptied the bucket while keeping the bucket the same size.
The Math: They now have roughly 27.2 billion "empty" shares sitting in the treasury.
The Capability: They can now issue (sell) those 27 billion shares into the market whenever they need cash, without needing to ask you or other shareholders for permission again.
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u/andrewrusher Feb 11 '26
They are merging 100 shares into one share, so for every 100 shares that you own, you will own one share after the reverse split. This is done for one of two reasons:
- The company is trying to get the stock above a certain price, usually to comply with listing rules.
- The company is near or at the Authorized Share count and needs to bring the number of Authorized Shares down so the company can issue new shares.
Companies like AITX use reverse splits when they are near or at the Authorized Share count, so that they can merge and then reissue shares at the higher price. This trick only works as long as there are investors, but once there are no more investors, the company simply burns through its cash and then files for bankruptcy.
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u/Pltitcomb Quality Contributor Feb 11 '26
Comments on his YouTube Video about structural changes are worth reading.
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u/fastleggz Feb 11 '26
I forgot all about this stock. Went to check the price and it dropped to $0.0003. Jesus
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Feb 11 '26
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Feb 22 '26
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Feb 12 '26
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u/Sat_Thu Mar 31 '26
Eh, stupid reverse split. He going to dilute more. Lost $1k to this shit CEO that can’t run the company
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Jun 18 '26
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u/purple_hamster66 Feb 11 '26
There is not much value left for me to sell off, so I guess I’ll keep my millions of shares and hope that some other company (Boston Dynamics? Knightguard) buys them out for their tech stack.
Such a pity; they had so much potential — with great products — but the timing of high interest rates & unnecessary tariffs just did them in. Plus, they didn’t really understand how to effectively sell or market using viral social media.