HENDERSON, Nev.--(BUSINESS WIRE)--Artificial Intelligence Technology Solutions, Inc., (OTCPK:AITX), a global leader in AI-driven security and productivity solutions for enterprise clients, filed its annual report on Form 10-K with the Securities and Exchange Commission for its fiscal year 2021 ended February 28, 2021. AITX is a ‘full SEC reporting’ company that files detailed annual and quarterly reports.
“I am so pleased to share the results of such a pivotal year for the company,” said Steve Reinharz, President and CEO of AITX. “The company has experienced significant improvement in all areas, and the financial state of AITX has never been stronger.”
Key takeaways from the 10-K filing
Differences in Derivative Liability
The amount of derivative liability is a function of the underlying value of convertible debt and associated interest which reduced from to approximately $9,521,000 at February 29, 2020 to $943,000 at February 28, 2021 due to conversions and debt settlements and exchanges during the year and the change in fair value of derivative liabilities which fluctuates based on the change in the market price of the company's common stock. AITX therefore saw a reduction in derivative liability from $6,890,688 at February 29, 2020 to $446,466 at February 28, 2021.
Debt Exchange & New Financing at Market Price
In December of 2020, the company announced that it had exchanged approximately $7.7 M of current convertible debt and interest which had conversion rights at a conversion price discount of approximately 50% and whose debt bore interest at a default rate of 24% for $7.7 M in promissory notes along with warrants. The new debt has three year terms and bears interest at 12%. The company extended payment terms, improved interest rates, removed the associated derivative liability and stress on market price due to high volume discounted conversions. The company also issued $825,000 in new convertible debt that converts at market price and not the highly discounted conversion price that was done before. Reinharz added “Cleaning up this debt is a big deal!”
“FY 2021 was just incredible for AITX,” Reinharz added. “We couldn’t have achieved this level of success without the tireless efforts of the entire team. From engineering to sales to production, every member contributed to this growth. We are well underway in a significant phase of growth and we expect to increase our recurring monthly revenue run rate by a factor 5 - 20 times when compared to the monthly revenue run rate at the end of next fiscal year ending February 28, 2022,” Reinharz commented.
Reinharz also indicated that the company expects to release its first quarterly report that will cover March, April and May (the ‘10-Q’) as soon as available as it will show substantial progress over the FY 2021 10-K in terms of revenue, debt and cash. “We are on track for an amazing year. Hold on, it’s early,” Reinharz concluded.
Follow Steve Reinharz on Twitter @SteveReinharz for future AITX and RAD updates.
AITX through its subsidiary, Robotic Assistance Devices, Inc. (RAD), is redefining the $25 billion (US) security and guarding services industry through its broad lineup of innovative, AI-driven Solutions-as-a-Service business model. RAD solutions are specifically designed to provide a cost savings to businesses of between 35%-80% when compared to the industry’s existing and costly manned security guarding and monitoring model. RAD delivers this tremendous costs savings via a suite of stationary and mobile robotic solutions that complement, and at times, directly replace the need for human personnel in environments better suited for machines. All RAD technologies, AI-based analytics and software platforms are developed in-house.
CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements, including, but not limited to, the following: the ability of Artificial Intelligence Technology Solutions to provide for its obligations, to provide working capital needs from operating revenues, to obtain additional financing needed for any future acquisitions, to meet competitive challenges and technological changes, to meet business and financial goals including projections and forecasts, and other risks. Artificial Intelligence Technology Solutions undertakes no duty to update any forward-looking statement(s) and/or to confirm the statement(s) to actual results or changes in Artificial Intelligence Technology Solutions expectations.
About Artificial Intelligence Technology Solutions (AITX)
AITX is an innovator in the delivery of artificial intelligence-based solutions that empower organizations to gain new insight, solve complex challenges and fuel new business ideas. Through its next-generation robotic product offerings, AITX’s RAD and RAD-M companies help organizations streamline operations, increase ROI and strengthen business. AITX technology improves the simplicity and economics of patrolling and guard services, and allows experienced personnel to focus on more strategic tasks. Customers augment the capabilities of existing staffs and gain higher levels of situational awareness, all at drastically reduced cost. AITX solutions are well suited for use in multiple industries such as enterprises, government, transportation, critical infrastructure, education and healthcare. To learn more, visit www.aitx.ai and www.roboticassistancedevices.com, or follow Steve Reinharz on Twitter @SteveReinharz.