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 quarterly report on Form 10-Q with the Securities and Exchange Commission for the period ended August 31, 2021. AITX is a ‘full SEC reporting’ company that files detailed annual and quarterly reports as prepared by a PCAOB registered firm and reviewed by an independent auditor.
“The first half of our fiscal year saw continued progress, development, plus exponential sales growth,” said Steve Reinharz, President and CEO of AITX. “Both subscription revenues and sales revenues saw dramatic increases year over year.”
Key Takeaways from the 10-Q Filing
The Company completed actions to eliminate almost all of its dilutive financial instruments as follows: 1. Substantially all of the convertible debt has been paid or converted; 2. The number of Series F convertible preferred Shares were reduced; 3. An agreement was reached amongst all Series F shareholders not to convert their shares prior to August 2023, unless there is an uplisting of the Company’s stock or an asset sale.
Unless subsequent events reinstate a dilutive financial instrument, none of which are under consideration, the number of outstanding shares of the company will only grow as a result of actions related to the effective and current S-3.
Device parts inventory (on hand) as of August 31, 2021 at $488K, up from $25K as of August 31, 2020, an increase of 1,852%. This increase supports both organic growth, inventory for fast delivery, and support for an expanding sales pipeline.
Research and Development spending fiscal YTD August 31, 2021 at $1,334K, up from the previous FY period of $190K, a 602% increase. The increase supports investments in new project development, increased engineering, programming resources, and other R&D initiatives.
Robotic Assistance Devices (RAD) Sales Growth
The Company reports that for the quarter ended August 31, 2021, AITX’s second quarter of fiscal year 2022, device subscription revenues, referred to as Recurring Monthly Revenue (RMR), increased 69% over the same period of the prior year. Six month total revenues, including all sales and subscriptions, increased 404% over the prior fiscal year’s period.
Sales Funnel Development
The Company reports that its sales funnel continues its solid growth as its sales team continues to produce significant activity and results. RAD President and COO, Mark Folmer commented, “We expect to close the month of October with an additional RMR of nearly $14,000. This will bring RAD’s total RMR to just over $80,000. We’re expected to cross the $1 million annualized RMR run rate in the current fiscal quarter, ending November 30.”
New Products Announced – RAD 3.0
On Wednesday, October 13, 2021, the Company announced its new lineup of RAD 3.0 devices. RAD 3.0 marks a complete design and re-engineering of nearly all RAD solutions. “The entire RAD team worked feverishly hard throughout Q2 so that we could preview all of the improvements in design and performance that we showcased earlier this week,” Reinharz added. “The response to our RAD 3.0 announcements has been overwhelmingly positive. I’m sure that we have a hit on our hands and we cannot wait for our customers to see these in person,” Reinharz commented.
The AITX Investors Open House and RAD 3.0 Reveal video is available for viewing at https://tinyurl.com/hkp5ds
“Fiscal year 2022 continues to confirm RAD’s inevitable progress,” Reinharz added. “These second quarter results reveal our constant grind, whether it’s inventing new products, penetrating new markets, or solidifying our financial position. There is so much more on the immediate horizon that we expect to conquer, making FY 2022 an incredibly big year for us in sales, team, tech and industry stature,” Reinharz concluded.
The Company recommends that interested parties examine the published 10-Q to review all details, and reminds readers that this release is limited to the applicable highlights of the quarter.
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.