AITX’s RAD Announces Operational Cash Flow Positivity

The Company Expects Core RAD Inc. Revenue to be Greater Than Operational Expenses in September

Detroit, Michigan, Aug. 26, 2024 (GLOBE NEWSWIRE) -- Artificial Intelligence Technology Solutions, Inc. (the "Company") (OTCPK:AITX), a global leader in AI-driven security and productivity solutions for enterprise clients, is proud to announce that its wholly-owned subsidiary Robotic Assistance Devices, Inc. (RAD), expects that in September 2024 it can be considered operationally profitable when comparing core operational costs against revenues invoiced that month.

Specifically, AITX and its four subsidiaries have an approximated monthly payroll and health insurance cost of $630,000. However, of those expenses approximately 58% (approximately $365,000) are what’s required to fund RAD Inc.’s complete current operations specifically related to the production, sales, and support of its selling solutions limited to AVA, ROSA, RIO, TOM, RAD Light My Way and Firearm Detection. When including approximately $150,000 in additional RAD operating expenses for items such as connectivity expenses, rents, cloud services and related services used by RAD Inc., the total necessary monthly operating expenses total $515,000.

If in September, RAD Inc. maintains that same $515,000 in operating expenses (which is expected) this will be the first month the Company has achieved positive operational cash flow. As this refers only to RAD Inc., it is net of AITX expenses related to its other subsidiaries and AITX-related public company expenses.

“This is a great achievement for any company and delivery of performance and results to our incredible base of shareholders, teammates and clients,” said Steve Reinharz, CEO/CTO of AITX and RAD. “We’re working hard to get to our first million-dollar revenue month and have a path to achieve this by the end of our fiscal year on February 28, 2025.”

AITX spends millions of dollars per year on research and development of new solutions, specifically including ROAMEO, RADDOG, RADCam and various software initiatives in addition to approximately $500,000 per year in expenses related to remaining a fully SEC reporting company.

“I’m thrilled we have the security of a profitable subsidiary while at the same time making investments that we hope will fill out our entire set of solutions so we can capture as much of the markets are pursuing and creating,” continued Reinharz. “We’re not in this for a $10 million per year company. We’re in this to try to create something exponentially bigger.”