AITX’s RAD Reports Record Order Intake for Q2 FY 2025
Company Closing the Gap to Achieve $10 Million+ in Annual Recurring Revenue Run Rate by End of Fiscal Year
Detroit, Michigan, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Artificial Intelligence Technology Solutions, Inc. (the "Company") (OTCPK:AITX), a global leader in AI-driven security and productivity solutions, along with its wholly-owned subsidiary Robotic Assistance Devices, Inc. (RAD), is pleased to announce that its second quarter of FY 2025 marked its best quarter to date for order intake.
During the three months ended September 30, RAD secured contracts for 172 units, which, upon deployment and client acceptance, are expected to generate an estimated $212,000 in recurring monthly revenue (RMR), equating to $2.544 million in annual recurring revenue (ARR). Recurring remote monitoring contracts and one-time installation charges will add to this revenue.
Note that the Company has a perfect record of deploying, invoicing and collecting on orders received, but until that cycle is complete the Company must clarify the exact status as described in the previous paragraph.
Troy McCanna, Sr. VP Revenue Operations and CSO of RAD, commented, “We're thrilled with the remarkable progress we've made this quarter, but we see this as just the beginning. Our record-breaking performance in Q2 underscores that we are only just hitting our stride. It will be continued hard work, but we have a path to achieve $1 million in RMR by the end of the fiscal year, and that’s our single focus.”
Mark Folmer, CPP, PSP, FSyI, President of RAD, stated, “This quarter’s orders spanned RAD’s lineup of ROSA, RIO and AVA, and we’re very proud that we were able to quick-ship many units as our logistics and production processes continue rapid improvement. The REX (RAD’s Detroit based factory) is ready to chew through this backlog and have these revenues reflected in our financial statements. It’s exciting that we have a clear path to $1 million in RMR, that RAD is effectively operationally positive cash flow, net of R&D and other expenses, and it’s exciting to think of the effects of AIR when it is fully deployed across the lineup.”
The Company noted that these contracts and purchase orders are typically secured under a SaaS subscription model, where devices must first be manufactured or allocated from inventory, deployed, activated, and accepted by the client before they begin generating revenue. Only after this process is completed do the devices start contributing to recurring revenue streams.