In an earlier video I talked about huge catalysts coming up this year for AITX that could have a big effect in sending this stock higher. On October 19th AITX released an updated quarterly report, which included a revenue improvement of 400% versus the same quarter last year. Then on October 21st, AITX raised revenue guidance for Q3 which ends in November. This is huge! I’ll share details with you today that cover improvements in many areas. Also, AITX came out with some incredible new designs for their security products that I will also share.
This business wire article highlighted some of the fantastic improvements AITX has made.
But remember that OTC stocks are highly risky, so I only invest money in OTC’s that I can afford to lose. High risk versus high potential reward. And remember, this is not financial advice, and for entertainment only.
Hi investing friends, this is Lynn, and welcome back!
So Let’s go and review today’s hot stock!
Of course, AITX through its subsidiary, Robotic Assistance Devices, Inc., or RAD. is redefining the $25 billion U.S. security and guarding services industry through its 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 manned security guarding model. RAD delivers this costs savings through a suite of stationary and mobile robotic solutions that complement, or 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.
AITX, along with its subsidiaries RAD, RAD-G and RAD-M, have developed two exciting new apps, RAD Light My Way and RAD AR which provides Augmented Reality, plus the announcement of the RAD 3.0 updated product line.
AITX CEO, Steve Reinharz was thrilled to point out that, “both subscription revenues and sales revenues saw dramatic increases year over year.”
Many of us have had concerns over the share dilution that has occurred at AITX in the past, and the potential for even more share dilution. It’s great to see that AITX eliminated almost all of its dilutive financial instruments because substantially all of the convertible debt has been paid or converted. The number of Series F convertible preferred Shares were then reduced. And, the Series F shareholders have agreed not to convert their shares before August 2023, unless there is an uplisting of the Company’s stock or an asset sale.
It’s also important to know that device parts inventory of $488K, were hugely increased from the $25K in the prior year, an increase of 1,852%. This will enable AITX to remain more competitive when they have product for immediate delivery.
Of course, Steve Reinharz has been promising that that AITX would upgrade and improve their product line, and AITX’ Research and Development spending for YTD through August 31, 2021 is up 602%.
Robotic Assistance Devices (RAD) Sales Growth
The Company reports that for the quarter device subscription revenues, which is a recurring Monthly Revenue increased 69% over last year’s quarter.
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.”
Reinharz stated that, “These second quarter results reveal their constant grind, inventing new products, penetrating new markets, and improving financial results.
Total gross profit for AITX’ six-month period ended August 31, 2021 was $549,026, representing an increase of $454,924, compared to gross profit of $94,102 for the same period last year. The gross profit percentage of 78% for the six-month period ended August 31, 2021 was higher than the margin of 68% for the prior year’s corresponding period due to the shift in sales mix.
AITX assets have increased over $1 million. It’s really great to see that their net loss has decreased $5 Million dollars in the recent quarter versus last year.
Page 32 shows that the direct sales of good and services have increased this 507% over the previous quarter.
On August 15 ,2021 the Company entered into a memorandum of understanding with Ghost Robotics whereby the Company will modify and resell a Ghost Robotics (“Ghost”) product (“product, V50”), in development in exchange for the following:
First let’s take a quick look at a video clip where Steve Reinharz is introducing V50 which they are going to rename.
Now let’s talk more about AITX’ agreement with Ghost Robotics:
- the Company will pay Ghost a non-refundable marketing fee of $500,000 with $100,000 payable September 1, 2021 with the remaining $400,000 to be paid in installments of $40,000 per month over the following 10 months commencing October 1, 2021.
- the Company will purchase $85,000 of other Ghost products for research and development purposes. This amount will be credited against future purchases of 6 V50’s that the Company will modify and resell.
- Ghost agrees not to sell its V50 to three specific customers for a three-year period commencing after the first commercial sales of the V50. This is great to see that Ghost agreed to not sell to AITX’ top customers!
- the Company will be re-brand their modified version of the V50 and be responsible for its testing and support. I’m looking forward to seeing the rebranded version of this V50.
Before we go back farther into the financial details, I wanted to give you a look into RAD 3.0 and a video clip on the Redesigned Rosa.
Now let’s get back to AITX recent SEC filing. Here you can see the 404 percent increase in revenues which we discussed, but August 31, 2021 had a huge negative income expense of 35 million dollars.
Page 33 shows the main results of Operations for the six months ending August 2021 versus 2020
This was versus the negative $6,036,336 for 2020. The $29,265,037 decrease in other income was primarily due to the change in the fair value of derivatives, interest expense, and loss on the settlement of debt.
But, on a more positive note, we can again see how hard the AITX team is working in the fact that Device rentals are up 67% versus 2020, and Direct sales of goods and services were up an amazing 5,159%!
The latest news is that on October 21st AITX Raised Q3 FY 2022 Revenue Guidance. (https://aitx.ai/artificial-intelligence-technology-solutions-inc-raises-q3-fy-2022-revenue-guidance/)
As previously disclosed, AITX through RAD is expected to close October 2021 with Recurring Monthly Revenue, or RMR, of over $80,000. RAD’s President, Mark Folmer said that Sales activity has now accelerated to where they anticipate topping the $100,000 RMR milestone by the end of November 2021.
Steve Reinharz said, “This that this is such exciting progress for AITX. We expect significant revenue events before Q3 closes, and that there are several opportunities that that are expected to generate revenue that would take the company near to the $1 million in Q3 revenue.
This is incredibly exciting!
Highlights in the article include:
- High expectations of between $550K-$600K in non-recurring revenue in Q3, FY 2022 ending November 30, 2021;
- The Company expects ending the fiscal quarter in the strongest cash position ever;
- Q3 FY 2022 is expected to exceed Q3 FY 2021 by 250%-310%;
- Q3 FY 2022 is expected to be the Company’s best quarter in its history.
Steve R, said that this expected revenue growth is based on RAD’s existing sales pipeline and client reorders and does not take into consideration the revamped RAD 3.0 products that they will begin shipping by the end of the quarter. These incredible RAD 3.0 solutions are expected to be more profitable for AITX, and be more popular with customers!
I always love hearing from you, so please let me know in the comments below, what your thoughts are about AITX, also see our AITX playlist for additional news. Also, go here to review our playlist for penny stocks under $1.