RAD Achieves Positive Operational Cash Flow
The Company Anticipates Core RAD Inc. Revenue Will Surpass Operational Expenses in September
Artificial Intelligence Technology Solutions, Inc. (the "Company") (OTCPK:AITX), a leader in AI-powered security and productivity solutions for enterprise clients, has announced that its wholly-owned subsidiary, Robotic Assistance Devices, Inc. (RAD), is on track to achieve operational profitability in September. This significant milestone is based on a comparison of core operational costs and invoiced revenues for the month.
Specifically, the total monthly payroll and health insurance expenses for AITX and its four subsidiaries amount to approximately $630,000. Of this total, around 58% (approximately $365,000) is necessary to support RAD Inc.’s full operational activities related to the production, sales, and support of its advanced security solutions. These solutions include AVA™, ROSA™, RIO™, TOM™, RAD Light My Way™, and Firearm Detection. In addition, RAD incurs about $150,000 in other operating expenses, which cover connectivity, rents, and cloud services, bringing the total monthly expenses to $515,000.
If RAD Inc. can keep its operating expenses at $515,000 for September, it will achieve positive operational cash flow for the first time. This calculation is specific to RAD Inc. and does not include AITX’s expenses for its other subsidiaries.
“This is a remarkable accomplishment for any company and reflects the value we provide to our shareholders, team members, and clients,” stated Steve Reinharz, CEO/CTO of AITX and RAD. “Our objective is to achieve our first million-dollar revenue month, and we have a solid strategy to reach this goal by the end of the fiscal year on February 28, 2025.”
AITX invests millions each year in research and development for innovative solutions, including ROAMEO™, RADDOG™, RADCam™, and various software initiatives. Additionally, the company allocates approximately $500,000 annually to maintain compliance with SEC reporting requirements.
“I am thrilled that we have a profitable subsidiary while also making investments to expand our offerings and capture as much market share as we can,” said Reinharz. “We are not content with being a $10 million per year company; we aspire to build something much larger.”
The company noted that RAD Inc.’s contracted backlog currently stands at about $175,000 in recurring monthly revenue (RMR), although this figure typically does not include margins from pass-through monitoring revenue.
Achieving positive operational cash flow is a vital milestone for companies, particularly for an OTC stock like AITX. OTC stocks often represent early-stage firms that may not have established revenue streams. Positive operational cash flow signals to investors that a company has crossed an important growth threshold.
This accomplishment not only highlights RAD’s strong business strategy but also reinforces AITX's commitment to creating sustainable value for its shareholders. By reaching operational cash flow positivity, RAD has demonstrated its ability to generate consistent revenue while effectively managing operating costs. This positions RAD as a financially resilient and growth-focused subsidiary within the larger AITX portfolio.
Operational cash flow refers to the cash generated from a company’s core business activities, excluding financing or investing activities. It provides insight into a company's capability to sustain operations without relying on external funding. For RAD, achieving positive operational cash flow signifies that the company can generate enough cash from its business operations to cover its expenses and potentially invest in future growth.
About Artificial Intelligence Technology Solutions (AITX)
AITX is a leader in delivering artificial intelligence-based solutions that help organizations gain insights, tackle complex challenges, and foster new business innovations. With its next-generation robotic products, including RAD, RAD-R, RAD-M, and RAD-G, AITX assists organizations in streamlining operations, enhancing ROI, and improving business efficiency. AITX's technology simplifies patrolling and guarding services, enabling trained personnel to focus on more strategic and high-level tasks. This enhancement increases situational awareness while significantly lowering operational costs. AITX solutions are applicable across various sectors, including enterprises, government, transportation, critical infrastructure, education, and healthcare.
For more information, contact Steve Reinharz at 949-636-7060.
Frequently Asked Questions
What is the significance of RAD's positive cash flow?
RAD's positive cash flow indicates its ability to generate sufficient earnings from operations to cover expenses, marking a crucial financial milestone.
What are the core operations of RAD Inc.?
RAD Inc.'s core operations include the production and sales of advanced security solutions such as AVA™, ROSA™, RIO™, and TOM™.
How does AITX plan to achieve growing revenues?
AITX aims to reach a million-dollar revenue month by February 2025 through enhanced operational efficiency and market expansion strategies.
What are AITX's annual research and development expenses?
AITX spends millions each year on research and development for innovative robotics and software solutions.
What industries utilize AITX's solutions?
AITX's solutions are suitable for various industries, including government, enterprises, education, healthcare, and critical infrastructure.
