AITX's RAD Achieves Positive Cash Flow Milestone
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AITX's RAD Achieves Operational Cash Flow Positivity
The Company Expects Core RAD Inc. Revenue to Exceed Operational Expenses in September
Artificial Intelligence Technology Solutions, Inc. (the "Company") (OTCPK:AITX), a leader in AI-driven security and productivity solutions for enterprise clients, announced that its wholly-owned subsidiary Robotic Assistance Devices, Inc. (RAD) anticipates becoming operationally profitable in September. This milestone is based on a comparison of the core operational costs and invoiced revenues for that month.
Specifically, the combined monthly payroll and health insurance expenses for AITX and its four subsidiaries amount to approximately $630,000. Of this figure, around 58% (approximately $365,000) is essential to fund RAD Inc.’s complete current operations 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. Additional operating expenses for RAD, which cover connectivity, rents, and cloud services, contribute another $150,000 to the total necessary monthly expenses, bringing it to $515,000.
If RAD Inc. maintains operating expenses at $515,000 for September, it will mark the first month with positive operational cash flow. This calculation pertains solely to RAD Inc., excluding AITX’s expenses for its other subsidiaries.
“This is a significant achievement for any company and a testament to the results we deliver to our shareholders, teammates, and clients,” stated Steve Reinharz, CEO/CTO of AITX and RAD. “Our goal is to reach our first million-dollar revenue month, and we have a clear strategy to achieve this by the fiscal year-end on February 28, 2025.”
AITX invests millions annually in research and development for innovative solutions, such as ROAMEO™, RADDOG™, RADCam™, and other software initiatives. Additionally, the company spends around $500,000 yearly on costs associated with maintaining SEC reporting compliance.
“I am excited that we have the stability of a profitable subsidiary while also making investments aimed at expanding our offerings and capturing as much market share as possible,” said Reinharz. “We are not satisfied with a $10 million per year company; we are striving to create something significantly larger.”
The company indicated that RAD Inc.’s contracted backlog stands at approximately $175,000 in recurring monthly revenue (RMR), though this figure typically excludes margins from pass-through monitoring revenue.
Reaching operational cash flow positivity is a critical milestone for companies, especially for an OTC stock like AITX. OTC stocks often belong to early-stage firms that might not have established revenue streams. Positive operational cash flow signals to investors that a company has crossed a critical growth threshold.
This achievement not only underscores RAD’s robust business strategy but also reinforces AITX's commitment to generating sustainable value for its shareholders. By attaining operational cash flow positivity, RAD has showcased its capacity to generate steady revenue while managing operating costs efficiently. This positions RAD as a financially resilient and growth-oriented subsidiary within the broader AITX portfolio.
Operational cash flow refers to the cash generated from a company’s primary business operations, excluding activities related to financing or investing. It provides insight into a company's ability to continue operations without depending on external funding. For RAD, achieving positive operational cash flow indicates that the company can generate sufficient cash from its business operations to cover its expenses and potentially invest in further growth.
About Artificial Intelligence Technology Solutions (AITX)
AITX is at the forefront of delivering artificial intelligence-based solutions that enable organizations to gain insights, address complex issues, and stimulate new business innovations. With its next-generation robotic products, including RAD, RAD-R, RAD-M, and RAD-G, AITX helps organizations streamline operations, improve ROI, and enhance business efficiency. AITX's technology simplifies patrolling and guarding services, allowing trained personnel to focus on more strategic and high-level tasks. This augmentation increases situational awareness while significantly reducing operational costs. AITX solutions are applicable across various industries, 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.
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