Thought I'd cover certain aspects relative to the topic of the "potential" reverse stock split that have been floating around the message boards since the articles of incorporation were amended outlining such "potential" action.
Over the course of 2021:
AIAD has confirmed the completed transformation of its AI-driven SWARM application into a fully functioning, AI-driven software as a service (SaaS) platform, which is currently being sold as a SaaS solution.
During the last year or so they have released PRs noting specific clients along with recognized results which have exceeded expectations. They've made known an array of industrial segments utilizing their product and have recently announced agreements with O'Neill Marketing & CTE Carolina CAT. It should be noted they are working with two of the largest "CAT" (Fortune 100 Corporation with 500 dealerships globally and annual revenues of 50B) Dealerships in the country.
Over the course of the last half of 2021, they've been involved in an all-out hiring blitz which includes higher level positions such as (VP) positions, Sales and Marketing Directors along with support staff personnel such as office managers, human resources personnel, etc. which is a clear indicator a company is growing when the hiring goes beyond just essential staff positions.
This day and age there are so many ways to analyze growth within a company using various business metrics. Sophisticated data analytics tools can be utilized to measure essential and relevant growth indicators as a company hits specific milestones. In turn, allowing them to adjust more seamlessly in accordance to anticipate future demands.
With all that has transpired over the course of last year AIAD does not fall into the category of the typical triple zero stock-based entity accounting for "0" revenue, with 1 employee being the so-called CEO, floating a fictitious business plan producing PRs with vague content with primary source listings that can never be confirmed. With the only intent being, the diluting of the stock up to the oblivious 30B+ Authorized Share total which coincides with the eventual reverse split, rinse and repeat.
In the case of a company such as AIAD that is recognizing immediate measurable growth in an industry representing billions in potential revenue, an up-listing would be viewed in a very positive way. AIAD will essentially be moving up the stock market food chain as the company expands and becomes more successful. Creating a wider group of investors (Hedge Funds/Institutional Investors) that typically don't trade OTC-listed stocks due to policy that centers more around the lack of liquidity factor. Since major exchanges have stricter requirements which creates a better sense of transparency investors such as Hedge Funds and Institutional Investors will play an important role as AIAD grows in the further re-rating of its valuations.
Using a reverse split to obtain an up-listing to a major exchange and increasing the share price in order to meet qualifications is viewed in most cases as a very favorable sign for a company and is interpreted much differently than a company that is already listed on a major exchange and uses a reverse split to avoid being delisted.
At this juncture the reverse split by AIAD shouldn't be viewed as a negative event as it gives the Company the opportunity to vacate the OTC arena and join the ranks of peers on the major exchanges, increasing exposure and liquidity. Essentially meaning they'll be able to garner much needed attention from retail brokers and institutional investors as well as increasing their access to capital.
Other related comparisons worth noting:
They have done an excellent job procuring funding in 2021 by not going the typical OTC company route through the standard toxic, continual issuance, promissory note option by securing 10M in capital through a registered direct offering (Securities Purchase Agreement) with an Institutional Investor.
Which includes Investor X receiving 171,428,564 warrants with an exercise price of 4.54 cents as well as the Placement Agency receiving 10,714,286 warrants with an exercise price of 8.75 cents in place of cash.
Since securing the funding the O/S total has stayed in check over the last 3 Qtrs and in the last 10Q the following statement can be found "The Company’s current cash is sufficient to sustain the Company’s operations for approximately 18 months without additional borrowings."
In AIAD's case you can actually apply a respectable standard market measurement relative to companies on Major Exchanges due to the fact they're not your typical OTC equity representing a company that doesn't generate any revenues or have outstanding share totals in the area of the multi-multi billion range. AIAD currently has a price-to-sales ratio or sales multiple of 3.3 based on a TTM (trailing-twelve-month) revenue total of $7,123,544. Internet Software companies listed on Major Exchanges trade on average at an 11 multiple; SaaS (software-as-a-service) company’s trade on average at a 22 multiple; and one of the largest companies in AIAD’s space, The Trade Desk, currently trades at a multiple of 27 (and has been over 50 during the course of the last 52 weeks, prior to the recent overall market selloff.) Just as an example if AIAD was trading at those multiples the following share prices would apply: 11X’s = .075; 22X’s = .15; 27X’s = .184.
Bear in mind as the share price continues to appreciate AIAD can propose to amend the articles of incorporation in relation to the reverse stock split and change the ratio by going through the same process of approval by way of the holder of a majority of the voting power of the stockholders and fulfilling the formalities by filing the amendment with the Secretary of State Office.
