AITX Forecasts Profitability
6:01 AM ET 7/11/22 | GlobeNewswire
AITX Forecasts Profitability
Detroit, Michigan, July 11, 2022 (GLOBE NEWSWIRE) -- Artificial Intelligence Technology Solutions, Inc., (OTCPK:AITX), today announced that its sees a clear pathway to profitability within 24 months, principally through the growth of its primary subsidiary, Robotic Assistance Devices, Inc (RAD).
RAD confirmed that there are presently 114 RAD devices on backorder and allocation for deployment. The company sees a high probability path that it will close the current fiscal quarter on August 31, 2022, with over 300 customer new committed units ordered during in the period.
"We talk about sales momentum and it's great to see it begin, but I feel we're barely scratching the surface given the extraordinary labor and wage challenges our dealers and clients are suffering from," said Mark Folmer, President of RAD. "Just a year ago, we celebrated every single unit sale, today the mean sales order volume is greater than 20 units per order."
Folmer estimated that current projections create expectations of between 700 and 1200 units committed and on order by the end of this fiscal year which ends February 28, 2023.
"The majority of our sales to date and through this quarter are with organizations that are first-movers and leaders in their respective vertical markets," Folmer added. "Then there's the 'fear of missing' out that follows from the companies that are chasing the leader who's choosing RAD. We're seeing it in just about every sector."
"As we continue this strong upward momentum and level our SG&A expenditures, we have a likelihood of profitability during our next fiscal year," said Steve Reinharz, CEO of AITX and RAD. "Once we get in the range of one-thousand to fourteen-hundred deployed units, generating a stream of revenue, we expect to see an operational cash flow break-even, depending on the product mix."
The company added that moving forward SG&A expenses are expected to grow only in support of future demand and revenue growth. "We've built a team with remarkable productivity. This, in addition to the systems and processes we've implemented, create a business foundation that positions AITX squarely on this path to profitability. All elements for sustainability are in place, all that's left is our continued excellence, execution, and performance," Reinharz concluded.
AITX has filed for uplisting to the OTCQB. Future announcements will be made regarding the status of the OTCQB application.
AI
