The Company Confirms August 2024 Timeframe - AITX a leader in AI-driven security and productivity solutions, today reconfirmed its expected achievement of operational profitability by August 2024. This forecast aligns with the projections shared during the annual investor event in November 2023, signaling sustained momentum in the Company’s growth trajectory.
Steve Reinharz, CEO/CTO of AITX and wholly owned subsidiary Robotic Assistance Devices, Inc. (RAD), shared his enthusiasm for the Company’s progress, stating, “We’re continuing to see a reduction in the need for additional funding to sustain our operations, thanks to our rapidly increasing revenues. Achieving operational profitability by August 2024, if achieved, would be a point where our operations can be self-sustained without external financing which is not just a goal but would be a significant milestone for us.”
In the first month of the last fiscal year, March 2023, AITX reported revenues of $61,790. Fast forward to March 11, 2024, and the Company has billed in excess of $349,000 for the month (but not collected), marking an impressive 465% increase. This substantial growth in revenue, coupled with a mere 67% increase in the authorized share count over the same period, demonstrates effective use of capital and significant Company progress.
Reinharz added, “The continuous increase in our monthly revenue is a clear indicator of our momentum. We’re on track to have deployed over $500K worth of recurring monthly revenue by the end of April 2024, as we focus on completing the build-out and deployment of our existing backlog.”
It is important to note that deployed units typically commence billing within 30 days from installation, as this timeframe allows RAD to fully configure the units and obtain end-user acceptance and sign-off. This process is crucial to ensuring that each deployment meets the high standards of quality and effectiveness that RAD’s clients expect.
To support the completion of older backlog production, AITX has utilized $350,000 in inventory-secured debt from its previously announced $2 million line of credit. This strategic move is aimed at acquiring the necessary raw materials to meet production demands and continue the Company’s upward trajectory.
In conjunction with its strategic financial planning and in anticipation of achieving operational profitability, AITX has made the decision to increase its authorized share count from 10 billion to 12.5 billion. This proactive measure is designed to ensure the Company has the necessary flexibility to support its continued growth, fund operational needs, and optimize its capital structure in line with its ambitious business objectives. The decision to adjust the share count reflects AITX’s commitment to maintaining a robust financial foundation while pursuing opportunities that enhance shareholder value and accelerate the Company’s path to potential profitability.
Reinharz elaborated on this strategic decision, stating, “Increasing our authorized share count is a calculated step towards achieving profitability and more. Ultimately, we believe it’s a bargain to trade the potential of an additional 25% shares with growth that we have already proven we can achieve – now it’s about growing the momentum even further.”
