AITX Forecasts Approximately 300% Revenue Growth for FY 2025

Strong Revenue Growth and Strategic Investments Position AITX for Continued Success Throughout FY 2025

Detroit, Michigan, August 1, 2024 — Artificial Intelligence Technology Solutions, Inc. (the “Company”) (OTCPK:AITX), a global leader in AI-driven security and productivity solutions for enterprise clients, is pleased to announce its forecast for the fiscal year ending February 28, 2025, with projections for the current fiscal year.

FY 2025 Revenue Projections

For fiscal year 2025, which will close February 28, 2025, the Company anticipates a significant increase in total revenues, projecting between $5.5 million and $6.5 million, excluding contributions from RADCam™. RADCam, a product from subsidiary RAD Residential Inc., is forecasted to contribute an additional $200,000 to $800,000 in gross revenues in FY 2025.

As of August 1, 2024, AITX has grown to approximately $625,000 in recurring monthly revenue (RMR), which includes units that are deployed and invoicing, units deployed but not yet invoicing, and units that are contracted, but not yet deployed. This includes backlog of devices to be built, equating to an additional $150,000 in expected RMR once deployed. When this backlog is cleared and deployed, the Company expects to generate approximately an additional $85,000 per month from remote monitoring service contracts.

Steve Reinharz, CEO/CTO of AITX, commented, “I am pleased with AITX’s financial trajectory. Our revenue growth and increasing recurring monthly revenue demonstrate improving market acceptance of our solutions. This solid foundation allows us to continue investing in innovative technologies and expanding our product offerings, keeping us at the forefront of the security industry.”

Robotic Assistance Devices, Inc. (RAD), a key subsidiary, is projected to achieve cash flow break-even at an RMR between $700,000 and $800,000. This adjustment reflects an increase in selling, general, and administrative (SG&A) expenses due to staffing needs associated with ROAMEO and the resources required to support the expanding product line. Assuming that all projected units are deployed and generating RMR, a full year’s revenue run rate would approach $10 million, given today’s low attrition rate.

RAD forecasts an increase in RMR by March 1, 2025, to between $900,000 and $1.1 million.

Reinharz added, “We’re excited to see RAD achieve operational positive cash flow this fiscal year as we continue to spend and develop new solutions, including the further development of ROAMEO, RADDOG, RADPack, RAM, and RADCam.”

The Company identifies four major revenue streams:

1. RAD stationary security solutions, including RIO™, ROSA™ and AVA™
2. Mobile security and surveillance solutions including ROAMEO™ and RADDOG™
3. RADCam for residential and small business security applications
4. Remote monitoring contracts in support of all Company security solutions

RAD’s stationary solutions continue to be the primary revenue drivers for the Company, while the mobile solutions and RADCam show significant potential for future growth, justifying their continued R&D investments. Remote monitoring revenue, despite being largely a pass-through to third party partners, is expected to reach a $1 million annual recurring revenue (ARR) run rate this fiscal year, contributing a significant gross profit margin.

Reinharz concluded, “We are only five months into the fiscal year with seven months to go, and I am excited about the progress we are making. I look forward to providing further updates as we continue to execute our strategy and drive growth for the Company.”

RMR is money earned from customers who pay for a subscription to a service or product. RAD’s solutions are generally offered as a recurring monthly subscription, typically with a minimum 12-month subscription contract.