Answer:
The last reverse split was conducted in March of 2020 under the company’s prior CEO. Steve Reinharz became AITX’s CEO in March 2021 and in January 2022 as a response to persistent reverse split speculation, Mr. Reinharz amended the corporate by-laws to restrict a reverse split through January 2024. On June 14, 2023, Mr. Reinharz extended the no reverse split rule to January 1, 2025. Mr. Reinharz has not ruled out extending it further but has mentioned that circumstances for the company can be very different if the company achieves operational profitability this year (2024). 

It is important to note that reverse splits can be extremely harmful to investors when a company (the ‘issuer’) performs a reverse split on the Outstanding share count only. This is frequently done to ‘reset’ liquidity options for the company, most often due to a failed venture within the public company running out of funding.

However, when reverse splits apply the same reverse ratio to both the Outstanding and Authorized balances the biggest issue of many new shares being made available for dilution is avoided.

Example 1: Company has 1 million Authorized shares and 1 million Outstanding shares. Price per share is $1. Company performs as 10:1 reverse split on the Outstanding shares reducing the number to 100K shares albeit the immediate share price would go to $10. However, 900K shares become available for dilution. This could put downward pressure on the stock and decrease the value of the 100K shares. This is commonly understood as the reason and effect of a reverse split.

Example 2: Company has 1 million Authorized and 1million Outstanding shares and it trades at $1. Company performs reverse split for both Authorized and Outstanding at the same time with the same ratio of 10:1. The Authorized will decrease to 100K shares, the Outstanding will decrease to 100K shares and the share price will adjust to $10. No new shares have been made available for dilution. This scenario would protect shareholder interest from excessive dilution while opening up new securities options for the Company.

Lastly, it’s important to note that the intent of ‘dilution’ is to provide funding for the company. Companies list their stocks publicly in order to fund creation, growth, operations and more and this is commonly done on the OTC Markets through a variety of methods. Highly dilutive convertible notes can be considered ‘toxic’ because they can cause many more shares to be created than the original debt. This in turn can lead to a company’s outstanding shares getting maxed out against their authorized share count and require a reverse split. Toxic dilution is frequently the driver for reverse splits that hurt retail investors. It’s important to note that AITX has not had any toxic notes in many years and since Mr. Reinharz took over AITX has raised its money through registered filings of either or both the S-1 or S-3 variety.

This explanatory statement does not negate the Company’s right to either extend the no reverse split position or negate it’s right to perform a reverse split after January 1, 2025, of either or both its Authorized and Outstanding common shares. The Company will continue its path to drive profitability and improve the balance sheet to the point it can have a healthy uplist to NASDAQ potentially in 2026.

Answer:
Steve Reinharz’s start was as founder of Robotic Assistance Devices (RAD) to being AITX’s CEO, CTO, majority control holder and majority equity holder has in many ways been a uniquely extraordinary journey of dedication, innovation, and risk-taking. His story is marked by a relentless pursuit of a vision that began in his youth and has been driven by a deep-seated passion for technology and entrepreneurship. From a young age, Reinharz was immersed in the world of business and technology, influenced by his father’s introduction to early personal computers. This early exposure laid the foundation for a lifelong passion for artificial intelligence and security solutions.

Reinharz’s entrepreneurial spirit was evident when he self-published a book on AI curriculum during his college years, demonstrating his initiative and ability to turn ideas into tangible products. His move to California and the establishment of a security integration company showcased his innovative approach to merging technology and security. Despite the setback of losing his first business due to an unpaid contract, Reinharz’s resilience and determination never wavered.

The formation and growth of AITX under Reinharz’s leadership is a testament to his commitment and vision. He invested his own funds, sought support from family and friends, and navigated the challenges of raising capital through the OTC Markets. Even during the toughest times, including a downsizing after a failed product launch and the financial strain on himself and his employees, Reinharz’s dedication remained steadfast. He made personal sacrifices, including selling his house and depleting his wife’s 401(k), to keep the company afloat. His perseverance paid off when AITX pivoted during the pandemic, developing an AI-enabled face mask detection system that revitalized investor interest and financial stability.

Under Reinharz’s leadership, AITX has seen significant growth, including a 505% increase in recurring monthly revenue when comparing FY2024 to FY2023. The company has become a leader in AI-driven security solutions, and its move to Ferndale, Michigan, has positioned it as a key player in the AI rust belt. Reinharz’s ability to attract top talent and expand the company’s operations underscores his effectiveness as a CEO.

Under Reinharz’ leadership AITX has relentlessly worked to inform potential investors about the company’s mission and progress and as a result has frequently been one of the OTC hottest emerging companies.  

Given this context, earnings for Reinharz reflect not only his role as the driving force behind AITX’s industry and market success but also the immense personal and financial sacrifices he has made. His leadership has transformed AITX from a struggling startup into a thriving growth company and without him none of this would have happened or been possible.

Answer:
Artificial Intelligence Technology Solutions Inc. (AITX) is diligently working towards achieving operational profitability. It is important to clarify that the first significant milestone being targeted is becoming cash flow positive, meaning generating enough revenue to cover operating expenses without needing additional external funding. Here is a detailed overview of AITX’s path to this goal:

July 2022 Forecast
In July 2022, AITX forecasted a clear pathway to profitability within 24 months, principally through the growth of its primary subsidiary, Robotic Assistance Devices Inc. (RAD). At that time, the company projected reaching operational cash flow break-even with 1,000 to 1,400 deployed units generating revenue, depending on the product mix. This marked the beginning of a structured approach towards financial stability and profitability​.

April 2023 Update
By April 2023, AITX implemented significant cost-saving measures, which included reducing monthly expenses by over $100,000, with potential savings reaching $200,000 per month. These measures involved eliminating non-core projects, improving team resources, and delaying non-essential initiatives. CEO Steve Reinharz stated that these changes, along with RAD’s strong sales funnel, were expected to lead to monthly profitability within 9 to 15 months. Although the company aimed for positive cash flow by December 31, 2023, achieving cash flow positivity was reconfirmed as part of the strategic outlook​.

May 2023 Announcement
In May 2023, AITX announced additional steps on the path to profitability, introducing further initiatives to cut expenses by up to $300,000 monthly. These initiatives included reducing workforce size and optimizing operational efficiency. Reinharz emphasized that these actions, combined with the robust sales funnel, were expected to result in monthly profitability within the next 8 to 14 months, maintaining the goal of positive cash flow by the end of 2023, with a reinforced projection for operational profitability by August 2024​.

March 2024 Reconfirmation
In March 2024, AITX reconfirmed its expected achievement of operational profitability by August 2024 in terms of having revenue producing deployments plus contracts yet to deploy that equal what our cash burn on SG&A, net of special expenses, may be in any particular month. This forecast aligns with previous projections shared during the annual investor event in November 2023. The reduction in the need for additional funding and the rapid increase in revenues were highlighted as key factors driving this anticipated milestone. This reconfirmation underscored the company’s commitment to financial discipline and strategic growth​​.

Summary
AITX is on a well-defined path to achieving cash flow positivity by August 2024. This milestone will be a significant achievement, allowing the company to sustain operations through generated revenue without the need for external funding. The journey involves continuous cost optimization, strategic investments in core areas, and leveraging a strong sales pipeline.

Thank you for your interest in AITX. The company remains committed to transparent communication with stakeholders as it advances towards financial goals.

Answer:
Retail investors play a crucial role in the growth and success of Artificial Intelligence Technology Solutions Inc. (AITX). Here are several ways you can support the company in achieving its goals:

1. Spread the Word

• Social Media Engagement: Follow AITX and CEO Steve Reinharz on social media platforms like Twitter, LinkedIn, and Facebook. Share updates, news, and announcements with your network to increase visibility.
• Join Discussions: Participate in AITX’s Official Discord forum and other online forums, stock discussion boards, and communities dedicated to AITX. Your positive contributions and information sharing can help build a stronger, more informed investor community.
  
  

2. Stay Informed

• Read Updates: Regularly check AITX’s official website, YouTube videos and social media channels for the latest news, press releases, and updates. Staying informed helps you make better investment decisions and provides accurate information to others.
• Engage with Content: Watch and share videos from AITX’s YouTube channel, attend virtual town halls, and read the company’s publications to stay up-to-date with the latest developments.
  
  

3. Provide Feedback

• Surveys and Polls: Participate in surveys and polls conducted by AITX. Your feedback is valuable and helps the company understand the needs and preferences of its investor base.
• Direct Communication: If you have suggestions or questions, don’t hesitate to reach out to AITX through their official communication channels.
  
  

4. Utilize Products and Services

• Customer Referrals: If you know businesses or individuals who could benefit from AITX’s AI-driven security and productivity solutions, refer them to the company. Customer referrals can lead to new business opportunities and revenue streams.
• Testimonials: Provide testimonials and case studies if you or your business have benefited from AITX’s products. Positive feedback from users can attract new customers and investors.
  
  

AITX values the support of its retail investors and believes that together, the company can achieve its ambitious goals. Your active participation and engagement make a real difference.

Answer:
Artificial Intelligence Technology Solutions Inc. (AITX), through its subsidiary RAD Residential (RAD-R), will soon launch an exciting campaign to solicit and recruit US-based investors, fans, and followers to sign up to be considered as beta test locations for its upcoming first residential camera, RADCam™, featuring AITX’s exclusive AIR™ technology. Here’s how you can participate:

1. Fill Out the Application Form

When available, please complete the form. You will be asked to provide your contact information, address, and details about your home security needs. Highlight any relevant experience or interest in security technology.

When available, submit the form. Please be sure that all required fields are accurately filled out and submit the form through the website. Double-check for any additional instructions provided on the form.

2. Await Confirmation

Application Review: The RAD-R team will review applications to select suitable beta test locations. Criteria for selection may include factors such as location, home security setup, and the ability to provide constructive feedback.

Confirmation Email: Selected participants will receive a confirmation email with detailed instructions on how to prepare for the beta test, along with any necessary agreements or terms of service.

3. Prepare for Beta Testing

Installation: Follow the instructions that will be provided to install the RADCam residential camera at your location. The RAD-R team may offer guidance or support during the installation process.

Testing and Feedback: Actively use your RADCam and provide detailed feedback on its performance. Your insights and suggestions are vital for the development team to refine and improve the product before its official launch.

4. Stay Updated

Follow Up: Keep in touch with RAD-R for updates on new features, improvements, and the official launch of the residential camera. Continued feedback and involvement can help ensure the product meets user needs effectively.

Summary

Participating as a beta test location for RAD-R’s RADCam with AIR technology is a unique opportunity to contribute to the development of innovative home security solutions. Your involvement and feedback are highly valued by AITX and RAD-R.

A stock buyback, or share repurchase, can be an appropriate strategy for a public company under certain conditions, including:

1. Excess Cash or Strong Cash Flow: If the company has excess cash and limited investment opportunities with high returns, a buyback can be a good use of funds, returning value to shareholders.

2. Undervaluation of Stock: If management believes the company’s stock is undervalued, a buyback can signal confidence in the company’s future prospects, potentially boosting the stock price.

3. Improving Financial Ratios: Buybacks reduce the number of shares outstanding, which can improve key financial metrics like earnings per share (EPS) and return on equity (ROE).

4. Limited Growth Opportunities: When the company has limited high-return growth opportunities, buybacks might be more beneficial than reinvesting in low-return projects.

5. Capital Structure Optimization: A buyback can adjust the company’s capital structure, reducing equity and increasing debt if appropriate, especially when borrowing costs are low.

6. Rewarding Shareholders: Buybacks can provide a tax-efficient method of returning capital to shareholders, as opposed to dividends, which are often taxed at a higher rate.