$3M Per Year Recurring Revenue Expected from a Single Client Upon Full Deployment by AITX’s Subsidiary Robotic Assistance Devices

As of November 28, 2023, this single client has placed orders totaling 140 devices. The breakdown of the device orders is as follows:

• 77 RIO™ 360 solar powered, portable security towers
• 56 RIO 180 security towers
• 7 standalone ROSA™ devices
  
  

To date, almost 20% of these received orders have been fulfilled with 125 devices still to be deployed. Full deployment is projected to be complete around March 31, 2024. Currently, RAD’s factory (the ‘REX’) can produce up to 40 RIO devices per month alongside the required ROSAs.

Upon full deployment to this client, the Company contracts indicate that over $250K in recurring monthly revenue (RMR) will be generated and should total over $3 million per year. The Company started generating revenue from this client during an extended pilot phase. The quarter ending November 30, 2023 (Q3 for the Company) will have a significant increase in revenue with monthly revenue being fully realized upon deployment and likely by the end of the Company’s first fiscal quarter of next year which ends May 31, 2024.

Steve Reinharz, Founder & CEO of AITX and RAD, commented, “This one client, with their ability to order and take delivery of this incredible quantity of RAD solutions proves that we are capable of scaling manufacturing, installation and deployment at a large scale to Fortune 1000 clients.”

“The RAD sales pipeline continues to flow with additional opportunities for this one client,” said Mark Folmer, CPP, PSP, FSyI, President of RAD. “Based on ongoing conversations, we are anticipating at least an additional 15 RIO 180 units and up to 4 more ROSA devices going to 3 more of their distribution centers. Once we get these orders in and deployed, we can expect another $25K or more in RMR added to the sales board.”

As stated in a press release dated September 28, 2023, RAD is gearing up for a 1000 RIO Version 4 production run to support the balance of these and other expected RIO orders. The Company expects to release details on these efforts, including potential cost savings and the effect of ROSA 4.x, before the end of December 2023.

Reinharz added, “We are setting our sights on all Fortune 1000 clients with RIO, ROSA, and AVA solutions. Having a signature client of this size and scope entrust us with their critical security needs is expected to be a tipping point moment for others of similar size to jump onboard the RAD team.”

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.

ROSA is a multiple award-winning, compact, self-contained, portable, security and communication solution that can be installed and activated in about 15 minutes. ROSA’s AI-driven security analytics include human, firearm, vehicle detection, license plate recognition, responsive digital signage and audio messaging, and complete integration with RAD’s software suite notification and autonomous response library. Two-way communication is optimized for cellular, including live video from ROSA’s high-resolution, full-color, always-on cameras. RAD has published four Case Studies detailing how ROSA has helped eliminate instances of theft, trespassing and loitering at multi-family communities, car rental locations and construction sites across the country.