AITX Reports 2nd Quarter Revenue Increase of 44% Over Previous Year

Gross Profit Increases 27%, Operating Expenses Down

For the quarter ending August 31, 2023, the Company reported revenues of $386,363, a strong 44% increase from the $267,484 generated in the same quarter of the previous fiscal year. This growth primarily stems from an uptick in Recurring Monthly Revenue (RMR) as the deployment of devices strengthens and increases.

“This solid trajectory is a testament to our relentless dedication and innovative approach,” said Steve Reinharz, CEO of AITX and wholly owned subsidiary, Robotic Assistance Devices, Inc. (RAD). “The numbers speak for themselves. Our strategy of growing RMR through the deployment of more, higher valued units is reaping dividends.”

Highlights from Q2 of Fiscal Year 2024:

Gross Profit Increase:
The three-month period ending August 31, 2023, saw a gross profit of $297,349. This represents a 27% increase compared to the gross profit of $233,270 during the same period in the prior fiscal year. This gain is attributed to the Company’s significant increase in the number of deployed and activated devices.

Operating Costs Decrease:
Despite the significant growth in revenue, gross profit and units deployed, the Company successfully managed to reduce its operating costs by 2% compared to the same timeframe in FY 2023. The full impact of several cost-saving initiatives enacted by the Company are expected to be realized in the Q4 2024 results.

Q2 Order Intake Results & Expected Revenue Results
As reported on September 6, 2023, AITX’s primary subsidiary, RAD, recorded a significant increase in order intake.

Additional Cost Cutting Initiatives:
AITX is presently implementing additional strategies projected to reduce monthly expenses by approximately $150,000. While this move positions the Company closer to realizing positive cash flow, it will decelerate the development and rollout of planned mobile solutions.

Shedding light on the Company’s short-term strategies, Reinharz noted, “Our increasingly strong financial position allows us to make these strategic decisions. The current cost-reducing initiatives align with our broader vision, and while this means a slight delay in the release of a few of our mobile solutions, it underscores our commitment to delivering value to our stakeholders.”

Additional Noteworthy Highlights:

Robust Sales Funnel:
The RAD sales funnel currently holds the greatest depth, breadth, and quality of revenue-generating opportunities, suggesting a positive outlook for the near future.

Independent Contractor Program:
Stepping into 2024, RAD’s newly launched Independent Contractor program has organically attracted a variety of respected security industry leaders and influencers to advocate and promote RAD solutions on a strictly commission-based framework. The Company maintains an optimistic stance, foreseeing that this program will yield significant revenue generating opportunities.

In conclusion, Reinharz stated, “The Company’s future looks as bright as ever. With the strongest RAD sales funnel in history, plus the addition of industry veterans as part of our Independent Contractor program, we’re poised for continued, transformative growth. Here’s to AITX and RAD redefining AI-driven security and productivity solutions!”

Recurring Monthly Revenue (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.