Major Logistics Client of AITX's Subsidiary, Robotic Assistance Devices, Expands with Order for 38 RIO™ Solar-Powered Security Towers

August 2023 and Q2 of FY 2024 Closing Strong for AITX

Not named due to nondisclosure agreements, the Company noted that this direct client is a prominent shipping and transportation company with over 250 distribution centers throughout the United States. This client has thoroughly tested RAD through 9 devices previously ordered and deployed at 2 locations. These newly ordered 38 RIO devices, completing their first phase of planned rollouts, consisting of 24 RIO 360 units, and 14 RIO 180 units will be deployed at 10 of the client’s distribution centers. The Company also noted that additional expansion orders of a similar quantity are expected as part of the second phase of rollouts, and that the client may be named in a future press release and case study.

In a press release dated August 10, 2023, RAD, in anticipation of increased RIO demand, expanded its current RIO production run to 200 units. The Company’s Detroit factory, affectionately referred to as the RAD Excellence Center (or ‘REX’) can produce up to 100 RIO units per month without impacting currently anticipated ROSA and AVA demand. The Company clarified that a ROSA 360 includes two ROSA DC units, while a ROSA 180 includes a single ROSA DC unit. However, many ROSA units that are mounted on a RIO are counted as a single device for unit device counting purposes.

“The validation of RAD as a major enterprise supplier has our entire firm buzzing with excitement and anticipation of where we’ll take this and similar clients,” said Steve Reinharz, CEO of AITX and RAD. “RIO is on track to being a solid performer for RAD and our clients. Plus, RIO is our highest revenue generating stationary solution that we’re building right now and it’s an ideal combination of volume and revenue.” 

“We want to share this moment of accomplishment with our team. From the developers to the engineers, to the implementation folks, to the business development team, to sourcing. It takes a coordinated team to prove to a Fortune 100 company that we should be their partner, and we won,” said Mark Folmer, CPP, PSP, FSyI, President of RAD. “Now we’re going to outperform and earn a lot more business from this client while we replicate this victory across all the players in this vertical market.”

Reinharz added, “This single expansion order will add approximately $60,000 to RAD’s (recurring monthly revenue (RMR) once deployed. Current deployments with this client earn us approximately $9,000 in RMR from this client’s earlier deployments. It’s big orders, from great clients like this, and others that we’re expecting to close soon.”

RIO 360 is a versatile solar-powered security tower configured with dual ROSA devices. RIO 360 offers the marketplace two valuable benefits. The first is the unmatched performance of the dual ROSA devices that sit atop the unit’s mast. There is no device in the market that can perform ROSAs extensive list of autonomous actions. ROSA is RAD’s best-selling and a multiple award-winning device. The second critical differentiator is RIO’s value pricing. RIO’s pricing competes favorably against the leading solar tower manufacturers. RIO 180 utilizes much of the same hardware and software platform as RIO 360, but ships with a single ROSA device and fewer solar panels.

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.

As stated, sitting atop a standard RIO 360 configuration are dual ROSA units. 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.