AITX Announces Filing of Prospectus Supplement and Updates Guidance
Company Files Prospectus Supplement and Forecasts Significant Growth with Updated Guidance
Detroit, Michigan, Dec. 06, 2022 (GLOBE NEWSWIRE) -- Artificial Intelligence Technology Solutions, Inc., (the “Company”) (OTCPK:AITX), a global leader in AI-driven security and productivity solutions for enterprise clients, today announced that today it has filed with the SEC a Prospectus Supplement (the “Prospectus Supplement”) to the Prospectus included in the Company’s Form S-3 registration statement that was declared effective by the SEC on September 10, 2021. The Prospectus Supplement discloses the terms of an Amended Purchase Agreement with GHS Investment, LLC (“GHS”), dated December 5, 2022, whereby GHS has agreed to purchase up to $10 million of the Company’s common stock over the next two years on certain conditions. The additional shares of common stock will be issued pursuant to the Prospectus Supplement. A copy of the Amended Purchase Agreement is attached to the Form 8-K being filed with the SEC today.
“There is significant growth in our funnel that we are finally able to share through this SEC filing,” said Steve Reinharz, CEO of AITX. “Drawing upon the S-3 is one financing method we’re using to ensure AITX has the resources needed to execute our current operating plans given our proven ability to achieve continued sales growth,” said Mr. Reinharz.
The Company is also providing here a current business update as it closed its fiscal Q3 on November 30, 2022.
The Company noted that as of December 5, 2022, Robotic Assistance Devices, Inc. (RAD), AITX’s primary operating subsidiary, has approximately 280 units deployed and approximately 250 units on backorder. In addition, RAD forecasts a high probability that it will receive additional unit orders totaling approximately between 250 and 500 units over the next six months. RAD further projects that it will receive orders for between 350 and 800 devices over the next twelve months.
“The entire Company is running at full speed as we continue our drive to be the dominant player in the security services and #proptech industries,” Reinharz added. “We intend to continue to fuel the Company’s growth and expansion. This Prospectus Supplement to the S-3 is certainly the most efficient method available to us.”
Today, RAD has over 80 paying customers. Over 65% of RAD’s paying customers have either expanded their systems with at least one reorder or are expected to expand their systems with at least one reorder within the next 12 months. At least five of RAD’s clients are top 25 ranked global corporations by revenue. One of these companies has completed several reorders with one recent reorder that has yet to be fulfilled. Moreover, in support of the direct sales efforts, RAD has over 50 dealers that present RAD solutions to their end-user customers.
Although RAD’s sales cycle currently averages from 6 to 18 months, the Company is employing a variety of innovative methods to shorten the sales cycle. RAD successfully introduced its ‘3.x’ device lineup in October 2021, with many 3.x solutions now shipping. This development is helping shorten sales cycles, allowing for quicker conversion to sales and revenue.
The Company has more than 25 trademarks, product names and slogans either approved by or under review at the United States Patent and Trademark Office (USPTO) and anticipates making over 50 provisional patent and design trademark applications by the end of December 2022.
AITX and its three subsidiaries collectively have 85 employees spread across 7 departments (sales, marketing, hardware development, software development, production, client services, and administration) and has authorized hiring up to a total of 100 employees. Any headcount expansion will be exclusively in research and development and will be added to the Company’s current 50 oftware developers and degreed engineers.
Other Recent Company Highlights Include:
The Company encourages interested parties to review the recording of AITX’s ‘Investor Open House & RAD Technology Reveal’ that will be video recorded and shared beginning at 4:30pm ET on December 7, 2022. It will be accessible through AITX’s YouTube channel at www.youtube.com/aitxrad/.
AITX through its subsidiary, Robotic Assistance Devices, Inc. (RAD), is redefining the $25 billion (US) security and guarding services industry through its broad lineup of innovative, AI-driven Solutions-as-a-Service business model. RAD solutions are specifically designed to provide a cost savings to businesses of between 35%-80% when compared to the industry’s existing and costly manned security guarding and monitoring model. RAD delivers this tremendous costs savings via a suite of stationary and mobile robotic solutions that complement, and at times, directly replace the need for human personnel in environments better suited for machines. All RAD technologies, AI-based analytics and software platforms are developed in-house.
RAD has a prospective sales pipeline of over 35 Fortune 500 companies and numerous other client opportunities. RAD expects to continue to attract new business as it converts its existing sales opportunities into deployed clients generating a recurring revenue stream. Each Fortune 500 client has the potential of making numerous reorders over time.
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