AITX’s RAD Announces Positive Operating Cash Flow Page 1

The company expects RAD Inc.’s core earnings to exceed operating expenses in September

Detroit, Michigan, August 26, 2024 (GLOBE NEWSWIRE) — Artificial Intelligence Technology Solutions, Inc. (the “Company”) (OTCPK:AITX), a global leader in AI-driven security and productivity solutions for enterprise customers, is proud to announce that its wholly owned subsidiary Robotic Assistance Devices, Inc. (RAD) expects to be considered operationally profitable in September 2024 when comparing core operating expenses to billed revenues for that month.

Specifically, AITX and its four subsidiaries have an estimated monthly payroll and health insurance expense of $630,000. However, of that expense, approximately 58% (approximately $365,000) is what is needed to fund the entire current operations of RAD Inc., specifically related to the manufacturing, sales and support of its sales solutions limited to AVA, ROSA, RIO, TOM, RAD Light My Way and Firearm Detection. When approximately $150,000 in additional RAD operating expenses for items such as connectivity fees, rent, cloud services and related services used by RAD Inc. are included, the total required monthly operating expenses are $515,000.

If RAD Inc. maintains the same $515,000 in operating expenses in September (which is expected), this will be the first month that the company has achieved positive operating cash flow. Since this only relates to RAD Inc., it is net of AITX expenses related to its other subsidiaries and AITX-related public company expenses.

“This is a tremendous achievement for any company and delivering performance and results to our incredible base of shareholders, teammates and customers,” said Steve Reinharz, CEO/CTO of AITX and RAD. “We are working hard to achieve our first million dollar month of revenue and have a path to achieve this by the end of our fiscal year on February 28, 2025.”

AITX spends millions of dollars per year on research and development of new solutions, notably ROAMEO, RADDOG, RADCam and various software initiatives. In addition, there are approximately $500,000 per year in costs to remain a fully SEC reporting company.

“I’m excited that we have the security of a profitable subsidiary and at the same time are making investments that we hope will complement our full suite of solutions so that we can capture as many of the markets that they’re pursuing and creating,” Reinharz continued. “We’re not doing this for a $10 million a year business. We’re doing this to try to create something exponentially bigger.”