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Artificial Intelligence Technology Solutions Inc.

CIK: 14981482 Annual ReportsLatest: 2025-05-29

10-K / May 29, 2025

Revenue:$6,130,886
Income:-$18,935,592

10-K / May 29, 2024

Revenue:$2,227,559
Income:-$20,708,716

10-K / May 29, 2025

Company Summary: Artificial Intelligence Technology Solutions Inc. (AITX)

Business Overview

  • Core Business: Development, deployment, and commercialization of AI-powered robotic security and operational devices designed to automate physical security and operational tasks.
  • Primary Focus: Applying advanced AI-driven technologies (Agentic AI platform named SARA) combined with hardware (robots and cameras), cloud services, and software to deliver autonomous, real-time security, monitoring, and operational automation solutions.

Subsidiaries

  • RAD-I: Provides AI-driven security solutions, autonomous deterrence, and management of devices like ROSA, RADDOG, HERO, ROAMEO, RIO, RADCam, RAM, and others.
  • RAD-R: Focuses on residential market solutions, deploying AI-powered security devices like RADCam for homes and small businesses.
  • RAD-M: Mobile solutions for security in logistics, healthcare, construction, and public environments, including portable, solar-powered towers (RIO).
  • RAD-G: Develops and licenses OEM AI security technology.
  • RAD Lanka: Development in Sri Lanka for cost-effective production.

Technologies & Products

  • SARA (Agentic AI platform): The AI "brain" that enables devices to detect, decide, respond, and escalate in real time.
  • Robots & Devices:
    • ROSA™: Autonomous visual analytics, deterrence, and response device used for perimeter security, vehicle access, firearm detection, etc.
    • RIO™: Portable solar-powered security towers with ROSA units for rapid outdoor deployment.
    • ROAMEO™: Autonomous mobile security robot for large outdoor patrols, campuses, logistics yards.
    • RADDOG™ LE2: Law enforcement support, crowd engagement, tactical patrol robot.
    • HERO™: Humanoid security robot (expected launch late 2025) for public spaces, malls, airports.
    • RADCam™: AI-enhanced security cameras for residential, small business, and enterprise use.
    • AVA™: Automated vehicle and asset entry management with license plate recognition and voice interaction.
    • TOM™: Visitor and front desk management system, automating reception/security functions.
    • ROSS: Software platform to upgrade legacy IP cameras with AI analytics.
    • RAM™: Module to retrofit existing cameras with voice and AI capabilities.
    • Firearm Detection Analytic: Recognizes visible guns to prevent threats like active shooter scenarios.

Market & Industry Position

  • Industry Size:
    • Global security industry approaching $1 trillion.
    • AI in security market expected to grow from $5.4 billion (2024) to $50.3 billion (2030) at 45.8% CAGR.
  • Customer Base:
    • Number of active customers: Not explicitly stated, but products are deployed across commercial, healthcare, logistics, retail, education, and law enforcement sectors.
    • Notable Deployments:
      • Multiple systems installed in hospitals, retail, logistics, educational campuses, and municipal agencies.
      • Over 100 press releases on sales and deployments in the past year.
  • Employees:
    • As of March 7, 2025, approximately 116 full-time employees and subcontractors.
  • Revenue & Income:
    • Fiscal Year 2025 revenue: $6,130,886, a 175% increase from $2,227,559 in FY2024.
    • Gross profit: $3,744,564 (FY2025) vs $565,817 (FY2024), gross margin approximately 61%.
    • Net loss: $18,935,592 in FY2025, slightly less than $20,708,716 in FY2024.
    • Revenue Breakdown:
      • Device rentals: $5,050,255 (FY2025), a 211% increase.
      • Device sales and services: $1,080,631 (FY2025).
  • Business Model:
    • Recurring monthly subscription revenue (typically 12-month contracts).
    • Product sales and hardware unit deployments.
    • Revenue margins:
      • Over 75% gross margin on subscription-based solutions.
      • Over 50% gross margin on hardware sales.

Strategic Position

  • Focused on delivering practical, revenue-generating AI solutions that automate and improve security and operational workflows.
  • Recognized industry leader in AI security, with multiple awards (e.g., ISC West 2025 Judges Choice, Best Threat Detection).
  • Active in high-growth segments like autonomous mobile patrol robots, AI surveillance, and automated access control.

Challenges & Financial Outlook

  • The company operates at a net loss and has negative working capital.
  • As of February 28, 2025:
    • Cash: approximately $865,975.
    • Total assets and liabilities: Not specifically disclosed, but working capital is negative $2,548,138.
    • Days of cash flow: Not explicitly stated, but negative cash flow in operations of over $12 million.
  • Management plans:
    • Raising additional funds through equity or debt.
    • Focus on expanding revenue, deploying more devices, and scaling operations.
    • Transitioning towards positive cash flow and an uplisting to Nasdaq targeted for 2026.

Summary

Artificial Intelligence Technology Solutions Inc. (AITX) specializes in AI-powered security robots and systems, focusing on autonomous detection, decision-making, deterrence, and operational automation across various industry sectors. They have a broad product line with current deployments, growing revenue, and numerous awards, but continue to operate at a net loss with ongoing efforts to raise capital and achieve profitability.