Artificial Intelligence Technology Solutions Inc.

Artificial Intelligence Technology Solutions Inc.

Executive overview

Company and history

• Incorporated in Florida and Nevada. Originated as On the Move Systems Corp. (2010), reincorporated in Nevada (2015), and renamed Artificial Intelligence Technology Solutions Inc. in 2018.
• Acquired Robotic Assistance Devices, Inc. (RAD) in 2017; RAD was the accounting acquirer in a reverse recapitalization. Since the acquisition, the company has focused on AI-driven security, monitoring, and operational automation.
• CEO/CTO: Steven Reinharz (appointed March 2, 2021). He chairs the Autonomous Working Group for the Security Industry Association.

Organization and subsidiaries

• Five wholly owned subsidiaries: RAD-I (stationary solutions), RAD-G (agentic AI platform and partnerships), RAD-M (mobile autonomous platform), RAD-R (residential solutions), and RAD Lanka (Sri Lanka; a RAD-G subsidiary operating under Port City Colombo status).
• Planned RAD Europe subsidiary targeted for fiscal 2027 to support EU activities and GDPR-compliant services.

Global footprint

• Operations in the United States, Canada, the United Kingdom, Asia, and Sri Lanka (RAD Lanka). RAD Lanka operates under Port City Colombo status for tax efficiency and labor-cost advantages.

Current scale (report date)

• Approximately 135 employees across the U.S., Canada, the U.K., and Asia (including Sri Lanka).
• About 1,000 deployed devices across the United States and Canada; early-stage European entry.
• Dealer network: over 100 authorized dealers across the U.S., Canada, and the EU.
• Ferndale, Michigan manufacturing/assembly facility: 29,316 sq ft, leased since May 1, 2021. Annual rent ≈ $190,000 plus ≈ $28,000 in operating expenses.

What the company does

Core focus

• Vertically integrated developer and operator of AI-driven security and operational automation solutions.
• Designs, manufactures, deploys, and supports stationary devices, mobile autonomous platforms, and software powered by its proprietary agentic AI platform, SARA (Speaking Autonomous Responsive Agent).
• SARA provides perception, decision, communication, and autonomous action in real time with minimal human intervention.

Revenue model

• Revenue is primarily recurring monthly subscription contracts (Solutions-as-a-Service, SAS) with minimum 12-month initial terms.
• The company retains ownership of deployed hardware and sells hardware outright to a limited set of legacy enterprise customers.
• Management expects gross margins on deployed subscription units to exceed 75% and margins on outright hardware sales to exceed 50%, based on historical BOM costs and pricing.

Customer base

• End markets: logistics, healthcare, commercial real estate, manufacturing, retail, education, government, and residential sectors.
• Customer mix includes one Fortune Top 10 enterprise and several additional Fortune 500 enterprises.

Market positioning and strategy

• Management views the physical security industry as moving toward AI-driven autonomy and integrated automation.
• RAD Town is the long-term vision for an integrated autonomous-security fabric across campuses, communities, or jurisdictions.
• Competitive advantages cited: integrated proprietary hardware and software under the SARA platform; a deployed base with operational learning; a recurring revenue model; a growing dealer/integrator ecosystem; and demonstrated hardware-to-deployment capabilities via ROAMEO.

Product portfolio and platform details

RAD-I: Stationary solutions

• ROSA (Responsive Observation Security Agent): compact stationary device with visual analytics, two-way audio, and AI-driven escalation.
• RIO (ROSA Independent Observatory): portable solar-powered security tower with one or two ROSA devices on a trailer for rapid deployment.
• AVA (Autonomous Verified Access): vehicle gate access management with license-plate recognition, two-way voice, and cloud-based authorization.
• TOM (The Office Manager): automated visitor management for credentialed pedestrian access points.
• ROSS (Camera augmentation software) and RAM (Hardware augmentation): software and hardware to add AI-driven analytics and SARA-enabled responses to third-party cameras.
• Firearm detection analytic: real-time detection of visible handguns and long guns across RAD-I devices and ROSS, with autonomous escalation and responder coordination when integrated with SARA.
• Additional indoor and specialized-capacity stationary products planned for fiscal 2027.

RAD-M: Mobile autonomous solutions

• ROAMEO (Rugged Observation Assistance Mobile Electronic Officer): fully autonomous outdoor mobile security vehicle for routine patrols, intended to reduce traditional mobile guard patrols.
• Commercial billing began in May 2026 after roughly $20 million of cumulative ROAMEO development investment.
• Initial deployments at two enterprise sites: a major logistics operator and a healthcare group.
• Management projects ROAMEO could eventually contribute more monthly recurring revenue than RAD-I, pending production capacity, adoption, and field performance.

RAD-G: Agentic AI and platform partnerships

• Owns the SARA platform and related AI assets; RAD Lanka operates as a RAD-G subsidiary.
• Partnership categories: monitoring platforms/central stations (e.g., Immix), third-party hardware manufacturers, dealers/integrators, enterprise end users, and insurers/regulators/policy stakeholders.
• Platform strategy: license and integrate SARA with hardware vendors, monitoring platforms, and large end users while expanding the dealer network.
• RAD-G is positioned as an early-stage AI platform business with a substantial sales funnel.

RAD-R: Residential solutions

• RADCam product line: AI-powered, voice-enabled security camera with real-time conversational engagement via SARA in an “SOS” configuration.
• 2026 performance underperformed internal expectations due to the economics of B2C marketing; management is repositioning RAD-R into SMB and enterprise channels via RAD-I deployments.
• RADCam remains available through radcam.ai, Amazon, and other retailers; existing subscriber service continues.

RAD Lanka

• Sri Lanka-based subsidiary operating with Port City Colombo status for tax efficiency and access to a skilled workforce; part of RAD-G.

RAD Europe (planned)

• Expected establishment in fiscal 2027 to support EU market entry and GDPR-compliant services.

SARA platform and ecosystem

• SARA integrates with RAD devices and third-party devices and platforms to enable autonomous security workflows.
• Recognitions and partnerships include ISC West acknowledgments and an Immix integration completed in 2026.

Manufacturing, supply chain, and IP

Manufacturing

• Final assembly and integration in Ferndale, Michigan; subcomponents sourced domestically and internationally.
• The company aims to scale volumes to improve hardware gross margins through economies of scale, particularly during the ROAMEO ramp.

Intellectual property

• Hardware designs, software, firmware, AI models, and platforms are designed and owned by AITX and subsidiaries.
• IP ownership is distributed: RAD-I owns stationary platform software and SoC architectures; RAD-G owns SARA; RAD-M owns autonomous navigation and fleet management.
• IP protection methods include trade secrets, confidentiality agreements, copyrights, and trademarks.
• The company does not rely materially on patents for its core technology at this time.

Cybersecurity

• SOC 2 Type 2 certified since February 2025.
• Maintains an ongoing cybersecurity program with third-party penetration testing, monitoring, policies, and insurance.

Financial snapshot

• Net loss for the fiscal year ended February 28, 2026: approximately $14.5 million.
• Accumulated deficit exceeds $171 million.
• Total liabilities exceed total assets; stockholders’ equity is negative.
• Common shares outstanding exceeded 267 million as of February 28, 2026 (post 100-for-1 reverse split in March 2026).
• Authorized share count remains approximately 12 billion.
• The company relies on external financing (debt and equity) to fund operations and product ramp. A substantial portion of historical debt is owed to entities controlled by a single individual. Variable-price equity financing arrangements have contributed to dilution.
• Operational highlights: ~1,000 deployed devices, ~135 employees worldwide, Ferndale facility lease costs of about $190,000/year plus ~$28,000/year operating expenses, and an estimated $20 million cumulative ROAMEO development investment through the year prior to commercial deployment.

Risks and regulatory environment

• Ongoing need for external financing and dilution risk from variable-price equity arrangements.
• Going-concern risk given net losses and negative equity.
• Execution and production ramp risk for ROAMEO; residential RAD-R underperformed against expectations.
• Regulatory, privacy, and compliance considerations, especially for EU/GDPR exposure with RAD Europe.
• SARA’s commercial adoption depends on ecosystem licensing, platform integrations, and third-party adoption.
• International operations introduce currency, regulatory, and geopolitical risks.
• Subject to cybersecurity and data privacy obligations, including biometric privacy laws and GDPR.

Available information and sources

• Primary websites: aitx.ai; radsecurity.com; radm.ai; radgroup.ai; radresidential.ai; radcam.ai.
• Public disclosures include press announcements, awards, product deployments (including two ROAMEO deployments commencing May 2026), and dealer network expansion.
• Public filings document financials, risk factors, and the 100-for-1 reverse stock split in March 2026.

Key takeaways

• AITX builds and sells AI-driven security hardware and software through three main lines: stationary (RAD-I), mobile autonomous (RAD-M with ROAMEO), and AI platform/partnerships (RAD-G with SARA).
• The company operates a SAS business model, retaining hardware ownership while billing monthly subscription fees; RAD-I is the largest current revenue contributor, with ROAMEO expected to grow the mobile revenue segment.
• Global footprint includes a substantial dealer network, a Sri Lanka development operation (RAD Lanka), and planned entry into Europe (RAD Europe).
• The business faces material financial and execution risks, including net losses, reliance on external financing, dilution risk, and the challenges of scaling ROAMEO and expanding into the EU.