Today we are talking about a popular 6 cent penny stock, artificial Intelligence Technology Solutions, OTC Ticker Symbol AITX. Yes, AITX said in their annual financial statement ending February 2021 that they expect to increase their revenues, over the next year, by 5 to 15 times! With multiple new 2021 catalysts, I’ll share today, AITX could be a big winner. Yes, OTC stocks are highly volatile and risky, so today we are going to dive into the details of AITX, and if this would be a good bet to help build your portfolio.
I did spend hours poring through articles and Artificial Intelligence Technology Solutions financials, to aid in a decision whether it made sense to buy shares of this stock. Especially to hold for a longer-term, and that potential big run-up in price.
In the past I worked for years with Fortune 500 CFOs and financial consulting teams, to help companies determine where they were making money. Now I use this expertise to dig into AITX’ details. But this is not financial advice, and for entertainment only.
In looking back at 72 tickers I day-traded in 2018, if I had done the type of analysis I’m sharing with you today, I would have held on to more of these stocks. 77% of them would mean big profits today. I spent just $37,000 on seven of these trades, that would now be worth $441,598! The purpose of this series is to help uncover these stock gems that have better odds of make money in the long run.
Hi investing friends, this is Lynn, and welcome back to Sixty Perfect ways to wealth!
So Let’s go and review today’s hot stock!
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First a quick look at AITX and what they do. AITX technology makes it economical to provide 24/7 security patrolling and guard services, while enabling experienced personnel to focus on strategic tasks. AITX solutions are a plus for enterprises from government, transportation, to critical infrastructure, education and healthcare.
AITX’s wholly owned subsidiaries are Robotic Assistance Devices, RADM and RADG. They deliver robotics and artificial intelligence-based hardware and software solutions that empower organizations to gain new insight, solve complex challenges, and fuel new business ideas at a reduced cost.
RAD•M designs, manufactures, and maintains mobile workflow automation solutions that improve enterprise organizations’ operations while saving significant expense.
Subsidiary, Robotic Assistance Devices, Inc. (RAD), is redefining the $25 billion (US) security and guarding services industry through innovative, AI-driven Solutions-as-a-Service business model. RAD solutions provide a cost savings between 35%-80% when compared to expensive manned security guards and monitoring. RAD delivers impressive costs savings via a suite of stationary and mobile robotic solutions that complement, or replace, the need for personnel in environments better suited for machines.
This division provides the security robot, ROAMEO, that is seven feet tall – now that would be intimidating! And, ROAMEO has its own surveillance drone, Aero, on a 40’ tether that can fly up to 12 miles per hour. AITX provides these robots on a brilliant subscription model, so that any company can afford these patrolling security services. ROAMEO was just released and available Q1, 2021! This is a great impetus for AITX’ growth! Plus subscription models are an excellent source of continuing revenues.
RAD•G is AITX’s newest wholly-owned subsidiary. It’s a software company that creates solutions in line with the Autonomous Remote Services manifesto.
In reviewing an OTC stock for investment, I look at the management, competition, size of the potential market share, if they are increasing their revenues and production of cash, unique catalysts and warrants that could dilute the stock.
I did a deep dive into AITX February 2021, annual report in which the company projects that next fiscal year’s revenues will be between 5 and 15 times greater than this fiscal year’s revenues. These projected increases are based upon the following: a significant increase in orders expected to be received; an expected significant improvement in the AITX’ ability to make deliveries on-time; and an anticipated significant improvement in AITX ability to support many more devices than this it could support the previous year. But as they mention, there are no guarantees…
This plan will require the Company hire more employees, and to reach 75 – 125 employees by the end of 2022.
ATIX has recently increased its sales team from one to five full-time salespeople, and they expect to reach between 8-12 salespeople in 2022. AITX is also hiring for many more areas of the company. Over 60% of the Company’s current staff conduct research and development activities. And, AITX plans to increase this work through opening a second Canadian research and development office in BC, Canada.
AITX also, now has a new RAD Excellence Center, or REX, in the metro Detroit area. The company plans to move much of its manufacturing, assembly, testing and shipping operations from California to the new location in the greater Detroit area. This REX site is planned to open in this month, and will be a great place for all the subsidiaries to build on integrated products!
Per AITX annual report, this year’s plan also includes RAD-G introducing at least one new software solution.
- The Company plans to improve their favorability status with investors by up listing their shares to the higher level OTCQB during the next fiscal year. OTCQB is the middle tier venture market of the over-the-counter US stocks. This is a big positive, as OTCQB companies have to meet certain minimum reporting standards, pass a bid test, and undergo annual verification.
- The other OTC tiers are the highest quality OTCQX, and the most speculative Pink Sheets.
AITX has a market cap of $244 Million, and a huge daily trading volume of 52 million shares per day. Obviously this one is a favorite among some day traders, especially considering the regular 18% swings up or down in value with this stock.
Although AITX’ revenues have improved steadily over the past year, their cash raised from their own work or operations, which is a key measurement for an organization, were poor. For their year-end in February 2021, cash from operations was a negative 3 Million, versus the year-end in February 2020 of a negative 1.5 Million. This is a poor sign, and hopefully will improve with AITX’ new management team, larger sales force, increased R&D efforts and employee growth.
Now let’s talk about the positive changes in AITX management. I view Steve Reinharz, taking over as CEO as of March, 2021, as a great move.
Steven Reinharz founded RAD in July, 2016. He’s obviously motivated to build the company as he holds the majority of their common and preferred stock shares. As of March, 2021, Reinharz is AITX’ CEO and CFO. Reinharz has a solid industry background, and ran his own security integration company from the age of 24 to 31. Reinharz also leads several industry association committees, mainly through the Security Industry Association.
The other positive management addition at AITX is Christopher Almonrode. Christopher is now the VP of Robotic Assistance Devices as of April, 2021. Christopher has an impressive background as a manager in the Security Solutions space since 2010. Prior to that he was as sergeant in the Roanoke, TX, Police Department.
AITX has provided Reinharz and Almonrode compelling incentives to grow the company to specific milestones through awards of shares. You’ll want to know these details, which would dilute shares you currently own.
Steven Reinharz is to be granted an award of 10 million shares, options and warrants if Objective #1 is achieved. This objective is that the price per share of the Company’s common stock increases to an average of 30 cents for ten days in a thirty-day trading period. Reinharz could then sell these 10 million shares at a price of $0.15 per share.
Award #2 Reinharz is to be granted an award of 30 million shares, options or warrants if Objective #2 is achieved. Objective #2 is that the price per share of the Company’s common stock should increase in value to an average of $0.50 for ten days during a thirty-day trading period. Reinharz could then sell this stock at a price of $0.25 per share.
The Company was also authorized to issue 5 billion shares of common stock, with a value of $0.00001. The closing price of its common stock on May 11, 2021, as quoted by OTC Markets Group, Inc., was $7.52 cents. There were 3.5 billion shares of common stock issued and outstanding as of May 11, 2021.
Regarding the potential market, The Global Video Surveillance Market size is expected to become a $75B billion-dollar industry by 2025. The Robotic Security market is expected to reach $2.4B billion by 2022.
RAD•M, with its initial mobile robot ROAMEO, just released in Q1 of this year, is well positioned to capitalize on this growing market.
My take is that until AITX can consistently raise cash from their own efforts, instead of through loans or creating and selling more shares, we can expect our shares to become steadily more diluted in value. But, hopefully with the release of ROMEO, this will change.
It’s interesting to compare AITX to more established artificial intelligence providers, C3.ai and Palantir, although AITX has a very different offering.
C3ai was founded in 2009 and went public with financial statements just this year, in 2021. Their stock is currently listed at $60 per share. The company is growing fast but is not yet profitable.
Palantir was founded in 2003 and went public, listed on the stock exchange in October 2020. Palantir is also consuming large amounts of cash to expand its market share, currently lists at $24.67, but also not yet profitable.
AITX was founded in 2010 and moved much faster to get listed, and went public one year later. The company has been struggling since then to grow financially and grab market share.
Clearly, investing in AITX at this point, is still a very speculative move, and it could easily take 5 or more years to realize a significant profit, if any, on an investment in this stock. But AITX does have compelling catalysts that could well send the stock shooting upward. Considering, the new executive management team and sales force, the new REX excellence center and planned IT site, along with the recent release of their robot ROMEO. Full disclosure I did purchase 1000 shares of this stock, as I can afford to lose a $70 investment. My investment will keep my eyes on this stock and providing you with updates.
I always love hearing from you, so please let me know in the comments below, what your thoughts are about AITX, or other stocks you are excited about right now. And subscribe to the channel for more videos like this one. Also, go here to discover more hidden gems in our Penny Stock Videos.
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