AITX’s RAD Reports Preliminary 12.4% Two-Month Increase in Billed Recurring Monthly Revenue Driven by Stationary Devices

AITX posts 12.4% recurring revenue growth but faces severe financial distress and funding risk.

What the company is saying

Artificial Intelligence Technology Solutions, Inc. (OTCID:AITX) reports that its subsidiary, Robotic Assistance Devices, Inc. (RAD), achieved a 12.4% increase in billed recurring monthly revenue (RMR) over two months, reaching $663,906 in October 2026, up $73,409 from $590,497 in August. The company highlights that all growth came from its stationary device portfolio, with no revenue yet from ROAMEO, SARA, or RAIA, which are positioned as future growth drivers. CEO/CTO Steve Reinharz frames the narrative around expanding the recurring billing base and lowering operating costs, aiming to close the gap to positive operational cash flow. The announcement emphasizes the scalability of RAD’s AI-driven subscription model, referencing a nearly $8.0 million annualized run rate and potential cost savings of 35% to 80% versus traditional security. The company acknowledges that these figures are preliminary, unaudited, and subject to change after quarterly review. The tone is confident about operational progress but candid about ongoing losses, negative working capital, and a going concern warning from auditors.

What the data suggests

Billed RMR rose from $590,497 in August 2026 to $663,906 in October, a $73,409 or 12.4% increase over two months. September saw a $33,804 (5.7%) increase, while October added $39,605 (6.3%), indicating accelerating growth in recurring billings. The entire increase was attributed to the stationary device segment, with no contribution from the company’s newer products. The annualized billed RMR run rate, calculated from October’s unaudited figure, is nearly $8.0 million, but this is not recognized GAAP revenue or a guarantee of cash collection. All figures are preliminary and unaudited, with explicit warnings that they may change materially after review. The company has not achieved profitability in any fiscal year, continues to report significant operating losses, and holds negative working capital and a stockholders’ deficit. Its independent auditor expresses substantial doubt about its ability to continue as a going concern, and the company’s cash is insufficient to fund operations without new financing. While short-term recurring revenue growth is real, the structural financial position remains precarious.

Analysis

The announcement highlights a 12.4% increase in billed recurring monthly revenue over two months, supported by preliminary, unaudited figures. While this operational growth is real and quantified, the release repeatedly references future growth opportunities, cost savings, and the company's intent to achieve positive operational cash flow—none of which are yet realised. The annualized run rate and cost savings claims are forward-looking and not supported by audited results or customer data. Critically, the company discloses ongoing operating losses, negative working capital, a going concern warning, and insufficient cash, indicating that substantial additional capital is required with no immediate path to profitability. The tone is upbeat about growth, but the gap between recurring revenue gains and the company's structural financial risks is significant. The narrative inflates the signal by emphasizing design-intended savings and future product lines, while the hard data shows only modest, unaudited revenue progress and persistent financial distress.

Risk flags

• ●The company’s independent auditor has issued a going concern warning, citing substantial doubt about AITX’s ability to continue operating. This risk is heightened by ongoing operating losses, negative working capital, and a stockholders’ deficit, all of which threaten business continuity.
• ●AITX’s cash position is insufficient to fund operations for an extended period, making the company dependent on securing additional financing. If such financing is unavailable or comes with unfavorable terms, operations may be curtailed or existing shareholders may face substantial dilution.
• ●All reported revenue figures are preliminary and unaudited, with explicit caution that they may change materially after quarterly review. This introduces uncertainty about the reliability of the reported growth and the true financial trajectory.
• ●The company’s recurring revenue growth is currently limited to its stationary device portfolio, with no realized revenue from its touted future products. If these products fail to generate material revenue, the growth narrative may not be sustainable.
• ●The company’s largest customer has reduced spending since December 2025, increasing customer concentration risk and the potential for further revenue volatility if additional reductions or cancellations occur.

Bottom line

AITX’s reported 12.4% increase in billed recurring monthly revenue over two months is a positive operational signal, but the company remains in a deeply distressed financial position with ongoing losses, negative working capital, and insufficient cash. The recurring revenue gains are real but unaudited and do not yet translate into profitability or cash flow, and the company’s future growth pillars have not contributed to revenue. The going concern warning and urgent need for new financing overshadow the operational progress, making the investment case highly speculative. Investors should focus on whether the company can secure funding and convert preliminary revenue growth into audited, sustainable results. The most important takeaway is that while short-term revenue momentum exists, existential financial risks remain unresolved.

Announcement summary

(OTCID:AITX) Artificial Intelligence Technology Solutions, Inc. announced that its wholly owned subsidiary, Robotic Assistance Devices, Inc. (RAD), grew billed recurring monthly revenue (billed RMR) by 12.4% over two months, with all growth generated by its stationary device portfolio. Billed RMR reached $663,906 in October 2026, up $73,409 from $590,497 in August 2026. October’s billing level represents an annualized billed recurring revenue run rate of nearly $8.0 million. These figures are preliminary and unaudited, based on internal accounting records and may change upon completion of the Company’s quarterly review. RAD’s billed RMR growth accelerated during the first two months of the Company’s third fiscal quarter, which runs from September through November 2026. Billed RMR increased $33,804, or 5.7%, in September and $39,605, or 6.3%, in October. The entire increase was generated by RAD’s standard stationary device portfolio, with no contributions from ROAMEO, SARA, or RAIA, which are viewed as future growth opportunities. Steve Reinharz, CEO/CTO and founder of AITX and RAD, stated that the company is expanding its recurring billing base while lowering operating costs, aiming to close the gap to positive operational cash flow. The company is concentrating engineering resources on SARA, RAIA, and the continued advancement of ROAMEO, which are considered pillars of future growth. RAD primarily offers its solutions through monthly subscriptions, typically with a minimum contract term of 12 months. Billed RMR is an operating metric, not prepared in accordance with U.S. GAAP, and has not been reconciled to any GAAP measure in this release. Through its primary subsidiary, RAD-I, AITX is targeting the nearly $50 billion U.S. security and guarding services industry with its AI-driven Solutions-as-a-Service model. RAD solutions are designed to deliver cost savings of between 35% and 80% compared to traditional manned security and monitoring. The company has completed a SOC 2 Type 2 examination covering controls, system scope, and review period. AITX is led by Steve Reinharz, CEO/CTO and founder, and its leadership draws on expertise across security, law enforcement, and robotics innovation. The company’s solutions are deployed across a wide range of industries including enterprises, government, transportation, critical infrastructure, education, and healthcare. The company has not been profitable in any fiscal year of its operating history and has reported significant operating losses, negative working capital, and a stockholders’ deficit. Its independent auditor’s report expresses substantial doubt regarding its ability to continue as a going concern. The company’s cash on hand is insufficient to fund operations for an extended period without additional financing, which may not be available on acceptable terms or at all and may substantially dilute existing stockholders.

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