DETROIT - Artificial Intelligence Technology Solutions, Inc. (OTCPK:AITX), along with its subsidiary Robotic Assistance Devices, Inc. (RAD), has reported a notable increase in its Recurring Monthly Revenue (RMR) and a reduction in operating expenses in its latest financial results for the quarter ending November 30, 2023. The company also announced a strategic extension of debt maturity with its key lender.
The RMR, which is a critical metric for AITX's business model, saw a significant rise to $416,062 for the three months ended November 30, 2023, marking a 2.7-fold increase from the $154,628 reported in the same period the previous year. This growth indicates a solid demand for the company's AI-driven security and productivity solutions. AITX plans to sustain this momentum by improving its sales funnel and hiring two additional sales personnel.
In addition to revenue growth, AITX achieved a 9% decrease in Selling, General, and Administrative (SG&A) expenses for the nine-month period ending November 30, 2023, bringing the total to $9,038,313, down from $9,928,144 for the same period in 2022. The company attributes these cost reductions to its focus on efficiency and cost management.
Furthermore, AITX successfully restructured approximately $10.8 million of its debt, extending the maturity date by about two years. This reclassification from current to long-term debt and the absence of any defaults within the new terms enhance the company's liquidity profile. Notably, the lender did not seek additional compensation for this extension, which AITX interprets as a sign of confidence in its financial health and future prospects.
Steve Reinharz, CEO of AITX, expressed satisfaction with the company's performance, citing the growth in RMR, reduction in SG&A expenses, and the support from their key lender as indicators of the company's strong market position and operational efficiency.
RAD, a subsidiary of AITX, operates on a Solutions-as-a-Service business model and aims to provide cost-effective alternatives to traditional security services. RAD's suite of robotic solutions is designed to complement or replace human personnel in certain environments, potentially offering significant cost savings to businesses.
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