-
A global leader in AI-driven security and productivity solutions for enterprise customers, announced on its Form 10-Q for the three and six months ended August 31, 2022, for the second quarter of fiscal 2023: Filed quarterly reports with the U.S. Securities and Exchange Commission. AITX is a fully reporting company to the SEC and files audited and unaudited financial statements in its annual and quarterly reports, respectively.
AITX CEO Steve Reinharz said: “Not only have subscription revenues increased year-over-year, but the company has become stronger across all platforms and divisions.”
Key Takeaways from the 10th Quarter Filing for FY2023 Q2
85% YoY increase in subscription revenue
After stabilizing with destocking in the first quarter, the gross margin stabilized at 87% in the second quarter, and the gross margin is unusually low at 23%.
Total subscription revenue for the three months ended August 31, 2022 was $228,145, an increase of $123,375 or 85% over the same quarter ended August 31, 2022. The majority of the company’s revenue comes from subscription-based contracts. Gross margin increase
Proceeds from issuance of common stock
The Company has received equity proceeds of approximately $4 million through October 21, 2022, net of issuance costs. The company plans to raise an additional $4 million to $6 million later in the fiscal year by issuing additional shares that it plans to use for growth and debt reduction.
Reduction of subscription rights to shares The Company eliminated his 955 million warrants to purchase common stock at an average price of $0.008 in exchange for his $3 million debt maturing in two years at a 15% interest rate. The execution of such warrants will dilute the value of our stock, thereby reducing the number of outstanding warrants and thereby increasing the value of our common stock for both current and future shareholders. Solution development
AITX and its subsidiaries announced and/or launched several new solutions in the second quarter. These solutions leverage the RAD Platform to provide unique “security-in-a-box” solutions that can be deployed in minutes, delivering innovative solutions such as firearm detection. Enhancements to RIO, ROSA-P, TOM, ROSS and RAD’s software suite were added to RAD’s award-winning offerings during the fourth quarter.