8-K: AITX's RAD Secures Expansion Order from Major National Construction Firm, Demonstrating Rapid Growth

Robotic Assistance Devices (RAD), a subsidiary of Artificial Intelligence Technology Solutions (AITX), has received a significant expansion order from a major national construction firm for its RIO 360 Mobile Surveillance Units.

Summary

• Robotic Assistance Devices, Inc. (RAD), a subsidiary of Artificial Intelligence Technology Solutions, Inc. (AITX), has received an expansion order from a major national construction company.
• The order includes two RIO 360 Mobile Surveillance Units, each equipped with SARA licenses.
• The construction firm, headquartered in Michigan, has been evaluating RAD's AI-powered security solutions since 2022.
• The client initially purchased a single RIO 360 and two standalone ROSA units in late January 2025 to assess their effectiveness.
• The company also attended RAD's construction industry open house in July 2024.
• RAD expects to have both RIO 360 units operational at the client's job sites before the end of the month.
• AITX is aiming to redefine the nearly $50 billion security and guarding services industry.
• RAD solutions are designed to provide cost savings of between 35%-80% compared to traditional manned security.
• RAD has a prospective sales pipeline of over 35 Fortune 500 companies.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with a significant expansion order, rapid deployment capabilities, and potential for substantial cost savings. The management's comments further reinforce the positive sentiment.

Positives

• The expansion order from a major construction firm validates RAD's technology and its effectiveness in real-world applications.
• The quick deployment timeline demonstrates the maturity of RAD's production, logistics, and execution capabilities.
• The integration of SARA into the RIO 360 units enhances security operations with real-time autonomous engagement and incident escalation.
• RAD's solutions offer significant cost savings compared to traditional manned security, making them an attractive alternative for businesses.
• The prospective sales pipeline of over 35 Fortune 500 companies indicates strong growth potential for RAD.

Risks

• The document contains forward-looking statements that are not guarantees of future performance.
• The company makes no representations or warranties as to the accuracy or completeness of the information provided.
• The company has no obligation to provide the recipient with additional updated information.
• No information in this publication should be interpreted as any indication whatsoever of the company's future revenues, results of operations, or stock price.

Future Outlook

RAD expects to continue attracting new business as it converts its existing sales opportunities into deployed clients generating a recurring revenue stream, with each Fortune 500 client having the potential of making numerous reorders over time.

Management Comments

• Mark Folmer, President of RAD, stated that the expansion order reflects the growing demand for RAD's security solutions in the construction industry and that expansion follows once a client deploys their technology and experiences its impact.
• Steve Reinharz, CEO/CTO of AITX and RAD, highlighted the company's ability to move from order to deployment quickly, reflecting the maturity of their production, logistics, and execution.

Industry Context

The announcement highlights the increasing adoption of AI-powered security solutions in the construction industry, driven by the need for enhanced site security, cost reduction, and operational efficiency. RAD's solutions are positioned to disrupt the traditional manned security model.

Comparison to Industry Standards

• RAD's claim of 35%-80% cost savings compared to manned security suggests a significant competitive advantage.
• Companies like Knightscope also offer robotic security solutions, but RAD emphasizes its AI-driven approach and rapid deployment capabilities.
• The focus on the construction industry aligns with the growing demand for specialized security solutions in this sector.

Stakeholder Impact

• Shareholders: Positive impact due to increased revenue and growth potential.
• Employees: Potential for job growth and career advancement.
• Customers: Enhanced security and cost savings.
• Suppliers: Increased demand for components and services.
• Creditors: Improved financial stability and creditworthiness.

Next Steps

• Deployment of the two RIO 360 units at the client's job sites before the end of the month.
• Continued conversion of sales opportunities into deployed clients generating recurring revenue.
• Attracting new business from Fortune 500 companies and other client opportunities.

Key Dates

Keywords

RAD, AITX, Robotic Assistance Devices, Artificial Intelligence Technology Solutions, Security, Construction, RIO 360, SARA, AI, Surveillance, Robotics