Security Robots + Agentic AI: RAD Is Growing While AITX Cuts Costs
FY2026 (ended Feb 28, 2026): Revenue rose 26% to $7.75 million, gross profit jumped 48% to $5.53 million, and gross margin climbed to ~71% from ~61%.
Q1 FY2027: Revenue from customers other than the largest one grew 52% year over year. RAD shipped 116 devices, up nearly 50%, with about half the production staff.
Cost cuts underway: A plan to cut $200,000 a month ($2.4M a year) in SG&A by December. August cash payments already fell 14% from July.
Real Products + Recurring Revenue + Lower Costs = The Turnaround Case
$AITX - Security Robots, SARA Agentic AI and a Turnaround in Progress
Price: ~$0.0036 (Sep 11, 2026) | FY2026 Revenue: $7.75M | Gross Margin: ~71%
Executive Summary
- What it is: Artificial Intelligence Technology Solutions (OTC: AITX) owns Robotic Assistance Devices (RAD), which builds autonomous security robots, solar security trailers and the SARA agentic AI platform for construction, retail, healthcare, logistics and industrial sites.
- Growing, high-margin revenue: FY2026 revenue of $7.75M (+26%) at ~71% gross margin, with operating loss improved by about $2.0M.
- Diversifying customer base: In Q1 FY2027, revenue from everyone except the largest customer rose 52% to $1.46M, while that one customer fell 59%.
- Recurring revenue building: Recurring monthly revenue rose 15% in June. SARA added ~$10,000 a month with roughly $100,000 of additional potential monthly revenue in backlog.
- Leaner operation: A 14% hardware price increase in May, faster manufacturing, and a $2.4M-a-year SG&A reduction plan.
- Key risk: A very weak balance sheet, with ~$95K cash, ~$36M debt and a ~$49M stockholders' deficit. The stock has fallen sharply since a 100-for-1 reverse split in March 2026 as the share count keeps rising.
THE RAD PRODUCT LINE: Robots, Trailers and an AI That Talks Back
ROSA
Compact stationary security device, the foundation of RAD's fixed-site platform
RIO / RIO 360 / RIO Mini
Portable, solar-powered security trailers for construction and remote sites
SARA
Speaking Autonomous Responsive Agent: agentic AI that detects, talks to and responds to activity
ROAMEO
Autonomous outdoor patrol vehicle
RADDOG LE2
Four-legged robotic platform for tactical use
SCANNA
New in May 2026: connects customers' existing IP cameras into RAD's RADSoC platform
RAD also sells AVA (gate and access monitoring), TOM and the HERO humanoid concept. Many devices are rented on monthly plans, which is how the company builds recurring monthly revenue (RMR). Troy McCanna, RAD's Chief Security Officer and Chief Revenue Officer: "This is how durable RMR is built. We earn confidence with one deployment, then customers add another site, another device or another layer of SARA."
Hardware gets the customer in the door; SARA and monthly plans keep the revenue coming
THE NUMBERS: Growth and Margin Expansion
Fiscal Year 2026 (Ended February 28, 2026)
Revenue
$7.75M
Up 26% (+$1.61M)
Gross Profit
$5.53M
Up 48%
Gross Margin
~71%
From ~61%
Operating Loss
Improved
By ~$2.0M
CEO Steve Reinharz: "We were able to navigate a particularly turbulent economy while maintaining overall improvements in various financial metrics and keep R&D fully funded."
Q1 Fiscal 2027 (Ended May 31, 2026)
- Revenue excluding largest customer: $1.46M, up 52% year over year and 16% from the prior quarter
- Total revenue: $1.83M, roughly flat, as the largest customer dropped 59%
- Gross margin: 65%
- Operating loss: $2.71M, improved 15%
- Operating cash used: $2.76M, improved 17%
- Guidance: Management expects Q2 revenue to exceed Q1 by more than 10%
Broader customer growth is replacing reliance on one big account
Source: AITX press releases Apr 13, 2026 (preliminary FY2026 results) and Jul 15, 2026 (Q1 FY2027 results); Form 8-K via SEC EDGAR.
OPERATIONS & ORDERS: More Devices, Fewer People
Q1 FY2027 Production
- 116 devices shipped, up nearly 50% year over year, across ROSA, RIO, RIO Mini, AVA and TOM
- ~30% faster manufacturing time
- Achieved with roughly half the prior-year production workforce
- Hardware price increase of about 14% effective May 1, 2026
Recent Orders
- Sep 9, 2026: 2 RIO 360 units, 1 RIO Mini, 1 ROSA and 4 SARA licenses from a medical technology company, a spirits producer and an Alaska channel partner, all existing relationships
- May 28, 2026: 2 RIO Mini trailers and 2 ROSA devices with SARA for a construction company that relies entirely on RAD for security
- Jan 23, 2026: 10 RIO Mini units at a major Midwest construction site
SARA & ROAMEO Ramp
- SARA: ~$10,000 in June recurring revenue, with a backlog worth roughly $100,000 in additional potential monthly revenue once fully deployed
- ROAMEO: 2 units deployed and earning revenue, 4 under contract
- Recurring monthly revenue: up 15% month over month in June 2026
Source: AITX press releases Jan 23, May 28, Jun 1, Jul 15 and Sep 9, 2026.
THE COST-CUTTING PLAN: $2.4 Million a Year
Monthly Target
$200K
SG&A cuts by Dec 31, 2026
Annualized
~$2.4M
Per year
August vs July
-14%
$900K vs $1.04M cash paid
Announced August 3, 2026, the plan targets payroll, consultants, professional fees and sales/marketing while protecting customer deployments. On September 8, Reinharz said: "August was our first month of execution under the plan, and the initial results are encouraging," adding the company is "on track to reach $200,000 in monthly cash SG&A reductions by the end of December."
Lower costs + higher prices + faster production = a shorter path to positive cash flow
Source: AITX press releases Aug 3 and Sep 8, 2026. August figures are preliminary and unaudited.
THE BALANCE SHEET: The Hurdle to Watch
Cash
~$95K
May 31, 2026
Total Debt
~$36M
Per aggregator
Stockholders' Deficit
~$49M
Per Company, FY2026
Shares Out.
432M+
Jul 2026, rising
- Reverse split: A 100-for-1 reverse split took effect March 12, 2026. In September 2025 the Company had pledged to avoid one through 2026, except in connection with an uplisting. A planned increase in authorized shares was cancelled after the split.
- Share count rising: From ~326M weighted-average shares in Q1 FY2027 to ~387M (June 30) and ~432M (July 27), as the Company funds operations through share issuance.
- Price reaction: The stock has fallen from around $0.15 to about $0.0036 (Sept 11, 2026) since the split.
The operating story is improving; the capital structure is what the turnaround must overcome
Sources: AITX press release Mar 16, 2026; Q1 FY2027 8-K; StockAnalysis (Jun 30 and Jul 27, 2026); MarketBeat (Sep 11, 2026). Debt and share figures are from aggregators and should be confirmed in the latest 10-Q on SEC EDGAR.
Leadership
Steve Reinharz
Founder, CEO & CTO. Leads AITX and RAD; spoke at the UBC Security Forum and presented at LD Micro Invitational XVI in May 2026.
Troy McCanna
Chief Security Officer & Chief Revenue Officer, RAD. Drives sales, channel partners and recurring revenue growth.
PARTIAL ROSTER -- names confirmed from 2026 press releases. No CFO or board list was confirmed for this report. Icons are used because no headshots with confirmed usage rights were sourced.
2026 Timeline
Catalysts to Watch
✓ Q2 FY2027 results: management guided to revenue more than 10% above Q1.
✓ SARA backlog conversion: ~$100,000 of potential added monthly revenue.
✓ ROAMEO: 2 more contracted units expected to go live.
✓ Cost plan: hitting the full $200K monthly SG&A reduction by December.
⚠ Share count and financing: how the Company funds operations until cash flow turns positive.
The Bottom Line: A Real Business Working Through a Hard Balance Sheet
AITX's RAD subsidiary has what many OTC names don't: real products in the field, real customers adding more sites, and high gross margins. FY2026 revenue grew 26% at ~71% margins, other-customer revenue grew 52% last quarter, shipments rose ~50% with half the staff, and SARA is starting to add recurring revenue. Management has raised prices and is cutting $2.4M a year in costs.
The challenge is the balance sheet: minimal cash, heavy debt, a large stockholders' deficit and a rising share count since the March reverse split. For traders, AITX is a turnaround watch: the operating improvements are real, and the question is whether they reach positive cash flow before more dilution.
Watch the Q2 numbers, SARA's ramp and the share count
Key Resources
Company Website: aitx.ai
RAD Website: radsecurity.com
SEC EDGAR Filings: All AITX Filings (CIK 1498148)
OTC Markets Profile: OTC Markets: AITX
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See What Else We're Tracking →Disclaimer: This report is for informational and educational purposes only and does not constitute investment advice. It is not to be considered as an offer to buy or sell securities of any type. Artificial Intelligence Technology Solutions, Inc. reports ongoing operating losses, minimal cash, significant debt and a stockholders' deficit, and has funded operations in part through share issuance; further dilution is possible. A 100-for-1 reverse stock split took effect in March 2026. Forward-looking statements about revenue, recurring revenue, cost reductions and cash flow are the Company's own and are not guarantees. Some figures are drawn from third-party aggregators and preliminary, unaudited company data and should be independently verified on SEC EDGAR. This is a highly speculative, low-priced OTC security carrying significant risk of substantial or total loss. This report is compiled from public sources including company press releases and SEC filings; DDAmanda has not independently verified all company statements. Always do your own due diligence and consult with a licensed financial advisor before making investment decisions. Data current as of September 27, 2026.