What changed in this filing

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Item 1. Business

2026-06-09 compared with 2025-05-29 · 375 added, 962 removed, 15 unchanged (99% of the section changed)

Robotic Assistance Devices, LLC was incorporated in the State of Nevada

on July 26, 2016, as an LLC and was founded by current President and CEO, Steve Reinharz.

Reinharz has 30+ years in various leadership/ownership

roles in the security industry and was part of a successful exit to a global multinational security company in 2004.

Reinharz started

his first security integration company in 1996, which he grew to 30+ employees before closing that company in 2003.

In 2017, Robotic Assistance

Devices LLC converted to a C Corporation, Robotic Assistance Devices, Inc.

(“RAD”), through the issuance of 10,000 common

shares to its sole shareholder.

History and Organization

Intelligence Technology Solutions Inc.

(formerly known as On the Move Systems Corp.) (“AITX” or the “Company”)

was incorporated in Florida on March 25, 2010, and reincorporated in Nevada on February 17, 2015.

On August 24, 2018, On the Move Systems

changed its name to Artificial Intelligence Technology Solutions Inc.

2017, AITX acquired all the ownership and equity interests in RAD (the “Acquisition”).

Before the Acquisition, AITX’s

business focus had been transportation services, and AITX was exploring the on-demand logistics market by developing a network of logistics

partnerships.

After the Acquisition, AITX shifted its business focus to align with RAD’s mission.

Since that time, AITX has been

engaged in pursuing the delivery of artificial intelligence (AI) and robotic solutions for operational, security, and monitoring needs.

More specifically, the Company is focused on applying advanced AI-driven technologies, paired with multi-use hardware and supported by

custom software and cloud services, to intelligently automate and integrate a variety of high-frequency security, concierge, and operational

substantially all of AITX’s operations were disposed of with the transaction’s consummation, the Acquisition was treated

as a reverse recapitalization effected by a share exchange for financial accounting and reporting purposes.

AITX recorded no goodwill

or other intangible assets as a result of the Acquisition.

RAD is treated as the accounting acquirer as its stockholders control the

Company after the Acquisition, even though AITX was the legal acquirer.

Therefore, the assets, liabilities, and historical operations

reflected in these financial statements are those of RAD as if RAD had always been the reporting company.

solutions are generally offered as a recurring monthly subscription, typically with a minimum 12-month subscription contract.

sells their units and the client that RAD has had longest opts to do this.

RAD’s solutions are expected to earn over 75% gross

margin over the life of each deployed asset when under subscription and over 50% gross margin when sold.

Specifically, RAD provides workflow

automation solutions delivered through a system of hardware, software and cloud services.

All elements of hardware and software design

offered by RAD are 100% designed, developed and owned by RAD.

Reinharz, founder of RAD and single largest equity owner of AITX, became CEO on March 2, 2021.

The Problems that AITX Solves

The labor model is collapsing.

· Security staffing is expensive, hard to fill, and impossible to scale with

growing demand.

Human response is too slow for modern threats.

· Incidents happen in seconds.

Manual detection and delayed reaction put people,

property, and reputations at risk.

Most security roles were never built for people.

· Watching dozens of cameras, identifying anomalies, escalating threats, these

tasks are better suited for machines that never fatigue.

Legacy systems are fragmented and reactive.

· Disconnected devices, siloed alerts, and manual workflows prevent true situational

awareness or intelligent action.

There’s no “autonomous layer” in physical security.

Every other industry, logistics, manufacturing,

finance, has automated routine operations.

Physical security is still lacking automation.

Executive Summary

AITX is a pioneer in practical AI deployment, offering proven, revenue-generating

solutions that address long-standing inefficiencies in the security and facility management industries.

While many companies are still

conceptualizing how AI and generative AI might apply, AITX is actively delivering results through its suite of intelligent, autonomous

devices and platforms.

At the core of these solutions is SARA, the Company’s Agentic

SARA enables autonomous detection, decision-making, and voice-driven response, setting AITX apart from passive monitoring

systems and advancing the capabilities of modern security technology.

AITX represents a compelling opportunity in a high-growth industry

driven by rising demand for smarter, more efficient alternatives to traditional security models.

Simply put, AITX is redefining how security and safety is deployed.

“AITX isn’t following trends, it’s setting them,

delivering intelligent security where traditional models can’t keep up.”

Reinharz, CEO/CTO, AITX

the global security and facility management markets as they approach $1 trillion in size according to Steve Reinharz.

revenue-generating products currently deployed across commercial and public sectors.

AI SARA and other AITX solutions enable real-time, autonomous engagement and decision-making.

technologies are delivering measurable impact.

From reducing incidents and lowering operational costs to improving safety and response

times, RAD deployments are earning strong praise from clients across multiple industries.

These endorsements highlight more than just

satisfaction.

They reflect a broader industry shift toward intelligent, automated security solutions that outperform legacy approaches.

Southeast Hospital Network

staff feels safer now that they’re protected by RAD Light My Way.

There have been no serious incidents since the installation of

David Pope, Chief Operating Officer, Scotland Memorial Hospital

Logistics Leader

combining our logistics expertise with RAD’s innovative robotics, we’ve deployed even more cost-effective solutions that

didn’t exist just a few years ago.”

Thomas Nelson, Senior Director of Security at GXO

RAD Channel Partner

RAD’s help, we’ve customized an innovative 24-hour solution by decreasing the reliance on manpower and leaning more into

RAD’s available technology.”

Justin Frazer, Director of Systems, EPIC Security Works

Electronics Distributor

provides us with what we need for efficient access control.

Its ability to effortlessly process deliveries and shipments, along with

its video and data records, keep us apprised of what is coming in and going out of our gates in real time.”

Eddie Cabana, Senior Manager, Safety & Security, Ingram Micro

Authorized Dealer

solutions are what the security industry needs right now.

We expect to save this client close to $300,000 over the next three years with

just two ROSAs.”

Chris Daniels, Director of Sales and Marketing, USA Security

California Car Rental Location

to the ROSA units, we’ve addressed all sorts of issues.

Damage to vehicles, graffiti on the exterior of the building, that’s all gone

since we put the ROSAs in.”

Sean Perez, General Manager, Midway Car Rental

Products + Solutions

AITX delivers a comprehensive portfolio of AI-powered security technologies,

combining intelligent hardware and advanced software to modernize how security is deployed, managed, and experienced.

Each solution is

designed to operate independently or as part of an integrated system, enabling scalable and cost-effective protection across a wide range

of industries.

AITX delivers a comprehensive portfolio of AI-powered security technologies,

combining intelligent hardware and advanced software to modernize how security is deployed, managed, and experienced.

Each solution is

designed to operate independently or as part of an integrated system, enabling scalable and cost-effective protection across a wide range

of industries.

Powering this ecosystem is SARA, AITX’s Agentic AI platform, which empowers devices to detect, decide, and respond

in real time.

Why Our Robots Have Names Like ROAMEO and TOM

At AITX, we believe security technology doesn’t have to feel

cold or sci-fi.

Thats why many of our solutions have names that sound more like teammates than machines.

Whether its ROAMEO patrolling

a corporate campus or TOM greeting visitors at the front desk, these names help humanize our devices, making them more approachable and

easier to embrace.

We’re building robots for the real world, not a movie set.

Mobile Solutions

Access and Entry

(the “Company,” “AITX,” “we,” “our,” or “us”)

was incorporated in the State of Florida on March 25, 2010, under the name On the Move Systems Corp., and reincorporated in the State

of Nevada on February 17, 2015.

On August 24, 2018, the Company changed its name to Artificial Intelligence Technology Solutions Inc.

2017, the Company acquired all of the ownership and equity interests in Robotic Assistance Devices, Inc.

(“RAD”), a Nevada

corporation founded by Steven Reinharz, the Company’s current Chief Executive Officer and Chief Technology Officer (the “Acquisition”).

Prior to the Acquisition, the Company’s operations consisted of an early-stage transportation services business that was disposed

of in connection with the Acquisition.

As a result, the Acquisition was accounted for as a reverse recapitalization effected through

a share exchange, with RAD treated as the accounting acquirer.

No goodwill or other intangible assets were recorded in connection with

the Acquisition, and the historical operations reflected in our consolidated financial statements are those of RAD.

the Acquisition, the Company has been engaged in the development, deployment, and commercialization of artificial intelligence and robotic

solutions for security, monitoring, and operational applications.

Reinharz was appointed Chief Executive Officer on March 2, 2021.

of the date of this Annual Report on Form 10-K, the Company conducts substantially all of its operations through five (5) wholly owned

subsidiaries:

Robotic Assistance Devices, Inc.

Robotic Assistance Devices Group, Inc.

Assistance Devices Mobile, Inc.

Robotic Assistance Devices Residential, Inc.

Assistance Devices Lanka (PVT) Ltd.

(“RAD Lanka”), a Sri Lanka entity holding Port City Colombo status that operates as a

wholly owned subsidiary of RAD-G.

The Company anticipates establishing an additional subsidiary, Robotic Assistance Devices Europe (“RAD

Europe”), during fiscal 2027 to support growing business activity in the European Union and to serve as the Company’s cost

center for Genera Data Protection Regulation (GDPR)-compliant services.

is a vertically integrated developer and operator of artificial intelligence-driven security and operational automation solutions.

Company designs, manufactures, deploys, and supports a portfolio of stationary devices, mobile autonomous platforms, and software products

SARA enables our devices to perceive,

decide, communicate, and act autonomously in real time, without continuous human intervention.

Substantially

all of our revenue is generated through recurring monthly subscription contracts, typically with minimum twelve-month initial terms,

under a Solutions-as-a-Service model in which the Company retains ownership of the deployed hardware.

The Company also sells units outright

to a limited number of legacy enterprise customers.

We expect that, over the deployment life of a subscribed unit, gross margin will

exceed 75%, and that gross margin on outright sales will exceed 50% based on average bill of materials costs over the past two years

and related sales and dealer channel pricing that our market has appeared to accept.

customer base spans logistics, healthcare, commercial real estate, manufacturing, retail, education, government, and residential markets,

and includes one Fortune Top 10 enterprise and several additional Fortune 500 enterprises.

As of the date of this report, the Company

has deployed approximately one thousand devices across the United States and Canada, and is in the early stages of European market entry.

Context and Long-Term Vision

views the physical security industry as being in the early stages of the most significant structural transformation in its history.

founder, Steve Reinharz, has written and spoken extensively and is a regular speaker about this transformation since company inception

at industry association events hosted by the two industry leading organizations, SIA (Security Industry Organization) and ASIS (American

Society for Industry Security).

The industry has historically depended on human guard labor, passive video surveillance, and manually

monitored alarm systems—a model substantially unchanged in its fundamentals for more than fifty years.

That model is, in our view,

is undergoing change driven by a variety of factors including increasing challenges with labor and the advent of AI solutions.

labor costs continue to rise faster than commercial security budgets;

qualified personnel are increasingly difficult to recruit and retain;

manual monitoring workflows cannot scale to the volume of cameras and sensors now deployed;

and the response-time performance of human-mediated

systems is incompatible with the speed at which modern threats develop.

industries—logistics, manufacturing, financial services, agriculture—have already passed through the corresponding transition

from mechanized labor (the Third Industrial Revolution) to autonomous, AI-orchestrated workflows (commonly described as the Fourth Industrial

Revolution, or Industry 4.0).

The physical security industry, in management’s view, is now in the first phase of that same transition.

AITX is positioned to be a primary participant in this shift, and a substantial portion of the Company’s strategy, capital allocation,

and product roadmap is oriented around accelerating it.

the Company refers to the long-term outcome of this transition as “RAD Town”—a vision in which AITX’s portfolio

operates as an integrated autonomous-security fabric across a campus, community, or jurisdiction.

In a fully realized RAD Town deployment,

ROAMEO mobile units conduct outdoor patrol;

AVA manages vehicle access at gates and perimeters;

TOM handles credentialed pedestrian and

visitor access at building entries;

stationary ROSA, RIO, and RAM units provide fixed-position coverage of high-value zones;

RADCam protects

residential and small-business endpoints;

and SARA orchestrates all of it as a single agentic layer, escalating to human responders only

when necessary.

RAD Town is not a single named site or development;

it is the design target around which our product roadmap, software

architecture, and partnership strategy are organized.

believe that the companies that capture the largest share of the value created by this transition will be those that combine proprietary

hardware, proprietary AI, a broad partner ecosystem, and operational discipline.

The Company’s strategy is built on each of these

Structure and Sales Channels

Company is organized around four operating subsidiaries focused on commercial product sales and one development and licensing subsidiary.

For purposes of management reporting and strategic capital allocation, we view our commercial activity as proceeding along three principal

sales avenues:

(i) the stationary product portfolio operated through RAD-I;

(ii) the mobile autonomous platform operated through RAD-M;

and (iii) the agentic AI platform and ecosystem partnerships operated through RAD-G.

RAD-R operates a residential product line that is

currently a smaller component of consolidated revenue and is discussed separately below.

believes that RAD-I, on a standalone basis (based on direct and expenses for only stationary solutions and therefore stripped of any

expense not related to stationary solutions and its development), has achieved a point at which its recurring revenue and gross margin

could support positive cash flow operations today.

The Company has elected to continue investing materially in

RAD-M and RAD-G because we believe those investments will produce substantially larger long-term revenue and enterprise value than would

be achievable from RAD-I alone.

The Company’s consolidated results therefore continue to reflect the costs of those investments,

specifically in mobile, residential and agentic solutions.

This positioning reflects management’s view based on internal segment-level

the Company does not separately publish audited standalone financial statements for individual subsidiaries.

Stationary Solutions

Software and Intelligence

Firearm Detection

Speaking Autonomous Responsive Agent (Agentic

SARA is AITX’s Agentic AI, intelligent voice and decision-making

Powered by large language models, SARA gives RAD devices the ability to speak, listen, interpret, and take action based on real-time

Primary Use Cases

· Remote video monitoring replacement

· Command center automation

· AI-powered escalation and deterrence

· Interactive access control and public engagement

Market Impact

SARA is the brain behind the Company’s next-gen devices, enabling

AITX to disrupt the $3 billion remote monitoring industry i ,

and the entire $50 billion security industry ii .

As deployments

grow, so does the adoption of SARA-powered autonomy, fueling recurring software revenue and opening up new verticals.

Competitive Advantage

Unlike static analytics or scripted alerts, SARA

can adapt, engage dynamically, and respond intelligently to a wide variety of human behavior.

No other security solution on the market

combines voice AI, situational logic, and autonomous action at this scale.

Industry Recognition

SARA received top honors at ISC West 2025, winning both Judges Choice

and Best in Threat Detection and Response Solutions in the prestigious Security Industry Associations New Product Showcase.

These accolades

underscore the industry’s recognition of SARA as a category-defining solution that reshapes how remote monitoring is delivered.

The global market for AI agents is accelerating rapidly, growing from

$5.4 billion in 2024 to a projected $50.3 billion by 2030 at a compound annual growth rate of 45.8% iii .

In the United States alone, the sector is expected to grow from $1.6 billion to $13.5 billion over the same period iv .

This extraordinary expansion reflects a shift toward intelligent, autonomous systems that actively engage, assist, and perform, exactly

the kind of functionality delivered today by AITX’s SARA platform.

The Emergence of Agentic AI

The security industry is beginning to experience what the tech world

has been forecasting for years:

the rise of Agentic AI.

Unlike traditional AI tools that offer suggestions or basic automation, Agentic

AI systems perceive their environment, make decisions, take action, and adapt over time with minimal human involvement.

At AITX, this is not theoretical.

It is happening now.

Agentic AI powers devices that do more than follow a script.

They observe,

assess, engage, escalate, and interact in real time.

Whether it is a security device initiating a voice deterrent or an AI agent managing

visitor access, these systems replace manual intervention with autonomous action that is consistent, immediate, and intelligent.

SARA, the Speaking Autonomous Responsive Agent, is a leading example

of this approach in practice.

Through conversational AI, layered decision making, and integration with both analytics and cloud infrastructure,

SARA enables RAD, and other devices to perform as active participants in a security workflow.

As businesses and institutions face growing security challenges, shrinking

labor pools, and rising costs, Agentic AI is emerging as the most scalable and sustainable answer.

It does not just monitor.

AITX is at the forefront of this transformation, bringing real-world,

field-proven Agentic AI to clients across commercial, public, and residential sectors.

AI changes the relationship between humans and machines.

AI doesn’t just assist, it now observes, decides, and acts on our behalf

- faster, more accurately, and more consistently.”

Reinharz, CEO/CTO, AITX

i Verified Market Reports, “Solar Camera Trailer

Market Size, Industry Trends & Forecast 2033,” March 2025

https://www.verifiedmarketreports.com/product/solar-camera-trailer-market/

ii National Equipment Register, “July 4th Heavy Equipment

Theft Trends and Security Tips 2023,” June 2023.

https://www.ner.net/wp-content/uploads/2023/06/NER-July-4th-Theft-Trends-and-Security-Tips-2023.pdf

iii Grand View Research, “Access Control Market Size

& Share | Industry Report, 2030,” 2024

https://www.grandviewresearch.com/industry-analysis/access-control-market-report

iv Grand View Research, “Visitor Management System

Market Size & Share Report, 2030,” 2024

https://www.grandviewresearch.com/industry-analysis/visitor-management-system-market-report

Observation Security Agent

is a compact, self-contained security device that provides autonomous deterrence, detection, and response.

It combines visual analytics,

audio engagement, and AI-driven escalation in a sleek, visible form factor.

SARA, AITX’s Agentic AI platform, is integrated into

every ROSA unit, enabling it to interpret activity, make decisions, and respond in real time without human intervention.

· Perimeter and property protection

· Firearm detection and response

· Entry point monitoring

· Loitering and trespassing deterrence

is AITX’s most deployed solution to date, generating recurring monthly revenue (RMR) with every unit.

It serves as the foundation

for other devices, including RIO and RAM, and has been credited with stopping crimes before they escalate.

replaces the cost and complexity of security guards or video monitoring services.

With onboard AI, two-way communication, and autonomous

actions, it outperforms legacy cameras and passive systems by actively preventing incidents, not just recording them.

With SARA embedded,

ROSA gains the ability to assess context, escalate appropriately, and respond with precision.

Industry Recognition

ROSA has earned widespread

acclaim across the security industry.

It was selected as a winner of the CBRE Innovation Challenge, recognizing breakthrough technologies

in commercial real estate.

At the 2021 ASTORS Awards by American Security Today, ROSA was named Best Robotic Perimeter Protection and

Best Motion Detection Solution.

It has also been honored as a Security Today New Product of the Year, further validating its role as

a transformative security solution for real-world applications.

The global video surveillance market was valued at $54.42 billion in

2024 and is projected to reach $88.71 billion by 2030, growing at a compound annual growth rate of 8.5% v .

Within that space, AI-driven surveillance is emerging as a key growth segment, estimated at $6.51 billion in 2024 and expected to grow

at a CAGR of 28.1% to reach $28.76 billion by 2030 vi .

rapid acceleration underscores the demand for intelligent, real-time monitoring solutions, positioning AITX and devices like ROSA at the

center of the industry’s evolution.

Market Drivers

-Rising Security Concerns:

Increasing incidents of theft, vandalism, and other security breaches are prompting businesses to invest in advanced surveillance solutions.

-Technological Advancements:

The integration of Agentic AI and machine learning in surveillance systems enhances real-time monitoring and threat detection capabilities.

v Market Research Future, “Smart Home Security Camera

Market Outlook, Size Share & Growth Forecast 2025-2034,” 2025

https://www.marketresearchfuture.com/reports/smart-home-security-camera-market-33370

vi Custom Market Insights, “Global Security Robots

Market Size, Share & Trends Analysis Report, 2025–2034.”

https://www.custommarketinsights.com/report/security-robots-market/

Assistance Devices, Inc.

(“RAD-I”) operates the Company’s stationary product portfolio.

RAD-I is the largest revenue

contributor within the consolidated group, and its product line represents the most mature, most deployed, and most operationally proven

elements of our portfolio.

RAD-I’s solutions are typically deployed at fixed locations—building entries, gates, perimeters,

parking facilities, and interior chokepoints—and are delivered as recurring subscription services.

current product portfolio includes the following solutions, each of which is integrated with the Company’s SARA agentic AI platform:

(Responsive Observation Security Agent)

is a compact, self-contained stationary security device combining visual analytics, two-way audio engagement, and AI-driven escalation.

ROSA is the Company’s most widely deployed solution and serves as the foundation for several other products in the portfolio.

is used for perimeter and entry-point monitoring, loitering and trespass deterrence, firearm detection, and a range of related applications,

and replaces or substantially reduces the need for guard services at protected locations.

(ROSA Independent Observatory)

RIO is a portable, solar-powered security tower that includes a single

or dual ROSA unit mounted atop a solar panel trailer.

Designed for rapid outdoor deployment, it delivers high-visibility deterrence and

autonomous response in locations where traditional infrastructure is impractical or too costly.

With SARA, AITX’s Agentic AI platform,

embedded through each ROSA unit, RIO operates with intelligent decision-making, real-time escalation, and autonomous voice intervention.

Primary Use Cases

· Retail parking lots

· Construction site security

· Healthcare and hospital perimeters

· Logistics yards and distribution centers

· Public events and temporary high-risk zones

Market Impact

RIO is one of AITX’s fastest-growing product categories, especially

in the retail, construction and healthcare markets.

Its rapid deployment model aligns perfectly with temporary or high-turnover environments.

Each RIO includes one or two ROSA devices, compounding recurring revenue through bundled subscriptions.

Competitive Advantage

RIO, with its single or double ROSA units, eliminates the need for

expensive guard posts or legacy, non-AI trailer systems.

With SARA integrated into each unit, RIO delivers autonomous detection, analysis,

and engagement, redefining what portable perimeter security should be.

Notable Deployments

Hundreds of RIO units are actively deployed across the United States,

protecting a wide range of environments.

These include logistics hubs, healthcare campuses, construction sites, solar farms, municipalities,

and urban districts such as CIDs and BIDs.

The global solar camera trailer market was valued at $1.2 billion in

2024 and is projected to reach $2.5 billion by 2033, growing at a CAGR of 8.9% from 2026 to 2033 vii .

This growth is driven by increasing demand for portable surveillance

solutions across sectors like construction, public safety, and infrastructure.

Market Drivers

-Rising Equipment Theft:

construction industry reported a 12% year-over-year increase

in equipment theft in 2023 viii , accelerating demand for solar-powered

surveillance systems.

-Cost Efficiency:

Deploying solar surveillance trailers can reduce

guarding costs significantly.

For instance, hiring a solar surveillance trailer with live monitoring services costs around $1,000 a month,

compared to up to $40,000 a month for traditional security guards.

vii Fact.MR, “Autonomous Patrolling Robot Market

Outlook, 2023–2033.”

https://www.factmr.com/report/autonomous-patrolling-robot-market

viii Market Research Intellect, “Robotic Dogs Market

Size and Forecast,” 2024

https://www.marketresearchintellect.com/product/robotic-dogs-market-size-and-forecast/

is a portable, solar-powered security tower comprising one or two ROSA devices mounted atop a solar trailer assembly.

RIO is designed

for rapid deployment in environments where permanent infrastructure is impractical, including construction sites, retail parking lots,

healthcare campuses, distribution yards, public events, and temporary high-risk locations.

Hundreds of RIO units are actively deployed

across the United States.

(Autonomous Verified Access)

AVA is a smart gate security solution that manages vehicle entry using

AI-powered license plate recognition, two-way voice interaction, and cloud-based authorization.

It replaces or enhances traditional guard

shacks by automating entry verification.

Integrated with SARA, AITX’s Agentic AI platform, AVA performs real-time analysis, verifies

credentials, and engages drivers through intelligent voice interaction.

Primary Use Cases

· Distribution centers and logistics hubs

· Gated residential communities (with HOAP)

· Corporate and industrial campuses

· Commercial and multi-tenant properties

Market Impact

AVA expands AITX’s footprint into both

residential and commercial access control, delivering recurring revenue while solving the high costs and labor challenges of manned entry

AVA’s success has driven adoption of HOAP, the Homeowners Association Platform, a full-featured resident and guest access

Through HOAP, HOAs can issue digital passes, receive entry notifications, and manage visitor logs from any device.

integrated, AVA not only verifies access but also delivers voice-driven reporting and automated follow-up to ensure every interaction

is documented and addressed.

Together, AVA and HOAP are on a mission to reimagine what residential

gate control looks like.

They replace outdated call boxes and guards in booths with intelligent, automated engagement.

This modern solution

enhances both security and convenience, giving communities a premium access experience without the high cost of traditional gate staffing.

Industry Recognition

AVA was recognized by the Security Industry Associations New Product

Showcase Awards in the category of Access Control Software, Hardware, Devices and Peripherals.

This honor reinforces AVAs position as

an innovative solution in the field of automated access management.

The global access control market is projected to grow from $10.76 billion

in 2024 to $17.30 billion by 2030, reflecting a compound annual growth rate of 8.4%.

In the United States, the market is expected to expand

from $2.62 billion to $3.68 billion over the same period ix .

This sustained growth underscores the shift toward intelligent, autonomous systems for managing vehicle and personnel entry, positioning

AVA at the forefront of a rapidly evolving segment of physical security.

Market Drivers

-Labor Shortages:

Organizations are seeking automated solutions to manage vehicle access

points, reducing reliance on human guards.

-Security Concerns:

Rising incidents of unauthorized access and the need for real-time

monitoring are driving the adoption of advanced access control systems.

ix Fortune Business Insights, Humanoid Robots Market Size,

Share & Trends Report, 2032”

https://www.fortunebusinessinsights.com/humanoid-robots-market-110188

is a vehicle gate access management solution combining license plate recognition, two-way voice interaction, and cloud-based authorization.

AVA is deployed at logistics hubs, gated communities, corporate and industrial campuses, and multi-tenant commercial properties.

is sold both as a standalone subscription and as a component of a broader access platform that includes the Homeowners Association Platform

(“HOAP”), a digital pass and visitor management application used by residential communities.

(The Office Manager)

TOM is an AI-powered solution that automates visitor management and

front desk functions.

It provides consistent engagement, credential verification, and access control without the need for onsite reception

or security staff.

With SARA, AITX’s Agentic AI platform, supporting every TOM unit, the system can guide interactions, assess visitor

behavior, and initiate appropriate response and reporting actions in real time.

Primary Use Cases

· Office building entry points

· Corporate campuses

· Multi-tenant commercial facilities

· Government and educational institutions

Market Impact

TOM is helping modernize how commercial spaces handle entry and access.

As organizations seek ways to automate and streamline front-facing operations, TOM offers a professional, scalable, and cost-efficient

alternative to staffed desks.

Its ability to tie into RAD-I’s broader ecosystem increases its utility and adoption potential.

Competitive Advantage

Unlike static kiosks or basic sign-in systems, TOM combines interactive

engagement, ID verification, and real-time escalation options.

It enhances both the user experience and security posture, offering a comprehensive

solution that adapts to high-traffic or high-security environments.

Notable Deployments

One of the world’s largest third-party logistics providers relies

on TOM to manage visitor intake and processing across its North American distribution network.

TOM has helped this client streamline facility

access, improve accountability and enhance site-level security.

This enterprise deployment showcases TOM’s scalability and its ability

to meet the rigorous demands of high-volume, high-security environments.

The global visitor management system market is projected to grow from

$1.87 billion in 2024 to $4.04 billion by 2029, reflecting a 16.6% compound annual growth rate.

In the United States, adoption is already

strong, with the market estimated at $8.7 billion x , driven

by increased demand for secure, automated, and efficient visitor access solutions.

Market Drivers

CLRASN-Shift to Hybrid Work Model:

Organizations are adopting flexible work arrangements, necessitating

efficient visitor management solutions to monitor and control access.

-Operational Efficiency:

Automation of check-in processes reduces administrative burdens and

improves the visitor experience.

x MarketsandMarkets, “ AI in Video

Surveillance Market by Offering, Deployment Type, Application, Vertical & Region – Global Forecast to 2030,” 2024

https://www.marketsandmarkets.com/Market-Reports/ai-in-video-surveillance-market-84216922.html

The Security Camera That Doesn’t Just Watch, It Responds

RADCam is an AI-powered, voice-enabled security camera designed for

homeowners, property managers, and small businesses.

RADCam doesn’t just record, it engages, responds, and helps resolve situations

in real time.

Primary Use Cases

· Residential home security

· Small businesses

· Enterprise clients

· Gated entry points and garages

Market Impact

RADCam began as a disruptive force in the residential security market

through the Company’s residential subsidiary RAD-R, offering real-time AI engagement for homeowners.

Now, following strong early

demand, AITX has expanded RADCam into the small-to-medium business and enterprise markets through its commercial subsidiary RAD-I.

new versions of RADCam are specifically configured to serve the unique needs of commercial properties, offices, storefronts, and large-scale

In residential settings, SARA takes the form of an ‘SOS feature’,

enabling RADCam to speak, escalate, and notify in real time.

In SMB and enterprise deployments, SARA is fully integrated, providing agentic

decision-making, continuous interaction, and automated reporting across all monitored environments.

The SMB configuration adds enhanced detection and interaction capabilities,

making it ideal for locations needing consistent security presence without adding staff.

The enterprise version integrates with RADSoC,

RAD-I’s command and control software, allowing centralized management across dozens or even hundreds of RADCam devices.

This evolution

transforms RADCam into a scalable solution that fits anywhere from the front porch to the corporate campus.

By entering these broader markets, RADCam is positioned to become a

foundational element in how businesses approach autonomous security.

The expansion opens up new, higher-margin revenue channels while

further validating the flexibility and scalability of AITX’s AI technology..

The global home security camera market is projected to grow from $10.51

billion in 2024 to $60.99 billion by 2034, reflecting a CAGR of 19.23%.

In the U.S., the market is expected to expand from $3.02 billion

in 2024 to $17.84 billion by 2034 xi .

Market Drivers

-Rising Crime Rates:

An uptick in property crimes and package thefts has led homeowners

and small businesses to invest in security solutions.

-Smart Home Integration:

The proliferation of IoT devices has made it easier to integrate security

cameras into existing smart home ecosystems, enhancing user convenience.

Affordability and Accessibility:

The decreasing cost of high-quality cameras has

made advanced security solutions more accessible to a broader audience.

xi MarketsandMarkets, AI in Video Surveillance

Market by Offering (Hardware, Software, Services), Deployment Type (On-premises, Cloud), Application (Intrusion Management, Facial Recognition,

License Plate Recognition), Vertical and Region – Global Forecast to 2030, April 2024

https://www.marketsandmarkets.com/Market-Reports/ai-in-video-surveillance-market-84216922.html

Rugged Observation Assistance Mobile Electronic Officer

ROAMEO is a fully autonomous, mobile security robotic vehicle designed

to patrol large outdoor spaces.

Equipped with AI analytics, voice engagement, and real-time deterrence capabilities, ROAMEO performs routine

security patrols without human intervention.

SARA, AITX’s Agentic AI platform, is integrated to enable ROAMEO to assess situations,

engage appropriately, and report autonomously as it navigates complex environments.

Primary Use Cases

· Corporate and educational campuses

· Distribution centers and logistics yards

· Municipal parks and entertainment venues

· Parking lots and stadium exteriors

Market Impact

ROAMEO represents AITX’s answer to the high cost and limitations

of today’s security personnel.

It is about to be deployed across public and private sectors as an alternative to guard teams in

vehicles or golf carts.

Demand is strong enough that AITX is currently accepting orders with scheduled deliveries expected soon, a clear

indicator of market interest and confidence in ROAMEOs capabilities.

Each deployment generates long-term recurring revenue and expands

the Company’s position in autonomous mobile security.

Competitive Advantage

Unlike traditional security patrols or static surveillance systems,

ROAMEO offers round-the-clock coverage with intelligent, autonomous decision making.

It detects, speaks, escalates, and alerts, all while

With SARA’s support, ROAMEO delivers contextual awareness, adaptive response, and continuous reporting, providing a modern,

scalable approach to security that solves labor shortages and reduces operating costs.

An Eager Market Awaits ROAMEO

Even before its full production launch, ROAMEO has generated substantial

interest across multiple sectors.

With confirmed pre-sales already in place and a growing sales pipeline of qualified opportunities, the

security industry is watching closely.

The global security robots’ market is projected to grow from $19.07

billion in 2024 to $76.67 billion by 2034, reflecting a CAGR of 14.93% xii .

Specifically, the autonomous patrolling robot segment is expected to expand from $157.4 million in 2023 to $438.3 million by 2033, at

a CAGR of 10.8% xiii .

Market Drivers

-Labor Cost Pressures:

Rising wages and labor shortages are prompting organizations to seek

automated security solutions.

-24/7 Surveillance Needs:

The demand for continuous monitoring in large facilities and public

spaces is increasing.

-Technological Advancements:

Improvements in AI, sensor technology, and mobility

are enhancing the capabilities of security robots.

xii DataIntelo, AI Gun Detection System Market Report

– Global Forecast 2023–2032, 2024

https://dataintelo.com/report/ai-gun-detection-system-market

xiii Verified Market Research , Commercial Security

System Market Size and Forecast, 2024 Edition

https://www.verifiedmarketresearch.com/product/commercial-security-system-market/

Wheeled Robotic Platform for Tactical Support and Public Safety

RADDOG LE2 is a wheeled, four-legged robotic platform developed for

law enforcement and tactical applications.

It delivers remote visual and audio interaction, helping agencies operate in situations that

may be unsafe or inefficient for human officers.

Integrated with SARA, AITX’s Agentic AI platform, RADDOG can autonomously interact,

communicate, and assist officers with voice-driven commands, situational updates, and public engagement.

Primary Use Cases

· Law enforcement patrols and crowd engagement

· Tactical surveillance in high-risk environments

· Community events and public safety demonstrations

· Campus and municipal security support

Core Benefits

· Provides officers with safe, remote situational awareness

· Enhances public outreach with interactive engagement

· Operates in confined or hazardous spaces

· Adds a modern, high-tech layer to agency visibility

Market Impact

RADDOG is already active in police departments where it serves both

operational and community outreach roles.

From delivering situational intel to becoming a crowd favorite at events, RADDOG LE2 bridges

the gap between safety technology and public trust.

With SARA embedded, RADDOG enhances real-time communication and behavioral intelligence,

helping departments project both authority and approachability.

Its presence enhances department image while contributing to safer, smarter

Competitive Advantage

RADDOG LE2 is not a novelty robot.

It combines utility with approachability,

making it ideal for law enforcement agencies looking to modernize and humanize their security and public safety efforts.

interest from law enforcement and public safety leaders, RADDOG LE2 is quickly establishing itself as a symbol of forward-thinking policing.

The global robotic dog market was valued at $1.2 billion in 2023 and

is projected to reach $4.6 billion by 2031, growing at a CAGR of 7.1% from 2024 to 2031 xiv .

Market Drivers

-Public Safety and Law Enforcement:

Law enforcement agencies are exploring robotic dogs for search and

rescue missions, enhancing operational efficiency and officer safety.

Advancements in AI and Robotics:

Continuous improvements in artificial intelligence and sensor technologies

are enhancing the capabilities of robotic dogs, making them more adaptable and efficient for various applications.

Increased Demand for Security:

The need for reliable and autonomous security solutions in the public

sector is driving the adoption of robotic dogs for tasks like perimeter patrol, threat detection, and reconnaissance.

xiv Grand View Research , U.S.

Home Security

Camera Market Size, Share & Trends Analysis Report, 2024

https://www.grandviewresearch.com/industry-analysis/us-home-security-camera-market/

Humanoid Enforcement and Response Officer

HERO is a humanoid security robot currently under development by RAD-M.

Designed to operate in high-traffic environments, HERO combines autonomous movement, AI-driven engagement, and real-time incident response

into a single, commanding presence.

HERO will feature full integration with SARA, AITX’s Agentic AI platform, enabling advanced

situational awareness, interactive communication, and dynamic escalation in public-facing environments.

Primary Use Cases

· Retail centers and shopping malls

· Stadiums, arenas, and entertainment venues

· Airports, transit hubs, and public buildings

· Government and high-visibility corporate campuses

Core Benefits

· Provides highly visible deterrence in sensitive public areas

· Engages with the public using advanced conversational AI

· Integrates with RAD-Is broader security ecosystem

· Designed to monitor, interact, and escalate

Market Impact

Expected for release in late 2025, HERO has already generated significant

buzz among security professionals, law enforcement, and the public.

Its presence at trade shows and events signals AITX’s commitment

to leading the next evolution in autonomous security.

HERO is being engineered to address complex deployment scenarios where appearance,

mobility, and communication matter just as much as detection and response.

Competitive Advantage

HERO is more than a concept.

it is the embodiment of AITX’s long-term

No other security robot on the market offers a humanoid presence with conversational intelligence and autonomous patrol capabilities.

When launched, HERO is expected to redefine what physical security looks like in the modern world.

The global humanoid robot market was valued at $3.28 billion in 2024,

projected to reach $66.0 billion by 2032, growing at a CAGR of 45.5% xv .

Within this sector, humanoid security robots like HERO have emerged

as a strong niche segment, addressing the need for interactive, autonomous security solutions in various industries.

Market Drivers

-Labor Shortages and Rising Costs:

Increasing demand for automation in industries facing workforce constraints.

-Advancements in Robotics:

Enhanced capabilities in AI and sensor technologies are propelling

humanoid robot development.

-Demand for Interactive Security Solutions:

There’s a growing demand for security robots that can engage with individuals,

provide assistance, and respond dynamically to situations.

xv Fortune Business Insights, Humanoid Robots Market Size,

Share & Trends Report, 2032”

https://www.fortunebusinessinsights.com/humanoid-robots-market-110188

RAD Operations System Software

ROSS is RAD-I’s software platform that revitalizes legacy IP

security cameras by integrating them into an intelligent, AI-powered ecosystem.

It transforms passive devices into proactive security

tools with capabilities like object detection, license plate recognition, loitering alerts, and real-time response automation.

on ROSS’ side, these upgraded devices gain the ability to escalate alerts, communicate autonomously, and support voice-driven response

Primary Use Cases

· Upgrading legacy security camera infrastructure

· Integrating outdated systems with modern analytics

· Enabling intelligent threat detection across large facilities

· Reduces the need for costly hardware replacements

Core Benefits

· Adds RAD-level AI analytics to existing IP security cameras

· Enables real-time alerts via SMS or automated systems

· Supports escalating, customizable response workflows

· Connects to the broader RAD ecosystem for integration

Market Impact

ROSS allows organizations to maximize their current infrastructure

investment while elevating security performance.

It extends the life and relevance of installed cameras by equipping them with todays

most advanced AI tools.

For clients hesitant to replace entire camera networks, ROSS provides a smart, budget-conscious path to modernization.

Competitive Advantage

Where most analytics platforms require proprietary cameras or expensive

upgrades, ROSS works with what organizations already have.

It empowers traditional hardware with human detection, firearm recognition,

vehicle alerts, and more, all managed through RAD-I’s software platform.

ROSS brings modern capability to yesterday’s cameras.

The global AI in video surveillance market was valued at $3.90 billion

in 2024, projected to reach $12.46 billion by 2030, growing at a CAGR of 21.3% xvi .

Market Drivers

-Enhanced Public Safety and Security:

Growing concerns over public safety are leading to increased deployment

of intelligent surveillance systems.

-Advancements in AI:

Rapid developments in AI technologies are enhancing the capabilities

of video analytics, making them more accurate and efficient.

-Cost-Effective Surveillance Solutions:

AI analytics enable organizations to optimize existing camera infrastructures,

reducing the need for additional hardware investments.

xvi MarketsandMarkets, “ AI in Video

Surveillance Market by Offering, Deployment Type, Application, Vertical & Region – Global Forecast to 2030,” 2024

https://www.marketsandmarkets.com/Market-Reports/ai-in-video-surveillance-market-84216922.html

ROSA Accessory Module

RAM is a hardware module that transforms existing IP security cameras

into interactive, intelligent devices.

It adds voice capability, two-way audio, and real-time AI functionality, similar to a RAD-I ROSA

device, allowing legacy cameras to detect, speak, engage, and escalate without the need for full device replacement.

Integrated with SARA,

AITX’s Agentic AI platform, RAM enables context-aware responses, autonomous escalation, and voice-driven interaction from even the

most basic surveillance setups.

Primary Use Cases

· Enhancing passive cameras in retail or commercial properties

· Upgrading camera systems in schools, healthcare, or government facilities

· Extending the life of existing infrastructure with minimal installation

· Adding SARA-powered interaction to areas not suitable for RAD-I devices

Market Impact

RAM opens the door to RAD-I’s advanced capabilities for clients

with large investments in traditional surveillance.

Instead of ripping out existing hardware, RAM enhances what’s already in place.

This dramatically reduces upgrade costs while delivering a serious boost in functionality.

With SARA onboard, RAM makes it possible to

bring agentic behavior and intelligent engagement to previously passive systems.

It provides a low-friction entry point into fully autonomous,

interactive security.

Competitive Advantage

No other device offers this combination of plug-and-play simplicity,

AI intelligence, and voice engagement.

RAM gives existing security cameras the power to act, not just watch.

It’s the most direct

path to upgrading security infrastructure without overhauling entire systems.

The AI in video surveillance market in the U.S.

was valued at $3.90

billion in 2024 and is expected to reach $12.46 billion by 2030, with a CAGR of 21.3% xvii .

Market Drivers

-Cost-Effective Upgrades :

Organizations seek to enhance existing surveillance systems without

the expense of complete overhauls, making inline devices like RAM appealing.

-Integration with Legacy Systems:

The ability to retrofit current infrastructure with advanced analytics

capabilities addresses budget constraints and extends the life of existing equipment.

-Edge Computing:

Processing data closer to the source reduces latency and bandwidth

usage, enabling real-time analytics and quicker response times.

xvii MarketsandMarkets, AI in Video Surveillance

Market by Offering (Hardware, Software, Services), Deployment Type (On-premises, Cloud), Application (Intrusion Management, Facial Recognition,

License Plate Recognition), Vertical and Region – Global Forecast to 2030, April 2024

https://www.marketsandmarkets.com/Market-Reports/ai-in-video-surveillance-market-84216922.html

Firearm Detection Analytic

AI-Powered Threat Detection for Visible Firearms

AITX’s Firearm Detection is an AI-based analytic that identifies

visible handguns and long guns in real time.

Integrated into select RAD-I devices and available via ROSS, it enables immediate response

and alert escalation the moment a threat is recognized.

With SARA, AITX’s Agentic AI platform, firearm detection becomes more than

identification, it becomes action.

SARA can escalate alerts, notify local security, contact administrators, and initiate outreach to first

responders within moments of detection.

Primary Use Cases

· School campuses and educational facilities

· Hospitals and healthcare centers

· Government and municipal buildings

· Retail environments and public gathering spaces

Market Impact

With growing concern regarding active shooter incidents and visible

weapons in public spaces, AITX’s Firearm Detection provides a proactive layer of defense.

By turning cameras and devices into intelligent

sentries, organizations gain precious seconds that can prevent tragedy or reduce harm.

In an unfolding active shooter incident, every

second counts.

The Company’s Firearm Detection analytic is meant to provide schools, first responders, administrators, educators,

employers, students, and other personnel those precious seconds.

This technology enhances safety protocols without requiring major infrastructure

In recognition of its impact, AITX’s Firearm Detection technology was honored with the American Security Today ASTORS Award

automates visitor management and front-desk functions at credentialed pedestrian access points.

TOM is deployed across corporate campuses,

multi-tenant commercial facilities, government buildings, and educational institutions.

One of the world’s largest third-party

logistics providers uses TOM to manage visitor intake across its North American distribution network.

and RAM™ (Camera Augmentation Software and Hardware)

is a software platform that adds AI-driven analytics, escalation workflows, and SARA-enabled response to existing third-party IP security

RAM is a complementary hardware module that adds two-way audio, voice interaction, and ROSA-equivalent SARA functionality to

third-party cameras.

ROSS and RAM enable customers to modernize their existing camera infrastructure without full hardware replacement

and provide a low-friction path to broader RAD ecosystem adoption.

Detection Analytic

Company’s firearm detection analytic identifies visible handguns and long guns in real time and is available across RAD-I devices

and through the ROSS platform.

When integrated with SARA, the analytic produces autonomous escalation, voice intervention, administrator

notification, and first-responder outreach within seconds of detection.

The analytic received the American Security Today ASTORS award

for Best Metal/Weapons Detection Solution.

Competitive Advantage

Unlike some systems that rely on concealed weapon prediction or extensive

human monitoring, the Company’s Firearm Detection focuses on clear, visible threats and reacts instantly.

Integrated across RAD-I’s

device lineup and analytics platform, it is a scalable and proven solution that adds meaningful value to modern security strategies.

SARA delivering intelligent escalation and voice-driven guidance, AITX offers a real-time response capability no others can match.

The global AI gun detection system market is projected to grow from

$1.2 billion in 2023 to $4.6 billion by 2032, reflecting a CAGR of 16.2% over the forecast period xviii .

Market Drivers

-Rising Public Safety Concerns:

An uptick in gun-related incidents globally has heightened the demand

for proactive security solutions that can detect firearms before any harm occurs.

-Integration with Existing Infrastructure:

AI gun detection systems can be seamlessly integrated with current

surveillance systems.

-Technological Advancements:

Continuous improvements in AI, machine learning, and sensor technologies

have enhanced the accuracy and reliability of gun detection systems, making them more effective in various environments.

xviii DataIntelo, AI Gun Detection System Market Report

– Global Forecast 2023–2032, 2024

https://dataintelo.com/report/ai-gun-detection-system-market

Significant Market Opportunity

The global security industry is undergoing rapid transformation, and

AITX is positioned squarely at its center.

According to Verified Market Research, the global commercial security

system market is projected to reach $376 billion by 2028 xix ,

driven by increasing demand for automation, efficiency, and real-time responsiveness.

On the residential side, the U.S.

home security

camera market alone is valued at over $7.8 billion, with millions of households seeking smarter, more proactive protection xx .

What’s fueling this growth is a widespread industry shift.

security models that rely heavily on human guards are being reevaluated.

Labor shortages, rising costs, and limitations in response time

are pushing organizations to adopt AI-driven, autonomous solutions.

Businesses, institutions, and homeowners are no longer satisfied with

passive monitoring.

They want proactive systems that can detect, communicate, deter, and escalate without delay.

AITX addresses this need with a comprehensive suite of solutions that

serve both the commercial and residential markets.

From large-scale enterprise deployments to home security, the Company’s devices

and platforms offer intelligent response capabilities at a fraction of the cost of manned security.

With the launch of RADCam and the rapid adoption of solutions like

ROAMEO, RIO, AVA, and ROSA across verticals including healthcare, education, logistics, and retail, AITX is tapping into multiple high-growth

opportunities simultaneously.

This diverse positioning ensures that the Company is not only riding the wave of market change but helping

Projected size of the global commercial security system market by 2028

Verified Market Research

Current size of the U.S.

home security camera market

Grand View Research

175%+ Revenue Growth

AITX’s fiscal year 2025 growth compared to prior year

AITX, April 2025

Labor Shortages & Costs

Driving organizations toward autonomous, AI-powered solutions

Competitive Landscape

Redefining Security, Not Just Competing

The security industry is saturated with outdated approaches.

guard services depend on costly, inconsistent human labor.

Traditional camera manufacturers sell passive hardware with limited intelligence.

Many AI startups promise innovation, but most offer software-only solutions without the infrastructure to deploy them effectively.

AITX breaks from these models.

The Company delivers a fully integrated

ecosystem that combines proprietary hardware, software, AI analytics, and voice engagement into unified, field-ready solutions.

From ROAMEO to RADCam, AITX controls its product lifecycle, enabling

unmatched speed to market and deployment scale.

With nearly one thousand devices deployed and recurring revenue on

the rise, AITX is executing today what others promise for tomorrow:

xix Verified Market Research , Commercial Security

System Market Size and Forecast, 2024 Edition

https://www.verifiedmarketresearch.com/product/commercial-security-system-market/

xx Grand View Research , U.S.

Home Security Camera

Market Size, Share & Trends Analysis Report, 2024

https://www.grandviewresearch.com/industry-analysis/us-home-security-camera-market/

-An Integrated Model

Hardware, software, and AI, all in-house

-Multi-Segment Reach

Serving residential, commercial, and enterprise clients

-Voice Engagement

Real-time deterrence, not just passive recording

-No VC Dependence

Grown without SPACs or institutional capital

-Speed to Market

Weeks, not quarters, from concept to deployment

The AITX Business Model

Recurring Revenue Engine

Subscription-based model that scales with deployment

Multi-Segment Subsidiary Strategy

RAD-I (Enterprise), RAD-M (Mobile), RAD-G (Tech Dev), RAD-R (Residential)

In-House Control = Margin Growth

Manufacturing, software, and deployment fully managed internally

Dealer and Channel Distribution

Expanding reach through trusted networks

Flexible Deployments

Customizable subscriptions for varied security needs

AI-Powered Value

Proactive, intelligent solutions replace outdated systems

Margin efficiency grows with every new deployment

AITX delivers automation-first security solutions through a vertically

integrated platform of hardware, software, and AI.

AITX’s Technology Advantage

Proven AI, Autonomous Devices, Real-Time Results

AITX’s platform replaces outdated surveillance with real-time

intelligence.

Its proprietary AI and autonomous devices are already deployed in the field, delivering measurable results.

SARA at the Core

Voice-driven AI engine powering real-time detection, deterrence, engagement,

and escalation

Vertically Integrated Stack

Hardware, software, and firmware developed in-house for speed and precision

Autonomous Mobility

ROAMEO, RADDOG and HERO can effectively patrol large areas without

human involvement

Deployments at Scale

Used in enterprise, healthcare, logistics, retail, construction and

residential environments

AITX is not theorizing what security could be - it is delivering what

others have not.

AITX Subsidiaries

AITX owns and operates five (5) wholly-owned subsidiaries.

Robotic Assistance Devices, Inc.

● AI-driven security solutions

● Autonomous deterrence and response

● Delivery of industry-leading Agentic AI, aka SARA

● Trusted across retail, logistics, education, and more

● www.radsecurity.com

Robotic Assistance Devices, Group (RAD-G)

● Agentic AI development and distribution to OEMs

● OEM and custom AI security technology

● Licensing AI-driven security solutions

● RAD Lanka (Sri Lanka development office)

● www.radgroup.ai

Robotic Assistance Devices, Residential (RAD-R)

● AI-powered security solutions for residential markets

● Agentic AI integration through ‘SOS’ features

● Bringing enterprise-level security automation to residential users

● Enhancing safety through intelligent monitoring and response

● www.radresidential.ai

Robotic Assistance Devices, Mobile (RAD-M)

● Mobile security, delivery, all-purpose solutions

● Agentic AI driven solutions

● Solar-powered, 5G-connected deployments

● No infrastructure required, deployable anywhere

Robotic Assistance Devices Lanka (PVT) Ltd.

(RAD L ) is a wholly owned subsidiary of RAD G incorporated in Sri Lanka.

This Company was setup to take advantage a cost effective, educated workforce and tax savings.

AITX’ main website is aitx.ai.

investor information can be found at this site and it is updated regularly.

Stationary Solutions

Company expects to introduce additional stationary solutions during fiscal year 2027.

These products are in active development and are

intended to expand RAD-I’s coverage of indoor environments, specialized vertical markets, and high-volume credentialed-access workflows.

The Company will provide additional disclosure regarding specific forthcoming products through press releases and subsequent periodic

filings as they progress to commercial release.

Mobile Autonomous Solutions

Assistance Devices Mobile, Inc.

(“RAD-M”) operates the Company’s mobile autonomous platform business.

second of the Company’s three primary sales avenues and is the principal area in which the Company has invested development capital

over the past several fiscal years.

(Rugged Observation Assistance Mobile Electronic Officer)

is a fully autonomous, outdoor mobile security vehicle designed to conduct routine patrol operations across corporate campuses, distribution

yards, parking facilities, educational and healthcare campuses, municipal parks, and similar large outdoor environments.

ROAMEO operates

without on-site human pilots, relying on the Company’s autonomous navigation stack, on-board sensor suite, cellular and 5G connectivity,

and full integration with the SARA agentic AI platform.

ROAMEO is designed to detect, assess, communicate, escalate, and report autonomously,

and to replace or substantially reduce the cost of mobile guard patrols conducted in vehicles or on foot.

Investment and Deployment Status

estimates that the Company has spent approximately $20 million in the cumulative development of the ROAMEO platform across fiscal years

preceding the fiscal year covered by this report.

This estimate includes cash research and development expenditures, engineering costs,

allocated executive and indirect labor, and other indirect costs reasonably attributable to the ROAMEO program.

The Company does not

separately report segment-level research and development on this basis in its audited consolidated financial statements;

the $20 million

figure reflects management’s internal allocation and view and is provided here to give investors a directionally accurate sense

of the scale of investment that has been made.

the additional engineering, manufacturing, and integration work conducted during the fiscal year ended February 28, 2026, the Company

commenced commercial deployment and recurring billing on two ROAMEO units in May 2026.

Initial deployments are at two enterprise customer

a major logistics operator (previously disclosed by press release) and a healthcare group.

The Company has additional pre-sold

units in its order pipeline and is actively expanding its ROAMEO production capacity to meet demand.

Financial Expectations

has significant expectations for the RAD-M business.

Each ROAMEO deployment is structured as a recurring monthly subscription at a substantially

higher monthly price point than the Company’s stationary products, and the addressable market for outdoor autonomous patrol is

large relative to the Company’s current revenue base .

Management expects that, based on the current sales pipeline and assuming

successful execution of the ROAMEO production ramp, RAD-M will surpass RAD-I’s monthly recurring revenue contribution at some point

as management believes the mobile business has a higher revenue ceiling than stationary solutions.

This is a forward-looking statement;

actual results may differ materially, and the timing and magnitude of RAD-M’s revenue contribution will depend on a range of factors

including production capacity, customer adoption, and the operational performance of deployed units.

See “Cautionary Statement

Regarding Forward-Looking Information” at the front of this report.

Agentic AI and Platform Partnerships

Assistance Devices Group, Inc.

(“RAD-G”) operates the Company’s agentic AI development and platform business.

holds, develops, and commercializes the SARA platform and related AI assets, and is the operating home of the Company’s partnership

and ecosystem strategy.

RAD Lanka, the Company’s Sri Lanka subsidiary, operates as a wholly owned subsidiary of RAD-G.

(Speaking Autonomous Responsive Agent)

is the Company’s proprietary agentic AI platform.

SARA combines large language model architecture, situational logic, voice interaction,

and autonomous action to enable RAD devices—and, increasingly, third-party devices and platforms—to engage with and respond

to security situations in real time.

SARA is embedded in substantially all of the Company’s deployed devices and is the foundational

asset around which RAD-G’s commercial activity is organized.

received Judges’ Choice and Best in Threat Detection and Response Solutions honors in the Security Industry Association New Product

Showcase at ISC West 2025.

In 2026, SARA was again recognized at ISC West in connection with the Company’s integration partnership

with Immix, the leading central station monitoring software platform.

Partnership Strategy

Company’s long-term view is that the value of an agentic AI platform in physical security is determined principally by the breadth

of devices, monitoring platforms, dealers, and end users with which it integrates.

RAD-G is therefore organized around expanding the

SARA ecosystem along five categories of relationship:

platforms and central stations.

The Company’s integration with Immix, announced and

recognized during fiscal 2026, is intended as a model for embedding SARA into the platforms

that already sit at the center of the remote video monitoring industry.

Management views

this category as the highest-leverage opportunity for SARA adoption.

● Third-party

hardware manufacturers.

SARA’s commercial value increases with every additional camera,

sensor, and access control device it can operate.

The Company is actively pursuing licensing

and integration arrangements with hardware vendors across the security industry.

and integrators.

As of the date of this report, the Company’s authorized dealer network

has grown to over one hundred dealers across the United States, Canada, and the European

The dealer channel is one of the Company’s primary growth engines, and RAD-G

supports the channel with SARA-enabled product positioning and joint sales materials.

and Fortune 500 end users.

The Company’s existing enterprise customer base serves as

both a revenue base and a credibility base for SARA adoption.

Deepening relationships within

existing accounts and converting reference deployments into category-defining case studies

is a continuing priority.

regulatory, and policy stakeholders.

As AI-orchestrated security response becomes a more

substantial component of the physical security industry, insurance carriers, municipal regulators,

and standards bodies will increasingly shape the operating environment.

The Company participates

in industry policy efforts, including through Mr.

Reinharz’s role on the Board of the

Security Industry Association and his chairmanship of its Autonomous Working Group.

Sales Funnel and Expectations

based on it’s developing ‘SARA’ solution, has generated substantial industry interest and a relatively substantial

sales funnel.

The solution has won two Security Industry Association (SIA) awards and Steve Reinharz has been asked several times to

speak to various groups and industries about it.

This, combined with various partner relationships, incoming interest, outbound prospect

generation and other sales activities have created a substantial RAD G sales funnel in management’s view for an early-stage AI

platform business.

Management has high expectations for substantial revenue generation in this subsidiary.

This is a forward-looking

statement and actual results may differ materially.

Residential Solutions

Assistance Devices Residential, Inc.

(“RAD-R”) operates the Company’s residential security product business, principally

through the RADCam™ product line.

RADCam is an AI-powered, voice-enabled security camera designed for homeowners, property managers,

and small businesses, and is differentiated from typical residential security cameras by its real-time conversational engagement capability,

supported by SARA in an “SOS” configuration.

financial performance during fiscal 2026 was substantially below Company’s expectations.

The principal cause was the structural

difference between business-to-business (“B2B”) and business-to-consumer (“B2C”) go-to-market economics.

Company’s core operating expertise, sales channel, and customer acquisition model are built around B2B sale cycles.

The B2C residential

market requires a substantially higher level of consumer marketing spend than the Company was prepared to commit during fiscal 2026,

given competing capital priorities.

The business generated an immaterial amount to consolidated revenue.

Notwithstanding

the financial result, management continues to view RADCam as a superior product to comparable solutions available in the residential

security camera market.

The Company has no immediate plans to discontinue service to existing RADCam subscribers or to remove the product

RADCam continues to be available for purchase through radcam.ai, Amazon, and other retail outlets.

Company has modified the Residential software so that it can be deployed through RAD-I into the small-and-medium business and enterprise

markets and be compatible with RAD’s primary solution RADSoC™.

Channels, and Customers

Company sells through three principal channels:

direct enterprise sales, an authorized dealer network, and online retail (in the case

The direct enterprise sales team is led by a Senior Vice President of Sales with multiple direct reports and is supplemented

by the President of RAD and the Company’s Chief Executive Officer in larger and more strategic accounts.

The dealer network, which

has grown to over one hundred authorized dealers across the United States, Canada, and the European Union, addresses small and middle-market

accounts and provides geographic reach that direct enterprise sales cannot economically cover.

Company’s end-user base spans a broad cross-section of industries.

Sales pipeline and deployment activity during fiscal 2026 was

concentrated in logistics and distribution, healthcare, commercial real estate, manufacturing, retail, education, government, and residential

community markets.

has identified that the conversion rate of qualified sales opportunities to deployed clients—which historically lagged behind expectations—improved

during fiscal 2026, principally as a result of (i) the maturity of the Gen 4 hardware platform, (ii) the broader integration of SARA

across the portfolio, (iii) a growing set of reference deployments and case studies, and (iv) targeted investment in dealer enablement.

The Company continues to focus on this conversion rate as a primary operational metric.

Manufacturing

uses various domestic and overseas machine shops for raw material procurement and machining of the required plastic and metal pieces

that build RAD devices.

RAD’s sourcing has redundancy through use of multiple machine shops producing the same products for RAD.

In addition, all pieces within any RAD device can be procured from a choice of suppliers.

margins are based on current small batch production and assembly.

The Company expects that economies of scale will drive greater gross

margin as quantities and efficiencies increase.

has built a strong start-up culture based on performance, sacrifice, and rewards.

Attracting employees who can thrive in this environment

requires a different approach to corporate growth and development.

RAD’s governing philosophy centers around the principles of

“Emotional Intelligence.

Self-awareness, composure, internal motivation, empathy, and social skills are prerequisites for joining

the RAD team, and each candidate interview begins with a review of the foundational elements that comprise RAD culture.

members are open to multitasking and wearing multiple hats, as situations demand.

This allows management to focus on larger goals and

long-term strategies.

We try to ensure that our entire staff shares the same core beliefs and values as the Company, allowing us to adapt

and adjust quickly to changes that might grind other companies to a halt.

Members have been no stranger to the difficulties that face

a startup, including unexpected setbacks, delays in funding, or a cash crunch, but they have persevered with dedication and enthusiasm

for our greater mission.

They have met incredibly tight deadlines, volunteered to make financial sacrifices, and assisted wherever and

however they can.

believe that RAD’s high-EQ work culture creates productive, motivated employees that has allowed the Company to weather the difficult

period of robot deployments and our transition to 4 th generation solutions.

Company is focused on sequential product development while sales grow in order to get close to positive cash flow.

believes that its experience has shown that the security market is ripe for disruption.

It has captured the interest of many Fortune

500 companies.

The Company believes that no other company operating in the physical security space has the solutions, distribution channel,

reputation, sales or support model to rival RAD in the near term.

In addition, the Company expects that the launch of RAD’s mobile

solutions will significantly increase the gap between it and would-be competitors.

RAD will be a one-stop-shop for proven and comprehensive

mobile and stationary workflow improvement devices and systems.

technology model includes a “new paradigm” for the security industry:

Security in a Box.

Every RAD solution features connection

to the RAD Software Suite, a platform for AI processing, usage analytics, cloud-sided video, communications interface, audit logs, and

Acceptance of RAD Solutions

end-users include one Fortune Top 10 company and a number of other Fortune 500 companies.

RAD is currently deployed in logistics, commercial

real estate, healthcare, amusement, manufacturing and retail industries.

The Company believes that if RAD is ultimately deployed to only

5% of the facilities within any of these industries, the Company will be profitable.

Industry Leadership Role

Reinharz has earned a prominent role as a spokesperson for AI and change in the security industry.

He has lectured and participated in

several panels for some of the security industry’s largest events and organizations.

Reinharz chairs Security Industry Association’s

Autonomous Working Group committee, which is dedicated to helping shape the industry and support progressive legislation.

Most recently,

Reinharz provided a lecture to NYC’s ASIS CPP group that qualified as a continuing education credit.

March 2023 Steve Reinharz was elected to a Board seat for Security Industry Association, Inc (SIA).

SIA is the foremost security group

steering policy, lobbying various governments and promoting education within the security industry.

is expected that Mr.

Reinharz will continue his promotion of the new paradigm for the next few years until adoption is widespread.

As of March 7, 2025, we have a headcount of 116

fully dedicated full-time equivalents including sub-contractors.

None of our employees are represented by a union.

consider our employee relations to be excellent.

AITX’ principle shareholder owns a minority interest in the Canadian research

and develop company but has not received any compensation of any kind from that company to date.

Accomplishments

and its subsidiaries RAD I, RAD M, RAD G, and RAD R list of accomplishments highlights successes in adding to the strength of its executive

leadership team, expanding its sales and distribution channels, launching new products, while growing its presence, visibility and profile

within its existing marketplaces.

Milestones and accomplishments over the past 12 months include:

and data protection and compliance

The Company continues it’s focus on delivery

of safe and secure software and systems to its clients.

As such, this year, February 2025, the Company achieved SOC 2 Type 2 status.

status level required considerable work and continuous best practices by all elements of the company.

The SOC 2 Report has become a benchmark

standard, and now an often-specified requirement, in the software procurement process.

Established by the American Institute of Certified

Public Accountants (AICPA), criteria and reporting principles are outlined as a means for organizations to create a documented framework

of policies and procedures to prove how they manage and secure data in the cloud and ensure protection of customer privacy and ensure

internal communications are suitably handled.

This achievement reflects the Company’s stated goals of best-in-class data protection

and internal processes.

The Company has subsequently maintained SOC 2

Type 2 status and has achieved other cyber certifications.

The sales funnel continues to grow in both quantity

The sales team has matured and stabilized with a Senior Vice President of Sales with seven full time direct sales reports.

Additional sales drivers are RAD’s President as well as AITX’ CEO.

Furthermore operations team members are instrumental in

encouraging clients to expand existing systems.

the fiscal year ended February 28, 2025 RAD added hundreds sales opportunities to the sales funnel.

Furthermore several end users expanded

their RAD systems with commitments to continue expansion.

RAD’s dealer network also grew although the Company will note that dealer

performance has fallen short of expectations and is being addressed.

An opportunity is mostly defined as an account that is exhibiting

a pain that can be solved by RAD, has a budget, and has reached the point in the sales process where they have a quote they can sign.

has identified that conversion of accounts from opportunities to clients is improving and has identified some of the reasons for the

low conversion rate as well as new tactics to break through these obstacles.

Advanced new technology sales often involve multiple decision-makers

and require a skilled and passionate internal champion.

The security industry breeds risk-averse personnel.

The Company is pressing several

initiatives to change the industry to create an environment where trying new things in the norm as opposed to the exception.

of these efforts are the Security Industry Association’s (SIA) upcoming Town Hall where three Fortune 500 security practitioners

that have implemented new technologies will share their tips for successful internal selling.

AITX will be putting more emphasis on these

efforts this year.

a maturing hardware and software line up, an increasing number of deployments/case studies/success stories, management is excited for

the next year’s sales.

Management feels that ironing out technical and production challenges are well in hand and clearing the

way for a greater volume of deployments.

and Supply Chain

Company performs final assembly, system integration, software loading, and quality assurance for its hardware products at its facility

in Ferndale, Michigan.

Sub-component manufacturing, including machined metal and plastic components, printed circuit boards, and selected

sub-assemblies, is sourced from a network of domestic and international suppliers.

The Company works to, when reasonable, maintain redundant

suppliers for substantially all critical components and has structured its supply chain to mitigate concentration risk.

gross margins to date have been produced under small-batch production conditions.

Management expects margin expansion over time as production

volumes increase and as the Company captures economies of scale, particularly in connection with the ROAMEO production ramp and additional

stationary product introductions.

hardware designs, software, firmware, AI models, and supporting platforms used in the Company’s products are designed, developed,

and owned by the Company and its subsidiaries.

RAD-I owns the principal intellectual property associated with the Company’s stationary

product platform, including the RAD Service Organization Control (SoC) command and control software, the RAD Mobile SoC , the RADGuard

application, and the related operating architecture.

RAD-G owns the SARA platform and the underlying agentic AI assets.

RAD-M owns the

autonomous navigation, fleet management, and ROAMEO-specific platform technology.

Company relies on a combination of trade secret protection, confidentiality and invention-assignment agreements with employees and contractors,

The Company holds registered trademarks on its principal product

The Company does not currently rely materially on patent protection.

Company competes across three distinct but related markets:

traditional guard services and manned monitoring;

legacy passive security

hardware (cameras, access control devices, alarm systems);

and an emerging set of AI-driven security technology companies.

guard and monitoring service providers compete on price and incumbency but are structurally disadvantaged by labor cost inflation and

labor availability constraints.

Legacy hardware vendors compete on installed base and channel breadth but typically lack agentic AI capability

and recurring software economics.

AI-native security technology companies, including a small number of autonomous robotics competitors,

compete on technology positioning, but most lack the integrated hardware-plus-software-plus-AI delivery model that the Company has developed.

believes the Company’s principal competitive advantages are:

(i) the integration of proprietary hardware, software, and the SARA

agentic AI platform under common ownership and development;

(ii) a broad deployed installed base and the operational learning derived

(iii) a recurring-revenue business model that aligns the Company with customer success;

(iv) a growing dealer and integration

partner ecosystem;

and (v) the demonstrated ability to bring complex hardware products from concept to commercial deployment, as evidenced

by the ROAMEO program.

Capital and Culture

of the date of this report, the Company has approximately 135 team members across the United States, Canada, the United Kingdom, and

Asia, including Sri Lanka.

The Company’s Sri Lanka operations are conducted through RAD Lanka, which holds Port City Colombo special

economic zone status, providing tax efficiency and access to a cost-effective, educated technical workforce.

None of the Company’s

employees are represented by a union, and management considers employee relations to be excellent.

Company has built its culture around the principles of emotional intelligence, accountability, and ownership.

Self-awareness, composure,

internal motivation, empathy, and social skill are deliberately weighted in the hiring process.

Team members are expected to operate

with multidisciplinary capability and to adjust scope and focus as the business requires.

This culture is, in management’s view,

a meaningful operational asset:

it allows the Company to move faster than competitors of comparable size, to absorb the inevitable setbacks

of a hardware-and-AI development business, and to retain experienced team members through periods of capital constraint.

Company’s leadership team includes deep experience in security operations, robotics engineering, software development, artificial

intelligence, sales, and capital markets.

Reinharz serves on the Board of the Security Industry Association and chairs its Autonomous

Working Group, and is a frequent speaker and panelist at industry conferences including ISC West and GSX.

Cybersecurity

and Compliance

Company achieved SOC 2 Type 2 status in February 2025 and has maintained SOC 2 Type 2 through annual audits.

has also achieved additional cybersecurity certifications appropriate to its enterprise and government customer base.

SOC 2 Type 2 status

is a benchmark standard, and in many cases a procurement requirement, for enterprise and government software and security purchases,

and the Company’s achievement and maintenance of this status reflects management’s ongoing commitment to data protection

and operational integrity.

Additional disclosure regarding the Company’s cybersecurity program is provided under Item 1C of this

Company’s principal corporate website is www.aitx.ai.

Information regarding the Company’s subsidiaries and products is also

available at www.radsecurity.com (RAD-I), www.radm.ai (RAD-M), www.radgroup.ai (RAD-G), www.radresidential.ai (RAD-R), and www.radcam.ai

(RADCam consumer information).

The Company makes available, free of charge through its website and through the SEC’s EDGAR system

at www.sec.gov, its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those

reports, as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange

to the Company’s websites in this report are provided for convenience and information only;

the content of those websites is not

incorporated by reference into this report.

Announcements

5 unchanged sentences

AITX News - AITX - Artificial Intelligence Technology Solutions

Shows and Conferences

in previous years, RAD attended several large security industry events including ISC West, GSX, plus dozens of regional conferences with

the purpose of presenting the Company’s solutions to a buying audience and continually loading the sales pipeline with new opportunities.

RAD often utilizes the events for speaking engagements or panel discussions to propel the Company’s ‘thought leadership’

regarding its AI-powered security and safety solutions.

Points of Interest

fiscal year was significant for stabilization of technology, better understanding of the sales process and related challenges, positioning

as a true leader in the industry and the achievement of several high profile deployments.

The Company continues its focus on sales, efficiencies

with the goal of achieving positive cash flow within 18 months.

based on regular conversations with the Company’s largest debt holder, expects no issues regarding pushing out debt deadlines as

it has done so in years past.

Management confirms the support of this lender and notes the most recent non-convertible $ 4m loan facility.

reiterates that the plan continues to be to grow revenues, achieve positive cash flow, reduce debt and prepare for an uplist to Nasdaq.

Management estimates that with continued reasonable performance the company could obtain and maintain profitability while working to

pay down in preparation for Nasdaq uplist targeted for 2026.

Item 3 - Legal Proceedings.

to Item 305(e) of Regulation S-K (§ 229.305(e)), we are not required to provide the information required by this Item as it is a

“smaller reporting company,” as defined by Rule 229.10(f)(1).

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business