Artificial Intelligence Technology Solutions Inc. 10-K

ITEM 1. BUSINESS Business Overview 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. Mr. 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. Mr. 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. Artificial 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 Corp. changed its name to Artificial Intelligence Technology Solutions Inc. (“AITX”). In 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 tasks. Since 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. RAD’s solutions are generally offered as a recurring monthly subscription, typically with a minimum 12-month subscription contract. RAD also 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. Steve 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. - 1 - Table of Contents 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 AI platform. 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.” Steve Reinharz, CEO/CTO, AITX Market Focus Targeting the global security and facility management markets as they approach $1 trillion in size according to Steve Reinharz. Proven Deployment Multiple revenue-generating products currently deployed across commercial and public sectors. Tech Advantage Agentic AI SARA and other AITX solutions enable real-time, autonomous engagement and decision-making. Real-World Validation AITX 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. Large Southeast Hospital Network “Our staff feels safer now that they’re protected by RAD Light My Way. There have been no serious incidents since the installation of the system.” — David Pope, Chief Operating Officer, Scotland Memorial Hospital Global Logistics Leader “By 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 Innovated RAD Channel Partner “With 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 Leading Electronics Distributor “AVA 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 RAD Authorized Dealer “RAD 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 Southern California Car Rental Location “Thanks 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 - 2 - Table of Contents 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 ROAMEO RADDOG HERO Access and Entry AVA TOM Stationary Solutions ROSA RIO RADCam RAM Software and Intelligence SARA Agentic AI ROSS Firearm Detection - 3 - Table of Contents SARA™ Speaking Autonomous Responsive Agent (Agentic AI) SARA is AITX’s Agentic AI, intelligent voice and decision-making platform. Powered by large language models, SARA gives RAD devices the ability to speak, listen, interpret, and take action based on real-time situations. 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. Market Size 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. It responds. AITX is at the forefront of this transformation, bringing real-world, field-proven Agentic AI to clients across commercial, public, and residential sectors. “Agentive 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.” Steve 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 - 4 - Table of Contents ROSA™ Responsive Observation Security Agent ROSA 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. Primary Use Cases · Perimeter and property protection · Firearm detection and response · Entry point monitoring · Loitering and trespassing deterrence Market Impact ROSA 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. Competitive Advantage ROSA 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. Market Size 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 . This 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/ - 5 - Table of Contents RIO™ 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. Market Size 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: The U.S. 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/ - 6 - Table of Contents AVA™ 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 points. AVA’s success has driven adoption of HOAP, the Homeowners Association Platform, a full-featured resident and guest access platform. Through HOAP, HOAs can issue digital passes, receive entry notifications, and manage visitor logs from any device. With SARA 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. Market Size 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 - 7 - Table of Contents TOM™ 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. Market Size 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 - 8 - Table of Contents RADCam™ 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. These new versions of RADCam are specifically configured to serve the unique needs of commercial properties, offices, storefronts, and large-scale deployments. 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.. Market Size 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 - 9 - Table of Contents ROAMEO™ 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 on the move. 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. Market Size 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/ - 10 - Table of Contents RADDOG™ LE2 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 operations. 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. With growing interest from law enforcement and public safety leaders, RADDOG LE2 is quickly establishing itself as a symbol of forward-thinking policing. Market Size 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/ - 11 - Table of Contents HERO™ 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 vision. 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. Market Size 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 - 12 - Table of Contents ROSS™ 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. With SARA on ROSS’ side, these upgraded devices gain the ability to escalate alerts, communicate autonomously, and support voice-driven response workflows. 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. Market Size 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 - 13 - Table of Contents RAM™ 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. Market Size 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 - 14 - Table of Contents 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 changes. In recognition of its impact, AITX’s Firearm Detection technology was honored with 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. With SARA delivering intelligent escalation and voice-driven guidance, AITX offers a real-time response capability no others can match. Market Size 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 - 15 - Table of Contents 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. Traditional 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 to drive it. $376 Billion Projected size of the global commercial security system market by 2028 Source: Verified Market Research $7.8 Billion Current size of the U.S. home security camera market Source: Grand View Research 175%+ Revenue Growth AITX’s fiscal year 2025 growth compared to prior year Source: 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. Legacy 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/ - 16 - Table of Contents -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 Profit Path Margin efficiency grows with every new deployment AITX delivers automation-first security solutions through a vertically integrated platform of hardware, software, and AI. - 17 - Table of Contents 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. 1. Robotic Assistance Devices, Inc. (RAD-I) ● 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 2. 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 3. 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 4. 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 www.radm.ai 5. 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. Company and investor information can be found at this site and it is updated regularly. - 18 - Table of Contents Manufacturing & Assembly RAD 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. RAD’s 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. Team and Culture AITX 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. Team 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. We 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. - 19 - Table of Contents The Company is focused on sequential product development while sales grow in order to get close to positive cash flow. Market Environment RAD 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. RAD’s 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 much more. Customer Acceptance of RAD Solutions RAD 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. RAD Industry Leadership Role Mr. 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. Mr. Reinharz chairs Security Industry Association’s Autonomous Working Group committee, which is dedicated to helping shape the industry and support progressive legislation. Most recently, Mr. Reinharz provided a lecture to NYC’s ASIS CPP group that qualified as a continuing education credit. In 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. It is expected that Mr. Reinharz will continue his promotion of the new paradigm for the next few years until adoption is widespread. - 20 - Table of Contents Employees 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. We 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 & Highlights AITX, 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: Cyber 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. This 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. Discussion on Sales The sales funnel continues to grow in both quantity and quality. 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. In 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. - 21 - Table of Contents Management 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. An example 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. Between 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. Press Announcements During the fiscal year, the Company issued over 100 press releases, the vast majority of them being sales announcements and new authorized dealers being signed. Public events, conferences, awards and new product announcements were also publicized via press releases. All Company press releases can be found here: AITX News - AITX - Artificial Intelligence Technology Solutions Trade Shows and Conferences As 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. Additional Points of Interest This 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. Management, 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. Management 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. Legal Proceedings See Item 3 - Legal Proceedings. - 22 - Table of Contents ITEM 1A. RISK FACTORS Pursuant 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).