AITX Analysis – Operating Expenses and Scale

In this next article on AITX, I wanted to take a deeper dive into AITX’s income statement again. I have already written detailed articles, linked below, analyzing AITX and its competitor Knightscope down to gross profit. Today’s article will focus on AITX from gross profit through operating income. We’ll talk about operating expenses in general, … Read more

Micro-Cap Basics – Liquidity, the Liquidity Premium, and Trading an Illiquid Stock

A common feature of some, but not all, micro-cap stocks is low liquidity. This is extremely common for stocks not trading on a major exchange, such as the OTC or OTCQB. But what does low liquidity mean exactly? And how do investors deal with the liquidity premium in valuing a particular company? Liquidity – The … Read more

AITX Analysis – F Series and E Series Preferred Shares

(I corrected some mathematical and logical errors in this article on 12/12/2021, my conclusion is still the same and the difference between my two points is not material in my opinion) AITX, like many penny stocks, has a quite complicated ownership structure. In addition to more traditional ownership and investment stakes such as traditional debt, … Read more

Finance 101 – The Difference Between a Stock Buyback and a Cash Dividend

There are many misconceptions floating around the internet on stock buybacks and their implications. Presidents, congress, and political commentators have scorned them for years as corporate greed, corporate mismanagement, or just down-right immoral! But what exactly is a stock buyback? And how do they differ from a cash dividend? Let’s try and cut through the … Read more

Micro-Cap Basics – Using Comparable Multiples in Low-Growth, Profitable Companies

Occasionally as you’re flipping through the droves of companies on your screener, getting a migraine from seeing negative shareholder equity and negative 10,000% net margins, you find an easter egg. A profitable company in the wild! You flip over to Twitter and type in the ticker…nothing! Just a bunch of tweets from three months ago … Read more

Finance 101 – What are Preferred Shares?

A company has three general buckets of ownership stakes, traditional debt such as a loan, a preferred share, and common stock/equity. When a company is liquidated, each of the investment stakeholders have different priority rights to the remaining company assets. They are traditional debt, preferred shares, and then common equity in that order. Preferred Shares … Read more

AITX Analysis – IP and the Effect on Gross Margin Ft. Knightscope Part 2

Continuing from my previous post, we have now spoken in detail about KS, now we can move onto AITX. AITX – How do they Compare? See below AITX’s financials over (as close as the SEC allows me) the same period: Side-by-side with KS, we are seeing the same heavy losses operating margins. However, AITX is … Read more

AITX Analysis – IP and the Effect on Gross Margin Ft. Knightscope

Today’s article, to be broken down into a two posts due to size, are taking a deeper dive into three income statement line items: Net Revenue, COGS, and Gross Profit, and how they can be partially attributable to intangible property, or “IP”. All throughout AITX’s filings, as well as the CEO’s press, they only name … Read more