AITX - the OMVS reverse recapitalization - skip IPO process

Ever wonder why AITX has the whole weird PREFERRED STOCK structure it has ? -- Issuance of Stock: In exchange for the RAD equity, OMVS issued 3,350,000 shares of its Series E Preferred Stock and 2,450 shares of its Series F Convertible Preferred Stock-- to the sole owner of RAD. A TRUCKING COMPANY suddenly pivots to robotics, security, artificial intelligence \*\*\* just a bit odd , eh ? raises some eyebrows perhaps ? NEVER made a profit !!!! [https://www.securitysystemsnews.com/article/robotic-assistance-devices-acquired-omvs](https://www.securitysystemsnews.com/article/robotic-assistance-devices-acquired-omvs) What are you investing in - do you understand it, comprehend it, get it yet ? \--------------------------------------------------------------------------------------- A reverse transaction structure (or reverse recapitalization) is a complex accounting procedure, not a typical acquisition. The key financial operations involved in the On the Move Systems Corp. (OMVS) transaction with Robotic Assistance Devices (RAD) in August 2017 are as follows: The Transaction Mechanics Acquisition via Share Exchange: On the Move Systems Corp. legally acquired all the ownership and equity interest in RAD from its sole owner. Issuance of Stock: In exchange for the RAD equity, OMVS issued 3,350,000 shares of its Series E Preferred Stock and 2,450 shares of its Series F Convertible Preferred Stock to the sole owner of RAD. Disposal of Original Business: As part of the transaction’s consummation, substantially all of OMVS’s original transportation operations were disposed of. Change of Business Focus: Following the acquisition, the company’s entire business focus shifted to align with RAD’s mission of providing artificial intelligence and robotic solutions. Financial Accounting and Reporting Treatment : The primary financial operations were centered around the accounting treatment of this transaction, which is where it differs from a standard merger Accounting Acquirer: For financial reporting purposes, the transaction was treated as a reverse recapitalization (also known as a reverse merger). Even though OMVS was the legal acquirer, RAD was identified as the accounting acquirer because its former stockholders controlled the combined entity after the acquisition. Historical Financials Retained: Consequently, the financial statements for the combined company are essentially the historical operations of RAD, as if RAD had always been the reporting company. No Goodwill Recorded: A key financial result of this accounting treatment was that no goodwill or other intangible assets were recorded on the balance sheet as a result of the acquisition itself, which would typically be the case in a conventional business acquisition. This structure allowed the private AI company (RAD) to become a public company without the lengthy and expensive initial public offering (IPO) process, using the existing public shell of On the Move Systems Corp.