ScanTech AI partners with Creeksource to offer security tech via TIPS

ATLANTA - ScanTech AI Systems Inc. (NASDAQ:STAI) announced Tuesday it will offer its security screening technologies through The Interlocal Purchasing System (TIPS) via a contract with Creeksource Consulting LLC. The micro-cap company, currently valued at $17.13 million, faces significant operational challenges according to InvestingPro data, with a concerning gross profit margin of 17.35% in the last twelve months.

The arrangement allows government entities, educational institutions, municipalities, and nonprofits to purchase ScanTech AI’s screening solutions through the TIPS national purchasing cooperative, potentially streamlining the procurement process for public sector clients. This development comes as the company reports trailing twelve-month revenue of just $0.54 million, with InvestingPro analysis indicating rapid cash burn and significant debt obligations.

"TIPS provides a trusted and efficient pathway for government clients to access advanced screening technologies," said Dolan Falconer, Chief Executive Officer of ScanTech AI, according to the company’s press release.

The collaboration gives ScanTech AI access to a market that includes more than 3,000 county courthouses, approximately 13,000 municipal courthouses, and thousands of additional municipal facilities across the United States. The company estimates this represents an addressable market of about $100 million. Investors should note that InvestingPro has identified 12 additional key factors affecting STAI’s investment outlook, available to subscribers.

ScanTech AI develops non-intrusive CT screening technologies that use artificial intelligence and machine learning to detect hazardous materials and contraband. The company’s systems are designed for use in security-sensitive locations such as airports, government buildings, and corporate headquarters.

The announcement comes as ScanTech AI seeks to expand its market presence in the government security sector. The TIPS contract arrangement may help position the company to deploy its screening systems more efficiently across government-operated facilities nationwide.

The information in this article is based on a press release statement from ScanTech AI Systems Inc.

In other recent news, ScanTech AI Systems Inc. has filed its delayed Quarterly Report on Form 10-Q for the quarter ending March 31, 2025, which is expected to resolve its noncompliance with Nasdaq Listing Rule 5250(c)(1). The company has also received a deficiency notice from Nasdaq for failing to maintain the minimum bid price requirement of $1.00 per share, which had been below the required threshold for 30 consecutive business days. Additionally, ScanTech AI faces another compliance issue, as it does not meet the Nasdaq Listing Rule 5450(b)(2)(A) regarding a minimum market value of $50 million, with a deadline to regain compliance by November 24, 2025.

On the business front, ScanTech AI has completed the delivery of its sixth Sentinel Fixed-Gantry CT system to a major North American nuclear energy provider, part of a $3.5 million contract. In a related development, the company signed a non-binding Letter of Intent with Visiontec Systems Ltd. for the planned purchase of additional SENTINEL Fixed Gantry CT inspection systems. The estimated value of these planned system deployments is expected to exceed $1 million. These recent developments highlight ScanTech AI’s ongoing efforts to enhance nuclear facility security and address compliance challenges.

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