Tech Co.'s Software Upgrade Set To Revolutionize New Regulations for Climate Risk Management

Aisix Solutions Inc. (AISX:TSX.V; AISXF:OTCQB) intends to develop a complementary software suite to help entities meet the new International Financial Reporting Standards (IFRS) S1 and S2, pertaining to sustainability- and climate-related risks and opportunities, the company announced in a news release on February 8

"This approach is expected to significantly alleviate the administrative burden on companies, enabling them to provide stakeholders with insightful, actionable information on climate risks and opportunities," the release noted.

Features of the new tool will include data collection and integration from various sources, advanced analytics, customizable reporting templates, and continuous updates.

"Our technology aims to blend environmental responsibility and corporate reporting," Aisix Chief Executive Officer Mihalis Belantis said in the release.

At the Intersection of Climate Change and Data Transformation

Aisix Solutions leverages artificial intelligence (AI), data analytics, and real-time climate risk assessment in its software solutions, the company said. With these tools, individuals, businesses, and governments around the world can more easily manage their climate risk and ultimately protect their property and infrastructure.

Most recently, the British Columbia-based firm released a new product, "Wildfire 2.0: The Next Generation of Climate Risk Data Set for Canada," as announced in a February 1 news release.

"Climate risk digital solutions enable companies to plan for and protect against losses," media company Finextra reported. "They also help firms to demonstrate to insurers that they know their risk, which is valuable considering the rising cost of property insurance premiums, which are predicted to rise 22% by 2040."

Technical Analyst Clive Maund described Aisix as "an interesting company that is in accord with the 'zeitgeist' or spirit of the times because it is working on applying AI to climate and mitigating climate catastrophes." Of note, he added, is that most people believe in climate change and "governments, who can create endless money for the purpose, back it and spend heavily on it."

Aisix boasts a team of data scientists and specialists in AI, climate science, and capital markets, along with numerous partners, such as Natural Resources Canada, Simon Fraser University, and a consortium of European public and private entities including Germany's Federal Ministry for the Environment, according to its corporate presentation.

The tech company's intellectual property includes Climate Genius, its patent-pending AI tool providing climate risk assessments and mitigation strategies. Further, Aisix's technology is proven (as indicated by its many governmental clients) and award-winning.

Fastest Growing Sector

Investment in climate risk digital solutions around the world is surging, spurred by mounting financial losses entities are experiencing due to extreme weather, according to Verdantix, a research and advisory firm. Increasing regulation is another driver. As such, the demand for climate risk software like Aisix's is surging. Verdantix indicated in its "Market Size and Forecast: Climate Risk Digital Solutions 2021-2027 (Global)" report the sector is the fastest growing, Finextra reported.

Verdantix forecasts the market's value will reach US$4 billion (US$4B) in 2027, up 354% from US$880 million in 2021.

In addition to this business and government market, the total addressable consumer market in Canada, the U.S., and the European Union, Aisix said, is about US$9.2B.

The Catalysts: Expanded Products and Market Reach

Along with the debut of its new reporting-focused software suite, Aisix plans to develop additional analytics products that deliver deeper, more accurate risk assessments, according to its January 2024 State of the Company Update.

The company also intends to deploy a new enterprise-level user interface and experience to facilitate more personalized interactions with clients.

Other possible events on tap this year are expansion into additional sectors and into more markets.

Technical Analyst Maund recommended Aisix as a Strong Speculative Buy in October when it was trading at about CA$0.075 per share, a little higher than its current price. "Aisix is still in a bull market and is believed to be at a favorable buy spot," he wrote. 

This company is in a red hot sector, the data show, and is committed to growing its business and offerings this year, its management indicated.

Ownership and Share Structure

As for the ownership of Aisix, two insiders hold 12.08%, or 9.3 million (9.3M) shares, of the company. They are CEO and Director Belantis with 10.28% or 7.91M shares and Cofounder and Director David Poole with 1.8% or 1.39M shares.

Retail investors own the remaining shares as there are not any institutional owners.

In terms of structure, Aisix has 76.96M shares outstanding and 67.66M free float traded shares.

The firm's market cap is CA$3.14M, and its 52-week trading range is CA$0.02–0.13 per share.

Important Disclosures:

1. Aisix Solutions Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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