3MotionAI Files NOI, Launches Court-Supervised Sale Process

3MotionAI Inc., an Oakville-based artificial intelligence and motion analytics company, filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act on September 3, 2025, seeking to restructure through a sale and investment solicitation process (SISP) overseen by TDB Restructuring Limited as Proposal Trustee.

Founded by Reed Hanoun, 3Motion develops proprietary software platforms that capture and analyze human movement using its 3DNeuroNet Engine. The company’s six product lines target workplace safety, physical therapy, sports performance, and ergonomics applications, serving both enterprise and health-tech clients. Its intellectual property portfolio includes patents, trademarks, and proprietary code.

As of August 25, 2025, the company reported approximately $4.3 million in unsecured claims, primarily from investors under Simple Agreements for Future Equity (SAFEs). It is also exposed to two major legal actions: a $387,000 arbitration award in favour of Accentiko Inc. in Ontario and a pending Delaware lawsuit brought by VelocityEHS, claiming up to US $5.4 million in damages.

3Motion attributes its liquidity crisis to the high cost and uncertainty of the US proceedings, which hindered new investment and led to the withdrawal of a US $3 million equity financing commitment in August 2025.

On September 30, 2025, the Ontario Superior Court (Commercial List) granted several orders expanding the Trustee’s powers, authorizing TDB Restructuring to independently administer the SISP without management involvement. Meanwhile, CEO Reed Hanoun was terminated as an employee and rehired as a consultant to assist with restructuring and the SISP. He may also support arm’s-length bidders and potentially participate in bids through West Tech Fitness Group Inc., the DIP lender. Chapter 15 recognition is also being sought.

TDB Restructuring Limited is the Proposal Trustee. Gardiner Roberts LLP represents 3Motion, and Barclay Damon LLP acts as U.S. counsel to the Trustee.