Frequency Holdings is trying to convert six months of custom AI work inside customer environments into standardized products it can sell through its managed service provider business and future MSP acquisitions.
The OTC-traded holding company, listed as FRQN and FRQND, said its wholly owned subsidiary ReachOut Digital Intelligence has been building, testing and refining AI-based services with customers. The work has centered on finding places where software agents and automation can reduce manual tasks, connect information across business systems and support faster decisions.
That puts Frequency in a familiar but messy corner of the AI market. Many small and midsize businesses already have MSPs handling endpoints, networks, cloud tools, help desk tickets and security controls. Frequency wants to add a managed layer for AI agents that can operate across those existing systems, rather than leave customers to bolt another chatbot onto the stack and hope permissions, logging and compliance sort themselves out.
CEO Rick Jordan framed the shift as a move away from MSPs leading with device support and ticket queues. He said agentic AI adoption is below 10% and argued that providers that fail to evolve will lose relevance. That adoption figure and market view are Jordan’s claims, not reported operating results.
The technical pitch is that ReachOut will help customers identify an AI use case, build or select an agent, connect it to existing software, set rules for data access, monitor its actions and tune it over time. Frequency listed early work in AI knowledge tools, business process automation, communications systems and agents that can complete multi-step workflows across several software platforms.
Cybersecurity sits at the center of the plan because agentic systems can read data, make decisions and take actions. That requires access controls, audit trails, policies around sensitive information and some way to prove the workflow fits legal or compliance obligations. Jordan said ReachOut will keep providing cybersecurity, compliance support and managed technology services as the base layer before adding AI.
The company is still in the early commercialization stage. Over the next six to twelve months, Frequency plans to refine deployments, measure outcomes, create recurring product packages and test pricing models. Those models could include monthly fees per managed AI agent, monthly fees per automated process, usage-based pricing or pricing linked to measurable business results, according to the company.
The acquisition strategy follows the same logic. Frequency said it still intends to evaluate smaller MSP deals and larger leveraged transactions when financing and terms make sense. An acquired MSP could bring customer relationships, recurring revenue and access to existing technology environments where Frequency can introduce cybersecurity, compliance and managed intelligence services for MSP customers.
That strategy depends on turning bespoke deployments into repeatable offerings. Custom workflow automation can work well in one customer’s stack and fail to transfer cleanly to another because software permissions, data quality, business rules and compliance requirements vary. Frequency’s stated bet is that enough of those patterns can be standardized into products with recurring revenue.
The company also confirmed that a 1-for-500 reverse split of its common stock became effective on July 9 after FINRA processing.
Frequency said it plans to use Jordan’s media platform, along with board members Kevin Harrington and David Meltzer, to publish content about agentic AI, AI governance, cybersecurity, business automation and the MSP industry. It also expects to release a report in the coming weeks on the shift from traditional managed services to managed intelligence.
