Financial Results Announcement - Cloudastructure, Inc. announced its financial results for the quarter ended March 31, 2025[5]. - The press release detailing the financial results was issued on May 15, 2025[5]. - No specific financial metrics or performance indicators were disclosed in the provided content[5]. - The document does not include any information on user data, future outlook, or new product developments[5]. Company Classification and Listing - The company is classified as an emerging growth company under the Securities Act[4]. - The trading symbol for Cloudastructure, Inc. is CSAI, listed on the Nasdaq Capital Market[3]. Corporate Information - The principal executive office is located at 228 Hamilton Road, Palo Alto, California[1]. - The report was signed by Greg Smitherman, Chief Financial Officer[13]. - The filing includes an interactive data file with embedded XBRL tags[8]. Financial Standards - The company has not elected to use the extended transition period for new financial accounting standards[4].

Core Insights - Cloudastructure, Inc. reported a significant revenue increase of 212% year-over-year for Q1 2025, reaching $0.7 million, marking a strong start as a publicly-traded company [10][12] - The company achieved a positive gross profit of $0.3 million, a notable improvement from a gross loss of $17 thousand in Q1 2024 [12] - Cloudastructure secured its largest contract in history within the luxury multifamily segment, indicating strong demand for its AI-driven surveillance solutions [3][4] Revenue Growth and Market Expansion - The demand for Cloudastructure's AI-driven surveillance and remote guarding platform accelerated, driven by rising crime rates and the need for proactive security measures [2][9] - The company expanded its reach into the affordable housing sector through a partnership to implement cloud surveillance services in high-density communities [4] - National property management firms increased their use of Cloudastructure's platform across luxury apartment portfolios, reflecting a trend towards intelligent surveillance systems [5] Innovation and Infrastructure - Cloudastructure transitioned its AI hosting operations to a renewable energy-powered data center, significantly reducing processing costs and enhancing compliance with energy regulations [6] - The launch of Alpha™, a solar-powered, AI-enabled mobile surveillance trailer, showcases the company's commitment to innovation in security solutions [7] Financial Performance - Cost of goods sold increased to $0.4 million, but the company benefited from a 30% reduction in hosting and data center bandwidth costs due to its infrastructure transition [11] - Despite a net loss of $2.5 million for the quarter, attributed to higher operating expenses, the company remains focused on sustainable growth and operational efficiency [12][13] Customer and Service Metrics - The company reported a 38% increase in the number of customer locations serviced and a 79% rise in cloud video surveillance subscriptions [18] - Remote guarding revenue surged by 164%, while hardware sales increased by 241%, indicating strong demand across various service offerings [18]

Revenue Growth - Total revenue increased by $501,148, or 212%, from $236,677 for the three months ended March 31, 2024, to $737,825 for the same period in 2025, driven by a 38% increase in locations using services[99]. - Cloud video surveillance subscriptions increased by 79%, remote guarding increased by 164%, hardware sales increased by 241%, and installation labor sales increased by 397% compared to the same period in 2024[99]. Expenses - Cost of goods sold increased by $154,242, or 61%, from $253,232 for the three months ended March 31, 2024, to $407,473 for the same period in 2025[103]. - General and administrative expenses increased by 114% for the three months ended March 31, 2025, primarily due to a one-time bonus of $323,000 paid to employees[107]. - Research and development expenses increased by 71% for the three months ended March 31, 2025, with payroll increasing by $237,000 due to a one-time bonus[108]. Net Loss - Net loss for the three months ended March 31, 2025, was $2.5 million, compared to a net loss of $1.7 million for the same period in 2024, representing a 46% increase in loss[111]. Cash Position - Cash and cash equivalents at the end of the period were $6.845 million for the three months ended March 31, 2025, compared to $(1.028) million for the same period in 2024[115]. - Net cash provided by financing activities was $9.4 million for the three months ended March 31, 2025, compared to approximately $0 for the same period in 2024[120]. - As of March 31, 2025, the company had approximately $6.9 million in cash and $6.8 million in working capital, expecting current cash to fund operations through at least Q1 2026[126]. Future Outlook - The company anticipates entering additional markets in 2025 and 2026, focusing on expanding its customer base in the property management space[89]. - The company expects to incur additional losses for the foreseeable future as it continues to expand and develop new products and services[125]. - The company has an accumulated deficit of approximately $43.4 million as of March 31, 2025, and expects to continue incurring operating losses and negative cash flows for the foreseeable future[128]. - The Series 2 Purchase Agreement and Equity Purchase Agreement may provide necessary funding for the next 12 months, but their execution is subject to conditions beyond the company's control[127]. Financial Management - The company has a planning and budgeting process to monitor operating cash requirements, including capital expenditures, general and administrative costs, and public company operating costs[129]. - Contractual obligations primarily relate to operating lease obligations, capital lease obligations, and insurance obligations, which are generally terminable after a notice period[130]. - The company does not have any long-term debt or significant long-term liabilities as of the reporting period[131]. Regulatory Status - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions[133]. - The company has elected to use an extended transition period for complying with new accounting standards, which may affect the comparability of its financial statements[134]. - The company is not required to provide certain disclosures related to executive compensation due to its status as an emerging growth company[138]. - The company evaluates its accounting estimates and assumptions on an ongoing basis, which may impact reported amounts of assets, liabilities, revenue, and expenses[140].

Core Insights - Cloudastructure, Inc. has secured its largest customer contract in history with a premier global real estate investment firm, marking a significant milestone in the company's growth trajectory [1][3] - The client is a leader in luxury multifamily development, and Cloudastructure will provide AI-powered surveillance solutions for a flagship Class-A high-rise property in Houston, Texas [2][3] - The agreement highlights the increasing demand for cloud-based, AI-driven surveillance solutions in the real estate sector, with Cloudastructure deploying a full suite of security solutions for 24/7 monitoring and real-time threat response [3][4] Company Overview - Cloudastructure is headquartered in Palo Alto, California, and offers a scalable cloud-based security platform featuring advanced AI/ML analytics and remote guarding solutions [5] - The company's platform allows for proactive, end-to-end security, with a value proposition that includes contract-free, month-to-month pricing and unlimited 24/7 support [5] - Cloudastructure claims to achieve up to a 75% lower Total Cost of Ownership compared to other systems, enhancing situational awareness and crime prevention [5] Industry Trends - The contract signifies a shift in the real estate industry's approach to physical security, moving from traditional CCTV and guards to scalable, AI-driven solutions [4] - There is rising investor confidence in AI-powered surveillance technologies, particularly among institutional owners managing Class A and B assets [4] - The deployment of intelligent surveillance is becoming critical in luxury real estate, reinforcing the importance of advanced security measures in high-end developments [2][4]

Core Insights - Cloudastructure, Inc. has partnered with a leader in affordable housing to enhance security in multifamily communities in Atlanta, marking the first phase of a nationwide security modernization initiative [1][5] - The affordable housing sector, with over 11 million renter households in the U.S., is under pressure to ensure safety and operational efficiency while managing limited resources [2] - Cloudastructure's AI Surveillance platform offers real-time detection and deterrence, achieving a 97% average deterrence rate since 2023, reducing reliance on on-site guards and liability claims [3] Company Overview - Cloudastructure's platform utilizes a scalable cloud-based architecture featuring AI/ML analytics and remote guarding solutions, enabling proactive security and a lower Total Cost of Ownership by up to 75% compared to other systems [6] - The company aims to address the underserved affordable housing market within the $3.5 trillion U.S. multifamily industry, presenting opportunities for PropTech solutions that enhance security and operational efficiency [5]

Core Insights - Cloudastructure, Inc. has achieved significant recognition in the 2025 American Business Awards, with CEO James McCormick awarded the Silver Stevie for Maverick of the Year and the senior leadership team receiving the Gold Stevie for Achievement in Management [1][2][3] Company Achievements - The company has demonstrated impressive growth metrics, including 183% sales growth, a 75% reduction in costs, and raising $6.3 million in capital [5] - Cloudastructure's leadership team has been praised for their resilience and strategic execution in overcoming challenges such as funding constraints and operational scale [5][4] Leadership Recognition - Judges highlighted McCormick's innovative and resilient leadership style, emphasizing his ability to guide the company through rapid growth and industry challenges [3][4] - The senior leadership team, including CFO Greg Smitherman, CRO Lauren O'Brien, and CTO Gregory Rayzman, was recognized for their collective efforts and outstanding results [1][4] Company Overview - Cloudastructure is headquartered in Palo Alto, California, and offers a cloud-based security platform that utilizes advanced AI/ML analytics for proactive security solutions [6] - The company's platform provides a lower Total Cost of Ownership, achieving up to 75% savings compared to other systems, while offering contract-free pricing and 24/7 support [7][6]

Core Insights - Cloudastructure, Inc. has secured an additional $3 million investment from an existing institutional investor through Series 2 Convertible Preferred Stock to support its expansion and advancement of AI-powered security solutions [1][3] - The Series 2 Convertible Preferred Stock was issued at a price of $1,000 per share, carrying a 9.5% annual preferred return and is convertible into Class A common stock under specified terms [2] - This investment follows a successful $4.5 million raise last month, reinforcing the momentum generated after the company's direct listing on the Nasdaq Capital Market [3] Company Overview - Cloudastructure is a leading provider of cloud video surveillance solutions, utilizing AI and machine learning analytics for real-time monitoring and incident response [4][6] - The company's security solutions are applicable across various sectors, including commercial real estate, education, healthcare, and government, significantly improving security outcomes while reducing total cost of ownership [4][6] - Cloudastructure's platform offers a cost-effective model that eliminates proprietary hardware, provides contract-free month-to-month pricing, and includes unlimited 24/7 support, achieving up to a 75% lower Total Cost of Ownership compared to other systems [6]

Funding and Financial Performance - Cloudastructure raised over $35 million in funding in early 2021, enabling the establishment of a sales, marketing, and support structure, leading to contracts with five of the top 10 property management companies in the U.S.[20] - The company has incurred net losses of approximately $7.04 million and $11.4 million for the fiscal years ended December 31, 2023, and December 31, 2022, respectively, indicating a significant accumulated deficit[115] - The company anticipates sustaining operating losses for the foreseeable future as it expands its team and invests in research and development[116] - Substantial additional capital will be required to finance operations, and failure to raise such capital could delay or eliminate research and development programs[117] - The company may need to seek additional funding sooner than planned due to changing circumstances that could consume capital faster than anticipated[118] - For the fiscal year ended December 31, 2024, the company incurred a net loss of approximately $6,535,000 and had an accumulated deficit of approximately $40,856,000[124] - The company raised over $35 million in funding through an offering under Regulation A of the Securities Act and the sale of preferred stock since inception[125] - On January 29, 2025, the company closed a Series 1 Equity Financing, issuing $6,300,000 of Series 1 Convertible Preferred Stock[126] - The company has an Equity Purchase Agreement with Atlas Sciences, allowing for the purchase of up to $50,000,000 of Class A common stock over 24 months[127] - The Series 2 Equity Financing allows the company to issue up to $40,000,000 of Series 2 Convertible Preferred Stock, with an initial closing of $4,500,000 on March 25, 2025[128] - The company may face dilution of ownership interest if additional capital is raised through equity or convertible debt securities[122] - The company does not anticipate paying cash dividends on its Class A common stock in the foreseeable future, focusing instead on funding growth and operations[142] Market Potential and Growth - The global proptech market is projected to grow from $36.6 billion in 2024 to $89.93 billion by 2033, with a compounded annual growth rate of 11.9%, indicating significant market potential for Cloudastructure's services[56] - The worldwide AI market was estimated at $500 billion in 2023, growing at an annual rate of 19%, while the public cloud market was around $490 billion, growing at 20.7%, highlighting the favorable market conditions for Cloudastructure[54] - The company is focused on expanding into additional markets in 2025, aiming to enhance its customer base in the property management sector[20] - The video surveillance market is expected to grow significantly due to increased demand for security applications across various sectors, including government and healthcare[59] Product and Service Offerings - The company's Remote Guarding services deterred over 97% of all threatening activity for customers from 2023 to the date of the report, showcasing the effectiveness of their AI-driven security solutions[43] - Cloudastructure operates under a cloud services delivery model, pricing products and services on a per camera per year basis, which is expected to generate greater recurring revenue compared to competitors[52] - Cloudastructure's AI and machine learning capabilities allow for improved accuracy in surveillance, reducing false positives and negatives, which enhances overall service quality[45] - The company offers a Mobile Surveillance Trailer solution, a new product that is solar and battery-powered, connecting to their cloud services for enhanced security[32] - Cloudastructure is leveraging AI and machine learning to provide a centralized security system, addressing the growing market need[60] - The company has established contracts with five of the top 10 property management firms, aiming to standardize its AI security solutions across their portfolios[63] Customer and Market Relationships - For the year ended December 31, 2024, key customers included SunRoad Enterprises (18% of revenue), Fairfield Properties (9%), and Wingate (9%) among others[64] - Customer testimonials highlight the effectiveness of Cloudastructure's solutions, with significant improvements in security and crime prevention reported[65] - Major customers accounted for a significant portion of revenue, with SunRoad Enterprises at approximately 18%, Avenue 5 at approximately 11%, and Fairfield Residential at approximately 9% for the year ended December 31, 2024[132] - The company has a limited number of customers, which poses risks to revenue stability and bargaining power[132] Operational and Compliance Risks - The company is subject to evolving privacy and data protection laws, including the California Consumer Privacy Act and the California Privacy Rights Act, which may increase compliance costs[75] - The company does not hold any patents or trademarks but relies on confidentiality agreements and legal rights to protect its intellectual property[77] - The company faces risks related to data breaches, which could result in significant liabilities and harm its reputation, with potential costs including fines and litigation expenses[83] - Evolving privacy regulations, such as the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA), impose new operational requirements and could increase legal exposure for the company[84] - The company is highly dependent on attracting and retaining skilled personnel, with significant competition for experienced employees impacting its ability to execute its business plan[86] - The competitive landscape in the security industry is intense, with well-capitalized competitors holding a majority market share, which could adversely impact the company's market position[95] - The company relies on third-party suppliers for hardware and software solutions, and any failure by these suppliers to meet expectations could adversely affect its operations[99] - Compliance with privacy and data security laws may increase operational costs and delay the deployment of new products, potentially reducing demand for the company's services[90] Financial Condition and Capital Requirements - The company is developing complex technology that requires significant technical and regulatory expertise, and failure to successfully commercialize its products could adversely affect its financial condition[82] - Operating as a public company will incur increased costs and require substantial management time for compliance initiatives, impacting financial resources[104] - The company has implemented cybersecurity measures to protect sensitive data, but cannot guarantee complete security against future threats[162] - The company’s facilities are considered adequate for current and near-term needs, with the possibility of obtaining additional space if necessary[167] Revenue and Expense Trends - Total revenue increased approximately $757,000, or approximately 125%, from approximately $607,000 for the year ended December 31, 2023, to approximately $1,364,000 for the year ended December 31, 2024[194] - Cloud video surveillance subscriptions increased by approximately 48%, remote guarding increased by approximately 404%, and hardware increased by approximately 250% over the same period in 2023[194] - Cost of goods sold increased approximately $265,000, or approximately 36%, from approximately $725,000 for the year ended December 31, 2023, to approximately $990,000 for the year ended December 31, 2024[196] - Operating expenses decreased by approximately $2,029,000 or approximately 24%, from approximately $8,594,000 for the year ended December 31, 2023, to approximately $6,565,000 for the year ended December 31, 2024[198] - Non-cash expenses increased by approximately $571,000 or approximately 34%, from approximately $1,674,000 for the year ended December 31, 2023, to approximately $2,245,000 for the year ended December 31, 2024[199] - Net cash used in operating activities for the year ended December 31, 2024, was approximately $3,277,000, reflecting a net loss of $6,535,000[210] - Cash and cash equivalents at the end of the period for the year ended December 31, 2024, were $52,000, a significant decrease from $4,042,000 in 2023[208] - Net cash used in investing activities for the year ended December 31, 2024, was approximately $27,000, compared to $43,000 in 2023[212]

Table of Contents Registration No. 333-284717 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 2 to FORM S-1 REGISTRATION STATEMENT Under The Securities Act of 1933 Cloudastructure, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) Delaware 7370 87-0690564 (I.R.S. Employer Identification Number) 228 Hamilton Avenue, 3rd Floor Palo Alto, Califo ...

Table of Contents Registration No. 333-284717 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 1 to FORM S-1 REGISTRATION STATEMENT Under The Securities Act of 1933 Cloudastructure, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) Delaware 7370 87-0690564 (I.R.S. Employer Identification Number) 228 Hamilton Avenue, 3rd Floor Palo Alto, Califo ...