Knightscope(KSCP)2024-08-14 21:00Revenue Performance - Total revenue for the three months ended June 30, 2023, was $3,203,000, a decrease of 10.1% compared to $3,563,000 for the same period in 2022[16]. - Service revenue for the six months ended June 30, 2023, was $3,641,000, up from $3,573,000 in the same period last year, reflecting a growth of 1.9%[16]. - Total revenue for the three months ended June 30, 2024 decreased by approximately $0.4 million compared to the same period in the prior year, with Product revenue decreasing by approximately 28%[121]. - Service revenue, net for the three months ended June 30, 2024 increased approximately 7% compared to the same period in the prior year due to an increase in Service revenue related to the K1B installed base[121]. - Total revenue for the six months ended June 30, 2024, was $5.457 million, a decrease of approximately 15.5% from $6.460 million for the same period in the prior year[133]. - Service revenue increased by approximately $0.1 million or 2% to $3.641 million, while product revenue decreased by approximately $1.1 million or 37% to $1.816 million[134]. Profit and Loss - Gross profit for the three months ended June 30, 2023, was a loss of $558,000, compared to a profit of $9,000 for the same period in 2022[16]. - Net loss for the three months ended June 30, 2023, was $6,271,000, compared to a net loss of $4,798,000 for the same period in 2022, representing a 30.7% increase in losses[16]. - The gross loss for the three months ended June 30, 2024 was approximately $0.6 million, compared to a gross profit of $9 thousand for the same period in 2023[125]. - Gross loss for the six months ended June 30, 2024, was approximately $2.0 million, compared to a gross loss of approximately $0.2 million for the same period in the prior year[138]. Operating Expenses - Total operating expenses for the three months ended June 30, 2023, were $6,203,000, an increase of 4.2% from $5,954,000 in the prior year[16]. - Research and development expenses for the three months ended June 30, 2023, were $1,637,000, an increase of 10.5% from $1,482,000 in the prior year[16]. - Sales and marketing expenses for the three months ended June 30, 2023, were $1,537,000, up from $1,193,000, reflecting a growth of 28.8%[16]. - Research and development expenses increased by approximately $0.3 million or 11% to $3.206 million, representing 59% of total revenue[139]. - Sales and marketing expenses rose by approximately $0.7 million or 31% to $3.043 million, accounting for 56% of total revenue[140]. - General and administrative expenses decreased by approximately $0.5 million or approximately 8% to $6.375 million, representing 117% of total revenue[141]. Equity and Stockholder Information - As of June 30, 2023, total stockholders' deficit was $25,318, reflecting an increase from $43,586 as of December 31, 2022[18]. - The company reported a net equity of $4,676 million as of June 30, 2023, down from $4,818 million at the end of 2022[18]. - The cumulative deficit as of June 30, 2023, was $146,582, an increase from $139,340 at the end of 2022[18]. - The company converted 10,432,428 debt obligations to Class A common stock, enhancing its equity position[18]. - As of June 30, 2024, the company had total stockholders' equity of approximately $11.2 million[144]. - The Company’s total stockholders' equity was approximately $11.2 million as of June 30, 2024[144]. Cash Flow and Financing - The company experienced a net cash used in operating activities of $12,642,000 for the six months ended June 30, 2024, compared to $11,215,000 for the same period in 2023, indicating a 13% increase in cash outflow[24]. - Cash and cash equivalents at the end of the period were $2,726,000 as of June 30, 2024, down from $5,942,000 as of June 30, 2023, reflecting a decrease of approximately 54%[24]. - The company raised $12,089,000 from equity sales, net of issuance costs, during the six months ended June 30, 2024, compared to $14,236,000 in the same period of 2023, indicating a decrease of approximately 15%[24]. - Net cash used in operating activities was approximately $12.6 million for the six months ended June 30, 2024, an increase of approximately $1.4 million compared to the same period in the prior year[155]. - Net cash provided by financing activities was approximately $14.8 million for the six months ended June 30, 2024, an increase of approximately $0.3 million compared to the prior year[159]. - The company is actively seeking additional financing to meet its capital and operational needs, which may include equity and debt alternatives[144]. Compliance and Regulatory Issues - The Company received a delisting determination letter from Nasdaq due to non-compliance with the Minimum Bid Price Requirement, with trading suspension effective May 3, 2024[110]. - The Company received a temporary exception until October 4, 2024 to regain compliance with the Minimum Bid Price Requirement, contingent upon obtaining shareholder approval for a reverse stock split by August 16, 2024[111]. - The Automatic Conversion on May 15, 2024 resulted in the Company reflecting a positive stockholders' equity on its Condensed Balance Sheet, satisfying the Minimum Stockholders' Equity Requirement as of June 30, 2024[112]. Operational Changes - The Company streamlined its management structure and outsourced non-core business functions to improve operational efficiency[103]. - The Company consolidated its manufacturing operations from three facilities to one primary facility in Mountain View, California, to enhance process flow and reduce costs[104]. - The Company is focused on optimizing operations to achieve profitable growth while scaling its business to meet incoming demand[115].