Knightscope(KSCP)2024-11-14 22:00Revenue Performance - Total revenue for the three months ended September 30, 2024, was $2.535 million, a decrease of 23.8% compared to $3.324 million for the same period in 2023[21]. - Service revenue for the three months ended September 30, 2024, was $1.861 million, down from $1.915 million in the same period last year, reflecting a decline of 2.8%[21]. - Product revenue decreased significantly to $674,000 for the three months ended September 30, 2024, compared to $1.409 million in the prior year, representing a decline of 52.1%[21]. - Total revenue for Q3 2024 decreased by approximately $0.8 million to $2.535 million, with service revenue at $1.861 million (73% of total) and product revenue at $0.674 million (27% of total)[143]. - Total revenue recognized from ASRs for the nine months ended September 30, 2024, was $1,324 million, with $1,211 million recognized at a point in time and $1,143 million recognized over time[76]. - Total revenue, net for the nine months ended September 30, 2024, was approximately $8.0 million, a decrease of approximately $1.8 million or 18% compared to the same period in the prior year[158]. Financial Losses - Gross loss for the three months ended September 30, 2024, was $(700,000), compared to a gross profit of $50,000 for the same period in 2023[21]. - Net loss for the three months ended September 30, 2024, was $(10.904 million), compared to a net loss of $(8.342 million) for the same period in 2023, indicating a deterioration of 30.6%[21]. - Net loss for the nine months ended September 30, 2024, was $24,767,000, compared to a net loss of $15,584,000 for the same period in 2023, representing a 58.8% increase in losses[31]. - Gross loss for the nine months ended September 30, 2024, was approximately $2.7 million, compared to a gross loss of approximately $0.2 million for the same period in 2023[164]. Operating Expenses - Total operating expenses increased to $7.041 million for the three months ended September 30, 2024, up from $6.533 million in the same period last year, marking an increase of 7.8%[21]. - Total operating expenses increased to $7.041 million (278% of total revenue) in Q3 2024, up from $6.533 million (197% of total revenue) in Q3 2023[142]. - Research and development expenses for the nine months ended September 30, 2024, were $414,000, compared to $274,000 in the prior year[96]. - Research and development expenses increased by approximately $0.2 million, or 4%, for the nine months ended September 30, 2024, primarily due to higher headcount[165]. - Sales and marketing expenses decreased by approximately 28% to $1.000 million, representing 39% of total revenue in Q3 2024[150]. - General and administrative expenses increased by approximately 31% to $4.238 million, representing 167% of total revenue in Q3 2024[151]. Cash and Assets - Cash and cash equivalents as of September 30, 2024, were $5.199 million, significantly up from $2.282 million as of December 31, 2023[19]. - Total current assets increased to $11.529 million as of September 30, 2024, compared to $8.213 million as of December 31, 2023, reflecting a growth of 40.5%[19]. - Cash and cash equivalents increased to $5,301,000 as of September 30, 2024, up from $4,711,000 at the end of September 2023[31]. - The company reported a net loss of approximately $24.8 million for the nine months ended September 30, 2024, leading to net cash used in operating activities of approximately $17.4 million[186][187]. Stock and Equity - Total stockholders' equity improved to $9.255 million as of September 30, 2024, compared to a deficit of $(26.634 million) as of December 31, 2023[19]. - The company executed a 1-for-50 reverse stock split of its common stock in September 2024, impacting share amounts[26]. - The company executed a reverse stock split of Class A and Class B Common Stock at a ratio of 1-for-50, effective September 13, 2024[64]. - The company issued 1,470,537 shares of Class A Common Stock under the at-the-market offering program, generating net proceeds of approximately $20.4 million during the nine months ended September 30, 2024[177]. Liabilities - Total liabilities as of September 30, 2024, were $15.667 million, slightly up from $15.405 million as of December 31, 2023[19]. - The company has outstanding obligations of approximately $1.8 million under the August 2024 Note as of November 13, 2024[183]. - The company’s total liabilities included warrant liabilities of $5,692 million for Series S Preferred Stock as of September 30, 2024[81]. Future Outlook and Financing - The company is dependent on additional fundraising to sustain ongoing operations, indicating a need for further capital within the next twelve months[37]. - The company is pursuing additional financing through equity and/or debt alternatives to meet its capital and operational needs[171]. - The company plans to seek additional funding, which may result in the dilution of existing stockholders' interests[171].