Knightscope(US:KSCP)2025-11-12 22:17Revenue Performance - Total revenue for the three months ended September 30, 2025, increased by approximately $0.6 million to $3.131 million, primarily due to a $0.6 million increase in product revenue [144]. - Service revenue accounted for 61% of total revenue in Q3 2025, down from 73% in Q3 2024, while product revenue rose to 39% from 27% [143]. - Total revenue for the nine months ended September 30, 2025, increased by approximately $0.8 million to $8.8 million, driven by a $0.6 million increase in service revenue and a $0.2 million increase in product revenue [155]. Cost and Gross Loss - Total cost of revenue for Q3 2025 was $4.701 million, an increase of approximately $1.7 million compared to the prior year, driven by higher service and product costs [145]. - Gross loss for Q3 2025 was approximately $1.570 million, representing 50% of net revenue, compared to a gross loss of $0.506 million or 20% of net revenue in Q3 2024 [146]. - Total cost of revenue for the same period rose by approximately $1.5 million to $12.0 million, with service costs increasing by $0.8 million and product costs by $0.7 million [156]. - Gross loss for the nine months ended September 30, 2025, was approximately $3.2 million, representing a gross loss margin of 36%, up from 30% in the prior year [159]. Expenses - Research and development expenses surged by approximately 113% to $3.773 million in Q3 2025, reflecting the company's focus on advancing product innovation [147]. - Research and development expenses increased by approximately $3.0 million, or 61%, to $8.0 million, primarily due to investments in the next-generation K7 autonomous security robot platform [160]. - General and administrative expenses decreased by approximately 31% to $3.076 million in Q3 2025, primarily due to reductions in various operational costs [149]. - General and administrative expenses decreased by approximately $2.9 million, or 26%, to $8.0 million, mainly due to lower investor relations fees and third-party professional fees [162]. - Sales and marketing expenses decreased by approximately $0.6 million, or 15%, to $3.4 million, attributed to lower advertising and promotional costs [161]. Cash and Financing Activities - As of September 30, 2025, the company had cash and cash equivalents of approximately $20.4 million, a year-over-year increase of $15.2 million [132]. - As of September 30, 2025, the company had $20.4 million in cash and cash equivalents, up from $11.1 million at the end of 2024 [166]. - Net cash used in operating activities for the nine months ended September 30, 2025, was approximately $19.7 million, an increase of $2.4 million compared to the prior year [177]. - Net cash provided by financing activities was approximately $30.8 million for the nine months ended September 30, 2025, an increase of approximately $8.0 million compared to the same period of the prior year [181]. - Financing activities included net proceeds from the issuance of Class A Common Stock of approximately $31.2 million and net proceeds from a direct registration offering of approximately $1.4 million [181]. - Debt obligations repayments amounted to $1.9 million during the nine months ended September 30, 2025 [181]. - In the prior year period, net proceeds from the at-the-market agreement with Wainwright were approximately $20.4 million and Public Safety Infrastructure Bonds issuance was approximately $2.6 million [181]. Inventory and Backlog - The company recorded a non-cash inventory write-off of approximately $0.6 million during Q3 2025 as part of its transition to a new facility [137]. - The total backlog as of November 10, 2025, was approximately $2.8 million, with $2.3 million related to orders for emergency communication devices and $0.5 million for autonomous security robots [140]. Future Investments - The company is actively investing in a new, larger production facility in Sunnyvale, California, to enhance engineering, manufacturing, and client support efforts [133]. - The company anticipates continuing significant capital investments to support growth, including new product development across ASRs and ECDs [167].