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Knightscope, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $2,535,000 from $3,324,000 in the same quarter the previous year. The decrease is attributed to lower sales of Emergency Communication Devices (ECDs) due to production disruptions.
Cost of revenue for the quarter was $3,235,000, representing 128% of sales, compared to 98% in the same quarter of the previous year. This increase in cost ratio is due to higher third-party field service costs.
The company reported a gross loss of $700,000 for the quarter, compared to a gross profit of $50,000 in the previous year, with the decline attributed to increased service costs.
Research and development expenses decreased to $1,770,000 from $1,903,000, primarily due to lower compensation and material expenses.
Sales and marketing expenses decreased to $1,000,000 from $1,395,000, primarily due to lower advertising and promotional costs.
General and administrative expenses increased to $4,238,000 from $3,235,000, primarily due to higher investor relations costs and third-party professional fees.
Net loss for the quarter was $10,904,000, compared to $8,342,000 in the previous year. The increase in net loss is attributed to higher general and administrative expenses and a change in the fair value of warrant and derivative liabilities.
Cash used in operating activities was $17,377,000, while cash used in investing activities was $2,480,000. Cash provided by financing activities was $22,776,000.
Knightscope had cash and cash equivalents of $5,199,000 as of September 30, 2024. The company acknowledges its dependence on additional fundraising to sustain ongoing operations.
The filing also details various financial agreements, including a senior secured promissory note issued in August 2024 and the issuance of Public Safety Infrastructure Bonds.
Knightscope continues to focus on scaling its business and implementing strategies to decrease gross margin loss over time, including outsourcing field services and optimizing production processes.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Knightscope Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.