Knightscope, Inc.
For the period ended Mar 31, 2026. Filed May 15, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 15, 2026
KSCP$0.47+14.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001104659-25-110518
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001104659-26-062505
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 96 previous paragraphs and 62 current paragraphs.
18 unchanged; 12 reworded; 31 added; 65 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 14 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
Knightscope, Inc. is a managed service provider building the nation's first Autonomous Security Force ("ASF") - a unified force that integrates autonomous machines, advanced software, and licensed security agents under a single managed service accountable for the security of the people, property, and places the Company protects.
Current report
The components of the ASF include Autonomous Security Robots ("ASRs"), comprising stationary and mobile platforms; Emergency Communication Devices ("ECDs"); and security services delivered by armed and unarmed licensed security agents, including executive protection, operating as Knightscope Security Force ("KSF" or "Security Force"), which was added through the acquisition of Event Risk, LLC in the three months ended March 31, 2026. These components are supported by real-time monitoring services delivered through the Company's cloud-based Knightscope Security Operations Center ("KSOC") for ASRs, Knightscope Emergency Management System ("KEMS") for ECDs, and Risk & Threat Exposure ("RTX") remote monitoring team.
Current report
The Company's solutions are designed, manufactured, and deployed in the United States and serve commercial and government clients. The Company generates revenue from a combination of subscription-based ASR services, ECD product sales and related recurring service contracts, and Security Force guarding and executive protection services.
Current report
As the acquired business has not been integrated, the CODM evaluates segment performance primarily based on revenue and gross margin and allocates resources based on consolidated operating results and liquidity considerations. The measure of segment assets is reported on the Condensed Consolidated Balance Sheets as total assets.
Current report
The Company expects the Security Force operations to become increasingly integrated within the Company’s broader service offerings and managed services platform over time.
Current report
Acquisition
Current report
On February 27, 2026 (the “Closing Date”), the Company entered into a Securities Purchase Agreement with Event Risk LLC, an Indiana limited liability company (“Event Risk”), and Eric Rose, pursuant to which the Company acquired all of the issued and outstanding membership interests of Event Risk (the “Acquired Interests”) for total purchase consideration of approximately $18.0 million (the “KSF Acquisition”). In accordance with ASC 805,Business Combinations, the Company used the acquisition method of accounting for this acquisition. Goodwill of $7.7 million and a customer relationships intangible asset of $15.5 million were recorded as a result of the acquisition. The Company believes the KSF Acquisition accelerates its long-term strategy to operate a fully integrated autonomous security platform combining hardware, software, and human response into a single managed system.
Current report
Growth
Current report
The KSF Acquisition expands the Company’s growth opportunities by adding licensed security personnel and executive protection capabilities to the Company’s broader managed services platform. Management believes the acquisition supports the Company’s long-term strategy of delivering integrated security solutions that combine robotics, software, monitoring, and on-site personnel.
Current report
The addition of Security Force capabilities enables the Company to pursue a broader range of customer opportunities, including requests for proposals and quotations that require bundled security services with human presence, which were previously less accessible to the Company. Management also believes the acquisition enhances the Company’s ability to cross-sell technology products and monitoring services into security guarding engagements and expand relationships with enterprise and government customers over time.
Current report
The Company expects to increasingly go to market through a managed services model that combines autonomous systems, software, monitoring capabilities, and licensed security personnel into a more unified customer offering.
Current report
During the past year, production schedules and gross margin performance were affected by (i) extended supplier lead times, (ii) limited availability of certain electronic components, (iii) tariff-related increases in input costs, and (iv) inventory adjustments and variability in manufacturing overhead absorption.
Current report
The Company continues to evaluate supplier diversification, procurement strategies, and production planning improvements; however, ongoing supply chain volatility and cost pressures may continue to impact production efficiency and margins.
Current report
The Company generates revenue from three primary sources: (i) subscription-based Machine-as-a-Service (“MaaS”) offerings, which include ASRs along with maintenance, support, data connectivity, KSOC access, charging infrastructure, and software and firmware updates; (ii) sales of ECD products and related recurring revenues from Knightscope Emergency Management Systems and full-service maintenance contracts; and (iii) security guarding and executive protection services.
Current report
As the Company’s technology and Security Force operations progresses, management expects to continue evaluating opportunities to streamline service delivery, improve operational coordination, and expand the Company’s managed services capabilities.
Current report
Our revenues for the three months ended March 31, 2026 were $6.0 million, an increase of $3.1 million or 106% from the comparable period in the prior year. We have incurred net losses since inception. Our net loss was $10.3 million for the quarter ended March 31, 2026 and $6.9 million for the quarter ended March 31, 2025. As of March 31, 2026, we had an accumulated deficit of $237.3 million. Cash and cash equivalents on hand were $11.4 million as of March 31, 2026, compared to $20.6 million as of December 31, 2025. These factors raise substantial doubt about our ability to continue as a going concern.
Current report
Total revenue, net for the three months ended March 31, 2026 increased by 106%, or $3.1 million, to $6.0 million compared to $2.9 million for the same period in the prior year. The increase was driven by a $2.1 million increase in service revenue and a $1.0 million increase in product revenue.
Current report
Service revenue increased by $2.1 million, or 98%, to $4.2 million for the three months ended March 31, 2026, from $2.1 million in the prior year period. The increase was primarily driven by $2.4 million of Security Force revenue recognized following the KSF Acquisition. This increase was partially offset by lower ASR subscription revenue and a reduction in maintenance and service contracts associated with ECD deployments.
Current report
Product revenue increased by $1.0 million, or 128%, to $1.8 million for the three months ended March 31, 2026, from $0.8 million in the prior year period. The increase was primarily attributable to the fulfillment of previously delayed ECD orders that had been impacted by supply chain constraints in the second half of 2025, including extended lead times for certain electronic components and reliance on limited-source suppliers.
Current report
Cost of revenue
Current report
Total cost of revenue was $5.6 million for the three months ended March 31, 2026, an increase of $2.0 million compared to the same period in the prior year. The increase was driven by higher service costs of $1.5 million and higher product costs of $0.5 million.
Current report
Service cost of revenue increased by $1.5 million compared to the same period in 2025, primarily due to $1.8 million of contract labor associated with Security Force operations following the KSF Acquisition. This increase was partially offset by lower third-party service expenses.
Current report
Product cost of revenue increased by $0.5 million to $1.3 million for the three months ended March 31, 2026, compared to the prior year period. The increase was primarily attributable to higher material costs to support the increased production volume associated with the fulfillment of previously delayed ECD orders.
Current report
Gross Margin (Loss)
Current report
Gross margin was $0.5 million, or 8% of revenue, for the three months ended March 31, 2026, compared to a gross loss of $0.7 million, or (23%) of revenue, for the same period in the prior year. The improvement in gross margin was primarily driven by the contribution of Security Force revenues, which have a different cost structure.
Current report
Research and development expenses increased by approximately $2.6 million, or approximately 120% for the three months ended March 31, 2026, as compared to the same period in the prior year. The increase is primarily due to third-party engineering services as the Company continues to invest in the development of new products.
Current report
Sales, General and Administrative
Current report
Sales, general and administrative expense for the three months ended March 31, 2026 was $6.1 million, an increase of $2.1 million from the three months ended March 31, 2025. The increase was primarily driven by $0.6 million in general corporate expenses, $0.4 million in higher investor relations and advertising expenses, $0.4 million in higher professional services fees, $0.3 million general and administrative costs associated with KSF, and $0.2 million in higher rent-related costs associated with our new larger headquarters.
Current report
Total other income (expense) for the three months ended March 31, 2026 increased slightly as compared to the same period in the prior year.
Current report
Consideration for the KSF Acquisition consisted of (i) a $5.0 million cash payment at closing, (ii) repayment of Event Risk’s outstanding indebtedness of $1.1 million, (iii) the issuance of 1,724,418 shares of the Company’s Class A Common Stock, and (iv) $4.0 million of deferred cash payments, payable in quarterly installments through December 31, 2028 subject to the purchase agreement. The purchase agreement also provides for contingent future cash and equity consideration based on post-closing performance, including a 2026 earn-out, revenue-based cash payments for 2027 through 2031, and potential additional equity issuances, each subject to specified thresholds and caps. In addition, management believes the acquisition materially strengthens the Company’s liquidity profile by adding a business that is expected to be free cash flow generating and contributing to operating cash flow. The Company expects to fund its acquisition-related obligations through cash on hand, cash generated from operations and, if appropriate, additional financing. While no assurance can be given that additional financing will be available on acceptable terms, management believes the KSF Acquisition improves the Company’s path toward stronger cash generation, enhances overall capital efficiency, and supports the Company’s broader strategy to improve liquidity and capital resources over time.
Current report
Net cash used in operating activities represents the amount of cash we invest in personnel, marketing, and infrastructure to support the anticipated growth of our business, the number of clients to whom we lease our ASRs, sell and service ECDs, the amount and timing of accounts receivable collections, as well as the amount and timing of disbursements to our vendors.
Removed paragraphs (65)
Previous report
Knightscope is dedicated to transforming public safety through AI-driven robotics, emergency communication solutions, and real-time monitoring. Our comprehensive suite of solutions includes Autonomous Security Robots (“ASR”), advanced AI-powered detection, emergency communication devices (“ECD”), and the cloud-based Knightscope Security Operations Center (“KSOC”), providing organizations with scalable, 24/7 autonomous monitoring. Our products are manufactured in the United States and are designed to protect people and assets across various environments, including workplaces, schools, and public areas.
Previous report
Our core technologies are a unique combination of autonomy, robotics, artificial intelligence and electric vehicle technology:
Previous report
Business Environment
Previous report
Knightscope operates in a dynamic and evolving trade environment that can impact both material sourcing and manufacturing costs. Knightscope strongly supports efforts to revitalize domestic manufacturing and is committed to scaling U.S.-based engineering and production operations. While we strive to manufacture our ASRs and ECDs domestically, global material availability and supplier delivery performance may present challenges. These supply chain constraints have, at times, impacted the timing of equipment production and delivery to our clients.
Previous report
In addition, the evolving global tariff environment continues to influence input costs for certain components and materials. While the overall financial impact to date has been deemed immaterial, we remain vigilant and proactive in mitigating future cost pressures.
Previous report
To address these challenges, we are actively investing in our new, larger production facility in Sunnyvale, California, and taking targeted actions to enhance throughput, strengthen yield, and improve overall delivery performance. We are optimizing our procurement and production strategies, leveraging existing supplier relationships, and evaluating alternative sourcing options where appropriate. Additionally, Knightscope continues to maintain disciplined cost controls and may implement selective pricing adjustments as needed to offset residual tariff-related pressures while preserving value for our clients.
Previous report
Extinguishment of Warrants with Anti-Dilution Features** -**On October 10, 2022, the Company issued senior secured convertible notes and warrants to purchase 22,768 Class A shares under a Securities Purchase Agreement with Alto Opportunity Master Fund. The warrants included anti-dilution provisions adjusting the exercise price and share quantity if lower-priced stock was later issued. On August 1, 2024, the Company and the holder entered into a waiver agreement, canceling the 2022 warrants in exchange for a $3.0 million senior secured promissory note due July 1, 2025.
Previous report
On June 30, 2025, the senior secured promissory note was paid in full.
Previous report
Strengthened Liquidity– As of September 30, 2025, cash and cash equivalents of approximately $20.4 million, represent a $15.2 million year-over-year increase. This improvement is largely attributable to disciplined expense management and strategically executed financing.
Previous report
Investment in growth and innovation
Previous report
New, Larger Facility - In April 2025, Knightscope signed a lease for a newly expanded corporate headquarters at 305 North Mathilda Avenue, Sunnyvale, California, securing approximately 33,355 square feet—more than double our former facility. This expanded footprint establishes a strategic hub for enhanced engineering, manufacturing, and client support efforts while the consolidation enables improved internal collaboration and streamlined deployment workflows.
Previous report
Focused Investment in Innovation - Consistent with our long-term growth strategy, research and development (“R&D”) investments remain strategically directed toward development of the K7 platform and ECD products, advancements in autonomous navigation, and integration of AI-powered analytics. These efforts are designed to drive sustainable, high-margin growth as we enhance our product roadmap and competitive differentiation.
Previous report
The Company is focused on scaling its business and on implementing strategies to decrease net loss over time.
Previous report
Production Improvements** **– The Company’s continued investment in continuous improvements of our production processes have yielded overtime labor cost reduction, improved capacity utilization, and shorter delivery timelines. Our attention remains focused on converting backlog into billings and cash receipts in the coming periods.
Previous report
Cost Discipline - Despite continued investment in R&D for the next-generation technology platforms, overall operating expense growth remains tightly managed, aligning with our financial strategy of controlling overhead while investing in innovation.
Previous report
Facility Consolidation and Inventory Assessment – As part of our transition to the new, larger Sunnyvale facility, we completed a comprehensive review of our inventory, manufacturing processes, and legacy systems. This effort is expected to enhance operational efficiency and support long-term scalability; in connection with these efforts, we identified obsolete, slow-moving, or excess inventory and recorded a non-cash inventory write-off of approximately $0.6 million during the three months ended September 30, 2025. This cost is recognized in the Company’s Statements of Operations in Cost of revenue, net - service. These actions are part of a broader initiative to streamline operations and align inventory with current and future product roadmaps.
Previous report
Supply Chain Challenges
Previous report
During the third quarter of 2025, the Company experienced improved availability of key electronic components used in its ECD product assemblies as a result of the supply chain mitigation measures implemented earlier in the year. These actions - including supplier diversification and proactive material replenishment mechanisms - enabled the Company to fulfill certain delayed orders and increase product revenue during the period.
Previous report
While overall supply conditions have improved relative to the prior quarter, the Company continues to monitor potential volatility in the global electronics and logistics markets that could affect lead times, component pricing, and production schedules. The Company believes that its current procurement and inventory management processes have positioned it to better respond to potential disruptions; however, the timing and magnitude of future supply constraints remain uncertain and could continue to impact operating results in the near term.
Previous report
Legislative and Regulatory Developments
Previous report
On July 4, 2025, President Trump signed the tax law referred to as One-Big-Beautiful-Bill-Act (“OBBBA”), which includes comprehensive U.S. corporate tax legislation. The legislation includes the modification and extension of prior tax law under the Tax Cuts and Jobs Act and the introduction of new provisions. Examples include the extension of so-called permanently restoring bonus depreciation allowances, permanent changes in the limitations for deducting business interest expense and permanent expensing of domestic research and development costs. The impact on current and deferred taxes for tax law changes is reported in continuing operations in the interim period which includes the enactment date. The Company has done a preliminary analysis of the changes impacting its business and has determined that the aggregate impact, assuming various state tax legislation conforms to the OBBBA, would not have a material impact to the Company.
Previous report
Total revenue, net for the three months ended September 30, 2025 increased by approximately $0.6 million compared to the same period in the prior year primarily due to a $0.6 million increase in product revenue. Service revenue was relatively flat for the quarter. The increase in product revenue was largely attributable to the timing of deliveries, as the Company was able to fulfill orders delayed from the second quarter of 2025 following the resolution of certain material shortages that had previously constrained production.
Previous report
Cost of revenue, net
Previous report
Total cost of revenue, net of $4.7 million for the three months ended September 30, 2025, increased approximately $1.7 million compared to the same period in the prior year. This was due to $1.1 million higher service cost and $0.5 million higher product cost than prior year. Cost of revenue, net – service includes a $0.6 million write-off of obsolete ASR raw materials, $0.4 million in higher materials and labor costs, and $0.1 million higher compensation expense. The increase in cost of revenue, net – product was due to $0.5 million higher materials cost.
Previous report
Gross Loss
Previous report
The revenue and cost of revenue described above resulted in a gross loss for the three months ended September 30, 2025 of approximately $1.6 million, compared to $0.5 million for the three months ended September 30, 2024.
Previous report
As a percentage of net revenue, gross loss increased to approximately 50% from 20% for the three months ended September 30, 2025 and 2024 respectively. The increase in loss was primarily due to the previously mentioned write-off of ASR raw materials and lower ASR revenue.
Previous report
Research and development expenses increased by approximately $2.0 million, or approximately 113%, for the three months ended September 30, 2025, as compared to the same period in the prior year. The increase reflects the Company’s continued investment in advancing product innovation, primarily in the development of the K7 four-wheeled autonomous robot designed to patrol large, outdoor areas.
Previous report
Sales and Marketing
Previous report
Sales and marketing expenses increased by approximately $0.1 million, or approximately 9%, for the three months ended September 30, 2025, as compared to the same period in the prior year. The increase over the prior year was primarily due to increased payroll costs associated with our additional sales and marketing personnel.
Previous report
General and Administrative
Previous report
General and administrative expenses decreased by approximately $1.4 million, or approximately 31%, for the three months ended September 30, 2025, as compared to the same period in the prior year. The decrease was primarily due to $0.2 million lower investor relations fees, $0.3 million lower stock-based compensation expenses, $0.3 million lower consumable supplies costs, $0.2 million lower credit loss expense and $0.5 million lower third-party professional fees, primarily legal and finance services. These decreases were partially offset by $0.2 million higher rent expense.
Previous report
Restructuring Charges
Previous report
Restructuring charges were immaterial for both the three-month periods ended September 30, 2025 and 2024.
Previous report
Total other income (expense) decreased by approximately $3.1 million, or 99%, for the three months ended September 30, 2025 as compared to the same period in the prior year as non-cash expense from change in the fair value of warrant and derivative liabilities in 2024 was not repeated in 2025. The Company extinguished its outstanding warrant liability in 2024.
Previous report
Comparison ofthe Nine Months Ended September 30, 2025 and 2024
Previous report
Revenue, net
Previous report
Total revenue, net for the nine months ended September 30, 2025 increased by approximately $0.8 million compared to the same period in the prior year due to a $0.6 million increase in service revenue and a $0.2 million increase in product revenue. Service revenue increased across both product lines as ASR deployments increased $0.2 million year-over-year and ECD services revenue grew $0.4 million over the same period due to pricing changes and the increased adoption of full-service maintenance plans by our clients.
Previous report
Cost of revenue, net
Previous report
Total cost of revenue, net of $12.0 million for the nine months ended September 30, 2025 increased by approximately $1.5 million compared to the same period in the prior year. This increase was due to higher cost of revenue in services of $0.8 million, and higher costs of revenues in product of $0.7 million.
Showing the first 40 of 65 passages. Open the source sections for the rest.
Reworded paragraphs (12)
Previous wording
The following discussion of our financial condition and results of operations should be read in conjunction with the (1) unaudited condensed financial statements and the related notes thereto included elsewhere in this report, and (2) the audited financial statements and the related notes thereto andmanagement’s discussion and analysis of financial condition and results of operations for the year ended December 31, 2024 included in our Annual Report on Form 10-K.
Current wording
The following discussion of our financial condition and results of operations should be read in conjunction with the (1) unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this report, and (2) the audited financial statements and the related notes thereto andmanagement’s discussion and analysis of financial condition and results of operations for the year ended December 31, 2025 included in our Annual Report on Form 10-K.
Previous wording
As of November 10, 2025, the Company had a total backlog of approximately $2.8 million, comprised of $2.3 million related to orders for ECDs and $0.5 million related to ASR orders.
Current wording
As of May 8, 2026, the Company had a total backlog of approximately $0.8 million, comprised of $0.6 million related to ASR orders and $0.2 million related to orders for ECDs.
Previous wording
The following table sets forth selected condensed statements of operations data and such data as a percentage of total revenue.
Current wording
The following table sets forth selected Condensed Consolidated Statements of Operations data and such data as a percentage of total revenue.
Previous wording
These factors raise substantial doubt about our ability to continue as a going concern. There can be no assurance that the Company will be successful in acquiring additional funding at levels sufficient to fund its future operations. If the Company is unable to raise additional capital in sufficient amounts or on terms acceptable to it, the Company may have to significantly reduce its operations, delay, scale back or discontinue the development of one or more of its platforms or discontinue operations completely.
Current wording
As of March 31, 2026, we had $11.4 million of cash and cash equivalents. As of March 31, 2026, the Company also had an accumulated deficit of $237.3 million, working capital of $7.0 million, and stockholders’ equity of $34.0 million. For the quarter ended March 31, 2026, the Company had a net loss of $10.3 million and cash used in operating activities of $11.6 million. These factors raise substantial doubt about our ability to continue as a going concern. The Company will require significant additional financing to meet its planned capital and operational needs and is pursuing opportunities to obtain additional financing through equity and/or debt alternatives. There can be no assurance that the Company will be successful in acquiring additional funding at levels sufficient to fund its future operations. Management’s plans include seeking additional financing, such as issuances of equity and issuances of debt and/or convertible debt instruments. Sales of additional equity securities, convertible debt and/or warrants by the Company could result in the dilution of the interests of existing stockholders. However, there can be no assurance that financing will be available when required in sufficient amounts, on acceptable terms or at all. If the Company is unable to raise additional capital in sufficient amounts or on terms acceptable to it, the Company may have to significantly reduce its operations, delay, scale back or discontinue the development of one or more of its platforms or discontinue operations completely.
Previous wording
On February 1, 2023, we entered into an At The Market Offering Agreement with H.C. Wainwright & Co., LLC (“Wainwright”), pursuant to which we may offer and sell from time-to-time shares of Class A Common Stock through or to Wainwright acting as sales agent or principal (the “ATM Facility”). We initially filed a prospectus supplement on February 9, 2023, for sales under the ATM Facility up to $20.0 million, which was further supplemented on April 8, 2024, June 7, 2024, October 11, 2024, and November 14, 2024.
Current wording
On February 1, 2023, we entered into an At-the-Market Agreement with Wainwright, pursuant to which we may offer and sell from time-to-time shares of Class A Common Stock through or to Wainwright acting as sales agent or principal (the “ATM Facility”).
Previous wording
On April 4, 2025, we filed a new shelf registration statement on Form S-3, pursuant to which we may, from time to time in one or more offerings, offer and sell up to $100.0 million in the aggregate of Class A common stock, preferred stock, debt securities, warrants and/or units, in any combination. The new shelf registration statement was declared effective on April 11, 2025. On July 18, 2025, we filed a new prospectus supplement for additional sales under the ATM Facility up to $50.0 million of shares of Class A Common Stock. As of November 7, 2025, we have approximately $35.6 million remaining to be sold pursuant to the new prospectus supplement and the accompanying prospectus related to the ATM Facility.
Current wording
Common Stock, preferred stock, debt securities, warrants and/or units, in any combination. The new shelf registration statement was declared effective on April 11, 2025. On July 18, 2025, we filed a new prospectus supplement for additional sales under the ATM Facility of up to $50.0 million of shares of Class A Common Stock. As of May 8, 2026, we have approximately $18.3 million remaining to be sold pursuant to the new prospectus supplement and the accompanying prospectus related to the ATM Facility.
Previous wording
For the three months ended September 30, 2025, we have sold an aggregate of 2,967,130 shares of Class A Common Stock under the ATM Facility for net proceeds of approximately $20.9 million, after deducting sales agent fees and expenses of approximately $0.5 million.
Current wording
During the three months ended March 31, 2026, the Company issued 2,027,993 shares of Class A Common Stock under the ATM Facility for net proceeds of approximately $9.0 million, net of brokerage and placement fees of approximately $0.2 million.
Previous wording
Net cash used in operating activities was approximately $19.7 million for the nine months ended September 30, 2025. Net cash used in operating activities resulted from a net loss of approximately $22.8 million and changes in assets and liabilities and non-cash charges.
Current wording
Net cash used in operating activities was approximately $11.6 million for the three months ended March 31, 2026. Net cash used in operating activities resulted from a net loss of approximately $10.3 million and changes in working capital and non-cash charges.
Previous wording
Net cash used in operating activities for the nine months ended September 30, 2025 increased by approximately $2.4 million as compared to the same period of the prior year. This was primarily a result of a change in assets and liabilities of approximately $2.5 million, a decrease in the change in fair value of warrant and derivative liabilities of approximately $1.5
Current wording
Net cash used in operating activities for the three months ended March 31, 2026 increased by approximately $5.2 million as compared to the same period of the prior year. This was primarily a result of an increase in the net loss of approximately $3.4 million and changes in assets and liabilities of approximately $1.9 million.
Previous wording
Our primary investing activities have consisted of capital expenditures and investment in ASRs. As our business grows, we expect our capital expenditures to continue to increase.
Current wording
Net cash used in investing activities for the three months ended March 31, 2026 and 2025 was approximately $6.3 million and $0.4 million, respectively. Our primary investing activities have consisted of capital expenditures and investment in ASRs. As our business grows, we expect our capital expenditures to continue to increase. As discussed in Note 2, the Company paid $6.1 million (that was netted against $0.6 million of cash acquired) for the KSF Acquisition during the three months ended March 31, 2026.
Previous wording
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 as compared to the same period of the prior year. Our financing activities for the nine months ended September 30, 2025 consisted primarily of net proceeds from the issuance of Class A Common Stock under our at-the-market offering program with Wainwright of approximately $31.2 million, net proceeds from the issuance of common stock under a direct registration offering of approximately $1.4 million, partially offset by repayments of debt obligations of $1.9 million. In the prior year period, our financing activities consisted primarily of net proceeds resulting from our at-the-market agreement with Wainwright of approximately $20.4 million and the issuance of our Public Safety Infrastructure Bonds of approximately $2.6 million.
Current wording
Net cash provided by financing activities was approximately $8.8 million for the three months ended March 31, 2026, an increase of approximately $0.5 million as compared to the same period of the prior year. Our financing activities for the three months ended March 31, 2026, consisted primarily of net proceeds from the issuance of Class A Common Stock under our ATM Facility with Wainwright of approximately $9.0 million, partially offset by repayments of debt obligations of $0.2 million. In the same prior year period, our financing activities consisted primarily of net proceeds resulting from our ATM Facility with Wainwright of approximately $7.4 million and the issuance of common stock and pre-funded warrants of $1.4 million, partially offset by repayments of debt obligation of $0.6 million.
Previous wording
There have been no material changes to our critical accounting estimates from what was reported in the Annual Report on Form 10-K. Please see Note 1 to our condensed financial statements elsewhere in this Quarterly Report on Form 10-Q.
Current wording
Other than estimates related to the KSF Acquisition, there have been no material changes to our critical accounting estimates from what was reported in the Annual Report on Form 10-K. Please see Note 1 to our condensed consolidated financial statements elsewhere in this Quarterly Report on Form 10-Q.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On April 4, 2025, we filed a new shelf registration statement on Form S-3, pursuant to which we may, from time to time in one or more offerings, offer and sell up to $100.0 million in the aggregate of Class A
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The following table sets forth selected condensed statements of operations data and such data as a percentage of total revenue.