Knightscope, Inc.
For the period ended Jun 30, 2025. Filed Aug 12, 2025.
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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.
Jun 30, 2025 · Filed Aug 12, 2025
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 2025-03-31; filed 2025-05-14.
0001558370-25-007781
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001558370-25-011247
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 65 previous paragraphs and 96 current paragraphs.
29 unchanged; 20 reworded; 39 added; 15 removed; 1 previous and 8 current paragraphs rearranged.
Tables are not compared: 13 previous and 14 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 (39)
Current report
Business Environment
Current 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 continue to present challenges. These supply chain constraints have, at times, impacted the timing of equipment production and delivery to our clients.
Current 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 immaterial, we remain vigilant and proactive in mitigating future cost pressures.
Current 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.
Current report
As of June 30, 2025, the senior secured promissory note was paid in full.
Current report
Strengthened Liquidity
Current report
As of June 30, 2025, cash and cash equivalents of approximately $8.2 million, represent a $5.6 million year-over-year increase. This improvement is largely attributable to disciplined expense management and strategically executed financing.
Current report
Investment in growth and innovation
Current 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.
Current 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.
Current report
Production Scheduling** **- We have staffed a second production shift—resulting in 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.
Current 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.
Current report
Facility Consolidation and Inventory Assessment – As part of our transition to the new, larger Sunnyvale facility, we are undertaking a comprehensive review and clean-up of our inventory, manufacturing processes, and legacy systems. This effort is expected to enhance operational efficiency and support long-term scalability. However, during this transition, we anticipate identifying a meaningful amount of obsolete, slow-moving, or excess inventory. As a result, the Company expects to incur non-cash inventory write-offs in future periods, which may adversely impact gross margin and operating results in the near term. These actions are part of a broader initiative to streamline operations and align inventory with current and future product roadmaps.
Current report
Supply Chain Challenges
Current report
The Company was adversely affected by material shortages on certain ECD product deliveries, ultimately resulting in lower-than-expected Q2 product revenues. In response, the Company has proactively mitigated future supply shortages by diversifying our supply base for certain electronic components used in ECD assemblies. Additionally, the Company has implemented proactive material replenishment mechanisms to minimize impact. As a result, we are now better positioned to accelerate backlog conversion to cash, with shortened delivery times to our valued ECD clients.
Current report
Legislative and Regulatory Developments
Current 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 (“TCJA”) 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. The Company will continue to assess the tax accounting impacts as more information is made available and will record the tax impact, if any, in the third quarter of 2025.
Current report
Total revenue, net for the three months ended June 30, 2025 decreased by approximately $0.5 million compared to the same period in the prior year as a $0.6 million decrease in product revenue was partially offset by a $0.1 million increase in service revenue. Service revenue grew as we continued to deploy ASRs into our network. However, this growth was partially offset by a decline in Product revenue primarily due to component shortages across the ECD portfolio.
Current report
Total cost of revenue, net of $3.7 million for the three months ended June 30, 2025, decreased approximately $0.1 million compared to the same period in the prior year. This was due to $0.1 million lower product cost, partially offset by slightly higher service cost.
Current report
As a percentage of net revenue, gross loss increased to approximately 33% from 17% for the three months ended June 30, 2025 and 2024 respectively. The increase in loss was primarily due to lower ECD revenue.
Current report
Comparison ofthe Six Months Ended June 30, 2025 and 2024
Current report
Revenue, net
Current report
Cost of revenue, net
Current report
Product cost of revenue, net for the six months ended June 30, 2025 of $1.7 million was $0.1 million higher than the prior year.
Current report
Gross Loss
Current report
As a percentage of net revenue, gross loss decreased to 28% from 37% for the six months ended June 30, 2025 and 2024 respectively. This decrease was primarily driven by approximately $1.1 million in savings from one-time scrap fees in 2024 related to the write-off of discontinued K5 v3 machines which were replaced with the improved, better performing K5 v5 ASRs.
Current report
Research and Development
Current report
Sales and Marketing
Current report
General and Administrative
Current report
Restructuring Charges
Current report
Restructuring charges were immaterial for the six months ended June 30, 2025 compared to $0.4 million for the same period in the prior year.
Current report
Other Income (expense)
Current report
Our operations have been financed primarily through net proceeds from the sale of securities and from borrowings.
Current report
We have generated significant losses from operations as reflected in our accumulated deficit. Additionally, we have generated negative cash flows from operations and investing activities as we continue to support the growth of our business. We anticipate continuing to make significant capital investments over the next several years to focus on ramping up production to support anticipated growth. We also anticipate continuing to make investments in future growth initiatives, including new product development across ASRs and ECDs as well as other technology and software.
Current report
Our future operating losses and capital needs may differ materially from current plans and will depend on factors such as revenue growth, R&D and growth-related spending, manufacturing scale-up, cost-reduction efforts, product launch timing, customer adoption, and broader economic conditions. We may require additional financing through debt or equity. Equity sales could dilute existing stockholders, while debt could impose repayment obligations and restrictive covenants. There is no assurance we can obtain financing on favorable terms or at all, and failure to do so could adversely impact our business objectives.
Current report
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 report
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 August 8, 2025, we have approximately $44.2 million remaining to be sold pursuant to the new prospectus supplement and the accompanying prospectus related to the ATM Facility.
Current report
For the six months ended June 30, 2025, we have sold an aggregate of 1,779,720 shares of Class A Common Stock under the ATM Facility for net proceeds of approximately $10.3 million, after deducting sales agent fees and expenses of approximately $0.3 million.
Current report
Net cash used in operating activities represents use of cash to pay our suppliers, employees and local, state and federal government organizations. This is partially offset by customer-related activities, the largest of which is collecting cash resulting from product or services sales.
Removed paragraphs (15)
Previous report
Reverse Stock Split
Previous report
On August 16, 2024, stockholders approved a reverse stock split at a ratio between 1-for-5 and 1-for-50. On September 4, 2024, the Board set the final ratio at 1-for-50 for both Class A and Class B Common Stock. The split became effective on September 13, 2024, following the filing of an amendment to the Certificate of Incorporation in Delaware. No fractional shares were issued; instead, affected stockholders received a cash payment based on the September 13 closing price on Nasdaq, totaling approximately $78. All outstanding stock options were adjusted accordingly, and all share and per-share amounts in financial statements were retroactively updated to reflect the split.
Previous report
Capital Structure
Previous report
The Company has prioritized restructuring its capital structure to better align with its public company peers. Below is a summary of actions taken, which we believe, set up the Company for long term success.
Previous report
**Increase in Authorized Shares -**On April 5, 2024, stockholders approved an amendment to double the authorized shares of Class A Common Stock from 114 million to 228 million. The increase provides flexibility for corporate purposes such as financings, stock splits or dividends, equity awards, conversions, and strategic initiatives, without needing further stockholder approval.
Previous report
**Preferred Stock Conversion -**On May 15, 2024, all outstanding Super Voting and Ordinary Preferred Stock automatically converted into Class B and Class A Common Stock, respectively, per the Company’s Certificate of Incorporation. No preferred stock remains outstanding. The conversion supports Nasdaq compliance by aiding stockholder equity requirements.
Previous report
**Authorization of Blank Check Preferred Stock -**On August 16, 2024, stockholders approved the authorization of 40 million shares of "blank check" preferred stock, allowing the Board of Directors to issue new preferred shares in one or more series with terms it sets, without further stockholder approval. Provisions related to previously issued preferred stock were removed, as they are no longer outstanding.
Previous report
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. The note is payable in two installments: $2.5 million in 11 equal monthly payments starting September 1, 2024, and $500,000 on the earlier of October 15, 2024, or upon a qualifying issuance of equity or debt. The note bears no interest unless an event of default occurs, in which case a 10% annual interest applies. As of May 13, 2025, approximately $0.5 million remains outstanding.
Previous report
Although the disruptions from restructuring changes we made in the first half of the prior year continue to impact operations, we are beginning to see benefits, primarily as we work closely with our third-party partners to streamline field services for our ECD clients and renegotiate some long-term services contracts.
Previous report
Additionally, we believe our efforts to improve the ASR K5 v5 are showing promise in higher install base and increased customer retention. The Company continues to invest in revenue-generating activities such channel partnerships, lead generation, marketing and programs aimed at increasing our engagement with the federal government.
Previous report
Our strategy is to try to keep fixed costs low while minimizing variable costs in conjunction with pursuing our growth objectives; however given the global nature of our supply chain, our business is subject to the imposition of tariffs and other trade barriers, which may make it more costly for us to import raw materials and components for our products.
Previous report
Product cost of revenue, net for the three months ended March 31, 2025 of $0.8 million was $0.2 million higher than prior year due to $0.3 million in increased costs of materials partially offset by $0.1 million in lower payroll and $0.1 million in lower rent and utilities costs.
Previous report
In February 2023, we commenced an at-the-market offering program with H.C. Wainwright & Co., LLC (“Wainwright”), as sales agent, in connection with our filing of a prospectus supplement filed on February 9, 2023 (the “February Prospectus Supplement”), allowing us to offer and sell from time to time of up to $20.0 million in shares of Class A Common Stock, subject to, and in accordance with, SEC rules. Pursuant to General Instruction I.B.6 of Form S-3, our prospectus supplement provided that in no event would we sell any securities in a public primary offering with a value exceeding one-third of our non-affiliated public float in any 12-month period unless our non-affiliated public float subsequently rose to $75.0 million or more.
Previous report
On November 14, 2024, after our non-affiliated public float rose to an amount greater than $75.0 million, we filed a new prospectus supplement (the “November Prospectus Supplement”) providing for the offer and sale from time to time of up to $25.0 million in shares of Class A Common Stock, in addition to the shares of Class A Common Stock previously sold, subject to, and in accordance with, SEC rules.
Previous report
Net cash used in operating activities is influenced by 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, the amount and timing of accounts receivable collections, inventory procurement, as well as the amount and timing of disbursements to our vendors.
Reworded paragraphs (20)
Previous wording
**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. A related registration rights agreement granted the holder registration rights under the Securities Act.
Current wording
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 wording
The Company is focused on scaling its business and on implementing strategies to decrease gross margin loss over time.
Current wording
The Company is focused on scaling its business and on implementing strategies to decrease net loss over time.
Previous wording
As of May 7, 2025, the Company had a total backlog of approximately $2.5 million, comprised of $1.9 million related to orders for ECDs and $0.6 million related to ASR orders.
Current wording
As of August 8, 2025, the Company had a total backlog of approximately $2.9 million, comprised of $2.2 million related to orders for ECDs and $0.7 million related to ASR orders.
Previous wording
The following table sets forth selected Condensed Statements of Operations data (in thousands) and such data as a percentage of total revenue.
Current wording
The following table sets forth selected condensed statements of operations data and such data as a percentage of total revenue.
Previous wording
The revenue and cost of revenue described above resulted in a gross loss for the three months ended March 31, 2025 of approximately $0.7 million, net, compared to $1.4 million for the three months ended March 31, 2024.
Current wording
The revenue and cost of revenue described above resulted in a gross loss for the three months ended June 30, 2025 of approximately $0.9 million net, compared to $0.6 million or for the three months ended June 30, 2024.
Previous wording
Research and development expenses increased by approximately $0.6 million, or approximately 35% for the three months ended March 31, 2025, 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 wording
Research and development expenses increased by approximately $0.5 million, or approximately 28% for the three months ended June 30, 2025, 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.
Previous wording
Sales and marketing expenses decreased by approximately $0.2 million, or approximately 15%, for the three months ended March 31, 2025, as compared to the same period in the prior year. The decrease was primarily due to a decline in advertising and promotional costs compared to the same period in the prior year.
Current wording
Sales and marketing expenses decreased by approximately $0.5 million, or approximately 31%, for the three months ended June 30, 2025, as compared to the same period in the prior year. The decrease was primarily due to a decline in advertising and promotional costs compared to the same period in the prior year.
Previous wording
Restructuring charges were $0 for the three month period ended March 31, 2025 compared to $119 for the same period in the prior year.
Current wording
Restructuring charges were immaterial for the three-month period ended June 30, 2025 compared to $0.3 million for the same period in the prior year.
Previous wording
Total other income (expense) decreased by approximately $0.8 million, or 110% for the three months ended March 31, 2025 as compared to the same period in the prior year as non-cash income 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.
Current wording
Total other income (expense) decreased by approximately $0.6 million, or 112% for the three months ended June 30, 2025 as compared to the same period in the prior year as non-cash income 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 wording
Total revenue, net for the three months ended March 31, 2025 increased by approximately $0.7 million compared to the same period in the prior year due to a $0.4 million increase in service revenue and $0.2 million increase in product revenue.
Current wording
Total revenue, net for the six months ended June 30, 2025 increased by approximately $0.2 million compared to the same period in the prior year due to a $0.5 million increase in service revenue partially offset by $0.3 million decrease in product revenue, primarily driven by supply chain issues related to availability of ECD components in the second quarter. Service revenue increased across both product lines as ASR deployments increased year-over-year and ECD services revenue grew due to pricing changes and the increased use of full service maintenance plans by our clients.
Previous wording
Total cost of revenue, net of $3.6 million for the three months ended March 31, 2025 decreased approximately $0.1 million compared to the same period in the prior year. This decrease was primarily due to lower cost of revenue in services of $0.3 million partially offset by higher costs of revenues in product of $0.2 million.
Current wording
Total cost of revenue, net of $7.3 million for the six months ended June 30, 2025 decreased approximately $0.2 million compared to the same period in the prior year. This decrease was primarily due to lower cost of revenue in services of $0.3 million, partially offset by higher costs of revenues in product of $0.1 million.
Previous wording
Service cost of revenue, net came in $0.3 million lower as compared to the same period in 2024 due to $0.8 million in savings from one-time scrap fees in 2024 and $0.1 million in lower cellular fees partially offset by $0.5 million in higher third-party expenses.
Current wording
Service cost of revenue, net came in $0.3 million lower as compared to the same period in 2024 due to $1.1 million in savings from one-time scrap fees in 2024 and $0.1 million in savings from cellular fees, partially offset by $0.6 million in higher third-party expenses. Third party expenses are related to the strategic decision we made in March 2024 to outsource field services to third party partners. The higher expense in 2025 reflects two full quarters of expenses compared to only one quarter of expenses in 2024.
Previous wording
General and administrative expenses decreased by approximately $0.9 million or approximately 24% for the three months ended March 31, 2025, as compared to the same period in the prior year. The decrease was primarily due to $1.0 million lower investor relations fees that the Company spent in prior year to support its Public Infrastructure Bond Offering and $0.3 million lower third-party professional fees, primarily legal and finance services. These decreases were partially offset by $0.2 million higher costs across corporate insurance, franchise taxes and other items.
Current wording
General and administrative expenses decreased by approximately $1.4 million or approximately 23% for the six months ended June 30, 2025, as compared to the same period in the prior year. The decrease was primarily due to $1.4 million lower investor relations fees that the Company spent in the prior year to support its funding efforts, including the Public Safety Infrastructure Bonds and $0.9 million lower third-party professional fees, primarily legal and finance services. These decreases were partially offset by $0.2 million higher consulting costs and $0.3 million higher rent expense related to our new, larger facility in Sunnyvale, CA.
Previous wording
As of March 31, 2025 and December 31, 2024, we had $12.7 million and $11.1 million, respectively, of cash and cash equivalents. As of March 31, 2025, the Company had additional paid-in capital of $218.2 million, partially offset by an accumulated deficit of approximately $200.1 million, working capital of approximately $9.6 million and total stockholders’ equity of approximately $18.2 million. 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. 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. 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. 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.
Current wording
As of June 30, 2025 and December 31, 2024, we had $8.2 million and $11.1 million, respectively, of cash and cash equivalents. As of June 30, 2025, the Company had additional paid-in capital of $221.5 million, partially offset by an accumulated deficit of approximately $206.4 million, working capital of approximately $6.3 million and total stockholders’ equity of approximately $15.1 million.
Previous wording
For the three months ended March 31, 2025, we issued 1,247,836 shares of Class A Common Stock under the at-the-market offering program for net proceeds of approximately $7.4 million, net of brokerage and placement fees of approximately $0.2 million.
Current wording
For the three months ended June 30, 2025, we have sold an aggregate of 531,884 shares of Class A Common Stock under the ATM Facility for net proceeds of approximately $2.9 million, after deducting sales agent fees and expenses of approximately $0.1 million.
Previous wording
On March 27, 2025, the Company entered into a securities purchase agreement with a certain institutional investor, pursuant to which the Company agreed to issue and sell in a registered direct offering, 625,000 shares of the Company’s Class A Common Stock, par value $0.001 per share, at a purchase price of $2.75 per share. The gross proceeds to the Company from the offering were approximately $1.7 million before deducting placement agent fees and other offering expenses payable by the Company.
Current wording
On March 27, 2025, the Company entered into a securities purchase agreement with a certain institutional investor, pursuant to which the Company agreed to issue and sell in a registered direct offering, 625,000 shares of the Company’s Class A Common Stock, par value $0.001 per share, at a purchase price of $2.75 per share. The gross proceeds to the Company from the offering were approximately $1.7 million before deducting placement agent fees and other offering expenses paid by the Company.
Previous wording
Net cash used in operating activities was approximately $6.4 million for the three months ended March 31, 2025. Net cash used in operating activities resulted from a net loss of approximately $6.9 million and changes in working capital and non-cash charges.
Current wording
Net cash used in operating activities was approximately $11.9 million for the six months ended June 30, 2025. Net cash used in operating activities resulted from a net loss of approximately $13.2 million and changes in working capital and non-cash charges.
Previous wording
Net cash used in operating activities for the three months ended March 31, 2025 decreased by approximately $2.2 million as compared to the same period of the prior year. This was primarily a result of a decrease in the net loss of approximately $0.7 million, changes in assets and liabilities of approximately $1.4 million, an increase in stock-based compensation of approximately $0.1 million partially offset by a decrease in the change in fair value of warrant and derivative liabilities of approximately $0.8 million, and a loss on disposal of ASRs and related inventory of approximately $0.8 million.
Current wording
Net cash used in operating activities for the six months ended June 30, 2025 decreased by approximately $0.8 million as compared to the same period of the prior year. This was primarily a result of a decrease in the net loss of approximately $0.6 million, an increase in stock-based compensation of approximately $0.2 million, and a decrease in the change in fair
Previous wording
Net cash used in investing activities for the three months ended March 31, 2025 and 2024 was approximately $0.4 million and $0.9 million, respectively.
Current wording
Net cash used in investing activities for the six months ended June 30, 2025 and 2024 was approximately $1.2 million and $1.8 million, respectively.
Previous wording
Net cash provided by financing activities was approximately $8.3 million for the three months ended March 31, 2025, a decrease of approximately $1.5 million as compared to the same period of the prior year. Our financing activities for the three months ended March 31, 2025, consisted primarily of net proceeds from the issuance of Class A Common Stock under our at-the-market offering program with Wainwright and the registered direct offering of approximately $7.4 million,
Current wording
Net cash provided by financing activities was approximately $10.0 million for the six months ended June 30, 2025, a decrease of approximately $4.7 million as compared to the same period of the prior year. Our financing activities for the six months ended June 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 $10.3 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 $1.7 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 $12.1 million and the issuance of our Public Safety Infrastructure Bonds of approximately $2.6 million.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
General and administrative expenses decreased by approximately $0.6 million or approximately 21% for the three months ended June 30, 2025, as compared to the same period in the prior year. The decrease was primarily due to $0.3 million lower investor relations fees and $0.7 million lower third-party professional fees, primarily legal and finance services. These decreases were partially offset by $0.3 million higher costs in rent expense.
Current report — wording carried from elsewhere
The following table sets forth selected condensed statements of operations data and such data as a percentage of total revenue.
Current report — wording carried from elsewhere
The revenue and cost of revenue described above resulted in a gross loss for the six months ended June 30, 2025 of approximately $1.6 million, net, compared to $2.0 million for the six months ended June 30, 2024.
Current report — wording carried from elsewhere
Research and development expenses increased by approximately $1.0 million, or approximately 32% for the six months ended June 30, 2025, 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 — wording carried from elsewhere
Sales and marketing expenses decreased by approximately $0.7 million, or approximately 23%, for the six months ended June 30, 2025, as compared to the same period in the prior year. The decrease was primarily due to a decline in advertising and promotional costs compared to the same period in the prior year.
Current report — wording carried from elsewhere
Total other income (expense) decreased by approximately $1.3 million, or 111% for the six months ended June 30, 2025 as compared to the same period in the prior year as non-cash income 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.
Current report — wording carried from elsewhere
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 report — wording carried from elsewhere
value of warrant and derivative liabilities of approximately $1.5 million, partially offset by changes in assets and liabilities of approximately $0.6 million and a loss on disposal of ASRs and related inventory of approximately $1.0 million.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
proceeds from the issuance of common stock and pre-funded warrants of approximately $1.4 million, offset by repayments of debt obligations of $0.6 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 $7.1 million and the issuance of our Public Safety Infrastructure Bonds of approximately $2.6 million.