Knightscope, Inc. reported a decline in revenue for the third quarter and the first nine months of 2024, with total revenue of $2.5 million for the three months ended September 30, 2024, down 23.9% from $3.3 million in the same period of 2023. For the nine months, revenue decreased to $8.0 million from $9.8 million year-over-year. The decrease in revenue was primarily attributed to lower sales of Emergency Communication Devices (ECDs) due to production relocation and restructuring efforts following the acquisition of CASE Emergency Management assets.

The company's cost of revenue for the third quarter increased slightly to $3.2 million from $3.3 million in 2023, while for the nine months, it rose to $10.7 million from $9.9 million. This led to a gross loss of $0.7 million for the third quarter, compared to a gross profit of $0.1 million in the prior year. For the nine months, the gross loss was approximately $2.7 million, significantly higher than the $0.2 million loss reported in 2023, influenced by a $1.1 million write-off related to the retirement of K5 v3 machines.

Operating expenses for the third quarter increased to $7.0 million from $6.5 million in 2023, with general and administrative expenses rising sharply by 31% to $4.2 million. The net loss for the third quarter was $10.9 million, compared to $8.3 million in the same period last year. For the nine months, the net loss escalated to $24.8 million from $15.6 million in 2023.

As of September 30, 2024, Knightscope's cash and cash equivalents stood at $5.2 million, a significant increase from $2.3 million at the end of 2023. The company reported total assets of $24.9 million, up from $23.0 million, and total stockholders' equity improved to $9.3 million from a deficit of $26.6 million at the end of 2023, largely due to increased additional paid-in capital.

Strategically, Knightscope has focused on cost control measures, including exiting two long-term leases and optimizing manufacturing processes. The company has also expanded its sales team to drive growth and is seeking additional financing to support operations, with substantial doubt about its ability to continue as a going concern in the next twelve months. The company is actively working to regain compliance with Nasdaq listing standards after receiving a notice of non-compliance in October 2023, which led to a reverse stock split approved by shareholders in August 2024.