MOUNTAIN VIEW, CA – Knightscope, Inc. (NASDAQ:KSCP), a developer of advanced physical security technologies focused on enhancing U.S. security operations, has announced today that it has successfully regained compliance with Nasdaq’s minimum bid price requirement.
The compliance milestone was confirmed in a written notice from the Nasdaq Office of General Counsel on Monday. This development follows a period of uncertainty after Knightscope received a notice from Nasdaq on June 4, 2024, indicating that the company’s stock did not meet the minimum bid price of $1.00 per share, as required by Nasdaq Listing Rule 5550(a)(2). Knightscope was given until October 4, 2024, to address the deficiency.
To regain compliance, Knightscope was required to maintain a minimum bid price of at least $1.00 over ten consecutive business days. According to the notice, the company achieved this from September 16 to September 30, 2024, thereby meeting the necessary condition to continue its listing on the Nasdaq Capital Market.
Knightscope’s Chairman, Chief Executive Officer, and President, William Santana Li, signed the SEC filing, indicating the company’s formal acknowledgment of the regained compliance.
This announcement marks the end of the compliance issue, with Nasdaq considering the matter closed. Knightscope’s business address is located at 1070 Terra Bella Avenue, Mountain View, California, and the company falls under the industrial classification of Communications Equipment, NEC. The information in this article is based on a press release statement.
In other recent news, Knightscope has seen a series of significant developments. The company has expanded deployment of its K5 Autonomous Security Robots (ASRs) across various locations, including a hotel in Louisville, a casino in Kansas City, and a storage facility in Richmond. Knightscope also deployed an upgraded K5 ASR at a California hospital and added another K5 ASR to its fleet under a contract with the same healthcare provider.
The company has implemented a 1-for-50 reverse stock split for both its Class A and Class B Common Stock, following stockholder approval at the Annual Meeting. Moreover, Knightscope renewed its contract with a top commercial real estate brokerage and property management firm in Texas.
At the company’s annual stockholders meeting, board members William Santana Li, William G. Billings, Robert A. Mocny, and Melvin W. Torrie were re-elected, and BPM LLP was ratified as Knightscope’s independent registered public accounting firm for the fiscal year ending December 31, 2024.
Despite reporting a Q2 gross loss, Knightscope confirmed an increase in the CASE business and expressed optimism about future opportunities with federal agencies and law enforcement. These recent developments may shape Knightscope’s future operations.
InvestingPro Insights
While Knightscope has successfully regained compliance with Nasdaq’s minimum bid price requirement, investors should be aware of the company’s current financial situation. According to InvestingPro data, Knightscope’s market capitalization stands at $22.01 million, reflecting its small-cap status. The company’s revenue for the last twelve months as of Q2 2024 was $11.79 million, with a revenue growth of 16.7% over the same period.
However, InvestingPro Tips highlight some challenges facing the company. Knightscope is currently “quickly burning through cash” and “suffers from weak gross profit margins.” This is evident in the negative gross profit of $3.82 million and a gross profit margin of -32.41% for the last twelve months as of Q2 2024. Additionally, the company is “not profitable over the last twelve months,” with a negative operating income of $28.45 million.
Despite these challenges, it is worth noting that Knightscope has seen a “significant return over the last week,” with a 24.14% price total return. This recent uptick could be related to the company’s regained Nasdaq compliance, as mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Knightscope, providing a deeper understanding of the company’s financial health and market position.
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