Knightscope, Inc., a company specializing in communications equipment manufacturing, announced today that it believes it has met the Nasdaq Capital Market's minimum stockholders' equity requirement following an automatic conversion of preferred stock into common stock. This conversion occurred on May 15, 2024, when shares of the company's Super Voting Preferred Stock and Ordinary Preferred Stock were automatically converted into Class B and Class A common stock, respectively.
Previously, Knightscope had not satisfied the Nasdaq's Equity Standard as its stockholders' equity was below the required $2.5 million minimum as of March 31, 2024. However, based on preliminary estimates, the company now expects that it has achieved compliance with the minimum stockholders' equity requirement as a result of this conversion.
It is important to note that these estimates are based on preliminary unaudited information and management's estimates. They have not been reviewed or audited by the company's independent registered public accounting firm. Therefore, the actual stockholders' equity may differ from these preliminary estimates, and the company's financial condition or results of operations could vary in future reports.
Knightscope's compliance with the Nasdaq listing requirements is crucial for its continued presence on the exchange, which can affect investor perception and the liquidity of its shares. This press release statement serves as the source of the information presented.
In other recent news, Knightscope, Inc., a security robotics developer, reported substantial financial growth, achieving $12.8 million in revenue for the fiscal year ending December 2023, marking a 128% increase from the previous year. The company also managed to reduce its net loss to $22.1 million, improving by $3.5 million compared to the prior year. Knightscope secured a contract with an Ivy League university for a custom K1 Blue Light Tower, and renewed its contract with Pechanga Resort Casino for the seventh year, signaling a broader implementation of its technology. Knightscope also received an extension from the Nasdaq Hearings Panel to meet the Exchange's Listing Rule 5550(a)(2), with a deadline set for October 2024.
The company further showcased its commitment to public safety through new contracts for its emergency communication systems in Minnesota and Texas. Knightscope's certification for compliance with both Buy America and the Buy American Act was announced, facilitating its participation in federal and federally funded state and local projects.
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