MOUNTAIN VIEW, Calif. - Knightscope, Inc. (NASDAQ:KSCP), a company specializing in robotics and AI for public safety, has received an extension from the Nasdaq Hearings Panel to meet the Exchange's Listing Rule 5550(a)(2), commonly known as the Bid Price Rule. The company now has until October 4, 2024, to execute a reverse stock split if necessary and demonstrate compliance with the rule.
The Nasdaq's Bid Price Rule requires listed securities to maintain a minimum closing bid price of $1 per share. Knightscope must secure shareholder approval for the reverse stock split by August 16, 2024, at a ratio that will satisfy this requirement.
Following approval, the company is expected to carry out the reverse stock split by September 20, 2024. To regain compliance, Knightscope must then maintain a closing bid price of at least $1 for a minimum of ten consecutive business days.
In response to shareholders' concerns about their shares being used for short selling, Knightscope has published a blog post addressing the issue of preventing shares from being loaned for short interest positions. The company aims to enhance public safety through its technologies and has stated a long-term goal of making the United States the safest country in the world.
Knightscope's announcement includes forward-looking statements that are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. These statements are based on the company's current expectations and are not guarantees of future performance.
This news is based on a press release statement from Knightscope, Inc. and does not include any subjective assessment or promotional content. The information provided is intended to offer a factual report on the company's compliance status with Nasdaq's requirements and its communication with shareholders regarding the use of their shares.
In other recent news, Knightscope, Inc. has reported a significant increase in revenue and a reduction in net loss for the fiscal year ended December 31, 2023. The company's revenue reached $12.8 million, marking a 128% increase from the previous year, driven by a $2 million increase in net service revenue and a $5.2 million increase in net product sales. Knightscope's net loss for the year improved to $22.1 million, a $3.5 million improvement from the prior year.
In other developments, Knightscope secured new contracts for its emergency communication systems in Minnesota and Texas, and announced the sale of new Autonomous Security Robots (ASRs) and Blue Light Emergency Communication Systems. The company also announced significant growth with 18 new contracts and 5 renewal agreements, collectively valued at over $1 million.
Compliance with both Buy America and the Buy American Act has been achieved, facilitating Knightscope's participation in federal and federally funded state and local projects. These recent developments highlight Knightscope's commitment to enhancing public safety through advanced robotics and AI technologies.
InvestingPro Insights
As Knightscope, Inc. (NASDAQ:KSCP) works towards satisfying the Nasdaq's Bid Price Rule, a glance at the company's financial health through InvestingPro data reveals a challenging landscape. The company's market capitalization stands at a modest $30.68 million, and the revenue for the last twelve months as of Q1 2024 has grown significantly by 60.26%. However, this growth is juxtaposed with a quarterly revenue decline of 22.2% in Q1 2024, highlighting volatility in the company's earnings.
InvestingPro Tips suggest that despite analysts' expectations of sales growth in the current year, Knightscope's stock is considered to be in oversold territory according to the Relative Strength Index (RSI). This could indicate a potential rebound or, conversely, underscore the market's lack of confidence in the stock's immediate prospects. Moreover, the company's gross profit margins have been weak, with a gross profit of -$3.26 million, resulting in a negative gross profit margin of -26.79% for the last twelve months as of Q1 2024.
With the price of Knightscope's stock having fallen significantly over the last three months by 36.65%, and the stock taking a substantial hit over the last six months with a total return of -61.77%, the urgency for a reverse stock split becomes apparent. The company's current price, at the previous close of $0.29, is a mere 12.8% of its 52-week high, reflecting the steep decline faced by shareholders.
For those interested in a deeper dive into Knightscope's financials and future prospects, InvestingPro offers additional insights. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover more InvestingPro Tips that could help inform investment decisions. There are 16 additional tips available on InvestingPro for Knightscope, Inc., providing a comprehensive analysis for potential investors.
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