Large scale dilution: shares outstanding increased by more than 50% in 3 months. Despite spending big on robots, the most of the revenue growth isn’t from robots sales. Stock price is supported by heavy promotion targeting retail investors. Almost daily PRs of new contracts with no details Google ads Knightscope stopped reporting important KPIs after Q3 2021. We believe this is an intentional effort to obscure the true economics of the business and hide poor performance.

Knightscope claims their robots “fight crime” but in reality they’re “Roombas” with cameras. Knightscope is short on cash and will likely dilute shareholders to raise capital. Knightscope has an active $93m shelf and an ATM, from which it can issue shares. As of July 14, 2023, Knightscope is no longer subject to Baby Shelf Rule and can now take full advantage of the $93m shelf. Operations are funded through toxic dilution and crowdfunding.