Knightscope, Inc., a company specializing in communications equipment, announced a reverse stock split of its Class A and Class B common stock, effective after market hours on September 13, 2024. The reverse stock split, approved by the board on September 4, 2024, will be at a ratio of 1-for-50 for both classes of stock.
The decision follows the annual stockholders meeting on August 16, 2024, where amendments to the company's certificate of incorporation were approved, allowing for a reverse stock split at a ratio determined by the board. The reverse stock split is expected to streamline the company's capital structure.
Trading on a split-adjusted basis for Class A common stock under the ticker KSCP on the Nasdaq Capital Market will begin on Monday, September 16, 2024. The new CUSIP number for the Class A Common Stock will be 49907V 201 post-split.
Stockholders who would otherwise hold a fractional share will receive a cash payment instead, calculated based on the closing price per share on the Nasdaq on the effective date of the reverse stock split. This measure ensures that all stockholders retain a whole number of shares post-split.
This strategic move by Knightscope is detailed in the company's latest SEC filing and includes forward-looking statements regarding the timing and effects of the reverse stock split. While the company has outlined its expectations, it also acknowledges the risks and uncertainties inherent in such projections, as discussed in its annual and other SEC filings.
The information provided in this article is based on Knightscope's recent SEC filing.
In other recent news, Knightscope, a developer of artificial intelligence and robotics technology for public safety, has seen a series of significant developments. The company recently expanded its contract with a California healthcare provider, adding an additional K5 Autonomous Security Robot (ASR) to its fleet. The move follows the successful deployment of the first K5 ASR in 2023 and marks an enhancement in security measures at a second location.
In the company's annual stockholders meeting, board members William Santana Li, William G. Billings, Robert A. Mocny, and Melvin W. Torrie were re-elected. BPM LLP was ratified as Knightscope's independent registered public accounting firm for the fiscal year ending December 31, 2024.
During a recent earnings call, Knightscope acknowledged a Q2 gross loss and challenges related to a controversial financing deal. However, the company confirmed an increase in the CASE business and expressed optimism about future opportunities with federal agencies and law enforcement. These are recent developments that may shape Knightscope's future operations.
InvestingPro Insights
As Knightscope, Inc. navigates through its strategic reverse stock split, real-time data from InvestingPro provides a snapshot of the company's current financial landscape. With a market capitalization of $35.36 million, Knightscope's valuation reflects the challenges it faces, including a negative P/E ratio of -0.84, indicating that the company is not currently profitable.
In line with this, one of the InvestingPro Tips suggests that analysts do not expect the company to be profitable this year. Furthermore, the company's stock price has experienced a significant decline over the past year, as evidenced by a year-to-date price total return of -61.43%. The volatility of Knightscope's stock is further underscored by a 21.15% price increase over the last month, yet a sharp 74% decline over the past year.
InvestingPro also highlights some concerning financial metrics for Knightscope. The company has a negative gross profit margin of -32.41% for the last twelve months as of Q2 2024, which aligns with another InvestingPro Tip pointing out the company's weak gross profit margins. This data, coupled with the company's moderate level of debt, suggests that investors should be cautious and consider the long-term potential and risks associated with the stock.
For those interested in a deeper dive into Knightscope's financial health and stock performance, additional InvestingPro Tips are available, providing a comprehensive analysis of the company's outlook. Visit https://www.investing.com/pro/KSCP for a suite of tips tailored to investors seeking to make informed decisions regarding Knightscope's future.
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