Executive Summary

Knightscope, Inc. (Nasdaq: KSCP) has published its Annual Report for the fiscal year ended December 31, 2025. This report provides critical updates on the company’s financial position, operational developments, and risk factors of direct relevance to shareholders and potential investors. Knightscope operates in the autonomous security and robotics sector, serving commercial, government, healthcare, education, transportation, and residential markets.

Key Financial Highlights

• Continued Losses: Knightscope has not yet generated any profits and expects to incur continued losses for the foreseeable future. Net loss for 2025 was \$33.8 million, compared to \$31.7 million in 2024. Accumulated deficit stands at \$227.0 million as of December 31, 2025.
• Going Concern Doubts: The company’s independent registered public accounting firm has expressed substantial doubt about Knightscope’s ability to continue as a going concern, due to recurring losses and cash used in operations. This is a significant price-sensitive disclosure that may impact share value, as it raises uncertainty about the company’s ability to sustain operations without additional funding.
• Cash Position: Cash and cash equivalents were \$20.6 million as of December 31, 2025, up from \$11.1 million in 2024. The company remains dependent on fundraising to sustain ongoing operations.
• Listing Status: Knightscope’s Class A Common Stock is listed on the Nasdaq Capital Market under the ticker KSCP. However, the company warns that it may not be able to comply with all applicable listing requirements, which could result in Nasdaq delisting its shares—a material risk for investors.

Operational and Strategic Developments

• Knightscope continues to invest in research and development, including new products such as the K7 ASR, K1 Capsule, and Super Tower. These initiatives are aimed at driving efficiencies and improving margins, but carry significant risks and uncertainties, including possible delays and unanticipated liabilities.
• The company has completed acquisitions, such as Event Risk Acquisition, but warns of risks related to integration, operational disruptions, and unanticipated expenses or liabilities.
• Knightscope’s ability to operate and collect digital information is dependent on privacy laws and corporate client policies, which may limit deployment in some jurisdictions.
• The company’s mission is to make the United States the safest country in the world, with a focus on serving critical infrastructure, retail and hospitality, healthcare, and education markets.

Summary of Principal Risks and Uncertainties

• No Profits to Date: Knightscope has not achieved profitability since its founding in 2013 and has a limited operating history. There can be no assurance that it will generate revenues sufficient to meet debt servicing and payment obligations.
• Need for Additional Funding: The company warns that if it cannot raise additional capital or secure alternative financing, it may have to significantly reduce operations, delay or discontinue product development, or terminate operations entirely.
• Volatile Financial Results: Knightscope’s financial results have fluctuated and will likely continue to do so due to unpredictable sales cycles, client purchasing patterns, and industry developments.
• Potential Nasdaq Delisting: Non-compliance with Nasdaq listing requirements could lead to delisting, affecting share liquidity and price.
• Future Fundraising Needs: The company will need to seek additional funds in the future to continue operations, and failure to do so may result in bankruptcy or cessation of business.
• Stock Price Volatility: Knightscope’s stock price may be volatile due to the above factors, as well as analyst coverage, potential debt or preferred stock issuance, and substantial sales or issuances of securities.
• Adverse Economic Conditions: The report highlights risks from inflation, trade tariffs, international trade restrictions, and adverse developments in the financial services industry.
• ESG Pressures: Increasing attention to environmental, social, and governance (ESG) initiatives could increase costs or harm reputation.
• Regulatory Risks: Knightscope faces complex and changing laws, including privacy, data, and operational regulations, with potential for fines, penalties, or increased costs if non-compliant.
• Integration Risks: Acquisitions pose risks of unanticipated expense, regulatory changes, and difficulties in assimilating new businesses.

Important Shareholder Information

• Shares Outstanding: As of March 25, 2026, Knightscope reported 15,954,347 shares of Class A Common Stock and 335,068 shares of Class B Common Stock outstanding.
• Regulatory Filings: Knightscope files reports and updates with the SEC, available at www.sec.gov and ir.knightscope.com.

Potential Price Sensitive Issues

• The substantial doubt about Knightscope’s ability to continue as a going concern, as flagged by its auditors, is material and may directly impact share value.
• Risks related to Nasdaq listing compliance could affect liquidity and share price.
• Ongoing losses and the need for additional fundraising are material uncertainties for shareholders.