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Investment Opportunities

Knightscope IPO: What Investors Should Know About KSCP Stock

The anticipated Knightscope IPO is coming to the market. The robotics company will trade on the Nasdaq under the ticker KSCP. Here’s what we know…

Knightscope IPO: About the Robotics Company

Knightscope IPO

William Santana Li and Stacy Dean Stephens launched Knightscope in 2013. The advanced security technologies company builds autonomous security robots (ASRs). The company is on a mission to make America the safest country in the world.

The shootings at Sandy Hook, the Boston bombings and the attack on 9/11 led Li and Stephens to create Knightscope. By building ASRs that deter, detect and report, Knightscope aims to build a safer future.

Knightscope’s products include the K1 Stationary, K3 Indoor and K5 Outdoor. The company is also working to bring the K7 Multi-Terrain concept to the market. In addition, Knightscope offers a user interface, KSOC, that couples with ASRs. The software helps to increase situational awareness among officers and guards.

Knightscope’s clients range from hospitals to commercial real estate. Its ASRs operate in airports and warehouses, as well as Fortune 1000 companies and law enforcement agencies.

Knightscope Stock: The Company’s Progress

Here’s a timeline of Knightscope’s milestones since inception…

April 2013 – Knightscope launches in Silicon Valley, CA

December 2013 – The first fully functional autonomous robot (K5) is shown

May 2015 – Knightscope deploys first K5 robots in a shopping center in Silicon Valley

April 2016 – Knightscope announces the K3 – an indoor autonomous security robot

August 2017 – Knightscope announces the K1 – a stationary security robot

September 2018 – Knightscope deploys robot for first local government contract

June 2019 – Huntington Park Police deploys “Robocop” to monitor public areas

April 2019 – Knightscope unveils facial recognition capabilities

June 2020 – Knightscope receives its first Federal purchase order

The company’s growth makes a Knightscope IPO an interesting prospect. Furthermore, let’s dive into the company’s finances…

Knightscope IPO: Financial Data

Detailed financial information is in the Knightscope IPO prospectus, allowing you to gain more insight into the company’s finances. If you’re in the market for KSCP stock, let’s look at the details.

Knightscope highlights some key information for investors. The company’s profit and loss statement and balance sheet data are as follows…

Revenue: Knightscope had a small increase in revenue. Knightscope recorded $3 million in revenue for the year 2019. Revenue for 2020 slightly rose to $3.3 million. For the six months ended June 30, 2021, the company reported $1.8 million in revenue.

Net Income (Loss): Knightscope’s net losses have skyrocketed. The company recorded $12 million in net losses in 2019. Net losses nearly grew over 60% to $19.3 million in 2020. For the six months ended June 30, 2021, Knightscope reported $22.7 million in losses.

Total Assets and Total Liabilities: Knightscope’s total assets and total liabilities have grown. The company recorded $7.7 million in total assets and $11.5 million in total liabilities as of December 2019. As of June 30, 2021, Knightscope has $17.5 million in total assets and $24.4 million in total liabilities.

Cash: Knightscope’s cash flows have soared. The company recorded $700,000 in cash in 2019. In 2020, cash grew to $7.1 million. Furthermore, the company has $12.1 million in cash for the six months ended June 30, 2021.

Knightscope has raised over $95 million from investors since its inception. Moreover, the company plans to show gratitude to investors by giving them first access to the Knightscope IPO.

The Knightscope IPO Will Open to Investors First

Knightscope announced a unique approach to going public by abandoning the traditional IPO process. Instead, Knightscope is prioritizing its 28,000 investors in its IPO…

In a traditional IPO, the majority, if not all, of the IPO shares would be bought by Wall Street and the allocation of these shares to Main Street retail investors just about disappears. If Main Street wants to buy them, you can just wait in line until the shares are listed and buy them along with everyone else in the public markets.

We don’t think that this cookie-cutter approach is right for us and our awesome stockholders that have stood by us through thick and thin. All 28,000 of you helped create Knightscope, and we believe it’s only right to prioritize you and ensure you have the first chance to buy the shares in a public listing, and only after that, will we offer them to Wall Street and the general public. Repeat: Our investors, that supported us through this journey go first!

Knightscope IPO: Use of Proceeds

Knightscope will use the net proceeds of its IPO to fund working capital and growth capital. The company hopes to increase sales by optimizing its ASR production.

The company plans to raise $40 million in the Knightscope IPO. After estimated expenses are taken into account, Knightscope expects to have around $36 million left. It will use the money as follows…

  • $15 million toward new technology development. This will fund added product development of new versions of the ASRs. Additionally, it will cover technological upgrades, systems and process improvements.
  • $15 million towards new machines-in-network. Funds will finance the manufacturing of more K1, K3 and K5 ASRs to support the expansion nationwide.
  • $6 million toward general corporate and business purposes.

When Will Knightscope IPO?

Knightscope announced plans for an IPO at its 2021 Shareholder Meeting on September 21. The company is in the process of filing paperwork with the SEC and few details have become public about the Knightscope IPO. Although, the company has reserved the ticker symbol KSCP.

Knightscope plans to raise up to $40 million in its offering. KSCP shares will trade on the Nasdaq. According to the latest filing, the company plans to offer four million shares of common stock for $10 per share.

The company states it’s currently undergoing a “Testing the Waters” regulatory period…

Knightscope has kicked off the process of moving forward with a public listing to trade on NASDAQ and is gathering investor interest utilizing the “Testing the Waters” regulatory period. This allows us to speak publicly about the process without running afoul of regulatory compliance items, such as the “Quiet Period”, that is typically associated with a traditional initial public offering. We intend to file the required documents with the Securities and Exchange Commission (“SEC”) for review… In the meantime, as indicated above, we can begin to accept indications of interest from our existing shareholders.

There is no set date for the Knightscope IPO. But check back here for the latest updates on KSCP stock.

For more autonomous technology investing opportunities, check out the Aurora SPAC IPO.

As always, make sure to research before you invest. IPOs can be volatile for the first few months and share prices are constantly changing. But if IPO investing interests you, check out our top recent IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and filed IPOs.


About

Aimee Bohn graduated from the College of Business and Economics at Towson University. Her background in marketing research helps her uncover valuable trends. Researching IPOs and other trends has been her primary focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphic design or traveling with friends.

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