KSCPHIGH SIGNALFINANCIAL10-K

KSCP shows massive dilution with Class A shares increasing 143% while operating cash flow deteriorated 35% to -$30.3M despite significant capital raising.

The company raised substantial capital (cash up 85% to $20.6M, equity up 76% to $27.8M) but at the cost of extreme shareholder dilution, with outstanding Class A shares jumping from 6.5M to 15.9M shares. Despite this capital infusion, operating cash burn worsened significantly, and the company removed its core mission statement language about making America safer, suggesting potential strategic uncertainty during a critical growth phase.

Comparing 2026-03-27 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

KSCP's financials reflect a capital-intensive growth company burning through cash at an accelerating rate, with operating cash flow deteriorating from -$22.5M to -$30.3M while R&D spending surged 77% to $12.5M. The company successfully raised capital as evidenced by the 85% increase in cash and 76% growth in stockholders' equity, but this came with massive dilution as Class A shares outstanding increased 143%. While assets grew 46% and the balance sheet strengthened, the widening gross losses and increased cash burn signal mounting operational challenges despite the influx of new funding.

FINANCIAL STATEMENT CHANGES
Capital Expenditure
Cash Flow
+1420.9%
$43K→$654K

Capital expenditure jumped 1420.9% — major investment cycle underway; assess returns on deployment.

Cash & Equivalents
Balance Sheet
+84.9%
$11.1M→$20.6M

Cash position surged 84.9% — strong cash generation or capital raise providing significant financial cushion.

R&D Expense
P&L
+76.8%
$7.1M→$12.5M

R&D investment increased 76.8% — signals commitment to future product development, though near-term margin impact.

Stockholders Equity
Balance Sheet
+75.9%
$15.8M→$27.8M

Equity base grew 75.9% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Current Assets
Balance Sheet
+74.7%
$15.1M→$26.4M

Current assets grew 74.7% — improving short-term liquidity or inventory/receivables build.

Total Assets
Balance Sheet
+46.4%
$28.2M→$41.3M

Asset base grew 46.4% — expansion through organic growth, acquisitions, or capital deployment.

Operating Cash Flow
Cash Flow
-35.1%
-$22.5M→-$30.3M

Operating cash flow fell 35.1% — earnings quality concerns; investigate working capital changes and non-cash items.

Gross Profit
P&L
-29.1%
-$3.7M→-$4.8M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Inventory
Balance Sheet
+29%
$1.8M→$2.3M

Inventory built 29% — monitor whether demand supports this build or if write-downs may follow.

Accounts Receivable
Balance Sheet
+23.7%
$1.7M→$2.1M

Receivables grew 23.7% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-03-27
PRIOR — 2025-03-31
ADDED
As of March 25, 2026, there were 15,947,845 shares of the registrant s Class A Common Stock and 335,068 shares of the registrant s Class B Common Stock outstanding .
Investment in new products and services may not achieve expected returns and could disrupt our ongoing business, present risks not originally contemplated and materially adversely affect our business, reputation, results of operations and financial condition.
We are subject to the loss of contracts, due to terminations, non-renewals or competitive re-bids, which could adversely affect our results of operations and liquidity, including our ability to secure new contracts from other customers The failure to identify, consummate, effectively integrate or realize the expected benefits from acquisitions could adversely affect our growth and our business, financial condition, and results of operations.
The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business.
Our ability to operate and collect digital information on behalf of our clients is dependent on the privacy laws of jurisdictions in which our ASRs operate, as well as the corporate policies of our clients, which may limit our ability to fully deploy our technologies in various markets.
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REMOVED
As of March 31, 2025, there were 6,564,466 shares of the registrant s Class A Common Stock and 336,759 shares of the registrant s Class B Common Stock outstanding .
Business Overview Our mission is to make the United States of America the safest country in the world by helping to protect the people, places, and assets where we live, work, study and visit.
Through strategic market expansion, increased ASR adoption, and continued innovation, we aim to redefine public safety with a comprehensive, technology-driven approach.
As we execute on our growth strategy, we remain committed to delivering scalable, effective solutions that enhance safety, deter crime, and provide peace of mind to organizations and communities nationwide.
is a Silicon Valley based, public safety innovator that builds Autonomous Security Robots and Emergency Communication Devices.
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