Things are looking rough for Knightscope and its investors. The company is a consistent money loser. It has lost between $5M and $10M a quarter now for years. At the end of September they had $11M in cash on hand. It was no surprise when at the start of this year they needed to raise more money. They had to do so through an At The Market (ATM) arrangement, meaning they are selling shares and diluting everyone else's shares. This explains why the share price is in a nosedive.

If you think people are panic selling KSCP shares, you are mostly wrong. The company itself is panic selling KSCP shares. The problem is that the more shares they sell, the more the price drops, and the more diluted everyone's shares become. So then they need to sell even more shares to raise the cash to keep the company afloat.

They need to sell those shares quickly too! They are coming to the end of a 4 month period where they didn't release any SEC filings. So they have been able to hide their poor finances for a while. When they do drop the figures for Q4 and the full year 2022 it'll be even tougher for them to get investors interested. Because there is no chance this company can get to profitability.

To give you an idea how far from profitability let's look at some numbers from Q3.

They brought in only $1.3M in revenue.
Here is what they spent: $2.2M to create what they sold $2.1M in R&D $1.9M in Sales and Marketing $2.9M in General and Administrative.

Those numbers are terrible and they haven't been improving over time. Knightscope isn't a company that is meant to sell products and services, it is a company that is meant to sell stock. The CEO has played this game before and the stakeholders lost those times too.

That should explain why they are going to go bankrupt. Here are some reasons why they will go bankrupt quickly.
1. They have no assets to borrow against. They own no real estate, no equipment that can be sold or borrowed against, when they can't raise a couple of million dollars a month by selling stock, it will be over.
2. The management team has a history of going bankrupt, their reputation is like having a 300 credit score. When their business breaks down, no one will lend them money to keep it running.
3. No one is really interested in what they offer. The sales of security robots have not taken off. There is not strong customer interest in the robots. There is no strong interest in the stock either. The only press you see is released by the company on Businesswire and it typically relates to the call-box business they acquired.