SCHEDULE 13G: Empery Asset Management Discloses 9.99% Passive Stake in Knightscope, Inc.

Empery Asset Management, LP and its managing members have disclosed a 9.99% beneficial ownership stake in Knightscope, Inc.'s Class A Common Stock, held for passive investment purposes.

Summary

• Empery Asset Management, LP, along with Ryan M. Lane and Martin D. Hoe (collectively, the "Reporting Persons"), have filed a Schedule 13G indicating their beneficial ownership in Knightscope, Inc.
• The Reporting Persons collectively beneficially own 418,303 shares of Knightscope, Inc.'s Class A Common Stock.
• This ownership represents 9.99% of the outstanding Class A Common Stock of Knightscope, Inc.
• The reported beneficial ownership includes 121,873 shares of Common Stock that are issuable upon the exercise of warrants.
• The percentage of class is calculated based on an aggregate of 4,065,347 shares of Common Stock, which includes 3,875,350 shares outstanding as of November 22, 2024, and an additional 189,997 shares issued from warrant exercises between November 22, 2024, and December 31, 2024.
• A 'Blocker' provision in the warrants prevents the Reporting Persons from exercising warrants if it would result in their beneficial ownership exceeding 9.99% of the outstanding shares.
• The shares are stated to be acquired and held in the ordinary course of business, not for the purpose of changing or influencing the control of Knightscope, Inc.

Sentiment

Score: 7

Explanation: The disclosure of a significant 9.99% passive stake by an institutional investor like Empery Asset Management is generally a positive signal, indicating confidence in the company. The 'blocker' provision is a minor limitation but does not detract significantly from the overall positive sentiment of institutional interest.

Positives

• An institutional investor, Empery Asset Management, LP, has taken a significant 9.99% stake in Knightscope, Inc., which can be interpreted as a signal of confidence in the company's prospects.

Negatives

• The 'Blocker' provision limits the Reporting Persons' ability to increase their beneficial ownership beyond 9.99% through warrant exercises, potentially capping their immediate influence or further accumulation.

Risks

• The 'Blocker' provision in the warrants restricts the Reporting Persons from exercising warrants if it would cause their beneficial ownership to exceed 9.99% of the outstanding shares, thereby limiting their potential upside from full warrant exercise.

Future Outlook

The document states that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer. No specific forward-looking statements or guidance from Knightscope, Inc. are provided in this filing.

Industry Context

Knightscope, Inc. operates in the autonomous security robot industry. This filing indicates a significant passive investment by Empery Asset Management, LP, an investment manager, suggesting institutional interest in companies within the technology and security sectors. This type of disclosure is a standard regulatory filing for significant passive ownership stakes.

Comparison to Industry Standards

• This document is a beneficial ownership disclosure (Schedule 13G) and does not contain financial performance metrics, operational results, or strategic updates that would allow for a direct comparison to industry-specific benchmarks, comparable companies, or projects. The filing's sole purpose is to report a passive ownership stake.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional investor holding a 9.99% stake may increase investor confidence and potentially influence stock price due to perceived institutional validation.

Next Steps

• The Reporting Persons will continue to hold their shares in the ordinary course of business.

Key Dates

Keywords

Knightscope, Empery Asset Management, Schedule 13G, beneficial ownership, Class A Common Stock, investment, SEC filing, passive stake, warrants