Form 4: Knightscope CFO Awarded 710,352 Stock Options

Knightscope, Inc. has granted Executive Vice President and CFO Apoorv Dwivedi options to purchase 710,352 shares of Class A Common Stock at an exercise price of $2.55.

Summary

• Apoorv Dwivedi, the EVP, CFO, and Secretary of Knightscope, Inc., received a significant grant of stock options on June 4, 2026.
• The grant consists of 710,352 options to purchase Class A Common Stock.
• The exercise price for these options is set at $2.55 per share.
• The options follow a four-year vesting schedule, with 25% vesting annually starting June 4, 2027.
• The options are set to expire on June 3, 2036, provided service conditions are met.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive development, as it secures key leadership and aligns their interests with shareholders, despite the minor dilutive impact.

Positives

• Aligns executive compensation with long-term shareholder value through a multi-year vesting period.
• Ensures the retention of the Chief Financial Officer through at least June 2030.
• The exercise price of $2.55 establishes a clear performance benchmark for management.

Negatives

• Potential future dilution of Class A Common Stock by 710,352 shares upon exercise of the options.
• The value of the compensation is entirely dependent on the stock price exceeding $2.55, which may not occur if market conditions or company performance falter.

Risks

• Dilution risk for existing shareholders if the options are fully exercised in the future.
• Retention risk if the executive leaves before the vesting dates, though this would result in the forfeiture of unvested options.
• Market volatility could keep the stock price below the exercise price, reducing the incentive value of the grant.

Future Outlook

The grant implies a long-term commitment to executive stability, with vesting extending through mid-2030, suggesting management's focus on sustained growth over the next four years.

Management Comments

• Apoorv Dwivedi serves as the Executive Vice President, Chief Financial Officer, and Secretary.
• The grant is subject to the reporting person's continued employment or service through each vesting date.

Industry Context

StockSavvy.ai notes that equity-based compensation is a standard mechanism in the technology and robotics sectors to attract and retain high-level talent while conserving cash for operational growth.

Comparison to Industry Standards

• The four-year vesting schedule is consistent with standard practices for NASDAQ-listed technology companies.
• The grant size is substantial for a CFO role, reflecting the critical nature of financial leadership in capital-intensive robotics firms.
• The use of stock options rather than restricted stock units (RSUs) places a higher emphasis on actual share price appreciation.

Corporate Governance

Related Party Transactions

• The grant of 710,352 stock options to Apoorv Dwivedi, an executive officer, constitutes a related party transaction under standard compensation disclosures.

Stakeholder Impact

• Shareholders: May experience dilution of approximately 710,352 shares if options are exercised.
• Management: Apoorv Dwivedi receives a significant performance-based incentive tied to the company's stock price.

Next Steps

• First vesting of 177,588 options scheduled for June 4, 2027.
• Annual vesting installments to continue through June 4, 2030.

Key Dates

Recommendation

This is a routine executive compensation filing. While it shows commitment to the CFO, it does not provide new fundamental data about the company's operations or revenue that would trigger a change in investment rating.

Keywords

Knightscope, KSCP, Stock Options, Executive Compensation, CFO, Apoorv Dwivedi, Class A Common Stock, Vesting Schedule, Incentive Plan