Financial Results Announcement - Cloudastructure, Inc. announced its financial results for the quarter ended March 31, 2025[5]. - The press release detailing the financial results was issued on May 15, 2025[5]. - No specific financial metrics or performance indicators were disclosed in the provided content[5]. - The document does not include any information on user data, future outlook, or new product developments[5]. Company Classification and Listing - The company is classified as an emerging growth company under the Securities Act[4]. - The trading symbol for Cloudastructure, Inc. is CSAI, listed on the Nasdaq Capital Market[3]. Corporate Information - The principal executive office is located at 228 Hamilton Road, Palo Alto, California[1]. - The report was signed by Greg Smitherman, Chief Financial Officer[13]. - The filing includes an interactive data file with embedded XBRL tags[8]. Financial Standards - The company has not elected to use the extended transition period for new financial accounting standards[4].

Revenue Growth - Total revenue increased by $501,148, or 212%, from $236,677 for the three months ended March 31, 2024, to $737,825 for the same period in 2025, driven by a 38% increase in locations using services[99]. - Cloud video surveillance subscriptions increased by 79%, remote guarding increased by 164%, hardware sales increased by 241%, and installation labor sales increased by 397% compared to the same period in 2024[99]. Expenses - Cost of goods sold increased by $154,242, or 61%, from $253,232 for the three months ended March 31, 2024, to $407,473 for the same period in 2025[103]. - General and administrative expenses increased by 114% for the three months ended March 31, 2025, primarily due to a one-time bonus of $323,000 paid to employees[107]. - Research and development expenses increased by 71% for the three months ended March 31, 2025, with payroll increasing by $237,000 due to a one-time bonus[108]. Net Loss - Net loss for the three months ended March 31, 2025, was $2.5 million, compared to a net loss of $1.7 million for the same period in 2024, representing a 46% increase in loss[111]. Cash Position - Cash and cash equivalents at the end of the period were $6.845 million for the three months ended March 31, 2025, compared to $(1.028) million for the same period in 2024[115]. - Net cash provided by financing activities was $9.4 million for the three months ended March 31, 2025, compared to approximately $0 for the same period in 2024[120]. - As of March 31, 2025, the company had approximately $6.9 million in cash and $6.8 million in working capital, expecting current cash to fund operations through at least Q1 2026[126]. Future Outlook - The company anticipates entering additional markets in 2025 and 2026, focusing on expanding its customer base in the property management space[89]. - The company expects to incur additional losses for the foreseeable future as it continues to expand and develop new products and services[125]. - The company has an accumulated deficit of approximately $43.4 million as of March 31, 2025, and expects to continue incurring operating losses and negative cash flows for the foreseeable future[128]. - The Series 2 Purchase Agreement and Equity Purchase Agreement may provide necessary funding for the next 12 months, but their execution is subject to conditions beyond the company's control[127]. Financial Management - The company has a planning and budgeting process to monitor operating cash requirements, including capital expenditures, general and administrative costs, and public company operating costs[129]. - Contractual obligations primarily relate to operating lease obligations, capital lease obligations, and insurance obligations, which are generally terminable after a notice period[130]. - The company does not have any long-term debt or significant long-term liabilities as of the reporting period[131]. Regulatory Status - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions[133]. - The company has elected to use an extended transition period for complying with new accounting standards, which may affect the comparability of its financial statements[134]. - The company is not required to provide certain disclosures related to executive compensation due to its status as an emerging growth company[138]. - The company evaluates its accounting estimates and assumptions on an ongoing basis, which may impact reported amounts of assets, liabilities, revenue, and expenses[140].

Core Insights - Cloudastructure, Inc. has secured its largest customer contract in history with a premier global real estate investment firm, marking a significant milestone in the company's growth trajectory [1][3] - The client is a leader in luxury multifamily development, and Cloudastructure will provide AI-powered surveillance solutions for a flagship Class-A high-rise property in Houston, Texas [2][3] - The agreement highlights the increasing demand for cloud-based, AI-driven surveillance solutions in the real estate sector, with Cloudastructure deploying a full suite of security solutions for 24/7 monitoring and real-time threat response [3][4] Company Overview - Cloudastructure is headquartered in Palo Alto, California, and offers a scalable cloud-based security platform featuring advanced AI/ML analytics and remote guarding solutions [5] - The company's platform allows for proactive, end-to-end security, with a value proposition that includes contract-free, month-to-month pricing and unlimited 24/7 support [5] - Cloudastructure claims to achieve up to a 75% lower Total Cost of Ownership compared to other systems, enhancing situational awareness and crime prevention [5] Industry Trends - The contract signifies a shift in the real estate industry's approach to physical security, moving from traditional CCTV and guards to scalable, AI-driven solutions [4] - There is rising investor confidence in AI-powered surveillance technologies, particularly among institutional owners managing Class A and B assets [4] - The deployment of intelligent surveillance is becoming critical in luxury real estate, reinforcing the importance of advanced security measures in high-end developments [2][4]

Core Insights - Cloudastructure, Inc. has partnered with a leader in affordable housing to enhance security in multifamily communities in Atlanta, marking the first phase of a nationwide security modernization initiative [1][5] - The affordable housing sector, with over 11 million renter households in the U.S., is under pressure to ensure safety and operational efficiency while managing limited resources [2] - Cloudastructure's AI Surveillance platform offers real-time detection and deterrence, achieving a 97% average deterrence rate since 2023, reducing reliance on on-site guards and liability claims [3] Company Overview - Cloudastructure's platform utilizes a scalable cloud-based architecture featuring AI/ML analytics and remote guarding solutions, enabling proactive security and a lower Total Cost of Ownership by up to 75% compared to other systems [6] - The company aims to address the underserved affordable housing market within the $3.5 trillion U.S. multifamily industry, presenting opportunities for PropTech solutions that enhance security and operational efficiency [5]

Core Insights - Cloudastructure, Inc. has secured an additional $3 million investment from an existing institutional investor through Series 2 Convertible Preferred Stock to support its expansion and advancement of AI-powered security solutions [1][3] - The Series 2 Convertible Preferred Stock was issued at a price of $1,000 per share, carrying a 9.5% annual preferred return and is convertible into Class A common stock under specified terms [2] - This investment follows a successful $4.5 million raise last month, reinforcing the momentum generated after the company's direct listing on the Nasdaq Capital Market [3] Company Overview - Cloudastructure is a leading provider of cloud video surveillance solutions, utilizing AI and machine learning analytics for real-time monitoring and incident response [4][6] - The company's security solutions are applicable across various sectors, including commercial real estate, education, healthcare, and government, significantly improving security outcomes while reducing total cost of ownership [4][6] - Cloudastructure's platform offers a cost-effective model that eliminates proprietary hardware, provides contract-free month-to-month pricing, and includes unlimited 24/7 support, achieving up to a 75% lower Total Cost of Ownership compared to other systems [6]

Funding and Financial Performance - Cloudastructure raised over $35 million in funding in early 2021, enabling the establishment of a sales, marketing, and support structure, leading to contracts with five of the top 10 property management companies in the U.S.[20] - The company has incurred net losses of approximately $7.04 million and $11.4 million for the fiscal years ended December 31, 2023, and December 31, 2022, respectively, indicating a significant accumulated deficit[115] - The company anticipates sustaining operating losses for the foreseeable future as it expands its team and invests in research and development[116] - Substantial additional capital will be required to finance operations, and failure to raise such capital could delay or eliminate research and development programs[117] - The company may need to seek additional funding sooner than planned due to changing circumstances that could consume capital faster than anticipated[118] - For the fiscal year ended December 31, 2024, the company incurred a net loss of approximately $6,535,000 and had an accumulated deficit of approximately $40,856,000[124] - The company raised over $35 million in funding through an offering under Regulation A of the Securities Act and the sale of preferred stock since inception[125] - On January 29, 2025, the company closed a Series 1 Equity Financing, issuing $6,300,000 of Series 1 Convertible Preferred Stock[126] - The company has an Equity Purchase Agreement with Atlas Sciences, allowing for the purchase of up to $50,000,000 of Class A common stock over 24 months[127] - The Series 2 Equity Financing allows the company to issue up to $40,000,000 of Series 2 Convertible Preferred Stock, with an initial closing of $4,500,000 on March 25, 2025[128] - The company may face dilution of ownership interest if additional capital is raised through equity or convertible debt securities[122] - The company does not anticipate paying cash dividends on its Class A common stock in the foreseeable future, focusing instead on funding growth and operations[142] Market Potential and Growth - The global proptech market is projected to grow from $36.6 billion in 2024 to $89.93 billion by 2033, with a compounded annual growth rate of 11.9%, indicating significant market potential for Cloudastructure's services[56] - The worldwide AI market was estimated at $500 billion in 2023, growing at an annual rate of 19%, while the public cloud market was around $490 billion, growing at 20.7%, highlighting the favorable market conditions for Cloudastructure[54] - The company is focused on expanding into additional markets in 2025, aiming to enhance its customer base in the property management sector[20] - The video surveillance market is expected to grow significantly due to increased demand for security applications across various sectors, including government and healthcare[59] Product and Service Offerings - The company's Remote Guarding services deterred over 97% of all threatening activity for customers from 2023 to the date of the report, showcasing the effectiveness of their AI-driven security solutions[43] - Cloudastructure operates under a cloud services delivery model, pricing products and services on a per camera per year basis, which is expected to generate greater recurring revenue compared to competitors[52] - Cloudastructure's AI and machine learning capabilities allow for improved accuracy in surveillance, reducing false positives and negatives, which enhances overall service quality[45] - The company offers a Mobile Surveillance Trailer solution, a new product that is solar and battery-powered, connecting to their cloud services for enhanced security[32] - Cloudastructure is leveraging AI and machine learning to provide a centralized security system, addressing the growing market need[60] - The company has established contracts with five of the top 10 property management firms, aiming to standardize its AI security solutions across their portfolios[63] Customer and Market Relationships - For the year ended December 31, 2024, key customers included SunRoad Enterprises (18% of revenue), Fairfield Properties (9%), and Wingate (9%) among others[64] - Customer testimonials highlight the effectiveness of Cloudastructure's solutions, with significant improvements in security and crime prevention reported[65] - Major customers accounted for a significant portion of revenue, with SunRoad Enterprises at approximately 18%, Avenue 5 at approximately 11%, and Fairfield Residential at approximately 9% for the year ended December 31, 2024[132] - The company has a limited number of customers, which poses risks to revenue stability and bargaining power[132] Operational and Compliance Risks - The company is subject to evolving privacy and data protection laws, including the California Consumer Privacy Act and the California Privacy Rights Act, which may increase compliance costs[75] - The company does not hold any patents or trademarks but relies on confidentiality agreements and legal rights to protect its intellectual property[77] - The company faces risks related to data breaches, which could result in significant liabilities and harm its reputation, with potential costs including fines and litigation expenses[83] - Evolving privacy regulations, such as the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA), impose new operational requirements and could increase legal exposure for the company[84] - The company is highly dependent on attracting and retaining skilled personnel, with significant competition for experienced employees impacting its ability to execute its business plan[86] - The competitive landscape in the security industry is intense, with well-capitalized competitors holding a majority market share, which could adversely impact the company's market position[95] - The company relies on third-party suppliers for hardware and software solutions, and any failure by these suppliers to meet expectations could adversely affect its operations[99] - Compliance with privacy and data security laws may increase operational costs and delay the deployment of new products, potentially reducing demand for the company's services[90] Financial Condition and Capital Requirements - The company is developing complex technology that requires significant technical and regulatory expertise, and failure to successfully commercialize its products could adversely affect its financial condition[82] - Operating as a public company will incur increased costs and require substantial management time for compliance initiatives, impacting financial resources[104] - The company has implemented cybersecurity measures to protect sensitive data, but cannot guarantee complete security against future threats[162] - The company’s facilities are considered adequate for current and near-term needs, with the possibility of obtaining additional space if necessary[167] Revenue and Expense Trends - Total revenue increased approximately $757,000, or approximately 125%, from approximately $607,000 for the year ended December 31, 2023, to approximately $1,364,000 for the year ended December 31, 2024[194] - Cloud video surveillance subscriptions increased by approximately 48%, remote guarding increased by approximately 404%, and hardware increased by approximately 250% over the same period in 2023[194] - Cost of goods sold increased approximately $265,000, or approximately 36%, from approximately $725,000 for the year ended December 31, 2023, to approximately $990,000 for the year ended December 31, 2024[196] - Operating expenses decreased by approximately $2,029,000 or approximately 24%, from approximately $8,594,000 for the year ended December 31, 2023, to approximately $6,565,000 for the year ended December 31, 2024[198] - Non-cash expenses increased by approximately $571,000 or approximately 34%, from approximately $1,674,000 for the year ended December 31, 2023, to approximately $2,245,000 for the year ended December 31, 2024[199] - Net cash used in operating activities for the year ended December 31, 2024, was approximately $3,277,000, reflecting a net loss of $6,535,000[210] - Cash and cash equivalents at the end of the period for the year ended December 31, 2024, were $52,000, a significant decrease from $4,042,000 in 2023[208] - Net cash used in investing activities for the year ended December 31, 2024, was approximately $27,000, compared to $43,000 in 2023[212]