Company Summary: Cloudastructure, Inc.

Overview

• Founded: 2003 in Delaware
• Headquarters: Palo Alto, California
• Business Focus: Develops cloud-based AI video surveillance and Remote Guarding security services
• Technology Platform: AI and machine learning for object detection, face recognition, license plate reading, gun detection, etc.
• Core Service Model: Subscription-based SaaS, offering scalable, cloud-hosted security solutions with no upfront licensing costs

Products and Services

• Cloud Video Surveillance: Stores video in the cloud with AI analytics
• Remote Guarding: Combines AI monitoring with live security agents who intervene when needed
• Hardware Devices: Cloud Video Recorder (CVR), networked IP cameras, speakers, and mobile surveillance trailers (solar-powered, wireless)
• AI Features: Object tagging, facial recognition, license plate reading, line crossing detection, and low-light computer vision
• Installation: Deploys on-premises CVRs linked to existing security infrastructure, then transmits data to cloud platforms (Google Cloud, AWS)
• Unique Value: Integrates AI with human security personnel, lowering crime, improving safety, reducing onsite guard costs, and increasing occupancy/rental rates

Customer Base & Market

• Top Clients: Contracts with 5 of the top 10 property management companies on NMHC’s 2024 list, including Greystar, Avenue5, Cushman & Wakefield, BH Management, and FPI Management
• Customer Concentration: Significant reliance on a few large property management firms
  • 2024 Revenue Share:
    • SunRoad Enterprises: ~18%
    • Fairfield Properties: ~9%
    • Wingate: ~9%
    • RV Mobile Power: ~7%
    • Others include Avenue5 (~11%), CONAM (~6%), and several others with smaller shares
• Contract Terms: Usually annual subscriptions, cancellable at any time unless a 3-year contract is signed
• Market Focus: Primarily multi-family residential and commercial property management, with expansion plans into other markets
• Growth Opportunities: Expand within existing customer portfolios, target additional property management firms, and enter new markets in 2025

Business Advantages

• Market Position: Potentially the only seamless, cloud-based AI surveillance + Remote Guarding solution publicly available
• Cost & Usability: More affordable and easier to implement than competitors
• Security Effectiveness: Deters over 97% of threatening activities based on internal data
• Benefits to Clients: Enhanced safety, higher occupancy/rent, lower guard costs, and insurance savings

Employees & Operations

• Employees: 16 full-time and 2 part-time employees as of December 31, 2024
• Outsourcing: Uses third-party contractors for software development, legal, payroll; hosts services on Google Cloud and AWS
• Facilities: Shared office in Palo Alto; leased offices in San Carlos, CA ($7,368/month) and Kalispell, MT ($1,800/month)

Financial Highlights (2024 vs. 2023)

• Revenue:
  • 2024: $1.36 million
  • 2023: $0.61 million (125% increase)
  • Main revenue sources: subscriptions, hardware sales, installation services
• Gross Profit / Loss:
  • 2024: $374K (profit)
  • 2023: $(118K) (loss)
• Operating Expenses:
  • 2024: $6.565 million
  • 2023: $8.594 million (decreased 24%)
  • Main expense categories: G&A, R&D, sales and marketing
  • Non-cash expenses increased to $2.174M in 2024
• Net Loss:
  • 2024: $6.535 million
  • 2023: $9.007 million (decreased 27%)

Capital & Funding

• Funding Sources:
  • Raised over $35M via Regulation A offering since 2020
  • Completed multiple private placements and acquisitions
  • Series 1 Preferred Stock: raised $6.3M in Jan 2025
  • Series 2 Preferred Stock: initial $4.5M raised in March 2025, with options for further reinvestment
  • Equity Line agreement with Atlas allows sale of up to $50M of Class A stock over 24 months
• Current Capital:
  • As of March 26, 2025, had 15.42 million Class A shares and 487,677 Class B shares outstanding
  • Class A stock started trading on Nasdaq under ticker "CSAI" on January 30, 2025
• Liquidity:
  • As of December 31, 2024, $52K in cash, but with significant upcoming funding to continue operations
  • Expects to fund operations through mid-2026 with current financing arrangements

Summary

Cloudastructure provides cloud-based AI security solutions targeting property management and commercial markets, offering scalable, affordable, and technologically advanced surveillance and security services. The company has a small but growing customer base with large property management firms, and it continues to expand its revenue, despite having incurred net losses historically. It relies on external funding and strategic financings to sustain operations and plans to scale further in 2025 and beyond.