Cloudastructure, Inc. (NASDAQ: CSAI) received a Notice of Allowance from the U.S. Patent and Trademark Office for its application No. 18/133,167, titled “Methods and Systems Improving Network Performance for Video Surveillance.” The allowance confirms ownership of the company’s cloud‑first architecture that powers its AI‑driven object detection, recognition, and real‑time analytics across all video feeds.
The patent protects the proprietary algorithms that enable Cloudastructure to report a 98 % deterrence rate for threatening activities and a 75 % lower total cost of ownership compared with traditional camera‑based systems. These metrics have been highlighted in the company’s July and August 2025 press releases and are now backed by formal intellectual‑property protection.
By securing this intellectual‑property shield, Cloudastructure strengthens its competitive moat against larger incumbents such as ADT, Cisco, and Honeywell. The patent also lays the groundwork for future product enhancements, licensing opportunities, and expansion into new verticals—including construction, logistics, and international markets—where the company has already begun to win contracts.
CEO James McCormick emphasized that the patent “underpins our vision for AI‑driven security and risk management” and that the cloud‑first approach “enables proactive remote guarding services that help customers deter up to 98 % of potential incidents.” He added that the company’s share‑repurchase program, approved in October, reflects confidence in its long‑term outlook and a commitment to creating sustained value for shareholders.
The patent milestone comes amid a period of rapid revenue growth. In Q3 2025, Cloudastructure reported revenue of $1.45 million, up 272 % year‑over‑year, and a gross profit of $720 000, a 1,070 % increase from the prior year. Although the company posted a net loss of $2.06 million, the growth in contract signings—now exceeding the full‑year 2024 total—signals strong demand for its cloud‑native security platform.
Investors reacted positively to the patent announcement, citing the added protection of the company’s core technology and the potential for expanded market share. The event reinforces Cloudastructure’s ability to command premium pricing and accelerate adoption in high‑risk sectors such as logistics, where the company is actively pursuing new contracts.
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