Cloudastructure (CSAI) Founder Share Sale & Investment Value Analysis

is a cloud-based AI video surveillance and remote guarding service provider. Founder and CEO recently sold company shares worth approximately $122,000 [1], which occurred after the company’s stock price experienced an unprecedented crash.

Based on brokerage API data and public disclosures, Bentley’s share sale details are as follows [1]:

• November 4-5, 2025
  : Sold 50,000 Class A common shares, worth approximately $96,250
• December 24, 2025
  : Sold 25,000 shares, worth approximately $25,875 (price range: $1.01-$1.035)

• After the sale, Bentley still directly holds 150,000 shares [1]

• February 13, 2025
  : Hit an all-time high of $52.43
• December 29, 2025
  : Closed at $0.90
• Annual Decline
  : -97.33% [0]
• 52-Week Price Range
  : $0.90 - $52.43 [0]

• Trend Status
  : Clear downtrend (to be confirmed) [0]
• MACD
  : Death cross, bearish signal [0]
• KDJ
  : Oversold zone (oversold opportunity) [0]
• Support Level
  : $0.91 |
  Resistance Level
  : $1.21 |
  Next Target
  : $0.82 [0]

• Net Margin: -210.71%
• Operating Margin: -202.05%
• ROE (Return on Equity): -147.57%
• EPS (TTM): -$0.51
• P/E Ratio: -1.72x

• Current Ratio: 4.44
• Quick Ratio: 4.27

• Revenue: $1.45 million, up 272% YoY [2]
• Gross Profit: $720,000, up 1070% YoY [2]
• Still in loss (EPS: -$0.13) [0]

1. Contract Signing
   : Announced on December 15, 2025, the signing of a master service agreement with a major U.S. truck parking lot operator
2. Industry Recognition
   : Won the 2025 MHN Technology Excellence Award
3. Customer Financing Partnership
   : Launched a customer financing partnership program
4. Total Annual Contract Value
   : As of Q3 2025, it was $4.79 million, more than three times the total for 2024

• The SEC once accused the company and its executives of participating in fraudulent promotion activities
• The company paid a $558,071 fine to settle the SEC charges [1]
• This is a major corporate governance warning signal

: Moderate risk [0]

• Total of two sales: approximately $122,000
• Compared to the company’s market capitalization ($17.57 million), it accounts for less than 0.1%
• Compared to Bentley’s remaining shares (150,000 shares, worth approximately $135,000), the sale ratio is about 47%

• Although the ratio is small, continuous sales against the backdrop of a stock price crash still send a negative signal
• Especially the second sale (December 24) occurred when the stock price had fallen to around $1

• Stock price around $1.90
• On the eve of Q3 earnings release
• Possible motivations: Locking in gains, diversifying investment portfolio

• Stock price had fallen to $1.01-$1.035
• Plunged 98% from the all-time high
• Warning Signal
  : Continuing to sell at such a low price indicates that management lacks confidence in the company’s short-term prospects

Factor	Evaluation	Weight
Transaction Scale	Small (<0.1% of market cap)	20%
Sale Timing	Continuous sales amid stock crash	30%
Frequency	Two sales in short period	20%
Company Fundamentals	Revenue growth but deep losses	20%
Regulatory History	SEC violation record	10%

: Moderately Negative

1. Lack of Management Confidence
   • Founder still chose to sell when the stock price was at an extremely low level (around $1)
   • In stark contrast to “insiders increasing holdings at low levels usually indicates confidence”
   • May imply that management is pessimistic about the company’s turnaround or stock price rebound

2. SEC Violation History
   • Company was penalized by SEC for fraudulent promotion [1]
   • Seriously damages corporate governance and integrity
   • Investors should be highly vigilant about such history

3. Extreme Valuation Risk
   • Plunged from $52 to $0.90, a drop of 98.17%
   • Negative P/E ratio indicates the market does not recognize its profit model
   • High Beta value (1.85) indicates extremely high volatility [0]

4. Deep Losses
   • Net margin: -210.71%, operating margin: -202.05% [0]
   • Although revenue grew by 272%, it has not yet turned profitable [2]
   • Cash burn rate is worrying

1. Strong Business Growth
   • Q3 revenue up 272% YoY [2]
   • Gross profit up 1070% YoY, showing economies of scale [2]
   • New customer contracts continue to be signed

2. Positive Industry Outlook
   • AI video surveillance and remote guarding are growing markets
   • Received industry award recognition
   • Customer financing partnerships may accelerate expansion

3. Technical Oversold
   • Both KDJ and RSI show oversold [0]
   • Technically, there is a possibility of a rebound
   • Note
     : Oversold does not mean bottom

1. Healthy Liquidity
   • Current ratio of 4.44, good short-term solvency [0]
   • But against the backdrop of deep losses, cash burn rate is key

2. Remaining Holdings
   • Bentley still holds 150,000 shares
   • Shows a certain degree of interest binding
   • But the shareholding ratio has been significantly reduced

• Recommendation
  : Avoid / High-Risk Speculation
• Stock price in clear downtrend [0]
• Technical indicators are bearish, MACD death cross [0]
• Insider selling continues to pressure the stock
• Next support level at $0.82 [0]

• Recommendation
  : Wait for clear signals; currently not investment-worthy
• Key Observation Indicators:
  1. Profit path: When to achieve break-even?
  2. Cash runway: How long can it last at current loss rate?
  3. Governance improvement: Any substantive corporate governance reforms?
  4. Insider behavior: Will there be any share increase actions?

• Only suitable for speculative investors with extremely high risk tolerance
• Need to accept the possibility of total loss
• Not suitable for conservative or moderate risk-preference investors

The share sale by Cloudastructure founder Bentley, combined with the company’s

, constitutes a .

Although the company has shown certain growth momentum at the business level (Q3 revenue growth of 272%), it has fatal flaws in the following aspects:

1. Lack of management confidence
   (still selling at extremely low prices)
2. Lack of sustainable profit path
   (net margin -210%)
3. Corporate governance stain
   (SEC penalty record)
4. Deteriorating stock price trend
   (comprehensively bearish technically)

• Insiders (especially the founder) increase holdings in the open market
• Company announces a clear profit timeline
• Substantial improvement in governance structure
• SEC-related issues are fully resolved and recognized by the market

At the current stage,

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[0] Gilin API Data (real-time quotes, company overview, financial analysis, technical analysis, historical price data)

[1] Web Search Results:

• “Bentley, Cloudastructure Founder Sells Shares Worth $96,250” - Investing.com Chinese Edition (https://cn.investing.com/news/insider-trading-news/article-93CH-3069252)
• “Cloudastructure Founder Bentley Sells Shares Worth $51,500” - Investing.com Chinese Edition (https://cn.investing.com/news/insider-trading-news/article-93CH-3144333)
• “Adam E. Levin; Rick Bentley - SEC.gov” - U.S. Securities and Exchange Commission (https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25857)
• “SEC Settles Actions Against Two Reg A Issuers…” - SEC.gov (https://www.sec.gov/enforcement-litigation/administrative-proceedings/33-11243-s)

[2] Web Search Results:

• “Earnings call transcript: Cloudastructure Reports Robust Q3 2025…” - Investing.com (https://www.investing.com/news/transcripts/earnings-call-transcript-cloudastructure-reports-robust-q3-2025-growth-amid-market-challenges-93CH-4356418)
• “Cloudastructure Reports 272% Year-Over-Year Revenue Growth in Q3 2025…” - Yahoo Finance (https://finance.yahoo.com/news/cloudastructure-reports-272-over-revenue-141000240.html)
• “Cloudastructure Signs Master Service Agreement to Secure Major U.S. Truck-Parking Operator” - Yahoo Finance (https://finance.yahoo.com/news/cloudastructure-signs-master-agreement-secure-140000566.html)
• “Cloudastructure Wins 2025 MHN Excellence Award for Technology” - Business Insider (https://markets.businessinsider.com/news/stocks/cloudastructure-wins-2025-mhn-excellence-award-for-technology-1035621817)