Revenue Performance - Total revenue for the three months ended September 30, 2024, was $2.535 million, a decrease of 23.8% compared to $3.324 million for the same period in 2023[21]. - Service revenue for the three months ended September 30, 2024, was $1.861 million, down from $1.915 million in the same period last year, reflecting a decline of 2.8%[21]. - Product revenue decreased significantly to $674,000 for the three months ended September 30, 2024, compared to $1.409 million in the prior year, representing a decline of 52.1%[21]. - Total revenue for Q3 2024 decreased by approximately $0.8 million to $2.535 million, with service revenue at $1.861 million (73% of total) and product revenue at $0.674 million (27% of total)[143]. - Total revenue recognized from ASRs for the nine months ended September 30, 2024, was $1,324 million, with $1,211 million recognized at a point in time and $1,143 million recognized over time[76]. - Total revenue, net for the nine months ended September 30, 2024, was approximately $8.0 million, a decrease of approximately $1.8 million or 18% compared to the same period in the prior year[158]. Financial Losses - Gross loss for the three months ended September 30, 2024, was $(700,000), compared to a gross profit of $50,000 for the same period in 2023[21]. - Net loss for the three months ended September 30, 2024, was $(10.904 million), compared to a net loss of $(8.342 million) for the same period in 2023, indicating a deterioration of 30.6%[21]. - Net loss for the nine months ended September 30, 2024, was $24,767,000, compared to a net loss of $15,584,000 for the same period in 2023, representing a 58.8% increase in losses[31]. - Gross loss for the nine months ended September 30, 2024, was approximately $2.7 million, compared to a gross loss of approximately $0.2 million for the same period in 2023[164]. Operating Expenses - Total operating expenses increased to $7.041 million for the three months ended September 30, 2024, up from $6.533 million in the same period last year, marking an increase of 7.8%[21]. - Total operating expenses increased to $7.041 million (278% of total revenue) in Q3 2024, up from $6.533 million (197% of total revenue) in Q3 2023[142]. - Research and development expenses for the nine months ended September 30, 2024, were $414,000, compared to $274,000 in the prior year[96]. - Research and development expenses increased by approximately $0.2 million, or 4%, for the nine months ended September 30, 2024, primarily due to higher headcount[165]. - Sales and marketing expenses decreased by approximately 28% to $1.000 million, representing 39% of total revenue in Q3 2024[150]. - General and administrative expenses increased by approximately 31% to $4.238 million, representing 167% of total revenue in Q3 2024[151]. Cash and Assets - Cash and cash equivalents as of September 30, 2024, were $5.199 million, significantly up from $2.282 million as of December 31, 2023[19]. - Total current assets increased to $11.529 million as of September 30, 2024, compared to $8.213 million as of December 31, 2023, reflecting a growth of 40.5%[19]. - Cash and cash equivalents increased to $5,301,000 as of September 30, 2024, up from $4,711,000 at the end of September 2023[31]. - The company reported a net loss of approximately $24.8 million for the nine months ended September 30, 2024, leading to net cash used in operating activities of approximately $17.4 million[186][187]. Stock and Equity - Total stockholders' equity improved to $9.255 million as of September 30, 2024, compared to a deficit of $(26.634 million) as of December 31, 2023[19]. - The company executed a 1-for-50 reverse stock split of its common stock in September 2024, impacting share amounts[26]. - The company executed a reverse stock split of Class A and Class B Common Stock at a ratio of 1-for-50, effective September 13, 2024[64]. - The company issued 1,470,537 shares of Class A Common Stock under the at-the-market offering program, generating net proceeds of approximately $20.4 million during the nine months ended September 30, 2024[177]. Liabilities - Total liabilities as of September 30, 2024, were $15.667 million, slightly up from $15.405 million as of December 31, 2023[19]. - The company has outstanding obligations of approximately $1.8 million under the August 2024 Note as of November 13, 2024[183]. - The company’s total liabilities included warrant liabilities of $5,692 million for Series S Preferred Stock as of September 30, 2024[81]. Future Outlook and Financing - The company is dependent on additional fundraising to sustain ongoing operations, indicating a need for further capital within the next twelve months[37]. - The company is pursuing additional financing through equity and/or debt alternatives to meet its capital and operational needs[171]. - The company plans to seek additional funding, which may result in the dilution of existing stockholders' interests[171].

Core Insights - Verizon Business has partnered with Knightscope to enhance safety at commercial and government facilities through the deployment of autonomous security robots and emergency communication devices [1][5] - The Knightscope K5 security robot has received a FedRAMP Moderate Authority to Operate designation, indicating its compliance with security standards [2] - Verizon aims to integrate 5G technology into the K5 ASR, enhancing its capabilities for real-time data transmission and monitoring [3] Company Developments - The K5 ASR operates autonomously in large outdoor spaces and is designed to function in extreme weather conditions, providing continuous surveillance [3] - Verizon also supports Knightscope's K1 Blue Light Tower and E-Phones, which are wireless emergency communication devices that operate independently and assist first responders [4] - The partnership with Knightscope is part of Verizon's broader strategy to serve the U.S. Department of Veterans Affairs, including a $448.3 million expansion to supply mobile devices and critical communications support [5] Financial Performance - Verizon generated revenues of $134.0 billion in 2023, showcasing its strong market position and commitment to innovation [6]

Financial Data and Key Metrics Changes - For Q2 2024, total net revenues were reported at $3.2 million, a decrease of $0.4 million or 10% compared to the same period last year, primarily due to lower product revenue offsetting gains in services revenue [33] - Services revenue increased by $0.1 million to approximately $2 million, while product revenue declined by $0.5 million to approximately $1.3 million due to a lack of a large one-time sale that occurred in the prior year [33] - The company recorded a gross loss of $0.6 million, a significant change from a gross profit of $9,000 reported in the prior year [35] - Net loss for the quarter was $6.3 million, approximately $1.5 million higher than the prior year, with a basic and diluted net loss per share of $0.05 compared to a loss of $0.08 in the prior year [38] Business Line Data and Key Metrics Changes - The K1B product line contributed approximately two-thirds of the business, while ASR-related products accounted for about one-third of revenues [51] - The K1 Hemisphere product has been introduced and is expected to drive initial growth, with various applications being explored [50] Market Data and Key Metrics Changes - The company believes it is targeting a multibillion-dollar market opportunity in public safety, law enforcement, and security, which is seen as ripe for disruption through robotics and AI [5][6] - The potential for a $40 billion recurring revenue opportunity is anticipated once the business model is fully established [7] Company Strategy and Development Direction - The company is focused on cleaning up its balance sheet and aligning with public company structures, which includes converting preferred shares to common shares [42][44] - Strategic initiatives include the development of the Intelligence Control Module (ICM) to unify various product architectures and improve operational efficiencies [17][46] - The company aims to scale up operations while reducing costs and improving efficiencies across its product lines [12][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that 2024 is a transition year, with expectations of continued challenges as the company implements significant changes [34][41] - The management expresses confidence in the long-term potential of the company, emphasizing the importance of execution and operational improvements [2][3] Other Important Information - The company has raised over $5 million in funding and continues to utilize an active ATM program for capital [45] - The company has successfully deployed its first K5 government machine at a U.S. Department of Veterans Affairs Hospital [9] Q&A Session All Questions and Answers Question: What were the orders for K1 Hemisphere versus a year ago? - The K1 Hemisphere was not in production a year ago, and it is now seen as an initial growth driver with various applications being explored [50] Question: What percentage of sales are ASRs versus the Blue Light products? - Approximately two-thirds of the business is K1B-related, while about one-third is ASR-related [51] Question: How much cash on hand on the balance sheet at the end of Q2? - Cash on hand was reported at $2.6 million at the end of the quarter, oscillating between $2 million and $5 million over the last 18 months [55] Question: What is the status of the investigation into possible legal actions of the short seller? - The investigation is ongoing, and there are no updates to provide at this time [60] Question: Why do press releases mention new contracts but not their impact on profit loss? - Announcements of new contracts are made to assist the sales team and provide visibility, but the financial impact may not be immediate [62]

Revenue Performance - Total revenue for the three months ended June 30, 2023, was $3,203,000, a decrease of 10.1% compared to $3,563,000 for the same period in 2022[16]. - Service revenue for the six months ended June 30, 2023, was $3,641,000, up from $3,573,000 in the same period last year, reflecting a growth of 1.9%[16]. - Total revenue for the three months ended June 30, 2024 decreased by approximately $0.4 million compared to the same period in the prior year, with Product revenue decreasing by approximately 28%[121]. - Service revenue, net for the three months ended June 30, 2024 increased approximately 7% compared to the same period in the prior year due to an increase in Service revenue related to the K1B installed base[121]. - Total revenue for the six months ended June 30, 2024, was $5.457 million, a decrease of approximately 15.5% from $6.460 million for the same period in the prior year[133]. - Service revenue increased by approximately $0.1 million or 2% to $3.641 million, while product revenue decreased by approximately $1.1 million or 37% to $1.816 million[134]. Profit and Loss - Gross profit for the three months ended June 30, 2023, was a loss of $558,000, compared to a profit of $9,000 for the same period in 2022[16]. - Net loss for the three months ended June 30, 2023, was $6,271,000, compared to a net loss of $4,798,000 for the same period in 2022, representing a 30.7% increase in losses[16]. - The gross loss for the three months ended June 30, 2024 was approximately $0.6 million, compared to a gross profit of $9 thousand for the same period in 2023[125]. - Gross loss for the six months ended June 30, 2024, was approximately $2.0 million, compared to a gross loss of approximately $0.2 million for the same period in the prior year[138]. Operating Expenses - Total operating expenses for the three months ended June 30, 2023, were $6,203,000, an increase of 4.2% from $5,954,000 in the prior year[16]. - Research and development expenses for the three months ended June 30, 2023, were $1,637,000, an increase of 10.5% from $1,482,000 in the prior year[16]. - Sales and marketing expenses for the three months ended June 30, 2023, were $1,537,000, up from $1,193,000, reflecting a growth of 28.8%[16]. - Research and development expenses increased by approximately $0.3 million or 11% to $3.206 million, representing 59% of total revenue[139]. - Sales and marketing expenses rose by approximately $0.7 million or 31% to $3.043 million, accounting for 56% of total revenue[140]. - General and administrative expenses decreased by approximately $0.5 million or approximately 8% to $6.375 million, representing 117% of total revenue[141]. Equity and Stockholder Information - As of June 30, 2023, total stockholders' deficit was $25,318, reflecting an increase from $43,586 as of December 31, 2022[18]. - The company reported a net equity of $4,676 million as of June 30, 2023, down from $4,818 million at the end of 2022[18]. - The cumulative deficit as of June 30, 2023, was $146,582, an increase from $139,340 at the end of 2022[18]. - The company converted 10,432,428 debt obligations to Class A common stock, enhancing its equity position[18]. - As of June 30, 2024, the company had total stockholders' equity of approximately $11.2 million[144]. - The Company’s total stockholders' equity was approximately $11.2 million as of June 30, 2024[144]. Cash Flow and Financing - The company experienced a net cash used in operating activities of $12,642,000 for the six months ended June 30, 2024, compared to $11,215,000 for the same period in 2023, indicating a 13% increase in cash outflow[24]. - Cash and cash equivalents at the end of the period were $2,726,000 as of June 30, 2024, down from $5,942,000 as of June 30, 2023, reflecting a decrease of approximately 54%[24]. - The company raised $12,089,000 from equity sales, net of issuance costs, during the six months ended June 30, 2024, compared to $14,236,000 in the same period of 2023, indicating a decrease of approximately 15%[24]. - Net cash used in operating activities was approximately $12.6 million for the six months ended June 30, 2024, an increase of approximately $1.4 million compared to the same period in the prior year[155]. - Net cash provided by financing activities was approximately $14.8 million for the six months ended June 30, 2024, an increase of approximately $0.3 million compared to the prior year[159]. - The company is actively seeking additional financing to meet its capital and operational needs, which may include equity and debt alternatives[144]. Compliance and Regulatory Issues - The Company received a delisting determination letter from Nasdaq due to non-compliance with the Minimum Bid Price Requirement, with trading suspension effective May 3, 2024[110]. - The Company received a temporary exception until October 4, 2024 to regain compliance with the Minimum Bid Price Requirement, contingent upon obtaining shareholder approval for a reverse stock split by August 16, 2024[111]. - The Automatic Conversion on May 15, 2024 resulted in the Company reflecting a positive stockholders' equity on its Condensed Balance Sheet, satisfying the Minimum Stockholders' Equity Requirement as of June 30, 2024[112]. Operational Changes - The Company streamlined its management structure and outsourced non-core business functions to improve operational efficiency[103]. - The Company consolidated its manufacturing operations from three facilities to one primary facility in Mountain View, California, to enhance process flow and reduce costs[104]. - The Company is focused on optimizing operations to achieve profitable growth while scaling its business to meet incoming demand[115].

Financial Performance - Total revenue for Q1 2024 was $2,254,000, a decrease of 22% compared to $2,897,000 in Q1 2023[22] - Net loss for Q1 2024 was $7,592,000, compared to a net loss of $2,444,000 in Q1 2023, representing a 210% increase in losses year-over-year[22] - The gross loss for Q1 2024 was $1,445,000, compared to a gross loss of $213,000 in Q1 2023[22] - Total revenue for the three months ended March 31, 2024, was $2,254 million, compared to $2,897 million for the same period in 2023, reflecting a decline in both ASR and ECD revenues[74] - Service revenue remained relatively flat at $1.691 million, while product revenue decreased by approximately $0.6 million to $0.563 million due to structural changes in the ECD product line[132] - Total other income decreased by approximately $3.4 million, or 83%, to $0.688 million for the three months ended March 31, 2024, compared to $4.077 million in the same period of 2023[143] Cash Flow and Liquidity - Net cash used in operating activities was $8.611 million for Q1 2024, up from $6.483 million in Q1 2023, indicating worsening cash flow from operations[28] - Cash and cash equivalents increased to $2,487,000 as of March 31, 2024, up from $2,282,000 as of December 31, 2023[18] - Cash and cash equivalents at the end of the period were $2.587 million, an increase from $2.475 million at the end of Q1 2023[28] - The company reported a net cash provided by financing activities of $9.710 million in Q1 2024, compared to $4.915 million in Q1 2023[28] - The company is dependent on additional fundraising to sustain operations, indicating potential liquidity challenges in the next twelve months[36] Assets and Liabilities - Total current assets rose to $9,921,000 as of March 31, 2024, compared to $8,213,000 as of December 31, 2023, reflecting an increase of 20.8%[18] - Total liabilities increased to $16,616,000 as of March 31, 2024, up from $15,405,000 as of December 31, 2023, indicating a rise of 7.9%[18] - The company reported a total stockholders' deficit of $26,638,000 as of March 31, 2024, slightly increased from $26,634,000 as of December 31, 2023[18] - The total assets of the company increased to $23,993,000 as of March 31, 2024, compared to $22,974,000 as of December 31, 2023, marking a growth of 4.4%[18] - The accumulated deficit as of March 31, 2024, was approximately $169.1 million, with a stockholders' deficit of approximately $26.6 million[36] Research and Development - Research and development expenses for Q1 2024 were $1,569,000, an increase of 12.3% from $1,397,000 in Q1 2023[22] - Research and development expenses increased by approximately $0.172 million, or 12%, to $1.569 million, representing 70% of total revenue[138] Stock and Equity - The number of weighted average shares used to compute basic and diluted net loss per share increased to 96,365,979 in Q1 2024 from 42,746,330 in Q1 2023[22] - The Company issued 13,512,738 shares of Class A Common Stock under its at-the-market offering program, generating net proceeds of approximately $7.1 million during the three months ended March 31, 2024[90] - The total preferred stock outstanding as of March 31, 2024, was 9,473,084 shares, with net proceeds from issuance amounting to $34,015 million[88] - The Company had a total of 25,154,887 shares of Class A Common Stock reserved for future issuance as of March 31, 2024[89] Operational Challenges and Future Outlook - The Company is focused on streamlining operations and reducing costs, particularly in its K1B product line, to achieve profitable growth[109] - The Company expects fluctuations in results of operations throughout 2024 due to its transition and cost-streamlining efforts[113] - The Company believes the demand for automated security solutions will grow due to rising crime rates and security breaches[123] - The Company is evaluating actions to improve production methods, cost, quality, and product features in response to potential competition[126] Other Financial Metrics - The total stock-based compensation expense recognized for the three months ended March 31, 2024, was $334 million, down from $446 million in the same period of 2023, indicating a decrease of about 25%[87] - The warranty liability decreased from $406 million at the beginning of the year to $341 million by March 31, 2024, with a provision of $41 million issued during the quarter[59] - The Company had unamortized stock-based compensation expense of $2.3 million as of March 31, 2024, which will be recognized over a weighted average remaining vesting term of 2.52 years[86]

Financial Results Announcement - Knightscope, Inc. announced its financial results for the full year ended December 31, 2023, on April 2, 2024[5]. - The press release detailing the financial results is included as Exhibit 99.1 to the Current Report[5]. - The report does not provide specific financial metrics or performance indicators in the extracted content[6]. - The report does not include detailed user data or future outlook in the extracted content[6]. Company Classification and Operations - The company is classified as an emerging growth company under the Securities Act of 1933[4]. - The company operates under the trading symbol KSCP on the Nasdaq Capital Market[3]. - The address of the principal executive offices is 1070 Terra Bella Avenue, Mountain View, California 94043[2]. Report Signatory and Compliance - The report was signed by William Santana Li, the Chief Executive Officer and President of Knightscope, Inc.[11]. - The filing is intended to satisfy the obligations under the Securities Exchange Act of 1934[3]. Product and Market Information - There are no mentions of new products, technologies, market expansion, or acquisitions in the provided documents[6].

Acquisition and Partnerships - Knightscope completed the acquisition of Case Emergency Systems in 2022, enhancing its K1B emergency communication device portfolio with nearly 10,000 installed devices across the USA[23]. - The company has partnered with Konica Minolta, Inc. to train technicians for servicing and maintaining its machines, aiding in nationwide scaling efforts[64]. - The company completed the acquisition of substantially all assets of Case Emergency Systems in October 2022, expanding its emergency call box and communications business[217]. Product Offerings and Technology - The K5 ASR is designed for outdoor use and can autonomously navigate environments such as open-air malls and corporate campuses, while the K3 ASR is tailored for complex indoor environments[33][34]. - Knightscope's ASRs and K1B technologies are marketed under a Machine-as-a-Service (MaaS) business model, which includes maintenance, service, support, and unlimited software upgrades[28]. - Knightscope's technologies include fully autonomous security robots and blue light emergency communication systems, aimed at enhancing public safety[214]. - The newly released Knightscope Emergency Communication System (KEMS) platform offers self-diagnostic capabilities and real-time monitoring for operational status[219]. - Knightscope's autonomous security robots (ASRs) provide real-time data collection and analysis, enhancing situational awareness for security teams[216]. - The company's emergency communication devices (ECDs) include the K1 Blue Light Tower, E-Phone, and K1 Call Box, designed for reliable communication in various environments[217]. - Knightscope's technologies are manufactured in the USA, supporting its mission to enhance safety across the country[215]. Financial Performance and Position - The company incurred a net loss of $22.1 million for the year ended December 31, 2023, compared to a net loss of $25.6 million for the year ended December 31, 2022, resulting in an accumulated deficit of $161.5 million[80]. - Cash and cash equivalents on hand were $2.3 million as of December 31, 2023, down from $4.8 million as of December 31, 2022[80]. - As of December 31, 2023, the company had outstanding orders representing approximately $3.4 million, with $2.3 million for ASR deployments and $1.1 million for K1B orders[72]. - The company projects operating losses and negative cash flows for the foreseeable future, raising substantial doubt about its ability to continue as a going concern[156]. - The company has issued unsecured Public Safety Infrastructure Bonds totaling approximately $4.2 million, bearing interest at 10% per annum, starting December 31, 2024[107]. - The company has not paid any cash dividends on its Class A Common Stock and does not anticipate doing so in the foreseeable future, limiting returns on investment to stock price appreciation[161]. Market and Competition - The market for advanced physical security technology is characterized by rapid change and intense competition, making it difficult for the company to predict future operating results[93]. - The company is not aware of any direct competitors for its ASR products in the advanced physical security technology space[66]. - The private security industry is undergoing structural changes, and the company faces increased competition that may affect pricing and market share[143]. - The company is aware of competition from other firms developing physical security technology, which may have more resources[116]. Regulatory and Compliance Risks - The company’s ability to operate is dependent on compliance with evolving privacy laws, which could impact its business operations[118]. - The California Consumer Privacy Act (CCPA) imposes requirements on businesses processing personal information of California residents, with potential fines for noncompliance[120]. - The EU General Data Protection Regulation (GDPR) imposes fines of up to €20 million or 4% of annual global revenue for noncompliance, affecting the company's operations in the EU[123]. - The UK GDPR imposes similar obligations as the GDPR, with fines of up to £17.5 million or 4% of global annual revenue for noncompliance[124]. - The company may be impacted by new AI regulations expected to enter into force in the US and EU in 2024, which could affect its ability to develop and commercialize AI technologies[126]. - The EU AI Act establishes a governance framework for AI, with potential fines of up to 7% of worldwide annual turnover for breaches[128]. Operational Challenges - The company faces challenges in managing growth, including the need to improve operational and financial processes as it expands[105]. - The company has identified material weaknesses in internal control over financial reporting, which could result in restatements and loss of investor confidence[142]. - The company is dependent on the global supply chain, and ongoing constraints may impact its ability to meet increased demand and affect net sales revenues[150]. - The company has experienced supply chain constraints due to the COVID-19 pandemic and the ongoing conflict in Ukraine, impacting production and deployment of ASRs[150]. - Increased costs of components and shipping have resulted from supply chain issues, which may negatively affect the company's financial condition and operating results[150]. Management and Governance - The company’s executive team includes experienced professionals, such as William Santana Li, who has over 30 years of experience in the automotive sector[194]. - Apoorv S. Dwivedi has been appointed as the Chief Financial Officer as of January 2024, bringing experience from Nxu, Inc. and Cox Automotive[196]. - Changes in the board of directors may create uncertainty among investors and affect the company's future direction and performance[112]. - The company has not developed a succession plan for key management personnel, which could harm operations if key members are unavailable[111]. Cybersecurity and IT Risks - The company has developed a cybersecurity risk management program based on the FedRAMP framework to protect critical systems and information[182]. - The company has a cybersecurity incident response plan that includes procedures for responding to incidents[191]. - The company’s management team is responsible for monitoring systems for vulnerabilities and implementing necessary updates[188]. - The company has not identified any known cybersecurity threats that have materially affected its operations or financial condition[184]. - The company’s operations may be affected by information technology system failures and cybersecurity threats, which could compromise confidential information[131]. Stock and Shareholder Matters - Knightscope's Class A Common Stock is traded on The Nasdaq Capital Market under the symbol "KSCP," with 14,207 holders of record as of March 28, 2024[206]. - The Company has until April 23, 2024, to regain compliance with the Minimum Bid Price Requirement, with a potential extension of an additional 180 days if certain conditions are met[153]. - The company received a notice from Nasdaq regarding noncompliance with the Minimum Bid Price Requirement, as its Class A Common Stock has been below $1.00 per share for 31 consecutive business days[152]. - As of March 29, 2024, holders of Super Voting Stock control approximately 27.8% of the company's total voting rights, allowing them significant influence over management decisions[148]. - The Company is currently authorized to issue 114 million shares of Class A common stock and is seeking to increase this to 228 million shares, which is crucial for financing activities[157]. - Future debt financing may impose additional restrictive covenants, making it more challenging to obtain capital and pursue business opportunities[158]. - The market price of the Company's Class A Common Stock may be highly volatile, influenced by various factors including sales cycles and competition[159]. - The Company may need to issue additional securities to raise capital, which could significantly dilute existing shareholders[170]. Environmental, Social, and Governance (ESG) Considerations - Increasing scrutiny on environmental, social, and governance (ESG) initiatives may lead to higher costs and impact the Company's reputation[173]. - The company is subject to increasing levels of regulation regarding ESG matters, which may lead to higher compliance costs[177].

Revenue Generation and Business Model - Knightscope has generated over $30 million in lifetime revenue during its large-scale proof-of-concept phase and is now scaling up across the country[10]. - The Machine-as-a-Service (MaaS) business model offers subscriptions at an effective price of approximately $0.75 to $9 per hour, providing a recurring revenue stream[25]. - Knightscope's ASRs can generate approximately $255,000 of revenue over a five-year period, with a margin of 67% based on internal targets[31]. - The recurring revenue business model is anticipated to continue growing, addressing societal issues related to crime and terrorism[43]. - The company has generated over $30 million in lifetime revenue and has shown consistent double-digit growth over the last 3 years[43]. Market Potential and Client Focus - The total potential market for annual recurring revenue in the U.S. is estimated at approximately $4.1 billion, with a near-term opportunity for around 36,000 robots[19]. - The company is focused on acquiring B2G clients, including law enforcement agencies and the U.S. Federal Government, in addition to its B2B client base[9]. - The estimated negative economic impact of crime in the U.S. exceeds $2 trillion annually, highlighting the need for advanced public safety technologies[7]. Technology and Product Development - Knightscope's Autonomous Security Robots (ASRs) generate over 90 terabytes of data annually, which is utilized through the Knightscope Security Operations Center (KSOC) user interface[13]. - Production ramp-up is planned for the all-new K1 Hemisphere and the 5th generation K5, alongside development of the K7 ASR and AI-driven Mission Control software[47]. - The strategy includes a wide portfolio of autonomous products that can operate in various environments to enhance safety[48]. Growth and Profitability Goals - The company aims to achieve profitability by Q4 2024 through improved revenue strategies and reduced variable costs[46]. - The number of machines-in-network is planned to exceed 10,000 during 2024, with a focus on improving manufacturing throughput[44]. - The company anticipates growth in near- and long-term revenue goals, although specific figures were not disclosed[68]. Financial Position and Strategic Plans - The cash position is expected to improve in 2024 by delivering on a multi-million dollar backlog of new orders and closing on the first bond offering[45]. - The company plans to reduce its facility footprint nationwide from 13 to 1 over time to lower fixed costs[46]. - Knightscope's financial results include forward-looking statements regarding revenue opportunities and profitability[68]. Regulatory and Compliance - The company has received an Authority to Operate (ATO) from the U.S. Federal Government after a three-year cybersecurity review, positioning it for federal contracts[11][33]. - Risks and uncertainties that could affect actual results are discussed in Knightscope's Annual Report on Form 10-K for the year ended December 31, 2022[68]. Commitment to Manufacturing and Social Impact - The company is committed to maintaining a "Made in the USA" focus in its manufacturing efforts[44]. - Knightscope's technology has been proven effective, with clients reporting significant reductions in crime rates after deploying ASRs[23]. - The company seeks to grow both organically and through acquisitions, targeting strategic partnerships to enhance its technological offerings[49].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41248 Knightscope, Inc. (Exact name of registrant as specified in its charter) Delaware 46-2482575 (State ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41248 Knightscope, Inc. (Exact name of registrant as specified in its charter) Delaware 46-2482575 (State or o ...