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, 2022 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 ...

Revenue and Income - Revenue increased by approximately $0.1 million to $1.0 million, or by 14%, for the three months ended June 30, 2022, compared to $0.9 million for the same period in 2021[118]. - Net revenue increased by approximately $0.2 million to $2.0 million, or by 12%, for the six months ended June 30, 2022, compared to $1.8 million for the same period in 2021[129]. - Total other income increased by approximately $18.6 million, or 177%, for the three months ended June 30, 2022, primarily due to the change in fair value of warrant liability[125]. - Total other income increased by 161% to $6.7 million for the six months ended June 30, 2022, compared to a loss of $11.0 million in the prior year, largely due to changes in fair value of warrant liabilities[135]. Costs and Expenses - Cost of revenue increased by approximately $0.4 million to $1.7 million for the three months ended June 30, 2022, primarily due to increased personnel costs and production expenses[119]. - Cost of revenue increased by 28% to $3.2 million for the six months ended June 30, 2022, from $2.5 million in the prior year, primarily due to increased personnel costs and production expenses[130]. - Gross loss for the three months ended June 30, 2022, was approximately $0.7 million, compared to $0.4 million for the same period in 2021[120]. - Gross loss for the six months ended June 30, 2022, was approximately $1.3 million, compared to a gross loss of $0.7 million for the same period in 2021[131]. - Research and development expenses increased by approximately $0.5 million, or 36%, for the three months ended June 30, 2022, primarily due to increased headcount and technology development investments[122]. - Research and development expenses rose by 47% to $3.9 million for the six months ended June 30, 2022, representing 197% of total revenue, driven by increased headcount and technology development[132]. - Sales and marketing expenses decreased by $2.1 million, or 58%, for the three months ended June 30, 2022, compared to the prior year, due to reduced commercial advertising expenses[123]. - Sales and marketing expenses decreased by 25% to $5.0 million for the six months ended June 30, 2022, compared to $6.6 million in the prior year, primarily due to reduced spending on commercial advertising[133]. - General and administrative expenses increased by $1.8 million, or approximately 164%, for the three months ended June 30, 2022, driven by higher personnel and professional services costs[124]. - General and administrative expenses surged by 218% to $5.3 million for the six months ended June 30, 2022, compared to $1.7 million in the prior year, mainly due to increased personnel costs and professional service fees[134]. Cash Flow and Financing - As of June 30, 2022, the company had $15.6 million in cash and cash equivalents, an accumulated deficit of approximately $122.4 million, and a stockholders' deficit of $33.1 million[136]. - Net cash used in operating activities was approximately $13.6 million for the six months ended June 30, 2022, influenced by a net loss of $8.7 million and changes in working capital[143]. - Net cash provided by financing activities was approximately $20.2 million for the six months ended June 30, 2022, an increase of $3.8 million compared to the prior year, primarily from stock issuance[146]. Convertible Notes and Stock Issuance - The maturity date of the convertible notes was extended from January 1, 2022, to January 1, 2024[150]. - The interest rate of the convertible notes was reduced from 12% per annum to 3% per annum starting January 1, 2022[150]. - The conversion price of the convertible notes remains at $2.50 per share[150]. - The Company has the right to sell up to $100,000,000 of newly issued shares of Class A common stock to B. Riley Principal Capital[151]. - The Company issued 98,888 shares of Class A common stock to B. Riley Principal Capital as initial commitment shares[153]. - Upon receiving $25,000,000 from B. Riley Principal Capital, the Company will issue an additional 59,333 shares of Class A common stock[153]. - The Company sold 95,734 shares of Class A common stock under the Purchase Agreement, generating net proceeds of $0.4 million[154]. - A registration statement was filed to register the resale of 12,197,776 shares of Class A common stock by B. Riley Principal Capital[153]. Business Operations and Client Demand - As of August 10, 2022, the company has a backlog of orders to deploy 35 ASRs, representing an aggregate annual subscription value of approximately $1.9 million[118]. - The company continues to focus on scaling its business to meet client demand and has received new client orders despite challenges from COVID-19 and supply chain constraints[109]. - The company expects to improve production efficiency and reduce costs as operations scale, while also managing overhead costs effectively[114].

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 March 31, 2022 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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 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 | | --- | --- | | (Sta ...

Revenue and Sales - Revenue increased by approximately $0.1 million to $0.8 million, or by 9%, for the three months ended September 30, 2021, compared to $0.7 million for the same period in 2020[156] - Revenue, net increased by $0.2 million to $2.6 million, or by 9% in the nine months ended September 30, 2021, compared to $2.4 million in the same period of 2020[168] - The company has a backlog of orders to deploy 28 Autonomous Security Robots (ASRs), representing an aggregate annual subscription value of approximately $1.6 million[156] - The company recognized recurring monthly revenues ranging between $3 and $8 per ASR, which includes rental, maintenance, service, and support[136] - The sales pipeline remains strong, although the enterprise sales cycle is lengthy, potentially taking several years due to various client reviews[150] Expenses - Research and development expenses increased by $0.3 million, or 26%, for the three months ended September 30, 2021, primarily due to increased headcount and consulting services related to FedRamp certification efforts[161] - Operating expenses totaled $3.469 million for the three months ended September 30, 2021, compared to $3.332 million for the same period in 2020[155] - Sales and marketing expenses decreased by $1.0 million, or 59%, for the three months ended September 30, 2021, compared to the prior year, primarily due to reduced commercial advertising expenses[162] - General and administrative expenses increased by $0.9 million, or approximately 144%, for the three months ended September 30, 2021, driven by increased headcount and professional service fees[163] - Research and development expenses increased by $1.6 million, or 70%, for the nine months ended September 30, 2021, primarily due to increased headcount and consulting services[172] - Sales and marketing expenses increased by $2.8 million, or 61%, for the nine months ended September 30, 2021, primarily due to increased advertising expenses and headcount[173] - General and administrative expenses increased by $1.6 million, or 99%, for the nine months ended September 30, 2021, primarily due to increased headcount and professional service fees[174] Financial Position - The gross loss for the three months ended September 30, 2021, was approximately $0.5 million, compared to $0.6 million for the same period in 2020[158] - Net cash used in operating activities was approximately $13.6 million for the nine months ended September 30, 2021, influenced by a net loss of $27.6 million[180] - As of September 30, 2021, the company had $9.7 million in cash and cash equivalents and an accumulated deficit of approximately $97.4 million[177] Funding and Financing - The Company raised approximately $21.1 million from the 2020 Regulation A Offering, issuing 2,107,330 shares of Series S Preferred Stock[188] - As of September 30, 2021, the Company had issued convertible notes totaling approximately $6.6 million out of a potential $15 million under the Convertible Note Financing[189] - The Company entered into a financing arrangement with Farnam for $3 million, with an effective interest rate of 35% for a two-year repayment period[198] - The Company received a PPP Loan of approximately $823, which was forgiven by the SBA on May 20, 2021[200] - The Company had the ability to draw up to $3.5 million under the SVB Loan Facility, but only drew $425, which was fully repaid in February 2019[196] Market and Operational Insights - The company experienced an increase in minimum order requirements for raw materials and components due to global supply chain constraints[160] - The market for the company's technologies is expected to grow due to new safety requirements and high-profile incidents of violence across the United States[152] Stock and Shareholder Information - The Series m-4 Preferred Stock has a 12% accruing payment in kind dividend and a senior liquidation preference over all other Preferred Stock and Common Stock[190] - The conversion rate for Series S Preferred Stock was adjusted to approximately 1.0512 shares of Class A Common Stock for every 1 share of Series S Preferred Stock as of September 30, 2021[192] - The warrants issued to investors in the Convertible Note Financing have an exercise price of $4.50 per share and expire on December 31, 2021, or 18 months after the IPO[189] - The exchange of Series m-3 Preferred Stock for Series m-4 Preferred Stock included inducement expenses of $0.9 million[190] - As of September 30, 2021, the Voting Proxy held by the CEO represented approximately 2.74% of the Company's aggregate voting power[191]