Financial Data and Key Metrics Changes - The company reported record revenues of $15 million, up 44% from Q1 of 2020, and adjusted EBITDA of $3.3 million, up 53% year over year [9][34] - Gross profit for Q1 2021 was $8.7 million, representing 58% of revenue, consistent with the prior year [33] - Adjusted net income for Q1 was $244,000 or $0.02 per share, compared to $13,000 or zero cents per share in the prior-year period [39] Business Line Data and Key Metrics Changes - The company went live in six new cities with ShotSpotter Respond and expanded deployments in five cities [9][10] - The ShotSpotter Connect offering is showing encouraging growth and traction within the existing customer base [22][23] Market Data and Key Metrics Changes - The company is experiencing a robust go-live activity and has a solid pipeline of new city and expansion projects expected to launch in the next 60 to 90 days [11] - The federal stimulus is positively impacting municipal funding, providing budgetary resources for agencies to procure services [17][18] Company Strategy and Development Direction - The company is raising its full-year 2021 revenue guidance from $58 million to a range of $60 million to $61 million, reflecting improved demand for its core solutions [27][43] - The integration of the LEEDS acquisition is progressing well, allowing the company to focus on customer-facing services and the development of ShotSpotter Investigate [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the funding environment for local law enforcement, driven by federal stimulus and the return of earmarks [55][56] - The company is seeing a shift in law enforcement's approach towards technology, focusing on efficiency and effectiveness in public safety [56][57] Other Important Information - Deferred revenue at the end of the quarter was $25 million, and the company ended the quarter with $10.9 million in cash and cash equivalents [41][42] - The company repurchased approximately 56,000 shares at an average price of $39.02 for $2.2 million [42] Q&A Session Summary Question: What were the drivers of the sales and marketing step up? - The increase was due to additional personnel in sales and marketing, as well as expansion in customer success [49] Question: Can you talk about the pipeline of large deals? - The company is seeing a mix of small, medium, and large city deals, with encouraging movement in tier 4 and tier 5 markets [50][51] Question: How is the sales cycle around the Connect offering? - The company is on a learning curve but is seeing strong traction within the existing customer base [52][53] Question: What is the outlook for ShotSpotter Respond growth in the US? - The outlook has become more positive due to improved funding and demand for technology in law enforcement [55][56] Question: How is the implementation of the Investigate solution? - The implementation is expected to be similar to previous solutions, requiring integration with existing systems [67] Question: What is the impact of supply chain issues on the 3G refresh? - The company has planned ahead and does not expect supply chain issues to impact their operations [71] Question: Are there any former clients looking to re-engage? - One customer that previously stated they would not renew has reversed their decision and plans to expand their deployment [87][89]

Coverage and Market Opportunities - As of December 31, 2020, ShotSpotter had coverage areas under contract for over 810 square miles, with 779 square miles live, across over 110 cities and 12 campuses/sites[18] - The company estimates that the domestic market for its public safety solution consists of approximately 1,400 cities with four or more homicides per 100,000 residents, with an average investment of about $400,000 per year for ShotSpotter Respond[71] - The company has identified an additional market opportunity in smaller cities, which could add several hundred potential customers, each expected to invest between $50,000 to $100,000 per year for ShotSpotter Respond[71] - The international market for ShotSpotter Respond includes around 200 cities in regions such as the European Union and Central America, with an estimated average investment of approximately $1.0 million per year per customer[72] - The company estimates the domestic market for its security solutions includes approximately 5,000 college campuses and airports, with average customer investments of $50,000-$75,000 per year[75] - The market for ShotSpotter Connect is estimated to include around 2,500 cities, with average customer investments of $50,000-$100,000 per year, and potential international customers could invest over $100,000 annually[76] - The company anticipates a significant opportunity to expand internationally, estimating a market of approximately 200 cities outside the U.S. with at least 500,000 residents[80] Technology and Solutions - ShotSpotter's gunshot detection technology enables alerts to be sent within approximately 45 seconds of a gunfire incident being detected[30] - ShotSpotter's intelligent sensors are designed to filter out ambient noise and accurately detect impulsive sounds, ensuring high precision in gunfire detection[37] - The Incident Review Center (IRC) operates 24/7 and can confirm gunfire incidents within seconds, providing precise location data and details about the incident[41] - The ShotSpotter Respond application allows field personnel to receive real-time alerts, including a unique Respond ID number, time of gunfire, and contextual information about the incident[47] - ShotSpotter Connect uses AI-driven analysis to direct officers to patrol areas with the highest predicted crime risk, enhancing community engagement and reducing enforcement bias[59][60] - The company acquired the CrimeCenter investigative case management solution in November 2020, rebranding it as ShotSpotter Investigate, aimed at improving clearance rates for law enforcement agencies[66][69] - The company offers Detailed Forensic Reports (DFRs) that provide comprehensive analysis of shooting incidents, which have been admitted in over 100 criminal prosecutions across various states[51] Public Safety and Community Impact - Approximately 80% of gunshots detected by ShotSpotter's public safety solution are not reported to 911 by residents, highlighting a significant public safety gap[21] - The deployment of ShotSpotter's solutions is expected to improve community trust and engagement while enhancing public safety outcomes[19] - The average homicide clearance rate in the United States was 61% in 2019, indicating a need for improved investigative case management solutions[25] - The average homicide clearance rate in the U.S. over the last five years is 61%, indicating a significant opportunity for the company's solutions to assist law enforcement in solving cases more effectively[67] - In 2020, the company issued over 230,000 gunshot alerts to customers, enabling emergency dispatch centers to respond within 45 seconds of a gunfire incident report[55] Financial Performance and Business Operations - The company has faced challenges due to the COVID-19 pandemic, which has materially affected its business operations[14] - The two largest customers, City of Chicago and City of New York, accounted for 18% and 15% of revenues, respectively, for the year ended December 31, 2020[86] - The company has added over 80 new ShotSpotter Respond customers since transitioning to a subscription model in 2011, with a retention rate exceeding 100%[86] - The company plans to leverage its existing customer base to drive adoption of new products, aiming to increase revenue per customer through complementary technologies[78] - Total revenues generated outside the United States were $0.7 million in 2020, compared to $1.0 million in 2019 and $0.9 million in 2018[119] - As of December 31, 2020, the company had cash and cash equivalents of $16.0 million, consisting entirely of bank deposits[412] Workforce and Diversity - The company employed 157 people as of December 31, 2020, with a total attrition rate of less than 11%[109] - Women represented 27% of the company's employees, while underrepresented minorities accounted for 50%[110] - The company is committed to advancing diversity, equity, and inclusion, with a three-pronged strategy to attract diverse talent and create an inclusive workplace[111] Research and Development - The research and development team focuses on enhancing signal processing algorithms and integrating AI, with 20 employees dedicated to these efforts as of December 31, 2020[93] - The company had 34 issued patents as of December 31, 2020, with expiration dates ranging from 2022 to 2034[105] Competitive Landscape - The company operates in a highly competitive environment, facing direct competition from companies like Alarm.com and Safety Dynamics Inc.[100] - The company does not engage in any hedging strategies to manage foreign currency exchange risks, primarily related to the South African Rand[413] - The company has not experienced material effects from inflation on its business or financial condition[414] COVID-19 Response - The company has implemented significant changes in response to the COVID-19 pandemic, including flexible work hours and additional paid time off[117]

Financial Data and Key Metrics Changes - Q4 2020 revenue was $12.6 million, representing a 16% year-over-year growth from $10.9 million in Q4 2019 [7][20] - Full year 2020 revenue was $45.7 million, up over 12% from $40.8 million in 2019 [21] - Adjusted EBITDA for Q4 2020 was $3.1 million, compared to $3.2 million in Q4 2019, while full year adjusted EBITDA increased to $11.9 million, up 28% from $9.4 million in 2019 [22] - GAAP net loss for Q4 was $220,000, or a loss of $0.02 per share, while full year GAAP net income was $1.2 million, or $0.11 per share [26][27] Business Line Data and Key Metrics Changes - The company ended 2020 with $46.3 million in annual recurring revenue in its core ShotSpotter business [8] - Revenue retention rate for the year was 107%, compared to 111% in 2019 [19] - The company managed GAAP revenue attrition to less than $500,000 in 2020, despite pandemic-related budget pressures [11] Market Data and Key Metrics Changes - The company engaged with over 110 cities, alerting on 234,000 gunshot activations in 2020, indicating a material increase in gun violence from 2019 [12] - The company added 6 cities in the Tier 4 and Tier 5 market segments, demonstrating the viability of its services in underpenetrated markets [13] Company Strategy and Development Direction - The company aims to expand its product portfolio with the launch of ShotSpotter Investigate, targeting a broader suite of precision policing solutions [15][29] - The company is focused on maintaining strong customer loyalty and reducing customer creation costs, which stood at $0.51 per dollar of revenue [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic pipeline and the potential recovery of international markets, particularly in South Africa and Latin America [29] - The company reaffirmed its revenue guidance for 2021 at $58 million to $60 million, expecting LEEDS to contribute approximately $10 million in revenue [17][27] Other Important Information - The company ended Q4 2020 with $16 million in cash and cash equivalents, down from $28.7 million at the end of Q3 2020 [27] - Deferred revenue at the end of Q4 was $24.6 million, compared to $20.6 million at the end of Q3 2020 [27] Q&A Session Summary Question: Update on in-person deployments on campuses - Management is actively engaging in security opportunities on college and corporate campuses, particularly in areas with gun violence concerns [34] Question: Thoughts on potential M&A opportunities - Management is currently focused on integrating the LEEDS acquisition and is not actively seeking additional M&A opportunities at this time [36] Question: Factors affecting deployment backlog - Management indicated that the deployment pace is expected to improve in 2021 compared to 2020, with a strong pipeline in place [42] Question: Awareness of potential churn in renewals - Management is cautiously estimating attrition could rise to 3% to 4% in 2021, reflecting ongoing municipal budget challenges [43] Question: Impact of LEEDS on operating expenses - Management noted that LEEDS contributed less than half of the revenue in Q4, with additional amortization costs expected throughout 2021 [45] Question: Sales cycles for smaller cities - Management reported shorter sales cycles for Tier 4 and Tier 5 cities, indicating a strategic focus on these markets [47] Question: Contribution of LEEDS to revenue - Management confirmed that the $10 million contribution from LEEDS is primarily from existing contracts, with no new customer sales expected in 2021 [56]

[o] ShotSpotter' 1 Investor Presentation November 2020 le Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the company's business plans, the anticipated impact of the COVID-19 pandemic, international expansion, expectations regarding future sales and expenses, our ability to capitalize on mark ...

ShotSpotter, Inc. (NASDAQ:SSTI) Q3 2020 Earnings Conference Call November 9, 2020 4:30 PM ET Company Participants Ralph Clark - Chief Executive Officer Mary Hentges - Interim Chief Financial Officer Conference Call Participants Matt Pfau - William Blair Charlie Erlikh - Baird Joseph Osha - JMP Securities Jeremy Hamblin - Craig-Hallum Capital Group Jeff Kessler - Imperial Capital Operator Good afternoon and welcome to ShotSpotter’s Third Quarter 2020 Earnings Conference Call. My name is Eilee and I will be y ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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, 2020 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: 001-38107 ShotSpotter, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 47-0949915 (State or other jurisdicti ...

[o] ShotSpotter' 1 Investor Presentation August 2020 le Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the company's business plans, the anticipated impact of the COVID-19 pandemic, international expansion, expectations regarding future sales and expenses, our ability to capitalize on market ...

Financial Data and Key Metrics Changes - The company reported quarterly revenues of $11.3 million, a 10% increase from $10.3 million in the same quarter last year [8][33] - Net income for the quarter was $866,000 or $0.07 per diluted share, compared to $387,000 or $0.03 per diluted share in Q2 2019 [8][37] - Adjusted EBITDA for the second quarter was $3.4 million, a 41% increase from $2.4 million in the prior-year period [34] Business Line Data and Key Metrics Changes - The company went live with 26 new mines, including expansions in Cincinnati and New York City, and new deployments in Springfield, Illinois, Albuquerque, the U.S. Virgin Islands, and Mammoth County, New Jersey [8][9] - Six multiyear contracts were renewed in Q2, representing nearly $7 million in bookings [14] Market Data and Key Metrics Changes - The number of ShotSpotter loaded gunfire incidents increased by 34.6% year-to-date 2020 compared to 2019, and over 68% since the George Floyd incident [23] - The company has expanded its presence in New York City to cover approximately 74 miles [21] Company Strategy and Development Direction - The company aims to enhance its value by providing complementary solutions to its core gunshot detection technology, including an emissions platform for crime trend analysis [27] - The management believes that the "Defund the Police" movement may represent a potential catalyst for the business, as it aligns with the demand for precision policing [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's long-term opportunities, noting that public safety remains a priority for municipal budgets [42] - The company expects to remain profitable in both Q3 and Q4, as well as for the entirety of 2020 [39] Other Important Information - The company ended the quarter with $25.8 million in cash and no short or long-term debt, while planning to raise the borrowing limit on its revolving line of credit [38] - Deferred revenue at the end of the quarter was $23.3 million, down from $24.6 million at the end of Q1 2020 [37] Q&A Session Summary Question: Can you provide clarity on the revised guidance range? - Management narrowed the guidance due to increased visibility, expecting attrition to be around 2% to 3% instead of the previously anticipated 5% [46][47] Question: What is the potential for further expansion in New York City? - Management indicated that New York City is fairly well deployed, covering over 70 square miles, and further significant expansion is not expected at this time [48][49] Question: How is the selling cycle changing in the work-from-home environment? - The company is finding innovative ways to engage prospects digitally and has seen increased inbound interest due to social unrest and rising gun violence [54][56] Question: Can you comment on the disinformation campaign mentioned? - Management noted that while there is energy around the "Defund the Police" movement, the core of the movement focuses on reimagining policing rather than abolishing it [61][63] Question: How is the company addressing budgetary meetings for municipalities? - Management is optimistic about maintaining normal attrition rates and is prepared to assist municipalities in finding funding to support their ShotSpotter services [70][72] Question: Are there challenges in deployments due to COVID-19 restrictions? - While some mobility has returned, challenges remain in certain areas where restrictions are still in place [74][90] Question: How are Latin American opportunities progressing? - The pipeline for Latin American opportunities is strong, with expectations for at least one booking before the end of the year [83] Question: How does the current level of interest compare to last year? - The current pipeline is stronger than last year, driven by the increase in gun violence [87]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's analysis [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements for the period ended June 30, 2020, showing decreased assets and liabilities, improved net income, and positive operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity, as of June 30, 2020, and December 31, 2019 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 (Unaudited) | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $25,824 | $24,550 | | Accounts receivable and contract asset | $7,839 | $13,883 | | Total current assets | $36,250 | $40,197 | | Total assets | $56,406 | $60,571 | | **Liabilities & Stockholders' Equity** | | | | Deferred revenue, short-term | $21,957 | $26,360 | | Total current liabilities | $26,621 | $32,424 | | Total liabilities | $27,538 | $33,320 | | Total stockholders' equity | $28,868 | $27,251 | | Total liabilities and stockholders' equity | $56,406 | $60,571 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's revenues, gross profit, operating income, and net income for the three and six months ended June 30, 2020 and 2019 Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $11,277 | $10,260 | $21,735 | $19,853 | | Gross profit | $6,924 | $5,983 | $13,040 | $11,572 | | Operating income (loss) | $910 | $290 | $887 | $(30) | | Net income | $866 | $387 | $879 | $25 | | Net income per share, diluted | $0.07 | $0.03 | $0.08 | $0.00 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2020 and 2019 Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,213 | $7,691 | | Net cash used in investing activities | $(2,334) | $(2,402) | | Net cash provided by (used in) financing activities | $(1,456) | $11,843 | | Increase in cash and cash equivalents | $1,423 | $17,132 | | Cash and cash equivalents at end of period | $25,824 | $27,432 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements - The company's main product is ShotSpotter Flex, a leading outdoor gunshot detection system, with other solutions for campuses, infrastructure, patrol management, and environmental protection, primarily on a SaaS-based subscription model[23](index=23&type=chunk) - Significant customer concentration exists, with two customers accounting for **19% and 12% of total revenues** in Q2 2020, and three customers representing **30%, 12%, and 10% of total accounts receivable** as of June 30, 2020[31](index=31&type=chunk)[32](index=32&type=chunk) - The company relies on a single supplier as the sole manufacturer for its proprietary sensors[33](index=33&type=chunk) - As of June 30, 2020, the company has estimated remaining performance obligations of **$55.7 million** for contractually committed revenues, to be recognized through 2025, including **$19.7 million** for the remainder of 2020 and **$26.1 million** for 2021[38](index=38&type=chunk) - In May 2019, the Board approved a stock repurchase program for up to **$15 million**, with **74,520 shares repurchased for $1.6 million** during the six months ended June 30, 2020, leaving **$6.7 million** available[52](index=52&type=chunk)[53](index=53&type=chunk) - The company is involved in a lawsuit alleging collusion to fabricate gunshot alert evidence, which it believes is without merit[73](index=73&type=chunk) - The COVID-19 pandemic is expected to adversely impact operations for at least the balance of 2020, causing deployment delays, customer funding challenges, and potential supply chain disruptions[76](index=76&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting revenue growth driven by new customers and expansions, improved gross profit margin, and increased net income, while detailing significant risks from the COVID-19 pandemic and social unrest [Overview](index=18&type=section&id=Overview) This section provides a general description of the company's business, primary products, customer base, and operational context - The company's flagship product, ShotSpotter Flex, is the primary revenue driver, accounting for approximately **96% of total revenues** in the first six months of 2020[88](index=88&type=chunk) - As of June 30, 2020, the company had coverage for approximately **770 square miles** under contract across 109 cities and 13 campuses/sites, with **761 square miles** having gone live[83](index=83&type=chunk) - The company's two largest customers, the City of Chicago and the City of New York, accounted for **19% and 13% of total revenues**, respectively, for the first six months of 2020[88](index=88&type=chunk) - The COVID-19 pandemic has adversely impacted the company's ability to deploy customer solutions since mid-March 2020 due to work-from-home policies and travel restrictions[83](index=83&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenues, gross profit, and net income, for the reported periods Comparison of Three Months Ended June 30, 2020 and 2019 (in thousands) | Metric | 2020 | 2019 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Revenues | $11,277 | $10,260 | $1,017 | 10% | | Gross Profit | $6,924 | $5,983 | $941 | 16% | | Operating Income | $910 | $290 | $620 | 214% | | Net Income | $866 | $387 | $479 | 124% | - The **$1.0 million revenue increase** in Q2 2020 was primarily due to new customers and expansions, offset by COVID-19 related deployment and renewal delays, with **76 net new square miles** going live since June 30, 2019[127](index=127&type=chunk) Comparison of Six Months Ended June 30, 2020 and 2019 (in thousands) | Metric | 2020 | 2019 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Revenues | $21,735 | $19,853 | $1,882 | 9% | | Gross Profit | $13,040 | $11,572 | $1,468 | 13% | | Operating Income (Loss) | $887 | $(30) | $917 | 3,057% | | Net Income | $879 | $25 | $854 | 3,416% | - For the first six months of 2020, general and administrative expenses increased by **$0.7 million (19%)** primarily due to higher personnel-related costs, business insurance, and legal expenses[141](index=141&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, credit facilities, and cash flow activities, highlighting its ability to meet short-term and long-term obligations - The company's principal source of liquidity is cash and cash equivalents, totaling **$25.8 million** as of June 30, 2020[144](index=144&type=chunk) - The company has a **$10.0 million credit facility**, with no amounts outstanding as of June 30, 2020[144](index=144&type=chunk) - Net cash provided by operating activities decreased by **$2.5 million to $5.2 million** for the first six months of 2020, primarily due to the timing of contract execution, billings, and collections[152](index=152&type=chunk) - During Q2 2020, the company repurchased **74,520 shares** of its common stock for **$1.6 million** under its stock repurchase program[149](index=149&type=chunk) [Item 3. Qualitative and Quantitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Qualitative%20and%20Quantitative%20Disclosures%20About%20Market%20Risk) The company states that its market risk exposure is primarily from fluctuations in interest rates and foreign exchange rates, with no material changes during the six months ended June 30, 2020 - The company's primary market risk exposures are from fluctuations in interest rates and foreign exchange rates[162](index=162&type=chunk) - There were no material changes in market risk during the first six months of 2020[163](index=163&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2020, with no material changes in internal control over financial reporting during the quarter - Management concluded that as of June 30, 2020, the company's disclosure controls and procedures were effective[164](index=164&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2020, that have materially affected, or are reasonably likely to materially affect, internal controls[165](index=165&type=chunk) [PART II. OTHER INFORMATION](index=30&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers additional disclosures including risk factors, equity security sales, and required exhibits [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company outlines significant risks to its business, including the adverse effects of the COVID-19 pandemic and social unrest, dependence on government sales, reliance on limited suppliers, technology upgrades, and privacy concerns - The COVID-19 pandemic is expected to have a material adverse effect, causing delays in deploying new 'go-live' miles, creating funding challenges for customers, disrupting the supply chain, and decreasing employee productivity[169](index=169&type=chunk) - Increasing social unrest and movements like 'Defund the Police' may directly or indirectly affect police agency budgets and funding available to customers[170](index=170&type=chunk)[171](index=171&type=chunk) - The company's business depends on sales to government entities, which have complex, expensive, and time-consuming procurement processes and are subject to budget constraints[172](index=172&type=chunk)[174](index=174&type=chunk) - The company relies on a single contract manufacturer for its proprietary ShotSpotter sensors and a limited number of suppliers for key components, creating supply chain risk[240](index=240&type=chunk) - The company must upgrade its sensors from 3G to LTE technology as carriers discontinue 3G service, estimated to cost between **$4.0 million and $6.0 million** in total[237](index=237&type=chunk) - Perceived privacy concerns regarding government surveillance may deter potential customers from purchasing the company's solutions[239](index=239&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the period, but repurchased 74,520 shares for $1.6 million under its stock repurchase program, with $6.7 million remaining available Issuer Purchases of Equity Securities (Q2 2020) | Period | Total Shares Purchased | Average Price Paid per Share | Value of Shares Remaining for Purchase (in thousands) | | :--- | :--- | :--- | :--- | | April 2020 | — | — | $8,282 | | May 2020 | 74,520 | $21.65 | $6,668 | | June 2020 | — | — | $6,668 | | **Total** | **74,520** | **$21.65** | **$6,668** | [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section provides an index of the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents - This section lists all exhibits filed as part of the quarterly report, including officer certifications and XBRL data files[310](index=310&type=chunk)[313](index=313&type=chunk)

1 [o] ShotSpotter' Investor Presentation May 2020 le Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the company's business plans, the anticipated impact of the COVID-19 pandemic, international expansion, expectations regarding future sales and expenses, our ability to capitalize on market op ...