UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.02 | Results of Operations and Financial Condition. |
On March 9, 2025, Knightscope, Inc. (the “Company”) posted an updated corporate slide presentation (the “Presentation”), in which the Company announced that the Company’s estimated revenue for the year ended December 31, 2024 was approximately $11 million and that its estimated cash balance as of December 31, 2024 was approximately $11 million. The Presentation is attached to this Current Report on Form 8-K (“Current Report”) as Exhibit 99.1.
The foregoing revenue and cash balance information is based on preliminary unaudited information and management estimates for the year ended December 31, 2024, is not a comprehensive statement of the Company’s financial results as of and for the fiscal year ended December 31, 2024, and is subject to completion of the Company’s financial closing procedures. The Company’s independent registered public accounting firm has not conducted an audit or review of, and does not express an opinion or any other form of assurance with respect to, this preliminary estimate.
The information contained in Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Forward-Looking Statements
This Current Report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as “should,” “may,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” “proposes” and similar expressions. Forward-looking statements contained in this Current Report include statements regarding the Company’s preliminary unaudited revenue and preliminary unaudited cash balance for the year ended December 31, 2024. Although Knightscope believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks, uncertainties and other important factors that could cause actual results to differ materially from such forward-looking statements, including the factors discussed under the heading “Risk Factors” in Knightscope’s Annual Report on Form 10-K for the year ended December 31, 2023, as updated by its other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of the document in which they are contained, and Knightscope does not undertake any duty to update any forward-looking statements, except as may be required by law.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
The following Exhibit 99.1 shall be deemed to be furnished, and not filed:
Exhibit | Description | |
99.1 | Presentation. | |
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
knightscope, INC. | ||
Date: March 12, 2025 | By: | /s/ William Santana Li |
Name: | William Santana Li | |
Title: | Chief Executive Officer and President |
Exhibit 99.1
Corporate Overview © Knightscope, Inc. 2025. All rights reserved. MAKE AMERICA THE SAFEST COUNTRY IN THE WORLD |
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to Knightscope, Inc. (“Knightscope” or the “Company”). Forward-looking statements contained in this presentation and other communications include, but are not limited to, statements about the Company’s financial results, outlook, near- and long-term revenue opportunity and goals, profitability, growth, prospects, future products and services, industry and technology developments, and potential addressable market. Words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” or the negative of these words, and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and on information currently available to our management and, as a result, are subject to risks and uncertainties, some of which cannot be predicted or quantified. Knightscope cannot assure you that the results, events, and circumstances reflected in the forward-looking statements in this presentation will be achieved or occur. Many factors could cause actual future events to differ materially from the forward-looking statements in this presentation, including those described in the section captioned “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission. the "SEC") and in our other filings with the SEC. If any of these risks materialize or underlying assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward-looking statements reflect our expectations, plans, or forecasts of future events and views as of the date of this presentation. We anticipate that subsequent events and developments will cause our assessments to change. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Additional risks and uncertainties are identified and discussed in Knightscope’s disclosure materials filed from time to time with the SEC which are available at the SEC’s website at www.sec.gov or on Knightscope’s Investor Relations website at ir.knightscope.com. FINANCIAL DISCLOSURE ADVISORY This presentation contains certain estimated preliminary financial results for the fourth quarter and fiscal year ended December 31, 2024. These estimates are based on the information available to the Company at this time. The Company's financial closing procedures for the fourth quarter and full year 2024 are not yet complete and, as a result, actual results may vary from the estimated preliminary results presented here due to the completion of the Company's financial closing and audit procedures. The estimated preliminary financial results have not been audited or reviewed by the Company's independent registered public accounting firm. These estimates should not be viewed as a substitute for the Company's full interim or annual financial statements. Accordingly, you should not place undue reliance on this preliminary data. TRADEMARKS Knightscope owns or has rights to various trademarks, service marks and trade names that it uses in connection with the operation of its businesses. This presentation may also contain trademarks, service marks, trade names and copyrights of third parties, which are the property of their respective owners. The use or display of third parties’ trademarks, service marks, trade names or products in this presentation is not intended to, and does not imply, a relationship with Knightscope, or an endorsement or sponsorship by or of Knightscope. Solely for convenience, the trademarks, service marks, trade names and copyrights referred to in this presentation may appear without the TM, SM, ® or © symbols, but such references are not intended to indicate, in any way, that Knightscope will not assert, to the fullest extent under applicable law, its rights or the right of the applicable licensor to these trademarks, service marks, trade names and copyrights. |
WE STOP CRIMINALS . MAKE AMERICA THE SAFEST COUNTRY IN THE WORLD |
At a Glance Founded 2013 Employees 70 Headquarters Mountain View, CA Machines in Network ~10,000 Market Capitalization $53.1M (as of Dec 31, 2024) Estimated Cash $11M (end 2024 estimate) Estimated Revenue $11M (end 2024 estimate) Knightscope, Inc. (NASDAQ: KSCP) is a public safety innovator headquartered in Silicon Valley on a long-term mission to make America the safest country in the world. • We design, engineer, manufacture, deploy and monitor cutting-edge autonomous machines and software applications utilized by businesses and governments nationwide • Our advanced technology is used to deter, detect and report criminal activity to better protect the places people live, work, study and visit – targeting an estimated $230 billion TAM • First mover advantage with 3+ million hours of autonomous operations across the country • Achieved Authority to Operate (“ATO”) with U.S. Federal Government poised for long-term sustainable and profitable growth • Next generation new products under development include the K7 Autonomous Security Robot and the K1 Super Tower to be launched in 2026 NOTE: Based on preliminary unaudited information and management estimates for the year ended December 31, 2024, not a comprehensive statement of the Company's financial results as of and for the fiscal year ended December 31, 2024, and subject to completion of the Company's financial closing procedures. The Company's independent registered public accounting firm has not conducted an audit or review of and does not express an opinion or any other form of assurance with respect to, this preliminary estimate. See slide 2. Source: Company estimates and public sources. See Appendix. |
THE PROBLEM MAKE AMERICA THE SAFEST COUNTRY IN THE WORLD |
• Security guards cost businesses $25 to $65 per hour ($220K - $570K per year for 24/7 coverage) • Police officers cost communities $50 to $150 per hour ($438K - $1.3M for 24/7 coverage) • 24/7 post requires 4 humans as not possible to triple shift people EXPENSIVE INEFFICIENT POOR RESULTS • Every 26 seconds a violent crime occurs somewhere in the country • Every 5 seconds a property crime occurs somewhere in a community • Vehicle thefts increased by 12.6% in 2023 • Public safety is now a nationwide crisis plaguing communities • 100% to 400% employee turnover rates for security guards making quality and consistency in service impossible • Police officer retention crisis with 10% to 30% vacancy rates • Lack of real-time intelligence and insufficient physical deterrence Existing Public Safety Infrastructure Source: Company estimates and public sources. See Appendix. |
Annual negative economic impact of crime in the U.S. $2.6 Trillion Source: Company estimates and public sources. See Appendix. |
OUR TECHNOLOGY MAKE AMERICA THE SAFEST COUNTRY IN THE WORLD |
KSOC KEMS Crime Fighting Technology HARDWARE + SOFTWARE + HUMANS RTX KNOC • Risk & Threat Exposure (RTX) team adds 24/7 humans-in-the-loop to provide vetted intelligence and reduce false alarms • Knightscope Network Operations Center (KNOC) team actively monitor robot health to ensure continuity in operations • Real time information through Knightscope Security Operations Center (KSOC) and Knightscope Emergency Management System (KEMS) software applications • Up to 200+ terabytes of data generated per annum per machine ASR ECD • Autonomous Security Robots (ASR) patrol to deter criminal acts and provide real-time video + audio insights on incidents • Emergency Communication Devices (ECD) provide instant access to emergency services in times of need |
Physical A.I. Physical Presence Announcements Strobe Lights Blue Light Signage HD Video Live Audio People Faces Vehicles Plates Thermal Signals Gunshots Real Time Alerts Human-in-the-Loop Escalations Daily Reports Quarterly Reviews DETER + DETECT + REPORT |
• Autonomous Security Robot annual subscriptions are $1 to $11 per hour • Emergency Communication Devices are $5,000 to $12,000 product sales (with service agreements charged separately) COST EFFECTIVE EFFICIENT REAL RESULTS • Clients have renewed subscriptions from 2 years up to 8 years consecutively • Numerous crime fighting wins • Public safety now has a path forward to the future of safer communities • No employee turnover or vacancy issues • Technology doesn’t sleep and is triple shifted operating 24/7/365 • Provides real-time on-site intelligence and a physical deterrence Knightscope: The Future of Public Safety |
OUR CLIENTS MAKE AMERICA THE SAFEST COUNTRY IN THE WORLD |
$230 BILLION CY2025 TAM TOTAL ADDRESSABLE MARKET $57B Public Safety & Government Enterprise $34B Critical Infrastructure $37B Retail & Hospitality $38B Healthcare $7B Education $21B Transit & Smart Cities $20B Residential & Community Security $18B Public Safety & Government Law Enforcement Correctional Facilities Border Security Military Bases Critical Government Infrastructure Enterprise Corporate Campuses Industrial & Manufacturing Logistics & Warehousing Commercial Real Estate Data Centers Critical Infrastructure Energy & Utilities Telecommunications Water & Wastewater Facilities Seaports & Transportation Hubs Retail & Hospitality Shopping Malls & Retail Centers Casinos & Gaming Facilities Hotels & Resorts Stadiums & Event Venues Parking Lots & Structures Healthcare Hospitals Medical Centers Education K-12 Schools & Campuses Colleges & Universities Training Centers & Research Facilities Transit & Smart Cities Airports Rail & Transit Hubs Parks & Public Spaces Smart City Surveillance Networks Residential & Community Security Apartments & Condominiums Homeowner Associations (HOAs) Subdivisions & Gated Communities Mixed-Use Developments Source: Company estimates and public sources. See Appendix. |
Broad Client Base LIVE Apartments Condominiums Homeowner Associations Mixed Use Subdivisions WORK Corporate Campuses Commercial Real Estate Government Industrial Logistics Facilities Manufacturing Plants STUDY K-12 Schools Universities Training Centers CRIME can occur in all the places that are important to people Knightscope technologies operate 24/7/365 to PROTECT these places VISIT Airports Casinos Hospitals Hotels Parking Parks Rail Retail Storage |
Diversified Business Model BLENDED model with strong recurring revenue and transactional sales Ensures stability and growth potential RECURRING REVENUE ASR Machine-as-a-Service (MaaS) Knightscope Network Operations Center (KNOC) Risk & Threat Exposure (RTX) Knightscope Emergency Management System (KEMS) ECD Full-Service Maintenance (FSM) TRANSACTIONAL REVENUE Blue Light Towers Blue Light Emergency Phones Call Boxes Retrofit Kits HIGH MARGINS EXPANSION POTENTIAL |
We Protect the Places You LIVE WORK STUDY VISIT |
OUR GROWTH STRATEGY MAKE AMERICA THE SAFEST COUNTRY IN THE WORLD |
Moonshot FUTURE AI DRIVEN Public Safety Infrastructure is Advanced and Intelligent 1 million law enforcement professionals 1.5 million security guards 85 million cameras 300,000law enforcement vehicles EXISTING Public Safety Infrastructure is Archaic and Fragmented ROBOTS WILL BE EVERYWHERE. Additional 1 million machines-in-network that can see, feel, hear, smell, speak and autonomously cooperate to support the 2.5 million human officers and guards 24/7/365 |
Key Growth Drivers U.S. Federal Government Growth • Deployed first K5 GOV at U.S. Dept of Veterans Affairs, • Won U.S. Air Force Phase 1 contract • Achieved Authority to Operate (“ATO”) across federal agencies • Establishing Washington Office to drive business development, government relations and strategic communications Growth Led by New Products • Alpha Prototype of K7 Autonomous Security Robot completed, Beta Prototypes in 2025, targeting production in 2026 • Accelerated product development schedule for K1 Super Tower with Alpha and Beta Prototypes in 2025, targeting production in 2026 • Plan to significantly grow top line revenue profitably Organic and Inorganic Growth • Partnered with Verizon Frontline advanced telecommunications network for first responders to drive growth • Scaling ASR and ECD business in healthcare, gaming, industrial, real estate, education, transportation and government • Acquisition(s) and partnership(s) opportunities being vetted |
FINANCIAL OVERVIEW MAKE AMERICA THE SAFEST COUNTRY IN THE WORLD |
Balance Sheet ü Converted outstanding preferred stock to common ü Eliminated outstanding warrants with toxic terms ü Raised over $40M (2024) Corporate Governance ü New Board of Directors with industry experience ü Increased authorized shares ü Eliminated preferred share class ü Updated capital structure to align with peers Operations ü Outsourced non-core field technician services ü Cut management team by one 1/3rd (2024) ü Reduced G&A payroll expense by 1/3rd (2024) ü Established new manufacturing process ü Recruited new sales team and accounting teams ü R&D investment in new technology platforms ü Positioned for long-term sustainable growth ü Initiated facility consolidation ü Kicked off search for new headquarters Financial Overview • 2024 and first 2 quarters of 2025 focused on fundamental restructuring of the business to better align with market and opportunities given proven technology • Deep financial review of income statement activities to optimize operations • Significant balance sheet improvements to set strong foundation for growth • Executed and planned changes to yield near-term choppy results intended to set the stage for growth in 2026 • Recurring revenue for recurring societal problem targeting to grow over time |
Management William Santana Li Chairman and CEO Apoorv S Dwivedi EVP and Chief Financial Officer Aaron J Lehnhardt EVP and Chief Design Officer Jason M Gonzalez SVP Client Development Ronald J Gallegos SVP Client Experience EXPERTISE Domain Experts Management team has 5 to 11 years of operating experience scaling up Knightscope since inception and are prepared to fuel the next stage of growth Execution Design, development, operations, commercialization, acquisitions Public Company Governance Proven executive experience at multiple public companies • Seasoned entrepreneur and former executive at Ford Motor Company • Founder and Chief Operating Officer of GreenLeaf, which became the world's 2nd largest automotive recycler (now NASDAQ: LKQ) Mercedes Soria EVP and CIO | CISO • Award winning former Deloitte software engineering leader with deep experience in enterprise, artificial intelligence and startups • Former Ford Motor Company senior designer, digital design expert and Alias 3D instructor at College for Creative Studies • Extensive finance, corporate and startup experience and former GE Finance, Cox Automotive, Sears and Nxu • Seasoned security professional with 20+ years of experience and former Whelen Security, G4S, Honeywell, and Tyco Integrated Security • Seasoned security professional with 20+ years of experience and former AlliedBarton, G4S, Securitas and Geofeedia |
Board of Directors William Santana Li Chairman and CEO Robert A. Mocny Independent Director Melvin W. Torrie Independent Director William G. Billings Independent Director |
NASDAQ: KSCP MAKE AMERICA THE SAFEST COUNTRY IN THE WORLD JOIN US AND BE A FORCE FOR GOOD |
Existing Public Safety Infrastructure Sources: https://www.pewresearch.org/short-reads/2024/04/24/what-the-data-says-about-crime-in-the-us https://www.pewresearch.org https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/home https://www.pewresearch.org/short-reads/2024/04/24/what-the-data-says-about-crime-in-the-us/ www.fbi.gov Negative Impact of Crime Sources: https://news.vanderbilt.edu/2021/02/05/new-research-examines-the-cost-of-crime-in-the-u-s-estimated-to-be-2-6-trillion-in-a-single-year 2025 U.S. TAM Sources: • IBISWorld – Security Services Industry in the U.S. (2024) • MarketsandMarkets – Autonomous Security Robots Market Forecast, 2023–2028 (December 2023) • Allied Market Research – Emergency Communication Systems Market Growth Analysis, 2023–2030 (January 2024) • Frost & Sullivan – AI-Driven Security & Surveillance Trends, 2024 (February 2024) • DHS & FBI Annual Reports – U.S. Public & Private Sector Security Spending Estimates (2023) • National Institute of Standards and Technology (NIST) – AI & Robotics in Public Safety: Market Growth Report (2023) • Homeland Security Research Corp. – Critical Infrastructure Protection & Perimeter Security Market Outlook, 2023-2028 (October 2023) • American Public Transportation Association (APTA) – Rail & Transit Security Spending Projections (2023) • Commercial Real Estate Development Association (NAIOP) – Corporate Campus & Industrial Security Market Trends (2024) • National Retail Federation (NRF) – Retail Security & Loss Prevention Spending Report (2023) • American Gaming Association (AGA) – Casino & Hospitality Security Expenditures, 2023-2027 (November 2023) • National Center for Education Statistics (NCES) – K-12 & Higher Education Campus Security Budgets (2023) • National Apartment Association (NAA) – Multifamily Housing Security Market & Crime Prevention Strategies (2023) • Urban Land Institute (ULI) – Residential & Mixed-Use Development Security Trends (2023) • Company Estimates – Knightscope’s proprietary market projections based on customer demand, RFP data, and competitive landscape Appendix |