SUNNY CALIFORNIA

Another first for Knightscope!  

We just signed another contract, this time for a multi-million dollar residential estate in Southern California.  

I guess we can no longer say that we’re focused solely on commercial and government accounts!

PEACHY!

Knightscope is pleased to announce the signing of an agreement with Alaris Global Operations to deploy a K5 Autonomous Security Robot at The Mall at Stonecrest in Stonecrest, Georgia.  Peachy!

RISE OF THE MACHINES

Here's a look at where Knightscope has been over the last 7+ years.  It has been a long road to build all our technology from scratch. And yes, each machine says "Designed and Built in Silicon Valley" on them.  Made in the USA!  🇺🇸 

ANOTHER POLICE DEPARTMENT

THE U.S. DEPARTMENT OF VETERANS AFFAIRS 

We could not be prouder to have the opportunity to partner with the U.S. Department of Veterans Affairs Police Department!  

This is our first agreement on the federal level, and it expands our growth in healthcare and law enforcement, all the while supporting the care and safety of our veterans during their visits to the Audie L. Murphy Memorial Veteran’s Hospital in San Antonio, Texas.  

It’s admirable to see the VA adopt cutting edge technology as they strive to provide the best possible experience for everyone that visits their healthcare system.  

Knightscope announced today that the Company has been awarded the contract for Autonomous Security Robots (ASRs) by the National Cooperative Purchasing Alliance (NCPA).

NCPA is a leading national government purchasing cooperative working to reduce the cost of goods and services by leveraging the purchasing power of public agencies in all 50 states.  NCPA utilizes state of the art procurement resources and solutions that result in cooperative purchasing contracts.  This ensures that NCPA members are receiving products and services of the highest quality at the best prices, making Knightscope available for use to over 90,000 agencies nationwide in both the public and nonprofit sectors including: K-12, Higher Education, City, County, State, Healthcare, Church/Religious and all Non-profit organizations.  Public agencies within the NCPA may now acquire Knightscope ASR subscription services without going through a lengthy and costly RFP process for the next 5 years.

"NCPA works diligently to select vendors of the highest quality, performance, and most importantly, those with the best value proposition," said Jonathan Applegate, Director of Operations at NCPA.   "NCPA strives to provide its members with best-in-class solutions to real-world challenges and Knightscope presents a bleeding edge opportunity to help resolve the need for affordable, fully autonomous remote monitoring solutions."

Initial contracts with Knightscope are for a term of one (1) year, with automatic annual renewals totaling up to five (5) years in duration. Organizations interested in procuring Knightscope's technologies need only be members to take advantage of NCPA's benefits.

Knightscope Lands Another Contract

A new California power pair scheduled for deployment - Knightscope and the Gardens Casino!

Despite the pandemic and economic volatility, we continue to deliver on contracts and grow.

Remember, "robots are immune", remote monitoring will become the norm, and the entire nation is now focused on Public Safety. 

Knightscope Secures Memorandum of Agreement from U.S. Military

An unnamed branch of the U.S. Armed Forces has issued a Memorandum of Agreement to Knightscope for a contract totaling up to $1.5 million for an undisclosed location.  Subsequently, the relevant Contracting Office has deemed the proposal "Selectable" pending internal funding. 

“Knightscope is a phenomenal company who can fill a critical capability gap for our installation and for Security Forces as a whole by leveraging technology to support our ability to execute I_______________. Together, with A_______________________, and Knightscope’s expertise we can ensure N___________________ remains a safe and secure location to bolster our nation’s combat fighting prowess in order to guarantee our continued a__________________ dominance.”

It would be one of Knightscope’s greatest honors to have the privilege to protect and serve the brave women and men who selflessly serve our country.  Onward and upward! 

This testimonial may not be representative of the experience of other customers. This testimonial is no guarantee of future performance or success.

Knightscope Scores a Win Against Domestic Violence

Unexpected events can happen at any place, at any time.  When we talk about securing the workplace, many times we are referencing the typical events faced such as unauthorized entry onto the premise, employee theft, cyber threats, etc.  But what about domestic violence?  The U.S. Department of Labor (DoL) reports that domestic violence events can cost employers upwards of $1.8 billion dollars in lost productivity from employees and up to 8 million days of paid work leave annually due to Family and Medical Leave Act (FMLA) requests and vacation/comp time used for employees to seek treatment or allow for recovery.             

Needless to say, domestic violence incidents are extremely dangerous.  Having responded to hundreds of domestic calls in our careers, we can recall only a very few that did not end up in someone resisting arrest or worse.  These are highly trained, well equipped police officers with back up, 35 lbs of gear, a ballistic vest and a side arm that are responding to these calls and, for most police agencies, it is required that at a minimum two officers respond for safety reasons.  Why?  Because they are so unpredictable, highly emotional and unbelievably dangerous - remember, they are on their own turf with a variety of weapons available to them and at their fingertips.  We certainly do not want an unarmed, ill-equipped, but well intentioned, security officer attempting to de-escalate a situation such as this. For this reason, security professionals want to take every opportunity to ensure that they can gather information, secure the location, and keep employees safe while the police respond.  

If you are not familiar with the “General Duty Clause” outlined in the DoL's Occupational Safety and Health Administration (OSHA) standards, it basically states that ALL employers need to provide a safe working environment from recognized hazards.  As a security practitioner we recognize that our employees' personal lives may, at some point, creep onto our property and we have a duty to safeguard them from the potential threats associated with that.  OSHA points out that a solid domestic violence prevention plan in the workplace is to assess the location and identify ways to mitigate these instances.  It is recommended that written policies, awareness training and control methods be put into place to reduce the likelihood of these instances. 

THE CRIME FIGHTING WIN

Now let's discuss a real case that was shared with our Client Experience team recently.  A young lady was picked up by a male subject from her place of employment to go to lunch. The couple returned after being gone for roughly an hour and an argument was taking place inside the vehicle as it drove into the lot and parked.  At that point, the situation escalated with the male subject violently striking the female in the face. 

The female exited the vehicle and reported the attack to the security team.  During a video review with local law enforcement, it was found that although the entry and exit of the vehicle was captured by pole mounted HD cameras, it did not provide a sufficient view for the security team or law enforcement to see the assault.  

The security manager then went to their Knightscope Security Operations Center (KSOC) and pulled the video from their Autonomous Security Robot.  The entire incident that was captured at eye level and in full high definition.  Not only was the entire incident recorded, but it was captured at eye-level where the actual assault was in plain view the entire time.  The video was successfully saved, downloaded and turned over to law enforcement and a prosecution followed.  It was a win for Knightscope, its client organization and for the employee!

This is a wonderful example of a company looking out for its employees.  Although they could not stop the incident from occurring, they had all the applicable security technologies in place to bring justice to their female employee and effectively place the bad guy in jail. Had Knightscope’s ASR not been in place, it would have been a prolonged incident to attempt to end.  With the undeniable proof of the assault, it was yet another slam dunk case for our client and local law enforcement. 

As you are walking around your the places you visit, work, study, live and play and take a moment to think about the possibilities of different events occurring in your area.  Does the security technology meet the needs?  Is there something that could be done better? Perhaps Knightscope can help! 

Knightscope Now Backed By Over 10,000 Investors!

That's right!  Over 10,000 investors have backed Knightscope's long-term ambitious mission to make the United States of America the safest country in the world.   We thought you would enjoy seeing remarks from some of our new incoming investors:

"I strongly believe that Knightscope is a leading in the industries of fighting crimes around the world. I'm grateful that I can be part of this company that is not only paving the way for our future generations to live safely environments without fear. So that our kids can enjoy life to the fullest." - Tchamong H.

"I am an ex cop and think this thing will work!!" - Steve P.

"I invested a month ago and have been so impressed with what I've seen that I wanted to invest more. I really like William Santana Li. He's the #1 reason I invested in the company. A guy with that kind of track record is likely to be successful again. Plus, I do think the robots are outstanding and are highly needed as well." - Scott R.

"This market just seems so wide open and this company appears to have the corner on such a concept. Blood, sweat and tears seems to be the motto and I love the opportunity to see us all 'win'." - Tina S.

"A.I. will play a big part in the future of Law Enforcement and this company is made in the USA." - Manuel P.

"After seeing the CEO at the Angels & Entrepreneurs retreat it looks like a solid investment with an experienced leader." - Kieron B.

"Autonomous Security Robots (ASR) are an Interesting technology, has a huge addressable market, and Knightscope is the first mover in the space. I'm in healthcare and several of my health system clients are utilizing ASR on campus. Healthcare tends to be slow adopters of technology but they seem to be moving first with ASR, they see the value, and my bet is - so will other industries." - Eric H.

"Using robotics to monitor and reduce crime is much more efficient." - Robert M.

"FUTURE OF NATIONAL SECURITY" - Mars C.

"I invested because the world is changing rapidly, with police officers integrity being questioned, the covid impact and tension at an all time high. I see the growing need for this sort of technology and believe in your mission to keep the USA safe - globally for that matter." - Amy G.

We at Knightscope, cherish our investors who are from all walks of life.  We are forever grateful for their kind, unwavering and gracious support.  We've been through a lot together - the good, the bad, and the ugly.  But we stick together, no matter what, laser focused on delivering what our Nation so desperately needs - we need to reimagine Public Safety.  Now. 

This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.  These testimonials may not be representative of the experience of other customers. These testimonials are no guarantee of future performance or success.

REIMAGINE PUBLIC SAFETY

We are often asked how we invested the $40+ million we had raised since inception and what results we have achieved.  And as importantly, what does Knightscope intend to do with the new incoming capital from the current financing?

THE PAST 

Well, first of all, we started with literally zero!   Nothing more than ½ dozen folks wanting to change the world with only our enthusiasm and a pitch deck.  No office, no technology, no clients, nothing.   Zilch.  That was 2013!

Fast forward 7 years and we’ve accomplished a great deal – but with the understanding we have a profound mountain of work ahead of us in the coming decades: 

• Grew into a 15,000 sq ft facility located in Mountain View, California in the heart of Silicon Valley where we design, engineer, and build our technology. Our Autonomous Security Robots are Made in the USA and you can check it out here! 
• We’ve operated (“survived”) our 3^rd winter and have operated over 1 million hours and secured contracts across 5 time zones
• Won numerous contracts from Fortune 1000 major corporation to hospitals, schools, manufacturing plants, logistics facilities, and commercial real estate.
• Additionally, landed our first few law enforcement agencies, municipalities and our first federal government contract
• Contributed to society with numerous crime fighting wins including data proving the crime fighting effectiveness of the technology.
• Closed over 9,000 awesome investors that have supported the company’s effort to reimagine Pubic Safety
• Navigated through a global pandemic where the team hasn’t missed a beat, continued to operate 24/7 across the nation supporting our clients who are ‘essential services’, and despite the societal and economic upheaval – are actively hiring.

Probably most gratifying for us is we were told hundreds of times “this will never work”, “you are out of your mind”, “it is hardware and software – too complicated, you should pick one” and the clincher “physical security is not an investment thesis and you need to go away.”  Never bet against relentless entrepreneurs determined to do important work for our country!

And now the entire nation is driving towards re-inventing Public Safety – during a pandemic.  Yes, “robots are immune”, but this is all indeed surreal, especially from where we sit at that intersection. 

THE FUTURE

The primary use of proceeds for this financing is to scale up our operations targeting to get to profitability now that we have this extremely difficult technology at an appropriate maturity level.  And how exactly do we do that? 

Well, like we like to say, after much pain and suffering, now pretty much every issue in the building can be addressed with “people, time, and cash”.  So we need to recruit a properly staffed marketing/sales/service team.  Hire a bunch more engineers.  We need more deployment specialist and production technicians.  Basically, need to grow every part of the business, carefully. 

Plus, we are not big fans of finished goods inventory, but for a variety of cost and quality reasons it is time to build ahead so we can improve revenue recognition as well as reduce material costs – while improving build consistency.  

We also wish to add a great deal more capabilities so the machines can “see, feel, hear, and smell” and do 100 times more than a human could ever possibly do. 

Our work is more than cut out for us.  But we believe we can do it – so long, as we have the continued and unwavering support of our investors. Folks often ask why our CEO makes himself available to all 9,000+ investors, answers thousands of questions day/night and always in a timely manner.   His answer: 

“Without our investors, Knightscope couldn’t do what we do.   We couldn’t turn what was supposedly “impossible” into an actual reality.”

And for that…we are forever grateful!

__________________________________________________________________________________________________________________________

This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.

Throughout Knightscope's campaign our technology and traction have been featured throughout numerous outlets.  Here's a roundup of a few of them for you as we close our current Reg. A+ offering ahead of July 20, 2020!

‘RoboCop’ makes debut at California police department

A California police department has rolled out a new crime-fighting tool. “RoboCop” reported for duty as the newest member of the Huntington Park Police Force. It will patrol city parks and buildings, and keep a digital eye out for trouble. Click to watch here. 

Knightscope CEO on Fox Business w/ Neil Cavuto

William Santana Li, Chairman and CEO, Knightscope, Inc. discusses impact of AI and Robotics on jobs with Neil Cavuto. Click here to watch.

Knightscope using robot technology to enhance security

Knightscope CEO William Santana Li chatted with Proactive's Steve Darling at the 12th annual LD Micro Conference in Bel Air, California. Click to here to watch.

As seen on CBS's Innovation Nation with Mo Rocca

These security robots are helping keep public areas safe (click to watch here)! #InnovationNation

Mr. Wonderful

Knightscope's CEO, William Santana Li, was interviewed by StartEngine's strategic advisor, Kevin O'Leary, to dig into the business details. Click to watch here.

This Reg A+ offering is made available through StartEngine Primary, LLC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.

A number of investors are simply driven by a ‘buy low, sell high’ approach. They take a strong look when there is an opportunity to buy into a promising, private startup before a possible liquidity event. 

They look at the market, the technology and the team and decide if they should make a calculated risk to invest, by considering factors like, in our case, will the ‘market for crime' continue? 

Are self-driving technology, robotics and A.I. future growth industries? 

Does the team have a track record of delivering despite the headwinds associated with commercializing bleeding edge new technologies?

And since we are often asked, here are the historical share prices over the last 7 years:

Historical Share Price (year priced)

2013 $0.3317 Seed Round (oversubscribed) - $4 million cap on convertible note

2014 $0.8932 Series A (oversubscribed) - $15 million pre-money valuation

2015 $2.0401 Series B - $45 million pre-money valuation

2016 $3.0000 Series m, m-1, m-2 (oversubscribed) - $80 million pre-money valuation

2017 $3.5000 Series m-3 (oversubscribed) - $123 million pre-money valuation

DISCLAIMER: The value of the company was not established using a formal appraisal, and the price per share of the previous and current offerings was set independently, by the Company, without the help of an independent third party.  Investors should be aware that the price at which securities are sold by the issuer, whether now or in the future, is not an indication of the inherent value of the company and an increase in price does not necessarily correlate to an increase in value. Additionally, there can be no assurance that there will be any market for the shares under this offering in the future, at the price paid or at any other price.

We Are Hiring!

That’s right, you read that headline right!  There are 42 million people unemployed in the U.S., we are all in the middle of a pandemic, massive economic volatility, and groundbreaking societal upheaval … and Knightscope is hiring!

Why?

It is our duty.  Our country has given us so many opportunities including the honor and privilege to build a company from scratch, against all odds, to have a chance to help better secure our country.  We also must hire because our technology has proven to work in the marketplace, and we are growing!

Yes, we are a startup.  Yes, it is filled with risks.  Yes, things have gone wrong and more will go wrong in the future.  But since when in our country do we seek the easiest path or work on easy things – and not work on the most difficult and complex challenges?  We are Americans.

The management team at Knightscope has been through a lot in our careers.  From seeing the 1987 Black Monday Crash to living through the 2000 Dot Com Crash, 2001 9/11, 2008 Great Recession and the 2020 COVID-19 Pandemic.  And in these times what is required is leadership and the resolve to do whatever it takes to make tomorrow a better day. And that won’t happen with idle chatter and tweeting during a crisis. It happens with taking action. Now. 

Back at the start of my career, after applying to dozens and dozens of companies for an internship, the only one that gave me a chance, happened to be my first choice.  Actually, Ford Motor Company gave me 2 different offers to join as a summer intern while finishing up scrambling through Carnegie Mellon University in 3 years.  

I didn’t come from a wealthy family and if I could ‘generate revenue while eliminating costs’ for a whole year, I was going to do whatever it took to make it happen.  Boy, was that painful. I promised myself that summer that I would work so hard and smart, that they would eventually ‘have to’ hire me back full-time.  

Ford gave me that shot right after the Gulf War – actually they attempted to give me a signing bonus with the full-time job offer.  I refused the signing bonus to the shock of the HR department.  I had spent the summer looking over all their annual reports for decades and with that balance sheet, they had no business handing out bonuses.  

Well, now it is time to pay it forward. 

I have heard that for summer 2020, many internship offer letters have been rescinded leaving fresh graduates out in the cold.  That is not right or just.  So, as part of Knightscope’s hiring efforts for various full-time positions, we have also opened up 3 paid summer internships.  If the interns perform exceptionally well, there is a chance to eventually turn them into full-time positions. 

I hope this small gesture will convince other Founders to do the same and extend a helping hand to the next generation – when it counts the most.  When things are absolutely impossible, when it is really hard, when you are in a crisis. 

And if you know of some stellar candidates for both full-time positions and internships please be sure to send them to our Careers page at the Knightscope corporate website to apply!  

Onward and upward – with all that we’ve got!  Red, white and blue. 

- Bill 

PHOTO: “Well hello, Oakland, California.  I’m all dressed up and ready to patrol.”  Another Bay Area deployment signed, sealed and about to deliver.

NEW CONTRACTS DURING PANDEMIC

The New York Police Department reported that commercial burglaries spiked 169% since the coronavirus shutdown. As a result, businesses and public safety practitioners are actively seeking new technologies to augment security programs to further protect and remotely monitor commercial assets. 

Knightscope recently received a purchase order from the U.S. Federal Government for an undisclosed location and contracts to deploy its Autonomous Security Robots (ASRs) at a shopping center in California and an aviation client in Alaska. “Robots are immune and remote monitoring is likely to see a substantial increase in the marketplace,” said William Santana Li, chairman and chief executive officer, Knightscope, Inc.

Knightscope has contracts from paying clients across the United States in 5 time zones and has been credited for reducing crime where its Autonomous Security Robots have been deployed. Remote monitoring is on its way to becoming the norm. 

We often get questions about privacy and our Autonomous Security Robot (ASR) technology so we thought to help with this update.

Every day, we use digital devices and web services to shop, track our fitness, chat with friends, play games, check-in at stores and restaurants, and many other services like, in this case, the use of security robots to protect our physical safety or our property. While the use of technology is becoming increasingly essential in our digital society, people worry about how their privacy is being affected.  We get this question a lot, so let’s jump in with both feet here to examine whether or not these “trusty” security robots are invading one’s privacy.

To ensure we are on the same page, here are a couple of definitions of privacy straight from dictionary.com:

a.     “Privacy” is the state of being apart from other people or concealed from their view; solitude; seclusion

b.     “Privacy” is the state of being free from unwanted or undue intrusion or disturbance in one's private life or affairs

There is some common ground shared in these two definitions, but it is important to point out that in both scenarios the assumption is that a person’s private life is being unwantedly broadcasted to the public.  This is not what security robots do.

When a security robot is hired to protect a site, there is no personally identifiable information (PII) that is exchanged during the monitoring service.  According to  investopedia.com, personally identifiable information (PII) is information that, when used alone or with other relevant data, can identify an individual.  PII may contain direct identifiers (e.g., passport information) that can identify a person uniquely, or quasi-identifiers (e.g., race) that can be combined with other quasi-identifiers (e.g., date of birth) to successfully recognize an individual.  The only information that security robot end users get is an image of a person, which they typically already have in the form of an access badge for employees and visitors.  Nothing new here.  Additionally, the only information that the manufacturer gets from its customers is the email address of the specific security team members utilizing the technology so they can get access to the user interface.  No PII here either. 

Having a sense of privacy when you are outside of your home is a false proposition in todays’ technology world and will be increasingly more so in the very near future.  What many people either do not know or are not aware of is that when you go to the grocery store, the bank, the jewelry store, a hospital or to a casino, for that matter, these locations already have fixed cameras that take your picture or capture you in security footage 24/7/365.  The average person gets their picture taken about 75 times per day in the USA and a whopping 300 times per day in London.  Foiled yet again.

The primary method that bad actors use in order access people’s personal information, which is typically stored in company systems, is via hacking or social engineering techniques.  Even though no PII data is stored on security robot servers, the Company hires white hat hackers under contract who try to break into the systems on a daily basis.  These are the same hackers that companies like Twitter, Starbucks and General Motors use.  The researchers (they prefer to be called that instead of hackers) find a vulnerability and the Company pays them a bounty and fixes it.  Using ethical hackers has many advantages - like a 115% increase in ROI, a 66% reduction of internal efforts and a 50% decrease in test reductions for those companies that use them.  There are many ethical hacking companies, but an example of one such company is HackerOne.  This is yet another way in which security robot systems secure data so that one can be sure that PII is safe.  Scratching head… it’s not looking good here.

Surely having constant video of a person captured without their knowledge or consent is a violation, though, right?  Sorry, but no.  The United States Supreme Court adopted the two-prong test established in the landmark case of Katz v. United States in 1967 to protect your Fourth Amendment rights.  Essentially, one does not have an expectation of privacy in a public place and, therefore, video does not contravene an individual's actual, subjective expectation of privacy.  

Surveillance systems are intended to monitor for illicit activities and potential threats.  Only videos of incidents and anomalies are reported for review, while the remaining video is stored for forensic investigations.  How long that video is stored depends on accepted industry best practices, end user policies and any special considerations resulting from a custom planned robotic deployment.  Stored video may be saved following a strict chain of evidence requirement so that it might be used by the police or courts to investigate and prosecute a crime.  Otherwise, the video gets deleted at the prescribed intervals and removed from the system.

So, no intrusion or broadcasting of one’s private affairs; no exposure to one’s PII; no form of surveillance to which one has not already been exposed; no cyber access to PII; and no expectation of privacy in public that may violate one’s Fourth Amendment rights.  It seems as though the privacy issue has already been put to rest before the security robots even showed up. 

At Knightscope, privacy is a top priority at all times and we strive to continue the protections afforded us all by the previously laid groundwork.  

Recently, Knightscope's CEO, William Santana Li, was interviewed by StartEngine's strategic advisor, Kevin O'Leary, to dig into the details on Knightscope's business. You can watch the full interview here.

This Reg A+ offering is made available through StartEngine Primary, LLC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.  This is a paid advertisement.  Selected Risks Related to this Offering.  This testimonial may not be representative of the experience of other customers. This testimonial is no guarantee of future performance or success.

PHOTO: this is a simulation of non-compliance with social distancing guidelines for meetings but the robots are immune

"How much is it?" is a common question so we thought to share some insights for you inclusive of how clients are viewing it during a pandemic.

We provide our Autonomous Security Robot (ASR) technology on a Machine-as-a-Service (MaaS) business model with subscriptions running on annual contracts 24/7 at an effective price of $6 to $12 per hour.  Our service is all-inclusive providing our clients an ability to focus on their operations. The subscription includes:

Deployment - needs assessment, virtual demo, site assessment, site survey, shipping, logistics, setup, configuration and training

Technology - Autonomous Security Robot (ASR), Knightscope Security Operations Center (KSOC) user interface, charging systems, and data storage

Service - all maintenance, service, parts, repairs plus 24/7/365 support

Upgrades - unlimited software, firmware and at time hardware upgrades

But budgets from top to bottom are seemingly being obliterated in 2020! 

Sales and revenue are down - even non-existent for many businesses - due to the impact of COVID-19. In response to new risks and threats arising from the pandemic, some have had to double or triple their security officer spend. These unexpected issues are creating a dire need for businesses to quickly identify ways to reduce costs for the remainder of the year and, more than likely, into 2021/2022 once the situation hopefully normalizes.

Imagine being called to attend an internal emergency meeting to discuss immediate budget cuts and revisions, and then marching across the hall into another to strategize on how your organization will be better prepared the next time this occurs. We’re already seeing security budgets being reduced significantly or even eliminated entirely in some cases. We’ve all heard it before, do more with less.  Our Autonomous Security Robots (ASRs) can support a security team to do more… with a reduced security budget!

Let’s take a look at them strictly from a budgetary perspective.  Hypothetically, if a company has a 2020 security guard annual budget of $800k but must now comply with a mandated 25% reduction across all operating costs, this will leave a security team scrambling to maximize their reduced budget of $600k. But here’s an example of how we can help. First, incorporating just one autonomous security robot in lieu of 24/7 security officers will result in an additional $89k for other security positions (officers, dispatchers, supervisors, managers, etc.) per these average costs:

24/7 Security Officers: $174k per year*

24/7 Autonomous Security Robot: $85k per year

Savings: $89k per year

If you increase the robots to two in lieu of 24/7 security officers, this will result in $178k for other security positions (officers, dispatchers, supervisors, managers, etc.) per the same average costs:

24/7 Security Officers: $348k per year*

24/7 Autonomous Security Robots: $170k per year

Savings: $178k per year

 * based on an industry average $14 hourly pay rate and $20 hourly contract security bill rate.

Clients have used other security technologies before to reduce security officer costs and to maximize their respective budgets, such as access control and closed-circuit television, as this has been the industry trend for years now.  And now they have Autonomous Security Robots to add to their toolkit.  The delta in annual cost (and capabilities) is too significant not to and remote monitoring will now likely become the norm - as robots are immune. 

We are excited to announce that Knightscope has secured our first contract in the great state of Alaska!  With the ongoing pandemic we are receiving all kinds of unique inbound requests, new situations, new circumstances, and new opportunities.  

We are working through all of them and excited to see that our Autonomous Security Robot technology can continue to be helpful to humans, society, and clients as we all adjust to this new normal.  We will be working with our incoming awesome new client in the coming weeks - and if allowed we'll be able to share more details about the deployment itself then.  #RobotsAreImmune

As interest in Knightscope’s Autonomous Security Robots (ASRs) continues to increase, there are some common questions that almost every new potential client asks.  We’re even beginning to hear them in our sleep now.  And that’s not a bad thing!  

People are genuinely seeking out solutions that will help improve their current security programs and potentially save significant money. So, we thought it would be good to compile a list of the top 25 questions we hear and provide brief answers for you!

1.     Do the robots require software to be installed at the client site?

No.  The Knightscope Security Operations Center (KSOC), a browser-based user interface, does not require software to be installed.

2.     How does the robot know where to patrol?

Knightscope works closely with its clients to develop detailed patrol routes that best address the specific needs of that particular site.  The Knightscope team then programs the routes into the KSOC for their security team to control.

3.     Can the patrol routes be scheduled?

Yes.  We provide an easy to use tool in the KSOC that allows our clients to set the exact routes each robot patrols by day and hour.  These schedule may be changed at any time, as often as needed within seconds.

4.     Does it require someone to plug it in to recharge the batteries?

Absolutely not. The robots are fully autonomous, will monitor their own energy levels and return to their charging station without human intervention. 

5.     How long can it patrol for on one battery charge?

An average patrol cycle lasts between 2 to 2.5 hours, but there is plenty of reserve left in the tank in the event of a power outage.  The theme of our battery management strategy is to maximize the run time and minimize the charge time.

6.     How long does it take to recharge the batteries?

Just 15 to 20 minutes and during that time the robot is fully functional… minus the mobility, of course.

7.     How many cameras does it have?

Our robots have four cameras, providing 360-degrees of high-definition, eye-level recorded video.

8.     Can you see the live video from the robot?

Yes.  The KSOC provides access to both live and recorded video for all four cameras simultaneously.

9.     Can I access the video remotely on my smart phone or tablet?

Yes!

10.  Does someone need to be logged into KSOC, watching the video and monitoring the robot at all times?

No.  The artificial intelligence is designed to notify humans via the KSOC.  Email, text alerts or phone calls may also be utilized when needed if someone is not continuously logged into the KSOC or to allow operators to monitor other systems until an alert is received.

11.  Do the robots talk?

Yes.  They can be programmed to broadcast nearly any message related to security, safety, facilities, visitor experience and much more, in English and/or Spanish, in a male or female voice. 

12.  Can you talk to a person, such as a visitor or trespasser, remotely through the robot?

Yes.  The microphones, speaker and call button on the robot allow for an intercom call to be initiated right from the robot to the KSOC, or from the KSOC to the robot.  The robot essentially acts like a cell phone for those in distress or need of assistance.

13.  Do you sell or rent them?

Neither, actually.  It’s a subscription service, similar to your cable or satellite service.  We provide the equipment and services for a minimum of 12 months. 

14.  Who provides the maintenance and service?

Knightscope provides for the maintenance, support and service nationwide - which is included in the subscription. 

15.  When a service technician is needed, how long does it typically take?

Knightscope provides 24/7/365 U.S.-based support through the KSOC.  You have the ability to chat directly with a specialist anytime you need help and most service is addressable remotely over the air.  And if we must dispatch someone to physically service a robot, this typically happens within 48 hours on normal business days.

16.  What do the robots use for communication?

Cellular service (4G LTE) is used and is included in our subscription. The robots can also use a client’s WIFI provided there is ‘industrial strength’ blanket coverage in all patrol areas.

17.  How long does it store the video and data?

14 days is standard with our subscription with an option to extend it to 30 days.

18.  Where is the video stored?

All raw video is stored on the robot, with event related videos stored in the cloud.

19.  Can the robot be used in parking lots and parking structures?

Yes.  Over 60% of the robots deployed are patrolling parking lots or structures.  The K5 Outdoor ASR can travel between levels using the same ramps as vehicles, and the largest structure we are patrolling today is a remarkable 9-stories tall!

20.  How do they stay out of the way of cars?

We use technologies similar to those used in self-driving vehicles, incorporating LIDAR and proximity sensors into the robot’s navigation system.  This allows the robot to detect objects, including vehicles, and reroute itself around them within the pre-programmed patrol routes.

21.  Does it read license plates?

Yes.  All four cameras can read license plates in 360-degrees as it patrols parking areas.

22.  What happens if a person walks up to it?

1). The robot will stop, 2) It can be programmed to say “Excuse me” or another custom message, 3) It can reroute itself around the person and continue on its patrol route.  

23.  Can it patrol on grass and dirt?

No.  We currently only operate on hard surfaces such as concrete, asphalt, commercial grade carpet, marble, tile, etc.  In the future, the K7 Multi-Terrain ASR is planned for that use case. 

24.  Do they work in the rain?

Yes, and we’ve not heard one of them complain about it yet.  We have heard a happy whistling tune, though.

25.  What about the desert heat and the freezing cold?

Yes.  We have robots on patrol at client sites in the Southwest deserts and the frigid Northeast.  Currently getting through our 3rd winter!

There you have it, folks.  The Top 25.  We always compare the amount of information we have to share as an exercise in drinking from the firehose.  There’s no way to get it all at one time but hopefully you found this helpful.  And don't forget, "robots are immune." 

We receive a great deal of questions about how prospective clients think about utilizing Autonomous Security Robots (ASRs) and how they work in general plus views on the overall industry.  So we took the time to create this helpful infographic that can help share the story with you visually.  We hope you find it useful.  

Long-term we believe we can get our ASRs to do 100 times more than a human could ever possibly do - and put that power at the fingertips of the 2+ million law enforcement and security professionals across the nation, finally giving them the appropriate tools to properly secure our country - even during a pandemic.  

And if together we can make the United States of America the safest country in the world.....it will have the potential to change everything for everyone!

Robots are immune to threats posed by human diseases, fear, climate change and violence.  They have the potential to work 24/7/365 doing the monotonous, dangerous and computationally heavy work that most humans will never be able to do.  They are efficient, get smarter and more capable over time, and are already beginning to deliver a profoundly positive impact on society – more than even anyone on our team imagined.

The world is changing faster than we know.  Exactly where in your investment portfolio do you have pure play exposure to robotics, artificial intelligence and autonomous technology?  Are you are buying Apple stock because you think they are working on a self-driving car?  Are you buying Uber because they would benefit from autonomous technology?  Did you buy ABB because they sell robots for manufacturing?  Or are you holding onto IBM because they bet the farm on artificial intelligence? 

For long-term investors looking to diversify their portfolio and benefit from future trends, there are some tough questions to start pondering yesterday and taking action today:

The world is going to change more in the next 10 years than the last 100 years combined.  Think about that for a moment – are your assumptions correct that fundamentals of a mature business will just keep creeping along throwing off cash via dividends because the management team hasn’t figured out how to put the capital to work – and all will be fine?

We believe this is wrong.  And the year 2020 thus far is spanking the world into submission to remind us all that everything has and will evolve and change. 

Four simple questions:

1. Do you believe that robotics, artificial intelligence and self-driving technology are going to dramatically change our world in the coming decades?

2. Do you believe there will be a need for more or less robots to secure our country?

3. Do you believe there will be a need for more or less robots during a crisis including a pandemic?

4. Do you believe there will be a need for more or less robots when there are climate disruptions?

Robots are immune.  The rise of the robots has begun.

COVID-19 Public Safety Announcements

Knightscope’s clients are effectively all considered “essential services” (law enforcement agencies, hospitals, security teams, etc.).  To show our unwavering support and commitment, we have been hard at work keeping all machines-in-network across the country operating 24/7/365 – even during a pandemic.   The robots have also been working tirelessly since they are immune and not subject to any shelter-in-place orders!

We are pleased to announce today that our COVID-19 Public Safety Broadcast Announcements feature is now live and deployed in production (quick sample video here).  We offered this as a free upgrade to all Knightscope clients as part of our Machine-as-a-Service (MaaS) subscription business model.  Although we expected only a select few to choose to implement these announcements, we were excited to find interest from the majority of our clients with many asking for their own custom messages tailored to their respective facilities. 

The over-the-air free upgrade includes the following broadcast messages that can be announced by our K1 Stationary, K3 Indoor, or K5 Outdoor Autonomous Security Robots (ASRs):

• “Please maintain a safe distance between you and other people - I recommend at least 6 feet.”
• “Thanks for joining me for a breath of fresh air. We don't have to remain indoors, but let's avoid being in close contact with other humans.”
• “Be sure to wipe down any surfaces you come into contact with. Please disinfect your hands with an alcohol-based sanitizer and avoid touching your face.”
• “Washing our hands is fun! Oh, wait.... I don't have any hands.”
• “If you are feeling ill, please refrain from entering this facility. Instead, please push the button on my head to speak with a human.”
• “Please refrain from physical contact, including shaking hands.”
• “Social distancing is in practice and required here.”

These broadcast announcements can be made when a person is detected, randomly, by time, by location or issued manually by a law enforcement officer or security professional utilizing our state-of-the-art user interface, the Knightscope Security Operations Center (KSOC).  

We are continuing to think through additional initiatives we can take to help our clients consistent with our public safety mission. And we will do whatever it takes, even during a pandemic. 

ROBOTS ARE IMMUNE

Knightscope CEO, William Santana Li, and Knightscope EVP and Chief Client Officer, discuss how Autonomous Security Robots (ASRs) are continuing to patrol across the country even during a pandemic.

Remote monitoring will be the new norm as robots are immune to disease and danger and work 24/7/365 helping keep the places you work, study and visit safe – even during a national crisis.

RSVP for the webinar here. 

Today is Knightscope’s 7th anniversary!  And since we hope all of you are staying home and being safe during this COVID-19 crisis – we thought as a small token of appreciation we would provide you with a couple of minutes of behind-the-scenes at Knightscope Headquarters (KHQ).  You can enjoy the video above from either side of your couch, your kitchen, or even make the trek all the way over to the dining room for best viewing with (another) snack.   

We operate out of a 15,000 sq ft facility in Mountain View, California – in the heart of Silicon Valley.  Google, Apple, Facebook, Cisco, etc. are all ‘just down the street’ from us with plenty of Autonomous Vehicles (AV) running around the neighborhood at all hours of the day and night.  We even had our own interaction here!

We design, engineer, build and test our Autonomous Security Robots (ASRs) ourselves at KHQ.  Made in the USA.  We also run our Knightscope Network Operations Center (KNOC) from here 24/7 where we monitor the health of all the machines-in-network across the country. 

Back in 2013 it was our dream to build a unique combination of self-driving autonomous technology, robotics and artificial intelligence to give our nation’s 2 million law enforcement and security professionals unprecedented capabilities.  Fast forward 7 years, we built all of it from scratch, we now have operated over 1 million hours in the field, have clients across 4 time zones, have a dedicated team, and have racked up numerous crime-fighting wins – despite all the headwinds, naysayers and banana peels on the path to success. 

On our 7th anniversary, we certainly wish to express our deepest appreciation to all of our clients, supporters, friends, families and fans. Thank you for all of your support, love and patience – without you we could not have done it.  And, yet, there is so, so much more to do. Onward and upward!

P.S. And who would have guessed that we would be facing a global pandemic in the middle of our growth plans.  Fortunately for all of us, robots are immune. 

It is not uncommon for law enforcement and security teams to avail themselves of new technologies in an effort to gain the upper hand against crime.  When such tools are adopted, it is natural to seek media attention to share how forward-thinking your organization is with its advanced new tech – especially something as cool as a fully autonomous security robot.  On the surface, this is a great way to share how we are safeguarding and protecting our citizens, employees, students and visitors, but it also invites the unsavory element to contemplate how to defeat these security measures.  

Knightscope is no stranger to those that enjoy becoming the example for the rest of society.  Since we began deploying our robots across the United States in 2015, we have assisted numerous law enforcement agencies with the rock-solid evidence needed to strengthen case files and affidavits, ultimately providing judges with the evidentiary foundation necessary to issue arrest warrants.  

You see, we love what we do here at Knightscope, and we take great pride in supporting our clients.  Our team is made up of some of the brightest and most talented engineers, former military personnel specializing in intelligence gathering, former law enforcement officers and investigators.  Needless to say, when our clients call on us to assist them, we have a crack team ready, willing and able to help “cuff and stuff” the alleged bad guys.

You may recall one of our very first incidents in which an inebriated individual stumbled onto Knightscope’s property and assaulted one of our robots.  The robot was unhappy being a victim and was undeterred from immediately sounding alarms and reporting the incident to our Knightscope Network Operations Center (KNOC) team.  The subject was caught on site and detained by our very own EVP and Chief Client Officer (a former police officer himself) until the Mountain View Police arrived to provide room and board for the night.  Since then, there have been many others, from grown adults to teenagers, who have tempted fate only to later find themselves in the same rent-free accommodations (i.e., jail).

In September 2018, an individual drove onto the property of a client in Washington where a diligent Knightscope K5 was patrolling.  The suspect made his way over to the robot, looked it over, drove around the parking lot and then proceeded to use his vehicle to ram the robot.  He then burglarized two buildings.  100% of the evidence in this case was gathered by the robot and provided to police, and later the prosecutor’s office.  The case was finally adjudicated in December 2019 with the accused pleading guilty to three felonies.  Law enforcement investigators are always seeking out the “smoking gun” that proves beyond a shadow of doubt that this is the person that committed the crime.  And according to the District Attorney’s office, this was a slam-dunk case as a result.

Another compelling case occurred in 2019 and has come to be known as our “New Year’s Knuckle Heads.”  Two gentlemen meandered onto our client’s property where, you guessed it, another K5 was patrolling.  The two suspects in this instance were wearing long sleeves and hooded sweatshirts in an attempt to conceal their identities, but there is nothing foolproof in forensics and criminals always unknowingly leave behind a key piece of evidence.  During this investigation, a very distinct tattoo was observed on one of the subjects’ hands.  Police were able to use this as a form of “fingerprint” to identify the individual, and from that, the two subjects were subsequently located, apprehended and held financially responsible for the damage that they caused. 

These are just a few of the many documented incidents we have encountered and aided in prosecution.  Security technology needs to work for the end user and quickly provide the information needed to deter crime.  As these examples highlight, the success of the technology also comes from the ability to recall, document and deliver forensic data to the prosecutors charged with holding the offenders accountable for their actions.

Take a lesson here, when you encounter a Knightscope robot feel free to say hello, take selfies/videos and enjoy the experience.  But if you are there to cause trouble, the chips are stacked against you.  As we always say in Law Enforcement, “you can run, but you will only go to jail tired.”

It is likely that messing with a security robot is a felony and we have all the evidence to prosecute to the fullest extent of the law.  We have and we will. 

As you know, it is not a good idea to assault a police officer, mess with a law enforcement vehicle, or confront a security guard.  It is also not a good idea to mess with an Autonomous Security Robot.  It is there to help secure the places you work, study and visit so be nice to the robots! 

P.S. LATEST UPDATE:

In February of 2020 Knightscope team members assisted a local municipal police department in identifying an individual suspected of vandalizing their K5 robot. As we have stated before in this article, it is not wise to mess with the robot; let alone one that is used by the police!  Knightscope’s dedicated team received an alert from the robot and quickly identified that the individual attempted to damage the cameras on the robot. Although they were successful in causing damage, there was still plenty of great evidence for the police department. With the help of Knightscope, the police department notified our team that within 9 days of the incident the suspect had been identified, arrested and charged with one count of felony vandalism. He is still sitting in jail currently.

P.P.S. AND ANOTHER UPDATE: 

In one of the above referenced cases, the presiding judge ordered restitution be paid to Knightscope in the amount of $21,968.56 as part of the defendant's sentencing.  The Court Clerk's Office will be monitoring the defendant to ensure that he satisfies the obligation.  If not, further charges may be applied.  OUCH!  It's just not worth the risk.  As we said before, we will prosecute to the fullest extent of the law.  

Have a question about Knightscope's Reg A+ Offering?  Well, there is now a Knightscope Investor Relations hotline number that you can call and speak to an actual human!  

The live answer hours at (650) 679-7626 are Monday through Friday 5am - 9pm as well as Saturdays and Sundays 6am - 6pm Pacific Time. 

The operators, when appropriate, will be able to provide you an email answer directly from the CEO or schedule a conference call if necessary.

A number of you have been kindly asking how we are doing and how is Knightscope handling the crisis. The situation is obviously fluid, but we want to provide you an interim update.

ESSENTIAL SERVICES

OUR FIRST concern was the health and safety of our teammates. We identified the developing trend surrounding the spread of COVID-19 and took action ahead of the government directive by minimizing the number of employees at Knightscope Headquarters (KHQ) and authorizing the majority of the team to work from home.

However, given that public safety, physical security and wellness are classified as essential services, we needed a way to continue to operate and support our law enforcement, security and healthcare clients. We therefore instituted a Work From KHQ (WFKHQ) policy in order to support ongoing operations whereby employees must obtain written approval (with logs) to work from the office with staggered work hours and no more than 2 people allowed in any part of the buildings at any given time.

SECOND, we focused on our clients. We re-planned and re-prioritized service, maintenance, upgrades, and re-deployments. Although not optimal, we are working as hard as possible to ensure ‘uptime’ of service and maintain some level of normalcy for our clients across the country.

THIRD, we developed Public Service Announcements to communicate in both virtual and physical domains. This entailed creating encouraging and uplifting reminders that were posted on all of our social media accounts. Themes included practicing social distancing, proper hygiene and common sense consideration of others. In support of the social media outreach, we are now working offline to add numerous similarly themed, pre-recorded broadcast audio messages for our Autonomous Security Robots (ASRs) to announce when a person is detected and/or on an hourly basis, depending on client needs. 

FOURTH, we are actively investigating the reinstatement of a detection strategy previously under development which may be useful in identifying persons at risk of carrying COVID-19. An initial assessment seems promising, so we are continuing the investigation. It would be awesome for our security robots to proactively help during this pandemic.

LASTLY, we are approaching the finish line on numerous sales agreements including, but not limited to, our 1st federal government site, 2nd defense contractor, and 3rd law enforcement agency, 1st transit authorities (two separate clients covering both bus and rail services), an international airport and another casino. We also believe that more opportunities will surface as security professionals examine the impact that COVID-19 has had on their operation and how to future-proof their programs with remote monitoring. 

IMPORTANT: Remote monitoring will be the new norm – and keep in mind that robots are immune to disease and danger and are working today 24/7/365 across the country helping keep the places you work, study and visit safe – even during a pandemic.

Remember, robots are immune - we can do this, and with your support we will come out the other side even stronger! 🤖 💪 

ROBOTS ARE IMMUNE

Pandemics and nationwide systemic tensions only reflect an underlying fundamental problem in our country.  We cannot have only 500,000 law enforcement and security professional at any one given point in time trying to secure 300+ million people across 50 states. Even more so during a crisis.  But we can fix it.

The brave women and men in uniform require new advanced tools for them to be able to do their jobs effectively – and now, with the looming threat of coronavirus negatively impacting our nation’s law enforcement professionals – we need to act quickly. 

Autonomous Security Robots (ASRs) are immune to COVID-19 and provide security and law enforcement an ability to help manage during a time of difficult circumstances.   Remote monitoring will become a permanent fixture in the first responder toolbox and Knightscope is at the forefront. 

Remember, robots are immune from disease and danger – and Knightscope ASRs are continually working today 24/7/365 helping secure the places you work, study and visit – even during a pandemic.  

Join Us and Be a Force for Good!

Investors often ask what region, or type of client, or vertical has resonated with the use of Knightscope's Autonomous Security Robot (ASR) technology.   There are several but we are pleased to announce that one of the sectors we have had great success thus far is the healthcare industry. 

These are almost always 24/7 operations with a great deal of humans and vehicles involved - and more often than not a difficult time for everyone visiting there. 

Deployments of ASRs have continued and we are now operating at Dignity Health, Houston Methodist Hospital, Texas Children's Hospital, and The Children's Hospital of San Antonio as well as the corporate campus of Merck.  

We look forward to continuing the momentum - and grateful for the honor of being able to help secure those that care after us and keep us healthy! 

DIGNITY HEALTH

HOUSTON METHODIST HOSPITAL

Texas Children's Hospital

The Children's Hospital of San Antonio

MERCK

AI Robot Security – Making the U.S. a Safer Place

Rebellion Research is an Ai Machine learning hedge fund, online financial advisor & educational research firm available in 71 countries and has over a 13 year history of outperforming the S&P 500.  Read their report on Knightscope here! 

“Texas Children goes above and beyond to make its patients and employees feel safe,” Houston Police Department Northwest Patrol Division Commander Frank Fernandez said. “This is just another example of that. It frees up officers and security officers from doing some of the more regular routine tasks to be able to respond to something if an emergency happens.”

Watch the video and read their blog here! 

We are pleased to announce that Knightscope’s ASRs have reached over 1 million hours of operation!  

6 years ago there were no Autonomous Security Robots (ASRs) roaming around across the country operating 24/7/365 - and now we’ve reached this tremendous milestone. 

That 1 million hours is not digital simulation time.  It is not testing time in a laboratory.  It is not staging work outdoors.  It is real world Level 5 autonomy with no human intervention at real clients generating real revenue.  THIS IS NOT A TEST! 

And thank you for everyone's support in helping us reach this important milestone.  Genuinely appreciated! 

We financed Knightscope in an unconventional manner over the years and have closed over $40 million in equity financing since our inception in April 2013.  Between the family offices, private investors, accelerators and 4 major corporations, we are now backed by well over 7,000 investors.  Some names that may be familiar include Konica Minolta, NTT DOCOMO, Flex, NetPosa, Plug and Play Ventures, F50, Bright Success Capital and Proud Ventures.

Since we took this alternative path, we are often asked who has funded our innovations in advanced physical security technologies. Well, following you will find a high-level cross section of some of our awesome investors who have bet on us, stuck with us, invested multiple times, opened doors for us, helped us with clients, recruits and, of course, brought us new investors!  We’ve also tried to include some interesting, behind-the-scenes nuggets for you, too. 

TECHNOLOGISTS

Some of our investors are just plain fascinated with technology.  Let’s face it, robots tend to bring the kid out of almost everyone, and artificial Intelligence has had a similar effect.  Autonomous technology has even managed to motivate an entire industry to deliver the magic of self-driving cars on public roadways.  Combine the three and, with a little help from Hollywood, you have an advanced technology that is incredibly interesting and at times even a bit controversial - fully autonomous security robots.  But yet we still find ourselves amazed at the volume of robot selfies taken across the country every day!

Sadly, believe it or not, there is still talk of “the robots coming to take our jobs, destroy our lives, or somehow kill us all.”  This is just not reasonable, primarily for one particular reason: lack of risk capital.  You may know that over $100 billion is invested in startups annually – but shockingly, less than 1% goes into robotic startups.  The reason Google, Amazon, Facebook, etc., exist is because they had the advantage of being built on the foundation of multi-decade significant investments in the underlying technology and the numerous startups attempts themselves (i.e., Google was far from the first search engine). That is not true in the robotics space or hardware in general – and, therefore, it is unlikely that the magic on the movie screen becomes real life anytime soon. 

It is also a bit concerning that over $80 billion has been invested in self-driving technology over the last few years, yet no one has shipped a real, commercially viable product at scale.  It’s looking increasingly relevant that Knightscope’s “crawl, walk, run” approach to commercializing autonomous technology may have been a solid decision as we believe, to our knowledge, that we are the only company in the world operating fully autonomous 24/7/365 across an entire nation without human intervention with real clients generating real revenue in real world conditions. 

PATRIOTS

A significant number of our investors are fed up with ongoing violence across our country and want to help do something about it – by building new technologies and capabilities.  Most of our society doesn’t realize that it is highly unlikely that the local/state/federal authorities are going to be able to address the $1 trillion negative impact of crime annually on the U.S. primarily due to a significant structural flaw:

The U.S. Department of Defense (DoD) has a $700+ billion annual budget, there is one person in charge (the Secretary of Defense), and a massive industrial complex to build almost any level of capability a soldier might need in a theater of war.  The capabilities of a Lockheed Martin, Raytheon, Boeing, General Dynamics, and Northrop Grumman are tremendous.

Unfortunately, that doesn’t exist on the home front.  The U.S. Department of Justice (DoJ) and the U.S. Department of Homeland Security (DHS) have effectively no federal jurisdiction over the 19,000+ law enforcement agencies and 8,000+ private security firms.  There is literally no one single person tasked with that responsibility, no risk capital, no innovation, no processes, which is why as we approach the year 2020, we have security guards sitting in a parking lot at 3am with a #2 pencil and a notepad. 

We would not dare treat U.S. troops in this manner.  Yet, every day, over 2 million law enforcement and security professionals get up and go to work willing to take a bullet for you and your family – and the level of technology we provide to them as a country is beneath the dignity of our Nation.  We must do better.  

CORPORATE VENTURE CAPITAL

As Knightscope looks over a multi-decade planning horizon, we believe there is an opportunity to build a $30 billion company analogous to a defense contractor, but instead focused inward on operations on our own soil.  To that end, we’ve sought out long-term, balance sheet driven, or otherwise evergreen capital so that we can remain focused on the mission and not get distracted by short-term shenanigans associated with short-term capital.  

With over 25% of venture capital now being driven off of a balance sheet from a major corporation, it is a naturally fitting source for us.  Some of these major corporations are doing reconnaissance, avoiding competitive threats, seeking innovations, building to buy companies or, in some cases, literally outsourcing R&D (Research & Development) to young startups - a unique source of capital that has come into fundraising circles in earnest over the last decade or so.

SINGLE FAMILY OFFICES

Some LPs (Limited Partners) are tired of paying venture firms the standard “2% & 20%” and getting locked up for 7 to 12 year in funds with underperforming money managers investing in opaque startups with little transparency.  A trend is rapidly developing among these family offices whereby they are accelerating their respective efforts in direct investments as friendly sources of passive capital to entrepreneurs – and skipping the middle man. 

FINANCIAL

A number of our investors are simply driven by a ‘buy low, sell high’ approach.  They take a strong look when there is an opportunity to buy into a promising, private startup before a possible public listing.  They look at the market, the technology and the team and place a calculated risk that, in our case, the ‘market for crime’ will likely continue; self-driving technology, robotics and AI are the future; and the team has a track record of delivering despite the headwinds associated with commercializing bleeding edge new technologies.  

And since we are often asked, here are the historical share prices over the last 6 years:

Historical Share Price (year priced)

2013 $0.3317 Seed Round (oversubscribed) - $4 million cap on convertible note

2014 $0.8932 Series A (oversubscribed) - $15 million pre-money valuation

2015 $2.0401 Series B - $45 million pre-money valuation

2016 $3.0000 Series m, m-1, m-2 (oversubscribed) - $80 million pre-money valuation

2017 $3.5000 Series m-3 (oversubscribed) - $123 million pre-money valuation

SUMMARY

Overall, we have folks from all walks of life invested in Knightscope - engineers, law enforcement, military, real estate developers, marketers, attorneys, bankers, bus drivers, physicians, CEOs, chief security officers, founders, and retirees.  We are forever grateful for their diversity and their support – because without them we couldn’t do what we do! 

JOIN US 

Knightscope has a secured an extremely diverse and large investor base which may likely be of benefit to the Company, when and if, there is a successful public listing.  We can accept investors in the U.S. as well as internationally and you may invest from $1,000 minimum to a $10 million maximum completely online here. 

We are very happy to be in Florida with our new awesome client!

We are deploying this week at both Stadium Enclave and Urban Enclave.  This is our first student housing complex we have deployed at and appears all of their residents are students at Florida State University since they are across the street from Doak Campbell Stadium, home of the Seminoles college football team.  

Every time we deploy our Autonomous Security Robot technology, we learn something new.  It is likely we have forgotten more than most people would know about it - and we are looking forward to operating in Tallahassee and see what this new environment brings! 

Deploying at our 4th hospital!  And the hard working Knightscope production team is helping our new client to have some fun with it. Yes, that is a security robot dog and a security robot caped hero - the kids are going to love it!

Knightscope Autonomous Security Robot 

Connects to Verizon 5G Cell Tower

We did it!  First time a Knightscope Autonomous Security Robot (ASR) is connected to a Verizon 5G cell tower during Demo Day at the Verizon 5G First Responder Lab.  

Plus we were able to show an alpha prototype of Visible Weapon Detection (VWD) working on an autonomous machine via 5G which is another big step in the development of this new technology.

KNIGHTSCOPE DEPLOYS ASR AT UNDISCLOSED LOCATION

UNDISCLOSED LOCATION: we are super excited to have begun the deployment process for our K5 Autonomous Security Robot at our first aerospace/defense contractor client somewhere in the United States!

Knightscope Technology Credited for Reducing Crime

Government Contract for Autonomous Security Robot Yields Positive Results

January 28, 2020 10:00 AM Eastern Standard Time

MOUNTAIN VIEW, Calif. -- (BUSINESS WIRE) -- Knightscope, Inc., a developer of advanced physical security technologies focused on enhancing U.S. security operations, announced today that crime statistics from its first police department client, the City of Huntington Park, are now publicly available.

Between June and December 2018, the Huntington Park Police Department registered 277 entries of police activity in the Salt Lake Park area, a period during which no Autonomous Security Robot (ASR) was deployed. Inclusive of this police activity are the following statistics:

• 48 crime or incident reports
• 11 arrests
• 120 citations issued

During a like period one year later – June through December 2019 – when the Knightscope K5 ASR was deployed and fully operational, the level of police activity diminished to only 249 recorded entries, which included:

• 26 crime or incident reports
• 14 arrests
• 38 citations issued

In analyzing the data gathered, Huntington Park Police Department surmised that the K5 Autonomous Security Robot is having a positive impact on crime, nuisance activity and police responses at Salt Lake Park as follows:

• 10% reduction in calls for service
• 46% reduction in crime reports
• 27% increase in arrests
• 68% reduction in citations

“I am simply elated that Knightscope was able to assist the City of Huntington Park and its citizens to enjoy greater peace of mind when visiting Salt Lake Park,” said William Santana Li, chairman and chief executive officer, Knightscope, Inc. “Our long-term vision is to make the United States of America the safest country on the planet, and this is a meaningful step in the right direction.”

About Knightscope

Knightscope is an advanced security technology company based in Silicon Valley that builds fully autonomous security robots that deter, detect and report. Our long-term ambition is to make the United States of America the safest country in the world. Learn more about us at www.knightscope.com.  Follow Knightscope on Facebook, Twitter, LinkedIn and Instagram.

Yes! Knightscope signs a new contract with another casino. Our autonomous security robot technology is on the rise - helping secure the places you work, visit, study AND gamble!

Also, it was very cool to have CBS visit with us at Knightscope Headquarters (KHQ) in Mountain View, California in the heart of Silicon Valley.  They spent the day with us filming for an upcoming episode of The Henry Ford’s Innovation Nation Show with Mo Rocca! We are hopeful it will air during 2Q 2020. Also, was interesting for us as 3 of Knightscope's employees are ex-Ford. 

We are extremely excited to be working with an Emmy award winning producer on a new TV series revolving around "Crime Tech"! 

Read all about in the press release here. 

Here’s an opportunity to learn more about autonomous technology, robotics and artificial intelligence for those considering buying shares for the first time or investing again in Knightscope’s Reg A+ IPO:

INVESTOR ROADSHOW WEBINAR

• Thu 16 Jan at 1pm PST / 4pm EST
• Knightscope CEO in the hot seat answering rapid fire questions including how to invest in the Reg A+ IPO offering
• Live streaming from Knightscope Headquarters (KHQ) in Mountain View, California in the heart of Silicon Valley
• RSVP required at www.knightscope.com/events 

Velodyne, developer of advanced mapping sensors used for autonomous navigation, selected Knightscope and its EVP and Chief Client Officer, Stacy Dean Stephens, to join them at CES to speak to attendees about security robots and the use of LIDAR to help better secure the U.S.

Stacy and a Knightscope K5 will be available to meet and answer questions throughout this week at booth #7520 of the Las Vegas Convention Center.

Check out the schedule here: https://velodynelidar.com/ces-2020/

P.S. On it way to getting set up in Las Vegas:

It was another busy year!  Despite the headwinds in scaling up any business (memo: 95%+ of startups fail) we made a lot of progress and kept pushing forward while ignoring the naysayers.   We are beyond excited for the numerous items we have brewing for 2020 but before we get to working on those initiatives, we wanted to reflect on 2019 with you!

• Backlog – for the first time in Company history we ended up with a seven-figure backlog of signed contracts which is, as they say, a “good problem” to have on hand (but, still a problem)

• Nationwide TV – we’ve been lucky to be covered by the media extensively but was cool to be highlighted by the Today Show

• Law Enforcement – we were able to deploy at our first 2 police departments (and our first 2 municipalities as well); only 19,000+ more to go! 

• VWD – completed our first alpha prototype of Visible Weapon Detection 

• Face Rec – announced our beta release of facial recognition

• New Verticals – we signed our first movie theater chain as well as our first aerospace/defense contractor

• Healthcare – we are now operating across 3 hospitals 24/7/365

• Major Renewal – humbled by the opportunity to renew a major corporation with 9 machines across 5 location and 3 states  

• Triple! – one of our clients tripled its security robot team from two (2) to six (6) machines. The expansion makes this our largest deployment of security robots at a single location to date.

• Verizon 5G – Knightscope was accepted into the Verizon 5G Lab and we are working together on technologies for first responders 

There was a lot more that happened behind-the-scenes and we are invigorated to get going on 2020 - and thank you for the continued support.  Onward and upward! 

Excited that Knightscope has landed our first security robot contract with a major movie theater chain.  Visit www.startengine.com/knightscope to own shares in the future as fully autonomous security robots continue to grow nationwide and operating 24/7/365.

ICYMI: here's the video of the hour long Bots & Brokers Webinar with the CEOs of both Knightscope and StartEngine.  

Casino TRIPLES down on security robots!  One of our clients just tripled its security robot team from two (2) to six (6) machines. The expansion makes this our largest deployment of security robots at a single location to date.  We are excited to continue to see the growth of Knightscope technology across the country. 

Join a webinar with Knightscope's Chairman and CEO William Santana Li and StartEngine's Co-Founder & CEO Howard Marks. The two will discuss some exciting updates from Knightscope.

Register here for this Thursday Dec 12, 2019 3pm PST / 6pm EST to RSVP.

Knightscope, Inc., a developer of advanced physical security technologies utilizing fully autonomous robots focused on enhancing U.S. security operations, announced today that it has formally kicked off its federal government initiative with the engagement of C5 Business Development Innovations (C5BDI).

C5BDI is an industry leader in Non-Traditional Contracting (NTC) with significant experience in briefing upper echelons of the U.S. federal government including the U.S. Pentagon, Intelligence Community, and U.S. Military Forces providing direct subject matter expertise in navigating the challenging U.S. Federal acquisition space.

“After years of developing Knightscope’s security robot technologies, we are excited to leverage our expertise to help the Nation better secure federal facilities, bases, and assets, which we view as a significant growth opportunity in the coming years. It is also in keeping with our long-term, ambitious mission to make the United States of America the safest country in the world,” said William Santana Li, chairman and chief executive officer, Knightscope, Inc.

About Knightscope

Knightscope is an advanced security technology company based in Silicon Valley and builds fully autonomous security robots that deter, detect and report. Our long-term ambition is to make the United States of America the safest country in the world. Learn more about us at www.knightscope.com. Follow Knightscope on Facebook, Twitter, LinkedIn and Instagram.

About C5BDI

C5BDI is a strategic planning and management firm supporting direct access to key U.S. acquisition and technical decision makers. C5BDI also provides access to U.S. companies that allow sole-source and rapid acquisition contracting mechanisms. Learn more at www.C5BDI.com

Knightscope is currently raising capital on StartEngine through StartEngine Primary LLC, our broker-dealer, and has recently been accepted into the Verizon 5G First Responder Lab.  You can learn more about the program here.

You can join Knightscope’s CEO, William Santana Li, for an Investor Due Diligence & Virtual Demo session in New York, New Jersey and Connecticut on 18 – 20 November 2019.

Bill will discuss the history of Knightscope, conduct a live demo of Knightscope's client user interface with live feeds from their security robots patrolling across the nation 24/7/365, and then open up the session for a Q&A with the audience.  

Registration is free, but RSVP is mandatory here to ensure that we have enough space for everyone.  Please share this with anyone else you know who might want to learn more about Knightscope and its fully autonomous security robots as this is a unique opportunity to learn about self-driving technology, robotics and artificial intelligence.

RSVP here and learn more about buying shares in Knightscope’s Reg A+ IPO here

For many of you that have been asking, our funding progress is now reflected on the page.  We hope it helps and thank you for the continued interest in Knightscope! 

WEBINAR: Chief Executive Officers William Santana Li of Knightscope (www.knightscope.com) and Howard Marks of StartEngine (www.startengine.com) will be the featured guests in a unique fireside chat webinar titled “Bots & Brokers” on November 6, 2019. This moderated webinar will be live streamed from Knightscope headquarters in Silicon Valley and allow participants to get answers on how these two entrepreneurs are helping to drive major change in financing innovation. Topics for discussion include the rise of online investing, new broker-dealers, robotics, artificial intelligence and self-driving technology.. RSVP here: https://bit.ly/34rvPr2

Recently, our CEO, William Santana Li, was interviewed on Fox Business!  You can watch the full interview here.

If you haven’t already, join us today and invest in the company disrupting the security industry.

If you have invested, thank you for your support and commitment into making our world safer for all!

Autonomously,

The Knightscope Team