What changed in Knightscope, Inc.'s 10-K — 2023 vs 2024

As we execute on our growth strategy, we remain committed to delivering scalable, effective solutions that enhance safety, deter crime, and provide peace of mind to organizations and communities nationwide. ​ Knightscope, Inc. is a Silicon Valley based, public safety innovator that builds Autonomous Security Robots and Emergency Communication Devices.

We design, manufacture, and deploy our technologies to improve public safety and to protect the places people live, work, study and visit.

We provide our cutting-edge capabilities, including remote monitoring capabilities, to both the private sector and to government clients including law enforcement. ​ With Federal Risk and Authorization Management Program (“FedRAMP”) Authority to Operate (“ATO”) obtained in January 2024, Knightscope can be listed on the FedRAMP Marketplace as an approved provider for federal agencies and is therefore positioned to expand into federal contracts.

We have already deployed a pilot program under a contract with the U.S. Department of Veteran Affairs for our first K5 GOV, which is an ASR exclusively developed for the U.S. federal government. Additionally, we have been awarded a Phase 1 contract from the U.S. Air Force in 2025.

We believe FedRAMP ATO positions us to seek federal contracts with other federal departments including the U.S. Army, Transportation Security Administration (TSA), Federal Protective Service (FPS), General Services Administration (GSA), U.S. Department of Homeland Security (DHS), Customs and Border Protection (CBP), Federal Bureau of Investigation (FBI), Federal Emergency Management Agency (FEMA), United States Postal Service (USPS) and the U.S.

We believe that the initiatives of the Department of Government Efficiency (DOGE) may provide us with an expansion opportunity as federal entities seek efficiencies through automation and robotics. ​ Our core technologies are a unique combination of autonomy, robotics, artificial intelligence and electric vehicle technology: ​ ● ASRs : AI-powered autonomous security robots that are designed to provide continuous monitoring, real-time incident detection, and proactive threat deterrence through a strong physical presence. ● ECDs : Blue light emergency communication systems, including towers, e-phones, and call boxes, designed to provide instant connectivity to emergency services. ● Knightscope Security Operations Center (KSOC) : A cloud-based platform for real-time security monitoring, data analysis, and event manage ment driven by autonomous security robots. ● Knightscope Emergency Management System (KEMS) : A diagnostics tool designed to keep emergency communication devices operational and reliable. ​ ● Knightscope Network Operations Center (KNOC) : The Company has built a custom set of tools that enables our employees to manage and monitor the network of ASRs and other Knightscope technologies operating in the field nationwide. ● Knightscope's Risk & Threat Exposure (RTX) : RTX analysts provide proactive monitoring by verifying alerts triggered by Knightscope devices. ​ Knightscope operates in a highly fragmented U.S. public safety market that is experiencing strong demand for automation and artificial intelligence-driven solutions due to rising labor costs, security staffing shortages, and challenging crime rates.

Our solutions combine proactive physical deterrence with critical emergency response tools and remote monitoring, offering an integrated approach to public safety. ​ We are a Delaware corporation founded in April 2013 and headquartered in Mountain View, California, in the heart of Silicon Valley. 5 Table of Contents Market Opportunity & Competitive Positioning The public safety industry in the United States is undergoing rapid transformation, driven by labor constraints, evolving threats of perimeter intrusion to large facilities, and advancements in artificial intelligence (AI) and automation.

The demand for scalable, technology-driven public safety solutions is increasing as organizations seek more cost-effective and proactive methods to enhance safety. ​ Key Market Trends Driving Demand ​ ● In the United States, as of 2024, there are over 11,000 private security firms [per IBISWorld Industrial Reports] and 18,000 law enforcement agencies [per the International Association of Chief of Police] that rely on outdated, labor-intensive security methods. ● Per Amarok Ultimate Perimeter Security, out of a recent survey of 400 security guard firms in the United States, 34% responded that their staff numbers were still well below pre-pandemic levels. ● Rising costs to implement public safety have driven businesses and municipalities to invest in technology-driven solutions that offer 24/7 surveillance at a lower operational cost. ● Over the last three years, there has been a growing investment in public safety and emergency communication systems by corporate, municipal, and federal agencies. ​ Key Challenges with Traditional Public Safety Solutions ​ ● Rising labor costs - The U.S. security guard industry has faced wage inflation, making it increasingly expensive to maintain 24/7 human patrols. ● Workforce shortages – Per Security Magazine, security firms struggle to recruit and retain personnel, with turnover rates that range from 100% to 400% annually. ● Limited real-time response capabilities - Human guards and passive surveillance cameras often fail to prevent incidents before they occur. ● Increased liability risks - Organizations are facing greater legal and financial exposure due to security lapses. ​ Market Opportunity ​ ● Per Horizon Grand View Research, the U.S. physical security market is projected to reach $56.8 billion by 2030, driven by technological advancements and heightened public safety concerns. ● Per Market Research Future, AI-powered surveillance and autonomous security solutions are expected to grow at a compound annual growth rate of 15.3% during the forecast period 2025- 2034, outpacing traditional security services. ● Government investment in security technology has expanded significantly, with U.S. federal agencies allocating billions to enhance public safety initiatives in 2024. ​ Our Market Positioning ​ Knightscope is well-positioned to capitalize on these trends by providing a cost-effective, scalable alternative to traditional public safety solutions.

Our combination of autonomous security robots, ECDs, and AI-driven analytics offers: ​ 6 Table of Contents ● 24/7 security solution that delivers greater effectiveness at lower cost than traditional security guards—combining machine-driven insights with human-in-the-loop operations to enhance safety, responsiveness, and decision. ● Real-time threat detection and response to improve incident prevention. ● Compliance-ready solutions for federal, state, and municipal security requirements. ● With growing adoption across corporate, educational, healthcare, transportation, and government sectors, Knightscope is driving the next generation of public safety innovation in the United States. ​ Our Competitive Advantage ​ Knightscope’s technology provides a cost-effective, scalable alternative to traditional security solutions.

Our ASRs and ECDs enhance public safety through conspicuous presence, automated routine monitoring, and improved response times. ​ ● ASRs can operate 24/7 with no downtime, reducing reliance on expensive security personnel. ● AI-powered analytics provide real-time data for faster, more informed decision-making. ● Emergency communication solutions are integrated into a cloud-based system, ensuring reliability in crisis situations. ​ Our Technologies ASRs ​ Knightscope offers a comprehensive suite of public safety technologies designed to enhance safety and support security personnel in various environments.

These solutions integrate advanced robotics, AI, and real-time monitoring to provide a proactive approach to public safety. We use AI to continuously monitor security feeds across our product portfolio. Real-team AI-powered alerts can be configured to trigger when people or vehicles matching a certain description are observed.

Knightscope also offers AI-powered search tools, intended to make finding relevant security footage captured by our products, quick and easy. ​ ● The K3 Indoor Autonomous Security Robot is a compact, self-navigating unit designed for enclosed spaces such as corporate offices, hospitals, and shopping centers.

Equipped with 360-degree high-definition cameras, thermal imaging, LiDAR-based obstacle detection, and two-way communication capabilities, the K3 provides continuous AI-driven monitoring and real-time threat detection.

Its ability to patrol autonomously allows organizations to reduce reliance on human guards while increasing surveillance coverage. ● The K5 Outdoor Autonomous Security Robot is a larger, more robust unit built for external environments like parking lots, logistics facilities, and corporate campuses.

This model features advanced AI-powered analytics, including license plate recognition, thermal imaging, and anomaly detection, providing a visible deterrent against crime.

The KSOC provides access to live 360-degree high-definition video streaming, recorded video storage, and downloadable files for evidence collection. It also features capabilities such as people detection, thermal anomaly detection for identifying heat irregularities, and automatic license plate recognition for vehicle monitoring.

The KNOC is staffed 24/7 by the Company in the United States. ● Knightscope's RTX team offers clients a comprehensive, human-in-the-loop monitoring service that enhances the capabilities of their ASRs running 24/7. Once operational for a client, RTX analysts provide proactive monitoring by verifying alerts triggered by Knightscope devices.

They engage in live streaming and review of all ASR camera feeds upon receiving alerts, which may include detecting suspicious individuals, unauthorized vehicles identified through license plate recognition, or other predefined security breaches. In the event of an incident, RTX analysts can perform digital talk-downs to intervene directly, conduct virtual public safety tours, and generate detailed incident reports for clients.

This integrated approach is intended for clients to benefit from advanced technological surveillance complemented by human expertise, leading to a more robust and responsive security posture.

By combining autonomous monitoring with professional oversight, Knightscope's RTX service enhances threat detection, reduces response times, and provides clients with actionable intelligence to maintain safer environments. ​ ECDs ​ In addition to ASRs, Knightscope provides a range of emergency communication solutions. ​ ● The K1 Blue Light Towers are solar-powered, highly visible emergency communication stations that provide immediate access to emergency response personnel or law enforcement.

Its durable, tamperproof, and weatherproof construction is intended to provide reliable operation in harsh conditions, while the illuminated front call panel facilitates nighttime use. The K1 Blue Light E-Phone supports two-way communications over various networks, including Verizon, AT&T, and Iridium® Satellite, providing flexibility and reliability in diverse settings.

This device is designed for locations such as parking lots, building interiors, college campuses, electric vehicle charging stations, transit stations, and office spaces, where space constraints require a streamlined yet effective emergency communication solution. ● The K1 Call Box is Knightscope's smallest emergency call box system, offering a simple housing and interface for one-touch connection to emergency services.

Designed for both indoor and outdoor use, with features and functionalities similar to our E-phones, the K1 Call Box is suitable for remote locations where traditional communication infrastructure may be lacking.

This device is particularly beneficial in areas such as bridges, highways, parks, metro stations, military installations, and remote parking lots, where immediate access to emergency assistance is crucial. ● Complementing the ECD products is the KEMS , a cloud-based application that monitors the health and status of deployed emergency communication devices.

KEMS provides system owners with automated daily email reports, real-time error detection, and diagnostics, eliminating the need for manual testing of each device. Immediate text and email notifications are sent whenever a help button is pressed, in order to provide prompt responses to emergencies.

This system enhances the reliability and effectiveness of emergency communication networks, providing peace of mind to clients and users alike. ​ Additionally, through a partnership with Verizon, all ASR and ECD are now able to be equipped with Verizon Frontline, an exclusive network used for priority communications by first responders.

Through this growing product portfolio, Knightscope continues to redefine security and public safety by merging robotics, AI, and emergency communication into an integrated, technology-driven ecosystem.

By offering both proactive security monitoring through ASRs and reactive emergency communication through ECDs, the Company provides a holistic approach to modern public safety challenges. ​ 8 Table of Contents Business Strategy ​ Knightscope is focused on driving growth through two key strategic initiatives: expanding our market penetration in Emergency Communication Devices and increasing the installed base of our Autonomous Security Robots.

Additionally, we continue to innovate with new product introductions that enhance our value proposition and provide comprehensive safety solutions to our clients. ​ Scaling ASR Deployment and Recurring Revenue Growth ​ Knightscope’s ASR business model is centered on increasing our installed base, leveraging our Machine-as-a-Service (MaaS) subscription framework to drive cumulative recurring revenue.