A Letter to Our Investors
“We are on a long-term mission to make the
United States of America the safest country in the world.”
Our goal seemed more than outlandish when we started Knightscope over 8 years ago, but now with the support of over 28,000 investors, over 1 million hours of operation under our belts, and numerous crime-fighting wins proving the technology to be effective, we have a strong foundation to achieve our mission.
Our endeavor is likely to span decades, and we must maintain a laser-sharp focus on the objective. What we are doing is technically complex, execution intensive, and will take time to scale up methodically. Knightscope is reimagining public safety at a time when our nation needs it most – and we are profoundly grateful for our investors’ unwavering support for the long-term.
These are serious times, requiring serious people, and serious technology – and not even a pandemic will stop us. 2020 was a volatile year that presented Knightscope with unique challenges and historic opportunities. I am proud of the Knightscope team’s ability to push forward, supporting our Clients, without skipping a beat despite the obstacles presented by COVID-19.
Our development team continues to innovate and build on our existing, cutting edge technology with defined initiatives – leveraging our significant experience of operating in the field nationwide in a variety of conditions, both outdoors and indoors. Deployments have demonstrated success through 5 summers and 4 winters across a broad expanse of landscapes and locations. Our ongoing objective is to provide our Clients with advanced technologies that enable them to keep the places in which you work, live, study, and visit safe.
Throughout 2020, we prioritized our external focus by providing our Clients, both new and existing, with 24/7 support while also concentrating on optimizing our internal operations in pursuit of continuous improvement and strengthening our balance sheet. Our efforts to reduce operating expenses across the board and raise additional capital enabled Knightscope to persevere throughout the year with minimal disruption from the pandemic.
In fact, I am proud to say that the Company grew its headcount significantly, creating new American jobs, in 2020 despite the many workplace hurdles imposed by COVID-19 and general economic turmoil. While we experienced a temporary slow-down in deployments with some Clients that supported crowded venues such as stadiums, malls and cinemas, new deployments to commercial properties, municipalities, utilities, hospitals and casinos offset the financial impact imposed by the pandemic.
LONG KNIGHTSCOPE, SHORT THE CRIMINALS
The horrifying FBI Crime Clock can help put things in perspective and by some estimates the negative economic impact of crime is now over $2 trillion annually. We need as a country to do better, and we will do so – together.
I believe to complete our mission in the long-term, we will need to have over 1 million Machines- in-Network added to the country’s workforce to support the estimated 2 million officers and guards, who collectively drive over ½ million law enforcement vehicles and leverage the over 70 million security cameras across America. This will take time, which is why we are focused on the long-term mission of the Company and not short-term pressures or distractions.
As previously communicated, we are assessing the best path for Knightscope and our shareholders with respect to a possible future public listing. We anticipate calling for a special shareholder meeting over the summer to share with you our plans and how you can continue to support our efforts.
The first role of government is to protect its citizens. Our country is well over 200 years old and virtually no administration has addressed this fundamental issue at the local level much less nationwide – and it must be addressed to build a better future for all Americans.
I don’t believe the Founders of our country would have accepted a society in which going to work, going to school, or going about your daily lives came with a potential risk of being victimized. But we, with your kind, gracious, direct and ongoing support, plan to put a massive dent in the problem. It will be our life’s best work – that you have made possible. Onward!
William Santana Li
Chairman and CEO