INVEST IN KNIGHTSCOPE

AUTONOMOUS SECURITY

 
 

Purchase Shares in Knightscope

 

Over 6,000 investors have backed Knightscope, Inc. and the Company has raised over $40 million since inception. Securities transactions processed by M-Vest, a division of Maxim Group LLC, Member FINRA|SIPC

 
 

COMPANY OVERVIEW


  • Knightscope designs, engineers, builds, deploys and supports award-winning crime-fighting fully autonomous security robots and offers them on a Machine-as-a-Service (MaaS) business model in the U.S.

  • These state-of-the-art security robots operate in 15 states across 5 times zones running fully autonomously 24/7/365 both outdoors and indoors - wherever you might typically see a security guard - and have already secured over a dozen crime-fighting wins

  • Over $80 billion has been invested in self-driving autonomous technology with 50+ companies working on it – yet, Knightscope is the only company operating fully autonomously 24/7/365 across an entire country.

  • The Company has prior raised $40M+ and is now raising $50M in what it hopes to be its “pre-IPO” financing should conditions be appropriate for a listing; “KSCP” has been reserved as its ticker symbol on NASDAQ.

OFFERING TERMS


Raise: Up to $50,000,000

Use of Proceeds: Growth Capital

Offering Price: $8.00 per share

Offering Type: 506(c)

Share Class: Series S Preferred Stock

PRIOR FINANCINGS


 
 
 
 

Our long-term ambition is to make the United States of America the safest country in the world, changing everything for everyone.

 
 

WHY KNIGHTSCOPE?


  • The security industry is a $500+ billion market with little innovation [1]

  • For small and large enterprises nationwide, security is a recurring need - unlikely “the market for crime” will collapse as it is ongoing societal issue

  • Knightscope security robots have significant field experience with over 700,000 operating hours across 15 states and 5 times zones running fully autonomously 24/7/365

  • Unique path to real-world commercialization of autonomous technology providing pure play investment exposure to self-driving technology

  • Strong existing and growing client base, including malls, logistics facilities, manufacturing plants, property managers, corporate campuses, residential, hospitals, stadiums, casinos and warehouses

  • Machine-as-a-Service strategy targets an effective, profitable business model with high recurring revenues at scale with both a hardware and software components

  • Team has deep and relevant experience in technology, automotive, law enforcement, security, and the military - and has built the company from scratch over last 6+ years

[1] Source: BofA Merrill Lynch Global Research

 
 
 

TARGET MARKETS


  • Knightscope presently holds contracts in 15 states across 5 time zones running 24/7 - fully autonomous - typically wherever you might see a security guard patrolling both indoors and outdoors.

  • Knightscope has a number of new clients including our 2nd municipality, 2nd casino, 2nd residential property, 2nd logistics provider, 2nd hospital, multiple corporate campuses, plus our first university and our first aerospace/defense contractor.

  • We count more than 10 of the Fortune 1000 corporations as clients.

  • Additionally, with a single client we hold contracts for 5 locations in 3 states for a total of 9 autonomous security robots with a major technology corporation.  Another client will soon be operating 6 machines at a single facility.

  • Client experiences in are in malls, corporate campuses, hospitals, warehouses, logistics facilities, municipalities, airports, stadiums, casinos and residential. A visual representation of our deployments can be seen here in our Gallery.

  • Future expansion opportunities include schools, power plants, auto dealerships, lodging, farms, ranches and government facilities at the local, state and federal levels.

 

CRIME FIGHTING WINS


Knightscope has documented and verified recent reports of the following benefits achieved utilizing its technologies at numerous locations:

  • Armed Robbery - security robot provided the best evidence of armed robbery and theft of vehicle. Data provided to law enforcement in time to arrest suspect.

  • Be On The Lookout - assisted a law enforcement agency with an investigation by providing high definition quality video and license plate detections for 30 instances over a period of 4 months of the BOLO (Be On The Lookout)

  • Burglaries - elicited confession to a law enforcement agency for two burglaries and felony property damage using evidence solely collected from a Knightscope robot

  • Feeling of Safety - improved sense of security voiced to Administration and Security Director by nurses and doctors while walking to their cars after dark

  • Fire - identified heat anomaly in a hair styling kiosk; officers dispatched, removed kiosk covering and found equipment left turned on; thermal camera on security robot helped to avoid a major fire

  • Fraud - assisted a real estate owner in stopping a fraudulent insurance claim

  • Hit and Run - helped in identification and verification of car involved in hit and run in parking lot; security robot data was directly responsible for catching the suspect

  • Perimeter Expansion - assisted a casino operator with extending their signal detection perimeter capabilities to outside of facility and adding eye level high definition video at critical ingress / egress location

  • Sexual Predator - helped law enforcement issue an arrest warrant for a sexual predator

  • Stolen Bikes - significantly reduced bike theft, with numerous bikes stolen prior to the Knightscope deployment, and only one incident since

  • Thief - helped a security guard catch a thief in a retail establishment

  • Trespassing - client has prevented trespassers and substance abusers from loitering and sleeping on their premises. As a result of deploying the Knightscope security robot, they haven't had a trespasser in 6 months.

  • Vandalism - assisted a corporation in tracking down a vandal

  • Vehicle Break-Ins - client was experiencing 1 - 2 vehicle break-ins or thefts per week; has gone down to ZERO in the last 10+ months since Knightscope machine was deployed

 
The future K7 multi-terrain security robot and the 4th generation K5 outdoor security robot shipping in 2019

The future K7 multi-terrain security robot and the 4th generation K5 outdoor security robot shipping in 2019

 
 

TECHNOLOGY


  • Large fully autonomous security robots provide effective physical deterrence as well as force multiplier effect

  • Browser-based user interface may be utilized anywhere for review of live data, video, audio and anomalies

  • Provides security teams unprecedented situational awareness and forensics

  • Four (4) patents granted thus far and will continue to develop potentially valuable IP in autonomous technology, artificial intelligence and predictive analytics

 
 
 
 

MACHINE-AS-A-SERVICE BUSINESS MODEL


  • Our contracts can generate up to $96K per annum [2]

  • Effective hourly price ranges of approximately $6 - $12 per hour depending on type of machine and options selected

  • Manufacturing costs of security robot itself recovered in year one [3]

  • $250K estimated profit per robot over targeted life of 5 Years [4]

  • About 30% of customers pre-pay full year contract

  • Recurring revenue for a recurring need

[2] Assumes K5 machine under contract for 5 years at $96K per annum

[3] Assumes $60K bill-of-material cost

[4] Assumes $34,000 per annum support/maintenance/service costs; assumes long-term durability target of 5 years versus current depreciation period of 3 - 4 years

 
 
 
 

LINKS


 

EXPERIENCED MANAGEMENT


William Santana Li, Chairman and Chief Executive Officer

  • Seasoned entrepreneur, intrapreneur and former corporate executive at Ford Motor Company

  • Founder and COO of GreenLeaf, which became the world's 2nd largest automotive recycler (now part of NASDAQ: LKQ)

  • BSEE from Carnegie Mellon University and MBA from University of Detroit Mercy

Stacy Dean Stephens, Executive Vice President and Chief Client Officer

  • Former Dallas-area law enforcement officer and seasoned entrepreneur

  • Government Technology magazine’s Top 25 Doers, Dreamers & Drivers for commitment to advancing law enforcement technology

Mercedes Soria, Executive Vice President and Chief Intelligence Officer

  • Winner of GHC 17 Leadership ABIE Award for Women in Technology and Silicon Valley Business Journal’s 2017 Woman of Influence Award

  • Former Deloitte software engineer and leader with 15+ years of experience in enterprise, artificial intelligence and machine learning

Aaron Lehnhardt, Executive Vice President and Chief Design Officer

  • 20+ years in two- and three-dimensional product and industrial design

  • Digital design expert including modeling and Virtual Reality (VR)

  • Former Ford Motor Company senior designer and Alias 3D instructor at the College for Creative Studies

Marina Hardof, Executive Vice President and Chief Financial Officer

  • 15+ years of financial leadership and corporate management in both public and private enterprise.

  • Former CFO of Cloudmark, Inc. a messaging security company (acquired by Proofpoint, Inc.); various financial roles at Unwired Planet, Inc. (f.k.a. Openwave Systems, Inc.), which was acquired by a private equity firm.

  • Nine years with Ernst & Young and Deloitte serving clients in the technology industry. Licensed CPA in California.

KNIGHTSCOPE LEADERSHIP PHOTO (left to right): Mercedes Soria, Stacy Dean Stephens, William Santana Li, Aaron Lehnhardt, Marina Hardof

KNIGHTSCOPE LEADERSHIP PHOTO (left to right): Mercedes Soria, Stacy Dean Stephens, William Santana Li, Aaron Lehnhardt, Marina Hardof

 
 

Q&A with the CEO

THE Q&A SECTION INCLUDES FORWARD-LOOKING STATEMENTS, BASED ON THE COMPANY’S CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE DISCUSSED IN, OR IMPLIED BY, THESE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE IDENTIFIED BY WORDS SUCH AS “BELIEVE,” “EXPECT,” “INTEND,” “PLAN,” “WILL,” “MAY,” “SEEK,” “TARGET,” “ESTIMATE,” “CONTINUE” AND OTHER SIMILAR EXPRESSIONS. IN ADDITION, ANY STATEMENTS THAT REFER TO EXPECTATIONS, PROJECTIONS OR OTHER CHARACTERIZATIONS OF FUTURE EVENTS OR CIRCUMSTANCES ARE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE EXPECTATIONS REFLECTED IN THE FORWARD-LOOKING STATEMENTS ARE REASONABLE, THE COMPANY CANNOT GUARANTEE FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS. THE COMPANY HAS NO OBLIGATION TO UPDATE OR RELEASE THE RESULTS OF ANY REVISIONS TO THESE FORWARD-LOOKING STATEMENTS TO REFLECT ANY FUTURE EVENTS OR CIRCUMSTANCES.  

 

LEGAL DISCLAIMER

Knightscope and its website are operated by Knightscope, Inc. (“Knightscope” or “Company”).  Securities transactions requiring intermediaries are offered by WealthForge Securities, LLC, a registered broker/dealer and member FINRA/SIPC.  Knightscope and WealthForge Securities, LLC are not affiliated. Knightscope’s Series S Preferred Stock offering is intended only for accredited investors.

Knightscope does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Investors must be able to afford the loss of their entire investment.

Any financial projections or returns shown on the website are illustrative examples only, and there can be no assurance that any valuations provided are accurate or in agreement with market or industry valuations. Any investment information contained herein has been secured from sources Knightscope believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. Offers to sell, or the solicitations of offers to buy, any security can only be made through official offering documents that contain important information about risks, fees and expenses. You should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity.