OUR NEW PROFILE IS: (NASDAQ: KSCP)
Knightscope clients have documented significant reductions in crime — with crime reports down 46%
KSCP Robots have logged over 1,000,000 hours of service with paying clients across 5 U.S. time zones
Present and former clients include Microsoft, Uber, Juniper Networks, the Sacramento Kings, LaGuardia Airport and NBC Universal to name just a few
Real Estate Developer in Texas Renews Knightscope Contract for 5th Year
#Houston, We Do Not Have a Problem – Knightscope Signs Another #Texas Contract! Client has more than 16,500 #apartments in 18 states with a national footprint that includes more than $6 billion in assets and identified pipeline. $KSCP #InnovatePublicSafety #SecurityRobot pic.twitter.com/jHQ1jw9c74
— Knightscope (@iKnightscope) June 9, 2022
We are back with another exciting Nasdaq profile for todays session.
This is a company that we have never profiled before. In fact, we have never seen it profiled before on any other newsletter.
This one just began trading back at the end of January. I was personally familiar with this company well before then because I had seen advertisements for their products.
Knightscope was co-founded in 2013 by William Santana Li and Stacy Stephens. Li was previously an executive at Ford, and Stacy Stephens was a former police officer in Dallas, Texas. The founders stated that they decided to create security robots after the Sandy Hook shooting in 2012.
Knightscope, Inc. is a leader in the development of autonomous security capabilities and on target to disrupt the $500 billion security industry. Knightscope leverages unique technology that combines next- generation functionalities including self-driving, robotics and artificial intelligence.
The company builds Autonomous Security Robots (“ASRs”) that are designed to provide 24/7/365 security to a variety of locations that include places where people live, work, visit and study. To date, Knightscope’s client base covers a federal government contract, public institutions and commercial business operations that include multiple Fortune 1000 companies. Its ASRs have been proven to enhance safety across a range of locations including hospitals, corporations, school campuses, entertainment venues, logistics and storage facilities, and manufacturing plants.
Knightscope’s ASRs are highly cost-effective and may be deployed to enhance traditional security systems and law enforcement functions. They provide the added advantage of continuous, automated patrolling capabilities despite conditions that hinder operations, such as the pandemic. Knightscope’s ASR solutions can be customized to suit specific needs of the location of deployment to enhance security and safety while also providing customer assistance capabilities.
Knightscope autonomous machines are designed to supplement human security teams by alerting them to suspicious activity, rather than directly intervening. Clients who have used Knightscope robots have generally reported lower crime rates in the areas the robots patrolled, primarily through deterrence rather than increased arrests. The Las Vegas Police Department reported that an apartment complex with a high crime rate that leased a Knightscope robot saw a significant drop in 911 calls after the robot was deployed. A Las Vegas police official stated he was unsure if this was attributed directly to the robot. The apartment manager, however, stated the robot did directly deter crime, on top of assisting with solving vandalism reports. A security official from Pechanga Resort Casino, which has also deployed Knightscope robots, stated that they have been useful in identifying people the casino has blacklisted, and that footage the robots provided prevented a civil lawsuit against the casino. An animal shelter that rented a Knightscope robot for a month reported lower rates of vandalism and fewer car break-ins during its deployment. Interviewees from the city of Huntington Park, which deployed a Knightscope robot at a public park, have reported a greater sense of security among the public, and a mild increase in tourism due to public interest in the robot in the area the robot was deployed, in addition to lower crime rates. Police officials from the city of Huntington Park noted a drop in crime and an increase in arrests in the area the Knightscope robot was deployed, and directly attributed this to the robot’s presence.
The company’s solution to reduce crime combines the physical presence of ASRs, sometimes referred to as proprietary Autonomous Data Machines, that are equipped with real-time, onsite data collection and analysis. The ASRs are fitted with eye-level 360° cameras, thermal scanning, public address announcements and various other features that work in tandem with law enforcement officers and security guards. This provides the 2 million law enforcement and security professionals across the nation with capabilities to enhance security, safety and unprecedented situational awareness in protecting the over 300 million citizens they serve.
The company’s ASRs autonomously patrol client sites without the need for remote control, providing a visible, force multiplying, physical secu- rity presence to help protect assets, monitor changes in the area and deter crime. The data is accessible through the Knightscope Security Operations Center (“KSOC”), an intuitive, browser-based interface that enables security professionals to review events generated by the ASRs providing effectively “mobile smart eyes and ears.”
Knightscope ASRs are capable of recording 90 terabytes of data and processing that data into a usable format to assist law enforcement to leverage information and more effectively execute their responsibilities.
Real Estate Developer in Texas Renews Knightscope Contract for 5th Year
Public Safety Innovator Continues Market Expansion
MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Jun. 16, 2022– Knightscope, Inc. [Nasdaq: KSCP], a developer of advanced physical security technologies focused on enhancing U.S. security operations, today announced that one of the largest alternative asset managers in the world has renewed its Autonomous Security Robot contract for a 5th year for two locations in central Texas. This client develops and operates over 800 properties ranging from office to retail, logistics to multifamily, and hospitality to development. Their vision is that “real estate creates real innovation,” and Knightscope certainly aligns with it, and is proud to continue working to energize communities, transform industries, and enhance lives with them in the Great State of Texas.
Public Safety Innovation
The company’s business model is designed to fight against the recurring societal problem of crime and provide next-generation innovation in the security and public safety industry that has been stagnant for decades. Because traditional practices of the sector have remained unchanged for years, automation has the potential to drive substantial cost savings and significant improvement in capabilities.
Companies incur some of the largest expenses and liabilities in the hiring and employment of human security guards. Knightscope’s robots are offered at an effective price of $4 to $11 per hour. This is a substan- tial savings compared with approximately $85 and $30 per hour for an armed off duty law enforcement officer and an unarmed security guard, respectively.
Knightscope’s ASR solutions, therefore, offer the potential to drive con- siderable cost savings. Based on these estimates, costs to implement an ASR solution can be recovered as soon as the first year of operation.
Knightscope Client Renews Contract for Fourth Year
June 15, 2022
Public Safety Innovator Continues Market Expansion
MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Jun. 15, 2022– Knightscope, Inc. [Nasdaq: KSCP], a developer of advanced physical security technologies focused on enhancing U.S. security operations, today announced that a San Francisco based real estate investment firm renewed its Machine-as-a-Service (MaaS) subscription agreement for a fourth year. The K5 Autonomous Security Robot (ASR), affectionately named “Optimus Crime,” has been watching over a multi-story parking structure since 2019 and will continue to help detect unauthorized parking, ward off criminal mischief and provide coverage in areas where fixed cameras fail to reach. Client renewals are essential to Knightscope’s growth strategy and prove to validate the longevity and effectiveness of the technology to new, incoming clients.
Knightscope Clients Give Positive Testimonials; Public Safety Innovator Provides Value and Meaningful Results to End Users
Read here: https://t.co/ORhnqL0FRW$KSCP #publicsafety #innovation #securityrobot #security #growth #stockstowatch #robotics pic.twitter.com/eLBlHunN3P
— Knightscope (@iKnightscope) June 14, 2022
Customizable ASR Solutions
Knightscope’s ASR solutions have a growing successful track record across multiple applications that include:
The company’s solutions assist to deter unlawful activity and have proven success in the arrest of suspects involved in a range of crimes, including theft to hit-and-run incidents. Visit www.Knightscope.com/Crime to learn more about ASR crime fighting wins.
In addition to deterring and patrolling criminal activity, the ASR solutions include customizable/added functionality to assist in enhancing safety across a variety of locations. These include:
Real-time threat detection through machine-embedded thermal scanning capability.
Fighting the spread of COVID-19 by monitoring building entry points to identify high-risk individuals though optional elevated body temperature (“EBT”) detection functionality.
Knightscope’s ASRs can be customized to provide assistance with vehi- cle issues such as dead batteries, flat tires and lockouts through two-way intercom call capability.
Community Imagined Solutions:
The company recently announced the availability of a new app designed to involve the community to assist in reimagining public safety. The Knightscope Public Safety App is now available in both the App Store and Google Play. Users can download the app, take a video of a location where an ASR may contribute to public safety, and submit to Knightscope for consideration.
Knightscope has four different robot models: the K1, K3, K5 and K7. Clients are charged an hourly rate of $7 for each machine they use — a price designed to compete with the minimum wage in various states. Besides being autonomous, robot features include the ability to read license plates, run thermal scans, detect hidden weapons, and identify the faces of wanted people.
The K5 model is a bullet-shaped robot that stands about 5 feet tall. It has twin panels of lights about two-thirds of the way up its body. There is also a small silver-colored flag of the United States on the left side of its body. The K5 patrols and charges autonomously and detects crime using a variety of sensors including a video camera, thermal imaging sensors, a laser range finder, radar, air quality sensors, and a detector for suspicious wireless signals.
During its autonomous patrol, if the K5 detects abnormal noise and temperature change, or known criminals, it will alert the guards. The software package with which a user can respond to such alerts is called the Knightscope Security Operations Center.
The K5 moves at 1 to 3 miles per hour. It uses mapping software to create a geo-fenced perimeter that makes it stay within one area. The K5 creates a point cloud to show a 3D image of the surroundings in the geo-fenced area. The K5 also uses an ultrasonic sensor to detect objects in surroundings and movements of its wheels.
K1, K3 and K7
In 2016, one year after the release of the K5, Knightscope announced a K3 robot with a focus on indoor environments. K1 and K7 follow-up models were both launched in 2018. The K1 is a stationary scanner designed for entrances and exits to buildings and can detect weapons in a crowd. It won the Security Today New Product of the Year award. The K7 is a larger all-terrain unit with four wheels.
William Santana Li, Chairman and CEO
William (“Bill”) Santana Li has served as our Chairman and Chief Executive Officer (“CEO”) since April 2013. Mr. Li is an American entrepreneur with over 30 years of experience from working in the global automotive sector and founding and leading a number of startups. From 1990 to 1999, Mr. Li held multiple business and technical positions at Ford Motor Company across four continents.
His positions at Ford ranged from component, systems, and vehicle engineering with the Visteon, Mazda, and Lincoln brands; to business and product strategy on the United States youth market, India, and the emerging markets in Asia-Pacific and South America; as well as the financial turnaround of Ford of Europe. In addition, he was on the “Amazon” team, which established an all-new modular plant in Brazil. Subsequently, he served as Director of Mergers & Acquisitions.
After internally securing $250 million in financing, Mr. Li founded and served as COO of GreenLeaf LLC, a Ford Motor Company subsidiary that became the world’s second largest automotive recycler. Under his leadership, GreenLeaf grew to more than 600 employees, 20 locations worldwide, and annual sales of approximately $150 million. At the age of 28, Bill was the youngest senior executive at Ford Motor Company worldwide.
After successfully establishing GreenLeaf, Mr. Li was recruited by SoftBank Venture Capital to establish and serve as the President and CEO of the Model E Corporation, a newly established automobile manufacturer that focused on the “Subscribe and Drive” model in California. Mr. Li also founded Carbon Motors Corporation in 2003, and as its Chairman and CEO until February 2013, focused it on developing the world’s first purpose-built law enforcement patrol vehicle.
Mr. Li earned a BSEE from Carnegie Mellon University and an MBA from the University of Detroit Mercy.
Stacy D Stephens, EVP and Chief Client Officer
Stacy Stephens is our Chief Client Officer and co-founded the Company in April of 2013. Previously, he co-founded Carbon Motors Corporation with Mr. Li, where he led marketing operations, sales, product management, partnership marketing and Client service. At Carbon Motors, Mr. Stephens established the “Carbon Council,” a Client interface and users group consisting of over 3,000 law enforcement professionals across all 50 states and actively serving over 2,200 law enforcement agencies.
Prior to co-founding Carbon Motors Corporation, Mr. Stephens served as a police officer for the Coppell (Texas) Police Department from 2000 to 2002. In recognition of his accomplishments, Mr. Stephens was named one of Government Technology magazine’s “Top 25 Doers, Dreamers & Drivers” in 2011.
Mr. Stephens studied aerospace engineering at the University of Texas in Arlington. He subsequently earned a degree in criminal justice and graduated as valedictorian from Tarrant County College in Fort Worth, Texas. He is a member of the International Association of Chiefs of Police (“IACP”) and also sits on the IACP Division of State Associations of Chiefs of Police SafeShield Project, which seeks to critically examine existing and developing technologies for the purpose of preventing and minimizing officer injuries and fatalities.
Mercedes Soria, EVP and Chief Intelligence Officer
Mercedes Soria is our Chief Intelligence Officer and has been with Knightscope since April 2013. Ms. Soria is a technology professional with over 15 years of experience in systems development, life cycle management, project leadership, software architecture and web applications development.
Ms. Soria led IT strategy development at Carbon Motors Corporation from 2011 until 2013. From 2002 to 2010, Ms. Soria was Channel Manager and Software Development Manager for internal operations at Deloitte & Touche LLP, where her team deployed software that was used daily across the firm’s thousands of employees. From 1998 to 2002, Ms. Soria worked as a software developer at Gibson Musical Instruments leading the effort to establish its online presence.
Ms. Soria obtained Bachelor and Master’s degrees in Computer Science from Middle Tennessee State University with honors, as well as an Executive MBA from Emory University. She is also a certified Six Sigma green belt professional and a member of the Society of Hispanic Professional Engineers.
Aaron J Lehnhardt, EVP and Chief Design Officer
Aaron Lehnhardt has served as our Chief Design Officer since November 2015. Previously, from the Company’s inception in April 2013 until November 2015, Mr. Lehnhardt served as Chief Designer of the Company. From 2002 to April 2013, Mr. Lehnhardt was the co-owner of Lehnhardt Creative LLC where he worked on advanced propulsion vehicle design, personal electronics, product design, video game design, and concept development work.
From 2004 to 2011, Mr. Lehnhardt was Chief Designer at California Motors (“Calmotors”), where he led the design for various concepts for HyRider hybrid vehicles, the Calmotors 1000 horsepower hybrid super car, Terra Cruzer super off-road vehicle, multiple vehicles for the U.S. Military, and various other hybrid and electric vehicles. He was also the lead designer and partner of Ride Vehicles LLC, a sister company to Calmotors, which worked on a 3-wheeled, standup personal mobility vehicle.
Mallorie S Burak, EVP and Chief Financial Officer
Mallorie Burak was appointed as EVP and Chief Financial Officer (“CFO”) on October 5, 2020. Ms. Burak is an experienced financial executive, bringing over 25 years of expertise across a broad spectrum of industries ranging from early-stage start-ups to multi-national, public corporations.
Over the span of her career, Ms. Burak has negotiated and managed over $500 million of successful financing and M&A deals, having spent the last 13 years focused on turnarounds and special situations for both public and venture backed companies. Prior to joining Knightscope, she served as CFO at ThinFilm Electronics ASA, an innovative solid-state lithium battery start-up, from 2019 to 2020 and Alta Devices, Inc., a GaAs thin-film solar technology start-up, from 2016 to 2019 where she secured over $13 million and $56 million in funding, respectively. Prior to Alta Devices Ms. Burak served as CFO at FriendFinder Networks, Rainmaker Systems, FoodLink, and Southwall Technologies.
Ms. Burak has a proven track record of creating a high-performance culture with a strong focus on operational excellence and maximizing shareholder value, as evidenced by the successful acquisition of Southwall Technologies, after having repositioned, restructured, and grown the company. Ms. Burak has significant experience working with a variety of financing sources, both public and private, as well as significant experience leading and managing M&A related activities.
Ms. Burak holds a BSBA and MBA from San Jose State University.
Peter M Weinberg, General Counsel
Peter Weinberg was appointed General Counsel on July 1, 2021. Mr. Weinberg leverages thirty years of diverse corporate counsel experience, spanning from startups to well-established companies, private and public. His specialized training and experience in information security, intellectual property, finance, manufacturing, and supply chain provide for quick and efficient collaboration with technical and non-technical personnel alike.
Mr. Weinberg has a proven record of success building compliance programs, overseeing complex corporate transactions and high-stakes contract negotiations, enhancing relationships with government agencies, resolving conflicts, and limiting risk. He has significant experience training personnel at all levels in critical areas to improve corporate compliance and productivity.
Prior to joining Knightscope, Mr. Weinberg served as General Counsel at solar cell designer and manufacturer, Alta Devices from 2015 to 2019. Prior to Alta Devices, he served as Legal Counsel in the communications and information technology company, NEC Corp. of America from 1999 to 2005 and was appointed General Counsel for semiconductor and technology solutions company, NEC Electronics America, where he served from 2005 to 2010. Mr. Weinberg started his legal career with design/builder Takenaka USA Corp, where he was recruited from Fordham University Law School in 1990 to be its first in-house counsel and served until 1999.
In addition to his Fordham JD, Mr. Weinberg holds a BA from Stony Brook University and an MA from New York University.
Jason M Gonzalez, SVP Client Development
Jason Gonzalez is SVP Client Development and has been with Knightscope since June 2018. He is a security professional with over 20 years of experience, delivering solutions to the private and government sectors. He has extensive sales experience in both security technology and security services.
Mr. Gonzalez began his security career with Tyco Integrated Security in 1997, selling technology solutions across a broad range of commercial industries. His success there paved the way to join Honeywell’s Security and Fire division, where he drove sales through their reseller program in the Western U.S. He then transitioned to the security services side of the industry, leading him to join G4S Secure Solutions in 2006, a global service provider of security personnel and management. As the Regional Director of Business Development for the Western U.S., he was directly responsible for local and national account sales, including hiring, training and managing a sales team.
After nine years, and over $70M in revenue generated, Mr. Gonzalez moved on to a Regional Vice President role with Whelan Security, managing sales and complex security operations across five Western U.S. states with full P&L responsibility.
Throughout his career, Mr. Gonzalez has demonstrated his ability to develop strategic partnerships and drive high growth through optimizing sales channels, organizational productivity, and team building.