Knightscope, Inc. Q1 FY2023 earnings call

• Backlog issues due to supply chain problems; production process improvement planned with new machines targeting faster build times, and hiring needed. - Social media and LinkedIn presence discussed, with company posting daily and personal posts weekly, suggesting leveraging LinkedIn for public safety connections. - Cash position improvement strategies include sales growth, financing partnerships with Balboa and Dimension funding, buying materials for backlog, delivering on backlog, and exploring non-dilutive debt offerings. - Addressed NASDAQ listing requirements, with 180-day cure period to meet $50 million market cap and $1 share price, and efforts to improve financial performance. - Mentioned acquisition of CASE Emergency Systems and strategic benefits like cross-selling. - Discussed challenges in sales and marketing to law enforcement and security sectors due to conservative nature.

No detailed breakdown of financial performance by specific product segments in terms of absolute revenue and revenue contribution % was provided in the transcript.

• Target to be profitable in the next 24 months. - Working on improving cash position through multiple strategies including sales growth, financing partnerships, and supply chain management. - Exploring non-dilutive debt offerings as part of improving cash position.

• Supply chain issues causing delays in production and delivery of backlogged orders. - Market volatility and impact on stock price, including NASDAQ listing requirements for market cap and share price. - Slow adoption by law enforcement and security sectors due to their conservative nature. - Exposure to financial market events like Silicon Valley Bank failure affecting cash position.

Q: Concerned about backlog timeline and catching up?

A: Supply chain issues are causing delays. Production process is being improved with new machines targeting faster build times, and hiring additional staff is needed. We've hired a senior supply chain manager and are recruiting a plant manager.

Q: Thoughts on social media presence, especially LinkedIn?

A: Company posts daily on Knightscope page, personal posts weekly. Suggested leveraging LinkedIn for public safety connections by engaging with relevant professionals to spread the word.

Q: About ATM shares issued and stock price?

A: ATM is used to draw down capital efficiently. Share counts: ~44 million Class A common shares outstanding, ~10 million Class B common shares, and ~10 million preferred shares. Market cap and share price are factors in NASDAQ listing requirements.

Q: Concern about delisting and reverse splits?

A: NASDAQ gives 180 days to cure listing issues (market cap and share price). Efforts are being made to improve financial performance to meet requirements. Reverse split wouldn't cure market cap issue.

Q: Gross margin and profitability?

A: Gross margin is complex due to Machine-as-a-Service model. Production process improvements and scale are key. Target to improve gross margin over next 2-3 years through better production, reducing costs, and increasing revenue.