In the spirit of continuing to engage our original investor base, welcome our new investors from the public markets, and improve our communication with our friends on Wall Street, we're going to devote part of this town hall to reviewing some of the financial highlights from our recently filed quarterly report on Form 10-Q for the first quarter of 2023, as well as share some current events that may be of interest to our stockholders and potential investors. This town hall format is intended to provide an informal forum for our audience to ask questions from Wall Street to Main Street, from Silicon Valley to Washington, D.C. If we're going to achieve our long-term mission of making the U.S. the safest country in the world, we're going to need the entire country engaged, and today is part of it. Of course, any and all figures presented today in this presentation should be read in the full context of the company's recent regulatory filings and risk factors, and those are available for you at ir.knightscope.com. Now, let's get to the numbers. Last year in 2022, we recorded $5.6 million in aggregate revenue, and that's from both service and product for the year, reflecting an over 60% growth rate from the prior year. Additionally, at the end of 2022, we built up a backlog of approximately $3.9 million in new orders. By the 19th of March of 2023, as reported in our 2022 10-K, that number had increased significantly to $5.2 million, which is almost the same amount of the revenue for the entirety of 2022. The significant top line and backlog increases are attributed to our acquisition of CASE Emergency Systems during the fourth quarter of 2022. With respect to the first quarter of 2023, there are three key points. First, I am pleased to report that for the first quarter of 2023, we recorded approximately $2.9 million in revenue over the first three months of the year, which is an over 300% improvement over the first quarter of 2022. This included a year-over-year increase in service revenue of approximately 85%. Service revenue includes our ASR Machine-as-a-Service revenue, as well as maintenance and support revenue related to the blue light towers and call boxes, which is the primary driver of the significant increase as compared to the first quarter of 2022. Product revenue relates to emergency communication device sales and contributed approximately $1.1 million in the first quarter of 2023. Despite the ongoing drag from supply chain issues, this reflects an annualized revenue run rate of approximately $11 million. Second, with our focus on top-line revenue growth and cost reductions taking effect during the first quarter, we had a significant positive swing from a gross loss in first quarter of 2022 of $549,000 to a gross loss during first quarter of 2023 of $213,000 or nearly $336,000 improvement. The increase in gross margins is primarily attributable to positive margins generated by our product sales. On a percentage basis, gross margins move from a negative 58% gross margin to a negative 7% gross margin. Our plans are in place to continue to improve our service and product margins as we scale up. Comparing first quarter of 2022 to first quarter of 2023 on a per share basis, we improved significantly from a $0.30 loss per common share to a $0.06 loss. Last year, we noted our plan was to achieve profitability in the next 24 months. We have made positive movements in that direction. We plan to continue growing the company. We believe our sales pipeline is strong and increasing sales will allow us to grow, drive economies of scale, and better leverage our fixed cost base. Third, during the first quarter of 2023, despite supply chain challenges, we were able to reduce our backlog of new orders from its peak of $5.2 million reported in our 2022 Form 10-K down to $4.7 million in about 30 days. Given the ongoing positive demand for our technologies, our multimillion-dollar backlog of orders is continuing to increase. We are therefore focused on transitioning our production strategy from a work cell environment, which is appropriate for smaller volumes, to a more traditional assembly line process set up to accommodate a larger volume of units with new processes to optimize throughput for the manufacturing of our Autonomous Security Robots here in Silicon Valley. Our cash on hand at the end of 2022 was $4.8 million, and our cash and cash equivalents at the end of first quarter 2023 was approximately $2.4 million. We seek to improve our cash position through a seven-fold plan, which is underway and includes the following. Number one, continuing to grow our top-line revenue with new service contracts and product sales. Number two, leveraging our financing partnerships with Dimension Funding and Balboa Capital to fund new orders upfront, improving our cash flow. Number three, accelerating delivery of our backlog of orders. Number four, continuing to use our At-The-Market program managed by H.C. Wainwright. Number five, realizing cost savings from the cost cuts implemented in January of 2023. Number 6, reducing our variable costs related to our ASRs, such as telecommunications, service, and cloud costs to improve our margins. Number 7, exploring a possible non-dilutive debt offering to continue to fuel our growth. As a follow-on to the 10 town hall marathon we conducted last month, we'll now transition to the live portion of the town hall for questions from our longtime investors, new retail investors, institutions, and analysts. Thank you. All right. Welcome, everybody. We have a very large gathering. Let me do some ground rules first. First and foremost, thanks to everybody for taking time out of your busy day to talk about all things Knightscope. For those of you who've gone through this with me a few times, just bear with me. I need to put the forward-looking statements disclaimer, and looks like it might be too long, so I might need to do it in a couple of shots here. We need to put that in there just for safekeeping. The video that you just saw will be on our YouTube channel here shortly. You'll be able to grab that, and we can go over today again to answer any questions. I need to talk to counsel to stop making these disclaimers so long. Anyway. A few ground rules before we get going as I let people in here. This is intended to be questions from almost every angle. In some cases, obviously, I'm an officer of a publicly traded company. I may not be able to answer your question exactly the way you asked it, so I might rephrase it or I'll tell you I can't answer it. I'll try to be as responsive as possible. As long as I legally can answer it, most likely, I will. Obviously, we wouldn't be sharing any MNPI or material non-public information. We wanna be mindful of that. Henry's already got his polite hand raised. Beat me to the punch here. Because we have such a large group, the easiest way to do this, the chat gets a little bit too much. It's just me on this side. The easiest way to ask a question, if you go all the way to the bottom of your Zoom there, you can click on the little reactions button. On that little reactions emoji thing, there's a raise hand. If you click on raise hand, then I know that you've got a question. Let's try to do this kinda one at a time, so we're not talking over each other. I will stay here as long as you need me. I wanna make sure everyone's questions are answered. We'll just keep going through the easy softball questions, and I'm sure somebody's got a zinger in there or two, which is fine, which is why we're doing this. With that, I'm gonna prioritize the people with their hands up and then, if we have a lapse there, I'll go through the chat. Why don't we start with Henry since he was first in line there? Go for it. Thank you so much for what you're doing. Really appreciate the work you're doing. I think it's so important for our communities. I was a little late tuning in, sorry if I missed any of the initial information. Family stuff happening. No worries. No worries. -apologies for that. Thank you so much for the work you're doing. I think that's really what I wanted to lead off with. My question is, let me introduce myself. I'm Henry Schuler. I'm an investor, early investor. And I'm also a founder and CEO myself. I'm curious if you're interested in working with local communities, if you're already working with towns and governments. I'm sure that's part of your order backlog. And how would, you know, I sit on as a trustee on the city council in my city. How would a trustee go about engaging with Knightscope and helping to make our community safer in the places we live and take care of our families? Appreciate the support and the question. The easy-peasy is for me to share my screen. If you go to Knightscope.com, for that particular question, we do have something a little controversial that we started. I'm trying to find it here. If you go to Innovate Public Safety at the bottom, there's literally a mayoral challenge if you wanna read about that. The concern I've got is a lot of the safest places in the country are really low population, are kinda higher income, medium income, six figures, and for whatever reason, maybe it's the weather, likely in the Northeast. If you wanna read through that's probably the best and easy way to engage. Every city municipality is very different. Sorry, let me let some people in here. Some cases, it's the mayor that really wants to drive something home. It might be the city council member, a single member who decides, "Okay, we need to do this," and that literally has happened. It might be the chief of police, it might be the sheriff, it might be a hospital administrator. Again, every town and city is so different. It's really difficult, Henry, to just say do X, Y, Z, and then everything happens exactly right. Getting the dialogue going is probably the best thing and getting a decision maker or two to sit with our team. Now that we've done this a lot, more than 2 million hours across the country, I don't know, 6, 7 winters and summers, like, we've learned a thing or two. Usually it's best to have a dialogue and be able to assess the situation and go, "Hmm-I don't think we can help you because you asked for this and this, and we don't do that, and just be super frank." In some cases it might be a perfect fit, and then we can have an initial use, like, what is the problem that we can potentially solve? Then we can get the, you know, decision makers in the process going. Honestly, some cities and municipalities have shocked us how fast they can move, and some are complete opposite, and it doesn't necessarily correlate to small, medium or large, like what you would think. Hasn't been our experience thus far, but I appreciate that, Henry. Great. Yeah. Thank you so much, William. Thank you so much for all you do. I appreciate the answer. Thank you. I'll start digging deeper and then bring it to the right people. Awesome. Thank you. Very much appreciate it. Thanks, John. Yvonne? Hey, Bill. First of all. Hi thank you so much for being such a hands-on guy. We love that. I'm trying. Hey, I hope you never outgrow being hands-on. Maybe I missed it. I'm a little concerned about this backlog. Is there a timeline for catching up or being further along? This is good and bad and a little bit of humor. If you remember the old I Love Lucy episode where they're making chocolates. The bananas. Yeah, the chocolates. Then they stop to start eating them 'cause there's too many coming at the same time. It's been good news and bad news. You know, years ago we would be sitting there going, "Will we get a sale? You know, will anything happen?" Now we're getting closer to a rinse and repeat. On the positive side, we have a backlog, right? To have multimillion dollars worth of pending or potential revenue is wonderful. The team has started shipping stuff, but the sales team keeps putting more stuff in, right? There's this, you know, tension. The primary root cause of the problem, I would say the primary one, is the supply chain issues. It's, I've covered ad nauseam. Either it's a wiring issue problem, it's a chip problem, it's a resin problem, it's a resistor problem or something that holds things up. It's very lumpy. We are, we are shipping. It's just not as kind of consistent that we want. You know, frankly, you want the backlog growing, but you wanna make sure you're utilizing the revenue. One big thing that we mentioned in the video that we're doing is to change the production process itself. How we manufacture the robots at Knightscope headquarters here in Silicon Valley is, I've said this before, you know, our current machines take 100 to 120 hours to build 1, or crudely speaking, 1 a week, which is not good. The new machine that we've now started building with, you know, big asterisks on the supply chain issues, you know, targeting to build one or two a day. That's gonna make a big difference. Staffing also makes a big difference, needing to hire some additional folks once we make those big changes. The board, myself, the team, everyone's scrambling to try to get these out as fast as possible. I share your concern, Yvonne, because that's revenue that we wanna recognize. I think the last point, if you didn't catch it in the video, you know, we did $5.6 million of revenue last year. We hold north of, from the figures that we shared, about $5.2 million in the backlog. It's a little crazy to be ending the first quarter with almost the same amount of revenue that we had the entirety of all last year. That's another a more positive way to look at it. It's a top of mind for all of us. We're working through it. We've hired a senior supply chain manager. We're out recruiting a plant manager. We're working on it, but it's certainly a concern. Thank you. Of course. John Patrick? Yeah. Hi, Hi, Bill. Hey. Hi. wanted to ask you about social media. Uh-oh. Yeah. I don't get him. ... I know it's top of mind for you to get the buzz going. No You've done a great job in communicating with investors and a lot of the graphic and art and communications work looks really good to me. It does. Folks, if you're not, if you're not on, speaking please. I was unmuted. kindly please mute would be great. All right. Yeah. Sorry, John Patrick. Yeah, I'm back. With the social media, you know, a lot of it might be fun, but not necessarily helpful to Knightscope. LinkedIn, as you know, is more of a professional kind of a social media network. Are you saying the others are unprofessional, John? well, there are some signs of it. We'll see what's gonna happen at Twitter. LinkedIn is pretty serious stuff. Yep. I took a look there today, and I did find Knightscope, but the latest post there, from yourself was, I think, seven months ago, and so it looked like it was dormant. Oh. If we can connect offline. Yeah ... and you can show me. Like, I post probably personally once a week, if not, if not more. The company posts literally every day. I'm not sure where you were looking. Okay. Well, the intersection then must be the company and you at the same place. If you're posting to your own page as opposed to the Knightscope page, I'm speculating on that, but it definitely did say it was 7 months since there was a post. Mm. I'd have somebody take a look to see why it's saying that. Actually, my suggestion, my point is if you do a search on public safety on LinkedIn. Yeah ... there's a lot of stuff there, companies, and people. Yeah. There's a section I found that says, "People that are talking about public safety. Right. There's about a dozen of them, and they're, you know, very senior people, some in local government, some in industry. Connecting with some of them might be, might be helpful to try to spread the word because those people, in turn, are connected to people who are reporters. Yeah. We. This is the admin view for LinkedIn. You can see that we're posting literally every day. I'm not sure where the issue might be. If you look at mine, I've got 11,000 almost followers. Right. I did see that. Posting there all the time. Must have been some disconnect. Our lead generation team certainly focuses on getting as many people engaged as possible, both offline and online. Some of our team is pretty astute on the LinkedIn side of things. Yeah. Take your point. You know, from what we found, it's never one thing. I always get challenged internally from my teams like, "What's the one thing we should be doing to, like, it'll all work?" I often go back to my days in Detroit where, you know, if you're trying to sell a car, you probably marketed it 17 times before you literally sold it. Like, you've got to think about the regional dealer, the local dealer, the automaker, the leasing finance company, the brand, the nameplate, and then they have offline, online and, you know, the number of permutations. to me, in order to be effective, it's got to be, quote-unquote, "all the above." and we've got to be, as within reason, everywhere, as much as possible to get the word out. part of it's today, of just engaging with our supporters and our investors to help get the word out. I was thinking the announcement about Rutgers, you know, that's a very positive announcement. On LinkedIn, every university is on LinkedIn. Yep. A blurb, a short article, kinda like that mayoral challenge you showed a little bit ago. If you could start posting that on university pages. Yep. You know, public people that get that intersection of public safety universities, there's gotta be a lot of opportunity there. I think that goes the same with, if you go under, like, what we do here, this is all new as well. You can see the different verticals that we've got. For example, having, you know, a major airport involved, and then being able to have that blog there, to be able to showcase, kinda what we think should happen with a requisite client can also be helpful. One of the key things I would like to convey is us making that announcement, then our sales team and our marketing team, for all the leads that they're working on, they can use that content. Yeah. It doesn't have to be online. It's like, I've been talking to so and so university, look what, you know. Right. Probably a different way to say it is, you know, landing our first hospital, our first casino was really hard. Getting the second one was a little bit easier, the third one a little bit easier, on and on and on. Then it becomes a little bit rinse and repeat. Yeah, Rutgers is a huge deal for us, through the acquisition of CASE Emergency Systems. I think that thesis of having some cross-selling over time, because we're literally talking to the same folks, is gonna be a benefit. You know, it takes some time to get through the whole process. Right. Okay. You're on the case. We're on it. We're on it. Not perfect, but we're doing the best what we can with the resources we have. Right. Keep up the good job. Thank you, sir. Mark. Hello, William. Oh. Thank you for doing these calls for us. Really appreciate it. My question's about the ATM. How many shares have we issued under it and at what price? What's the current total outstanding versus when we came public? You're gonna test my memory here. Hopefully, I get these roughly right. If I get them wrong, I have to refer you back to the regulatory filings at ir.knightscope.com. Okay. To get the actual correct numbers, but just from memory here. Yeah, rough is great. from our recent filings. The ATM for the rest of the benefit of the group is an At-The-Market facility, and it's to draw down capital as efficiently as possible to kinda avoid a large, huge financing that's highly dilutive. Remember, my entire net worth is in the company. I've got 7 million shares. I don't wanna see dilution as much as anyone on this call. The company does need capital to continue to grow, so we need to do it as efficiently as possible. If I'm correct, I believe the recent 10-Q filing we did on Friday for the first quarter of 2023, I think we drew down during the first quarter about $3 million-ish or maybe $1 million a month or so. In terms of outstanding shares, again, from memory, I think we've got maybe 44 million shares common outstanding. There's probably 10 million shares of Class B stock that doesn't trade. That's kind of the founder's shares. There's probably another 10 million of preferred stock that never converted as part of the public listing. Just a refresher, because we didn't do an underwritten S-1 IPO, like a normal company would have, we didn't have an automatic conversion for all those preferred shares to convert to common. Some people decided to keep their preferred shares, which basically hold a 1x liquidation preference. There's no other dividend or any other kind of financial benefit. Some people just decided not to put the shares at their broker or what have you. 44 plus 20, $64 million. I don't know the answer off the top of my head on the where were we 15 months ago? Hopefully that's enough to get you started. Yeah, appreciate that. A million a month. Are we actually getting at the money, so today we would get $0.57 or whatever it was? If we drew down on it. ...just for the broker? Yeah. If we drew down on it's at our discretion when we do it, how much we do it. We try to obviously minimize the amount versus doing the opposite, which would be like, let's go raise $10 million or $20 million at these share prices. Sure ...is not something I get all too excited about. We're trying to be careful. Trying to be careful with it. You know, back to some of the earlier questions on the backlog, do you think it would be smart for us to draw down a little bit of capital so we could hire 2 more production technicians, so we can get the backlog out faster? I think if everyone knew what I knew, you would go like, "Why are you even asking me this question? Just go do it." We're trying to be very careful on how we go about doing it. You know, remember at the last part of the video, there were, you know, kinda 7 key aspects to be able to improve the cash position. It's not just the ATM. A bunch of people joined before after the video, so let me just go through this for if that's okay, Mark. Of course, sir. The cash position needs to get improved, right? There's seven things that we're working on. One is just the sales growth. Obviously, you've seen that we've been putting out good positive news almost like clockwork on a weekly basis. The momentum. Remember that we have financing partnerships with both Balboa and Dimension Funding. How this works is for some of the orders that's appropriate, we would get that financed, so we actually have the cash in hand for obviously a fee, but it helps the cash flow side of things. Obviously, we need to buy materials to get through the backlog. There's deployment times and everything else, so that can help the cash position. We need to deliver on the backlog itself, right? wherever we're at, $4 million or $5 million or more dollars, that's cash coming into the company. The ATM we just spoke of, Mark. Cost reductions. Remember we announced a 20% reduction in force at the beginning of the year, and some of those cost reductions and actions that we took there will continue to help us in reducing the amount of cash that we utilize. We also announced that we're targeting to get to profitability here in the next 24 months, and part of that's improving all our margins and getting our costs down. The good news here on the telecom side is our clients are using the service and using it a lot, which means they're eating a lot of data. We've been taking a lot of actions to reduce whatever we can control from a software standpoint to reduce those expenditures. We're also very hard pushing on getting the private LTE and lower types of costs for us to reduce that expenditure outright. The service costs need a good amount of work in terms of parts and logistics and the amount of maintenance and service. Remember, if you drove your car 24/7 for 30 days in a row and never stopped, and, you know, we took care of your fuel, you probably would need some service at the end of the month. If you did that for, you know, 6 or 12 months, you definitely would void the automaker's warranty. That's the level of duress that these machines are going through. You gotta have some maintenance and service and support. There's obviously cloud costs. We're looking at a non-dilutive debt offering. The point here, Mark, is that the ATM is not the sole source to fix everything. We wanna look at this, you know, kinda systemically. I appreciate all the conscious thought that you're giving to it. In a related question, now, a lot of chatter in the chat about delisting. Are we gonna be able to avoid that, do you think? Delisting. We actually 2 things for Nasdaq. Knightscope is required to meet 2 financial metrics. One is you have to have a $50 million market cap, which we did get a notice for. We also have to have a share price that's over $1. That is also an important point. If we're able to. A few points here. If we're able to get above $1 or above $50 million market cap for 10 trading days in a row, that gets it cured. Nasdaq gave us a notice, them, us, and several 100 companies, because obviously the economy's not doing all that great in some aspects of the markets. We have 180 days from the day we got the notice to cure the problem. Typically, not always, but typically, if you're unable to cure the problem within those 180 days, you can ask Nasdaq and petition as to why you should get another 180 day extension. Whichever way you wanna look at it, we have ±6-12 months to fix the problem. We don't control, I get tons of emails and text messages like, "Bill, you need to fix the share price." I don't control the market. That's frankly, not to be funny, but that's everyone on this call, and not me. It's supply and demand. What I can do and what my team and I can do together is improve the financial performance of the company, keep it growing, keep telling the story to whoever will listen. The rest of it's kind of up to the market. We don't control pandemics or, you know, bank failures or interest rates or inflation, or the like. I think we have more than a reasonable chance that over the next 6 to 12 months that continued performance, cold financial performance, and getting to profitability and the company growing, it's kinda... I don't know. From a personal standpoint, it's really hard for me to understand a company's growing double digits at the intersection of 4 important technologies, you know, AI, autonomy, robotics, and electric vehicle technology, that we wouldn't have the eyes and ears of a good amount of investors. We just need to kinda continue to prove ourselves. We've got a shot to fix it, but this is a 2-way street, and we don't control everything. Part of it's the market, which frankly, Mark, you and the rest of the investors on here represent. Thanks very much for taking the tough questions, Bill. Really appreciate your straightforwardness. Of course. Of course. What we're doing is technically extremely difficult, and if we're not willing to engage with people and have a frank discussion, like, this is not gonna, you know, it's not gonna happen by itself. I appreciate you taking the time, Mark. let's go on to Madhu Tuluri. Yeah. Thanks for taking my call. If I look at the rounds we raised when before you were public, I think the cost basis on that was around $8 or so. Just, and the current price is around $57. I just wanna figure out, was there any, like, split or something that changed the cost basis, or am I misreading how the previous investments work? A follow-up question after that. Of course. The number $8 is one of. Yeah. We had numerous rounds. Again, don't quote me here. Make sure you go back to the regulatory filings. Notionally speaking, the seed round was done at, I wanna say $0.33 a share. We did something at $0.80-something a share. There was a buck something, and then there was $3, there was $8, and there was $10. You've got 35, just before the public listing, we had about 35,000 investors, you know, all the way down from $0.33 up to $10. I wouldn't say that 8 is the number, one. Two, there has not been any stock splits or the like. I guess for the benefit of the group, I'm gonna give you a slightly longer answer because I think a lot of people might have a similar question. First and foremost, I just wanna reiterate what I said earlier. We or Bill does not control the stock price. It's literally supply and demand, what's out in the marketplace. If a bunch of investors that bought in at $0.33 a share decide to dump half a million, $1 million, $2 million shares into the market and there isn't a counterparty on the other side to buy a bunch of shares, well, what's gonna happen? The share price is gonna go down, right? That's one thing to consider. Another thing to consider is the overall market is, especially for microcaps or small-cap companies, anything under $1 billion has been, you know, hurt pretty hard from the tech downturn. You know, frankly, you can almost watch it, the interest rates go up and share prices go down. It's kind of almost tied directly together. It feels that way. You've got inflation, you've got a bunch of issues, you've got a bunch of short sellers that are putting pressure on the stock. We don't control any of that. I haven't sold, you know, we took the company public. I didn't sell a single share. I haven't sold a single share. Don't plan on selling a single share. All the pain and suffering that a lot of people are feeling, I'm literally on your side, financially aligned. I don't want anyone ever thinking that, you know, we're doing something odd that would be not in the best interest of the shareholders in the long term. It's really frustrating. I mean, we're trying to do something positive for the country, and for someone to be out there shorting the stock, you legally have the right to do that, but you're probably gonna end up on the wrong side of history for doing it. All we could do is keep telling the story, get the financial performance. The way to cure it is you gotta have more buyers for the stock than sellers. I mean, it sounds too, almost too simple, but that at the end of the day is what ends up, what ends up happening. Hopefully I answered your question. Probably not exactly what you wanna hear, but it's kinda. No, that's fine. The follow-up question is, if the valuation pre-IPO was pretty high, rather than trying to go through this listing and delisting process or whatever, it looks like the public markets are not valuing the stock as, you know, as high as it was in the private market. Can you just take this back private? I guess there's two answers. One, as an officer of the company, I legally have a fiduciary responsibility to look at everything regardless if I personally like it or not. I don't know how to do that, basically. You would have in order to take it private, like if I'll put myself in. Not to use you as an example, let's say I invested at $10 a share, and then we took the company private at $1 a share, $2 a share, $0.50 a share. Like, I'd be pretty cranky. I don't know how to physically do that transaction, and then you'd have to go raise some capital to go along with it. Like, everything has to be on the table. Like, I don't think I'm speaking out of turn here. I don't know how that cures the problem. unless you had a large financing source that would be willing to give the shareholders an appropriate price, right? and then have enough capital when you're private to grow the company. As I said, everything needs to be on the table. I don't know exactly physically how to do what you're suggesting. Sorry, I need to caveat that. That would be in the best interest of the existing shareholders, that footnote is kinda really important, right? Yeah. Got it. Yeah. Thanks. Of course. Kerry Dyne? Hey, Bill. Thank you. I wanna echo the sentiments of everyone else. Thank you for your availability. It's refreshing to invest with a company where the CEO is so available to the shareholders. I did purchase in 2019, I believe it was Series S Preferred, and consider it a long-term investment. Had it been up to me, I'm making a statement, and then I do have a question. I would have loved to have seen the company stay private, perfect world, right? Grow and grow and grow like you're doing as fast as you're able. You're pulling on the supply chain. You're doing as much as you can. I appreciate that, and the whole team. Grow under the radar until Wall Street begs for you to go public. Perfect world, that's what I would have loved to have seen. My question is, I kept the preferred. I have not converted. I don't know what that exchange rate or even what that process would look like. I had never seen the type of public raise that you had, where common shares were sold to the public. Could you maybe inform us how was that beneficial, initially and long-term to both the company and to us as shareholders, for having that last raise where common shares were issued public? There was three words that got cut off, and then I missed the sentiment of the question. Can you re-ask the question one more time? Sure. What is, what was, what is and what is, okay. What is the benefit initially and long-term to the company and to shareholders for having the common share public fundraise to make it listed? Okay. All right. A different way to ask the question is like, why the hell did you take the company public? I'm stressing. Well, I, yeah, I'm not without saying that because I figured. That's fine. That's fine. That's fine. That's why we're here. At the time, we had a few things to consider. One is we had been private for 9+ years and had raised I don't know how much money. Well, I do know. Right before the public listing, a total of probably north of $120 million. I didn't think it was possible or viable for us to do another Regulation A offering. What we really needed was to raise the $40 million while we were private on our, don't quote me here, I think probably what would've been our fourth or fifth Regulation A. Running a Regulation A is really expensive. It may or may not have gotten done. It was one thing to consider. The second thing to consider is because we had been doing Regulation A since 2016, we had all the costs of being publicly traded without any of the benefits. Like, we couldn't There's some kinds of debt and debt offerings that we weren't able to do. We didn't have access to the wider capital markets. You gotta think through the, through the whole aspect. At the time, not knowing, you know, you can never time the markets as much as people think you can, that path was viable for us to raise some additional capital, and listing it was kinda one way to do it. You know, we do have access to monies that probably we wouldn't have before, but now you're under the scrutiny of the public markets every day, which is a, you know, I guess on a personal level, it's a little weird, right? You're like you're selling a house and everyone every day is in your face going, "This is how much your house is worth. This is how much your house is worth. This is..." By the second. It's like kinda weird situation to be in. Yeah. You know, it is what it needs to be. There are some, you know, brand aspects. There are some companies that rather prospective clients that could prefer to work with a publicly traded company. Yeah, rewriting history, I don't know. Would, you know, would we have done it again? Probably. 'Cause at the time, I didn't, I didn't have confidence that doing another Regulation A would get done, is probably the crux of the question. You know, we're here now. Okay, good. One quick statement. I appreciate the time. I'm gonna channel a precious metal investor called Rick Rule and kind of speak to the rest of the investors. The delta between a stupid low stock price and the reality of a high-growth company is where fortunes are made. Thank you so much for the time. Thanks for that. I don't think I could say that, but you can. Oh my god, Sam. Been a long time. Sam, are you there? I'm here. How are you, Bill? I'm hanging in there, Sam. Yeah. So am I. Original investor at less than $1. See it go all the way up and come back down. That's not my question. Yeah. That is as it is. My question, which I've asked you every year, is why are we not selling more of the K3, K5 robots which are revised, working very well, problems all sorted out? It seems like the sales force are not just telling the story to the right people, or there is no demand for it for some other reason. Sam, I appreciate you being on the call, and thank you for being a long time investor. Yes, Sam asked me this question religiously almost every year, like, why aren't the sales going up faster and higher? If I just step back just objectively, Sam, I think there's probably a few different factors. There isn't one thing. The first one, I would say that the premise is a little bit off because we're sitting on, I don't know, somewhere near $3 million of backlog of orders. That's to say that we're not selling anything is not good. Are we delivering? That's a separate problem. We are selling. I think the second issue is... How do I... I got taught this by my co-founder, some time ago. He's an ex-law enforcement officer, as you know, Sam. He warned me, and I think, you know, he's been right for all this time, was, the law enforcement and security market is not, and I'm gonna try to do this as politely as possible, not the most technologically progressive sector in the world, and it takes a really long time to convince people that changing is kind of the right way. I think we've got a little selling against the grain, Sam, which investors and people don't wanna hear that. You know, you're having to educate a market which is, in a lot of cases, not good. A third, Sam, just to be fair to the team, we've been strapped for resources. Up until, you know, recently, we never had a proper full sales and marketing team. Not that we're fully, completely staffed right now, but we have enough people that are generating enough leads and enough demand that we've got the qualification process sorted out. We kinda know how to do this, and we've got the right contract, and we've done enough legal and cyber and everything else. I think it's three things that, you know, have not helped us. That is to say this is not, should not be viewed as the same conversation, Sam, that we've had for, you know, a few years back when, like, are we gonna sell anything this month? Is anything gonna come in? That's not the case now. The problem is the shipping and delivering side of things. Should it go faster and higher? Yeah, that's a little bit of frustration, Sam, because we've got clients that have renewed 4 years, 5 years, 6 years, 7 years. You don't get a client to pay you full price for 7 years or, you know, more than half a decade, and you're not creating value for them. I think it's a combination of all those, Sam, and we're working the issue. That's kind of my viewpoint, Sam. Okay, I hope the government steps in and fills the coffers. Well, I think another way to look at it, Sam, if we wanna look forward without me, you know, getting out of step here, I think the federal government is a very large opportunity that will take some time. I think us landing New York City and NYPD, you know, 10 years in the making, we're really excited to be deploying that machine hopefully here during the second quarter, that opens up, you know, another large avenue. I don't wanna say it's cheap 'cause it's not, but, you know, having the federal government and New York City as a client will help us with other clients. That's no doubt. I think if you look at, you know, having several publicly traded companies as clients is a big deal. You know, Lowe's is a client of ours. PG&E is a client of ours. Penn Entertainment is a client of ours. ABM is a client. You know, these are all multi-billion dollar companies, and some, you know, may be able to scale as they have more and more time. Sam, I'm frustrated as well, but we're working as hard as we can to try to pick up the pace here. Okay. Good luck. Thank you, Sam. Barry Hannes. Yes, hi, Bill. Thanks so much for doing this. I had a couple of questions relating to the gross margin because the, you know, solving the stock price problem, you know, requires kinda getting to, you know, free cash flow neutral and, you know, kinda starts with the gross margin. If you have a negative gross margin, you can't ever get there. I'd love to just drill down on that a little bit, and maybe you could talk first of all about, you mentioned the production movement from sales to assembly line, you know. How much could that add to the gross margin? What are the other key steps you see to get the gross margin up? You know, what's sort of the goal? You know, if you go out two, three, four years, whatever, where do you think you can get to on the gross margin? Thanks. Okay. The gross margin for us as a company is a little convoluted. The gross margin, as you can see in our regulatory filings for product-related sales, like, through the acquisition for all our stationary stuff, it's more like a product sale. Like, you sell the product. You may sell a service contract or something to go along with it, but there's a margin on that product. Kinda like when I was back in Detroit, you sell a car to the dealer, you have a margin. There's variable costs, there's fixed costs, it's abundantly clear. In our, in our case with the Machine-as-a-Service, it's a little odd, right? We don't sell the machine outright. We don't sell the software outright. We don't sell the data transfer outright and everything else. You have a bill of material for the machine that gets depreciated over 3, 4, possibly 5 years at some point. You're using that to calculate the gross margin of which the revenue is obviously a part of that. The telecom costs, the service costs, the labor associated with the assembly of the machine, and then the cloud costs, right? It's a little weird because you need some scale for this to work. A good example might be the KNOC, the Knightscope Network Operations Center. Let's say you have a staff of 4 people that can run 168 hours a week, right? They need to run 24/7. Just because you added the third, fourth, fifth or sixtieth or seventieth machine, it's not like we're adding, you know, additional people to monitor those machines. You need a little bit of scale, Barry, and that's the thing that doesn't always come across. The assembly portion also makes a huge difference. If us, you know, taking 120 hours and you can pick your hourly rate, and we can build something with less than 20 hours, you can do the math real quick and go, okay, that's gonna be material. It's not gonna be one thing. You're gonna have to, you know, keep the revenue going up. You need to get the telecommunications costs down, which are material. You need to get the service costs down. You need to get the cloud costs down, you need throughput. You need to get these things out the door faster. Because we kinda see how there's possibility to get there is why we have the nerve, I guess, to say that we can get it to profitability in the next 24 months. Obviously, you know, at the end of the day, it's also the fixed costs, right? You need to keep the team as small as possible, as efficient as possible, so that we're, you know, generating a good amount of revenue. You start getting there. Like, if you multiply by 4 our first quarter annual run rate and you annualize it, you're about at $11 million, and we've got maybe 90 employees on staff. You can start seeing that if we can, you know, keep the team efficient and lean, and get our costs down, we can get there. In terms of what it could look like longer term, I, in the interest of time, I wanna make sure that everyone has a chance here. If you go to knightscope.com/rise, R-I-S-E, the investor deck, the updated investor deck is there. There's literally a slide there that shows our target, of what we're trying to get at. Okay, great. Thanks so much. Appreciate it. Thanks, Barry. Thanks for all the hard work. Thank you. Mr. Matthew Miller. Hey, Bill, you hear me? I can hear you. All right. Sounds good. I'll say, before I get into my question, I just wanna make a comment on, like, I see a lot of chat going on about reverse splits and delisting. The first thing I wanna say is I'm, you know, unequivocally, you know, I'm sure Nasdaq will give you a, you know, more time, the 180-day extension if needed. You know, I've been trading for a long time, and I've seen companies do reverse split after reverse split, and I just wanna make the point that Knightscope has never needed an extension or asked for an extension beyond what they already had. If it came down to the point where you did need an extension, I don't ever see them giving you a problem doing that. I just wanted to kind of point that out just so there's not gonna be that fear that, you know, two or three months down the line that we're gonna be looking at a reverse split or a delisting. I just kinda wanted to get that out of the way first. Hold on one second. Okay. I'm gonna start off my question just with a statement. Prior to myself becoming a full-time investor, I was actually in operations and management for one of the largest security companies in the world, which is kind of why I have an authentic alacrity for Knightscope. While there are plenty of hardworking, qualified human security guards, I firsthand know the challenges, costs, and inefficiencies in the security guard industry with constant call-outs, turnover, you know, perfunctory training for new hires, which then translates over to level of service. The average cost for a human security guard for a company outsourcing security measures is anywhere from $35-$100 per hour, depending on whether the guard is armed or not. Knightscope is a cost-saving, efficient alternative to existing security measures, any company looking to cut down on costs without degradation of security efforts should look to Knightscope as a solution. Any narrative contributing to a non-favorable economic climate, kind of like we are in now, should actually be beneficial to Knightscope as an investment. My question is, what can Knightscope leadership do to communicate this message to existing and potential shareholders? Basically, Knightscope is something you want to invest in as companies can save money on their existing security measures, and crime obviously isn't something going away no matter what the economic climate we're in. Hear, hear. Was there a question in there, Matthew? That was basically my question. I apologize. I know that was kind of a long-winded statement, but there was a question in there. What can Knightscope leadership do to communicate this message that basically, you know, you're investing into something that is going to be saving companies? Crime is gonna go on no matter what, and companies are gonna be looking to be saving money. Currently, their existing security measures are probably outsourcing a company for, you know, anywhere from $50 to $100 per hour. Investing in Knightscope, you're getting a superior service for a fraction of a fraction of the cost. You know, this is why it's an investment or this is. Yes. why you'd want to invest in Knightscope. I think, I'm the do all the above, kinda guy. If you want something done, you know, the Colin Powell's doctrine of overwhelming force usually is the one I wanna go towards, which is you need to spend time on everything. You need to spend time on calls here with our investors and supporters. You need to take every podcast opportunity that you have. You need to post on social media. You need to be on the Robot Roadshow. You need to have some of our existing clients be able to speak to a prospective client. You need to write white papers. You need to, you know, get a board member to write a blog. You can issue press releases. You basically, you gotta do everything. One of the reasons why we did the financings the way we did is I think it would be very foolish to think that a company by itself, with a handful of large institutional investors is gonna make this massive change for the country. We've gotten so lucky with so many of our investors who've introduced us to a possible recruit, who've made a phone call to a mayor, who called, you know, sitting congressman, who've been able to get a mayor engaged, who got a school administrator to take a call, to get a health and, you know, hospital administrator to engage us as a client. We can't do this by ourselves. I think it's not just what management can do, it's what can our supporters do, to get the word out. There's some things that, you know, I would love to say that you should do, but I can't. All I can do is continue to improve the financial performance of the company and communicate, and communicate, and communicate, and communicate. That's why I'm willing to put the inordinate amount of effort in answering questions online, offline, text, voicemail, whatever it is. Our CFO, our co-founder, everyone has been trying to be as responsive as possible. We can try to just continue to get the message out. You know, part of it's delivering on results. We said we're going to continue to grow the company, and I hope the graphs we put up this afternoon show that we are. Do we wanna accelerate that? Yes, absolutely. At this point, it's we need to put numbers on the board, and we need everyone's help to do it. Thank you so much, Bill. Okay. Is that Brian? He's back. Hey, Bill. I'm back. How you doing? How are you? I'm good. Okay. Well, I'm gonna hit you with some questions here. you know, All right. Well... All right. Full disclosure, I kinda threw out my back over the weekend. Uh-huh. don't freak out, but I gotta stand up here for whatever jaw-dropping nightmare question you're gonna ask me. Go for it. Well, oh, well, you're ruining my image. The inquiring minds wanna know. Do you identify yourself with the Millennium Falcon in the background or the Empire fighters? Oh, you're gonna ask me that, Brian? I'm gonna ask you. It's evil, good against evil. Of course. I mean, technologically, the TIE fighters are really cool, but it, you gotta be the Han Solo Millennium Falcon guy. Okay. Well, you know, I know that you can't control the stock price and. What? I'm being an advocate for you here. I'm not a financial advisor. You know, Knightscope went public right at the tail end of what I would call the great bull market and the qualitative easing. The market turned. If you looked at a lot of high-tech companies, like you mentioned, their valuations have been crushed, you know, over the past 6 months. I mean, it's never good to see, for example, bank stocks go under. It's never good to see bank stocks swing 50% in a day, 20% in a day. Were you guys caught up in the Silicon Valley Bank failure at all? Yeah, we've disclosed this. That was a horrifying weekend. We had all our money tied up there. Fortunately, it got resolved, you know, after the weekend. We have since pulled our the funds over to to a different bank. Yeah, Investors want confidence, right? That kind of stuff going on does not instill confidence, instilled a lot of stress on us. Fortunately, you know, we came away unscathed and, you know, it's stuff like that where we don't control. You know, we can't sit here and whine and complain either. Like, it's a problem, all right, how do we fix the problem? You just gotta move on to the next issue. We can't, "Woe is me, the market. Woe is me, the short sellers. Woe is me." It's like, listen, nobody cares. Put the numbers up, get the work done, get the revenue up, get the cost down. The rest of the stuff, like, it's entertaining, it's interesting, it's what have you, but, you know, the markets can be pretty rough. What they wanna see is results and growth, and that's what we're working on. you know, I think I've mentioned previously, I think your CASE acquisition was very timely and a very long-term, strategically well-planned acquisition based on the synergies that you have with the customer base, existing customer base, the potential for upsells. you know, obviously, you know, acquiring a new customer in the public safety room is the hardest thing. CASE had a set of customers where you could go back to and refurbish or do new installs, like your Rutgers announcement today. You know, a question I always get from people is, "Well, don't you have a cell phone?" I'm like, "Well, if unfortunately you're in a situation where you get attacked or someone steals your cell phone from you, or you're disoriented, the first thing you're looking for is that call." I think the CASE offers that solution, and then it also offers Knightscope the opportunity to offer the K5 or the Hemisphere or other product lines. Are you seeing that opportunity starting to grow? I think there's a lot of cross synergies 'cause we're basically going after the same clientele in a lot of cases, I guess, pun intended. I think first and foremost, the folks working on blue light towers will tell you part of the solution is literally the physical presence of having that light there in the first place, can stop some negative behavior. Second, your phone isn't always charged. Your phone isn't always have connectivity. Just having the GPS location, we know exactly where that call came from, not I think it's over here, can be really helpful. I think selfishly for Knightscope, and through the acquisition, there's a lot of synergies, for us to grow together and likely some product pipeline, you know, new things for us to do in the future. You know, if you look at it, you know, 7,000 devices that are out there in the field, you know, what happens when you're able to do a massive nationwide upgrade and add all the AI capabilities that we have, and in the long term, be able to have all these machines moving or not moving, see, feel, hear, smell and speak like there's inherent value creation, and it's a little bit of a land grab. It's not like in some of these places where these devices that Case had installed over the years, it's not like it's easy to just show up and I'm gonna go stick this on the highway somewhere. Like, it's a pretty intense process. Yeah, it's a long-term play. It's also, I think, if you reflect on the financials that we just put up, we asserted that it was an accretive transaction, and you can see the positive impact it's had. The team there has been doing rather well growing, and there's a lot more growth to be had. Then I'll just finish up here. I mean, I think having a backlog is fantastic as long as you're able to get the products out the door and then recognize that revenue. 'Cause you really have two parts of the business, the subscription model, you know, as a service, and then, like, the CASE model looks more of a point-of-sale type of service. Any update on the government security review and also the Hemisphere product launch? The ATO with the U.S. federal government, we're a little in the dark here. We don't know anything more than what you already know. I'm gonna need to put somebody on mute here. In terms of the K1 Hemisphere, we're working through some last-minute supply chain and technical stuff. We've got orders come in, hopefully we'll start shipping that one soon. All right, Bill. Well, again, you know, I know everyone asks you about the stock price, and if you're successful in growing the company, growing the top line, as well as getting cash flow positive, and it's all about getting the number of installs. If this economy can just kind of trend along, I think you'll be in a good position. You've been very transparent. Finally, on that non-dilutive offering that you kinda had on your slide there, can you give any details of what that might entail? Typically, companies, when they wanna raise money, they issue more stock. It becomes dilutive to existing shareholders, or they'll do a convertible type of offering of preferred shares that get converted to common. Is there anything that you can elaborate on that? Hey, folks, if you're not speaking, if you can go on mute kindly, would be great. Oops, one thing that I've learned, without commenting directly on, you know, a possible offering or anything like that, on the private market side of things, prior to the JOBS Act, you know, from 1930 whatever till 2015-ish, it was illegal for the general population to invest in a startup. You can go to Vegas and do whatever the heck you wanted, but it was literally illegal for you to participate in a Regulation A offering or Regulation CF or anything like that 'cause none of it existed. It was kind of an injustice where the general population couldn't invest in, you know, promising startups, some cause if they were behind some entrepreneur they wanted to back or what have you. As I reflect generally on the markets on the public markets, you look at a lot of micro-cap, small-cap companies that, you know, are dealing with larger institutional investors with some whichever way you wanna look at it. Highly lucrative for them or obnoxiously expensive for the issuer. The general public typically doesn't have access to that. To me, that feels like a little bit of an injustice. We're exploring to see if there is an opportunity for our supporters and for the company. Obviously we're growing. Obviously, we need the additional capital. To see if there's an interesting way for us to do something non-dilutive, which remember, again, I don't want any dilution either. Just be abundantly clear here. We'll see. We're still in exploratory phase. Well, obviously you have the route of accredited investors. You have those preferred shares sitting over in the sidelines. There's different things you can do, but, you know, unfortunately, crime's not going anywhere, so you're a public safety company. Your mission is to make America the safest country. It breaks my heart every time I see something happening at schools impacting families and children in our communities. You're right on mission. Long Knightscope, short the criminals, and may the force be with you. Thank you, Brian. I appreciate that. I appreciate that. Thank you. Kevin Hines. Hey, Bill. Can you hear me? Yep. Go for it. Hey. First off, yeah, thank you for your time. I'm gonna try to be short and to the point here so some of the other people can get their questions in. As far as Blue Towers versus K5s, it seems to me as if the sales on the Blue Light Towers have sort of been ramping up a little quicker than those of the K5s. I was just wondering if maybe you could touch on sort of that trend, and do you think that that trend may reverse on the side of K5s anytime soon or, if that makes any sense? Yeah. I understand the question, Kevin. I think, because, you know, CASE was a private company and no one heard when they got their sales, now all of a sudden, because we give it some due publicity, then it looks like it's a, you know, a big trend. I mean, I think the easier way to look at it, and this is roughly speaking, so don't quote me here. If you look at the backlog. It's, I don't wanna say it's 50/50, but it's pretty close to split. If it was like 90% backlog on blue light towers and the rest were autonomous security robots then it'd be different, but that's not the case. Long term, that's a great question. You know, how does this, you know, play out over time, in terms of either quantity, which is, you know, very different. That's the other thing to think about, Kevin. Quantity, a per unit revenue for an Autonomous Security Robot is, you know, materially different than, you know, a call box or an e-phone. We're in uncharted territory. No one in the history of mankind's done this before. For me to sit here, Kevin, and tell you, "Oh, yeah, we know exactly what's gonna happen," it's like there's no credibility there. I think we just need to keep pushing forward. I think the positive thing I can share is green lights on both sides. In a lot of cases, I'm looking for synergies across the portfolio, and we wanna be able to tell a client yes as much as we can, as opposed to, "No, we don't do that." I think things are looking up, and the numbers reflect it. Okay. Just a couple more quick things. I think you already mentioned maybe, and I just wanna make sure that there's no new update on the FedRAMP process yet or the federal government status? Yeah, I wish. Unfortunately, Kevin, I don't have anything to share. It's not the most... I gotta be polite here. I know the government's slow. It's not the most transparent process. How about that? Yeah. Yeah, the government moves slow, I know. It irritates me. I deal with them all the time too. My last little piece of my question was just, are we seeing any relief in terms of parts supply and manufacturing on, you know, producing additional units to get out in the field? Yes, no, and maybe. I mean, Kevin, I'm not trying to be funny, but every day is like a new drama. We thought we were good over here, then all of a sudden it's a problem. We have an intermittent problem. It's, oh, for two weeks we're gonna be stuck here. I'm hoping it starts leveling out. We did hire, I think I mentioned earlier, a full-time senior supply chain manager who can keep a closer eye on it and try to plan ahead better. Stuff that we never thought we'd have a supply chain issue ends up being a massive problem. It could be a wiring harness, it could be a connector, it could be a resistor. I mean it's all over the map. We're working through it. Obviously, you can see that we've been shipping, and reflecting it on the revenue side of things. I wouldn't wanna say that, yeah, it's all green lights going ahead. I think the best thing we can say is it's gonna be choppy. That's not necessarily healthy for us or the clients, to have a mad rush of stuff, come in. It doesn't help on the production, quality, deployment, client experience type of things, but we kinda just need to work through it. We don't necessarily expect any drastic improvement to that, like within the next, I don't know, 12, 24 months or anything like that? I mean, do we expect it to be an ongoing issue for a while? I hope it's not, Kevin. I can't forecast that. Okay. The problem, Kevin, it's that we get caught by surprise. It's not that it's something we internally did. It's. Sometimes it's a tier 3 supplier. You know, the guy who gave another part to another part and then ends up affecting us, and we don't have visibility and it's happening across, it's not just us, across a number of sectors. I don't know if the next 12 or 24 months are gonna be a lot better than what the hell we just went through. I can't promise that, Kevin. Okay. Well, I appreciate your time. I'll let you move on to the next one. Thanks, Bill. Yes, sir. Thank you, Kevin. Alan Stone. Yeah. Hey, Bill. How are you? It's been a couple of years since we last spoke. Yeah. You might recall we did a webinar with you 2 years ago. Yeah. Been some time. Yeah. Yeah, I've been following your progress, congratulations on your, on your growth. I've just got to say, you've probably been the best person ever, you know, in the U.S. under raising money under Regulation A. You know, I can't think of any company that's been more successful in raising money under crowdfunding or Regulation A than you. I always tell people when they're considering a Regulation A, look at Knightscope, how well they did. Wanted to say that. Congratulations on building the business. Thanks for the town hall. I think it's very transparent what you're doing, and it's good for your shareholders. People are, you know, asking a lot of questions about the stock price. I didn't hear you address, you know, the potential for a reverse split. Is that something you'd consider? I guess obviously you'd prefer not to have to do it, but, Alan, one important point that you may have missed, where we sit on the Nasdaq exchange. We actually have two requirements, a $50 million market cap requirement and a $1 share price. I see. A reverse split would not cure a market cap issue. Okay. Yeah. Right now your market cap seems to be about $25 million. Someone one day needs to explain to me, like if I go to five different sources of the market cap, you have five different numbers. Yeah, it's not the 50. Yeah. I guess you got to double the price to get there. If you're not speaking, can you kindly go on mute? Yeah. It looks like, you know, at least I'm just looking at the Yahoo Finance, but, Yahoo Finance saying you have a $25 million market cap, so the shares outstanding times the price of stock. Yeah. I think if you go on Robinhood or somewhere else, I think that gives you- Yeah. You've got How many shares are outstanding now? That trade about, don't quote me again, this you need to refer to the filings. As you know, $44 million off the top of my head on Class A common. There's, ±$10 million of Class B common that doesn't trade, another $10 million of preferred that does not trade. Right. Yeah. I think they just look at the. At the Class A common that trades. Correct. Right. Yeah, basically you got to double the price of the shares to get to that 50 number, and that would get you over the $1 also. Yeah, I mean, we have some ideas that could help you. Certainly, you know, we could help you with a research report and circulation to our subscribers. We have 200,000 subscribers to Wall Street Research, and we'd love to help you know, by doing a report and distributing it to our global investors. Always happy to take a look. If you want to connect offline, we're happy to do that. Okay. Yeah, let's follow up on that. Again, congratulations for building. Thank you. I appreciate it. Yeah. Cheers. Oliver. Yeah. yes. Can you hear me? Yes, go ahead. Yeah. I'm sorry I came quite late. I had some emergency. I might have missed quite a lot. I wanted to ask if granting the a lot of issues going on with crimes with schools, I don't know if the leadership has a particular plan to market now Knightscope to public schools and then, secondly, to private schools. Oliver, we do have clients that are public and private schools, if I'm correct, already. I think one cautionary note I usually have for the sales team, especially on the public side of things, is budgets are highly problematic. I think it's fair to say our country doesn't necessarily pay our teachers appropriately. Some are in dire need of supplies to show up there with a, you know, significant budget increase for something that they don't have right now, becomes a really difficult sales issue. I think medium-term, we'll probably need to work with Congress and the Department of Education to try to figure out a different path. On the private side of things, it's a little bit better. Obviously, if you didn't see our announcement this morning, Rutgers University, you know, signed a $1.25 million contract with us. We have several other existing clients that are, you know, I believe high schools and some other universities and college campuses. Yes, it's an opportunity, but need to be a little careful. Yeah. With private schools, I'm thinking that I went to a lot of Catholic schools. The Catholic, they have so many schools nationwide. The right approach for it would be to now look, the leadership of the Catholic education in the various dioceses. That way you are able to cover a whole area once you get the contract. That would be the strategy. Yeah. The other concern, Oliver, and I forgot to mention is, remember, the business model for us typically works better if we're running 24/7. We do at times do part-time shifts, but most schools don't run 12 months out of the year, and most schools certainly don't run 24/7. It's still an opportunity, but, you know, maybe less attractive in the short term versus, let say, a hospital or commercial real estate or a casino and the like. Just something else to keep in mind. Oh, yeah. Yeah. Yes, I understand that. That would be the same case with the malls as well, because they don't run 24/7. Yeah. Okay. Yeah. I heard you say that you're thinking that Knightscope would be profitable in one year. That one year, does it start May 2023 to May 2024? No, that's not what I said. I said, fourth quarter of last year, we announced that we targeted to be profitable in the next 24 months. That would mean, we are targeting to get to the fourth quarter of 2024. Fourth quarter of next year, is our target, to get to profitability by then. Okay. Thanks for that clarification. Of course. I'm doing my own part because I'm buying a lot more stocks right now, because since I bought them over a year ago when the company was in the woods, it just makes a lot more sense to buy a lot more stocks now to help the company at least go forward. I believe, I believe a lot in Knightscope having been in security right from the bottom all the way to quality control. I know what this is. I know that it's going to be profitable. Once it starts, it will just be unstoppable. The shareholders that do not have been security professionals, at least I heard some other security professionals, we know that this is an opportunity that is going to be tremendous. It's a matter of time. Yep. This year, these shares, will go back to maybe, $8 that where when the IPO came out, you know. I just wanted to make that statement. Thank you very much. Over. Thank you, Oliver. As I often say, you know, Wall Street can be wrong, typically in the short term. It's typically right over the long term. Kinda what we need to do is just keep growing the company, get the company profitability, keep growing, and hopefully the stock takes care of itself. You know, we can't control that. That's kinda up to all of you. Marco, you're up. Bill, how's it going? It's going. It's a big roller coaster over here. First, let me just say congratulations on the Rutgers contract. That was a big milestone for us. It's a big American university, and hopefully it's just the first of many. Definitely will help with credibility on the college and university side. My question is, since the pilot started in New York, have we gotten any feedback how that's going or if the city's shown any interest to expand on their initial contract? As the mayor told the world, we are targeting to deploy the machine in the June-July timeframe. We're working on getting that first machine shipped out and wanna make sure we do a tremendous job for the, for the mayor, for the city, and for our friends at NYPD. Stay tuned. Hopefully, we'll deliver the machine here in the second quarter and, you know, you might hear about it. No, definitely. Just, I don't know of any other cities as large as New York or close to have any sort of similar interest to a pilot program. Obviously, we've had other cities, other mayors, obviously had interest as clients. I don't know if we had any similar situations such as New York since the initial public release of the intent to start this pilot program with this first robot. The city of Huntington Park, if you go to Knightscope.com/crime, they had a successful pilot the first year, on a unanimous vote by the city council, decided to extend the contract for two more years. That would be a city that, you know, has had a positive experience. I guess that my comments remain similar to the security and law enforcement professionals. You know, local government also takes a bit of time. I'm hopeful that, you know, assuming we do well in New York City, that's gonna help set the tone or reset the tone. Gotcha. That makes sense. I think my last question is, obviously with people in law enforcement, you said they're not always the most technologically forward-thinking in terms of how they view security and law enforcement. Have you noticed anything with, like, messaging or after a certain amount of time where speaking to these type of individuals that eventually they come around? Is there, like, any key parts to messaging that the sales team and marketing can maybe adjust to maybe get more people or at least have a better likelihood of at least giving us a try? Nothing clarifies the mind than a sore point of a need. I'm not saying anything that's not been public, but, you know, the city of New York, you know, had 30,000-33,000 officers or so, and they're losing 3,000-4,000 a year. They're short-staffed, they have budget, and they have a problem. That really crystallized, I think the city to really start rethinking, reimagining public safety. I think the best thing you can do with a client is just have them realize that they have a problem on their own. I think one of the other reasons we've done well with casinos, for example, is if they can't hire the staff to do the security, like, that's a problem. I think the more time we spend fixing actual problems than trying to convince someone that might be skeptical, is the best time that we can utilize our resources. Got it. No, that makes sense. Yeah, again, I speak for the rest of the shareholders. I know they've said this several times already. We appreciate all your transparency and all the hard work you and your team are putting in. I know like myself, I actually initially invested while Knightscope was still private, it was prior to the IPO. Again, I share people's frustrations when you have that first initial investment to see where it's at. Again, this is a long term where you long Knightscope and short the criminals. This is not something that's gonna be overnight where it's gonna turn around. I think you and the team have a good overall plan, it seems like you're really executing in terms of revenue growth and getting the bigger contracts. I think this momentum continuing, like it will eventually financially turn itself around. Thank you again for all the work you're doing for us. We appreciate it. Marco, thank you for the remarks and the sentiment. You have no idea what that means for the team on this side. We get punched in the face for breakfast most of the days, and just trying to get this all to work. It's technologically very challenging. You know, we're somewhat resource constrained, but we continue to make progress. Without your support, you know, we literally couldn't be doing this. We really appreciate that, Marco. Thank you, sir. All right. Thank you. Fernando. Hi, Bill. How are you? No, thanks so much for this. Congrats on the showcase in New York. I got to see it in Times Square. A lot of interest by NYPD. I mean, it was teeming with officers. That was a surreal week. Yeah. To get a police escort into town was just... I was just speechless. Yeah. A lot of tourists from all over the place, Germany. I mean, when I was in there, you know, they were asking about the robots and the robots coming to almost, like, greet them. That was very cool. You know, my question is, and you talked about sourcing, and, you know, construction, et cetera, throughput. On the software, you know, and, you know, robotic stack and AI, you know, what access do you have to the top quality, right? I'm talking about, you know, the frontier technology of the likes of NVIDIA. Is the technology that you are selling perhaps not the premium, but then of course it's, you know, cost benefit to the customer? I just like to understand a little bit, you know, what are you selling? What is, you know, what is needed out there? Is it the top of the technology or is it a rung or 2 below that? What are you developing on the software side, like, with the likes of NVIDIA and others really that are at the frontier of that? I'd be very interested to hear. You know, when you talk about casinos and even the NYPD, I mean, you know, again, you know, frontier technology is very expensive, right? Much more. What is that balance? What's your vision on technology? I know that we've spoken before on AI, right, and how to leverage that. I think a few points and for the audience's benefit. There's all this rage about AI and, you know, when's Knightscope gonna use AI? I just like, "What are you talking about? How could we possibly operate across the country 24/7, hands-off, fully autonomous level five without the use of AI?" Is mind-blowing. Like, these machines literally are not remote controlled, so you need AI for that. These machines recharge themselves when they need more juice. That's AI. You can't detect a person in the middle of the night autonomously without AI. You know, one good example, Fernando, and the answers to your question is it's a mixed bag. I think the first thing is just an example of, you know, there's a lot of license plate recognition stuff out there, right? If you're at an airport coming in and the gate's closed and the car pulls in and there's all these lights that come on and shine onto the plate, and you get a perfect crisp picture, of that plate, and you can run the optical character recognition, like that's kinda easy. Now, go do that at 4 in the morning in Kentucky when it's raining and foggy and you got half a picture and you're covered, like, at a weird angle. Now read that plate. Like, you kinda need to build some different models to be able to do that. In some cases, Fernando, it's older technology that's working, and it's likely that if we can't ship it in 3, 6, 9, 12 months, we're probably not working on it. Our clients don't necessarily need or want the latest, cutting-edge absolute thing that may or may not work. They have specific requirements. That said, if you wanna say cutting edge in terms of autonomy, you know, if you didn't catch the Bloomberg article from a few months ago, you know, they total up. There's like, I don't know, $100 billion invested in self-driving autonomous stuff, 200 companies working on it. No one's shipped anything. Like, we've operated more than 2 million hours in the field, fully autonomous. I think you could argue we're at the cutting edge. It actually works. We have a different issue, Fernando, is the company's growing. There's always this technical challenge of you have technology out in the fleet, out in the field. You have a shiny new object over here. How do you either migrate or now you're gonna remove and replace? You know, doing high-end technology in the laboratory or prototype with no customer is really fun. In the real world, you've got to be able to service everything. That's where a little bit of the challenge comes in as to when you release a new product and the like. By the way, we do use NVIDIA GPU, so I don't want you thinking that we're not up to speed on that side of things. Frankly, there are new chips in the works that other people are working on that, you know, combine, I don't know, some level of vision and SLAM and AI that some of these other chips are either too power-hungry or too expensive. Like everything, it changes really fast, which makes it exciting and also very frustrating to work on. It's a mixed bag, Fernando. Oh, my God, Bertrand. How are you? I haven't seen you in- Pre-COVID, I think, Bill. It has been a while. Yeah. 5 years, maybe. It's been a while. How are you, sir? It's been a while, but I am following diligently what's going on, obviously. I'm probably one of your oldest... It's all gone smoothly, exactly according to plan. Everything went exactly according to plan. It's incredible. Yeah. Absolutely. Yeah. I might have been one of your first investor. Oh. your first check from- Bertrand invested. He's being modest. He invested at a very opportune, critical period in 2013, I think. 2013. Yeah. That was a few days ago. First of all, thanks for spending the time here. It's really great to hear the progress. I know it's a rocky road, but nothing's ever easy. You talked a little bit about obviously cost management to improve margins, which obviously, I'm sure is one of the reason why a lot of stocks are getting beat up, including Knightscope right now. I'm not too concerned by that personally. Could you comment a little bit about competition, you know, in terms of, you know, future offerings out there, maybe possibly price pressure? I mean, I tend to view competition as a good thing in a market that's growing 'cause it means that obviously you're not the only ones recognizing there's a need for this. Obviously, in terms of practical, you know, in terms of sales and closing sales, especially when it comes to pricing or price pressure, I think it'd be great to understand a little bit the overall landscape there. Okay. A few comments. I think first and foremost, and I mean this in earnest, our mission is to make the U.S. the safest country in the world. We would be profoundly arrogant and naive to think that we're gonna do that by ourselves. We absolutely applaud anyone and everyone working on public safety, security, law enforcement, because you need everything to be working in order for us to not be appalled by our news feed every morning. I think second, there's been multiple attempts by major corporations to build stuff to compete against us. I guess most notably it was Sharp Electronics dumped $35 million into an internal division that they staffed up. They have since shut that down some time ago and failed and were unable to basically ship anything at scale. Conveniently, I think Switch, which is a publicly traded data center, folks also attempted to do one and now have since disappeared for a couple of years. There's a number of folks in laboratories, in R&D and that sort of thing around the world. The only meaningful competition that I see on stuff that moves is a partial competitor, which would be Cobalt Robotics, who are indoors only. Yeah. Actually, I've seen them locally. This is the first one that came to mind, actually. Yeah. They're actually been kind to us to refer outdoor business to us 'cause they don't do that. We don't, a small minority of our business is indoors. We don't really see them in the marketplace too often competing head-to-head. There's a lot more activity, I would say, on the fixed stationary side of things. I think if you go to Knightscope.com/rise, R-I-S-E, the investor deck has a few comparables. One of them would be Flock Safety. It's primarily a very low-cost automatic license plate recognition camera that's stationary. There is a penny stock on the OTC, Robotic Assistance Devices, AI, AITX, that also, you know, maybe is doing $1 million a year in business or so, primarily on the stationary side, if I recall correctly. Price pressure in terms of our autonomous stuff, we don't really have a lot of competition out there. I think that also speaks to how difficult this is. This is not necessarily easy, but price pressure we have not seen yet. Will it happen? I'm sure it might, but Bertrand, we haven't really experienced that. Okay. Yeah. That's great to hear. Thank you, Bill. Great to see you. Hey, good to see you too. Thanks for stopping in. Manikyam Mutyala? Hey, Bill. How are you? I'm good. How are you, sir? Yeah. I understand, you know, you cannot control the stock price or supply and demand, but I would say you can, not directly, but indirectly, can help the stock price. What my sense is, you know. If you spend just $500 or $600, buy just 1,000 shares in the open market, that would go a long way. Not only you can ask your colleagues like directors and officers, you know, just invest about less than $1,000 and buy something that will put everywhere, all over the world. You see these big people insiders are buying. That would help a lot. That's my suggestion. Yeah. We, since I'm an officer of the company, the council wanted us to set up a proper buying program for officers. I'm only allowed to buy, you know, in certain windows and that sort of thing. It was gonna cost more money to set up the thing than help the company. I think the best thing I can do is just keep telling everyone, like, okay, my entire net worth is in here. I haven't sold a single share. Don't plan to sell a single share. I got $7 million of them. If you think the pain from $10 down to less than $1 is painful on your side, I'm literally right there next to you and doing everything I can to try to fix the problem. I do appreciate the sentiment. I'm not dismissing it, the actually physically doing it ended up being not so exciting. I know. I understand. When stock drops from $10 to $0.50, you know, when you own the $7 million, I can understand your pain. At the same time, when management buys outsiders, they think they believe in the company, they are not going under. That's going to help a long way, just you putting $1,000. Always you can find a window. Yeah, respectfully, for all the investors, including Bertrand, that was just on the call, I think everyone would pretty much understand that I'm not going anywhere. If I put 10 years into this to get it to this point, I think people realize that we're not going away. We will fight to the end to make sure that we're successful and do whatever it takes. I don't think a, you know, $1,000 is gonna hit it. I think it's legal for me to say this. You know, if I had won the lottery and had a few million dollars sitting in the account, you know, would I love to, you know, go buy some shares right now? Personally, I would love to. I'd have to go through all the normal regulatory stuff, but I'm all in, so I don't have the capability to do that right now. Okay. That's up to you. That would help a lot because I have my company. Whenever something happens, I'll go and buy. That's what we do. That encourages others to put their money. Anyway, that's up to you. I cannot force you. Okay. That's my advice. Mm-hmm. All right. If not now, think about it. It's a good strategy for any CEO or any founder- Understand. to support the company. Thank you. Thank you. Mm-hmm. All right. Kerry Dyne. Yeah, hey, quick question. Appreciate it. Oh, he's back. Yeah. Thank you. You mentioned, there may be a non-dilutive fund raise or a debt offering. I know you can't speak with absolute certainty, but do you, at this point, foresee that that might be the last, like, external fundraise necessary before the company is really kind of standing on its own revenue and, maintaining itself to profitability? Ooh, two things there, Kerry. One, I don't think legally I should comment on something like that, on future stuff. Could I ask, maybe- Second thing, Kerry, I think. Sorry to interrupt, but, I think just in terms of practicality, I think you as a shareholder, if we got to a point that, you know, all right, we're profitable or whatever, and then we got a huge opportunity to grow the company, and we needed some financing to do it, would you want me to have committed today to not do any more of ever financing? Like, go look at I don't know what to call it. Go look at Tesla's financings, right? From inception in 2003 till now, and they got to positive cash flow. Were they still doing financings? You're probably gonna find that they likely did, 'cause you still want to. And that's what you entrust the management team and the board to do. Okay. is to see how we could generate more return for the investors depending on the cost of capital, right? Okay. Thank you. That answered the question. Appreciate it. Okay. Abdoulaye? Hey, Bill. How are you? Good. Good. Yeah. Thank you so much for trying to keep us safe in America. With the current trend of crime rate increasing in America, every time that I hear something on the news that I can help it, but to think about Knightscope. Knightscope is the solution. I mean, every time, literally on either on the radio, on TV, it's just why not invest in Knightscope? That leads to my questions, like, with this crime rate in the U.S. just increasing by really high%, based on previous years, why we're not seeing more sales? It seems like with this trend that the solution is Knightscope. I'll just give you an example. The MGM in the DMV area in Maryland, where the side I am. Were they seeing lots of theft in the garage casino there? I mean, it's just like every week, why will the casino invest in Knightscope, right? Product, right? It just makes sense to me and a higher return on investment, compared to like really losing customers because of fear that something's gonna happen when they come there. That's really my question. Start thinking why we're not seeing premium sales. I think it's a mixed bag. You can't say that we have a $5 million backlog of new orders and then say we have no sales, right? Those two don't go together. You may not like the it's not going as fast, like you wanted to see $10 million or 15 or 20, but we are trending the right way. I think it's part of what I mentioned before, and I'm gonna put this graph up for you. I think a lot of people joined a little bit later. You know, you look at this curve, you know, If you just multiply our first quarter growth from 2023, which is a 300% improvement from last year, you can't literally say that we're not growing, because that curve starts looking a little steep. Could it grow faster? Yes. What are we short of? Staff. You know, how do you get more staff? Like more salespeople, more marketing people, more production people, more technicians, more QA people. You need capital. That's why you gotta think through the whole business of how do I grow this company? You need additional resources. Just because you get the sale doesn't mean it's gonna show up. Also we have a backlog. Could things go faster? Yeah. If we had a bigger team, things could go faster. If we had a larger marketing budget, probably could go faster. If my CFO, if she's on, will kill me. If we had more than one Robot Roadshow pod, probably things would go faster. But you can't, you know, you're looking at us growing 60% from last year. Right now we're looking like we're trending towards, you know, doubling the size of the company. You know, is it going as fast as we want? No. We also have the supply chain issues. Lastly, I think I mentioned earlier, if you weren't on the call, to one of the other investors, is you've got a sector that doesn't wanna change. You know, it's law enforcement, security, a lot of our friends and loved ones, that in that industry are not the most technologically advanced, savvy or welcoming, of folks. That's why to me, it was a huge, massive deal for the mayor of New York City, the largest city in the country, with the largest police department of 33,000 officers, to have the entire NYPD brass and the mayor go there in front of a Robot Roadshow and speak to the world at a press conference that they called because that, I hope, the mayor's right, and we're right that that's gonna help set the tone for others. You know, I, we're trying to go as fast as we can, but, you know, we can't, you know, create magic, either. All of it needs to work, right? You can't just have one thing work. You have great marketing, but you don't have enough staff or you don't have enough supply, you know, you haven't fixed the supply chain issues. It's frustrating. I'll more than concede the point that you know, if you don't know the numbers, a violent crime occurs every 26 seconds and a property crime literally every 4 seconds. It's a massive market if you wanna look at it that way or a massive problem. I think, you know, Knightscope has a huge potential long term. If you can go fix this problem with some of the most advanced technologies out there, how can this not be priceless for society? You know, no one's ever done this before, so it's not like, "Oh, well, they did it, so therefore we should just follow what they did." We're learning and part of this is me also spending the time today, we're on 2 hours now, getting feedback from the market and trying to understand where investors are thinking as well. Not sure that answers your question exactly, but at least gives you some perspective. Yes, it does. Thank you so much. At the end, see the graph that you just shared with us. I missed it. Thank you so much for your leadership, your availability. I know that you probably don't remember me. You took some time to meet with me, so I really appreciate it. Your flexibility and, know that we are all here to support you in this growth. We know that this is a solution, there is no doubt about it. We, we're here to support you and, we can't wait to see Knightscope all over the US. Thank you. Man, you just gave me some fuel. Thank you. All right. Hani? Hani, if you need to come off mute. Yeah. Hi, Bill. Thanks for the update. I missed a big chunk of it in the beginning. You know, thanks for everything you guys are doing. Just for the audience. Sorry to interrupt. The quick, 7-minute video is on our YouTube channel. We'll get it out later tonight or tomorrow. If you need to see it should be published by now. Sorry. Go ahead. That sounds very good. My main question is, do you currently or will you be seeking sort of non-dilutive funding in the interim period here, at least until the markets in general recover? What I mean is things like, you know, I guess DARPA, DOD or Department of Interior funding, that sort of thing. Other than working on, in case you didn't see this part. Other than working on the FedRAMP process, which has been very costly and taking a lot of time, we're likely not spending more time on those. Part of the issue, Hani, is that it's a little weird. In a lot of cases, not all the federal authorities, but I would say 95%, someone wrote down a specification of what they want, and they're asking someone to bid on it, right? No one's sitting over in the Fed side going, "I need an autonomous security robot that does XYZ," type of thing, other than our sponsor, the U.S. Department of Veterans Affairs. We've kind of over-invested in the short term on the federal side of things and likely not going after, you know, grants and that sort of thing. I think the better idea would be after we get the Authority to Operate with the U.S. federal government, then going to go seek those kind of grants. There's a ton of opportunities. Don't get me wrong. I think after getting that cyber review check off, that would be the most opportune time. In case you missed it, also included in the video that's on just the thing, where we're getting additional cash, you can see there, you know, there's 7 kind of avenues as to where we can improve our cash position that we covered earlier in the session. You can, check out that on the video when you have a moment. Thanks, Bill. Thanks. Of course. I appreciate everything you guys are doing. Thanks. Adam. Good afternoon. How are you? I'm good. I'm good. Watch your back. I'm standing, and I'm, I got my Knightscope mug, so all is fine. Good. I have a question. This is sort of a follow-up from the discussion we had last month, that has to do with the CASE acquisition, your two stationary emergency posts, the phone systems and emergency communication. Yep. Again, it sounds like you really hit success with the sale of those to Rutgers. Am I correct? One of the reasons we're excited to buy CASE last year was they had some market traction that was material in nature. They're profitable. They have a complementary portfolio of products, and they have a massive footprint that I desperately want to do a massive nationwide upgrade. The teams continue to deliver and putting up the numbers that we were hoping, hopefully they continue to do so. I know a lot folks are like, "Well, it's not a robot." I'm like, "We're not a robotics company." I told you for 10 years that we're here to make the U.S. the safest country in the world. If you told me we could do it with rubber bands and paperclips, we're gonna go invest in rubber bands and paperclips, right? We really need to have a large portfolio of products, 'cause, you know, terrorists and criminals can be anywhere. We have to be everywhere. Right. I understand, Bill. The question I have is in terms of that particular product group of your backlog, what proportion of your backlog are those products versus the robotics? Adam, because it changes daily, and I'm not trying to be wishy-washy about it, crudely speaking, it's half and half. Okay. It can change dramatically 'cause, you know, we sign a huge contract that could switch either way. Roughly speaking, it's about half and half. Okay. Being here in Hollywood, I've seen your K5 at the Kaiser Permanente hospital and also at- The 5 Series. I'm gonna call my friends in Munich at BMW, and they're gonna have a field day when I tell them what you said. Yeah, better than the 3 Series. You meant the K5. Yeah. I've seen the robotics at your security system at Kaiser here at the hospital, as well as the stationary and the moving product at LAX in the parking deck. Those look really nice and, you know, it's a very nice system. Took some doing to get them there. You know, there's a few more hospitals in the U.S., and there's a few more airports, right? Am I correct that when you sell versus lease, when you sell the stationary CASE systems that you're selling them and you're not leasing them, or are those both sale and lease? I hate the, I hate the term lease because it implies you have a financial interest in the particular asset, and our subscription model isn't exactly that, right? If you get a BMW 5 Series, you're leasing that VIN number. In our case, that's certainly not the case. I understand your point. As delineated in our regulatory filings, most of the stuff that we inherited from the CASE acquisition, I shouldn't say most. All of the stuff is sold outright, and the intellectual property, the asset is owned by the client. However, in a lot of cases, in a good number of cases, they come with a service support or, and/or maintenance agreement. It's a little bit of a combo. On the Autonomous Security Robot side, it's all Machine-as-a-Service, and we're not selling any of the assets outright. Thank you. Of course. Tom Schwartz. Hello, Bill. Howdy. Thank you. Thank you for your time today and for being on and sharing all this information with us. It's helpful to me as an investor to know where we're at. I'm an early investor. I think my first was in 2020, pre-ATO. Your CASE acquisition was a brilliant idea. I think that was great addition, and certainly seems like so reasonable and such like a perfect idea for what you're trying to accomplish. I was glad to hear that. I wanted to let you know you're working on a federal acquisition to get on the acquisition list for VA. We're working through. Yes, we're trying to get through a cybersecurity review with the federal authorities and the sponsor/client is the U.S. Department of Veterans Affairs. Got it. Well, they're building a new hospital here in Louisville, Kentucky. Yeah. The chief security officer there, he's got 143 police departments, I think he told me, that he has to manage, and it's just he can't keep throwing bodies at it, and he needs help, which is why him and his staff has spent north of 2 years working with us to try to get us through the system. Well, I hope you're successful soon enough to put it in here because it would be a really smart thing to do while they're building. Yeah, you and me, you and me both. I thought it would take a long time, but yeah, just a bit of a nightmare. I think the only kinda saving grace is, as a lot of folks that I know on the defense side of things is, you know, getting into the Department of Defense is a complete nightmare. Once you're in, you know, it's hard to get kicked out. I guess it's not a great way to say it, but, you know, it's a much stickier client, which is why we were willing to, you know, take the calculated long-term risk. You know, if I were to go work on this for 10 years and go take the company public, sell my shares, and go sit on a beach, like, I would never have signed off on that because I knew it was gonna take forever and put our team through a lot of pain and suffering. Because that's not the case, and I hope everyone understands that, you know, we're serious about what we're trying to do here, we should be willing to take, you know, calculated, sometimes controversial risks that put, you know, a bit of investment in something that we think could be really big for us. I'm hoping, Tom, that when and if we get that ATO or Authority to Operate, it's gonna spill over to the private sector. Like, I don't know how many times, you know, our team ends up with these massive cybersecurity questionnaires and what have you. If we can just go, "Hey, the feds just put us through hell for 2.5 years or 3 years or whatever the number ends up being. What is it that you're gonna ask me that's really gonna be not covered?" I'm hoping that's gonna expedite some of the sales, especially in the healthcare and financial institution and I'll say larger city government side. Well, yeah, it would just do nothing but add to your credibility, which New York does too. Yep. Yep. I understand the whole stock price thing and, you know, stocks get valued inaccurately all the time. It's something that happens. I understand the profitability path to profitability that you outlined. How about your cash till you get there? When would you project having at least getting close to a positive cash flow in that period? Even just where you're not burning? I think it's appropriate to say, if you read carefully the 10-Q that we filed on Friday for our first quarter results, our CFO went out and kind of did some, I would say, loose projections. You know, we were prior, we're burning a lot more money, and we're probably, you know, on the order of or less than $1 million a month, which is what was reflected in the 10-Q. We've got, as I mentioned, and I'll put it back up for folks, you know, there's 7 avenues for us to be able to address those. I'm not sure we've gotten that sophisticated to delineate between, you know, cash flow positive and profitability, but plus or minus, you know, fourth quarter of 2024 is we're hopeful to get to that point, if not much sooner. It's, you know, it's very, you know, product mix. It's our costs, both on the variable side and the fixed side. I mean, we just need to continue to grow the company, and we need to get some of these costs down. That'll get us home. You know, fortunately, we've had enough growth to hopefully show everyone on this call and the street that, you know, the company is growing, double-digit growth. It's a pure AI play. Like, this is not, you know, someone's R&D project somewhere. We're literally operated over 2 million hours in the field with paying clients. If you wanna play on autonomy, on robotics, on AI and electric vehicles, like, Knightscope is literally at the intersection and working on a huge problem. I think we need a little support and help from our, you know, investors and supporters. We need the team to continue to work, you know, extremely hard. We continue to need to execute and hopefully the, you know, stock price will take care of itself in the future. Well, thank you for answering the question. Of course, of course. I've been attempting to monitor the chat on the side. I'm sorry, folks, there's some inappropriate stuff in here. There's a lot of spam and, if you're still on and I don't answer your question on here, if I could just kindly ask you to raise your hand and ask me directly, 'cause trying to go through this chat is gonna be an impossibility. Tom, if you had another question, feel free. Unfortunately, we've got some people here that probably shouldn't have been on the call. Anybody ask a question that's, wasn't answered today and you'd like a moment, please raise your hand. If not, we're at two hours and 15 minutes, and I'm still standing. All right, going once, going twice. I think Tom has his hand raised, Bill. I can take it down. He'll take it down? Okay. Anyone else? Okay. If not, thank you everyone for taking the time. If you didn't wanna ask the question and you still need an answer, you can write to me directly at invest@knightscope.com. I literally am the person that answers the questions. Again, invest@knightscope.com. If you need any of the latest, go to knightscope.com/rise, R-I-S-E, and you've got the latest videos, updated deck, and the like. All righty. Well, thanks everyone for taking the time out of your busy schedules. As I often say, and will continue to say, long Knightscope and short the criminals. We'll see you on the other side. Thanks, everybody. Take care, and thank you. Bye-bye. Cheers.