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Item 1. Business

2026-03-27 compared with 2025-03-31 · 131 added, 177 removed, 25 unchanged (92% of the section changed)

Our mission is to make the United States of America the safest country in the world by helping to protect the people, places, and assets where we live, work, study and visit.

Through strategic market expansion, increased ASR adoption, and continued innovation, we aim to redefine public safety with a comprehensive, technology-driven approach.

As we execute on our growth strategy, we remain committed to delivering scalable, effective solutions that enhance safety, deter crime, and provide peace of mind to organizations and communities nationwide.

Knightscope, Inc.

is a Silicon Valley based, public safety innovator that builds Autonomous Security Robots and Emergency Communication Devices.

We design, manufacture, and deploy our technologies to improve public safety and to protect the places people live, work, study and visit.

We provide our cutting-edge capabilities, including remote monitoring capabilities, to both the private sector and to government clients including law enforcement.

With Federal Risk and Authorization Management Program (“FedRAMP”) Authority to Operate (“ATO”) obtained in January 2024, Knightscope can be listed on the FedRAMP Marketplace as an approved provider for federal agencies and is therefore positioned to expand into federal contracts.

We have already deployed a pilot program under a contract with the U.S.

Department of Veteran Affairs for our first K5 GOV, which is an ASR exclusively developed for the U.S.

federal government.

Additionally, we have been awarded a Phase 1 contract from the U.S.

Air Force in 2025.

We believe FedRAMP ATO positions us to seek federal contracts with other federal departments including the U.S.

Army, Transportation Security Administration (TSA), Federal Protective Service (FPS), General Services Administration (GSA), U.S.

Department of Homeland Security (DHS), Customs and Border Protection (CBP), Federal Bureau of Investigation (FBI), Federal Emergency Management Agency (FEMA), United States Postal Service (USPS) and the U.S.

Department of the Interior (DOI).

We believe that the initiatives of the Department of Government Efficiency (DOGE) may provide us with an expansion opportunity as federal entities seek efficiencies through automation and robotics.

Our core technologies are a unique combination of autonomy, robotics, artificial intelligence and electric vehicle technology:

AI-powered autonomous security robots that are designed to provide continuous monitoring, real-time incident detection, and proactive threat deterrence through a strong physical presence.

Blue light emergency communication systems, including towers, e-phones, and call boxes, designed to provide instant connectivity to emergency services.

● Knightscope Security Operations Center (KSOC) :

A cloud-based platform for real-time security monitoring, data analysis, and event manage ment driven by autonomous security robots.

● Knightscope Emergency Management System (KEMS) :

A diagnostics tool designed to keep emergency communication devices operational and reliable.

● Knightscope Network Operations Center (KNOC) :

The Company has built a custom set of tools that enables our employees to manage and monitor the network of ASRs and other Knightscope technologies operating in the field nationwide.

● Knightscope's Risk & Threat Exposure (RTX) :

RTX analysts provide proactive monitoring by verifying alerts triggered by Knightscope devices.

Knightscope operates in a highly fragmented U.S.

public safety market that is experiencing strong demand for automation and artificial intelligence-driven solutions due to rising labor costs, security staffing shortages, and challenging crime rates.

Our solutions combine proactive physical deterrence with critical emergency response tools and remote monitoring, offering an integrated approach to public safety.

We are a Delaware corporation founded in April 2013 and headquartered in Mountain View, California, in the heart of Silicon Valley.

Market Opportunity & Competitive Positioning

The public safety industry in the United States is undergoing rapid transformation, driven by labor constraints, evolving threats of perimeter intrusion to large facilities, and advancements in artificial intelligence (AI) and automation.

The demand for scalable, technology-driven public safety solutions is increasing as organizations seek more cost-effective and proactive methods to enhance safety.

Key Market Trends Driving Demand

● In the United States, as of 2024, there are over 11,000 private security firms [per IBISWorld Industrial Reports] and 18,000 law enforcement agencies [per the International Association of Chief of Police] that rely on outdated, labor-intensive security methods.

● Per Amarok Ultimate Perimeter Security, out of a recent survey of 400 security guard firms in the United States, 34% responded that their staff numbers were still well below pre-pandemic levels.

● Rising costs to implement public safety have driven businesses and municipalities to invest in technology-driven solutions that offer 24/7 surveillance at a lower operational cost.

● Over the last three years, there has been a growing investment in public safety and emergency communication systems by corporate, municipal, and federal agencies.

Key Challenges with Traditional Public Safety Solutions

● Rising labor costs - The U.S.

security guard industry has faced wage inflation, making it increasingly expensive to maintain 24/7 human patrols.

● Workforce shortages – Per Security Magazine, security firms struggle to recruit and retain personnel, with turnover rates that range from 100% to 400% annually.

● Limited real-time response capabilities - Human guards and passive surveillance cameras often fail to prevent incidents before they occur.

● Increased liability risks - Organizations are facing greater legal and financial exposure due to security lapses.

Market Opportunity

● Per Horizon Grand View Research, the U.S.

physical security market is projected to reach $56.8 billion by 2030, driven by technological advancements and heightened public safety concerns.

● Per Market Research Future, AI-powered surveillance and autonomous security solutions are expected to grow at a compound annual growth rate of 15.3% during the forecast period 2025- 2034, outpacing traditional security services.

● Government investment in security technology has expanded significantly, with U.S.

federal agencies allocating billions to enhance public safety initiatives in 2024.

Our Market Positioning

Knightscope is well-positioned to capitalize on these trends by providing a cost-effective, scalable alternative to traditional public safety solutions.

Our combination of autonomous security robots, ECDs, and AI-driven analytics offers:

● 24/7 security solution that delivers greater effectiveness at lower cost than traditional security guards—combining machine-driven insights with human-in-the-loop operations to enhance safety, responsiveness, and decision.

● Real-time threat detection and response to improve incident prevention.

● Compliance-ready solutions for federal, state, and municipal security requirements.

● With growing adoption across corporate, educational, healthcare, transportation, and government sectors, Knightscope is driving the next generation of public safety innovation in the United States.

Our Competitive Advantage

Knightscope’s technology provides a cost-effective, scalable alternative to traditional security solutions.

Our ASRs and ECDs enhance public safety through conspicuous presence, automated routine monitoring, and improved response times.

● ASRs can operate 24/7 with no downtime, reducing reliance on expensive security personnel.

● AI-powered analytics provide real-time data for faster, more informed decision-making.

● Emergency communication solutions are integrated into a cloud-based system, ensuring reliability in crisis situations.

Our Technologies

Knightscope offers a comprehensive suite of public safety technologies designed to enhance safety and support security personnel in various environments.

These solutions integrate advanced robotics, AI, and real-time monitoring to provide a proactive approach to public safety.

We use AI to continuously monitor security feeds across our product portfolio.

Real-team AI-powered alerts can be configured to trigger when people or vehicles matching a certain description are observed.

Knightscope also offers AI-powered search tools, intended to make finding relevant security footage captured by our products, quick and easy.

● The K3 Indoor Autonomous Security Robot is a compact, self-navigating unit designed for enclosed spaces such as corporate offices, hospitals, and shopping centers.

Equipped with 360-degree high-definition cameras, thermal imaging, LiDAR-based obstacle detection, and two-way communication capabilities, the K3 provides continuous AI-driven monitoring and real-time threat detection.

Its ability to patrol autonomously allows organizations to reduce reliance on human guards while increasing surveillance coverage.

● The K5 Outdoor Autonomous Security Robot is a larger, more robust unit built for external environments like parking lots, logistics facilities, and corporate campuses.

This model features advanced AI-powered analytics, including license plate recognition, thermal imaging, and anomaly detection, providing a visible deterrent against crime.

Its integration with the KSOC enables public safety teams to receive real-time alerts, access recorded footage, and coordinate incident responses more effectively.

● The K1 Hemisphere , with its smaller profile, is a stationary unit designed for both indoor and outdoor use.

The Hemisphere can easily be mounted to a variety of surfaces or objects and has 3 cameras that provide up to 210-degrees of eye-level, high-definition video, a strobe light, automatic license plate recognition, facial recognition (optional), automated broadcast announcements, and intercom capability running on a wired or wireless network.

● Central to Knightscope's ASR offerings is the KSOC , a browser-based user interface that enables clients to monitor and manage their ASRs in real-time.

The KSOC provides access to live 360-degree high-definition video streaming, recorded video storage, and downloadable files for evidence collection.

It also features capabilities such as people detection, thermal anomaly detection for identifying heat irregularities, and automatic license plate recognition for vehicle monitoring.

This integrated platform ensures that security teams have immediate access to actionable intelligence, enhancing situational awareness and response times.

● The Company has built a custom set of tools that enables our employees to manage and monitor the network of ASRs and other Knightscope technologies operating in the field nationwide, which it refers to as KNOC .

These tools allow our team to monitor the health of the ASRs down to the millisecond, with dozens of alerts related to critical indicators and statistics, including charging, software, navigation and temperatures.

We also use the KNOC to execute over-the-air software upgrades, patches and other related items.

The KNOC is staffed 24/7 by the Company in the United States.

● Knightscope's RTX team offers clients a comprehensive, human-in-the-loop monitoring service that enhances the capabilities of their ASRs running 24/7.

Our mission is to make the United States of America the safest country in the world.

We serve clients across commercial, government, healthcare, education, transportation, and residential markets.

We are a security technology company headquartered in Sunnyvale, California.

We provide integrated, technology-enabled security solutions designed to improve safety outcomes for our clients across the United States.

Our strategy is centered on building and delivering outcomes-driven safety through the integration of three core components that encompass our Knightscope Autonomous Security Force:

Hardware – ASRs, ECDs, and a variety of sensing technologies;

Software – cloud-based platform for real-time security monitoring, data analysis and event management, diagnostics tools designed to keep ECDs operational and reliable, and tools that enable the management and monitoring of ASRs in the field;

Human– on premise licensed security personnel and remote monitoring with human-in-the-loop verification, escalation, and response.

We deliver these components as an integrated managed service.

By combining hardware, software, and human personnel into a unified operational framework, we seek to provide clients with end-to-end accountability rather than fragmented security tools.

Our capabilities currently focus on deterrence, detection, and reporting.

We are in the process of evolving our service model to “Deter, Detect, Respond” including response capabilities, where appropriate and legally permissible.

Response capabilities, when provided, are intended to be conducted by properly licensed personnel and subject to applicable federal, state, and local laws.

We believe that integrating humans as a delivery and operational mechanism for our autonomous systems enables our product suites to operate in a more multi-modal manner, consistent with how many clients structure security procurement with a multi-layer approach.

Security buyers frequently expect the presence of licensed personnel as part of a comprehensive security program, and our model is designed to align with those expectations while incorporating automation and AI-driven technologies.

Recent Developments

On February 27, 2026, we completed the acquisition (the “Event Risk Acquisition”) of all the issued and outstanding membership interest of Event Risk LLC, an Indiana limited liability company (“Event Risk”) pursuant to a Securities Purchase Agreement (the “Event Risk Agreement”).

As a result of the transaction, Event Risk became a wholly owned subsidiary of the Company.

The aggregate purchase consideration consisted of (i) a $5.0 million cash payment at closing, (ii) repayment of Event Risk’s outstanding indebtedness of $1.1 million, (iii) the issuance of 1,724,418 shares of the Company’s Class A Common Stock, (iv) $4.0 million of deferred cash payments, payable in quarterly installments beginning March 31, 2027 through December 31, 2028 and (v) any post-closing purchase price adjustments.

See Note 11 to our financial statements, which are included in Item 8 “Financial Statements and Supplementary Data” of this Annual Report for additional information on the Event Risk Acquisition and “Item 1A.

Risk Factors—Risks Related to the Event Risk Acquisition” of this Annual Report for a discussion of the associated risks.

The foregoing description does not purport to be complete and is qualified in its entirety by reference to the Event Risk Agreement filed as an exhibit to this Annual Report on Form 10-K.

Industry Background

security services and public safety market is large and fragmented, consisting of traditional guarding companies, hardware manufacturers, monitoring providers, and software vendors.

Security coverage has historically been labor-intensive and scales proportionally with headcount.

The security services industry continues to face significant structural challenges that impact operating performance and service delivery.

Rising labor costs and ongoing wage inflation have increased the cost of personnel, while persistent workforce shortages and high turnover rates create staffing instability and elevate recruiting and training expenses.

At the same time, customers are demanding enhanced real-time monitoring, detailed reporting, and comprehensive documentation, increasing operational complexity.

Regulatory requirements and liability considerations continue to expand, requiring greater compliance oversight and risk management.

Additionally, the proliferation of cameras, devices, and other sensors has led to rapidly growing volumes of data that often require human interpretation, creating inefficiencies and increasing the burden on personnel.

Collectively, these factors are reshaping industry economics and driving demand for more efficient, technology-enabled solutions.

Security buyers increasingly seek integrated solutions capable of combining physical presence, automated detection, real-time monitoring, and structured escalation protocols under a single accountable provider.

Knightscope Autonomous Security Force

We are developing a multi-modal security platform consisting of hardware, software, and human operations that function together as a single unified system.

Our current hardware offerings include:

● K1 Hemisphere (K1H) – Fixed-location presence equipped with license plate recognition, where permitted, ideal for high-traffic areas of vehicles or pedestrians

● K5 ASR – A high-visibility deterrent with rugged weatherproof capabilities, ideal for patrolling outdoor environments

● K1 Blue Light Towers (BLT) – traditional blue light emergency towers typically found on school campuses and healthcare facilities

● K1 Blue Light Emergency Phone (BLEP) – typically found in parking structures and transportation hubs

● K1 Call Box – used along highways for emergency roadside assistance

We are developing next-generation hardware platforms, including:

● K7 ASR – Designed for larger and more complex environments

● K1 Capsule (K1C) – next generation blue light technology

● K1 Super Tower (K1ST) – next generation blue light technology in tower format including area lighting

Our hardware platforms are designed to support deterrence through visible presence, detection through integrated sensors and analytics, and reporting through data capture and event documentation.

We currently deploy the following software throughout our platform:

● Knightscope Security Operations Center (“KSOC”) – browser-based user interface utilized to gain real time and historical data from the network of ASRs

● Knightscope Emergency Management System (“KEMS”) – A diagnostics tool designed to monitor the health and status of deployed ECDs.

Human Operations

Our Risk and Threat Exposure (“RTX”) analysts provide our clients with a comprehensive, human-in-the-loop remote monitoring service that enhances the capabilities of their ASRs running 24/7.

Once operational for a client, RTX analysts provide proactive monitoring by verifying alerts triggered by Knightscope devices.

They engage in live streaming and review of all ASR camera feeds upon receiving alerts, which may include detecting suspicious individuals, unauthorized vehicles identified through license plate recognition, or other predefined security breaches.

In the event of an incident, RTX analysts can perform digital talk-downs to intervene directly, conduct virtual public safety tours, and generate detailed incident reports for clients.

This integrated approach is intended for clients to benefit from advanced technological surveillance complemented by human expertise, leading to a more robust and responsive security posture.

In the event of an incident, RTX analysts can perform digital talk-downs to intervene directly, conduct virtual security tours, and generate detailed incident reports for clients.

This integrated approach is intended for clients to benefit from advanced technological monitoring complemented by human expertise, leading to a more robust and responsive security posture.

By combining autonomous monitoring with professional oversight, Knightscope's RTX service enhances threat detection, reduces response times, and provides clients with actionable intelligence to maintain safer environments.

In addition to ASRs, Knightscope provides a range of emergency communication solutions.

● The K1 Blue Light Towers are solar-powered, highly visible emergency communication stations that provide immediate access to emergency response personnel or law enforcement.

Equipped with cellular and satellite connectivity, integrated cameras, and public announcement system capabilities, these towers are designed to enhance safety in parking lots, public parks, and college campuses.

● The K1 Blue Light E-Phone is a compact emergency phone system that delivers one-touch connectivity and features a high-visibility blue strobe light, making it suitable for areas where larger tower designs may not fit.

Its durable, tamperproof, and weatherproof construction is intended to provide reliable operation in harsh conditions, while the illuminated front call panel facilitates nighttime use.

The K1 Blue Light E-Phone supports two-way communications over various networks, including Verizon, AT&T, and Iridium® Satellite, providing flexibility and reliability in diverse settings.

This device is designed for locations such as parking lots, building interiors, college campuses, electric vehicle charging stations, transit stations, and office spaces, where space constraints require a streamlined yet effective emergency communication solution.

● The K1 Call Box is Knightscope's smallest emergency call box system, offering a simple housing and interface for one-touch connection to emergency services.

Designed for both indoor and outdoor use, with features and functionalities similar to our E-phones, the K1 Call Box is suitable for remote locations where traditional communication infrastructure may be lacking.

This device is particularly beneficial in areas such as bridges, highways, parks, metro stations, military installations, and remote parking lots, where immediate access to emergency assistance is crucial.

● Complementing the ECD products is the KEMS , a cloud-based application that monitors the health and status of deployed emergency communication devices.

KEMS provides system owners with automated daily email reports, real-time error detection, and diagnostics, eliminating the need for manual testing of each device.

Immediate text and email notifications are sent whenever a help button is pressed, in order to provide prompt responses to emergencies.

This system enhances the reliability and effectiveness of emergency communication networks, providing peace of mind to clients and users alike.

Additionally, through a partnership with Verizon, all ASR and ECD are now able to be equipped with Verizon Frontline, an exclusive network used for priority communications by first responders.

Through this growing product portfolio, Knightscope continues to redefine security and public safety by merging robotics, AI, and emergency communication into an integrated, technology-driven ecosystem.

By offering both proactive security monitoring through ASRs and reactive emergency communication through ECDs, the Company provides a holistic approach to modern public safety challenges.

Market Opportunity

Based on third-party industry reports and internal analysis, management estimates that the combined U.S.

addressable opportunity for private security services, public safety and security technology, emergency communication systems, and related autonomous solutions is significant.

They include the deployment of such services and technology in the following industries and settings:

● Public safety and government

● Enterprise and corporate campuses

● Critical infrastructure

● Retail and hospitality

● Transit and smart cities

● Residential and community

For context, we estimate the U.S.

security services industry, which term for Knightscope encompasses a number of direct and related industry categories, such as public safety infrastructure, transportation safety, education security, digital security, and critical infrastructure, among others, to have a total addressable market worth upwards of $230 billion in 2026.

Additional spending on public safety technology, emergency communication infrastructure, AI-powered analytics, and associated services contribute to the size of the broader opportunity.

These estimates are derived from industry research and internal assumptions and may not reflect actual revenue potential and are not indicative of our future performance or market penetration.

Business Strategy

Knightscope is focused on driving growth through two key strategic initiatives:

expanding our market penetration in Emergency Communication Devices and increasing the installed base of our Autonomous Security Robots.

Additionally, we continue to innovate with new product introductions that enhance our value proposition and provide comprehensive safety solutions to our clients.

Scaling ASR Deployment and Recurring Revenue Growth

Knightscope’s ASR business model is centered on increasing our installed base, leveraging our Machine-as-a-Service (MaaS) subscription framework to drive cumulative recurring revenue.

Each new subscription enhances long-term revenue streams while providing clients with advanced public safety solutions that are designed to operate 24/7.

Our ASRs, including the K3 indoor robot, K5 outdoor robot, and upcoming K7 ASR, serve as force multipliers, augmenting human security teams and providing real-time monitoring through the KSOC.

We believe the ability to scale ASR installations across diverse environments—including corporate campuses, logistics hubs, hospitals, and public infrastructure—positions us for sustained growth.

Expanding Market Presence in Emergency Communication

We are committed to strengthening our leadership in ECDs by increasing market penetration across colleges, corporate campuses, parking facilities, public parks, and other high-traffic environments where reliable emergency response solutions are essential.

Our K1 Blue Light Towers, K1 Blue Light Emergency Phones, and K1 Call Boxes provide mission-critical, always-available communication for individuals in distress, providing immediate connectivity to security personnel and emergency responders.

With nearly 10,000 machines-in-network across the United States, we aim to build upon this foundation by integrating new features and expanding adoption in both public and private sectors.

Innovating with New Public Safety Technologies

Product innovation remains a core pillar of our growth strategy.

We are actively developing new solutions that enhance public safety, security, efficiency, and situational awareness for our clients.

Two key anticipated product launches include:

● K7 Autonomous Security Robot is designed to address the public safety needs of large, complex environments such as airports, industrial zones, and university campuses.

With light duty off-road capabilities and AI-driven route optimization, the K7 ASR is designed to allow for broad security coverage in areas where traditional ASRs or stationary cameras are insufficient.

This ASR is intended to significantly enhance automated perimeter patrolling, improving surveillance efficiency for expansive properties and is planned to commence production in 2026.

● K1 SuperTower is a next-generation public safety technology integrating several capabilities into a comprehensive offering.

It will introduce an all-new next-generation set of technologies to continue the overhaul of the U.S.

public safety infrastructure with AI capabilities.

This innovative solution is designed to provide multiple features to enhance public safety within a single unit, making it a valuable addition to high-risk or remote areas.

The K1 SuperTower is planned to commence production in 2026.

By continuously working to evolve our technology portfolio and integrate advanced AI-driven analytics, we aim to provide cutting-edge public safety and security solutions that meet the evolving needs of businesses, municipalities, and law enforcement agencies.

Our strategy is focused on scaling an integrated Knightscope Autonomous Security Force through:

● Expansion of licensed guarding capabilities, including organic growth and potential acquisitions;

● Deployment of autonomous systems within guarding contracts;

● Expansion of software-driven orchestration;

● Integrating enforcement services to our deterrence, detection, and reporting capabilities.

Security procurement processes frequently require licensed guarding providers capable of assuming contractual accountability.

By operating licensed guarding services, we are able to compete for comprehensive contracts and deploy automation within those engagements.

We believe that integrating humans and autonomous systems enables a multi-modal operating model that more closely aligns with client expectations for security delivery.

Over time, increased software integration may alter site-level economics.

However, such outcomes depend on operational execution, customer adoption, labor conditions, regulatory compliance, and technological performance.

Research and Development

Our research and development efforts focus primarily on the development of our base technology, exploring new technology, as well as our scaling efforts.

We plan to continue to enhance our ASR and ECD capabilities and features, as well as the functionality of the KSOC and KEMS software platforms.

In February 2025, we received our full ATO which allows Knightscope to do business with federal agencies.

This achievement means that Knightscope can be listed on the FedRAMP Marketplace as an approved provider for federal agencies, and as a result we have already deployed a pilot program under a contract with the U.S.

Department of Veteran Affairs (the “VA”) for its first K5 GOV.

The K5 GOV is an ASR exclusively developed for the U.S.

Federal Government.

Additionally, the Company has been awarded a Phase 1 contract from the U.S.

Air Force in 2025.

Our research and development activities are focused on advancing next-generation hardware platforms and core software capabilities that support our integrated Knightscope Autonomous Security Force platform.

These efforts are directed primarily toward the development of the following:

● K7 ASR – Designed to address the security needs of large, complex environments such as airports, industrial zones, and university campuses.

● K1 Capsule and Super Tower – Defining the next generation of blue light technologies and capabilities into a comprehensive offering designed to provide multiple features to enhance security within a single unit, making it a valuable addition to high-risk or remote areas.

These efforts are intended to expand deployment flexibility and improve operational reliability across commercial, institutional, and government environments.

Product development and release timing is subject to, among other things, engineering, regulatory, capital and supply chain constraints, component availability, testing outcomes, and certification requirements.

Intellectual Property

1 unchanged sentence

The Company owns a trademark registration for its name “Knightscope” in the U.S.

On August 10, 2021, the Company filed two trademark applications.

The Company relies and expects to continue to rely on a combination of confidentiality agreements with its employees, consultants, and third parties with whom it has relationships, as well as trademark, copyright, patent, trade secret, and domain name protection laws, to protect its proprietary rights.

Manufacturing and Suppliers

Knightscope manufactures all its products at its Mountain View, California headquarters from components produced by more than 100 suppliers.

The Company’s top three suppliers, measured by spending, are Alco Metal Fab, based in Santa Ana, California, Sybridge Digital Solutions LLC, based in Chicago, Illinois, and E and M Electric and Machinery Inc., based in Healdsburg, California.

The Company is not highly dependent on any one supplier and believes it can source components from other suppliers and has done so when necessary.

Given the global nature of our supply chain, we may face risks relating to the imposition by the United States of tariffs on foreign imports.

Risk Factors—Risks Related to the Business and the Global Economy—Our business could be adversely affected by trade tariffs or other trade barriers .

In order to optimize our ability to serve our clients, we have partnered with field services companies to train their technicians to service, maintain and support our machines-in-network and assist us with our nationwide scaling efforts.

As our fleet of deployed ASRs and ECD devices grows, the Company has engaged these third-party service providers with broad geographic footprints to support our clients.

We believe that by opting to outsource field services, Knightscope is able to laser-focus on what we do best:

innovation and technology development.

This strategic move not only streamlines our operations but also grants us access to specialized expertise and reach without the overhead of developing these capabilities in-house.

We believe that this is a cost-effective approach that transforms fixed expenses into variable ones, offering the flexibility to scale operations in response to ever-changing market demands.

Moreover, it reduces the burden of compliance and regulatory risks, allowing us to penetrate new markets with the aid of partners who have established local networks and expertise.

Ultimately, outsourcing empowers us to dedicate more resources to strategic planning and innovation, allowing us to focus on staying ahead in the competitive technology landscape.

Knightscope competes in multiple industries by offering autonomous security robotics, emergency communication devices, and AI-driven public safety solutions.

Its key competitors fall into three primary categories:

traditional public safety and security services, autonomous security robotics, and emergency communication systems.

● Competition with Traditional Public Safety and Security Services -Knightscope directly competes with human-based guarding companies such as Allied Universal, Securitas, and G4S.

These companies rely on human guards to provide safety and security, whereas Knightscope’s robots offer a cost-effective, 24/7 alternative that address the risks of fatigue, human error, or turnover.

By automating surveillance and security patrols, Knightscope aims to reduce dependency on human guards while enhancing security coverage with AI-powered monitoring and data analytics.

● Competition in Autonomous Security Robotics – Knightscope is one of the pioneers in ASRs, but it faces competition from companies such as Asylon Robotics and SMP Robotics.

Asylon Robotics specializes in drone-based security rather than ground-based ASRs.

SMP Robotics builds outdoor patrol robots similar to Knightscope’s K5 model but focuses more on rugged environments.

Knightscope differentiates itself through a broader product lineup that includes not only robots but also a complete public and asset safety ecosystem with emergency communication devices and AI-based threat detection.

● Competition in Emergency Communication Systems – Through its acquisition of Case Emergency Systems (“CASE”), Knightscope now competes with Code Blue Corporation, Aiphone, and Talkaphone in the blue light emergency communication market.

These companies manufacture emergency call boxes and blue light towers for college campuses, parking lots, and public spaces.

Knightscope sets itself apart by integrating advanced AI analytics, gunshot detection, and monitoring software like KEMS into its K1 Blue Light Towers, E-Phones, and Call Boxes.

While Knightscope competes against traditional public safety and security firms, robotic security companies, and emergency communication providers, we believe that no other company offers an integrated public safety platform that combines autonomous security robots, emergency communication devices, and AI-driven monitoring under a single ecosystem.

Knightscope’s KSOC provides a centralized dashboard for real-time monitoring, while RTX offers human-in-the-loop services for remote intervention.

We manufacture and assemble our products at our facility in Sunnyvale, California using components sourced from a network of domestic and international suppliers.

Our supply chain includes mechanical components, electronic assemblies, batteries, imaging systems, communication modules, and other specialized parts.

During 2025, we experienced significant supply chain constraints, including increased lead times, limited component availability, higher logistics costs, and pricing volatility.

These challenges were driven in part by global supply chain disruptions, electronic component shortages, inflationary pressures, and tariff-related cost increases.

As a result, we experienced intermittent interruptions in production schedules and increased bill-of-material costs, particularly affecting our ECD product line.

Certain components used in our ECD products and other platforms are sourced from single suppliers or from a limited number of qualified suppliers.

In some cases, these components require certification, customization, or regulatory compliance that limits short-term substitution.

During 2025, extended lead times from certain single-source or limited-source suppliers materially affected our ability to meet production schedules and customer delivery timelines.

These disruptions contributed to higher input costs, inconsistent production cadence, and reduced sales in certain periods.

While we maintain relationships with multiple suppliers across our broader component base and seek to diversify sourcing where feasible, alternative suppliers for certain specialized components may not be immediately available or may require additional engineering validation and qualification.

Transitioning to alternative suppliers can require testing, redesign, certification, and incremental cost.

Tariffs and trade policy changes affecting imported components have also increased input costs for certain materials and subassemblies.

We may be unable to fully offset such increases through pricing adjustments or supplier negotiations.

We continue to evaluate supply chain resilience initiatives, including supplier diversification, inventory management strategies, and longer-term procurement agreements.

However, global supply chain volatility, component shortages, geopolitical factors, inflation, and transportation constraints may continue to impact production timelines, margins, and our ability to meet customer demand.

Next-generation hardware platforms, including the K7 and K1 configurations, may require additional supplier qualification, tooling, and component sourcing efforts, which could further expose us to supply chain risks and capital requirements.

Risk Factors—Risks Related to Our Business and the Global Economy for additional discussion of supply chain, tariff, and component availability risks.

We operate in a competitive and fragmented market and compete across multiple segments of the physical security and public safety industries.

Our competitors include:

● Traditional security guard providers, including national and regional firms delivering on-site personnel-based services;

● Security system integrators that design, install, and maintain surveillance and access control systems;

● Surveillance hardware manufacturers offering cameras, sensors, and ECDs;

● Remote monitoring service providers;

● Robotics and autonomous systems companies developing ground-based or aerial patrol technologies.

Some competitors focus on a single component of the security value chain, while others offer bundled services.

Many have longer operating histories, larger customer bases, greater brand recognition, broader geographic reach, and significantly greater financial and operational resources than we do.

Competition is based on factors including service reliability, pricing and total cost of ownership, regulatory compliance and licensing, technological performance, integration capabilities, reputation, and financial stability.

In certain cases, customers may elect to perform security functions internally rather than engage third-party providers.

Our operating model integrates licensed security personnel with autonomous hardware and software within a managed service framework.

This structure allows us to compete for contracts that require licensed guarding capabilities while incorporating technology-enabled monitoring and detection systems.

Moreover, with the completion of the Event Risk Acquisition and integrating licensed response services with autonomous machines and AI-driven orchestration software, we are building a unified operating model designed to deliver deterrence, detection, and response as one coordinated system that we believe will expand our competitive footprint.

Our ability to compete effectively depends on continued product development, operational execution, cost management, regulatory compliance, and customer adoption.

Government Regulation

Our operations are subject to numerous governmental laws and regulations, including those governing antitrust and competition, the environment, collection, recycling, treatment and disposal of covered electronic products and components.

In addition, a number of data protection laws impact, or may impact, the manner in which we collect, process and transfer personal data.

laws that have been applied to protect user privacy (including laws regarding unfair and deceptive practices) may be subject to evolving interpretations or applications in light of privacy developments.

Compliance with enhanced data protection laws requires additional resources and efforts, and noncompliance with personal data protection regulations could result in increased regulatory enforcement and significant monetary fines and costs.

Our operations are subject to extensive federal, state, and local laws and regulations that govern security services, technology deployment, data handling, labor practices, and trade compliance.

Regulatory requirements vary by jurisdiction and may change over time, potentially increasing compliance costs or operational complexity.

In addition, we are subject to a variety of laws and regulations relating to privacy, data protection, cybersecurity, and the use of certain technologies that may collect or process information.

Our products and cloud-based platforms may collect, process, store, and transmit data, including video, audio, geolocation, and other information generated in connection with customer deployments.

The legal and regulatory landscape governing privacy, data protection, cybersecurity, artificial intelligence (“AI”), and automated technologies is rapidly evolving at the federal, state, and local levels.

These laws and regulations may impose requirements relating to data handling, security safeguards, breach notification, transparency, and contractual obligations.

Compliance with these evolving requirements may require us to implement and maintain appropriate administrative, technical, and physical safeguards, update internal policies and procedures, and incur additional compliance and litigation-related costs.

Failure to comply with applicable requirements could result in investigations, enforcement actions, litigation, monetary penalties, contractual liability, or reputational harm.

As a provider of services to U.S.

federal agencies, we are also subject to certain information security and compliance requirements applicable to government contractors.

These requirements may include ongoing monitoring, documentation, and assessment obligations.

Failure to maintain required authorizations or comply with applicable standards could adversely affect our ability to perform under government contracts.

Compliance with these regulatory requirements may require ongoing investment in personnel, processes, and technology.

Regulatory changes, enforcement actions, or noncompliance could result in fines, penalties, operational restrictions, reputational harm, or increased costs.

Backlog and Seasonality

As of December 31, 2024, the Company had a total backlog of approximately $1.7 million, comprised of $0.4 million related to ASR orders and $1.3 million relates to orders for ECD.

As of December 31, 2025, the Company had a total backlog of approximately $2.8 million, comprised of $0.7 million related to ASR orders and $2.1 million related to orders for ECD.

We have not experienced any significant effects relating to seasonality for our products and services.

Human Capital

As of December 31, 2024, the Company had 71 full-time employees working out of our combined headquarters and production facility in Mountain View, California as well as remotely.

As of December 31, 2025, the Company had 90 full-time employees working out of our combined headquarters and manufacturing facility in Sunnyvale, California as well as remotely.

As a result of the Event Risk Acquisition, which was completed on February 27, 2026, our workforce has increased significantly to over 400 employees.

We are not a party to any collective bargaining agreements.

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What changed 10-K

Item 1. Business