Item 1. Business
Item 1. Business
Overview
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:
● ASRs : 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.
● ECDs : 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.
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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:
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● 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
ASRs
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.
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● 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. 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. 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.
ECDs
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.
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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.
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.
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Intellectual Property
The Company holds twelve patents collectively related to its ASRs, the security data analysis and display features of the KSOC and its parking monitor feature that will begin to expire starting January 16, 2035. 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. See Item 1A. 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.
Competition
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.
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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.
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. U.S. 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.
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.
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. We are not a party to any collective bargaining agreements.
The Company believes that our future growth and success will depend in part on our ability to attract and retain highly skilled employees. The executive management team is responsible for developing and executing the Company’s human capital strategy. The human capital strategy includes the attraction, acquisition, engagement, and development of the Company’s employees as resources allow.
Available Information
We file reports and other information with the SEC, which are accessible on the SEC’s website at www.sec.gov. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available, free of charge, on our website at ir.knightscope.com. We make these reports available through our website as soon as reasonably practicable after we electronically file such reports with, or furnish such reports to, the SEC. We regularly post important information and updates on our investor relations website at ir.knightscope.com. The information provided on, or accessible through, our website is not a part of, or incorporated into, this Annual Report on Form 10-K. You may also access this information, free of charge, at the SEC’s website at http://www.sec.gov.
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