Knightscope (KSCP) 10-Q13 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Nov. 08, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-41248
Entity Registrant Name	Knightscope, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-2482575
Entity Address State Or Province	CA
Entity Address, Address Line One	1070 Terra Bella Avenue
Entity Address, City or Town	Mountain View
Entity Address, Postal Zip Code	94043
City Area Code	650
Local Phone Number	924-1025
Title of 12(b) Security	Class A Common Stock, par value $0.001 per share
Trading Symbol	KSCP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		75,377,489
Entity Central Index Key	0001600983
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands		Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents		$ 4,611	$ 4,810	[1]
Restricted cash		100
Accounts receivable (net of allowance for credit losses of $14 as of September 30, 2023 and $229 as of December 31, 2022)		2,094	1,370	[1]
Inventory		3,159	2,560	[1]
Prepaid expenses and other current assets		1,218	1,349	[1]
Total current assets		11,182	10,089	[1]
Autonomous Security Robots, net		7,776	5,850	[1]
Property, equipment and software, net		920	614	[1]
Operating lease right-of-use-assets		1,504	2,012	[1]
Goodwill		1,922	1,344	[1]
Intangible assets, net		1,646	2,056	[1]
Other assets		95	117	[1]
Total assets		25,045	22,082	[1]
Current liabilities:
Accounts payable		1,718	2,457	[1]
Accrued expenses		1,559	2,403	[1]
Deferred revenue		1,884	1,711	[1]
Debt obligations		273	2,144	[1]
Operating lease liabilities, current		701	731	[1]
Other current liabilities		1,561	1,063	[1]
Total current liabilities		7,696	10,509	[1]
Non-current liabilities:
Debt obligations	[1]		6,554
Preferred stock warrant liability		6,752	10,011	[1]
Derivative liability		390	1,146	[1]
Other noncurrent liabilities		284	356	[1]
Operating lease liabilities, noncurrent		783	1,309	[1]
Total liabilities		15,905	29,885	[1]
Commitments and contingencies (Note 8)				[1]
Preferred Stock, $0.001 par value; 43,405,324 shares authorized as of September 30, 2023, and December 31, 2022, 9,519,934 and 11,351,841 shares issued and outstanding as of September 30, 2023, and December 31, 2022, respectively; aggregate liquidation preference of $35,473 and $37,733 as of September 30, 2023, and December 31, 2022, respectively		34,311	35,783	[1]
Stockholders' deficit:
Additional paid-in capital		129,671	95,716	[1]
Accumulated deficit		(154,924)	(139,340)	[1]
Total stockholders' deficit		(25,171)	(43,586)	[1]
Total liabilities, preferred stock and stockholders' deficit		25,045	22,082	[1]
Class A Common Stock
Stockholders' deficit:
Common Stock		73	28	[1]
Class B Common Stock
Stockholders' deficit:
Common Stock		$ 9	$ 10	[1]

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Allowance for credit losses	$ 14	$ 229
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	43,405,324	43,405,324
Preferred stock, shares issued	9,519,934	11,351,841
Preferred stock, shares outstanding	9,519,934	11,351,841
Preferred stock, aggregate liquidation preference	$ 35,473	$ 37,733
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	114,000,000	114,000,000
Common stock, shares issued	73,372,816	28,029,238
Common stock, share outstanding	73,372,816	28,029,238
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	9,357,822	10,319,884
Common stock, share outstanding	9,357,822	10,319,884

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Total revenues	$ 3,324	$ 1,296	$ 9,784	$ 3,281
Total cost of revenues, net	3,274	2,195	9,938	5,420
Gross profit (loss)	50	(899)	(154)	(2,139)
Operating expenses:
Research and development	1,903	2,070	4,782	5,983
Sales and marketing	1,395	1,907	3,716	6,905
General and administrative	3,235	2,899	10,148	8,185
Restructuring charges			149
Total operating expenses	6,533	6,876	18,795	21,073
Loss from operations	(6,483)	(7,775)	(18,949)	(23,212)
Other income (expense):
Change in fair value of warrant liabilities	(1,800)	2,543	4,015	18,190
Interest income (expense), net	(8)		(462)	(8,910)
Other income (expense), net	(51)	(6)	(188)	(35)
Total other income (expense)	(1,859)	2,537	3,365	9,245
Loss before income tax expense	(8,342)	(5,238)	(15,584)	(13,967)
Net loss	$ (8,342)	$ (5,238)	$ (15,584)	$ (13,967)
Basic net income (loss) per common share	$ (0.11)	$ (0.14)	$ (0.26)	$ (0.40)
Diluted net income (loss) per common share	$ (0.11)	$ (0.14)	$ (0.26)	$ (0.40)
Weighted average shares used to compute basic net income (loss) per share	77,749,478	36,941,848	59,409,199	34,803,126
Weighted average shares used to compute diluted net income (loss) per share	77,749,478	36,941,848	59,409,199	34,803,126
Service
Total revenues	$ 1,915	$ 1,296	$ 5,488	$ 3,281
Total cost of revenues, net	2,581	$ 2,195	7,465	$ 5,420
Product
Total revenues	1,409		4,296
Total cost of revenues, net	$ 693		$ 2,473

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Deficit - USD ($)	Preferred Stock Series m Preferred Stock	Preferred Stock Series m-1 Preferred Stock	Preferred Stock Series m-2 Preferred Stock	Preferred Stock Series m-3 Preferred Stock	Preferred Stock Series S Preferred Stock	Preferred Stock Series A Preferred Stock	Preferred Stock Series B Preferred Stock	Common stock Class A Common Stock	Common stock Class B Common Stock	Additional Paid-in-capital	Accumulative Deficit	Class A Common Stock	Total
Balance as of beginning at Dec. 31, 2021	$ 11,881,000	$ 1,319,000	$ 3,755,000	$ 46,000	$ 29,995,000	$ 2,663,000	$ 7,559,000
Balance as of beginning (in shares) at Dec. 31, 2021	4,574,917	186,872	1,251,666	16,757	3,705,239	6,155,564	3,726,092
Increase (decrease) in temporary equity
Share conversion to common stock	$ (6,999,000)	$ (1,319,000)	$ (3,275,000)	$ (46,000)	$ (7,804,000)	$ (1,318,000)	$ (385,000)
Share conversion to common stock (in shares)	(2,694,971)	(186,872)	(1,091,666)	(16,757)	(963,898)	(3,046,404)	(190,471)	349,432,000
Balance at the end at Sep. 30, 2022	$ 4,882,000	$ 0	$ 480,000	$ 0	$ 22,191,000	$ 1,345,000	$ 7,174,000
Balance at the end (in shares) at Sep. 30, 2022	1,879,946	0	160,000	0	2,741,341	3,109,160	3,535,621
Balance as of beginning at Dec. 31, 2021								$ 6,000	$ 13,000	$ 30,745,000	$ (113,697,000)		$ (82,933,000)
Balance as of beginning (in shares) at Dec. 31, 2021								5,936,929	13,131,197
Increase (decrease) in stockholders' equity
Stock based compensation										2,571,000			2,571,000
Warrants exercised										$ 370,000			370,000
Warrants exercised (in shares)								156,483
Conversion of debt obligations to Class A Common Stock								$ 7,000					16,011,000
Conversion of debt obligations to Class A Common Stock (in shares)								6,513,385		16,004
Stock options exercised										$ 532,000			532,000
Stock options exercised (in shares)									25,000
Offering proceeds, net of issuance costs								$ 2,000		19,623,000			19,625,000
Offering proceeds, net of issuance costs (shares)								2,236,619
Shares issued for consulting services										653,000			653,000
Shares issued for consulting services (in shares)								236,567
Proceeds from equity sale, net of issuance costs								$ 1,000		1,351,000			1,352,000
Proceeds from equity sale, net of issuance costs (in shares)								517,920
Share conversion costs										(66,000)			(66,000)
Share conversion to common stock								$ 11,000	$ (3,000)	21,138,000			21,146,000
Share conversion to common stock (in shares)								11,205,577	(2,836,313)
Net loss											(13,967,000)		(13,967,000)
Balance as of end at Sep. 30, 2022								$ 27,000	$ 10,000	$ 92,921,000	(127,664,000)		(34,706,000)
Balance as of end (in shares) at Sep. 30, 2022								27,152,912	10,319,884	92,921,000
Balance as of beginning at Jun. 30, 2022	$ 5,017,000	$ 0	$ 480,000	$ 0	$ 22,532,000	$ 1,406,000	$ 7,185,000
Balance as of beginning (in shares) at Jun. 30, 2022	1,932,021	0	160,000	0	2,783,404	3,249,104	3,541,767
Increase (decrease) in temporary equity
Share conversion to common stock	$ (135,000)				$ (341,000)	$ (61,000)	$ (11,000)
Share conversion to common stock (in shares)	(52,075)				(42,063)	(139,944)	(6,146)
Balance at the end at Sep. 30, 2022	$ 4,882,000	$ 0	$ 480,000	$ 0	$ 22,191,000	$ 1,345,000	$ 7,174,000
Balance at the end (in shares) at Sep. 30, 2022	1,879,946	0	160,000	0	2,741,341	3,109,160	3,535,621
Balance as of beginning at Jun. 30, 2022								$ 26,000	$ 10,000	$ 89,314,000	(122,426,000)		(33,076,000)
Balance as of beginning (in shares) at Jun. 30, 2022								26,085,487	10,362,170
Increase (decrease) in stockholders' equity
Stock based compensation										1,119,000			1,119,000
Stock options exercised										330,000			330,000
Stock options exercised (in shares)								221,686
Shares issued for consulting services										653,000			653,000
Shares issued for consulting services (in shares)								236,567
Proceeds from equity sale, net of issuance costs								$ 1,000		973,000			974,000
Proceeds from equity sale, net of issuance costs (in shares)								323,298
Share conversion costs										(16,000)			(16,000)
Share conversion to common stock										548,000			548,000
Share conversion to common stock (in shares)								285,874	(42,286)
Net loss											(5,238,000)		(5,238,000)
Balance as of end at Sep. 30, 2022								$ 27,000	$ 10,000	$ 92,921,000	(127,664,000)		$ (34,706,000)
Balance as of end (in shares) at Sep. 30, 2022								27,152,912	10,319,884	92,921,000
Balance as of beginning at Dec. 31, 2022	$ 4,818,000		$ 480,000		$ 21,977,000	$ 1,335,000	$ 7,173,000
Balance as of beginning (in shares) at Dec. 31, 2022	1,855,328		160,000		2,714,732	3,086,160	3,535,621						11,351,841
Increase (decrease) in temporary equity
Share conversion to common stock	$ (168,000)				$ (508,000)	$ (721,000)	$ (75,000)
Share conversion to common stock (in shares)	(64,675)				(62,691)	(1,667,779)	(36,762)
Balance at the end at Sep. 30, 2023	$ 4,650,000		$ 480,000		$ 21,469,000	$ 614,000	$ 7,098,000
Balance at the end (in shares) at Sep. 30, 2023	1,790,653		160,000		2,652,041	1,418,381	3,498,859						9,519,934
Balance as of beginning at Dec. 31, 2022								$ 28,000	$ 10,000	$ 95,716,000	(139,340,000)		$ (43,586,000)	[1]
Balance as of beginning (in shares) at Dec. 31, 2022								28,029,238	10,319,884
Increase (decrease) in stockholders' equity
Stock based compensation										2,020,000			2,020,000
Conversion of debt obligations to Class A Common Stock								$ 11,000		8,581,000			8,592,000
Conversion of debt obligations to Class A Common Stock (in shares)								10,432,428				10,432,428
Stock options exercised										263,000			$ 263,000
Stock options exercised (in shares)								213,020	238,000				451,020
Proceeds from equity sale, net of issuance costs								$ 31,000		21,629,000			$ 21,660,000
Proceeds from equity sale, net of issuance costs (in shares)								31,620,860
Share conversion costs										(8,000)			(8,000)
Share conversion to common stock								$ 3,000	$ (1,000)	1,470,000			1,472,000
Share conversion to common stock (in shares)								3,077,270	(1,200,062)
Net loss											(15,584,000)		(15,584,000)
Balance as of end at Sep. 30, 2023								$ 73,000	$ 9,000	129,671,000	(154,924,000)		$ (25,171,000)
Balance as of end (in shares) at Sep. 30, 2023								73,372,816	9,357,822
Balance as of beginning at Jun. 30, 2023	$ 4,676,000		$ 480,000		$ 21,668,000	$ 614,000	$ 7,098,000
Balance as of beginning (in shares) at Jun. 30, 2023	1,800,959		160,000		2,676,565	1,418,381	3,498,859
Increase (decrease) in temporary equity
Share conversion to common stock	$ (26,000)				$ (199,000)
Share conversion to common stock (in shares)	(10,306)				(24,524)
Balance at the end at Sep. 30, 2023	$ 4,650,000		$ 480,000		$ 21,469,000	$ 614,000	$ 7,098,000
Balance at the end (in shares) at Sep. 30, 2023	1,790,653		160,000		2,652,041	1,418,381	3,498,859						9,519,934
Balance as of beginning at Jun. 30, 2023								$ 64,000	$ 10,000	121,190,000	(146,582,000)		$ (25,318,000)
Balance as of beginning (in shares) at Jun. 30, 2023								63,519,101	10,357,822
Increase (decrease) in stockholders' equity
Stock based compensation										843,000			843,000
Proceeds from equity sale, net of issuance costs								$ 8,000		7,416,000			7,424,000
Proceeds from equity sale, net of issuance costs (in shares)								8,799,634
Share conversion costs										(3,000)			(3,000)
Share conversion to common stock								$ 1,000	$ (1,000)	225,000			225,000
Share conversion to common stock (in shares)								1,054,081	(1,000,000)
Net loss											(8,342,000)		(8,342,000)
Balance as of end at Sep. 30, 2023								$ 73,000	$ 9,000	$ 129,671,000	$ (154,924,000)		$ (25,171,000)
Balance as of end (in shares) at Sep. 30, 2023								73,372,816	9,357,822

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows From Operating Activities
Net loss	$ (15,584)	$ (13,967)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,761	1,157
Stock compensation expense	2,020	2,571
Change in fair value of warrant liabilities	(4,015)	(18,190)
Accrued interest	440	24
Common stock issued in exchange for consulting services	385	67
Amortization of debt discount		8,878
Changes in operating assets and liabilities:
Accounts receivable, net	(724)	877
Prepaid expenses and other current assets	(254)	(72)
Inventory	(599)
Other assets	22
Accounts payable	(739)	188
Accrued expenses	(844)	(35)
Deferred revenue	(405)	470
Other current and noncurrent liabilities	378	(359)
Net cash used in operating activities	(18,158)	(18,391)
Cash Flows From Investing Activities
Purchases and related costs incurred for Autonomous Security Robots	(3,129)	(2,756)
Purchase of property and equipment	(454)	(76)
Net cash used in investing activities	(3,583)	(2,832)
Cash Flows From Financing Activities
Proceeds from stock options exercised	263	532
Offering proceeds, net of issuance costs		19,625
Repayment of sellers note	(273)
Proceeds from equity sale, net of issuance costs	21,660	1,352
Share conversion costs	(8)	(66)
Net cash provided by financing activities	21,642	21,443
Net change in cash and cash equivalents and restricted cash	(99)	220
Cash, cash equivalents and restricted cash at beginning of the period	4,810	10,849
Cash, cash equivalents and restricted cash at end of the period	4,711	11,069
Supplemental Disclosure of Non-Cash Financing Activities
Conversion of preferred stock to Class A Common Stock	1,472	21,146
Conversion of debt obligations to Class A Common Stock	8,592	16,011
Goodwill adjustment	$ 578
Cashless exercise of warrants		370
Common stock issued for consulting services		$ 586

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	9 Months Ended
The Company and Summary of Significant Accounting Policies	Sep. 30, 2023
The Company and Summary of Significant Accounting Policies
The Company and Summary of Significant Accounting Policies	NOTE 1: The Company and Summary of Significant Accounting Policies Description of Business Knightscope, Inc., was incorporated on April 4, 2013 under the laws of the State of Delaware. Knightscope, Inc. (the “Company”) is an advanced public safety technology company that builds fully autonomous security robots and Blue Light emergency communications systems. The Company’s 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. To support this mission, the Company designs, develops, manufactures, markets, deploys, and supports Autonomous Security Robots (“ASRs”), autonomous charging stations, the proprietary Knightscope Security Operations Center (“KSOC”) software user interface, Blue Light emergency communication devices, and its newly released Knightscope Emergency Management System (“KEMS”) platform. Basis of Presentation and Liquidity The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair presentation of the period presented. The results of operations for the three and nine months ended September 30, 2023, are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for other future periods. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 31, 2023. The Company’s significant accounting policies are described in Note 1 to those audited consolidated financial statements. Since its inception, the Company has incurred significant operating losses and negative cash flows from operations which is principally the result of significant research and development activities related to the development, maintenance, and continued improvement of the Company’s ASRs and KSOC (hardware and software). Cash and cash equivalents on hand were $4.6 million as of September 30, 2023, compared to $4.8 million as of December 31, 2022. The Company has historically incurred losses and negative cashflows from operations. As of September 30, 2023, the Company also had an accumulated deficit of approximately $154.9 million and stockholders’ deficit of $25.2 million. The Company is dependent on additional fundraising in order to sustain its ongoing operations. Based on current operating levels, the Company will need to raise additional funds in the next twelve months by selling additional equity or incurring debt. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months from the date of this report. Segments The Company has one operating segment and one reportable segment as its chief operating decision maker, who is its Chief Executive Officer, reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. All long-lived assets are located in the United States and substantially all revenue is attributed to sellers and buyers based in the United States. Basic and Diluted Net Loss Per Share Net loss per share of common stock is computed using the two-class method required for participating securities based on their participation rights. All series of convertible preferred stock are participating securities as the holders are entitled to participate in common stock dividends with common stock on an as converted basis. Holders of Series m-4 Preferred Stock were entitled to receive cumulative dividends payable semi-annually in arrears at the rate per share of Series m-4 Preferred Stock equal to the dividend rate for the Series m-4 Preferred Stock, in each case subject to compliance with applicable law. Dividends to holders of Series m-4 Preferred Stock are paid in kind as a dividend of additional shares of Series m-4 Preferred Stock for each dividend period on the applicable dividend payment date using a price per share equal to the original issue price, provided that the Company shall not issue any fractional shares of Series m-4 Preferred Stock. The holders of the Company’s preferred stock, other than m-4 preferred stock, are also entitled to noncumulative dividends prior and in preference, to the Company’s common stock and do not have a contractual obligation to share in the losses of the Company. All shares of Series m-4 Preferred Stock have converted to Class A Common Stock, leaving no outstanding balance of the Series m-4 Preferred Stock as of September 30, 2023. In accordance with the two-class method, earnings allocated to these participating securities, which include participation rights in undistributed earnings with common stock, are subtracted from net loss to determine net loss attributable to common stockholders upon their occurrence. Basic net loss per share is computed by dividing net loss attributable to common stockholders (net adjusted for preferred stock dividends declared or accumulated) by the weighted average number of common shares outstanding during the period. All participating securities are excluded from basic weighted average shares outstanding. In computing diluted net loss attributable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. Diluted net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by diluted weighted average shares outstanding, including potentially dilutive securities, unless anti-dilutive. Potentially dilutive securities that were excluded from the computation of diluted net loss per share consist of the following: September 30, September 30, 2023 2022 Series A Preferred Stock (convertible to Class B Common Stock) 1,418,381 3,109,160 Series B Preferred Stock (convertible to Class B Common Stock) 3,498,859 3,535,621 Series m Preferred Stock (convertible to Class A Common Stock) 1,790,653 1,879,946 Series m-2 Preferred Stock (convertible to Class B Common Stock) 160,000 160,000 Series S Preferred Stock (convertible to Class A Common Stock) 2,652,041 2,741,341 Warrants to purchase Class A Common Stock 1,138,446 — Warrants to purchase Series m-3 Preferred Stock 1,432,786 1,432,786 Warrants to purchase Series s Preferred Stock 2,941,814 4,441,814 Stock options 10,514,700 9,624,595 Total potentially dilutive shares 25,547,680 26,925,263 As all potentially dilutive securities are anti-dilutive for the nine months ended September 30, 2023 and 2022, diluted net loss per share is the same as basic net loss per share for each period. Comprehensive Loss Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Net loss was equal to comprehensive loss for the three and nine-month periods ended September 30, 2023 and 2022. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Specific accounts that require management estimates include, but are not limited to, estimating the useful lives of the Company’s ASRs and property, equipment and software, certain estimates required within revenue recognition, estimating fair values of Company’s common stock, share-based awards and warrant liabilities, inclusive of any contingent assets and liabilities. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. Accounting Pronouncements Adopted in 2023 In June 2016, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update No. 2016-13, “Financial Instruments – Credit Losses.” The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including but not limited to available-for-sale debt securities and accounts receivable. The Company’s implementation of this pronouncement did not have a material impact on the Company’s condensed consolidated financial statements. Accounting Pronouncements Not Yet Adopted Management has reviewed other recently issued accounting pronouncements issued or proposed by the FASB, and does not believe any of these accounting pronouncements has had or will have a material impact on the condensed consolidated financial statements. Out of Period Adjustments During the quarter ended June 30, 2023, the Company became aware of an error in the calculation of deferred revenue and goodwill associated with the CASE Emergency Systems acquisition in October of 2022. The error resulted in an understatement of acquired deferred revenue and goodwill in the amount of $578. As such, the June 30, 2023 condensed consolidated balance sheet has been adjusted to increase goodwill and deferred revenue by $578. Based on an analysis of Staff Accounting Bulletin 108, “Quantifying Misstatements” and Staff Accounting Bulletin 99, “Materiality,” the Company has determined that these errors were immaterial to the previously issued audited consolidated financial statements for the year ended December 31, 2022 and the unaudited condensed consolidated financial statements for the quarters ended March 31, 2023 and June 30, 2023. Inventory Inventory, principally purchased components, is stated at the lower of cost or net realizable value. Cost is determined using an average cost, which approximates actual cost on a first-in, first-out basis. Inventory in excess of salable amounts and inventory which is considered obsolete based upon changes in existing technology is written off. At the point of loss recognition, a new lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in the new cost basis. September 30, December 31, 2023 2022 Raw materials $ 2,364 $ 2,032 Work in process 91 — Finished goods 704 528 $ 3,159 $ 2,560 Autonomous Security Robots, net ASRs consist of materials, ASRs in progress and finished ASRs. ASRs in progress and finished ASRs include materials, labor and other direct and indirect costs used in their production. Finished ASRs are valued using a discrete bill of materials, which includes an allocation of labor and direct overhead based on assembly hours. Depreciation expense on ASRs is recorded using the straight-line method over their estimated expected lives, which currently ranges from 3 to 5 years. Depreciation expense of finished ASRs included in research and development expense amounted to $2 and $18, depreciation expense of finished ASRs included in sales and marketing expense amounted to $2 and $10, and depreciation expense included in cost of revenue, net amounted to $412 and $398 for the three-months ended September 30, 2023 and 2022, respectively. Depreciation expense of finished ASRs included in research and development expense amounted to $6 and $52, depreciation expense of finished ASRs included in sales and marketing expense amounted to $15 and $37, and depreciation expense included in cost of revenue, net amounted to $1,182 and $1,000 for the nine months ended September 30, 2023 and 2022, respectively. ASRs, net, consisted of the following: September 30, December 31, 2023 2022 Raw materials $ 3,158 $ 2,732 ASRs in progress 1,760 773 Finished ASRs 11,797 10,198 16,715 13,703 Accumulated depreciation on Finished ASRs (8,939) (7,853) ASRs, net $ 7,776 $ 5,850 The components of the Finished ASRs, net are as follows: September 30, December 31, 2023 2022 ASRs on lease or available for lease $ 10,469 $ 9,002 Demonstration ASRs 607 622 Research and development ASRs 194 194 Docking stations 527 380 11,797 10,198 Less: accumulated depreciation (8,939) (7,853) Finished ASRs, net $ 2,858 $ 2,345 Intangible Assets The gross carrying amounts and accumulated amortization of the intangible assets with determinable lives are as follows: September 30, 2023 Amortization Gross Period carrying Accumulated Carrying Intangible assets with determinable lives (years) amount amortization amount, net Developed technology 5 $ 990 $ (190) $ 800 Customer relationships 8 950 (114) 836 Trademark 1 230 (220) 10 Total $ 2,170 $ (524) $ 1,646 December 31, 2022 Amortization Gross Period carrying Accumulated Carrying Intangible assets with determinable lives (years) amount amortization amount, net Developed technology 5 $ 990 $ (41) $ 949 Customer relationships 8 950 (25) 925 Trademark 1 230 (48) 182 Total $ 2,170 $ (114) $ 2,056 Intangible assets amortization expense totaling $137 for the three-months ended September 30, 2023 was recorded in sales and marketing expense and cost of revenue, net - service in the amounts of $87 and $50, respectively. Intangible assets amortization expense totaling $410 for the nine months ended September, 30, 2023 was recorded in sales and marketing expense and cost of revenue, net - service in the amounts of $261 and $149, respectively. As of September 30, 2023, future intangible assets amortization expense for each of the next five years and thereafter is as follows: Year ending December 31, Amount 2023 (remaining) $ 89 2024 317 2025 317 2026 317 2027 275 Thereafter 331 Total $ 1,646 Other Current Liabilities Other current liabilities consisted of the following: September 30, December 31, 2023 2022 Sales tax $ 416 $ 419 Customer and vendor deposits 326 50 Warranty liability 375 145 Lease liability – short term 87 92 Other 357 357 $ 1,561 $ 1,063 Accrued Warranty The liability for estimated warranty claims is accrued at the time of sale and the expense is recorded in the condensed consolidated statements of operations in cost of revenue, net - product. The liability is established using historical warranty claim experience. The current provision may be adjusted to take into account unusual or non-recurring events in the past or anticipated changes in future warranty claims. Adjustments to the warranty accrual are recorded if actual claim experience indicates that adjustments are necessary. Warranty reserves are reviewed to ensure critical assumptions are updated for known events that may impact the potential warranty liability. Change in the warranty liability for the nine-months ended consisted of the following: September 30, 2023 2022 Balance January 1, $ 145 $ — Provision for warranties issued during nine months 339 — Warranty services provided (109) — $ 375 $ — Accrued Expenses Accrued expenses consisted of the following: September 30, December 31, 2023 2022 Accrued bonuses $ 593 $ 961 Payroll and payroll taxes 318 696 Legal, consulting, and financial services 194 542 Other 454 204 $ 1,559 $ 2,403 Convertible Preferred Warrant Liabilities and Common Stock Warrants Freestanding warrants to purchase shares of the Company’s preferred stock are classified as liabilities on the balance sheets at their estimated fair value because the underlying shares of preferred stock are contingently redeemable and, therefore, may obligate the Company to transfer assets at some point in the future. The preferred stock warrants are recorded at fair value upon issuance and are subject to remeasurement to their respective estimated fair values. At the end of each reporting period, changes in the estimated fair value of the preferred stock warrants are recorded in the condensed consolidated statements of operations. The Company will continue to adjust the liability associated with the preferred stock warrants for changes in the estimated fair value until the earlier of the exercise or expiration of the preferred stock warrants or the completion of a sale of the Company. Upon an initial public offering, the preferred stock warrants will convert into warrants to purchase common stock and any liabilities recorded for the preferred stock warrants will be reclassified to additional paid-in capital and will no longer be subject to remeasurement. Common stock warrants that are not considered derivative liabilities are accounted for at fair value at the date of issuance in additional paid-in capital. The fair value of these common stock warrants is determined using the Black-Scholes option-pricing model. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718, Compensation - Stock Compensation

Revenue and Deferred Revenue

Revenue and Deferred Revenue	9 Months Ended
Revenue and Deferred Revenue	Sep. 30, 2023
Revenue and Deferred Revenue
Revenue and Deferred Revenue	NOTE 2: Revenue and Deferred Revenue Revenue Recognition ASR related revenue The Company derives its revenues from lease of proprietary ASRs along with access to the browser-based interface KSOC through contracts under the lease accounting that typically have a twelve (12) month term. In addition, the Company derives non-lease revenue items such as professional services related to ASRs’ deployments, special decals, shipping costs and training if any, recognized when control of these services is transferred to the clients, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Blue Light Towers, E-Phones and Call Boxes revenue The Company also derives revenues from fees from Blue Light Tower, E-Phone and Call Box sales and related services, such as installation, maintenance, and upgrades. The maintenance revenue is recognized in the period the service is performed and the Company has determined that term of the contracts has been fulfilled. Installation or upgrades revenue are recognized upon completion of the project/contracts. In certain cases, deferred revenue is recognized to account for unfinished contracts. The Company determines revenue recognition through the following steps: ● identification of the contract, or contracts, with a client; ● identification of the performance obligations in the contract; ● determination of the transaction price; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, the Company satisfies a performance obligation. The Company recognizes ASR subscription revenue as follows: ASR subscription revenue ASR subscription revenue is generated from lease of proprietary ASRs along with access to the browser-based interface KSOC through contracts that typically have twelve (12) month terms. These revenue arrangements adhere to lease accounting guidance and are classified as leases for revenue recognition purposes. Currently, all revenue arrangements qualify as operating leases where consideration allocated to the lease deliverables is recognized ratably over the lease term. Deferred revenue In connection with the Company’s Machine-as-a-Service (“MaaS”) subscription for the Company’s ASRs, the Company’s standard billing terms are annual in advance. In these situations, the Company records the invoices as deferred revenue and amortizes the subscription amount when the services are delivered, which generally is a 12-month period. In addition, the Company refers certain transactions to Dimension and Balboa Capital, whereby Dimension or Balboa Capital advances the full value of the MaaS subscription to the Company, less a processing fee. The advanced payment is recorded in deferred revenue and amortized over the term of the subscription once the ASR is delivered to the deployment site. The Company derives revenue from the lease subscription of its proprietary ASRs along with access to its KSOC browser-based software interface. MaaS subscription agreements typically have a twelve (12)-month term. The Company also records deferred revenue from unfinished contracts for certain Call Box services. Deferred revenue includes billings in excess of revenue recognized. Revenue recognized at a point in time generally does not result in significant increases in deferred revenue. Revenue recognized over a period generally results in a majority of the increases in deferred revenue as the performance obligations are fulfilled after the billing event. Deferred revenue was as follows: September 30, 2023 Deferred revenue - short term $ 1,884 Revenue recognized in the nine-months ended related to amounts included in deferred revenue as of January 1, 2023 $ 1,339 Deferred revenue represents amounts invoiced to customers for contracts for which revenue has yet to be recognized based on subscription services to be delivered to the Company’s clients. Typically, the timing of invoicing is based on the terms of the contract. Customer Deposits Customer deposits primarily relate to sales of Blue Light Towers, E-Phones and Call Boxes to certain customers dependent upon credit worthiness. The customer deposits are recorded as current liabilities and reclassed to a contra accounts receivable account at the time that the final invoice for the sale is generated following the completion of the revenue recognition criteria. Disaggregation of revenue The Company disaggregates revenue from contracts with customers into the timing of the transfers of goods and services by product line. The following table summarizes revenue by product line and timing of recognition: Three-Months Ended September 30, 2023 2022 Point in time Over time Total Point in time Over time Total ASRs $ 89 $ 1,075 $ 1,164 $ 23 $ 1,273 $ 1,296 Blue Light Towers, E-Phones and Call Boxes 2,119 41 2,160 — — — Total $ 2,208 $ 1,116 $ 3,324 $ 23 $ 1,273 $ 1,296 Nine-Months Ended September 30, 2023 2022 Point in time Over time Total Point in time Over time Total ASRs $ 129 $ 3,157 $ 3,286 $ 69 $ 3,212 $ 3,281 Blue Light Towers, E-Phones and Call Boxes 6,299 199 6,498 — — — Total $ 6,428 $ 3,356 $ 9,784 $ 69 $ 3,212 $ 3,281 Other revenue Other non-ASR related revenue such as deployment services, decals, shipping, and training revenue is recognized when services are delivered.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
Fair Value Measurement	Sep. 30, 2023
Fair Value Measurement
Fair Value Measurement	NOTE 3: Fair Value Measurement The Company determines the fair market values of its financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following are three levels of inputs that may be used to measure fair value: ● Level 1 – Quoted prices in active markets for identical assets or liabilities. The Company considers a market to be active when transactions for the asset occur with sufficient frequency and volume to provide pricing information on an ongoing basis. ● Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The valuation of Level 3 investments requires the use of significant management judgments or estimation. In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3. Level 3 liabilities that are measured at fair value on a recurring basis consist of the convertible preferred stock warrant liabilities. The inputs used in estimating the fair value of the warrant liabilities are described in Note 6 -- Capital Stock and Warrants The following tables summarize, for each category of assets or liabilities carried at fair value, the respective fair value as of September 30, 2023, and December 31, 2022, and the classification by level of input within the fair value hierarchy: Total Level 1 Level 2 Level 3 September 30, 2023 Assets Cash equivalents: Money market funds $ 1,101 $ 1,101 $ — $ — Liabilities Warrant liability – Series m-3 Preferred Stock $ 412 $ — $ — $ 412 Warrant liability – Series S Preferred Stock $ 6,340 $ — $ — $ 6,340 Derivative liability – Class A Common Stock warrants $ 390 $ — $ — $ 390 Total Level 1 Level 2 Level 3 December 31, 2022 Assets Cash equivalents: Money market funds $ 3,025 $ 3,025 $ — $ — Liabilities Warrant liability – Series m-3 Preferred Stock $ 1,282 $ — $ — $ 1,282 Warrant liability – Series S Preferred Stock $ 8,729 $ — $ — $ 8,729 Derivative liability – Class A Common Stock warrants $ 1,146 $ — $ — $ 1,146 2022 Convertible Notes $ 8,152 $ — $ — $ 8,152 During the three-month periods ended September 30, 2023 and 2022, there were no transfers between Level 1, Level 2, or Level 3 assets or liabilities reported at fair value on a recurring basis and the valuation techniques used did not change compared to the Company’s established practice. The following table sets forth a summary of the changes in the fair value of Company’s Level 3 warrant liabilities during the nine-month periods ended September 30, 2023 and 2022, which were measured at fair value on a recurring basis: September 30, September 30, 2023 2022 Beginning Balance $ 11,157 $ 30,566 Warrants exercised — (370) Warrants cancelled (308) — Revaluation of Series m-3 and S Preferred Stock warrants (2,951) (18,190) Revaluation of Common Stock warrants (derivative liability) (756) — Ending Balance $ 7,142 $ 12,006 The following table sets forth a summary of the changes in the fair value of Company’s Level 3 convertible note liabilities during the nine-month periods ended September 30, 2023 and 2022, which were measured at fair value on a recurring basis: September 30, September 30, 2023 2022 Beginning Balance $ 8,152 $ — Notes converted (8,592) — Interest accretion 440 — Ending Balance $ — $ —

Debt Obligations

Debt Obligations	9 Months Ended
Debt Obligations	Sep. 30, 2023
Debt Obligations
Debt Obligations	NOTE 4: Debt Obligations The amortized carrying amount of the Company’s debt obligations consists of the following: September 30, December 31, 2023 2022 Convertible notes, net of fees and discount $ — $ 8,152 Promissory notes 273 546 Total debt 273 8,698 Less: current portion of debt obligations 273 2,144 Non-current portion of debt obligations $ — $ 6,554 During the nine months ended September 30, 2023, the Company issued 10,432,428 shares of Class A Common Stock in connection with various conversions of the 2022 Convertible Notes by the Buyer, representing an aggregate principal amount of $6.075 million. As of September 30, 2023, the entire outstanding principal balance of the 2022 Convertible Notes was fully retired. The 2022 Common Stock Warrants remain outstanding. On June 30, 2023, Knightscope and CASE Emergency Systems (“CASE”) executed a Promissory Note Partial Payment and Extension Agreement, whereby the maturity date of the Seller’s Note (“Note”) issued on October 14, 2022 in the amount of $560,000 in connection with the acquisition of CASE was extended to October 6, 2023. The balance of the Note is payable in two installments with the first payment made July 10, 2023 and the final installment due on or before October 6, 2023. On October 5, 2023, the Seller’s Note was paid in full. The Company filed an Offering Circular for up to $10.0 million in Public Safety Infrastructure Bonds dated September 29, 2023, pursuant to Regulation A of the Securities Act of 1933, as amended (the “ Offering Circular

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2023
Stock-Based Compensation
Stock-Based Compensation	NOTE 5: Stock-Based Compensation Equity Incentive Plans In April 2014, the Company adopted the Knightscope, Inc. 2014 Equity Incentive Plan (the “2014 Plan”) allowing for the issuance of up to 2,000,000 shares of common stock through grants of options, stock appreciation rights, restricted stock or restricted stock units. In December 2016, the 2014 Plan was terminated, and the Company adopted the Knightscope, Inc. 2016 Equity Incentive Plan (the “2016 Plan”) in which the remaining 1,936,014 shares available for issuance under the 2014 Plan at that time were transferred to the 2016 Plan. Awards outstanding under the 2014 Plan at the time of the 2014 Plan’s termination continue to be governed by their existing terms. The shares underlying any awards that are forfeited, canceled, repurchased or are otherwise terminated by the Company under the 2014 Plan will be added back to the shares of common stock available for issuance under the 2016 Plan. The 2016 Plan provides for the granting of stock awards such as incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock or restricted stock units to employees, directors and outside consultants as determined by the Board of Directors. The Board may grant stock options under the 2016 Plan at a price of not less than 100% of the fair market value of the Company’s common stock on the date the option is granted. The option exercise price generally may not be less than the underlying stock’s fair market value at the date of grant and generally have a term of ten years. Incentive stock options granted to employees who, on the date of grant, own stock representing more than 10% of the voting power of all of the Company’s classes of stock, are granted at an exercise price of not less than 110% of the fair market value of the Company’s common stock. The maximum term of incentive stock options granted to employees who, on the date of grant, own stock having more than 10% of the voting power of all the Company’s classes of stock, may not exceed five years. The Board of Directors also determines the terms and conditions of awards, including the vesting schedule and any forfeiture provisions. Options granted under the 2016 Plan may vest upon the passage of time, generally four years, or upon the attainment of certain performance criteria established by the Board of Directors. The amounts granted each calendar year to an employee or non-employee is limited depending on the type of award. Stock options comprise all of the awards granted since the Plan’s inception. On June 23, 2022, following approval by the Board of Directors, the Company’s stockholders adopted the Knightscope, Inc. 2022 Equity Incentive Plan (the “2022 Plan”) allowing for the issuance of up to 5,000,000 shares of Class A Common Stock through grants of options, stock appreciation rights, restricted stock awards, restricted stock units, performance awards, and other stock or cash-based awards. In connection with the adoption of the 2022 Plan, shares previously available for new grants under the 2016 Plan are available for new grants under the 2022 Plan, and shares subject to outstanding stock options under the prior plans as of the date of stockholder approval of the 2022 Plan, subsequently remain outstanding based on the respective plans under which they were granted. The number of shares authorized under the 2022 Plan will be increased each January 1 st st The Board of Directors also determines the terms and conditions of awards, including the vesting schedule and any forfeiture provisions. Options granted under the 2022 Plan may vest upon the passage of time, generally four years, or upon the attainment of certain performance criteria established by the Board of Directors. The Company may from time-to-time grant options to purchase common stock to nonemployees for advisory and consulting services. The amounts granted each calendar year to an employee or non-employee is limited depending on the type of award. Stock option activity under all of the Company’s equity incentive plans for the nine-month period ended of September 30, 2023, is as follows: Weighted Weighted Average Shares Number of Average Remaining Aggregate Available for Shares Exercise Contractual Intrinsic Grant Outstanding Price Life (Years) Value (000’s) Available and outstanding as of December 31, 2022 3,538,268 10,081,915 $ 3.11 7.61 $ 4,098 2022 Plan annual increase 1,917,456 — — — — Granted (2,170,299) 2,170,299 1.01 — — Exercised — (451,020) 0.58 — — Forfeited 1,286,494 (1,286,494) 4.37 — — Available and outstanding as of September 30, 2023 4,571,919 10,514,700 $ 2.63 7.48 $ 466 Vested and exercisable as of September 30, 2023 5,819,297 $ 2.39 6.32 $ 122 The weighted average grant date fair value of options granted during the nine-month period ended September 30, 2023, was $0.55 per share. There were 451,020 options exercised during the nine-month period ended September 30, 2023, compared to 374,432 options exercised in the prior year period. The fair value of the options that vested during the nine-months ended September 30, 2023 and 2022, was $2.4 million and $1.4 million, respectively. As of September 30, 2023, the Company had unamortized stock-based compensation expense of $6.4 million that will be recognized over the weighted average remaining vesting term of options of 1.87 years. The assumptions utilized for option grants during the three and nine-months ended September 30, 2023 and 2022, are as follows: Three-months ended Nine-months ended September 30, September 30, 2023 2022 2023 2022 Risk-free interest rate 3.96 % 3.13 % 3.81 % 8.54 % Expected dividend yield — % — % — % — % Expected volatility 54.00 % 52.76 % 54.32 % 52.82 % Expected term (in years) 6.0 5.99 5.75 6.00 A summary of stock-based compensation expense recognized in the Company’s condensed consolidated statements of operations is as follows: Three-months ended Nine-months ended September 30, September 30, 2023 2022 2023 2022 Cost of revenue, net $ 97 $ 85 $ 297 $ 247 Research and development 149 311 274 781 Sales and marketing 67 52 175 184 General and administrative 530 671 1,274 1,359 Total $ 843 $ 1,119 $ 2,020 $ 2,571

Capital Stock and Warrants

Capital Stock and Warrants	9 Months Ended
Capital Stock and Warrants	Sep. 30, 2023
Capital Stock and Warrants
Capital Stock and Warrants	NOTE 6: Capital Stock and Warrants The following tables summarize convertible preferred stock issued and outstanding as of September 30, 2023: Shares Proceeds Net Aggregate Issued and of Issuance Liquidation Outstanding Costs Preference Series A Preferred Stock 1,418,381 $ 614 $ 1,267 Series B Preferred Stock 3,498,859 7,098 7,138 Series m Preferred Stock 1,790,653 4,650 5,372 Series m-2 Preferred Stock 160,000 480 480 Series S Preferred Stock 2,652,041 21,469 21,216 Total Preferred Stock 9,519,934 $ 34,311 $ 35,473 A summary of the Company’s outstanding warrants as of September 30, 2023, is as follows: Class of shares Number of Warrants Exercise Price Expiration Date Series m-3 Preferred Stock 1,432,786 $ 4.0000 December 31, 2027 Series S Preferred Stock 2,941,814 $ 4.5000 December 31, 2027 Class A Common Stock 1,138,446 $ 3.2500 October 13, 2027 On April 7, 2023, the Company entered into an Amendment and Cancellation Agreement with certain holders of warrants to purchase Series m-3 and Series S Preferred Stock. Under the terms of the agreement, the expiration date for warrants to purchase 1,432,786 shares of Series m-3 Preferred Stock and 2,941,814 shares of Series S Preferred Stock was extended to the earlier of December 31, 2027 or eighteen (18) months after the closing of the Company’s first firm commitment underwritten initial public offering of the Company’s common stock pursuant to a registration statement filed under the Securities Act of 1933, as amended, in exchange for the cancellation of warrants to purchase 1,500,000 shares of Series S Preferred Stock. Common Stock Reserved for Future Issuance Shares of common stock reserved for future issuance relate to outstanding preferred stock, warrants and stock options as follows: September 30, 2023 Series A Preferred Stock 1,418,381 Series B Preferred Stock 3,498,859 Series m Preferred Stock 1,790,653 Series m-2 Preferred Stock 160,000 Series S Preferred Stock 2,652,041 Stock options to purchase common stock 10,514,700 Warrants outstanding for future issuance of convertible preferred stock and common stock 5,513,046 Stock options available for future issuance 4,571,919 Total shares of Class A Common Stock reserved 30,119,599 At-the-Market Offering Program In February 2023, the Company commenced an at-the-market offering program with H.C. Wainwright & Co., LLC, as sales agent, which allows the Company to sell and issue shares of Class A Common Stock from time-to-time of up to approximately $20.0 million, subject to, and in accordance with, SEC rules. On August 18, 2023, the Company amended the at-the-market offering program and increased the current available capacity to up to $25.0 million of Class A Common Stock. During the three months ended September 30, 2023, the Company issued 8,799,634 shares of Class A Common Stock under the at-the-market offering program for net proceeds of approximately $7.4 million, net of brokerage and placement fees of approximately $0.3 million. During the nine-months ended September 30, 2023, the Company issued 30,769,751 shares of Class A Common Stock under the at-the-market offering program for net proceeds of approximately $20.3 million, net of brokerage and placement fees of approximately $0.8 million.

Related parties and related-par

Related parties and related-party transactions	9 Months Ended
Related parties and related-party transactions	Sep. 30, 2023
Related parties and related-party transactions
Related parties and related-party transactions	NOTE 7: Related parties and related-party transactions One of the Company’s vendors, Konica Minolta, Inc. (“Konica Minolta”), is a stockholder of the Company. Konica Minolta provides the Company with repair services to its ASRs. The Company paid Konica Minolta $53 and $127 and $297 and $319 in service fees for the three and nine-month periods ended September 30, 2023 and 2022, respectively. The Company had payables of $99 and $117 owed to Konica Minolta as of September 30, 2023 and December 31, 2022, respectively. The Company paid $30 and $135 and $0 and $0 in rent for the three and nine-month periods ended September 30, 2023 and 2022, respectively, for a building owned by an employee.

Commitments and contingencies

Commitments and contingencies	9 Months Ended
Commitments and contingencies	Sep. 30, 2023
Commitments and contingencies
Commitments and contingencies	NOTE 8: Commitments and contingencies Leases The Company leases facilities for office space under non-cancelable operating lease agreements. The Company leases space for its corporate headquarters in Mountain View, California through August 2025. As of September 30, 2023 and December 31, 2022, the components of leases and lease costs are as follows: September 30, 2023 December 31, 2022 Operating leases Operating lease right-of-use assets $ 1,504 $ 2,012 Operating lease liabilities, current portion $ 701 $ 731 Operating lease liabilities, non-current portion 783 1,309 Total operating lease liabilities $ 1,484 $ 2,040 Lease costs for the three and nine-month periods ended September 30, 2023 are as follows: Three-months ended Nine-months ended September 30, 2023 September 30, 2023 Operating lease costs Operating lease right-of-use assets $ 270 $ 756 As of September 30, 2023, future minimum operating lease payments for each year until the end of the operating leases is as follows: Years ending December 31, Amount 2023 (remaining) $ 212 2024 810 2025 608 2026 15 Total future minimum lease payments 1,645 Less - Interest (161) Present value of lease liabilities $ 1,484 Weighted average remaining lease term is 2.0 years as of September 30, 2023, and the weighted average discount rate is 11%. Legal Matters The Company may be subject to legal proceedings and regulatory actions in the ordinary course of business. The Company is not currently party to any legal proceedings or regulatory actions that would have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company from time to time enters into contracts that contingently require the Company to indemnify parties against third party claims. These contracts primarily relate to: (i) arrangements with clients which generally include certain provisions for indemnifying clients against liabilities if the services infringe a third party’s intellectual property rights, (ii) the Regulation A Issuer Agreement where the Company may be required to indemnify the placement agent for any loss, damage, expense or liability incurred by the other party in any claim arising out of a material breach (or alleged breach) as a result of any potential violation of any law or regulation, or any third party claim arising out of any investment or potential investment in the offering, and (iii) agreements with the Company’s officers and directors, under which the Company may be required to indemnify such persons from certain liabilities arising out of such persons’ relationships with the Company. The Company has not incurred any material costs as a result of such obligations and has not accrued any liabilities related to such obligations in the condensed consolidated financial statements as of September 30, 2023, and December 31, 2022. Sales Tax Contingencies The Company has historically not collected state sales tax on the sale of its “MaaS” product offering but has paid sales tax and use tax on all purchases of raw materials and in conjunction with the financing arrangement of the Company’s ASRs with Farnam Street Financial. The Company’s MaaS product offering may be subject to sales tax in certain jurisdictions. If a taxing authority were to successfully assert that the Company has not properly collected sales or other transaction taxes, or if sales or other transaction tax laws or the interpretation thereof were to change, and the Company was unable to enforce the terms of their contracts with customers that give the right to reimbursement for the assessed sales taxes, tax liabilities in amounts that could be material may be incurred. Based on the Company’s assessment, the Company has recorded a use tax liability of $0.4 million and $0.4 million as of September 30, 2023, and December 31, 2022, respectively, which has been included in other current liabilities on the accompanying condensed consolidated balance sheets. The Company continues to analyze possible sales tax exposure but does not currently believe that any individual claim or aggregate claims that might arise will ultimately have a material effect on its results of operations, financial position or cash flows.

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2023
Subsequent Events
Subsequent Events	NOTE 9: Subsequent Events From October 1, 2023 to November 10, 2023, the Company sold 2,053,111 shares of Class A Common Stock, generating approximately $1.4 million of proceeds, net of commissions and other issuance costs, under the Company’s at-the-market offering program. We filed an Offering Circular dated September 29, 2023 (the “Offering Circular”) for the issuance of up to $10.0 million in Public Safety Infrastructure Bonds (the “Bonds”) pursuant to Regulation A of the Securities Act of 1933, as amended. The Offering Circular was qualified with the SEC on October 2, 2023. The price per Bond is $1,000. The Bonds are unsecured, bearing interest at 10% per annum, payable annually on December 31 each year, starting on December 31, 2024, with the Bonds maturing on the fifth anniversary of issuance. The Company intends to conduct closings on accepted investments in the bonds on a rolling basis intended to occur on or about the last business day of each calendar month. From October 2, 2023 to October 31, 2023, we have issued bonds totaling a principal amount of $421 thousand, in aggregate, generating net proceeds to the Company of approximately $394 thousand, net of issuance costs of $27 thousand. On October 26, 2023, the Company received notice from The Nasdaq Stock Market (“Nasdaq”) that the Company is not in compliance with Nasdaq Listing Rule 5450(a)(1), as the minimum bid price of the Company’s Class A Common Stock has been below $1.00 per share for 31 consecutive business days. The Company has 180 calendar days, or until April 23, 2024, to regain compliance with the minimum bid price requirement. To regain compliance, the minimum bid price of the Company’s Class A Common Stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days during this 180-calendar day grace period. In the event the Company does not regain compliance with the minimum bid price requirement by April 23, 2024, the Company may be eligible for an additional 180-calendar day compliance period if it elects to transfer to The Nasdaq Capital Market to take advantage of the additional compliance period offered on that market.

The Company and Summary of Si_2

The Company and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
The Company and Summary of Significant Accounting Policies
Description of Business	Description of Business Knightscope, Inc., was incorporated on April 4, 2013 under the laws of the State of Delaware. Knightscope, Inc. (the “Company”) is an advanced public safety technology company that builds fully autonomous security robots and Blue Light emergency communications systems. The Company’s 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. To support this mission, the Company designs, develops, manufactures, markets, deploys, and supports Autonomous Security Robots (“ASRs”), autonomous charging stations, the proprietary Knightscope Security Operations Center (“KSOC”) software user interface, Blue Light emergency communication devices, and its newly released Knightscope Emergency Management System (“KEMS”) platform.
Basis of Presentation and Liquidity	Basis of Presentation and Liquidity The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and note disclosures have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair presentation of the period presented. The results of operations for the three and nine months ended September 30, 2023, are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for other future periods. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 31, 2023. The Company’s significant accounting policies are described in Note 1 to those audited consolidated financial statements. Since its inception, the Company has incurred significant operating losses and negative cash flows from operations which is principally the result of significant research and development activities related to the development, maintenance, and continued improvement of the Company’s ASRs and KSOC (hardware and software). Cash and cash equivalents on hand were $4.6 million as of September 30, 2023, compared to $4.8 million as of December 31, 2022. The Company has historically incurred losses and negative cashflows from operations. As of September 30, 2023, the Company also had an accumulated deficit of approximately $154.9 million and stockholders’ deficit of $25.2 million. The Company is dependent on additional fundraising in order to sustain its ongoing operations. Based on current operating levels, the Company will need to raise additional funds in the next twelve months by selling additional equity or incurring debt. These factors raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months from the date of this report.
Segments	Segments The Company has one operating segment and one reportable segment as its chief operating decision maker, who is its Chief Executive Officer, reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. All long-lived assets are located in the United States and substantially all revenue is attributed to sellers and buyers based in the United States.
Basic and Diluted Net Loss Per Share	Basic and Diluted Net Loss Per Share Net loss per share of common stock is computed using the two-class method required for participating securities based on their participation rights. All series of convertible preferred stock are participating securities as the holders are entitled to participate in common stock dividends with common stock on an as converted basis. Holders of Series m-4 Preferred Stock were entitled to receive cumulative dividends payable semi-annually in arrears at the rate per share of Series m-4 Preferred Stock equal to the dividend rate for the Series m-4 Preferred Stock, in each case subject to compliance with applicable law. Dividends to holders of Series m-4 Preferred Stock are paid in kind as a dividend of additional shares of Series m-4 Preferred Stock for each dividend period on the applicable dividend payment date using a price per share equal to the original issue price, provided that the Company shall not issue any fractional shares of Series m-4 Preferred Stock. The holders of the Company’s preferred stock, other than m-4 preferred stock, are also entitled to noncumulative dividends prior and in preference, to the Company’s common stock and do not have a contractual obligation to share in the losses of the Company. All shares of Series m-4 Preferred Stock have converted to Class A Common Stock, leaving no outstanding balance of the Series m-4 Preferred Stock as of September 30, 2023. In accordance with the two-class method, earnings allocated to these participating securities, which include participation rights in undistributed earnings with common stock, are subtracted from net loss to determine net loss attributable to common stockholders upon their occurrence. Basic net loss per share is computed by dividing net loss attributable to common stockholders (net adjusted for preferred stock dividends declared or accumulated) by the weighted average number of common shares outstanding during the period. All participating securities are excluded from basic weighted average shares outstanding. In computing diluted net loss attributable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. Diluted net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by diluted weighted average shares outstanding, including potentially dilutive securities, unless anti-dilutive. Potentially dilutive securities that were excluded from the computation of diluted net loss per share consist of the following: September 30, September 30, 2023 2022 Series A Preferred Stock (convertible to Class B Common Stock) 1,418,381 3,109,160 Series B Preferred Stock (convertible to Class B Common Stock) 3,498,859 3,535,621 Series m Preferred Stock (convertible to Class A Common Stock) 1,790,653 1,879,946 Series m-2 Preferred Stock (convertible to Class B Common Stock) 160,000 160,000 Series S Preferred Stock (convertible to Class A Common Stock) 2,652,041 2,741,341 Warrants to purchase Class A Common Stock 1,138,446 — Warrants to purchase Series m-3 Preferred Stock 1,432,786 1,432,786 Warrants to purchase Series s Preferred Stock 2,941,814 4,441,814 Stock options 10,514,700 9,624,595 Total potentially dilutive shares 25,547,680 26,925,263 As all potentially dilutive securities are anti-dilutive for the nine months ended September 30, 2023 and 2022, diluted net loss per share is the same as basic net loss per share for each period.
Comprehensive Loss	Comprehensive Loss Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Net loss was equal to comprehensive loss for the three and nine-month periods ended September 30, 2023 and 2022.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Specific accounts that require management estimates include, but are not limited to, estimating the useful lives of the Company’s ASRs and property, equipment and software, certain estimates required within revenue recognition, estimating fair values of Company’s common stock, share-based awards and warrant liabilities, inclusive of any contingent assets and liabilities. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements.
Accounting Pronouncements Adopted in 2023	Accounting Pronouncements Adopted in 2023 In June 2016, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update No. 2016-13, “Financial Instruments – Credit Losses.” The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including but not limited to available-for-sale debt securities and accounts receivable. The Company’s implementation of this pronouncement did not have a material impact on the Company’s condensed consolidated financial statements.
Accounting Pronouncements Not Yet Adopted	Accounting Pronouncements Not Yet Adopted Management has reviewed other recently issued accounting pronouncements issued or proposed by the FASB, and does not believe any of these accounting pronouncements has had or will have a material impact on the condensed consolidated financial statements. Out of Period Adjustments During the quarter ended June 30, 2023, the Company became aware of an error in the calculation of deferred revenue and goodwill associated with the CASE Emergency Systems acquisition in October of 2022. The error resulted in an understatement of acquired deferred revenue and goodwill in the amount of $578. As such, the June 30, 2023 condensed consolidated balance sheet has been adjusted to increase goodwill and deferred revenue by $578. Based on an analysis of Staff Accounting Bulletin 108, “Quantifying Misstatements” and Staff Accounting Bulletin 99, “Materiality,” the Company has determined that these errors were immaterial to the previously issued audited consolidated financial statements for the year ended December 31, 2022 and the unaudited condensed consolidated financial statements for the quarters ended March 31, 2023 and June 30, 2023.
Inventory	Inventory Inventory, principally purchased components, is stated at the lower of cost or net realizable value. Cost is determined using an average cost, which approximates actual cost on a first-in, first-out basis. Inventory in excess of salable amounts and inventory which is considered obsolete based upon changes in existing technology is written off. At the point of loss recognition, a new lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in the new cost basis. September 30, December 31, 2023 2022 Raw materials $ 2,364 $ 2,032 Work in process 91 — Finished goods 704 528 $ 3,159 $ 2,560
Autonomous Security Robots, net	Autonomous Security Robots, net ASRs consist of materials, ASRs in progress and finished ASRs. ASRs in progress and finished ASRs include materials, labor and other direct and indirect costs used in their production. Finished ASRs are valued using a discrete bill of materials, which includes an allocation of labor and direct overhead based on assembly hours. Depreciation expense on ASRs is recorded using the straight-line method over their estimated expected lives, which currently ranges from 3 to 5 years. Depreciation expense of finished ASRs included in research and development expense amounted to $2 and $18, depreciation expense of finished ASRs included in sales and marketing expense amounted to $2 and $10, and depreciation expense included in cost of revenue, net amounted to $412 and $398 for the three-months ended September 30, 2023 and 2022, respectively. Depreciation expense of finished ASRs included in research and development expense amounted to $6 and $52, depreciation expense of finished ASRs included in sales and marketing expense amounted to $15 and $37, and depreciation expense included in cost of revenue, net amounted to $1,182 and $1,000 for the nine months ended September 30, 2023 and 2022, respectively. ASRs, net, consisted of the following: September 30, December 31, 2023 2022 Raw materials $ 3,158 $ 2,732 ASRs in progress 1,760 773 Finished ASRs 11,797 10,198 16,715 13,703 Accumulated depreciation on Finished ASRs (8,939) (7,853) ASRs, net $ 7,776 $ 5,850 The components of the Finished ASRs, net are as follows: September 30, December 31, 2023 2022 ASRs on lease or available for lease $ 10,469 $ 9,002 Demonstration ASRs 607 622 Research and development ASRs 194 194 Docking stations 527 380 11,797 10,198 Less: accumulated depreciation (8,939) (7,853) Finished ASRs, net $ 2,858 $ 2,345
Intangible Assets	Intangible Assets The gross carrying amounts and accumulated amortization of the intangible assets with determinable lives are as follows: September 30, 2023 Amortization Gross Period carrying Accumulated Carrying Intangible assets with determinable lives (years) amount amortization amount, net Developed technology 5 $ 990 $ (190) $ 800 Customer relationships 8 950 (114) 836 Trademark 1 230 (220) 10 Total $ 2,170 $ (524) $ 1,646 December 31, 2022 Amortization Gross Period carrying Accumulated Carrying Intangible assets with determinable lives (years) amount amortization amount, net Developed technology 5 $ 990 $ (41) $ 949 Customer relationships 8 950 (25) 925 Trademark 1 230 (48) 182 Total $ 2,170 $ (114) $ 2,056 Intangible assets amortization expense totaling $137 for the three-months ended September 30, 2023 was recorded in sales and marketing expense and cost of revenue, net - service in the amounts of $87 and $50, respectively. Intangible assets amortization expense totaling $410 for the nine months ended September, 30, 2023 was recorded in sales and marketing expense and cost of revenue, net - service in the amounts of $261 and $149, respectively. As of September 30, 2023, future intangible assets amortization expense for each of the next five years and thereafter is as follows: Year ending December 31, Amount 2023 (remaining) $ 89 2024 317 2025 317 2026 317 2027 275 Thereafter 331 Total $ 1,646
Other Current Liabilities	Other Current Liabilities Other current liabilities consisted of the following: September 30, December 31, 2023 2022 Sales tax $ 416 $ 419 Customer and vendor deposits 326 50 Warranty liability 375 145 Lease liability – short term 87 92 Other 357 357 $ 1,561 $ 1,063
Accrued Warranty	Accrued Warranty The liability for estimated warranty claims is accrued at the time of sale and the expense is recorded in the condensed consolidated statements of operations in cost of revenue, net - product. The liability is established using historical warranty claim experience. The current provision may be adjusted to take into account unusual or non-recurring events in the past or anticipated changes in future warranty claims. Adjustments to the warranty accrual are recorded if actual claim experience indicates that adjustments are necessary. Warranty reserves are reviewed to ensure critical assumptions are updated for known events that may impact the potential warranty liability. Change in the warranty liability for the nine-months ended consisted of the following: September 30, 2023 2022 Balance January 1, $ 145 $ — Provision for warranties issued during nine months 339 — Warranty services provided (109) — $ 375 $ —
Accrued Expenses	Accrued Expenses Accrued expenses consisted of the following: September 30, December 31, 2023 2022 Accrued bonuses $ 593 $ 961 Payroll and payroll taxes 318 696 Legal, consulting, and financial services 194 542 Other 454 204 $ 1,559 $ 2,403
Convertible Preferred Warrant Liabilities and Common Stock Warrants	Convertible Preferred Warrant Liabilities and Common Stock Warrants Freestanding warrants to purchase shares of the Company’s preferred stock are classified as liabilities on the balance sheets at their estimated fair value because the underlying shares of preferred stock are contingently redeemable and, therefore, may obligate the Company to transfer assets at some point in the future. The preferred stock warrants are recorded at fair value upon issuance and are subject to remeasurement to their respective estimated fair values. At the end of each reporting period, changes in the estimated fair value of the preferred stock warrants are recorded in the condensed consolidated statements of operations. The Company will continue to adjust the liability associated with the preferred stock warrants for changes in the estimated fair value until the earlier of the exercise or expiration of the preferred stock warrants or the completion of a sale of the Company. Upon an initial public offering, the preferred stock warrants will convert into warrants to purchase common stock and any liabilities recorded for the preferred stock warrants will be reclassified to additional paid-in capital and will no longer be subject to remeasurement. Common stock warrants that are not considered derivative liabilities are accounted for at fair value at the date of issuance in additional paid-in capital. The fair value of these common stock warrants is determined using the Black-Scholes option-pricing model.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based compensation in accordance with Accounting Standards Codification (“ASC”) 718, Compensation - Stock Compensation

The Company and Summary of Si_3

The Company and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2023
The Company and Summary of Significant Accounting Policies
Schedule of potentially dilutive securities that were excluded from the computation of diluted net loss per share	September 30, September 30, 2023 2022 Series A Preferred Stock (convertible to Class B Common Stock) 1,418,381 3,109,160 Series B Preferred Stock (convertible to Class B Common Stock) 3,498,859 3,535,621 Series m Preferred Stock (convertible to Class A Common Stock) 1,790,653 1,879,946 Series m-2 Preferred Stock (convertible to Class B Common Stock) 160,000 160,000 Series S Preferred Stock (convertible to Class A Common Stock) 2,652,041 2,741,341 Warrants to purchase Class A Common Stock 1,138,446 — Warrants to purchase Series m-3 Preferred Stock 1,432,786 1,432,786 Warrants to purchase Series s Preferred Stock 2,941,814 4,441,814 Stock options 10,514,700 9,624,595 Total potentially dilutive shares 25,547,680 26,925,263
Schedule of Inventory	September 30, December 31, 2023 2022 Raw materials $ 2,364 $ 2,032 Work in process 91 — Finished goods 704 528 $ 3,159 $ 2,560
Schedule of ASRs, net and components of the Finished ASRs, net	September 30, December 31, 2023 2022 Raw materials $ 3,158 $ 2,732 ASRs in progress 1,760 773 Finished ASRs 11,797 10,198 16,715 13,703 Accumulated depreciation on Finished ASRs (8,939) (7,853) ASRs, net $ 7,776 $ 5,850 The components of the Finished ASRs, net are as follows: September 30, December 31, 2023 2022 ASRs on lease or available for lease $ 10,469 $ 9,002 Demonstration ASRs 607 622 Research and development ASRs 194 194 Docking stations 527 380 11,797 10,198 Less: accumulated depreciation (8,939) (7,853) Finished ASRs, net $ 2,858 $ 2,345
Schedule of gross carrying amounts and accumulated amortization of the intangible assets with determinable lives	September 30, 2023 Amortization Gross Period carrying Accumulated Carrying Intangible assets with determinable lives (years) amount amortization amount, net Developed technology 5 $ 990 $ (190) $ 800 Customer relationships 8 950 (114) 836 Trademark 1 230 (220) 10 Total $ 2,170 $ (524) $ 1,646 December 31, 2022 Amortization Gross Period carrying Accumulated Carrying Intangible assets with determinable lives (years) amount amortization amount, net Developed technology 5 $ 990 $ (41) $ 949 Customer relationships 8 950 (25) 925 Trademark 1 230 (48) 182 Total $ 2,170 $ (114) $ 2,056
Schedule of future intangible assets amortization expense	Year ending December 31, Amount 2023 (remaining) $ 89 2024 317 2025 317 2026 317 2027 275 Thereafter 331 Total $ 1,646
Schedule of Other current liabilities	September 30, December 31, 2023 2022 Sales tax $ 416 $ 419 Customer and vendor deposits 326 50 Warranty liability 375 145 Lease liability – short term 87 92 Other 357 357 $ 1,561 $ 1,063
Schedule of change in the warranty liability	September 30, 2023 2022 Balance January 1, $ 145 $ — Provision for warranties issued during nine months 339 — Warranty services provided (109) — $ 375 $ —
Schedule of Accrued Expenses	September 30, December 31, 2023 2022 Accrued bonuses $ 593 $ 961 Payroll and payroll taxes 318 696 Legal, consulting, and financial services 194 542 Other 454 204 $ 1,559 $ 2,403

Revenue and Deferred Revenue (T

Revenue and Deferred Revenue (Tables)	9 Months Ended
Revenue and Deferred Revenue (Tables)	Sep. 30, 2023
Revenue and Deferred Revenue
Summary of deferred revenue	September 30, 2023 Deferred revenue - short term $ 1,884 Revenue recognized in the nine-months ended related to amounts included in deferred revenue as of January 1, 2023 $ 1,339
Summary of revenue by product line and timing of recognition	Three-Months Ended September 30, 2023 2022 Point in time Over time Total Point in time Over time Total ASRs $ 89 $ 1,075 $ 1,164 $ 23 $ 1,273 $ 1,296 Blue Light Towers, E-Phones and Call Boxes 2,119 41 2,160 — — — Total $ 2,208 $ 1,116 $ 3,324 $ 23 $ 1,273 $ 1,296 Nine-Months Ended September 30, 2023 2022 Point in time Over time Total Point in time Over time Total ASRs $ 129 $ 3,157 $ 3,286 $ 69 $ 3,212 $ 3,281 Blue Light Towers, E-Phones and Call Boxes 6,299 199 6,498 — — — Total $ 6,428 $ 3,356 $ 9,784 $ 69 $ 3,212 $ 3,281

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
Fair Value Measurement (Tables)	Sep. 30, 2023
Fair Value Measurement
Summary of category of assets or liabilities carried at fair value	Total Level 1 Level 2 Level 3 September 30, 2023 Assets Cash equivalents: Money market funds $ 1,101 $ 1,101 $ — $ — Liabilities Warrant liability – Series m-3 Preferred Stock $ 412 $ — $ — $ 412 Warrant liability – Series S Preferred Stock $ 6,340 $ — $ — $ 6,340 Derivative liability – Class A Common Stock warrants $ 390 $ — $ — $ 390 Total Level 1 Level 2 Level 3 December 31, 2022 Assets Cash equivalents: Money market funds $ 3,025 $ 3,025 $ — $ — Liabilities Warrant liability – Series m-3 Preferred Stock $ 1,282 $ — $ — $ 1,282 Warrant liability – Series S Preferred Stock $ 8,729 $ — $ — $ 8,729 Derivative liability – Class A Common Stock warrants $ 1,146 $ — $ — $ 1,146 2022 Convertible Notes $ 8,152 $ — $ — $ 8,152
Warrant Liabilities
Fair Value Measurement
Summary of changes in the fair value of Company's Level 3 warrant and convertible note liabilities	September 30, September 30, 2023 2022 Beginning Balance $ 11,157 $ 30,566 Warrants exercised — (370) Warrants cancelled (308) — Revaluation of Series m-3 and S Preferred Stock warrants (2,951) (18,190) Revaluation of Common Stock warrants (derivative liability) (756) — Ending Balance $ 7,142 $ 12,006
Convertible Note Liabilities
Fair Value Measurement
Summary of changes in the fair value of Company's Level 3 warrant and convertible note liabilities	September 30, September 30, 2023 2022 Beginning Balance $ 8,152 $ — Notes converted (8,592) — Interest accretion 440 — Ending Balance $ — $ —

Debt Obligations (Tables)

Debt Obligations (Tables)	9 Months Ended
Debt Obligations (Tables)	Sep. 30, 2023
Debt Obligations
Schedule of amortized carrying amount of the Company's debt obligations	September 30, December 31, 2023 2022 Convertible notes, net of fees and discount $ — $ 8,152 Promissory notes 273 546 Total debt 273 8,698 Less: current portion of debt obligations 273 2,144 Non-current portion of debt obligations $ — $ 6,554

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 2023
Stock-Based Compensation
Schedule of stock option activity under all of the Company's equity incentive plans	Weighted Weighted Average Shares Number of Average Remaining Aggregate Available for Shares Exercise Contractual Intrinsic Grant Outstanding Price Life (Years) Value (000’s) Available and outstanding as of December 31, 2022 3,538,268 10,081,915 $ 3.11 7.61 $ 4,098 2022 Plan annual increase 1,917,456 — — — — Granted (2,170,299) 2,170,299 1.01 — — Exercised — (451,020) 0.58 — — Forfeited 1,286,494 (1,286,494) 4.37 — — Available and outstanding as of September 30, 2023 4,571,919 10,514,700 $ 2.63 7.48 $ 466 Vested and exercisable as of September 30, 2023 5,819,297 $ 2.39 6.32 $ 122
Schedule of assumptions utilized for option grants	Three-months ended Nine-months ended September 30, September 30, 2023 2022 2023 2022 Risk-free interest rate 3.96 % 3.13 % 3.81 % 8.54 % Expected dividend yield — % — % — % — % Expected volatility 54.00 % 52.76 % 54.32 % 52.82 % Expected term (in years) 6.0 5.99 5.75 6.00
Schedule of stock-based compensation expense recognized in the Company's condensed consolidated statements of operations	Three-months ended Nine-months ended September 30, September 30, 2023 2022 2023 2022 Cost of revenue, net $ 97 $ 85 $ 297 $ 247 Research and development 149 311 274 781 Sales and marketing 67 52 175 184 General and administrative 530 671 1,274 1,359 Total $ 843 $ 1,119 $ 2,020 $ 2,571

Capital Stock and Warrants (Tab

Capital Stock and Warrants (Tables)	9 Months Ended
Capital Stock and Warrants (Tables)	Sep. 30, 2023
Capital Stock and Warrants
Schedule of the Company's outstanding warrants	The following tables summarize convertible preferred stock issued and outstanding as of September 30, 2023: Shares Proceeds Net Aggregate Issued and of Issuance Liquidation Outstanding Costs Preference Series A Preferred Stock 1,418,381 $ 614 $ 1,267 Series B Preferred Stock 3,498,859 7,098 7,138 Series m Preferred Stock 1,790,653 4,650 5,372 Series m-2 Preferred Stock 160,000 480 480 Series S Preferred Stock 2,652,041 21,469 21,216 Total Preferred Stock 9,519,934 $ 34,311 $ 35,473 A summary of the Company’s outstanding warrants as of September 30, 2023, is as follows: Class of shares Number of Warrants Exercise Price Expiration Date Series m-3 Preferred Stock 1,432,786 $ 4.0000 December 31, 2027 Series S Preferred Stock 2,941,814 $ 4.5000 December 31, 2027 Class A Common Stock 1,138,446 $ 3.2500 October 13, 2027
Schedule of common stock reserved for future issuance	September 30, 2023 Series A Preferred Stock 1,418,381 Series B Preferred Stock 3,498,859 Series m Preferred Stock 1,790,653 Series m-2 Preferred Stock 160,000 Series S Preferred Stock 2,652,041 Stock options to purchase common stock 10,514,700 Warrants outstanding for future issuance of convertible preferred stock and common stock 5,513,046 Stock options available for future issuance 4,571,919 Total shares of Class A Common Stock reserved 30,119,599

Commitments and contingencies (

Commitments and contingencies (Tables)	9 Months Ended
Commitments and contingencies (Tables)	Sep. 30, 2023
Commitments and contingencies
Schedule of components of leases and lease costs	September 30, 2023 December 31, 2022 Operating leases Operating lease right-of-use assets $ 1,504 $ 2,012 Operating lease liabilities, current portion $ 701 $ 731 Operating lease liabilities, non-current portion 783 1,309 Total operating lease liabilities $ 1,484 $ 2,040 Three-months ended Nine-months ended September 30, 2023 September 30, 2023 Operating lease costs Operating lease right-of-use assets $ 270 $ 756
Schedule of future minimum operating lease payments	Years ending December 31, Amount 2023 (remaining) $ 212 2024 810 2025 608 2026 15 Total future minimum lease payments 1,645 Less - Interest (161) Present value of lease liabilities $ 1,484

The Company and Summary of Si_4

The Company and Summary of Significant Accounting Policies - Basis of Presentation and Liquidity (Details)	9 Months Ended
	Sep. 30, 2023 USD ($) segment	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	[1]	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Basis of Presentation and Liquidity
Cash and cash equivalents	$ 4,611,000		$ 4,810,000
Stockholders' deficit	25,200,000
Accumulated deficit	154,924,000		139,340,000
Stockholders' deficit	$ 25,171,000	$ 25,318,000	$ 43,586,000		$ 34,706,000	$ 33,076,000	$ 82,933,000
Number of operating segment \| segment	1
Number of reportable segment \| segment	1

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

The Company and Summary of Si_5

The Company and Summary of Significant Accounting Policies - Potentially dilutive securities that were excluded from the computation of diluted net loss per share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023
Potentially dilutive securities
Total potentially dilutive shares	25,547,680	26,925,263
Series m-4 Preferred Stock (convertible to Class A Common Stock)
Potentially dilutive securities
Total potentially dilutive shares			0
Series A Preferred Stock (convertible to Class B Common Stock)
Potentially dilutive securities
Total potentially dilutive shares	1,418,381	3,109,160
Series B Preferred Stock (convertible to Class B Common Stock)
Potentially dilutive securities
Total potentially dilutive shares	3,498,859	3,535,621
Series m Preferred Stock (convertible to Class A Common Stock)
Potentially dilutive securities
Total potentially dilutive shares	1,790,653	1,879,946
Series m-2 Preferred Stock (convertible to Class B Common Stock)
Potentially dilutive securities
Total potentially dilutive shares	160,000	160,000
Series S Preferred Stock (convertible to Class A Common Stock)
Potentially dilutive securities
Total potentially dilutive shares	2,652,041	2,741,341
Warrants to purchase Class A Common Stock
Potentially dilutive securities
Total potentially dilutive shares	1,138,446
Warrants to purchase Series m-3 Preferred Stock
Potentially dilutive securities
Total potentially dilutive shares	1,432,786	1,432,786
Warrants to purchase Series s Preferred Stock
Potentially dilutive securities
Total potentially dilutive shares	2,941,814	4,441,814
Stock options
Potentially dilutive securities
Total potentially dilutive shares	10,514,700	9,624,595

The Company and Summary of Si_6

The Company and Summary of Significant Accounting Policies - Out of Period Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2022	[1]
The Company and Summary of Significant Accounting Policies
Goodwill	$ 578	$ 1,922	$ 1,344
Goodwill, period increase decrease	$ 578

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

The Company and Summary of Si_7

The Company and Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
The Company and Summary of Significant Accounting Policies
Raw materials	$ 2,364	$ 2,032
Work in process	91
Finished goods	704	528
Inventory,Net	$ 3,159	$ 2,560	[1]

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

The Company and Summary of Si_8

The Company and Summary of Significant Accounting Policies - Autonomous Security Robots, net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Research and development expense
Autonomous Security Robots, net
Depreciation expense of finished ASRs	$ 2	$ 18	$ 6	$ 52
Sales and marketing expense
Autonomous Security Robots, net
Depreciation expense of finished ASRs	2	10	15	37
Cost of revenue, net
Autonomous Security Robots, net
Depreciation expense of finished ASRs	$ 412	$ 398	$ 1,182	$ 1,000
Minimum
Autonomous Security Robots, net
Estimated expected lives			3 years
Maximum
Autonomous Security Robots, net
Estimated expected lives			5 years

The Company and Summary of Si_9

The Company and Summary of Significant Accounting Policies - Components of ASRs, net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
The Company and Summary of Significant Accounting Policies
Raw materials	$ 3,158	$ 2,732
ASRs in progress	1,760	773
Finished ASRs	11,797	10,198
ASRs, gross	16,715	13,703
Accumulated depreciation on Finished ASRs	(8,939)	(7,853)
ASRs, net	$ 7,776	$ 5,850	[1]

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

The Company and Summary of S_10

The Company and Summary of Significant Accounting Policies - Components of the Finished ASRs (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
The Company and Summary of Significant Accounting Policies
ASRs on lease or available for lease	$ 10,469	$ 9,002
Demonstration ASRs	607	622
Research and development ASRs	194	194
Docking stations	527	380
Finished ASRs, gross	11,797	10,198
Less: accumulated depreciation	(8,939)	(7,853)
Finished ASRs, net	$ 2,858	$ 2,345

The Company and Summary of S_11

The Company and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
The Company and Summary of Significant Accounting Policies
Gross carrying amount	$ 2,170	$ 2,170	$ 2,170
Accumulated amortization	(524)	(524)	(114)
Carrying amount, net	1,646	1,646	$ 2,056	[1]
Intangible assets amortization expense	137	410
Sales and marketing
The Company and Summary of Significant Accounting Policies
Intangible assets amortization expense	87	261
Cost of revenue, net
The Company and Summary of Significant Accounting Policies
Intangible assets amortization expense	$ 50	$ 149
Developed technology
The Company and Summary of Significant Accounting Policies
Amortization Period (years)	5 years	5 years	5 years
Gross carrying amount	$ 990	$ 990	$ 990
Accumulated amortization	(190)	(190)	(41)
Carrying amount, net	$ 800	$ 800	$ 949
Customer relationships
The Company and Summary of Significant Accounting Policies
Amortization Period (years)	8 years	8 years	8 years
Gross carrying amount	$ 950	$ 950	$ 950
Accumulated amortization	(114)	(114)	(25)
Carrying amount, net	$ 836	$ 836	$ 925
Trademark
The Company and Summary of Significant Accounting Policies
Amortization Period (years)	1 year	1 year	1 year
Gross carrying amount	$ 230	$ 230	$ 230
Accumulated amortization	(220)	(220)	(48)
Carrying amount, net	$ 10	$ 10	$ 182

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

The Company and Summary of S_12

The Company and Summary of Significant Accounting Policies - Future intangible assets amortization expense (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Future intangible assets amortization expense
2023 (remaining)	$ 89
2024	317
2025	317
2026	317
2027	275
Thereafter	331
Total	$ 1,646

The Company and Summary of S_13

The Company and Summary of Significant Accounting Policies - Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
The Company and Summary of Significant Accounting Policies
Sales tax	$ 416	$ 419
Customer and vendor deposits	326	50
Warranty liability	375	145
Lease liability - short term	87	92
Other	357	357
Total other current liabilities	$ 1,561	$ 1,063	[1]

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

The Company and Summary of S_14

The Company and Summary of Significant Accounting Policies - Accrued Warranty (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Movement in accrued warranty
Balance January 1,	$ 145
Provision for warranties issued during nine months	339
Warranty services provided	(109)
Balance September 30,	$ 375

The Company and Summary of S_15

The Company and Summary of Significant Accounting Policies - Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
The Company and Summary of Significant Accounting Policies
Accrued bonuses	$ 593	$ 961
Payroll and payroll taxes	318	696
Legal, consulting, and financial services	194	542
Other	454	204
Total accrued expenses	$ 1,559	$ 2,403	[1]

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

Revenue and Deferred Revenue -

Revenue and Deferred Revenue - Deferred revenue (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	[1]
Revenue and Deferred Revenue
Deferred revenue - short term	$ 1,884	$ 1,711
Revenue recognized in the nine-months ended related to amounts included in deferred revenue as of January 1, 2023	$ 1,339

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

Revenue and Deferred Revenue _2

Revenue and Deferred Revenue - Revenue by product line and timing of recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue and Deferred Revenue
Total revenues	$ 3,324	$ 1,296	$ 9,784	$ 3,281
ASRs
Revenue and Deferred Revenue
Total revenues	1,164	1,296	3,286	3,281
Blue Light Towers, E-Phones and Call Boxes
Revenue and Deferred Revenue
Total revenues	2,160		6,498
Point in time
Revenue and Deferred Revenue
Total revenues	2,208	23	6,428	69
Point in time \| ASRs
Revenue and Deferred Revenue
Total revenues	89	23	129	69
Point in time \| Blue Light Towers, E-Phones and Call Boxes
Revenue and Deferred Revenue
Total revenues	2,119		6,299
Transferred over time
Revenue and Deferred Revenue
Total revenues	1,116	1,273	3,356	3,212
Transferred over time \| ASRs
Revenue and Deferred Revenue
Total revenues	1,075	$ 1,273	3,157	$ 3,212
Transferred over time \| Blue Light Towers, E-Phones and Call Boxes
Revenue and Deferred Revenue
Total revenues	$ 41		$ 199

Fair Value Measurement - Classi

Fair Value Measurement - Classification by level of input within the fair value hierarchy (Details) - Recurring basis - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Liabilities
Derivative liability - Class A Common Stock warrants	$ 390	$ 1,146
2022 Convertible Notes		8,152
Warrant liability - Series m-3 Preferred Stock
Liabilities
Warrant liability	412	1,282
Warrant liability - Series s Preferred Stock
Liabilities
Warrant liability	6,340	8,729
Money market funds
Assets
Money market funds	1,101	3,025
Level 1 \| Money market funds
Assets
Money market funds	1,101	3,025
Level 3
Liabilities
Derivative liability - Class A Common Stock warrants	390	1,146
2022 Convertible Notes		8,152
Level 3 \| Warrant liability - Series m-3 Preferred Stock
Liabilities
Warrant liability	412	1,282
Level 3 \| Warrant liability - Series s Preferred Stock
Liabilities
Warrant liability	$ 6,340	$ 8,729

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Fair Value Measurement
Fair value assets, transfer from level 2 to level 1	$ 0	$ 0

Fair Value Measurement - Change

Fair Value Measurement - Changes in the fair value of Company's Level 3 warrant and derivative liability (Details) - Level 3 - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Warrant
Changes in the fair value of Company's Level 3 financial liabilities
Beginning Balance	$ 11,157	$ 30,566
Warrants exercised	0	(370)
Warrants cancelled	(308)	0
Revaluation of Series m-3 and S Preferred Stock warrants	(2,951)	(18,190)
Revaluation of Common Stock warrants (derivative liability)	(756)	0
Ending Balance	7,142	$ 12,006
Convertible Note Liabilities
Changes in the fair value of Company's Level 3 financial liabilities
Beginning Balance	8,152
Notes converted	(8,592)
Interest accretion	$ 440

Debt Obligations (Details)

Debt Obligations (Details) - USD ($)		1 Months Ended	9 Months Ended
Debt Obligations (Details) - USD ($)		Oct. 31, 2023	Sep. 30, 2023	Sep. 30, 2022	Oct. 02, 2023	Dec. 31, 2022
Debt obligations
Total debt			$ 273,000			$ 8,698,000
Less: current portion of debt obligations			273,000			2,144,000	[1]
Non-current portion of debt obligations	[1]					6,554,000
Conversion of debt obligations to Class A Common Stock			8,592,000	$ 16,011,000
Issuance costs		$ 27,000
Subsequent Events
Debt obligations
Maximum offering amount					$ 10,000,000
Price per bond					$ 1,000
Principal amount of bonds issued		421,000
Aggregate net proceeds		394,000
Issuance costs		$ 27,000
CASE Emergency Systems, Inc.
Debt obligations
Promissory note issued in connection with acquisition			$ 560,000
Class A Common Stock
Debt obligations
Number of shares issued on conversion Of convertible notes			10,432,428
Conversion of debt obligations to Class A Common Stock			$ 6,075,000
Convertible notes, net of fees and discount
Debt obligations
Total debt						8,152,000
Promissory notes
Debt obligations
Total debt			$ 273,000			$ 546,000

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

Stock-Based Compensation - Equi

Stock-Based Compensation - Equity Incentive Plans (Details) - shares	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2016	Apr. 30, 2014
Stock-Based Compensation
Number of shares available for grant	4,571,919		3,538,268
Vesting period of options (in years)	4 years
Percentage of outstanding common stock considered for annual increase in authorized shares under the plan (in percent)		5%
2014 Equity Incentive Plan
Stock-Based Compensation
Number of shares issuable under plan					2,000,000
2016 Equity Incentive Plan
Stock-Based Compensation
Number of shares available for grant				1,936,014
Vesting period of options (in years)	4 years
2016 Equity Incentive Plan \| Term of stock options, If price of 100 % of fair market value
Stock-Based Compensation
Maximum percentage of fair market value of stock options price	100%
Stock options term	10 years
Percentage of voting power held	10%
2016 Equity Incentive Plan \| Term of stock options, If price of 110 % of fair market value
Stock-Based Compensation
Maximum percentage of fair market value of stock options price	110%
Stock options term	5 years
Percentage of voting power held	10%
2022 Equity incentive plan
Stock-Based Compensation
Number of shares issuable under plan		5,000,000

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Shares Available for Grant
Available and Outstanding as of beginning of year	3,538,268
2022 Plan annual increase	1,917,456
Granted	(2,170,299)
Forfeited	1,286,494
Available and Outstanding as of ending of year	4,571,919		3,538,268
Number of Shares Outstanding
Available and Outstanding as of beginning of year	10,081,915
Granted	2,170,299
Exercised	(451,020)
Forfeited	(1,286,494)
Available and Outstanding as of ending of year	10,514,700		10,081,915
Vested and exercisable	5,819,297
Weighted Average Exercise Price
Available and Outstanding as of beginning of year	$ 3.11
Granted	1.01
Exercised	0.58
Forfeited	4.37
Available and Outstanding as of ending of year	2.63		$ 3.11
Vested and exercisable as of ending of year	$ 2.39
Weighted Average Remaining Contractual Life (Years)
Outstanding as of ending of year	7 years 5 months 23 days		7 years 7 months 9 days
Vested and exercisable as of ending of year	6 years 3 months 25 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, outstanding	$ 466		$ 4,098
Vested and exercisable	$ 122
Weighted average grant date fair value of options granted	$ 0.55
Share based payment award shares options exercise	451,020	374,432
Fair value of the shares subject to stock options vested	$ 2,400	$ 1,400
Unamortized stock-based compensation expense	$ 6,400
Vesting term (in years)	1 year 10 months 13 days

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions utilized for option (Details) - Stock options	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock-Based Compensation
Risk-free interest rate	3.96%	3.13%	3.81%	8.54%
Expected volatility	54%	52.76%	54.32%	52.82%
Expected term (in years)	6 years	5 years 11 months 26 days	5 years 9 months	6 years

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock-Based Compensation
Total equity based compensation	$ 843	$ 1,119	$ 2,020	$ 2,571
Cost of revenue, net
Stock-Based Compensation
Total equity based compensation	97	85	297	247
Research and development
Stock-Based Compensation
Total equity based compensation	149	311	274	781
Sales and marketing
Stock-Based Compensation
Total equity based compensation	67	52	175	184
General and administrative
Stock-Based Compensation
Total equity based compensation	$ 530	$ 671	$ 1,274	$ 1,359

Capital Stock and Warrants - Pr

Capital Stock and Warrants - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Capital Stock and Warrants
Preferred stock, aggregate liquidation preference	$ 35,473		$ 37,733
Preferred stock, shares issued	9,519,934		11,351,841
Preferred stock, par value (in dollars per share)	$ 0.001		$ 0.001
Preferred stock, shares authorized	43,405,324		43,405,324
Shares issued and outstanding	9,519,934
Proceeds Net of Issuance Costs	$ 34,311
Share conversion costs	(8)	$ (66)
Series A Preferred Stock
Capital Stock and Warrants
Preferred stock, aggregate liquidation preference	$ 1,267
Shares issued and outstanding	1,418,381
Proceeds Net of Issuance Costs	$ 614
Series B Preferred Stock
Capital Stock and Warrants
Preferred stock, aggregate liquidation preference	$ 7,138
Shares issued and outstanding	3,498,859
Proceeds Net of Issuance Costs	$ 7,098
Series m Preferred Stock
Capital Stock and Warrants
Preferred stock, aggregate liquidation preference	$ 5,372
Shares issued and outstanding	1,790,653
Proceeds Net of Issuance Costs	$ 4,650
Series m-2 Preferred Stock
Capital Stock and Warrants
Preferred stock, aggregate liquidation preference	$ 480
Shares issued and outstanding	160,000
Proceeds Net of Issuance Costs	$ 480
Series S Preferred Stock
Capital Stock and Warrants
Preferred stock, aggregate liquidation preference	$ 21,216
Shares issued and outstanding	2,652,041
Proceeds Net of Issuance Costs	$ 21,469

Capital Stock and Warrants - Ou

Capital Stock and Warrants - Outstanding warrants (Details)	Sep. 30, 2023 $ / shares shares
Capital Stock and Warrants
Number of warrants	5,513,046
Class A Common Stock \| Warrants expiration date, October 13, 2027
Capital Stock and Warrants
Number of warrants	1,138,446
Exercise price \| $ / shares	$ 3.2500
Series m-3 Preferred Stock \| Warrants expiration date, December 31, 2027
Capital Stock and Warrants
Number of warrants	1,432,786
Exercise price \| $ / shares	$ 4
Series S Preferred Stock \| Warrants expiration date, December 31, 2027
Capital Stock and Warrants
Number of warrants	2,941,814
Exercise price \| $ / shares	$ 4.5000

Capital Stock and Warrants - Co

Capital Stock and Warrants - Common stock reserved for future issuance (Details) - shares	Sep. 30, 2023	Dec. 31, 2022
Capital Stock and Warrants
Stock options to purchase common stock	10,514,700	10,081,915
Warrants outstanding for future issuance of convertible preferred stock and common stock	5,513,046
Stock options available for future issuance	4,571,919	3,538,268
Total shares of common stock reserved	30,119,599
Series A Preferred Stock (convertible to Class B Common Stock)
Capital Stock and Warrants
Preferred stock reserved for future issuance	1,418,381
Series B Preferred Stock (convertible to Class B Common Stock)
Capital Stock and Warrants
Preferred stock reserved for future issuance	3,498,859
Series m Preferred Stock (convertible to Class A Common Stock)
Capital Stock and Warrants
Preferred stock reserved for future issuance	1,790,653
Series m-2 Preferred Stock (convertible to Class B Common Stock)
Capital Stock and Warrants
Preferred stock reserved for future issuance	160,000
Series S Preferred Stock (convertible to Class A Common Stock)
Capital Stock and Warrants
Preferred stock reserved for future issuance	2,652,041

Capital Stock and Warrants - At

Capital Stock and Warrants - At-the-Market Offering Program (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Aug. 18, 2023	Feb. 28, 2023
Capital Stock and Warrants
Net proceeds	$ 7,424	$ 974	$ 21,660	$ 1,352
Class A Common Stock \| At-the-Market Offering Program
Capital Stock and Warrants
Shares issued	8,799,634		30,769,751
Net proceeds	$ 7,400		$ 20,300
Brokerage and placement fees	$ 300		$ 800
Class A Common Stock \| At-the-Market Offering Program \| H.C. Wainwright & Co., LLC
Capital Stock and Warrants
Maximum authorized amount					$ 25,000	$ 20,000

Capital Stock and Warrants - Ad

Capital Stock and Warrants - Additional information (Details)	Apr. 07, 2023 shares
Series M-3 Preferred Stock [Member]
Capital Stock and Warrants
Purchase of warrants	1,432,786
Series S Preferred Stock [Member]
Capital Stock and Warrants
Purchase of warrants	2,941,814
Period of extension	18 months
Cancellation of warrants to purchase common stock	1,500,000

Related parties and related-p_2

Related parties and related-party transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Related Party \| Konica Minolta, Inc
Related parties and related-party transactions
Service fees	$ 53	$ 127	$ 297	$ 319
Payables	99		99		$ 117
Employee
Related parties and related-party transactions
Rent paid	$ 30	$ 0	$ 135	$ 0

Commitments and contingencies -

Commitments and contingencies - Components of leases and lease costs (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Operating leases
Operating lease right-of-use assets	$ 1,504	$ 1,504	$ 2,012	[1]
Operating lease liabilities, current portion	701	701	731	[1]
Operating lease liabilities, non-current portion	783	783	1,309	[1]
Total operating lease liabilities	1,484	1,484	$ 2,040
Operating lease costs
Operating lease right-of-use assets	$ 270	$ 756

[1]The condensed consolidated balance sheet as of December 31, 2022 was derived from the audited consolidated balance sheet as of that date.

Commitments and contingencies_2

Commitments and contingencies - Future minimum operating lease payments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Commitments and contingencies
2023 (remaining)	$ 212
2024	810
2025	608
2026	15
Total future minimum lease payments	1,645
Less - Interest	(161)
Present value of lease liabilities	$ 1,484	$ 2,040
Weighted average remaining lease term	2 years
Weighted average discount rate	11%

Commitments and contingencies_3

Commitments and contingencies - Sales Tax Contingencies (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Commitments and contingencies
Sales tax liability	$ 416	$ 419

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Thousands		1 Months Ended
	Oct. 26, 2023 D $ / shares	Nov. 10, 2023 USD ($) shares	Oct. 31, 2023 USD ($)	Oct. 02, 2023 USD ($) $ / shares
Subsequent Events
Issuance costs			$ 27
Subsequent Events
Subsequent Events
Maximum offering amount				$ 10,000
Price per Bond \| $ / shares				$ 1,000
Interest rate per annum				10%
Principal amount of bonds issued			421
Aggregate net proceeds			394
Issuance costs			$ 27
Subsequent Events \| Class A Common Stock
Subsequent Events
Minimum bid price \| $ / shares	$ 1
Threshold consecutive trading days \| D	31
Maximum share price \| $ / shares	$ 1
Threshold consecutive minimum trading days \| D	10
Subsequent Events \| At The Market Offering [Member]
Subsequent Events
Number of shares sold \| shares		2,053,111
Proceeds, net of commissions and other issuance costs		$ 1,400