Q2 2023 Knightscope Inc Earnings Call

Thank you.

Got it.

Yeah.

Yes.

Oh, no he didn't give them a hug.

Okay.

[music].

We will now transition to the live portion of the town Hall for questions from our long time investors, new retail investors and institutions and analysts. Thank you.

Alright, and welcome everyone to the second quarter Town Hall, if you haven't been on one of these before let me go over some rules. So we're not tripping all over each other.

So first and foremost thank you everyone for taking time out of your busy schedules. We've got almost a couple hundred people on a call here and I want to make sure we get to <unk>.

Everyone's <unk>.

Questions.

So we'll be sure to do that and I'll stay here as long as you need me.

Second obviously, we're a publicly traded company I'm, an officer of the company and I won't be providing you any material non public information.

And in compliance with Ror. Good forward looking statement disclaimers that were included in the video as well.

And then to try to get the questions going.

Very simply at the bottom of your zoom.

Screen, there is a reactions button.

Just click on that and Theres a raise hands.

If you click on that and you raise your hand, and I know to call on you.

And we can get the questions going.

And then lastly in some cases.

I may not be able to answer literally the question that youre asking me for whatever legal reasons or what have you. So I might switch out the question a little bit or try to adjusted so I can answer it.

Unlikely I'm going to give you.

A little longer form answers for the benefit of the group as opposed to.

Twitter answer.

Hopefully that all works for everyone. The video you just saw we will put on our Youtube channel here. After we're done and then we'll pass it on our social media channels as well.

So with that we see we've got a couple of.

Folks I'm going to call on Barry if you have a camera and turn on and say Hello.

Make sure to mute yourself, Barry you want to ask the first question.

Sure. Thanks, so much.

Would love to.

You had any.

You can in terms of cash burn.

For the balance of the year and next year or.

Maybe in terms of monthly rate or whatever you can do to kind of give us a feel for in a relative to the five eight.

That you've got in hand, right now with the burn rate looks like thank you.

So obviously, if we're going to get to profitability by the end of fourth quarter of next year that number needs to go down down down down right. So.

So how do you get it to go down.

The sources of cash, obviously equity debt or revenue coming in so we're working on all those angles.

If you Miss the annual shareholder meeting.

The videos available at Ww Dot nightclub Dot com Slash rise go all the way to the bottom.

And I think gets episode nine if I'm not mistaken and we actually go through like how are you going to handle cash going forward.

I would direct.

Direct you to the SEC filings at Bolivar CFO included there a rough burn rate for the coming months.

Of about $1 million a month.

And we also have a a bond offering that were.

Working on two that's non dilutive.

You can learn a little bit more about that a bond that night's coke dot com.

And we're going through the regulatory process to kind of move that forward.

Forward things are looking up.

We were in a little bit of a difficult position.

Earlier in the year and I'm really excited that we cleared the NASDAQ notices.

But theres still a lot more work.

To be done, but hopefully that answers. Your question also I will prioritize people asking.

Questions.

Face to face.

The chat sometimes it gets a little bit difficult. So I would ask you to please ask me the question directly otherwise trying to go through the chat and let people in and try to answer your question that gets a little bit much. It's just me Theres no moderator.

You mean in the telephone pole.

Alright, thanks, and congrats on all the orders and just if I. It's very helpful. That you press released those so we can kind of follow up things.

And you'll get a feel for how things are going so I appreciate that thanks, yes, absolutely and then the next person or chooses to sending out too. Many press releases they can't win but we will absolutely do that.

Mr. Edward Woo got a hand up.

Yeah. Thank you Bill for doing this format for us, it's very useful I find it myself very informative. So thank you very much ignore it takes a long time congratulations on the quarter Marty as a general question, obviously, the news coming out about the wildfires emergencies is a major major disaster.

What opportunities are there for knight scope to be able to have some type of involvement with emergency preparedness for government organizations or other business organizations for events like this is there opportunity for Knight scope.

Thank you thanks.

Thanks Edward.

I'm glad you liked this format as opposed to the boring dial in the bone answer like two questions and hang up kind of stuff I'd like to be a little bit more direct with folks I'm glad to hear that.

We had one person from FEMA reach out I think the way I think about it is how could we have been.

<unk> been part of the prevention a lot of our technology actually has thermal cameras on it and we should be able to send out alerts a little bit earlier.

Than others, but way nightclub setup today, we're much more.

Suitable lucrative for us to go to a location that's 24 seven.

And deploy it and leave it we're not yet in the business of event driven type of things either be it somewhat something horrific lake is going on in Hawaii or a.

In or a stadium or.

Kind of things, where you just want to drop in folks I think over time.

We'll probably build some technology I have in mind that will be a little bit.

More portable.

And I think for our newer investors it'd probably be good for me to just spend 60 seconds on long term strategy. So for a long term strategy is to make the U S. The safest country in the world.

Criminals and terrorists can be anywhere if we're serious about the mission, we have to be everywhere and that means.

Example, you often uses.

Securing the underpass of a bridge is very very different and securing the inside of our U S. Federal courthouse, both still need to be done and I think in the along the X axis, we're going to have an increasing number of form factors of small medium large.

And extra large.

Robots and machines that.

Can provide that physical presence or cover that indoor outdoor location properly and then along the Y axis over time wanted to do a huge upgrade to be able to have all the machines be able to see feel hear smell and speak.

And I think as part of that over the long term, we would have something more event driven.

Or more responsive to some of the things that theme was looking for.

In the shorter term there are FEMA resources in our view there could be better deployed.

I don't tests.

Don't quote me here, but I think FEMA has something like nine major warehouses.

Or are we using the right taxpayer dollars for the right security measures that those locations to do the monotonous work on.

And that likely those humans and those resources could be better deployed in emergencies.

Gabriel Thank you very much bill of course, thank you.

And you hear me okay.

Okay.

Perfect.

I just wanted to I would like to meet you William Lee. This is my very first quarter too.

Kind of like what would you call. This.

Our town Hall, our Monster meeting that everyone told me not to do.

Really the Townhall exactly it slipped my mind, maybe I'm nervous on Starstruck anyway.

A few notes and so that I Ryan stopped laughing.

I saw that right. Okay. So here we go.

The new retail Investor I've, just recently put a little bit of money and I think you guys.

You are welcome and I'm, hoping to be on the team soon have been inquiring on Linkedin on several of your posts, you're probably going to take on the spammer weird out, but I am looking for technician job that I've worked with ADT and I've also I can help get accounts I can help with the tech side Thats pretty much where I'm at.

That said I'm not looking for a response right now and just throwing that out there.

Also I've been seeing on the job site on Huron nights scope Dot Com, let me just double check the only three openings say development operations engineered product. This production assembler and QA engineer am I missing something is one of those.

<unk> that I'm looking for say like a technician training.

Open to entry level training or do I have to have some sort of degree to say work on your products that sort of several questions about kind of that sure.

<unk> nightclub dot com slash careers.

We try to only post the ones that we immediately need.

<unk>.

Sure.

Recruiters and posting staffing go fishing basically for lack of better way of saying, Okay. We don't do that too often were.

The ones that are there we have to fill like now.

We're one of the key ones that we really need to now we're kind of scaling up.

We're really looking for a QA engineers is kind of holding up the process.

Joey Troubleshooting right Chuck so.

So we just we just filled we just filled the position I think that might have been suitable for you.

But I want to caution you on positive and negative side.

Positive side.

Job postings change often so be sure to everyone listening in who has a friend relative or someone that.

Things change over time.

Like any other company, we have turnover or growing or we're setting up a new department. So it changes often on the flip side because we've got majority of investors here in order for this to scale and get to profitability quicker we have to be highly sensitive to head count goes adding more and more heads is just more cost that we have to cover.

And so over time, we want to make sure that the resources that we have in place, we're getting as efficient as possible yes.

Yes.

Wanted to add the experience of being at 80 team as an account manager territory manager for six months I believe Brian the pandemic 2020 that was right when I left because of the new robotic stuff, that's coming out DIY cameras everyone's basically now try to do things themselves either as a security background.

Physical security Youre robots, and maybe not yours exactly but robots are already displacing our jobs, what I told myself was I'm not going to be displaced I'm just going to maintain these robotic.

Security apparatus is whether they be a battering station or a camera system whatever it is so my thoughts to get into it now early what would you say your.

You're right I have I have a different view Gabriel.

Again, we have a lot of new investors, which we're grateful for.

Some quick math.

The country has maybe a $1 million and have security guards are about 1 million law enforcement professionals. So that's $2 5 million humans running 24, seven you can't triple shift the humans.

You have 600 odd thousand humans at any given time trying to secure 332 million Americans across 50 states the math doesn't work.

So I have a huge push back on the media Society in general is saying that all of the security robots are going to displace always humans.

Sorry, but parameter ism has a two trillion dollars negative economic impact on the U S. Every single year.

As I, often say its a hidden tax we all pay in blood tears and treasure and we are in a 46 presidents the countries well over 200 years old and no one's fix the problem and part of it no. One wants to say, we don't have enough officers and guards to do the job. Its just that simple, but we need to do is give the officers and guards.

More eyes, and ears and tools for them to actually do their job. So I am not in the club of.

We're going to displace officers and guards there just arent enough there are other parts of the robotic.

World that that actually would be truthful.

But.

And disagreement on this one.

Theres not enough guards, because they don't want to like at my most recent post at Adobe and San Francisco, which I have this kinetics of write down I can bring them over to show you. The curve that I was there they have guards getting paid $25 an hour to just simply stand and entry check people with their badges I'm sitting there a guard getting paid.

Five an hour I just want to die I hate this job. So there are guards out there. They just don't want to do this robotic work that one of the Fairpoint Gabrielle because if you look at the employee turnover rates on regarding companies.

100% to 400%. So every 90 days or every 12 months you got a new team because everyone gave up one.

Because you didn't give them the tools for them to do their jobs properly alright, or their job was a job for a tool for.

So that's all I'm, saying is I have the experience in the industry to know which jobs are which are.

Which uses these recovery I'm going to we're going to move on and we've got a lot of investors that have investor questions. So thank you for spending the time and thank you for the kind of interest.

Brian .

Hey, Bill How's it going long time, no see how are you Sir excellence doing excellent first I want to congratulate you on a very nice quarter.

First half of the year.

What people need to realize is nice scope, while you had a long history here of startup and during that Youre going to hit your bumps and bruises, but it's nice to see a ramp up projector. It in revenue and obviously lowering the losses as you know what's funny Brian .

Tesla and Spacex are still called startups.

It's mind blowing to me so I don't know what year, one decade or $1 billion, we're going to have in the future of.

Topline revenue that we still have because of the startup but go ahead Jay. Thank you. Please zuckerberg mask cage match that got called off was going through the slide that.

We'll move on.

I'm, just going to kind of rapid fire a couple of things because.

Two sizes of the ninth scope business, there's the AI autonomous EV intelligent driven robot side, and then obviously the case cell tower.

Stop using word case, okay, what we call. It <unk> <unk>, we'll go with <unk>, but I mean, it's all security.

And it's all different layers.

Any update on fed ramp on government security.

Clearance approval.

Yes, hurry up and wait alright.

For the rest of the group, Brian because I think some people don't know veteran base.

So we're two and a half years now into a nightmare cyber security review with the U S Federal government.

And this is frankly not just the cyber review it's.

Loosely how you conduct business do you have the right controls.

Et cetera.

The process itself is somewhat complex.

The multitude of parties involved makes it more even more difficult.

I think I can say that all parties involved are actively working on it.

I am personally still hopeful we will get the Ato or authority to operate before the year's out.

Bye.

We've gotten indications before and now until that's done I don't believe anybody or anything.

But the need is there are sponsor of the U S Department of Veterans Affairs is still.

There, we're working through it and I think for our medium and long term investors. This is a huge opportunity because the U S. Federal government is certainly a lot more than just the department of Veterans Affairs.

And I think it's significant because youre already approved in the General services administration GSA schedule.

I believe.

Which streamlines the procurement process for government to enter into contracts with Knight scope.

But obviously getting the.

The cyber security or security clearance is paramount.

Real quickly because I know other shareholders want to ask questions anything on New York and a preliminary thing on New York or I mean, it was phenomenal seeing the entrants coming into the city.

As a former new Yorker.

That's the city that doesn't sleep and SSAT that needs needs some crime prevention.

My team and I have killed ourselves building. This company from scratch over the last 10 years, and we've got a lot of ups and downs, but.

I got to tell you that as that police escort into into Manhattan, with the NYPD, having us bringing all the robots into times square a few months ago was certainly a highlight for me is like.

Literally cereal I still can't believe it happened.

I don't want to say similarly.

But in a lot of ways.

The city NYPD and other.

<unk>.

Government agencies are involved.

We're all actively working on it.

The machine Thats due out to ship hopefully at the summer.

To our clients in New York City is.

Patrolling and.

Going through all its testing and we're just waiting for the <unk>.

Go ahead, so again similar to.

To the federal government, we are a hurry.

Hurry up and wait.

But.

Everyone there.

At City Hall, NYPD and the affiliated agencies.

Our certainly are working on it.

Hey, folks if you are not speaking you need to go on mute, please I'm going to mute everybody and Brian you need to.

Are you still there, yes, alright, and then real quickly to two last things is on the hemisphere I saw that a pilot was launched on that.

Or do you expect those to be shipping and deployed in third quarter or Q4, and I also signed up for the bond offering.

From the last meeting, but have not received anything on that what can you update us on the status of that thank you. So thank you. So we've built a lot of K one hemispheres, we've got a major.

Global Hotel hotel chain take.

Take the first couple.

Rightly so one it's a brand new products. So we wanted to kind of go put it out in the wild and see what happens before we start shipping some other ones.

So we're kind of in the last bits and.

Hopefully here, we will get the green light soon.

Search ship in the balance of the orders that we have for multiple clients across multiple.

Verticals.

And then we will start kind of pushing hard on.

On scaling that part of the business up for those of you not familiar the K one hemisphere is our lowest.

Price point.

Machine come.

Coming in at 75, an hour it's going to be.

Very difficult for us.

Hum community leader and administrator, a school principal or what have you to.

Answer the question Hey, if your people are your most important asset why aren't you using the latest technology to help secure them.

So.

We're working on it we're excited on the bond for.

For those of you Havent gone through this process of using a Reg a plus tier two.

There is a feature called testing the waters or TCW and that allows an issuer to kind of say hey, we're thinking of doing this here roughly the terms or the facet of what we're trying to do or is there anybody interested at the same time, there is a bunch of regulatory <unk>.

Mayor paperwork that needs to get filed and Theres a whole SEC FINRA.

Type of review besides all our internal stuff.

So we've gotten a good amount of interest so we're in the process of getting through all that regulatory work.

And then once the offerings qualified we will be reaching out with all the details of all of the people that have expressed an interest thus far.

It is a waitlist.

For those that would want to participate.

And we will certainly try to fill those orders first.

Before.

Sharing it with others, but.

Literally the work is in process.

Well I appreciate it and it's good to see that you guys are going to go after.

Companies set up a website and spread potentially false and misleading information I know that takes away from the team's focus but you have a fiduciary duty to protect the shareholders and to go after very misleading very old information.

The.

As mentioned.

Markdown the stock price and again.

Got to focus on.

Being long life, so shortly the criminals and staying on mission. So thank you very much. Thanks, Brian Thanks for the questions good to see you.

Mark go next up.

So have you been there.

Sure.

I'm a I'm vertical so all is good.

Okay.

Upward and onward, I guess, yes.

Actually a couple of my questions already been answered, but I do have two additional ones. So first question I have is have we had any other significant interest and other analysts covering the stock obviously, we had the one from a Sunday.

We know what the rating wasn't what their price sorry. It was has there been any progress there with additional analysts covering the company.

I got to be careful how I answer that I think I can say that.

<unk> been keeping numerous analysts up to speed since the public listing.

Small shops big shops.

Some funny conversations that I think that when I probably can share.

Yes, there are people that I'm keeping up to speed.

And hopefully and I don't control these and we have no financial entanglements or arrangements or anything with anybody else. So it's up to them when they decide.

If they're going to write something.

But.

A couple of little anecdotes that I can share.

One particular, Anna some excited about.

He spent a lot of time in public safety and security and I don't have to spend too much time explaining.

So I'm hopeful that he ends up.

His firm ends up writing something.

The funding one for me was on a different analyst was having a hard time where to place night scope.

And I always find it really humorous highly highly sophisticated investors, sometimes do though.

Dumbest things like we won outsized returns it doesn't look like anything else, but you need to fit in one of these seven buckets and it's like.

If you want outsize returns like it shouldn't look like anything else it should fit in any bucket in the first place like you have a logic problem.

But they are trying to figure out like do we put you in autonomy.

No no no we should put you in security no. It should be public safety no actually should go into robotics actually it should be and drones.

Can't figure out where to place us, which I think is hilarious.

But hopefully that firm ends up picking up a spot for us and ends up writing something so mark I don't control. These folks all I can do is <unk>.

Continue to improve the financial performance of the company with the team and can keep telling our story till.

So we are blue in the face.

No that makes sense to start staying on point for long term as well too and whatever you can't control. It is what it is.

So I guess part of my question was prior to the IPO I know we've had commercials on CNBC and we've had guest spots on CNBC are there any plans or anything to do that I know, we have to be mindful of spending and cash burn rate, but has there been any interest from there to try to continue to tell the story.

More of a platform like that.

Ooh Hot button.

So internally that's been extremely controversial.

I try not not always successful, but I try to be a kind of consensus builder.

Internally as much as like as much as I can.

But sometimes you've got to kind of overrule people and just go do stuff.

The first time, we ever did that was thinking.

2017, or something like that and everyone that.

Could yell at me, we yell at me.

For doing that and I still would do it again.

So I would love to have the marketing budget to go do that but I also need to be careful with that.

The dollars going out because we really need.

To get to profitability. The one thing that a lot of folks fail to understand on advertising.

In our case.

You can get a two three or four fold return on investment.

Maybe you get a client or new clients, maybe you get a recruit.

May be you get an investor.

Maybe you get a chance to build the brand right.

And it's not just Oh, let's just spend in there we get extra wide or not.

I think one of the more successful things that has worked Marco is the robot roadshow.

I think we're getting close to probably 100 stops across the country or somewhere near that certainly over 80.

And Thats gone really well because.

Theres only so many zoom calls you can do theres only so many videos you can do is like powerpoints that youre going to go through people want to come touch see feel get their questions answered.

And that was another controversial one Mike it seems like you want to do what I'm like yes, we're going to get this huge aquarium when we're going to stick a bunch of robots on it and we're going to truck it around the country.

Sales losses mind.

And thankfully the team went along and it's worked out really well.

So we want to we want to continue that and that's certainly much more in.

In some cases effective but always.

I always have the right to.

So go do some some fund stuff in the future.

So that makes sense you could probably combine the two potentially with a larger platform such as CNBC or a larger national global platform with a robot Roadshow I don't see why you can't combine the two scenarios now you're trying to get me in trouble.

Okay.

I'm just throwing that out there I mean this is a comment that subsequent another question but.

Yes.

My last question I had was with additional devices being added to our network.

Now with <unk> devices being added I guess, what do you see it theres always risk to either hacking or compromising security of the robots to I guess what are the chances on and this is hypothetical robots could either be.

They're able to shut down or not work the way, it's intended and what security I guess strategies in place for the company to prevent that as the network grows along with the infrastructure.

So three or four comments Marco one is we typically don't spend too much talking about cyber security stuff in public because that in and of itself can be a breach.

Just think about it.

Second one of the reasons, we have a machine as a service kind of approach is where those assets are ours, they're on our balance sheet, we control them.

As opposed to someone has a robot that they didn't want that they bought and then a sticker on ebay and now whats the likelihood that someone's going to take it apart and start messing with it right. If we've got.

Control over the asset.

You can minimize the risk.

Remember everything is <unk> every major corporation big small governments everybody's been hacked so.

To say that will never ever happened. It just is not.

Reasonable.

I think the third thing is if we didn't have the basics.

There is no way, we could have law enforcement agencies as clients.

Hospitals as clients financial institutions as clients. So you've got to assume we kind of got the basics right.

And then the last bit is the back to the federal <unk> question.

I am hopeful that once we do get the Ato when and if that happens the authority to operate with the U S Federal government.

That is going to help with that question and also help with the incoming clients are like well.

You need to fill out our and this literally happened.

2500 questionnaire cyber security survey.

And almost every client that we come across has some sort of survey.

For us to go fill out and we're hopeful.

Not always going to work, but hey, listen the U S. Federal government's using it exactly what other question or you think youre going to ask us after we've been through a probably by that time more than three years working on it and.

A pretty penny spend but.

I think those probably are.

What I can say publicly.

No that makes sense I just.

Just some clarification. If you can of course, we can't say anything that obviously it makes more sense to not say anything no I appreciate it bill, but yes. Thank you kept for all their hard work and the team is doing and looking forward to the rest of the year and going forward. Thanks, Marco Thanks for hanging out with us.

Sure.

Now we got trouble.

Andrew Perini Rune.

You're going to have to come off mute.

There you are.

How are you.

I'm good I'm, good I'm happy to.

Speaking with everyone because.

I think some people don't realize this job is.

Being the CEO founder of any company is brutal.

Absent sometimes it's good to just.

<unk> talked to some normal humans and talk about so well.

You'll have me.

[laughter].

I don't know if you know this but I'm a huge fan of Knight scope.

I've heard through the great Brian Andrew.

Yeah. So.

So.

Just about every single question that I had was already answered.

No.

To expand on one.

Wins.

When the Ato goes so I am not saying, yes, I have seen one.

The implications behind that I would think.

Huge.

The government is no small outfit so.

Okay.

Potential for.

<unk>.

For every single aspect.

That.

From the Army Navy.

And all the ports in the warehouses.

How would you be able to.

Cope with a really large order.

And would you be able to get.

The government too.

In best in the.

Manufacturing of that order. So you don't have to port all of the cash.

Yeah.

So certainly agree with the premise of the question.

As a number of senior folks with Tony.

Getting your foot in the door with the federal government is nightmarish, but once you're in it's kind of hard to get kicked out.

I like that.

And I think we can genuinely help I spent a lot of time with a lot of agencies and a lot of senior officials.

No we can home.

Also want to caution that as we've seen the federal government moves.

On a different time.

Okay.

It needs to be.

A little caution there.

Manufacturing and financing I don't worry about.

Yes.

First thing is we have financing facilities.

To get orders.

Funding and the like.

So I don't worry about that too much I, even will I'll go as far as to say that because we're publicly traded now we have a lot more.

Different access to different parts of the capital markets to.

To finance that kind of stuff so.

That doesn't worry me, it's just work.

Second.

Today, we do mostly.

Light industrial assembly of the machines. So it's not like we have a bunch of heavy.

Equipment, and conveyor belts and all those other crazy stuff that we need to go.

Back in Detroit, when we would when I was.

<unk> build cars or whatever it would take forever to scale out of something right. Because you got to go order in whatever tool is 912 15 18 months, we don't really have that.

What we need is warehouse space and labor.

I don't worry about that aspect of it.

Especially with the new fifth generation K five.

That one today the current production machine you probably heard me say it takes a 100 120 hours to build one new one it takes us less than 20 hours and we're laying out a.

Smaller assembly line to actually do this at volume.

Right.

Right.

Sorry, if you are not.

This is my court.

Yes, I'm going to meet everybody again, and Andrew you got to come off of mute.

So I don't have a.

I don't have a big worry and then.

Not to be funny about it.

The federal government acts very differently than the private sector. So we likely would have time to ramp up as opposed to you need to drop ship me 1000 robots tomorrow.

So I think I think we'll be we'll be fine I don't I don't worry about that too much okay well.

If you are not worried.

So.

It's only it's not it's only because.

There was a point in time in the company growth, where we didn't know how to get from <unk> like I don't know how to do that I don't know what innovations required to do that I don't know how to build that all staff all the problems that we have including new problems that can come up.

It's people cash in time.

It's not like it's not solvable, we've never done this before I've never.

In Detroit.

Building a plant that less than 100000 units a year is an anomaly that's the weird thing to do right.

300000, 500000, as the normal thing to do.

If we get if and when we get to that part.

That's.

Well Blaine travel worldwide, Pat I'll say.

Q and solve anything all it is as a matter of time and effort.

As a matter of fact, the license plate on my plate on my other car says I solved so.

And I.

<unk>.

Since about 1989, so and what's the other place say Andrew.

Nate scope.

A N G H T C P.

So for those of you on the call that saw the social media posts, who texted me.

They're crazy license plate.

Art.

Mr. Andrew here.

Did that.

I don't know who else is in Jersey, Connecticut, Maryland, California, Texas like everybody has got to get their own play otherwise the type of work.

Yes.

And now what.

Im saying well.

Stock price has just.

So we're just not going to be because I am going to have people using it but <unk>.

In time I have no idea what that feels like Andrew.

Yeah.

I'm sure you do.

Alright.

<unk>.

That's it so.

Upward and onward.

Thank you Andrew good to see you too.

Thanks.

Alright, Andrea Andrea.

Andre It nice to see you nice to see so it occurs to me and looking at what you.

So this in the beginning it sounds like they came when the opportunity is the stalwart right. It's the one that can be enormous like every free way every.

Every.

Government every courtroom everything that needs a stationary.

Security.

And posting would be able to be in that round. The retina retina robotics that actually knew they can take around the company the country isn't that a little sexy ones right. Those are the ones everybody wants to see how they work all of those things.

Things that can be station.

In courtrooms universities.

K through 12 on.

On the freeways that sounds like it's the much larger opportunity for the company and if I'm understanding what you showed us just in the last quarter.

That's a new product line eight exceeded the rabbit the gross revenue.

For the mobile units did I read that correctly.

By about 300.

Right, yes so.

The way I look at it is kind of what I said earlier.

Criminals and terrorists can be anywhere.

I think when we're all said and done.

Don't know if it ends up being a dozen two dozen or three dozen different kinds of devices of all shapes and sizes.

That.

Need to be able to operate both indoors and outdoors I think youre right in the short term.

One of the attractiveness of.

Of the.

<unk> was.

Very strong installed base.

1000 of these already in the network.

For us.

Second the continued growth.

And the associated margins, we said that the acquisition was accretive in its certainly proving out.

I think theres, a bigger step that where I'm focused is.

Those 7000 inclusive of the mobile robots that will continue to grow over time.

We need to do a major overhaul and upgrade of those and Thats where to me gets really exciting in the short term, yes youre correct.

<unk>.

Outpace the ASR side of things in the short term, but I think in the long medium to long term doing a massive upgrade of the existing ones that are out there is going to be a very exciting business for us to think about and it's kind of combining the AI capabilities that are in the autonomous <unk>.

<unk> robots and then some other things that we have planned.

Imagine if those 7000 devices could tomorrow.

St Tomorrow, but in the future.

If all of the 7000 hours devices and growing are able to see feel hear smell and speak and not just make the phone call.

Or alerts from one.

The acquisition.

One way to look at it was a little bit of a land grab.

So imagine.

Our to pitch you today like Hey, we want to go put 7000 these devices across the country.

There is a bunch of department of Transportation City Council municipalities permits in licensing that we need to go do to go stick that thing on the side of the road or at that location.

I would say bill you're out of your mind.

There is going to take you a decade to do that well. It literally took the acquisition that we made a decade or more to go build all that stuff out.

But what if we could upgrade it.

And have it have that much more capability.

To me that gets really exciting so I want to I want you to think about both growing.

And yes, we're going to be changes here and there.

And also just to note on the robot Roadshow, the <unk> b.

A majority of the those devices are also included in the robot Roadshow. So we're not just running around with the mobile ones, but.

I think overall just I just want you to think about being able to cover every aspect and then there's probably not probably there are numerous things that we could be doing that we don't do today. If we had additional form factors and additional types of products, but that's why.

Some folks get animated and some focus really annoyed with me when I say that.

Two or three decades worth of workload in my head.

There is a ton of stuff for us to be able to do and why I think long term.

We can if we work together build a $30 billion company that in the end it looks like a I don't know it looks like a defense contractor.

And less of just a security type of device company.

Actually I had one more question on that front because that was exactly what I was thinking about it.

As the fed ramp approval that whole process once that is approved.

That then lead you to be able to tap more military application in connection and even allow training to be done with military people on how to become.

Employees in your workforce to help deploy these I'm just trying to understand how you can you clearly need something that can help you mushroom out your ability to service install maintain.

If youre trying to go.

That 7000 goes to 15000 goes to 100000 that that's a nice shrimp.

I think I need to parse your question into two different answers.

On the recruiting side of things, we do have a lot of veterans on our on our team and likely will continue to do so.

As we grow.

And in a lot of cases it's.

A really good fit so we're continuing to be honored.

Having those it served continue to serve the country in a very different way.

But I think thats completely separate than the scaling sales side of things so.

Parse what you said, let's say, we get the fed ramp Ato tomorrow.

So obviously, our sponsor is where we're going to be focus first the U S Department of Veterans Affairs.

Each federal agency.

And all of the alphabet soup.

Folks.

Each have the authority to either except with the VA did with us or ask us to do something completely different so I'll go out on a limb and say I don't know.

The U S postal service the social Security administration may be the department of interior maybe Nash.

Maybe customs and border protection.

Maybe the GSA and maybe the federal practice protective services.

Likely I won't say, 100% likely you would consider at least accepting what the VA did with us.

Completely separate.

I think if we go spend some time with the Pentagon.

FBI NSA, CIA theyre likely to put us through a completely different process or have us amend what we did.

But I think the first step is just to get your foot in the door.

Because remember a lot of government officials are there.

Theyre not risk taking entrepreneurs.

For those of you that are little bit older generation like it was always the safe bet.

The higher IBM right, because youre not going to get fired because of that well it sounds funny, but it's kind of a little similar.

I know that there are folks sitting there going but let's see how it goes over at the VA Oh look they've got a couple of dozen out in the VA, Yes, maybe it will go and try them over in our department, that's likely whats going to happen.

Especially I Havent spent a lot of time with these folks but.

Hopefully that more full answer it gives you a better perspective.

I think honestly I see that the nascent Lockheed Martin just in a different.

Way.

In the security World that Lockheed doesn't exist without government contract Yep.

Alright.

It's really weird is we give the soldiers the $2 5 million soldiers out there every level capability, you might ever imagine and Theres, a Lockheed and Northrop general dynamics to build them whatever they are soldier needs in a theater of war.

On our own soil, we don't do that and it's infuriating to me like you would never Dare take a soldier out of combat put them on some city Street here and go Here's a number two pads on an OPEC. Good luck, Mike you would never tolerate that.

That's literally what happens today, that's what we do to officers and that's what we do the guards, we don't give them a capability and what's really messed up as the department of Homeland Security and the department of Justice don't have processes and don't have.

Federal jurisdiction over all of these law enforcement agencies was 19000 of them in 8000 private security firms and there is no <unk>.

The Lockheed going to build a bunch of crazy new stuff for these officers and guards and that's the company that I believe personally is likely to be worth.

10, 20 $30 billion, but we need.

It was a nightmare to get this company built over the last 10 years just to get it to this point, but it is literally the first inning.

Okay now you've proven that this kind of stuff works and how you got to start scaling up and growing and with all the growing pains that go with it but long term I think.

Allergies correct.

Thank you very much I really appreciate your answers of course.

Warren.

Hello.

Indirectly addressed the.

Fed ramp Ato okay.

Add another.

Layer onto it.

The implication has been that we are framing it in terms of months not years is that correct.

From what I know right now and what we've told the public markets.

And we put in all of our regulatory filings, we are still hopeful that we get the Ato during 2023.

I don't have any other information that I could or would dissuade me from thinking that however, I will put my own personal footnote on there.

Because we've been through up and down left and right and everything else like a deal is not a deal until it's done so I'll believe it when it's done.

But right now that's our best planning assumption is the.

Legally the best way to to answer your question.

Thank you.

Hey.

Alrighty.

S J.

Hi, everyone.

Alright.

Hi.

I know when you're talking about I mean nightclub.

For the first thoughts there around its kind of Robocop right. It's kind of matched rally you would think.

And for my mind anyway, the real deal for us too right. So I'm talking all of that if you come to evaluate you added.

So you mentioned about the relevant road show that if people want to calm steel and steel.

So I took from your statement.

Talking about Chile.

When it comes to public safety apart after all of this fairly heavy.

Particularly profits fed ramp expires.

My question is more how long or upper level figured out government fields.

How about the night scope projects My question is like do.

They had seen.

Are they did they touch it.

How they react.

And the last question is like is that I'm not thinking about the numbers itself that the process, but how they steal because at the end of <unk> everybody.

Everybody will bleed with volume.

Right right. So question to be more straight when I comment about it for example, upright lateral Fidel a woman does for example, Brendan.

He knows about night scope mission he knows about the hub.

How's about this dealing with the upper level.

Do you have anything to share.

I can tell you is the story.

But I would like to caution with cabinet members or people in the White House don't make these decisions.

So you need not kind of the focus there you need to focus on the person with the pen or at the keyboard that can actually stroke a contract right.

Having us go.

In my prior life I've had.

Enough people at cabinet level position advise me in helping I spend way too much time in D. C. So I kind of know how it works.

To an extent.

Probably the best way to answer your question is with a little story.

So we spent more than two years talking to alphabet soup of federal government agencies.

Chief procurement officers, Chief security officers people and facilities.

TSA.

FBI, the Pentagon customs and border protection.

U S Postal service Social Security administration Federal protective services, so federal protective services.

15000 officers and guards that try to help secure the 10000 federal buildings at the GSA manages and and this is not like one conversation.

We spent a lot of time.

And to me the most humorous part that happened, but also answers. Your question was after spending a couple of years with all these folks on zoom calls and talking and emails and this that and the other thing.

We literally sent the robot Roadshow to Washington D C and put at the Ronald Reagan building and had a bunch of.

Folks from Congress and.

Several agencies come and touch and feel actually I think we might have done this twice twice.

Thanks, Stacey and.

Uh huh.

But I can I can how do I Express this is.

Hilarious for me to see a bunch of very.

Professional.

Conservative.

On a normal par a normal use of the term.

Buttoned up ties everything all very serious come.

Coming to the pod.

See the robots were on the screen. So we can hey, nice to see you again, what do you think.

Three five minutes later, they will turn into a bunch of little kids, it's like Oh time for robot Selfie I can't wait to show My family can't wait to show My Kid.

And as that happens all across the country and that's why we keep doing this is because.

You might have heard me say before Hollywood has done as a service and into service over the last 30 years People's expectations of what the robots can do or what they will do to US is up here somewhere reality is like down here somewhere.

And the easiest way for us to go well.

Just simply introduce yourself properly hi. This is what we do this is why they are here do you have any questions.

And when I had discussion with the folks in New York City.

This is probably the strongest council. We can give them was you can't just drop a bunch of robots in the city and think it's going to go well youre going to need to introduce the concept to the media to the community leaders to the folks in government and other agencies and to the officers on the ground.

And then once people get a chance to meet the robot like Okay. It's not going to bite me, it's not going to attack me.

I understand what it actually does that makes sense all in favor Aye alright, but if you don't do that step youre going to cause all kinds of problems and so we get criticized for having this robot roadshow coming around the country and people don't understand this because they've never no one in the history of mankind.

<unk> has ever done this before.

At scale ever we're in Unchartered territory, Youre, asking an entire country to change the way the entire public safety law enforcement and security apparatus works right youre not going to undo that with like a powerpoint in a zoom call.

And so.

Long winded way of saying.

You got to have a.

Personal touch to this.

In order.

To effect change and that's literally what we're doing on this call today right most of them, but most publicly traded companies microcap nano cap companies.

You do an investor call like this you've got 10 people show up <unk> 20.

When we started this call we had 200 300 people signing Mike.

You have to be able to communicate and answer people's questions. So they can better understand and change how they feel exactly what you said about the technology.

Well.

Thanks, very much I mean, I would have two other questions, but in respect to the other colleagues here and most of the time.

Thank you very much absolutely.

I've done dozens of these so theres never a last question I will stay here as long as it takes.

So Francis can go next.

Thank you Jay.

Okay.

Yes, Hi, Bill.

First of all May I explained the difference between human guards of robot guards.

Audience.

I used to run 200 yards in Chicago, and the Chicago suburbs.

It was my first year in the business, So I've got a pretty good.

Standing post education.

Human guards.

Basically if you have a good human factor manage about.

20 minutes of every hour.

They need that time to recover enough strength to get through an eight hour shift or if need be a 12 hour shift or sometimes <unk> or even 24 hour shift.

We it doesn't show up.

So one third of the time.

They are not control it.

Yes, they've got a standing guard.

Bob.

The K five doses of controls.

So the K five.

The advantage over a human guards in that respect, but it cannot make a decision.

It's not smart.

We are.

It started Frances we've got a lot of folks with their hands up if you wanted to get to your question.

You want a question okay, well if you can get to your question would be would be great alright, fine what's happening with the Scout program.

What's happening with the scale program.

Stacey.

I am here.

So Stacy if folks haven't Matt is the executive Vice President and Chief client Officer.

And has joined the call unexpectedly, but I'm going to pick on him to answer the question.

So thanks for the question Bryan from C&I converse quite a bit actually on a regular basis. So for the rest of you who are unaware the scout program is essentially a referral program against anybody.

Who has contacts.

In places, where they may be an influence to an end user.

It gives you the opportunity to capitalize on that.

The tune of $1000 if.

The connection with that person leads to an actual contracts and so we have had.

In excess of 100 people sign up for the Scout program.

I'd say, probably a couple two dozen of them have provided leads that we can actually follow up on.

And to date to my knowledge unless I think Mallory is also on unless she knows of one that I don't.

We have not yet closed one of those sales. So what happens is it's not a sales program. We're not looking for people to go out and cold call people and <unk>.

Communicate what the night scope mission or goal is or what our products do.

Hey, I've got a friend he is the Chief Security officer over at X shopping mall our business.

I was telling them about your I'd like to make the introduction and then you sit there and continue to poke your friend and say how did you get those robots yet to get those robots yet until they decide okay fine I'll give it a try and we will we will sign a contract.

But thats kind of where we are with the scout program. It has actually yielded some leads and some context that we can follow up on that.

But it is not it.

It is not converted into a sale and yet to my knowledge.

I think a lot of to be to be fair.

To those that are trying to help the sales processes kind of normal <unk> enterprise processes.

I don't want say on average, but you're probably in that $3 six 915 months.

Type of timeframe to get a deal done.

And Theres a lot of things that go into that but.

For those of you that have signed up those additional warm leads.

Helps us continue to grow so we're we're thankful for that actually.

If I could real quickly so just to put it put an exclamation point behind what you said a lot Francis and you in particular have given us some of the bigger institutions to follow up on.

We just.

<unk> had our second big major meeting with a large city and that that relationship actually originated in 2014.

We have gone through now literally two generations with that city because the person who brought US originally his son is now leading the effort now in that.

That potential clients, so those bigger opportunities take vastly longer, especially if you get into governments or city governments local governments and the like.

So they will take some time, but.

Again, those leads are incredibly valuable.

I think to finish that up one thing that hopefully the numbers reflect were.

<unk> got more into a rinse and repeat.

<unk>.

Mode in terms of the overall marketing and sales process, where.

Years ago.

The case.

So we are fine tuning and things are starting to pick up as you've seen through the numbers alright.

Dara question second question, Oh, Sorry go ahead.

What's your next acquisition.

Not something that we would have nothing to announce at this time.

So you have one.

We have nothing to announce at this time.

And the strategy remains the same as when we went public and we think over the long term.

The company in order for us to reach our goals is going to need to grow organically.

But also through acquisition so now.

Two dozen companies in my life.

The first one that we did last year.

<unk> proven to be a good solid one.

And we're always shopping I think a different way to answer the question would be what are we looking for.

And certainly topline revenue.

That's.

Going to be exciting for us to accelerate our client development it could be a technology.

In some cases rarely but a possibility it could be <unk>.

We'll hire type of situation.

But we have nothing announced at this time.

Thank you.

Thank you.

Daryl.

Yes, good afternoon.

In early July we saw a very significant increase in the value of the stock hitting a high of almost or a little over $2 I think at one point.

As an investor I of course, I'm very pleased with that but in your opinion, what do you think drove that big Spike.

Hi.

I think if you missed it I would encourage you to watch.

The annual shareholder meeting I think but maybe a little bit too much time, explaining what goes into a stock.

What.

May or may not contribute.

Things. So if you haven't seen that I'd encourage you to go check it out Nitro dot com slash rice at the bottom I believe its episode nine whichever one it says the annual shareholder meeting that we had less money.

And literally go through in detail because a lot of investors of ours don't know how this works or what could provide pressure and what can provide.

Upward support so.

So I'd encourage you to go watch that.

Probably not a good idea for me to comment on what I think specifically.

<unk> made some changes for that particular <unk>.

Time period, but in general I think it would be okay for me to say that.

Kind of what positive things happened well in roughly during the summer.

What happened, while we paid off.

Extinguished $6 million worth of convertible notes that were somewhat controversial for a lot of folks in our view.

Conversions were putting significant downward pressure on the stock.

I think having our first analysts cover.

The stock.

Also helped.

I think us continuing like Clockwork every week I think almost every week, one or two material announcements I think we've probably made well over 50 major announcements in 2023 alone probably did some good <unk>.

Announcing new deals or technology, we announced the automated automated gunshot detection capability that we're hoping released during the fourth quarter certainly contributed.

And.

<unk> spending frankly, a lot of time through these town halls communicating what's going on in having support from our investors.

The simple math as more people buy shares less people sell the price goes up.

It's not that complicated, but it also can be very complicated.

Not commenting on that particular period, but in general I would encourage you to watch that video and give you a little bit more detail.

Great. Thank you I was also really excited to see a K five deployed in a local home improvement store I shop at.

Yeah. It was patrolling the parking lot and I saw that and got all excited but I don't know what that is but great.

Great I appreciate that.

That happens a lot more of these days, which is.

Think exciting for all of us.

Because in a lot of cases.

We haven't met personally or you havent seen a robot in real life and then.

To make an investment in <unk>.

See that in the real world like Holy Cow.

I love getting those emails and texts and messages and what have you.

People doing the robots all fees and what have you.

Is invigorating I mean, it's very cool.

Great. Thank you I appreciate your time of course there.

Tash C.

Hi.

Good afternoon.

I have a question about competition, so I'm not super familiar with that.

You know that.

Securities to us industry, but I know that there are.

Several of our larger technology companies. They're also working on you know robotic solutions for different purposes.

Some including some well known companies so.

I Wonder how you think about your.

Think about your competition, both current and future because.

What could that be could there be a scenario where.

Other companies with.

You know larger resources.

A robotic product that can be even though they are not currently deployed in.

Uh huh.

The securities industry that can be also.

Multi purpose.

Until <unk>.

Providing this similar product that you're providing so.

How do you think about that.

It's already happened and they failed.

The easy answer so.

I can.

Give me a story just to make the point.

Back in 2013, when we started the company we pitched our hearts out to have sharp electronics.

The TV maker actually.

A strategic investor of ours.

After the meeting they didn't return any phone calls E mails nothing went completely dark on us.

A few years later I think it was in 2016 ish.

I show up at a security conference and there is a sharp branded outdoor security robot sharp had invested over $35 million to build a product literally compete against us.

I think after all that they sold one to the Indianapolis Motor Speedway in 2018, the fire to everyone shut the division down.

Werent able to get it done and then my inbox at the time was full of sharp resumes.

There's been one or two more other corporations that have attempted.

And have failed.

I think there are two complexities to think about.

One is the technology like I, often say this and maybe what I just said it makes the point what.

What we do is technologically extremely difficult.

Go look up the Bloomberg article from earlier this year about self driving technology and autonomy $100 billion of going into the sector 200, plus companies working on it and no one shipped anything like literally 200 teams working on something and nothing came out.

Maybe it's hard.

We've now operated more than $2 3 million hours out in the field.

And across an entire nation, probably seven winters in southern summers or something like that.

So we've got a lot of experience and we can tell you from firsthand experience that this is not easy to do.

Could it happen and someone successful sure hasnt happened yet there.

There are a few smaller partial competitors.

Are trying.

Some scale, but have been unable to.

I think a different way to answer your question is what what primary competition do we see today as opposed to something in the future.

In a weird way depending on the location, sometimes it's manned guarding is probably the the one we're up against most of the time, which is do you want to pay the guard $15 to $35 an hour.

Or an unarmed or an armed guard $85 an hour.

To patrol the area or would you rather have a remote monitoring set up with a robot to do that for seven or nine Bucks an hour.

In a small number of cases, sometimes people think that fixed cameras will fix the problem and then they realize it.

It doesn't actually work.

But.

Right now those are the primary kind of immediate competitors.

Colorado's come and try to do it would be my guess.

And I think the last comment and I say this.

All seriousness.

We want to make the U S to save this country in the World I think every American should have the right to live in a community and a safe country.

As night scope with that mission should applaud supports.

Certainly not speak ill of anyone else trying to work on security public safety law enforcement.

Thank you.

Of course.

Murray Wiggins Europe .

Bill leaves on each.

<unk> missed on some previous townhouses my first one with my wife and I. We both invested I believe it was with Stern engine, a few years ago and I'm glad that we did.

We have the.

Good opportunity to see actually one of the robot some action at a parking lot in new Jersey about a year ago.

Yes.

Yeah.

My question to you is is aerial surveillance in the cards at some point.

Okay.

Or are you going to add drones.

So I think if you take the.

I'm gonna annoying, so people the multi decade approach.

And there has to be yes, youre going to have to do air land Sea.

In the short term.

Pretty.

Pessimistic about that.

I'm going to spit out a bunch of issues and there are folks working on this I don't think that they're not working on it but until lease following issues are addressed its unlikely that we will have.

That kind of approach.

One drones.

Have a flight time problem most of our clients 124, 7%.

Depending on how much you want to pay youre going to pay.

You can stay up in the air five minutes or 50 minutes, but.

That's a problem.

Autonomous recharging.

Consistently with our low cost profile folks who worked on still need some work.

Data transfer issues can be problematic a lot of our devices are stationary and still have telecom issues. How many times have you on the phone can you hear me now can you hear me now.

Imagine running a robot $24 seven needing access to consistent.

Telecommunications.

Hum.

Our sensor payload is a problem. They keep maybe you can put a camera at best.

Theres not enough energy on the device to be able to handle anything more than that and then you want to make it worse you wanted to do some AI or edge on.

Compute at the edge again, you don't have enough juice to keep the thing up in the air Youre not going to process much there.

And then lastly in most cases, it's illegal to fly so other than that it's all good to go.

So I think once all those get addressed it is likely a drone would fly out of one of our machines when needed.

As opposed to to me I might be wrong here, but to me, it's not a product or a company that to me is a feature.

Yes, that's what I was thinking is not say.

A blind full time, but getting scrambled if there is any indications from the ground robot sing okay, I need aerial reconnaissance right now yes exactly.

Okay. Thank you for the insights I appreciate of course continued success. Thank you Sir.

Brian is back for seconds.

Hey, Bill I, just thought of a couple of things let's go.

In the presentation.

You talked about having a backlog of orders, which is actually a positive thing since basically honored and income are you are you guys kind of.

Cutting through that as supply chain issues is up.

Okay.

<unk> <unk>.

They'll be book revenue once they're deployed so where are you at on the backlog, yes, two or three points one, yes, we're making progress on the backlog.

Getting stuff out some of the supply not all some of the supply chain stuff has gotten a little bit better.

But the sales team.

Putting more in your life.

Is it a lucille ball like at the with the <unk>.

<unk> or whatever it was like it doesn't stop it just keeps coming.

In theory right.

<unk> and <unk>.

Yes, we do the following.

The backlog could end up increasing right because if you want the revenue to keep growing.

Over time, having having a significant backlog.

Could be great.

I think one strategic move we'd like to do.

And why the balance sheet is important.

I really would love to.

I hate inventory for lots of reasons, there's quality issues accounting issues or whatever but in this particular case it would be so much better to have the financial wherewithal to build a month ahead. Two months ahead. Because then we would have the.

Ability to recognize revenue that much faster right why have a client waiting months.

For their machine, but.

I spoke during the annual shareholder meeting.

The negative impacts of not raising enough capital during the public listing and that was one thing that took a hit.

Which is where we're having this backlog situation, which in a lot of ways is a great thing and you don't have a question about demand for what we're doing like millions of dollars of orders.

Waiting.

But from a cash from a turn standpoint.

From a Rev Rec standpoint.

It would be I want to get us to eventually.

Inability to get an order shipped.

And a couple of weeks instead of a couple of months.

And let me just follow up.

As kids have gone back to school are going back to school and we will be going back to school.

K through 12 colleges and universities.

I can't think of a parent that wouldn't wouldn't would not want to protect their children at all costs. When they are at one of these institutions, how do we get more installs in schools and higher education.

Overall, what are some of the barriers to entry because you're not selling a $100 and $200000 machine. It's a it's really a service so.

How do we get more schools.

Installs and what are some of the various barriers to getting the product deployed.

This is definitely a hot button for me.

Similar to the department of Justice and Homeland security of knowing federal jurisdiction over the law enforcement agencies and the.

Security companies the department of Education.

They all have honestly, obviously, some relationship and what have you but.

As a country I don't think anyone on this call whatever dare raise their hand, and say, yes, we pay our teachers properly and every school has all the supplies that they need.

It breaks my heart to see like fundraisers like we need to go buy books. I mean are you Freaking Kidding me alright, So you can't pay the teachers properly some of the schools are falling apart you don't have enough supplies, but you should buy like this six figure seven figure.

<unk> security solution.

Right.

The system is kind of broken.

So we can sit here as night scope and whine about the situation and complain and go lobby Congress and the department of education or.

Maybe we take it into our own hands and see if we can show some leadership and drive that tens of thousands of supporters that we have to go make a big difference and to answer your question Brian to me My personal view the fundamental problem is cash.

However for school can't meet their budget are you going to show up there and go yeah, we should put like.

10-K, one towers and three <unk> in the parking lot and every floor should advocate three and there should be a hemisphere at every single entrants like <unk>.

Where are they going to get the money they don't do that.

So I've given the team an assignment.

I have a particular view on how to fix the problem and if I can get the lawyers and accountants to play ball and if I get my way.

Make an announcement and then see if what we think could work to help the situation does work.

To answer your specific question.

It's a money problem.

Well just keep plugging away. Thank you Bill of course.

Alright, we're at now.

95 minute Mark I'll keep going if you want to keep going.

But anyone else have any other questions I'm scared to look at the chat Stacy let me know if I need to answer something from there we're going to go we're going to go you handle those.

Yeah.

That's all the raise their head or.

Could I answered questions.

Okay.

No Jay is back for seconds, Yeah, Yeah, I am as they have room for more questions, though here Ian So we've mentioned but.

Where are you from.

Well I'm here in Houston, Texas.

But do you have from Brazil.

All of it.

Oh, yes.

Some people.

Some follow up always the yeah, yeah yeah.

Thanks, Dan Yes.

A lot of the country, Okay. So person that I have it here.

Also have a new born coming next week.

The niche in the compensation there types of my heart.

I have a bunch of money.

7 million.

Starting to deal with but I would say abnormal.

Closing until half media right.

So, let's see I mean, I truly believe and I want to support.

But in my part here you mentioned a lot I mean, maybe what the issue is really the money ready to cash I mean, you actually from volume, which Amy <unk>.

California, I assume that <unk> reached eight there is a lot of thought.

Big companies.

What about partnerships with that with maybe philanthropies companies that is I'm talking about mining dedication of why that Brian mentioned right I mean that gets saved.

Some kind of association that it could be maybe finding differs.

So Microsoft can do that.

Any kind of a partnership going on that maybe you guys are trying with the Silicon valley. Other companies. So even tax relief relief for if are there anything that you can share about that thought.

Not just yet, but if what I have in mind works then maybe.

What you are.

Considering are suggesting.

What I get setup could facilitate that yeah, but nothing nothing we can announce yet until the study is done.

And we actually do a test or two.

But.

A.

I think it's incumbent upon us to not just so technological leadership.

If you again serious about the mission youre going to have to do sometimes be irrational illogical.

Im looking or stupid things to do just to enforce the outcome that you want.

And that's the difference between the <unk> team and everyone else Mike.

We're serious about this we put 10 years of our life into this like if you want a doubt our intentions.

Not a good place to go.

So it may not work or I might not be able to get it through the lawyers and accountants.

<unk>.

We'll figure it out but.

I hope that what we have planned works and then if it does we're going to need everybody on this call.

And all of our supporters too.

Help us.

Scalar and make it work, but we'll do it.

I promise you this how about this.

If I get it through the.

Through the regulatory legal financial process and have a plan, we will do a specific town hall on just that subject.

Will it be there appreciate it.

Yes, I am looking forward to it and anything that of course I can help I put myself on ability to support the missions up multiple together.

Got it last night.

Kevin Hines.

Go ahead Kevin.

Yes.

Can you hear me.

Oh, there you go forth okay sorry.

Hey, guys how are you all doing.

Uh huh.

Well somebody asked the question.

And I remember hearing this mentioned or Red had mentioned somewhere about.

The potential investigation on short activities. So I just wanted to pass that along or if you could.

Touch base on that.

If that makes sense.

I give you the professional answer and then the personal one.

Professional answer is as we stated in the.

In the presentation earlier, we have filed a complaint with the United States Securities and Exchange Commission.

And we hope that the SEC takes action.

We believe some party or parties have conducted themselves.

Hum.

Certainly unethically.

Possibly illegal and if it is the person that we believe it is.

They are in serious trouble.

But that's one of the investigations for it to kind of get to all the facts.

We have tens of thousands of investors I work for you.

And I need to protect you.

And I'm not going to have on my watch that kind of nonsense going on.

So the delta the personal side of things.

Today, It is legal to short of company.

It's illegal to naked short a company if you're.

That's starting now.

Nick It's Sean.

Part of what I was wondering if the.

If that's what it was just out of curiosity I don't even know if there's a way that you can tell whether it's negative or not.

Yes.

It also has a problem with shorting and in total, but the personal problem I have Kevin is.

Listen worse.

Hope everyone takes us at face value that we're trying really hard to fix a really difficult problem for all the communities across the country for all Americans Red White and Blue left right middle upside down it doesn't matter.

And so you're not you, but that person or parties or fund.

Or anyone out there shorting the stock naked or not.

For a company that's building products in America for Americans and is in the National security interest of the United States of America, you're literally placing a financial bet against the company like.

You need to make better life choices.

Is that really what you should be doing.

To help the effort.

And that to me is.

Alright.

Censor myself, because if I go off on a tangent here would be nugget.

But.

That to me is not appropriate.

Is it legal to shorter company sure I don't necessarily agree that's great thing to do like if you don't like the price of something at target.

Do you just not buy it and walk out the door or do you try to burn the place down I mean, it's like ridiculous type of financial instrument, but okay fine. It's legal today to naked short and you don't you don't have the.

Shares borrowed properly and then you're going to do this kind of nonsense like youre going to get you're going to get caught.

And so we may or may not be successful in our investigation, but I. All every single one of you at least the <unk>.

<unk> attempt to act.

In your interest.

And if it's more than one party will continue at it but not.

Not going to sit here and take a punch in punch back.

Yes.

I appreciate your comment on that I know, there's probably not a whole lot you can do.

I agree I think it's a pretty dirty in an ethical way to make money, but I know people have always.

You know, you've always had bulls and bears and whatnot, but.

But yes, thanks for thanks for addressing that.

Of course of course.

And that's yeah, that's it for me.

Thank you Sir.

Frances.

Yeah Bill.

<unk>.

Yeah.

Yes.

Survey professional investors.

We will just sell stock stock you don't know and that's worth naked shorting knows and you can tell.

Volume when you get like somebody dumping like 15 million shares.

I don't think there's that much out there in the float.

That isn't being healthy long term like mine.

Now hold 10 times the amount of shares I originally bought night scope.

And I haven't sold any yet.

Hi, My Board I was buying up 38 cents, a share and I think I'm feeling pretty good about that.

Got it.

[laughter].

So.

It's called dollar cost averaging next Oh, yes, it goes down by more.

Sorry, all day long.

Okay. Thank you Sir.

Spencer.

Yeah.

Mute button is your friend or not your friend actually.

There how's that that's much better thank you Spencer.

Been with you guys a long time very excited about what you do.

And so my question is.

<unk>.

Is the complaint filed with the SEC publicly available can we look at it.

Okay.

Yeah.

I'm going to mute everybody Spencer and then if you can come off of mute.

Thanks.

The complaint has been filed.

It is not publicly available and I don't believe counsel will let us.

Sure Okay.

It is.

To be fair it isn't.

Two official it's an ongoing investigation.

So a lot of court records are.

Our public record so I didn't know.

The complaint with the SEC was a public record or.

As an ongoing investigation, that's not yet available.

Let me qualify that statement not at this time right. Thank you.

Marie weekends.

Boy second time today.

My question is maybe a little bit off the wall.

What can the shareholders do to help you and the team at <unk>.

Kind of the reverse I know theres, an expectation of the shareholders for the company, but what can the shareholders do for you I know, there's a scope program, but what additional could be done to help you out.

So one of the things Marty I'm going to share something personal with you that drives me absolutely freaking Crazy now being the CEO of a publicly traded company for almost two years as I'm sitting here having to censor myself.

What I actually wanted to say with friends families investors partners clients like <unk>.

So freaking annoying I cant actually say, what I want to say.

So I got to be careful how to answer your question.

And so the two things that night scope that we can do to improve the share price I think our limited primarily.

Two fold.

One.

Improve the financial performance of the company whichever way, we get there organic growth acquisitions cost reduction and revenue.

Balance sheet stuff.

The more we improve and grow the company.

Financial markets should over time recognize that so thats kind of on us.

The second thing that we can do that maybe we can share.

Is continue to tell the story to anyone and everyone that will listen.

So I can't.

Any more go out and say whatever I want to say.

But I can say were listed on NASDAQ.

You're free to take a look at the the Tickers KFC P and you can make your own decision.

If you might want to consider investing in the stock.

And you and all tens of thousands of investors can do the same with your friends and family and spread the word about the good that nightclubs trying to do.

People can make their own decisions.

What they want but.

The reason is I kind of go down that path is because.

As weird as it might sound to some of you who have been with us for a very long time.

We think we spent millions of dollars growing the company with clients all over the country and we think everybody knows Knights Copays and.

I don't know how many investors I've met I don't know.

How many public safety folks law enforcement security or like.

What do you do.

Never heard of you can you tell us what you do can you show me a whole prototype when is it launching alright.

Trying to get the word out is probably the most important thing you can do so if you're in social media on X Ray.

Post re share common share.

Share with your friends, if we put out a call video centered around your family like we need to get the word out is probably the most regulatory compliant thing I can tell you.

And hopefully that attempts to satisfy your answer.

Thank you Bill yes, Sir.

Okay.

Uh huh.

Was that Spencer's old hand, or new hand up.

I've lost track now.

No I'm off Bill you're answering my question. Thank you alright.

Oh, yeah, lower your hand.

Alright, we're coming up on almost two hours.

Anybody else got a question two hours and over 100 people still on okay.

Going once.

Going twice.

I ask Jay.

Yeah.

When it come off from you Oh, Yes, yes, yes, and we would be as I say goodbye to you and everyone of course data analysts media.

At a time here, but to your goal.

One thing that I kept drift on your statement was sometimes it's good to talk with a human to human right.

As long as they don't want to talk to a robot unlike a funded.

As much as I see you as a mass steel so Martin with you all the pressure.

Why do you do I mean with the family to enjoy life. What are your what are your free time and she has a game called his name looks like I mean, you've got maybe two minutes 30 minutes that I kind of thought.

I would say a motivation for us that we are all.

Fight some some some fights.

I mean, how you enjoy.

Our fleet tightens, yet I can say.

Yes.

I'll tell you what my wife says she says.

Possessed.

And I tried to play a little guitar once in a while behind me but.

If I'm watching a movie.

I'm thinking it I've got nights go glasses ongoing all of that that looks like an interesting font.

Well, that's an interesting piece of architecture I wonder, how we could use that well that's an interesting storyline, Oh I wonder if we can use that for social media like I'm not watching the movie.

Managing working.

And I Love, what I love with nightclub stands for I Love, what we do it's really freaking hard.

I used to joke and I still do I guess, when we started the company. It was seven feet tall and now in four foot nine.

His job is brutal punch.

Punched in the face kind of almost every hour on the hour.

And the team is working hard, but if they can't solve a problem like.

The toughest decisions come to me and sometimes.

You have to make.

Tough decisions that are unpopular and everyone's mad at you.

But that's the job and <unk>.

It's two hours of my day that I spent with all of you and part of this is fuel for me.

To have the support.

To understand what you guys see and what I don't see and that sort of thing is important and we can't do this by ourselves.

And a lot of bankers and a lot of investors like Bill you're out of your mind are you dealing with all these people.

Do you have any idea of who these people are.

Oh, well I don't I don't see that you know X Y Z huge institutional versant took a position.

Yeah, but they're former NYPD detectives FBI DHS.

DHS investors bars, there are judges that are investors of ours our mayors.

Executives Ceos large family offices like Arizona.

Our team of investors are bunch of hitters.

And if you think that like we're going to change the country with like for institutional investors sitting in some Ivory tower light.

Youre delusional, it's not going to happen, it's going to be because one somebody on this call the size like I'm going to go above the city Council member I'm going to go above the chief of police.

We're gonna go annoy the hospital administrator I'm going to go talk to the principle, we can't do all this by ourselves alright, and so what motivates me and keeps me going as you guys.

Oh.

Well.

But against that you're concerned about summer.

How old are my diligence I hope my colleagues here as far as a lot of family or the new ones that I leave at the legacy.

I mean, we are.

With you.

Thank you.

Next bill for sure.

I appreciate it with somebody either what ours at.

Alright, everybody.

I'm going to call it because my butts asleep.

Anyway.

Thanks, everyone for the support we will get the video posted make sure to share with.

Everyone and thank you for sticking with US all this time as I will always continue to say long nights go short the criminals and we'll see you on the other side. Thanks everybody.

Hi, Brian .