Knightscope, Inc.

All right, let's get going. My name is William Santana Lee, Chairman and CEO of Nightscope and here with our trustee CFO, Apoorv Devedi. We're going to do a little bit of a different format today. First, an announcement regarding this Thursday, then Apoorv will go through the 2025 financial results that we filed on Form 10-K. And then we aggregated a bunch of questions that have come in, including from the three equity research analysts, and we'll try to put that in a much more efficient approach to answering questions. So with that, I'll start it off with... We're going to have our first annual Autonomous Security Force Day and also celebrate our 13th year anniversary in business. I often like to say we're here in Silicon Valley. There are 22,000 startups here. 95% of them failed despite having unbelievable ambition, financing, and the like. And for us to be able to start the company, get it funded, grow it, take it public, buy two companies, and still be at it 13 years later is really a testament to the relentless nature of the Nightscope team. And I couldn't be more excited about our future as we build out the nation's first autonomous security force. So this Thursday, we're going to have several VIP private sessions for previews as to what we're building during 2026 and intentionally to get some market feedback. And then we're going to have an open house presentation. in the evening here in Sunnyvale at our new headquarters, and there's rumors flying around there's going to be an ice cream truck and a bunch of other stuff. So hopefully if you haven't RSVP'd, please be sure to check our social media channels or newsletters, and you can grab a spot there. So that will be at 6 p.m. this Thursday. All right, with that, I'll turn it over to Apoorv. We'll walk you through history, meaning 2025, and kind of what happened then. Then we'll talk a little bit about the acquisition and the questions and why all the excitement for 2026 and beyond. So with that, Apoorv.

Thanks, Bill. Good afternoon, everyone, and thank you for joining. I will begin with a review of our financial performance, first for the Q4, and then the full year 2025, followed by commentary on liquidity and capital strategy. With that, let's jump right in. Q1, sorry, Q4 revenues declined approximately 9.8% year-over-year product shipments primarily driven by supply chain constraints, which we've talked about in the past, that resulted in delays of VCD product deliveries. The services business remained materially unchanged. gross loss of 1.6 million reflects ongoing margin pressure driven by elevated material and other input costs for production and by under absorption of fixed manufacturing overhead these factors were consistent with full year trends and underscore the need for improved scale and supply chain normalization to drive margin recovery for the company Our operating expenses of 9.7 million in the quarter increased approximately 3.8 million year over year, driven by higher investment in both R&D and SG&A functions. R&D spending reflects the company's deep commitment to continued advancement of our next generation platforms, such as the K7, the K1 capsule, and the signal software. SG&A increased primarily due to targeted investment in talent and organizational capabilities, which are critical to positioning the company for future scale and growth. Overall, the cost structure reflects a deliberate investment phase to support long-term expansion. Q4 2025 net loss of $11 million. widened versus prior year due to a combination of lower revenue, continued gross margin pressure, and sustained operating investment. The quarter reflects a near-term financial impact of scaling the platform while revenue growth remains uneven. With that, moving on to full year. 2025 full year revenue grew approximately 4.9% to $11.3 million. driven primarily by the services revenue expansion in both the machinism service ASR offerings and our full service maintenance plans on the ECD install base. However, growth in the product revenue was modest due to the uh already discussed supply chain related constraints and shipment timing issues discussed earlier million increased by approximately 1.1 million versus prior year reflecting higher bill of material costages and production variability The lack of scale continues to pressure unit economics, reinforcing the importance of driving higher volume and utilization as we continue to grow. Full year operating expenses increased approximately 12.1% year over year, driven primarily by a $5.4 million increase in R&D investment compared to 2024. This reflects continued focus on platform development and next generation products to support future scalability. The increase was partially offset by cost savings in SG&A, expenses of approximately $1.8 million, as well as the absence of half a million in restructuring charges incurred in the prior year. This demonstrating progress in optimizing the company's cost structure while investing in growth. Full year loss increased to approximately 33.8 million. This reflects a combination of modest revenue growth, continued gross margin pressure, and elevated investment levels, consistent with the company transitioning to growth. Voted average loss per share of $4 decreased by approximately 63.5% year over year. Finally, From a balance sheet and cash flow perspective, we used approximately $30.3 million in operating activities during 2025, reflecting a continued investment in

scale.