0001410578-22-001693 | 10-Q | XBRL Viewer

Balance at the beginning (in shares) at Dec. 31, 2020

$ 13,866

$ 4,982

$ 46

$ 5,826

$ 27,135

$ 3,865

$ 9,442

5,339,215

1,660,756

16,757

1,432,786

3,731,248

8,936,015

4,653,583

Increase (Decrease) in Temporary Equity [Roll Forward]

Issuance of Series S Preferred stock, net of issuance costs

$ 6,423

Issuance of Series S Preferred stock, net of issuance costs (in shares)

714,104

Series m-4 accrued dividend

$ (175)

$ 175

$ (175)

Balance at the end at Mar. 31, 2021

$ 13,866

$ 4,982

$ 46

$ 6,001

$ 33,558

$ 3,865

$ 9,442

Balance at the end (in shares) at Mar. 31, 2021

5,339,215

1,660,756

16,757

1,432,786

4,445,352

8,936,015

4,653,583

Balance at the beginning (in shares) at Dec. 31, 2020

$ 10

$ 3,051

(69,246)

(66,185)

10,189,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock based compensation

231

Net loss

(5,577)

Balance at the end at Mar. 31, 2021

$ 10

3,282

(74,998)

$ (71,706)

Balance at the end (in shares) at Mar. 31, 2021

10,189,000

Balance at the beginning (in shares) at Dec. 31, 2020

$ 13,866

$ 4,982

$ 46

$ 5,826

$ 27,135

$ 3,865

$ 9,442

5,339,215

1,660,756

16,757

1,432,786

3,731,248

8,936,015

4,653,583

Balance at the end at Dec. 31, 2021

$ 11,881

$ 1,319

$ 3,755

$ 46

$ 29,995

$ 2,663

$ 7,559

Balance at the end (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

19,617,107

Balance at the beginning (in shares) at Dec. 31, 2020

$ 10

3,051

(69,246)

$ (66,185)

10,189,000

Balance at the end at Dec. 31, 2021

$ 6

$ 13

30,745

(113,697)

(82,933)

^[1]

Balance at the end (in shares) at Dec. 31, 2021

5,936,929

13,131,197

Increase (Decrease) in Temporary Equity [Roll Forward]

Share conversion to common stock

$ 9

$ (3)

17,241

$ (6,589)

$ (1,319)

$ (1,275)

$ (46)

$ (6,877)

$ (799)

$ (342)

$ 17,247

Share conversion to common stock (in shares)

8,961,400

(2,777,946)

(2,537,007)

(186,872)

(425,000)

(16,757)

(849,496)

(1,846,752)

(168,721)

Balance at the end at Mar. 31, 2022

$ 5,292

$ 2,480

$ 23,118

$ 1,864

$ 7,217

Balance at the end (in shares) at Mar. 31, 2022

2,037,910

826,666

2,855,743

4,308,812

3,557,371

13,586,502

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock based compensation

725

$ 725

Warrants expired

370

Warrants Exercised

370

Warrants Exercised (in shares)

156,483

Conversion of debt obligations to class A common stock

$ 7

16,004

16,011

Conversion of debt obligations to class A common stock (in shares)

6,513,385

Stock options exercised

$ 97

Stock options exercised (in shares)

73.001

25,000

98,001

Offering proceeds, net of issuance costs

$ 2

19,454

$ 19,456

Offering proceeds, net of issuance costs (in shares)

2,236,619

Share conversion costs

(50)

Net loss

(9,597)

Balance at the end at Mar. 31, 2022

$ 24

$ 10

$ 84,586

$ (123,294)

$ (38,674)

Balance at the end (in shares) at Mar. 31, 2022

23,877,817

10,378,251

[1]	The condensed balance sheet as of December 31, 2021 was derived from the audited balance sheet as of that date.

Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
Condensed Statements of Cash Flows - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Cash Flows From Operating Activities
Net loss	$ (9,597)	$ (5,577)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	351	328
Stock compensation expense	725	231
Change in fair value of warrant liabilities	(7,522)
Accrued interest	24
Amortization of debt discount	8,878	384
Changes in operating assets and liabilities:
Accounts receivable	(783)	(253)
Prepaid expenses and other current assets	142	(1,325)
Other assets		142
Accounts payable	(434)	582
Accrued expenses	(741)	(140)
Deferred revenue	410	(365)
Other current and noncurrent liabilities	195	235
Net cash used in operating activities	(8,352)	(5,758)
Cash Flows From Investing Activities
Purchases and related costs incurred for Autonomous Security Robots	(764)	(377)
Purchase of property and equipment	(41)	(10)
Net cash used in investing activities	(805)	(387)
Cash Flows From Financing Activities
Proceeds from stock options exercised	97
Proceeds from issuance of Series S Preferred Stock, net of issuance costs		6,423
Offering proceeds, net of issuance costs	19,456
Share conversion costs	(50)
Net cash provided by financing activities	19,503	6,423
Net change in cash and cash equivalents	10,346	278
Cash, cash equivalents and restricted cash at beginning of the period	10,849	7,157
Cash, cash equivalents and restricted cash at end of the period	21,195	7,435
Supplemental Disclosure of Non-Cash Financing Activities
Conversion of preferred stock to common stock	17,247
Conversion of debt obligations to Class A common stock	$ 16,011
Series m-4 accrued dividend		$ 175

The Company and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

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. (the “Company”), was incorporated on April 4, 2013 under the laws of the State of Delaware.

The Company designs, develops, builds, deploys, and supports advanced physical security technologies. The Knightscope solution to reducing crime combines the physical presence of its proprietary Autonomous Security Robots (“ASRs”) with real-time on-site data collection and analysis and a user interface. Two of the Company’s ASRs, the outdoor “K5” and the indoor “K3”, autonomously patrol client sites without the need for remote control to provide a visible, force multiplying, physical security presence to help protect assets, monitor changes in the environment and deter crime. They gather real-time data using a large array of sensors. The data is accessible through the Knightscope Security Operations Center (“KSOC”), an intuitive, browser-based software interface that enables security professionals and law enforcement officers to review events generated, allowing them to have their eyes, ears, and voice on the ground 24/7/365 in multiple locations at the same time.

Basis of Presentation and Liquidity

The unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“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 financial statements have been prepared on the same basis as the annual 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 months ended March 31, 2022 are not necessarily indicative of the results to the expected for the year ending December 31, 2022 or for other future periods. These condensed financial statements should be read in conjunction with the Company’s audited financial statements and accompanying notes for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 31, 2022. The Company’s significant accounting policies are described in Note 1 to those audited 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 and continued improvement of the Company’s ASRs and KSOC (hardware and software).

Cash and cash equivalents on hand were $21.1 million as of March 31, 2022, compared to $10.7 million as of December 31, 2021. The Company has historically incurred losses and negative cashflows from operations. As of March 31, 2022, the Company also had an accumulated deficit of approximately $123.3 million and stockholders’ deficit of $38.7 million. In connection with its listing on the Nasdaq Global Market on January 27, 2022, the Company completed its Regulation A Offering on January 26, 2022, issuing 2,236,619 shares of Class A common stock and generating net proceeds of approximately $19.5 million. Management plans to seek additional financing activities to support its operations, such as issuances of equity, issuances of debt and convertible debt instruments and other financing instruments. To address this plan, on April 4, 2022 (as amended on April 11, 2022), the Company entered into a committed equity facility with B Riley Principal Capital that provides the Company with the right, without obligation, to sell and issue up to $100 million of its Class A common stock over a period of 24 months. The Company’s projected cash flows are subject to various risks and uncertainties, and the unavailability or inadequacy of financing to meet future capital needs could force it to modify, curtail, delay, or suspend some or all aspects of its planned operations. Sales of additional equity securities, convertible debt and/or warrants by the Company could result in the dilution of the interests of existing stockholders.

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 our 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 March 31, 2022. 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:


	March 31,		March 31,
	2022		2021
Series A Preferred Stock (convertible to Class B common stock)		4,308,812		8,936,015
Series B Preferred Stock (convertible to Class B common stock)		3,557,371		4,653,583
Series m Preferred Stock (convertible to Class A common stock)		2,037,910		5,339,215
Series m-2 Preferred Stock (convertible to Class B common stock)		826,666		1,660,756
Series m-3 Preferred Stock (convertible to Class A common stock)		—		16,757
Series m-4 Preferred Stock (convertible to Class A common stock)		—		1,432,786
Series S Preferred Stock (convertible to Class A common stock)		2,855,743		4,445,352
Warrants to purchase common stock (convertible to Class B common stock)		—		121,913
Warrants to purchase Series B (convertible to Class B common stock)		—		53,918
Warrants to purchase of Series m-1 (convertible to Class A common stock)		—		266,961
Warrants to purchase of Series m-3 (convertible to Class A common stock)		1,432,786		1,432,786
Warrants to purchase of Series s (convertible to Class A common stock)		4,441,814		2,525,714
Convertible Notes		—		1,465,306
Stock options		8,493,831		6,996,000
Total potentially dilutive shares		27,954,933		39,347,062

As all potentially dilutive securities are anti-dilutive as of March 31, 2022 and 2021, diluted net loss per share is the same as basic net loss per share for each period.

Comprehensive Loss

Net loss was equal to comprehensive loss for the three-month periods ended March 31, 2022 and 2021.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make judgements, 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 and equipment, 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 financial statements.

Recent Accounting Pronouncements Not Yet Effective

In August 2020, the Financial Accounting Standards Board “(FASB)” issued Accountin Standards Update (“ASU”) No. 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). The update simplifies the accounting for convertible instruments by removing certain separation models in Subtopic 470-20. This amendment is effective for fiscal years beginning after December 15, 2023, for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, including interim periods within those fiscal years. The Company is currently in the process of evaluating the impact of adoption on its financial statements.

In September 2016, the FASB released ASU No. 2016-13, Financial Instruments – Credit Losses (“ASU 2016-03”). 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. ASU 2016-03 is effective for fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition. The Company is currently in the process of evaluating the impact of adoption on its financial statements.

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 4.5 years. Depreciation expense of finished ASRs included in research and development expense amounted to $20 and $20, depreciation expense of finished ASRs included in sales and marketing expense amounted to $14 and $17, and depreciation expense included in cost of revenue, net amounted to $307 and $283 for the three months ended March 31, 2022 and 2021, respectively.

ASRs, net, consisted of the following:


	March 31,		December 31,
	2022		2021
Raw materials	$	1,369	$	1,041
ASRs in progress		669		427
Finished ASRs		8,183		7,695
		10,221		9,163
Accumulated depreciation on Finished ASRs		(6,832)		(6,192)

ASRs, net	$	3,389	$	2,971

The components of the Finished ASRs, net at March 31, 2022 and December 31, 2021 are as follows:


ASRs on lease or available for lease	$	6,968	$	6,489
Demonstration ASRs		585		585
Research and development ASRs		320		320
Docking stations		310		301
		8,183		7,695
Less: accumulated depreciation		(6,832)		(6,192)
Finished ASRs, net	$	1,351	$	1,503

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 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, the completion of a sale of the Company or an initial public offering (“IPO”). Upon an IPO, 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.

The Company issued common stock warrants in connection with the execution of a certain debt financing during the year ended December 31, 2015. 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 ASU 718, Compensation - Stock Compensation, which requires that the estimated fair value on the date of grant be recognized over the requisite service period of the awards, which is generally the option vesting period. Stock-based awards made to nonemployees are measured and recognized based on the estimated fair value on the vesting date and are re-measured at each reporting pricing model, is affected by the fair value of the Company’s common stock as well as other assumptions regarding a number of highly complex and subjective variables. These variables include but are not limited to the Company’s expected stock price volatility over the term of the awards, and actual and projected employee option exercise behaviors. Because there is insufficient historical information available to estimate the expected term of the stock-based awards, the Company adopted the simplified method of estimating the expected term of options granted by taking the average of the vesting term and the contractual term of the option. For awards with graded vesting, the Company recognizes stock-based compensation expense over the service period using the straight-line method, based on shares ultimately expected to vest. The Company recognizes forfeitures as they occur when calculating stock-based compensation for its equity awards.

Revenue and Deferred Revenue

3 Months Ended

Mar. 31, 2022

Revenue and Deferred Revenue

Revenue and Deferred Revenue

NOTE 2: Revenue and Deferred Revenue

Revenue Recognition

The Company derives its revenues primarily 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 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.

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 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 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 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, whereby Dimension 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. See “Liquidity and Capital Resources”.

The Company derives its revenue from the lease subscription of its proprietary ASRs along with access to its browser and mobile based software interface, KSOC. MaaS subscription agreements typically have a twelve (12) month term.

With the adoption of ASC 606 in January 2019, the Company estimates its revenue in the periods in which the licensee uses the licensed technology. Payments are received in the subsequent period.

The following table summarizes revenue by timing of recognition:


	Three Months Ended		Three Months Ended
	March 31, 2022		March 31, 2021
Point in time	$	15	$	19
Transferred over time		929		847
	$	944	$	866

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 for the period ended March 31, 2022:


	March 31, 2022
Deferred revenue - short term	$	1,299
Revenue recognized in the three months ended related to amounts included in deferred revenue as of January 1, 2022	$	357

Deferred revenue represents amounts invoiced to customers for contracts for which revenue has yet to be recognized based for subscription services to be delivered to the Company’s clients. Typically, the timing of invoicing is based on the terms of the contract.

Other revenue

Other non-ASR related revenue such as deployment services, decals, shipping, and training revenue is recognized when services are delivered.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Fair Value Measurement

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and December 31, 2021, and the classification by level of input within the fair value hierarchy:


	Total		Level 1		Level 2		Level 3
March 31, 2022
Assets
Cash equivalents:
Money market funds	$	20,124	$	20,124	$	—	$	—
Liabilities
Warrant liability – Series m-3 Preferred Stock	$	4,516	$	—	$	—	$	4,516
Warrant liability – Series S Preferred Stock	$	18,158	$	—	$	—	$	18,158


	Total		Level 1		Level 2		Level 3
December 31, 2021
Assets
Cash equivalents:
Money market funds	$	6,623	$	6,623	$	—	$	—
Liabilities
Warrant liability – Series B Preferred Stock	$	370	$	—	$	—	$	370
Warrant liability – Series m-3 Preferred Stock	$	7,156	$	—	$	—	$	7,156
Warrant liability – Series S Preferred Stock	$	23,040	$	—	$	—	$	23,040

During the three-month periods ended March 31, 2022 and 2021, 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 financial liabilities during the three-month periods ended March 31, 2022 and 2021, which were measured at fair value on a recurring basis:


	March 31,		March 31,
Warrant liability	2022		2021
Beginning Balance	$	30,566	$	5,617
Warrants exercised		(370)		—
Revaluation of Series m-3 and S Preferred Stock warrants		(7,522)		—
Ending Balance	$	22,674	$	5,617

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Debt Obligations

3 Months Ended

Mar. 31, 2022

Debt Obligations

Debt Obligations

NOTE 4: Debt Obligations

Term Loan Agreement

In May 2018, the Company entered into a term loan agreement which allowed for individual term loans to be drawn in amounts totaling up to $3,500 until January 10, 2019 (the “Loan Agreement”). Each individual term loan called for 18 equal monthly payments of principal plus accrued interest which would fully amortize the term loan. Outstanding borrowings under the term loan agreement bear interest at 1.75% above the prime rate per annum. Only one individual term loan in the amount of $425 was drawn by the Company in May 2018. The loan was fully repaid in February 2019.

A warrant for 77,413 shares of Class B common stock was also issued to the lender in conjunction with the Loan Agreement, which was fully exercised during the quarter ended March 31, 2022.

Convertible Note Financing

On April 30, 2019, the Company signed a Note and Warrant Purchase Agreement under the form of which the Company can issue up to $15 million of convertible promissory notes and warrants to purchase up to 3,000,000 shares of Series S Preferred Stock (the “Convertible Note Financing”). Pursuant to the terms of the Convertible Note Financing, the Company became obligated, to the same group of Convertible Note Financing investors, to exchange their outstanding shares of Series m-3 Preferred Stock for newly authorized shares of Series m-4 Preferred stock upon the closing of at least $1 million in aggregate principal amount of convertible promissory notes under the Convertible Note Financing. These warrants to purchase shares of Series S Preferred Stock of the Company were also issued to investors who invested in the Convertible Note Financing. The warrants to purchase shares of Series S Preferred Stock have an exercise price of $4.50 per share and expire on the earlier of December 31, 2021 or 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. The convertible promissory notes have a maturity date of January 1, 2022, provide for payment of accrued interest at a rate of 12% per annum upon the maturity date, are generally the most senior company security (subject to limited subordination carve-outs) and provide for significant discounts upon a qualified financing or an initial public offering, and for a premium upon a change of control. The convertible notes automatically converts under various scenarios including a qualified financing or IPO. As of January 1, 2020, the convertible notes became convertible at the investors’ option at prices as follows: (i) on or before June 30, 2020, $4.50 per share; (ii) after June 30, 2020, but on or before December 31, 2020, $4.00 per share; (iii) after December 31, 2020, but on or before June 30, 2021, $3.50 per share; and (iv) after June 30, 2021, $2.50 per share.

On November 18, 2021, the Company agreed to amend the Note and Warrant Purchase Agreement and the convertible notes and warrants to purchase Series S Preferred Stock issued thereunder principally as follows: (i) the scheduled maturity date of the convertible notes was extended from January 1, 2022 to January 1, 2024, (ii) the interest rate of the convertible notes was reduced from 12% per annum to 3% per annum starting on January 1, 2022, (iii) the conversion terms of the convertible notes were revised so that the convertible notes would automatically convert into Class A common stock upon the listing of the Company’s Class A common stock for trading on a nationally recognized securities exchange (e.g., the New York Stock Exchange) or inter-dealer quotation system (e.g., Nasdaq), (iv) the exercise period of the warrants was extended from December 31, 2021 to December 31, 2024 and will commence on January 1, 2023, and (v) the cashless exercise feature was removed from the warrants. The conversion price of the convertible notes for conversion into Class A common stock was not changed and remains at $2.50 per share and the exercise price of the warrants to purchase Series S Preferred Stock was not changed and remains at $4.50 per share.

As of December 31, 2021, the Company had issued convertible notes in the aggregate principal amount of approximately $14.7 million (out of $15 million). Warrants for the purchase of up to 2,941,814 shares of Series S Preferred Stock were also issued and accrued for, respectively, to the same convertible note holders. The warrants have an exercise price of $4.50 per share, originally set to expire on December 31, 2021. On January 5, 2022, all convertible notes and accumulated interest were converted into 6,513,385 shares of Class A Common Stock, leaving no outstanding convertible notes as of March 31, 2022. A portion of the shares issued are subject to Rule 144 holding requirements, and therefore, are currently restricted from trading.

All of the Company's outstanding convertible notes and accrued interest, totaling $16 million, net of $0.3 million of debt discount, were converted into Class A common stock during the three months ended March 31, 2022. The remaining debt discount related to the notes in the amount of $8.8 million was amortized and recorded as interest expense during the quarter ended March 31, 2022.

The amortized carrying amount of the Company’s debt obligations consists of the following:


	March 31,		December 31,
	2022		2021
Convertible notes, net of fees and discount	$	—	$	7,109
Total debt		—		7,109
Less: current portion of debt obligations		—		(7,109)
Non-current portion of debt obligations	$	—	$	—

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Capital Stock and Warrants

Stock-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-Based Compensation

Stock-Based Compensation

NOTE 5: Stock-Based Compensation

Equity Incentive Plans

In April 2014, the Company adopted the 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 a new equity incentive plan, the 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 Company’s 2016 Plan. Awards outstanding under the 2014 Plan at the time of the 2014 Plan’s termination will 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 Company’s 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. As of March 31, 2022, 423,586 shares were available for future grants under the 2016 Plan.

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 Company may from time-to-time grant options to purchase common stock to nonemployees for advisory and consulting services. At each measurement date, the Company will remeasure the fair value of these stock options using the Black-Scholes option pricing model and recognize the expense ratably over the vesting period of each stock option award. 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.

Stock option activity under all of the Company’s equity incentive plans for the three-month period ended of March 31, 2022 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, 2021	216,003	8,799,415	$	3.07	8.12	$	60,924
Granted	(100,000)	100,000		10.00
Exercised		(98,001)		0.99
Forfeited	307,583	(307,583)		4.68
Available and outstanding as of March 31, 2022	423,586	8,493,831	$	3.12	7.87	$	58,403
Vested and exercisable as of March 31, 2022		3,922,831	$	1.20	6.83	$	34,505

The weighted average grant date fair value of options granted during the three-month period ended March 31, 2022 was $5.08 per share. There were 98,001 options exercised during the three-month period ended March 31, 2022. No options were exercised during the three-month period ended March 31, 2021. The fair value of the options that vested during the three months ended March 31, 2022 and 2021 was $284 and $150, respectively.

As of March 31, 2022, the Company had unamortized stock-based compensation expense of $9,225 that will be recognized over the average remaining vesting term of options of 2.67 years.

The assumptions utilized for option grants during the three months ended March 31, 2022 and 2021 are as follows:


	Three months ended
	March 31,
	2022		2021
Risk-free interest rate	0.96	%	0.81	%
Expected dividend yield	—	%	—	%
Expected volatility	53.84	%	51.26	%
Expected term (in years)	6.08		6.02

A summary of stock-based compensation expense recognized in the Company’s statements of operations is as follows:


	Three months ended
	March 31,
	2022		2021
Cost of services	$	80	$	50
Research and development		227		79
Sales and marketing		71		41
General and Administrative		347		61
Total	$	725	$	231

Capital Stock and Warrants

3 Months Ended

Mar. 31, 2022

Capital Stock and Warrants

NOTE 6: Capital Stock and Warrants

Preferred Stock

In connection with the Convertible Note Financing, later amended on November 18, 2021, William Santana Li, Chairman and Chief Executive Officer of the Company, was granted a voting proxy to vote substantially all of the shares of the Company’s Series m-4 Preferred Stock, the stock issued upon the conversion of warrants to purchase all of the shares of the Company’s Series m-3 Preferred Stock, the stock issued upon the conversion of warrants to purchase shares of the Company’s Series S Preferred Stock, and the stock issued upon conversion of the convertible promissory notes issued as part of the Convertible Note Financing, in each case to the extent that such shares are held by participants in the Convertible Note Financing (the “Voting Proxy”). The votes held by Mr. Li, as a result

of the Voting Proxy and related to the outstanding securities to which the Voting Proxy applies, represents approximately 1.2% of the Company’s aggregate voting power as of March 31, 2022.

The Series S Preferred Stock has a right to convert at any time into Class A common stock. The initial conversion rate was 1:1, which conversion rate will continue to be adjusted pursuant to the broad-based weighted average anti-dilution adjustment provisions provided for in the Company’s amended and restated certificate of incorporation, including without limitation as a result of the issuance of warrants to purchase Series S Preferred Stock in connection with the Convertible Note Financing referenced in the paragraph above, which may continue to have closings simultaneously with the Regulation D Offering of Series S Preferred Stock. As of December 31, 2021, the conversion rate has been adjusted to approximately 1.1069 shares of Class A common stock for every 1 share of Series S Preferred Stock, and remains subject to further adjustment.

In connection with the placement of the Series m-3 Preferred Stock during the years ended December 31, 2017 and 2018, the Company issued to the purchasers warrants to purchase an aggregate of 1,432,786 shares of Series m-3 Preferred Stock. These warrants have an exercise price of $4.00 per share. Pursuant to a second amendment to the Warrants to Purchase Shares of Series M-3 Preferred Stock Agreement dated November 18, 2021, the exercise period of the warrants was extended from December 31, 2021 to December 31, 2024 and shall be exercisable, in whole or in part, beginning January 1, 2023. In addition, the cashless exercise feature was removed from the warrants.

The following tables summarize convertible preferred stock authorized and issued and outstanding as of March 31, 2022:


		Shares	Proceeds Net		Aggregate
	Shares	Issued and	of Issuance		Liquidation
	Authorized	Outstanding	Costs		Preference
Series A Preferred Stock	8,936,015	4,308,812	$	1,864	$	3,849
Series B Preferred Stock	4,707,501	3,557,371		7,217		7,257
Series m Preferred Stock	6,666,666	2,037,910		5,292		6,114
Series m-1 Preferred Stock	333,334	—		—		—
Series m-2 Preferred Stock	1,660,756	826,666		2,480		2,480
Series m-3 Preferred Stock	3,490,658	—		—		—
Series m-4 Preferred Stock	4,502,061	—		—		—
Series S Preferred Stock	13,108,333	2,855,743		23,118		22,846
Total Preferred Stock	43,405,324	13,586,502	$	39,971	$	42,546

Common Stock

On October 15, 2021, the Company filed an offering statement in connection with a proposed offering of up to $40 million of its Class A common stock pursuant to Regulation A of the Securities Act, to raise additional capital for operations (the “2021 Regulation A Offering”). The offering statement was qualified by the SEC on November 29, 2021, and the Company commenced the 2021 Regulation A Offering shortly thereafter, and terminated on January 26, 2022, issuing 2,236,619 shares of Class A common stock with net proceeds generated through this offering of $19.5 million.

Each share of Class B Common Stock is convertible into one fully paid and non-assessable share of Class A Common Stock at the option of the holder at any time. Each share of Class B Common Stock will automatically convert into one fully paid and non-assessable share of Class A Common Stock upon the sale, assignment, transfer or disposition of the share or any interest in the share, except for certain permitted transfers to related persons.

Warrants

On April 30, 2019, the Company entered into the “Convertible Note Financing”. Pursuant to the terms of the Convertible Note Financing, the Company became obligated to exchange its outstanding shares of Series m-3 Preferred Stock for the newly authorized shares of Series m-4 Preferred stock upon the closing of at least $1 million in aggregate principal amount of convertible promissory notes under the Convertible Note Financing. Warrants to purchase shares of Series S Preferred Stock of the Company were also issued to investors who invested in the Convertible Note Financing. The warrants to purchase shares of Series S Preferred Stock have an exercise price of $4.50 per share and expire on the earlier of December 31, 2024, or 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. As of March 31, 2022, the Company had issued and accrued warrants to purchase up to 2,941,814 shares of Series S Preferred Stock. These warrants issued qualify as liability instruments as the warrants are exercisable into Series S Preferred Stock which are redeemable upon a change of control or any liquidation or winding up of the Company whether voluntary or involuntary. The warrants have been classified as a current liability on the Company’s balance sheets and were recorded as a component of the issuance costs related to Convertible Note. The Series S warrant is valued at market at the end of every reporting period until the warrant is exercised or expires with the change in fair value being recorded in other income(expense) on the Company’s statements of operations.

Pursuant to the terms of the Convertible Note Financing, the Company became obligated to exchange certain of its outstanding shares of Series m-3 Preferred Stock for the newly authorized shares of Series m-4 Preferred Stock. On September 10, 2019, the Company issued 1,432,786 shares of its Series m-4 Preferred Stock in exchange for 1,432,786 shares of its shares of Series m-3 Preferred Stock, which remained outstanding as of March 31, 2022.

On July 23, 2019, the Company issued a warrant to purchase 1,500,000 shares of its Series S Preferred Stock, (the “Warrant”), to Proud Productions LLC (“Proud”) pursuant to the terms of a Distribution Assignment and Warrant Purchase Agreement, dated as of July 22, 2019 (the “Purchase Agreement”). The Warrant is exercisable at $8.00 per share beginning July 24, 2021 and expiring on July 31, 2024. The Warrant was issued in connection with an upcoming television series to be produced by Proud featuring the Company’s products.

A summary of the Company’s outstanding warrants as of March 31, 2022 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, 2024
Series S Preferred Stock	2,941,814	$	4.5000	December 31, 2024
Series S Preferred Stock	1,500,000	$	8.0000	July 31, 2024

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:


		March 31,
		2022
Series A Preferred Stock		4,308,812
Series B Preferred Stock		3,557,371
Series m Preferred Stock		2,037,910
Series m-2 Preferred Stock		826,666
Series S Preferred Stock		2,855,743
Stock options to purchase common stock		8,493,831
Warrants outstanding for future issuance of convertible preferred stock and common stock		5,874,600
Stock options available for future issuance		423,586
Total shares of common stock reserved		28,378,519

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Commitments and contingencies

Related parties and related-party transactions

3 Months Ended

Mar. 31, 2022

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 $91 and $60 in service fees for three-month periods ended March 31, 2022 and 2021. The Company had payables of $28 and $29 owed to Konica Minolta as of March 31, 2022 and December 31, 2021, respectively.

Commitments and contingencies

3 Months Ended

Mar. 31, 2022

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 2023.

As of March 31, 2022 and 2021, the components of leases and lease costs are as follows:


	March 31, 2022		December 31, 2021
Operating leases
Operating lease right-of-use assets	$	930	$	1,077

Operating lease liabilities, current portion	$	672	$	648
Operating lease liabilities, non-current portion		307		485
Total operating lease liabilities	$	979	$	1,133
Operating lease costs	$	193	$	764

As of March 31, 2022, future minimum operating lease payments for each of the next three years and thereafter is as follows:


Years ending December 31,	Amount
2022 (remaining)	$	563
2023		507
Total future minimum lease payments		1,070
Less - Interest		(91)
Present value of lease liabilities	$	979

Weighted average remaining lease term is 1.4 years as of March 31, 2022 and the weighted average discount rate is 12.0%.

Legal Matters

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business; however, no such claims have been identified as of March 31, 2022 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 financial statements as of March 31, 2022 and December 31, 2021.

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. 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 Clients 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 $0.5 million as of March 31, 2022 and December 31, 2021, respectively, which has been included in other current liabilities on the accompanying condensed 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

3 Months Ended

Mar. 31, 2022

Subsequent Events

Subsequent Events

NOTE 9: Subsequent Events

On April 4, 2022 (as amended on April 11, 2022), the Company entered into a Common Stock Purchase Agreement in connection with a committed equity facility that provides Knightscope with the right, without obligation, to sell and issue up to $100 million of its Class A Common Stock over a period of 24 months to B. Riley at Knightscope’s discretion, subject to certain limitations and conditions. Further details are contained in the Current Reports on Form 8-K filed by Knightscope with the SEC on April 6, 2022 and April 12, 2022.

The Company and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

The Company and Summary of Significant Accounting Policies

Description of Business

Knightscope, Inc. (the “Company”), was incorporated on April 4, 2013 under the laws of the State of Delaware.

Basis of Presentation and Liquidity

Basic and Diluted Net Loss per Share


	March 31,		March 31,
	2022		2021
Series A Preferred Stock (convertible to Class B common stock)		4,308,812		8,936,015
Series B Preferred Stock (convertible to Class B common stock)		3,557,371		4,653,583
Series m Preferred Stock (convertible to Class A common stock)		2,037,910		5,339,215
Series m-2 Preferred Stock (convertible to Class B common stock)		826,666		1,660,756
Series m-3 Preferred Stock (convertible to Class A common stock)		—		16,757
Series m-4 Preferred Stock (convertible to Class A common stock)		—		1,432,786
Series S Preferred Stock (convertible to Class A common stock)		2,855,743		4,445,352
Warrants to purchase common stock (convertible to Class B common stock)		—		121,913
Warrants to purchase Series B (convertible to Class B common stock)		—		53,918
Warrants to purchase of Series m-1 (convertible to Class A common stock)		—		266,961
Warrants to purchase of Series m-3 (convertible to Class A common stock)		1,432,786		1,432,786
Warrants to purchase of Series s (convertible to Class A common stock)		4,441,814		2,525,714
Convertible Notes		—		1,465,306
Stock options		8,493,831		6,996,000
Total potentially dilutive shares		27,954,933		39,347,062

As all potentially dilutive securities are anti-dilutive as of March 31, 2022 and 2021, diluted net loss per share is the same as basic net loss per share for each period.

Comprehensive Loss

Net loss was equal to comprehensive loss for the three-month periods ended March 31, 2022 and 2021.

Use of Estimates

Recent Accounting Pronouncements Not Yet Effective

Autonomous Security Robots, net

ASRs, net, consisted of the following:


	March 31,		December 31,
	2022		2021
Raw materials	$	1,369	$	1,041
ASRs in progress		669		427
Finished ASRs		8,183		7,695
		10,221		9,163
Accumulated depreciation on Finished ASRs		(6,832)		(6,192)

ASRs, net	$	3,389	$	2,971

The components of the Finished ASRs, net at March 31, 2022 and December 31, 2021 are as follows:


ASRs on lease or available for lease	$	6,968	$	6,489
Demonstration ASRs		585		585
Research and development ASRs		320		320
Docking stations		310		301
		8,183		7,695
Less: accumulated depreciation		(6,832)		(6,192)
Finished ASRs, net	$	1,351	$	1,503

Convertible Preferred Warrant Liabilities and Common Stock Warrants

Stock-Based Compensation

The Company and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

The Company and Summary of Significant Accounting Policies

Summary of potentially dilutive securities that were excluded from the computation of diluted net loss per share


	March 31,		March 31,
	2022		2021
Series A Preferred Stock (convertible to Class B common stock)		4,308,812		8,936,015
Series B Preferred Stock (convertible to Class B common stock)		3,557,371		4,653,583
Series m Preferred Stock (convertible to Class A common stock)		2,037,910		5,339,215
Series m-2 Preferred Stock (convertible to Class B common stock)		826,666		1,660,756
Series m-3 Preferred Stock (convertible to Class A common stock)		—		16,757
Series m-4 Preferred Stock (convertible to Class A common stock)		—		1,432,786
Series S Preferred Stock (convertible to Class A common stock)		2,855,743		4,445,352
Warrants to purchase common stock (convertible to Class B common stock)		—		121,913
Warrants to purchase Series B (convertible to Class B common stock)		—		53,918
Warrants to purchase of Series m-1 (convertible to Class A common stock)		—		266,961
Warrants to purchase of Series m-3 (convertible to Class A common stock)		1,432,786		1,432,786
Warrants to purchase of Series s (convertible to Class A common stock)		4,441,814		2,525,714
Convertible Notes		—		1,465,306
Stock options		8,493,831		6,996,000
Total potentially dilutive shares		27,954,933		39,347,062

Summary of ASRs, net and components of the Finished ASRs, net

ASRs, net, consisted of the following:


	March 31,		December 31,
	2022		2021
Raw materials	$	1,369	$	1,041
ASRs in progress		669		427
Finished ASRs		8,183		7,695
		10,221		9,163
Accumulated depreciation on Finished ASRs		(6,832)		(6,192)

ASRs, net	$	3,389	$	2,971

The components of the Finished ASRs, net at March 31, 2022 and December 31, 2021 are as follows:


ASRs on lease or available for lease	$	6,968	$	6,489
Demonstration ASRs		585		585
Research and development ASRs		320		320
Docking stations		310		301
		8,183		7,695
Less: accumulated depreciation		(6,832)		(6,192)
Finished ASRs, net	$	1,351	$	1,503

Revenue and Deferred Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Revenue and Deferred Revenue

Summary of revenue by timing of recognition


	Three Months Ended		Three Months Ended
	March 31, 2022		March 31, 2021
Point in time	$	15	$	19
Transferred over time		929		847
	$	944	$	866

Summary of Deferred revenue


	March 31, 2022
Deferred revenue - short term	$	1,299
Revenue recognized in the three months ended related to amounts included in deferred revenue as of January 1, 2022	$	357

Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Measurement

Summary of category of assets or liabilities carried at fair value


	Total		Level 1		Level 2		Level 3
March 31, 2022
Assets
Cash equivalents:
Money market funds	$	20,124	$	20,124	$	—	$	—
Liabilities
Warrant liability – Series m-3 Preferred Stock	$	4,516	$	—	$	—	$	4,516
Warrant liability – Series S Preferred Stock	$	18,158	$	—	$	—	$	18,158


	Total		Level 1		Level 2		Level 3
December 31, 2021
Assets
Cash equivalents:
Money market funds	$	6,623	$	6,623	$	—	$	—
Liabilities
Warrant liability – Series B Preferred Stock	$	370	$	—	$	—	$	370
Warrant liability – Series m-3 Preferred Stock	$	7,156	$	—	$	—	$	7,156
Warrant liability – Series S Preferred Stock	$	23,040	$	—	$	—	$	23,040

Summary of changes in fair value of Company's Level 3 financial liabilities


	March 31,		March 31,
Warrant liability	2022		2021
Beginning Balance	$	30,566	$	5,617
Warrants exercised		(370)		—
Revaluation of Series m-3 and S Preferred Stock warrants		(7,522)		—
Ending Balance	$	22,674	$	5,617

Debt Obligations (Tables)

3 Months Ended

Mar. 31, 2022

Debt Obligations

Schedule of amortized carrying amount of debt obligations


	March 31,		December 31,
	2022		2021
Convertible notes, net of fees and discount	$	—	$	7,109
Total debt		—		7,109
Less: current portion of debt obligations		—		(7,109)
Non-current portion of debt obligations	$	—	$	—

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2022

Share-Based Compensation

Summary of the activity of Incentive Units


					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, 2021	216,003	8,799,415	$	3.07	8.12	$	60,924
Granted	(100,000)	100,000		10.00
Exercised		(98,001)		0.99
Forfeited	307,583	(307,583)		4.68
Available and outstanding as of March 31, 2022	423,586	8,493,831	$	3.12	7.87	$	58,403
Vested and exercisable as of March 31, 2022		3,922,831	$	1.20	6.83	$	34,505

Schedule of stock options average assumptions


	Three months ended
	March 31,
	2022		2021
Risk-free interest rate	0.96	%	0.81	%
Expected dividend yield	—	%	—	%
Expected volatility	53.84	%	51.26	%
Expected term (in years)	6.08		6.02

Schedule of classification of equity-based compensation in the consolidated statements of operations


	Three months ended
	March 31,
	2022		2021
Cost of services	$	80	$	50
Research and development		227		79
Sales and marketing		71		41
General and Administrative		347		61
Total	$	725	$	231

Capital Stock and Warrants (Tables)

3 Months Ended

Mar. 31, 2022

Capital Stock and Warrants

Schedule of outstanding warrants

A summary of the Company’s outstanding warrants as of March 31, 2022 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, 2024
Series S Preferred Stock	2,941,814	$	4.5000	December 31, 2024
Series S Preferred Stock	1,500,000	$	8.0000	July 31, 2024

Schedule of common stock reserved for future issuance


		March 31,
		2022
Series A Preferred Stock		4,308,812
Series B Preferred Stock		3,557,371
Series m Preferred Stock		2,037,910
Series m-2 Preferred Stock		826,666
Series S Preferred Stock		2,855,743
Stock options to purchase common stock		8,493,831
Warrants outstanding for future issuance of convertible preferred stock and common stock		5,874,600
Stock options available for future issuance		423,586
Total shares of common stock reserved		28,378,519

Convertible Preferred Stock [Member]

Capital Stock and Warrants

Schedule of convertible preferred stock authorized and issued and outstanding

of the Voting Proxy and related to the outstanding securities to which the Voting Proxy applies, represents approximately 1.2% of the Company’s aggregate voting power as of March 31, 2022.

The following tables summarize convertible preferred stock authorized and issued and outstanding as of March 31, 2022:


		Shares	Proceeds Net		Aggregate
	Shares	Issued and	of Issuance		Liquidation
	Authorized	Outstanding	Costs		Preference
Series A Preferred Stock	8,936,015	4,308,812	$	1,864	$	3,849
Series B Preferred Stock	4,707,501	3,557,371		7,217		7,257
Series m Preferred Stock	6,666,666	2,037,910		5,292		6,114
Series m-1 Preferred Stock	333,334	—		—		—
Series m-2 Preferred Stock	1,660,756	826,666		2,480		2,480
Series m-3 Preferred Stock	3,490,658	—		—		—
Series m-4 Preferred Stock	4,502,061	—		—		—
Series S Preferred Stock	13,108,333	2,855,743		23,118		22,846
Total Preferred Stock	43,405,324	13,586,502	$	39,971	$	42,546

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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Schedule of components of leases and lease

Commitments and contingencies (Tables)

3 Months Ended

Mar. 31, 2022

Commitments and contingencies.

As of March 31, 2022 and 2021, the components of leases and lease costs are as follows:


	March 31, 2022		December 31, 2021
Operating leases
Operating lease right-of-use assets	$	930	$	1,077

Operating lease liabilities, current portion	$	672	$	648
Operating lease liabilities, non-current portion		307		485
Total operating lease liabilities	$	979	$	1,133
Operating lease costs	$	193	$	764

Schedule of future minimum operating lease payments

As of March 31, 2022, future minimum operating lease payments for each of the next three years and thereafter is as follows:


Years ending December 31,	Amount
2022 (remaining)	$	563
2023		507
Total future minimum lease payments		1,070
Less - Interest		(91)
Present value of lease liabilities	$	979

The Company and Summary of Significant Accounting Policies (Details) - USD ($)
$ in Thousands

Apr. 04, 2022

Jan. 26, 2022

Mar. 31, 2022

Dec. 31, 2021

^[1]

Mar. 31, 2021

Dec. 31, 2020

The Company and Summary of Significant Accounting Policies

Cash and cash equivalents

$ 21,095

$ 10,749

Accumulated deficit

123,294

113,697

Stockholders' deficit

$ 38,674

$ 82,933

$ 71,706

$ 66,185

Number of shares issued during the period

2,236,619

Gross proceeds from issuance of shares

$ 19,500

Value of stock issued without obligations

$ 100,000

Time limit for exercising the agreement

24 months

[1]	The condensed balance sheet as of December 31, 2021 was derived from the audited balance sheet as of that date.

The cumulative amount of the reporting entity's undistributed earnings or deficit.

+ References + Details

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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The Company and Summary of Significant Accounting Policies

The Company and Summary of Significant Accounting Policies - Diluted net loss per share (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	27,954,933	39,347,062
Series A Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	4,308,812	8,936,015
Series B Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	3,557,371	4,653,583
Series m Preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	2,037,910	5,339,215
Series m-2 Preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	826,666	1,660,756
Series m-3 Preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares		16,757
Series m-4 Preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares		1,432,786
Series S Preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	2,855,743	4,445,352
Warrants to Purchase Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares		121,913
Warrants to purchase Series B (convertible to Class B common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares		53,918
Warrants to purchase of Series m-1 (convertible to Class A common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares		266,961
Warrants to purchase of Series m-3 (convertible to Class A common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	1,432,786	1,432,786
Warrants to purchase of Series s (convertible to Class A common stock)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	4,441,814	2,525,714
Convertible Debt Securities
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares		1,465,306
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	8,493,831	6,996,000

The Company and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Research and development expense.
Inventory, Noncurrent [Line Items]
Depreciation expense of finished ASRs	$ 20	$ 20
Sales and marketing expense
Inventory, Noncurrent [Line Items]
Depreciation expense of finished ASRs	14	17
Cost of services
Inventory, Noncurrent [Line Items]
Depreciation expense of finished ASRs	$ 307	$ 283
Minimum
Inventory, Noncurrent [Line Items]
Estimated expected lives	3 years	3 years
Maximum
Inventory, Noncurrent [Line Items]
Estimated expected lives	4 years 6 months	4 years 6 months

The Company and Summary of Significant Accounting Policies - ASRs, net consisted (Details) - USD ($)
$ in Thousands

Mar. 31, 2022

Dec. 31, 2021

Raw materials

$ 1,369

$ 1,041

ASRs in progress

669

427

Finished ASRs

8,183

7,695

ASRs, gross

10,221

9,163

Accumulated depreciation on Finished ASRs

(6,832)

(6,192)

ASRs, net

$ 3,389

$ 2,971

^[1]

[1]	The condensed balance sheet as of December 31, 2021 was derived from the audited balance sheet as of that date.

The Company and Summary of Significant Accounting Policies - Components of the Finished ASRs (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
The Company and Summary of Significant Accounting Policies
ASRs on lease or available for lease	$ 6,968	$ 6,489
Demonstration ASRs	585	585
Research and development ASRs	320	320
Docking stations	310	301
Finished ASRs, gross	8,183	7,695
Less: accumulated depreciation	(6,832)	(6,192)
Finished ASRs, net	$ 1,351	$ 1,503

Revenue and Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue, net	$ 944	$ 866
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenue, net	15	19
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue, net	$ 929	$ 847

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Revenue recognized in the three months ended related to amounts included in deferred revenue as of January 1, 2022

Revenue and Deferred Revenue (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2022

Dec. 31, 2021

^[1]

Revenue and Deferred Revenue

Deferred revenue

$ 1,299

$ 889

$ 357

[1]	The condensed balance sheet as of December 31, 2021 was derived from the audited balance sheet as of that date.

Fair Value Measurement - Classification by level of input within the fair value hierarchy (Details) - Recurring basis - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Warrant liability - Series B Preferred Stock
Liabilities
Warrant liability		$ 370
Warrant liability - Series m-3 Preferred Stock
Liabilities
Warrant liability	$ 4,516	7,156
Warrant liability - Series S Preferred Stock
Liabilities
Warrant liability	18,158	23,040
Money market funds
Assets
Money market funds	20,124	6,623
Level 1 \| Money market funds
Assets
Money market funds	20,124	6,623
Level 3 \| Warrant liability - Series B Preferred Stock
Liabilities
Warrant liability		370
Level 3 \| Warrant liability - Series m-3 Preferred Stock
Liabilities
Warrant liability	4,516	7,156
Level 3 \| Warrant liability - Series S Preferred Stock
Liabilities
Warrant liability	$ 18,158	$ 23,040

Fair Value Measurement (Details) - USD ($) $ in Thousands	3 Months Ended
Fair Value Measurement (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Fair Value Measurement
Fair value assets, transfer from level 1 to level 2	$ 0	$ 0
Fair value assets, transfer from level 2 to level 1	0	0
Fair value assets, transfer in and out of level 3	0	0
Fair value liabilities, transfer from level 1 to level 2	0	0
Fair value liabilities, transfer from level 2 to level 1	0	0
Fair value liabilities, transfer in and out of level 3	$ 0	$ 0

Fair Value Measurement - Changes in the fair value of Company's Level 3 financial liabilities (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Sep. 30, 2020

Changes in the fair value of Company's Level 3 financial liabilities

Beginning Balance

^[1]

$ 30,566

Ending Balance

22,674

Warrant Liability | Level 3

Changes in the fair value of Company's Level 3 financial liabilities

Beginning Balance

30,566

$ 5,617

Revaluation of Series m-3 and S Preferred Stock warrants

(7,522)

$ 0

Expired warrants

(370)

Ending Balance

$ 22,674

$ 5,617

[1]	The condensed balance sheet as of December 31, 2021 was derived from the audited balance sheet as of that date.

Debt Obligations - Additional information (Details) $ / shares in Units, $ in Thousands				1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 01, 2022	Nov. 18, 2021 $ / shares	Apr. 30, 2019 USD ($) $ / shares shares	May 31, 2018 USD ($) payment	Mar. 31, 2022 USD ($) shares	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) $ / shares shares	Jul. 01, 2021 $ / shares	Jun. 29, 2021 $ / shares	Dec. 31, 2020 $ / shares	Jun. 30, 2020 $ / shares
Debt obligations
Amortization of debt discount					$ 8,878	$ 384
Series S Preferred Stock
Debt obligations
Number of warrants issued to purchase shares \| shares					2,941,814
Term Loan Agreement
Debt obligations
Maximum borrowing capacity				$ 3,500
Number of equal monthly payments \| payment				18
Interest rate				1.75%
Proceeds from issuance of loans payable, net of origination costs				$ 425
Term Loan Agreement \| Class B Common Stock
Debt obligations
Number of warrants issued to purchase shares \| shares					77,413
Convertible Note Financing
Debt obligations
Interest rate			12.00%
Convertible instrument amount			$ 15,000				$ 15,000
Aggregate principal amount			$ 1,000				$ 14,700
Exercise price \| $ / shares		$ 2.50					$ 4.50
Conversion price \| $ / shares								$ 2.50	$ 3.50	$ 4.00	$ 4.50
Percentage of interest rate on convertible notes	3.00%	12.00%
Number of shares issued on Conversion of convertible notes \| shares							6,513,385
Outstanding convertible notes					$ 0
Conversion of convertible debt into common stock					16,000
Debt discount					300
Amortization of debt discount					$ 8,800
Convertible Note Financing \| Series S Preferred Stock
Debt obligations
Number of warrants issued to purchase shares \| shares							2,941,814
Number of shares issued in exchange of debt \| shares			3,000,000
Exercise price \| $ / shares		$ 4.50	$ 4.50
Expiration of warrants term			18 months

Debt Obligations - Amortized carrying amount of debt (Details)
$ in Thousands

Dec. 31, 2021

USD ($)

Debt Instrument [Line Items]

Total debt

$ 7,109

Less: current portion of debt obligations

(7,109)

^[1]

Convertible Note Financing

Debt Instrument [Line Items]

Total debt

$ 7,109

[1]	The condensed balance sheet as of December 31, 2021 was derived from the audited balance sheet as of that date.

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Stock-Based Compensation - Equity Incentive Plans (Details) - shares	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2016	Apr. 30, 2014
Incentive Units
Number of shares available for grant	423,586	216,003
Shares available for future issuance	28,378,519
2014 Equity Incentive Plan
Incentive Units
Number of shares issuable under plan				2,000,000
2016 Equity Incentive Plan
Incentive Units
Number of shares available for grant			1,936,014
Shares available for future issuance	423,586
Vesting term	4 years
2016 Equity Incentive Plan \| Term of stock options, If price of 100 % of Fair Market Value
Incentive Units
Maximum percentage of fair market value of Stock Options Price	100.00%
Stock options term	10 years
Percentage of voting power held	10.00%
2016 Equity Incentive Plan \| Term of stock options, If price of 110 % of Fair Market Value
Incentive Units
Maximum percentage of fair market value of Stock Options Price	110.00%
Stock options term	5 years
Percentage of voting power held	10.00%

Stock-Based Compensation - Stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Shares Available for Grant
Outstanding as of beginning of year	216,003
Granted	(100,000)
Forfeited	307,583
Outstanding as of ending of year	423,586		216,003
Number of Shares Outstanding
Outstanding as of beginning of year	8,799,415
Granted	100,000
Exercised	(98,001)
Forfeited	(307,583)
Outstanding as of ending of year	8,493,831		8,799,415
Vested and exercisable	3,922,831
Weighted Average Exercise Price
Outstanding as of beginning of year	$ 3.07
Granted	10.00
Exercised	0.99
Forfeited	4.68
Outstanding as of ending of year	3.12		$ 3.07
Vested and exercisable as of ending of year	$ 1.20
Weighted Average Remaining Contractual Life (in years)
Outstanding as of ending of year	7 years 10 months 13 days		8 years 1 month 13 days
Vested and exercisable as of ending of year	6 years 9 months 29 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 58,403		$ 60,924
Vested and exercisable	$ 34,505
Weighted average grant date fair value of options granted	$ 5.08
Share based payment award shares options exercise	98,001
Fair value of the shares subject to stock options vested	$ 284	$ 150
Unamortized stock-based compensation expense	$ 9,225
Vesting Term	2 years 8 months 1 day

Stock-Based Compensation - Assumptions utilized for option (Details) - Stock options	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Incentive Units
Risk-free interest rate	0.96%	0.81%
Expected volatility	53.84%	51.26%
Expected term (in years)	6 years 29 days	6 years 7 days

Stock-Based Compensation - Summary of stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Classification of equity-based compensation
Total equity based compensation	$ 725	$ 231
Cost of services
Classification of equity-based compensation
Total equity based compensation	80	50
Research and development expense.
Classification of equity-based compensation
Total equity based compensation	227	79
Sales and marketing expense
Classification of equity-based compensation
Total equity based compensation	71	41
General and Administrative
Classification of equity-based compensation
Total equity based compensation	$ 347	$ 61

Capital Stock and Warrants (Details) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Capital Stock and Warrants
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	43,405,324	43,405,324
Class A common stock
Capital Stock and Warrants
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	114,000,000	114,000,000
Class B Common Stock
Capital Stock and Warrants
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	30,000,000	30,000,000
Series A Preferred Stock
Capital Stock and Warrants
Preferred stock, shares authorized	8,936,015
Series B Preferred Stock
Capital Stock and Warrants
Preferred stock, shares authorized	4,707,501
Series m Preferred Stock
Capital Stock and Warrants
Preferred stock, shares authorized	6,666,666
Series m-1 Preferred Stock
Capital Stock and Warrants
Preferred stock, shares authorized	333,334
Series m-2 Preferred Stock
Capital Stock and Warrants
Preferred stock, shares authorized	1,660,756
Series m-3 Preferred Stock
Capital Stock and Warrants
Preferred stock, shares authorized	3,490,658
Series S Preferred Stock
Capital Stock and Warrants
Preferred stock, shares authorized	13,108,333
Series m-4 Preferred Stock
Capital Stock and Warrants
Preferred stock, shares authorized	4,502,061

Capital Stock and Warrants - Preferred Stock (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares	Mar. 31, 2021 USD ($)	Dec. 31, 2021 $ / shares shares	Nov. 18, 2021 $ / shares	Sep. 10, 2019 shares	Apr. 30, 2019 $ / shares	Dec. 31, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares
Capital Stock and Warrants
Preferred stock, par value \| $ / shares	$ 0.001		$ 0.001
Preferred stock, shares issued	13,586,502		19,617,107
Issuance costs \| $	$ 50
Proceeds from redeemable preferred stock \| $		$ 6,423
Convertible Note Financing
Capital Stock and Warrants
Exercise price \| $ / shares			$ 4.50	$ 2.50
Mr.Li \| Convertible Note Financing
Capital Stock and Warrants
Percentage of voting power held	1.20%
Series m-3 Preferred Stock \| Convertible Note Financing
Capital Stock and Warrants
Preferred stock, repurchased as exchange upon conversion					1,432,786
Number of warrants issued to purchase shares							1,432,786	1,432,786
Exercise price \| $ / shares							$ 4.00	$ 4.00
Series S Preferred Stock
Capital Stock and Warrants
Number of warrants issued to purchase shares	2,941,814
Series S Preferred Stock \| Convertible Note Financing
Capital Stock and Warrants
Preferred stock, conversion ratio			1
Adjusted conversion ratio			1.1069
Number of warrants issued to purchase shares			2,941,814
Exercise price \| $ / shares				$ 4.50		$ 4.50
Series m-4 Preferred Stock \| Convertible Note Financing
Capital Stock and Warrants
Preferred stock, shares issued upon conversion					1,432,786

Capital Stock and Warrants - Convertible preferred stock authorized and issued and outstanding (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Capital Stock and Warrants
Shares Authorized	43,405,324	43,405,324
Shares Issued and Outstanding	13,586,502
Proceeds Net of Issuance Costs	$ 39,971
Aggregate Liquidation Preference	$ 42,546
Series A Preferred Stock
Capital Stock and Warrants
Shares Authorized	8,936,015
Shares Issued and Outstanding	4,308,812
Proceeds Net of Issuance Costs	$ 1,864
Aggregate Liquidation Preference	$ 3,849
Series B Preferred Stock
Capital Stock and Warrants
Shares Authorized	4,707,501
Shares Issued and Outstanding	3,557,371
Proceeds Net of Issuance Costs	$ 7,217
Aggregate Liquidation Preference	$ 7,257
Series m Preferred Stock
Capital Stock and Warrants
Shares Authorized	6,666,666
Shares Issued and Outstanding	2,037,910
Proceeds Net of Issuance Costs	$ 5,292
Aggregate Liquidation Preference	$ 6,114
Series m-1 Preferred Stock
Capital Stock and Warrants
Shares Authorized	333,334
Series m-2 Preferred Stock
Capital Stock and Warrants
Shares Authorized	1,660,756
Shares Issued and Outstanding	826,666
Proceeds Net of Issuance Costs	$ 2,480
Aggregate Liquidation Preference	$ 2,480
Series m-3 Preferred Stock
Capital Stock and Warrants
Shares Authorized	3,490,658
Series m-4 Preferred Stock
Capital Stock and Warrants
Shares Authorized	4,502,061
Series S Preferred Stock
Capital Stock and Warrants
Shares Authorized	13,108,333
Shares Issued and Outstanding	2,855,743
Proceeds Net of Issuance Costs	$ 23,118
Aggregate Liquidation Preference	$ 22,846

Capital Stock and Warrants - Common Stock (Details)			3 Months Ended
Capital Stock and Warrants - Common Stock (Details)	Jan. 26, 2022 USD ($)	Oct. 15, 2021 USD ($)	Mar. 31, 2022 USD ($)
Capital Stock and Warrants
Common shares issued in offering			$ 19,456,000
Net proceeds generated from the offering			$ 19,456,000
Class B Common Stock
Capital Stock and Warrants
Common stock conversion ratio			1
Class A common stock \| 2021 Regulation A Offering
Capital Stock and Warrants
Maximum amount of stock offered as per regulations		$ 40,000,000
Common shares issued in offering	$ 2,236,619,000
Net proceeds generated from the offering	$ 19,500,000

Capital Stock and Warrants - Warrants (Details) - USD ($) $ / shares in Units, $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Nov. 18, 2021	Sep. 10, 2019	Jul. 23, 2019	Apr. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Convertible Note Financing
Capital Stock and Warrants
Aggregate principal amount		$ 14.7				$ 1.0
Exercise price		$ 4.50	$ 2.50
Series S Preferred Stock
Capital Stock and Warrants
Number of warrants issued to purchase shares	2,941,814
Series S Preferred Stock \| Productions LLC [Member]
Capital Stock and Warrants
Exercise price					$ 8.00
Number of warrants issued to purchase shares					1,500,000
Series S Preferred Stock \| Convertible Note Financing
Capital Stock and Warrants
Exercise price			$ 4.50			$ 4.50
Expiration of warrants term						18 months
Number of warrants issued to purchase shares		2,941,814
Series m-4 Preferred Stock \| Convertible Note Financing
Capital Stock and Warrants
Preferred stock, shares issued upon conversion				1,432,786
Series m-3 Preferred Stock \| Convertible Note Financing
Capital Stock and Warrants
Exercise price							$ 4.00	$ 4.00
Preferred stock, repurchased as exchange upon conversion				1,432,786
Number of warrants issued to purchase shares							1,432,786	1,432,786

Capital Stock and Warrants - Outstanding warrants (Details)	Mar. 31, 2022 $ / shares shares
Capital Stock and Warrants
Number of warrants	5,874,600
Series m-3 Preferred Stock \| Warrants expiration date, December 31, 2024
Capital Stock and Warrants
Number of warrants	1,432,786
Exercise price \| $ / shares	$ 4.0000
Series S Preferred Stock \| Warrants expiration date, December 31, 2024
Capital Stock and Warrants
Number of warrants	2,941,814
Exercise price \| $ / shares	$ 4.5000
Series S Preferred Stock \| Warrants expiration date, July 31, 2024
Capital Stock and Warrants
Number of warrants	1,500,000
Exercise price \| $ / shares	$ 8.0000

Capital Stock and Warrants - Common stock reserved for future issuance (Details) - shares	Mar. 31, 2022	Dec. 31, 2021
Capital Stock and Warrants
Stock options to purchase common stock	8,493,831	8,799,415
Warrants outstanding for future issuance of convertible preferred stock and common stock	5,874,600
Stock options available for future issuance	423,586	216,003
Total shares of common stock reserved	28,378,519
Series A Preferred Stock
Capital Stock and Warrants
Preferred stock reserved for future issuance	4,308,812
Series B Preferred Stock
Capital Stock and Warrants
Preferred stock reserved for future issuance	3,557,371
Series m Preferred Stock
Capital Stock and Warrants
Preferred stock reserved for future issuance	2,037,910
Series m-2 Preferred Stock
Capital Stock and Warrants
Preferred stock reserved for future issuance	826,666
Series S Preferred Stock
Capital Stock and Warrants
Preferred stock reserved for future issuance	2,855,743

Related parties and related-party transactions (Details) - Konica Minolta, Inc. [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Related parties and related-party transactions
Service fees	$ 91	$ 60
Payables	$ 28		$ 29

Carrying amount as of the balance sheet date of obligations due all related parties.

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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