Knightscope, Inc. (KSCP) Earnings Call Transcript & Summary

Good evening, everybody. We're going to give people just a couple more minutes to join or another minute to join. But while we do that, I'd like to welcome everybody to the Knightscope Town Hall. I am Stacy Stephens, Executive Vice President and Chief Client Officer, here at Knightscope, and I'll be moderating tonight's discussion. Joining me today is Knightscope's Chairman and CEO, Mr. William Santana Li. But before I turn it over to him, let's cover a few housekeeping items. Number one, this is an interactive event on Zoom and will be streaming on Facebook Live, which means a recording will be available to you later to view at your convenience. For those attending in Zoom, you will see a tab at the bottom of your screen that says Q&A. Click on that tab, it will open a dialogue box for you to submit your question. For those joining us on Facebook Live, enter your questions in the comment bar. I will be playing traffic cop and teeing up those questions for Bill as time permits. All right. Now that we have all that out of the way, let's get started. At this time, it is my distinct pleasure to turn it over to William Santana Li for a quick legal disclaimer, I'm sure. And then we'll jump right into a brief overview of our acquisition of CASE Emergency Systems. Bill?

Good to see you, Stacy. There may be some forward-looking statements, kind of read the normal disclaimer that we would have for any of our press releases. But with that out of the way, really excited to be here. I've bought a couple of dozen companies in my life. This is probably one of the most exciting ones and really excited about the future as we focus Knightscope on continued growth and making a difference across our communities in terms of improving overall public safety infrastructure. So we thought the best way to do this is not to PowerPoint everyone to death. I think Stacy has been accumulating a few questions here and there. I haven't seen most of them. So I'm going to be in the hot seat here for the next 60 minutes. Our trustee CFO is on the sidelines. Just in case there's like a lot of hard questions, and Mallorie's just going to have to take over the webinar. But with that, Stacy, you want to go ahead and hit me with the first one.

Actually, why don't you talk a little bit just about the acquisition itself just to give people a brief overview? Some may not have been able to read through the press release or get all the latest news. So let's kick it off with kind of what happened.

What happened? So we had listed the company back in January on NASDAQ. And part of the listing process, we had mentioned that we might become acquisitive over time. And so a few months after that, we started looking at potential acquisition targets. And around primarily, I'll say, 3 or 4 characteristics that we've been looking for are top line revenue growth, some technology components, talent and on a kind of as-needed basis or if it was opportunistic, anything around facilities because we've got a couple of issues that we wanted to work out. And so we've got a list of a few dozen potential targets. Came across CASE Emergency Systems that has continued to grow and started a little think about synergies, where could we have opportunities there. And we'll get into it during this webinar, but there's a lot of synergies from marketing and sales, to technology, to logistics and the like. And we struck up a good conversation with their awesome CEO, Sebastian Gutierrez. And we've been talking for what seems like years now, but it's only been a few months working through the transaction. And what we announced this week is the acquisition of CASE Emergency Systems by Knightscope. It's an accretive transaction. Top line revenue growth for -- top line revenue last year for CASE was about $5.4 million. They have a significant overlap in customer base, and we'll get into that today. And we also saw some interesting things that we can participate on in integration with technologies, be it solar, cellular. And then probably the most important point for me is building on what the CASE team has already built. They have 7,000 devices all across the country. And this is, I think, a wonderful opportunity to do, in concert with the incoming and existing clients, a massive overhaul of that public safety infrastructure to make places you live, work, study and visit much, much safer. So that's a little bit of the overview. The transaction actually was financed with convertible notes. So provided we pay that back down in cash, it's a nondilutive transaction for the most part. So that's a quick overview, but Stacy, do you want to get into it?

Absolutely. So right off the top, will the call boxes have Knightscope security capabilities? I like that question.

That is part of the plan, is let's go through each of the clients. So one of the, I think, fun and fascinating things that we've done just very quickly here is our internal client experience team has been chatting with our existing clients. And the CASE team has been doing the same as well, and I'm excited to report initial indications as everyone's kind of excited about the acquisition on both ends of the spectrum. And the idea is over the long -- over the assessment time is start looking through those 7,000 and see which ones would be appropriate for an upgrade. And it could be existing Knightscope capabilities. We might have a few things up our sleeve that we might want to put in some future technology products. But just to that question is basically the essence of the transaction, can we build upon what Knightscope's technologies have to offer to an existing infrastructure that, if you look at it, has basically 3 things that are key to get going. One is someone actually went off and did the public safety risk assessment and decided to put something there physically. It's got power, and it's got connectivity. And that's a great running start for us to work with the incoming CASE team on not only business development but some new technology development.

Are you planning on keeping all jobs and manufacturing in the U.S.A.?

Today, Knightscope, we design, engineer and build everything in the U.S., and that was actually an important point for us. CASE actually does that today as well, made in the U.S. So it's a great marriage of 2 U.S. companies that are really focused on public safety within our own borders. The idea is, yes, for that -- all those manufacturing jobs and the operating roles and the like all to remain U.S.-based.

I understand the near term that we want to focus on fulfilling the company mission, but could you please elaborate some more on the convertible note offering that funded this acquisition specifically? What is the yield on the note? And how is the rest of the acquisition funded?

All right, Mallorie. It's time. I don't want to get in trouble. So we'll let Mallorie take it over here.

So we did file an 8-K on Tuesday, the 11th, that has most of the details in it. But at a high level, it's considered to be an original discount note. So the face value of it is $6.075 million, and the net proceeds are $5 million.

Thanks, Mallorie, and that's intended to fund basically a majority of the transaction, which also, despite all the headwinds and all the volatility in the markets, we're able to get an important transaction like that financed. And I would like to take a moment just to thank Mallorie. She and our General Counsel, Pete Weinberg, have been more than burning the midnight oil for not just days or weeks but months on end getting this transaction done, relatively speaking, rather quickly. And Mallorie has been the best CFO I've ever worked with in my entire career, and I'm very, very lucky to be surrounded by an extremely strong, determined and relentless management team at Knightscope.

I think this ones for me. How many road shows have you done? How many contracts have you gotten from the road shows? Love the roadshow. So today was actually our 64th road show. Yes, we have closed contracts. I think we're up to somewhere around a dozen contracts close specifically as a result of the road show. But I expect that number to continue to go up because, obviously, the sales cycle kind of runs behind the demos. But we've been doing extraordinarily well. We've got some coming up. As a matter of fact, next week here in my hometown...

But why, Stacy? Like why would we do this road show? It was so much easier to just ship a robot across the country with 3 staffers for a 45-minute demo and take 4 days to do that. Like why would you put a bunch of robots in an aquarium, I mean, seriously?

It's actually proven to be an incredible tool. So when we calculated -- way back when, we calculated the cost to do a one-on-one demo, and it was running with shipping and the logistics of getting people there to do a demo...

And stress.

Well, that's a given for sure, as you can see from all the gray and the lack of up here. So any time we were doing a demo prior, it was costing us anywhere from, I don't know, $7,500 to $15,000 to -- just to do a demo, and that was ridiculous. Then we go to trade shows, and we do events and things like that. And of course, trade shows, if anybody has ever done any kind of event marketing, they know the stupidity and the cost behind that. So when the pandemic actually did us a favor because it had us refocus our efforts and try to figure out exactly how we wanted to do our marketing. And we came up with this really cool idea. Bill found the pod and the company that brought it to the U.S., and we were the first one to be able to do this. And now we have this super space age, really cool, as Bill called it, aquarium to be able to carry the show around the country. It's very cost effective. And as you saw, it already allows us to get in front of people and get the contracts sold.

I think some folks are going to be kind of trying to understand that a little bit better. So what works really well is our awesome lead generation team does the initial hello, and then hopefully, one of our seasoned security ex-law enforcement, ex-military folks have a chance to do a virtual demo like in a webinar here. But humans still want to touch, see, feel, hear about the machines, and then there's a lot of decision-makers involved. And so wherever we're able to conduct a kind of a virtual webinar, talk about the technology, qualify the client, make sure that we can actually be helpful, then bringing the robots to their doorstep is a really, really helpful step in the client development process. But the big important thing is, Stacy, like how are we going to fit these guys in the pie, like we need to get all this stuff out on the robot road show.

Yes. I have my call today with the company that helps us out with the logistics and everything, and we talked about that exact subject. So more to come on that later.

Meet Mallorie, but we're going to need a second pod and a third pod, don't let her come back on.

So next question. There have not been many announcements of robots being delivered or sales flowing. Well, first off, I don't agree with that assertion, not even a little bit. Summer sales always slow down just because everybody goes on vacation. So that's a normal cyclical deal. But if you go to our brand-new website that I just launched Friday, super excited about that.

What's the URL?

It is knightscope.com. Scroll all the way down to the bottom on the right-hand side, you'll see on the bottom menu, you'll see Investors. If you click on that and then go to the News Page, you will see all of the announcements regarding sales, regarding this recent acquisition, deployments and the like. So lots and lots that have occurred over the past year, and you can read all about them there.

I think let me pile in there. I would say things are actually accelerating. But always, to be fair, we're pretty frank with folks. The supply chain stuff is driving us crazy. And it's not necessarily what you might be thinking. In some cases, it is what you're thinking, which is, okay, we ran out of chips. We ran out of resin, or we ran out of one little tiny resistor that is no longer being produced and then causes a domino effect of all kinds of problems. And so we've been playing Whac-A-Mole for like months now. And our team has been methodically going through either redesigning stuff, finding different vendors, buying in advance, paying a premium, all the kind of tricks that can unlock or fix the situation. You can also end up on the other side of that coin, which is now you have everything fixed and you get a flood of parts showing up, and now you've got to figure out how you're going to get all the stuff built and out the door and deployed. So we're working through all the supply chain issues. It's going to make for a very bumpy revenue recognition as we kind of move forward here. We're still carrying like a couple of million dollar backlog of orders that we filed. You can check out our regulatory filings to get the exact figure. But we're working our way through it, and we're also seeing the benefits of the robot road show to -- back to Stacy's point.

So a couple of questions about CASE's volume. So CASE has 7,000-plus devices deployed, but how does that help Knightscope? And then the second half of that question is how many customers does this represent? And approximately what percentage of those customers do you think are likely clients for Knightscope?

Let me do those backwards. So there's nearly, nearly 100% overlap on CASE's clientele and ours. And that makes for a really strong thesis and an opportunity to execute where you're looking at health care facilities. You're dealing with the U.S. federal government. You're working through municipalities, all the public safety folks. There is a very significant overlap in a very positive way. So that made the transaction that much more exciting. How does this help us? I mean we can kind of talk through some of the synergies, but you want to get to a point or we want to get to a point where we can be that trusted adviser and technology provider to all our clients and as much as possible, always be able to say yes. You have x problem, we have y solution. And as you can kind of see behind me, that portfolio, over time, is going to continue to increase and increase and increase. And the theory behind that, and it's a little bit more than a theory, it's not a great thing to say, but criminals and terrorists can be anywhere. So if you're serious about the mission of making the U.S. the safest country in the world, Knightscope needs to be everywhere. And in order to be everywhere, we need almost every form factor possible, small, medium, large, extra large, from patrolling a highway down to, I'd like to say, incognito mode at a U.S. Federal Court House. So there's going to be a lot of product development and new products that need to come out over the next couple of decades. But if we're able to leverage the 7,000 devices that are there and upgrade them with additional AI machine learning capabilities, other features and functionality that brings not only keeping that client happy but potential additional revenue for us in the future. There's also some obviously economies of scale. There are some logistics solutions that fix a few problems with us because CASE actually has a lot larger footprint than we do right now in terms of just physical facilities. So there's a kind of very long list. And the more you go through it, the more you realize how transformative this transaction is going to be for both companies. And as I told both teams, we're stronger together. And this is not 1 plus 1 equals 2. This is 1 plus 1 equal 7. And we're really excited to kind of start working through all those synergies.

All right. I'm going to have to get stern on you. We got a lot of questions pouring in, and you need to keep your...

You want shorter answer?

We need the Cliffs Notes version.

All right. All right.

Will the CASE name be rebranded under Knightscope? Or will they stay the same?

I think there's always 1 key thing for the audience. Getting the deal done is really important. But the most important work to make sure our transaction works really well is the integration. That 3, 6, 9, 12 months, sometimes 3 years, if it's really complicated, all that integration work is going to make or break that deal. So there's probably a little bit a small time frame just to allow for some practical items to be handled, but everything will be rebranded under the Knightscope banner.

How are we doing for cash? We had a pretty high burn rate versus cash on hand at the end of the last quarter. I'd hate to see us sell a big slug of stock at $2, but I suspect we will need to do it.

Yes. So one of the things about being public is there's a lot of things I can't say. And if I do say something wrong, like Mallorie is going to come up, just pop up right there and like you can't say that. So we're not giving any kind of forward guidance in terms of any future financings or the like. We're very careful with the cash that we've raised thus far. I think we started the year with the most cash we've ever had on hand in the company's history. And I think as new revenues and new contracts come in, yes, the burn rate is a little bit higher than I think we all want, but we also need to continue to grow the company and invest in new technologies. We're hopeful that this transaction is going to be one of the key stepping stones and moving forward. But at this time, we don't have any announcements regarding our future financing or the like.

I'm going throw Paul under the bus with his question. This looks like rats light my way. Are you chasing or leading them? Come on. Really?

I'm not even going to comment on that. I want to comment on the specific question. I will say that it's extremely important that we're very serious about the long-term mission of securing in the U.S. So any 1 or any firm that's willing to stand up, put in the hard effort, the blood, sweat and tears to make a difference, we welcome. We are profoundly naive or arrogant to think that we're going to secure the U.S. all by ourselves. Like we need the 35,000 investors that helped us get to even be a public company. We're going to need every single mayor out there listening to step up. Public safety officials, we need to lock arms with the communities. There is a lot of people to transform a country. 1 single company by itself is not going to be able to do that. So we welcome what might be viewed as competitors. We welcome anyone that's working on public safety, and we only wish him the best.

Did you have much interest from colleges and universities for your robots that made this a good acquisition to look at? Or is it that this acquisition gives you a good opening to colleges and universities?

Good question. Actually, I think both -- I'm sorry, go ahead, Stacy.

No, I was just going to offer up one thing before you did. First and foremost, I want to make certain that everybody understands. This is not -- the acquisition of the CASE is not just colleges and universities. They certainly are a big user of the Blue Light type of technologies, but you've got corporate campuses, you've got private areas that are all using this. So it's not relegated just to colleges and universities. Bill, go ahead.

I mean it's airports, it's parks, it's high-value targets. It's all kind of -- so I think to answer the question, I asked the team to put a pause during COVID going after higher education or just the education vertical because of the practicalities of the pandemic and obvious budget issues. I think this opens up certainly new relationships in the field. And we do have some clients in that sector. But I think it's basically all the above of what you mentioned. I think it opened some new doors, but also possibly accelerate some of our other conversations that we've had ongoing. Again, there's a significant overlap in terms of the clients. And I think that's going to be very helpful for both teams and shortly to be 1 team, 1 mission, 1 focus.

What's the difference between their K1 tower and the Hemisphere? I'm wondering why one would purchase the Tower if the Hemisphere is less expensive if they similarly function.

So the K1 tower, I think, in some cases, provides a greater physical presence. Some of it's a little practicality of being able to position something at that particular location. And in some cases, the Hemisphere will be much more cost effective if you have a wall, for example, to hang it on. In some cases, you might be, I don't know, at an ingress-egress point at a parking lot and there's not really a wall or a hole there to put the Hemisphere. But again, what I want to make sure is, over time, that we're able to always, as much as we can, say yes to a client, or yes, but give us a little bit of time, and we need to make some changes. So over the long run, we're able to make a big difference.

What is the status on the pending government processing? How long until you believe that you'll be able to do business with the government? How far along we are, et cetera? And then the follow-up question to that is update on the process of acquiring a government contract.

So we already have a government contract. We can't execute on it because we have not gone through the entire FedRAMP process. And for the newer viewers, we're trying to wrap up here a nearly 2-year nightmare cybersecurity review process with the U.S. federal government. Our sponsor is our friends over at the U.S. Department of Veterans Affairs, who have been extremely gracious, thoughtful and supportive over a couple of year pretty intense process. We're tracking, as we've said publicly, to hopefully have an ATO, or an authority to operate at the end of this year. The team at Knightscope has also been burning the midnight oil, trying to get all the remediations done, new processes in place, stuff signed off, teams trained and the like. And as painful as this has been for us internally, and a lot of folks don't kind of see externally, it makes the company stronger. It improves a lot of controls and improve a lot of processes that frankly, we didn't have in place. So I'm grateful for the federal government to be doing this. That said, it's still painful. And so we're hopeful by the end of this year, we'll have that ATO and then we can start growing at scale at the federal level.

What is your plan for CASE's production and logistics facilities?

Well, part of the integration is getting the teams together and doing the assessments. I think 1 internal, not-so-glamorous issue we've had is now we have clients all across the country. I mean imagine you drove your car 24/7, probably at the end of the month, you might need a little maintenance and service. So we're having to ship parts all across the country. And sometimes, it would have been helpful to have in-market or a specific geographic region a, I don't want to say logistics hub, but a small footprint to be able to leverage and have some, obviously, controls and security around those parts or finished goods inventory. And I think CASE has about 9 production and logistics facilities. And getting the teams together to talk about how we can fix some of those logistics issues in terms of providing timely service and parts to our existing clients is certainly going to be a talking point.

In New York City, there's [ home ]. We are experiencing a lot of crime without apparent motive where the criminal is not necessarily put off or be identified. Will Knightscope expand to prevent crime other than largely through visual identification?

I think one way to kind of think about this is as I've often said, it's not a popular thing to say, but our country doesn't have enough officers and guards to be securing the country properly. It just -- we don't have enough humans, and we don't have enough tools to give those humans. In some cases, no amount of technology is going to be able to fix a problem. And in some cases, a human can excel. What we would want to do from a macro perspective is can we please relieve the humans that are doing the monotonous work that doesn't require a human and have them redeployed into areas or regions where a human presence armed or unarmed would actually deescalate some of those situations. So you kind of want to think about -- I don't know that's another different example. I don't know FEMA has multiple warehouses, as you might imagine. And they've got guards kind of staring at those warehouses and paying a pretty penny to do that. I think a machine probably could do that, might be able to do it better. But those same officers are needed in areas that might be a little bit more dangerous or are short staffed. So we kind of want to do, as we've often said, software plus hardware plus humans. There's no way you're just going to fix everything by downloading an app or building a robot or something like that. So it needs to be a kind of a combined effort.

The price of Knightscope services have dropped so low. Does it concern you? Or do you still have faith that will grow in the future?

I've seen that comment a lot. What we're trying to be responsive to our clients' needs, and that doesn't mean there's a wholesale massive change in pricing because we offer single shift or double shift or triple shift. Again, you want to be able to be helpful to a client in some cases, and it's a minority amount of cases, someone needs single-shift graveyard-only Monday through Friday, but they need triple shift on Saturday and Sunday. And so we should tell them no. That's probably not a good way to try to be a trusted adviser and try to fix a problem. So I know a lot of folks have been kind of looking at the part-time shifts or the single, double shifts and thinking the entire financial model has kind of changed dramatically, and that's not the case.

Does Knightscope have future acquisition target strategies? Or was CASE just a right time, right place development?

So for some of you -- we're just meeting or we're just getting to know each other, I was a former Director of Mergers and Acquisitions at Ford Motor Company. My last job there, I had bought 22 companies in 11 months. So I've been through this process a lot. I still have a little interesting, I don't know, thoughts from that time. I remember 1 week, I left on Monday, came home on Friday, I taken 16 flights in 5 days and just try to get all these deals done. And it was taxing but it was extremely exciting as well. Our -- half the management team, I think I mentioned at Knightscope has M&A experience. So this is not a onetime event, at least I don't plan it to be. We have a need to accelerate the growth of the company, and we need to do that organically. But we can also do that through acquisition where we can end up building something much faster. We can grow the revenues much more quickly. There's some technology that would be really interesting, or in this case -- in this case -- in CASE's -- in the acquisition of CASE, we've got 4 revenue, technology, talent and facilities. So I am continuing to work on additional opportunities for the operating group or the management team internally at Knightscope to consider and for the Board to consider as well. Remember, we're a publicly traded company. We've got 6 awesome independent Board members that have more than sharp pencils to make sure that we're working on the right things. And if we are to acquire anything else where there's going to be more than sufficient scrutiny as we go through the process.

Can you provide any guidance on '22, '23 revenues considering the CASE acquisition and resulting in cross-selling opportunities?

I'm sure Mallorie just perked up. But we don't provide forward-looking guidance. I don't think it would be out of -- out of context to just cite the 2021 audited financials. We're a reporting company who's kind of north of plus or minus $3.3 million last year. CASE is, I think, $5.4 million. So if you look at that combined, on a -- if you were to stay at the same rate, which I can say we're not, we've more than doubled the revenue run rate for the combined entity. I think 70-ish days from now, we'll be reporting the full financial impact. So you'll want to stay -- you want to stay tuned for that, and Mallorie and the team will be working on that required regulatory filing.

Does CASE already have technicians in place to provide service across the U.S. that will help Knightscope produce future maintenance costs for robots?

That was actually one of the interesting deal points for us as we've continued to grow the need for having nationwide service. In some cases, some of our existing partners may not have service coverage wherever we might sign a contract. There are -- off the top of my head, a dozen, [ 18 ] technicians that -- for those that are interested in getting cross-trained would give us some increased growth opportunity for those employees in terms of career development, but also for us in terms of having a much larger footprint out there. So the answer is yes.

Will the CASE market go to -- will the CASE go-to-market strategy change?

I think it has to. We both want us to grow significantly. In a lot of cases -- man, that word case just keeps coming up. In a lot of cases, both companies have been short staffed, but the combined entity is much, much stronger. So we've got a lot of bright people and can now compare notes and go, "Hey, is this the right process?" And in some cases, we have more resources to help or a better well-defined process. In some cases, it's the other way where we've got a massive hole, which CASE can fill and that could be from an engineering standpoint, it could be from a marketing and sales standpoint. But having 2 companies start working together, integrate them into 1 and then just kind of leave all the processes the same, no, good. We're going to need to -- if we want 1 plus 1 to equal 7, you kind of need to make some changes.

How will the CASE acquisition affect your path to profitability?

I think it's more than helpful. I think we bought a company that's profitable on a stand-alone basis. So that can only be helpful in terms of the top line and the bottom line. But I think Mallorie and I and the whole team are excited about all the operational efficiencies, the marketing sales stuff that we've talked a little bit at length today. And I get probably the most excited about kind of future product development and new features and stuff to provide to our clients.

This question actually seems suspiciously familiar. I think I actually answered it a couple of days ago, but I think it's good for everybody else's benefit. How are you working and partnering with financial analysts and rating companies like Bloomberg, et cetera, to build brand equity and investor appeal?

How did you answer it?

I set examples of the recent coverage done by Benzinga and so forth. So it was more along the lines of kind of sharing what the financial markets are doing when they see our news.

Yes. I think one thing that's a little obvious from the manner in which we took the company public, we didn't go through a normal S1 IPO with an underwriter. And so there is not yet equity research coverage from the greater Wall Street community. But I think it's going to be very difficult over time for a company at the cutting edge of self-driving technology, robotics, AI, electric vehicles, the entire country's focused on public safety. The company keeps growing significantly, not to have an analyst make a phone call and go, hey, what's going on over there? So we've had some initial calls, and that stuff will take care of itself. But we don't manage or control the analysts, so they'll choose what to work on. But I think with this acquisition, and perhaps some other things that we have up our sleeve, over time, that will cure itself.

What are your thoughts on the Chips & Science Act that was recently passed? And are there any plans to take advantage of the opportunity? What that had to specifically do with semiconductors, but I could be wrong on, Bill.

Yes. Typically, I don't believe that applies directly to us. We don't manufacture chips. That said, I'm big on manufacturing and manufacturing in the U.S. So anything that's going to help stimulate that and give us a strategic advantage, I'm going to be all for that. We've, as a country, not been as aggressive in a lot of technologies and taking that step. I know it's controversial because, in some cases, folks are like, oh, well, just let the private market or capital markets kind of do its thing. In some cases, that's the right answer. Not in all cases. But I don't believe that will have an immediate direct impact on us. And remember, these are -- building a chip plant is $10 million, $20 million item that takes a decade or so. So that's going to be a far range from us.

Can you give an estimate of the number of the robots that you're able to build per day or week, assuming the supply chain issues have been alleviated?

We typically will go on the same number we've disclosed before. Our existing K5 3.9 version takes us way too long to build. It's well over 100 hours. And we're pushing on the team to accelerate getting the K5 fifth-generation version, which would be, I always mess this up, all the way at the end. And that one actually is targeted to take less than 20 hours. So that's going to be an 80% improvement, and that will really facilitate getting the throughput out and again, provide the supply chain whack-a-mole game can stop at some point.

What is the status of the development of the K7?

Sore subject. So I personally and professionally want that vehicle out. I think a couple of things happened, to be frank. One is the technological lift is extremely high to get that machine out the door. If you don't believe me, please go look up the article. I think it was published this week by Bloomberg?