SoundThinking/SafePointe Weapons Detection Business Analyzed

**** **** * **** ***, ************* expanded **** ********* ******* ********* *********** **********. **** ******** *** *** ******* made ***** ****? *** *** ** affect *** ********?

** **** ******, ** ******* **** SoundThinking **** ** ***** *** ******* detection ******** ** ****, **** ** tells ********* ** *** ********* *****, and **** ** **** ********.

Executive *******

************* ** ************ ********* ** *** main ********, *** *** *****-****-********* ********* in *** ******* ********* ****** *** not ************* ******** ******** ********** ** the *******, ** *** ***** *** declined ~**% ***** *** ********** ***********.

***** ********** ***** ** **** $** million ***, *** ******* ******* **** by */* ******* ** **** ** $5 ******* ****** *** **** *********** in *** **** ******* ** ****. It ******* ** ** **** ** the ******* *** ***** **** ****.

** *** ******** **** *** *** company, **** ******** ********* * "***** upgrade" ** *** ******* ********* ****, consisting ** ******** *******, ******** ********, and * ** ******. ************* ****** to **** **** ********* ****** ** customers **** ******* ** **** *** update, ***** ******, ** *** ******* is *******, ************* ******** *** *******'* revenue.

Background: ************* ***** ** ********

******* ********** ***** **** ******* ** **% ***** ~$** ******* *** *********** *** FY2024 ******* ******** ** $***-$*** *******, SoundThinking ** ************ ************ ** *** acoustic ******* ********* ********.

*****, *** ******* **** ** $*.* million ******** **** ******* (***** *** been ***** ************* ***** ****) *** is ****** ***** *** ***** ********** scrutiny **** *** **** *** ***********, where ******** ********* ***** *** ********. Combined, ***** ********* *** ***** **** of ******** ** ******* *** ************** (which ***** ** **-**% ** *** projected **** *******). ****, ***** *** two ** *** **** ****** ***** customers, *** ******** ****** **** *** to *********** ****** *** ************* **** the *******'* ******.

*********** ***** ****** ** *** ******** focus ******, *************'* ********** **** ***** public ****** *********** *** ********** ********* and *** ********* *** *******'* ******.

*******, *** *******'* ***** *** ******** ~50% ** *** **** ****:

*** ****, ************* ** **** *% since ** ****** ******:

SafePointe ***********

** **** ****** ****,************* ********* *** *********** ** ************* ********** *** $** ******* *** that ***** **** **** ****. ** was ***** ********* ***** ********* **********, *** **** *** *** ~$** million, ~$** ******* ** ***** *** paid ** ****:

************, *** **** ******** ********* ******** of $*-$**.* *******, ********** ** **********'* performance ** ****-****.**************** / *********** ******** ********** ******* Detection ******* *********** **** *******.

ARR ******** *********** *******

***** ************* ******** **********, ** ****** its ********* ***** ** ***** $** million ** *** ******** *** **** and *** ***-**** ****** *** *** incoming *****. *** ****** *****, ************* reevaluated ***** ***** *** ******* **** by *********.

****** ***** **** ****, *** ******* ********* *** ********* plans:

**'** **** **** *********** ** *** integration ** ********** **** ************* ** the *********** ********. *** ****-**** ***** is ** *** ******** ** ******** growth *** **-**-****** ***** ****** *** this ********** ********. *** ******** ******** adding * *** **** *** * outside ***** ******** *****. *** ******** 2024 ***** *** **** **** **targeted ** ** $** ******* ** *** ********, ************ ************* *** ***** **** *** ******* ***** ********. [emphasis added]

*******,***** ****** *****, *** ******* *****************-****-******** ******* **** ********** *** ******* guidance:

** **, *** ******** *** *** quarter **** ******* ********* *** ** a ********* ** *** ********** ************* liability ******* ** **** ******** ***** and ********** ******** ** ************* $*.* million ** *** *******revenues ** **** **** ***** **** ********, *** ** ******* *** ******** ****** ******** *** **********. [emphasis added]

***** ****** ***** **** ******* ****, *** ******* *** *** ***** new ******** ** ****** **** ******** ************, ** ****** *** *** ******** of $** ******* ** *** ******** and ********* "******* *****" ** $* million, ** ***** *****:

*******, * *** ****** ***** *** March ************, ********* ** **** ****, *** *** ********* * *** reduced ********:

*** ********** ******** ********* ** **** in ***** *** ********* *** ** currently **** $** *******. ** ******* this ******** ***** ******** ** **** the$5 ******* ****** *** ****** *** forecasted for SafePointe this year. [emphasis added]

***** ****, ************* ********** **** ******* guidance, *** ********* **** ********* ******* ****, *** ******* ****** *** ******** that ** *** **** ** ****:

** *** ********** ****, ** ** clear, ** ***** *********, *** ******** is ****** *****. *** **** ** give *** **** ***** **** * think *** ****** *********. ** *****, in ***** ** ********, ***** -- some *** *****-****, *** *****$0.5 ******* ** **, ***** ** **** ** **, **** $* ******* ** ** *** ******* **** **** ** **. That's for SafePointe alone. [emphasis added]

***** ** *** ******** *****, ** remains ** ** **** ** ************* will ***** *** $* ******** ****, as ** **** **** * ****** Q4. **** *********, *******, * ********** decrease ** * *******'* *** ******* goals ** * ********** ****** **** can ***** ** **** *********.

Product ******* *******

********* ******* *** * ******* *******, which *** ******* ** "**** ****" months *** ** "********* ************, *************, and ***********," ** *** ** *** reasons *** **********'* ******** ******, ***** SoundThinking ********** ********** ******* *****. *** example, ****** ***** **** ****, *** ******* *********:

******** *** ********** *** ** ****** pipeline ******* ****** *** ********* ** grow, **'** ************slower **** ******** *****, ********* ***** ******* ** ********* **** *** *** *** ************* that will be a part of a major September release.

*************, ********* **** ** *** ******* set *** ********* **** * ******** 3D ****** ***** ************, *************, *** integration ***********a **** **** ***** ***** [emphasis added]

******* *************** * "** ******," ******** ********, etc. **** ***** ** ******* *** SoundThinking/SafePointe ******* ** **** ****** ** a ******** ******.

***** ********* ******* *** *** ******* features ***** **** *********** ** *** company's *****-****-******** ******, ************* ***** ******* the ******* ***** ****** ********** ******** product ******** ***/** ****** ********** **** them, ***** ********* **** *********** ******** with *** **-**-****** ********, ***** ****, etc.

Potential ****** ***** ****** ** ****

** *** ******** ****, ****** *** Q3 **** ****, *** *** ********* potential "****** ***********," ***** ***** ** a ******** *********** ** ***** *** product *******:

We *** ******* ** **** ********* ****** *********** **** ** ***** **** **** ** ** *** ********* ** ****. Part of the next-gen SafePointe solution includes some AI work being done at the edge. There's a box at the edge that's connected to a 3D camera that is --has **** ****** *** ** ****** ********** ****** *** ****** *******.

** **'** ********* ******* ***** **** of ******* ** * ****** ********** quantity ** ******* *** **** ** next-gen **-***** *** **** *** *** remainder ** **** ****. *** ** that ***** **, **'** ***** ** have ** *** **** ****** ************* increase ** **** ** **** *** projections **** ** **** ** **** for **********. ***we ***** **'** ** **** *****. *** ** *** ******* ** ** ****** *******. [emphasis added]

Units ********

********* ** *** **-* *******, *** company **** *** ******** ***** ***** by **% **** ~*** ** ** 2023 ** ~*** ** ** ****.

***** **** ** ******* ******, ** still **** ** *** ****** ***** and **** ** ***** ** ******** units.

*************'* ******** **** ******* *** ************ interesting, *********** **** ** *** **** of *** ************, ** ******* **** SafePointe ******* *** ~*** ***** ********** "approximately $*.* ******* ** ***." ** remains ** ** **** ** ************* overstated **********'* ******* ** *** **** of *********** ** ** *** ******* lost *********.

*******

** ******* ** *** ******* *****, SoundThinking ********* **** ** ***** ********** on * ************ ***** **** * yearly **** ** ~$**,***. *** *******, its *** ****, "**** **** ** about $**,*** ** ***** ** ****** revenue" ****** ***** **** ****. *********, *************'* ***, ********* ** ****, "*** ******* ***** ** * lane ** ********* ******* $**,*** *** $20,000". *************, *******, *** *** ******** any **** ******* ** *** ******** length *** *** ********** (*************, *************, etc.)

*** *******, **** ** ******* ****'* and *****'* *******, ** *** ****** charges ~$***,*** *** * *-**** ***** ($30,000/year), *** *** ****** ***** *** unit *** ~$**,*** ** * ***-**** purchase.

Gross *******

****** *** **** ******* ****, *** company ****** *** ***** ******* *** SafePointe's ******** *** ****** **** **%, which ** ****** **** *****'* ** 42% *** *** **** ******, ** SoundThinking's *** ****:

**** * ****** **********, **** *** of *****lanes **** **** **** **% ** *** ****** ***** *** ****. So we would expect that the gross margins to be significant as well. [emphasis added]

K-12 *** ********

****** **** ********* ** *** ******* detection *****, ************* ** *** ********* K-12 *********, *****, ************, *** **** the ******* ****** *** **** ********* and ** ******** ** *******, ***********, hospitals, *** ****** *********, ** *** company **** ** ** ****.

************* **** ** **** ** ** not * **** *** **** *** schools ** *** ****** **** *** imply * ******** ******** **********, ***** is ** ******** ******** ***, ******, would ** *********** ** * *-** environment ***** *** **** ******* ** high, *** *** ***** ****** *** abundant. *******, ************* *** ********* ********* the ****** *** ***** ********* ******** personnel **-**** ***** ********* ******* *** secondary ********** **** **** ** ** conducted.

**** ***** ** ******* **** ******** approach ********* **** ** **** ***** SoundThinking's ******* ************ ** * ******** report.

Law *********** ***********

***** ** ******* ** ** **** if *** ******* *** ********** ******** its ***** *** **** ******** *** available, *************'* ****-*********** ************ **** *** enforcement ******** ****** *** ******* ** a ******** *** *** *******, ** law *********** *** ***** ********* *** purchasing ********* ** ***** ***-*****.