 Jeff Frick here with the Cube. We're in Mountain View, California at Nightscope. That's making autonomous vehicles. They're not cars, they're robots and they're for security. You can feel it, you can touch it, don't try to knock it over. It weighs too much, but we're excited to be here. Welcome to Nightscope headquarters. Good to have you here. We build autonomous security robots. Those are machines. They're collecting video, collecting signals like thermal signals, the signal from your phone. You can see everything around the machine. It's a 360 degree video that is running 24-7. We design, we engineer, we build, we deploy, we support everything that's done in-house. The machine, the data transfer, data storage, the analysis, user interface, all the hardware, software upgrades, all the maintenance service, everything. One throat to choke, we're responsible. They're collecting a bunch of information that then is transformed into a webpage that a customer can see. You don't sell these. These are not for sale as like going by car. We offer our technology and a machine as a service business model to give really smart eyes and ears for the security guards to cover more ground and be able to do their jobs again much more effectively. We've got a bunch of the robots behind us here in the shop. Why do you have four different ones? We wanted to give the customer security regardless of their environment. The first one is the K3. K3, first off, great to meet you and I couldn't help but notice when I came in the door there's boat loads of kind of homage to R2-D2 in the lobby. R2-D2 is my role model. I would not be where I am today without him. He's the OG. So indoor for the K3, outdoor for the K5, we have the K1 which is a static unit and then we have the K7 which is the largest unit that we have so far and it's going places that a machine is smaller cannot typically transfer. We're the only company in the world that's actually scaling autonomous technology in the real world with real clients doing real work. It's easy to go build prototypes but you want machines running 24-7 in the rain with cats, dogs, people, cars, trucks, goats and sheep and I don't know what else we've seen. That's a whole other level of engineering and fortunately we've been able to operate in that manner for a very long time. If you have a steady camera by default it just doesn't move so you can't cover that much space. With an autonomous machine you can take it whatever the crime is happening. You see something that's wrong, you move the machine over and you take a closer look. So it does a lot more than just this one square that you can look at all the time. How does that change the way the people do their job? Typically what you want the robot to do is the monotonous work. So at a mall the security guard walks around all day long and most of the time nothing happens. But instead of having to go and walk around the mall all day long, they're monitoring robots. They get to know how to deal with the machine, how to interact with people. Those are things of a higher level. We have about five years of data of images and people and we train our algorithms to say this is a pole or this is a person, this is a tree, this is a person. We also do the same thing with license plates. You detect there's a car first, then you detect there's a license plate and from there you detect all of the characters in that license plate and all of that uses machine learning for even to this friendship that there is a number one opposed to a letter L. How did you come up with designs? What were some of your initial thoughts? We spent maybe way too much time worrying about every little font, every radius, every surface, color treatments, everything else because part of it is putting that physical presence there to deter negative behavior. But at the same time it needs to be inviting enough to be accepted by society. What we didn't expect and ended up happening was a massive amount of robot selfies. It's a kid magnet, right? So parents can now explain in the real world why you should probably be studying math and science and engineering is a really good thing. You think that you're going to threaten Paul Blart and take his job as the mole cop? Well, most humans could put Paul Blart out of the job, but I do feel I am the best option for mole security. I don't know that he would agree with that, but I would probably agree with you. Sir, I'm warning you, sir. Sir! The reason why they're more effective can be summarized in one point. Security guards don't like to do their job. There is a 300% turnover rate in the security industry, people don't normally know that. It's a job that is very monotonous, very boring, and we're putting a robot there to do the same job so you can free people to do something of a higher level, and that's the main reason why they work. So if we can provide a lot more value to the client and then us retain the authority over the asset and be able to upgrade it as most technology around here in Silicon Valley, it's better and better and better and better. There's people who've had lots of crime. Vehicle thefts, assaults, batter, you name it. Just by the machine being there, they get nothing, they get zero. And that makes a big impact. We like working together with our human counterparts. I'm just curious as to where some of the real significant challenges are that people maybe don't appreciate. Autonomous or self-driving vehicles require a failover, a human one. Despite what some people think, there's nobody in there. And so we've got to be at right 100% of the time. And that requires a different level of scale and a different level of discipline. Certainly some bad guys must come up and hit it with a baseball bat or something. I mean, there's got to be a tough kind of initial reaction in some of these rough neighborhoods. I mean, how do they respond? You walk up like you did today. You pull into a parking lot. I have no idea what this thing does. I don't know what it's recording. Like I'll go to the next parking lot. And that's exactly what happens. We've got an alert system set up. So if anything happens to a robot, we will be notified. So if you had to choose between Wally or the Terminator, which are you closer to? Wally hands down. We both watch romantic movies when we are alone and we save lives. He gets me. And we were able to have a sister law enforcement agency and issuing an arrest warrant for a sexual predator. Gave the evidence to law enforcement and the guy was caught before he crossed the state line. That's a huge win. I would be remiss if I didn't ask the obligatory security question in terms of getting hacked. So hacked. The team's working on hardening a lot of the stuff, making sure stuff's encrypted. And we only transfer a certain amount of data that we really need or don't need. We change it often and then we hire white hat hackers to try to hack the system and we make the changes accordingly. It's extremely cost effective. I do not need vacation time. I am a robot. However, I do some yoga when I can. That's very good. You have 2 million guards and officers trying to secure 300 million people across 50 states. I don't care what math you're going to come up with, it doesn't work. And oh by the way, the population keeps growing and the tax base can't afford funding this stuff and you need something that's going to be the game changer and this is that game changer. Crime has a trillion dollar negative economic impact on the U.S. every single year. It's a hidden tax we all pay in blood, tears and treasure. And what do our political leaders do? We extend our thoughts and prayers. Hey listen buddy, no amount of thoughts and prayers is going to fix this problem. I've got a team of very dedicated engineers and patriots here working on trying to actually fix the problem. So we have the honor and privilege to be able to do that every single day here in Silicon Valley. And of course it's secure, right? You have to have keys and passwords and codes and all of the information is encrypted. So there's measurements that we've taken to make sure that the information is secured at all times. We have agreements with two of the largest security guard companies, Securitas and Ala Universal. I think self-driving technology is going to turn the world completely upside down. There are three next big hills that we have. Number one is getting the K7 out there and patrolling. Number two is concealed weapon detection that has been requested by a lot of our customers. Concealed weapons detection. A lot of our customers are requesting that. And third, on the software side of things, the actual prediction of crime that could potentially happen. Those are the next three big goals for Night's Code. We're about to release a concierge feature that allows a two-way dialogue between the human and the machine. You know, moss closing in 30 minutes or authentication at entrance for manufacturing facilities. A 18-wheeler shows up at three o'clock in the morning, can press the intercom button, have a two-way dialogue, get authenticated. We have the plates, we've got all the other signatures that we need to allow that truck in. What we build is actually a platform. We can add other sensors to the machine, depending on the needs of a customer. Put the sensor inside, it's extensible, it's already there, and you get your sensor and your information. That's our fourth round of funding. So we're using that capital to scale across the country. We're now holding contracts in about 14 states, and the company's now starting to accelerate our growth, so we're pretty excited about that. Thanks for inviting us over. It's fun to actually see the machines for real. Thank you so much for coming. Appreciate the conversation. Thank you, Jeff. Congrats on the new funding, and I can't wait to see how you deploy it. Appreciate it. All right. He's Bill, I'm Jeff. We're at Night's Goat. Check it out, Mountain View, California. Thanks for watching. We'll catch you next time.