SoundThinking, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>SoundThinking, Inc. (SSTI) has filed its 2023 10-K report, detailing its financial and operational performance for the fiscal year ending December 31, 2023.</b>

AI Summary

SOUNDTHINKING, INC. (SSTI) filed a Annual Report (10-K) with the SEC on April 1, 2024. SoundThinking, Inc. (formerly ShotSpotter, Inc.) filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's business address is 39300 Civic Center Drive, Suite 300, Fremont, CA 94538. The company's IRS number is 470949915. The filing includes data related to various financial and operational aspects, such as accrued liabilities, intangible assets, and revenue recognition.

Why It Matters

For investors and stakeholders tracking SOUNDTHINKING, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of SoundThinking's financial health, operational activities, and strategic positioning for the past fiscal year, which is crucial for investors to assess the company's performance and future prospects. The detailed information within the report, including financial statements, risk factors, and executive compensation, allows stakeholders to make informed decisions regarding investment, partnerships, or other business relationships with SoundThinking.

Risk Assessment

Risk Level: medium — SOUNDTHINKING, INC. shows moderate risk based on this filing. The company's business is heavily reliant on government contracts and public sector adoption, which can be subject to budget fluctuations and political changes, posing a medium-term risk to revenue stability.

Analyst Insight

Investors should review the detailed risk factors and financial statements in the 10-K to understand potential challenges and opportunities for SoundThinking, particularly concerning its reliance on government contracts.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-04-01 — Filing Date (Date of submission)
• 1934 Act — SEC Act (Legislation governing the filing)
• 001-38107 — SEC File Number (SEC registration number)

Key Players & Entities

• SOUNDTHINKING, INC. (company) — Filer name
• SSTI (company) — Ticker symbol
• SHOTSPOTTER, INC (company) — Former company name
• 39300 CIVIC CENTER DRIVE, SUITE 300 (location) — Business address street
• FREMONT (location) — Business address city
• CA (location) — Business address state
• 94538 (location) — Business address zip
• 470949915 (identifier) — IRS number

FAQ

Industry Context

SoundThinking, Inc. operates in the software and services sector, specifically focusing on public safety technology, including gunshot detection systems.

Regulatory Implications

The company's filings are governed by the Securities Exchange Act of 1934, requiring regular reporting of financial and operational information to the SEC.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the risk factors section to understand potential challenges and mitigation strategies.
3. Examine any disclosures regarding government contracts and customer concentration.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-04-01: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the 2023 10-K filing, providing an update on the company's status since the previous year's filings.

Key Financial Figures

• $0.005 — nge on which registered Common Stock, $0.005 par value per share SSTI Nasdaq Cap
• $21.86 — Registrant, based on a closing price of $21.86 per share of the Registrant's common st

Filing Documents

• ssti-20231231.htm (10-K) — 3047KB
• ssti-ex10_3.htm (EX-10.3) — 271KB
• ssti-ex10_4.htm (EX-10.4) — 66KB
• ssti-ex10_7.htm (EX-10.7) — 121KB
• ssti-ex10_14.htm (EX-10.14) — 169KB
• ssti-ex21_1.htm (EX-21.1) — 4KB
• ssti-ex23_1.htm (EX-23.1) — 4KB
• ssti-ex31_1.htm (EX-31.1) — 12KB
• ssti-ex31_2.htm (EX-31.2) — 12KB
• ssti-ex32_1.htm (EX-32.1) — 7KB
• ssti-ex32_2.htm (EX-32.2) — 7KB
• ssti-ex97_1.htm (EX-97.1) — 52KB
• img13566902_0.jpg (GRAPHIC) — 766KB
• img13566902_1.jpg (GRAPHIC) — 738KB
• img13566902_2.jpg (GRAPHIC) — 572KB
• img13566902_3.jpg (GRAPHIC) — 214KB
• img13566902_4.jpg (GRAPHIC) — 96KB
• img13566902_5.jpg (GRAPHIC) — 791KB
• img13566902_6.jpg (GRAPHIC) — 397KB
• img13566902_7.jpg (GRAPHIC) — 59KB
• img13566902_8.jpg (GRAPHIC) — 72KB
• img13566902_9.jpg (GRAPHIC) — 689KB
• img13566902_10.jpg (GRAPHIC) — 988KB
• img13566902_11.jpg (GRAPHIC) — 815KB
• img13566902_12.jpg (GRAPHIC) — 583KB
• img13566902_13.jpg (GRAPHIC) — 73KB
• 0000950170-24-039479.txt (&nbsp;) — 31411KB
• ssti-20231231.xsd (EX-101.SCH) — 1836KB
• ssti-20231231_htm.xml (XML) — 2265KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 25 Item 1B. Unresolved Staff Comments 56 Item 1C Cybersecurity 56 Item 2.

Properties

Properties 57 Item 3.

Legal Proceedings

Legal Proceedings 57 Item 4. Mine Safety Disclosures 58 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 59 Item 6. [Reserved] 60 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 61 Item 7A. Qualitative and Quantitative Disclosures About Market Risk 77 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 78 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 113 Item 9A.

Controls and Procedures

Controls and Procedures 113 Item 9B. Other Information 113 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 113 PART III Item 10. Directors, Executive Officers, and Corporate Governance 114 Item 11.

Executive Compensation

Executive Compensation 114 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 114 Item 13. Certain Relationships and Related Transactions, and Directors Independence 114 Item 14. Principal Accountant Fees and Services 114 PART IV Item 15. Exhibits and Financial Statement Schedules 115 Item 16. Form 10-K Summary 115 Exhibit Index 116

Signatures

Signatures 119 SPECIAL NOTE REGARDING FO RWARD LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements that involve substantial risks and uncertainties. The forward-looking statements are contained principally in the sections of this Annual Report on Form 10-K entitled "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business," but are also contained elsewhere in this Annual Report on Form 10-K. Often, you can identify forward-looking statements by the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "objective," "ongoing," "plan," "predict," "project," "potential," "should," "will," or "would," or the negative of these terms, or other comparable terminology intended to identify statements about the future. Forward-looking statements include statements about: our ability to continue to increase revenues, secure customer renewals and expand coverage areas of existing public safety customers; our ability to continue to add new customers for our public safety and security solutions; our ability to grow both domestically and internationally; our ability to effectively manage or sustain our growth; our ability to maintain, increase or strengthen awareness of our solutions; our ability to achieve and maintain service level agreement standards in our customer contracts; our ability to increase revenues, which has been impacted by supply chain disruptions and delays; future revenues, hiring plans, expenses, capital expenditures, capital requirements and stock performance; our ability to service outstanding debt, if any, and satisfy covenants associated with outstanding debt facilities; our ability to attract and retain qualified employees and key personnel and further expand our overall headcount; our ability to comply with new or modified laws and regulations that currently apply or become applicable to ou

B USINESS

Item 1. B USINESS Overview We are a leading public safety technology company that combines data-driven solutions and strategic advisory services for law enforcement and civic leadership. As of December 31, 2023 we had approximately 250 customers and to date have worked with approximately 2,100 agencies to help drive more efficient, effective, and equitable public safety outcomes. In April 2023, we changed the company name, ShotSpotter, Inc., to SoundThinking, Inc., reflecting our broader impact on public safety through a growing set of industry-leading law enforcement tools and community-focused solutions. As part of the rebranding, we introduced our SafetySmart TM platform that includes five data-driven tools consisting of: (i) our flagship product, ShotSpotter (formerly ShotSpotter Respond), our leading outdoor gunshot detection, location and alerting system trusted by 170 cities and 19 universities and corporations as of December 31, 2023, (ii) CrimeTracer (formerly COPLINK X), a leading law enforcement search engine that enables investigators to search through more than one billion criminal justice records from across jurisdictions to generate tactical leads and quickly make intelligent connections to solve cases, (iii) CaseBuilder (formerly ShotSpotter Investigate), a one-stop investigative management system for tracking, reporting, and collaborating on cases, (iv) ResourceRouter (formerly ShotSpotter Connect), which directs the deployment of patrol and community anti-violence resources in an objective way to help maximize the impact of limited resources and improve community safety, and (v) SafePointe , an artificial intelligence ("AI")-based weapons detection system, that we added when we acquired SafePointe, LLC ("SafePointe") in August 2023. We also offer other security solutions within our flagship product offering ShotSpotter, including ShotSpotter for Highways, ShotSpotter for Campus and ShotSpotter for Corporate, that are typically smaller-scale d

View Full Filing

View this 10-K filing on SEC EDGAR