Rekor Systems, Inc. - REKR STOCK NEWS

Rekor Systems (NASDAQ:REKR) announced a significant development on February 8, 2023. The company received a purchase order extension exceeding $900,000 for a one-year subscription of its AI-driven roadway intelligence software, specifically for a federal agency's national security application. This demonstrates Rekor's ongoing commitment to enhancing national security through its advanced technology. The CFO noted that this order reflects an increase in software revenue from existing customers, signaling positive momentum in the national security market.

Rekor Systems, Inc. (NASDAQ: REKR) has secured $12.5 million in a private placement of Senior Secured Notes, with up to $15 million total expected. This funding, led by CEO Robert A. Berman, aims to enhance the company's capabilities in public safety, urban mobility, and transportation management. The Notes carry a 12% annual interest with maturity in 30 months. Up to $2.5 million may be funded within six months at investors' option. Ongoing discussions with large multinational investors may lead to strategic investments, although no assurances are provided regarding these transactions.

Rekor Systems (NASDAQ: REKR) has secured a significant contract in Mexico, where a large state has awarded a purchase order for its AI-driven vehicle recognition and roadway intelligence solutions across 1800 locations. The implementation will occur over the next 12 months through its partner IBANOR SA de C.V.. This contract is touted as the largest deployment of its kind in Mexico's history, enhancing public safety and operational efficiency. The Chief Revenue Officer expressed that this expansion validates Rekor's growing footprint in the region.

Rekor Systems has secured over $5 million in contracts with various state Departments of Transportation, including Alabama, Florida, Mississippi, Ohio, and Pennsylvania. The contracts involve the deployment of advanced non-intrusive vehicle classification technology across more than 32,000 data collection sites. Additionally, Rekor's AI technology is undergoing proof of capability studies in New York and South Carolina. The company aims to enhance roadway safety and data accuracy through its innovative solutions, potentially paving the way for further expansion in 14 other states.

Rekor Systems, Inc. (NASDAQ:REKR) has terminated its at-the-market equity offering program with B. Riley, effective immediately. This decision comes after the Company has not sold any stock through the ATM since September 2022. The termination aligns with a new financing initiative announced by Rekor. The Company continues to focus on providing advanced AI technology for intelligent infrastructure aimed at enhancing safety and sustainability in urban areas.

Rekor Systems, Inc. (NASDAQ:REKR) announced a term sheet to issue up to $15 million in notes, enhancing its cash position and accelerating growth in public safety and transportation management. Funds will support the development of the Rekor One platform, designed for roadway intelligence. The company has received approval from over a dozen state Departments of Transportation for its edge-based applications. Additionally, Rekor is engaging with multinational companies for strategic investments, aiming for a closing in early January with a 12% interest rate on the notes.

Rekor Systems, Inc. (NASDAQ:REKR) announced the closing of its Automated Traffic Safety Enforcement (ATSE) business sale to Altumint, aimed at refocusing on its core data services. This strategic shift is intended to enhance Rekor's position as a technology and software-driven company. CEO Robert A. Berman highlighted this move as a milestone in the company's transformation, aiming for higher margins through innovative roadway data services. The company is positioned to increase recurring revenue by leveraging its AI technology for actionable insights.

Rekor Systems reported a 184% increase in revenue to $7.4 million for Q3 2022, compared to $2.6 million in Q3 2021. Revenue for the first nine months of 2022 rose 38% to $15.4 million. Recurring revenue surged to 65% of total revenue for Q3 2022, up from 47% a year earlier. The company's acquisition of STS is driving growth, contributing $3.5 million in Q3 revenue. However, operating expenses increased significantly to $16.1 million. Net loss per share widened to $(0.90), significantly impacting financial metrics.

Rekor Systems, Inc. (NASDAQ:REKR) is set to release its third quarter 2022 financial results on November 14, 2022, after market close. A conference call will follow at 4:30 p.m. Eastern Time to discuss the results. Interested participants can dial in or access the webcast for insights into the company's financial performance and operations. Rekor, a leader in AI-driven intelligent infrastructure, focuses on enhancing roadway safety and smart mobility through innovative technology. For more details, visit rekor.ai.