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8-K - CURRENT REPORT - Rekor Systems, Inc. | rekr_8k.htm |
Exhibit 99.1
Rekor Systems Preliminary Second Quarter Revenues Show Continued
Rapid Growth
Company
achieves over 60% quarter-over-quarter revenue growth in
2020
COLUMBIA, MD – July 8, 2020 - Rekor Systems, Inc.
(NASDAQ:REKR) ("Rekor") (“the Company”), a
Maryland-based company providing real-time roadway intelligence
through AI-driven decisions, announced today that it
expected gross revenue to be above $2.6 million for the second
quarter of 2020 which represents over 60% growth from the first
quarter of 2020.
Rekor’s recent divestiture of its TeamGlobal
subsidiary has completed the final step in the Company’s
announced change in strategic direction to sell lower margin assets
and focus on Rekor’s core
technology segment. Rekor also
recently reached an agreement with its principal debt holders to
exchange $14.6 million in aggregate principal of its senior
secured promissory notes for 4,208,659 shares of the
Company’s common stock and to modify the terms of the
approximately $4.9 million aggregate principal amount of the notes
that will remain outstanding. Detailed information concerning these
transactions is contained in the Company’s Current Report on
Form 8-K, as filed with the Securities and Exchange Commission (the
“SEC”) on July 6th, 2020.
“Following
our major restructuring, we are able to confirm that gross revenues
from our core technology businesses have continued to
increase,” said Eyal Hen, CFO Rekor. “With proceeds
from our recent divestitures and a significant reduction in
interest expense as a result of our debt for equity exchange, we
are pleased to be able to see continued rapid growth in our higher
margin technology businesses.”
The
financial data and other information disclosed in this press
release are unaudited. The financial data contained in this press
release is partial and preliminary and does not include all
disclosures required by accounting principles generally accepted in
the United States of America. The results for the three months
ended June 30, 2020 are not necessarily indicative of the results
to be expected for the year ending December 31, 2020. This release
should be read in conjunction with the audited consolidated
financial statements and notes thereto included in the
Company’s Annual Report on Form 10-K (the “Annual
Report”) for the year ended December 31, 2019 and the
Company’s Quarterly Report on Form 10-Q for the three months
ended March 31st, 2020 (the
“Quarterly Report”) as previously filed with the SEC.
Actual results in future periods may differ materially from
expectations due to a number of risks and uncertainties, including
those risk factors disclosed in the Annual Report and Quarterly
Report.
To
learn more about Rekor, please visit www.rekor.ai.
About Rekor Systems, Inc.
Rekor
(Nasdaq: REKR) is a Maryland-based company providing real-time
roadway intelligence through AI-driven decisions. Rekor bridges
commercial and government sectors with actionable, real-time
vehicle recognition data to enable faster, better informed
decisions with greater outcomes. Rekor is transforming industries
like Public Safety, Customer Experience, and Smart Cities in more
than 70 countries across the globe with smarter, quicker,
cost-competitive vehicle recognition solutions for security,
revenue discovery and recovery, public safety, electronic toll
collection, brand loyalty, parking operations, logistics, and
traffic management. We use the power of artificial intelligence to
analyze video streams and transform them into AI-driven decisions.
Our machine learning software can turn most IP cameras into highly
accurate and affordable vehicle recognition devices used to help
protect lives, increase brand loyalty, and enhance operations and
logistics, without the need to install expensive new
infrastructure. We make what was once considered impossible,
possible. To learn more please visit our website:
http://www.rekor.ai
Forward-Looking Statements
This press release includes statements concerning Rekor Systems,
Inc. and its future expectations, plans and prospects that
constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, including
preliminary information regarding Rekor's gross revenues. Such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
For this purpose, any statements that are not statements of
historical fact may be deemed to be forward-looking statements. In
some cases, you can identify forward-looking statements by terms
such as "may," "should," "expects," "plans," "anticipates,"
"could," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential," or "continue," by
the negative of these terms or by other similar expressions. You
are cautioned that such statements are subject to many risks and
uncertainties that could cause future circumstances, events, or
results to differ materially from those projected in the
forward-looking statements, including the risks that actual
circumstances, events or results may differ materially from those
projected in the forward-looking statements, particularly as a
result of various risks and other factors identified in our filings
with the SEC. Important factors that could have such a result
include a decline or weakness in general economic conditions, an
outbreak of hostilities, the ongoing pandemic and responses thereto
related to COVID-19, a decline or volatility in the securities
markets or regulatory changes or other adverse developments with
respect to the markets for the Company’s products and
services or an inability to obtain adequate financing. All
forward-looking statements contained in this press release speak
only as of the date on which they were made and are based on
management's assumptions and estimates as of such date. We do not
undertake any obligation to publicly update any forward-looking
statements, whether as a result of the receipt of new information,
the occurrence of future events, or otherwise.
Media Contacts:
Emily Burdeshaw
REQ For Rekor Systems
rekor@req.co
Investor Contacts:
Charles Degliomini
Rekor Systems, Inc.
ir@rekor.ai