Rekor Misses Q1 2024 Financial Targets Analyzed

******* **** *****, **** ******** ******** ********** * ******* ** *** sales ****. ***, *** ******* *** ********* Q1 **** **********, ************* ******* *** revenue ****.

********, ** ******** ******** *** **** appointed ** ** ********* ******** ** the *****, *** *** *** ** becoming ********, **** *** *** ***** promoted ** ***.

***** ** **** ***** *** ********* changes ** * ****** ******, ** this ******, ** ******* *** *** main ****** **** **** *** *** missing *** ******* *****, **** *** subsequent ********** ** *****'* **** ********.

*******, ** *** ********** ****, ****** ******** - ******** ****, ****, Genetec, ******, ********, *****, ***************** ********* (*****, ****, ****/*****) ******** 2024 - ******** ****, ****, *******, Motorola, *****, *******.

Stock **** **%

*****'* ***** *** **** ~**% *** morning ***** *** ** **** ******** call **** ******** ****** *** ******* operational ******:

*** *******'* ***** ** *** **** 20%+ ***** ** **** ****** ** 2018 *** **** * ******** ** its **** ** ****:

Q1 **** ******* **** & **% *** ********* *******

***** ******** *** ** **** ******* to ** $*.* *******, * **.*% YoY ******, *** ****** ******* ********* by $*.** *******. *** ****** *** primarily ********* *** ******* ************** ** *** (*** ******* ****)******* **** ****:

*** ******** ** ******* *** *** three-month ****** ***** ***** **, ****, compared ** *** ***** ****** ***** March **, ****,was ********* ************ ** *** *********** ** ***. During the three months ended March 31, 2024, revenue attributable to ATD was $2,364,000. [Emphasis added]

* **% ******* ** ********* *** value ** ** *********** ** *** miss:

*** *** ***** ****** ***** ***** 31, ****, ** *** ********* ****** at $*,***,***, ******** ** $**,***,*** *** contracts *** *** *** ***** ****** ended ***** **, ****. **** ********** a ******* ** $*,***,*** ** **%, period **** ******, ********* ******* ** large ********* ********* **** ****** ** the ***** ******* ** ****. ***** multi-year ********* *** ***** ** ****** in ****.

*** ******* **** *** **** ** "impacting *** ******* ******* *** ****," which ** ********** ********* ** ** $85.5 ******* ******* **** ****:

***** *** *** ******* **** *** new ******* ** ** *** ** 2024 ******** *******, **-*, ** ******** call *** **** ** ***** ** give ******* ** *** ** ******** call.

***** ********** *******

***** **** ** *** * ****** contract ********** **** * ** ***** that *** ******** ** ***** ** Q1 *** ******** $** ******* **** year, *** ** *** ******* *** to ******* ***** ********:

*** ** *** ******* ****** ** the ** ***** ** *** ******* has ******* *** *********** ******* ** six ****** ** ******** *** ** policy.This ** ********* *** ******* ******* *** ****. Based ** ***** **********, ** *** ******* **** *,*** ***** ******** *** **** ******* to be purchased by the state, resulting in cash ***** ** ************* $** ******* *** *** **** ****. [Emphasis added]

***** ***** **** **** ***** ** "impacting *** ******* ******* *** ****," it *** *** ******* *** ******** adjustment **** *** ******** $**.* ******* goal.

***** ******** ** *** ********* **** deal ******* *** *** ********* * material ********** ** ***** ** **** it:

** *********** ** **** **** *********** ramp ** ******,we ****** ** *** **********, ********** ****** **** ** **** ******* ********** to fulfill a large monthly cadence of deployments. We anticipate that our teams will still be able to meet an aggressive yet condensed second-half rollout to get to the 1,000 units. However, the exact cadence has not yet been communicated to us. We expect to be able to provide an update on this deployment on our second-quarter call. [Emphasis added]

*** ******* **** ** ** "*******" the ****** ** ************ *** ********, and *** ****** **** **** *** states *** ****** **** ********* *** are "********** ** ******* **** *****":

** * *** ** ****, ** are ******* *** ********* ***** *** inform *** ******** *** **** ******** that *** ******** * ********* ** wide ****** *********** ****** ***** ********. The **** *** ****to ***** *** ******** ******** **** **** *** ****** * ***** ** *** ******* ** *** ******* ****** ******. [Emphasis added]

***** **** ***** ********** ******** *** Q1 *******, ** ***** **** ****** such ******** ** ***** *** **** showshow ******* *** ***** **** *** ********** ** ******* **** *****, but can also be an advantage as it clears the deck for mass adoption of our technology moving forward. This is a significant change in how states think about roadway operations and how they must safeguard their transportation infrastructure, and they're rising to the task with strong actions. [Emphasis added]

** ***** ** ******* ***** ****, they ***** ** ** * **** position ***** **** ****. *******, ** this ** ***** ***** ***** ** not *****, *** **** ** *********** for ****.

Gross ****** ****

******* *** **** ** ******* *** decline ** ******** *** *****, *****'* adjusted ***** ****** ******** ** **.*% in ** ****, *.* ********** ****** lower **** *** ** **** ******** gross ****** ** **.*%:

*** ******* ********** **** ****** ** a ***** *** ** ******** *****, which ********* ***** * ****** ***** margin. ****, *** ******* ********** *** 84% ******** ** **** ** ******* to ** ******** ** "********* *** other ****** ***** **** ** ******** that **** ******** ** ******* *** increase ** *******." ************, ***** **** of *** ******* ****** ** ** 2024 *** **** ****** (*** ******* ****)***********, ** ********* **** $***,*** ** the ******** ** **** ** ******* was ******* ** *** ***********.

******* ******

******* *** ******* ***, ***** **** weather ********** **** ********** ******** *** gross ******:

**** ******** *** ********* *** ** lower-margin ******** *** ******* ******* ********** in *******.

*** ******* ******* ********** ** *** the ******* ** *** **** ******* impacted *** ******** ******** ***, ****, contributed ** *** ********** ~**% ******* decline ******** ** ** ****:

**** ** ** **** ******** *** fixed *******, ** *** ******** ********, this ** ******** ********* *** ** day ****** * ***** ****** **** would ** ** *** ****** *** there *** *** ****. *** ******* to ** ******* * ******** ***** we're *** ******* ** ** **** in ****** **** ********* *******. *** that's **** ********* ****'* ******** ** the *****. ** ******* ***** * big **** ** *** ********* ******** and ****'* **** ** *** ********* us ** **.

"Material ********" **** *** (*** ******* ****) *********** *** ******

** *** ** ******* **** ******* and ******** ****** ****** ** ******* state ***********, ***** **** ********* "* material ********" ******* ** *** *** impact ***** *********** ** *** (*** ******* Data):

** ********** **** *** **** ***** *** (*** ******* ****) ***********. ** *** *** **** ******** internal ******** ** ***** **** ******* to *** *** ********** ********* ** intangible ****** ******* ** **** ***********. As * ****** ** ******* ** correctly ******** *** *** ****** ** the ***********. ** ********** **** * material ******** ****** ** ** ***** 31 ****.

*** **** ********

*****'* **** ******* *** **** ** ~$12 ******* ** *** *** ** March ****, **** **** ~$**.* ******* at *** *** ** ****. *** company's ***** **** ******** ***** ******* why** *** * *********** **** ** its ***** **** ** ****. *** ******* ******* *** **** spent ** ********* ********** **** ~$*.* million ** ** **** ** ~$*.* million ** ** ****. *******, ** top ** ********* **********,********* ******* $*.* ******* ** **** to *** *** *** *** (*** Trafic ****) **** ** ** ****.

** *** *******'* **** ****** ******** call, ** ********* ******* ** *** size ** *** ************ *** *** it ******* *** **** ******* ** improve ** *** ****** **** ** the **** ** ********* ******* ** unready ***** ** ******** ********** **** along:

***, *** ** ******* *** *******'* cash **** ****. *** ******* ***** sized *** ************ **** ****, *** it's *** ** ************ ***** ** its ****, *******, ***** *** *********** operations ** *********** *** **** **** demand. ** ***** *** ****** ************ will ******* ****** ** *** *********** proceed ** *** ****** **** ** the ****.

**** ******

*********, ***** *** ****** *** **** burn ** *** ***** ****, *** the ******** ******** ** *** **** Rekor **** **** *** ****-**** ************ and ******* ** ***** ** ****** repeated ***, **** **** ** ***, relatively *********** **** ** *** ************.

*** ******* *** *** ******** ******* it ** ********* ******* ***** **** investors, ***** ** **** ** ********* and ****** ***** ***, ***** *** sharp ******* ** *** ***** *****. As ***** ****** ****, ******* ***** contracts ***** **** ********** **** *******.

******** ************* ** *** ** ****

** *****'* ******** **** **** ******* this ****,*** ******* **** ** ***** ** become ********** ** *** *** ** 2024:

*** ******* ********** ** *** **** recent ******** **** **** ** ** still ** ***** ** ******* **** plan ******* ************ ** ** ****:

* ***** *** **** **'** ****, very ********* ** *** **** ******* here. *** ** ** ******* *** opportunity ***** ** **********. **** ** look ** ***** ** *** ***** in **** ***, *** **** **'**, what **'** ******** ** *** ******** plan *** ****, **'** ********* **'** on ***** *** ****.

** ** **** ***, ** ******** impact, ** * *********. **that **** ** *** ** ** * ********* ******** ***** ** ** *** ********* ********, *** *****, ******* *** ** ******, ** * ********* ****** *****. But that is moving along actually quite well, I will say. [Emphasis added]

** **** ** ****** ***** ***** able ** **** *** ****** ************. We *** * **** ****** ********. The ********** ** **** *****, ** what, * ***** **** ***'* **** to ******* ***, *** ********* **** I ******* ** **** *** ***********'* large **** ***** ********** ** **** positioned. ** ** **** ****** ************* and *********** **** *** ********* *****. So **'* ****** * ****** ** time. *** *** **** ** *** that ****.This ** ***** ** **, * ***** * ***** **** *****. [Emphasis added]

Testing ******

***** ****** ******** ** **** ****** IPVM *** *** ******* ******** ******** against ***** ***********:

• *** ******** - ******** ****, ****, Genetec, ******, ********, *****, *******
• ******* ********* (*****, ****, ****/*****) ******** 2024 - ******** ****, ****, *******, Motorola, *****, *******

** ***** *** ******* *** *********** problems *** *** **** ** ****** it ****** ****** *****, ** *** a **** ****** ** **********.