Rekor Terminates Portion Of Its Sales Team

**** ***** ***** ********** *** "****** *********** ******* ** *** **** Growth *** ****** *******," ***** **** * *********** ******* of *** ***** ****.

** **** ******, ***** ** * call **** *****'* ***,**** ******, *** ********* **** **************** ************* * ****** ** *****'* ********, and **** ****** **-*, ** ******* these ***** *** ******* ******** **** the *******.

****: **** ** * ******* *** developing ********* ** *** *********, ********* cuts ** *** ******* ***** ****, integrating *** ********** ********* *** ***** business **** *****, *** ********** ***** go-to-market.

***** ********** **** *** **** ******** is ***** *************** **********, ***** *** impacted *** ******* ** *** ******** from **** *******. ** **** ******** to ****** **** ******* *** ****** our ******** ** ***** ** ** develops.

Executive *******

***** *****'* ********** **** ** ***** has **** * ~**-**% ********* ** the ***** ************, ************* ** ** not ** "**********" **** *** ** is "******* *****" *** **** ***** cuts *** "***-***********" *** "*********** **********" as **** *** ******** ***** ******** to *** ******. *******, *** ******* would *** ******* ** *** ********** of *** ******* ***** **** **** is ***.

***** *** ********** ********** **** **** not "***** ****" **** *** ******** business ** *** / ****** ******, sources *** **** ** *** ******* sales **** ** ***. ***** ** "realigning" *** ***** ** ******* ******** and ******** *** ********** **** *** focused ** ********* **** ********, *** a ****** ****** *** ** ****-******** and ***** **** ******** **************, *.*., (send ******* ***** **** ** ******, DOT **** ************** ****, ***.)

******* *** ********** ****** **** *** focused ** **** ********, *** **** recent ******* ****** *** **** ****** acquisitions ***********(*** **** ***** ********) ******* ***** is ********* **** ** *** ***** mobility ******* ****** **** *** ****** safety *******. *** ***** ******** ****** saw * ~***% ******** **** ****, while ****** ****** *** * ~**% increase *** ********* ** **********' ******* segment.

***** *** *******, ************, *** ********* moves **** **** *** ******* ** moving **** **** *** ******** / public ****** ******* *** ****** ** direct / ***** ********, *** ******* says ** **** ** **** *******-*******. However, **** ********* **** **** **** not **** **** **** ** ******** their ********** ******* ****. ******, **** are ********* *** *** **** ** hardware ************* *** **** ******** *** cross-sell *** ******** ***** *** *** STS (******** *********), ** **** **** them * "******* *******" *** *** a "*******" ** ***** *** ********* with ********* ** *** ******* ******** space.

Recent ****

** ******** ** *** ****** **** in *****'* **** *** *** **-***** VP ** *****,****** ***, ******** *******, *** **-***** ** ** ****** Field *********, ** ***** ** *****'* "Notable ******* ******":

"Urban ********" ** "****** ******" *********

*** *** ******* ******** ** *****'* business *** *** "***** ********" *** the "****** ******" ********. ** **** provided ***** ************ *** *****'* ********* videos *** *********, ** ***** ********* differ ** *** **** *** ***********.

*** ***** ******** ******* ** ******** at ***, ******, *** ************** ** capture (**** ****) ******* *****, *****, *****, *** "vehicle ********" ** *** ******* ****, greenhouse *** *********, *** ****. *** Rekor's ********* ** "********" *****:

*** "****** ******" ******* ** **** narrowly ******* ** ********* ******* ******* plates *** ******* ****, *****, *****, and ***** *****. *** *****'* ********* of "*****" *****:

*** ****'* **** ** *****'* ****** safety ********:

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

Rekor **** **-**% *********, "**** ********* ***** ** *** *****"

*** ******* **** ***** *** * 12-15% ********* ** *** ***** ****:

** *** **-**% ** *** ** unsizeable *********. ** ** *** **** miserable ***** ** *** ***** ** do, ** * ******, ** * manager. ****** ****** * **** ** a ******** *******, ** ** ***** pleasant.

***** *** ********** *** ***** *** a **-**% ******** ** *** ***** headcount (*** ******** ***** * ******* decrease), *** ******* *** *** ********* on *** **** ** *** ******* sales **** ** *** *** *********** caution ** ***** ******** ****:

** ** *** ******** *** ************ head ***** ** ****** ******* *** will ************* *** ** **** ** do **** ****. **** ** *** assume ******** ** ******* — ****** make **** ** ******* *** *** simply ****** ****** *********** **** *** be **********.

*******, ** *** *********, *** **** was ********** *****, *** **** *** out.

"Healthy *****, ***-***********, ***** ** *** ******, *********** **********"

*** ******* ******* ** *** ******* for *** "************":

*** ** *** **** ****, * have **** ****** *** ********** ******** long ****** ** **** ****healthy ************* ***** ***********. They churn them for ***-***********,shifts ** *** ******, and realignment **********. These ************ *** * ****** *** ** *** ** ****.

"A *** ** **** *** ** ** **** ***********"

************, **** ******, ****** "* ***" had ** ** **** ***********, *** alluded ** ***** ********* / ******* at *****:

** **** ***** ******** ****, ** you *** *** ******* *** ** your ****** **% ** ********** ***** year *** *** ***** ********* *****.

**** ** ****** **** *** ******, a *** ** **** *** ** do **** ***********. * *** ** it *** ** ** **** ** we **** ** ** * *** camera **** ** ***** ******? **, we ** ***.

Aligning *********, ********* ****

***** *** *** ***** ********** ***** about *** "************" *** ********, *** company **** ** ***** *** ********* to ******* *** **** ** ******** / *** ********:

*** ************ **** *** ***** *** thing. **** **** * ****** ***** performance **** **** * ****** ***** some ******* ***** *** ******** *** resources ** **** **** ********* **** code **** ****.

*** ******** ***** ******* **** ** very *******-*******, ** **** ** **** be **** ********* *** ******** ***** our **** ** ********** ** ***** folks *********. ** **** *** ******* over *** **** ****** ** ***** with ********* ***, *** ******* *** AI **** **** *** **** ***** solutions ** ** ** ******

****:

** **** * ****** ***** ** to ****** ******** **** ****** *** code. ** *** *** **** *** who **** ****.

Not ******** ** ***********, *** "***-******"

***** *** ******* **** ** ******** its **** ******* *** ******** ********, the ******* **** ***** ******** *** a ***** ***** ************ ** "****-**" of ******** *********** ** *** *** plan. **** ******:

*** ******** ****** **** **: "*** you ***** ********* ** *** ***********?" Our ******* ***** **** ****** * lot, *** **** ** ****** *** true.We **** *** **** ** *********** ** *** ***** **** *****, ** *** ***** ***** ** **** * *** *********** ******** **** ********. But we absolutely ******* ** **** ****** specifically to law enforcement or the larger public sector segment.

** **** **** ** *** *** seeing ** ****** *********** **** ***** out ** *** *** *********** *****.You *** *** ***** ** *** * ****-** ** * ***** ** ******** *********, not because that is not a good go-to-market. It ** *** *********** *** *** **** ** ******* ****** *** *** ******* ** **** ****. It ** *** ** ***-****** *****. We do a lot of licensing of our software to other companies. [Emphasis added]

****** **** **** **** ***** ** expand *** ******** **** *********** *** were ************ *** *** ** ************:

** *** **** *******-********, ***we *** *** ******* *** ********* ** **** ** *** ******** ***********; ** *** *** ******* ****. Over my time here, we **** ******* *** ******* ******* ** ** ****, *** ***** *******, ** ****** ** ** **** ************ because we had to pick and choose where to focus. [emphasis added]

In ****** ****** "*** ****"

******* ******* *** ******** ** *** channel ***** **** *** *** ****** to ******** *** ***********' ********, *** company ********* *** ****** ****** ******* is ********* *** *** *******:

** *** ** *** ****** ****** space *** ****; ** *** *** leaving **, *** ******* *** *** on ******** ******** *** ********** ** public ****** ** ***. ** **** one ** *** ****** ********, ** not *** **** ******* *** ****** safety.

*** *****'* ****** ****** ******** ******, see***** **** *** *** ****** ************ ******** - ******** ****, ****, Genetec, ******, ********, *****, *******.

"Not **** * *** *********** *** ******"

*******, *** ******* **** **** *** not **** * *** *********** ****** but **** ****** ******* ** **** "three ***** ***":

** *** *** **** * *** enforcement *** ******, ** *** ** the ************** *****, *** ******* ************ space *** ** **** *** ******** business ********.

Three ***** ***, ** **** ****** ******* ** *** ***********. We had this vision and our AI code was doing more and more and we thought that we could leveraging law enforcement get these LPR sensors deployed. Then mushroom into the cities and counties with the data but it did not work. It did not work for a few reasons. [emphasis added]

Now, ******** ********

*** ******* ******* ** *** *** approach ** *** ****** *** ******* from *** / ****** ****** ***** to ***, ******* **** *** ***** mobility / ************** ******** ** ***** are ************ *** *** *** ************** to ***** ******* **************, *** *** for ***:

***, ** *** ******* **** *** Department ** ************** *** *** ***** municipalities ****.They **** ** ** *** **************. **** ** *** **** ** ** ***. [emphasis added]

*******, *** ******* **** ** ****-******* its ******* *** *** / ****** safety *** *** ***** ******** ********, highlighting *** ****-************* *** "****[***] ******** problems":

*** ******* ** **** *** ****** has ******** ******** ** *** ***** or *** ****** **** **** ** AI-based ****** ** ** **************. **** that **** **************, *** *********** ** the *********** *********** *** *** *** plate *****, *** *** *** **** their ************** ****, ********** *** ******, and *** ******* ******. ** ******* a ****-********* *** ** ***** ******** problems.

*****, ****** ***** *** * "****" in ***** ********, *** ** *** created *****, *** *** **** ***** and **** ** *** ****** **** now ******:

** ** *flip ** *** ******** ******* ** * ****** ******** ** ********, ** *** ****** ** ** **** ****. It has created **** *****, *** *** ** ***** *** **** * ****** *** *** ********** ******* ** * ***** ****** **********, ** ******** *** **** ***** ***** ***. Today, if we went out to replace some of these heads, we ***** **** ** ******* **** ******* ** ******* ** *** *****, ******, *** **** ***** **** *********** ************** *** ****** ****** ********. [emphasis added

Explaining ****** ******* ********

***** *** ******* ************ *** ***** in *** ********, ** ******* ** its ******* ******** *** *** ** stemmed **** ********* *** ************ ************ and ************ ** *** *** **********:

** *** ****** ****** *****, ******** **** ****[*** **** ******]. *** ** *** things ** *** ** ** ******* developing ****** *** ******* ***** *** our ******** ******* ** **** ** and ********** *** **** ** ******* that ** ** *** *******. **, what ** ** *** ****** *** municipalities ** ** *** **** **** that ******* ****.

Replacing ********* **** ** ***** & ******

*** ******* **** **** ***** ****** / ******** ** ***** ** ********* traditional *****, ***** *** "**** ******," "limited," *** "********* *********" ******** ** what ***** ****** ** ******. *** company *******:

** ** ********* ********* ***** ********** that *** ******** ** *** ********** administration. *** ********* ***** *** * mechanical *******. **** ***** * ****** needs ** ***** *** **** *** road *** *** ** ******, ***it ** ********* ********* **** - * ***** ***** **** **, *** * ***** ***** **** **, ** ***** ** *** ****, *** ******* *** ** **** *** *** ** **** *****.

** *** **** *** ******* ******* up *** ****** ** *** ******* with * ***, **** *** ********* a ***** ********* ****** **** *** roadway, ****** * ****. ** ** married **** * *****, *** ** counts *** ******** *** *** **** vehicle **, ***it ** **** ****** **** *** ** ** ******* *** ********* ********* ** *******.

** ** ******* ***** ******* ** the **** ** *****, *** **** have ** ** *** ** *** roadways. **** **** *** ***** ****** those ********, *** **** *** ******* into *** ***** ******* ** **** tanker. ** ** *** **** *******, and *** ******* ** ****** **. [Emphasis *****]

Video ********* ** ** **** ** *********

*** ******* ********* ** *** **** video ********* *** * "****** ***" to ** ****, *** **** *** know *** ******* ****, ******, ***., and ********** ** (********* ** **** **). ****** **** ** ** "********** opportunity" *** **** ** ***** *** grow:

** *** ******there ** * ****** *** ** ** ****. If you do it through AI analytics, which happens at the side of the roadway, we **** *** *** ******* * **** **** *-***; *** ******* ***** ** ********* *** **** ****, *** ** **** *** ****, ****, *** *****. We know if you are a bus, you are a 18-wheeler, SUV trailing a boat trailer. We ********** *** **** ** **********, andit ** ******** ** *** ******** ** **** **. We *** **** ********* **** *******, *** ** *** ** ** ** ********** *********** *** **** ******* ** ***** *** **** **** *** ******. [Emphasis Added]

Not "******-**," ******** ********

***** *** ******* ************ *** ***** mobility ******* ** ** "**********" ***********, they *** ** ** *** "******-**" as *** **** ****** ******* *** analytics ** ******* *** **** *** data *** **** ******* *** **** LPR **** ** *** ***********:

** **** *** ****** ** ****** or ******* *** **** ****** **** is ******* ** *** **** ** bin **** *** **** **** *** provide ********** *** ****** ** *** quality ******* ** **** **** *** tailpipe ********* ***. ** **** ******* you *** ** ******** *******, * BMW **, ** * ***** ********. The **** ********** ** *** *******, if *** ****** * ******* *****, you ***.It ** *** ****** **** *** ** ******** ********. [Emphasis added]

******, **** ** *** *** ** emphasis ** * ****** ******* **** another ** *** ***** ** *** go-to-market:

** ** *** *** **** *** emphasis ** ** ******* ************ *** not ** ****** ******. ** *** as *** ***** *** *****'* **-**-******, I ** *** *** ****.

Public ****** ****** **. ***** ******** *******

*** ********** ********* *** ****** ****** market ** ********* ******** ** *** total *******:

*** **** ********** ** *** ****** safety ****** ** ******** ** *** whole *** * ***** **** **** address *** ******** **** ** *** absolutely ***** ** **** ******.

**** * **** ** *** **********, and *** **** *** *** ******** public ****** ** ** *** ******* numbers.

*******, *** ******* ** *** ******* sales *****, **** ****** ************ (** two ******* ******** *********), ******** ** this ***** ** "********** ***********," *** the *********** ** ******* ****** ** the ****** ****** *** ***** ******** segments ****** *** ******* ** ********* more ** *** ***** ******** ******* than *** ****** ****** ********:

ATD & *** ************

**** ***** ***** ************************ *** **** **** ******* *** idea ** ***** ********* **** ************* in *** "***** ********" *******, *** company **** **** *** ***** ********* as * *** ** "**** * massive *******" *** ******* ** ***** its *********:

*** ** ********** * ******* ******* company. **** *** **** ******, **** do ****, *** ** ** ******** to *******, *** *** ***********. *** of ***** ******** ***** **** ************ and *********** *****. *** ** * way ** **** * ******* ******* for **. *** **** *** ******** traffic ******** ****, *** ***** ****** to ****** *** ******** ** **** our ******* ** ********* *** *** enforcement *********.

** ** **** **** *** *** bought * ******* ******** ******* ** do **** ******* ********, **** ***** only ** ** ***********. ** *** that ** * ******* ** ***** our ********* *******, ********* *** *** enforcement *****.

** *** ******* *********** * ******* called ***, **** *****, ** **** up *** **** ** *** ****** and **** ******* *** ******* *********.