Rekor Systems, Inc 10-K for FY2020

Rekor Systems, Inc. (REKR)

10-K 2021-03-12 For: 2020-12-31

Added on April 12, 2026

About this 10-K

Rekor Systems, Inc filed this 10-K on March 12, 2021, covering the fiscal year ended December 31, 2020 (FY2020).

Headline figures

Fiscal year ended December 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $9.23M; up 68.8% from $5.47M a year earlier
Net loss: $14.18M; compared with a net loss of $15.88M a year earlier

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Delaware		81-5266334
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

7172 Columbia Gateway Drive, Suite 400 Columbia, MD		21046
(Address of Principal Executive Offices)		(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value per share	REKR	The Nasdaq Stock Market

Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Smaller reporting company ☒ Emerging growth company ☐

		PAGE
PART I
Item 1.	Business	4
Item 1A.	Risk Factors	16
Item 1B.	Unresolved Staff Comments	29
Item 2.	Properties	29
Item 3.	Legal Proceedings	30
Item 4.	Mine Safety Disclosures	31
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	32
Item 6.	Selected Financial Data	34
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk.	49
Item 8.	Financial Statements and Supplementary Data.	49
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.	89
Item 9A.	Controls and Procedures.	89
Item 9B.	Other Information.	90
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	90
Item 11.	Executive Compensation	96
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	100
Item 13.	Certain Relationships and Related Transactions, and Director Independence	102
Item 14.	Principal Accountant Fees and Services	103
Part IV
Item 15.	Exhibits, Financial Statements Schedules	104
Item 16.	Form 10-K Summary.	106

	Year ended December 31,
(dollars in thousands)	2020	2019
Revenue	$9,234	$5,469
Cost of revenue	3,533	1,652
Gross profit	5,701	3,817

Operating expenses:
General and administrative expenses	12,117	8,276
Selling and marketing expenses	2,247	1,646
Research and development expenses	3,185	1,429
Operating expenses	17,549	11,351

Loss from operations	(11,848)	(7,534)
Other income (expense):
Loss on extinguishment of debt	(3,281)	(1,113)
Interest expense	(2,503)	(3,909)
Other income	62	198
Gain on sale of business	3,631	-
Total other expense	(2,091)	(4,824)
Loss before income taxes	(13,939)	(12,358)
Income tax provision	(23)	(47)
Net loss from continuing operations	$(13,962)	$(12,405)

	Year ended December 31,		Change
(dollars in thousands)	2020	2019	$	%
Revenue	$9,234	$5,469	$3,765	69%

Report of Independent Registered Public Accounting Firm	50
Consolidated Balance Sheets as of December 31, 2020 and 2019	52
Consolidated Statements of Operations for the Years Ended December 31, 2020 and 2019	53
Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the Years Ended December 31, 2020 and 2019	54
Consolidated Statements of Cash Flows for the Years Ended December 31, 2020 and 2019	55
Notes to Consolidated Financial Statements	56

	December 31, 2020	December 31, 2019
ASSETS
Current Assets
Cash and cash equivalents	$20,595	$1,075
Restricted cash and cash equivalents	412	461
Accounts receivable, net	1,038	776
Inventory	1,264	302
Note receivable, current portion	340	-
Other current assets, net	469	175
Current assets of discontinued operations	2	7,441
Total current assets	24,120	10,230
Long-term Assets
Property and equipment, net	1,047	442
Right-of-use lease assets, net	426	283
Goodwill	6,336	6,336
Intangible assets, net	7,038	8,244
Investments in unconsolidated companies	75	-
Note receivable, long-term	1,360	-
Long-term assets of discontinued operations	-	3,457
Total long-term assets	16,282	18,762
Total assets	$40,402	$28,992
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued expenses	$3,898	$3,678
Loan payable, current portion	517	-
Lease liability, short-term	253	148
Contract liabilities	1,126	749
Current liabilities of discontinued operations	124	5,757
Total current liabilities	5,918	10,332
Long-term Liabilities
Notes payable, long-term	980	20,409
Loan payable, long-term	469	-
Lease liability, long-term	188	161
Contract liabilities, long-term	958	775
Deferred tax liability, long-term	24	10
Long term liabilities of discontinued operations	5	536
Total long-term liabilities	2,624	21,891
Total liabilities	8,542	32,223
Series A Cumulative Convertible Redeemable Preferred stock, $0.0001 par value, 505,000 shares authorized and 502,327 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively	6,669	5,804
Commitments and Contingencies
Stockholders' Equity (Deficit)
Common stock, $0.0001 par value, 100,000,000 and 30,000,000 shares authorized, 33,013,271 and 21,595,653 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively	3	2
Preferred stock, $0.0001 par value, 2,000,000 authorized, 505,000 shares designated as Series A and 240,861 shares designated as Series B as of December 31, 2020 and December 31, 2019, respectively	-	-
Series B Cumulative Convertible Preferred stock, $0.0001 par value, 240,861 shares authorized, issued and outstanding as of December 31, 2020 and December 31, 2019, respectively	-	-
Additional paid-in capital	68,238	19,371
Accumulated deficit	(43,050)	(28,408)
Total stockholders’ equity (deficit)	25,191	(9,035)
Total liabilities and stockholders’ equity (deficit)	$40,402	$28,992

	Shares of Common Stock	Common Stock	Shares of Series B Preferred Stock	Series B Preferred Stock	Additional Paid-In Capital	Accumulated Deficit	Total Stockholders’ Equity (Deficit)
Balance as of December 31, 2018	18,767,619	$2	240,861	$-	$15,518	$(12,064)	$3,456
Stock-based compensation	-	-	-	-	446	-	446
Issuance of warrants in conjunction with notes payable	-	-	-	-	706	-	706
Exercise of cashless warrants in exchange for common stock	815,290	-	-	-	-	-	-
Exercise of warrants in exchange for common stock	116,376	-	-	-	103	-	103
Common stock issued in OpenALPR acquisition	600,000	-	-	-	397	-	397
Issuance of common stock pursuant to at the market offering, net	1,292,730	-	-	-	2,949	-	2,949
Exercise of warrants related to series A preferred stock	3,638				4		4
Preferred stock dividends	-	-	-	-	-	(460)	(460)
Accretion of Series A preferred stock	-	-	-	-	(752)	-	(752)
Net loss	-	-	-	-	-	(15,884)	(15,884)
Balance as of December 31, 2019	21,595,653	$2	240,861	$-	$19,371	$(28,408)	$(9,035)
Stock-based compensation	-	-	-	-	796	-	796
Issuance of common stock pursuant to Exchange Agreement	4,349,497	-	-	-	17,325		17,325
Exercise of cashless warrants in exchange for common stock	265,563	-	-	-	-	-	-
Exercise of warrants in exchange for common stock	1,189,375	-	-	-	880	-	880
Issuance of common stock pursuant to at the market offering, net	5,216,562	1	-	-	29,929	-	29,930
Exercise of warrants related to series A preferred stock	98,229	-	-	-	101	-	101
Issuance upon exercise of stock options	298,392	-	-	-	701	-	701
Preferred stock dividends	-	-	-	-	-	(460)	(460)
Accretion of Series A preferred stock	-	-	-	-	(865)	-	(865)
Net loss	-	-	-	-	-	(14,182)	(14,182)
Balance as of December 31, 2020	33,013,271	$3	240,861	$-	$68,238	$(43,050)	$25,191

Class of assets	Useful life
Furniture and fixtures	2 - 10 years
Office equipment	2 - 5 years
Leasehold improvements	Shorter of asset life or lease term
Automobiles	3 - 5 years
Camera systems	3 - 5 years

Accounts receivable, net	$381
Other current assets, net	13
Property and equipment, net	21
Contract liabilities	(388)
Net assets acquired	27
Less intangible assets	7,436
Consideration paid	(12,397)
Net goodwill recorded	$4,934

Cash consideration	$7,000
Note payable	5,000
Common stock consideration	397
Total acquisition consideration	$12,397

Total assets sold	$4,549
Total liabilities assumed	3,514
Net assets sold	1,035
Closing cost	346
Consideration paid (see below)	4,000
Gain on sale of AOC Key Solutions	$2,619

Cash consideration	$3,400
Note receivable	600
Total AOC Key Solution Purchase Agreement consideration	$4,000

Total assets sold	$9,996
Total liabilities assumed	7,130
Net assets sold	2,866
Closing cost	122
Consideration paid (see below)	4,000
Gain on sale of TeamGlobal	$1,012

Cash consideration	$2,300
Note receivable	1,700
Total TeamGlobal Purchase Agreement consideration	$4,000

	December 31, 2020				December 31, 2019
	Global	AOC Key Solutions	Firestorm	Total	Global	AOC Key Solutions	Firestorm	Total
ASSETS
Cash and cash equivalents	$-	$-	$2	$2	$225	$93	$12	$330
Accounts receivable, net	-	-	-	-	2,763	4,055	-	6,818
Other current assets, net	-	-	-	-	238	52	3	293
Current assets of discontinued operations	-	-	2	2	3,226	4,200	15	7,441
Property and equipment, net	-	-	-	-	113	41	-	154
Right-of-use lease assets, net	-	-	-	-	130	499	-	629
Goodwill	-	-	-	-	669	-	-	669
Intangible assets, net	-	-	-	-	1,994	-	-	1,994
Deposits and other long-term assets	-	-	-	-	-	11	-	11
Long-term assets of discontinued operations	-	-	-	-	2,906	551	-	3,457
Total assets of discontinued operations	$-	$-	$2	$2	$6,132	$4,751	$15	$10,898
LIABILITIES
Accounts payable and accrued expenses	$-	$-	$31	$31	$461	$1,260	$33	$1,754
Lines of credit	-	-	-	-	1,842	1,894	-	3,736
Lease liability, short term	-	-	93	93	113	100	54	267
Current liabilities of discontinued operations	-	-	124	124	2,416	3,254	87	5,757
Lease liability, long term	-	-	5	5	30	467	39	536
Long-term liabilities of discontinued operations	-	-	5	5	30	467	39	536
Total liabilities of discontinued operations	$-	$-	$129	$129	$2,446	$3,721	$126	$6,293

	December 31,
	2020	2019
Parts and cameras	$558	$302
Finished goods	706	-
Total inventory	$1,264	$302

	Year ended December 31,
	2020	2019	Change
			$	%
Net cash used in operating activities - continuing operations	$(11,175)	$(7,256)	$(3,919)	-54%
Net cash provided by (used in) investing activities - continuing operations	5,188	(548)	5,736	1047%
Net cash provided by financing activities - continuing operations	24,847	6,787	18,060	266%
Net increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents - continuing operations	$18,860	$(1,017)	$19,877	1954%

2021	$1,126
2022	430
2023	320
2024	171
2025	37
Total	$2,084

	Year ended December 31,
	2020	2019
Risk-free interest rate	1.24%	1.35-3.03%
Expected term	6 years	5-6 years
Volatility	89.5%	80.4-89.8%
Dividend yield	0%	0%
Estimated annual forfeiture rate at time of grant	0%	0-30%

	Year ended December 31,
	2020				2019
	Global	AOC Key Solutions	Firestorm	Total	Global	AOC Key Solutions	Firestorm	Total
Revenue	$10,510	$3,392	$5	$13,907	$26,207	$12,845	$1,006	$40,058
Cost of revenue	9,190	1,866	-	11,056	22,680	6,905	501	30,086
Gross profit	1,320	1,526	5	2,851	3,527	5,940	505	9,972
Operating expenses:
General and administrative expenses	1,341	1,284	1	2,626	3,481	4,827	1,048	9,356
Selling and marketing expenses	79	131	-	210	170	528	48	746
Impairment of intangibles	-	-	-	-	1,022	-	1,549	2,571
Operating expenses	1,420	1,415	1	2,836	4,673	5,355	2,645	12,673
Income loss income from operations	(100)	111	4	15	(1,146)	585	(2,140)	(2,701)
Other (income) expense:
Loss on extinguishment of debt	-	-	-	-	(31)	(45)	-	(76)
Interest expense	(167)	(74)	-	(241)	(294)	(189)	-	(483)
Other expense (income)	5	1	-	6	(1)	(151)	(67)	(219)
Total other expense	(162)	(73)	-	(235)	(326)	(385)	(67)	(778)
Income (loss) from discontinued operations	(262)	38	4	(220)	(1,472)	200	(2,207)	(3,479)
Income tax provision from discontinued operations	-	-	-	-	-	-	-	-
Net income (loss) from discontinued operations	$(262)	$38	$4	$(220)	$(1,472)	$200	$(2,207)	$(3,479)

Operating lease right-of-use lease assets from continuing operations	$426

Current portion of lease liability	$253
Long-term portion of lease liability	188
Total lease liability from continuing operations	$441

Weighted average remaining lease term - operating leases from continuing operations	2.19

Weighted average discount rate - operating leases	9%

2021	$278
2022	104
2023	84
2024	18
Total lease payments	484
Less imputed interest	43
Maturities of lease liabilities	$441

	December 31, 2019	Additions	Amortization	December 31, 2020
Intangible assets subject to amortization from continuing operations
Customer relationships	$396	$-	$(34)	$362
Marketing related	230	-	(71)	159
Technology based	6,395	-	(1,034)	5,361
Internally capitalized software	1,223	162	(229)	1,156
Intangible assets subject to amortization from continuing operations	$8,244	$162	$(1,368)	$7,038

2021	$1,551
2022	1,470
2023	1,290
2024	1,060
2025	1,051
Thereafter	400
Capitalized software not yet placed in service	216
Total	$7,038

2021	517
2022	1,432
2023	37
Total	1,986

Less unamortized interest	(20)
Total notes payable	$1,966

Loan payable, current portion	$517
Loan payable, long-term	469
Notes payable, long-term	980
Total notes payable	$1,966

	Year ended December 31,
Deferred tax assets	2020	2019
Net operating loss	$9,728	$4,724
163(j) limitation	2,293	1,079
Lease liabilities	159	246
Other	148	322
Total gross deferred tax assets	12,238	6,371

Valuation allowance for deferred tax assets	(12,215)	(5,813)
Total deferred tax assets	113	558

Deferred tax liabilities:
Right-of-use asset	(126)	(202)
Goodwill and intangibles	(104)	(328)
Fixed assets	93	(38)
Total gross deferred tax liabilities	(137)	(568)
Net deferred tax liabilities	$(24)	$(10)

	Number of Shares Subject to Option	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding balance at January 1, 2019	1,227,557	$2.13	8.39		-
Granted	870,549	1.03	8.76
Forfeited	(111,537)	1.95	-
Canceled	(331,187)	2.05	-
Outstanding balance at December 31, 2019	1,655,383	$1.68	8.33		$3,256
Granted	20,000	4.32	-	(1)
Exercised	(298,392)	2.35	-
Forfeited	(88,841)	3.17	-
Canceled	(44,896)	2.13	-
Outstanding balance at December 31, 2020	1,243,254	$1.44	7.57		$7,827
Exercisable at December 31, 2020	849,908	$1.62	7.20		$5,339

	Number of Shares	Weighted Average Unit Price	Weighted Average Remaining Contractual Term (Years)
Outstanding balance at January 1, 2020	-	$-	-
Granted	488,834	4.44	2.12
Forfeited	(8,850)	3.75	-
Outstanding balance at December 31, 2020	479,984	$4.45	2.12

Name	Age	Position
Executive Officer
Robert A. Berman	61	President and Chief Executive Officer and Executive Chairman of the Board (Effective July 2020)
Eyal Hen	48	Chief Financial Officer
Riaz Latifullah	64	Executive Vice President, Corporate Development

Directors:
James K. McCarthy	69	Chairman of the Board and Strategic Advisor (Retired July 2020)
Paul A. de Bary	74	Lead Director
Glenn Goord	69	Director
David Hanlon	76	Director
Christine J. Harada	48	Director
Richard Nathan, Ph. D.	76	Director
Steven D. Croxton	53	Director

Name	Audit Committee	Compensation Committee	Corporate Governance Committee	Special Committee

Paul A. de Bary - (Independent)	Chair	-	Member	Member
Glenn Goord- (Independent)	Member	Chair	-	-
David Hanlon - (Independent)	-	Member	Member	Chair
Christine J. Harada - (Independent)	Member	Member	Chair	Member
Steven D. Croxton - (Independent)	Member	Member	-	-

	Fees earned or paid in cash	Total
Name	($)	($)
Paul de Bary	$76,000	$76,000
Glenn Goord	48,500	48,500
Christine Harada	57,250	57,250
Richard Nathan, Ph. D.	33,500	33,500
David Hanlon	45,250	45,250
Steven D. Croxton	38,500	38,500

		Board Meeting Fee		Committee Meeting Fee
	Annual Fee	In Person	Telephonic	In Person	Telephonic
Position	($) (1)	($)	($)	($)	($)
Board Member	25,000	1,000	500	500	250
Audit Committee Chair	20,000	1,500	500	500	250
Compensation Committee Chair	10,000	1,500	500	500	250
Governance Committee Chair	10,000	1,500	500	500	250
Special Committee	-	500	250	500	250
Lead Director	10,000	-	-	-	-

Name/Capacities in which compensation was received	Year	Base Salary		Bonus	Equity incentive awards		All other compensation (3)	Total
Robert Berman	2020	$495,000		$-	$-		$24,826	$519,826
Chief Executive Officer	2019	453,205	(1)	-	46,605	(2)	18,194	518,004
Eyal Hen	2020	371,667	(4)	15,000	237,000	(6)	19,862	643,529
Chief Financial Officer	2019	202,074	(5)	-	26,415	(7)	2,488	230,977
Riaz Latifullah	2020	305,000		25,000	-		25,260	355,260
EVP Corporate Development	2019	289,680	(8)	-	10,566	(9)	17,700	317,946

		Option Awards (3)					Restricted Stock Awards(3)
Name	Grant Date	Number of Securities Underlying Unexercised Option - Exercisable	Number of Securities Underlying Unexercised Options - Unexercisable		Option Exercise Price	Option Expiration Date	Number of Shares that Have Not Vested	Market Value of Shares of Stock that Have not Vested (2)
Robert Berman	5/8/19	16,667	33,333	(1)	1.00	5/8/29	-	-
	5/8/19	16,667	33,333	(1)	1.50	5/8/29	-	-
Eyal Hen	2/21/20						50,000(1)	403,500
	5/15/19	16,667	33,333	(1)	0.78	5/15/29	-	-
Riaz Latifullah	5/8/19	6,667	13,333	(1)	0.80	5/8/29	-	-
	12/31/16	174,595	-		1.42	12/31/26	-	-

	Number of securities to be issued upon exercise of outstanding options and restricted stock units	Weighted-average exercise price of outstanding options and restricted stock units	Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
	(a)	(b)	(c)
Equity compensation plans approved by security holders	1,723,238	$1.44	964,372
Total	1,723,238	$1.44	964,372

	Shares Beneficially Owned
Name and address of beneficial owner (1)	Number of Shares beneficially owned (2)		Percent of class
Directors and Named Executive Officers
Robert A. Berman	5,754,608	(3)	14.1%
Richard Nathan	1,625,104	(4)	4.0%
Matthew Hill	1,586,669	(5)	3.9%
Paul de Bary	137,834	(6)	*
Glenn Goord	166,334	(7)	*
Christine Harada	80,334	(8)	*
David Hanlon	80,334	(8)	*
Steven Croxton	57,834	(9)	*
Eyal Hen	34,559	(10)	*
Riaz Latifullah	187,929	(11)	*
All directors and named executive officers as a group (11 persons)	9,711,539		23.8%
5% or Greater Shareholders
Avon Road Partners, L.P.	2,940,104	(3)	7.2%
Rekor Holdings LLC	2,725,836	(3)	6.7%
Superius Securities Group Inc Profit Sharing Plan	1,799,015	(12)	4.4%
Cedarview Capital Management, LP	545,330	(13)	1.3%

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit	FilingDate	Filed/ FurnishedHerewith

2.1	Second Amended and Restated Agreement and Plan of Merger dated July 12, 2017, by and among Novume Solutions, Inc., KeyStone Solutions, Inc., Brekford Traffic Safety, Inc., KeyStone Merger Sub, LLC, and Brekford Merger Sub, Inc.	S-4/A	333-216014	2.1	7/13/17
3.1	Amended and Restated Certificate of Incorporation of Novume Solutions, Inc. as filed with the Secretary of State of Delaware on August 21, 2017	8-K	333-216014	3.1	8/25/17
3.2	Certificate of Amendment to Certificate of Incorporation of Novume Solutions, Inc. as filed with the Secretary of State of Delaware on April 30, 2019	8-K	001-38338	3.1	4/30/19
3.3	Second Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Rekor Systems, Inc., dated March 18, 2020	8-K	001-38338	3.1	3/18/20
3.5	Amended and Restated Bylaws of Rekor Systems, Inc.	8-K	001-38338	3.2	4/30/19
4.1	Form of Common Stock Purchase Warrant issued by Novume Solutions, Inc. on January 25, 2017	S-4/A	333-216014	4.3	6/9/17
4.2	Form of Common Stock Purchase Warrant issued by Novume Solutions, Inc. on January 25, 2017	S-4/A	333-216014	4.4	6/9/17
4.3	Form of Warrant issued by Novume Solutions, Inc. on March 12, 2019	8-K	001-38338	4.1	3/18/19
4.4	Unsecured Subordinated Promissory Note issued to Harry Rhulen by Novume Solutions, Inc. on September 29, 2017	8-K	000-55833	10.2	10/3/17
4.5	Unsecured Subordinated Promissory Note issued to Suzanne Loughlin by Novume Solutions, Inc. on September 29, 2017	8-K	000-55833	10.3	10/3/17

4.6	Unsecured Subordinated Promissory Note issued to James Satterfield by Novume Solutions, Inc. on September 29, 2017	8-K	000-55833	10.4	10/3/17
4.7	Unsecured Subordinated Promissory Note issued to Lancer Financial Group, Inc. by Novume Solutions, Inc. on September 29, 2017	8-K	000-55833	10.5	10/3/17
4.8	Form of Senior Secured Note issued by Novume Solutions, Inc. on March 12, 2019	8-K	001-38338	4.2	3/18/19
4.9	Note Purchase Agreement, dated as of March 12, 2019, by and among Novume Solutions, Inc., Cedarview Capital Management, LP, the Guarantors from time to time party thereto, U.S. Bank National Association, and the Purchasers from time to time party thereto	8-K	001-38338	4.3	3/18/19
4.10	Registration Rights Agreement, dated as of October 1, 2017, by and among Novume Solutions, Inc., G&W Ventures Inc. and Paul Milligan	8-K	000-55833	4.1	10/4/17
10.1#	2017 Equity Award Plan of Novume Solutions, Inc.	S-8	333-220864	4.7	10/6/17
10.2#	Employment Agreement, dated as of March 16, 2016, by and between KeyStone Solutions, Inc. and Robert A. Berman	1-A	024-10551	6.1	5/12/16
10.3#	Employment Agreement, dated August 1, 2016, by and between KeyStone Solutions, Inc. and Riaz Latifullah	1-A/A	024-10551	6.11	9/2/16
10.4#	Restated, Amended and Supplemental Employment Agreement, dated as of August 28, 2017, by and between Novume Solutions, Inc. and Riaz Latifullah	8-K	333-216014	10.2	8/29/17
10.5#	Second Restated, Amended and Supplemental Employment Agreement, dated as of March 29, 2018, by and between Novume Solutions, Inc. and Riaz Latifullah	10-K	001-38338	10.24	4/12/18
10.6#	Employment Agreement, dated as of November 14, 2018, by and between Novume Solutions, Inc. and Matthew Hill	8-K	001-38338	10.2	11/15/18
10.7	Assignment and Assumption Agreement, dated as of October 1, 2017, by and between KeyStone Solutions LLC and Novume Solutions, Inc.	8-K	000-55833	10.1	10/3/17
10.8	General Continuing Guaranty, dated as of October 4, 2017, by and between Wells Fargo Bank, National Association and Novume Solutions, Inc. for Global Technical Services, Inc.	8-K	000-55833	10.1	10/4/17
10.9	General Continuing Guaranty, dated as of October 4, 2017, by and between Wells Fargo Bank, National Association and Novume Solutions, Inc. for Global Contract Professionals, Inc.	8-K	000-55833	10.2	10/4/17

*	Filed herewith.
**	Furnished herewith.
#	Indicates management contract or compensatory plan.
^	Confidential treatment has been granted with respect to redacted portions of this exhibit. Redacted portions of this exhibit have been filed separately with the SEC.

		Rekor Systems, Inc.

		/s/ Robert A. Berman
	Name:	Robert A. Berman
	Title:	President and Chief Executive Officer Principal Executive Officer
	Date:	March 12, 2021