Rekor Systems, Inc 8-K, filed Aug 3, 2020

Rekor Systems, Inc. (REKR)

8-K 2020-08-03 For: 2020-08-03

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Added on April 12, 2026

About this 8-K

Rekor Systems, Inc filed this 8-K on August 3, 2020.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Delaware	001-38338	81-5266334
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

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

Registrant's Telephone Number, Including Area Code: (410) 762-0800

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

Exhibit No.		Description

99.1		Press Release dated August 3, 2020

	REKOR SYSTEMS, INC.


Date: August 3, 2020	/s/ Robert A. Berman
	Name: Robert A. Berman Title: President and Chief Executive Officer

	June 30, 2020 as presented	Impact of Note Exchange	Proforma June 30, 2020
Accounts payable and accrued expenses	$4,182	$(279)	$3,903
Total current liabilities	5,670	(279)	5,391
Notes payable subject to exchange for stock	14,636	(14,636)	-
Notes payable, long-term	5,367	-	5,367
Total liabilities	27,243	(14,636)	12,607
Additional paid-in capital	22,180	14,915	37,095
Total stockholders’ (deficit) equity	(10,862)	14,915	4,053
Total liabilities and stockholders’ (deficit) equity	$22,603	$-	$22,603

	Three Months ended June 30,		Six Months ended June 30,
	2020	2019	2020	2019
Net loss	$(419)	$(2,991)	$(4,193)	$(5,509)
Income taxes	7	12	13	24
Interest	1,086	1,334	2,250	1,543
Depreciation and amortization	466	341	889	539
EBITDA	$1,140	$(1,304)	$(1,041)	$(3,403)

Loss on extinguishment of debt	$200	$-	$200	$1,113
Share-based compensation	166	175	337	238
Gain on sale of business	(3,636)	-	(3,636)	-
Loss on sale of Secure Education	-	3	-	3
Adjusted EBITDA	$(2,130)	$(1,126)	$(4,140)	$(2,049)

	June 30, 2020	December 31, 2019
ASSETS
Current Assets
Cash and cash equivalents	$1,933	$1,075
Restricted cash and cash equivalents	496	461
Accounts receivable, net	1,887	776
Inventory	677	302
Notes receivable, current portion	170	-
Other current assets, net	311	175
Current assets of discontinued operations	4	7,441
Total current assets	5,478	10,230
Long-term Assets
Property and equipment, net	578	442
Right-of-use lease assets, net	330	283
Goodwill	6,336	6,336
Intangible assets, net	7,751	8,244
Notes receivable, long-term	2,130	-
Long-term assets of discontinued operations	-	3,457
Total long-term assets	17,125	18,762
Total assets	$22,603	$28,992
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities
Accounts payable and accrued expenses	$4,182	$3,678
Loans payable, current portion	251	-
Lease liability, short-term	231	148
Contract liabilities	902	749
Current liabilities of discontinued operations	104	5,757
Total current liabilities	5,670	10,332
Long-term Liabilities
Notes payable subject to exchange for stock(1)	14,636	-
Notes payable long-term	5,367	20,409
Loans payable, long-term	623	-
Lease liability, long-term	114	161
Contract liabilities, long-term	802	775
Other long-term liabilities	10	10
Long term liabilities of discontinued operations	21	536
Total Long-term liabilities	21,573	21,891
Total liabilities	27,243	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 June 30, 2020 and December 31, 2019, respectively	6,222	5,804
Commitments and Contingencies
Stockholders' Deficit
Common stock, $0.0001 par value, 100,000,000 and 30,000,000 shares authorized, 22,942,546 and 21,595,653 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	2	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 June 30, 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 June 30, 2020 and December 31, 2019, respectively	-	-
Additional paid-in capital	22,180	19,371
Accumulated deficit	(33,044)	(28,408)
Total stockholders’ deficit	(10,862)	(9,035)
Total liabilities and stockholders’ deficit	$22,603	$28,992

	Three Months ended June 30,		Six Months ended June 30,
	2020	2019	2020	2019
Revenue	$2,677	$1,416	$4,273	$2,426
Cost of revenue	1,276	271	1,770	761
Gross profit	1,401	1,145	2,503	1,665

Operating expenses:
General and administrative expenses	2,937	2,116	5,728	3,658
Selling and marketing expenses	424	336	795	495
Research and development expenses	819	302	1,362	307
Operating expenses	4,180	2,754	7,885	4,460

Loss from operations	(2,779)	(1,609)	(5,382)	(2,795)
Other income (expense):
Loss on extinguishment of debt	(200)	-	(200)	(1,113)
Interest expense	(1,086)	(1,334)	(2,250)	(1,543)
Other income (expense)	17	(36)	16	(34)
Gain on sale of business	3,636	-	3,636	-
Total other income (expense)	2,367	(1,370)	1,202	(2,690)
Loss before income taxes	(412)	(2,979)	(4,180)	(5,485)
Income tax provision	(7)	(12)	(13)	(24)
Net loss from continuing operations	$(419)	$(2,991)	$(4,193)	$(5,509)
Net loss from discontinued operations	(199)	(1,936)	(213)	(2,293)
Net loss	$(618)	$(4,927)	$(4,406)	$(7,802)
Loss per common share from continuing operations - basic and diluted	(0.03)	(0.17)	(0.22)	(0.32)
Loss per common share discontinued operations - basic and diluted	(0.01)	(0.10)	(0.01)	(0.12)
Loss per common share - basic and diluted	$(0.04)	$(0.27)	$(0.23)	$(0.44)

Weighted average shares outstanding
Basic and diluted	22,829,084	19,369,399	22,224,417	19,135,176