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Rekor Systems, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a revenue increase to $10,546,000 from $9,119,000 in the same quarter the previous year, driven by growth in the Urban Mobility revenue stream.
Cost of revenue, excluding depreciation and amortization, increased to $5,903,000 from $4,320,000, primarily due to personnel and direct costs supporting revenue growth.
General and administrative expenses rose to $8,637,000 from $6,871,000, influenced by the acquisition of All Traffic Data Services, LLC (ATD) and increased payroll expenses.
Net loss for the quarter was $12,646,000, compared to $10,566,000 in the previous year, with losses attributed to operating expenses and costs associated with the ATD acquisition.
Rekor's cash and cash equivalents decreased to $10,967,000 from $15,713,000 at the beginning of the year, with a working capital deficit of $7,389,000.
The company highlighted risks related to its ability to secure additional financing and continue operations, citing a substantial doubt about its ability to continue as a going concern.
Rekor completed a public offering in February 2024, raising approximately $26,362,000, and entered a Prepaid Advance Agreement in August 2024, securing $14,100,000 in net proceeds.
The filing details legal proceedings involving H.C. Wainwright & Co., LLC, with Rekor disputing claims related to a previous engagement letter.
Rekor's management identified a material weakness in internal controls over financial reporting, specifically related to the accounting treatment of the ATD acquisition.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Rekor Systems Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.