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Rekor Systems Inc. (REKR-6.32%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements for the year, showing an increase in revenue to $46,028,000 from $34,933,000 in the previous year. The increase is attributed to growth in the Urban Mobility product line, including contributions from the acquisition of All Traffic Data Services, LLC.
Cost of revenue, excluding depreciation and amortization, was $23,344,000, representing 51% of sales, compared to 47% in the previous year. This increase is due to a shift in revenue mix towards more labor-intensive activities.
The company reported a net loss of $61,410,000 for the year, compared to a net loss of $45,685,000 in the previous year. The increased loss is attributed to higher operating expenses and a $10,214,000 impairment of intangible assets.
Operating expenses increased to $77,007,000 from $60,550,000, primarily due to higher general and administrative expenses, selling and marketing expenses, and the impairment of intangible assets.
Rekor completed the acquisition of All Traffic Data Services, LLC, for approximately $20,576,000, which contributed to the company's revenue growth.
The company raised $26,362,000 through a public offering in February 2024 and entered into a Prepaid Advance Agreement, which was later terminated with all amounts settled.
Rekor's cash and cash equivalents decreased to $5,329,000 as of December 31, 2024, from $15,713,000 in the previous year, due to operating losses and acquisition-related cash outflows.
The company identified a material weakness in its internal controls over financial reporting in Q1 2024, which has since been remediated.
Rekor's management has assessed substantial doubt about the company's ability to continue as a going concern, citing insufficient cash to fund operations for the next twelve months.
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. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.