K.C. Ambrecht's questions to Rekor Systems (REKR) leadership • Q2 2024
Question
Asked about the financial impact of the large $35M contract, its hardware/SaaS mix, the size of the Texas and Georgia opportunities, the structure of the new financing facilities, and the company's timeline to profitability.
Answer
The $35M contract revenue will be recognized as units are deployed and is primarily hardware upfront with a 3-year SaaS component. Texas represents an enormous opportunity. Georgia is a very large, long-standing customer. The financing involves a prepaid advance (equity) and a separate revenue-sharing note facility with Ziegler. Profitability is targeted for late 2024 but may slip into early 2025.