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    KC Ambrecht • Shay Capital

    KC Ambrecht is an Analyst at Shay Capital LLC, specializing in equity research with active coverage of companies such as Rekor Systems Inc. Known for engaging directly with company management during earnings calls and investor events, Ambrecht provides analytical insights focused on capital structure and financial performance. His career at Shay Capital has been marked by detailed company coverage and direct investor communications since at least 2020, with a background in equity analysis. Professional credentials and securities licenses are not publicly disclosed.

    KC Ambrecht's questions to Rekor Systems Inc (REKR) leadership

    KC Ambrecht's questions to Rekor Systems Inc (REKR) leadership • Q2 2024

    Question

    KC Ambrecht of Shay Capital sought clarification on the $35 million contract, asking about its impact on profitability, the revenue mix between hardware and SaaS, and the potential size of the Texas market. He also inquired about the scale of the Georgia customer relationship, the structure of the new financing facility with Ziegler, and the company's expected timeline to achieve profitability.

    Answer

    CEO David Desharnais and CFO Eyal Hen responded. Hen clarified the contract revenue is weighted more towards upfront hardware, with SaaS recognized over time. Desharnais emphasized that Texas represents an enormous market opportunity. Hen described Georgia as one of the company's largest, long-standing customers. He also distinguished between the prepaid advance agreement (an equity-like instrument) and the revenue-sharing notes with Ziegler, which provide debt financing against new contracts. Regarding profitability, Desharnais projected it could be achieved in early 2025, acknowledging potential delays from the hurricane season.

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