1-241-26_ODOT_STS_Response.pdf

Ohio Department of Transportation (ODOT)

Data Purchase of Non-intrusive Traffic Monitoring Collection Sites

Inviation To Bid (ITB) 241-26

May 29, 2025

SUBMITTED BY:

Southern Traffic Services 2911 Westfield Road Gulf Breeze, FL 32563 www.rekor.ai proposalsteam@rekor.ai 410.762.0800

ITB 241-26 Data Purchase of Non-intrusive Traffic Monitoring Collection Sites

Submitted 05/28/2025 | Page 1

TABLE OF CONTENTS

1. Introduction

2. Affirmation and Disclosure Form

3. Company Background

(410) 762 0800 www.rekor.ai

6721 Columbia Gateway Drive, Suite 400 | Columbia, MD 21046

1. INTRODUCTION

May 28, 2025

Ohio Department of Transportation (ODOT) 1980 W. Broad St.

Columbus, OH 43223

Southern Traffic Services, Inc. (STS), a wholly owned subsidiary of Rekor Systems, Inc., is pleased to provide our response to Ohio Department of Transportation’s (ODOT) Invitation to Bid entitled, “ITB 241- 26 Data Purchase of Non-Intrusive Traffic Monitoring Collection Sites.”

Incorporated in 1988, STS has grown steadily to include offices in Alabama, Florida, Georgia, Mississippi, Ohio, Pennsylvania, South Carolina, Texas, and Virginia. In June 2022, STS was acquired by Rekor Systems, Inc., a publicly traded company. We specialize in traffic data collection, traffic-monitoring site management and construction, traffic safety and operations studies, and transportation planning analysis.

STS is focused on increasing the accuracy, efficiency, and safety of data collection activities, such as traffic counts.

We have a unique understanding of current and future trends in technology-based data collection and management and are eager to assist ODOT in exceeding expectations for this project. We have been providing ODOT with data from its non-intrusive systems since 2016.

When awarded this contract, our current Ohio-based staff is prepared to continue supplying ODOT with verifiably accurate traffic data. STS will also continue to strive to improve the performance of ODOT’s non-intrusive data collection systems. We are confident that we will continue to hone the polling, transferring and reporting of all non-intrusive traffic data.

Our offer remains valid for sixty (60) days after the date of the proposal's opening. Should you have any questions, or if you would like additional documentation, your contact for this ITB is Sheila Knowles, Vice President of Financial Operations. She can be reached at (800) 786-3374 ext. 107, sknowles@rekor.ai, or proposalsteam@rekor.ai.

Sincerely, Eyal Hen Chief Financial Officer Rekor Systems, Inc.

Docusign Envelope ID: 93926F1D-4648-41D1-B457-749C16A2C435 mailto:sknowles@rekor.ai mailto:proposalsteam@rekor.ai

Submitted 05/28/2025 | Page 2

2. AFFIRMATION AND DISCLOSURE FORM

Submitted 05/28/2025 | Page 3

Submitted 05/28/2025 | Page 4

3. COMPANY BACKGROUND

3.1. Firm Description

Southern Traffic Services, Inc. (STS) was incorporated in the State of Florida in December of 1988 as a S- Corporation and is headquartered in Gulf Breeze, Florida. Over the last three decades, STS has grown steadily to include offices in Alabama, Florida, Georgia, Mississippi, Ohio, Pennsylvania, South Carolina, Texas, and Virginia. In June 2022, STS was acquired by Rekor Systems, Inc. (Rekor), a publicly traded company specializing in artificial intelligence (AI) and machine learning (ML)-based solutions in both public safety and traffic management situations. Rekor’s headquarters are in Columbia, Maryland. STS is a subsidiary of Rekor and ODOT will continue to work with trusted STS personnel for this contract.

STS has created a reputation for innovation, providing the best quality data for our State and Federal partners using cutting-edge technology. The Project Team has a long history of working with the Federal Highway Administration (FHWA) to help develop standards that reflect a positive traffic data collection program. The state agencies we have worked with have seen their programs become leaders in traffic data collection in the FHWA’s evaluation process.

Rekor is a publicly held C-corporation with the following organization:

3.1.1. Continued Partnership

STS has provided professional services to ODOT for over 12 years. STS is the current consultant for the Non-Intrusive Traffic Monitoring Collection Sites contract and has consistently provided the State with exceptional service and non-intrusive data for seven years. We currently manage and provide data from over 200 non-intrusive Wavetronix/Class sites nationwide. STS specializes in traffic data collection, traffic monitoring site management and construction, traffic safety and operations studies, and transportation planning analysis. STS is extremely familiar with task work order-based contracts and has an outstanding record of delivering quality work.

STS is focused on increasing the accuracy, efficiency, and safety of data collection activities. We have a unique understanding of current and future trends in technology-based data collection/management and are eager to help ODOT surpass expectations for this project.

Submitted 05/28/2025 | Page 5

3.2. Equipment, Facilities, and Personnel

We currently have over 119 employees, 1,700 portable event recorders, 150 non-intrusive video & machine learning count systems, 8 portable weigh-in-motion (WIM) devices, and 75 STARS video systems for manual studies. STS is well equipped to address all technical and electronic challenges found in the day-to-day operations of this contract.

Please see below the complete list of STS’ dedicated facilities and personnel:

State City Facility Type Personnel Alabama Birmingham • 2 Traffic Data Collection Technicians

Florida

Gulf Breeze HQ

• 1 President

• 1 Director of Program Management

• 1 Director of Sales

• 2 Project Managers

• 3 Project Coordinators

• 1 Electronics Technicians

• 3 Data Processors

• 2 Traffic Data Collection Technicians

• 1 Hardware Support Technician

• 1 Safety Compliance Officer

• 3 Administrative Staff

Tallahassee • 1 Professional Engineer/Project Manager

Tampa

• 1 Construction Crew Leader

• 4 Electronics Technicians

• 4 Traffic Data Collection Technicians

• 10 Construction Crew Members

• 1 Calibration Technician

Georgia Atlanta

• 1 Construction Crew Leader

• 1 Inventory Control Manager

• 2 Project Managers

• 3 Electronics Technicians

• 5 Construction Crew Members

• 7 Traffic Data Collection Technicians

• 3 Data Processors

Mississippi Jackson • 2 Traffic Data Collection Technicians

Submitted 05/28/2025 | Page 6

Ohio Columbus

• 1 Non-Intrusive Counts Project Manager

• 1 Electronics Technician

• 1 Traffic Data Collection Technicians

• 1 Construction Manager

• 3 Construction Crew Members

Pennsylvania Hazelton • 4 Traffic Data Collection Technicians

South Carolina Columbia

• 1 Construction Crew Leader

• 5 Traffic Data Collection Technicians

• 7 Construction Crew Members

• 4 Electronics Technicians

• 1 Manager, Electronics Technicians

Texas Irving

• 1 Project Manager

• 1 Construction Crew Leader

• 5 Construction Crew Members

• 1 Electronics Technician

Virginia Richmond Primary Construction

• 3 Program Managers

• 1 Assistant Program Manager

• 1 Construction Manager

• 2 Draftsmen

• 1 Technical Manager

• 1 QA/QC Inspector

• 2 Electronics Technicians

• 5 Construction Crew Members

3.3. Meet Your Project Team

We have assembled a team that has dedicated their careers to data collection. This team possesses the relevant qualifications to successfully execute the ODOT’s project.

• Justin Smith, Director of Program Management, can be contacted at jusmith@rekor.ai or (850) 516-1313.

• Dustin Chenault, Non-Intrusive Program Manager, can be contacted at dchenault@rekor.ai or

(614) 406-1826.

• Pon Thanasack, Program Manager, Global Field Operations, can be contacted at pthanasack@rekor.ai or (804) 994-7822.

• Cody Greeno, Non-Intrusive Electronics Technician, can be contacted at cgreeno@rekor.ai or (878) 999-4943.

mailto:jusmith@rekor.ai mailto:dchenault@rekor.ai mailto:pthanasack@rekor.ai mailto:cgreeno@rekor.ai

Submitted 05/28/2025 | Page 7

On the following pages, you will find résumés highlighting just a sample of their project experience.

JUSTIN SMITH

MORE THAN 19 YEARS OF DATA COLLECTION EXPERIENCE.

Mr. Smith has accumulated a total of 19 years of experience in collecting traffic data, overseeing and advising on DOT contracts, AI and Non-Intrusive Devices, GIS, and conducting in-depth analysis of traffic data.

WORK HISTORY

Southern Traffic Services, Inc. (2006-Present) Mr. Smith is the Director of Sales for both permanent and portable traffic counting devices. He has played a key role in the development of the hardware and software designs of Rekor artificial intelligence (AI) products. Mr. Smith continues to work with the Engineering team to perfect the AI code for classification, speed, and volume studies. Mr. Smith leads the Product Management team on new developments and system capabilities. Additionally, he offers support for the AI products for our customers.

Mr. Smith has served as both Program and Project Manager for contracts involving the Department of Transportation in Ohio, Louisiana, Pennsylvania, and Oklahoma, various Metropolitan Planning Organizations (MPO), and municipalities across the country. In this role, he was responsible for coordinating the schedules of Traffic Data Collection Technicians, ensuring the quality and accuracy of all collected data, formatting the data according to the necessary requirements (including those set by FHWA), and delivering the data to the clients within specified deadlines.

Mr. Smith demonstrates a deep commitment to safety, accuracy, and operational excellence. He performed the duties of a data analyst and quality control expert for other clients such as FHWA, Kentucky Transportation Cabinet, Alabama DOT, Florida DOT, Georgia DOT, Mississippi DOT, North Carolina DOT, South Carolina DOT, and Tennessee DOT.

Related Project Experience (2012-Present)

• Ohio Department of Transportation – Statewide Traffic Counts – (Ongoing)

STS is tasked with conducting various counts related to traffic classification, volume, turning movements, and portable Wavetronix classification. Under the leadership of Mr. Smith, who oversees technician training, scheduling, data processing, and submission, the team aims to complete 1,000 classification counts, 896 volume counts, 36 turning movement counts, and 9

DIRECTOR, PROGRAM MANAGEMENT

Submitted 05/28/2025 | Page 8 portable Wavetronix classification counts as per the Department's requirements. ODOT requires that their data be submitted in the FHWA format. Mr. Smith helped build this program and was vital in building a team, training field personnel and data analysts, creating process and procedure, as well as the quality control program. Mr. Smith worked closely with ODOT and helped advise them on best practices and overall program success.

• Oklahoma Department of Transportation – Engineering 1741 Statewide – (2012-2023) STS was responsible for collecting 48-hour classification data at approximately 1,100 class sites per year. Mr. Smith was responsible for building a team, technician training and scheduling, and processing and submitting data to the Department in the correct format. This project contained many mainline interstate routes that were collected using video recorders. Mr. Smith was responsible for training the data analyst teams that produced the FHWA 13-bin class data reports from the video files.

• The PennDOT Bureau of Planning & Research – Traffic Engineering Data Count Services – (2017- Present) STS has been conducting data collection for classification and volume on behalf of the Pennsylvania DOT since 2017. In 2022, we successfully obtained over 9,500 classification counts (all interstate locations were collected using AI technology). Mr. Smith held the role of overseeing all technician training and scheduling, as well as the processing and submission of data to the Department in the appropriate format. Mr. Smith led the charge of AI in the state of Pennsylvania.

Prior to AI, PennDOT had been utilizing pneumatic tube counters, rolling roadblocks, and other costly methods to collect their Interstate system. Mr. Smith led the transition from legacy collection methods to the new safer and cost-effective method of non-intrusive AI data collection. STS was the first firm to collect PennDOT arterial highways utilizing the technology.

EDUCATION / PROFESSIONAL REGISTRAT IONS / AFFIL IATIONS

• Bachelor of Arts in History, University of West Florida

• Wavetronix Certification

Submitted 05/28/2025 | Page 9

DUSTIN CHENAULT

MORE THAN 12 YEARS OF DATA COLLECTION EXPERIENCE.

Mr. Chenault has over 12 years of experience collecting traffic data for Ohio and Pennsylvania Departments of Transportation.

WORK HISTORY

Southern Traffic Services, Inc. (2013-Present) Mr. Chenault is the Program Manager for our Non-Intrusive Traffic Monitoring Collection contract in Ohio.

He has extensive experience in gathering data pertaining to traffic volume, classification, and turning movements. He was an integral part of the installation and implementation of the current stations in Ohio.

He oversees the maintenance, calibrating, and data transfer from 61 stations with 70 sensors across all three regions of the state. Mr. Chenault participates, when necessary, in STS’s Installation and Construction for Traffic Monitoring Sites contract with ODOT. Mr. Chenault is a highly skilled traffic data collection technician and prior to 2016, he served as the lead in the state of Ohio. Additionally, he offers his expertise to the Pennsylvania DOT whenever assistance is required.

Related Project Experience (2013-Present) During his tenure with STS, Mr. Chenault has consistently demonstrated a strong commitment to safety, accuracy, and continuous learning. Below is a snapshot of projects he has contributed to:

• Ohio Department of Transportation – Non-intrusive Traffic Monitoring Collection – (2016-Present) Mr. Chenault is the Program manager. He was an integral part of the installation and implementation of the current stations. He oversees the maintenance, calibrating and data transfer from 61 stations with 70 sensors across all three regions of Ohio DOT.

• Ohio Department of Transportation – Statewide Traffic Counts – (2014 - Present) The department has tasked STS with conducting a significant number of traffic assessments.

Specifically, STS is responsible for completing 1,000 classification counts, 896 volume counts, and 36 turning movement counts.

• Ohio Department of Transportation – Installation and Construction for Traffic Monitoring Site – (2024 - Present) In 2024 Mr. Chenault acted as an onsite inspector, assisted the Construction Manager with recruiting and training qualified construction technicians that are currently servicing this contract.

• The PennDOT Bureau of Planning & Research – Traffic Engineering Data Count Services – (2017- Present)

NON-INTRUSIVE PROGRAM MANAGER

Submitted 05/28/2025 | Page 10

STS has been conducting data collection for classification and volume on behalf of the Pennsylvania DOT since 2017. The number of counts conducted is determined by the districts we choose to pursue and are awarded. Mr. Chenault is responsible for assisting with data collection when required. In 2022, we collected traffic data at 9,500 locations (all interstate locations were collected using AI technology), and in 2023 we collected traffic data at 6,000 locations.

EDUCATION / PROFESSIONAL REGISTRAT IONS / AFFIL IATIONS

• Business Management, Columbus State Community College

• OSHA 30 Certification

• Kistler Certification

Submitted 05/28/2025 | Page 11

PON THANASACK

MORE THAN 22 YEARS OF DATA COLLECTION EXPERIENCE.

Mr. Thanasack has over 22 years of experience in traffic data collection of all types, and the installation and maintenance of traffic monitoring equipment.

WORK HISTORY

Southern Traffic Services, Inc. (February 2003-Present) Mr. Thanasack is responsible for developing standard operating procedures and leading a team to implement operational best practices for new AI-based vehicle classification camera technology. He is tasked with integrating teams for scalable deployment through coordination of planning, procurement, production, deployment, and support teams. He also manages the company’s entire fleet (including Rekor Systems, Inc.) of vehicles to ensure field readiness and success for employees.

Prior to 2023, Mr. Thanasack was the Program Manager for Virginia DOT and the Central Florida Construction Crew Chief/day-to-day Project Manager on Statewide Florida DOT projects (2009-2018). He and his crew also assist in Georgia, Ohio, and Oklahoma whenever necessary. Mr. Thanasack designed and implemented Traffic Control Plans and managed all in-road and off-road construction and installation of TTMS/PTMS count stations. Mr. Thanasack provided trouble shooting and electronics guidance for field operations of TTMS/PTMS and Non-Intrusive Technologies.

Over the past 22 years, Mr. Thanasack’ s work has spanned projects across 16 states, with experience across the Southeast, Midwest, and West Coast, including Florida, Ohio, and Texas. He has extensive experience in traffic engineering studies, such as origin and destination using infrared technology with OCR software, turning movements, travel time delay, and topographic.

Mr. Thanasack has a strong track record of collaborating effectively across all levels of the agencies he supports. Known for his attention to detail, he consistently delivers work that stands out in the field. He has been recognized for his ability to successfully navigate emergency situations and resolve complicated task issues with positive, results-driven outcomes. Mr. Thanasack is a valued member of the STS team, known for providing steady, reliable leadership that supports effective partnership between STS and our governmental partners.

PROGRAM MANAGER, GLOBAL FIELD OPERATIONS

Submitted 05/28/2025 | Page 12

Related Project Experience (2003-Present) Below is a snapshot of projects he has contributed to:

• Ohio Department of Transportation – Installation and Construction for Traffic Monitoring Site – (2024 – Present) Mr. Thanasack was instrumental in building a team of qualified members that are currently servicing this contract. In 2024 Mr. Thanasack acted as Construction Manager while he actively trained new team members while ensuring that task work orders were completed in a timely manner.

• Virginia Department of Transportation – Traffic Monitoring System: Traffic Data Purchase & Continuous Traffic Station Operations – (2019-Present) STS is responsible for 220 Class and Volume permanent count stations located throughout Virginia. Mr. Thanasack is the Program Manager for our contract with Virginia DOT. He oversees the daily operations of installation, maintenance, troubleshooting, and data transfer under this contract.

• Louisiana Department of Transportation and Development (LADOTD) – Traffic Data Collection/Monitoring Statewide – (2008 – 2013) Mr. Thanasack was the Project Manager for STS in the state of Louisiana. He managed the statewide contract and worked directly with the LADOTD to conduct nearly 10,000 volume counts annually.

EDUCATION / PROFESSIONAL REGISTRAT IONS / AFFIL IATIONS

• Computer Science, Georgia Institute of Technology

• Computer Science, Southern Polytechnic State University

• National Safety Council Work Zone Supervisor Certification

• ATSSA – VA – Advanced Level Certification

• ODOT – WTS – Worksite Traffic Supervisor Certification

• Kistler Quartz Technology Installation/Electronics Certification

• IRD/PAT Electronics and Sensor Certification

• HAZMAT Level II Certification

• Aerial Lift Certification

• PEEK Electronics Certification

• OSHA 30 Certification

Submitted 05/28/2025 | Page 13

CODY GREENO

MORE THAN 6 YEARS OF DATA COLLECTION EXPERIENCE.

Mr. Greeno's traffic data collection experience includes volume, classification, speed counts, turning movement studies, and non-intrusive AI-based technologies, such as Wavetronix.

WORK HISTORY

Southern Traffic Services, Inc. (March 2019-Present) Mr. Greeno has six (6) years of extensive experience in traffic data collection. He has been involved with setting and performing volume, class, and speed counts, turning movements, pedestrian and bicycle studies, and non-intrusive AI classification and Wavetronix. Additionally, he participates in the maintenance and calibration of non-intrusive stations.

Related Project Experience (2019-Present) Mr. Greeno has performed the electronics technician duties for clients such as:

• Ohio Department of Transportation – Non-intrusive Traffic Monitoring Collection – (2016-2025) Mr. Greeno is a Senior Electronics Technician responsible for maintenance and calibration Ohio’s 61 non-intrusive stations spread across all three regions of Ohio DOT.

• Ohio Department of Transportation – Statewide Traffic Counts – (2014 – Present) STS is tasked with conducting a significant number of traffic assessments. Specifically, STS is responsible for completing 1,000 classification counts, 896 volume counts, and 36 turning movement counts per year. Mr. Greeno assists with data collection as necessary.

• Mid-Ohio Regional Planning Commission – Traffic Counts for MORPC Regional Model Validation – (2022 - Present) Counts collected under this contract include vehicle volume counts, classification counts, turning movement counts, and bicycle/pedestrian counts. We collect data at approximately 250 locations per year. Mr. Greeno was a valued member of the data collection team.

• The PennDOT Bureau of Planning & Research – Traffic Engineering Data Count Services – (2017- Present) STS has been conducting data collection for classification and volume on behalf of the Pennsylvania DOT since 2017. The number of counts conducted is determined by the districts we choose to pursue and are awarded. Mr. Greeno will occasionally travel to assist with this contract.

In 2022, STS collected traffic data at over 9,500 locations (all interstate locations were collected using AI technology), and in 2023 we collected data at over 6,000 locations.

NON-INTRUSIVE ELECTRONICS TECHNICIAN

Submitted 05/28/2025 | Page 14

EDUCATION / PROFESSIONAL REGISTRAT IONS / AFFIL IATIONS

• High School Diploma

• OSHA 30 Certification

Submitted 05/28/2025 | Page 15

3.4. Differentiators

Industry Leadership Through Innovation: With over 36 years of experience, STS stands apart for its deep commitment to excellence in innovation, technology, and construction practices. Operating across multiple states, we proactively invest in R&D to stay ahead of evolving Federal Highway Administration (FHWA) requirements and emerging equipment standards — ensuring clients benefit from the most advanced and compliant solutions available.

Proven, Long-Lasting Partnerships: STS stands out through our enduring collaboration with the Ohio Department of Transportation (ODOT), reflecting our reliability and expertise. Since 2013, we have supported ODOT through multiple contracts – including portable data collection, non-intrusive monitoring, and installation and maintenance services. These ongoing partnerships demonstrate our ability to deliver consistent, high-quality solutions that agencies trust.

Continuous Training, Consistent Results: At STS, we believe high-quality data starts with highly skilled people. That is why we invest heavily in both hiring experienced industry professionals and developing our internal talent. Our commitment includes:

• Ongoing certifications – We compensate personnel for acquiring relevant certifications

• Hands-on vendor/manufacturer training – Both on-site and off-site

• Active industry engagement – Providing time and resources to attend industry-related conferences and seminars

In addition, all STS managers receive annual project management and leadership training, participate in quarterly management meetings to share project insights. This culture of learning and collaboration directly supports more effective, consistent project delivery for our clients.

Over the past 36 years, STS has successfully conducted thousands of traffic studies, including volume, classification, speed, and turning movement counts. We have also installed hundreds of permanent count stations, intrusive and non-intrusive. Our collection accuracy rate currently stands at 96%.

Submitted 05/28/2025 | Page 16

3.5. Relevant Experience

The STS team has successfully completed similar contracts for other cities and government agencies over the last 36 years. Below we have provided a snapshot of our key customers across the U.S.

Ohio Department of Transportation

Pennsylvania Department of Transportation

New York Department of Transportation

Virginia Department of Transportation

South Carolina Department of Transportation

Georgia Department of Transportation Alabama Department of Transportation Florida Department of Transportation Louisiana Department of Transportation Mississippi Department of Transportation Texas Department of Transportation Oklahoma Department of Transportation

Colorado: City of Aspen

New Mexico Department of Transportation

3.6. Client References

Ohio Department of Transportation

Project Name Non-intrusive Traffic Monitoring Collection Sites

Project Dates December 2016 – June 2025

Contact Information

Anthony Stevens

(614) 301-9461 I Anthony.Stevens@dot.ohio.gov 1980 W Broad Street Columbus, OH 43223

Brief Description of Services Provided

STS has worked with ODOT since 2016 providing data from Wavetronix non-intrusive sites. Under this current contract, we are responsible for collecting Wavetronix non-intrusive data at 61 stations with 70 sensors across all three regions of Ohio. We also provide maintenance, trouble shooting and annual calibrations.

STS has repaired damaged systems and installed new count locations under this contract.

mailto:Anthony.Stevens@dot.ohio.gov

Submitted 05/28/2025 | Page 17

South Carolina Department of Transportation

Project Name Traffic Counting Services

Project Dates May 2022 – May 2027

Contact Information

Stacy E. Wise

(803) 737-1673 I WiseS@scdot.org 955 Park Street Columbia, SC 29201

Brief Description of Services Provided

STS is responsible for completing task work order services for the installation and maintenance of permanent traffic monitoring sites including vehicle classification, weigh-in-motion (WIM), and artificial intelligence (AI). This work has included the installation of new AVC and WIM sites, piezo & loop installations, AI technology, and traffic control. We are also responsible for collecting and submitting all data collected from these devices. As part of this contract, we installed and are supplying data from 46 non-intrusive classification sites.

Florida Department of Transportation

Project Name Statewide Continuous Count Station Installation and Maintenance

Project Dates June 2023 – June 2029

Contact Information

Eric Griffin

(850) 414-4709 I eric.griffin@dot.state.fl.us 605 Suwannee Street Tallahassee, FL 32399

Brief Description of Services Provided

STS has worked with FDOT since 2006 providing maintenance and repairs statewide for count, class, and speed, as well as weigh-in-motion, non-intrusive, and non-motorized. STS manages over 300 permanent traffic data collection sites statewide. We are also responsible for the installation and providing real-time data from 28 non-intrusive classification sites.

mailto:WiseS@scdot.org mailto:eric.griffin@dot.state.fl.us

Submitted 05/28/2025 | Page 18

Georgia Department of Transportation

Project Name Traffic Monitoring Program Data

Project Dates October 2017 – June 2025

Contact Information

Eric Conklin

(404) 347-0707 I EConklin@dot.ga.gov One Georgia Center, 600 West Peachtree Street, NW Atlanta, GA 30308

Brief Description of Services Provided

STS is responsible for 285 permanent count stations. STS inspects, maintains, repairs, and upgrades existing sites and installs new ones.

STS owns all hardware in the cabinets and is responsible for all aspects of the collection and reporting of data. This contract includes 24 non-intrusive classification sites.

3.7. Financial Stability

STS is a subsidiary of Rekor Systems, Inc. (Rekor). Rekor is a publicly traded company listed on the NASDAQ under the trading symbol REKR. All audited financial statements are filed on Form 10Q and Form 10K with the Securities and Exchange Commission (SEC) and are available on our website at www.rekor.ai/investors.

We have provided Rekor’s 2024 10-Q report beginning on the following page. More in-depth and detailed financial information is available and can be reviewed at: https://www.rekor.ai/sec-filings.

mailto:EConklin@dot.ga.gov http://www.rekor.ai/investors https://www.rekor.ai/sec-filings

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 001-38338

Rekor Systems, Inc.

(Exact name of registrant as specified in its charter)

Delaware 81-5266334

(State or other jurisdiction of incorporation or organization) (I.R.S. Employer

Identification No.)

6721 Columbia Gateway Drive, Suite 400 Columbia, MD

(Address principal executive offices)

21046 (Zip Code)

(410) 762-0800

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

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

As of May 13, 2025, the Registrant had 118,075,944 shares of common stock, $0.0001 par value per share outstanding.

SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (the “Quarterly Report”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties, including particularly statements regarding our future results of operations and financial position, business strategy, prospective products and services, timing and likelihood of success, plans and objectives of management for future operations and future results of current and anticipated products and services. These statements involve uncertainties, such as known and unknown risks, and are dependent on other important factors that may cause our actual results, performance, or achievements to be materially different from the future results, performance or achievements we express or imply. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. These forward-looking statements speak only as of the date of this Quarterly Report and are subject to a number of risks, uncertainties and assumptions described under the sections in our Annual Report on Form 10-K for the year ended December 31, 2024 entitled “Risk Factors” and elsewhere in this Quarterly Report. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made in this Form 10-Q and in other documents we file from time to time with the SEC that disclose risks and uncertainties that may affect our business. The forward-looking statements in this Form 10-Q do not reflect the potential impact of any divestiture, merger, acquisition, or other business combination that had not been completed as of the date of this filing. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. We undertake no obligation to update any forward-looking statement as a result of new information, future events or otherwise.

REKOR SYSTEMS, INC. AND SUBSIDIARIES

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025

PART I - FINANCIAL INFORMATION 4

ITEM 1. FINANCIAL STATEMENTS 4

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 6

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 7

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 8

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS 26

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 38

ITEM 4. CONTROLS AND PROCEDURES 38

PART II - OTHER INFORMATION 39

ITEM 1. LEGAL PROCEEDINGS 39

ITEM

1A. RISK FACTORS 40

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 40

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 41

ITEM 4. MINE SAFETY DISCLOSURES 41

ITEM 5. OTHER INFORMATION 41

ITEM 6. EXHIBITS 41

SIGNATURES 42

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share and per share amounts)

March 31, 2025 December 31, (Unaudited)

ASSETS

Current assets

Cash and cash equivalents $ 3,851 $ 5,013 Restricted cash 458 316 Accounts receivable, net 7,582 7,232 Inventory 4,196 4,297 Note receivable, current portion 340 340 Other current assets 3,526 2,732

Total current assets 19,953 19,930 Long-term assets

Property and equipment, net 10,418 11,048 Right-of-use operating lease assets, net 7,721 9,348 Right-of-use financing lease assets, net 2,338 2,317 Goodwill 24,313 24,313 Intangible assets, net 14,150 14,450 Note receivable, long-term 57 142 Deposits 852 927

Total long-term assets 59,849 62,545 Total assets $ 79,802 $ 82,475

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued expenses 4,545 4,330 Notes payable, current portion 1,000 1,000 Loan payable, current portion 80 79 Lease liability operating, short-term 822 2,310 Lease liability financing, short-term 959 900 Contract liabilities 4,574 3,439 Liability for ATD Holdback Shares, at fair value - 1,036 Other current liabilities 4,900 5,129

Total current liabilities 16,880 18,223 Long-term Liabilities

Series A Prime Revenue Sharing Notes, net of debt discount of $231 and $263, respectively 9,769 9,737 Series A Prime Revenue Sharing Notes - related party, net of debt discount of $115 and $132, respectively 4,885 4,868 Loan payable, long-term 174 194 Lease liability operating, long-term 11,850 12,371 Lease liability financing, long-term 1,012 977 Contract liabilities, long-term 1,207 1,298 Deferred tax liability 79 79 Other non-current liabilities 587 587

Total long-term liabilities 29,563 30,111 Total liabilities 46,443 48,334 Commitments and contingencies (Note 8) Stockholders' equity

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 March 31, 2025 and December 31, 2024, respectively. No preferred stock was issued or outstanding as of March 31, 2025 or December 31, 2024, respectively. - - Common stock, $0.0001 par value; 300,000,000 authorized shares; 111,135,956 and 104,700,593 shares issued as of March 31, 2025 and December 31, 2024, respectively;

110,912,209 and 104,541,073 shares outstanding as of March 31, 2025 and December 31, 2024, respectively. 11 10 Treasury stock, 223,747 and 159,520 shares as of March 31, 2025 and December 31, 2024, respectively. (804) (711) Additional paid-in capital 305,119 294,935 Accumulated deficit (270,967) (260,093)

Total stockholders’ equity 33,359 34,141 Total liabilities and stockholders’ equity $ 79,802 $ 82,475

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except share and per share amounts) (Unaudited)

Three Months Ended March 31, 2025 2024 Revenue $ 9,198 $ 9,778 Cost of revenue, excluding depreciation and amortization 4,761 5,285

Operating expenses:

General and administrative expenses 7,286 7,662 Selling and marketing expenses 1,757 2,414 Research and development expenses 3,977 5,001 Depreciation and amortization 1,556 2,332

Total operating expenses 14,576 17,409

Loss from operations (10,139) (12,916) Other income (expense):

Loss on extinguishment of debt - (4,693) Interest expense, net (590) (1,054) Other (expense) income (145) 49

Total other expense (735) (5,698) Net loss $ (10,874) $ (18,614) Loss per common share $ (0.10) $ (0.24) Weighted average shares outstanding

Basic and diluted 106,815,912 78,894,017

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Dollars in thousands, except share amounts)

Shares of Common

Stock Common

Stock

Shares of Treasury

Stock

Treasury Stock at

Cost

Additional Paid-In Capital

Accumulated Deficit

Total Stockholders'

Equity Balance as of January 1, 2025 104,541,073 $ 10 159,520 $ (711) $ 294,935 $ (260,093) $ 34,141

Stock-based compensation - - - - 1,370 - 1,370 Issuance upon vesting of restricted stock units 622,434 - - - - - - Shares withheld upon vesting of restricted stock units (64,227) - 64,227 (93) - - (93) ATD Holdback Shares 664,329 - - - 1,156 - 1,156 Issuance of common stock pursuant to the 2025 Sales Agreement 5,148,600 1 - - 7,658 - 7,659 Net loss - - - - - (10,874) (10,874)

Balance as of March 31, 2025 110,912,209 $ 11 223,747 $ (804) $ 305,119 $ (270,967) $ 33,359

Balance as of January 1, 2024 69,176,826 $ 7 96,508 $ (522) $ 232,568 $ (198,683) $ 33,370

Stock-based compensation - - - - 1,167 - 1,167 Issuance upon vesting of restricted stock units 459,773 - - - - - - Shares withheld upon vesting of restricted stock units (58,145) - 58,145 (180) - - (180) Shares issued as part of the ATD Acquisition 2,832,135 - - - 8,893 - 8,893 Retirement of the 2023 Promissory Notes 750,000 - - - 1,875 - 1,875 2024 Public Offering 11,500,000 1 - - 26,361 - 26,362 Net loss - - - - - (18,614) (18,614)

Balance as of March 31, 2024 84,660,589 $ 8 154,653 $ (702) $ 270,864 $ (217,297) $ 52,873

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

Cash Flows from Operating Activities:

Net loss $ (10,874) $ (18,614)

Adjustments to reconcile net loss to net cash used in operating activities:

Bad debt expense 50 30 Depreciation 951 974 Amortization of right-of-use lease asset 305 186 Non-cash operating lease expense 283 219 Share-based compensation 1,370 1,167 Amortization of debt discount 49 399 Amortization of intangible assets 300 1,172 Loss due to the remeasurement of the STS Earnout and Contingent Consideration, net - 100 Loss on extinguishment of debt - 4,693 Loss due to the remeasurement of ATD Holdback Shares 120 - Loss on financing lease abandonment 4 - Loss on sale of property and equipment 16 -

Changes in operating assets and liabilities:

Accounts receivable (400) 566 Inventory (98) (427) Other current assets (517) (208) Deposits 75 7 Accounts payable, accrued expenses and other current liabilities (92) 1,236 Contract liabilities 1,044 996 Lease liability (665) (382)

Net cash used in operating activities (8,079) (7,886) Cash Flows from Investing Activities:

Capital expenditures (349) (161) Proceeds from the sale of property and equipment 12 - Cash paid for ATD acquisition, net - (8,969)

Net cash used in investing activities (337) (9,130) Cash Flows from Financing Activities:

Proceeds from 2025 Sales Agreement, net 7,659 - Proceeds from the public offering - 26,362 Repayment of 2023 Promissory Notes - (12,500) Proceeds from notes receivable 85 57 Payments related to financing leases (236) (150) Repayments of loans payable (19) (19) Repurchases of common stock upon vesting of restricted stock units (93) (180)

Net cash provided by financing activities 7,396 13,570 Net decrease in cash, cash equivalents and restricted cash and cash equivalents (1,020) (3,446) Cash, cash equivalents and restricted cash at beginning of period 5,329 15,713 Cash, cash equivalents and restricted cash at end of period $ 4,309 $ 12,267

Reconciliation of cash, cash equivalents and restricted cash:

Cash and cash equivalents at end of period $ 3,851 $ 11,881 Restricted cash and cash equivalents at end of period 458 386 Cash, cash equivalents and restricted cash at end of period $ 4,309 $ 12,267

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – GENERAL, BASIS OF PRESENTATION, AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Rekor Systems, Inc. (“Rekor”) was formed in February 2017. The consolidated financial statements include the accounts of Rekor, the parent company, and its wholly-owned subsidiaries Rekor Recognition Systems, Inc., Waycare Technologies Inc.

and Waycare Technologies Ltd. (collectively, “Waycare”), Southern Traffic Services, Inc. (“STS”) and All Traffic Data Services, LLC (“ATD”) (collectively, the “Company”).

The Company stands at the forefront of the roadway intelligence sector, working to revolutionize public safety, urban mobility, and transportation management on a global scale. The Company's vision is to improve the lives of citizens and the world around them by enabling safer, smarter, and greener roadways and communities. The Company works towards this vision by collecting, connecting, and organizing the world’s mobility data, and making it accessible and useful to its customers for real-time insights and decisioning for situational awareness, rapid response, risk mitigation, and predictive analytics for resource and infrastructure planning and reporting.

These unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Accordingly, they do not contain all information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s unaudited condensed consolidated financial statements as of and for the periods ended March 31, 2025 and 2024.

The financial data and other information disclosed in these notes are unaudited. The results for the three months ended

March 31, 2025, are not necessarily indicative of the results to be expected for the year ending December 31, 2025.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP.

Dollar amounts, except per share data, in the notes to these unaudited condensed consolidated financial statements are rounded to the nearest $1,000.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the extensive use of management’s estimates. Management uses estimates and assumptions in preparing consolidated financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and reported revenues and expenses. On an ongoing basis, the Company evaluates its estimates, including those related to the collectability of accounts receivable, the fair value of intangible and long lived assets, the fair value of goodwill, the fair value of debt and equity instruments, income taxes and determination of standalone selling prices in contracts with customers that contain multiple performance obligations. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not apparent from other sources. Actual results may differ from those estimates under different assumptions or conditions.

Liquidity and Going Concern

Management has assessed going concern uncertainty to determine whether there is sufficient cash on hand, together with expected capital raises and working capital, to assure operations for a period of at least one year from the date these unaudited condensed consolidated financial statements are issued, which is referred to as the “look-forward period”, as defined in U.S. GAAP.

As part of this assessment, based on conditions that are known and reasonably knowable to management, management has considered various scenarios, forecasts, projections and estimates and will make certain key assumptions. These assumptions include, among other factors, its ability to raise additional capital, the expected timing and nature of the Company’s programs and projected cash expenditures and its ability to delay or curtail these programs or expenditures to the extent management has the proper authority to do so and considers it probable that those implementations can be achieved within the look-forward period.

The Company has generated losses and negative operating cashflows since its inception and has relied on external sources of financing to support cash flow from operations. The Company attributes losses to non-capital expenditures related to the scaling of existing products and services, development of new products and services and marketing efforts associated with these products and services. As of and for the three months ended March 31, 2025, the Company had working capital of $3,073,000 and a net loss of $10,874,000, respectively.

Based on the Company's current business plan assumptions and the expected cash burn rate, the Company believes that the existing cash is insufficient to fund its current level of operations for the next twelve months following the issuance of these unaudited condensed consolidated financial statements. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

The Company is actively monitoring its operations, cash on hand and working capital. The Company is currently in the process of reviewing and exploring external financing options in order to sustain its operations. If additional financing is not available, the Company also has contingency plans to continue to reduce or defer expenses and cash outlays in the look-forward period.

Segment Information

The Company operates as one operating and reportable segment. Rekor has a variety of platforms that collect, connect and organize mobility data, making it accessible and useful to its customers for real-time insights and decisioning.

The Company’s chief operating decision maker (“CODM”) is the interim president and chief executive officer.

The Company does not report balance sheet information by segment since it is not reviewed by the CODM.

The CODM uses net income in assessing segment performance. The significant expense regularly reviewed by the CODM is cost of revenues, excluding depreciation and amortization and the Company’s operating expenses. The presentation of these items to the CODM is consistent with the Company’s presentation of these items on the condensed consolidated statement of operations.

Goodwill

The excess purchase consideration over the fair value of acquired assets and liabilities is recorded as goodwill. Goodwill is subject to impairment testing on an annual basis. The Company will assess goodwill for impairment annually on October 1st of each year, or more often if events or changes in circumstances indicate that it might be impaired, by comparing its carrying value to the reporting unit’s fair value.