Rekor Systems Inc (REKR) 2022 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to today's Rekor Systems, Inc. conference call. My name is John, and I will be your coordinator for today. (Operator Instructions) As a reminder, this conference call is being recorded for replay purposes. Before we get started, I would like to read you the company's abbreviated Safe Harbor statement.

女士們先生們，下午好，歡迎參加今天的 Rekor Systems, Inc. 電話會議。我叫約翰，今天我將擔任你們的協調員。 （操作員說明）作為提醒，正在錄製此電話會議以供重播。在我們開始之前，我想向您宣讀公司的縮寫安全港聲明。

I would like to remind you that statements made in this conference call concerning future revenues, results of operations, financial position, markets, economic conditions, products and product releases, partnerships, and any other statements that may be construed as a prediction of future performance or events are forward-looking statements.

我想提醒您，本次電話會議中有關未來收入、經營業績、財務狀況、市場、經濟狀況、產品和產品發布、合作夥伴關係的陳述，以及任何其他可能被解釋為對未來業績預測的陳述或事件是前瞻性陳述。

Such statements can involve known and unknown risks, uncertainties, and other factors which may cause actual results to differ materially from those expressed or implied by such statements. We ask that you refer to the full disclaimers in our earnings release. You should also review a description of the risk factors contained in our annual and quarterly filings with the SEC.

此類陳述可能涉及已知和未知的風險、不確定性和其他因素，這些因素可能導致實際結果與此類陳述明示或暗示的結果存在重大差異。我們要求您參考我們的收益發布中的完整免責聲明。您還應該查看我們向美國證券交易委員會提交的年度和季度文件中對風險因素的描述。

Non-GAAP results will also be discussed on the call. The company believes the presentation of non-GAAP information provides useful supplementary data concerning the company's ongoing operations and is provided for informational purposes only. I would now like to turn the presentation over to Mr. Eyal Hen, CFO of Rekor Systems. Please go ahead, sir.

非 GAAP 結果也將在電話會議上進行討論。公司認為，非 GAAP 信息的呈現提供了有關公司持續運營的有用補充數據，僅供參考。我現在想將演示文稿轉交給 Rekor Systems 的首席財務官 Eyal Hen 先生。請繼續，先生。

Hi, everyone. Thanks for joining us today to discuss our results for the three and nine months ended September 30, 2022, and update you on key business topics. On the call with me today are our CEO, Robert Berman; and our President and COO, David Desharnais. David will provide additional color on our business after I go over our relevant metrics.

大家好。感謝您今天加入我們，討論我們截至 2022 年 9 月 30 日的三個月和九個月的業績，並向您介紹關鍵業務主題的最新情況。今天和我通電話的是我們的首席執行官羅伯特·伯曼 (Robert Berman)；以及我們的總裁兼首席運營官 David Desharnais。在我檢查了我們的相關指標後，大衛將為我們的業務提供額外的顏色。

With a full quarter of Southern Traffic Services revenue in the third quarter of 2022, we have accelerated growth in recurring revenue under our sales model. As I've explained previously, we've shifted our emphasis from point-in-time revenue to recurring revenue since the third quarter of 2021.

憑藉 2022 年第三季度整個南方交通服務收入的四分之一，我們在銷售模式下加速了經常性收入的增長。正如我之前解釋的那樣，自 2021 年第三季度以來，我們已將重點從時間點收入轉移到經常性收入。

While we continue to engage in point-in-time hardware sales in appropriate circumstances, our new model emphasizes providing data services and software on a subscription basis, which had a near-term impact on our overall revenues earlier in the year. But the strong growth we are now seeing in recurring revenues is laying a solid foundation for our overall strength and stability over the long term.

雖然我們在適當的情況下繼續從事時間點硬件銷售，但我們的新模式強調在訂閱的基礎上提供數據服務和軟件，這對我們今年早些時候的整體收入產生了短期影響。但我們現在看到的經常性收入的強勁增長為我們的整體實力和長期穩定奠定了堅實的基礎。

Let me get into some of the details in the financial results for the third quarter ended September 30, 2022. Highlights include Southern Traffic Solutions, or STS, results of operation are fully consolidated for the third quarter. Revenue for the three months ended September 30, 2022, was $7.4 million compared to $2.6 million in the same period last year, a significant increase of 184%.

讓我詳細介紹截至 2022 年 9 月 30 日的第三季度財務業績。亮點包括南方交通解決方案 (STS)，第三季度的經營業績已完全合併。截至 2022 年 9 月 30 日止三個月的收入為 740 萬美元，而去年同期為 260 萬美元，大幅增長 184%。

Revenue for the nine months ended September 30, 2022, was $15.4 million compared to $11.1 million in the same period last year, an increase of 38%. Recurring revenue for the three and nine months ended September 30, 2022, increased by $3.6 million and $5.5 million, respectively, compared to the same period last year.

截至 2022 年 9 月 30 日止九個月的收入為 1540 萬美元，而去年同期為 1110 萬美元，增長 38%。與去年同期相比，截至 2022 年 9 月 30 日的三個月和九個月的經常性收入分別增加了 360 萬美元和 550 萬美元。

This increase represents growth in recurring revenue of 292% and 174% for the three and nine months period ended September 30, 2022, compared to the same period last year. Performance obligations increased to $28.6 million as of September 30, 2022, compared to $22.6 million as of December 31, 2021.

與去年同期相比，這一增長表明截至 2022 年 9 月 30 日止的三個月和九個月期間的經常性收入分別增長了 292% 和 174%。截至 2022 年 9 月 30 日，履約義務增加至 2860 萬美元，而截至 2021 年 12 月 31 日為 2260 萬美元。

As a result of an interim assessment on the current market condition, we recognized a goodwill impairment of $34.8 million. As you can see, we've continued to see significant improvements in revenues and recurring revenue in the third quarter compared to the second quarter of 2022.

根據對當前市場狀況的中期評估，我們確認了 3480 萬美元的商譽減值。如您所見，與 2022 年第二季度相比，我們繼續看到第三季度的收入和經常性收入有了顯著改善。

The percentage of recurring revenue reflected in total revenue was 65% and 66% for the three and nine months ended September 30, 2022, respectively, compared to 47% and 28% for the three and nine months ended September 30, 2021, respectively. We also began to see reduction in our SG&A as a result of streamlining activities, which started at the end of the third quarter of 2022.

截至 2022 年 9 月 30 日的三個月和九個月，經常性收入佔總收入的百分比分別為 65% 和 66%，而截至 2021 年 9 月 30 日的三個月和九個月分別為 47% 和 28%。我們還開始看到，由於精簡活動，我們的 SG&A 有所減少，精簡活動始於 2022 年第三季度末。

Total operating expenses for the nine months ended September 30, 2022, were $47.5 million, not including our goodwill impairment compared to $26 million during the same period in 2021. The increase in operating expenses stems from significant increases in payroll and payroll-related expenses.

截至 2022 年 9 月 30 日止九個月的總運營費用為 4750 萬美元，不包括我們的商譽減值，而 2021 年同期為 2600 萬美元。運營費用的增加源於工資和工資相關費用的大幅增加。

Earlier in the year, we added new hires to our engineering, sales and marketing teams as we integrated the technology into our growing suite of product and service offerings. However, in the current period, we have been evaluating our results carefully and focused on managing our operating expenses. This resulted in a reduction in operating expenses from the second quarter of 2022 as compared to the third quarter of 2022, even with the inclusion of a full quarter of STS expenses.

今年早些時候，我們為我們的工程、銷售和營銷團隊增加了新員工，因為我們將該技術集成到我們不斷增長的產品和服務組合中。然而，在當前時期，我們一直在仔細評估我們的結果，並專注於管理我們的運營費用。這導致 2022 年第二季度的運營費用與 2022 年第三季度相比有所減少，即使包括了整個季度的 STS 費用。

During the third quarter of 2022, we experienced a significant decline in our market capitalization, which we deemed a triggering event related to goodwill. As a result, we performed an interim impairment assessment as of September 30, 2022, and determined that we had an impairment related to goodwill in the amount of $34,835,000. Our adjusted gross margin for the three months ended September 30, 2022, and 2021 stayed consistent at approximately 45%, and decreased for the nine months ended September 30, 2022, to 43% from 58% in the same period last year.

2022 年第三季度，我們的市值大幅下降，我們認為這是與商譽相關的觸發事件。因此，我們進行了截至 2022 年 9 月 30 日的中期減值評估，並確定我們有與商譽相關的減值金額為 34,835,000 美元。截至 2022 年 9 月 30 日和 2021 年止三個月的調整後毛利率保持在約 45%，而截至 2022 年 9 月 30 日止九個月的毛利率從去年同期的 58% 下降至 43%。

The decline in margins for the nine months ended September 30, 2022, is primarily attributable to increased investment in infrastructure. With the expansion of our coverage network and installed base, we expect to see improvement in our adjusted gross margin in the future.

截至 2022 年 9 月 30 日止九個月的利潤率下降主要是由於基礎設施投資增加。隨著我們覆蓋網絡和安裝基礎的擴大，我們預計未來調整後的毛利率將有所改善。

This is highlighted in the improvement of our third-quarter adjusted gross margin as compared to the second quarter of 2022, as we pursued improvement in our operations and were able to close larger transactions with higher margins.

與 2022 年第二季度相比，我們第三季度調整後毛利率的改善凸顯了這一點，因為我們追求運營改善，並能夠以更高的利潤率完成更大規模的交易。

Adjusted EBITDA for the three and nine months ended September 30, 2022, and 2021, increased to a loss of $9.2 million from a loss of $6.7 million and a loss of $29.6 million from a loss of $12.8 million, respectively. The increase in loss was due to the investments to position Rekor for future growth that I've discussed previously.

截至 2022 年 9 月 30 日和 2021 年 9 月 30 日的三個月和九個月的調整後 EBITDA 分別從虧損 670 萬美元增加到虧損 920 萬美元，從虧損 1280 萬美元增加到虧損 2960 萬美元。虧損的增加是由於投資 Rekor 以實現我之前討論過的未來增長。

However, as a result of the streamlining activities, we see a decrease in loss from the second quarter of 2022. Since we changed our revenue model, we have released enhanced key performance indicators to help provide visibility and more detailed view into our success and progress. We hope that over time this KPI will provide our shareholders with a better insight into our business.

然而，由於精簡活動，我們發現自 2022 年第二季度以來虧損有所減少。自從我們改變收入模式以來，我們發布了增強的關鍵績效指標，以幫助提供可見性和更詳細的成功和進展視圖.我們希望隨著時間的推移，這個 KPI 能夠讓我們的股東更好地了解我們的業務。

As noted in our financial highlights, our recurring revenue for the three and nine months ended September 30, 2022, increased 292% and 174% compared to the same period 2021. During the nine months ended September 30, 2022, we won $8.3 million of new contracts compared to $7.3 million of new contract value won during the same period in 2021. This is an increase of 14% related primarily to the STS acquisition.

正如我們的財務摘要所述，我們截至 2022 年 9 月 30 日的三個月和九個月的經常性收入與 2021 年同期相比分別增長了 292% 和 174%。在截至 2022 年 9 月 30 日的九個月中，我們贏得了 830 萬美元的收入與 2021 年同期贏得的新合同價值 730 萬美元相比，增加了 14%，這主要與 STS 收購有關。

As of September 30, 2022, remaining contract performance obligations were $28.6 million. We expect to recognize approximately 58% of this amount over the succeeding 12 months. This represents an increase of $6 million or 27% compared to the $22.6 million of performance obligation as of December 31, 2021. This increase in performance obligation was primarily due to our STS acquisition.

截至 2022 年 9 月 30 日，剩餘合同履約義務為 2860 萬美元。我們預計在接下來的 12 個月內確認該金額的約 58%。與截至 2021 年 12 月 31 日的 2260 萬美元的履約義務相比，這增加了 600 萬美元或 27%。履約義務的增加主要是由於我們收購了 STS。

As we build relationships and extend our presence, we acquire many customers through pilot programs, which are typically short in nature. As these pilot programs convert and expand to larger scale contracts, we will expect to see this KPI improve.

隨著我們建立關係並擴大我們的影響力，我們通過試點項目獲得了許多客戶，這些項目通常是短期的。隨著這些試點項目轉變並擴大到更大規模的合同，我們預計該 KPI 會有所改善。

Moving to our financial condition and liquidity, our cash balance on September 30, 2022, was $7.9 million, a decrease from $25.8 million as of December 31, 2021. We had a working capital deficit as of September 30, 2022, of $1.1 million, down from working capital of $17 million as of December 31, 2021. The decrease in working capital was primarily due to a decrease in cash and cash equivalents.

轉向我們的財務狀況和流動性，我們在 2022 年 9 月 30 日的現金餘額為 790 萬美元，比 2021 年 12 月 31 日的 2580 萬美元有所減少。截至 2022 年 9 月 30 日，我們的營運資金赤字為 110 萬美元，截至 2021 年 12 月 31 日，營運資金為 1700 萬美元。營運資金的減少主要是由於現金和現金等價物的減少。

This decline was primarily due to the increase in our loss from operation as we position the company for future growth and reflect cash used in the acquisition of STS. The reduction in cash was partially offset by a net cash inflow of $22.8 million as part of our 2022 at the market sales [agreement].

這一下降主要是由於我們的經營虧損增加，因為我們將公司定位為未來增長並反映收購 STS 所使用的現金。作為我們 2022 年市場銷售 [協議] 的一部分，現金減少部分被 2280 萬美元的淨現金流入所抵消。

In summary, we are passionate about our growth prospects and continue to experience a strong momentum in our market. As David will discuss with you next, we are concentrating our investments now on rapidly increasing our margins and fully expect them to improve significantly. We remain focused on creating shareholder value and making decisions that will benefit our long-term shareholders. With that, I will now turn the call over to David. David?

總之，我們對我們的增長前景充滿熱情，並繼續在我們的市場中經歷強勁的勢頭。正如大衛接下來將與您討論的那樣，我們現在將投資集中在快速提高我們的利潤率上，並完全期望它們會顯著改善。我們仍然專注於創造股東價值和做出有利於我們長期股東的決策。有了這個，我現在將把電話轉給大衛。大衛？

Thank you, Eyal. Good afternoon, everyone, and welcome. I'd like to start by talking about our revenues and expenses. Last quarter we discussed the trade-offs when you transition from primarily a point-in-time revenue model to a recurring revenue model, and the need to invest in the establishment of long-term relationships that provide a stable revenue base.

謝謝你，埃亞爾。大家下午好，歡迎光臨。我想先談談我們的收入和支出。上個季度，我們討論了當您從主要的時間點收入模式過渡到經常性收入模式時的權衡，以及投資建立提供穩定收入基礎的長期關係的必要性。

Now that the results of STS, our recent acquisition, are fully reflected in this quarter's financial results, you can see that we were able to accelerate that transition to recurring revenue.

現在，我們最近收購的 STS 的結果已完全反映在本季度的財務業績中，您可以看到我們能夠加速向經常性收入的轉變。

As Eyal just described, in less than a year we've been able to transition from recurring revenues of 28% of our quarterly revenues to one where recurring revenue generated is 65% of our total quarterly revenues, while total revenue for the quarter increased 184% from the corresponding period of 2021. But that's really just the beginning.

正如 Eyal 剛剛描述的那樣，在不到一年的時間裡，我們已經能夠從占季度收入 28% 的經常性收入轉變為佔季度總收入 65% 的經常性收入，而該季度的總收入增加了 184與 2021 年同期相比的百分比。但這真的只是個開始。

The combination of our Waycare and STS acquisitions in the past year have placed us securely in the position that we've been working to put ourselves in for the last three years, which is to provide the key technology components needed by leading agencies and operators on the forefront in the development of the intelligent infrastructure needed to address the challenges of urban migration, congestion, increased crash fatalities, sustainability, quality of life, inequity, and public safety.

過去一年我們對 Waycare 和 STS 的收購相結合，使我們穩固地處於過去三年我們一直努力使自己處於的位置，即提供領先機構和運營商所需的關鍵技術組件智能基礎設施發展的前沿需要應對城市遷移、擁堵、車禍死亡人數增加、可持續性、生活質量、不平等和公共安全等挑戰。

Over the past year, as the United States has begun the implementation of a massive effort to improve its mobility infrastructure, a growing consensus has emerged that better data collection, management, and distribution is a priority in this effort.

在過去的一年裡，隨著美國開始實施大規模改善其移動基礎設施的努力，越來越多的人認為更好的數據收集、管理和分發是這項工作的優先事項。

For decades, the federal government has mandated states to collect traffic data for receipt of highway funds. This currently results in over 1 million traffic studies across the US each year. The way that roadway data is currently being collected from our aging roadway network suffers from the same underinvestment that the basic roadwork network suffers from.

幾十年來，聯邦政府一直要求各州收集交通數據以接收高速公路資金。目前，這導緻美國每年進行超過 100 萬次交通研究。目前從我們老化的道路網絡中收集道路數據的方式與基本道路網絡一樣受到投資不足的影響。

Current collection methods use inductive loops that are expensive and dangerous to install, and side firing radars and one-off samplings that capture only a fraction of the data required to fully evaluate conditions and support decisions and investments for agencies that are responsible to manage roadways.

當前的收集方法使用安裝起來昂貴且危險的感應迴路，以及側射雷達和一次性採樣，這些採樣僅捕獲全面評估條件所需數據的一小部分，並支持負責管理道路的機構的決策和投資。

As federal and state agencies gain access to broader and more accurate data that can be collected from the roadways, they also gain access to the tools needed to drive tangible and meaningful results against their responsibilities to bring smarter, safer, greener roadways to their citizens.

隨著聯邦和州機構獲得可從道路收集的更廣泛和更準確的數據，他們還獲得了推動切實和有意義的結果所需的工具，以履行其為公民帶來更智能、更安全、更環保的道路的責任。

This can only be achieved when that data collected is aggregated and combined with connected vehicle data, crowd-sourced and other third party data sources, analyzed in real-time and integrated into an interactive and active intelligence system that delivers actionable insights on a continuous basis.

這只有在收集到的數據被聚合併與互聯車輛數據、眾包和其他第三方數據源相結合、實時分析並集成到交互式主動智能係統中才能實現，該系統可以持續提供可操作的見解.

Rekor's technology can improve the quality, cost, and efficiency of these mandated traffic studies and data collection efforts as states transition to a digitized approach and digitized transportation network, which is being accelerated by the $1.2 trillion federal investment in infrastructure. In short, we are in the right place at the right time.

隨著各州向數字化方法和數字化交通網絡過渡，Rekor 的技術可以提高這些強制性交通研究和數據收集工作的質量、成本和效率，聯邦對基礎設施的 1.2 萬億美元投資正在加速這一過程。簡而言之，我們在正確的時間出現在正確的地點。

We have had a busy and exciting past quarter. I would like to highlight several examples of where we have made meaningful progress against our goals and key wins that are emblematic of what we can expect moving forward.

上個季度我們忙碌而激動人心。我想強調幾個例子，說明我們在實現目標和關鍵勝利方面取得了有意義的進展，這些勝利象徵著我們可以期待前進。

On the technology front, we launched the Edge Flex system, a first-of-its-kind networked extensible non-roadway intrusive AI driven traffic data collection system. The system uses state-of-the-art computer vision and machine learning to deliver the utmost in safety, accuracy, performance, and simplicity for federally mandated vehicle classifications of data and more.

在技術方面，我們推出了 Edge Flex 系統，這是一種首創的網絡化可擴展非道路侵入式人工智能驅動交通數據收集系統。該系統使用最先進的計算機視覺和機器學習，為聯邦政府規定的車輛數據分類等提供最大的安全性、準確性、性能和簡單性。

As you will recall from my previous remarks, the US completes more than 1 million of these traffic studies annually. And this represents a tremendous growth opportunity ahead for Rekor.

你會記得我之前的發言，美國每年完成超過 100 萬次此類交通研究。這代表了 Rekor 未來的巨大增長機會。

Now since the launch of our Edge Flex system, we have seen strong engagement from more than 40% of the US states we've interacted with. They are keen to deploy this innovative technology. And we are doing our initial deployments this quarter with a strong pipeline behind us.

現在，自從我們的 Edge Flex 系統推出以來，我們已經看到來自我們互動過的美國 40% 以上的州的強烈參與。他們熱衷於部署這項創新技術。我們在本季度進行了初步部署，背後有強大的管道。

We have begun to upgrade the data collection system in South Carolina, the expansion of roadway data collection to include bicycles and pedestrians in Florida, and are implementing state and regional pilot projects to provide predictive analytics and integrated cross modal management programs in Alabama and Ohio.

我們已經開始升級南卡羅來納州的數據收集系統，將道路數據收集範圍擴大到包括佛羅里達州的自行車和行人，並正在實施州和地區試點項目，以在阿拉巴馬州和俄亥俄州提供預測分析和綜合跨模式管理計劃。

On the transportation and mobility ecosystem front, I'm pleased to announce that we were also chosen for the Amazon Web Services, or AWS, smart city competency for smart urban transportation. This is a unique distinction and recognizes Rekor once again for its unique technical proficiency and proven customer success supporting city governments and city developers who are witnessing an unprecedented rate of urban growth.

在交通和移動生態系統方面，我很高興地宣布，我們還被選為 Amazon Web Services 或 AWS，智能城市交通的智慧城市能力。這是一個獨特的榮譽，再次認可 Rekor 獨特的技術能力和經過驗證的客戶成功支持城市政府和城市開發商，他們正在見證前所未有的城市增長速度。

In addition, we also announced the formation and formal launch of the Rekor Partner Network, an industry-first, connected private and public mobility data hub for our customers and the ecosystem. At the launch, we also announced the addition of Blyncsy, PredictiQ, tomorrow.io., and Waze to already dozens of others in our partner network.

此外，我們還宣布成立並正式啟動 Rekor 合作夥伴網絡，這是一個行業首創的面向我們的客戶和生態系統的互聯私人和公共移動數據中心。在發布會上，我們還宣布將 Blyncsy、PredictiQ、tomorrow.io. 和 Waze 添加到我們合作夥伴網絡中已有的數十個其他合作夥伴網絡中。

The Rekor Partner Network, and our ability to provide a single pane of glass for roadway intelligence, took center stage recently to how our customers in North Carolina and Florida were able to holistically manage vehicle and roadway routing, and provide citizen safety in what is an unprecedented hurricane season in the Southeast.

Rekor 合作夥伴網絡，以及我們為道路智能提供單一管理平台的能力，最近成為我們在北卡羅來納州和佛羅里達州的客戶如何能夠全面管理車輛和道路路線，並為市民提供安全保障的中心舞台。東南部前所未有的颶風季節。

On the customer front, we have also made significant progress with key customers in key states in the past quarter. This includes Alabama Department of Transportation, where we were selected for the US Department of Transportation Federal Highway Administration $5 million grant for proactive route operations to avert congestion in traffic.

在客戶方面，上個季度我們在關鍵州的關鍵客戶方面也取得了重大進展。這包括阿拉巴馬州交通部，我們被美國交通部聯邦公路管理局選中，獲得 500 萬美元的撥款，用於主動運營路線以避免交通擁堵。

We also announced a win with the Central Ohio Transit Authority, otherwise known as COTA, with Rekor being selected for its $2.5 million program to improve traffic and transit services for Ohio. We also announced a key win with the state of Texas and its department of transportation that chose to standardize on the Rekor roadway intelligence platform. And we are now deploying there.

我們還宣布贏得俄亥俄中央交通管理局（也稱為 COTA）的勝利，Rekor 因其 250 萬美元的計劃而被選中，該計劃旨在改善俄亥俄州的交通和交通服務。我們還宣布了與德克薩斯州及其交通部的一項重要勝利，他們選擇在 Rekor 道路智能平台上進行標準化。我們現在正在那裡部署。

And another major win in the quarter was with Oregon Department of Transportation on a 10-year contract where we were down selected from a pool of 14 major roadway, infrastructure and architecture firms to be the technology platform for Oregon's statewide connected vehicle and data ecosystem and technology.

本季度的另一項重大勝利是與俄勒岡州交通部簽訂了一份為期 10 年的合同，我們從 14 家主要道路、基礎設施和建築公司中脫穎而出，成為俄勒岡州全州互聯車輛和數據生態系統的技術平台，以及技術。

As you can see, it has been a busy quarter for Rekor across the technology, ecosystem, and customer fronts. Momentum is building quickly. And we are increasingly excited about the results and what they tell us about Rekor's future potential with our computer vision systems and Rekor One platform that we deliver customer value efficiently, rapidly, and cost effectively.

如您所見，本季度 Rekor 在技術、生態系統和客戶方面都很忙碌。勢頭正在迅速增強。我們越來越對結果感到興奮，它們告訴我們 Rekor 的未來潛力，我們的計算機視覺系統和 Rekor One 平台可以高效、快速、經濟地為客戶提供價值。

To date, we've invested more than $100 million in our proprietary and state-of-the-art technologies, including hardware, software, machine learning, and AI or artificial intelligence. A year ago, this past September, we acquired Waycare Technologies, a leader in sourcing and managing third-party roadway data for more than 60 partners.

迄今為止，我們已在專有和最先進的技術上投資超過 1 億美元，包括硬件、軟件、機器學習和 AI 或人工智能。一年前，也就是去年 9 月，我們收購了 Waycare Technologies，這是一家為 60 多個合作夥伴採購和管理第三方道路數據的領先企業。

More recently, we acquired STS, a three decade leader in roadway data collection who pioneered the pay for data model with several key state departments of transportation. We've incorporated all of these unique and differentiated capabilities into Rekor One, our ever-expanding roadway intelligence engine and operating system that turns data into roadway knowledge.

最近，我們收購了 STS，這是一家在道路數據收集領域擁有 30 年曆史的領先企業，它率先與幾個主要的州交通部門合作，採用按數據付費的模式。我們已將所有這些獨特和差異化的功能整合到 Rekor One 中，這是我們不斷擴展的道路智能引擎和操作系統，可將數據轉化為道路知識。

We aggregate, we transform data into knowledge with our AI and other IP, and we deliver actionable insights and analytics as a service. Most importantly, we are trusted by our customers as a data services company and we are poised for rapid near-term and long-term growth.

我們聚合數據，利用我們的人工智能和其他知識產權將數據轉化為知識，並將可操作的見解和分析作為服務提供。最重要的是，作為一家數據服務公司，我們深受客戶信賴，我們已做好短期和長期快速增長的準備。

I look forward to providing you continued updates on our progress as the US states look to digitize the transportation network accelerated by the $1.2 trillion federal infrastructure bill and spend. In short, Rekor is well positioned for the growth ahead.

隨著美國各州希望通過 1.2 萬億美元的聯邦基礎設施法案和支出加速交通網絡數字化，我期待為您提供我們進展的持續更新。簡而言之，Rekor 為未來的增長做好了充分準備。

Thank you all, once again, for your time and attention. We really appreciate it. I look forward to speaking with you all again on our next quarterly conference call. I will now turn the call over to Robert Berman for final remarks and the question-and-answer session. Robert?

再次感謝大家的時間和關注。我們真的很感激。我期待著在我們的下一個季度電話會議上再次與大家交談。我現在將電話轉給羅伯特伯曼進行最後的評論和問答環節。羅伯特？

David, thank you. So before we open it up for questions, I know there are some of you who have concerns about our liquidity and resources under current market conditions. Needless to say, this has been occupying a great deal of our attention recently.

大衛，謝謝你。因此，在我們提出問題之前，我知道你們中的一些人對當前市場條件下的流動性和資源感到擔憂。不用說，這最近一直佔據著我們的大量注意力。

At this point, there is little that I can say, except that we are working diligently on a number of options. And we'll be narrowing our focus soon. We'll try to answer your questions as best we can. But please understand that we're not in a position to provide many of the details you might be seeking at this time. Operator?

在這一點上，除了我們正在努力研究多種選擇外，我無話可說。我們很快就會縮小我們的關注範圍。我們會盡力回答您的問題。但請理解，我們目前無法提供您可能需要的許多詳細信息。操作員？

(Operator Instructions) Zach Cummins, B. Riley.

（操作員說明）Zach Cummins，B. Riley。

Yes, thanks. Good afternoon, thanks for taking my questions, and congrats on the building momentum that you have across the variety of DOTs. I know you can't share any plans around potential near term funding here to give you a bridge to that operating breakeven point.

是啊謝謝。下午好，感謝您提出我的問題，並祝賀您在各種 DOT 中建立的勢頭。我知道你不能在這里分享任何關於潛在的短期資金的計劃來給你一個通往經營盈虧平衡點的橋樑。

But I mean, can you give us a sense of the timeline of when you're still expecting for this business to transition towards that breakeven adjusted EBITDA? It seems like revenue is building right now. And it seems like you undertook some cost reduction actions nearly into Q3. So just give us a sense of any sort of update you can give there.

但我的意思是，你能告訴我們你仍然期望這項業務何時過渡到盈虧平衡調整後的 EBITDA 的時間表嗎？似乎收入正在增加。似乎您在第三季度附近採取了一些降低成本的行動。因此，讓我們了解一下您可以在那裡提供的任何更新。

Yes, Zach; Robert. Thanks for the question. I'll take it, Eyal. We believe acquiring the resources that we need, and we think we will, that Rekor will scale to substantial revenue, probably high eight figures by this time next year. And the company will be profitable. We believe we have the visibility with customers that are adopting our technology now to get there, right. So that's what we're looking towards.

是的，扎克；羅伯特。謝謝你的問題。我會接受的，埃亞爾。我們相信獲得我們需要的資源，並且我們認為我們會，Rekor 將擴大到可觀的收入，到明年這個時候可能會達到八位數。公司將盈利。我們相信我們對現在採用我們的技術以實現目標的客戶有可見性，對。這就是我們所期待的。

Understood. And just digging a little bit deeper on some of these new relationships that David was speaking about. I mean, can you give us a sense of how you're getting in the door with these customers? Is it STS having prior relationships that are opening the door for you to get deals with State of Alabama, Texas, and Oregon? Just curious of what's really driving this building momentum across there?

明白了。只是更深入地挖掘大衛所說的一些新關係。我的意思是，你能告訴我們你是如何進入這些客戶大門的嗎？是 STS 之前的關係為您打開了與阿拉巴馬州、德克薩斯州和俄勒岡州達成交易的大門嗎？只是好奇是什麼真正推動了這種建設勢頭？

You know Zach -- Charlie, are you able to come on the call here?

你認識扎克——查理，你能來這裡打電話嗎？

I'm here.

我在這。

I have our Head of Government Relations on the call. And I didn't plan for him to speak. But Charlie and I have worked together for decades. And he's got quite an extensive background in government affairs. And I'll let him speak to what's happening with the states as we're rolling the tech out. Charlie?

我們的政府關係主管正在接聽電話。我沒打算讓他發言。但查理和我一起工作了幾十年。他在政府事務方面有相當廣泛的背景。當我們推出這項技術時，我會讓他談談各州正在發生的事情。查理？

Yes, it has been beyond a pleasant surprise. Typically when you're calling on government entities, they're very circumspect, nobody gets rewarded for being tech forward and leaning into new technology. But I can tell everyone here that we probably have discussed our new technology, our vehicle classification technology with about 13 or 14 different state DOTs and not one has said this is not a welcome solution for their roadways.

是的，這超出了驚喜。通常，當您拜訪政府實體時，他們會非常謹慎，沒有人會因為技術進步和傾向於新技術而獲得獎勵。但我可以告訴這裡的每個人，我們可能已經討論了我們的新技術，我們的車輛分類技術與大約 13 或 14 個不同的州 DOT，沒有人說這不是他們道路的受歡迎解決方案。

And really what we're able to do is to do the -- what the FHWA, the Department of Transportation on the federal level requires states, municipalities, and MPOs to do, which is to basically report 13-Bin of classification data. Because we've been in this for so long, and our AI is very sophisticated when it comes to vehicle recognition, the result has been like nothing that I've ever experienced talking to government entities.

實際上，我們能夠做的是——FHWA、聯邦交通部要求各州、市和 MPO 做的事情，即基本上報告 13-Bin 的分類數據。因為我們已經在這方面工作了很長時間，而且我們的人工智能在車輛識別方面非常複雜，所以結果是我在與政府實體交談時所經歷過的。

Understood. And just along that line, I know that there's a big demand tailwind regarding the funding from the infrastructure bill, are you starting to see customers that are getting funds into their hands now? I'm just curious as to what could be any sort of gating factor that could impede any progress with DOTs?

明白了。沿著這條線，我知道基礎設施法案的資金有很大的需求順風，你是否開始看到客戶現在正在將資金掌握在他們手中？我只是想知道有什麼門控因素會阻礙 DOT 的任何進展？

You know, Zach, what we're starting to see is we're starting to see the -- and maybe David could speak to this, but we can't get too deep into it. We're starting to see the ideas that the government at the federal level is sharing with the states about the way they envision roads becoming into the digital age more somewhat of an operating system. I think the one out in Oregon is emblematic of that, right. David, do you want to talk a little bit about this?

你知道，扎克，我們開始看到的是——也許大衛可以談談這個，但我們不能太深入。我們開始看到聯邦政府正在與各州分享他們設想道路進入數字時代的方式，更像是一個操作系統。我認為俄勒岡州的那場比賽就是這方面的象徵，對吧。大衛，你想談談這個嗎？

Yes, I am happy to do that, if you can hear me okay. Yes, so when we think about the path forward, certainly, we're seeing an uptick from our states. And how this works, Zach, is you've got federal funding available and the states need to apply against projects they submit, and that those funds are released.

是的，我很樂意這樣做，如果你能聽到我的話。是的，所以當我們考慮前進的道路時，我們肯定會看到我們各州的增長。扎克，這是如何運作的，你有可用的聯邦資金，各州需要針對他們提交的項目申請，並且這些資金會被釋放。

So where things are in the infrastructure bill today is that the projects are being submitted and the funds will be released when they are accepted. And so to me this is right on track with what we're seeing. We've seen a pretty significant uptick in terms of pipeline and availability on key projects from states that we've been working with.

因此，今天基礎設施法案中的內容是項目正在提交，資金將在項目被接受後發放。所以對我來說，這與我們所看到的一樣是正確的。我們已經看到我們一直在合作的州的關鍵項目的管道和可用性方面有相當顯著的上升。

And it's not just on the classification front, it's on our transportation management and our traffic management capabilities as well across the board. But I would say that seems to be on track from what we can tell. The funds are subject to approval based on projects that are submitted. And projects are now being submitted. So that's where we are today.

這不僅僅是在分類方面，它還涉及我們的運輸管理和我們的交通管理能力，以及全面的。但我想說，從我們所知道的情況來看，這似乎是正確的。資金鬚根據提交的項目獲得批准。現在正在提交項目。這就是我們今天的處境。

Oregon is an example of a state where this has been a journey with them to identify the next generation of road usage charges and the way to charge for road usage. And you can imagine with the continued evolution of EVs, or electric vehicles, that they're not filling up at the gas pump as much anymore. So states are rightfully trying to determine what is that next-generation solution for road usage if it's not going to be gas?

俄勒岡州就是一個例子，在該州，他們一直在努力確定下一代道路使用費和道路使用費收費方式。你可以想像，隨著電動汽車或電動汽車的不斷發展，它們不再像以前那樣用油泵加滿油了。所以各州理所當然地試圖確定下一代道路使用解決方案是什麼，如果它不是天然氣的話？

And so when you think about what that requires, it really requires the ability to understand everything that's moving in a roadway with connected vehicles, et cetera. And that's really a sweet spot for us in our ecosystem.

因此，當您考慮這需要什麼時，它確實需要能夠理解在道路上移動的所有車輛以及聯網車輛等的能力。這對我們的生態系統來說真的是一個甜蜜點。

So we feel very well positioned. And we're seeing that now transition and transform into real contracts and opportunities. So it's off the idea stage and moving into more of an implementation stage, again, all powered by the infrastructure bill.

所以我們感覺非常好。我們看到現在正在轉變並轉變為真正的合同和機會。因此，它已經脫離了構思階段，進入了更多的實施階段，同樣，所有這些都由基礎設施法案提供支持。

Yes, Zach, it's Robert. I would just add to that what David said is so true because if you think about the last 60 years, 70 years in the United States, the framework that the federal government set up to share revenue to support our roadways with the states has been to recover gasoline excise taxes and then redistribute those, right.

是的，扎克，是羅伯特。我只想補充一點，大衛說的是真的，因為如果你想想過去 60 年、70 年的美國，聯邦政府為與各州分享收入以支持我們的道路而建立的框架一直是收回汽油消費稅，然後重新分配，對吧。

Well, that's going to have to change, okay, because EVs are forcing that, right. In California we have 17.5% electric vehicles. So the equitable way to distribute gasoline excise taxes has been collecting the FHWA 13-Bin, which is what we were talking about earlier.

好吧，這將不得不改變，好吧，因為電動汽車正在迫使它，對吧。在加利福尼亞，我們有 17.5% 的電動汽車。因此，分配汽油消費稅的公平方式是收集 FHWA 13-Bin，這就是我們之前討論的內容。

So doing it in a non-intrusive way where you're not digging up the roadways, you're not putting inductive loops, you're doing it in a safe, friendly way. But also, you want to have the ability to have that same system tie into the back end of this for other purposes for the redistribution of that money.

因此，以一種非侵入性的方式進行操作，您不會挖掘道路，也不會放置感應迴路，而是以一種安全、友好的方式進行操作。而且，您還希望能夠將相同的系統連接到此後端以用於其他目的，以重新分配該筆資金。

It really comes down to -- it's all about the money. And if you think about it, there's been hundreds of billions of dollars redistributed by the federal government to the states to support highways and roads based on gasoline excise taxes. That no longer works, okay.

歸根結底，一切都是為了錢。如果你仔細想想，聯邦政府已經向各州重新分配了數千億美元，以支持基於汽油消費稅的高速公路和道路。這不再有效，好吧。

With the technology that's out there with EVs and other things, there's a better way to do it, right. But it takes a company like Rekor that has both a connected vehicle side and other third party data side tied to the ground troop side, which is what we got from STS and bringing the new technology into that.

有了電動汽車和其他東西的技術，有更好的方法來做到這一點，對吧。但這需要像 Rekor 這樣的公司，它既有連接的車輛端，也有與地面部隊端相關的其他第三方數據端，這是我們從 STS 獲得的，並將新技術引入其中。

And part of your question earlier was, does STS help with respect to the relationships? Charlie has had an easy time opening the door because they want the technology -- just like, yes bring it here. If you don't have to dig up our roads, how do we do this? but you just don't walk in with technology.

您之前的部分問題是，STS 對關係有幫助嗎？查理很容易打開大門，因為他們想要技術——就像，是的，把它帶到這裡。如果您不必挖掘我們的道路，我們該怎麼做？但你只是不走進技術。

The fact that STS for three decades has been counting vehicles, right, for DOTs primarily throughout the Southeast, that brings a level of trust that these DOTs need to have because they need to have the data delivered a certain way and they want to know that the company that's delivering to them understands that. And that's why we made that acquisition. So I hope that helps, right. But it's the whole bundle, right.

事實上，STS 三十年來一直在為主要在整個東南部的 DOT 計算車輛數量，這帶來了這些 DOT 需要的信任度，因為他們需要以某種方式傳遞數據，並且他們想知道向他們提供服務的公司明白這一點。這就是我們進行收購的原因。所以我希望能有所幫助，對吧。但它是整個捆綁包，對吧。

And more importantly, the money to collect the bin data, the FHWA-13, that's not part of the transportation bill. That money is there every year and it's spent. It's being done now. It has been done for the last 60 years, 70 years, right. So it's part of the old way of doing it, converting to the new way and then figuring out a way to recalibrate it, which is what that win was in Oregon.

更重要的是，收集垃圾數據的錢，FHWA-13，這不是運輸賬單的一部分。這筆錢每年都在那裡，而且已經花光了。現在正在做。在過去的 60 年、70 年裡，它一直在這樣做，對吧。所以這是舊方法的一部分，轉換為新方法，然後找出重新校準它的方法，這就是俄勒岡州的勝利。

David said something about that. But I want to harp on that. That started three years ago, okay. Oregon put an RFI out three years ago looking for an ecosystem that would incorporate an operating system for their roadways that would allow for an EV usage charge, right. And it took three years. There were 14 teams of -- I'm not going to mention competitors. But a lot of them are multinationals and companies that people on this call would know.

大衛就此說了些什麼。但我想強調這一點。那是三年前開始的，好吧。俄勒岡州三年前發布了一份 RFI，尋找一個生態系統，該生態系統將為其道路整合一個操作系統，允許收取電動汽車使用費，對吧。而且花了三年時間。有 14 個團隊——我不會提到競爭對手。但其中很多是參加本次電話會議的人都知道的跨國公司和公司。

We were down selected from those 14 to 2. And the award letter was issued last week. And I think that speaks volume [for] technology, right, that we were able to beat all those other companies out. And that's one of 50 states that's going to have to do the same thing, right. So Oregon got ahead of it. So hopefully, that's helpful.

我們從 14 名中落選為 2 名。獲獎通知書已於上週發出。而且我認為這說明了 [for] 技術，對，我們能夠擊敗所有其他公司。這是將不得不做同樣事情的 50 個州之一，對吧。所以俄勒岡州領先了。希望這會有所幫助。

Absolutely, extremely helpful. Well, I don't want to take up all the time here in the queue. So I'll go ahead and pass it along. But thanks for taking my questions.

絕對，非常有幫助。好吧，我不想在隊列中佔用所有時間。所以我會繼續傳遞它。但是謝謝你回答我的問題。

Sure. Thank you.

當然。謝謝你。

(Operator Instructions) [David Hargreaves], Private Investor.

（操作員說明）[David Hargreaves]，私人投資者。

Hi, congratulations on transitioning the revenue model. I'm wondering if you could talk a little bit about the receivables on the balance sheet, if it's mostly government entities. If there are government type entities with a high probability of collection, is it something that might be securitizable?

您好，恭喜您轉變了收入模式。我想知道你是否可以談談資產負債表上的應收賬款，如果它主要是政府實體的話。如果有政府類型的實體，收集的可能性很高，它是不是可以證券化的東西？

Yes, so you're right. Most of our AR, they are government entities. And as Robert mentioned before, we're looking at all options right now. But most of them are government entities not more than 30 days, 60 days outstanding. Robert?

是的，所以你是對的。我們的大多數 AR，它們都是政府實體。正如羅伯特之前提到的，我們現在正在考慮所有選項。但大部分是政府實體不超過30天，60天未清。羅伯特？

I think just to add to that, I think when you look at the performance obligation, getting more to your question, Rekor is starting to build a substantial contract value of government contracts that run 5 years, 7 years, 10 years, right. So we're going to get to a point where we will be able to access traditional commercial debt from commercial bank, right, and equity loves debt, right.

我想補充一點，我認為當你查看履約義務時，更多地回答你的問題，Rekor 開始建立一個為期 5 年、7 年、10 年的政府合同的可觀合同價值，對吧。所以我們將達到這樣一個地步，我們將能夠從商業銀行獲得傳統的商業債務，對，股權喜歡債務，對。

And I think that's something that we're hoping that we're going to see intersections of our P&L with next year or so that we can pursue financing a rollout of our capital expenditures with bank debt, right. And we're going to get there.

而且我認為這是我們希望我們能夠看到我們的 P&L 與明年左右的交叉點，這樣我們就可以通過銀行債務為我們的資本支出的推出提供資金，對吧。我們會到達那裡。

I'm hoping that we don't see a straight line. I mean, we've got three quarters with negative $29 million of EBITDA and then like $10 million for the last quarter. Is there any reason we think that there would be a deviation in the fourth quarter -- or less than?

我希望我們看不到一條直線。我的意思是，我們有三個季度的 EBITDA 為負 2900 萬美元，最後一個季度為 1000 萬美元。我們是否有任何理由認為第四季度會有偏差——或更少？

I think that --.

我覺得 - 。

Eyal, go ahead.

埃亞爾，繼續。

Right, sorry David, that's a good point. But I think if you look on the trend from Q2, when we said that we're going to reduce expenses, you can see a reduction in our quarterly EBITDA losses. And as we mentioned previously, our expectation is through the third quarter of 2023, we'll start to see a breakeven EBITDA and some profitability.

是的，對不起，大衛，這是一個很好的觀點。但我認為，如果你看一下第二季度的趨勢，當我們說我們將減少開支時，你會看到我們的季度 EBITDA 損失有所減少。正如我們之前提到的，我們的預期是到 2023 年第三季度，我們將開始看到盈虧平衡的 EBITDA 和一些盈利能力。

Okay, thank you. Congrats again. Thanks very much.

好的謝謝。再次恭喜。非常感謝。

Yes, thank you.

是的，謝謝。

Thank you.

謝謝你。

Thank you.

謝謝你。

Thank you. There are no further questions at this time. I would like to turn the floor back over to Robert for any closing comments.

謝謝你。目前沒有其他問題。我想將發言權轉回給羅伯特，讓他發表任何結束評論。

Well, look, thanks, everybody, appreciate your patience. And look, this is tough, the markets have beaten us up as well as a lot of other companies. But this is not easy to do. As David mentioned, this has been years in the making, we've invested over $100 million in this technology.

好吧，看，謝謝大家，感謝您的耐心等待。看，這很艱難，市場擊敗了我們以及許多其他公司。但這並不容易做到。正如 David 提到的，這已經醞釀多年，我們已經在這項技術上投資了超過 1 億美元。

We've made two very important and synergistic acquisitions. And it's coming together. And we think '23 is going to be a year that we're going to see the results of that. And we're going to do everything we can to maintain the value of this company for our shareholders long term. That's the plan. And we think we'll get there, so appreciate your time.

我們進行了兩項非常重要且具有協同作用的收購。它正在融合在一起。我們認為 23 年將是我們將看到結果的一年。我們將盡一切努力為我們的股東長期維護這家公司的價值。這就是計劃。我們認為我們會到達那裡，所以感謝你的時間。

Thank you, everyone. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation and have a great day.

謝謝大家。今天的會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。