Rekor Systems Inc (REKR) 2024 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to today's Rekor Systems Inc. conference call.

女士們、先生們，下午好，歡迎參加今天的 Rekor Systems Inc. 電話會議。

My name is Kevin, and I'll be your coordinator for today.

我叫凱文，我將擔任你們今天的協調員。

(Operator Instructions)

（操作員說明）

As a reminder, this conference call is being recorded for replay purposes.

謹此提醒，本次電話會議正在錄音以供重播之用。

Before we start, I want to read the company's abbreviated safe harbor statement.

在我們開始之前，我想閱讀該公司的簡短安全港聲明。

I want 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 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、營運業績、財務狀況、市場、經濟狀況、產品和產品發布、合作夥伴關係以及其他可能被解釋為對未來業績或事件的預測的陳述均不適用。

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.

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，可能導致實際結果與此類陳述明示或暗示的結果有重大差異。

We ask you to refer to the full disclaimers in our earnings release.

我們要求您參閱我們的收益報告中的完整免責聲明。

You should also review a description of the risk factors contained in our annual and quarterly filings with the SEC.

您還應該查看我們向 SEC 提交的年度和季度文件中包含的風險因素的描述。

Non-GAAP results will also be discussed on the call.

非 GAAP 業績也將在電話會議上討論。

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.

該公司認為，非公認會計準則資訊的呈現提供了有關公司持續營運的有用補充數據，並且僅供參考。

I'd now like to turn the conference over to Mr. David Desharnais, President and CEO of Rekor Systems.

現在我想將會議交給 Rekor Systems 總裁兼執行長 David Desharnais 先生。

Thank you, operator, and thanks to everyone for joining us today.

謝謝運營商，也謝謝大家今天加入我們。

I'll start with a brief update on customer activity, followed by an overview of the current market and our strategic priorities.

我將首先簡要介紹客戶活動的最新情況，然後概述當前市場和我們的策略重點。

Eyal will walk through our Q3 2024 financial results, and I'll conclude with an update on our market position, goals for 2025 and the path forward.

Eyal 將介紹我們 2024 年第三季的財務業績，最後我將介紹我們的市場地位、2025 年目標和前進道路的最新情況。

I'm pleased to report that the pipeline we've been nurturing for months is now entering the deployment phase, validating our growth strategy across all three core product areas.

我很高興地向大家報告，我們幾個月來培育的管道現在已進入部署階段，驗證了我們在所有三個核心產品領域的成長策略。

Urban Mobility with Discover, Transportation Management with Command and Public Safety with Scout.

透過 Discover 實現城市交通，透過 Command 實現運輸管理，透過 Scout 實現公共安全。

In each area, we're seeing steady platform expansion, increasing customer engagement and expanding strategic partnerships.

在每個領域，我們都看到平台的穩定擴張、客戶參與度的提高以及策略合作夥伴關係的擴大。

Starting with Discover, we recently achieved the much anticipated inclusion of our systems on Florida's approved product list, or APL.

從 Discover 開始，我們最近如期實現了將我們的系統納入佛羅裡達州批准產品清單 (APL) 的目標。

We have now begun the first wave of statewide deployments spearheaded by the Central Office of Florida DOT.

我們現在已經開始由佛羅裡達州交通部中央辦公室主導的第一波全州部署。

These deployments are part of a statewide effort to provide comprehensive coverage across every district, ensuring precise roadway data and advanced analytics for emergency operations and beyond.

這些部署是全州範圍內努力的一部分，旨在為每個地區提供全面的覆蓋，確保緊急行動及其他情況下的精確道路數據和高級分析。

I'm especially proud to report that our first installations have already been battle tested and proved their value.

我特別自豪地報告，我們的第一批裝置已經經過了戰鬥測試並證明了它們的價值。

During one of the most challenging hurricane seasons in Florida's history, Rekor was a reliable and accurate source of traffic data for the state and its emergency operations, facilitating the safe evacuation of millions.

在佛羅裡達州歷史上最具挑戰性的颶風季節之一，Rekor 為該州及其緊急行動提供了可靠、準確的交通數據來源，促進了數百萬人的安全疏散。

While these back-to-back hurricanes required Florida DOT to prioritize emergency operations and evacuations for citizen safety during this time, we are now excited to be making renewed forward progress in Q4.

雖然這些接二連三的颶風要求佛羅裡達州交通部在此期間優先考慮緊急行動和疏散以保障公民安全，但我們現在很高興在第四季度取得新的進展。

With our inclusion on the APL and strong endorsement from Florida DOT's central office, we are collaborating with multiple districts to expand the reach of Discover, leveraging existing and discretionary budgets for wider implementation across the region.

隨著我們加入 APL 並得到佛羅裡達州交通部中央辦公室的大力支持，我們正在與多個地區合作，擴大 Discover 的覆蓋範圍，利用現有和可自由支配的預算在整個地區更廣泛地實施。

With our existing involvement in servicing Florida's legacy data collection network, we believe we are well positioned to modernize thousands of outdated sites across the state, many of which are currently underperforming or in disrepair.

透過我們現有的佛羅裡達州遺留資料收集網路服務，我們相信我們有能力對全州數千個過時的站點進行現代化改造，其中許多站點目前表現不佳或年久失修。

With APL approval of our advanced technology now behind us, our established relationships and operational momentum make Florida a cornerstone for our growth this year and beyond.

隨著 APL 對我們先進技術的認可，我們建立的關係和營運勢頭使佛羅裡達州成為我們今年及以後成長的基石。

Although the approval took longer than expected, it marks a pivotal step allowing us to expand the delivery of reliable and mission-critical insights that validate our strategic direction.

儘管批准時間比預期要長，但這標誌著關鍵的一步，使我們能夠擴大提供可靠且關鍵任務的見解，從而驗證我們的策略方向。

As we prepare to deploy hundreds and eventually thousands of units in Florida, this continued rollout not only positions us for sustained growth in one of the nation's largest and most influential states, but also sets the stage for expansion beyond.

當我們準備在佛羅裡達州部署數百甚至數千個單位時，這種持續的部署不僅使我們能夠在美國最大和最有影響力的州之一實現持續增長，而且還為進一步擴張奠定了基礎。

Florida has built a strong reputation with the Federal Highways Administration as a leading state for advanced data collection approaches, serving as a model for other states.

佛羅裡達州作為先進數據收集方法的領先州，在聯邦公路管理局中建立了良好的聲譽，為其他州樹立了榜樣。

Florida's exceptional results through the recent hurricanes has been particularly instructive for other coastal regions and states that face similar and severe weather challenges.

佛羅裡達州在最近的颶風中取得的出色成果對於面臨類似嚴峻天氣挑戰的其他沿海地區和州尤其具有啟發意義。

We are confident that our ongoing work in the region sets a powerful example and will help to facilitate accelerated adoption nationwide.

我們相信，我們在該地區正在進行的工作樹立了強有力的榜樣，並將有助於促進全國範圍內的加速採用。

Securing an initial order in a new state requires winning the confidence of key decision-makers as well as successfully navigating a challenging procurement process.

在新州獲得初始訂單需要贏得關鍵決策者的信心，並成功應對充滿挑戰的採購流程。

Complex state procurement policies can present unexpected challenges that lead to frustrating delays.

複雜的國家採購政策可能會帶來意想不到的挑戰，從而導致令人沮喪的延誤。

To address this, we've streamlined our approach by codifying essential elements such as documenting our steps to eliminate AI risks, implementing robust cybersecurity and data protection measures and establishing predefined contract vehicles, all into a structured framework.

為了解決這個問題，我們透過將基本要素編入結構化框架中來簡化我們的方法，例如記錄我們消除人工智慧風險的步驟、實施強大的網路安全和資料保護措施以及建立預先定義的合約工具。

This framework is designed to simplify our collaboration with procurement departments, reduce friction and accelerate time lines in future engagements.

該框架旨在簡化我們與採購部門的協作，減少摩擦並加快未來合作的時間。

Building on our growing momentum with Discover, I'm pleased to also announce that New York, our latest customer and another one of the largest and most influential states in the country has officially advanced Rekor Discover from proof of concept through procurement.

基於我們與 Discover 不斷增長的勢頭，我還很高興地宣布，我們的最新客戶、美國另一個最大、最具影響力的州之一紐約已正式推進 Rekor Discover 從概念驗證到採購的進程。

This achievement grants us access to approximately 115,000 miles of public roadways and serves as a critical entry point for a potential broader rollout statewide.

這項成就使我們能夠進入約 115,000 英里的公共道路，並成為可能在全州範圍內更廣泛推廣的關鍵切入點。

With this milestone, Rekor can now engage with various local union, engineering and construction firms to install our Edge AI devices for use at numerous data collection sites across the state.

憑藉這一里程碑，Rekor 現在可以與各個當地工會、工程和建築公司合作，安裝我們的 Edge AI 設備，以便在全州眾多數據收集站點使用。

Based on their experience with our currently installed systems, New Mexico has also made the recent decision to move away from outdated 1990s side-firing radar technology, opting instead to leapfrog directly to our AI-based solutions for a major interstate highway upgrade project.

根據我們目前安裝的系統的經驗，新墨西哥州最近還決定放棄過時的 20 世紀 90 年代側射雷達技術，而是選擇直接跨越到我們基於人工智慧的解決方案來進行重大州際高速公路升級項目。

The state is investing over $200 million in a multiyear roadway infrastructure project, and we are well positioned to capture a portion of that spend.

該州正在投資超過 2 億美元用於一個多年期道路基礎設施項目，我們有能力獲得其中的一部分。

They have designated Rekor as the official system of record for advanced data collection, and we are collaborating closely with state leadership to plan further expansion.

他們已指定 Rekor 作為高級資料收集的官方記錄系統，我們正在與國家領導層密切合作，計劃進一步擴展。

Now, on to our transportation management area.

現在，進入我們的運輸管理區域。

In Q3, we were pleased to see our Command solution for traffic management continue to gain additional ground in Texas, where Texas DOT, Austin and the Central Texas Regional Mobility Authority, or CTRMA, have implemented Command as its AI-based incident detection and response platform as well as for work zone management and real-time public notifications.

在第三季度，我們很高興看到我們的交通管理Command 解決方案在德州繼續取得更多進展，德州交通部、奧斯汀和德州中部地區交通管理局( CTRMA) 已實施Command 作為其基於人工智慧的事件偵測和回應平台以及工作區管理和即時公共通知。

To date, the performance has been impressive with TxDOT reporting a 29% reduction in secondary crashes and the ability to restore normal traffic flows on average 44 minutes faster using Command.

迄今為止，性能令人印象深刻，TxDOT 報告稱，使用 Command 將二次崩潰減少了 29%，並且能夠平均加快 44 分鐘恢復正常交通流量。

TxDOT has also presented our solution to the Texas House legislator as a model for future roadway management.

TxDOT 也向德州眾議院立法者展示了我們的解決方案，作為未來道路管理的模型。

Our deployment and its outcomes were highlighted in a recent video featuring testimonials from senior leaders at TxDOT, including the state CIO and Head of Traffic Management.

最近的一段影片強調了我們的部署及其成果，其中包括 TxDOT 高級領導（包括州首席資訊長和交通管理主管）的感言。

This video underscores Command's value as a transformative tool for helping to create safer, smarter and more efficient roadways and communities and highlights their plans for statewide enterprise-level deployment of Rekor.

這部影片強調了 Command 作為變革工具的價值，有助於創建更安全、更聰明和更有效率的道路和社區，並重點介紹了他們在全州範圍內企業級部署 Rekor 的計劃。

If you haven't seen the video, it's available on our website and various social media channels.

如果您還沒有看過該視頻，可以在我們的網站和各種社交媒體管道上觀看。

We are excited about our ongoing progress here and believe that both Texas and Florida have the potential to become some of our top revenue generating states in the coming years.

我們對我們在這裡不斷取得的進展感到興奮，並相信德克薩斯州和佛羅裡達州都有潛力在未來幾年成為我們收入最高的州之一。

In addition to these specific projects, we are currently engaged with over a dozen states that manage 1.2 million miles of roadway data collection in aggregate.

除了這些具體項目之外，我們目前還與十幾個州合作，管理總計 120 萬英里的道路數據收集。

Our expanding footprint now includes Hawaii through our new partnership with a large and trusted local infrastructure service provider for the state.

透過與該州一家大型且值得信賴的當地基礎設施服務提供者建立新的合作夥伴關係，我們的業務範圍不斷擴大，現已包括夏威夷。

This collaboration will bring our advanced solutions closer to many communities in Hawaii, providing the most advanced digital infrastructure for their departments of transportation and public safety.

此次合作將使我們的先進解決方案更接近夏威夷的許多社區，為其交通和公共安全部門提供最先進的數位基礎設施。

Speaking of public safety, we are pleased to see the continued momentum building for our Scout platform.

說到公共安全，我們很高興看到我們的 Scout 平台不斷發展勢頭。

With increasing concerns about crime across communities in the United States, this is a market segment that is expected to see significant growth in the coming years.

隨著美國各社區對犯罪的擔憂日益增加，這一細分市場預計在未來幾年將顯著增長。

Notably, more than 70% of all crime involves the vehicle, underscoring the need for high-performance and accurate vehicle recognition technology and roadway intelligence.

值得注意的是，超過 70% 的犯罪涉及車輛，這凸顯了對高性能、準確的車輛識別技術和道路智慧的需求。

We recently announced our partnership with SoundThinking, a leading public safety company trusted by thousands of public safety agencies nationwide.

我們最近宣布與 SoundThinking 建立合作關係，SoundThinking 是一家領先的公共安全公司，受到全國數千個公共安全機構的信賴。

Our collaboration and joint offering is already seeing positive initial results in the market with SoundThinking reporting multiple millions of dollars of new pipeline already established and with more to come.

我們的合作和聯合產品已經在市場上取得了積極的初步成果，SoundThinking 報告稱已經建立了數百萬美元的新管道，並且還將有更多管道。

In addition, our participation at the recent International Association of Chiefs of Police, otherwise known as IACP, was well received with other companies in the public safety domain approaching us for potential partnerships as well.

此外，我們最近參加了國際警察局長協會（也稱為 IACP），受到了公共安全領域其他公司的好評，這些公司也與我們尋求潛在的合作夥伴關係。

This reinforces our confidence in the growth outlook for Scout and our Public Safety segment over the coming months and years ahead.

這增強了我們對 Scout 和公共安全部門未來幾個月和幾年的成長前景的信心。

Also, we are pleased to announce that Scout has recently passed an initial technology approval for New Jersey's statewide networked ALPR program, or NJ SNAP, marking an important milestone on our journey to establish Scout as the trusted vehicle recognition solution for New Jersey law enforcement agencies and public safety initiatives.

此外，我們很高興地宣布，Scout 最近通過了新澤西州全州聯網ALPR 計劃(NJ SNAP) 的初步技術批准，這標誌著我們將Scout 打造成新澤西州執法機構值得信賴的車輛識別解決方案的過程中的一個重要里程碑和公共安全舉措。

As part of our growth strategy, we are continuing to forge industry-leading partnerships that enhance our capabilities and strengthen our market position.

作為我們成長策略的一部分，我們將繼續建立領先業界的合作夥伴關係，以增強我們的能力並鞏固我們的市場地位。

Notably, as industry leaders, Amazon Web Services and NVIDIA are intensifying their focus on public safety and transportation infrastructure, and they are aligning with strategic partners they believe will be the leaders in this space.

值得注意的是，作為行業領導者，Amazon Web Services 和 NVIDIA 正在加強對公共安全和交通基礎設施的關注，並且正在與他們認為將成為該領域領導者的策略合作夥伴結盟。

They have chosen Rekor and are putting weight behind our solutions.

他們選擇了 Rekor 並支持我們的解決方案。

We previously highlighted our deep collaboration with AWS across each of our business segments.

我們之前強調了我們與 AWS 在各個業務領域的深度合作。

Now, NVIDIA has published a case study on our integration with their full stack accelerated computing platform.

現在，NVIDIA 發布了有關我們與其全端加速運算平台整合的案例研究。

By leveraging NVIDIA's AI and neuro inference microservices or NIM, we harness generative AI to accelerate deployments and strengthen data security.

透過利用 NVIDIA 的人工智慧和神經推理微服務（NIM），我們利用生成式人工智慧來加速部署並增強資料安全性。

We are also running multiple large language and computer vision models on NVIDIA's Triton AI inference server.

我們也在 NVIDIA 的 Triton AI 推理伺服器上運行多種大型語言和電腦視覺模型。

This provides critical capabilities for data annotation, workflow automation and camera calibration and advances the state-of-the-art for our AI-driven roadway intelligence.

這為資料註釋、工作流程自動化和攝影機校準提供了關鍵功能，並推進了人工智慧驅動的道路智慧的最先進水平。

Maintaining visibility and influence is critical for Rekor as it fuels innovation and keeps us at the forefront of a rapidly evolving industry.

保持知名度和影響力對於 Rekor 至關重要，因為它可以推動創新，並使我們始終處於快速發展的行業的前沿。

In Q3, Rekor had a strong presence at over 30 industry events, reinforcing our role as a thought leader and strengthening ties with current and future clients.

第三季度，Rekor 在 30 多個行業活動中表現出色，強化了我們作為思想領袖的角色，並加強了與當前和未來客戶的聯繫。

Our national profile is also on the rise.

我們的國家形像也不斷提升。

We were recently featured on MotorWeek, the nation's longest running automotive television series, where our brand and technology reached a broad audience, reinforcing Rekor as a leader in enabling the future of safer, smarter transportation.

最近，我們在美國播出時間最長的汽車電視連續劇《MotorWeek》中得到了專題報道，我們的品牌和技術吸引了廣泛的受眾，鞏固了Rekor 作為實現更安全、更智能的未來交通的領導者的地位。

I'm also honored to share a significant milestone for my personal commitment to advancing transportation and infrastructure.

我也很榮幸能夠分享我個人對促進交通和基礎設施發展的承諾的一個重要里程碑。

In addition to serving on the Board of Directors for the U.S. Department of Transportation Center for Multimodal Mobility for the past year, I'm now pleased to share that I was recently inducted to the Board of Directors of ITS America as well, the leading authority in the intelligent transportation industry.

除了在過去的一年中擔任美國交通部多式聯運中心的董事會成員之外，我現在很高興地告訴大家，我最近還被任命為 ITS America 的董事會成員，該機構是領先的權威機構在智能交通業。

This is a strong recognition of Rekor's vision and role in shaping the future of digital infrastructure and roadway intelligence nationwide.

這是對 Rekor 在塑造全國數位基礎設施和道路智慧未來方面的願景和作用的強烈認可。

Together, we will set the standard for safer, smarter and more connected communities.

我們將共同為更安全、更聰明、更互聯的社區制定標準。

As I've shared in previous calls and outlined in my recent shareholder letter, all indicators point to what is an inevitable decade-long wave of transformation toward digital infrastructure, a seismic technology shift that will fundamentally redefine roadways and communities across the U.S. and beyond.

正如我在之前的電話會議中分享的以及在最近的股東信中概述的那樣，所有指標都表明，長達十年的數位基礎設施轉型浪潮是不可避免的，這是一場震撼性的技術變革，將從根本上重新定義美國及其他地區的道路和社區。

Rekor is poised to lead this transition with our innovative AI-based technology and unparalleled expertise in roadway intelligence.

Rekor 準備憑藉我們基於人工智慧的創新技術和道路智慧方面無與倫比的專業知識來引領這一轉變。

However, navigating government procurement cycles requires adaptability and patience as time lines in the B2G sector can be unpredictable.

然而，駕馭政府採購週期需要適應性和耐心，因為 B2G 領域的時間表可能難以預測。

Since assuming the CEO role this past summer, I have focused on creating a meaner, more efficient Rekor 2.0, a company ready to capitalize on significant breakout opportunities in 2025 and beyond.

自從去年夏天擔任執行長以來，我一直專注於創建一個更精簡、更有效率的 Rekor 2.0，一家準備充分利用 2025 年及以後重大突破機會的公司。

While progress toward our long-term goals may not always be linear, our growing customer momentum, expanding backlog and meaningful partnerships have strengthened our opportunities for sustainable self-funded growth.

雖然我們的長期目標的進展可能並不總是線性的，但我們不斷增長的客戶動力、不斷擴大的積壓和有意義的合作夥伴關係增強了我們可持續自籌資金增長的機會。

Together with my senior management team, we are fully committed to executing our plans and creating lasting value for shareholders, customers and employees alike.

我們與我的高階管理團隊一起，完全致力於執行我們的計劃，為股東、客戶和員工創造持久的價值。

To stay resilient in this environment, we've taken the necessary steps to adjust to the unpredictability of government procurement time lines and trim our expenses.

為了在這種環境下保持彈性，我們採取了必要的措施來適應政府採購時間表的不可預測性並削減我們的開支。

This expense realignment is designed to achieve up to $15 million in annualized savings and gave us the confidence to eliminate an additional $20 million in optional advances we had in place with Yorkville.

這項費用調整旨在實現高達 1500 萬美元的年度節省，並讓我們有信心消除約克維爾額外 2000 萬美元的可選預付款。

These actions demonstrate our commitment to operating within our means, reducing reliance on external capital and positioning ourselves firmly on the path to positive cash flow in 2025.

這些行動顯示我們致力於量入為出，減少對外部資本的依賴，並堅定地走上2025年實現正現金流的道路。

With industry-leading technology platforms across all business segments and strong partnerships within the ecosystem, Rekor is poised to transform 4.2 million miles of US roadways, setting the standard for smart AI-driven infrastructure.

憑藉跨所有業務領域的行業領先技術平台以及生態系統內的強大合作夥伴關係，Rekor 準備改造美國 420 萬英里的道路，為智慧人工智慧驅動的基礎設施設定標準。

Our statewide engagements are stronger than ever, steadily propelling us toward our vision of becoming the global leader in roadway intelligence.

我們在全州範圍內的參與比以往任何時候都更加強大，穩步推動我們實現成為道路智慧領域全球領導者的願景。

I'm immensely proud of our team's daily dedication to making that happen.

我對我們團隊每天為實現這一目標所做的努力感到非常自豪。

Today, we're on an exciting journey to build safer, smarter communities, and I am confident in the road ahead.

今天，我們正踏上建立更安全、更智慧社區的令人興奮的旅程，我對未來的道路充滿信心。

I'll now hand the call over to Eyal Hen, Rekor's CFO, to review our Q3 financial highlights.

現在，我將把電話轉交給 Rekor 財務長 Eyal Hen，以回顧我們第三季的財務亮點。

Eyal?

埃亞爾？

Thank you, David, and thanks for joining us today to discuss our results for the 3 and 9 months ended September 30, 2024.

謝謝 David，謝謝您今天加入我們討論我們截至 2024 年 9 月 30 日的 3 個月和 9 個月的表現。

I'd like to begin by highlighting recent strategic actions we've taken to optimize our cost structure, which are projected to reduce 2025 expenses by up to $15 million compared to 2024.

首先，我想強調我們最近為優化成本結構而採取的策略行動，預計這些行動將在 2025 年比 2024 年減少高達 1500 萬美元的支出。

These initiatives include workforce restructuring to better align our cost base with current business needs.

這些舉措包括員工隊伍重組，以更好地調整我們的成本基礎與當前的業務需求。

We have placed our emphasis firmly on current operations and near-term revenue producing opportunities while ensuring that we retain key talent and maintain the operational capacity required to deliver high-quality service to our customers.

我們堅定地將重點放在當前營運和近期創收機會上，同時確保保留關鍵人才並保持為客戶提供高品質服務所需的營運能力。

In addition, to a thorough evaluation, the time line for our longer-range development efforts and reduction of other expenses, we have implemented targeted compensation adjustments that include more equity-based compensation in the total compensation packages.

此外，為了全面評估、確定長期發展的時間安排以及減少其他費用，我們進行了有針對性的薪酬調整，在薪酬總額中增加了股權薪酬。

This demonstrates the long-term faith of our top employees in our future success.

這顯示了我們的高階員工對我們未來成功的長期信心。

Now, for the third quarter numbers.

現在，我們來看第三季的數據。

We had revenues of $10.5 million, an increase of 16% compared to Q3 2023 and for the 9 months ended September 30, 2024, we achieved $32.8 million in revenue, an increase of $8.9 million or 37% over the same period last year.

我們的營收為 1,050 萬美元，比 2023 年第三季成長 16%，截至 2024 年 9 月 30 日的 9 個月，我們營收 3,280 萬美元，比去年同期成長 890 萬美元，成長 37%。

Our Urban Mobility segment, which consists of revenue derived from roadway data aggregation activities, was the main driver of our growth in the quarter.

我們的城市交通部門由道路數據聚合活動產生的收入組成，是我們本季成長的主要推動力。

Recurring revenue reached $5.5 million in the third quarter of 2024, an increase of 14% over the same period last year.

2024年第三季經常性營收達550萬美元，比去年同期成長14%。

For the 9 months ended September 30, 2024, recurring revenue totaled $16.8 million, an increase of 13% compared to the same period last year.

截至2024年9月30日的9個月，經常性收入總計1,680萬美元，較去年同期成長13%。

Adjusted gross margin for the 3 months ended September 30, 2024, was 44%, a decrease from 52.6% for the same period last year.

截至2024年9月30日止三個月的調整後毛利率為44%，低於去年同期的52.6%。

For the 9 months ended September 30, 2024, adjusted gross margin was 48.2%, a decrease from 52.6% for the same period last year.

截至2024年9月30日的9個月，調整後毛利率為48.2%，較去年同期的52.6%下降。

As indicated in previous calls, we are still in an early growth phase and margins can fluctuate on a quarterly basis.

如同先前的電話會議所示，我們仍處於早期成長階段，利潤率可能會按季度波動。

The decline in Q3 2024 was largely driven by lower gross margin projects and some adverse weather conditions over the late summer months.

2024 年第三季的下降主要是由於毛利率項目較低以及夏末的一些惡劣天氣條件造成的。

We expect gross margins to bounce back over the coming quarters, driven by new wins and delivery of our higher-margin offerings.

我們預計，在新的勝利和更高利潤產品交付的推動下，未來幾季的毛利率將反彈。

Adjusted EBITDA loss for the third quarter of 2024 was $9.2 million, an increase from $6.6 million in the same period of last year.

2024年第三季調整後EBITDA虧損為920萬美元，較去年同期的660萬美元增加。

The higher adjusted EBITDA loss was largely due to the aforementioned lower gross margin.

調整後 EBITDA 損失較高主要是由於上述毛利率較低。

For the 9 months period ended September 30, 2024, adjusted EBITDA loss was $24.3 million from $23.2 million for the same period last year.

截至 2024 年 9 月 30 日的 9 個月期間，調整後 EBITDA 虧損為 2,430 萬美元，而去年同期為 2,320 萬美元。

Our Q3 2024 financial results reflect the variability we have previously noted in serving government sector clients.

我們的 2024 年第三季財務表現反映了我們先前註意到的為政府部門客戶提供服務的可變性。

To help smooth out this unpredictability, we are proactively optimizing our cost structure, focusing intently on near-term revenue generation and trimming back personnel in longer-range development areas as well as other nonessential expenses.

為了幫助消除這種不可預測性，我們正在積極優化成本結構，專注於短期創收，並削減長期開發領域的人員以及其他非必要開支。

Although these decisions are challenging, they are necessary to streamline our operations, accelerate our path to profitability and strengthen our balance sheet.

儘管這些決定具有挑戰性，但它們對於簡化我們的營運、加速我們的獲利之路並加強我們的資產負債表是必要的。

We anticipate implementing the majority of our targeted reduction on an annual full run rate basis by year-end.

我們預計到年底將在年度全額運行率的基礎上實施大部分目標削減。

As part of our commitment to prudent financial management, we have made strategic adjustments to our financing arrangements.

作為審慎財務管理承諾的一部分，我們對融資安排進行了策略調整。

In October, we amended our prepaid advance agreement with Yorkville Advisors and eliminated the option for an additional advance of $20 million.

10 月份，我們修改了與 Yorkville Advisors 的預付預付款協議，並取消了額外預付款 2,000 萬美元的選項。

This decision reflects our confidence in our current realignment, growing operating momentum and commitment to delivering value to our shareholders.

這項決定反映了我們對當前重組、不斷增長的營運動能以及為股東創造價值的承諾的信心。

Despite some near-term challenges, our financial and operational strategies are laying a solid foundation for strong future growth and profitability.

儘管近期面臨一些挑戰，但我們的財務和營運策略正在為未來的強勁成長和獲利能力奠定堅實的基礎。

I want to reiterate that our actions position us to operate within our means and reduce our reliance on external capital.

我想重申，我們的行動使我們能夠量入為出，減少對外部資本的依賴。

This will put us on the path to achieve positive cash flow in 2025.

這將使我們走上 2025 年實現正現金流的道路。

We are confident in our forward outlook and grateful for the continued support of our investors.

我們對未來前景充滿信心，並感謝投資者的持續支持。

Now, I will turn the call back to David to cover additional business highlights and the path forward.

現在，我將把電話轉回給 David，以介紹其他業務亮點和前進道路。

David?

大衛？

Thank you, Eyal.

謝謝你，埃亞爾。

As you can see, we are taking deliberate actions to align our cost structure with the realities we've experienced in the government procurement cycle.

正如您所看到的，我們正在採取深思熟慮的行動，使我們的成本結構與我們在政府採購週期中經歷的現實保持一致。

Through a disciplined financial approach, we are positioning Rekor for sustainable, self-funded growth with a clear line of sight to positive cash flow in 2025.

透過嚴格的財務方法，我們將 Rekor 定位為可持續、自籌資金的成長，並明確目標是在 2025 年實現正現金流。

At the same time, we are at a defining moment in the evolution of roadway technology.

同時，我們正處於道路技術發展的決定性時刻。

Transportation departments across the US are at a crossroads.

美國各地的交通部門正處於十字路口。

They can either continue with outdated, unsafe, labor-intensive methods or embrace modern AI-driven solutions that provide better worker safety, deeper insights and increased efficiency and future proofing.

他們可以繼續使用過時、不安全、勞力密集的方法，也可以採用現代人工智慧驅動的解決方案，以提供更好的工人安全、更深入的見解、更高的效率和麵向未來的解決方案。

We are well positioned to lead the way and support our forward-looking customers as they continue to embrace digital infrastructure a part of this inevitable and massive wave of modernization and technology transition.

我們處於有利位置，可以引領潮流並為我們前瞻性的客戶提供支持，因為他們將繼續擁抱數位基礎設施，成為這一不可避免的大規模現代化和技術轉型浪潮的一部分。

Rekor has the capacity to deploy hundreds of thousands of our AI edge units along with our software, ultimately transforming over 4.2 million miles of U.S. roadways.

Rekor 有能力部署數十萬個 AI 邊緣單元以及我們的軟體，最終改變超過 420 萬英里的美國道路。

While exact deployment time lines are difficult to predict, once these agencies commit to this transition, we believe there is a potential for a 40% compound annual growth rate in revenue over the next 5 years.

雖然確切的部署時間表很難預測，但一旦這些機構致力於這一轉變，我們相信未來 5 年收入有可能實現 40% 的複合年增長率。

Achieving this level of growth would establish Rekor among a select group of industry leaders.

實現這一成長水準將使 Rekor 躋身行業領導者之列。

Looking beyond technology and partnerships, we are building a company prepared to endure and thrive.

除了技術和合作夥伴關係之外，我們正在建立一家能夠持久發展並蓬勃發展的公司。

As we move forward, we expect to deliver consistent revenue growth, expanding gross margins and enhanced predictability.

隨著我們的前進，我們預計將實現持續的收入成長、毛利率的擴大和可預測性的增強。

Our disciplined approach and commitment to financial independence not only supports a self-sustaining growth model, but also paves the way to unlock Rekor's multibillion-dollar potential and to deliver outstanding value to our stakeholders.

我們嚴格的方法和對財務獨立的承諾不僅支持自我維持的成長模式，而且還為釋放 Rekor 數十億美元的潛力並為我們的利害關係人提供卓越的價值鋪平了道路。

We're excited about the road ahead.

我們對未來的道路感到興奮。

With Rekor's dedicated global team, leading AI solutions across each of our product lines and strategic partnerships, we are uniquely positioned to modernize millions of miles of U.S. roadways and pave the way for global expansion.

憑藉Rekor 專門的全球團隊、在我們每個產品線和戰略合作夥伴關係中領先的人工智慧解決方案，我們擁有獨特的優勢，可以實現美國數百萬英里道路的現代化，並為全球擴張鋪平道路。

Rekor's thought leadership and influential presence on the boards of leading industry bodies also places us squarely at the forefront of transforming the future of transportation.

Rekor 的思想領導力和在領先產業機構董事會中的影響力也使我們處於變革交通未來的最前線。

The future is bright, and we look forward to continuing this journey together, building safer, smarter and more efficient infrastructure for communities everywhere.

未來是光明的，我們期待共同延續這趟旅程，為世界各地的社區建立更安全、更智慧、更有效率的基礎設施。

Now, I'd like to open the floor for any questions you may have.

現在，我想回答大家可能提出的任何問題。

Operator?

操作員？

(Operator Instructions)

（操作員說明）

Mike Latimore, Northland Capital Markets.

麥克‧拉蒂摩爾 (Mike Latimore)，北國資本市場。

Congrats on the ITS appointment, David.

大衛，恭喜您獲得 ITS 任命。

Just a couple of quick things on the results in the quarter here.

這裡只是簡單介紹一下本季的結果。

So, recurring was down sequentially.

因此，重複出現次數依序下降。

And if I recall last year, the similar dynamic occurred when a hurricane came through in the third quarter.

如果我記得去年，第三季颶風來襲時也發生了類似的情況。

So, I guess is recurring revenue going to sort of, was it impacted by the hurricanes in the quarter, like particularly the mobile site revenue?

那麼，我想經常性收入是否會受到本季颶風的影響，特別是行動網站收入？

And does that bounce back in the fourth quarter?

第四季會反彈嗎？

Yes, Mike.

是的，麥克。

Thank you for the question.

謝謝你的提問。

You are correct.

你是對的。

We incurred the same kind of weather conditions or even worse in Q3 that results lower recurring revenues or lower revenues from recurring contracts.

我們在第三季度遇到了同樣的天氣條件，甚至更糟，導致經常性收入或經常性合約收入減少。

And we anticipate this to come back in Q4 and forward.

我們預計這種情況會在第四季及以後出現。

Yes.

是的。

And then with regard to Florida, great to see you on the APL list.

然後關於佛羅裡達州，很高興看到你出現在 APL 名單上。

You say deployments have commenced.

你說部署已經開始。

Can you give a little more detail there?

能提供更多細節嗎？

Is there a detailed plan for a number of endpoints per month?

是否有每月多個端點的詳細計劃？

Or are certain districts farther ahead than other districts?

或某些地區比其他地區領先？

Maybe just talk a little bit about kind of how visible this deployment program is.

也許只是談談這個部署計劃的可見性。

Yes.

是的。

So, Mike, in regards to Florida, as you know, the hurricane season has been pretty nasty this year, right?

那麼，麥克，關於佛羅裡達州，正如你所知，今年的颶風季節非常糟糕，對吧？

The intention of the Central Office of Florida is they want to be able to have effectively eyeballs in every district to be able to get good coverage across the state during emergency operations.

佛羅裡達州中央辦公室的目的是，他們希望能夠有效地關注每個地區，以便在緊急行動期間能夠在全州範圍內獲得良好的覆蓋。

Obviously, I think you're in that market.

顯然，我認為你在那個市場。

And so, Hurricane Sara is brewing again and you understand there's a time line associated with this.

因此，颶風薩拉再次醞釀，您知道有一個與此相關的時間線。

And they're trying to get as much done between now and May to make sure that they're prepared for whatever may come in the next season.

他們正努力從現在到五月之間完成盡可能多的工作，以確保為下個賽季可能發生的情況做好準備。

And so, in terms of distribution, you can imagine every district will have a certain number of units, and they're planning that out right now, and we're working with them daily on it.

因此，就分配而言，您可以想像每個區域都會有一定數量的單元，他們現在正在計劃，我們每天都在與他們合作。

I wouldn't be prepared to give you that detail on here just for competitive reasons and other things, right?

我不會僅僅出於競爭原因和其他原因而準備在這裡向您提供詳細信息，對吧？

But yes, it's a very, very close relationship.

但是，是的，這是一種非常非常密切的關係。

I would say in part because of the performance that we've demonstrated there in the past year of our engagement, but it really reached a peak of undeniable evidence during the performance during the storms themselves where we were literally the only device is able to provide accurate, reliable, sustainable data during the storm.

我想說，部分原因是我們在過去一年的參與中所展示的性能，但在暴風雨期間的性能確實達到了無可否認的證據峰值，我們實際上是唯一能夠提供的設備暴風雨期間的準確、可靠、可持續的數據。

So, that really accelerated a lot of things that I would say otherwise would have taken a slower boat through the channels and the labor and the procurement and things.

所以，這確實加速了很多事情，否則我想說的是，在渠道、勞動力、採購等方面，船的速度會慢一些。

So in this case, never let a crisis go to waste in that way, and it's really helped kind of accelerate the planning there and also the confidence in the state to move very quickly.

因此，在這種情況下，永遠不要讓一場危機以這種方式白白浪費，這確實有助於加速那裡的規劃，也增強了國家迅速採取行動的信心。

Now, beyond that, every district operates also independently.

現在，除此之外，每個區也獨立運作。

So you have central office or Central Florida that overlooks across the state for their needs.

因此，您有中央辦公室或佛羅裡達州中部，可以俯瞰整個州的需求。

And then you have every district that has day-to-day operational needs for things like class count and speed and other statistics.

然後，每個學區都有日常營運需求，例如班級數量、速度和其他統計數據。

And so, we're engaged in parallel with the districts as well as the central office.

因此，我們與各地區和中央辦公室同時參與。

And the districts themselves have their own needs.

各地區本身也有自己的需求。

And when we talk about the potential in a state like Florida, say, 18,000 devices over time, right?

當我們談論佛羅裡達州這樣的州的潛力時，比如說，隨著時間的推移，設備數量將達到 18,000 台，對吧？

If you look at that as the potential TAM of that area, then the districts play a pretty heavy role in that.

如果您將其視為該地區潛在的 TAM，那麼各地區在其中發揮著相當重要的作用。

And as we look to go beyond central office, we'll get that done.

當我們尋求超越中央辦公室的範圍時，我們將完成這項任務。

And then also in parallel working with the districts that opens up tremendous footprint and tapping into different budgets, some of which are existing budgets, some of our discretionary budgets and some are budgets to come based on their future planning.

然後，同時與開放巨大足跡的地區合作，利用不同的預算，其中一些是現有預算，一些是我們的酌情預算，還有一些是根據他們未來規劃制定的預算。

But I would say net-net, very, very tight trusted relationship we're building with Florida, and we expect, again, that to be one of our largest revenue-producing states over time.

但我想說的是，我們正在與佛羅裡達州建立非常非常緊密的信任關係，我們再次預計，隨著時間的推移，佛羅裡達州將成為我們最大的創收州之一。

So, I hope that provides some color there, Mike.

所以，我希望這能提供一些色彩，麥克。

And then just maybe thinking about it more broadly here in terms of the addressable market.

然後也許只是從潛在市場的角度更廣泛地考慮它。

You're talking in Florida here about several thousand units.

你說的是佛羅裡達州大約有幾千個單位。

And then I think historically, you've mentioned kind of maybe the TAM is in the millions, but Florida is one of the bigger states.

然後我認為從歷史上看，您提到 TAM 可能有數百萬，但佛羅裡達州是較大的州之一。

So, can you kind of think of like that broader TAM versus what we're seeing in Florida right now?

那麼，你能想像一下更廣泛的 TAM 與我們現在在佛羅裡達州看到的情況嗎？

Yes.

是的。

I'll try to color that up in a way that you can extrapolate to how we think about this across different states.

我將嘗試以一種可以推斷我們在不同州如何看待這個問題的方式來對其進行著色。

So, if I take Florida, and for those of you that don't look at the stats here, Florida has about 122,000 miles of public roadways, our concentration is really on the highways and interstates.

所以，如果我以佛羅裡達州為例，對於那些不看這裡統計數據的人來說，佛羅裡達州有大約 122,000 英里的公共道路，我們的重點實際上是高速公路和州際公路。

And if you look at the mileage of highways and interstate miles, it's around 13,500 or so, right?

如果你看看高速公路和州際公路的里程，大約是 13,500 英里左右，對嗎？

And if you look at the 18,000 sort of site potential in there, it equates to about 1.3 sites per mile and in some cases, it can be up to 2 per mile.

如果你看看那裡 18,000 個站點的潛力，它相當於每英里大約 1.3 個站點，在某些情況下，可能高達每英里 2 個。

Now, I can tell you, living in the North or Mid-Atlantic, I should say, I will tell you going up and down 95 every quarter a mile or so, I can tell you there's devices there.

現在，我可以告訴你，住在北部或大西洋中部，我應該說，我會告訴你每四分之一英里左右上下 95 度，我可以告訴你那裡有設備。

So, when we start looking across the states, whether if you look at Texas and their road miles, if you look at Florida and their road miles, you look at Hawaii and New Mexico road miles, we see pretty easily 750,000 to 1 million, 1.5 million sites potential as a TAM.

所以，當我們開始觀察各州時，無論你看看德克薩斯州和他們的公路里程，如果你看看佛羅裡達州和他們的公路里程，你看看夏威夷和新墨西哥州的公路里程，我們很容易看到75 萬到100 萬， 150 萬個站點有可能成為 TAM。

Now, if you think about the devices, and this is how we think about it, we have an opportunity to be able to serve each of those states on the roadways with the superior data that we do produce for them for class count and speed.

現在，如果你考慮這些設備，這就是我們的想法，我們有機會能夠為道路上的每個州提供我們為它們提供的班級數量和速度的優質數據。

However, once you have that real estate, we'll just call it real estate, the ability to do upsells and cross-sells there is enormous.

然而，一旦你擁有了房地產，我們就稱之為房地產，進行追加銷售和交叉銷售的能力是巨大的。

And so, when we think about the potential that 750,000 to 1.5 million sites provides, it's not just one and done.

因此，當我們考慮 75 萬到 150 萬個網站所提供的潛力時，我們發現這不僅僅是一個就完成了。

It's the ability to expand upon that, add value-added services on top.

它是在此基礎上進行擴展、添加增值服務的能力。

And frankly, we're starting to see this now pull in our additional platform.

坦白說，我們現在開始看到這吸引了我們的額外平台。

So, what I'm talking about right now is Discover, but we also have our Command platform, and we also have our Scout platform.

所以，我現在談的是Discover，但我們也有我們的Command 平台，我們也有我們的Scout 平台。

And those are tied together on the back end that allows us to do expansion.

這些在後端連接在一起，使我們能夠進行擴展。

So, the TAM is pretty significant.

所以，TAM 非常重要。

Even if you just looked at that independently as our Urban Mobility segment with Discover, it's a very, very good TAM overall.

即使您只是將其獨立地視為我們的城市交通部分與 Discover，它總體上也是一個非常非常好的 TAM。

But then you start to look at the cross-selling and upselling capability, it becomes really terrific.

但當你開始關注交叉銷售和追加銷售能力時，它就變得非常了不起。

And that's what we see ahead for us.

這就是我們對未來的展望。

And one last one, just on G&A, that was up sequentially.

最後一項，就 G&A 而言，是按順序上升的。

Was there any onetime item in there?

裡面有一次性物品嗎？

Yes.

是的。

You're right, Mike.

你是對的，麥克。

We have a significant amount of onetime items there associated with the financing transaction we did in Q3, like the Yorkville, we did a new shelf and we did the warrant exercise that happened all in Q3 and resulted in expenses.

我們有大量與我們在第三季度進行的融資交易相關的一次性項目，例如約克維爾，我們做了一個新的貨架，我們做了第三季度發生的所有認股權證活動並產生了費用。

So, the $15 million of savings you expect is basically relative to the OpEx in the third quarter, probably excluding those onetime items, I would imagine?

那麼，您預期的 1500 萬美元節省基本上是相對於第三季度的營運支出而言的，我想可能不包括那些一次性項目？

Yes.

是的。

Excluding the onetime items, as we said, we did the salary realignment with equity and some other measures to reduce our expense structure significantly in 2025.

正如我們所說，排除一次性項目，我們透過股權調整薪資和其他一些措施，以在 2025 年大幅減少我們的費用結構。

(Operator Instructions)

（操作員說明）

Louie DiPalma, William Blair.

路易·迪帕爾瑪，威廉·布萊爾。

You are making significant progress in Florida with the APL and you announced developments with Texas and New York.

你們透過 APL 在佛羅裡達州取得了重大進展，並且宣布了與德克薩斯州和紐約州的進展。

We were wondering how might the new presidential administration impact Rekor's business as there has been a lot of discussion of Dodge reducing red tape and bureaucracy and you have cited the inconsistent government procurement cycles, but could Dodge like expedite procurement and lead to a faster conversion of this like very large 750,000 TAM into like deployments and revenue?

我們想知道新的總統政府將如何影響 Rekor 的業務，因為已經有很多關於道奇減少繁文縟節和官僚主義的討論，並且您提到了不一致的政府採購週期，但道奇是否可以加快採購並導致更快的轉換這相當於750,000 TAM 的部署和收入？

That's something we've given a lot of thought to, obviously, leading up into the election season and obviously, the outcomes of the election.

顯然，在進入選舉季以及選舉結果之前，我們已經對此進行了許多思考。

A couple of things I would say just as sort of contextual points is that the Infrastructure and Jobs Act or the Bipartisan Infrastructure Law, thankfully, was intended to extend beyond a single administration.

我想說的幾件事作為上下文要點是，值得慶幸的是，《基礎設施和就業法案》或《兩黨基礎設施法》的目的是超越單一政府。

So, that's still in place, that's still $1.2 trillion, and it's still within a 5-year duration of time.

所以，這仍然存在，仍然是 1.2 兆美元，而且仍然在 5 年的時間內。

So regardless of the outcome of the election, that still stands and the money that has been earmarked or allocated already is still earmarked and allocated.

因此，無論選舉結果如何，這一點仍然有效，已經指定或分配的資金仍然是指定和分配的。

Now, as we've kind of looked at this scenario planning here for what may happen, we kind of took a look at Trump's first term and just sort of as an indicator of what we can expect.

現在，當我們研究了可能發生的情況的情境規劃時，我們研究了川普的第一個任期，並將其作為我們可以預期的指標。

And there's been no announcement of the Secretary of Transportation yet or the Department of Energy, those are still open positions yet to be fulfilled.

運輸部長或能源部還沒有宣布任何消息，這些職位仍然有待填補。

But they will still have the infrastructure law to depend on and deploy.

但他們仍然可以依賴和部署基礎設施法。

And the reality is that nothing has really fundamentally changed in terms of we've got increasing demand for travel, infrastructure is aging.

現實情況是，就我們對旅行的需求不斷增加、基礎設施老化而言，沒有什麼真正從根本上改變。

The fact that fuel tax revenue is going down and that the existing sort of program spend for Departments of Transportation is insufficient to do what they need to do, the need to be able to leverage and tap the infrastructure law or the bipartisan infrastructure law is still there.

事實上，燃油稅收入正在下降，交通部現有的計劃支出不足以完成他們需要做的事情，因此仍然需要能夠利用和利用基礎設施法或兩黨基礎設施法案那裡。

And Trump is known to have a heavy focus on highway expansion for sure.

眾所周知，川普非常關注高速公路擴建。

When we think about an emphasis on rural areas of border surveillance, domestic ICE vehicle production, so standard petroleum vehicles.

當我們考慮對農村地區的邊境監控、國內內燃機車輛生產以及標準石油車輛的重視。

I mean, all of that bodes well for what we have as an offering today and we don't see anything but positive ahead.

我的意思是，所有這些都預示著我們今天所提供的產品，而且我們看不到任何積極的前景。

I mean it's going to be AI focused, it's going to be about being able to have scalable, affordable solutions that enable labor reduction.

我的意思是，它將以人工智慧為重點，它將能夠提供可擴展、負擔得起的解決方案，從而減少勞動力。

So, you think of Dodge and some of the efficiencies that may come up as a result of that and the streamlining of bureaucracy and the need to reduce friction.

因此，您會想到道奇以及由此可能帶來的一些效率，以及官僚機構的精簡和減少摩擦的需要。

So, procurement, we expect we'll have maybe a simpler path forward there.

因此，在採購方面，我們預計我們可能會有一條更簡單的前進道路。

Again, all of this is speculation, but that's how we're looking at this.

再說一次，所有這些都是猜測，但這就是我們的看法。

So, overall, I would say we're feeling good about the transition as it relates to our business and the path forward.

因此，總的來說，我想說我們對過渡感覺良好，因為它與我們的業務和前進的道路有關。

And we're excited to see who the Secretary of Transportation is going to be and looking forward to aligning with that.

我們很高興看到交通部長的人選，並期待與之保持一致。

Now, the last thing I'll say here, Louie, is that Rekor's presence and influence in the industry is growing.

現在，Louie，我在這裡要說的最後一件事是，Rekor 在行業中的存在和影響力正在增長。

And our ability to have good insight into what's to come and our ability to help shape what's to come at the highest levels of the U.S.

我們有能力深入了解未來的發展趨勢，並有能力幫助美國最高層制定未來的發展方向。

Department of Transportation, Federal Highways Administration and now with my appointment on the ITS America Board of Directors, I think that puts us in a very strong position to help shape the future here.

交通部、聯邦公路管理局，以及我現在被任命為 ITS America 董事會成員，我認為這使我們處於非常有利的地位，可以幫助塑造這裡的未來。

So for us, it's green lights, full steam ahead for us.

所以對我們來說，這是綠燈，我們全速前進。

And it seems the progress of the 1,000 camera deployment with State X has been impacted by the hurricane season, but what is the new time line for when that deployment should be completed?

State X 部署 1,000 個攝影機的進度似乎受到了颶風季節的影響，但完成部署的新時間表是什麼？

And once it's completed, should investors expect follow-on orders from State X?

一旦完成，投資者是否應該期待 X 州的後續訂單？

Like what is the market opportunity?

例如市場機會是什麼？

And are you already in negotiations for follow-on tranches with State X?

您是否已經在與 X 國就後續付款進行談判？

Yes.

是的。

So yes, yes and yes, Louie.

所以是的，是的，是的，路易。

So, State X, as we've referred to before in previous calls, as I've hopefully tried to make more clear today is Florida.

所以，正如我們之前在之前的電話會議中提到的那樣，X 州是佛羅裡達州，我希望今天能更清楚地說明這一點。

With our inclusion on the APL, there's an enormous opportunity there.

隨著我們加入 APL，那裡存在著巨大的機會。

And our position in the state is very favorable, again, based on performance and based on relationship and the momentum.

同樣，基於績效、關係和勢頭，我們在該州的地位非常有利。

Keep in mind, we've had a long, longtime relationship with the state in Florida.

請記住，我們與佛羅裡達州有著長期的合作關係。

And Florida is influential to other states, not only around Florida and adjacent to Florida but really across the nation.

佛羅裡達州對其他州也有影響力，不僅是佛羅裡達州週邊和毗鄰佛羅裡達州，而且是全國。

They are one of the top states when it comes to Federal Highways administration, and so many times, the question becomes what is Florida doing?

在聯邦高速公路管理方面，他們是頂尖的州之一，很多時候，問題變成佛羅裡達州在做什麼？

And maybe that's what we should do when it comes to states and how they make decisions and so we're really pleased with that.

也許這就是我們在各州以及他們如何做出決策方面應該做的，所以我們對此感到非常滿意。

The opportunity that I've outlined there is very real, and we're extremely well positioned.

我所概述的機會是非常真實的，而且我們處於非常有利的位置。

So, we're working with the districts now on deployment plans.

因此，我們現在正在與各地區合作制定部署計劃。

It will tie into their program spend, it will tie into discretionary funds.

它將與他們的計劃支出、可自由支配的資金掛鉤。

And, yes, I mean, again, that's yes, yes and yes for us.

是的，我的意思是，這對我們來說是的，是的，是的。

We still have day-to-day operational things that we'll go through with them, there's still things that we're working on and time lines, how to stage that through the districts and labor and things related to that.

我們仍然有日常運作的事情需要與他們一起完成，還有我們正在處理的事情和時間表，如何透過地區和勞工以及與之相關的事情來進行。

But, yes, the opportunity is immense there.

但是，是的，那裡的機會是巨大的。

And is there also the equivalent of approved product lists in some of your other large markets, such as New York and Texas and California?

在您的其他一些大型市場（例如紐約、德克薩斯州和加利福尼亞州）是否也有同等的核准產品清單？

There are and it becomes relevant depending on -- so APL or approved product list, there's different names for it, but similar kind of thing.

有並且它變得相關取決於 - 所以 APL 或批准的產品列表，它有不同的名稱，但類似的東西。

Not every state has them, but a lot of states do.

並非每個州都有，但很多州都有。

And a lot of states have reciprocal agreements.

許多州都有互惠協議。

So, what one state does, another state will follow.

因此，一個州做什麼，另一個州就會跟進。

And if it's good enough for them, it's good enough for us without having to go through what can be an elongated process sometimes.

如果這對他們來說足夠好，那麼對我們來說也足夠好，而不必經歷有時可能會很漫長的過程。

But having gone through now in multiple states, we have a growing experience on this and a lot of this can be templatized.

但現在在多個州經歷過，我們在這方面的經驗越來越多，其中許多都可以模板化。

In my earnings remarks, I talked about dealing with procurement and how we're codifying the process and building a framework.

在我的財報演講中，我談到了處理採購以及我們如何整理流程和建立框架。

And part of that is we know this is going to become something.

其中一部分是我們知道這將會成為現實。

And we have answers now and I think we can accelerate that process.

我們現在有了答案，我認為我們可以加快這一進程。

That's our expectation.

這是我們的期望。

So, that's for states that are buying equipment that they need to have on an approved product list.

因此，這適用於正在購買需要列入核准產品清單的設備的州。

But our business model provides alternatives, like for example, some states don't need to buy equipment they will do data services only.

但我們的商業模式提供了替代方案，例如，有些州不需要購買設備，他們只提供數據服務。

And if it's a data services only, there's no equipment to buy per se so there's no approved product list to worry about.

如果只是資料服務，則本身無需購買設備，因此無需擔心批准的產品清單。

You're delivering a service, a data service at the end of the day.

歸根結底，您正在提供一項服務，一項數據服務。

So, what we expect to see happen is that states that do have the opportunity to procure hardware is that we will navigate through the APL process, if there is one, we will lean on existing APLs that we currently have to help accelerate that process and or have a reciprocal agreement there.

因此，我們期望看到的情況是，確實有機會採購硬體的州我們將瀏覽 APL 流程，如果有的話，我們將依靠現有的 APL，我們目前必須幫助加速這一流程，並且或在那裡達成互惠協議。

And the third option there is that we would look to partner with a local integrator that is already enabled with everything lined up with an APL to accelerate that process.

第三個選擇是，我們希望與本地整合商合作，該整合商已經啟用了與 APL 一致的所有功能，以加速這一過程。

So, I think, again, going back to just the main point is that states do have APLs.

所以，我認為，再次回到要點，各州確實有 APL。

They become relevant if they have to buy equipment, but we see more and more states moving to more of a hybrid model and/or even a data services model.

如果他們必須購買設備，它們就會變得相關，但我們看到越來越多的州轉向更多的混合模型和/甚至數據服務模型。

So, it will become less relevant, I would say, as we move forward.

因此，我想說，隨著我們的前進，它會變得不那麼重要。

But if there is one, we'll navigate it.

但如果有的話，我們會引導它。

If there isn't one, that's great, too.

如果沒有，那也很好。

And lastly, does the $15 million in cost savings initiatives, does that provide enough liquidity cushion for Rekor to execute its plan until the company becomes free cash flow breakeven or free cash flow positive in the second half of next year?

最後，1,500 萬美元的成本節約計劃是否為 Rekor 提供足夠的流動性緩衝來執行其計劃，直到該公司在明年下半年實現自由現金流盈虧平衡或自由現金流為正？

Hi, Louie, yes.

嗨，路易，是的。

So the way we look at it, yes, we look on our expense structure and focus really on near-term revenues generating activities.

因此，我們看待它的方式是，我們著眼於我們的費用結構，並真正專注於短期創收活動。

And we believe that we did and the $15 million savings that we have will give us enough run rate to get to a free cash flow in 2025.

我們相信我們做到了，我們節省的 1500 萬美元將為我們提供足夠的運行速度，以便在 2025 年實現自由現金流。

(Operator Instructions)

（操作員說明）

We reached the end of our question-and-answer session.

我們的問答環節結束了。

I'd like to turn the floor back over for any further or closing comments.

我想重新發言以徵求進一步的意見或結束意見。

I just want to say thank you very much for tuning in today.

我只想說非常感謝您今天的收聽。

We've made, I would say, tremendous progress in a short period of time.

我想說，我們在短時間內取得了巨大進步。

We're a young company still, we've accomplished a lot.

我們仍然是一家年輕的公司，我們已經取得了許多成就。

And a good example, I think, is getting through the processes with Florida as sort of a template and an example.

我認為，一個很好的例子是以佛羅裡達州為模板和範例來完成整個流程。

We've learned a lot in that process, and I think it's going to accelerate our path forward.

我們在這個過程中學到了很多東西，我認為這將加速我們前進的道路。

So, a lot of goodness coming out of that.

所以，從中產生了許多好處。

And the changes that we've made from an operating expenses perspective is significant.

從營運費用的角度來看，我們所做的改變是重大的。

Something like that is difficult to do.

這樣的事情很難做到。

And we've got some amazing people and some rock stars that will be on to their next adventure, and we wish them well.

我們有一些了不起的人和一些搖滾明星將開始他們的下一次冒險，我們祝他們一切順利。

But the folks that are remaining are fully committed to the plan here.

但留下來的人完全致力於這裡的計劃。

We believe that the changes that we've made are going to allow us to cash flow our business as we move forward to profitability.

我們相信，我們所做的改變將使我們能夠在實現盈利的同時實現業務現金流。

And we're starting to see the business turn in the way that we expected.

我們開始看到業務朝著我們預期的方向發展。

It took a little longer than we'd like to see, but it's on its way, and we expect this to continue into '25 for sure and beyond.

它花費的時間比我們希望看到的要長一些，但它正在路上，我們預計這種情況肯定會持續到 25 年甚至更久。

And so, we're excited about the path forward.

因此，我們對前進的道路感到興奮。

We have a lot of work to do, and we're clear-eyed about that, and we're on it.

我們還有很多工作要做，我們對此很清楚，並且正在努力。

So, thank you very much for the support and the patience and I believe that you're going to be well rewarded as we continue to navigate the path forward to what is an inevitable future.

因此，非常感謝您的支持和耐心，我相信，隨著我們繼續朝著不可避免的未來前進，您將獲得豐厚的回報。

So, thank you very much for today, and I look forward to updating you in the next quarter.

所以，非常感謝您今天的發言，我期待在下個季度向您提供最新情況。

Thank you.

謝謝。

That does conclude today's webcast.

今天的網路廣播到此結束。

You may now disconnect your line, and have a wonderful day.

您現在可以斷開線路，度過美好的一天。

We thank you for your participation today.

我們感謝您今天的參與。