Rekor Systems Inc (REKR) 2024 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome today to Rekor Systems Inc. conference call. My name is Matt and I'll be your conference operator for today. As a reminder, this conference call is being recorded for replay purposes.

女士們、先生們，下午好，歡迎參加今天 Rekor Systems Inc. 的電話會議。我叫馬特，今天我將擔任您的會議主持人。提醒一下，本次電話會議將會被錄音以供重播。

Before we start, I want to read you the company's abbreviated Safe Harbor statement. I want to remind you that statements made in the 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 predicted of future performance or events are forward-looking statements.

在我們開始之前，我想先向大家宣讀一下公司的簡短安全港聲明。我想提醒您，電話會議中有關未來收入、經營成果、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為前瞻性陳述。

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 to refer to the full disclaimers in our earnings releases. You should review a description of the risk factors contained in our annual and quarterly filings with the SEC.

此類聲明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聲明所表達或暗示的結果有重大差異。我們要求參考我們的收益報告中的完整免責聲明。您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包含的風險因素描述。

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 it's provided for informational purposes only.

電話會議也將討論非公認會計準則結果。該公司認為，非公認會計準則資訊的呈現為公司持續經營提供了有用的補充數據，僅供參考。

I would now like to turn a conference over to Mr. Robert Berman, Interim President and CEO of Rekor Systems. Thank you. You may begin.

現在，我想將會議交給 Rekor Systems 臨時總裁兼執行長 Robert Berman 先生。謝謝。你可以開始了。

Thank you, Matt, and good afternoon, everyone. We appreciate your joining us today to discuss Rekor Systems fourth-quarter and full-year 2024 results.

謝謝你，馬特，大家下午好。感謝您今天加入我們，討論 Rekor Systems 2024 年第四季和全年業績。

I'm pleased to share that we ended 2024 with strong momentum, reflecting the deep commitment of our teams, the trust of our customers, and the continued innovation we bring to transforming roadway intelligence and public safety through AI-driven, data-driven solutions.

我很高興地告訴大家，我們在 2024 年取得了強勁的發展勢頭，這反映了我們團隊的堅定承諾、客戶的信任，以及我們透過人工智慧驅動、數據驅動的解決方案為改變道路智慧和公共安全所帶來的持續創新。

In today's call, I'll begin reviewing our performance in the fourth quarter of 2024. Next, I'll highlight some of our strategic wins, product developments, and major partnerships from both Q4 and throughout the year. I'll also discuss the progress we made over the course of 2024, including the ways we refined our strategic focus and strengthening our financial processes. And after that I'll share our outlook for 2025 and beyond.

在今天的電話會議上，我將開始回顧我們 2024 年第四季的表現。接下來，我將重點介紹我們在第四季度和全年取得的一些策略性勝利、產品開發和主要合作夥伴關係。我還將討論我們在 2024 年的進展，包括我們改善策略重點和加強財務流程的方式。之後我將分享我們對 2025 年及以後的展望。

Then I'll turn things over to our Chief Financial Officer, Eyal Hen who will provide more details on our financial performance. And following our remarks, we'll welcome your questions.

然後，我將把事情交給我們的財務長 Eyal Hen，他將提供有關我們財務業績的更多詳細資訊。在我們發言之後，我們將歡迎您提問。

Let's start with our performance in the fourth quarter. In the fourth quarter, we saw a strong demand for our core platforms, Rekor Scout, Rekro Discover, and Rekor Command across both public sector agencies and commercial partners. From an operational standpoint, we maintain disciplined spending while strategically investing in growth and innovation.

讓我們從第四季的表現開始。在第四季度，我們發現公共部門機構和商業合作夥伴對我們的核心平台 Rekor Scout、Rekro Discover 和 Rekor Command 的需求強勁。從營運角度來看，我們保持有紀律的支出，同時策略性地投資於成長和創新。

This approach resulted in approximately 49% reduction in EBITDA loss in the fourth quarter of 2024 versus the third quarter of 2024 aligning with our plan to achieve stronger profitability while supporting the development of next-generation technology. While the fourth quarter capped off a solid finish, our progress throughout 2024 has enabled Rekor to enter 2025 in a strong footing. We entered 2024 with growing customer momentum supported by a pipeline developed through the second half of 2023. And we kept to our core mission of driving the digital transformation of roadway infrastructure.

這種方法使 2024 年第四季的 EBITDA 虧損與 2024 年第三季相比減少了約 49%，這符合我們實現更強獲利能力同時支持下一代科技發展的計畫。雖然第四季取得了穩固的成績，但我們在 2024 年取得的進步使 Rekor 能夠以強勁的基礎邁入 2025 年。進入 2024 年，在 2023 年下半年開發的管道的支持下，客戶成長勢頭強勁。我們始終堅持推動道路基礎設施數位轉型的核心使命。

Throughout 2024, we continue to gain traction in states like Texas, Florida, Georgia, Maryland, and New Mexico, demonstrating the tangible value of our AI-driven platforms across urban mobility, transportation management, and public safety.

在整個 2024 年，我們將繼續在德克薩斯州、佛羅裡達州、喬治亞州、馬裡蘭州和新墨西哥州等州獲得發展，展示我們的人工智慧驅動平台在城市交通、交通管理和公共安全方面的實際價值。

In Florida, for instance, we achieved inclusion on the state's Approved Product List. This milestone allows us to roll out our solutions more broadly and provided a spotlight on how our devices and the data they collect are critical for not only traffic collection but also enabling emergency evacuation routes during challenging hurricane seasons.

例如，在佛羅裡達州，我們被列入該州的核准產品清單。這一里程碑使我們能夠更廣泛地推出我們的解決方案，並突出了我們的設備及其收集的數據不僅對於交通收集至關重要，而且對於在艱難的颶風季節提供緊急疏散路線也至關重要。

Speaking about Florida, Georgia, Texas, and other states, let me be clear about an important point for our shareholders. After a thorough evaluation, the Board has determined that continuing to wait on traditional government contracting timelines is no longer in the best interest of our shareholders.

談到佛羅裡達州、喬治亞州、德克薩斯州和其他州，讓我向我們的股東明確一個重要的觀點。經過全面評估，董事會認為繼續等待傳統的政府合約時間表不再符合我們股東的最佳利益。

Relying on the uncertain timing of large, externally driven contracts placed the company in a position where we risk unnecessary shareholder dilution, funding scale in anticipation of orders rather than in response to secured revenue. While we remain highly confident in our robust government contracting pipeline and believe it's a matter of when not if, those orders come through we're no longer willing to anchor our operational model to the uncertainty of government timelines.

依賴外部驅動的大型合約的不確定時間，將使公司面臨不必要的股東稀釋的風險，為了預期訂單而不是為了獲得固定收入而擴大融資規模。雖然我們對我們強大的政府承包管道仍然充滿信心，並且相信這只是時間問題而不是是否會發生的問題，但這些訂單來了，我們不再願意將我們的營運模式錨定在政府時間表的不確定性上。

We are now taking control of our future. We're shifting to a strategy that is grounded in the company's current, healthy, and more predictable revenue base. Our goal is to operate the company at this level with a clear path to breakeven. Any upside from new large government contracts will be additive but no longer essential to our baseline strategy.

我們現在正在掌控自己的未來。我們正在轉向以公司當前、健康且更可預測的收入基礎為基礎的策略。我們的目標是讓公司維持這樣的營運水平，並有明確的損益平衡路徑。新的大型政府合約帶來的任何好處都將是附加的，但對我們的基本策略來說不再是必不可少的。

This is a proactive move to protect shareholder value. It reflects the Board's commitment to financial discipline, operational focus, and reducing reliance on external variables beyond our control. Simply put, we're aligning the company's cost structure and strategic direction with what we can control rather than waiting on what we can't.

這是保護股東價值的主動舉措。它反映了董事會對財務紀律、營運重點以及減少對我們無法控制的外部變數的依賴的承諾。簡而言之，我們正在根據我們能夠控制的因素調整公司的成本結構和策略方向，而不是等待我們無法控制的因素。

Nationally, as everyone is aware, the new Trump administration is intently focused on addressing any waste by the federal government. This priority is evident at the highest levels of government and only recently has focus turned to the USDOT, where the DOGE and the new USDOT leadership is actively targeting inefficiencies stemming from outdated technology. This comprehensive overhaul at the federal level positions Rekor advantageously. And we are securing our seat at the table to offer practical solutions to addressing a number of deep-rooted inefficiencies.

眾所周知，在全國範圍內，新川普政府正致力於解決聯邦政府的任何浪費問題。這項優先事項在政府最高層顯而易見，直到最近才將焦點轉向美國交通部，其中 DOGE 和美國交通部新領導層正在積極解決因技術過時而導致的低效率問題。聯邦層級的全面改革使 Rekor 處於有利地位。我們正在確保自己的席位，為解決一系列根深蒂固的低效率問題提供實際的解決方案。

Partnerships remained a cornerstone of our strategy in 2024. We deepen relationships with global technology leaders such as Amazon Web Services and NVIDIA, both of which recognize the potential of our AI-driven transportation platforms. We also expanded our reach in public safety through collaborations with a distribution partner in New Mexico, a new distribution partner in Hawaii, SoundThinking formerly ShotSpotter, SoundHound and MS2, bolstering our channel presence of opening the door to new state departments of transportation and public safety agencies.

合作夥伴關係仍然是我們 2024 年策略的基石。我們深化與亞馬遜網路服務和 NVIDIA 等全球技術領導者的關係，他們都認可我們人工智慧驅動的交通平台的潛力。我們也透過與新墨西哥州的分銷合作夥伴、夏威夷的新分銷合作夥伴、SoundThinking（前身為 ShotSpotter）、SoundHound 和 MS2 合作，擴大了我們在公共安全領域的影響力，增強了我們的通路影響力，為新的州交通部門和公共安全機構打開了大門。

During the year, we invested in broadening our global intellectual property portfolio, securing patents for detecting and quantifying irregular traffic congestion, both in the United States and Europe and fortifying our approach to protecting personally identifiable information. This IP expansion positions us to maintain our leadership in AI-based solutions that addresses the increasing demands of transportation, safety, and data privacy worldwide.

這一年，我們投資擴大了全球智慧財產權組合，在美國和歐洲獲得了檢測和量化不規則交通擁堵的專利，並加強了保護個人識別資訊的方法。此次 IP 擴展使我們能夠保持在基於人工智慧的解決方案領域的領先地位，滿足全球日益增長的交通、安全和資料隱私需求。

As many of you saw on our recent announcements, we have been very actively recently with new deployments, technology breakthroughs, and partnerships that will help us accelerate our momentum in '25. One example is our expanded relationship with the New Mexico Department of Transportation, where the second phase of implementing our Rekor Discover platform and non-intrusive, video-based Edge Series systems is now underway.

正如你們許多人在我們最近的公告中看到的那樣，我們最近非常積極地進行新的部署、技術突破和建立合作夥伴關係，這將有助於我們在 2025 年加速發展勢頭。其中一個例子是我們與新墨西哥州交通部擴大了合作關係，我們目前正在實施 Rekor Discover 平台和非侵入式基於視訊的 Edge 系列系統的第二階段。

The initiative utilizes a 100% SaaS-like pay-for-data model installed through an authorized third party to demonstrate the scalability and flexibility of our platform in managing and analyzing traffic data. Pay-for-data is a business model that can be a game changer for DOTs and aligns our company's capabilities and we continue to educate DOTs. They are increasingly realizing that there is a better, safer, and real-time way to capture traffic data.

該計劃採用透過授權第三方安裝的 100% 類似 SaaS 的按數據付費模式，以展示我們的平台在管理和分析交通數據方面的可擴展性和靈活性。付費數據是一種商業模式，它可以改變 DOT 的遊戲規則，並調整我們公司的能力，我們將繼續教育 DOT。他們越來越意識到有一種更好、更安全、即時的方式來捕捉交通數據。

Meanwhile, Rekor Scout secured a major certification for New Jersey's statewide network ALPR program, or New Jersey SNAP. This certification, backed by $13 million in state funding positions us as a trusted go-to provider for agencies that require real-time, highly accurate vehicle recognition capabilities.

同時，Rekor Scout 獲得了新澤西州全州網路 ALPR 計畫（即新澤西州 SNAP）的重要認證。這項認證得到了 1300 萬美元的政府資金支持，使我們成為需要即時、高精度車輛識別功能的機構值得信賴的首選供應商。

We also introduced enhancements to our core solutions that emphasize advanced AI features. During the Transportation Research Board's 2025 annual meeting, we unveiled our new incident priority ranking feature in Rekor Command which harnesses AI and real-time data to help traffic and emergency operation centers respond faster to high-impact incidents.

我們也對核心解決方案進行了增強，強調先進的 AI 功能。在交通研究委員會 2025 年年會上，我們推出了 Rekor Command 中的新事件優先級排名功能，該功能利用人工智慧和即時數據來幫助交通和緊急行動中心更快地應對高影響事件。

Early results from customer tests have shown reductions of up to 60% in the time from incident detection to resource allocation. To support these innovations and our continued growth, we took steps in Q4 to further strengthen our financial position.

客戶測試的早期結果顯示，從事件偵測到資源分配的時間減少了高達 60%。為了支持這些創新和我們的持續成長，我們在第四季度採取了措施進一步加強我們的財務狀況。

By December 31, we had fully satisfied the remaining balance of our August 2024 Prepaid Advance Agreement with an affiliate of Yorkville Advisors Global totaling $15 million. This early repayment significantly enhanced our balance sheet and improved our flexibility to pursue strategic growth opportunities in 2025.

截至 12 月 31 日，我們已完全償還與 Yorkville Advisors Global 的一家附屬公司簽訂的 2024 年 8 月預付預付款協議的剩餘餘額，總額為 1500 萬美元。此次提前還款顯著改善了我們的資產負債表，並提高了我們在 2025 年尋求策略成長機會的靈活性。

Now, we'll turn the call over to our CFO, Eyal Hen, for a deeper look at our financial results for Q4 and the full year. But before passing it over to Eyal, allow me to take a moment to mention the departure of David Desharnais, our former CEO.

現在，我們將把電話轉給我們的財務長 Eyal Hen，以深入了解我們第四季和全年的財務表現。但在交給 Eyal 之前，請允許我花點時間提一下我們前任執行長 David Desharnais 的離職。

David joined Rekor in January 2022 as President and in 2024 became President and CEO. David submitted his resignation earlier this month and the Board accepted it with our thanks for his contributions and we sincerely wish him success in his future endeavors. The Board has begun a process to identify a new CEO. During the interim, I will assure continuity by continuing to lead the company. Eyal?

David 於 2022 年 1 月加入 Rekor 擔任總裁，並於 2024 年成為總裁兼執行長。大衛本月初提交了辭呈，董事會接受了他的辭呈，我們對他的貢獻表示感謝，並真誠地祝愿他在未來的事業中取得成功。董事會已開始尋找新任執行長。在此期間，我將繼續領導公司，確保連續性。埃亞爾？

Thank you, Robert, and thanks to all of you joining us today to discuss our results for the 3 months and 12 months that ended December 31, 2024.

謝謝你，羅伯特，也謝謝大家今天加入我們，討論截至 2024 年 12 月 31 日的 3 個月和 12 個月的表現。

We are pleased to report fourth quarter of 2024 revenue of $13.3 million surpassing consensus estimates by 3% and marking significant reacceleration in our year-over-year growth rate, which has returned above 20%. Our Urban Mobility segment, driven by robust demand for our new roadway, data-aggregation solution, primarily contributed to our overall growth.

我們很高興地報告，2024 年第四季的收入為 1,330 萬美元，超出普遍預期 3%，並且標誌著我們的同比增長率顯著加速，已回升至 20% 以上。我們的城市交通部門主要受到市場對新道路和數據聚合解決方案的強勁需求的推動，這為我們的整體成長做出了貢獻。

Public Safety, our second largest revenue source, also achieved solid mid-teens growth. This performance was bolstered by increased momentum from strategic licensing partnerships, notably with key partners.

公共安全是我們的第二大收入來源，也實現了穩健的中等成長。這一業績得益於策略授權合作夥伴關係（尤其是與關鍵合作夥伴）的強勁發展勢頭。

Recurring revenue for the quarter total $5.8 million reflecting a modest 2% decline year-over-year. This decrease was largely attributable to timing differences. However, for the full-year 2024, Rekor reported revenue of $46 million representing a robust increase of 32% compared to $34.9 million in the 2023.

本季經常性收入總計 580 萬美元，年比小幅下降 2%。這一下降主要是由於時間差異造成的。然而，Rekor 報告稱 2024 年全年營收為 4,600 萬美元，較 2023 年的 3,490 萬美元強勁成長 32%。

Products and services revenue grew significantly to $23.4 million, up 65% year over year. As a reminder, initial sales of our Edge AI fixed-and-mobile site solutions are reflected in this line item and can serve as a leading indicator for future recurring data revenues.

產品和服務收入大幅成長至 2,340 萬美元，年增 65%。提醒一下，我們的 Edge AI 固定和行動網站解決方案的初始銷售額反映在此項目中，並可作為未來經常性資料收入的領先指標。

Adjusted gross margin rebounded strongly in the fourth quarter of 2024 to 52%, up from 44% in Q3 2024, driven by recent contract wins and the delivery of higher margin offerings. For the full-year 2024, adjusted gross margins slightly decreased to 49.3% compared to 52.8% in 2023, reflecting a higher proportion of SaaS revenue in the overall mix.

受近期合約中標和更高利潤產品交付的推動，調整後毛利率從 2024 年第三季的 44% 強勁反彈至 2024 年第四季的 52%。2024 年全年調整後毛利率略微下降至 49.3%，而 2023 年為 52.8%，反映出 SaaS 收入在整體收入結構中的佔比更高。

Looking ahead, we expect to see steady gross margin improvement driven by an enhanced Saas revenue mix and increased contribution from all pay-for-data contracts. As indicated on our third-quarter call in November, we proactively optimize our cost structure to sharpen our focus on near-term revenue generation.

展望未來，我們預計，在增強的 Saas 收入組合和所有付費數據合約貢獻增加的推動下，毛利率將穩定提高。正如我們 11 月第三季電話會議所指出的，我們積極優化成本結構，以更加專注於短期創收。

This decisive action began yielding tangible financial benefits in Q4, resulting in a reduction of our adjusted EBITDA loss to approximately $4.7 million, significantly, it improved from $9.2 million in Q3 2024.

這項果斷行動在第四季開始產生實際的財務效益，使我們的調整後 EBITDA 虧損減少至約 470 萬美元，較 2024 年第三季的 920 萬美元有顯著改善。

Full-year 2024 adjusted EBITDA loss remained relatively flat year over year at $29.1 million as most of our cost optimization efforts took effect toward the end of Q4 2024. Moving forward, we will continue to work towards steady declines in adjusted EBITDA losses as revenue grows, supported by an improving gross margin.

由於我們大部分的成本優化工作在 2024 年第四季末生效，2024 年全年調整後 EBITDA 虧損與去年同期相比保持相對平穩，為 2,910 萬美元。展望未來，隨著營收的成長和毛利率的提高，我們將繼續努力實現調整後 EBITDA 損失的穩定下降。

On capital allocation, following the amendment of our Prepaid Advance Agreement with Yorkville Advisors to eliminate the option for an additional $20 million advance, we fully satisfied the outstanding balance of $15 million on December 31, 2024, ahead of schedule. Clearing this outstanding balance underscores our commitment to prudent financial management and disciplined capital allocation.

在資本配置方面，在修改了與 Yorkville Advisors 簽訂的預付預付款協議以取消額外預付 2000 萬美元的選項後，我們提前於 2024 年 12 月 31 日全額償還了 1500 萬美元的未償餘額。清算這筆未償餘額凸顯了我們對審慎財務管理和嚴格資本配置的承諾。

In February 2025, we established a $25 million at the Market Issuance Sales Agreement with Northland. This facility allows Rekor to opportunistically raise capital over the next 12 months as we continue executing our strategy and capitalizing on growing momentum with state DOT and public safety agency customers.

2025 年 2 月，我們與 Northland 簽訂了價值 2,500 萬美元的市場發行銷售協議。隨著我們繼續執行我們的策略並利用與州交通部和公共安全機構客戶日益增長的勢頭，該設施將使 Rekor 能夠在未來 12 個月內抓住機會籌集資金。

In summary, we're very pleased with our solid fourth-quarter results, which exceeded expectation across most key metrics. We remain confident in our technological advancement, increasing customer traction and accelerating go-to-market momentum. And we continue to be grateful for the ongoing support of our investors.

總而言之，我們對第四季的穩健業績感到非常滿意，大多數關鍵指標都超乎預期。我們對我們的技術進步、增加客戶吸引力和加速進入市場的勢頭充滿信心。我們將繼續感謝投資者的持續支持。

Now, I will turn the call back to Robert. Robert?

現在，我將把電話轉回給羅伯特。羅伯特？

Eyal, thank you. And now I'd like to open the floor for any questions you may have. Operator.

埃亞爾，謝謝你。現在我想回答大家的任何問題。操作員。

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

Louie Dipalma, William Blair.

路易·迪帕爾馬、威廉·布萊爾。

Great, good afternoon, David and Eyal. Flock Safety has experienced significant momentum with their license plate reader cameras and you guys have a very similar solution. And so from a technical perspective, are you able to offer the same types of capabilities as Flock to take advantage of industry demand from the law enforcement side? Thanks.

太好了，大衛和埃亞爾，下午好。Flock Safety 的車牌讀取器攝影機發展勢頭強勁，而你們的解決方案也非常相似。那麼從技術角度來看，您是否能夠提供與 Flock 相同類型的功能，以滿足執法方面的行業需求？謝謝。

This is Robert Berman. I think that it's not a fair way to compare Flock and Rekor, okay? They've had hundreds of millions of dollars, billions of dollars worth of funding from VCs, and we never went after the law enforcement market. We've gone after the commercial market. We've been very successful in doing that and OEMing our software, which is much less expensive way to sell more profitable margins at the end of the day. So it's apples and oranges.

這是羅伯特·伯曼。我認為比較 Flock 和 Rekor 是不公平的，好嗎？他們從創投公司獲得了數億美元、數十億美元的資金，而我們從未涉足執法市場。我們已經進軍商業市場。我們在這方面做得非常成功，並且 OEM 了我們的軟體，這是一種成本更低、最終能帶來更多利潤率的方式。所以這是蘋果和橘子。

As far as our tech compared to theirs, I think we have the best vehicle recognition ALPR software in the business, right? So if you look at our customers, I think that speaks to that.

就我們的技術與他們的技術相比而言，我認為我們擁有業內最好的車輛識別 ALPR 軟體，對嗎？所以如果你看看我們的客戶，我認為這就說明了這一點。

Thanks, Robert. And one for Eyal. How should we think about the timeline for free cash flow breakeven?

謝謝，羅伯特。還有一個給埃亞爾。我們該如何思考自由現金流損益平衡的時間表？

Thank you for the question. As we mentioned in previous earnings call, our thought is that for the end of the year, we anticipate that and we still keep it.

謝謝你的提問。正如我們在之前的收益電話會議上提到的那樣，我們的想法是，到今年年底，我們預計這一數字將會持續下去。

Thanks, another one for you both, Robert and Eyal. You discussed your many partnerships. And how's the partnership with SoundThinking progressing? Is that still ramping and are there any early data points to indicate the traction that's receiving in the market?

謝謝，羅伯特和埃亞勒，再給你們一個。你們討論了你們的許多合作關係。與 SoundThinking 的合作進展如何？這種趨勢是否仍在持續？是否有任何早期數據點可以表明市場正在受到這種趨勢的牽引？

Well, you'd have to speak to SoundThinking, but I think that they're out there selling. I think they're making progress. They're doing a number of pilots and thus that's a good example of a channel partner to sell our tech, and we expect that to pay off in '25.

嗯，你得和 SoundThinking 談談，但我認為他們在那裡銷售。我認為他們正在取得進展。他們正在進行一些試點，因此這是通路合作夥伴銷售我們技術的一個很好的例子，我們預計這將在 25 年帶來回報。

Great and one final one. With the -- earlier, I think it was in the second quarter or the third quarter of last year, you identified Florida as the customer for the contract involving over 1,000 cameras. What has been the progress of that roll out? And should that lead to more contracts and awards within the state of Florida?

太棒了，這是最後一個了。早些時候，我想是在去年第二季度或第三季度，您確定佛羅裡達是涉及 1,000 多台攝影機的合約的客戶。這項措施的進展如何？這是否會導致佛羅​​裡達州獲得更多的合約和獎勵？

Yeah, that's a really good question and I think I said it earlier in our prepared statements. But look, dealing with government is obviously much different than B2C and government contracting requires a process and state government like federal government has a process. And I can tell you that Florida, Texas, Georgia, and there are others are working through the process and you know we're very optimistic about where we stand with all those states.

是的，這是一個非常好的問題，我想我之前在準備好的聲明中也提到過這個問題。但是，與政府打交道顯然與 B2C 有很大不同，政府承包需要一個流程，州政府和聯邦政府也有一個流程。我可以告訴你們，佛羅裡達州、德克薩斯州、喬治亞州和其他州正在進行這一進程，你們知道我們對這些州的現狀非常樂觀。

But if you were to look into the government procurement process, one's free to -- a company's free to talk about these procurements when they're only in the early stages and you're in a capture stage. But once there's open RFPs and there have been proposals that have been submitted, we can't talk about those because it's a violation of their procurement laws.

但如果你研究政府採購流程，你會發現，當這些採購還處於早期階段，而你正處於捕獲階段時，公司可以自由地談論這些採購。但是一旦有了公開的 RFP 並且已經提交了提案，我們就不能談論這些，因為這違反了他們的採購法。

But I can say that things in Florida, Texas, Georgia, and other states are proceeding well, and they're on the state's timeline, not ours. But those procurements are ongoing and they're actually in procurement stage, which means that there have been proposals submitted and the award timing is up to the state. But we feel good about where we are, but we just can't discuss it, and I think I that's what I said -- I meant earlier by saying align ourselves to what we can control and what we can't control, right?

但我可以說，佛羅裡達州、德克薩斯州、喬治亞州和其他州的事情進展順利，而且這些都按照州的時間表進行，而不是我們的時間表。但這些採購仍在進行中，實際上處於採購階段，這意味著已經提交了提案，授予時間由國家決定。但我們對自己的現狀感到滿意，但我們就是無法討論它，我想這就是我所說的——我之前的意思是讓我們調整自己，看看我們能控制什麼，不能控制什麼，對嗎？

So we're positioning ourselves so that as these things happen, we can scale and scale quickly with the customer. But we're not going to sit around and wait because if it takes another week or two or three for a month or the state to award a contract, we can't sit around and wait for that. We have to be able to marry our expenses and our revenues with what we have in our hand, right? And that's the approach we're taking.

因此，我們這樣定位自己，以便當這些事情發生時，我們可以與客戶一起快速擴大規模。但我們不會坐等，因為如果還需要一周、兩週或三週甚至一個月的時間，或者州政府需要授予合同，我們就不能坐等。我們必須能夠將我們的支出和收入與我們手中的資金結合起來，對嗎？這就是我們採取的方法。

Sounds good. Thanks. That's it for me.

聽起來不錯。謝謝。對我來說就是這樣。

Thank you.

謝謝。

Tim Moore, Clear Street.

蒂姆·摩爾，Clear Street。

Thanks. Robert, you mentioned clearly in your open remarks that -- maybe a pivot away obviously from waiting on the large lumpy DOT contracts that were tying up working capital and spending. Can you give us any kind of thoughts, at this point in the year, maybe color on what you think organic growth could be this year without any acquisitions? Do you think it could be high-teens growth?

謝謝。羅伯特，你在公開演講中明確提到——也許顯然應該放棄等待那些佔用營運資金和支出的大型 DOT 合約。您能否就今年的這個時間點給我們一些想法，在沒有任何收購的情況下，您認為今年的有機成長會達到什麼程度？您認為它有可能達到十幾歲的水平嗎？

Yeah. I'd like to put a number on it. The only thing I'll say is that we've put a lot of time and effort and money in developing these products to the point that we can sell. And there's a difference between a product and a project and Rekor has completed over the past few years a lot of projects and--that are now products, and you know we're out there selling those products. And we believe that we're about to see the fruits of that labor and effort come to fruition, right?

是的。我想給它標上數字。我只想說，我們投入了大量的時間、精力和金錢來開發這些可以銷售的產品。產品和項目之間是有區別的，Rekor 在過去幾年裡完成了許多項目，這些項目現在都是產品，你知道我們正在銷售這些產品。我們相信，我們即將看到這些勞動和努力取得成果，對嗎？

But again, it's outside of our control, but it's not as if it's early-stage discussion. We spent a lot of time, effort, and resources on getting these governments familiar with this technology. It's new, right? It's AI, it's new, it's a different way of doing things. They've been doing it for many, many decades. Using legacy tech takes time, but we're through that piece of it and now we're at the adoption phase and the scale stage.

但再說一次，這超出了我們的控制範圍，但這並不是早期階段的討論。我們花了大量的時間、精力和資源來讓這些政府熟悉這項技術。這是新的吧？這是人工智慧，這是新技術，這是一種不同的做事方式。他們已經這樣做了很多年了。使用傳統技術需要時間，但我們已經度過了那段時間，現在我們正處於採用階段和規模階段。

So I think that that's the good news and we just have to wait for the outcome. And I think it's coming but we're not going to put any dates on it but it's not as if we're not at the last couple of yards before we get to the end zone, but it's government.

所以我認為這是好消息，我們只需要等待結果。我認為它正在到來，但我們不會設定任何日期，但這並不意味著我們還沒有到達終點區前的最後幾碼，但這是政府的事。

No, understood. Another question I had, it seemed like you did some pretty good cost-cutting savings in the--that quarter, despite really probably only starting in late November. I mean, the operating expenses ignoring the impairment charge like they came in like $2.5 million less than what I was expecting. How is that going and the implementation and you're still pretty much on track for a pretty substantial cost savings this year?

不，明白了。我還有一個問題，儘管實際上可能只是在 11 月底才開始，但看起來您在那個季度確實做了一些相當不錯的成本削減節省。我的意思是，忽略減損費用後的營運費用比我預期的少了 250 萬美元。進展如何？實施情況如何？今年您是否仍有望實現相當可觀的成本節約？

I think that the company spent a lot of money over the last few years developing this technology and getting it ready for scale and again being B2G. Once you get the technology ready, you have to decide do you want to focus on the here and now and not three years from now.

我認為該公司在過去幾年中投入了大量資金來開發這項技術並使其做好擴大規模和再次實現 B2G 的準備。一旦技術準備就緒，你必須決定是否要專注於當前情況，而不是三年後的情況。

So a lot of our cost-cutting measures were focused on the here and now and we're flexible enough to be able to scale when it happens. And then we can focus on what's down the road when we're down the road. So that's where we are. And we expect when we see the results of all that we've done over the past couple years come to fruition that'll pay off our shareholders and we're being very careful about that leading, shareholders, and we want to make sure that we get this company to profitability as quickly as possible. And then we can scale with that based on the resources we have, the staff we have, the supply chain we have, and so forth. And we can worry about other things later when we need to worry about those things.

因此，我們的許多削減成本的措施都集中在當前情況，並且我們有足夠的靈活性來在必要時進行擴展。然後，當我們走上正軌時，我們就可以集中精力考慮未來的事情。這就是我們現在的狀況。我們期望，當我們看到過去幾年所做的一切取得成果時，我們的股東將獲得回報，我們對股東非常謹慎，我們希望確保公司盡快獲利。然後，我們可以根據我們擁有的資源、員工、供應鏈等進行擴展。當我們需要擔心那些事情時，我們可以稍後再擔心其他事情。

No, that's good progress is really important. And my last question might be a little bit more for Eyal. I saw the 10-K that came out. I think it said about 111 million shares as of Friday, backed into the fourth-quarter shares, average was something like 93 million. So I'm just trying to wrap my head around maybe, obviously, Yorkville affiliate got shares and the payoff. What is kind of the liquidity today or maybe, how much of the ATM was tapped in the first quarter?

不，那是好的進步確實很重要。我的最後一個問題可能與埃亞爾有關。我看到了出來的 10-K。我認為截至週五，大約有 1.11 億股，計入第四季股票數量，平均約為 9,300 萬股。所以我只是試著去想，也許，顯然，約克維爾的附屬公司獲得了股份和收益。今天的流動性怎麼樣？或者說，第一季 ATM 的使用量是多少？

We disclosed -- if you look on the subsequent events, Tim, we disclosed the usage of the ATM. But remember, as Robert mentioned, we have a lot of things with states for long-term contracts and we have the vehicles of the revenue-sharing notes to improve our liquidity once these contracts are coming rather than have a diluted funding of the company.

我們披露了——蒂姆，如果你看看隨後發生的事件，你就會知道我們披露了 ATM 的使用情況。但請記住，正如羅伯特所提到的，我們與各州簽訂了很多長期合同，並且我們有收入分享票據的工具來提高這些合同到期後的流動性，而不是稀釋公司的資金。

Yeah, can I just add to what Eyal said? Like everything else, things change and what we've seen with our government customers is they're more interested in data as a service than they are about buying technology that may or may not work and then they have to fix and replace every few years. So that's why we put that prime revenue-sharing note mechanism in place a while ago.

是的，我可以補充 Eyal 所說的嗎？就像其他一切一樣，事情也在發生​​變化，我們從政府客戶身上看到，他們對資料即服務更感興趣，而不是購買可能有效也可能無效的技術，然後他們必須每隔幾年進行修復和更換。這就是我們不久前實施主要收入分享票據機制的原因。

And we believe that given the direction that we're headed in that that will be our primary source of funding going forward because that seems to be the way the government customers want to acquire the technology, which makes sense for them, right, if you think about it. And that makes sense for us and our shareholders, right? So that's our plan.

我們相信，考慮到我們前進的方向，這將成為我們未來的主要資金來源，因為這似乎是政府客戶希望獲得技術的方式，這對他們來說是有意義的，對吧，如果你仔細想想的話。這對我們和我們的股東來說都是有意義的，對吧？這就是我們的計劃。

No, that's a great mechanism, the revenue sharing. Thanks a lot and that's it for my questions.

不，收入分享是一種很好的機制。非常感謝，我的問題就這些。

Thank you.

謝謝。

Thank you.

謝謝。

Mike Latimore, Northland Capital.

麥克·拉蒂莫爾 (Mike Latimore)，Northland Capital。

Hey, hi, this is Aditya on behalf of Mike Latimore. Could you give some color on the first quarter of 2025? Should we expect similar business as what we saw in the fourth quarter?

嘿，嗨，我是代表 Mike Latimore 的 Aditya。您能對 2025 年第一季做出一些預測嗎？我們是否應該期待與第四季類似的業務表現？

Hi. Sorry, we do not provide any guidance at this point for 2025. Whenever we discussed 2025, that's what we can't disclose at this point.

你好。抱歉，我們目前無法為 2025 年提供任何指導。每當我們討論 2025 年時，我們目前都無法透露這一點。

Got it. And how many cameras are deployed in Florida as of now?

知道了。截至目前，佛羅裡達州部署了多少個攝影機？

Rob, do you want to take it?

羅布，你想拿走它嗎？

Yeah, I don't think we can disclose that because that would be disclosing revenue for Q1, which is we're not through yet. But our relationship with Florida is good. We can continue to work with them. And I think that's a Q1 question, and I appreciate your ask, but I think we have to stick to the rules.

是的，我認為我們不能披露這一點，因為那將披露第一季的收入，而我們還沒有完成。但我們與佛羅裡達州的關係良好。我們可以繼續與他們合作。我認為這是 Q1 的問題，我很感謝您的提問，但我認為我們必須遵守規則。

Got it. And which other states have the best potential to offer a contract for Discover this year?

知道了。今年還有哪些州最有可能與 Discover 簽訂合約？

Oh, we did more than 15 proof-of-concept installments back when -- as we were introducing this technology to the states. And almost all of them are at the deployment stage where we're either deploying a mass or we're responding to RFP's . And again, the RFP process just for shareholders that are listening to this what the hell does that mean, right?

哦，當我們向美國推出這項技術時，我們做了超過 15 個概念驗證分期付款。幾乎所有專案都處於部署階段，我們要麼進行大規模部署，要麼回應 RFP。再說一次，RFP 流程只是為了聽聽股東的意見，這到底是什麼意思，對吧？

So they're very strict rules, right? So once there's an RFP that is issued, a company can be de-queued for talking to either the agency or the procurement department, which in some states, most states is separate from the agency, right? So we have to be very careful about what we say other than that we're in a process, which is different than the capture or the discovery stage of trying to introduce new technology.

所以他們的規則非常嚴格，對嗎？因此，一旦發布了 RFP，公司就可以取消排隊，轉而與該機構或採購部門進行談判，在某些州，大多數州，採購部門與該機構是分開的，對嗎？因此，我們必須非常謹慎地說出我們所說的話，除了我們正處於一個過程之外，這與試圖引入新技術的捕獲或發現階段不同。

Look, I feel comfortable saying this, that we introduced new technology, we work with our state customers to say, hey, you know what do you think? How does this work for you? How can we make it better? That took some time and it was well worth it, right? And government business is very sticky once you get there and we crossed that threshold with the majority of where we did those POCs and others that have reached out and the technology we now see adoption of.

聽著，我可以很輕鬆地這麼說，我們引進了新技術，我們與州客戶合作，說，嘿，你知道你怎麼想嗎？這對你有什麼作用？我們怎麼才能讓它變得更好？這花了一些時間，但非常值得，對吧？一旦進入政府業務，就會變得非常棘手，我們跨越了這一門檻，大部分都是我們所做的 POC，其他人也已經伸出援手，我們現在看到了技術的採用。

And I will also say that we see inertia of what the technology does, which is that it is non-intrusive, meaning you're not putting people out in harm's way, you're not closing lanes. It makes sense because you're paying for the data as a service so that if you don't get the data you're not paying for the service, right? So broken technology, you don't have that.

我還要說的是，我們看到了這項技術所起的慣性作用，即它是非侵入性的，這意味著你不會把人們置於危險之中，也不會關閉車道。這是有道理的，因為您支付的數據即服務費用，所以如果您沒有獲得數據，您就不會支付服務費用，對嗎？技術太差了，你沒有這個。

It's a good model, right? But it takes a little bit of time for government to change the way they do things. And that's consistent with what you see with the new administration, right? They're talking about using new technology, AI, and other things throughout government. So it's good because we think we're in the right place at the right time and we're very happy with the response that we've gotten from our government customers, but we just want to be careful because we have these open procurements.

這是一個很好的模型，對吧？但政府需要一點時間來改變做事方式。這與您對新政府的觀察一致，對嗎？他們正在討論在政府中使用新技術、人工智慧和其他技術。這很好，因為我們認為我們在正確的時間出現在了正確的地點，並且我們對從政府客戶那裡得到的反饋感到非常滿意，但我們只是想小心謹慎，因為我們有這些公開的採購。

Got it. Thank you.

知道了。謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

This includes the question-and-answer session. I'd like to turn the floor back to management for any closing comments.

其中包括問答環節。我想將發言權交還給管理階層，請他們發表最後的評論。

Alright, well, look, thanks, everybody, for your patience, your support, and everything else. There's a lot going on out there, but I'm proud of where we are. And I think that we're pleased with the progress the company's made. And as I said, there's some inertia behind what we're doing, and that should pay off for our shareholders in 2025 and beyond. And thank you, everyone, for your continued interest.

好吧，謝謝大家的耐心、支持以及其他一切。外面發生了很多事情，但我為我們所處的位置感到自豪。我認為我們對公司的進展感到滿意。正如我所說，我們所做的事情背後有一些慣性，這應該會在 2025 年及以後為我們的股東帶來回報。謝謝大家一直以來的關注。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.

今天的電話會議到此結束。現在您可以斷開線路。再次感謝您的參與。