Rekor Systems, Inc. · NASDAQ:REKR
Rekor Systems — Novume Solutions — Investor Presentation (October 2018)
22 slides from Rekor Systems's investor presentation, Oct 17, 2018
Slide 1: 2018 Corporate Summary
Nasdaq NVMM NOVUME i | Solutions for a New Generation” = Bia, 2018 CORPORATE SUMMARY
Slide 2: Forward Looking Statements
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Slide 3: Novume
NOVUME™ We provide products and services with an emphasis on public safety and workforce solutions to government and private sector clients. Recently, we began integrating Al technologies with our human capital in each of our business units to solve the more complex client challenges.
Slide 4: Highlights
Highlights = Novume is built on a foundation of four core businesses which have proven themselves by operating successfully in their respective markets for years, each growing organically since our ownership = Multi illion total addressable markets in each of our businesses * Increased organic growt
Slide 5: Our Business Operations, Their Sectors and Markets
Sy SIKEY O—r can SISOLUTIONS for the $4518 for the $4688 TRAFFIC SAFETY.EQUIPMENT MARKET GOVERNMENT CONTRACT PROCUREMENT MARKET Our Business Operations, Their Sectors and Markets Zz FIRESTORM Gly BAL for the $3.48. for the $28.18 RISK MANAGEMENT MARKET TECHNICALSTAFFING FOR AVIATION A *AND AEROSPACE
Slide 6: Novume Businesses
NOVUME ™ Businesses Yo Bsraescose is © vneSone + Contract personnel, tempo bite professionals {enpoyayfeesorl Nes and ‘Siac hires ereieer le to stake) ighesemoatent sc Fecou'ces for {tomers during peak periods ‘fille ales
Slide 7: Our Customers
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Slide 8: Our Development and Growth
Our Development and Growth Development of the Argos product line and partnership with OpenALPR have paved a way to introduce these and new Al technologies to our businesses and our customers
Slide 9: Opportunity to disrupt
=—— the opps to disrupt transfofming:them from hat "software-based solutions ¥ od a ——
Slide 10: We are preparing our businesses for an AI transformation
NOVUME™ We are preparing our businesses for an Al transformation fre : 0 MAN CCONTRACTIN PREVENTION AN SAFETY | ‘Al can make workplaces and Al can help source schools safer by hardening __ qualified talent in complex | an cleifor them with processes ad provide Pa
Slide 11: AI Integration for Proprietary Products
%o Al Integration for Proprietary Products Introducing the Argos line of proprietary technology ‘Argos Guardian * Subscription-based Move Over Camera™ Recs ring revenue * Auto-enforcement of z “Move Over" laws * Sealing in 2019 + Field testing in * Citation management software ¥ Obie licensing ¥ New
Slide 12: Winning federal government contracts is highly competitive
Winning federal government contracts is highly competitive in the world's largest market - $400B+ annually + Proprietary process for + Tom identifying opportunities = iaheuanT soni * Large et of sb tier «Gass oobi + Principle-Centered Winning * Teaming + Capture + Proposal management + Training novu
Slide 13: AI Can Enable Preventative Safety
@AI Can Enable Preventative Safety Preventing school and workplace violence before it happens. * BeftTha™ ~ Behavioral Risk Annual license fee ‘Threek Ancessroert + Recurring revenue We have been working to incorporate Alito ovr Tsao ew 4 Pyepiisay pcake + Active shooter policy + Web-based delivery
Slide 14: AI Can Enhance Matching Candidates with Client Needs
3 Al Can Enhance Matching Candidates with Client Needs in Complex Markets Sourcing qualified talent in complex aerospace/aviation and business continuity markets, and then managing performance + Robust database of ‘Efficient screening, onboarding & relevant talent payroll processes, * Ability to pro
Slide 15: Our New Partnership with OpenALPR
| Our New Partnership with OpenALPR Disrupting Multi-Billion Dollar Industries * OpenAL PR offers a unique, software-based system and plug-in which converts existing ‘monitoring into an on-premises ALPR for real-time and forensic use * Is being incorporated into Novume proprietary hardware and solut
Slide 16: How Does OpenALPR Work?
How Does OpenALPR Work? ‘OpenALPR Product Video Explainer: * Any IP camera captures image of license plate * Local or cloud-based software processes the image for optimal reading and analysis + Proprietary algorithms = Convert license plate image to digital characters * Identify vehicle make, model,
Slide 17: Specific OpenALPR Use Cases
Specific OpenALPR Use Cases igital Marketing/Signage Company + OpenALPR client has contract with a global fast food ‘company to upgrade the US drive-through experience * Reducing staff costs through automation and improving the customer experience by: * Automatically sequencing vehicles in the drive
Slide 18: Key Financial Metrics
| Key Financial Metrics 2016, 2017 and 2018" Revenue Growth 2016 (Aca) — 2017 era) 2018" sa207—taao1s 2018 "Ft sx months of 2018 anuizes
Slide 19: Yearly and Quarterly Income Statements
Yearly and Quarterly Income Statements forthe Quarters ended ne 30 and March 31,2018 sor the Yrs ended December 31, 203018 108 207 ord event z aaa ae aa ame Corto revenue Ses. 134036 17073 eoasie Gros prof 3A 308878 coo S92 Operating espenses ‘Sting ger and amine expenses aus 230.950 rage7ue 768 Les
Slide 20: June 30, 2018 Balance Sheet
June 30, 2018 Balance Sheet
Slide 21: Capital Structure
| Capital Structure Common Stock Equivalents as of 10/16/18 Common Stock 14,555,319 Series A Cumulative Convertible Redeemable Preferred Stock* 811,514 ‘Series B Cumulative Convertible Preferred Stock” 481,722 Warrants* 1,008,241 Options* 1,401,764 Total 18,258,560 Notes: 41. Coversion price of $6.1
Slide 22: Summary
Summary = Growing businesses provide a platform to introduce new technologies and service offerings to a supportive customer base * Valuation arbitrage as NOVUME transitions to a tech company focused in Al = Newly public company is flying under the radar * Exclusive option to acquire OpenALPR provid
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