Rekor Systems, Inc. (the "Company") has become aware of significant accumulation of its common stock held through a single participant of the Depository Trust Company ("DTC"). Based on information available to the Company, this accumulation represents approximately 14% of the Company's outstanding common stock as of March 28, 2025. Based on the Company's investigation, the accumulation appears to have started in late December 2024 and has continued to date.
The Company is unable to determine at this time whether the accumulated shares are held by a single beneficial owner, a group of beneficial owners acting in concert, or multiple unrelated holders through the DTC participant. To date, to the Company's knowledge, no beneficial ownership reports on Schedules 13D or 13G, no quarterly portfolio holdings reports on Form 13F, nor any Section 16 filings on Forms 3, 4, or 5 have been filed with the Securities and Exchange Commission ("SEC") in connection with the aforementioned accumulation. Under SEC regulations, a person or group acquiring beneficial ownership of more than 5% of a voting class of the Company's equity securities is generally required to file a Schedule 13D or 13G within specified timeframes, certain institutional investment managers holding voting power or investment discretion over such securities are required to file a Form 13F quarterly, and certain insiders are required to file Section 16 reports for transactions involving the Company's securities.
The Company has notified the SEC and the Financial Industry Regulatory Authority ("FINRA") to request their assistance in reviewing this matter to determine whether any required disclosures have not been made. The Company is cooperating fully with any inquiries and will continue to monitor the situation closely.