Item 1.01 Entry into a Material Definitive Agreement.
Rekor Systems, Inc. - PPP Loan
On May 26, 2020, Rekor Systems, Inc., a Delaware corporation (the "Company"),
entered into a promissory note with Newtek Small Business Finance, LLC, which
provides for a loan in the principal amount of $221,500 (the "Rekor PPP Loan
Note") pursuant to the Paycheck Protection Program under the Coronavirus Aid,
Relief, and Economic Security Act (the "CARES Act"). The Rekor PPP Loan Note has
a two-year term and bears interest at a rate of 1.0% per annum. Monthly
principal and interest payments are deferred for six months after the date of
disbursement. The Rekor PPP Loan Note may be prepaid at any time prior to
maturity with no prepayment penalties. The Rekor PPP Loan Note contains events
of default and other provisions customary for a loan of this type. The Paycheck
Protection Program provides that the Rekor PPP Loan Note may be partially or
wholly forgiven if the funds are used for certain qualifying expenses as
described in the CARES Act. The Company intends to use the entire Rekor PPP Loan
Note amount for qualifying expenses and to apply for forgiveness of the loan in
accordance with the terms of the CARES Act.
The foregoing description of the Rekor PPP Loan Note does not purport to be
complete and is qualified in its entirety by reference to the complete text of
the Rekor PPP Loan Note. A copy of the Rekor PPP Loan Note is filed as Exhibit
10.1 to this Current Report on Form 8-K and is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
The following exhibits are filed herewith:
Exhibit Number Description
10.1 Rekor Systems, Inc. PPP Loan Note dated as of May 20, 2020
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