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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