REKRHIGH SIGNALFINANCIAL10-K

REKR experienced a substantial revenue decline while meaningfully reducing operating losses, alongside notable additions of cybersecurity governance disclosures.

The dramatic revenue contraction paired with lower operating losses suggests potential business restructuring or asset divestiture activity that requires careful investor scrutiny. The simultaneous growth in both current assets and liabilities indicates significant balance sheet activity, while the addition of detailed cybersecurity governance language may reflect new SEC disclosure requirements or enhanced risk management focus.

Comparing 2026-03-31 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

REKR's financial profile shifted markedly with revenue declining substantially while operating losses were meaningfully reduced, suggesting either significant restructuring activity or major business changes. The balance sheet expanded notably with both current assets and liabilities growing substantially, though stockholders' equity increased modestly. Despite the revenue challenges, improved cash flow from operations and reduced net losses indicate potential operational efficiency gains or one-time charges in the prior period.

FINANCIAL STATEMENT CHANGES
Current Liabilities
Balance Sheet
+59.6%
$18.2M→$29.1M

Current liabilities surged 59.6% — significant near-term obligations; verify ability to meet short-term debt.

Current Assets
Balance Sheet
+54.2%
$19.9M→$30.7M

Current assets grew 54.2% — improving short-term liquidity or inventory/receivables build.

Revenue
P&L
-52.2%
$19.3M→$9.2M

Revenue declined 52.2% — significant demand weakness or market share loss warrants investigation.

Net Income
P&L
+48.8%
-$61.4M→-$31.5M

Net income grew 48.8% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+46.8%
-$54.3M→-$28.9M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

SG&A Expense
P&L
+45.1%
$13.0M→$18.8M

SG&A up 45.1% — significant increase in sales or administrative costs, monitor impact on operating leverage.

Gross Profit
P&L
-44.4%
$10.3M→$5.7M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Operating Cash Flow
Cash Flow
+37.3%
-$32.5M→-$20.4M

Operating cash flow surged 37.3% — exceptional cash generation, highest quality earnings signal.

Inventory
Balance Sheet
-28.5%
$4.3M→$3.1M

Inventory reduced 28.5% — lean inventory management or demand outpacing supply.

Stockholders Equity
Balance Sheet
+25.6%
$34.1M→$42.9M

Equity base grew 25.6% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-03-31
ADDED
false --12-31 FY 2025 true Our information security procedures are overseen by our Vice President of Risk Management, supported by our Chief Technology Officer and our IT Manager, who are responsible to provide regular reports to our President and Chief Executive Officer and Chief Financial Officer as well as the Governance Committee of our Board.
These procedures are responsible for identifying, assessing, and managing cybersecurity threats and risks and work to monitor and evaluate our threat environment and risk profile using various methods.
These methods include evaluating our and our industry s risk profile, coordinating with law enforcement concerning select threats, and engaging with third parties to conduct external audits and threat assessments for certain systems.
Our information security procedures are overseen by our Vice President of Risk Management, supported by our Chief Technology Officer and our IT Manager, who are responsible to provide regular reports to our President and Chief Executive Officer and Chief Financial Officer as well as the Governance Committee of our Board.
These procedures are responsible for identifying, assessing, and managing cybersecurity threats and risks and work to monitor and evaluate our threat environment and risk profile using various methods.
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REMOVED
On July 25, 2023, in connection with the 2023 Letter Agreement, the Company issued warrants to purchase 2,850,000 shares of its common stock, exercisable over a period of five and half years, at an exercise price of $3.25 per share.
These warrants were exercisable commencing July 25, 2023 and expire on January 25, 2029.
On March 23, 2023, in connection with the 2023 Register Direct Offering the Company issued (i) pre-funded warrants exercisable for up to an aggregate of 772,853 shares of common stock, (ii) warrants to purchase up to 6,872,853 shares of common stock, and (iii) warrants to the placement agent to purchase up to 481,100 shares of common stock.
The exercise price per share of the warrants was $1.455 and each pre-funded warrant is exercisable for one share of common stock at an exercise price of $0.001 per share and will expire when exercised in full.
Each warrant for the placement agent is exercisable for one share of common stock at an exercise price of $1.8188 per share.
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