As previously disclosed by Rekor Systems, Inc., a Delaware corporation (the “Company”) in a Current Report on Form 8-K as filed with the Securities and
Exchange Commission on December 14, 2018, on December 13, 2018 the Company received a letter from The Nasdaq Stock Market (“Nasdaq”) stating that
the bid price of the Company’s common stock for the previous 30 consecutive trading days had closed below the minimum $1.00 per share required for
continued listing under Listing Rule 5550(a)(2) (the “Bid Price Rule”). The letter stated that the Company had 180 days, or until June 11, 2019, to demonstrate
compliance by maintaining a minimum closing bid price of at least $1.00 for a minimum of 10 consecutive trading days.
On June 12, 2019, Nasdaq notified the Company that while the Company had not regained compliance with the Bid Price Rule, it was eligible for an additional
180-day compliance period, or until December 9, 2019, to regain compliance with the Bid Price Rule. Nasdaq’s determination was based on the Company
having met the continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on The Nasdaq
Capital Market, with the exception of the Bid Price Rule, and on the Company’s commitment to Nasdaq of its intention to cure the deficiency during the second
compliance period by effecting a reverse stock split, only if necessary, at least 10 trading days prior to December 9, 2019. If at any time during this additional
180-day compliance period the closing bid price of the Company’s common stock is at least $1 for a minimum of 10 consecutive business days, then Nasdaq will
provide the Company with written confirmation of compliance and the matter will be closed.
The Company does not presently anticipate a reverse split will be necessary to regain compliance with the Bid Price Rule. The Company is monitoring the bid
price of its common stock and will consider options available to it to achieve compliance with the continued listing standard
