8 unchanged sentences
In July 2023, the Company entered into an agreement with one of its warrant holders in connection with the exercise of warrants, which the Company refers to as the July Warrant Exercise Transaction.
−Removed: Subsequent to the July Warrant Exercise Transaction, the Company received a letter from HCW claiming entitlement to certain “tail” fees and warrant consideration stemming from the agreement with the warrant holder.
+Added: Subsequent to the July Warrant Exercise Transaction, the Company received a letter from HCW claiming entitlement to certain “tail” fees and warrant consideration stemming from July Warrant Exercise Transaction.
The Company believed then, and believes now, that this claim is without merit.
−Removed: As a result of this claim and for other reasons articulated to HCW, the Company terminated its engagement letter with HCW, including for cause, which, the Company believes, eliminated both the “tail” provision and the ROFR provision with respect to the 2023 Registered Direct Offering.
+Added: As a result of this claim and for other reasons articulated to HCW, the Company terminated its engagement letter with HCW, including for cause, which, the Company believes, eliminated both the “tail” provision and the ROFR provision with respect to the engagement letter.
On or about October 23, 2023, HCW filed a complaint in New York State Supreme Court asserting a claim for breach of contract against the Company relating to purported fees owed as a result of the July Warrant Exercise Transaction.
2 unchanged sentences
On March 4, 2024, the court discontinued this lawsuit without prejudice.
−Removed: On February 29, 2024, HCW initiated the new action with the filing of complaint in New York State Supreme Court.
+Added: On February 29, 2024, HCW initiated the new action with the filing of a complaint in New York State Supreme Court.
In the new action, HCW advances the same breach of contract theory and seeks to recover the same damages as sought in the prior now-dismissed lawsuit.
3 unchanged sentences
After HCW and Armistice moved to dismiss Rekor’s counterclaims, Rekor filed amended counterclaims on October 1, 2024.
−Removed: In Q3 2025, Rekor resolved its claims with Armistice and came to a settlement agreement.
−Removed: The proceeds from the settlement are presented as part of other expense (income) in the condensed consolidated statement of operations in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
+Added: During the third quarter of 2025, Rekor resolved its claims with Armistice pursuant to a settlement agreement.
+Added: The proceeds from the settlement were presented as part of other expense (income) in the condensed consolidated statement of operations in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.
Rekor now seeks to recover damages from HCW and HCW moved to dismiss the amended counterclaims.
The Court granted HCW’s motion to dismiss Rekor’s counterclaims.
−Removed: Rekor has filed a notice of appeal of that ruling.
The Company believes HCW's claims are without merit and intends to vigorously defend itself in this lawsuit.
20 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.