[8-K] Rekor Systems, Inc. Reports Material Event

Rekor Systems, Inc. reported a board change and new executive employment agreements.

Rhea-AI Filing Summary

Rekor Systems, Inc. reported a board change and new executive employment agreements. Professor Sanjay Sarma resigned as a director effective March 25, 2026, and will continue supporting technology and innovation as Chairman of the Board of Managers of wholly owned subsidiary Rekor Labs, LLC.

The company entered into an amended and restated employment agreement with President and CEO Robert A. Berman, running through June 30, 2028, with automatic renewals, a base salary of $395,000 and eligibility for performance bonuses. Within 30 days of the effective date, he will receive a fully vested one-time grant of 1,000,000 shares of common stock.

CFO Joseph Nalepa entered into an employment agreement effective as of his November 17, 2025 appointment, with an initial term through June 30, 2028, a base salary of $260,000, an initial bonus opportunity of $75,000 tied to timely completion of 2025 reporting, and future discretionary bonus opportunities. Both executives receive 12 months of base-salary severance if terminated without Cause or for Good Reason, and enhanced lump-sum payments of three times (CEO) or two times (CFO) base salary if terminated within 120 days after a Change in Control.

Insights

Corporate governance and compensation analyst

Rekor locks in CEO/CFO through 2028 with structured pay and change-in-control protection.

Rekor Systems is formalizing leadership stability by extending contracts for its CEO and CFO through June 30, 2028 with automatic renewals. The CEO’s package includes a one-time grant of 1,000,000 fully vested shares, plus a $395,000 base salary and discretionary bonuses.

The CFO receives a $260,000 base salary, an initial $75,000 bonus opportunity tied to timely, clean 2025 financial reporting, and ongoing discretionary bonuses based on agreed performance measures. These terms link part of his compensation to financial reporting quality and board-approved metrics.

Both executives gain 12 months of salary as severance if terminated without Cause or for Good Reason, and higher lump-sum payouts of three times (CEO) and two times (CFO) base salary if terminated within 120 days after a Change in Control. This aligns management incentives during potential strategic transactions while increasing fixed obligations to the company.

8-K Event Classification

2 items: 5.02, 9.01

2 items

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers Governance

Key personnel changes including departures, elections, or appointments of directors and executive officers.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Understanding 8-K Material Events →

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Accepted by SEC EDGAR 03/27/2026 - 04:15 PM Learn about SEC filing dates

false 0001697851 0001697851 2026-03-24 2026-03-24

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 24, 2026

REKOR SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Delaware		001-38338		81-5266334
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

6721 Columbia Gateway Drive, Suite 400, Columbia, MD 21046

(Address of Principal Executive Offices)

Registrant’s Telephone Number, Including Area Code: (410) 762-0800

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.0001 par value per share		REKR		The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

(b) Resignation of Director.

On March 25, 2026, Professor Sanjay Sarma notified the Board of Directors (the “Board”) of Rekor Systems, Inc. (the “Company”) of his resignation as a director, effective March 25, 2026. Professor Sarma’s resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.

Following his resignation, Professor Sarma will continue to support the Company’s technology and innovation initiatives by serving as Chairman of the Board of Managers of Rekor Labs, LLC, a wholly owned subsidiary of the Company.

(e) Compensatory Arrangements of Certain Officers.

Amended and Restated Employment Agreement with Robert A. Berman

On March 24, 2026, the Company entered into an Amended and Restated Employment Agreement (the “Berman Agreement”) with Robert A. Berman, the Company’s President and Chief Executive Officer, which is effective as of March 20, 2026, and which amends, restates, replaces and supersedes that certain Employment Agreement, dated as of May 15, 2019, by and between the Company and Mr. Berman.

The Berman Agreement provides for an initial employment term through June 30, 2028, subject to automatic one-year renewal periods unless either party provides at least 90 days’ prior written notice of non-renewal. Under the Berman Agreement, Mr. Berman will receive an annualized base salary of $395,000 and will be eligible to be considered for periodic performance bonuses as determined by the Board in its sole discretion. In addition, within 30 days following the effective date of the Berman Agreement, the Company will grant Mr. Berman a one-time stock grant of 1,000,000 shares of the Company’s common stock, which will be fully vested upon grant. The Company will pay its share of any FICA taxes owed with respect to such grant, and the grant will be subject to withholding only with respect to the employee’s share of any mandatory FICA or other withholding, but not with respect to income taxes. Mr. Berman will be responsible for all income tax payments related to the grant.

Either party may terminate the employment relationship at any time, with or without Cause (as defined in the Berman Agreement), on 30 days’ advance notice, except that the Company may terminate Mr. Berman’s employment immediately for Cause. If Mr. Berman’s employment is terminated by the Company without Cause or by Mr. Berman for Good Reason (as defined in the Berman Agreement), then, subject to his execution and non-revocation of a general release of claims, Mr. Berman will be entitled to a separation payment equal to 12 months of his then-current base salary, payable in 12 equal monthly installments. Upon a Change in Control (as defined in the Berman Agreement) during the employment term, the Company may terminate Mr. Berman’s employment within 120 calendar days after the Change in Control, in which event Mr. Berman will be entitled, subject to his execution and non-revocation of a general release of claims, to a lump-sum payment equal to three times his then-current base salary, in lieu of the separation payment described above.

The Berman Agreement also contains customary provisions regarding expense reimbursement, employee benefits, vacation, indemnification and directors’ and officers’ liability insurance, and post-termination obligations, including pursuant to a previously executed proprietary rights agreement.

The foregoing description of the Berman Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Berman Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Employment Agreement with Joseph Nalepa

On March 24, 2026, the Company entered into an Employment Agreement (the “Nalepa Agreement”) with Joseph Nalepa, the Company’s Chief Financial Officer, which is effective as of November 17, 2025, the date of Mr. Nalepa’s appointment as Chief Financial Officer.

The Nalepa Agreement provides for an initial employment term through June 30, 2028, subject to automatic one-year renewal periods unless either party provides at least 30 days’ prior written notice of non-renewal. Under the Nalepa Agreement, Mr. Nalepa will receive an annualized base salary of $260,000. For the period from the effective date of the Nalepa Agreement through May 1, 2026, Mr. Nalepa will be eligible to receive an initial bonus of $75,000, subject to the Company’s timely filing of its Annual Report on Form 10-K for the 2025 calendar year, receipt of a satisfactory report from the Company’s independent auditors with respect to the Company’s 2025

financial statements, and Mr. Nalepa’s continued employment through the payment date. For the 12-month period commencing July 1, 2026, and for each subsequent 12-month period during the employment term, Mr. Nalepa will be eligible to receive a discretionary bonus, which may be more or less than $150,000, based upon key performance measures mutually agreed upon between Mr. Nalepa and the Compensation Committee of the Board in consultation with the Audit Committee of the Board.

Either party may terminate the employment relationship at any time, with or without Cause (as defined in the Nalepa Agreement), on advance notice as provided in the Nalepa Agreement, except that the Company may terminate Mr. Nalepa’s employment immediately for Cause. Mr. Nalepa is required to provide the Company at least 30 days’ prior written notice if he decides to terminate his employment, provided that any such notice must be given at least 60 days prior to any deadline for filing the Company’s quarterly or annual financial reports with the SEC. If Mr. Nalepa’s employment is terminated by the Company without Cause or by Mr. Nalepa for Good Reason (as defined in the Nalepa Agreement), then, subject to his execution and non-revocation of a general release of claims, Mr. Nalepa will be entitled to a separation payment equal to 12 months of his then-current base salary, payable in 12 equal monthly installments. Upon a Change in Control (as defined in the Nalepa Agreement) during the employment term, the Company may terminate Mr. Nalepa’s employment within 120 calendar days after the Change in Control, in which event Mr. Nalepa will be entitled, subject to his execution and non-revocation of a general release of claims, to a lump-sum payment equal to two times his then-current base salary, in lieu of the separation payment described above.

The Nalepa Agreement also contains customary provisions regarding expense reimbursement, employee benefits, vacation, indemnification and directors’ and officers’ liability insurance, and post-termination obligations, including pursuant to a previously executed proprietary rights agreement.

The foregoing description of the Nalepa Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Nalepa Agreement, a copy of which is filed as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.		Description
10.1		Amended and Restated Employment Agreement, entered into on March 24, 2026 and effective as of March 20, 2026, by and between Rekor Systems, Inc. and Robert A. Berman.
10.2		Employment Agreement, entered into on March 24, 2026ds and effective as of November 17, 2025, by and between Rekor Systems, Inc. and Joseph Nalepa.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						REKOR SYSTEMS, INC.
Date: March 27, 2026						/s/ Joseph Nalepa
						Name: Joseph Nalepa Title:  Chief Financial Officer

Filing Exhibits & Attachments

5 documents

Agreements & Contracts

• EX-10.1 EX-10.1 57.8 KB
• EX-10.2 EX-10.2 59.5 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA 2.8 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 17.6 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 11.0 KB