Rekor Systems, Inc. (NASDAQ: REKR) announced it has terminated its two remaining long-term real estate leases, one in the United States and one in Israel, according to a company press release.

The terminations are expected to deliver more than $2 million in annualized savings. Rekor will use approximately $2.8 million in cash to retire $10 million in outstanding lease obligations. Related deposit, fixed assets, and right-of-use assets will be removed from the company's balance sheet.

"Terminating these leases is another important step in executing our plan to optimize the business and structurally reduce our cost base," said Joseph Nalepa, Chief Financial Officer at Rekor. "While the termination requires a one-time cash payment, it eliminates significant ongoing lease obligations and delivers approximately $2 million in annualized overhead savings, reinforcing a leaner operating model and supporting our path toward sustainable profitability."