Financial Data and Key Metrics Changes - Total revenue for Q4 2024 decreased 4% to $1.46 million compared to $1.53 million in Q4 2023, while total revenue for the year decreased 3% to $7.28 million compared to $7.47 million in 2023 [15][22] - Gross margin for Q4 2024 decreased 209% to a negative $330,000 compared to a positive $303,000 for Q4 2023, and for the year, gross margin decreased 64% to $469,000 from $1.31 million in the same period of 2023 [19][22] - Net loss for the years ended December 31, 2024 and 2023 was $10.76 million and $11.24 million, respectively, indicating a decrease in overall net loss primarily attributable to a decrease in operating costs [22][23] Business Line Data and Key Metrics Changes - Services and Consulting revenues increased by 31% compared to 2023, driven by new AI and subscription customers, higher service contract pricing, and over $900,000 in new revenue from power consulting work [15] - Cost of revenues for the quarter increased 47% to $1.79 million compared to $1.22 million for Q4 2023, driven by amortization expenses and retention of outside consultants [16][17] - Cost of revenues on technology systems decreased during the period compared to the equivalent period in 2023, in line with the decline in project revenues [17] Market Data and Key Metrics Changes - The company has a backlog representing more than $50 million in revenue, with approximately 45% expected to be recognized in 2025 [26] - A pipeline of business between Duos and APR Energy-related business exceeds $500 million, which may translate into additional contracts and backlog for Duos [27] Company Strategy and Development Direction - The company is diversifying its business into rail technology, edge data centers, and power, aiming to accelerate the timeline to profitability [4][6] - The establishment of two new subsidiaries, Duos Edge AI and Duos Energy, is part of the strategy to capitalize on existing strengths and create a path for faster growth and profitability [11] - The company plans to raise between $10 million and $15 million through its S-3 shelf registration to support the growing edge data center business [29] Management's Comments on Operating Environment and Future Outlook - Management noted that the balance sheet, business backlog, and estimated pipeline are the strongest in the company's history as of December 31, 2024 [12] - The company expects to break even financially in 2025 and anticipates positive adjusted EBITDA by the end of the year [29] - Management expressed optimism about the future, highlighting significant changes in the business over the last 6 to 9 months and the potential for meaningful growth and profitability [55][56] Other Important Information - The company has retired $1 million of debt and expects to retire a further $1.2 million by the end of the year, maintaining reasonable leverage ratios [26] - The company is targeting rural broadband enhancement with its edge data centers, aligning with government funding opportunities [47] Q&A Session Summary Question: Changes in rail safety legislation - Management indicated that while there was significant effort under the Biden administration to push rail safety legislation, the likelihood of comprehensive regulations being passed is currently low [60][61] Question: Impact of tariff uncertainties on customers - Management stated that the threat of tariffs has not yet impacted the business, although there could be potential risks related to raw material costs [62][64] Question: Operational status of data centers - Currently, one data center is fully operational, with two additional centers in Tampa nearing completion, and plans to install 2 to 3 new centers each quarter [70][71] Question: Potential for winning hyperscaler deals - Management confirmed active discussions with several large hyperscalers, indicating interest in both power and edge data center solutions [75]

Duos Technologies Group, Inc. Shares have lost about 11.2% since the beginning of the year versus the S&P 500's decline of -5.1%. Duos Technologies Group, Inc. (DUOT) came out with a quarterly loss of $0.41 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.44 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -36.67%. A quarter ago, it was expected that this company would post a loss o ...

Financial Performance - For the year ended December 31, 2024, total revenues decreased by 3% to $7,280,885 compared to $7,471,198 in 2023, primarily due to deployment delays of high-speed Railcar Inspection Portals [184]. - Technology systems revenue fell by 38% to $2,252,357, while services and consulting revenue increased by 31% to $5,028,528, driven by new AI and subscription customers [185]. - The cost of revenues increased by 11% to $6,811,670, with technology systems costs decreasing by 35% to $2,818,078, while services and consulting costs surged by 121% to $3,993,592 [189]. - The net loss for 2024 was $10,764,457, a slight improvement from the net loss of $11,241,718 in 2023 [184]. - Revenues for the year ended December 31, 2024, were $7,280,885, a decrease of 3% compared to $7,471,198 in 2023 [193]. - Gross margin decreased to approximately 6% in 2024 from 18% in 2023, primarily due to delays in manufacturing and consulting services provided at cost [193]. - Total operating expenses decreased by 10% in 2024 to $11,452,741, driven by a 43% increase in sales and marketing expenses and a 16% decline in research and development costs [194]. - The net loss for the year ended December 31, 2024, was $10,764,457, a reduction from the net loss of $11,241,718 in 2023 [198]. Cash Flow and Financing - Cash used in operating activities decreased to $3,488,687 in 2024 from $8,746,564 in 2023, reflecting improved cash flow management [200]. - The company had a cash balance of $6,266,296 and accounts receivable of $403,441 as of December 31, 2024 [199]. - Net cash provided by financing activities was $9,154,439 in 2024, primarily from the issuance of Series D and E Convertible Preferred Stock [202]. - The company anticipates continued positive cash flow from its Asset Management Agreement (AMA) with New APR Energy, which is expected to support operations [210]. - The company raised gross proceeds of approximately $3,544,689 through its At-The-Market (ATM) offering program in 2024 [208]. - The working capital deficit as of December 31, 2024, was $8,002,361, with an accumulated deficit of $74,368,009 [207]. Contracts and Agreements - The company secured a long-term agreement with a major Class 1 railroad, enabling new subscription-based services for over 3,000 railcar owners and lessors, expected to generate significant new revenue streams [178]. - Duos Energy Corporation, a new subsidiary, aims to meet the growing demand for power generation, with a two-year agreement valued at approximately $42 million [182]. - The company plans to shift to a modular and subscription-based approach for its Railcar Inspection Portal, enhancing recurring revenue streams through "RIP-as-a-Service" [182]. - The company anticipates revenue growth from new maintenance contracts and subscription offerings starting in 2025, targeting a broader market including Class 1 railroads and railcar owners [186]. - The Company will begin recognizing revenue from the AMA agreement starting January 2025 [216]. Assets and Investments - The Company recorded an initial carrying value of $7.2 million for common units received from Sawgrass Parent, representing non-cash consideration for future services under the Asset Management Agreement (AMA) [219]. - The Company recognized an intangible asset valued at $11,161,428 related to a 5-year customer contract for maintenance services, with immediate amortization of $199,008 for pre-contract costs [221][223]. - No impairment losses were recognized for the equity method investment during the year ended December 31, 2024, and there is no indication of impairment as of the same date [220][226]. - The Company will recognize deferred revenue of $11,161,428 over the 5-year term of the customer contract, with a portion recognized immediately for completed pilot program services [223]. - The Company assesses its equity method investment for impairment whenever events indicate that the carrying amount may not be recoverable [220]. Stock-Based Compensation - The Company accounts for stock-based compensation based on estimated fair values, with a graded vesting feature for employees and directors [227]. - The fair value of stock options is estimated using the Black-Scholes option-pricing formula, influenced by stock price and various subjective variables [228]. - The Company holds a 5% interest in Sawgrass Parent, which is deemed a Variable Interest Entity (VIE), but does not consolidate it as it lacks control over significant economic activities [218]. Revenue Sources - The Company generates revenue from four sources, including Technology Systems, AI Technologies, Technical Support, and Consulting Services [216].

Issues guidance following a transformative year with the Company adding two new business lines, significantly strengthening the Balance Sheet and demonstrating enhanced operational capabilities for additional services and consulting related to the fast power business. JACKSONVILLE, Fla., March 31, 2025 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. ("Duos" or the "Company") (Nasdaq: DUOT) a provider of machine vision and artificial intelligence that analyzes fast moving vehicles, Edge Data Centers and po ...

JACKSONVILLE, Fla., March 24, 2025 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT) will hold a conference call on Monday, March 31, 2025 at 4:30 p.m. Eastern time to discuss its financial results for the fourth quarter and full year ended December 31, 2024. Financial results will be issued via press release prior to the call. Duos management will host the conference call, followed by a question-and-answer period. Date:Monday, March 31, 2025 Time:4:30 p.m. Eastern ...

AMARILLO, Texas, March 05, 2025 (GLOBE NEWSWIRE) -- Region 16 Education Service Center (ESC), in collaboration with Duos Edge AI, Inc. ("Duos Edge AI"), a subsidiary of Duos Technologies Group, Inc. (NASDAQ:DUOT), proudly announces the grand opening of an advanced Edge Data Center ("EDC") on March 18, 2025. In partnership with FiberLight, this milestone marks a transformative leap in connectivity, AI-driven education, and economic development for the Texas Panhandle. The Duos Edge AI EDC will expand digital ...

Partners with Duos Technologies to deploy, install, and operate 100MW+ Behind-the-Meter Power Data Center SolutionJACKSONVILLE, Fla., Feb. 25, 2025 (GLOBE NEWSWIRE) -- New APR Energy LLC (“New APR Energy”), a global leader in fast-track energy solutions, is deploying four mobile gas turbines providing 100MW+ of dedicated behind-the-meter power to a major U.S.-based AI hyperscaler. New APR Energy is expected to complete the installation in the next 10 days with the support of Duos Technologies Group, Inc. (“ ...

Duos Technologies to Present at the Microcap Conference 2025 ...

Core Insights - Duos Technologies Group, Inc. has been granted a new patent for its obliquevue® system, enhancing railcar inspection through advanced imaging and AI analytics [1][3] - The obliquevue® technology is integrated with Duos' Railcar Inspection Portal (RIP®), which is recognized as an industry standard for real-time railcar analysis [2][3] - In 2024, Duos' imaging systems scanned nearly 10 million railcar images, indicating significant adoption of its innovative solutions [2] Company Developments - The new patent solidifies Duos' position as a leader in intellectual property within the rail industry, with a total of 11 granted patents and 6 pending applications [4] - The obliquevue® system enhances detection of anomalies that traditional systems may miss, ensuring compliance with safety standards set by the Association of American Railroads (AAR) and the Federal Railroad Administration (FRA) [3][4] - Duos is expanding its capabilities to include edge data processing and subscription-based services for customized rail data, further innovating within the rail sector [4]

Deal estimated at $42 Million revenue over two years and a 5% equity stake in the new ventureJACKSONVILLE, Fla., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT), is excited to announce the successful closing of an Asset Management Agreement (“AMA”) through its operating subsidiary, Duos Energy Corporation. The AMA – announced on November 20, 2024 – encompasses the deployment and operation of a fleet of 30 mobile gas-powered turbines and associated bal ...