☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR Commission file number 000-55497 Duos Technologies Group, Inc. (Exact name of registrant as specified in its charter) (State or other ...

Duos Technologies Group, Inc. (NASDAQ:DUOT) Q1 2023 Earnings Conference Call May 15, 2023 4:30 PM ET Company Participants Chuck Ferry - CEO & Director Andrew Murphy - CFO Conference Call Participants Michael Latimore - Northland Capital Markets Edward Woo - Ascendiant Capital Operator Good afternoon. Welcome to Duos Technologies First Quarter 2023 Earnings Conference Call. Joining us for today's call are Duos' CEO, Chuck Ferry, and CFO, Andrew Murphy. Following their remarks, we will open the line for your ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported an 84% revenue increase to $2.6 million and a reduced net loss of $2.1 million for Q1 2023 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | Cash | $4,340,947 | $1,121,092 | +287.2% | | Total Current Assets | $8,546,516 | $6,834,757 | +25.1% | | Total Assets | $14,868,332 | $13,089,119 | +13.6% | | Total Current Liabilities | $4,686,177 | $4,495,705 | +4.2% | | Total Liabilities | $9,153,061 | $9,038,648 | +1.3% | | Total Stockholders' Equity | $5,715,271 | $4,050,471 | +41.1% | - The significant increase in cash and stockholders' equity was primarily driven by the issuance of 4,000 shares of Series E convertible preferred stock, which provided **$4.0 million in proceeds** during the quarter[16](index=16&type=chunk) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations (Unaudited, For the Three Months Ended March 31) | Metric | 2023 | 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $2,644,288 | $1,439,316 | +83.7% | | Gross Margin | $537,172 | $222,066 | +141.9% | | Loss from Operations | ($2,146,798) | ($2,641,618) | -18.7% | | Net Loss | ($2,143,683) | ($2,644,616) | -19.0% | | Net Loss Per Share (Basic & Diluted) | ($0.30) | ($0.49) | -38.8% | - The substantial increase in revenue was primarily driven by the Technology Systems segment, which **grew 133% YoY** from $783,269 to $1,827,764[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Unaudited, For the Three Months Ended March 31) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($7,086) | ($827,733) | | Net cash used in investing activities | ($261,144) | ($102,078) | | Net cash provided by financing activities | $3,488,085 | $5,365,954 | | **Net increase in cash** | **$3,219,855** | **$4,436,143** | - Cash from financing activities in Q1 2023 was primarily from **$4.0 million in proceeds** from issuing Series E preferred stock, offset by issuance costs and debt repayments[22](index=22&type=chunk) [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail operations, liquidity, debt, and equity changes, highlighting its RIP technology and recent financing - The company develops and deploys vision-based analytical technology, including the **Railcar Inspection Portal (RIP)** which uses AI to automate inspections of trains in transit[24](index=24&type=chunk)[25](index=25&type=chunk) - Despite a net loss of $2.1 million in Q1 2023, management believes recent capital raises, including **$4.0M from Series E Preferred Stock**, provide sufficient liquidity to operate for at least the next twelve months[77](index=77&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk) - In March 2023, the company issued 4,000 shares of Series E Convertible Preferred Stock for **$4.0 million in proceeds**[112](index=112&type=chunk)[114](index=114&type=chunk)[118](index=118&type=chunk) Disaggregation of Revenue (For the Three Months Ended March 31, 2023) | Segments | Rail | Commercial | Government | Artificial Intelligence | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$2,376,449** | **$28,831** | **$11,353** | **$227,655** | **$2,644,288** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses an 84% revenue increase, improved margins, and a strengthened liquidity position from a $4.0 million capital raise [Overview and Outlook](index=27&type=section&id=Overview%20and%20Outlook) - The company's core business involves providing technology solutions like the **Rail Inspection Portal (RIP)** to the railroad and logistics industries[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - A key strategic initiative is the pursuit of a **subscription platform for its RIPs**, selling data access to a wider range of customers[165](index=165&type=chunk) - The company anticipates favorable prospects for 2023, driven by product upgrades and a **large, multi-year contract** with a national rail carrier[168](index=168&type=chunk)[169](index=169&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Revenue Comparison (For the Three Months Ended March 31) | Revenue Source | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Technology systems | $1,827,764 | $783,269 | +133% | | Services and consulting | $816,524 | $656,047 | +24% | | **Total revenues** | **$2,644,288** | **$1,439,316** | **+84%** | - The substantial increase in revenue is primarily attributed to the **production and manufacturing of new and upgraded RIPs**[173](index=173&type=chunk) - **Gross margin improved significantly to 20.3%** of revenue in Q1 2023, compared to 15.4% in Q1 2022, due to profit recognition on new RIPs[179](index=179&type=chunk) - **Total operating expenses decreased by 6% YoY** to $2.7 million, mainly due to an 8% reduction in General and Administrative costs[181](index=181&type=chunk) - The **net loss for Q1 2023 was $2,143,683**, a 19% improvement from the prior year, driven by higher revenues and lower operating expenses[184](index=184&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2023, the company had a **working capital surplus of $3,860,339**[185](index=185&type=chunk) Cash Flow Summary (For the Three Months Ended March 31) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($7,086) | ($827,733) | | Net cash provided by financing activities | $3,488,085 | $5,365,954 | - The company's liquidity was significantly bolstered in Q1 2023 by **net proceeds of approximately $3.7 million** from the issuance of Series E Convertible Preferred Stock[189](index=189&type=chunk) - Management has determined that the company has sufficient cash and access to capital to operate for at least the next 12 months, removing **substantial doubt about its ability to continue as a going concern**[196](index=196&type=chunk)[197](index=197&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable to the company for this reporting period - The company has indicated that quantitative and qualitative disclosures about market risk are **not applicable**[217](index=217&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to a material weakness and is implementing a remediation plan - Management concluded that the Company's disclosure controls and procedures were **not effective** as of March 31, 2023[219](index=219&type=chunk) - The ineffectiveness is due to a **material weakness in internal control** over financial reporting previously identified in the Annual Report on Form 10-K[219](index=219&type=chunk) - Planned remediation activities include reassessing IT infrastructure, upgrading software, and **augmenting staff to enhance review and segregation of duties**[221](index=221&type=chunk)[223](index=223&type=chunk) [PART II – OTHER INFORMATION](index=37&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material litigation - The company reports that it is **not currently involved in any material legal proceedings**[225](index=225&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the previous Annual Report were reported - There are **no material changes** from the risk factors previously disclosed in the Annual Report on Form 10-K filed on March 31, 2023[226](index=226&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported during the period - **None reported** for the period[227](index=227&type=chunk) [Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults on its senior securities - There have been **no defaults** on any indebtedness of the Company[227](index=227&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including agreements and certifications related to Series E Preferred Stock - Exhibits filed include documents related to the **Series E Convertible Preferred Stock**, Securities Purchase Agreement, Registration Rights Agreement, and Sarbanes-Oxley certifications[229](index=229&type=chunk)

Financial Data and Key Metrics Changes - Revenue increased 60% in Q4 to $5.9 million compared to $3.7 million in Q4 2021, and for the full year, revenue rose 82% to just over $15 million from $8.2 million in 2021 [41][21][35] - Gross margin for Q4 increased 24% to $2.1 million compared to $1.73 million for Q4 2021, and for the year, gross margins increased 133% to $4.7 million compared to $2 million for 2021 [43] - Net operating loss for Q4 totaled approximately $950,000 compared to a loss of $240,000 for Q4 2021, while the net operating loss for the year was $6.87 million compared to $7.4 million for 2021 [45][46] Business Line Data and Key Metrics Changes - The company successfully deployed two new Railcar Inspection Portals (RIPs) in 2022, with plans for at least two additional RIPs in 2023, aiming for a total of 15 RIPs installed by the end of Q3 2023 [4][8] - The AI catalog has 35 models available for deployment, with expectations to grow to 50 use cases by the end of 2023 [4][55] - The company achieved a 100% renewal rate of recurring revenue contracts in 2022, leading to a 30% increase in support and AI revenues compared to 2021 [35][26] Market Data and Key Metrics Changes - The current backlog sits north of $10 million, with more than $8 million expected to be recognized in 2023, indicating strong visibility for future revenue [8][20] - The company has engaged with various stakeholders, including congressional leaders, to discuss the deployment of its technology in response to recent rail safety concerns [3][22] Company Strategy and Development Direction - The company is focused on increasing recurring revenue through a subscription model, support services, and maintenance, while also diversifying revenue sources [11][25] - A strategic communications plan has been initiated to respond to increased interest in the company's technology following recent rail incidents [22][50] - The company aims to achieve breakeven and profitability within the next 12 to 14 months, with a focus on enhancing its technology capabilities, particularly in AI [39][36] Management's Comments on Operating Environment and Future Outlook - Management noted that recent derailments have heightened focus on safety and compliance, leading to increased demand for the company's technology [50][3] - The company expects revenue in Q1 2023 to decline compared to Q4 2022 but anticipates growth throughout the remainder of the year [49] - Management expressed confidence in the company's ability to scale operations to meet potential increased demand due to regulatory changes [108][60] Other Important Information - The company has raised $4 million from its largest shareholder to support the buildout of its subscription RIP business [60][47] - The company is actively exploring new business lines, including applications in the trucking and intermodal industries [25][30] Q&A Session Summary Question: Can you mention what type of company your first subscription customer is? - The customer is one of the four major centers, but the name cannot be disclosed at this time [62] Question: What is the plan for building your own railcar inspection portals? - The plan is to build three to five of its own portals in key locations, focusing on high traffic areas [63] Question: How does the company view the competition in the rail safety technology space? - The main competitors include Wabtec and Class 1 railroads, but the company believes its technology is more advanced due to significant investments [76][98] Question: What are the expected contract lengths for the subscription model? - Most customers are looking at a minimum of three years, with some Class 1 customers interested in longer terms of 10 to 15 years [90] Question: Has the company seen increased safety regulations in other countries? - Yes, Canada has rigorous safety regulations similar to the U.S., and the company works closely with Canadian railroads [100]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ——————— FORM 10-K ——————— ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: _____________ to _____________ Commission file number: 000-55497 ——————— DUOS TECHNOLOGIES GROUP, INC. (Exact name of registrant as specified in its charter) ——————— Florid ...

Duos Technologies Group, Inc. (NASDAQ:DUOT) Q3 2022 Results Conference Call November 14, 2022 4:30 PM ET Company Participants Chuck Ferry - CEO Adrian Goldfarb - CFO Andrew Murphy - VP, FP&A Conference Call Participants Michael Latimore - Northland Capital Markets Operator Good afternoon. Welcome to Duos Technologies Third Quarter 2022 Earnings Conference Call. Joining us for today's call are Duos' CEO, Chuck Ferry, Adrian Goldfarb, CFO; and Andrew Murphy, VP, FP&A. Following their remarks, we will open up ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number 000-55497 Duos Technologies Group, Inc. (Exact name of registrant as specified in its charter) Florida 65 ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2022 increased 458% to $3.62 million compared to $649,000 in Q2 2021, driven by production and installation of new railcar inspection portals [11][12] - Gross margin for Q2 2022 increased 575% to $1.28 million compared to a negative $270,000 in Q2 2021, attributed to operational improvements [19][20] - Net operating loss for Q2 2022 totaled $1.39 million, an improvement from a net operating loss of $2.95 million in Q2 2021 [23] Business Line Data and Key Metrics Changes - Technology Systems revenue for Q2 2022 was approximately $2.78 million, while recurring services and consulting revenue was approximately $837,000, marking the highest quarterly recurring revenue in the company's history [11] - Total revenue for the first half of 2022 increased 80% to $5.06 million from $2.8 million in the same period last year, driven by new installations and increased services [13] Market Data and Key Metrics Changes - The company has a pipeline of potential new business worth over $120 million, indicating strong market demand [55] - The total addressable market for the North American Class 1 railroad network could accommodate as much as 150 railcar inspection portals [76] Company Strategy and Development Direction - The company’s 2022 operating strategies focus on improving technical and operational delivery, adding recurring revenue, and expanding into the trucking and aviation industries [33][34] - The company aims to enhance its AI capabilities and has deployed 20 AI use cases with a reliability rate of 95% or higher [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting financial goals for the year, despite ongoing supply chain issues and inflation impacting costs [5][14] - The company expects total revenue for 2022 to range between $16.5 million and $18 million, representing a 99% to 117% increase from 2021 [30] Other Important Information - The company ended the quarter with approximately $6.27 million in cash and cash equivalents, indicating sufficient liquidity to support operations through 2022 and into 2023 [26] - The company is considering increasing working capital due to anticipated business growth and ongoing supply chain disruptions [26][27] Q&A Session Summary Question: Clarification on expected revenue growth in Q3 and Q4 - Management confirmed that they expect third and fourth quarter revenues to be up sequentially in absolute dollars [62][63] Question: Pipeline growth drivers - Management indicated that pipeline growth was driven by new opportunities with Class 1 railroads and car owners, with a focus on subscription models for data [66][67] Question: Recurring revenue from AI use cases - Management confirmed that as more AI use cases are added, recurring revenue will increase due to added value [79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number 000-55497 Duos Technologies Group, Inc. (Exact name of registrant as specified in its charter) Florida 65-0493 ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2022 decreased 33% to $1.44 million compared to $2.15 million in Q1 2021, attributed to delays in contract notices and supply chain issues [9][19] - Gross margin for Q1 2022 decreased 56% to $222,000 compared to $503,000 in Q1 2021, driven by lower revenues and elevated operational costs [16] - Net operating loss for Q1 2022 totaled $2.64 million, compared to a net operating loss of $1.82 million in Q1 2021, primarily due to lower revenue and higher operating costs [18] Business Line Data and Key Metrics Changes - Revenue from technology systems for Q1 2022 was approximately $783,000, while recurring services and consulting revenue was approximately $656,000 [9] - The average revenue per installation continues to increase due to customer demand for enhanced functionality and capabilities [8] Market Data and Key Metrics Changes - The company has the largest set of contract commitments in its history, currently standing at approximately $17 million, with expectations to book much of this revenue in 2022 [11] - A pipeline of potential new business worth over $100 million has been established, with significant inquiries from both current and new customers [41][55] Company Strategy and Development Direction - The 2022 operating strategy focuses on improving technical and operational delivery, increasing recurring revenue, expanding into logistics and intermodal industries, and recruiting top talent [27][28] - The company aims to position itself as a leader in deploying cutting-edge technologies for precision railroading and logistics [50] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing supply chain disruptions and inflationary pressures impacting costs and timelines for procurement and installation [22][35] - The company expects to meet its revenue goal of $16.5 million to $18 million for 2022, with anticipated improvements in the second half of the year [50] Other Important Information - The company ended the quarter with approximately $5.33 million in cash, significantly up from $894,000 at the end of 2021, providing sufficient resources to support operations [20] - Management is focused on eliminating non-essential costs while investing in long-term growth opportunities [24] Q&A Session Summary Question: Are the sizable cash payments expected to be recognized as revenue? - Management indicated that these payments are milestone payments from contracts won previously, which will help manage cash flow, but revenue recognition will lag behind cash received [52][54] Question: What is the current pipeline number compared to the last update? - The pipeline has increased to over $100 million, with a mix of opportunities from current customers, new Class I customers, and inquiries related to logistics systems [55][56] Question: Is the services line expected to be a new baseline for growth? - Management confirmed that the services line has shown consistent growth and is expected to continue improving due to successful deployments and increased recurring revenue from AI applications [57]