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, 2021 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 ...

Duos Technologies Group, Inc. (NASDAQ:DUOT) Q2 2021 Earnings Conference Call August 12, 2021 4:30 PM ET Company Participants Charles Ferry - Chief Executive Officer Adrian Goldfarb - Chief Financial Officer Conference Call Participants Priyanka Mahajan - ThinkEquity Operator Good afternoon. Welcome to Duos Technologies' Second Quarter 2021 Earnings Conference Call. Joining us for today's call are Duos' CEO, Chuck Ferry and CFO, Adrian Goldfarb. Following their remarks, we will open the call for your questio ...

Financial Performance - Total revenues for the three months ended June 30, 2021, were $648,668, a decrease of 67% compared to $1,982,142 for the same period in 2020[158] - Revenues for the six months ended June 30, 2021, were $2,803,422, a 6% decrease compared to $2,973,087 for the same period in 2020[172] - The net loss for the quarter was $2,952,880, compared to a net loss of $1,465,889 in the same quarter of the previous year[158] - The net loss for the six months ended June 30, 2021, was $3,358,903, a decrease of nearly 7% compared to $3,612,938 for the same period in 2020[183] - The loss from operations for the six months ended June 30, 2021, was $4,770,768, a 36% increase from a loss of $3,514,971 in the same period of 2020[179] - Net loss for the three months ended June 30, 2021, was $2,952,880, a 101% increase from $1,465,889 in the same period of 2020[170] Revenue Breakdown - Revenue from technology systems dropped by 94% to $100,401 from $1,597,633 year-over-year, while services and consulting revenue increased by 43% to $548,267 from $384,509[158] - Technology systems revenues decreased by 25% to $1,590,699 for the six months ended June 30, 2021, compared to $2,111,307 in the same period of 2020[172] - Services and consulting revenues increased by 41% to $1,212,723 for the six months ended June 30, 2021, compared to $861,780 in the same period of 2020[172] Cost and Expenses - The cost of revenues increased by 22% to $2,185,920 from $1,794,679, driven by higher costs in services and consulting, which rose by 77%[162] - Cost of revenues increased by 43% to $4,916,382 for the six months ended June 30, 2021, compared to $3,441,112 in the same period of 2020[175] - Operating expenses decreased by 13% to $2,657,808 for the six months ended June 30, 2021, compared to $3,046,946 in the same period of 2020[178] Cash Flow and Financing - Net cash used in operating activities for the six months ended June 30, 2021, was $3,218,903, compared to $3,152,753 in 2020, indicating increased expenditures related to current and future projects[185] - Net cash provided by financing activities for the six months ended June 30, 2021, was $4,264,675, down from $8,650,492 in the same period of 2020, primarily due to a capital raise from the issuance of Series C Convertible Preferred Stock[187] - The company raised $4,500,000 from the issuance of Series C Convertible Preferred Stock, alleviating previous concerns about going concern status[194] - Interest expense for the six months ended June 30, 2021, was $11,761, a significant decrease from $127,175 in the same period of 2020[180] Operational Initiatives - The company anticipates a surge in orders in the second half of the year, despite delays in receiving notices to proceed for new contracts[158] - The company is expanding its focus in the rail industry to include passenger transportation and is in the final stages of bidding for a large, multi-year contract[154] - Engineering and software upgrades to the Railcar Inspection Portal (RIP) are expected to drive revenue growth throughout 2021[153] - The company is implementing a "rapid development" initiative to respond more quickly to market-driven demand, which is expected to result in significant revenue growth[159] - The company continues to invest in streamlining project build and delivery processes, which is anticipated to improve operational efficiency[159] - Management is focused on improving organizational efficiency and re-establishing a backlog of projects to support growth and profitability[195] Financial Position - As of June 30, 2021, the company had working capital of $2,715,833 and an accumulated deficit of $42,847,053[193] - The company had cash on hand of approximately $3,070,000 as of August 11, 2021, with monthly lease and mandatory payments of about $135,000[188] - The company has sufficient capital to fund operations for at least the next 12 months, despite uncertainties related to the pandemic[189] - The company has no off-balance sheet contractual arrangements[196] Gross Margin - Gross margin for the six months ended June 30, 2021, was $(2,112,960), a deterioration from $(468,025) in the same period of 2020, reflecting minimal technology systems revenues[177]

Duos Technologies Group, Inc. (NASDAQ:DUOT) Q1 2021 Earnings Conference Call May 13, 2021 4:30 PM ET Company Participants Chuck Ferry - CEO Adrian Goldfarb - CFO Conference Call Participants Richard Jackson - True North Financial Operator Good afternoon. Welcome to Duos Technologies' First Quarter 2021 Earnings Conference Call. Joining us for today's call are Duos' CEO, Chuck Ferry and CFO, Adrian Goldfarb. Following their remarks, we will open the call for your questions. Then before we conclude today's ca ...

Revenue Growth - Total revenues for the three months ended March 31, 2021, were $2,154,754, a 117% increase compared to $990,945 for the same period in 2020[158]. - Revenue from technology systems increased by 190% to $1,490,298, up from $513,674 in the prior year[159]. - The company received a large contract worth over $2 million for AI-related development, expected to contribute to revenue growth in subsequent quarters[159]. - The company anticipates engineering and software upgrades to the RIP and ALIS systems to meet Federal Railroad Association (FRA) standards, expected to drive revenue growth throughout 2021[153]. - The company expects continued growth in recurring revenue from existing customers, with new long-term contracts anticipated to come online in the coming months[159]. Cost and Margin Analysis - Cost of revenues for the three months ended March 31, 2021, was $2,730,462, a 66% increase from $1,646,433 in the same period of 2020[161]. - The gross margin for the three months ended March 31, 2021, was a loss of $575,708, compared to a loss of $655,488 in the same period of 2020[158]. - Gross margin for the first quarter of 2021 was negative $575,708, an improvement from negative $655,488 in the same quarter of 2020, attributed to higher recorded revenues[164]. Operating Expenses and Losses - Total operating expenses decreased by 13% to $1,246,592 in Q1 2021 from $1,432,427 in Q1 2020, driven by a significant reduction in administration costs[166]. - The loss from operations improved to $1,822,300 in Q1 2021 from $2,087,915 in Q1 2020, due to higher revenues despite increased costs related to new systems[167]. - Net loss for Q1 2021 was $406,023, an 81% decrease from $2,147,049 in Q1 2020, primarily due to the forgiveness of the PPP loan[169]. Cash Flow and Financing - Cash on hand as of May 12, 2021, was approximately $6,931,000, with working capital of $5,587,540[176]. - Net cash used in operating activities decreased to $1,296,424 in Q1 2021 from $1,657,013 in Q1 2020, reflecting lower expenditures related to project execution[173]. - Net cash provided by financing activities in Q1 2021 was $4,457,342, primarily from the issuance of Series C Convertible Preferred Stock[175]. Strategic Initiatives - The company is expanding its Railcar Inspection Portal (RIP) and Automated Logistics Information System (ALIS) solutions into current and new customers, focusing on the Rail, Logistics, and U.S. Government sectors[150]. - The company is in the final stages of bidding for a large, multi-year contract with a national rail carrier, which could lead to delivering at least two RIP solutions by early 2022[154]. - The company has made significant changes to its senior management team, including appointing a new CEO and promoting key personnel to enhance operational and technical execution[151]. - The company expects to achieve profitability in the latter half of 2021 through improved gross margins and lower operating costs[167]. - The company has alleviated substantial doubt about its ability to continue as a going concern, supported by recent capital raises and operational adjustments[183].

Revenue Performance - For the year ended December 31, 2020, total revenues decreased by 41% to $8,039,448 compared to $13,641,315 in 2019[142] - The technology systems revenue dropped by 59% from $11,963,438 in 2019 to $4,956,130 in 2020[142] - Technical support revenue increased by 31% to $1,801,043 in 2020, while consulting services revenue decreased by 9% to $273,604[142] - The AI technologies segment recorded its first revenue in Q2 2020, with a significant contract exceeding $2 million expected to contribute to future revenues[146] Profitability and Loss - Gross profit for 2020 was $2,786,393, representing a 57% decline from $6,481,438 in 2019, with gross margin decreasing from 48% to 35%[151] - The company experienced a net loss of $6,747,435 in 2020, compared to a net loss of $2,470,882 in 2019[142] - The net loss for 2020 was $6,747,435, compared to a net loss of $2,470,882 in 2019, representing an increase of $4,276,553[157] - Management expects improvements in gross margins driven by higher sales from both existing and new customers in the coming year[151] - The company expects to achieve profitability through a strategic plan implemented in 2021, focusing on maintaining key operations and technical staff[154] Expenses and Costs - Cost of revenues decreased by 27% to $5,253,055 in 2020, with technology systems costs down 44% to $3,665,493[147] - Total operating expenses increased by 6% to $9,420,821 in 2020 from $8,887,960 in 2019, primarily due to a one-time severance charge of approximately $885,000[152] - Research and development expenses decreased by 31% to $1,022,188 in 2020 from $1,479,334 in 2019, reflecting a shift in focus after completing the TrueVue360 platform[152] - Interest expense rose to $150,137 in 2020 from $69,322 in 2019, primarily due to financing actions taken during operational slowdowns[155] Cash Flow and Financing - Cash provided in financing activities was $8,431,621 in 2020, significantly up from $3,086,083 in 2019, mainly due to proceeds from a registered direct offering and a CARES Act PPP loan[164] - Net cash used in operating activities was $4,231,439 in 2020, slightly higher than $4,019,560 in 2019, attributed to increased operating costs[162] - The company maintained a cash balance of $3,969,100 as of December 31, 2020, with an increase to approximately $7,435,000 by March 26, 2021[158][165] Financial Position - The accumulated deficit increased to $39,488,150 in 2020 from $32,740,715 in 2019, while working capital improved to $2,167,058 from a negative $607,372[169] - The company has no off-balance sheet contractual arrangements, ensuring transparency in its financial obligations[172] Revenue Recognition and Accounting Policies - The company recognizes revenue from multiple element arrangements separately based on the standalone value of each element and specific evidence of selling prices[184] - Accounts receivable are reported at estimated net realizable value, considering historical trends and specific customer issues for allowances[185] - The company evaluates long-lived assets for impairment when the net book value exceeds estimated future undiscounted cash flows[187] - No derivative instruments or hedging activities are held by the company, indicating a straightforward risk management approach[188] Strategic Focus - The company anticipates continued growth in recurring technical support revenues, which are expected to positively impact overall revenues and gross margins[151] - The company is focusing on expanding its technology base through strategic partnerships and acquisitions, particularly in the rail transportation sector[138]

Financial Data and Key Metrics Changes - Total revenue for Q4 2020 decreased 34% to $3.78 million from $5.75 million in Q4 2019, driven by fewer systems deployed [8][9] - For the full year 2020, total revenue decreased 41% to $8.04 million from $13.64 million in 2019, primarily due to delays in new orders caused by the COVID-19 pandemic [9][10] - Gross profit in Q4 was $1.65 million, or 44% of total revenue, a decrease of 48% from $3.15 million, or 55% of total revenue in Q4 2019 [11] - Net loss for Q4 was $426,000, or $0.12 loss per share, compared to a net income of $592,000, or $0.33 per share in Q4 2019 [16] - For the full year 2020, net loss totaled $6.75 million, or $2.03 loss per share, compared to a net loss of $2.47 million, or $1.39 loss per share in 2019 [16] Business Line Data and Key Metrics Changes - Operating expenses decreased 18% in Q4 2020 to $2.06 million from $2.52 million in Q4 2019, primarily due to lower engineering and software development costs [14] - Operating expenses for the full year 2020 increased 6% to $9.42 million from $8.89 million in 2019, but excluding a one-time payment related to the former CEO's retirement, expenses would have decreased by 24% [15] Market Data and Key Metrics Changes - The company received no cancellations of current contracts or expected orders, with order flow starting to recover in Q4 2020 [10] - The company expects total revenue for the fiscal year ending December 31, 2021, to be approximately $18 million, based on contracted backlog and near-term pending orders [20] Company Strategy and Development Direction - The company is focused on operational excellence and has made improvements across all divisions, with a new COO positively impacting operations [25] - The strategy includes enhancing collaboration between commercial and operational teams, improving customer service, and implementing proactive maintenance programs [32][34] - The company plans to consolidate revenue segments to simplify reporting and showcase recurring revenue opportunities [22] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about 2021, expecting a stronger financial performance and aiming for breakeven or profitability [21][43] - The company acknowledges uncertainties in the macroeconomic climate but believes it will return to growth as it builds for scale and sustains profitability [52] Other Important Information - The company ended Q4 2020 with approximately $4 million in cash and cash equivalents and net receivables of $1.19 million [17] - A securities purchase agreement with existing shareholders raised $4.5 million, improving the balance sheet for expected growth [18][19] Q&A Session Summary Question: Discussion on the pending acquisition of Kansas City Southern by Canadian Pacific - Management believes the merger could be beneficial as it may introduce the company to Canadian Pacific, expanding market opportunities [55][56] Question: Perception of the current administration's position on the XL pipeline and future business - Management indicated that the pipeline's status has not significantly impacted rail operators, and the new administration may positively influence technology investments in the rail industry [59][60][61] Question: Revenue dip due to accounting changes and updates on MTA and commuter rails - The revenue dip was primarily due to delays in contracts and execution, with expectations for increased recurring revenues in the future [66] - Management confirmed ongoing projects with Chicago Metro and anticipates more activity from transit rail systems as the year progresses [71]

Duos Technologies Group, Inc. (NASDAQ:DUOT) Q3 2020 Earnings Call Transcript November 12, 2020 4:30 PM ET Company Participants Chuck Ferry - Chief Executive Officer Adrian Goldfarb - Chief Financial Officer Conference Call Participants Operator Good afternoon. Welcome to Duos Technologies' Third Quarter 2020 Earnings Conference Call. Joining us for today's call are Duos CEO, Chuck Ferry and CFO, Adrian Goldfarb. Following their remarks, we will open the call for your questions. Then before we conclude today ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 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 ...