Financial Performance - Total revenues for Q1 2025 reached $4,952,185, a 363% increase compared to $1,070,680 in Q1 2024[275] - The net loss for Q1 2025 was $2,079,663, compared to a net loss of $2,752,309 in Q1 2024, indicating an improvement in financial performance[275] - Revenues for the three months ended March 31, 2025, were $4,952,185, a 363% increase compared to $1,070,680 in the same period of 2024[282] - The net loss for the three months ended March 31, 2025, was $2,079,663, a 24% decrease from $2,752,309 in the same period of 2024[286] - Gross margin improved to $1,313,659 in Q1 2025, representing a 1,288% increase from $94,632 in Q1 2024, primarily due to revenue from the Asset Management Agreement with New APR[282] Revenue Sources - Services and consulting revenue surged by 510% to $4,887,501 in Q1 2025, primarily due to the execution of the Asset Management Agreement (AMA) with New APR[276][277] - The Railcar Inspection Portal (RIP) is being transitioned to a modular and subscription-based model, enhancing recurring revenue streams[273] - The company anticipates continued growth in services revenue from both rail and power businesses throughout 2025[278] Operational Activities - The cost of revenues increased by 273% to $3,638,526 in Q1 2025, driven by the support of the AMA and increased operational activities[279] - Total operating expenses increased by 9% to $3,103,287 in Q1 2025, up from $2,855,678 in Q1 2024, with sales and marketing expenses decreasing by 47%[283] Capital and Financing - Cash flows provided by financing activities were $2,788,033 in Q1 2025, primarily from gross proceeds of $3,954,940 from the At-The-Market offering program[290] - The company has raised over $11,500,000 from the sale of Series E and F Preferred Stock in 2023 and approximately $3,954,940 in gross proceeds during the first two months of 2025[295] - The company expects to continue executing its revenue diversification strategy and anticipates sufficient capital to support operations over the next twelve months[291][296] Future Plans and Expansion - The company is expanding into Edge Computing and power generation markets, with a focus on leveraging existing technology infrastructure[268] - A long-term agreement with a major Class 1 railroad was secured, enabling new subscription-based services for over 3,000 railcar owners and lessors[269] - The company plans to deploy six Edge Data Centers in the first half of 2025, with an additional nine sites expected in the second half of 2025[273] - Duos Energy is managing approximately 850 MW of generating capacity and has a two-year AMA valued at approximately $42 million with New APR[273] Deferred Revenue and Intangible Assets - The Company recorded $7.2 million of deferred revenue for services to be performed under the AMA agreement, with no revenue recognized during the year ended December 31, 2024[305] - The Company recognized $199,008 of deferred revenue related to a completed pilot program, with the remaining deferred revenue being recognized over the 5-year term[312] - An intangible asset with a fair value of $11,161,428 was recorded in May 2024, representing non-monetary consideration under a 5-year customer contract for maintenance services[310] - The fair value of the intangible asset was determined based on the standalone selling price of the service and goods to be provided under the contract[311] - There is no indication of impairment for the intangible asset at March 31, 2025[315] Cash Flow and Working Capital - Net cash used in operating activities was $4,673,425 for Q1 2025, compared to $2,032,719 in Q1 2024, driven by increased non-cash add-backs and a significant build-up in accounts receivable[288] - The company had a working capital deficit of $6,502,554 as of March 31, 2025, with an accumulated deficit of $76,447,672[287][294] Management and Impairment - Management believes that the anticipated steady cash flow from the Asset Management Agreement will mitigate concerns regarding the company's ability to continue as a going concern[297] - The Company assesses its equity method investment for impairment whenever events indicate that the carrying amount may not be recoverable[309] - No impairment losses were recognized during the year ended December 31, 2024, or the three months ended March 31, 2025[309]

Core Insights - Duos Technologies Group, Inc. reported a significant revenue increase of 363% in Q1 2025, reaching approximately $5 million compared to $1.07 million in Q1 2024, driven primarily by the execution of the Asset Management Agreement with New APR [5][10][14] - The company showcased strong operational performance, including over 2.3 million railcar scans and a substantial backlog of $17.8 million in revenue, with expectations for continued growth throughout 2025 [6][13][14] Financial Performance - Total revenues for Q1 2025 were $4.95 million, with $4.89 million coming from recurring services and consulting, and $65,000 from technology systems [5][22] - Cost of revenues increased by 273% to $3.64 million, largely due to the support of the Asset Management Agreement with New APR [7][22] - Gross margin improved significantly by 1,288% to $1.31 million, attributed to the high-margin revenue from the Asset Management Agreement [8][22] - Operating expenses rose by 9% to $3.10 million, primarily due to non-cash stock-based compensation and increased research and development costs [9][22] Loss and Cash Position - The net operating loss for Q1 2025 was $1.79 million, a decrease from $2.76 million in Q1 2024, reflecting improved revenue performance [10][11] - The net loss for Q1 2025 was $2.08 million, down from $2.75 million in the same quarter last year, indicating better financial health [11][12] - Cash and cash equivalents at the end of Q1 2025 totaled $3.80 million, down from $6.27 million at the end of 2024, with additional receivables bringing total liquidity to approximately $6.48 million [12][24] Future Outlook - The company has a backlog of approximately $45.4 million in contracts, with $17.4 million expected to be recognized in 2025, alongside an estimated $7.0 - $8.0 million in near-term awards [13][14] - Duos Technologies expects total revenue for 2025 to range between $28 million and $30 million, representing a growth of 285% to 312% from 2024 [14][15]

Core Viewpoint - Duos Technologies Group, Inc. is advancing its Edge Data Center (EDC) solutions through a partnership with Accu-Tech, aiming to meet the increasing demand for low-latency data processing by deploying 15 US-made EDCs by the end of 2025 [1][4]. Group 1: Company Developments - Duos Edge AI is on track to have 15 Edge Data Centers under contract by the end of 2025, addressing the growing need for localized digital infrastructure [1]. - The partnership with Accu-Tech enhances Duos Edge AI's supply chain reliability and cost-effectiveness, shielding the company from global supply chain disruptions [3][4]. - Duos Edge AI has identified at least nine EDC placements and is finalizing agreements across various markets, focusing on underserved communities [4]. Group 2: Product Features and Benefits - The modular EDCs are SOC 2 Type II compliant, built with N+1 architecture, and equipped with dual backup generators, ensuring reliable localized computing power [4][6]. - The deployment plan emphasizes serving critical infrastructure in education, healthcare, and AI workloads, particularly in Texas, the Midwest, and the Southeast [4][6]. - Duos Edge AI's EDCs can provide over 100 kW per cabinet and are designed for rapid deployment within 90 days, significantly closer to end users than traditional data centers [6].

Company Overview - Duos Technologies Group, Inc. (DUOT) is anticipated to report a year-over-year increase in earnings due to higher revenues for the quarter ended March 2025 [1] - The consensus EPS estimate for Duos Technologies is a loss of $0.18 per share, reflecting a year-over-year change of +52.6% [3] - Expected revenues for the quarter are $4.3 million, which represents a significant increase of 301.9% from the same quarter last year [3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised 22.22% lower over the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4] - The Most Accurate Estimate for Duos Technologies is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.56% [11] - The company currently holds a Zacks Rank of 3, suggesting a hold position, which complicates predictions of an earnings beat [11] Earnings Surprise History - In the last reported quarter, Duos Technologies was expected to post a loss of $0.30 per share but actually reported a loss of $0.41, resulting in a surprise of -36.67% [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Industry Context - Another company in the Zacks Technology Services industry, Marathon Digital Holdings, Inc. (MARA), is expected to report a loss of $0.55 per share for the same quarter, indicating a year-over-year change of -816.7% [17] - Marathon Digital's revenues are expected to be $219.65 million, up 33% from the previous year [17] - The consensus EPS estimate for Marathon Digital has been revised 24.1% higher over the last 30 days, but it has an Earnings ESP of 0.00%, making predictions of an earnings beat difficult [18]

Six mobile gas turbines to deploy over 150MW in less than 90 days—reinforcing APR Energy's leadership in rapid, utility-scale power solutions JACKSONVILLE, Fla., April 29, 2025 (GLOBE NEWSWIRE) -- New APR Energy LLC ("APR Energy"), a global leader in fast-track power generation, has secured a contract to deliver 150 megawatts (MW) of power generation to support Mexico's national utility ahead of the summer peak in Baja California. The project will mobilize six high-output mobile gas turbines, with full oper ...

Duos Technologies Group, Inc. (NASDAQ:DUOT) Q4 2024 Earnings Conference Call March 31, 2025 4:30 PM ET Company Participants Chuck Ferry - Chief Executive Officer Adrian Goldfarb - Chief Financial Officer Conference Call Participants Ed Woo - Ascendiant Capital Markets Vijay Devar - Northland Capital Markets Operator Good afternoon. Welcome to Duos Technologies Fourth Quarter and Full Year 2024 Earnings Conference Call. Joining us for today's call are Duos' CEO, Chuck Ferry; and CFO, Adrian Goldfarb. Followi ...

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 ...