Duos Technologies (US:DUOT)2021-08-11 16:00Financial 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]