Duos Technologies (DUOT) - 2024 Q1 - Quarterly Results

Revenue Performance - Total revenues for Q1 2024 decreased 60% to $1.07 million compared to $2.64 million in Q1 2023, primarily due to timing in revenue recognition for a major customer[5] - The company anticipates revenues in Q2 2024 to be in line with Q1 2024 before ramping up in the latter half of the year[13] Expenses and Losses - Operating expenses for Q1 2024 increased 6% to $2.86 million compared to $2.68 million in Q1 2023, attributed to investment in sales resources[8] - Net loss for Q1 2024 totaled $2.75 million, a 28% increase compared to a net loss of $2.14 million in Q1 2023, mainly due to decreased revenues[10] - Net loss for the three months ended March 31, 2024, was $2,752,309, compared to a net loss of $2,143,683 for the same period in 2023, representing an increase of 28.5%[26] Cash and Assets - Cash and cash equivalents at March 31, 2024, totaled $2.98 million, an increase from $2.44 million at December 31, 2023[11] - Cash and cash equivalents at the end of the period increased to $2,977,592 from $2,441,842, an increase of approximately 22%[26] - Total assets decreased to $12,742,440 from $12,842,285, a decline of approximately 0.78%[23] - Current liabilities reduced to $3,081,046 from $3,247,053, a decrease of about 5.13%[23] - Total stockholders' equity rose to $5,519,839 from $5,366,514, an increase of about 2.85%[24] Operational Metrics - The company performed over 2.4 million comprehensive railcar scans in Q1 2024, representing approximately 24% of the total freight car population in North America[3] - The company was awarded a contract for an additional Railcar Inspection Portal system valued at approximately $2.7 million, expected to be installed in 2024[3] Cash Flow - Cash from operating activities resulted in a net cash outflow of $2,032,719, significantly higher than the outflow of $7,086 in the prior year[26] - Cash flows from financing activities provided $2,578,279, compared to $3,488,085 in the previous year, a decrease of approximately 26%[26] Inventory and Receivables - Accounts receivable decreased to $596,090 from $1,462,463, a decline of about 59%[23] - Inventory slightly decreased to $1,502,337 from $1,526,165, a reduction of approximately 1.55%[23] - Contract liabilities increased to $1,692,940 from $1,666,243, an increase of about 1.61%[23] Strategic Initiatives - Duos formed a new subsidiary, "Duos Edge AI, Inc.", to build and operate Edge Data Centers, aligning with its strategy in the AI value chain[3]