$2.2 million Funding Secured for Duos Subsidiary
Duos Technologies Group's subsidiary, Duos Edge AI, has secured $2.2 million in funding from two institutional investors for the production of its first three Edge Data Centers (EDCs). The funding will support the construction, deployment, and initial operations of EDCs in remote districts, including schools, government, and health facilities. The first EDC is expected to be operational by late October, with the second and third units following in November.
The secured promissory notes mature at the end of 2025 with a 10% annual interest rate. Duos Edge AI will reserve funds from EDC revenues for repayment, and Duos will hold receipts from its ATM facility to ensure timely repayment. The company is reviewing potential ongoing debt funding proposals as the subsidiary expands.
La sussidiaria del Gruppo Duos Technologies, Duos Edge AI, ha ottenuto 2,2 milioni di dollari in finanziamenti da due investitori istituzionali per la produzione dei suoi primi tre Edge Data Centers (EDC). Il finanziamento supporterà la costruzione, il dispiegamento e le operazioni iniziali degli EDC in aree remote, inclusi scuole, strutture governative e sanitarie. Il primo EDC dovrebbe essere operativo entro la fine di ottobre, con la seconda e la terza unità in arrivo a novembre.
I cambiali garantiti scadono alla fine del 2025 con un tasso di interesse annuale del 10%. Duos Edge AI riserverà fondi dai ricavi degli EDC per il rimborso, e Duos terrà le ricevute dalla sua struttura ATM per garantire il rimborso tempestivo. L'azienda sta valutando proposte di finanziamento del debito continuativo mentre la sussidiaria si espande.
La subsidiaria del Grupo Duos Technologies, Duos Edge AI, ha asegurado 2.2 millones de dólares en financiamiento de dos inversores institucionales para la producción de sus primeros tres Edge Data Centers (EDC). El financiamiento apoyará la construcción, implementación y operaciones iniciales de los EDC en distritos remotos, incluyendo escuelas, instalaciones gubernamentales y de salud. Se espera que el primer EDC esté operativo a finales de octubre, seguido por la segunda y tercera unidades en noviembre.
Las notas promisorias aseguradas vencen a finales de 2025 con una tasa de interés anual del 10%. Duos Edge AI reservará fondos de los ingresos de los EDC para el reembolso, y Duos mantendrá los recibos de su instalación de cajeros automáticos para garantizar el reembolso a tiempo. La empresa está revisando propuestas de financiamiento de deuda en curso a medida que la subsidiaria se expande.
두오스 테크놀로지스 그룹의 자회사인 두오스 엣지 AI가 두 명의 기관 투자자로부터 220만 달러의 자금을 확보하였습니다. 이 자금은 첫 번째 세 개의 엣지 데이터 센터(EDC) 생산을 지원할 것입니다. 이 자금은 원격 지역의 학교, 정부 및 보건 시설을 포함한 EDC의 건설, 배치 및 초기 운영을 지원합니다. 첫 번째 EDC는 10월 말까지 운영될 것으로 예상됩니다, 두 번째 및 세 번째 유닛은 11월에 이어집니다.
보장된 약속 어음의 만기는 2025년 말이며, 연 10%의 이자율이 적용됩니다. 두오스 엣지 AI는 EDC 수익의 자금을 상환을 위해 유보할 것이며, 두오스는 적시에 상환할 수 있도록 ATM 시설의 영수증을 보관합니다. 이 회사는 자회사가 확장됨에 따라 지속적인 부채 자금 조달 제안을 검토하고 있습니다.
La filiale du groupe Duos Technologies, Duos Edge AI, a sécurisé 2,2 millions de dollars de financement auprès de deux investisseurs institutionnels pour la production de ses trois premiers Edge Data Centers (EDC). Ce financement soutiendra la construction, le déploiement et les opérations initiales des EDC dans des districts éloignés, y compris des écoles, des installations gouvernementales et de santé. Le premier EDC devrait être opérationnel d'ici la fin octobre, les deuxième et troisième unités suivant en novembre.
Les billets à ordre garantis arrivent à échéance fin 2025 avec un taux d'intérêt annuel de 10%. Duos Edge AI réservera des fonds provenant des revenus des EDC pour le remboursement, et Duos conservera les reçus de sa structure de distributeurs automatiques pour garantir un remboursement à temps. L'entreprise examine des propositions de financement de dette continue alors que la filiale se développe.
Die Tochtergesellschaft der Duos Technologies Group, Duos Edge AI, hat 2,2 Millionen Dollar an Finanzierung von zwei institutionellen Investoren für die Produktion ihrer ersten drei Edge Data Centers (EDCs) gesichert. Die Finanzierung unterstützt den Bau, die Bereitstellung und die Anfangsbetrieb der EDCs in abgelegenen Bezirken, einschließlich Schulen, Regierungs- und Gesundheitseinrichtungen. Das erste EDC soll Ende Oktober betriebsbereit sein, die zweiten und dritten Einheiten folgen im November.
Die gesicherten Schuldscheine laufen Ende 2025 aus und haben einen jährlichen Zinssatz von 10%. Duos Edge AI wird Mittel aus den Einnahmen der EDCs für die Rückzahlung reservieren, und Duos wird die Quittungen von seiner Geldautomatenanlage aufbewahren, um eine fristgerechte Rückzahlung sicherzustellen. Das Unternehmen prüft potenzielle fortlaufende Schuldenfinanzierungsangebote, während die Tochtergesellschaft expandiert.
- Secured $2.2 million in funding for production of first three Edge Data Centers
- Expected revenue generation beginning in Q4 2024
- Deployment of EDCs in strategic remote locations (schools, government, health facilities)
- Support from legacy shareholders for both equity and debt
- Potential for fast growth and expansion
- 10% annual interest rate on secured promissory notes
- Debt matures at the end of 2025, creating repayment obligation
- Reliance on future revenues and ATM facility for debt repayment
Insights
Securing $2.2 million in funding is a positive development for Duos Edge AI. This funding directly supports the construction and deployment of their first three Edge Data Centers (EDCs). From a financial perspective, the initial capital infusion will potentially lead to revenue generation by Q4, which is a key indicator for investors. The interest rate of 10% on the secured promissory notes is relatively high, reflecting either the risk assessment by the lenders or the urgent need for capital by Duos Edge AI.
Given the specifics of the arrangement, the company is confident about meeting its payment obligations through revenue reserves generated from the EDCs. This is a prudent move, as earmarking revenues for debt repayment ensures financial discipline and mitigates default risk. Overall, this move signals a strategic effort by Duos to capture market opportunities rapidly, which could adjust investor expectations positively in the short term.
The expansion into Edge Data Centers is a strategic pivot for Duos Edge AI. EDCs are important for enabling low-latency, high-performance computing, especially in remote areas such as schools, government and health facilities. This could position Duos Edge AI favorably in a market that is increasingly leaning towards decentralized computing to meet growing data processing demands at the edge of networks.
From a technological standpoint, the deployment timeline is ambitious but feasible. If successfully executed, it could demonstrate Duos Edge AI’s capability to meet complex, evolving demands, thus enhancing their market credibility. Long-term success will depend on the operational efficiency and the scalability of these initial units. This development could spur further technological advancements and potentially attract more investments and partnerships in the future.
Duos Edge AI’s entry into the Edge Data Center market addresses a critical gap. The market for EDCs is expanding rapidly, driven by the need for real-time data processing and the proliferation of IoT devices. This funding and the subsequent construction of EDCs could place Duos Edge AI at a significant advantage, especially if they target underserved markets like remote educational and governmental facilities.
The choice of sectors - schools, government and health facilities - is strategic. These sectors have stable demand and are less susceptible to economic downturns, which can provide a steady revenue stream. Moreover, early success in these areas can pave the way for expansion into other verticals. Investors should watch how these initial deployments perform, as they could be a bellwether for sustained growth and market penetration.
Funding from two institutional investors funds construction for first three Edge Data Centers with expected revenues beginning in Q4
JACKSONVILLE, Fla., July 24, 2024 (GLOBE NEWSWIRE) -- Duos Technologies Group, Inc. (“Duos” or the “Company”) (Nasdaq: DUOT), through its operating subsidiary Duos Edge AI, Inc. (“Duos Edge AI”), a provider of adaptive, versatile, and streamlined Edge Data Center (“EDC”) solutions tailored to meet evolving needs in any environment, announced today that it has secured sufficient funding for the production of its first three EDCs. Duos Edge AI entered into secured promissory notes for a total of
Doug Recker, President of Duos Edge AI, thanked the investors for their confidence in providing the initial funding to the new division. "The availability of this funding will allow us to get to deployment and revenue production as forecasted and also paves the way for expected fast growth as we pursue the many opportunities available to us," said Recker.
Chuck Ferry, CEO of Duos, shared his enthusiasm for the new project. "I am pleased that we continue to have solid support from our legacy shareholders, both for equity and now debt," he said. “I believe that this is just the beginning of a new phase of growth for Duos and I look forward to reporting further progress at our upcoming shareholders conference call.”
As disclosed in a recent 8-K, the deal is for
To learn more about Duos Edge AI, visit: www.duosedge.ai
To learn more about Duos Technologies, visit www.duostechnologies.com
About Duos Edge AI, Inc.
Duos Edge AI, Inc. is a subsidiary of Duos Technologies Group, Inc. (Nasdaq: DUOT). Duos Edge AI's mission is to bring advanced technology to underserved communities, particularly in education, healthcare, and rural industries, by deploying high-powered edge computing solutions that minimize latency and optimize performance. Duos Edge AI specializes in high-function Edge Data Center (“EDC”) solutions tailored to meet evolving needs in any environment. By focusing on providing scalable IT resources that seamlessly integrate with existing infrastructure, its solutions expand capabilities at the network edge, ensuring data uptime onsite services. With the ability to provide 100 kW+ per cabinet, rapid 90-day deployment, and continuous 24/7 data services, Duos Edge AI aims to position its edge data centers within 12 miles of end users or devices, significantly closer than traditional data centers. This approach enables timely processing of massive amounts of data for applications requiring real-time response and supporting current and future technologies without large capital investments. For more information, visit www.duosedge.ai.
About Duos Technologies Group, Inc.
Duos Technologies Group, Inc. (Nasdaq: DUOT), based in Jacksonville, Florida, through its wholly owned subsidiaries, Duos Technologies, Inc. and Duos Edge AI, Inc. designs, develops, deploys, and operates intelligent technology solutions for Machine Vision and Artificial Intelligence (AI) applications including real-time analysis of fast-moving vehicles and Edge Data Centers. For more information, visit www.duostech.com and www.duosedge.ai.
Forward- Looking Statements
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things our plans, strategies and prospects -- both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. All forward-looking statements attributable to Duos Technologies Group, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.
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FAQ
How much funding did Duos Edge AI secure for its Edge Data Centers?
When is the first Edge Data Center expected to be operational for Duos (DUOT)?
What are the terms of the secured promissory notes for Duos Technologies (DUOT)?
Where will Duos Edge AI deploy its Edge Data Centers?
